The European Central Bank (ECB) has announced a significant expansion of its Money Markets Statistical Reporting (MMSR) regime. From 1 July 2024, 24 new institutions will join the ranks of reporting agents for the MMSR dataset. The list includes some prominent financial institutions and another set of top tier institutions in Europe. This expansion promises to enrich the dataset’s diversity and depth.
The MMSR dataset is a vital repository of transaction-by-transaction data that provides insights into various segments of the Euro money market. This includes secured and unsecured markets, foreign exchange swaps, and overnight index swaps. Perhaps most importantly the euro short-term rate (€STR) is created off the back of the MMSR data.
At its core, the MMSR dataset serves as a window into the intricacies of the Euro money market. By collecting granular transaction data, the ECB gains a holistic understanding of market dynamics. This wealth of information, in turn, informs the ECB’s monetary policy decisions, enabling them to navigate market complexities effectively.
Impact on €STR benchmark rate
The data provided by the new reporting agents will be incorporated into the calculation of the euro short-term rate (€STR). As such, the expanded reporting population will have a direct influence on this crucial benchmark, which serves as a reference rate for various financial transactions.
The ECB’s decision to add 24 new reporting agents to the Money Markets Statistical Reporting dataset underscores its commitment to maintaining accurate and comprehensive insights into the Euro money market. This expansion aligns with the ECB’s and other global regulators’ efforts to enhance transparency and make well-informed monetary policy decisions based on robust data.