The New York Fed is authorized and directed by the Federal Open Market Committee (FOMC) to lend Treasury and agency debt securities from the System Open Market Account (SOMA) portfolio to primary dealers on a temporary basis. These operations promote the smooth clearing of Treasury and agency debt securities in support of monetary policy implementation.
Securities loans are awarded to primary dealers that have elected to participate in the program based on competitive bidding in a multiple price auction held each business day at noon. Participation by primary dealers is entirely voluntary and summary results are released to the public following each day's auction.
Additional information on securities lending operations, including operational questions that primary dealers may have, is available in our Frequently Asked Questions.
