The following is intended to provide technical clarification on aspects of the RRP Eligibility Criteria for Money Funds.

Effective March 9, 2010

Does the $20 billion net assets requirement apply to the money fund or the fund family?
The net asset requirement applies to the RRP counterparty applicant, which is the money market fund itself.  As stated in the RRP Eligibility Criteria for Money Funds, to be accepted as a RRP counterparty, an applicant must, among other things, be a money market fund that satisfies the description set forth in Section I(A) and have net assets of no less than $20 billion for six consecutive months (measured at each month-end) prior to the submission of the application. 

Does the minimum bid size of $1 billion apply to the money fund or the fund family?
The minimum bid size applies to the RRP counterparty, which is the money market fund itself.  See Section I(F) in the RRP Eligibility Criteria for Money Funds.

What does "RRP with terms of up to 65 business days or longer" mean?
The New York Fed is currently authorized to conduct RRP transactions for terms up to 65 business days.  Specific tenors have not been determined for RRP transactions, but it is expected that RRP transactions will be across a range of terms.  A RRP counterparty would not be required to participate in an auction of a particular tenor.

Will a seven-day put option be provided to money market funds who become RRP counterparties?
Yes.  As stated in footnote 4 in the RRP Eligibility Criteria for Money Funds, it is contemplated that for RRP with terms exceeding seven days, the RRP counterparty will be permitted to resell the securities to the New York Fed upon seven days prior notice.  The specifics of this option will be provided in the New York Fed's Master Repurchase Agreement for money market funds, which the New York Fed expects to publish in about a month.