[author: Richard Hunt]

The European Money Markets Institute (“EMMI“) has provided an update on its development of EURIBOR through a press release, available here.

EMMI previously stated that it was working on the development of a hybrid methodology for EURIBOR which will be composed of a three-level waterfall and which will leverage on market transactions whenever available, in line with regulatory regulations.

EMMI stated that it will conduct an in-depth data analysis under a number of scenarios and assess all methodological parameters. Furthermore, the three-level waterfall with allow EMMI to assess Level 1 and Level 2 submissions, whilst allowing EMMI to develop a deeper understanding of Level 3.

It was announced that following the testing stage, there will be a stakeholder consultation in the second half of 2018.