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Fixed-Rate Operation Step-by-Step Guide

Slide 1

The Federal Reserve – Reserves Central

Term Deposit Facility (TDF). Follow this step-by-step guide to learn more about fixed-rate operations in the TDF application. July 2020.

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Fixed-Rate Operation Timeline

Announcement: Prior to each operation, the Federal Reserve will make an announcement and post the operation details to the Board of Governors’ website.

Submit Tender: On the operation date, after the open time, and prior to the close time, the TDF participant can submit a tender using the TDF application.

View Results: All tenders that are complete and compliant with the operation parameters will be accepted in full. After the notification date and time, the aggregate results of the TDF operation will be announced on the Board of Governors’ website.

Settlement: On the settlement date, the TDF participant’s settlement account will be debited for its accepted tender amount. The TDF participant now holds a term deposit.

Maturity: On the maturity date, the TDF participant’s settlement account will be credited with principal from the term deposit and the interest earned. The TDF participant can view interest earned and historical information on its holdings of term deposits in the TDF application.

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Term Deposit Facility Page

To access the TDF application, click on the button on the Term Deposit Facility Page labeled “Term Deposit Facility Secure Logon.”

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Participant Home Page

Example: No Operations are available. When no operations are available, a message will appear to the participant that reads, “There are no open Term Deposit Facilities at this time”.

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Submit Tender

Step 1: Click on the “Submit an Order” button.

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Submit Tender

Step 2: The fixed interest rate for the operation is found at the top of the screen below the Operation ID. Enter an amount into the field that is labeled “Order Amount.” The entry must be within the defined terms for the operation.

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Submit Tender

Step 3: Click on the "Submit Order" button to submit the tender.

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Submit Tender

Step 4: The following message appears: "Are you sure you would like to create this order?" Click on the "Yes" button to submit the tender.

Note: If a participant settles term deposits through a correspondent, it should inform the correspondent of its submitted tender.

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Submit Tender

The participant receives confirmation within the Term Deposit Facility application that a tender has been successfully submitted. A submission number is assigned to the tender for an operation. For example, the message reads, “Submission #3097 for F2144 has been successfully created.” The status is “Accepted” showing that the tender was accepted for this TDF operation. The accepted tender amount is displayed under the participant’s Deposit Amount. The participant can click on the “Modify My Order” button to change or delete its tender prior to the close time indicated for the operation.

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View Results: Close Time

Prior to maturity, information regarding tender is displayed on the “Current” tab. The participant’s Deposit Amount and Interest Rate are displayed. At the close time, a tender with a status of “Accepted” is considered an awarded term deposit for this TDF operation.

Step 5: Click on the link (for example “F2144”) below the “Offering ID” column heading to view the details of the awarded tender.

Note: If a participant settles term deposits through a correspondent, it should inform the correspondent of its deposit amount and interest rate.

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View Results: Close Time

In the example, the participant was awarded $100,000,000 at the fixed-rate of 1.00000%.

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Maturity

Step 6: After the term deposit matures, click on the "Matured" tab to view information on matured term deposits and interest earned.

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