The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York 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 authorizes the Desk to conduct these exercises in the Authorizations and Continuing Directives for Open Market Operations.
In connection with these authorizations, the Desk intends to conduct a small value overnight reverse repo operation with Primary Dealers and Reverse Repo Counterparties to test its contingency operation infrastructure. The bid submission process will be conducted from 10:00 AM ET to 10:30 AM ET on Tuesday, October 17, 2023. Operation results will be posted on the New York Fed’s website following the completion of bid evaluation. All counterparties will be limited to one $1 million proposition during the operation. The operation details are as follows:
Reverse Repurchase Agreement Operation:
| OPERATION TENOR/TYPE | ELIGIBLE COUNTERPARTIES | OPERATION DATE | SETTLEMENT DATE | MATURITY DATE | SECURITY TYPE | OFFERING RATE | MAXIMUM VALUE OF OPERATION |
| Overnight Reverse Repo | Primary Dealers and Reverse Repo Counterparties | Tuesday, October 17, 2023 | Tuesday, October 17, 2023 | Wednesday, October 18, 2023 | U.S. Treasury | ON RRP Offering Rate on Oct 17, 2023 | $175 million |
