LONDON (Reuters) - The Intercontinental Exchange (ICE.N) said on Wednesday it will launch a three-month futures contract based on “Sonia”, the Bank of England’s interest rate benchmark which aims to replace Libor.

FILE PHOTO - A screen displays the logo and ticker symbol for Intercontinental Exchange, Inc. on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 3, 2016. REUTERS/Brendan McDermid

Central banks across the world want to substitute Libor, the London Interbank Offered Rate that banks were fined billions of dollars for trying to rig, with “risk free” rates like Sonia or sterling overnight index average.

The move by ICE puts it in direct competition with the London Stock Exchange Group, which will launch its own three-month Sonia futures contract on April 30.

ICE launched a one-month futures contract based on Sonia in December.

Reporting by Huw Jones, editing by Simon Jessop

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