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.
Covered Reporters are financial companies with large exposures to the NCCBR market, meaning at least $10 billion in NCCBR outstanding. Financial companies are defined as Covered Reporters under two categories. The first category focuses on brokers and dealers, while the second includes other financial companies. For details on the criteria to determine whether a company is a Covered Reporter, see the Final Rule section III(a).
The Final Rule is effective July 5, 2024, and Covered Reporters can begin testing their data submissions at any time. The timeline for financial companies that are Covered Reporters as of the effective date of the Final Rule is:
| Submissions testing can begin as early as… | Daily reporting begins no later than… | |
|---|---|---|
| Category 1 Covered Reporter | July 5, 2024 | December 2, 2024 |
| Category 2 Covered Reporter | July 5, 2024 | April 1, 2025 |
The OFR encourages Category 1 Covered Reporters to begin testing as early as possible and no later than 90 days before the December 2, 2024, compliance date.
The OFR encourages financial companies that meet reporting requirements to reach out to the OFR at DCU_Support@ofr.treasury.gov. OFR staff will provide onboarding instructions, set up Covered Reporters with connectivity to the OFR’s Data Collection Utility (DCU), and assist with submission testing as soon as they are ready. Other NCCBR-related questions can be directed to NCCBR_General_Inquiries@ofr.treasury.gov.
Fact Sheet (Updated July 5, 2024)
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