The Open Market Trading Desk (the Desk) at the New York Fed undertakes small value open market transactions for the purpose of testing operational readiness to implement existing and potential policy directives from the Federal Open Market Committee (FOMC). The FOMC directs the Desk to conduct these exercises to test its operational readiness in the Authorizations and Continuing Directives for Open Market Operations.
In connection with these directives, the Desk intends to conduct a small value forward start term repo operation with Primary Dealers. The bid submission process will be conducted from 10:30 AM ET to 10:45 AM ET on Wednesday, March 8, 2023. All counterparties will be limited to one $1 million proposition per tranche during the operation. Results will be posted on the New York Fed’s website following the completion of the operation. The operation details are as follows below:
Repurchase Agreement Operation:
| OPERATION TENOR/TYPE | ELIGIBLE COUNTERPARTIES | OPERATION DATE | SETTLEMENT DATE | MATURITY DATE | SECURITY TYPE | OFFERING RATE | MAXIMUM VALUE OF OPERATION |
| Forward Start Term Repo | Primary Dealers | Wed, March 8, 2023 | Thu, March 9, 2023 | Mon, March 13, 2023 | Multi-tranche: Treasury, Agency, Agency MBS | At or Above March 8, 2023 SRF Minimum Bid Rate | $75 million |
