BoE and FCA Announce Next Phase of LIBOR Transition

Last Wednesday, November 29th, the Bank of England (BoE) and the Financial Conduct Authority (FCA) announced the next phase of work with market participants on LIBOR transition.

According to their press release, from January 2018, the market-led Working Group on Sterling Risk-Free Rates will have an extended mandate and broader participation.

Membership of the Working Group, which will be by invitation of the BoE and FCA, will be broadened to include investment managers, non-financial corporates and other sterling issuers, infrastructure firms and trade associations, alongside banks and dealers. 

A key near-term priority for the Working Group will be to make recommendations relating to the potential development of the Sterling Overnight Index Average (SONIA) reference rates. This work is already underway and a public consultation is planned for the first half of 2018.

This past October, SFIG's LIBOR Task Force submitted a response to the Federal Reserve Board's request for information related to three potentially new reference rates. SFIG's comments included broad consensus to support the development of new benchmarks while highlighting several potential issues, including the need for the development of a term curve as well as a few operational concerns. If you would like to join the LIBOR Task Force, please contact

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