Standing Repo Facility Counterparties
The New York Fed Trading Desk (Desk) conducts daily overnight repo transactions under a Standing Repo Facility to support the effective implementation of monetary policy and smooth market functioning. In addition to primary dealers, participants in these transactions include Standing Repo Facility counterparties.

Expectations & Requirements
Effective August 31, 2021

These expectations supplement those outlined in the Federal Reserve Bank of New York Policy on Counterparties for Market Operations.
Specific Expectations & Eligibility Requirements
Disclaimer
The Federal Reserve Bank of New York's relationships with private sector counterparties described in this policy are business, not regulatory, relationships entered into by the New York Fed for the purposes described herein. That a firm is a New York Fed counterparty is not an endorsement of the firm by the New York Fed and should not be used as a substitute for independent analysis and due diligence by other parties considering a business relationship with the firm.

Role of repo counterparties in New York Fed market operations

The New York Fed Trading Desk conducts overnight repo transactions under a Standing Repo Facility to support the effective implementation of monetary policy and smooth market functioning. In addition to primary dealers, participants in these transactions include Standing Repo Facility counterparties.

Standing Repo Facility counterparties are expected to bid in an operation at least twice every six months to ensure robust end-to-end testing of trading and settlement systems.

Eligibility criteria

In order to be eligible to become a Standing Repo Facility counterparty, a firm must be a state or federally chartered bank or savings association (or a state or federally licensed branch or agency of a foreign bank) with total U.S. Treasury, agency debt and agency mortgage-backed securities holdings equal to or greater than $5 billion, or total assets equal to or greater than $30 billion on the last quarter for which relevant FFIEC reports are available.

Firms must already have arrangements in place to receive cash in the triparty repo market in transactions collateralized by U.S. government debt, agency debt or agency mortgage-backed securities.

Firms should contact the New York Fed at RepoInfo@ny.frb.org before formally expressing interest in becoming a repo counterparty and providing the requested information.

Expression of Interest Form for Standing Repo Facility Counterparties


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