Danmarks Nationalbank will undertake ownership and become administrator of the new Danish reference rate, DESTR, scheduled to be launched in the beginning of 2022 following a test period in 2021. Similar reference rates are managed by central banks in other countries.
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 in Denmark that a short-term transaction-based reference rate is introduced in Danish kroner in line with international standards.
DESTR is based on overnight borrowing transactions, which Danmarks Nationalbank will collect from a broad group of banks as part of a new statistic for 1-day money market rates. The new statistic is set to be expanded to a broader range of money market rates and foreign exchange transactions in coming years.
Furthermore, Danmarks Nationalbank will establish a working group with participation from the banking sector that will prepare a proposal for the transition from and discontinuation of the existing short-term reference rate, Tom/Next rate.
This site will be updated as more information becomes available.