FCA's SONIA Consultation Paper

The FCA's SONIA Consultation Paper discusses potential updates to how the Sterling Overnight Index Average (SONIA)—a key interest rate used in financial markets—is calculated and overseen. The goal is to enhance the rate's transparency, reliability, and resistance to manipulation, ensuring it accurately reflects actual borrowing costs in the overnight unsecured sterling market. By consulting stakeholders, the FCA aims to develop best practices and safeguards that support a robust financial system, facilitating fair and efficient pricing in financial contracts that reference SONIA.