The Federal Reserve Bank of New York is rolling out a one-year pilot program for a limited number of firms that do not meet the minimum capital requirement for primary dealers to function as counterparties in agency MBS operations it runs for the System Open Market Account portfolio. The FRBNY said its intent is to explore ways to broaden access to open market operations, and to determine the extent to which firms beyond the primary dealer community can augment the FRBNY’s operational capacity and resiliency in its monetary policy operations. “This pilot will allow...