Wells Fargo Advantage Money Market Funds writes in its latest "​Overview, strategy and outlook", "There continues to be a strong focus by regulators and others on the market for repurchase agreements (​repos). What had traditionally been a fairly quiet corner of finance devoted to financing dealers' inventories and serving as a safe short term investment vehicle has instead come to be seen as a potential source of systemic instability meriting considerable attention and reform efforts. In its annual report released in July, the Financial Stability Oversight Council (​FSOC) said, "the elimination of most intraday credit exposure and the reform of collateral practices in the tri-​party repo market continues to be an area of intense focus for the Council." Earlier this summer, a Federal Reserve (​Fed) official testified before the Senate that "​vulnerabilities remain" in the repo market, while a study by Fitch Ratings examined some of the types of collateral used by some money market funds to secure their repo investments.... Repos are fairly broadly used by MMFs, and the generally short-​term maturity profile provides an ideal fit for the daily and weekly liquidity requirements of Rule 2a-​7."

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