CME Group Inc. unveiled Wednesday a new benchmark rate tracking overnight funding costs in the US Treasury market, expanding its suite of risk-free rates available to traders and financial institutions. The overnight repo rate joins CME's existing global reference rates used for derivatives pricing and cash market transactions.

Overnight repurchase agreements represent one of the most active segments of the US money markets, serving as a primary funding mechanism for banks and securities firms. Financial institutions rely on these rates for pricing derivatives, loans, and other financial products. The benchmark provides a transparent, market-based reference as the industry continues moving away from legacy rates like LIBOR.

The launch positions CME Group to capture more of the interest rate benchmark market amid growing demand for reliable reference rates. The exchange operator now offers a broader array of rates that market participants can use for managing interest rate exposure and valuing financial instruments.