Revised SOMA Securites Lending Program Terms and Conditions - Open Markets Operation - News & Events

Museum & Visits Regional Economy Data & Statistics Careers Blog Press Center

About the New York Fed
- About the New York Fed
- What We Do
- Who We Are
  - Bank Leadership
  - Diversity and Inclusion
- Communities We Serve
- Governance
- More About Us
- At the New York Fed, our mission is to make the U.S. economy stronger and the financial system more stable for all segments of society. We do this by executing monetary policy, providing financial services, supervising banks and conducting research and providing expertise on issues that impact the nation and communities we serve.
  
  Introducing the New York Innovation Center: Delivering a central bank innovation execution
  
  Do you have a Freedom of Information request? Learn how to submit it.
  
  Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video.
Markets & Policy Implementation

Economic Research
- Economic Research
- Data & Indicators
- Publications
- PEOPLE
- Liberty Street Economics Blog
- Our economists engage in scholarly research and policy-oriented analysis on a wide range of important issues.
  
  The mission of the Applied Macroeconomics and Econometrics Center (AMEC) is to provide intellectual leadership in the central banking community in the fields of macro and applied econometrics.
  
  The Center for Microeconomic Data offers wide-ranging data and analysis on the finances and economic expectations of U.S. households.
  
  The monthly Empire State Manufacturing Survey tracks the sentiment of New York State manufacturing executives regarding business conditions.
  
  This ongoing Liberty Street Economics series analyzes disparities in economic and policy outcomes by race, gender, age, region, income, and other factors.

Financial Institution Supervision
- Financial Institution Supervision
- Supervision & Regulation
  - Circulars
  - Regulations
- Reporting Forms & Instructions
  - Reporting Forms
  - Correspondence
- Bank Applications
- Consumer Protection
  - Community Reinvestment Act Exams
  - Frauds and Scams
- As part of our core mission, we supervise and regulate financial institutions in the Second District. Our primary objective is to maintain a safe and competitive U.S. and global banking system.
  
  The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
  
  Need to file a report with the New York Fed? Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.
  
  The New York Fed works to protect consumers as well as provides information and resources on how to avoid and report specific scams.
Financial Services & Infrastructure
- Financial Services & Infrastructure
- Financial Services & Operations
- Financial Market Infrastructure & Reform
- The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
  
  The New York Fed provides a wide range of payment services for financial institutions and the U.S. government.
  
  The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.
  
  The New York Fed has been working with tri-party repo market participants to make changes to improve the resiliency of the market to financial stress.
Community Development
& Education

REVISED SOMA SECURITIES LENDING PROGRAM TERMS AND CONDITIONS
(POST 9/11/01)

Effective September 11^th, the Desk relaxed the following terms of the SOMA securities lending program (previously revised 9/7/99):

Per dealer limit: $500 million total par in outstanding loans per dealer limit suspended until further notice;
Per issue limit: $100 million per issue per dealer limit suspended until further notice;
Fail penalty fee: outstanding loans to be extended at the original loan fee rate, instead of general collateral rate until further notice;

Note: : following the initial operation on 9/11 that commenced at 12:00 p.m. and closed at 12:15 p.m., the desk conducted a second securities lending operation between 1:00 p.m. and 2:00 p.m.

Effective September 13^th through September 17^th, the Desk continued to extend the relaxed securities lending program terms, with the following modification: minimum bid size raised to $25 million (from $1 million) to temporarily ease operational burdens.

Note: On September 13^th and 14^th, the securities lending operation was conducted between 1:30 p.m. and 2:15 p.m.; and on September 17^th, the operation was conducted between 11:30 a.m. and 12:15 p.m.

Effective September 18th :

Minimum fee rate: minimum fee rate was lowered to 1.00%;
Per issue limit: maximum bid amount for a single issue per dealer returned to $100 million;
Minimum bid size: minimum bid size returned to $1 million;

Effective September 25^th, the fail penalty fee was reverted to general collateral. All other terms of the program as set on September 18^th remained effective.

Effective September 27^ththrough October 3^rd:

SOMA lending limit: percentage of each Treasury issue owned by SOMA with a maturity of two weeks or longer that is available for lending each day was temporarily raised to 75% (from 45%);
Per issue limit: maximum bid amount for a single issue per dealer was raised to $250 million, except for the 4 ¼% 11/15/03 and 5% 8/15/11 (due to portfolio limitations), which remained at $100 million per issue;

On October 3^rd, the Desk extended the relaxed securities lending program terms (in effect since 9/27) to October 10^th and further relaxed the per issue limit by raising it on the 4 ¼% 11/15/03 to $250 million.

On October 18^th, the Desk returned to its standard SOMA securities lending program terms, dated as September 7, 1999, except with respect to the minimum fee rate, which remained at 1.00%.

For more information on the standard SOMA securities lending program terms, please see:
August 26, 1999 - Announcement of Change in Lending Limits for SOMA Securities Lending Program,
September 7, 1999 - Revised SOMA Securities Lending Program – FAQs, and
September 7, 1999 - Revised SOMA Securities Lending Program Terms and Conditions.

By continuing to use our site, you agree to our Terms of Use and Privacy Statement. You can learn more about how we use cookies by reviewing our Privacy Statement.