Acronym for ‘Euro Over Night Index Average’, it is an effective overnight reference rate for the eurozone interbank market. It is computed by the European Central Bank (ECB) as a weighted average of all overnight unsecured lending transactions undertaken in the interbank market, as reported by the same panel of banks contributing to Euribor. The Panel of Banks is made up of the most important banks in terms of volume of business in the eurozone. Each panel bank reports to the ECB, on each day that the TARGET (Trans-European Automated Real-Time Gross-Settlement Express Transfer system) is open, the total volume of specified transactions in millions of euros and the relative weighted average lending rate. The banks shall provide these data before 6.00 p.m., that is to say the closing time of RTGS (real-time gross settlement systems). Eonia was launched on the evening of 4 January 1999 and rates are published by THOMSON REUTERS on the EONIA page.

Link: Eonia official website: www.euribor.org