Operating Policy
Statement Regarding Repurchase Agreement Small Value Exercise
October 5, 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 with Primary Dealers to test its contingency operation infrastructure. The bid submission process will be conducted from 9:45 AM ET to 10:00 AM ET on Wednesday, October 7. Operation results will be posted on the New York Fed’s website following the completion of bid evaluation. 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, Oct 7, 2020 Wed, Oct 7, 2020 Thu, Oct 8, 2020 Multi-tranche: Treasury, Agency, Agency MBS At or Above
Oct 7 Minimum Bid Rate
$75 million