9 November 2021
Danmarks Nationalbank starts publishing DESTR, Denmark Short-Term Rate, on 4 April 2022. The first publication will reflect trading activity on 1 April 2022. Thus, DESTR will be available for use in financial contracts with effect from 1 April 2022. More information, including the methodology for calculating DESTR, can be found on Danmarks Nationalbank's website.
In January 2021, Danmarks Nationalbank established the Working group on short-term reference rate with participation from the Danish financial sector. The working group has recommended DESTR as the preferred short-term reference rate in Danish kroner and proposed a transition away from the Tom/Next rate to DESTR. Danmarks Nationalbank supports the working group's recommendation on the transition from the Tom/Next rate to DESTR as well as the cessation of the Tom/Next rate and will assist on calculating the realized spread between the Tom/Next rate and pre-DESTR, cf. recommendation from the working group.
"The launch of DESTR is an important step forward for the financial market in Danish kroner and we support the working group's recommendation on the cessation of the existing Tom/Next reference rate in favor of DESTR. With DESTR, Denmark will have a robust reference rate in line with other countries." says Governor Signe Krogstrup.
Furthermore, Danmarks Nationalbank will publish a compounded DESTR index beginning on 4 April 2022. The index will ensure the possibility of calculating compounded average rates for all periods. A similar index is published by other central banks as well.
Enquiries can be directed to press advisor Ole Mikkelsen on tel. +45 3363 6027.