SONIA

An index that the tracks Sterling overnight funding rates for trades that occur in off hours. The Sterling overnight funding rate is a reflection of the depth of the overnight business in the market.

Investopedia Says:
The Sterling Overnight Interbank Average Rate (SONIA) was established in 1997 by the Wholesale Markets Brokers’ Association in Great Britain. Prior to the SONIA the Wholesale Markets Brokers’ Association had no Sterling overnight funding rate. This void created volatility in England's overnight interest rates. When the SONIA was created, it gave a stability to overnight rates and also encouraged the creation of the Overnight Index Swaps markets and the Sterling Money Markets in Great Britain.

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For other uses, see Sonia.

SONIA is the Sterling OverNight Index Average. Launched in 1997 by the Wholesale Markets Brokers' Association (WMBA), the weighted average is calculated using brokered unsecured overnight trades between banks listed under Section 43 of the Financial Services Act 1986.

See also

• Eonia

External links

• WMBA : Guide to SONIA/EURONIA

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