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LONDON, May 3 (Reuters) - European money market futures rose on Wednesday as analysts said reforms to Euribor rates due to be unveiled on Thursday could lead to lower daily fixings in the future.
The European Money Market Institute will on Thursday publish outcomes of a project to reform the Euro Interbank Offered Rate (Euribor), which has studied issues such as methodology and the institutions that report in a daily rate known as the "fix".
The reforms were called for after several financial institutions were fined as part of an inquiry into how rates like Euribor and Libor, which determine the rates on loans and financial contracts across the globe, are set.
Analysts widely agree that changes could result in lower fixings and higher volatility going forward.
"The market perception is that the new transaction based methodology could lead to lower Euribor fixings, which is the reason why the Euribor futures are better bid," said Kim Liu, senior fixed income strategist at ABN AMRO.
Euribor futures across the 2017 to 2019 strip rose 1-1.5 basis points as the implied rates on the future contracts fell. .
Authorities have fined banks about $9 billion as part of the rate-setting inquiry.
Reporting by John Geddie and Dhara Ranasinghe; Editing by Angus MacSwan