In its Annual Report to Congress, the Office of Financial Research ("OFR") found that risks to U.S. financial stability are "in the medium range overall." OFR said market risk is due to historically high stock prices, but stated that current solvency and leverage risks are low. Cybersecurity was also identified as a high risk.

The OFR report addressed these regulatory issues:

  • proposed changes to large bank holding company capital regulation (p. 23);
  • effects of a failed financial firm's derivatives exposures (p. 32);
  • bond market liquidity based on TRACE data and the effects of "all-to-all" trading platforms (p. 42);
  • LIBOR alternative and repo data (p. 56); and
  • Legal Entity Identifiers (p. 57).

The report also describes a reorganization of the OFR in 2018. The report states that the OFR has "refocused its mission to primarily support [the FSOC] and its member agencies." The report also noted that OFR reduced its workforce from 201 to 152 by eliminating positions and using "incentives for voluntary separation and early retirement."

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