AONIA - Revision history

Doug: Update for cessation of LIBOR.

2024-10-05T07:38:12Z

Update for cessation of LIBOR.

← Older revision		Revision as of 07:38, 5 October 2024
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	'''AONIA and Interest Rate Benchmark Reform'''		'''AONIA and Interest Rate Benchmark Reform'''

	In response to the weaknesses identified in the setting of financial benchmarks such as the London Interbank Offered Rate (LIBOR), the global regulatory community has, since 2013, been involved in a program to strengthen financial benchmarks.		In response to the weaknesses identified in the setting of financial benchmarks such as the [former] London Interbank Offered Rate (LIBOR), the global regulatory community has, since 2013, been involved in a program to strengthen financial benchmarks.

	For Australia, the key interest rate benchmarks were identified as BBSW and AONIA / the ‘Cash Rate’ for which reforms were undertaken to enhance their robustness (6).		For Australia, the key interest rate benchmarks were identified as BBSW and AONIA / the ‘Cash Rate’ for which reforms were undertaken to enhance their robustness (6).
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	Unlike some jurisdictions, Australian regulators promote a “multiple-rate” approach, whereby market participants are expected to choose robust reference rates (eg BBSW or AONIA) that best suit each of their products and situations (3).		Unlike some jurisdictions, Australian regulators promote a “multiple-rate” approach, whereby market participants are expected to choose robust reference rates (eg BBSW or AONIA) that best suit each of their products and situations (3).

	This is because the local market generates enough transactions to continue to statistically support the BBSW benchmark, unlike LIBOR for example.		This is because the local market generates enough transactions to continue to statistically support the BBSW benchmark, unlike [the former] LIBOR for example.


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	Further detail on the circumstances in which the Cash Rate Administrator would use Expert Judgement is in Section 7, ‘Use of Expert Judgment’… ”		Further detail on the circumstances in which the Cash Rate Administrator would use Expert Judgement is in Section 7, ‘Use of Expert Judgment’… ”


			''(LIBOR ended in September 2024.)''


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	* [[Fallback]]		* [[Fallback]]
	* [[ISDA]]		* [[ISDA]]
	* [[LIBOR]]
	* [[Reference rate]]		* [[Reference rate]]
	* [[Reserve Bank of Australia]] (RBA)		* [[Reserve Bank of Australia]] (RBA)

Doug: Mend link.

2024-07-04T10:50:37Z

Mend link.

← Older revision		Revision as of 10:50, 4 July 2024
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	==See also==		==See also==
	* [[~~AFMA~~]]		* [[Australian Financial Markets Association]]
	* [[Alternative reference rate]]		* [[Alternative reference rate]]
	* [[ASX]]		* [[ASX]]

Doug: Mend broken link.

2024-02-02T04:07:51Z

Mend broken link.

← Older revision		Revision as of 04:07, 2 February 2024
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	* [[Cash market]]		* [[Cash market]]
	* [[Fallback]]		* [[Fallback]]
	* [[ISDA]}		* [[ISDA]]
	* [[LIBOR]]		* [[LIBOR]]
	* [[Reference rate]]		* [[Reference rate]]

Doug: Layout.

2024-02-02T04:07:23Z

Layout.

← Older revision		Revision as of 04:07, 2 February 2024
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	* [[Cash market]]		* [[Cash market]]
	* [[Fallback]]		* [[Fallback]]
	* [[ISDA]		* [[ISDA]}
	* [[LIBOR]]		* [[LIBOR]]
	* [[Reference rate]]		* [[Reference rate]]

Doug: Remove surplus text.

2024-02-02T04:06:53Z

Remove surplus text.

← Older revision		Revision as of 04:06, 2 February 2024
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	* [[Alternative reference rate]]		* [[Alternative reference rate]]
	* [[ASX]]		* [[ASX]]
			* [[AUD]]
	* [[Australia]]		* [[Australia]]
	* [[Benchmark]]		* [[Benchmark]]
	* [[BBSW]]		* [[BBSW]]
			* [[Cash market]]
	* [[Fallback]]		* [[Fallback]]
			* [[ISDA]
			* [[LIBOR]]
	* [[Reference rate]]		* [[Reference rate]]
	* [[Reserve Bank of Australia]] (RBA)		* [[Reserve Bank of Australia]] (RBA)
	* [[Risk-free rates]] (RFR)		* [[Risk-free rates]] (RFR)
	* [[SONIA]]		* [[SONIA]]
			* [[Unsecured]]


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	(8~~) [https://afma.com.au/policy/topics/benchmarks-ibor-transition-aonia-definition Authoritative sources for AONIA rates - AFMA]~~		(8) [https://www.coriumtreasury.com/ Corium Treasury]


	(9) [https://www.coriumtreasury.com/ Corium Treasury]

	[[Category:Financial_products_and_markets]]		[[Category:Financial_products_and_markets]]

Doug: Layout.

