The Federal Reserve Bank of New York today published a comprehensive overview of its counterparty framework, including a new policy on counterparties for market operations, which governs counterparties for all domestic and foreign market operations.
The new counterparty policy is the result of a multi-year review of the framework for counterparty relationships across the full range of the Desk’s operations in domestic and foreign financial markets. It is intended to present a more comprehensive overview of the New York Fed’s counterparty framework, by emphasizing a number of elements that are common across counterparties for different market operations.
Specific expectations and eligibility requirements for primary dealers, reverse repo counterparties, foreign exchange (FX) counterparties and foreign reserves management (FRM) counterparties have also been published. In addition, to enhance transparency about FX and FRM operations and promote consistency across all New York Fed counterparties, the lists of FX and FRM counterparties have been published.
More information about the new counterparty policy and changes can be found in the frequently asked questions.