Fed Alert! Expectations and eligibility criteria for Reverse Repo (RRP) counterparties have been updated to clarify that accessing RRP operations should be a natural extension of an existing business model...

The counterparty should not be organized for the purpose of accessing RRP operations.

The Policy on Counterparties for Market Operations has been updated to clarify that, in addition to implementing monetary policy, broader policy goals including fostering financial stability and ensuring bank safety and soundness, are considered when reviewing a prospective or existing counterparty.
To ensure alignment with counterparty policies for other market operations, expectations and eligibility criteria for Reverse Repo (RRP) counterparties have been updated to clarify that accessing RRP operations should be a natural extension of an existing business model, and the counterparty should not be organized for the purpose of accessing RRP operations.
SEC registered 2a-7 funds that, in the sole judgment of the New York Fed, are organized for a single beneficial owner, or exhibit sufficient similarities to a fund so organized, generally will be deemed ineligible to access reverse repo operations. This generally would not disqualify a fund that serves as the cash management vehicle for multiple funds or investment entities in an investment fund complex. Accordingly, eligibility criteria and the expression of interest form for these funds have been updated.