7 counterparties take $877.000m at the Fed reverse repo operation

7 counterparties take $877.000m at the Fed reverse repo operation

Seven Counterparties Access $877 Million via Fed Reverse Repo Operation

On February 23, 2026, the Federal Reserve’s reverse repo (RRP) facility saw participation from seven major financial institutions, which collectively secured $877 million in short-term liquidity. The RRP operation remains a critical tool for managing overnight funding in the U.S. financial system, particularly for money market funds and institutional investors seeking secure, low-risk assets according to the Federal Reserve.

The counterparties involved in the operation included well-established asset managers and banking entities. These participants are part of the Federal Reserve’s approved list of RRP counterparties, which includes firms such as BlackRock, Charles Schwab, J.P. Morgan, and T. Rowe Price, among others as documented in the RRP list. While specific allocations to each institution were not disclosed, the operation underscores continued demand for Fed-backed liquidity amid evolving market conditions.

Reverse repo operations allow eligible counterparties to temporarily park excess cash with the Fed in exchange for collateralized overnight loans. This mechanism helps stabilize short-term interest rates and ensures liquidity in money markets. The recent $877 million infusion reflects ongoing reliance on the RRP by institutional investors, particularly as money market funds and treasury reserves seek to optimize cash management strategies according to Federal Reserve data.

The list of approved counterparties, last updated in April 2015, includes a diverse range of firms, from large asset managers like Vanguard and Fidelity to regional players such as U.S. Bancorp and Northern Trust. Participation in RRP operations typically aligns with each institution’s liquidity needs and regulatory requirements.

Market analysts note that Fed RRP activity remains a barometer for broader financial system health, with higher participation often indicating tighter liquidity conditions or increased caution among market participants. As the Fed continues to navigate post-pandemic monetary policy adjustments, the RRP facility will likely remain a cornerstone of short-term capital management for institutional investors according to Federal Reserve analysis.

(https://www.newyorkfed.org/markets/rlist_130415.html): New York Fed, Reverse Repo Counterparties List (April 2015).