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Industry working toward Sonia adoption

Regulators' timeline to replace the London Interbank Offered Rate with the Bank of England's Sterling Overnight Index Average rate may not be as untenable as it seems, as some work on the transition has already begun, according to industry groups. London Stock Exchange's clearing unit has plans to extend its use of Sonia from short-dated swaps to longer-dated swaps covered by Libor, and a group that includes the top 16 dealers of swaps and additional derivatives is working on creating Sonia futures contracts.

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