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 overnight repo and overnight reverse repo small value operations to test its contingency infrastructure.
The small value overnight repo operation will be conducted from 10:00 AM ET to 10:15 AM ET on Wednesday, February 26, 2025 with Primary Dealers and Standing Repo Facility counterparties.
The small value overnight reverse repo operation will be conducted from 10:00 AM ET to 10:30 AM ET on Thursday, February 27, 2025 with Primary Dealers and Reverse Repo Counterparties.
All counterparties in each small value operation will be limited to one $1 million proposition per eligible security type. Following the completion of each operation, repurchase operation results will be posted on the New York Fed’s repo website, and reverse repurchase operation results will be posted on the New York Fed’s reverse repo website. The small value operations’ details are as follows:
Repurchase Agreement Operation:
| OPERATION TENOR/TYPE | ELIGIBLE COUNTERPARTIES | OPERATION DATE | SETTLEMENT DATE | MATURITY DATE | SECURITY TYPE | MINIMUM BID RATE | MAXIMUM VALUE OF OPERATION |
| Overnight Repo | Primary dealers and SRF counterparties, which include depository institutions | Wed, Feb 26, 2025 | Wed, Feb 26, 2025 | Thu, Feb 27, 2025 | Multi-tranche: U.S. Treasury, Agency, Agency MBS | SRF Minimum Bid Rate on Feb 26 | $250 million |
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 | Thu, Feb 27, 2025 | Thu, Feb 27, 2025 | Fri, Feb 28, 2025 | U.S. Treasury | ON RRP Offering Rate on Feb 27 | $200 million |
