OFR's "Sizing the U.S. Repo Market"
The U.S. Treasury's Office of Financial Research published a brief titled, "Sizing the U.S. Repo Market, which states, "According to new data collected by the OFR, the U.S. repurchase agreement (repo) market averaged about $12.6 trillion in daily exposures in Q3 2025, a number that is about $700 billion larger than previous estimates. The repo market is one of the world's largest and most important short-term funding markets, providing funding for securities dealers and serving as a cash management tool for banks. Despite this fundamental role, this market has historically had limited transparency." The update explains, "Following the 2008-09 financial crisis, regulators implemented measures to enhance market visibility by collecting both balance sheet and transaction-level repo data. To eliminate a data gap within the largest market segment, in December 2024, the Office of Financial Research (OFR) launched a collection initiative focused on transaction-level data for non-centrally cleared bilateral repo (NCCBR). With the data fully on board as of July 2025, researchers can now produce a transaction-based estimate of the U.S. repo market's size for the first time, marking a significant advancement in financial market transparency." It continues, "Of the $12.6 trillion in daily average exposures in Q3 2025, $4.4 trillion was centrally cleared by the Fixed Income Clearing Corporation with another $3.1 trillion settled on Bank of New York Mellon's (BNY's) tri-party platform (excluding centrally cleared). NCCBR accounted for the remaining $5.0 trillion." The piece tells us, "The OFR's data on the U.S. repo market has increased over time as data gaps have been closed.... Data on tri-party repo settled by BNY are collected by the Federal Reserve Bank of New York and available from 2015. Data on cleared repo segments (from the OFR cleared repo collection) are available beginning in 2018. From 2021-24, use of the Federal Reserve's overnight reverse repo facility (ON RRP) first increased and then declined. The OFR's new NCCBR collection occurred in two phases. The first phase of the collection began in December 2024 and includes data collected from SEC registered broker-dealers. The second phase that began in July 2025 includes a broader set of financial institutions. The OFR's unique data offers rich detail on repos for each market segment, including information on counterparties, rates, tenor, and underlying collateral. In Q3 2025, 69.4% of repo exposures were collateralized by U.S. Treasuries.... The mix of collateral varies by segment. In Q3 2025, U.S. Treasuries collateralized 88.9% of exposures in the cleared repo segments, but only 61.8% of NCCBR exposures and just over half (52.6%) of the exposures in tri-party." The article adds, "Data from the OFR NCCBR collection are intended to be incorporated into the OFR's Short-term Funding Monitor (STFM), which provides daily data on a wide range of U.S. repo market transactions."
