Compliance deadlines for certain financial firms to report non-centrally cleared bilateral repurchase (NCCBR) agreement data to the Office of Federal Research (OFR) has been extended under a final rule published Wednesday in the Federal Register.
Under the final rule, which took effect April 1, institutions that were subject to an April 1 compliance deadline now have until June 30 to comply. Those firms that were due to begin complying 270 days from the effective date of the rule (that was July 5, 2024) now have 360 days to do so.
Some firms were required to begin reporting last December, the agency noted.
The data collection rule requires daily reporting to the OFR by certain brokers, dealers, and other financial companies with large exposures to NCCBR transactions. The information is being used by the OFR, the office wrote, to fulfill its responsibilities under title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act, including support of the Financial Stability Oversight Council (FSOC) and council member agencies by facilitating financial stability monitoring and research.
The agency said the collection is being done to fill a critical gap in regulators’ information about the overall repo market by collecting data on the NCCBR segment, last segment for which regulators have not had a transaction-level data source. “Without the collection, regulators would have limited insight into risks in this segment and across segments,” it said.
According to the rule, the data reporting is required of any financial company participating in NCCRB transactions that is –
(i) A securities broker, securities dealer, government securities broker, or government securities dealer whose average daily outstanding commitments to borrow cash and extend guarantees in non-centrally cleared bilateral repurchase agreement transactions with counterparties over all business days during the prior calendar quarter is at least $10 billion, or
(ii) Any other financial company with over $1 billion in assets or assets under management whose average daily outstanding commitments to borrow cash and extend guarantees in non-centrally cleared bilateral repurchase agreement transactions, including commitments of all funds for which the company serves as an investment adviser, with counterparties that are not securities brokers, securities dealers, government securities brokers, or government securities dealers over all business days during the prior calendar quarter is at least $10 billion.
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