Alternative interest rates


25 May 2020

Fixing process for the new reference rate

The Fixing process is hereby published by the working group for alternative reference rate (AGAR). This document shows in more details how the alternative reference rate is calculated. The document describes, among other things, which types of controls that is needed to guarantee the quality of the underlying transaction data. It is also described how the trimming of the highest and lowest rates will be done every day. The document shows what rule that should be used if the number of transactions or reporting banks are to small. Finally, the document also describing guidelines for back up-routines if there will be errors in the fixing process.

Much of this framework is based on the answers from the consultations that AGAR did during last year. Some of the rules have been used in other countries that has developed alternative reference rates and some of the rules have been used in a successful way in the administration of Stibor.

With this publication the work that AGAR has done is completed. The work on publishing an interest rate that can work as an alternative reference rate for financial contract in SEK will now be handled by the Swedish Riksbank.

Link to the Fixing process