How will the TAF Auctions be conducted?
In an Announcement of an Auction, the Federal Reserve will announce, among other things: the Offering Amount of TAF Advances to be auctioned, the term of the Advance, a Minimum Bid Rate, Minimum Bid Amount, Maximum Bid Amount (per institution), and other Auction parameters. The Announcement also may specify information regarding the Auction cycle, including the Bid Submission Date and time period (Opening Time and Closing Time) when Bids may be submitted. Each Participant will be able to submit no more than two Bids to its Local Reserve Bank. After the Closing Time, the Federal Reserve will allocate TAF Advances using a single-price auction format. Federal Reserve staff will order Bids from the highest to lowest rate. Bids will be accepted starting with the highest rate submitted, down to successively lower rates, until the Offering Amount of TAF Advance for the Auction has been allocated or until the Minimum Bid Rate is reached (whichever occurs first). The lowest accepted interest ra
