About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Wholesale Market Brokers’ Association Publishes Repurchase Overnight Index Average (“Ronia”)

Subscribe to our newsletter

Wholesale Market Brokers’ Association (“WMBA”) today announces that it is publishing the Repurchase Overnight Index Average (“RONIA”), a new UK secured money market benchmark.

The new index tracks actual market secured overnight funding rates in sterling and is compiled as a weighted average of transactions brokered in London, supplied by members of the WMBA between 12:00 and 16:15 the following day.

RONIA is based on Secured Overnight Swaps which are repurchase (repo) agreements in which securities are sold provided that they will be repurchased on the following day.  Financial institutions use overnight repos as a means of raising short-term money for financing inventories through either a short term loan funded by an overnight deposit or an overnight loan funded by a short-term deposit.

Following the financial crisis, counterparty risk provisioning and collateralisation of portfolios has become increasingly important to financial decision-making, the corollary of which has been a huge growth in secured lending and borrowing markets in the UK.

Commenting on the launch, Alex McDonald, CEO, Wholesale Market Brokers’ Association said, “The launch of RONIA is a response to the need for an official fixing benchmark to enable market participants to hedge exposures to Secured Overnight Swaps / secured lending.”

RONIA eligible transactions are Delivery by Value (DBV) which is a mechanism whereby a CREST member who has borrowed money against overnight gilt collateral may have gilts on its account to the required value delivered automatically by the system to the CREST account of the money lender.

The index is a weighted average overnight deposit rate for each business day. Each rate in the average is weighted by the principal amount of deposits which were taken on that day. The Index is published at 17:00 hours every day.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: In data we trust – How to ensure high quality data to power AI

Artificial intelligence is increasingly powering financial institutions’ processes and workflows, encompassing all parts of the enterprise from front-office to the back-office. As organisations seek to gain a competitive edge, they are trialling the technology in variety of ways to streamline and empower multiple use cases. Some are further than others along the path to achieving...

BLOG

APAC Data Management Leaders Revealed in Inaugural A-Team Insight Awards Introduction

A-Team Group is pleased to announce the winners of the inaugural Capital Markets Technology APAC Awards 2025. These awards celebrate the technology providers and financial institutions at the forefront of innovation across the Asia Pacific region. Coinciding with the announcement, we have also launched our comprehensive annual report, “The State of Capital Markets Technology in...

EVENT

Data Management Summit New York City

Now in its 15th year the Data Management Summit NYC brings together the North American data management community to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

BCBS 239 Data Management Handbook

Our 2015/2016 edition of the BCBS 239 Data Management Handbook has arrived! Printed copies went like hotcakes at our Data Management Summit in New York but you can download your own copy here and get access to detailed information on the  principles and implications of BCBS 239 on Data Management. This Handbook provides an at-a-glance...