Eonia trading shuts down as CCPs make €STR switch
Dealers and venues step back from Eonia swaps after contracts become unclearable
Trading of overnight index swaps (OIS) linked to Eonia has effectively ceased after central counterparties (CCPs) stopped clearing the instruments last weekend.
Nearly €14 trillion ($16.3 trillion) of cleared Eonia swaps were re-hitched to €STR, the new euro short-term rate, after the markets closed on Friday, October 15.
The co-ordinated switch – which comes more than a year after CCPs began using €STR to discount future cashflows – finally rids the cleared market of the flimsy benchmark and
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