The Riksbank offers central counterparties deposit and lending facilities

The Riksbank, Sweden’s central bank, has announced two important changes in its financial services for central counterparties (CCPs) that clear transactions in Swedish kronor and are participants in the RIX-RTGS system. These changes are intended to better support the financial infrastructure and stability of the Swedish monetary system by providing CCPs with more flexibility in managing their liquidity and helping the Riksbank maintain control over interest rate fluctuations.
(1) Establishment of a special lending facility: Starting from November 15, 2023, the Riksbank will provide a special lending facility for CCPs. This facility is designed to assist CCPs in quickly accessing funds in the event of an unexpected need for liquidity. It aims to prevent disruptions in the interest rate setting that the Riksbank uses for its monetary policy. The Riksbank is concerned that – if CCPs face sudden liquidity needs and try to convert their assets into cash through market solutions – it could lead to significant and sudden fluctuations in market interest rates. The lending facility aims to address this issue and enhance the resilience of financial markets.
(2) Replacement of the existing deposit facility: In conjunction with the introduction of the new lending facility, the Riksbank will replace its current deposit facility for CCPs with a new one. In this new deposit facility, CCPs participating in RIX-RTGS and clearing in Swedish kronor will have the option to place their funds overnight with the Riksbank at an interest rate corresponding to the deposit rate. CCPs can apply for access to this new deposit facility starting from November 15, 2023.