Operating Policy
Statement Regarding Agency Mortgage-Backed Securities Small Value Exercise
October 1, 2020

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, and to validate recent systems changes prior to regular October settlement dates, the Desk intends to conduct one small value agency mortgage-backed securities (MBS) To-Be-Announced (TBA) purchase operation on Wednesday, October 7, 2020, beginning around 9:00 AM ET and ending at 9:30 AM ET. The total current face value of the purchase operation will not exceed $13 million and the settlement date will be Thursday, October 8, 2020.

Concurrent with this announcement, the Desk has published an operating schedule detailing the date, time, operation type, security, and maximum purchase amount. The announcement and results will be posted on the New York Fed’s website at the start and following the completion of the operation, respectively.