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LIBOR transition

Refinitiv Term SONIA

Clients around the world trust us to provide benchmarks such as WMR and CDOR with transparency and integrity. Now you can trust us to do the same with Refinitiv Term SONIA. 

Refinitiv Term SONIA is now live. 

Licensed users can use the benchmark as a reference rate in financial instruments, financial contracts, and valuation and pricing activities.

Overview

The Refinitiv Term SONIA benchmark is a forward-looking, risk-free reference rate available in 1-month, 3-month, 6-month and 12-month tenors denominated in sterling and designed to be an alternative to LIBOR.

The Working Group on Sterling Risk-Free Reference Rates recommends that all new issuance of sterling LIBOR-referencing loan products, which expire after the end of 2021, should cease by the end of Q1 2021. After the year-end 2021, the Financial Conduct Authority, which regulates the LIBOR benchmark administrator, will no longer compel banks to submit to LIBOR, creating a strong possibility of an imminent cessation. That means market participants must rapidly seek alternative rates and in many cases a Term SONIA Reference Rate will be suitable.

Refinitiv Term SONIA is published to 4 decimal places, thereby ensuring consistency with the Bank of England’s SONIA benchmark.

Our rate is viewed by more than 600 clients and will remain free of fees until Jan 2022.

Why Refinitiv?

Regarded around the world as a leading provider of financial benchmarks, we are already trusted by thousands of institutions to provide rates such as WMR and CDOR with transparency and integrity.

At Refinitiv, we have leveraged our many years’ experience administering regulated benchmarks to create the Term SONIA Reference Rate.

Refinitiv Term SONIA is production ready. A forward-looking alternative which, tested at the height of Covid-19 volatility, is proven to deliver even in extreme market conditions.

Transition from LIBOR with confidence to Refinitiv Term SONIA that guarantees:

Accurate

We source overnight index swap (OIS) quote data from major interdealer electronic markets (including TP ICAP iSwap and Tradition Trad-X) and an institutional electronic market (Tradeweb).

Persistent

We adopt a waterfall methodology, allowing publication of the rate in even the most challenging market conditions.

Replicable

Users can easily replicate the rate by executing trades during the 20-minute collection window centered on 11:00.

Anti-gaming

We conduct pre-publication quality checks, have numerous anti-gaming methodology features and conduct post-publication monitoring and surveillance

Access

Refinitiv Term SONIA is available here and through the full suite of Refinitiv products, including Eikon®, Refinitiv Real-Time and DataScope, using the following RICs:

  • Refinitiv Term SONIA 1-month: GBPTRR1M=RFTB
  • Refinitiv Term SONIA 3-month: GBPTRR3M=RFTB
  • Refinitiv Term SONIA 6-month: GBPTRR6M=RFTB
  • Refinitiv Term SONIA 12-month: GBPTRR1Y=RFTB

Disclaimer

2021 © Refinitiv. All rights reserved. 

Refinitiv Term SONIA benchmark (the “Benchmark”) is provided for view and informational purposes only. Refinitiv Limited (and its affiliates) (“Refinitiv”) and its third party providers (“Third Parties”) do not guarantee the quality, accuracy and/or completeness of the Benchmark or any data included therein. Neither Refinitiv nor Third Parties make any express or implied warranties, representations or guarantees concerning the accuracy, completeness or reliability of the Benchmark or any data included therein. In no event shall Refinitiv or Third Parties have any liability for any loss or damages including, but not limited to, loss of profits, special, punitive, indirect, incidental or consequential losses relating to any use of, inability to use and/or reliance on the Benchmark.  The Benchmark or any of the information provided, displayed or contained in the Benchmark, or any data included therein: (i) cannot be relied upon;  (ii) cannot be used for any commercial purpose or use whatsoever including, but not limited to, as a reference rate in financial instruments or financial contracts, or for valuation and pricing activities; or as an input into a benchmark or an index.

The Benchmark is proprietary to Refinitiv.

The “SONIA” mark is used under licence from the Bank of England (the benchmark administrator of SONIA), and the use of such mark does not imply or express any approval or endorsement by the Bank of England. “Bank of England” and “SONIA” are registered trademarks of the Bank of England."