The New York Fed concluded its Mortgage Operations Counterparty (MOC) Pilot Program
on December 31, 2015. The intent of the program, which was announced in August 2014
, was to explore ways to broaden the range of firms acting as counterparties in the Federal Reserve’s open market operations, and to determine the extent to which firms beyond the Primary Dealer community can augment the New York Fed’s operational capacity and resiliency in its monetary policy operations. Three firms were selected for the MOC pilot program and in December 2014 began transacting with the Open Market Trading Desk (Desk) in secondary market outright operations of agency mortgage-backed securities. The experience gained from the MOC and Treasury Operations Counterparty
pilot programs will be useful inputs in the Desk’s regular reviews of the Federal Reserve’s counterparty framework.