I really liked this post and have already learned a lot reading it; the link to JP Koning's old post was also really helpful. Thanks very much!

I have a question though, about the process you describe as "securities [being] moved from other branches to New York, in anticipation of a large need for collateral there to place in overnight reverse." SOMA purchases are carried out by FRBNY on behalf of the FOMC, and then as JPK tells us "the Board allocates SOMA holdings to district Federal Reserve banks". I'm curious about how this happens. Made-up example:

A non-financial corporation somewhere in the Richmond Fed's district banks with Bank of America. BofA gets shy about their non-operating deposits and pushes the NFC's deposit out, which it places with a MMF in NY, which then deposits that money in ON RRP. There's a reduction in reserves held at the Richmond Fed, but there's no transfer of reserves via the ISA between the Richmond Fed and FRBNY because there's been no transaction with a NY bank. However there might need to be a transfer of securities to FRBNY to take up the other side of the reverse.

My Qs: does the securities transfer require a directive from the Board for other regional banks to chip in securities to FRBNY? If so, this seems rather unlike reserves transfers which seem to happen 'automatically' in ordinary inter-regional payment settlement. & secondly, would the Richmond Fed be the one lending securities against ISA deposits (ie SOMA holdings), or whichever bank seems most capable of doing the lending? Generally: how are these securities transfer decisions made, and by who?

Sorry for the long comment and many ?s; thanks again for the post.

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