1 September 2010

From 1 September 2010, the MNB will publish the HUFONIA (Hungarian Forint Overnight Index Average), the weighted average rate of unsecured forint overnight transactions in the interbank market, derived from daily reports by credit institutions. The choice of name is consistent with European practice (EONIA for the euro and SONIA for sterling), in order to ensure that the average is easily identified as a general market benchmark rate. In developed markets, overnight rates of this type are reference rates for a special category of interest rate swaps (Overnight Indexed Swaps, OIS). Wider use in the domestic market of derivative transactions referenced to expected future movements in overnight interbank rates may help market participants manage their interest rate risk more efficiently and define realistic levels of short-term (i.e. below one year) interbank rates.

In order to support the development of an OIS market, it is important for the MNB to ensure that HUFONIA rates are published at the same time daily. Therefore, also from 1 September 2010, the HUFONIA will be published at 11 a.m. on working days on the Reuters HTBL screen page and on the MNB’s website. The link below contains a detailed definition of the HUFONIA:


Starting from the end of September 2010, OIS rates will be officially published daily (HUFONIA Swap Index), based on quotes by 12 Hungarian banks. The publication of OIS rates, operated jointly with the Hungarian Forex Association, may be another factor contributing to the development of a market for domestic overnight indexed swaps. Quotes will range from one-week to one-year maturity and refer to a total of eight different maturities. The detailed terms and conditions of quotes for the HUFONIA Swap Index will be available on the website of the Hungarian Forex Association at.

Magyar Nemzeti Bank