American Funds Added to RRP
A statement from the Federal Reserve Bank of New York entitled, "Reverse repo counterparties list updated," says, "American Funds U.S. Government Money Market Fund has been added to the list of reverse repo counterparties, effective February 6, 2017." A recent Name Change comments, "The Investment Manager primarily responsible for the day-to-day management of the Edward Jones Money Market Fund’s portfolio changed from Passport Research, Ltd. to Federated Investment Management Company, effective January 27, 2017." The site says about the "Role of reverse repo counterparties in New York Fed market operations," "Reverse repo (RRP) counterparties only operate with the New York Fed as cash providers in the Desk's reverse repo operations. As such, they play a much more limited role in the Desk’s operations than primary dealers, which may serve as counterparties in all of the Desk’s domestic open market operations. RRP counterparties are expected to bid in an operation at least twice every six months." The "Eligibility criteria says, "In order to be eligible as a reverse repo counterparty, a firm must be either: a state or federally chartered bank or savings association (or a state or federally licensed branch or agency of a foreign bank) with total assets equal to or greater than $30 billion, or reserve balances equal to or greater than $10 billion on the last quarter for which relevant reports are available; or, a government-sponsored enterprise that either has an average daily outstanding amount of RRP transactions of no less than $1 billion for the past three months, or has an average daily amount outstanding of overnight money market transactions of no less than $100 million over the past three months; or, an SEC-registered 2a-7 fund that has, measured at each month-end for the most recent six consecutive months, either net assets of no less than $5 billion or an average outstanding amount of RRP transactions of no less than $1 billion."
