South Africa’s First ZARONIA Trade Confirmed

South Africa’s First ZARONIA Trade Confirmed

RMB, together with Ashburton Investments, recently executed South Africa’s first confirmed trade referencing the South African Rand Overnight Index Average (ZARONIA). The R500-million trade was successfully processed through Strate, South Africa’s central securities depository and collateral platform.

ZARONIA is South Africa’s new alternative reference rate. The Market Practitioners Group, working with the South African Reserve Bank (SARB), designated ZARONIA as the official successor to the Johannesburg Interbank Average Rate JIBAR as part of a broader move to adopt more transparent and transaction-based reference rates. Its introduction aims to strengthen the integrity and resilience of South Africa’s financial market benchmarks in line with global best practice.

Administered by the South African Reserve Bank and endorsed for market use to replace (JIBAR) as part of a broader global shift toward near risk-free rates - the inaugural ZARONIA Floating Rate Note marks a pivotal moment in the financial sector’s transition away from the Johannesburg Interbank Average Rate (JIBAR), one of South Africa’s most widely used interest rate benchmarks.

The trade took place alongside the go-live of the ZARONIA and Money Market Category IV framework and follows months of preparation and coordination between market participants, regulators, and infrastructure providers.

“Achieving ZARONIA readiness took months of dedicated effort. Congratulations to the team for being the first confirmed party to execute a ZARONIA trade,” said Gregory Naicker, Head of Money Markets and CSD Services at Strate.

The successful execution of this transaction demonstrates the market’s operational readiness and signals growing momentum in the adoption of the new benchmark. RMB continues to support clients in navigating this transition, through tools like the ZARONIA Calculator launched in late 2024.

ENDS