Transaction-based reference rate

Abstract icon Weekly update of pre-DESTR.

A time-series for pre-DESTR will be updated weekly based on daily reporting from the reporting banks and is available here (link).  


In November 2020, Danmarks Nationalbank assumed responsibility for the new reference rate Denmark Short-Term Rate (DESTR)from Finance Denmark. 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.

In June 2021, Danmarks Nationalbank published a report with an evaluation of the data and methodology behind DESTR, cf. DESTR – Review of Underlying Data and Methodology. 

The DESTR methodology was first presented in a public consultation by Finance Denmark in May 2019, when a working group commissioned by Finance Denmark had developed a new reference rate in Danish kroner based entirely on O/N-deposit transactions. The consultation suggested a new reference rate similar to the euro short-term rate (€STR) of the European Central Bank (ECB). The consultation showed a broad support for the new reference rate among market participants and Danmarks Nationalbank.

The new evaluation is based on a collected dataset covering the period March 2017 to April 2021. The collected data shows that O/N-deposits remain the most suitable segment for calculating a new transaction-based reference rate in Danish kroner, and that the proposed calculation methodology based on a volume-weighted 12.5 per cent trimmed mean remains valid for the Danish market. Thus, the main conclusions drawn from the public consultation in 2019 are unchanged.