New York Federal Bank starts reverse repos
12 August 2013 New York
Image: Shutterstock
The Federal Reserve Bank of New York has released a statement reiterating that it is ready to support any reserve draining operations that the Federal Open Market Committee might direct.
Its support comes in the form of draining a certain amount of reserves from the banking system using triparty reverse-repo agreements.
On 5 August, the bank announced that at the beginning of that week, it would conduct another series of small-value reverse repurchase transactions using treasury and MBS collateral, with all operations open to all eligible reverse repo counterparties.
“Like the earlier operational readiness exercises, this work is a matter of prudent advance planning by the Federal Reserve,” said a statement on the bank’s website.
“The operations have been designed to have no material impact on the availability of reserves or on market rates. Specifically, the aggregate amount of outstanding reverse repo transactions will be very small relative to the level of excess reserves, and the transactions will be conducted at current market rates.”
“These operations do not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future.”
Its support comes in the form of draining a certain amount of reserves from the banking system using triparty reverse-repo agreements.
On 5 August, the bank announced that at the beginning of that week, it would conduct another series of small-value reverse repurchase transactions using treasury and MBS collateral, with all operations open to all eligible reverse repo counterparties.
“Like the earlier operational readiness exercises, this work is a matter of prudent advance planning by the Federal Reserve,” said a statement on the bank’s website.
“The operations have been designed to have no material impact on the availability of reserves or on market rates. Specifically, the aggregate amount of outstanding reverse repo transactions will be very small relative to the level of excess reserves, and the transactions will be conducted at current market rates.”
“These operations do not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
