Intercontinental Exchange, a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announces that ICE Benchmark Administration Limited (IBA) has launched an initial, ‘Beta’, version of its GBP ICE Swap Rate® for SONIA swaps.

IBA has started to publish daily indicative GBP SONIA ICE Swap Rate® ‘Beta’ settings with tenors ranging from one to 30 years. The settings are available here alongside the six other ICE Swap Rate® benchmark ‘runs’ covering EUR, GBP and USD. IBA’s publication of a ‘Beta’ version of the ICE Swap Rate® for SONIA swaps follows a positive market response to feedback and consultation papers on IBA’s proposals to enhance the ICE Swap Rate® through the introduction of these new settings.

ICE Benchmark Administration has launched an initial beta version of GBP ICE Swap Rate® for SONIA swaps with tenors ranging from one to 30 years. Read more here: https://t.co/gIfKAqQegP

— ICE (@ICE_Markets) October 5, 2020

“We are pleased to support the development and adoption of alternative rates by launching ICE Swap Rate® settings for SONIA”, said Tim Bowler, President of ICE Benchmark Administration. “IBA is working hard to provide products and solutions to help stakeholders transition efficiently to alternative rates. We expect to be able to launch ICE Swap Rate® settings for other alternative, overnight rates as the relevant swaps markets develop.”

The GBP SONIA ICE Swap Rate® ‘Beta’ settings are determined using the published ICE Swap Rate® ‘Waterfall’ methodology and are available for the same tenors and at the same time as the current GBP LIBOR® ICE Swap Rate®.

IBA is publishing the GBP SONIA ICE Swap Rate® ‘Beta’ settings solely for information and illustration purposes in order to enable stakeholders to evaluate the rates and provide feedback. They are not intended for, and IBA expressly prohibits their use for, any other purpose, including as a reference, index or benchmark in financial instruments, financial contracts, or investment funds. IBA will announce in due course when GBP SONIA ICE Swap Rate® settings will be made available as a benchmark for use in financial instruments.

New SONIA records
• With a growing need to hedge Sterling risk, participants have increasingly turned to our 3M SONIA futures
• ICE has seen open interest records in 3M SONIA every day for the last five days
• 3M SONIA open interest now sits at just under 70K contracts

— ICE (@ICE_Markets) October 2, 2020

Source: ICE