Foreign Exchange Counterparties
Foreign exchange counterparties are trading counterparties of the New York Fed in its foreign exchange operations on behalf of the Federal Reserve and the U.S. Treasury. They are also expected to make reasonable markets for New York Fed Trading Desk (Desk) transactions that relate to currency needs of the New York Fed’s official accountholders and agencies of the U.S. government, as needed.

List of Foreign Exchange Counterparties
Current List, Additions, Removals & Name Changes
Foreign Exchange Counterparties

Australia and New Zealand Banking Group Limited

Bank of America, N.A.

Barclays Bank Plc

Citibank, N.A.

Commonwealth Bank of Australia, New York

Credit Agricole Corporate and Investment Bank London

Credit Suisse AG, London Branch

Deutsche Bank AG London Branch

Goldman, Sachs & Co.

HSBC Bank USA, National Association

JP Morgan Chase Bank, N.A.

Morgan Stanley & Co. LLC

Royal Bank of Canada

Standard Chartered Bank

State Street Bank and Trust Company

Sumitomo Mitsui Banking Corporation

The Bank of New York Mellon

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

The Northern Trust Company

The Royal Bank of Scotland Plc

UBS AG

Additions and Removals
None to date.
Name Changes
None to date.

Expectations & Requirements
These expectations supplement those outlined in the Federal Reserve Bank of New York Policy on Counterparties for Market Operations.
Specific Expectations & Eligibility Requirements
Disclaimer
The Federal Reserve Bank of New York's relationships with private sector counterparties described in this policy are business, not regulatory, relationships entered into by the New York Fed for the purposes described herein. That a firm is a New York Fed counterparty is not an endorsement of the firm by the New York Fed and should not be used as a substitute for independent analysis and due diligence by other parties considering a business relationship with the firm.

Role of foreign exchange counterparties in New York Fed market operations

Foreign exchange (FX) counterparties are trading counterparties of the New York Fed in its FX operations on behalf of the Federal Reserve and the U.S. Treasury. They are also expected to make reasonable markets for Desk transactions that relate to currency needs of the New York Fed’s official accountholders and agencies of the U.S. government, as needed. The Desk also relies on its FX counterparties for ongoing insight into global financial market developments in its daily market monitoring activities, to support the formulation and implementation of policy by the U.S. monetary authorities. FX counterparties are expected to provide competitive two-way pricing as needed to support the Desk’s periodic foreign exchange operations.

Eligibility criteria

In order to be eligible as a foreign exchange counterparty, a firm must:

  • Demonstrate a substantial presence as a market maker that provides two-way liquidity in foreign exchange, in more than one market center/time zone.1
  • Have, or have arrangements for another party to provide services of, a "back office" of sufficient size and experience to be able to (1) confirm and arrange settlement of transactions with the New York Fed and (2) manage trading at the volume levels expected by the New York Fed.

Once onboarded, FX counterparties are expected to continue to meet these expectations and eligibility requirements on an ongoing basis.

Firms should contact the New York Fed at fxcounterparty.info@ny.frb.org before formally expressing interest in becoming a foreign exchange counterparty and providing the requested information.

Expression of Interest Form for FX Counterparties


1 A market maker is a firm that continuously provides prices to both buyers and sellers in the market, and stands ready to transact at those prices in various market environments.