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Auction Operation Step-by-Step Guide

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Reserves Central Term Deposit Facility. Central Bank Central (service mark)

Term Deposit Facility (TDF). Follow this step-by-step guide to learn more about auction operations in the TDF application. February 2014.

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Auction 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: After the notification date and time, the TDF participant can view the results of its tender submission in the TDF application. 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 bid(s). 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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TDF Resource Center

To access the TDF application, click on the button on the Term Deposit Facility Resource Center 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, "Open Offerings: There are no open Term Deposit Facilities at this time."

Note: An additional column, "Interest Paid to Date," exists on the current tab in the new release of TDF implemented on August 25, 2012.

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Submit Tender

Step 1: If an operation is available that you want to participate in, click the "Submit a Tender" button that is found at the bottom of the descriptive information of the Open Offerings.

Note: An additional column, "Interest Paid to Date," exists on the current tab in the new release of TDF implemented on August 25, 2012.

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Submit Tender

Step 2: You will have two options to enter this auction: Non-Competitive (for which you will only enter an amount, and you will receive the Stop-out Rate determined by the auction results), or Competitive (for which you will enter an amount plus an interest rate). Choose whether to submit a Non-Competitive or a Competitive tender by clicking the appropriate button that is found at the bottom of the Auction Tender screen.

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Submit Tender: Competitive

Step 3: If you selected Competitive, then enter an amount and interest rate into one or more rows that appear beneath the Competitive button. Each entry must have a unique interest rate. Entries must be within the defined terms for the operation. The defined terms are found above the Non-Competitive and Competitive buttons. The sum of the bids cannot exceed the maximum award amount.

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Submit Tender: Competitive

Step 4: Click on the "Submit" button to submit the tender.

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Submit Tender: Non-Competitive

Step 3: If you selected Non-Competitive, then enter an amount into the row that appears to the right of "Amount" beneath the Non-Competitive button.

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Submit Tender: Non-Competitive

Step 4: Click on the "Submit" button to submit the tender.

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Submit Tender

Step 5: The following message appears whether you submit a Non-Competitive or Competitive tender: "Please ensure you have sufficient funds in your master account on the Settlement Date for this transaction. Are you sure you wish to submit this tender?" Click on the "OK" button to submit the tender.

Note: If a participant settles term deposits through a correspondent, it should inform the correspondent of its auction awards when the information becomes available.

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Submit Tender

The participant receives confirmation within the Term Deposit Facility application that a tender (whether Competitive or Non-Competitive) has been successfully submitted. A submission number is assigned to the tender for an operation. For example, the message reads, "Submission #13690 for Auction 2628 has been successfully submitted." The participant can click on the "Modify My Tender" button to change or delete its tender prior to the close time indicated for the operation. The participant's Deposit Amount and Interest Rate are TBD (To Be Determined) until the Notification Time arrives.

Note: An additional column, "Interest Paid To Date" exists on the current tab in the new release of TDF implemented on August 25, 2012.

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View Results: Competitive

Prior to maturity, information regarding tenders (including status of Accepted, Deleted, Received, or Rejected) is displayed on the "Current" tab. The participant's Deposit Amount and Interest Rate are displayed. The status is also changed to "Accepted" showing that at least part of the tender was accepted for this TDF operation.

Step 6: Click on the link (for example "A2628") below the "Offering ID" column heading to view the auction results after the Notification Time has passed.

If a participant settles term deposits through a correspondent, it should inform the correspondent of its auction awards.

Note: An additional column, "Interest Paid To Date," exists on the current tab in the new release of TDF implemented on August 25, 2012.

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View Results: Non-Competitive

Prior to maturity, information regarding the tender is displayed on the "Current" tab. The participant's Deposit Amount and Interest Rate are displayed.

Step 6: Click on the link (for example "A2628") below the "Offering ID" column heading to view the auction results after the Notification Time has passed.

If a participant settles term deposits through a correspondent, it should inform the correspondent of its auction awards.

Note: An additional column, "Interest Paid To Date" exists on the current tab in the new release of TDF implemented on August 25, 2012.

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View Results: Competitive

In this example, the participant was awarded a total of $25,000,000,000 at the stop out rate of 0.75%. The award consisted of two winning bids (a full award of $15,000,000,000 and a partial award of $10,000,000,000) and one losing bid (the Rejected amount of $0).

Note: "Pro-ration Percent" appears after Award column for partial awards in the new release of TDF implemented on August 25, 2012.

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View Results: Non-Competitive

In the example, the participant was awarded $5,500,000 at the stop rate of 0.75%.

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Maturity

Step 7: After the term deposit matures, click on the "Matured" tab to view information on matured term deposits and interest earned.

Note: Two additional columns, "Interest Paid To Date" and "Remarks," exist on the matured tab in the new release of TDF implemented on August 25, 2012.

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