A stable and well-functioning tri-party repo market is critical to the health and stability of the U.S. financial markets and the U.S. economy for several reasons. The tri-party repo market

• creates market liquidity and price transparency for U.S. government and corporate securities that foster stable financing costs for U.S. companies and the U.S. government,

• is interconnected with other payment clearing and settlement services that are central to U.S. financial markets and are operated by the two tri-party agent banks, and

• serves as a critical source of funding for systemically important broker-dealers that make markets in U.S. government and corporate obligations.

To strengthen the resiliency of the tri-party repo infrastructure in stressed market conditions, the Federal Reserve looks to market participants to reduce reliance on intraday credit, make risk management practices more robust to a broad range of events, and take steps to reduce the risk that a dealer's default could prompt destabilizing fire sales of its collateral by its lenders.

September tri-party repo

September FICC GCF repo

Explanatory notes

All historical data >>

The following is a brief chronology of events in the tri-party repo market and efforts to make the market more resilient:

• In 2008, weaknesses in the tri-party repo market surfaced.

• In 2009, the Tri-Party Repo Infrastructure Reform Task Force, comprised of diverse range of market participants, was established.

• May 2010, the Task Force issued a report with recommendations to modify tri-party repo settlement process to reduce market’s dependency on intraday credit provided by clearing banks.

• May 2010, the New York Fed issued a white paper on tri-party repo infrastructure reform.

• February 2012, the Task Force issued its final report.

• February 2012, the New York Fed announced that the Federal Reserve would intensify supervisory oversight of key tri-party market participants’ efforts to implement Task Force recommendations in timely fashion.