The Bank of England (BoE) has published a consultation document for a new sterling money market data collection. The consultation also sets out, at a high level, how the BoE plans to use the data collection to reform the Sterling Overnight Index Average (SONIA) benchmark interest rate.
The BoE intends to collect transaction-level data from banks, building societies and major investment firms on their secured and unsecured sterling money market borrowing activity. The data will not only provide the BoE with a better understanding of developments in short-term interest rates but will also provide a richer picture of activity in the sterling money market, enabling the BoE to better assess overall market effectiveness.
View A new sterling money market data collection and the reform of SONIA, 30 July 2015