BoE announces two new initiatives to accelerate LIBOR transition

Article summary

The executive director for markets at the Bank of England (BoE), Andrew Hauser, has announced two new BoE initiatives in his speech at the International Swaps and Derivatives Association (ISDA)/SIFMA Asset Management Group Benchmark Strategies Forum, designed to accelerate the transition away from LIBOR, towards the adoption of SONIA as a reference rate in sterling markets. First, the BoE has published and is seeking views on its discussion paper (DP) entitled ‘Supporting risk-free rate transition through the provision of compounded SONIA’. Responses are requested by 9 April 2020. Secondly, the BoE has published a Market Notice setting out its risk management approach to collateral referencing LIBOR for use in the Sterling Monetary Framework (SMF).