Operating Policy
Statement Regarding Reverse Repurchase Agreement Small Value Exercise
February 18, 2020

The New York Fed regularly undertakes small value open market transactions 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 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 reverse repo operation to test its contingency operation infrastructure. The operation will be conducted on Wednesday, February 19, 2020. It will begin around 9:45 AM ET and end at 10:00 AM ET and is open to all Primary Dealers and Reverse Repo Counterparties. All counterparties will be limited to one $1 million proposition per tranche during the operation. The operation details are as follows below:

Reverse Repurchase Agreement Operation:

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 Wed, Feb 19, 2020 Wed, Feb 19, 2020 Thu, Feb 20, 2020 Treasury ON RRP Offering Rate on Feb 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.