CME Group (NYSE:CME) on May 6, 2026, launched the U.S. dollar RepoFunds Rate (RFR USD), a new benchmark aimed at providing a more immediate measure of overnight U.S. repo funding costs and a direct competitor to the established Secured Overnight Financing Rate (SOFR). The new rate is built on the back of BrokerTec’s dealer-to-dealer platform, which handled an average of $412 billion in daily trading volumes in March.
"This new RFR USD benchmark provides enhanced transparency, enabling precise mark-to-market insights for dealers and improved access to valuation data for the broader marketplace," Matt Gierke, Global Head of BrokerTec, said.
The RFR USD is published at 3:00 p.m. ET on the same day of trading, a key distinction from SOFR, which is published the following business day. This earlier publication offers a more timely snapshot of repo market activity. The benchmark is calculated using a volume-weighted median methodology, mirroring the approach used by the New York Federal Reserve for SOFR, and is administered by CME Group Benchmark Administration.
The launch of RFR USD represents a significant development for investors and financial institutions that rely on short-term funding markets. The new benchmark is licensed for use in a variety of financial products, including over-the-counter (OTC) derivatives, structured products, and floating rate notes. This positions RFR USD as a viable alternative to SOFR for a wide range of applications, potentially influencing the pricing of trillions of dollars in financial instruments. The adoption of RFR USD by market participants will be a key factor in its success as a challenger to the dominant SOFR.
This article is for informational purposes only and does not constitute investment advice.
