Operating Policy
Statement Regarding Term Reverse Repurchase Agreements
December 16, 2015

At its December 15–16, 2015, meeting, the Federal Open Market Committee directed the Open Market Trading Desk (Desk) to undertake term reverse repurchase (RRP) operations to the extent approved in the resolution on term RRP operations approved by the Committee at its March 17–18, 2015, meeting.  As announced on November 18, 2015, the Desk plans to offer $300 billion in term RRPs that cross the year-end date. An updated schedule of the term operations spanning the year-end, including amounts offered and the maximum offering rate, follows below.

Tentative Schedule of Term RRP Operations

Fri, Dec 18, 2015 Fri, Dec 18, 2015 Mon, Jan 4, 2016 $50 billion ON RRP offering rate
Wed, Dec 23, 2015 Wed, Dec 23, 2015 Mon, Jan 4, 2016 $100 billion ON RRP offering rate
Wed, Dec 30, 2015 Wed, Dec 30, 2015 Tue, Jan 5, 2016 $150 billion** ON RRP offering rate
*The overnight RRP operation on each of these days will be conducted at the usual time of 12:45 p.m. to 1:15 p.m. (ET).
**Any undersubscribed capacity from either of the December 18 and December 23 term RRP operations will be added to the offering size of the December 30 term RRP operation.

Each of these operations will be conducted from 9:30 a.m. to 10:00 a.m. (Eastern Time), and each bidder will be limited to two bids per operation. Each bid will be subject to a maximum size equal to the total amount offered in a given operation. If the sum of the bids received is greater than the overall size limit, awards will be allocated using a single-price auction based on the stop-out rate at which the amount offered is reached, with all bids below this rate awarded in full at the stop-out rate and all bids at this rate awarded on a pro rata basis at the stop-out rate. The stop-out rate will be determined by evaluating all bids in ascending order by submitted rate up to the point at which the total quantity of offers equals the total amount offered. Undersubscribed auctions will be awarded at the highest rate submitted by any bidder.

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