DEFINITION of 'Canadian Overnight Money Market Rate'
A measure or estimate of the rate at which major dealers are able to arrange financing of securities inventory for one business day. It is compiled by the Bank of Canada at the end of the day through a survey of major participants in the overnight market.
BREAKING DOWN 'Canadian Overnight Money Market Rate'
The Canadian overnight money market rate comprises the weighted-average repo funding cost of major money market dealers. It is a less volatile measure of the collateralized overnight rate than other rates as it represents a greater volume of overnight transactions from more participants.