The repurchase agreement (repo) market is an important component of the U.S. financial system, providing trillions of dollars of daily funding to large financial institutions and facilitating liquidity for U.S. Treasurys and other securities. The repo market allows participants to borrow cash against securities pledged as collateral, with an obligation to repurchase those securities in the future.
The U.S. repo market has four distinct segments. The non-centrally cleared bilateral repo (NCCBR) market segment is the only one that contains neither a central counterparty nor a triparty custodian. Our most recent estimate indicates that, at more than $2 trillion in outstanding commitments each day, NCCBR is currently the largest of the repo market’s four segments. Certain characteristics of the NCCBR market segment may increase the potential for risks to financial stability relative to other segments. However, data gaps have limited the ability of financial regulators to monitor risks and vulnerabilities in this segment.
Rule to Establish an Ongoing Data Collection
In May 2024, we adopted a Final Rule to establish an ongoing data collection of non-centrally cleared bilateral transactions in the U.S. repo market, the last repo market segment lacking a transaction-level data source. This collection will fill a critical data gap, supplementing the transaction-level information already available to the official sector on the triparty, centrally cleared FICC Delivery-versus-Payment (DVP), and centrally cleared FICC General Collateral Finance (GCF) market segments.
We also adopted a rule in February 2019 to establish an ongoing data collection covering centrally cleared transactions in the U.S. repurchase agreement market.
Related Documents
PRESS RELEASE | MAY 6, 2024
OFR Adopts Final Rule for Data Collection of Non-centrally Cleared Bilateral Transactions in the U.S. Repurchase Market
NOTICE OF PROPOSED RULEMAKING (NPRM) | JAN 5, 2023
Collection of Non-Centrally Cleared Bilateral Transactions in the U.S. Repurchase Agreement Market
PRESS RELEASE | JAN 5, 2023
Office of Financial Research releases Proposal to Collect Data on Certain Repo Transactions
FACT SHEET | JAN 5, 2023
NCCBR Notice of Proposed Rulemaking Fact Sheet
BLOG | DEC 5, 2022
OFR’s Pilot Provides Unique Window Into the Non-centrally Cleared Bilateral Repo Market
BLOG | AUG 24, 2022
Non-centrally Cleared Bilateral Repo
FROM THE DIRECTOR | AUG 1, 2022
OFR Continues Efforts to Fill Key Gap in Financial Data