Office of Financial Research

FY 2017

President’s Budget

February 9, 2016
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Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

1.1– Resource Detail Table......................................................................................................... 3

1B – Vision, Priorities, and Context........................................................................................... 3

Section 2 – Budget Adjustments and Appropriations Language ............................................. 6

2.1 – Budget Adjustments Table................................................................................................. 6

2A – Budget Increases and Decreases Description..................................................................... 6

2.2 – Operating Levels Table...................................................................................................... 7

2B – Appropriations Language and Explanation of Changes..................................................... 7

2C – Legislative Proposals.......................................................................................................... 7

Section 3 – Budget and Performance Plan ................................................................................. 8

3A – Data Center ........................................................................................................................ 8

3.1.1 – Data Center Budget and Performance Plan .................................................................... 8

3B – Technology Center............................................................................................................. 8

3.1.2 – Technology Center Budget and Performance Plan......................................................... 9

3C – Research and Analysis Center............................................................................................ 9

3.1.3 – Research and Analysis Center Budget and Performance Plan...................................... 10

3D – Operations and Support Services..................................................................................... 10

3.1.4 – Operations and Support Services Budget and Performance Plan ................................. 10
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Section 1 – Purpose 

1A – Mission Statement

Promote financial stability by delivering high-quality financial data, standards, and analysis for 

the Financial Stability Oversight Council (FSOC or Council) and the public.

1.1 – Resource Detail Table

Dollars in thousands

Office of Financial Research FY 2015 FY 2016 FY 2017 FY 2016 to FY 2017

Budgetary Resources Actuals Estimated Estimated $ Change % Change

FTE Amount FTE Amount FTE Amount FTE Amount FTE Amount

Revenue/Offsetting Collections

 Assessments1 79,566 99,355 103,336 3,981 4%

 Unobligated Balances from Prior 

Years 70,794 68,644 70,339 1,695 2%

 Recoveries 2,205 2,550 2,550 0 0%

 Interest 19 34 35 1 3%

 Offsetting Collections 7 9 11 2 22%

 Restoration of Sequestration 

Rescission 6,579 5,811 6,758 948 16%

Total Revenue/Offsetting Collections 159,171 176,403 183,030 6,627 4%

Other Resources:

 Data Center 51 17,240 46 24,933 53 26,039 7 1,106 15% 4%

 Technology Center 51 30,970 73 28,964 75 35,391 2 6,427 3% 22%

 Research and Analysis Center 43 10,396 54 15,446 59 17,156 5 1,710 9% 11%

 Operations and Support Services 49 26,110 57 29,962 68 26,184 11 (3,778) 19% -13%

Total Expenses 194 84,716 230 99,305 255 104,770 25 5,465 11% 6%

Sequestration Rescission (5,811) (6,758) 0 6,758 N/A

Net Results 68,644 70,339 78,260 7,920 11% 1 The OFR is financed through assessments on certain bank holding companies and nonbank financial companies. See Treasury’s final rule and interim final rule governing the Assessments 

process: https://financialresearch.gov/strategy-budget/files/final_rule_interim_final_rule.pdf).

1B – Vision, Priorities, and Context 

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank 

Act) established the Office of Financial Research (OFR or Office) within the Department of the 

Treasury. In carrying out its mission, the OFR seeks to achieve its vision of a transparent, 

efficient, and stable financial system. The OFR’s work contributes to making informed and 

comprehensive policies and taking actions that will strengthen the financial system. The Office 

monitors the financial environment for the emergence of new vulnerabilities and migration of 

financial activity that could threaten financial stability. Although the OFR was created within 

Treasury, the work of the OFR is independent from the Council and the Treasury. This 

independence provides the Office with an objective position to evaluate macroprudential 

policies, advocate for needed data initiatives, help the regulatory community enhance its 

peripheral vision, and produce work that was previously beyond the reach of individual 

regulatory agencies.
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In the OFR Strategic Plan for Fiscal Years 2015–2019, the OFR established three strategic goals 

that reflect its primary functions in data and analysis, data standardization, and research.

1 The 

plan will guide the Office’s work through Fiscal Year (FY) 2019 and will support the decisions 

made about resources needed to implement those strategies. The three goals are:

1. The OFR is an essential source of data and analysis for monitoring threats to financial 

stability.

