The Federal Reserve Board yesterday said it has taken steps to make its liquidity facilities more effective, including creating 84-day term auction facilities, adding auctions of options on $50 billion of draws on the Term Securities Lending Facility, extending the Primary Dealer Credit Facility and the TSLF through Jan. 30, 2009, and raising its line with the European Central Bank to $55 billion from $50 billion.

The Federal Reserve Bank of New York was authorized “to auction options for primary dealers to borrow Treasury securities from the TSLF,” according to a Fed press release. “The Federal Reserve intends to offer such options for exercise in advance of periods that are typically characterized by elevated stress in financial markets, such as quarter ends.”

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