The New York Fed’s Open Market Trading Desk (the Desk), in addition to its operational responsibilities,
analyzes global financial markets to support the Federal Reserve's monetary and financial stability policy objectives.
Staff from the Desk interact in various ways with a wide range of financial market participants and other members of the public to gather information on financial market developments. The insights generated from these interactions are called market intelligence.
The main goal of gathering market intelligence is to support informed policy decisions. Alongside financial market expertise gained from executing open market operations, market intelligence is central to the Desk's efforts to understand developments in financial markets—particularly those in which the New York Fed operates—and report on them to policymakers. This includes developments related to monetary policy expectations, financial market conditions in the U.S. and abroad, market structure and liquidity, and financial stability risks.
The Desk collects market intelligence in several ways:
The materials gathered in these ways include the content of conversations and associated notes, newsletters, emails, instant message records, research publications, and other written communications.
Desk staff members collect, summarize, and communicate market intelligence. These Desk staff are skilled analysts who are prepared through a comprehensive, well-established training program which includes specific training on appropriate communication with market participants. These staff are required to comply with various policies such as the New York Fed's Code of Conduct and the FOMC Policy on External Communications of Federal Reserve System Staff, and are subject to the New York Fed's Conflicts of Interest Rules. These policies and rules, among other requirements, prohibit staff from discussing non-public, FOMC, or confidential supervisory information with the public. Market participants typically provide their insights to the Desk to support better policy decisions. Desk staff strictly collect information, and do not divulge any confidential information from the Fed.
Staff are trained on escalation procedures by which information indicating behavior that is illicit or that may harm market integrity may be provided to the relevant regulatory or law enforcement authorities or otherwise dealt with appropriately. To the extent that staff express opinions in their efforts to gather market intelligence, those opinions are solely their own and do not necessarily reflect the views of the New York Fed or the Federal Reserve System.
The Desk typically summarizes market intelligence and incorporates it into a wide range of briefings and analyses. As part of this, market intelligence is processed through the Desk’s analytical framework to help cross check and inform any assessment. Internal analytical tools, including artificial intelligence systems, may also be deployed. For these internal briefs and analyses, market intelligence is typically aggregated and non-identifiable because the focus is on understanding market developments rather than on specific firms or individuals.
The Desk’s briefings, analyses, and market intelligence may be shared with policymakers, other senior stakeholders, and staff across the Federal Reserve. As the New York Fed deems appropriate, some market intelligence may also be shared with other official sector bodies, like the U.S. Treasury. In certain cases, aggregated and non-identifiable data or information may also be disclosed to the public or otherwise shared in accordance with the New York Fed's Transparency and Accountability Policy. For example, the aggregated results of the Survey of Market Expectations have been shared on the New York Fed’s website since 2011. Any such information may also be subject to disclosure in response to requests from Congress or from the New York Fed's oversight bodies, or as otherwise may be required by law.
Market intelligence provided to the New York Fed will be handled in keeping with the terms outlined on this page. Any terms and conditions presented in connection with market intelligence materials are superseded by the New York Fed terms and so are not binding. When the New York Fed obtains market intelligence subject to a direct agreement or license, or a regulatory requirement, the New York Fed adheres to all applicable information-sharing requirements.