Key objectives of this goal include:

• The OFR’s monitoring tools and analyses are widely used and critical to assessing 

financial stability.

• Data used to monitor financial stability are comprehensive, reliable, and accessible to 

policy makers and the public through the OFR.

• Data providers and the public trust, acknowledge, and recognize that OFR data are 

protected and secure.

2. Standards that improve the quality and utility of financial data are identified and 

adopted.

Key objectives of this goal include:

• Recognition of the need for standards by policy makers and industry.

• The OFR is the source of expert knowledge needed to develop and implement types and 

formats of data reported and collected.

• Financial data standards that create efficiencies and facilitate analysis are widely used.

3. Leading edge research improves financial stability monitoring and the scope and 

quality of financial data, and informs policy and risk management.

Key objectives of this goal include:

• The OFR is the recognized center for objective, innovative research on financial 

stability.

• OFR research is widely cited and used to improve policy making, risk management, 

financial stability, and the scope and quality of financial data.

The strategic goals also drive the OFR’s research-and-data agenda for FY 2016 and beyond.2

The OFR activities and priorities outlined below also support the following Goals and Objectives 

in the Treasury Department’s FY 2014–2017 Strategic Plan:

• Goal 1: Promote domestic economic growth and stability while continuing reforms of the 

financial system

o Objective 1.3: Complete implementation of financial regulatory reform initiatives, 

continue monitoring capital markets, and address threats to stability

• Goal 5: Create a 21st-century approach to government by improving efficiency, effectiveness, 

and customer interaction

 1 See the OFR Strategic Plan for Fiscal Years 2015–2019: 

http://financialresearch.gov/strategy-budget/files/Office-of-Financial-Research-Strategic-Plan-2015-2019.pdf. 2 For more information on the 2016 OFR research-and-data agenda, see the OFR 2015 Annual Report to Congress: 

https://financialresearch.gov/annual-reports/files/office-of-financial-research-annual-report-2015.pdf.
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o Objective 5.2: Support effective, data-driven decision-making and encourage 

transparency through intelligent gathering, analysis, sharing, use and 

dissemination of information.”3

OFR research priorities include:

• Broadening the market monitoring framework, including continued publication of a Financial 

Markets Monitor; 

• Developing a suite of additional monitors and dashboards to assess and monitor risks in 

money market funds, hedge funds, and credit default swap markets; 

• Publishing descriptions of the methodology behind the Financial Stability Monitor and 

Financial Stress Index, as well as other publications on significant threats to financial 

stability;

• Understanding and analyzing the conflicts and complementarities among macroprudential 

policy tools;

• Developing and executing a research program to examine factors behind market liquidity;

• Developing and executing a research and data program to examine risks in central 

counterparty clearinghouses;

• Expanding the evaluation of stress tests and other macroprudential policy tools; and

• Publishing research on financial stability, risk management, and related topics.

OFR data priorities include:

• Advocating for continued global implementation of the Legal Entity Identifier (LEI) in 

regulation and market practice; 

• Promoting the use of data standards in derivatives markets, in collaboration with the 

Commodity Futures Trading Commission;

• Leading or contributing to the development and implementation of new standards for 

financial data;

• Filling data gaps, particularly in secured funding markets and asset management;

• Collecting data on the repo market, in collaboration with the Federal Reserve; 

• Promoting and developing protocols for secure data sharing among regulatory agencies; and

• Creating a prototype financial instrument reference database to promote market transparency.

 3 See the Department of the Treasury’s FY 2014–2017 Strategic Plan (Goal 1, Objective 1.3 and Goal 5, Objective 

5.2): http://www.treasury.gov/about/budget-performance/strategic-plan/Documents/2014-

2017_US_TreasuryStrategicPlan.pdf.
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Section 2 – Budget Adjustments and Appropriations Language 

2.1 – Budget Adjustments Table

Dollars in thousands

Office of Financial Research FTE Amount

FY 2016 Estimated 230 $99,305

Changes to Base:

Total FY 2016 Base 230 $99,305

Program Changes

Program Increases: 25 $5,465

Personnel 25 $3,523

Non-Personnel $1,942

Total FY 2017 Estimated 255 $104,770

2A – Budget Increases and Decreases Description

Program Increases...........................................................................+ $5,465,000

Personnel +$3,523,000 / +25 FTE

The OFR will continue to grow to an anticipated head-count of 275 by the end of FY 2017, 

translating to 255 FTE that fiscal year. 

