Operating Policy
Statement Regarding Repurchase Agreement Small Value Exercise
June 15, 2020

The New York Fed 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 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 to test its contingency operation infrastructure. The operation will be conducted from 9:45 AM ET to 10:00 AM ET on Wednesday, June 17th and is open to all Primary Dealers. All Primary Dealers 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 OFFERING RATE MAXIMUM VALUE OF OPERATION
Overnight Repo Primary Dealers Wed, Jun 17, 2020 Wed, Jun 17, 2020 Thu, Jun 18, 2020 Multi-tranche: Treasury, Agency, Agency MBS Overnight Minimum Bid Rate on 06/17 $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.