Session

Description

Opening remarks

Programme Director: Delisile Mtsweni (SARB)

MPG Chairperson’s keynote address

Deputy Governor Rashad Cassim (SARB)

Reference rate reforms and the emerging opportunities set

The programme for reforming critical reference rates has gained momentum following the completion of several foundational activities of the Jibar transition plan. Immediately after a year-long market observation period, the SARB endorsed ZARONIA as its successor rate for Jibar. Consequently, the MPG published several white papers on market conventions for ZARONIA-linked products and an updated Jibar transition plan to aid market participants to navigate the transition.

In this session, the MPG will unpack critical milestones of the Jibar transition roadmap and highlight the opportunities and challenges that market participants need to consider. In particular, the MPG will discuss:

• the Jibar cessation announcement;

• the use of regulatory instruments and persuasion to catalyse the Jibar transition;

• the feasibility of a forward-looking term rate;

• the continued use of other widely used rates (e.g. the South African Futures Exchange overnight rate);

• positioning organisations and portfolios for the Jibar transition;

• the development of performance benchmarks; and

• operational readiness and opportunities to modernise market infrastructure.

Moderator:  Zakhele Gininda (SARB)

Discussants:  Elmarie Hamman (FSCA), Gill Raine (ASISA), Richard Klotnick (Absa), Zafar Parker (SARB)