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Primary Dealer Credit Facility: Program Terms and Conditions - Federal Reserve Bank of... Page 1 of 1 FOLLOW US: Banking Markets Research MAR KET S Open Market Operations Securities Lending Primary Dealers Education Regional Outreach About the Fed Careers News & Events Video Publications Press Center Home > Markets Primary Dealer Credit Facility: Program Terms and Conditions The Federal Reserve Primary Dealer Credit Facility (PDCF) is an overnight loan facility that provides funding to primary dealers in exchange for a specified range of eligible collateral in accordance with the program terms and conditions. All terms and conditions are subject to change. Treasury Operations Counterparty Pilot Effective June 25, 2009 Program Reverse Repo Counterparties Foreign Exchange Maiden Lane Transactions Programs Archive CURRENT TERMS AND CONDITIONS PDCF Loans Primary dealers may secure loans under the PDCF with all collateral eligible for pledge in triparty funding arrangements through the major clearing banks as of September 12, 2008. Borrower Eligibility Only primary dealers of the New York Fed are eligible to participate in the PDCF via their clearing banks. Commercial Paper Funding Facility Money Market Investor Funding Facility Primary Dealer Credit Facility Program Terms and Conditions Primary Dealer Credit Facility FAQs Term Asset-Backed Securities Loan Facility Term Securities Lending Facility Large-Scale Asset Purchases Agency Discount Note Purchases Overnight Lending Loans will settle on the same business day and will mature the following business day. Eligible Collateral Collateral eligible for pledge under the PDCF includes all collateral eligible for pledge in tri-party funding arrangements through the major clearing banks as of September 12, 2008. Rate The rate of the loan is the primary credit rate at the New York Fed. Click here for current rates. Frequency-Based Fee The frequency-based fee is a fee schedule that will specify additional fees to be charged to dealers who access the facility on more than 45 business days. Access to the facility on the 46th and subsequent days will result in additional fees to be paid by the dealer. The exact frequency-based fee schedule was determined in consultation with the primary dealers and was announced shortly after the program was put in place. Custody Rules and Arrangement Dealers will communicate their demand for funding to their clearing banks. The clearing bank will verify that a sufficient amount of eligible collateral has been pledged by each primary dealer participating in the PDCF and notify the New York Fed accordingly. Once the New York Fed receives notice that a sufficient amount of margin-adjusted eligible collateral has been assigned to the New York Fed’s account, the New York Fed will transfer the amount of the loan to the clearing bank for credit to the primary dealer. Collateral Valuation The pledged collateral will be valued by the clearing banks based on a range of pricing services. Loan Size Loans will be limited to the amount of margin-adjusted eligible collateral pledged by the dealer and assigned to the New York Fed’s account at the clearing bank. Recourse Loans made under the PDCF are made with recourse beyond the pledged collateral to the primary dealer entity itself. Program Termination The PDCF will remain available to primary dealers until February 1, 2010, or longer if conditions warrant. Program Terms and Conditions: February 3, 2009 ›› Contact Us | E-mail Alerts | RSS Feeds | Terms of Use Home | Federal Reserve System http://www.newyorkfed.org/markets/pdcf_terms.html 5/15/2013
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