Operating Policy
Statement Regarding Agency Mortgage-Backed Securities Small Value Exercise
May 15, 2018

The New York Fed undertakes certain small value open market transactions from time to time for the purpose of testing operational readiness to implement existing and potential policy directives from the Federal Open Market Committee (FOMC). The FOMC authorizes the New York Fed’s Open Market Trading Desk (the Desk) to conduct these exercises to test its operational readiness in the Authorization for Domestic Open Market Operations and Authorization for Foreign Currency Operations.

In connection with these authorizations, the New York Fed’s Open Market Trading Desk (the Desk) intends to conduct two small value agency MBS sales operations, which will occur on Tuesday, May 22, 2018, and Thursday, May 24, 2018, beginning around 2:00 PM ET and ending at 2:30 PM ET. The total current face value of sales across the two operations will not exceed $180 million.

Concurrent with this announcement, the Desk has published an operating schedule, detailing the date, time, operation type, securities, and maximum sale amount for each operation.¬† Announcements and results will be posted on the New York Fed’s website at the start and following the completion of each operation, respectively.