LIBOR-SONIA index - consultation response

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:

• State our support for the publication of the SONIA Compounded Index.
  
  
• Support the Bank’s design of the compounded index.
  
  
• Ask the Bank to ensure it has consulted sufficiently with smaller organisations to understand if there are benefits in producing SONIA Period Averages.