SONIA
Encyclopedia
SONIA is the acronym for Sterling OverNight Index Average, the reference rate for overnight unsecured transactions in the Sterling market. It was launched in March 1997 by the Wholesale Markets Brokers' Association (WMBA), and is endorsed by the British Bankers Association (BBA).
Each London business day the SONIA fixing is calculated as the weighted average rate of all unsecured overnight sterling transactions brokered in London by WMBA members between 00:00 and 15.15 GMT in a minimum deal size of 25 million GBP with all counterparties listed under Section 43 of the Financial Services Act 1986
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The rate conventions are: annualised rate, act/360, four decimal places.
Each London business day the SONIA fixing is calculated as the weighted average rate of all unsecured overnight sterling transactions brokered in London by WMBA members between 00:00 and 15.15 GMT in a minimum deal size of 25 million GBP with all counterparties listed under Section 43 of the Financial Services Act 1986
Financial Services Act 1986
The Financial Services Act 1986 was an Act of the Parliament of the United Kingdom passed by the government of Margaret Thatcher to regulate the financial services industry. The Act used a mixture of governmental regulation and self-regulation, and created a Securities and Investments Board ...
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The rate conventions are: annualised rate, act/360, four decimal places.
See also
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- SARONSARONSARON is an overnight interest rates average referencing the Swiss Franc interbank repo market. It was launched by the Swiss National Bank in cooperation with SIX Swiss Exchange. Since 25 August 2009, SARON has replaced the previously used repo overnight index...
- Federal funds rateFederal funds rateIn the United States, the federal funds rate is the interest rate at which depository institutions actively trade balances held at the Federal Reserve, called federal funds, with each other, usually overnight, on an uncollateralized basis. Institutions with surplus balances in their accounts lend...
- Mutan rateMutan rateThe Mutan interest rate is the Uncollateralised Overnight Call Rate in Japan. It is the reference rate for JPY overnight unsecured transactions in the Japanese market....
- Interbank lending marketInterbank lending marketThe interbank lending market is a market in which banks extend loans to one another for a specified term. Most interbank loans are for maturities of one week or less, the majority being overnight. Such loans are made at the interbank rate...