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.
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.
Statement Regarding Standing Repo Facility Counterparties
Statement Regarding Repurchase Agreements