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.
