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 one small value forward-settling repo and one small value reverse repo operation during the month of November. Each operation will begin around 9:45 AM ET and end at 10:00 AM ET. The operations will 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 Operation:
| OPERATION TENOR/TYPE | ELIGIBLE COUNTERPARTIES | OPERATION DATE | SETTLEMENT DATE | MATURITY DATE | COLLATERAL TYPE | MAXIMUM VALUE OF OPERATION |
| Term Repo | Primary Dealers | Tues, Nov 5, 2019 | Wed, Nov 6, 2019 | Fri, Nov 8, 2019 | Multi-tranche: Treasury, Agency, Agency MBS | $75 million |
Reverse Repurchase Agreement Operation:
| OPERATION TENOR/TYPE | ELIGIBLE COUNTERPARTIES | OPERATION DATE | SETTLEMENT DATE | MATURITY DATE | COLLATERAL TYPE | OFFERING RATE | MAXIMUM VALUE OF OPERATION |
| Term Reverse Repo | Primary Dealers and Reverse Repo Counterparties | Tues, Nov 19, 2019 | Tues, Nov 19, 2019 | Thu, Nov 21, 2019 | Single-tranche: Agency MBS -only | ON RRP Offering Rate on Nov 19 | $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.
