A statement from the Working Group on Sterling Risk-Free Reference Rates on 15th May stated that the derivatives market has “begun to shift decisively away from LIBOR and towards SONIA”, and that SONIA-linked FRNs “have rapidly become the market norm, with around GBP 25 billion issued since June last year. LIBOR-linked sterling FRN issuance beyond 2021 has all but ceased”. Even so, it notes, as readers know very well, that there is demand for a forward-looking rate “from some participants in cash markets where usage of forward-looking rates has historically been common, and potentially also to support transition of certain legacy contracts”, albeit use of this rate is expected to be more limited than the current use of LIBOR. This rate has been dubbed “TSRR” – the term Sonia reference rate. In December 2018, the RFRWG invited interested benchmark administrators to think about TSRR, and three of them (including ICE) gave presentations to the RFRWG on 14th May. The RFRWG expects that by the end of 2019 they will be able to conclude whether TSRR is going to be a winner. It encourages the market not to delay preparations to do new business on SONIA whilst we wait to see whether TSRR takes off.