The Bank of England (BoE) has published its second consultation paper on the reform of the Sterling Overnight Index Average (SONIA) interest rate benchmark. The BoE’s aim in reforming SONIA is to strengthen a benchmark which is considered critical for the sterling financial markets, but which is currently based on a market for brokered deposits which has limited transaction volume. The consultation paper sets out the BoE’s more detailed proposals for the reform of SONIA, and provides the first indication of the likely characteristics of the reformed benchmark, drawing on data submitted by banks and building societies as part of the BoE’s Sterling Money Market data collection.

View BoE consults on detailed proposals for SONIA reform, 10 October 2016