(6)Furthermore, data reported by members of the Working group on euro risk-free rates suggests that, as of 9 July 2021, several thousands of derivative contracts with direct EONIA exposures and collateral agreements referencing EONIA as the interest rate covering collateral still apply across the Union. Both references already account for a total notional amount of several trillion euros. The same members also indicated that their contractual renegotiation efforts are complete in, on average, less than half of contracts that contain EONIA references. Those completion rates point to the fact that individual renegotiation of all remaining EONIA references will cause a major challenge for contracting parties in the Union, especially supervised entities. Without transitioning such contracts to a designated replacement for a benchmark, there is a serious risk of contract frustration. While continued active efforts are expected from industry members to transition all contracts and financial instruments still referencing EONIA to €STR by the time of EONIA’s cessation, a replacement for EONIA references should therefore mitigate the materialisation of such risk, which might particularly affect clients engaging in overnight index swaps to hedge interest rate risk.