Changes to STIBOR benchmark data subscription
In preparation for authorisation of the STIBOR benchmark, under EU Benchmark Regulation 2016/1011, the Swedish Financial Benchmark Facility (SFBF), has undertaken an extensive review of all aspects of the STIBOR benchmark.
The review, in co-ordination with the Swedish Financial Supervisory Authority (Finansinspektionen), has led to a requirement to reform certain aspects of the benchmark including its calculation methodology, determination and governance procedures, and operational activities, to ensure full compliance with the Regulation. The principle aim of the reform is to ensure the ongoing integrity and reliability of the STIBOR benchmark for all financial market participants.
The review and reforms being implemented to the STIBOR benchmark necessitates changes to the subscription fees, which will take effect from the 1st of February 2021 for new subscriptions and from the 1st May 2021 for existing subscriptions to correspond with the renewal of existing subscription agreements.
“The evolution of STIBOR that SFBF is undertaking involves significant investments in systems and processes as well as additional cost for revised regulatory fees in order to meet the regulatory oversight and governance requirements of a critical benchmark” commented Catharina Hillstrom, CEO of SFBF, “These costs need to be shared with the end users to ensure SFBF is financially viable and able to provide a sustainable benchmark over the long term.”