ICE Benchmark Administration has started publishing beta term SONIA rates for testing, using data from BGC, TP ICAP, and Tradition’s Trad-X central limit order books.
Market participants have been told that despite disruption, the transition away from Libor is still targeted for the end of 2021.
Despite Libor being due to cease at the end of 2021, UK authorities have set out a timeline for the shift to the Sonia benchmark throughout this year.
Three divisions of the CFTC have issued ‘no action’ relief for firms active in the swaps market transitioning from Libor to alterative benchmark.
Failure to update legacy contracts ahead of Libor’s termination could have serious operational and investment risks for asset managers.
The Bank of England’s deputy governor for markets and banking has said pace of transition from Libor to Sonia must be accelerated.
Industry body has produced a roadmap aimed at guiding asset managers through the transition from Libor to Sonia.
Concerns have been raised as survey finds 83% of firms are yet to begin renegotiating Libor-based contracts, as the benchmark’s withdrawal takes effect in 2021.
Matthew Connelly and Gavin Campbell Black have been convicted by the US Department of Justice for Libor manipulation.
Goldman Sachs is among seven major derivatives dealers to use MarkitSERV services to process SOFR transactions.