Abstract: A system and methods for determining a short-term interest rate for use in financial transactions. The determined rate may be used as a standard or baseline to which other rates are pegged. The described process may be used to generate a short-term rate that is a more accurate reflection of market transactions than the substitutes for Libor being considered. The described process may also be used to generate term-specific short-term rates and rates based on transactions involving entities having a specific credit rating. These capabilities result in a more reliable short-term rate and one that may be made specific to certain classes of participants in a transaction.