Operating Policy
Statement Regarding Repurchase and Reverse Repurchase Agreements Small Value Exercise
November 4, 2019

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.