Operating Policy
Statement Regarding Treasury Securities Small Value Exercise
October 4, 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 Desk intends to conduct a small value Treasury rollover at auction of $26 million Treasury bill securities held in the Federal Reserve's System Open Market Account. The Desk plans to place a non-competitive bid at the 4-week Treasury bill auction on Tuesday, October 9, 2018, to exchange bills maturing on Thursday, October 11, 2018 for the 4-week Treasury bill issued on that same day.

As previously announced, this test is one of three small value exercises to test operational readiness for transacting in the Treasury bill market.