22 April 2020
We've responded to the Bank of England consultation on its proposals to produce a daily index to support the use of SONIA by simplifying the calcuation of interest rates.
Ahead of the switch from LIBOR to SONIA, the Bank of England issued a consultation seeking seeking views on its intention to publish a daily SONIA Compounded Index.
The consulation also sought views on the usefulness of the Bank publishing a set of compounded SONIA Period Averages, which would give users easy access to SONIA interest rates compounded over a set time period.
We have previously called for the Bank to publish this index to support smaller organisations and ensure a more level playing field in the transition from LIBOR.
In this response, we: