NEW YORK, May 6 (Reuters) – The Office of Financial Research (OFR), a U.S. Treasury Department-based research powerhouse, said on Monday it has adopted a final rule that will allow it to collect data on certain transactions in the repurchase agreement (repo) market.
Most hedge fund activity in repo markets – where banks and other players such as hedge funds borrow short-term loans backed by Treasuries and other securities – is done bilaterally between brokers and customers.
By establishing data collection for non-centrally cleared bilateral transactions, regulators want to improve visibility into this opaque but vital funding market for Wall Street.
“The collected data will be used to support the work of the Financial Stability Oversight Council, its member agencies, and the OFR to identify and monitor risks to financial stability,” the OFR said in a statement.
“The OFR’s permanent data collection will shine a spotlight into this opaque corner of the financial market, provide high-quality data on (non-centrally cleared bilateral repo) transactions, and remove a significant blind spot for financial regulators,” it said.
Source: REUTER
