Bank of England SONIA Advisory Group Reviews Stablecoins, Treasury Bills, and Market Liquidity

On 24 March 2026, the SONIA Stakeholder Advisory Group convened, led by Caroline Stockmann alongside Alexandra Innes. The meeting addressed various financial market trends, highlighting that the gap between SONIA and the Bank Rate decreased to under 2 basis points due to ongoing geopolitical issues. The Bank of England shared insights from HM Treasury's consultation regarding the expansion of the UK Treasury bill market and its implications for SONIA, monetary policy, and financial stability. Market intelligence indicated a range of opinions on secondary markets and demand factors. The group also evaluated developments in stablecoins, regulatory progress, and liquidity in SONIA derivative markets, which experienced unprecedented trading volumes despite wider spreads. Emphasis was placed on diversity, equity, and inclusion, including discussions on flexible working arrangements. Participants included representatives from Insight Investments, Société Générale, and Bank of England personnel.