Featured Product

    BoE Statement on Conventions for Referencing SONIA in New Contracts

    August 08, 2019

    BoE released a statement from the Working Group on Sterling Risk-Free Reference Rates, along with an aggregated summary of responses to the March 2019 discussion paper, on SONIA conventions and SONIA referencing in new contracts. The discussion paper captured the most significant conventions identified at the time by the working group. In addition, the Infrastructure sub-group published a working paper to aid in the operational processing of loans referencing alternative risk-free rates, focusing on potential enhancements to loan systems for vendors and proprietary system owners. The sub-group has also published an update to its standing priority list with regard to infrastructure developments for the risk-free rate transition in UK markets.

    The purpose of the statement is to continue to support market participants in their adoption of SONIA and provide further information when referencing SONIA in bonds, loans, and derivatives. In doing so the working group aims to further support template documentation and liquidity in SONIA referencing products. The March discussion paper had invited market participants to provide feedback to support the specific transition work program. It captured the most significant conventions identified at the time by the working group and provided information intended to support market participants in their preparations for addition of SONIA as well as infrastructure providers and calculation agents in their system development. 

    The Working Group on Sterling Risk-Free Reference Rates was established in 2015 to implement the FSB recommendation to develop alternative risk-free rates for use, instead of LIBOR-style reference rates. In April 2017, the working group recommended SONIA benchmark as their preferred risk-free rate and since then the group has been focused on how to transition to using SONIA across sterling markets. 

     

    Related Links

    Keywords: Europe, UK, Banking, Securities, SONIA, LIBOR, Risk-Free Rates, Interest Rate Benchmarks, BoE

    Related Articles
    News

    APRA Updates Validation and Derivation Rules in September 2020

    APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    September 24, 2020 WebPage Regulatory News
    News

    EC Proposes Frameworks for Crypto-Assets and Operational Resilience

    EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.

    September 24, 2020 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposals to Amend Securitization Framework

    ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.

    September 24, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 23, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Capital Adequacy Requirements of Banks

    MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.

    September 23, 2020 WebPage Regulatory News
    News

    FCA to Begin to Move Firms to New Data Collection Platform RegData

    FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.

    September 23, 2020 WebPage Regulatory News
    News

    ISDA Expects IBOR Fallbacks to be Effective by End of January 2021

    ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.

    September 23, 2020 WebPage Regulatory News
    News

    APRA Reviews Repayment Deferral Plans, Identifies Best Practices

    APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.

    September 22, 2020 WebPage Regulatory News
    News

    ESAs Assess Risks to Financial Sector After COVID-19 Outbreak

    ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.

    September 22, 2020 WebPage Regulatory News
    News

    BoE Confirms Withdrawal of COVID Corporate Financing Facility

    BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.

    September 22, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5836