Operating Policy
Statement Regarding Repurchase and Reverse Repurchase Agreements Small Value Exercise
November 13, 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 intends to conduct a series of four small value repo and reverse repo operations during the months of November and December. 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
Overnight Repo Primary Dealers Thu, Nov 15, 2018 Thu, Nov 15, 2018 Fri, Nov 16, 2018 Multi-tranche: Treasury, Agency, Agency MBS $75 million
Term Repo Primary Dealers Tue, Dec 4, 2018 Tue, Dec 4, 2018 Thu, Dec 6, 2018 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 OFFERING RATE MAXIMUM VALUE OF OPERATION
Overnight Reverse Repo Primary Dealers and Reverse Repo Counterparties Mon, Nov 19, 2018 Mon, Nov 19, 2018 Tue, Nov 20, 2018 Single-tranche: Agency MBS-only ON RRP Offering Rate on Nov 19 $175 million
Term Reverse Repo Primary Dealers and Reverse Repo Counterparties Wed, Nov 28, 2018 Wed, Nov 28, 2018 Fri, Nov 30, 2018 Single-tranche: Treasury-only ON RRP Offering Rate on Nov 28 $175 million

Announcements and results will be posted on the New York Fed’s website at the start and following the completion of each operation.