The Danish reference rates (CIBOR, CITA, SWAP, and DESTR) play an essential role in ensuring a well-functioning financial market in Denmark. The reference rates help ensure transparency regarding the development of Danish money market rates and are widely used in loan agreements and other financial contracts. This ensures transparency and credibility in contractual terms. It is therefore crucial that the Danish reference rates are designed to best reflect the activity observed in the money markets.
CIBOR is the Danish counterpart to the European reference rate EURIBOR and other similar IBOR reference rates. CIBOR plays a significant role in ensuring alignment between the Danish and European interest rate markets. In recent years, the method behind EURIBOR has been changed so that actual transactions play a greater role in the daily determination of the rate. In several other countries, a transition to transaction-based reference rates has already taken place.
Against this background, Finance Denmark, in collaboration with Danmarks Nationalbank, has established a working group with representatives from the financial sector. Danmarks Nationalbank and Finance Denmark will act as joint secretariat for the working group, and Danmarks Nationalbank and the Danish Financial Supervisory Authority will participate as observers in the working group. The working group will analyse and provide recommendations regarding a transition from CIBOR to transaction-based reference rates to ensure the long-term robustness and relevance of Danish reference rates.
On the working group's website, relevant consultation papers and other documents will be published on an ongoing basis.
