Minutes of the SONIA Stakeholder Advisory Group
The Bank of England’s SONIA Stakeholder Advisory Group discussed talent initiatives, sterling money market stability, and potential changes to RTGS and CHAPS settlement hours, including impacts on SONIA publication and reporting.
The Bank of England’s SONIA Stakeholder Advisory Group convened to review ongoing initiatives, including talent stream programmes aimed at engaging students and early-career professionals across firms. These programmes are designed to foster diversity and bring varied perspectives into the workforce. The meeting also highlighted the stability of the unsecured overnight market, with daily volumes around £55 billion and spreads to Bank rate near 1.9 basis points. Money-market funds saw inflows of approximately £15 billion since the start of the year, with increased allocation to overnight tenor due to updated liquidity guidance and geopolitical tensions.
The Bank of England and His Majesty’s Treasury are reviewing statutory powers for collecting sterling money market data to ensure sufficient coverage amid evolving market structures. The review may extend data collection to group entities to maintain visibility of SONIA-related activity. Separately, the Bank consulted on extending RTGS and CHAPS settlement hours to near 24/7 operation, with feedback under review and plans to share themes with industry in early 2027.
Discussions on extended settlement hours explored scenarios where CHAPS could close at 18:00 and reopen at 20:00, creating a discrepancy between value and calendar dates. The Group noted potential impacts on SONIA’s definition, publication time, and reporting, with a strong preference to retain the current 09:00 publication time. Participants also considered the implications of weekend CHAPS opening and whether SONIA should include weekend activity or remain weekday-focused.
The Group examined the Office for National Statistics’ consultation on release times for market-sensitive statistics, noting that extended trading hours for SONIA and gilt futures had shifted market dynamics. While deeper liquidity after 08:00 was preferred, a 09:30 release was considered late for trading decisions. Members also discussed expectations for year-end sterling cash markets, repo market stability, and the influence of reserve drainage on SONIA volumes and commercial-paper pricing.