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Supplementation and amendment of the Rules on determining the ROBID and ROBOR reference rates

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The National Bank of Romania took steps to revise the Rules on determining the ROBID and ROBOR reference rates (hereinafter referred to as the “Rules").

Specifically, it envisaged:

  1. to harmonise the Rules, amid the developments in the EU-wide legal framework, with the best practices, namely to bring up-to-date the terminology used especially as regards the entities involved in relation to determining and providing ROBID and ROBOR reference rates; and

  2. to revise some technical parameters of the operational framework governing the Fixing process, mainly: to narrow the spread between bid and ask rates submitted by participants; to extend the timeslot relative to the quotation obligation; to increase the maximum value of transactions related to the firm quotations submitted by participants; and to no longer determine and publish the 9M reference rates.

Basically, the adopted amendments are meant to help give additional impetus to interbank money market activity, improve the price-setting mechanism and ensure better representativeness of the determined ROBID and ROBOR reference rates by enhancing their capacity to reflect the reality of Romania’s interbank money market that they intend to measure.

ROBID and ROBOR reference rates will further be calculated as before, based on the firm quotations provided by the participating credit institutions.

The National Bank of Romania in cooperation with ACI Romania – Financial Markets Association will continue to harmonise the Rules on determining the ROBID and ROBOR reference rates with the legislative and practical developments seen at European and international levels. The aim is to ensure alignment with the principles, standards and procedures applicable to a central bank acting as the Administrator of reference rates.

The new rules on determining ROBID and ROBOR reference rates are available here and will become operational starting 11 November 2019 .

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