Consultation on the SWESTR reference rate
News The Riksbank proposes in a consultation to increase the predictability of the transaction-based reference rate SWESTR to make it more useful as a reference rate in financial contracts. The Riksbank intends to implement the changes in the regulatory framework for SWESTR in the third quarter of 2024.
The Riksbank's dialogue with market participants and other stakeholders shows that there is a need for greater predictability in SWESTR at the turn of the year, so that it does not constitute an obstacle to using SWESTR as a reference rate in financial contracts.
In the consultation, the Riksbank proposes that the regulatory framework for SWESTR be amended so that the robustness requirement for the transaction volume is lowered. In addition, the Riksbank intends to introduce a new alternative calculation method that applies to all banking days of the year instead of the two alternative calculation methods that the Riksbank currently applies. In addition, the Riksbank intends to exclude the SWESTR values for the last banking day of the year from the calculation basis if the alternative method is used the following day, i.e. on the first banking day of the new year.
Consultation responses shall be submitted to the Riksbank no later than 25 April 2024.