Rand Merchant Bank (RMB) has launched a ZARONIA calculator to help market participants navigate the calculations involved in using ZARONIA in place of JIBAR. The calculator is the first of its kind for the South African market and it is hoped that this will help make the transition easier for the market. 

RMB urged market participants to start learning about ZARONIA and how it will work for their transactions. Market participants are also urged to review any JIBAR-referencing transactions and to consider the potential impact of the discontinuation of JIBAR and the transition to ZARONIA or other alternative reference rates.

Click here to access RMB’s ZARONIA calculator, and here for the media release. Click here for the MPG conventions for ZARONIA-linked loans.

The Steering Committee of the National Working Group on Benchmark Reform (NWG) has launched an additional round of public consultation aimed at selecting alternative indices to WIBOR. As a follow up from the first round of public consultation launched earlier on 24 May 2024, the NWG Steering Committee seeks views on the modified list of alternative indices and interest rate index proposals. 

The consultations will not include the WIRON, WIRON+ or WRR indicators. Instead, in line with expectations expressed in the previous round of public consultations, WIRF- and WIRF+/- were added to the WIRF and WIRF+ index proposals. 

The consultation closes on 31 October 2024.

Click here to access the consultation paper, and here for further background on the consultation.

On 30 September 2024, the final synthetic LIBOR settings were published, officially marking the end of LIBOR. This was a significant milestone and the Bank of England, the Financial Conduct Authority (FCA) and the Working Group on Sterling Risk-Free Reference Rates published a joint press release to mark the occasion.

Synthetic LIBOR was introduced as a temporary solution, providing firms additional time to transition outstanding legacy contracts towards RFRs, facilitating an orderly and smooth cessation process. With LIBOR now fully phased out, the Working Group on Sterling Risk-Free Reference Rates has fulfilled its objective and will be wound down from 1 October 2024.