The Working Group on short-term reference-rates proposes the following transition away from Tom/Next to DESTR: Once DESTR is launched on 1 of April 2022 at the latest, the Tom/Next will be recalibrated to DESTR plus a spread adjustment. The spread should be based on the historical daily differences between DESTR and Tom/Next observed from 19 March 2021 until a date prior to the launch of DESTR. No trimming should apply for the spread calculation. The specific end date for the observation period will be decided by Danish Financial Benchmark Facility, the administrator of Tom/Next. Once DESTR is launched and Tom/Next has been recalibrated, a transition period will follow in which market participants should start trading DESTR related instruments instead of Tom/Next. It is the Working Group's recommendation that the transition period ends on 1 January 2026, where the recalibrated Tom/Next will cease to exist.
The Working Group will consider all comments received by 3 November 2021. An anonymised summary of the comments and the final recommendation from the Working Group will be published shortly thereafter. All contributions should be submitted via email to DESTR@nationalbanken.dk under the heading 'Comments to consultation'.