BoE to consult on Sonia clearing mandate
Long-dated Sonia swaps set to lose clearing exemption as liquidity shifts from Libor
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
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