On Apr. 2, 2025, OFR issued final rule for extension of compliance date to Jun. 30, 2025, in federal register; effective date of final rule on extension date is Apr. 1, 2025.
On Jan. 5, OFR proposed data collection, non-centrally cleared repos.
OFR proposed rulemaking to collect data on bilateral repurchase (repo) transactions.
The proposal would fill a critical gap in regulators’ repo market data, as transaction-level data on non-centrally cleared bilateral repos is not currently collected.
Follows 2020 pandemic-related stress in the repo market caused by treasuries, HFs.
In addition to the proposal, the office published a fact sheet as a primer to the rule.
Proposed In-Scope Entities
Required daily reporting to OFR by B/Ds, non B/D lenders, and financial firms with exposure over $10bn to non-centrally cleared bilateral repos and extended guarantees.
The reporting requirement would be an obligation of both the borrower and the lender.
OFR would apply coverage to financial companies, as defined by Dodd-Frank Title II which allows the office to collect information under the definition,(12 USC 5341(2)).
In addition, would extend application to non B/Ds with over $1bn in assets or AUM
Whose daily total outstanding commitments to borrow cash is at least $10bn.
The $10bn threshold includes all business days during the prior calendar quarter.
This includes both overnight and intraday for total gross outstanding commitments.
The rule would only apply to US firms, and OFR review indicated no overlap with non-US regulatory and supervisory requirements for counterparties located outside US.
Data Collection Highlights
The proposal stipulates the data collection may be similar to OFR's current disclosure of aggregated cleared repo data through the office’s US Repo markets data release.
OFR seeks data on rates, haircuts, volumes, transaction date, pricing, tenor, netting.
Also, securities used to collateralize trades and contractual specifics of agreements.
For data on collateral, initial recommendation is to use underlying security's currency of issuance, but OFR is open to feedback to use start/end leg currency denomination.
Firms would be required to start submitting data on the first business day in the third quarter, after the financial quarter in which the firm meets the $10bn threshold.
Consultation
Comments to be received 60 days after the date of publication in the federal register.
Jan. 9, 2023 OFR Federal Register
On Jan. 9, 2023, OFR, US Treasury issued data collection proposal in federal register.
OFR requested comments received 60 days from the official publication, Mar. 9, 2023.
Mar. 2023 FIF Comment Letter
On Mar. 9, 2023, FIF submitted comment letter regarding daily repo reporting proposal
Comments provided re scope of firms subject to reporting; implementation timeframe and process; compliance date; testing; reporting period; data privacy; data elements.
Requested clarification and confirmation on various aspects; for e.g., requested that the OFR define within the rule what is meant by extending a guarantee for a repo.
May 2024 OFR Final Rule
On May 6, 2024, OFR published final rule establishing a data collection for certain non-centrally cleared bilateral transactions in the US repurchase agreement (repo) market.
Collection requires daily reporting to OFR by certain brokers, dealers, other financial companies with large exposures to non-centrally cleared bilateral repo (NCCBR).
Data will support FSOC, OFR work to identify and monitor risks to financial stability.
The final rule established two categories of financial companies subject to reporting.
Rule is effective on Jul. 5, 2024; compliance deadline is 150 days after effective date for category 1 reporters, and 270 days after effective date for category 2 reporters.
For firms that become covered reporters after the effective date, compliance date is 150 or 270 days after the last day of the quarter when firm becomes covered reporter.
In Jun. 2024, FIF issued letter to request compliance date extension, see #216914.
In Aug. 2024, FIF issued letter on concerns and outstanding questions, see #223879.
Sep. 20, 2024 OFR FAQs on Final Rule
On Sep. 20, 2024, OFR issued updated FAQs about NCCBR reporting to assist financial companies in understanding the scope of the final rule published on May 6, 2024.
Covered questions about who reports and the repos in scope; common operational questions; data fields questions; questions re guarantees; questions on bunched repo.
OFR noted that it intends to issue additional FAQs or guidance where appropriate.
Sep. 27, 2024 OFR FAQs on Final Rule
On Sep. 27, 2024, OFR updated FAQs about NCCBR reporting to assist with scope.
NCCBRFAQ-0006 specified which repos by covered reporter in scope, must be reported
Further, FAQ NCCBRFAQ-0007 clarified covered reporter reporting repos of affiliates.
Mar. 21, 2025 OFR Extended Compliance Date
On Mar. 21, 2025, OFR reported 90-day extension of compliance date to Jun. 30, 2025 for Category 2 covered reporters under a rule applying to NCCBR transactions.
Specifically in US repurchase agreement market; date would have been Apr. 1, 2025.
Mar. 26, 2025 OFR Extension Text
On Mar. 26, 2025, OFR published text of final rule extension as sent to federal register.
Apr. 2025 Fed Reg OFR Extended Compliance Date
On Apr. 2, 2025, OFR issued final rule for extension of compliance date to Jun. 30, 2025, in federal register; effective date of final rule on extension date is Apr. 1, 2025.
