TraditionDATA launches service to predict SOFR indicative rate

By Joy Dumasia

TraditionDATA, the data and information services division of Compagnie Financière Tradition, has announced its new Secured Overnight Financing Rate (SOFR) Indicative Rate Service.

TraditionDATA is the market data and information services division of Tradition and provides consistent, high-quality financial market data that reflects real price interest in global OTC swaps markets. This includes interest rate derivatives, energy and commodities, credit, fixed income, FX and money markets.

Tradition will combine market-leading general collateral (GC) repo trade and volume data sourced from its number one interdealer brokerage desk, alongside anonymized tri-party repo trade and volume data from BNY Mellon.

The service takes the incoming data from both providers. It uses a proprietary methodology to produce a volume-weighted median repo rate throughout the day, intended to inform market participants’ assessment of where SOFR will fix the following day.

TraditionDATA is the market data and information services division of Tradition and provides consistent, high-quality financial market data that reflects real price interest in global OTC swaps markets. This includes interest rate derivatives, energy and commodities, credit, fixed income, FX and money markets.

Scott Fitzpatrick, Global Head of TraditionDATA, said: “SOFR is here, and it is here to stay. We are acutely aware of the significance of this and the requirement for high-quality data services around it. This new development from our data product team will provide a valuable insight during the trading day as to where SOFR is likely to fix tomorrow. In addition, this intra-day service will allow the global trading community to monitor trends and track stress indicators.”

Brian Ruane, CEO, Clearance and Collateral BNY Mellon, said: “The industry is at a critical juncture in the transition away from LIBOR. Therefore, the ability to offer indicative rates to financial market participants will help facilitate a more seamless transition to SOFR, the leading alternative benchmark, and help improve marketplace efficiency and transparency.”