Primary Dealer Credit Facility: Program Terms and Conditions

Museum & Visits Regional Economy Data & Statistics Careers Blog Press Center

About the New York Fed
- About the New York Fed
- What We Do
- Who We Are
  - Bank Leadership
  - Diversity and Inclusion
- Communities We Serve
- Governance
- More About Us
- At the New York Fed, our mission is to make the U.S. economy stronger and the financial system more stable for all segments of society. We do this by executing monetary policy, providing financial services, supervising banks and conducting research and providing expertise on issues that impact the nation and communities we serve.
  
  The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
  
  Do you have a request for information and records? Learn how to submit it.
  
  Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video.
Markets & Policy Implementation

Economic Research
- Economic Research
- U.S. Economy
  - Consumer Expectations & Behavior
  - Growth & Inflation
  - Labor Market
  - Financial Stability
  - Banking
- REGIONAL ECONOMY
- RESEARCHERS
  - PUBLICATIONS
  - RESEARCH CENTERS
  - CALENDAR

Financial Institution Supervision
- Financial Institution Supervision
- Supervision & Regulation
  - Circulars
  - Regulations
- Reporting Forms & Instructions
  - Reporting Forms
  - Correspondence
- Bank Applications
- Consumer Protection
  - Community Reinvestment Act Exams
  - Frauds and Scams
- As part of our core mission, we supervise and regulate financial institutions in the Second District. Our primary objective is to maintain a safe and competitive U.S. and global banking system.
  
  The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
  
  Need to file a report with the New York Fed? Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.
  
  The New York Fed works to protect consumers as well as provides information and resources on how to avoid and report specific scams.
Financial Services & Infrastructure
- Financial Services & Infrastructure
- Financial Services & Operations
- Financial Market Infrastructure & Reform
- The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
  
  The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
  
  The growing role of nonbank financial institutions, or NBFIs, in U.S. financial markets is a transformational trend with implications for monetary policy and financial stability.
  
  The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.
Community Development
& Education

Primary Dealer Credit Facility: Program Terms and Conditions

The Federal Reserve Primary Dealer Credit Facility (PDCF) is an overnight loan facility that provides funding to primary dealers in exchange for a specified range of eligible collateral in accordance with the program terms and conditions. All terms and conditions are subject to change.

Effective February 3, 2009

CURRENT TERMS AND CONDITIONS

PDCF Loans
Primary dealers may secure loans under the PDCF with all collateral eligible for pledge in triparty funding arrangements through the major clearing banks as of September 12, 2008.

Borrower Eligibility
Only primary dealers of the New York Fed are eligible to participate in the PDCF via their clearing banks.

Overnight Lending
Loans will settle on the same business day and will mature the following business day.

Eligible Collateral
Collateral eligible for pledge under the PDCF includes all collateral eligible for pledge in tri-party funding arrangements through the major clearing banks as of September 12, 2008.

Rate
The rate of the loan is the primary credit rate at the New York Fed. Click here for current rates.

Frequency-Based Fee
The frequency-based fee is a fee schedule that will specify additional fees to be charged to dealers who access the facility on more than 45 business days. Access to the facility on the 46th and subsequent days will result in additional fees to be paid by the dealer. The exact frequency-based fee schedule was determined in consultation with the primary dealers and was announced shortly after the program was put in place.

Custody Rules and Arrangement
Dealers will communicate their demand for funding to their clearing banks. The clearing bank will verify that a sufficient amount of eligible collateral has been pledged by each primary dealer participating in the PDCF and notify the New York Fed accordingly. Once the New York Fed receives notice that a sufficient amount of margin-adjusted eligible collateral has been assigned to the New York Fed’s account, the New York Fed will transfer the amount of the loan to the clearing bank for credit to the primary dealer.

Collateral Valuation
The pledged collateral will be valued by the clearing banks based on a range of pricing services.

Loan Size
Loans will be limited to the amount of margin-adjusted eligible collateral pledged by the dealer and assigned to the New York Fed’s account at the clearing bank.

Recourse
Loans made under the PDCF are made with recourse beyond the pledged collateral to the primary dealer entity itself.

Program Termination
The PDCF will remain available to primary dealers until October 30, 2009 or longer if conditions warrant.

Program Terms and Conditions: December 8, 2008 ››

By continuing to use our site, you agree to our Terms of Use and Privacy Statement. You can learn more about how we use cookies by reviewing our Privacy Statement.