will continue with all those csds that signed today ’ s memorandum of understanding. one of the key aspects that will need to be included in the contract with the csds is the costs associated with using t2s when it is operational. as you know, t2s will be operated on full cost recovery, so the eurosystem needs to estimate not only the total cost of building the platform and operating it, but also to make assumptions on transactions volumes many years in the future. workshops with market participants have been held to discuss pricing issues. there are still a number of issues to be resolved but i am confident that we will succeed by the end of this year in order to provide assurance to csds in the contractual arrangement to be prepared next year. much has been achieved, much remains to be done. with the memorandum of understanding of today – a year after we have started – we are on track to meet the ultimate deadline of having t2s operational by 2013. i would now first invite my colleagues from the csds to say a few words on t2s, before i give the floor to jean - michel godeffroy, the newly appointed chairman of the t2s programme board.

soon seemed most appropriate was to move away from the system of reference rates based primarily on banks'judgements and instead calculate and publish new, fully transaction - based, reference rates. 3 among other things, international bodies such as the financial stability board ( fsb ) and the international organization of securities commissions ( iosco ), have issued recommendations and principles to make reference rates more based on actual transactions in the market. this can be achieved by focusing on the shortest maturities at which most transactions occur, and by broadening the base for the reference rate by including more transactions than those between the panel banks. as i shall discuss later, this data can also be used to replace longer - term reference rates. examples of such fully transaction - based reference rates now published by central banks are the bank of england's sonia, the european central bank's €str new york fed ’ s sofr and norges bank ’ s nowa. in denmark, nationalbanken will soon start publishing destr. in some cases, it has also been decided that the new, transaction - based reference rates will replace the traditional interbank rates. for example, the family of reference rates most widely used globally, libor, will be phased out. in the euro area, switzerland and norway, interbank rates for the shortest maturities are being phased out. 2 this means that enormous contract values need to be migrated, in many different types of contract. this also affects swedish participants that have entered into contracts with libor as the reference rate. with regard to other currencies, the new and the old reference rates will exist side by side ; but in these jurisdictions, too, there is a clear ambition to use the transaction - based reference rates to an increasing extent. therefore, in our eyes, and in the eyes of many other leading central banks, transaction - based interest rates appear to be the way forward to create more reliable reference rates. swestr – the riksbank's response to the shortcomings in stibor it is in this context that the riksbank has undertaken to calculate and publish a fully transaction - based reference rate, swestr ( swedish krona short - term rate ). the test period for swestr ended at the beginning of september, and swestr can now be used in financial contracts. the riksbank calculates swestr based on transactions in swedish kronor that are made in the money market from the current business