Non-Personnel +$1,942,000 / +0 FTE

Routine operational, recurring network, and periodic one-time costs for information technology 

(IT) and systems are increasing to support the OFR’s growth in research, analysis, and work with 

sensitive or confidential financial data. Additional investments in IT infrastructure, including 

cybersecurity, will help the Office safeguard its expanded data holdings and provide additional 

analytic space to support research and analysis.
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2.2 – Operating Levels Table

Dollars in thousands

Office of Financial Research FY 2015 FY 2016 FY 2017 

Object Classification Actual Estimated Estimated

11.0 Personnel compensation 29,036 32,082 34,667

12.0 Personnel benefits 9,507 10,565 11,503

Total Personnel Compensation and Benefits 38,543 42,647 46,170

21.0 Travel and transportation of persons 453 829 925

23.1 Rental payments to GSA 3,809 4,375 4,412

23.3 Communication, utilities, and misc charges 2 5 5

24.0 Printing and reproduction 31 35 37

25.1 Advisory and assistance services 8,416 12,695 11,835

25.2 Other services from non-Federal sources 600 1,525 1,750

25.3 Other services from Federal sources 16,017 14,975 15,000

26.0 Supplies and materials 8,060 5,550 5,700

31.0 Equipment 8,785 16,669 18,936

Total Non-Personnel 46,173 56,658 58,600

Total Budgetary Resources $84,716 $99,305 $104,770 

Budget Activities:

Data Center 17,240 24,933 26,039

Technology Center 30,970 28,964 35,391

Research and Analysis Center 10,396 15,446 17,156

Operations and Support Services 26,110 29,962 26,184

Total Budgetary Resources $84,716 $99,305 $104,770 

FTE 194 230 255 A Personnel compensation and benefits include direct OFR staff members only. Object Classification 25, “Other contractual services,” and 

expenditures of “Operations and Support Services” include reimbursable support received from Treasury’s Departmental Offices; personnel 

benefits services from the Office of the Comptroller of the Currency; and services from Treasury’s Bureau of the Fiscal Service Administrative 

Resource Center, including human resource services, procurement services, travel, and financial management services. 

2B – Appropriations Language and Explanation of Changes

The OFR receives no appropriations from Congress. 

2C – Legislative Proposals

The OFR has no legislative proposals.
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Section 3 – Budget and Performance Plan

3A – Data Center

($26,039,000 from Assessments):

The Dodd-Frank Act requires the Data Center, on behalf of the Council, to collect, validate, and 

maintain all data necessary to carry out the duties of the OFR. Under this mandate, the Data 

Center provides data services to the Research and Analysis Center, Council member agencies, 

and others to increase efficiency in data acquisition and management; reduce redundant reporting 

requirements across the regulatory system (including through more effective data-sharing 

arrangements); and to ensure the security of sensitive data. 

Data Standards

One of the OFR’s strategic goals is to identify and adopt standards that improve the quality and 

utility of financial data. Standards for financial data will benefit regulators and financial market 

participants by making data aggregation easier, improving analysis, and reducing costs 

associated with data collection. The OFR monitors progress through the following key 

performance indicators: 

• Number of LEIs issued cumulatively in the United States and internationally – This indicator 

tracks the progress over time in the industry use of the LEI. 

• Number of times that financial data standards are incorporated into rules and regulations –

This data point serves as an indicator of regulators’ awareness of the importance of data 

standards and the extent to which data standards are being adopted in rules and regulations.

3.1.1 – Data Center Budget and Performance Plan

Dollars in thousands

 Resource Level FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Estimated Estimated

 Expenses/Obligations $5,260 $19,303 $37,619 $46,940 $27,584 $24,933 $26,039

 Budget Activity Total $5,260 $19,303 $37,619 $46,940 $27,584 $24,933 $26,039

 Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Target Target

Number of LEIs Issued Cumulatively in the 

United States and Internationally N/A N/A N/A N/A 395,861 I I

Number of Times that Financial Data 

Standards are Incorporated in Rules and 

Regulations

N/A N/A N/A N/A 2 I I

Key: DISC - Discontinued

I – Indicator: a metric that has no established target and is used for contextual purposes only; a direction for improvement

may be associated with an indicator, but not a specific target; 

3B – Technology Center

($35,391,000 from Assessments):

The Technology Center provides mission-critical analytic services to support the OFR’s work 

with complex, sensitive financial data and the Office’s expanding research and analysis 

activity. In addition, the Technology Center is responsible for safeguarding data and systems, 

and managing all IT capabilities within the OFR. 

