Central Clearing of Repo Unlikely to Skew SOFR -- Market Talk

Dow Jones

Apr 23, 2025

0915 ET - New rules requiring central clearing are set to transform how the Treasury repo market operates starting in mid-2027. The rules will make some opaque financial plumbing more transparent, and as one side effect, a greater share of repo transactions will be visible for inclusion in the calculation of the secured overnight financing rate, or SOFR, a important credit benchmark. New research by Ashlyn Cenicola and Corey Garriott of the Treasury Department's Office of Financial Research suggests that despite the broader sample, the calculated SOFR rate isn't likely to be much different on any given day. They studied the question by comparing actual historical SOFR rates with a hypothetical SOFR rate aimed at mimicking the centrally cleared version. (matt.grossman@wsj.com; @mattgrossman)

(END) Dow Jones Newswires

April 23, 2025 09:16 ET (13:16 GMT)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2529068512"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2529068512\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2529068512?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-04-23 21:16","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2529068512","market":"nz","top_or_hot":-1,"title":"Central Clearing of Repo Unlikely to Skew SOFR -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0915 ET - New rules requiring central clearing are set to transform how the Treasury repo market operates starting in mid-2027. The rules will make some opaque financial plumbing more transparent, and as one side effect, a greater share of repo transactions will be visible for inclusion in the calculation of the secured overnight financing rate, or SOFR, a important credit benchmark. New research by Ashlyn Cenicola and Corey Garriott of the Treasury Department's Office of Financial Research suggests that despite the broader sample, the calculated SOFR rate isn't likely to be much different on any given day. They studied the question by comparing actual historical SOFR rates with a hypothetical SOFR rate aimed at mimicking the centrally cleared version. (matt.grossman@wsj.com; @mattgrossman) \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  April 23, 2025 09:16 ET (13:16 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Central Clearing of Repo Unlikely to Skew SOFR -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCentral Clearing of Repo Unlikely to Skew SOFR -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-04-23 21:16</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0915 ET - New rules requiring central clearing are set to transform how the Treasury repo market operates starting in mid-2027. The rules will make some opaque financial plumbing more transparent, and as one side effect, a greater share of repo transactions will be visible for inclusion in the calculation of the secured overnight financing rate, or SOFR, a important credit benchmark. New research by Ashlyn Cenicola and Corey Garriott of the Treasury Department's Office of Financial Research suggests that despite the broader sample, the calculated SOFR rate isn't likely to be much different on any given day. They studied the question by comparing actual historical SOFR rates with a hypothetical SOFR rate aimed at mimicking the centrally cleared version. (matt.grossman@wsj.com; @mattgrossman) \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  April 23, 2025 09:16 ET (13:16 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SOFR","symbol_name":"Amplify Samsung SOFR ETF","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2529068512","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2529068512","pubTimestamp":1745414160,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0915 ET - New rules requiring central clearing are set to transform how the Treasury repo market operates starting in mid-2027. The rules will make some opaque financial plumbing more transparent, and as one side effect, a greater share of repo transactions will be visible for inclusion in the calculation of the secured overnight financing rate, or SOFR, a important credit benchmark. New research by Ashlyn Cenicola and Corey Garriott of the Treasury Department's Office of Financial Research suggests that despite the broader sample, the calculated SOFR rate isn't likely to be much different on any given day. They studied the question by comparing actual historical SOFR rates with a hypothetical SOFR rate aimed at mimicking the centrally cleared version. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"SOFR":"Amplify Samsung SOFR ETF"},"translate_title":"回购中央清算不太可能扭曲SOFR——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SOFR":1},"content_text":"0915 ET - New rules requiring central clearing are set to transform how the Treasury repo market operates starting in mid-2027. The rules will make some opaque financial plumbing more transparent, and as one side effect, a greater share of repo transactions will be visible for inclusion in the calculation of the secured overnight financing rate, or SOFR, a important credit benchmark. New research by Ashlyn Cenicola and Corey Garriott of the Treasury Department's Office of Financial Research suggests that despite the broader sample, the calculated SOFR rate isn't likely to be much different on any given day. They studied the question by comparing actual historical SOFR rates with a hypothetical SOFR rate aimed at mimicking the centrally cleared version. (matt.grossman@wsj.com; @mattgrossman) \n\n\n  (END) Dow Jones Newswires\n\n\n  April 23, 2025 09:16 ET (13:16 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}