Federal Reserve to roll out new trading platform
15 November 2024 US
Image: Danicha/stock.adobe.com
The Federal Reserve Bank of New York will replace its existing trading system, FedTrade, with a new trading platform called FedTrade Plus.
FedTrade Plus will mark a significant technological advancement for the Federal Reserve鈥檚 open market trading operations and enable it to keep pace as market trading practices evolve.
It comes in line with the Fed鈥檚 commitment to responsible technical evolution, security, and resilience.
This transition will begin in the coming weeks and continue through 2025.
The new platform will be implemented across open market operations in phases, beginning with repo and reverse repo operations in early 2025, and later followed by securities lending, treasury outrights, and mortgage-backed securities outright operations.
According to the Fed, the new platform will provide a 鈥渕ore operationally effective trading process鈥� with a number of key features.
These include improved resiliency and security, where the system will use modern cloud technologies and increased cybersecurity measures to provide advanced protection.
It also involves enhanced efficiency, where counterparties look to benefit from improved technical integrations that aim to facilitate smoother interaction across systems and processes.
The third key feature is an accessible interface, where the platform will offer an intuitive interface that simplifies the trade submission process.
To facilitate a smooth transition, mock auctions and small value operations will take place before each set of open market operations move over to FedTrade Plus.
FedTrade Plus will mark a significant technological advancement for the Federal Reserve鈥檚 open market trading operations and enable it to keep pace as market trading practices evolve.
It comes in line with the Fed鈥檚 commitment to responsible technical evolution, security, and resilience.
This transition will begin in the coming weeks and continue through 2025.
The new platform will be implemented across open market operations in phases, beginning with repo and reverse repo operations in early 2025, and later followed by securities lending, treasury outrights, and mortgage-backed securities outright operations.
According to the Fed, the new platform will provide a 鈥渕ore operationally effective trading process鈥� with a number of key features.
These include improved resiliency and security, where the system will use modern cloud technologies and increased cybersecurity measures to provide advanced protection.
It also involves enhanced efficiency, where counterparties look to benefit from improved technical integrations that aim to facilitate smoother interaction across systems and processes.
The third key feature is an accessible interface, where the platform will offer an intuitive interface that simplifies the trade submission process.
To facilitate a smooth transition, mock auctions and small value operations will take place before each set of open market operations move over to FedTrade Plus.
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