These responsibilities include computing and analytic platforms, software, 

telecommunications, client applications, and office automation solutions. 
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3.1.2 – Technology Center Budget and Performance Plan

Dollars in thousands

 Resource Level FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Estimated Estimated

 Expenses/Obligations $0 $0 $0 $0 $30,970 $28,964 $35,391

 Budget Activity Total $0 $0 $0 $0 $30,407 $28,964 $35,391

3C – Research and Analysis Center

($17,156,000 from Assessments):

Through its Working Paper Series, Brief Series, Staff Discussion Papers Series, and OFR annual 

reports, the OFR publishes results of its analysis to be transparent in its operations and promote 

public understanding of threats to financial stability. In addition, the OFR’s Research Seminar 

Series allows the OFR’s research staff opportunities to collaborate with external experts and seek 

feedback from them. The OFR is establishing forums and networks to bring together experts 

from within and outside the regulatory system. Additionally, the OFR partners with the National 

Science Foundation to fund grants that support innovative research on approaches to computing 

and information processing to identify and analyze risks to the financial system.

Leading Edge Research and Monitoring Threats to Financial Stability

The Research and Analysis Center contributes to the achievement of two of the OFR’s three 

strategic goals: (1) Leading edge research improves financial stability monitoring and the scope 

and quality of financial data, and informs policy and risk management; and (2) The OFR is an 

essential source of data and analysis for monitoring threats to financial stability. The OFR has 

one measure linked to the achievement of each of these two goals:

• Number of research and analysis publications (working papers, briefs, staff discussion 

papers, and reports) made public – This measure tracks the OFR’s progress in increasing the 

size of its research portfolio available to policy makers, regulators, industry, academics, and 

the public. The measure includes a wide range of published research products, from the 

OFR’s comprehensive annual reports to the more frequently issued working papers. This 

measure was formerly called, “Number of research and analysis products made public.”

• Number of monitor editions, policy analyses, and dashboards produced for monitoring 

threats to financial stability – This measure tracks the OFR’s output of monitoring tools and 

other analyses of threats to financial stability. It includes tools and information made 

available to the general public, as well as those produced for the Council or Council member 

agencies. 
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3.1.3 – Research and Analysis Center Budget and Performance Plan

Dollars in thousands

 Resource level FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Estimated Estimated

 Expenses/Obligations $1,069 $3,398 $4,733 $7,700 $10,396 $15,446 $17,156

 Budget Activity Total $1,069 $3,398 $4,733 $7,700 $10,396 $15.446 $17,156

 Measure FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Target Target

Number of Research and 

Analysis Publications 

(working papers, briefs, staff 

discussion papers, and 

reports) Made Public 

N/A N/A 10 11 34 25 35

Number of Monitor Editions, 

Policy Analyses, and 

Dashboards Produced for 

Monitoring Threats to 

Financial Stability

N/A N/A N/A N/A 21 12 15

Key: DISC – Discontinued

“Research and Analysis Center” includes only staffing, outside work arrangements, and contracting related to annual report 

production. Costs associated with data, information systems, and analytical tools are under the Data Center. 

3D – Operations and Support Services

($26,184,000 from Assessments):

The category “Operations and Support Services” contains the activities of the Director’s Office, 

Operations, External Affairs, and Chief Counsel. The category includes support provided 

through a shared services model and reimbursable arrangements with Treasury’s Departmental 

Offices; personnel benefits services from the Office of the Comptroller of the Currency; and 

services from Treasury’s Bureau of the Fiscal Service Administrative Resource Center, including 

services related to human resources, procurement, travel, and financial management. 

3.1.4 – Operations and Support Services Budget and Performance Plan

Dollars in thousands

 Resource Level FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Estimated Estimated

 Expenses/Obligations $4,700 $16,873 $22,953 $28,626 $26,110 $29,962 $26,184

 Budget Activity Total $4,700 $16,873 $22,953 $28,626 $26,110 $29,962 $26,184

The OFR assesses its performance measures annually and revises them, if appropriate, to ensure 

their continued usefulness for management decision-making and improved results.