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Federal Reserve Bank of New York
Current Issues in Economics and Finance
The Federal Reserve's contingency financing plan for the century date change
Evangeline Sophia Drossos
R. Spence Hilton
Abstract

With the approach of the new millennium last year, many market participants resolved to limit their exposure to Y2K-related risks by cutting back normal trading activities. The Federal Reserve foresaw that the widespread adoption of such a strategy could lead to serious liquidity problems in key financing markets. Consequently, the Fed undertook to create a Standby Financing Facility that would provide securities dealers with a form of backup funding and ease market anxieties about year-end credit conditions.


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Evangeline Sophia Drossos & R. Spence Hilton, "The Federal Reserve's contingency financing plan for the century date change" , Federal Reserve Bank of New York, Current Issues in Economics and Finance, volume 6, issue Dec, 2000.
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Keywords: Year 2000 date conversion (Computer systems) ; Monetary policy - United States ; Liquidity (Economics) ; Stock market ; Securities
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