On 24 March 2021, the Working Group on Sterling Risk-Free Reference Rates, the FCA and the Bank of England (BoE) issued a joint statement welcoming the FICC Markets Standards Board’s (FSMB) publication of a proposed standard recognising the conduct and systemic risk advantages associated with a broad-based adoption of SONIA compounded in arrears and considering selected use cases for Term SONIA reference rates in sterling markets where there is a robust rationale to meet specific needs.

The FSMB’s proposed standard has been made available for public comment in the form of a transparency draft, and the Working Group, the FCA and the BoE encourage all affected market participants to engage with the FMSB directly with their comments and suggestions by the closing date of 28 May 2021.