The development of the SWESTR rate by the Riksbank provides a required fallback to STIBOR and further may provide market participants and other users of STIBOR with an alternative short term reference rate that users may wish to transition towards. A transition away from Tom/Next STIBOR to the overnight SWESTR rate will be market-led, decided by market participants and users of STIBOR rather than it being a decision for the SFBF. Should such a transition occur there may develop the case where Tom/Next STIBOR is no longer broadly referenced. At such a time a planned cessation of Tom/Next STIBOR could be proposed by the SFBF in accordance with its policies aligned to the requirements of BMR. In the meantime, the SFBF recognises the importance of Tom/Next STIBOR in the settlement of local currency derivative products and the requirement therefore, for it to be maintained to avoid any unnecessary market uncertainty and disruption.
Frequently Asked Questions
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