The Working Group on Sterling Risk-Free Reference Rates has launched a consultation on term SONIA reference rates (TSRRs).

It seeks feedback on specific recommendations and encourages market participants to take forward work on the development of robust TSRRs, which members anticipate could be available in the second half of 2019. Feedback should be provided by 30 September 2018.

Source: Bank of England

The @bankofengland's consultation on term Sonia rates, as part of the Libor reforms, is published (deadline 30 Sep 2018) https://t.co/eZiatXUAVT #benchmarkreforms

— ICMA (@ICMAgroup) July 18, 2018

Law firm Norton Rose Fulbright said on its blog:

“The consultation seeks feedback on practical recommendations aimed at catalysing the development of term SONIA reference rates. Market participants – including venue operators, market makers and potential administrators – are encouraged to work towards this objective.

The consultation has been launched simultaneously with ISDA’s consultation on new IBOR fallbacks for over-the-counter derivatives contracts. The consultations address different aspects of benchmark reform: the ISDA consultation is focused on preventing derivatives market disruption in the event a key IBOR is discontinued; the Working Group’s consultation focuses on how a TSRR can be constructed in order to facilitate sterling Libor transition in markets where term rates better suit users’ needs. ISDA’s consultation contemplates that the primary fallbacks for key IBORs will directly reference overnight risk-free rates.”