The Bank of England has published minutes from a meeting of the SONIA Stakeholder Advisory Group held on 25 September 2026, setting out discussion of sterling money-market conditions, settlement hours and the timing of official statistics that feed into pricing decisions.
Market conditions steady
The unsecured overnight market stayed stable through the period under review. Daily volumes ran at approximately 55 billion pounds. The rate held close to a spread of 1.9 basis points over Bank rate. Volatility in the repo market and the spikes typically seen around month-end were both lower than the year before.
Money-market funds shifted more of their holdings into the overnight tenor, a move participants linked to changes in liquidity guidance alongside heightened geopolitical tensions. Collective inflows into these funds have totalled roughly 15 billion pounds since the start of the year. SONIA futures and options saw exceptionally high volumes in March; more recent bouts of volatility have pushed activity up again, though not back to that earlier peak.
Settlement hours under review
The Bank consulted over the summer on shifting RTGS and CHAPS settlement toward a near-24-hour, seven-day structure, and plans to return to industry with further detail in the first quarter of 2027. One scenario discussed would close CHAPS settlement at 18:00 before reopening for the following day’s business at 20:00. Separately, the Bank and His Majesty’s Treasury are reviewing the statutory powers currently used to collect sterling money-market data.
ICE extended its trading hours for SONIA futures and gilt futures on 6 July, with both products now opening at 01:00. The group reiterated a strong preference for keeping SONIA’s own publication time unchanged at 09:00, which requires SMMD reporting to reach the Bank by 07:00. Participants separately flagged the ONS’s 09:30 release slot as relatively late for pricing and trading decisions. Looking to year-end, participants expect the sterling cash market to stay broadly stable, with activity driven mainly by the repo market.
Also Read
Source: Bank of England
