At its January 2015 meeting, the Federal Open Market Committee (FOMC) approved the Authorization for Domestic Open Market Operations that authorized the Selected Bank (the Federal Reserve Bank of New York) to undertake certain open market transactions for the purpose of testing operational readiness.
In connection with this authorization, the Federal Reserve Bank of New York’s Open Market Trading Desk (the Desk) intends to conduct a small-value repo operation on Wednesday, December 2. The transaction will have an overnight tenor, will be conducted with the primary dealer community, and will run from approximately 9:40 – 9:50 a.m. ET. The operation will be multi-tranche (Treasury, agency, and agency MBS) and settle the same day. Each dealer will be limited to one $10 million proposition in each tranche of this operation.
This small-value repo operation is a matter of prudent advance planning by the Federal Reserve. The operation has been designed to have no material impact on the level of reserves or on market interest rates. This operation does not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future.
The results of this operation will be posted on the public website of the Federal Reserve Bank of New York together with the results of other temporary open market operations. The outstanding amount of repo is reported as a factor supplying reserves in Table 1 in the Federal Reserve's H.4.1 statistical release and as an asset in Tables 5 and 6 of that release.
