Industry group backs wider use of term Sonia in derivatives

Swaps used to hedge tough legacy products and some new loans could reference a forward rate

FICC-proposes-wider-use-of-term-Sonia
Risk.net montage

Forward-looking term Sonia rates should be available for use in derivatives that hedge so-called tough legacy products as well as certain new loan deals, according to an influential industry group representing around 40 of the UK’s largest fixed income dealers, issuers and investors.

The FICC Market Standards Board (FMSB) published its draft use-case and governance proposals for term Sonia rates on March 24, just a week before firms are expected to ditch Libor in new lending agreements.

The

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

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: