News
Energy & Commodities
Oil Price Commentary: Insights into Recent Trends and Drivers
By Francesca Marrone
24 Apr 2024
Tradition Excels in Risk.net’s 2024 Energy Commodity Rankings, with 8 wins including “Best Overall Commodities Broker”
By TraditionData
Business update
TraditionData Strengthens Netherlands Footprint Through Partnership with NIBC
22 Apr 2024
Interest Rate Derivatives
Interest Rate Derivatives & FX Updates: April 2024
By Jessica Kalaria
18 Apr 2024
Product notification
25 new USD SOFR Butterfly Spreads added to package
By Ian Sams
13 Feb 2023
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ESTR (Euro Short-Term Rate) is a new alternative reference rate for the Euro interbank lending market. It was introduced as a replacement for the legacy overnight rate, the Euro Overnight Index Average (EONIA), which was phased out at the end of 2021.
One of the key advantages of ESTR is its accuracy. It is based on actual transactions in the Euro interbank lending market, providing a more reliable reference rate compared to EONIA.
Additionally, ESTR is calculated and published by the European Central Bank (ECB), ensuring greater transparency and fairness in the market.
Key features of ESTR include;
Pricing financial products: ESTR can be used as a reference rate to price financial products, such as loans and bonds, which are tied to the Euro interbank lending market.
Managing risk: By providing accurate and up-to-date information on the Euro interbank lending market, ESTR can help financial services professionals better understand and manage risk.
Evaluating performance: ESTR can be used to evaluate the performance of different financial products over time, and compare their relative value.
Setting benchmark rates: Financial services professionals can use ESTR as a benchmark rate to set the interest rates on financial products, such as loans and bonds.
TraditionData’s SOFR packages provide the most robust, comprehensive and accurate view of the American Markets.
Insight
The importance of high-quality OTC data in navigating inflationary uncertainty
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Tradition appointments to the CFTC Global Markets Advisory Committee (GMAC) & associated Subcommittees
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Rates market turmoil boosts demand for modelled LIBOR alternatives
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