Operating Policy
Statement Regarding Small Value Exercises
February 17, 2016

Consistent with the current Authorization for Domestic Open Market Operations and Authorization for Foreign Currency Operations approved by the Federal Open Market Committee (FOMC), the Federal Reserve Bank of New York (FRBNY) is permitted to undertake certain open market and foreign currency transactions for the purpose of testing operational readiness.

In connection with this authorization and consistent with recent practice, the FRBNY Open Market Trading Desk (the Desk) plans to conduct small value exercises from time to time as a matter of prudent advance planning. The conduct of such exercises does not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future from them. The exercises can include but are not limited to: repurchase agreements, outright purchases and sales of Treasury securities, outright sales of mortgage-backed securities (MBS), coupon swaps of unsettled MBS holdings, and U.S. dollar and non-U.S. dollar liquidity swap operations.