NEW YORK (MNI) – The Federal Reserve Bank of New York said its Open
Market Trading Desk is changing the System Open Market Account
(SOMA) securities lending program, to collect fees on a daily basis.
“Effective June 1, 2010, the New York Fed will collect all SOMA
securities lending-related fees on a daily basis,” the Fed said.
“Previously, fees associated with failure to return borrowed
securities at original maturity were typically collected upon settlement
of the loan return. All other terms and conditions remain unchanged.”
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