April 25, 2025 (NO COMMENTS)

Rules forcing large portions of the US Treasury repo market into central clearing could increase volatility in the secured overnight financing rate (SOFR), according to new research published by the Office of Financial Research, though the authors note it is unlikely to have any significant directional impact on the main US borrowing benchmark.

Research conducted by OFR analysts Ashlyn Cenicola and Corey Garriott finds the inclusion of trades that are currently non-centrally cleared bilateral