Treasury Requires Reporting Of Repo Activity By CCPs

The U.S. Treasury Department Office of Financial Research ("OFR") adopted final rules establishing a data collection requiring the reporting of certain information about centrally cleared transactions in the U.S. repurchase agreement ("repo") market to the OFR.

As previously covered, the final rule will require certain U.S. central counterparties ("CCPs") to report daily on repo transactions. The primary purposes of the final rule are to (i) enable the Financial Stability Oversight Council and the OFR to identify and monitor risks to financial stability and (ii) improve the calculations of certain reference rates, such as the Secured Overnight Funding Rate (SOFR).

The OFR stated that under the final rules: