Catalysing transition to SONIA as the risk-free rate (2018 onwards)
The Working Group’s mandate is to catalyse a broad-based transition to using SONIA – the market’s preferred risk-free rate – as the primary sterling interest rate benchmark in bond, loan and derivatives markets, over the next four years. That reflects concerns about the sustainability of Libor beyond 2021.
The Working Group on Sterling Risk-Free Reference Rates (RGRWG) issued a consultation on forward-looking Term Sonia Reference Rates (TSRR) on 17 July 2018, that closed on 26 October 2018. The consultation attracted 45 responses from a wide variety of market participants. The RFRWG published a summary of responses on 23 November 2018, compiled by the Bank of England acting as RFR Secretariat.
The membership of the Working Group includes banks and dealers, investment managers, non-financial corporates and other sterling issuers, infrastructure firms and trade associations. We have published the full list of member firms and membership selection criteria.
We invite further expressions of interest in participating in transition work either as members of technical sub-groups or market sector forums to share views on aspects of the transition. This includes expressions of interest from professional services firms, in particular accountancy firms, law firms and financial consultancies where the work would be on a pro bono basis to provide expert input to the working group and related sub-groups.
*Please note: Market participants and professional service firms expressing their interest should not use their participation or contribution for marketing purposes.
For more details or to express interest, please contact RFR.Secretariat@bankofengland.co.uk.