The Reference Rates page displays various predefined interest rates, such as SARON, SOFR, and Euribor, which are automatically downloaded and updated regularly from external market sources. This ensures that users always have access to up-to-date rates without needing to update them manually.
However, if users prefer to apply their own interest rate expectations, they can do so by adding a Custom Rate. A custom rate can be added to any existing set of rates via ‘New’ or via ‘Custom’ section, allowing users to override system-provided reference rates until their specified date.
Please note that to access the Reference Rates page, it must first be enabled via the ‘MORE TOOLS’ menu option.
For more details on how reference rates interact with margin calculations, please refer to the loan description.
- Date – indicates the date when the rate will next be applied to calculations
- Rate value – shows the current rate
- Manual – if this box is ticked, the selected rate becomes ‘frozen’ and will not be automatically updated by the system, allowing for manual control over the rate
SARON – (Swiss Average Rate Overnight) is an overnight interest rate benchmark – also known as a reference rate or a benchmark rate. It is based on the Swiss (CHF) repo market. The Swiss Stock Exchange (SIX) is the administrator of SARON and is responsible for its daily calculation and publication.
SOFR – (Secured Overnight Financing Rate) – is a benchmark interest rate for dollar-denominated derivatives and loans. The New York Fed publishes the SOFR on the New York Fed website daily.
Euribor – (Euro InterBank Offered Rate) – is the average interest rate at which a selection of large European banks provide one another with short-term loans in euros. Euribor is calculated by a benchmark administrator called Global Rate Set Systems Ltd. and offered by the European Money Markets Institute (EMMI).
How to add a new Reference Rate
Users can add new rates to the Existing set of SARON, SOFR, Euriborn rates by clicking on the ‘New’ button and entering the ‘Rate value‘ and ‘Date‘. The ‘Manual‘ checkbox will be checked automatically, indicating that this rate won’t be overwritten by the system.
When a new rate is added, the system will ignore all currently imported reference rates and use the user-entered rate until the specified ‘Date’ (e.g., 28/08/2025). Once this date is reached, the system will resume downloading and using the imported rates.
How to add a Custom Rate
In some cases, users may need to enter a custom interest rate instead of relying on system-imported reference rates. This could be necessary for internal forecasting, modeling specific financial scenarios, or handling temporary rate adjustments.
To add a custom rate, click the ‘New’ button and enter the ‘Rate Value’ and ‘Date’. The ‘Manual’ checkbox will be checked automatically, ensuring that this rate is not overwritten by the system. The system will use the manually entered rate until the specified ‘Date’, after which it will revert to downloading and applying the standard reference rates.