ICE Benchmark Administration Presents ICE SONIA Indices to Assist UK Credit score Markets Swap to SONIA

LONDON–() – Intercontinental Trade, Inc. (NYSE: ICE), a number one international alternate and clearinghouse operator and supplier of mortgage expertise, knowledge and citation providers, at present introduced that ICE Benchmark Administration Restricted (“IBA”) has launched a primary, ‘beta’ model of ICE SONIA Index for informational and testing functions. IBA has additionally revealed a methodology doc introduction of indexes.

The ICE SONIA indices present a day by day worth which represents the compound SONIA curiosity accrued over the primary day worth of 100 on April 23, 2018, the date on which the Financial institution of England assumed duty for SONIA. ICE SONIA indexes provide an extra possibility so as to add a flooring and analyzes. The indices have been developed to satisfy the completely different wants of the UK mortgage market and are designed to offer a easy technique for events to calculate SONIA compound curiosity between two index dates and agree on their related accrued curiosity.

IBA applies the next operational and financial traits to generate ten attainable ICE SONIA indices:

  • Zero (0)% flooring: To deal with considerations about potential unfavorable rates of interest sooner or later, the ICE SONIA indices might incorporate a minimal SONIA charge of 0%. If the day by day SONIA worth falls under 0%, the ICE SONIA indices could be calculated utilizing 0% as a flooring, as an alternative of the particular SONIA worth.
  • Retrospectives: To assist handle money move and resolve operational points related to figuring out mortgage repayments earlier than the top of a mortgage accumulation interval or mortgage time period, ICE SONIA indices assist a number of approaches retrospective. IBA will provide indices calculated utilizing lags and / or lags of two or 5 working days, in addition to the opportunity of not having a turning again.

To facilitate the posting of mortgage provisions on reporting dates that aren’t working days, all ICE SONIA indexes will present index values ​​for every calendar day. Index values ​​for non-working days shall be revealed on the subsequent working day.

“IBA created the ICE SONIA indices to assist deal with key operational issues of lenders and debtors for SONIA-based loans,” mentioned Tim Bowler, president of the ICE Benchmark Administration. “The transition to SONIA within the UK credit score markets has led to requires SONIA indices which can be utilized to assist calculate and course of accrued curiosity from each a lender’s and a borrower’s perspective. We consider that the ICE SONIA indices can play an essential position in serving to lenders and debtors of their transition to SONIA. ”

The indicative values ​​of the SONIA “ beta ” index are revealed on the ICE SONIA indices of IBA Internet web page. Index values ​​are at present revealed for info and testing functions solely and might not be used as a benchmark in monetary devices. IBA expects to have the ability to launch the ICE SONIA indices supposed to be used in monetary devices from April 2021. An article presenting the ICE SONIA indices is offered right here.

In regards to the ICE Benchmark administration

Administration of the ICE Benchmark is allowed and controlled by the Monetary Conduct Authority for the regulated exercise of administering a benchmark, and is allowed as administrator of the benchmark below the UK Benchmarks Regulation. IBA reserves all rights to the ICE SONIA Indexes net web page.

About Intercontinental Trade

Intercontinental alternate (NYSE: ICE) is a Fortune 500 firm and a supplier of market infrastructure, knowledge providers, and expertise options to a variety of purchasers, together with monetary establishments, companies, and authorities entities. We function regulated markets, together with the New York Inventory Trade, for itemizing, buying and selling and clearing a variety of spinoff contracts and monetary securities in the principle asset courses. Our full knowledge providers The providing helps the buying and selling, funding, danger administration and connectivity wants of purchasers all over the world and throughout all asset courses. As a number one expertise supplier to the U.S. residential mortgage business, ICE Mortgage Expertise offers the expertise and infrastructure to remodel and digitize residential mortgage lending in the USA, from mortgage software and origination to remaining settlement.

Emblems of ICE and / or its subsidiaries embrace Intercontinental Trade, ICE, ICE block design, NYSE, and New York Inventory Trade. Data relating to extra emblems and mental property rights of Intercontinental Trade, Inc. and / or its associates could be discovered right here. The important thing info paperwork for sure merchandise coated by the EU Regulation on packaged retail and insurance-based funding merchandise could be discovered on the related alternate web site below the heading ‘Paperwork d’ key info (KIDS) ”.

Secure Harbor Assertion below the Personal Securities Litigation Reform Act of 1995 – Statements on this press launch relating to ICE’s enterprise that aren’t historic info are “forward-looking statements” that contain dangers and uncertainties. For a dialogue of extra dangers and uncertainties, which may trigger precise outcomes to vary from these contained in forward-looking statements, see paperwork filed by the Securities and Trade Fee (SEC) of ICE, together with, however not restricted to restricted thereto, the danger elements within the ICE Annual Report Report on Type 10-Ok for the fiscal 12 months ended December 31, 2020, as filed with the SEC on February 4, 2021.


The trademark “SONIA” is used below license from the Financial institution of England (the principal administrator of SONIA), and use of such mark doesn’t suggest or specific any endorsement or approval by the Financial institution of England. ‘England. “Financial institution of England” and “SONIA” are registered emblems of the Financial institution of England.


Supply: Intercontinental alternate

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