The Markets Group encompasses many business lines that fulfill a range of responsibilities, including conducting market operations consistent with Federal Open Market Committee (FOMC) directives; monitoring and analyzing global financial market developments; making loans available to depository institutions in the Second District; providing financial services for foreign and international monetary authorities; serving as fiscal agent for the U.S. Treasury; and producing robust and resilient reference rates. During periods of market stress, the Markets Group may also be directed to implement programs and operations to support the continued flow of credit to businesses and households. The core functions of the Markets Group are:

SOMA Policy & Strategy supports the System Open Market Account (SOMA) Manager. The SOMA Manager’s responsibilities include managing the SOMA portfolio and implementing monetary policy as directed by the FOMC, informing policymakers on financial market developments, and managing the foreign currency reserves held in the Exchange Stabilization Fund as directed by the U.S. Treasury. 

Domestic & International Markets implements domestic open market and foreign currency operations, administers reference rate production, transacts on behalf of foreign and international monetary authorities, and executes operations on foreign currency reserves held in the ESF. The function monitors and analyzes global financial markets to inform the formulation and implementation of monetary and financial stability policy. The function also supports New York Fed-sponsored groups such as the Treasury Market Practices Group and the Foreign Exchange Committee, global coordination work conducted by the Bank for International Settlements Markets Committee, and industry-sponsored initiatives under the Inter-Agency Working Group on Treasury Market Surveillance.

Cross Market & Portfolio Analysis leads cross market monitoring and analysis, coordinates the Open Market Trading Desk’s analytical strategy, and engages with market participants to gather market intelligence. The function also provides analysis and projections of the domestic and foreign SOMA portfolios, the Federal Reserve balance sheet, and the U.S. Treasury’s Exchange Stabilization Fund to support portfolio decision making. Additionally, Cross Market & Portfolio Analysis is responsible for onboarding and managing the New York Fed counterparties that engage in the Desk operations.

Treasury Debt Financing executes Treasury auctions as fiscal agent for the U.S. Treasury. Auctions are the primary way that the U.S. government funds its operations and finances existing debt. The function also conducts analysis on the primary market for Treasury securities and auction bidding behavior, monitors compliance to auction rules, and provides business expertise and testing support for various Treasury auction initiatives.

Central Bank and International Account Services (CBIAS) serves two essential customer classes by providing securities clearing, custody, funds transfer, and other support services for domestic and foreign monetary policy operations, as well as by offering correspondent and custodial banking services to Foreign and International Monetary Authorities that maintain dollar accounts at the New York Fed.

International Policy & Strategy develops and executes an analytical and engagement framework to help inform the New York Fed’s international activities, and build relationships consistent with evolving global financial and economic dynamics.

Discount Window and Collateral Valuation executes the operations and manages the risk of making loans available to depository institutions in the Second District under the discount window lending programs and any active emergency facilities. This involves managing loan requests, processing and evaluating the collateral pledged by depository institutions, and performing counterparty credit risk and collateral risk surveillance. The function also determines valuation and margin practices for collateral pledged throughout the Federal Reserve System.

Product Strategy & Support delivers a high-value product investment portfolio and access to technology services in support of the Markets Group, leveraging business and product area expertise as well as strategic product management competencies. 

Office of the Chief Operating Officer provides centralized support services to the Markets Group, including strategy, program and change management, risk management and controls, vendor management, and workforce strategy and administration. 

The New York Innovation Center (NYIC) collaborates with the official sector, academia, and the private sector to bridge the worlds of finance, technology, and innovation. Through research, experimentation, and prototyping, the NYIC team generates insights into high-value central bank-related opportunities, enabling stakeholders and the central bank community to enhance the functioning of the global financial system.