Eonia ‘almost meaningless’, says Eurex

Thin volumes in unsecured lending market should be a cause for concern, bourse operator argues

European markets
Eonia fixing volumes too thin to be meaningful, says Eurex

Volumes in Europe's unsecured overnight lending market are now so low that Eonia – the fixing the trades generate that is used to discount trillions of euros' worth of derivatives contracts across the globe – is "almost meaningless", according to Eurex.

While Eonia has been highly volatile at times since at least 2010, extreme illiquidity in the underlying money markets – which have dropped as low as €7 billion ($7.6 billion) recently – now mean the fixing is based on volumes that are sometimes

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: