The Federal Reserve and the Securities and Exchange Commission will team up with OFR on the initiative, which Berner expects should help build the Treasuryâs ability to assess financial activity.
âCollaborating with our colleagues at the Fed and SEC, we hold great hope for the insights that illumination from this pilot project will yield in promoting the stability of short-term financing markets and our broader financial system,â Berner said in a Wednesday blog post on Treasury.gov.
According to the OFR director, the project will focus on bilateral repo transactions, a part of the repo market where the least amount of information is found.
Bilateral repos occur directly between two companies, where one party sells a security to the other with the intention to buy it back later at an agreed, fixed price.