Adaptation to the Benchmark Regulation

To adapt Stibor to the Benchmark Regulation, the Swedish Bankers’ Association formed a wholly-owned subsidiary – Financial Benchmarks Sweden AB (FBS) – which took over the Bankers’ Association's Stibor operations as of 1 January 2019.

In October 2018, the EU Commission published its decision under the Benchmark Regulation, declaring Stibor to be a so-called critical benchmark in Sweden. Thus Stibor is listed in the EU Commission's register of critical benchmarks. Among other things, the regulations place extensive demands on monitoring, supervision, documentation and transparency on the part of the administrators of the interest rate.

In the spring of 2019, the European Commission announces a political agreement, to grant providers of critical benchmarks, as well as benchmarks with administrators outside the EU, two extra years until 31 December 2021 to comply with the new Benchmark Regulation requirements. Since Stibor is classified as a critical benchmark, an application for authorisation must be submitted to the Swedish Financial Supervisory Authority by 31 December 2021. FBS has decided to use some of the extra time that has now been granted for an adaptation to BMR, but also ensure that an application for authorization will be submitted in 2020.

Considerable work is currently in progress to meet the requirements for authorization by then. Stibor has hitherto been published free of charge since its introduction at the end of the 1980s. Administration and maintenance costs for Stibor operations will increase due to the Benchmark Regulation and the adjustments it requires. It is therefore likely that license fees will be charged for the ability to receive Stibor in real time. Stibor will continue to be available free of charge, but by delayed, open publication.