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CME Term SOFR

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SOFR is an overnight interest rate index derived from daily U.S. Treasury repo transactions and is the industry’s recommended index to replace the widely popular London interbank offered rate (Libor). In 2014 the Federal Reserve (Fed) assembled the ARRC, an industry group comprised of banks, top asset managers and large industry bodies, to select an alternative reference rate for the U.S., one which could prove resilient to market events and robust to prevent manipulation.  

And, in 2017, the ARRC chose SOFR as the preferred new benchmark for dollar-denominated financial instruments.

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