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 plans to conduct a small value exercise of an overnight standing repo facility operation that tests the capabilities of SRF counterparties and the Desk to settle a SRF operation in the morning on the Bank of New York (BNY) tri-party repo platform.
This small value repo operation will be conducted on Wednesday, March 5, 2025, from 8:15 AM ET to 8:30 AM ET. All eligible counterparties will be limited to one $1 million proposition per eligible security type.
To facilitate earlier settlement of awarded propositions, any necessary funds will be positioned on the BNY tri-party repo platform within one hour of the completion of the operation. Actual settlement timing will vary and depends in part on the delivery of securities. The repurchase of securities on the maturity date will take place on the BNY tri-party repo platform in the afternoon.
The details for the small value operation are as follows:
| 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, Mar 5, 2025 | Wed, Mar 5, 2025 | Thur, Mar 6, 2025 | Multi-tranche: Treasury, Agency, Agency MBS | SRF Minimum Bid Rate on Mar 5 | $250 million |
Results will be posted on the New York Fed’s repo website following the completion of the operation.
