Published by the Monetary Authority of Singapore (MAS), SORA is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank Singapore Dollar (SGD) cash market in Singapore, while the Bank of Japan’s (BOJ) TONA is the volume-weighted average of actual transactions in the Japanese Yen (JPY) unsecured overnight money market.
Singapore Exchange Group (SGX) (SGX:S86
) will expand its derivatives franchise to include futures linked to Singapore and Japan’s overnight interest rate benchmarks as global investors pursue more transparent and cost-effective tools to hedge and trade fluctuations in interest rates.
On March 11, SGX announced that it would introduce short-term interest rate futures linked to the Singapore Overnight Rate Average (SORA) and Tokyo Overnight Average Rate (TONA) in the second half of 2024 to support the strong emerging demand for more risk management tools in an uncertain interest rate environment.
