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The Bank of England’s SONIA Stakeholder Advisory Group discussed stable sterling overnight market conditions and the possible effects of longer RTGS and CHAPS settlement hours. Members expressed a strong preference to preserve SONIA’s 09:00 publication time, while questions about weekend activity, reporting deadlines and market conventions remain under review.
The Bank of England’s SONIA Stakeholder Advisory Group discussed how a possible move toward near 24-hour, seven-day settlement could affect the benchmark’s reporting and publication, while describing the unsecured overnight market as stable at its 25 September meeting. The minutes say participants strongly preferred to retain SONIA’s current 09:00 publication time, but the Bank is still analysing the operational effects of different settlement-hour scenarios.
The minutes report that daily volumes in the unsecured overnight market were around £55 billion, with the spread to Bank rate fluctuating close to 1.9 basis points. Money-market funds had received collective inflows of approximately £15 billion since the start of the year and had increased their allocation to overnight maturities. The minutes link that shift to changes in liquidity guidance and heightened geopolitical tensions, saying it supported activity in short-dated markets. Repo-market volatility and month-end spikes were lower than in the previous year.
Much of the meeting focused on the Bank’s summer consultation on its longer-term ambition to move RTGS and CHAPS settlement toward near-continuous operation. The Bank is reviewing responses and plans to return to industry in the first quarter of 2027 with consultation themes and next steps. The advisory group considered potential effects on SONIA’s definition, publication time, reporting arrangements and firms’ operational processes.
One scenario discussed would have CHAPS settlement close at 18:00 and reopen at 20:00 the following day. In that case, transactions between 20:00 and midnight could have a CHAPS value date that differs from the calendar date. The minutes say participants discussed whether timestamp-based conventions might eventually address this mismatch, and whether firms might change booking times to manage interest calculations. These were discussion points, not settled policy.
Why a 09:00 SONIA Release Matters
SONIA is a reference rate used in sterling financial markets, so a change to its timing or the data supporting it could affect firms’ systems and products that reference the benchmark. The group’s preference for retaining the 09:00 release reflects concern that a later publication could disrupt processing and fulfilment. The minutes do not establish that the publication time will change; they record a preference as the Bank continues its analysis.
Extended settlement could also create new timing questions for market data and trading. The group discussed whether activity during newly available evening or weekend hours would resemble weekday trading, and whether weekend transactions should result in weekend SONIA publications or be incorporated into weekday data. Decisions on those questions would affect reporting conventions as well as the information users receive from the benchmark.
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The Settlement Hours Review
The Bank’s consultation concerns a longer-term move toward near 24-hour, seven-day RTGS and CHAPS settlement. RTGS is the Bank’s settlement system, while CHAPS is a sterling payment system. The group’s minutes describe the review as relevant to how market activity is recorded and reported, not as confirmation that new hours have been adopted.
The discussion also covered the reporting timetable. Sterling Money Market Data reporting is required by 07:00 for the Bank to publish SONIA by 09:00. Participants said many reports are automated, but stressed the value of being able to resubmit or regenerate data for the prior day. Separately, members discussed an Office for National Statistics consultation on release times for market-sensitive statistics. The minutes note that SONIA and gilt futures now open at 01:00 after ICE extended trading hours in July; participants generally preferred releases after 08:00, when cash gilt and swap markets are open, while describing 09:30 as relatively late for pricing and trading decisions.
On market conditions, the group expected the year-end sterling cash market to be broadly stable and said its path would likely depend on repo-market conditions. The minutes also record discussion of reserve drainage, possible greater reliance on Bank of England facilities, and potential effects on SONIA volumes, its spread and commercial-paper pricing. These were expectations and possibilities voiced in the meeting, not confirmed outcomes.
“The unsecured overnight market remained stable”
— SONIA Stakeholder Advisory Group minutes, 25 September 2026
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Open Questions on Dates and Weekends
The minutes do not say whether RTGS or CHAPS hours will be extended, what final operating schedule might be chosen, or whether SONIA’s definition, reporting requirements or publication time will change. The Bank is still analysing possible scenarios and reviewing consultation responses. It is also unclear how firms would standardise timestamps and booking practices if settlement dates diverged from calendar dates during evening hours.
Weekend treatment remains unresolved: the group discussed whether weekend activity would differ from weekday volumes and rates, and whether SONIA should be published for weekends or incorporate that activity into weekday data. The minutes also provide no final assessment of how reserve levels or the location of reserves might affect year-end market conditions. These are open questions rather than findings that a particular outcome will occur.
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Bank to Report Back in 2027
The Bank says it intends to return to industry in the first quarter of 2027 with themes from responses to its settlement-hours consultation and proposed next steps. Its further analysis will need to address operational issues raised by the group, including the reporting deadline needed to support a 09:00 SONIA publication, the ability to correct or regenerate reports, and the treatment of evening and weekend activity.
Separately, firms were encouraged to submit views directly to the ONS consultation on release times for market-sensitive economic statistics. The minutes do not give a decision date for that consultation or specify when the Bank will settle questions about SONIA conventions. Until further announcements, the publication-time preference and the possible market effects described in the meeting remain discussion outcomes rather than confirmed changes.
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Key Questions
What did the SONIA advisory group discuss on 25 September 2026?
The group reviewed sterling overnight market conditions and discussed how extended RTGS and CHAPS settlement hours could affect SONIA’s definition, reporting, publication time and operations. It also considered data-release timing and year-end market expectations.
Did the Bank decide to change SONIA’s publication time?
No such decision is recorded in the minutes. Participants expressed a strong preference to keep the 09:00 publication, while the Bank continues to analyse possible settlement-hours scenarios.
When will the Bank provide an update on settlement hours?
The Bank intends to return to industry in the first quarter of 2027 with themes from consultation responses and next steps. The minutes do not provide a precise date.
What market conditions did the minutes report?
The minutes described the unsecured overnight market as stable, with daily volumes of around £55 billion and the spread to Bank rate close to 1.9 basis points. They also reported money-market fund inflows of approximately £15 billion since the start of the year.
Have weekend SONIA publications been agreed?
No. The group discussed whether weekend activity would differ from weekday trading and whether SONIA should be published for weekends or incorporate weekend activity into weekday data. The minutes record questions under discussion, not a settled approach.
Source: primary
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