The Riksbank intends to publish average rates and an index for SWESTR
News, Consultation responses During the third quarter of 2021, the Riksbank intends to start calculating and publishing backward-looking averages of and an index for the Riksbank’s SWESTR reference rate (Swedish krona Short-Term Rate). Average rates can be used in new financial contracts but are also an important part of a so-called fallback solution for the STIBOR reference rate (Stockholm Interbank Offered Rate). This is set out in the consultation with proposals for calculation methods and forms of publication that is being sent out today by the Riksbank to financial market participants and other stakeholders.
During the third quarter of 2021, the Riksbank intends to start calculating and publishing backward-looking average rates, and an index, based on the Riksbank's transaction-based reference rate SWESTR. In the consultation, the Riksbank proposes that averages are produced for time periods of 1 week, 1 month, 2 months, 3 months and 6 months. It is proposed that averages and an index are published every business day, either at the same time as or just after publication of SWESTR. The exact time of this publication will be announced later in 2021.
The consultation also makes it clear that the Riksbank intends to follow international practice by using methods for calculating average rates and an index similar to those already used by other central banks around the world.
Average rates for SWESTR can be referred to in new financial contracts but will also be an important part of a so-called fallback solution to STIBOR. Something that allows average rates to be used as a basis for an alternative rate in case STIBOR were to cease during the contract period.
The Riksbank is now inviting financial market participants and other stakeholders to give their views on the calculation methods and forms of publication presented in the consultation no later than 7 May. More information can be found in the Riksbank’s consultation “Calculation of average rates and an index for the SWESTR reference rate”.