The overall objective of the Bank of England Working Group on Sterling Risk-Free Reference Rates (Working Group) is to enable a broad-based transition to SONIA by the end of 2021 across the sterling bond, loan and derivative markets. This will reduce the financial stability risks arising from widespread reliance on sterling LIBOR.

In March 2019 the Working Group issued a discussion paper addressed to market participants who are considering how to reference SONIA in new contracts. It was intended to raise market awareness of the identified conventions for referencing SONIA, and, in doing so, delivers the Working Group’s key milestone of highlighting how to reference SONIA in new contracts. The deadline for responding to the discussion paper was 30 April 2019.

On 7 August 2019, the Working Group published a statement and summary of responses to the discussion paper. The responses will be discussed in the Working Group’s forthcoming meetings.