NEW YORK (MNI) The New York Federal Reserve Bank said it had
accepted Fannie Mae and Freddie Mac as Government Sponsored Entities
that can be Reverse Repo operation counterparties.

GSEs, chartered by the U.S. Congress, are “consistent cash”
investors “in the triparty repo market” and able to confirm and arrange
settlement of significant volume of transactions with NY Fed, according
to a prior New York Fed release.

The RRPs are short-term temporary draining operations, without
monetary policy implications. Previously the Fed has accepted primary
dealers, then other entities such as money market funds, to do such RRP
operations.

–By Sheila Mullan 212-669-6432 email: smullan@marketnews.com

** Market News International New York Newsroom: 212-669-6430 **

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