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What is DESTR?

DESTR (Denmark Short-Term Rate) is a short-term reference rate based on transactions conducted in the overnight unsecured deposit market in Danish kroner. It is the preferred short-term reference rate in Danish kroner (link). Reference rates are used in a wide range of financial contracts, including bank loans, mortgage bonds and interest-rate swaps. Thus, it is important for Danmarks Nationalbank and the financial system that a short-term transaction-based reference rate is available in Danish kroner in line with international standards.

How is DESTR calculated?

The data behind DESTR and the methodology for calculating DESTR is described here. The document Methodology and Policies are the formal foundation of the methodology and publication rules of DESTR.

How is DESTR published?

Danmarks Nationalbank publishes DESTR at 10:00 CET on each Danish banking day. For instance, DESTR published on 5 April 2022 at 10:00 CET reflects trading activity on 4 April 2022 (the previous Danish banking day).

If errors are detected following the publication of DESTR that affect the rate by more than 2 basis points, Danmarks Nationalbank will revise and re-publish DESTR once on the same day at 11:00 CET. No changes will be made to DESTR after that time.

Summary information on errors larger than 0.1 basis points that are detected after the standard publication and do not meet the republication criteria can be found in the regular report approved by the Oversight Committee (link). This information on errors is updated on a semiannual basis.

If, exceptionally, Danmarks Nationalbank does not publish DESTR at latest 11:00 CET, the contingency procedure for DESTR applies as described in theMethodology and Policies.

DESTR is published via Danmarks Nationalbank's market information distribution platform (DAMP) and the website. The DAMP platform is the main publication channel for DESTR.

DESTR is also available via market vendors:

1. Bloomberg:
• Ticker: <DESTR Index>
2. Refinitiv:
• RIC: <DESTR=DKNA>
• Ticker: <DESTR>

Danmarks Nationalbank does not charge for the use of DESTR or license its use.

Which data in respect of DESTR are published every day?

Together with DESTR, the following related information is published:

• total nominal value of transactions before trimming in DKK million ("Volume")
• percentage of total nominal amount reported by the day's largest contributing bank as a whole number ("Share of volume of the largest active bank")
• publication type: Standard or Republication
• calculation method: Normal or Contingency
• DESTR Compounded Index

Danmarks Nationalbank does not comment on daily developments of the rate and accompanying data.

Where can historical data be found?

Historical data for DESTR and related information can be found in Danmarks Nationalbank statistical data warehouse (link). Data is available next banking day.

How is DESTR governed?

Danmarks Nationalbank is administrator of DESTR and retains the overall responsibility for the rate. To support the governance of DESTR Danmarks Nationalbank has established an internal Oversight Committee to review, challenge and report on all aspects of the determination process of DESTR. 

DESTR complaints procedure

Any person may submit to Danmarks Nationalbank a written complaint about any aspect of the determination process of DESTR that they reasonably consider has significantly affected their interests. The complaint may be submitted by e-mail to destr@nationalbanken.dk with the subject "DESTR COMPLAINT".

Danmarks Nationalbank strives to respond fairly, consistently and in a timely manner to all reasonable complaints submitted. In deciding whether to investigate a complaint, Danmarks Nationalbank will consider its severity and significance based on the information contained in the written complaint, including any additional information the Danmarks Nationalbank may ask the complainant to provide. If deemed relevant the Oversight Committee will be informed of the written complaint.

What is the DESTR Compounded Index?

In addition to DESTR, Danmarks Nationalbank publishes a compounded index calculated entirely based on the historical daily values of the DESTR. The publication rules and platforms will follow those of DESTR. The compounded DESTR index allows the calculation of a compounded DESTR average rate over any other tenor of choice. The precise calculation and publication rules for the DESTR compounded index can be found here.

Bloomberg ticker: <DESTRCMP Index>

Danmarks Nationalbank does not charge for access to the Compounded DESTR Index, nor does it license its use.

What is pre-DESTR?

Pre-DESTR is a calculated rate thas has been calculated using the same calculation method and data base as DESTR. pre-DESTR is available from 1 March 2017 to 31 March 2022.

Pre-DESTR were published during the trial period for DESTR and also formed the foundation for the spread determination in the transition from the Tom/Next rate to DESTR (link).

Historical data for pre-DESTR can be found in Danmarks Nationalbank's statistical datawarehouse (link).

How does the transition from the Tom/Next rate to DESTR take place?

When Danmarks Nationalbank assumed responsibility of DESTR in November 2020, the Working Group on Short-Term Reference Rates were established subsequently. The purpose of the Working Group was to

1. recommend the preferred short-term reference rate in Danish kroner (see recommendation);
2. and if DESTR was chosen as the preferred reference rate, develop an adoption plan for DESTR. This included a recommendation for the transition away from the existing reference rate, Tom/Next, to DESTR and a plan for the discontinuation of the Tom/Next rate (see recommendation). 

Publications from the Working Group, agendas, meeting summaries and the terms of reference of the Working Group can be found here.

Following the recommendation from the Working Group, the administrator of the Tom/Next rate Danish Financial Benchmark Facility (DFBF) changed the methodology of the Tom/Next to become DESTR plus 19.0 basispoints from the day of launch for DESTR in the transition period (link).

The final cessation of the Tom/Next rate will take place 1 January 2026 following the transition period to DESTR.