The Riksbank's role as administrator of SWESTR
The Riksbank is administrator of SWESTR (Swedish krona Short Term Rate). This means that the Riksbank takes responsibility for its governance, as well as for it being calculated and published every banking day.
Test period for SWESTR
During a test period from 27 January 2021 (inclusive) to 1 September 2021 (inclusive), a preliminary value for SWESTR will be published every Swedish banking day. SWESTR shall not be used in financial contracts during the test period. The reference rate may be used in financial contracts beginning with Swestr for value date 1 September 2021, which is published on 2 September 2021.
In December 2019, the Executive Board of the Riksbank decided that the Riksbank would provide a new transaction-based reference rate in Swedish kronor. The Riksbank collects the transaction data that forms the basis for the reference rate, and calculates and publishes this every banking day. In its role as administrator for SWESTR, the Riksbank is also responsible for its governance, as well as for ensuring it is appropriately designed.
Having the Riksbank provide SWESTR is a cost-effective solution for society, among other reasons because the Riksbank already collects relevant transaction data from the monetary policy counterparties. In addition, it may strengthen credibility for SWESTR that the Riksbank, in the capacity of central bank, stands behind it. As well as that, it is common, from an international perspective, that central banks act as administrators of the new transaction-based reference rates.
The Markets Department operationalises the Riksbank’s role as administrator of SWESTR.