New York Fed Selects Additional Firms to Broaden its Counterparty Base for Agency CMBS and TALF
Posted on 11/30/2020
According to the press release on November 20, 2020, “The Federal Reserve Bank of New York today announced the selection of additional counterparties to support, as applicable, agency commercial mortgage backed securities (agency CMBS) purchases and the Term Asset-Backed Securities Loan Facility (TALF). By widening the eligibility criteria for counterparties and agents for these market operations and 13(3) facilities, the New York Fed is furthering its commitment to support diversity, inclusion, and opportunity as we increase these programs’ operational capacity and reach. The firms selected over the course of this counterparty expansion include a diverse range of market participants by firm size, business model, and ownership, including Minority, Women, and Veteran Business Enterprises (MWVBEs).
The additional agency CMBS approved counterparties are:
Brean Capital LLC
PNC Capital Markets LLC
The additional agent for TALF is: Loop Capital Markets LLC
Expression of Interest (EOI) materials for counterparty and agent roles for agency CMBS, the Commercial Paper Funding Facility (CPFF), the Secondary Market Corporate Credit Facility (SMCCF), and the TALF can be found on the New York Fed’s website. Any questions about this process can be directed to facility.counterparty@ny.frb.org
Applications are limited to firms meeting designated eligibility requirements, including size restrictions, transaction capabilities, financial condition, compliance controls, and equal opportunity and diversity efforts. Selected participants will only be able to act as counterparty or agent for the specific program for which they have been chosen, and not for any other 13(3) facilities or for other market operations of the New York Fed.”
In the last 30-40 days, the Federal Reserve Bank of New York added BNY Mellon Capital Markets, LLC and MUFG Securities Americas Inc. as CPFF dealers.
The bank also added CastleOak Securities, L.P., Great Pacific Securities, SMBC Nikko Securities America, Inc., and U.S. Bancorp Investments, Inc. as SMCCF eligible sellers.
Added as SMCCF eligible sellers – October 2020
FHN Financial Securities Corp.
Flow Traders U.S. Institutional Trading LLC
Guzman & Company
Imperial Capital, LLC
Mischler Financial Group, Inc.
MUFG Securities Americas Inc.
Samuel A. Ramirez & Co., Inc.
The additional agency CMBS approved counterparties are:
Academy Securities, Inc.
Loop Capital Markets LLC
Mischler Financial Group, Inc.
Samuel A. Ramirez & Co., Inc.
The additional commercial paper dealers for the CPFF are:
Academy Securities, Inc.
CastleOak Securities, L.P.
Keywords: Federal Reserve System.