Cash Market Fallback Methodology Reform
Transitioning cash market products (loans, bonds, money market instruments) from JIBAR to ZARONIA by defining a fallback methodology: compounded ZARONIA + credit adjustment spread (CAS).

No data available for the deliverable: Transitioning cash market products (loans, bonds, money market instruments) from JIBAR to ZARONIA by defining a fallback methodology: compounded ZARONIA + credit adjustment spread (CAS).

Summary

The reform adopts a compounded ZARONIA plus credit adjustment spread (CAS) fallback, with ISDA protocols and cash market conventions to guide the transition.

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Is it working?

The reform is progressing, with strong regulatory support and industry engagement, but full transition will require sustained effort. JIBAR cessation is scheduled for December 2026 with ongoing monitoring and support.

Actions

The derivatives market is transitioning well, but cash market adoption is slower. Legacy contract remediation and liquidity-building will continue through 2026.

Are there plans?

ISDA protocol and cash market conventions are in place, with regulatory exemptions and daily CAS publication by Bloomberg/ISDA.

Is it on the agenda?

The SARB, FSCA and Market Practitioners Group have prioritised this reform, with final methodology published in March 2025.

Goals

To ensure an orderly transition for cash market instruments from JIBAR to ZARONIA, minimising value transfer and systemic risk.

Summary

The reform adopts a compounded ZARONIA plus credit adjustment spread (CAS) fallback, with ISDA protocols and cash market conventions to guide the transition.

Canvas not supported.

Is it working?

The reform is progressing, with strong regulatory support and industry engagement, but full transition will require sustained effort. JIBAR cessation is scheduled for December 2026 with ongoing monitoring and support.

Actions

The derivatives market is transitioning well, but cash market adoption is slower. Legacy contract remediation and liquidity-building will continue through 2026.

Are there plans?

ISDA protocol and cash market conventions are in place, with regulatory exemptions and daily CAS publication by Bloomberg/ISDA.

Is it on the agenda?

The SARB, FSCA and Market Practitioners Group have prioritised this reform, with final methodology published in March 2025.

Goals

To ensure an orderly transition for cash market instruments from JIBAR to ZARONIA, minimising value transfer and systemic risk.

No data available for the deliverable: Transitioning cash market products (loans, bonds, money market instruments) from JIBAR to ZARONIA by defining a fallback methodology: compounded ZARONIA + credit adjustment spread (CAS).

No data available for the deliverable: Transitioning cash market products (loans, bonds, money market instruments) from JIBAR to ZARONIA by defining a fallback methodology: compounded ZARONIA + credit adjustment spread (CAS).

No data available for the deliverable: Transitioning cash market products (loans, bonds, money market instruments) from JIBAR to ZARONIA by defining a fallback methodology: compounded ZARONIA + credit adjustment spread (CAS).

No data available for the deliverable: Transitioning cash market products (loans, bonds, money market instruments) from JIBAR to ZARONIA by defining a fallback methodology: compounded ZARONIA + credit adjustment spread (CAS).

Analyst: Tinashe Kambadza
Status: In progress
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