SONIA and Transition: Difference between pages

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Sterling Overnight Index Average.
1. ''Climate change - financial risks''.


Tracks actual average market sterling funding rates each day for settlement that day where repayment is made on the following business day.  
Abbreviation for climate transition, relating to financial risks that could arise from adjusting to a lower-carbon economy.


It is published by the Wholesale Markets Brokers' Association (WMBA) in London at 5pm each day.  
In this context, financial climate transition is distinct from the direct physical risks of climate change.


It is defined and calculated as the weighted average rate (to four decimal places) of all unsecured sterling overnight cash transactions brokered in London by WMBA member firms between midnight and 4.15pm London time with all counterparties in a minimum deal size of £25 million.
 
2. ''Risk-free rates - LIBOR and related transitions - conduct.''
 
In the context of risk-free rates, transition refers to the discontinuation of LIBOR and similar rates, and their replacement by other risk-free interest rates.
 
This transition is important both for non-financial corporates, and for financial institutions themselves, for example in relation to conduct.
 
 
3. ''Other contexts.''
 
Any other substantial and long term change.
 
Especially one carrying material risks and financial risks.




== See also ==
== See also ==
* [[Euro Overnight Index Average ]]
* [[Climate change]]
* [[EURONIA]]
* [[Climate Transition Benchmark]]
* [[Over night index average rate]]
* [[Climate Transition Finance Handbook]]
* [[Overnight indexed swap]]
* [[Climate transition risk]]
* [[Sterling overnight index average]]
* [[Conduct]]
* [[Wholesale Markets Brokers' Association]]
* [[ESG transition]]
* [[Fallback]]
* [[Financial Stability Board]]
* [[Fossil fuel]]
* [[IBOR transition]]
* [[Just transition]]
* [[LIBOR]]
* [[LIBOR transition]]
* [[Material]]
* [[Paris Agreement]]
* [[Reputational risk]]
* [[Risk-free rates]]
* [[Stranded assets]]
* [[Synthetic LIBOR]]
* [[Tough legacy]]
* [[Transaction]]
* [[Transformation]]
* [[Transition finance]]
* [[Transition Pathway Initiative]]  (TPI)
* [[Transition plan]]
* [[Transition Plan Taskforce]]  (TPT)  - UK
* [[Transition risk]]
* [[Transition sukuk]]
* [[Translation]]




==External links==
== External link ==
* [https://www.bankofengland.co.uk/knowledgebank/climate-change-what-are-the-risks-to-financial-stability Climate change - What are the risks to financial stability? Bank of England]


[http://www.wmba.org.uk/pages/index.cfm?page_id=31 Wholesale Markets Brokers' Association (WMBA)]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 07:25, 28 September 2022

1. Climate change - financial risks.

Abbreviation for climate transition, relating to financial risks that could arise from adjusting to a lower-carbon economy.

In this context, financial climate transition is distinct from the direct physical risks of climate change.


2. Risk-free rates - LIBOR and related transitions - conduct.

In the context of risk-free rates, transition refers to the discontinuation of LIBOR and similar rates, and their replacement by other risk-free interest rates.

This transition is important both for non-financial corporates, and for financial institutions themselves, for example in relation to conduct.


3. Other contexts.

Any other substantial and long term change.

Especially one carrying material risks and financial risks.


See also


External link

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