Forum being established to increase the use of transaction-based reference rates
News The Riksbank considers that fully transaction-based reference rates are more reliable than assessment-based interbank rates, and that the increased use of transaction-based reference rates contributes to the promotion of financial stability. This is why the Riksbank is taking the initiative to set up a forum of financial market participants to understand better what the financial sector needs to switch to using fully transaction-based reference rates.
The Swedish financial market is integrated with the rest of the world and it is therefore important that Sweden actively monitors international developments in order to reduce risks and increase the efficiency of the Swedish financial system. In order to safeguard the good reputation of Swedish reference rates, the Riksbank therefore sees a need for participants in the Swedish market also to switch to using fully transaction-based reference rates, like several of the most important currencies have already done.
In September 2021, the Riksbank launched a fully transaction-based reference rate, SWESTR. In order for the financial sector now to be able to use transaction-based reference rates, the Riksbank is setting up a forum where financial market participants can meet to resolve outstanding issues and to achieve a smooth transition.
Potential users of reference interest rates and other relevant stakeholders who wish to participate in the forum may register their interest by sending an email to swestr@riksbank.se, stating the name of the institution and person who wishes to participate.