ICE Benchmark Administration Launches GBP SONIA Spread-Adjusted ICE Swap Rate® ‘Beta’ Settings
May 17 2021 - 8:30AM
Business Wire
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global
provider of data, technology, and market infrastructure, today
announced that ICE Benchmark Administration Limited (“IBA”) has
launched GBP SONIA Spread-Adjusted ICE Swap Rate® ‘Beta’
settings.
IBA is publishing daily, indicative GBP SONIA Spread-Adjusted
ICE Swap Rate ‘Beta’ settings for an initial testing period. The
settings are designed to support the market in transitioning
non-linear derivatives, structured products and cash market
instruments that currently reference GBP LIBOR ICE Swap Rate.
GBP SONIA Spread-Adjusted ICE Swap Rate ‘Beta’ settings are
available here, alongside GBP
SONIA ICE Swap Rate. The ‘Beta’ settings are published for tenors
ranging from one to 30 years and are determined in line with the
methodology proposed by the Working Group on Sterling Risk-Free
Reference Rates in its paper “Transition
in Sterling Non-Linear Derivatives referencing GBP LIBOR ICE Swap
Rate (ISR)”.
“We believe that spread adjusted GBP SONIA ICE Swap Rate will be
essential in helping the non-linear derivative market transition,”
said Bob Goodfellow, Head of GBP Rates and Inflation Options at
NatWest Markets. “In combination with GBP SONIA ICE Swap Rate, we
now have the building blocks needed to help this transition whilst
helping address legacy contracts which reference GBP LIBOR ICE Swap
Rate.”
“IBA continues to engage closely with the market on the
transition from GBP LIBOR ICE Swap Rate to GBP SONIA ICE Swap
Rate,” said Tim Bowler, President of ICE Benchmark Administration.
“Through the launch of spread-adjusted GBP SONIA ‘beta’ settings,
in addition to publishing GBP SONIA ICE Swap Rate as a benchmark
since December 2020, IBA is providing the tools and solutions the
non-linear derivatives market needs to effectively plan and
implement this transition”.
IBA is publishing GBP SONIA Spread-Adjusted ICE Swap Rate ‘Beta’
settings for information and illustration purposes in order to
enable stakeholders to evaluate the rates and provide feedback. The
settings are not intended for, and IBA expressly prohibits their
use for, any other purpose, including as a reference, index or
benchmark in financial instruments, financial contracts, or
investment funds. IBA will announce in due course when the GBP
SONIA Spread-Adjusted ICE Swap Rate settings will be made available
for use in financial instruments.
About ICE Benchmark Administration
ICE Benchmark Administration is authorized and regulated
by the Financial Conduct Authority for the regulated activity of
administering a benchmark, and is authorized as a benchmark
administrator under the UK Benchmarks Regulation. ICE LIBOR, LIBOR,
ICE Swap Rate and ICE Benchmark Administration are registered
trademarks of IBA and/or its affiliates.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune
500 company that designs, builds and operates digital networks to
connect people to opportunity. We provide financial technology and
data services across major asset classes that offer our customers
access to mission-critical workflow tools that increase
transparency and operational efficiencies. We operate
exchanges, including the New York Stock Exchange, and
clearing houses that help people invest, raise capital and
manage risk across multiple asset classes. Our comprehensive fixed
income data services and execution capabilities provide
information, analytics and platforms that help our customers
capitalize on opportunities and operate more efficiently. At ICE
Mortgage Technology, we are transforming and digitizing the
U.S. residential mortgage process, from consumer engagement through
loan registration. Together, we transform, streamline and automate
industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key Information Documents for
certain products covered by the EU Packaged Retail and
Insurance-based Investment Products Regulation can be accessed on
the relevant exchange website under the heading “Key Information
Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
ICE's business that are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion
of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see ICE's Securities and Exchange Commission (SEC)
filings, including, but not limited to, the risk factors in ICE's
Annual Report on Form 10-K for the year ended December 31, 2020, as
filed with the SEC on February 4, 2021.
About SONIA
The "SONIA" mark is used under license 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.
ICE- CORP
Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20210517005390/en/
ICE Media Contact: Rebecca Mitchell
Rebecca.Mitchell@ice.com +44 7951 057 351
ICE Investor Contact: Mary Caroline O’Neal
marycaroline.oneal@ice.com (770) 738-2151
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