SWESTR Advisory Group
The Riksbank has formed an advisory group for SWESTR (Swedish krona Short Term Rate), which will consist of representatives for market participants who use SWESTR or who are active on the underlying market for SWESTR. Among other things, the group will provide opinions to the Riksbank on how the calculation and publication of SWESTR is working. Apart from collecting opinions from the advisory group, the Riksbank can also collect opinions on SWESTR more broadly by referring it to consultation.
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.
A constituent meeting was held in March 2021. The next meeting is planned for September 2021. Following this, the advisory group will meet twice a year. Agenda and minutes will be published here, on the Riksbank’s website, in Swedish.
Purpose and responsibilities
The group’s purpose and responsibilities is regulated in a Terms of Reference. Among other things, the group is tasked with monitoring how the underlying market for SWESTR (which is to say the overnight market in SEK) is functioning and developing, assessing whether SWESTR is representative of the interest rate on the underlying market, and discussing the role played by SWESTR on the Swedish financial market. The group also has the task of reviewing and advising on the framework the Riksbank has established for the reference rate.
Relevant market participants, both users of SWESTR and participants that are active on the underlying market for SWESTR, have been invited to participate in the group. The group’s membership will be reviewed annually.
The Riksbank holds the position of chair and provides the secretariat for the advisory group. Officials from the Riksbank will also participate in the meetings and present their work on SWESTR.