About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Euroclear Launches Pricing Benchmark for European Commercial Paper

Subscribe to our newsletter

Euroclear has launched the first benchmark to help European investors evaluate prices in the region’s commercial paper markers. The securities settlement provider has indicated that the service is based on Euroclear data and provides daily and weekly data on average yields for euro commercial paper.

Olivier Grimonpont, director and head of product management for fixed income securities and collateral services at Euroclear, explains the drivers: “We are responding to the investment community’s call for greater transparency and accuracy in benchmarking yield information for short term paper. All euro commercial paper processed by Euroclear Bank will be included in our yield data, provided they meet the requirements in terms of tenor, currency and issuer type.”

The service, which has been dubbed Euroclear ECP Indices, is aimed at allowing industry participants to download daily average weighted yields expressed in percentage format. The data is based on primary market ECP transactions settled at Euroclear Bank, calculated according to standard market practice for deriving annualised yield values.

The weekly Euroclear ECP benchmark data displays five ECP investment grade categories, including financial, corporate and sovereign issues, with different maturity periods, or tenors, of one month and three months, in three currencies: the euro, the US dollar and the British pound sterling. The daily Euroclear ECP benchmark data provides average yield data only on the highest quality paper for the same maturity periods and currencies, says Euroclear.

Peter Eisenhardt, chairman of the International Capital Market Association’s (ICMA) ECP Committee, comments on the indices: “They will enhance transparency in this challenging environment, and promote market growth. For the first time, investors and issuers will be able to benchmark their trading activity not just against Euribor and Libor, but against the broad ECP market as well.”

He continues: “The benchmarks were designed with market input to ensure that the categories – currency, duration, rating and type – are the most relevant and useful. Historical data was analysed so that the daily and weekly sector benchmarks will be based on meaningful amounts of data. It is recognised that in current, unprecedented financial market conditions, trading in some categories is much reduced.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Enabling data democratisation with trusted and well governed data

Data democratisation enables users across an organisation to access and analyse data in a digital format. Its benefits are many and include allowing employees to make informed business decisions without recourse to IT, gaining a better understanding of customers, improving operational efficiency, and achieving a greater return on investment in data. It is also key...

BLOG

ANNA Implementation of Revised ISO 6166 Standard Brings Together ISIN, LEI, CFI and FISN

Work by the Association of National Numbering Agencies (ANNA) on the implementation of the revised ISO 6166 standard for the International Securities Identification Number (ISIN) has resulted in an accessible set of four data standards that can be used together to improve data management and regulatory reporting. The standards include the Legal Entity Identifier (LEI),...

EVENT

Data Management Summit London

Now in its 13th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...