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BoE to consult on Sonia clearing mandate
Long-dated Sonia swaps set to lose clearing exemption as liquidity shifts from Libor
![BoE-Sonia-swap BoE-Sonia-swap](/sites/default/files/styles/landscape_750_463/public/2018-03/Montage-BoE-Libor.jpg.webp?itok=TwdcgpXY)
The Bank of England is preparing to consult the market on whether financial counterparties should be mandated to centrally clear Sonia swaps with maturities beyond three years – a move that is widely expected to result in longer-dated trades linked to sterling Libor’s successor rate losing their exemption from the derivatives clearing obligation.
A BoE spokesperson confirms that the consultation, which was flagged at the January 26 meeting of the working group on sterling risk-free rates (RFRs
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