The Financial Conduct Authority (FCA) and the Bank of England (BoE) have outlined the "next phase" of plans that will work towards replacing the Libor benchmark with the Sterling Overnight Index Average (SONIA).
From January 2018 the market-led Working Group on Sterling Risk-Free Rates will have an extended mandate and broader participation in making the transition, with public consultation expected to be published in the first half of 2018. SONIA is a near risk-free alternative derivatives reference rate that reflects bank and building societies' overnight funding rates in the sterling unsecured market. FCA bans Libor rigger Hayes The regulator said in a statement the working group's new mandate will be "to catalyse a broad-based transition to SONIA over the next four years across sterlin...
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