Sonia term rate contenders tested by market mayhem

Regulator-proposed quote approach falters as dealers pull swap prices from screens

A trial period for four rival benchmark administrators to stake their claim as the go-to provider for forward-looking term Sonia rates is proving to be a more arduous assessment than envisaged, as Covid-19 volatility wreaks havoc with underlying markets.

Three of the hopefuls have struggled with a lack of derivatives input data for their versions of the rate; the fourth has produced a rate, but there are questions over its methodology.

The UK financial regulator has signalled it doesn’t intend

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