market as both sellers and buyers of collateral depending on their circumstances. Depository institu- tions are usually net sellers of collateral (i.e., net borrowers of funds); money market mutual funds, bank trust departments, municipalities, and corporations are usually net buyers of collateral (i.e., net lenders of funds). Another repo market participant is the repo broker. To understand the repo brokers role, suppose that a dealer has shorted $50 million of the cur- rent 10-year Treasury note. It will then query its regular customers to deter- mine if it can borrow, via a reverse repo, the 10-year Treasury note it shorted. Suppose that it cannot find a customer willing to do a repo transac- tion (repo from the customers perspective, reverse repo from the dealers perspective). At that point, the dealer will utilize the services of a repo bro- ker who will find the desired collateral and arrange the transaction for a fee.       REPO MARKET STRUCTURES   Structured repo instruments have developed in recent years mainly in the U.S. market where repo is widely accepted as a money market instru- ment. Following the introduction of new repo types it is also possible now to transact them in other liquid markets.     11The collateral underlying these agreements is either U.S. Treasuries, agency deben- tures, or agency MBS securities.     EXHIBIT 8.5 Average Daily Amount Outstanding (in billions of dollars) for Reverse Repurchase/Repurchase Agreements   Year Reverse Repurchase Repurchase Total   1981 46.7 65.4 112.1 1982 75.1 95.2 170.3 1983 81.7 102.4 184.1 1984 112.4 132.6 245.0 1985 147.9 172.9 320.8 1986 207.7 244.5 452.2 1987 275.0 292.0 567.0 1988 313.6 309.7 623.3 1989 383.2 398.2 781.4 1990 377.1 413.5 790.5 1991 417.0 496.6 913.6 1992 511.1 628.2 1139.3 1993 594.1 765.6 1359.7