OFR Publications

Cyber Outages Disrupt Repo Market, Costing $100B

A working paper published by the Office of Financial Research indicates that cyber-induced operational outages can disrupt the U.S. repurchase agreements (repo) market, potentially costing over $100 billion in funding and raising rates by over 50 basis points. The study highlights the importance of cybersecurity preparedness and institutional resilience.

Working Paper on Client Clearing, Netting Efficiency, and Pricing

The Office of Financial Research published a working paper analyzing client clearing services in centrally cleared markets. The paper, based on confidential data, demonstrates how client clearing improves netting efficiency for dealers and offers pricing advantages to clients, enhancing market access and competition.

Hedge Fund Participation in Cleared Repo and SEC Rule Readiness

The Office of Financial Research published a brief examining hedge fund participation in the cleared repo market and their readiness for the SEC Treasury clearing rule. The brief indicates hedge funds are largely operationally prepared, with balance sheet benefits for dealers being a key motivator for central clearing.

Central Counterparty Management of Liquid and Prefunded Resources

The Office of Financial Research published a working paper analyzing central counterparty (CCP) resource demands. The paper presents a framework for understanding aggregate CCP resource demands, integrating various dimensions of CCP heterogeneity and empirical data. It offers reflections on CCP liquidity management, particularly concerning physically settled contracts and the implications of insufficient liquid resources.

OFR Brief: Private Credit Exposures to Banks

The Office of Financial Research (OFR) published a brief on March 12, 2026, analyzing counterparty exposures between banks and private credit funds. The brief highlights that while the private credit sector's vulnerabilities appear contained, the linkages with traditional financial institutions through counterparty exposures are a key channel for risk transmission that warrants monitoring.