Danish Financial Supervisory Authority designates CITA as a significant benchmark under the EU Benchmark Regulation

The Danish Financial Supervisory Authority has designated the Copenhagen Interbank Tomorrow/Next Average (CITA) as a significant benchmark under the EU Benchmark Regulation’s opt-in process in Article 24(7). The designation keeps CITA within the regulation’s scope and subject to Finanstilsynet supervision following the 1 January 2026 changes that narrowed the regulation’s general application. The decision follows a written request from the benchmark administrator, Danish Financial Benchmark Facility (DFBF), which argued that CITA’s relevant use value is below but close to EUR 50bn and highlighted its widespread use in Denmark’s mortgage market. Finanstilsynet assessed that CITA’s discontinuation, unavailability or unreliability could have materially negative consequences and concluded it meets the criteria for “significant” status, including the quantitative opt-in condition of a relevant use value above EUR 20bn; it also noted CITA’s role as a recommended fallback for CIBOR-based mortgage loans and bonds and as a forward-looking benchmark for the Denmark Short-Term Rate (DESTR). DFBF is already authorised under the Benchmark Regulation and does not need a new authorisation; ESMA’s register will be updated to reflect CITA’s designation. If DFBF seeks to have the designation lifted, it can do so no earlier than four years from the designation date, and Finanstilsynet may lift it on request unless CITA meets the EUR 50bn threshold for significant benchmarks or the qualitative criteria set out in the regulation. Finanstilsynet also noted that existing authorised Benchmark Regulation administrators as of 31 December 2025 can generally retain their authorisation until 30 September 2026 while coverage under the revised regime is clarified.