Tuesday, November 14, 2000

Treasury and New York Fed Announce Changes to Account Relationships
of Foreign and International Monetary Authorities

The U.S. Department of the Treasury today announced changes to the rules that apply to the participation of Foreign and International Monetary Authorities ("FIMA") in Treasury auctions. These changes will facilitate the continued participation of FIMA accounts in the auction process, improve the liquidity and efficiency of the Treasury market, and allow the Treasury to better control the amount of funds raised at auction.

The full text of Treasury’s announcement can be found at the following link: (http://www.treas.gov/). The FRBNY has contacted its FIMA customers advising them of these changes. Given recent auction participation by FIMA accounts, these changes are expected to effect only a very limited number of our customers.

Separately, this Bank is announcing today a new optional service that will facilitate the lending of securities from the accounts of its FIMA customers. This new service will enable FIMA customers to grant a designated depository institution access to a special custody account at the FRBNY. This new account arrangement will facilitate FIMA participation in the securities lending market through services offered by the private sector.