The New York Fed undertakes certain small value open market transactions from time to time for the purpose of testing operational readiness to implement existing and potential policy directives from the Federal Open Market Committee (FOMC). The FOMC authorizes the New York Fed's Open Market Trading Desk (the Desk) to conduct these exercises to test its operational readiness in the Authorization for Domestic Open Market Operations and Authorization for Foreign Currency Operations.
In connection with these authorizations, the New York Fed’s Open Market Trading Desk intends to conduct a series of four small value repo and reverse repo operations during the month of May. Each operation will begin around 9:40 AM ET, and end at 10:00 AM ET and be open to Primary Dealers and/or Reverse Repo Counterparties. All counterparties will be limited to one $1 million proposition per tranche during each operation. The planned schedule, including operation details, follows below:
Repurchase Agreement Operations:
| OPERATION TENOR/TYPE | ELIGIBLE COUNTERPARTIES | OPERATION DATE | SETTLEMENT DATE | MATURITY DATE | COLLATERAL TYPE | MAXIMUM VALUE OF OPERATION |
| Term Repo | Primary Dealers | Wed, May 9, 2018 | Wed, May 9, 2018 | Fri, May 11, 2018 | Multi-tranche: Treasury, Agency, Agency MBS | $75 million |
| Overnight Repo | Primary Dealers | Wed, May 16, 2018 | Wed, May 16, 2018 | Thu, May 17, 2018 | Multi-tranche: Treasury, Agency, Agency MBS | $75 million |
Reverse Repurchase Agreement Operations:
| OPERATION TENOR/TYPE | ELIGIBLE COUNTERPARTIES | OPERATION DATE | SETTLEMENT DATE | MATURITY DATE | COLLATERAL TYPE | MAXIMUM OFFERING RATE | MAXIMUM VALUE OF OPERATION |
| Term Reverse Repo | Primary Dealers and Reverse Repo Counterparties | Mon, May 14, 2018 | Mon, May 14, 2018 | Wed, May 16, 2018 | Single-tranche: Treasury-only | ON RRP Offering Rate on May 14 | $175 million |
| Overnight Reverse Repo | Primary Dealers and Reverse Repo Counterparties | Wed, May 23, 2018 | Wed, May 23, 2018 | Thu, May 24, 2018 | Single-tranche: Agency MBS-only | ON RRP Offering Rate on May 23 | $175 million |
Announcements and results will be posted on the New York Fed’s website at the start and following the completion of each operation.
