The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
Changes to Include Fails Charges in SOMA Securities Lending Program
April 30, 2009
Effective May 1, 2009, the Federal Reserve Bank of New York's Open Market Trading Desk is making the following adjustment to the System Open Market Account's (SOMA) daily securities lending program:
Consistent with the adoption of the Fails Charge Trading Practice, a fails charge, determined in accordance with the Fails Charge Trading Practice published by the Treasury Market Practices Group (Fails Charge) will be assessed for failure to deliver securities related to transactions in SOMA's daily securities lending program. The Fails Charge will be in addition to the existing penalty fee—equal to the prevailing general collateral rate—assessed for failure to deliver collateral and for failure to re-deliver borrowed securities under the current program terms. All other program terms remain unchanged.