On Monday, May 22, the Federal Reserve Bank of New York added 32 new money market funds in addition to the existing set of Primary Dealer counterparties. The Federal Reserve can conduct reverse repurchase agreements with the counterparties, and can eventually tap into and drain cash from the financial system.
Effective Monday, May 23, 2011, the New York Fed accepted these money market funds as reverse repurchase transaction counterparties.
The new funds include the Federated Capital Reserves Fund, BofA Treasury Reserves, and the JPMorgan Liquid Assets Money Market Fund.
The full list of the new funds as well as the existing funds can be found at the Federal Reserve Bank of New York website.
The 32 new money market funds:
|Investment Manager||Fund Name|
|BlackRock Institutional Management Corp||BlackRock Liquidity Funds: T-Fund|
BlackRock Liquidity Funds: TempCash
|BofA Advisors, LLC||BofA Treasury Reserves|
|The Dreyfus Corporation||Dreyfus Cash Management Plus|
Dreyfus Institutional Reserves Money Fund
|Federated Investment Management Company||Federated Capital Reserves Fund|
Federated Prime Value Obligations Fund
|Fidelity Management & Research Company||Fidelity Fixed Income Trust: Money Market Portfolio|
|Invesco Advisers, Inc.||STIT Government and Agency Portfolio|
|J. P. Morgan Investment Management Inc.||JPMorgan Liquid Assets Money Market Fund|
|Morgan Stanley Investment Management, Inc.||Morgan Stanley Institutional Liquidity Fund Government Portfolio|
|Northern Trust Investments, Inc.||Northern Institutional Funds - Diversified Assets Portfolio|
Northern Institutional Funds - Government Portfolio
Northern Institutional Funds - Government Select Portfolio
Northern Funds - Money Market Fund
|Prudential Investments LLC||Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund|
|SSgA Funds Management, Inc.||Institutional Liquid Reserve Portfolio|
SSgA Money Market Fund
SSgA Prime Money Market Fund
State Street Navigator Securities Lending Trust
|T. Rowe Price Associates, Inc.||T. Rowe Price Prime Reserve Fund|
T. Rowe Price Summit Cash Reserves Fund
|TDAM USA, Inc.||TDAM Money Market Portfolio|
|UBS Global Asset Management (Americas) Inc.||Prime Master Fund|
Treasury Master Fund
UBS RMA Money Market Portfolio
|U.S. Bancorp Asset Management, Inc.||First American Treasury Obligations Fund|
Mount Vernon Securities Lending Prime Portfolio
|The Vanguard Group, Inc.||Vanguard Federal Money Market Fund|
|Wells Fargo Funds Management||Wells Fargo Advantage Money Market Fund|
Wells Fargo Advantage Prime Investment Money Market Fund
Wells Fargo Advantage Treasury Plus Money Market Fund
The Fed can use reverse repos as one of the means to tighten monetary policy if needed.
In a reverse repo, financial firms would buy securities for a certain period to drain excess reserves from the financial system.