The Federal Reserve Bank of New York issued yet another a "Statement to Revise the Terms of the Overnight Fixed-Rate Reverse Repurchase Agreement Operational Exercise" Friday. "As noted in the October 29, 2014, Statement Regarding Reverse Repurchase Agreements, the Open Market Trading Desk at the Federal Reserve Bank of New York has been conducting daily overnight reverse repo (ON RRP) operations as part of an operational readiness exercise and intends to periodically adjust the offering rate of these operations over the next month. Beginning with the operation to be conducted on Monday, November 17 the offering rate of ON RRP operations will be increased from three basis points to seven basis points. As noted in the October 29 statement, the Desk plans to maintain the offering rate at seven basis points through the operation to be conducted on Friday, November 28. All other terms of the exercise will remain the same. As an operational readiness exercise, this work is a matter of prudent planning by the Federal Reserve. These operations do not represent a change in the stance of monetary policy and no inference should be drawn about the timing of any future change in the stance of monetary policy." In other news, G.X. Clarke & Co., a boutique government bond dealer with a presence in the money markets was acquired by INTL FCStone Inc. The press release states, "INTL FCStone Inc., today announced it has reached agreement to acquire G.X. Clarke & Co., an SEC-registered institutional dealer in fixed-income securities. The closing of the transaction is subject to conditions precedent, including regulatory approvals, and is expected to occur early in 2015. Following the acquisition, G.X. Clarke & Co. will continue to be managed by six of its current partners, while the firm's founders, Mr. Griffith X. Clarke, Mr. Daniel J. Lennon and Mr. David G. Gordon, will retire.... As a wholly-owned subsidiary of INTL FCStone Inc. it will be renamed INTL FCStone LP, offering the same products and services as it currently does, with the additional support of INTL FCStone Inc.'s larger capital, operational resources and product range."
