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Rules for participating as a CIBOR supporter in group 1

To participate as a CIBOR supporter in group 1 a financial institution must honour the requirements below.

Product portfolio
Market-maker in three of the four following money market products:

Repo in Danish government bonds
FRAs or CIBOR futures
EUR/DKK settlements
T/N IRS interest (CITA interest swaps)
With regards to amounts and prices we refer to the established market-maker arrangements.

Opening hours
8.30AM -  4.00PM on all Danish banking days.

Fixing quotas
Prices always by direct call (phone/Reuter). General prices at Danish brokers.

Quotas are fixed for CIBOR on all Danish banking days.

CIBOR supporters residing outside of Denmark can refrain from setting CIBOR on public holidays in the CIBOR supporter’s home country. If the CIBOR supporter wishes to make use of this option, they must inform Finance Denmark at the start of the new calendar year of the days, where CIBOR will not be set.

Lines
Setting up sufficient lines to all other CIBOR supporters is required.

Staffing
There must be an appropriate number of employees, who solely trade the specified products, in order to handle the product portfolio with reasonable quality. It is assessed that this will normally be minimum three fulltime employees.

Enrolment
Consideration as a CIBOR supporter requires that the financial institution in question has been active on the money market for a period of at least one year. An application for enrolment as a CIBOR supporter should be sent to Finance Denmark and the application will be considered subsequently at the next committee meeting. If it is reasonably justified that the financial institution that has submitted an application would be able to live up to the requirements mentioned above, then the institution will enter an active trial period of up to one month with the aim of testing the quality of the individual product areas. If the trial period proceeds in a satisfactory manner, the committee will recommend to Finance Denmark’s board of directors that the financial institution in question is enrolled as a CIBOR supporter.

A CIBOR supporter must technically be able to report on CIBOR.

Resignation and exclusion
A financial institution can at its own request resign as CIBOR supporter with one month’s written notice to Finance Denmark. Re-enrolment can only take place after discussions in the committee and subsequently after a trial period of up to one month.

If a CIBOR supporter does not live up to their obligations in relation to the current rules, the committee can recommend to Finance Denmark’s board of directors that the financial institution in question is excluded from the circle of CIBOR supporters. The decision on recommending exclusion requires unanimity in the committee. If the CIBOR supporter in question is represented in the committee, this member does not have voting rights in deciding the matter and only unanimity amongst the remaining committee members is required. The exclusion of a CIBOR supporter takes effect from the moment that Finance Denmark’s board of directors makes a decision on the matter.

Day-count convention
Lending interest rates, which refer to the CIBOR rates, must be calculated in accordance with the day-count convention on the money market, which is ACT/360.

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Finance Denmark is an business association for banks, mortgage institutions, asset management, securities trading and investment funds in Denmark. Our members are mortgage institutions, banks, savings banks, cooperative savings banks, Danish branches of foreign banks, asset managers, Danish securities dealers and investment funds. 

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