CME Group launches US Dollar RepoFunds Rate benchmark

6 articles · Updated · Bloomberg · May 6

The end-of-day rate is based on centrally cleared overnight US repo trades on BrokerTec's dealer-to-dealer central limit order book, which averaged about $412bn daily in March.
It will be published at 3pm New York time and expands CME's suite of global risk-free rates tied to short-term funding markets.
The benchmark is designed to track overnight US dollar funding costs in the repo market, a core source of short-term financing for financial institutions.

How will a same-day funding benchmark reshape high-speed trading and risk management strategies?

Will CME's new repo rate challenge SOFR's dominance or fragment the overnight funding market?

As private benchmarks multiply, are we building a more resilient or a more fragile financial system?