Date:
09.12.2013
Strengthening Nibor – Oslo Børs calculation agent and monitoring
body for Nibor
Finance Norway has during the fall of 2013 amended the Nibor framework with the aim of
further strengthening market confidence in the process of fixing Nibor. The most important
part of the changes entering into force December 9 2013 is that Oslo Børs – the Norwegian
Stock Exchange – is given the role as calculation agent for Nibor as well as the new function
as Nibor monitoring body to support the Nibor compliance committee.
Further strengthening of the Nibor rules
Nibor (Norwegian Interbank Offered Rate) is a collective term for Norwegian money
market rates with different maturities. Nibor shall reflect the interest rate lenders require
for unsecured money market lending in NOK to a leading bank active in the Norwegian
money and foreign exchange markets, with delivery two days after the trade date.
With the aim of ensuring the trust in Nibor Finance Norway continuously assess the
possibilities of strengthening the Nibor framework. In spring 2013 the requirements on the
panel banks was tightened and a stronger governance structure adopted. On December 9
2013, new changes in the Nibor rules entered into force, reflecting Oslo Børs taking the
role as calculation agent and a new monitoring function for Nibor. In addition, some
changes have been made to be in better compliance with internationally agreed
recommendations / principles for the setting of benchmarks published during the summer
of 2013.
Nibor compliance committee
The Nibor compliance committee shall, according to amendments to the Nibor rules
adopted May 22 2013, monitor compliance with the Nibor rules, consider requests
regarding the correctness of Nibor and make recommendations concerning withdrawal of
approval as a Nibor panel bank.
Nibor compliance committee has now been established, consisting of seven members well
familiar with the Norwegian money market. Three members represents Nibor-banks, thus
not being in the majority in the committee.
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Oslo Børs – Nibor calculation agent and Nibor monitoring body
According to an agreement between Oslo Børs and Finance Norway as from December 9
2013 Oslo Børs takes on the role as calculation agent for Nibor as well as a new function as
monitoring body for Nibor.
Oslo Børs will as calculation agent for Nibor receive submissions from each of the six Nibor
banks, calculate Nibor and make the rates available. Furthermore, Oslo Børs will make
available a new set of indicative deposit rates, reflecting where the banks during the day
believes current money market rates to lie. Indicative deposit rates are not covered by the
Nibor rules or subject to any other form of regulation or control, and are not intended to
be used as a benchmark for pricing, contracts etc. However, at the time of the Nibor fix,
panel banks' Nibor submissions will be identical to the indicative deposit rates (ask rates)
that the individual panel bank has submitted to Oslo Børs.
The Nibor rules in force December 9 2013 allow for corrections of errors in submissions to
Nibor and the fixing, provided that a new fixing can be published within one hour after the
initial fixing. The fixing may under extraordinary conditions be postponed. The market shall
be informed if Nibor is corrected, delayed or if one or more of the Nibor maturities,
according to the Nibor rules, is not be calculated as a consequence of too few submissions.
Oslo Børs as monitoring body for Nibor shall support the Nibor compliance committee. The
role is separated from the role as calculation agent.
Oslo Børs will use its existing infrastructure and systems for the submission, calculation,
distribution and surveillance of the interbank rates.
Guidelines for the panel banks’ Nibor submissions
The panel banks’ submissions to Nibor shall be set according to general requirements set
out in the Nibor rules. Additional guidelines have now been adopted. The guidelines, which
reflects current practices, are published December 9 2013 to enhance Nibor transparency.
Fewer maturities in 2014
From January 1 2014 Nibor will be calculated for the maturities of 1 week, 1, 2, 3 and 6
month only. The decision from May 2013 to end the fixing of the other five maturities was
based on the fact that there is less market activity on these maturities and less use of these
rates as references.
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