Establishing an OIS market in NOK
Letter on 31 August 2020 to the working group on alternative reference rates denominated in NOK (ARR).
On 24 June, the working group for alternative reference rates for contracts denominated in NOK (ARR) published a consultation report with proposals for establishing a market for NOK Overnight Index Swaps (OIS).
Norges Bank has no specific comments on the proposals in the consultation, but we look favourably on the development of such a market. The establishment of a liquid OIS market linked to the reference rate Nowa can contribute to a better-functioning interest rate market in Norway. It can provide market participants with better opportunities to hedge or assume risk associated with changes in Norges Bank’s policy rate, and help stimulate issuance of debt linked to Nowa.
Olav Andreas Bø
Ketil Johan Rakkestad