FTSE Russell Launches FTSE Term ZARONIA Benchmark
The forward-looking rate is designed to support South Africa's shift from JIBAR to transaction-based reference rates.
Updated on Nov. 3, 2026 in Stock Markets
FTSE Russell, LSEG's global index provider, has launched FTSE Term ZARONIA, a forward-looking interest rate benchmark. It was developed after the Market Practitioners Group selected FTSE Russell to build and administer a term rate based on ZARONIA, the South African Rand Overnight Index Average.
Why it matters
The benchmark is intended to help South Africa move away from JIBAR toward transaction-based reference rates. It combines transaction data with executable market pricing inputs, following industry testing of a prototype.
No hard market figures were provided in the source extraction. The benchmark's role is to replace JIBAR, and the extraction does not say how quickly market participants will adopt it.
The players
FTSE Russell
FTSE Russell is LSEG's global index provider, responsible for developing and administering financial benchmarks including FTSE Term ZARONIA.
Market Practitioners Group
The Market Practitioners Group is an industry body that selected FTSE Russell to develop a term rate benchmark based on ZARONIA for the South African market.
The details
FTSE Term ZARONIA draws on data capabilities from LCH, Tradeweb, Latium Capital, GFI, TraditionData and GMG. The benchmark was developed in consultation with market participants and relevant stakeholders after industry testing of the prototype.
Timeline
3 November 2026: FTSE Russell announced the launch of FTSE Term ZARONIA.
Market Landscape
The launch continues South Africa's move away from JIBAR, the legacy rate that transaction-based benchmarks are replacing. A forward-looking term rate gives lenders and borrowers a standard reference for pricing that the overnight rate alone does not provide.
Investors and borrowers who price loans or derivatives off JIBAR will eventually need to reference a replacement benchmark. FTSE Term ZARONIA is one of the forward-looking options designed to support that move.
The takeaway
Market participants preparing for the end of JIBAR should track how FTSE Term ZARONIA is adopted in South African lending and derivatives. Early testing of the benchmark can help firms plan their transition.
Further reading
Explore more South Africa stock markets coverage for context on how benchmark rates shape local trading.
