SONIA (interest rate)

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For other uses, see Sonia.

SONIA (Sterling Over Night Index Average) is the effective reference overnight rate for unsecured transactions in the Sterling market. Each London business day the SONIA fixing is calculated as the weighted average rate of all unsecured overnight sterling transactions brokered in London by Wholesale Markets Brokers' Association (WMBA) members between 00:00 and 15.15 GMT in a minimum deal size of 25 million GBP with counterparties listed under Section 43 of the UK Financial Services Act 1986.

It was launched in March 1997 by the WMBA, and is endorsed by the British Bankers Association (BBA).

The rate conventions are: annualised rate, act/365, four decimal places.

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