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Oslo Børs now calculates NIBOR rates

With effect from 9 December, Oslo Børs calculates NIBOR rates for Finance Norway.

In addition to calculating NIBOR rates, Oslo Børs is also responsible for supervising reporting of the rates used for the calculation by the banks, whereas Finance Norway is responsible for determining the rules for NIBOR.

Oslo Børs will use its existing infrastructure and systems for the submission, calculation, distribution and especially surveillance of the interbank rates. This means that the six banks participating in the NIBOR panel (known as the panel banks) will submit their interest rates through the Oslo Børs trading system, which will carry out the calculation of the average rates in accordance with the NIBOR rules as determined by Finance Norway.

NIBOR (Norwegian Interbank Offered Rate) is a collective term for Norwegian money market rates with different maturities, ranging from one week to one year. With effect from 1 January 2014, the number of maturities will be reduced from ten to five. The longest maturity will then be six months. NIBOR is calculated as an average of what the panel banks indicate that they would require in interest on unsecured loans to other banks denominated in Norwegian kroner with two-day delivery. Interest rates are indicative and not based on actual trades.

NIBOR with 3-month maturity is widely used as a reference rate in the professional market. This applies to loans and deposits as well as derivatives. NIBOR is also used in contracts between private parties. The termination of NIBOR rates for some maturities with effect from the New Year may make it necessary to amend agreements that refer to NIBOR rates for maturities that will no longer be available.

NIBOR can be seen at: http://www.oslobors.no/markedsaktivitet/nibor

The Author

Klaus Henrik Wiese-Hansen
Klaus Henrik Wiese-Hansen Klaus Henrik Wiese-Hansen is a partner at Steenstrup Stordrange’s office in Oslo, and is a member of the M&A and Corporate Practice as well as the Banking and Finance group. He has 14 years' experience in all aspects of financial markets legislation and asset management, including Private Equity, Investment Fund Management, Securities Legislation, Banking and Finance, Insurance, and M&A with respect to these areas. He has advised numerous Norwegian and foreign institutional clients in all aspects of their businesses relating to the aforementioned legal areas.

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