NEW YORK—The Federal Reserve Bank of New York announced today that it is looking to expand the approved counterparties for the Open Market Trading Desk’s purchases of agency commercial mortgage-backed securities (agency CMBS). By widening the eligibility criteria for agency CMBS counterparties, the New York Fed seeks to increase the operational capacity and the reach of the agency CMBS purchases. This counterparty expansion also aims to further the New York Fed’s commitment to support equal opportunity and diversity in the market operations and facilities that have been stood up in response to Covid-19.
Adding agency CMBS counterparties also complements the ongoing efforts to expand the New York Fed’s counterparties and agents for the Commercial Paper Funding Facility (CPFF), the Secondary Market Corporate Credit Facility (SMCCF) and the Term Asset-Backed Securities Loan Facility (TALF). Interested agency CMBS counterparty applicants will also be able to apply for counterparty and agent roles for the CPFF, the SMCCF and the TALF in the same Expression of Interest (EOI) form and can submit this to facility.counterparty@ny.frb.org.
Applications will be limited to firms meeting designated eligibility requirements, including size restrictions, transaction capabilities, financial condition, compliance controls, and equal opportunity and diversity efforts. A full description of eligibility and program requirements for firms interested in participating in this program can be found in the Expression of Interest (EOI) materials and Frequently Asked Questions (FAQs) on the New York Fed’s website.
Selected participants will only be able to act as approved agency CMBS counterparties or as counterparty or agent for the specific 13(3) facility for which they have been chosen, and not for any other 13(3) facilities or for other market operations of the New York Fed.