2024-02-01T02:49:21Z

Layout.

← Older revision		Revision as of 02:49, 1 February 2024
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	''Reference interest rates - alternative reference rates - Australia.''		''Reference interest rates - alternative reference rates - Australia.''

	'''Authors: [https://www.linkedin.com/in/pieterbierkens/ Pieter Bierkens]''', Ex Head of Interest Benchmark Reform, ~~CBA~~ & '''[https://www.linkedin.com/in/james-leather-treasury/ James Leather FCT CGMA]''', Corium Treasury Limited.		'''Authors: [https://www.linkedin.com/in/pieterbierkens/ Pieter Bierkens]''', Ex Head of Interest Benchmark Reform, Commonwealth Bank of Australia & '''[https://www.linkedin.com/in/james-leather-treasury/ James Leather FCT CGMA]''', Corium Treasury Limited.

Doug: Layout.

2024-02-01T02:43:53Z

Layout.

← Older revision		Revision as of 02:43, 1 February 2024
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	''Reference interest rates - alternative reference rates - Australia.''		''Reference interest rates - alternative reference rates - Australia.''

	'''Authors: [https://www.linkedin.com/in/pieterbierkens/ Pieter Bierkens]''', Ex Head of Interest Benchmark Reform, CBA, '''[https://www.linkedin.com/in/james-leather-treasury/ James Leather FCT CGMA]''', Corium Treasury Limited.		'''Authors: [https://www.linkedin.com/in/pieterbierkens/ Pieter Bierkens]''', Ex Head of Interest Benchmark Reform, CBA & '''[https://www.linkedin.com/in/james-leather-treasury/ James Leather FCT CGMA]''', Corium Treasury Limited.


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	(9) [https://www.coriumtreasury.com/ Corium Treasury]		(9) [https://www.coriumtreasury.com/ Corium Treasury]

	~~[[Category:Financial_products_and_markets]]~~

	[[Category:Financial_products_and_markets]]		[[Category:Financial_products_and_markets]]

Doug: Add Pieter Bierkens to authors.

2024-02-01T02:43:21Z

Add Pieter Bierkens to authors.

← Older revision		Revision as of 02:43, 1 February 2024
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	''Reference interest rates - alternative reference rates - Australia.''		''Reference interest rates - alternative reference rates - Australia.''

			'''Authors: [https://www.linkedin.com/in/pieterbierkens/ Pieter Bierkens]''', Ex Head of Interest Benchmark Reform, CBA, '''[https://www.linkedin.com/in/james-leather-treasury/ James Leather FCT CGMA]''', Corium Treasury Limited.


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	Further detail on the circumstances in which the Cash Rate Administrator would use Expert Judgement is in Section 7, ‘Use of Expert Judgment’… ”		Further detail on the circumstances in which the Cash Rate Administrator would use Expert Judgement is in Section 7, ‘Use of Expert Judgment’… ”


	~~''(Analysis and summary by James Leather CGMA FCT CertBALM, Corium Treasury - see References below for sources)''~~


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	(9) [https://www.coriumtreasury.com/ Corium Treasury]		(9) [https://www.coriumtreasury.com/ Corium Treasury]

			[[Category:Financial_products_and_markets]]

	[[Category:Financial_products_and_markets]]		[[Category:Financial_products_and_markets]]

Doug: Remove surplus text.

2023-10-02T14:25:40Z

Remove surplus text.

← Older revision		Revision as of 14:25, 2 October 2023
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	The Australian Securities Exchange (the ASX) calculate and publish ‘Realised AONIA’ which reflects the average rate at which banks have transacted in the overnight AUD cash market on an unsecured basis over the past 1 to 6 months (4).		The Australian Securities Exchange (the ASX) calculate and publish ‘Realised AONIA’ which reflects the average rate at which banks have transacted in the overnight AUD cash market on an unsecured basis over the past 1 to 6 months (4).

	AONIA is ~~widely~~ used in many financial contracts, for which it will act as the base interest rate, typically before a margin is applied.		AONIA is used in many financial contracts, for which it will act as the base interest rate, typically before a margin is applied.

imported>Doug Williamson: Layout.

2022-11-26T12:43:32Z

Layout.

← Older revision		Revision as of 12:43, 26 November 2022
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	(3) [https://www.rba.gov.au/mkt-operations/resources/cash-rate-methodology/overview.html Cash rate methodology - RBA]]		(3) [https://www.rba.gov.au/mkt-operations/resources/cash-rate-methodology/overview.html Cash rate methodology - RBA]