ZARONIA MM Cat IV implementation – Successful go-live
Strate has successfully enabled the South African Rand Overnight Index Average (ZARONIA) and Money Market Category IV initiative, which went live on 19 May 2025.
As noted in our communication on 22 April 2025 regarding ZARONIA as the new reference rate for financial market contracts, Strate has undertaken extensive preparations for this significant change to the South African financial market.
Update on implementation progress
We have now completed all the necessary steps for implementation, including:
- Market scripted testing with the relevant parties
- Training sessions for CSD Participants, Issuer Agents,
- and Trade Reporting Parties (TRPs)
- An independent validation of Strate’s implementation of the coupon/interest rate calculation methodology for ZARONIA-linked securities
- Completed governance and sign-off procedures
What this means for the market
Strate has enabled the cash market to issue, settle and access asset and registry services for all ZARONIA-linked bonds and money market securities. Additionally, Strate has enabled investors, in conjunction with their Issuers and CSD Participants, to dematerialise all Money Market Category IV securities which include Step Up Rate Notes, Step Down Rate Notes and Mixed Rate Notes.
All stakeholders who participated in the testing activities can now issue ZARONIA-linked securities or dematerialise existing certificates for Step Up Rate Notes, Step Down Rate Notes and Mixed Rate Notes. You are now integrated into the ecosystem and able to transition from JIBAR to ZARONIA.
The Strate team remains available to support operational activities for ZARONIA and Money Market Category IV. We wish to thank all market participants for helping to deliver this ecosystem change which will serve the capital markets.
For any queries, please contact CSD Services on CSD-Services@strate.co.za.
