Statement to Revise Terms of Overnight Fixed-Rate Reverse Repurchase Agreement Operational Exercise (January 2014)

Effective Thursday, January 30, 2014, the Federal Reserve Bank of New York (FRBNY) revised the terms of its daily, overnight fixed-rate reverse repurchase operational exercise, to increase the maximum allotment cap from $3 billion per counterparty per day to $5 billion per counterparty per day.  In addition, the fixed rate for these auctions will continue to be between 0 and 5 basis points.　 The current fixed rate for the operations will be maintained at 3 basis points.  Additionally, since January 15, the timing of the operations moved an hour and half later in the day, to 12:45 – 1:15 pm ( Eastern Time).  All other terms of the exercise will remain the same.

Since 2009, the Open Market Trading Desk (the Desk) of the FRBNY has been working with market participants on operational aspects of tri-party reverse repurchase agreements (RRPs) to ensure that this tool will be ready to support the monetary policy objectives of the Federal Open Market Committee (Committee).