The Singapore Overnight Rate Average (SORA) was identified by The Association of Banks in Singapore and the Singapore Foreign Exchange Market Committee as the replacement interest rate benchmark for the Singapore Dollar Swap Offer Rate (SOR) and Singapore Interbank Offered Rate (SIBOR). An industry-led committee, the Steering Committee for SOR & SIBOR Transition to SORA (SC-STS), comprising a group of industry participants, was convened by the Monetary Authority of Singapore (MAS) to oversee the successful industry-wide interest rate benchmark transition from SOR and SIBOR to SORA.

SORA is an interest rate benchmark based on the average rate of unsecured overnight interbank SGD transactions brokered in Singapore. Administered by MAS, SORA is underpinned by a deep and liquid overnight funding market, and is commonly monitored by money market participants as a reflection of daily conditions in SGD money markets.

This transition was part of a broader global initiative to move away from the now-defunct London Interbank Offered Rate (LIBOR) and other Interbank Offered Rate (IBOR) benchmarks to more robust, transparent, and reliable overnight interest rate benchmarks. Singapore’s alignment with international standards helps to enhance integrity, efficiency and resiliency in the use of interest rate benchmark in its financial markets.