Statement

Change to SOMA Securities Lending Program

May 24, 2010

The Federal Reserve Bank of New York's Open Market Trading Desk is making the following change to the System Open Market Account (SOMA) securities lending program:

Effective June 1, 2010, the New York Fed will collect all SOMA securities lending related fees on a daily basis. 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.