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How is TOP related to TSLF auctions?

April 26, 2017auctions tslf

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How is TOP related to TSLF auctions?

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TOP offers options on short-term TSLF loans at a future date. Option holders have the opportunity to exercise the option and borrow up to the amount awarded in the TOP auction at a fixed rate or allow the option to expire without a claim. Loans made through TOP are shorter in term than the 28-day TSLF loans. In most cases, the term and settlement of the loan will not coincide with regularly-scheduled TSLF auctions.