A press release from the OFR published last week says, "The U.S. Office of Financial Research (OFR) released its 2018 Annual Report to Congress today, stating that risks to U.S. financial stability remain in the medium range, reflecting a mix of high, moderate, and low risks to the financial system." OFR's Annual Report, which contains almost nothing on money market funds, tells us, "The U.S. market for repurchase agreements, or repos, provides more than $3 trillion in funding every day to securities dealers and others. But its vulnerability to runs and fire sales poses potential threats to financial stability. Data gaps persist in securities financing transactions, including repo agreements and securities lending. In particular, comprehensive and detailed data are scant for about half of the U.S. repo market -- bilateral repo transactions. The OFR is proposing to collect data on cleared bilateral repos. We are also exploring ways to learn more about uncleared bilateral repos. In a repo transaction, a security owner sells a security to raise cash. The agreement requires the seller of the security to repurchase it on a specific date for a prearranged price." The report adds, "The OFR continued during the year to update our suite of financial stability monitoring products, including the U.S. Money Market Fund Monitor, which tracks the investment portfolios of money market funds. Users of the monitor can see trends and developments across the money market fund industry. The OFR updates the monitor with data from the SEC and presents the data in a visual format."

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