Sonia advances: liquidity builds as banks eye interdealer shift

Libor’s successor has some solid footholds. Wider acceptance could come as soon as later this year

In the relinquishing of Libor, the sterling market has an edge over other currencies. Waiting in the wings, sterling has a rate with a 20-plus year history, one the market knows and is used to trading – Sonia, after all, has been around since 1997 and is already used to value around £30 trillion ($38 trillion) of assets a year.

The Bank of England-convened working group on sterling risk-free rates, in a mid-May statement, was breathless on the subject of Sonia’s popularity.

“Sterling

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here