Sonia advances: liquidity builds as banks eye interdealer shift

Libor’s successor has some solid footholds. Wider acceptance could come as soon as later this year

In the relinquishing of Libor, the sterling market has an edge over other currencies. Waiting in the wings, sterling has a rate with a 20-plus year history, one the market knows and is used to trading – Sonia, after all, has been around since 1997 and is already used to value around £30 trillion ($38 trillion) of assets a year.

The Bank of England-convened working group on sterling risk-free rates, in a mid-May statement, was breathless on the subject of Sonia’s popularity.

“Sterling

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