This has been superseded by the Federal Reserve Bank of New York Policy on Counterparties for Market Operations and specific eligibility criteria for reverse repo counterparties.
|May 24, 2011
This document sets forth the criteria for acceptance of a government-sponsored enterprise
In any such RRP, FRBNY will sell securities held in the System Open Market Account (SOMA) to counterparties subject to an agreement to repurchase them at some future date. FRBNY expects to use the existing industry tri-party infrastructure to undertake any such RRP. In addition, as with current operations, FRBNY intends to use an auction format for awarding transactions to counterparties.1
Upon submission of an application and acceptance of that application by FRBNY, an applicant will be added to a public list, maintained on FRBNY's website, of eligible RRP counterparties. Inclusion on such list simply means that the entity is eligible to engage in RRP with FRBNY. It does not mean that the entity is eligible for any other program or transactional relationship with FRBNY. It does not in any way constitute a public endorsement of that entity by FRBNY, nor should such be viewed as a replacement for prudent counterparty risk management and due diligence. FRBNY reserves the right to amend its list of RRP counterparties at any time and for any reason in its sole discretion. FRBNY reserves the right to disclose information regarding the RRP counterparties. Details of transactions undertaken with RRP counterparties will be disclosed in accordance with the requirements of Section 1103 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. That legislation requires the disclosure of certain information regarding open market transactions between a Federal Reserve Bank and nongovernmental entity that have been authorized under specified provisions of Section 14 of the Federal Reserve Act, which would include RRP.
I. Initial Eligibility2
To be accepted as a RRP counterparty, an applicant must:
In addition to the foregoing, before being accepted as a RRP counterparty, an applicant must satisfy an FRBNY counterparty review.
II. Continued Eligibility
FRBNY may remove an entity from the RRP counterparty list, or otherwise cease to enter RRP with such counterparty, for any reason including if such counterparty: