UK regulators urge switch to SONIA-based swaps from October 27

FILE PHOTO: A security officer stands outside the Bank of England, as the spread of the coronavirus disease (COVID-19) continues, in London, Britain, March 23, 2020. REUTERS/Toby Melville/File Photo

LONDON (Reuters) - Dealers should base quotes for sterling swaps on the SONIA interest rate benchmark rather than LIBOR from Oct. 27 onwards, as part of efforts to move away from using LIBOR, the Bank of England and the Financial Conduct Authority said on Monday.

“An FCA survey of liquidity providers identified strong support for a change in the interdealer quoting convention that would see SONIA rather than LIBOR become the default price,” the BoE said.

Previous plans to change the benchmark in March had been disrupted by COVID, the BoE said.

Reporting by David Milliken, editing by Estelle Shirbon