The Bank of England said a swaps industry working group proposed a new derivatives reference rate after manipulation scandals rocked confidence in the London Interbank Offered Rate, a key benchmark pegged to trillions of dollars of securities.
The group led by Francois Jourdain, chief compliance officer at Barclays Investment Bank, recommended the Sterling Overnight Index Average, or Sonia, as a near risk-free alternative to Libor for use in sterling derivatives and other relevant financial contracts, the BOE said on Friday.
The working group’s proposal will be subject to a public consultation in mid-2017, the BOE said. The central bank said ...
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