Market Intelligence

The New York Fed's Open Market Trading Desk (the Desk) analyzes global financial markets to support the Federal Reserve's monetary and financial stability policy objectives, in addition to its operational responsibilities.

Staff from the Desk communicate directly with a wide range of financial market participants and other members of the public to gather information on financial market developments, a process known as market intelligence gathering. Market intelligence–together with the financial market expertise gained from executing open market operations–is central to the Desk's efforts to understand and report to policymakers on developments in financial markets, particularly those in which the New York Fed operates. Such developments include those related to expectations for monetary policy, financial market conditions in the U.S. and abroad, market structure and liquidity, and financial stability risks.

Collecting Market Intelligence

Market intelligence is gathered through regular conversations between the Desk and members of the public, including primary dealers, other New York Fed counterparties, and a wide range of other market participants, such as those that participate in the New York Fed's advisory and sponsored groups. The Desk also gathers market intelligence from other official sector institutions and academia, speaking with a broad spectrum of contacts in order to solicit diverse perspectives. Interactions with members of the public occur through various channels, including phone calls, in-person meetings, public engagements, and other communications such as the Survey of Primary Dealers and Survey of Market Participants.

Collecting market intelligence is primarily the responsibility of Desk staff members, who are required to comply with various policies, such as the New York Fed's Code of Conduct and the Federal Open Market Committee (FOMC) Policy on External Communications of Federal Reserve System Staff, and are subject to the New York Fed's Conflicts of Interest Rules. These policies and rules, among other requirements, prohibit staff from discussing non-public, FOMC, or confidential supervisory information with the public.

Staff undergo training in how to gather market intelligence, which includes guidance on the policies and rules described above. Staff are also trained on appropriate communications with market participants, and on escalation procedures by which information regarding suspicious or improper behavior may be provided to the relevant regulatory or law enforcement authorities, or otherwise dealt with appropriately. To the extent that staff express opinions in furtherance of their efforts to gather market intelligence, those opinions are solely their own and do not necessarily reflect the views of the New York Fed or the Federal Reserve System.

Using Market Intelligence

Market intelligence gathered by the New York Fed is incorporated into a wide range of briefings and analyses that may be shared with policymakers, other senior stakeholders, and staff across the Federal Reserve and the U.S. Treasury. Some market intelligence may also be shared with other official sector bodies, as appropriate. In certain cases, such information may also be disclosed to the public in a form that is aggregated and anonymized (such as the surveys mentioned above), or otherwise shared in accordance with the New York Fed's Freedom of Information Policy. In addition, any such information may be subject to disclosure in response to requests from Congress or from the New York Fed's oversight bodies, or as otherwise may be required by law. When the New York Fed obtains market intelligence subject to an agreement, license, or regulatory requirement, it handles that information in accordance with all applicable information-sharing restrictions.

Related Advisory & Sponsored Groups