On March 10, 2023, Managed Funds Association (MFA), the trade association for the global alternative asset management industry, submitted a comment letter to the U.S. Department of the Treasury’s Office of Financial Research (OFR) in response to its proposed rule on data collection for non-centrally cleared bilateral repo transactions.
MFA’s comment letter expresses support for regulators improving data collections to help identify and monitor risks to financial stability but suggests that the proposed rule will have the unintended effect of reducing counterparties for private funds, increasing concentration, and decreasing liquidity in the repo market. MFA’s letter presents OFR with recommendations that will balance providing regulators with decision-useful data on non-centrally cleared bilateral repo transactions with mitigating unintended disruptions to the orderly operation of the market.
