Working groups on alternative reference rates (ARR)

Selection of Nowa as an alternative reference rate

The working group published its recommendation of a reformed version of Nowa (pdf) (Norwegian Overnight Weighted Average) as the alternative reference rate in September 2019. Norges Bank took over as administrator of Nowa on 1 January 2020 and published updated principles for calculating and publishing Nowa.

Use of Nowa as an alternative reference rate

The second phase of the group’s work on alternative reference rates is focusing on how to transition to using Nowa as an alternative reference rate. The working group has divided the work into two sub-groups:

1. Market standards and fallback solutions
2. Establishing an OIS (Overnight Index Swap) market in NOK

Published reports

Reports by subgroup 1 - Market standards and fallback solutions:

• Guide for using Nowa in financial contracts and as a fallback solution (pdf)
  December 2021
• Update: Publishing fallback rates for Nibor (pdf) 
  November 2021
• Recommended market conventions for Nowa and fallback solutions in the event of a cessation of Nibor (pdf)
  December 2020
• Fallback solutions and term- and spreadadjustment between Nibor and Nowa in the event of a cessation of Nibor (pdf)
  September 2020
• Market conventions for Financial products Referencing nowa (pdf)
  June 2020

Reports by subgroup 2 - Establishing an OIS (Overnight Index Swap) market in NOK:

• Update 3: Establishing an OIS market in NOK (pdf)
  April 2022
• Update 2: Establishing an OIS market in NOK (pdf) 
  October 2021
• Update 1: Establishing an OIS market in NOK (pdf) 
  June 2021
• Establishing an OIS market in NOK (pdf)
  December 2020
• Establishing an OIS (Overnight Index Swap) market in NOK (pdf)
  June 2020

Response to consulation papers from sub working groups

• Response from OIS working group on consultation paper for Market Conventions for Financial Products Referencing Nowa (pdf)

Organisation

The original working group continues to be the main group for coordinating further work. The sub-groups will regularly update the main working group on their work. The mandates and lists of participants for the main working group and the two sub-groups are available here.

Mandate and members