Operating Policy
Statement Summarizing Practices for Identifying and Handling Confidential Information of Market Participants
January 8, 2019

The Federal Reserve Bank of New York (New York Fed) is committed to the use and handling of confidential information about participants in financial markets in a manner that promotes the integrity and efficiency of these markets, and is consistent with goals of the Treasury Market Practices Group (TMPG) Best Practices and the FX Global Code. New York Fed staff may come to possess confidential trading information consisting of non-public information about trading activity or positions of a market participant or its counterparties while conducting domestic or international market operations or gathering market intelligence to support the Federal Reserve’s policy and operational objectives (Confidential Trading Information). Consistent with TMPG recommendations, this statement summarizes the New York Fed’s practices for handling such Confidential Trading Information

The New York Fed has reviewed and revised its policies covering such information, in light of the TMPG Best Practice Recommendations on Information Handling. Several written policies and procedures—including those of the New York Fed and the Federal Reserve System—identify and address the handling of Confidential Trading Information.  Additionally, these policies appropriately limit the use and sharing of Confidential Trading Information and the New York Fed does not use or share Confidential Trading Information with the intent of adversely affecting the interests of other market participants.

These policies establish a need-to-know standard for the sharing of any Confidential Trading Information. They generally provide that Confidential Trading Information may be shared internally with staff engaged in similar domestic or international market operations, or with managers or control functions. Confidential Trading Information may also be shared internally or externally (subject to appropriate confidentiality agreements) with parties that provide trading support, compliance or auditing functions or official sector oversight of the New York Fed. In addition, Confidential Trading Information may be shared internally with staff that inform and implement policy and with other official institutions with which the New York Fed collaborates on policy implementation. Finally, Confidential Trading Information may be shared with internal or external supervisory and regulatory bodies.

The New York Fed publishes information about many of its trading operations and securities holdings on a regular basis. As required by law, the New York Fed also publishes more detailed information about trades, including trade information and counterparties with a two-year lag. Once published, such information is no longer considered confidential.

Finally, as indicated above, the New York Fed has internal controls and oversight processes to assure that staff understand and follow the policies and procedures with respect to Confidential Trading Information. 

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