Operating Policy
Statement Regarding Securities Lending Small Value Exercise
August 7, 2017

As referenced in the February 22 operating policy statement, 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.  These small value exercises are 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.

In connection with this authorization, the FRBNY's Open Market Trading Desk intends to conduct a small value contingency securities lending operation for the purpose of testing its contingency operation infrastructure.  The small value contingency operation will be conducted in addition to the regularly scheduled securities lending operation, and will occur on Thursday, August 10, 2017, beginning at 12:30 PM ET and ending at 12:45 PM ET.  The exercise will have a maximum size of $115 million.

Results will be posted on the FRBNY's website following the completion of the operation. The results will include the securities and total amounts accepted and submitted.