CME Group (NASDAQ: CME) announced the launch of the U.S. Dollar RepoFunds Rate to measure overnight funding costs in U.S. repo markets. The new benchmark uses data from centrally cleared overnight U.S. repo trades executed on BrokerTec's dealer-to-dealer central limit order book platform.

The benchmark provides same-day U.S. repo price transparency, with the end-of-day rate published at 3:00 p.m. ET. BrokerTec's platform recorded average daily trading volumes of $412 billion in March.

"BrokerTec's U.S. repo market is a definitive source of price discovery for U.S. Treasury repo," said Matt Gierke, Global Head of BrokerTec. "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."

The U.S. Dollar RepoFunds Rate uses a volume-weighted median methodology, the same standard used by the New York Federal Reserve in calculating SOFR. CME Group Benchmark Administration administers the rate, which is available through CME Datamine and accessible to BrokerTec CLOB clients.

Max Ruscher, Head of Benchmark Services at CME Group, said the benchmark expands the existing suite of RepoFunds Rate products that measure secured one-day funding costs in euro, sterling and yen sovereign bond markets. The rates are licensed for use in derivatives products including OTC derivatives, structured products and floating rate notes.

The information is based on a company press release.