This reflects feedback received on the Bank’s July 2015 consultation, A new sterling money market data collection and the reform of SONIA.
Respondents to the consultation expressed broad support for the Bank’s plans for the reform of the Sterling Overnight Index Average (SONIA) benchmark interest rate. Many noted that the inclusion of deposit transactions negotiated bilaterally as well as those arranged via brokers was a logical step which should significantly increase the volume of transactions in the calculation of the benchmark, thereby enhancing its robustness.
The Bank has responded to feedback by allowing approximately three further months preparation time for reporting institutions to prepare for the start of the new data collection.
The Bank today also confirms that the daily publication of the SONIA benchmark will be moved to 09.00 on the business day following that to which the rate refers, as was proposed in the July consultation. This change will come into effect at the point the Bank commences the publication of reformed SONIA, anticipated to be in Q2 2017.
The Bank will consult on its detailed plans for the reform of SONIA in late summer 2016.