Operating Policy

Statement Regarding Repurchase and Reverse Repurchase Agreements Small Value Exercise

November 06, 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 operations 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 series of four small value repo and reverse repo operations during the month of November. Each operation will begin around 9:40 AM ET, and end at 10:00 AM ET and be open to Primary Dealers and/or Reverse Repo Counterparties. All counterparties will be limited to one $1 million proposition per tranche during each operation. The planned schedule, including operation details, follows below:

Repurchase Agreement Operations:

OPERATION TENOR/TYPE ELIGIBLE COUNTERPARTIES OPERATION DATE SETTLEMENT DATE MATURITY DATE COLLATERAL TYPE MAXIMUM VALUE OF OPERATION
Term Repo Primary Dealers Wed, Nov 8, 2017 Wed, Nov 8, 2017 Fri, Nov 10, 2017 Multi-tranche: Treasury, Agency, Agency MBS $75 million
Overnight Repo Primary Dealers Mon, Nov 20, 2017 Mon, Nov 20, 2017 Tue, Nov 21, 2017 Multi-tranche: Treasury, Agency, Agency MBS $75 million

Reverse Repurchase Agreement Operations:

OPERATION TENOR/TYPE ELIGIBLE COUNTERPARTIES OPERATION DATE SETTLEMENT DATE MATURITY DATE COLLATERAL TYPE MAXIMUM OFFERING RATE MAXIMUM VALUE OF OPERATION
Term Reverse Repo Primary Dealers and Reverse Repo Counterparties Mon, Nov 13, 2017 Mon, Nov 13, 2017 Wed, Nov 15, 2017 Single-tranche: Treasury-only ON RRP Offering Rate on Nov 13 $175 million
Overnight Reverse Repo Primary Dealers Thu, Nov 16, 2017 Thu, Nov 16, 2017 Fri, Nov 17, 2017 Single-tranche: Agency MBS-only ON RRP Offering Rate on Nov 16 $25 million

Announcements and results will be posted on the FRBNY's website at the start and following the completion of each operation.