Reuters writes "NY Fed to entice market funds into reverse repos". The article says, "The Federal Reserve Bank of New York is planning to include a feature in one of its liquidity-draining schemes that would allow money-market funds to participate without running afoul of new liquidity rules, a fund manager told Reuters on Wednesday. The New York Fed, which is planning to try to drain cash from the financial markets through reverse repurchase agreements with a variety of counterparties, will include a seven-day put agreement alongside its contracts with money-market funds, said Deborah Cunningham, executive vice president and chief investment officer at Federated Investors in Pittsburgh.... The seven-day put would allow funds to liquidate their repo holdings and retrieve cash quickly in the event of an emergency. It would also let money market funds classify their repo agreements with the Fed as short-term cash investments under a new set of rules the Securities and Exchange Commission implemented earlier this year."
