The Bank of England is working on a plan to take over the administration of the overnight rate
The Bank of England will this week draw a
line under its consultation on the reform of the Sonia
benchmark ahead of a separate decision that will see the
British central bank back a rival to the much-maligned Libor,
run by the Intercontinental Exchange.
The Bank of England will close on October
1 its consultation on its two-part plan to introduce a new
sterling money market data collection process and to use this
data to reform and then increase the scope of Sonia, the main
overnight unsecured interest rate benchmark.
The central bank said in July it wants to
change the data used to fix the Sonia benchmark by collecting
"transaction-level data from banks, building societies and
major investment firms on their secured and unsecured sterling
money market borrowing activity".
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