Minutes of the SONIA Stakeholder Advisory Group – 24 March 2026

The SONIA Stakeholder Advisory Group supports the Bank’s administration of SONIA by providing advice and technical input to the Bank and the SONIA Oversight Committee

Published on
17 April 2026

Date: 24 March 2026

Minutes

Welcome / introductions

The Chair welcomed the Group and those present as part of the observers’ programme.

Diversity, Equity & Inclusion

DE&I remains a priority for the Bank of England and the Group, ensuring that the initiatives which are in place receive continued support.

The Group discussed differences in flexible working policies between individual firms. Members noted the benefits of being together and working from home and the impact of supervisory commitments which continue to impact policy for staff who perform regulated activities.

Retrospective review of market conditions

The SONIA to Bank Rate wedge narrowed to less than 2bps in March but has remained around 2bps since. Volume remains robust in light of recent geopolitical tensions. Members noted orderly market functioning through recent turmoil.

Reflections on HMT’s consultation on UK Treasury bills and potential impact on SONIA

Bank staff provided an overview of HMT’s consultation on expanding the UK Treasury bill (T-bill) market, focussing on money market implications, the impact on the SONIA benchmark and monetary policy implementation and financial stability. Bank staff noted a broad range of views gathered from market participants during market intelligence calls, including the importance of the secondary market and drivers of demand. The Group discussed potential impact on the unsecured market and SONIA whilst noting some constraints on participation in an expanded UK T-bill market.

Reflections on Stablecoins in Money Markets

Members provided a comprehensive presentation of developments in stablecoin, covering structure and international growth. The Group discussed use cases, risks - including financial stability, demand and potential impact on the SONIA benchmark. Developments in the stablecoin regulatory regime, UK Treasury bill market and RT operating hours will support development of stablecoin however members noted operational challenges remain.

Liquidity in SONIA derivative markets

The Group discussed recent trends in SONIA exchange-traded derivatives, noting, record trading volumes, healthy liquidity despite wider spreads and increased volatility, and market infrastructure resilience during recent events. The larger moves following escalation of geopolitical tension were driven by deleveraging and positioning unwinds rather than liquidity issues.

AOB

No further business was discussed.

Attendees

Chair: Caroline Stockmann (Independent member of SONIA Oversight Committee)

External Member: Alexandra Innes (Independent member of SONIA Oversight Committee)

HSBC

ICE Futures

Insight Investments

LGIM

NatWest

Rabobank

RBC

Société Générale

TC ICAP

Bank of England: Joe Clouting, Ben Cross, Joanna McLafferty, Kirstine McMillan, Arif Merali, Matt Roberts-Sklar, Joe Smart, Ashley Young

Apologies

Blackrock

LCH

ISDA

Mizuho

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