NEW YORK - The Federal Reserve Bank of New York will expand its counterparties for conducting reverse repurchase agreement transactions to add capacity for draining reserves beyond primary dealers, the traditional counterparties, the Fed announced today.
The Fed announced in October that it was considering such expansion. “The additional counterparties will not be eligible to participate in transactions conducted by the New York Fed other than reverse repos. This expansion of counterparties for the reverse repo program is a matter of prudent advance planning, and no inference should be drawn about the timing of any prospective monetary policy operation,” the Fed said in a statement.
The Fed also released eligibility criteria for interested parties.
