TONA Averages and TONA Index are the benchmarks published by the Bank of Japan that are calculated by compounding the uncollateralized overnight call rate. TONA is one of the alternative interest rates to the Japanese Yen LIBOR. However, when used as the substitute, it must be compounded using the daily TONA. Through the use of TONA Averages and TONA Index, market participants can share the daily compounded TONA levels and reduce the burden involved in calculation and reconciliation.

TONA Averages
Interest rates derived from the daily compounded TONA for the period starting exactly 30 days, 90 days, and 180 days prior to the reference date of the benchmark (each business day) until the reference date

TONA Index
Asset valuation on the reference date assuming the asset is managed using TONA, with 100 as of June 14, 2017 (the date on which the Bank of Japan established “Uncollateralized Overnight Call Rate Code of Conduct”)
*By specifying the start and end dates, the interest rate compounded by TONA for any given period can be calculated from the historical data of the TONA Index.

Tokyo Term Risk Free Rate (TORF) is a Japanese yen short-term interest rate calculated and published by QUICK Benchmarks Inc. (QBS). TORF is one of the alternative benchmarks to replace the London Interbank Offered Rate (LIBOR), and is designated as a “Specified Financial Benchmark” stipulated by the Financial Instruments and Exchange Act.

It is calculated based on the data of derivative transactions whose underlying asset is the “uncollateralized overnight call rate,” which contains almost no credit risk of financial institutions. Like other interest rate benchmarks such as LIBOR, TORF has a feature in that the rate is fixed as of the start of the interest rate calculation period.

Today, it is widely used by financial institutions around the world as the base interest rate for loans with Japanese yen interest rates and derivatives transactions.

For more information, please see below.
https://corporate.quick.co.jp/en/torf

* Use of TORF requires a license agreement with QUICK.