The benchmark, based on the South African Rand Overnight Index Average, is designed to provide borrowers, lenders and investors with rate certainty at the start of an interest period.

FTSE Russell, the global index provider of LSEG, has launched FTSE Term Zaronia, a forward-looking interest rate benchmark aimed at supporting South Africa’s transition to transaction-based reference rates. The benchmark draws on its experience delivering benchmark reform solutions in major global markets The launch follows FTSE Russell’s selection by the Market Practitioners Group to develop and administer a term rate benchmark based on Zaronia, the South African Rand Overnight