Photo credit: The BoE Working Group on Sterling Risk - Free Reference Rates is to investigate the use of compression auctions to aid the transition from LIBOR to Sterling . Work conducted by Stanford University ’s Professor Darrell Duffle , which was presented at the working group ’s December meeting , suggested that using compression auctions to convert centrally cleared contracts referencing LIBOR to contracts referencing compounded SONIA or another benchmark could reduce the amount of long - dated legacy LIBOR contracts . Relevant document : Minutes of the Working Group on Sterling Risk - Free Reference Rates – December 2018
The BoE Working Group on Sterling Risk - Free Reference Rates is to investigate the use of compression auctions to aid the transition from LIBOR to Sterling . Work conducted by Stanford University ’s Professor Darrell Duffle , which was presented at the working group ’s December meeting , suggested that using compression auctions to convert centrally cleared contracts referencing LIBOR to contracts referencing compounded SONIA or another benchmark could reduce the amount of long - dated legacy LIBOR contracts . Relevant document : Minutes of the Working Group on Sterling Risk - Free Reference Rates – December 2018