Operating Policy
Statement Regarding Repurchase Agreement Small Value Exercise
December 16, 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 a small value overnight repo operation using contingency operation infrastructure. The operation will be conducted on Wednesday, December 18, 2019. The operation will begin around 9:45 AM ET and close at 10:00 AM ET. It will be open to all Primary Dealers, which will be limited to one $1 million proposition per tranche during the operation. The operation details are as follows below:

Repurchase Agreement Operation:

OPERATION TENOR/TYPE ELIGIBLE COUNTERPARTIES OPERATION DATE SETTLEMENT DATE MATURITY DATE COLLATERAL TYPE MAXIMUM VALUE OF OPERATION
Overnight Repo Primary Dealers Wed, Dec 18, 2019 Wed, Dec 18, 2019 Thu, Dec 19, 2019 Multi-tranche: Treasury, Agency, Agency MBS $75 million

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