Banks to ask EC for delay of benchmarks rule

New ECB rate may appear only months before rules bar use of Eonia and Euribor

A group of 21 banks tasked with helping the euro rates market move away from shaky Eonia and Euribor benchmarks is set to formally ask the European Commission for a delay to rules that could stop the benchmarks being used. The group is worried there will not be time to build liquidity in its newly selected alternative risk-free rate (RFR) prior to a 2020 deadline.

“The euro RFR working group will be writing to the EC for an extension of the benchmark regulation for critical benchmarks. That