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 has launched a consultation on term SONIA reference rates (TSRRs). It seeks feedback on specific recommendations and encourages market participants to take forward work on the development of robust TSRRs, which members anticipate could be available in the second half of 2019. Feedback should be provided by 30 September 2018.
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.
Consultation on Term SONIA Reference Rates
Working Group on Sterling Risk-Free Reference Rates – Terms of reference
Working group on sterling risk-free reference rates - Timeline with Milestones