FR2420_20250307_omb

Supporting Statement for the
Report of Selected Money Market Rates
(FR 2420; OMB No. 7100-0357)
Summary
The Board of Governors of the Federal Reserve System (Board), under authority
delegated by the Office of Management and Budget (OMB), has extended for three years, with
revision, the Report of Selected Money Market Rates (FR 2420; OMB No. 7100-0357). The
FR 2420 is a transaction-based report that collects daily liability data on federal funds purchased,
selected borrowings from non-exempt entities,1 Eurodollar transactions, and time deposits and
certificates of deposits (CDs) from (1) domestically chartered commercial banks and savings
associations that have $18 billion or more in total assets as well as those that have total assets
above $5 billion but less than $18 billion and meet the activity threshold, (2) U.S. branches and
agencies of foreign banks with total third-party assets of $2.5 billion or more, and (3) significant
banking organizations that are active participants in money markets. The FR 2420 also collects
daily data on Eurodollar transactions from International Banking Facilities (IBFs) of the abovereferenced institutions. The FR 2420 data are used in the publication of the Effective Federal
Funds Rate (EFFR) and Overnight Bank Funding Rate (OBFR) and in analysis of current money
market conditions.
The Board added data items to the FR 2420 reporting form concerning short-term bank
funding from the Federal Home Loan Banks (FHLBs) in the form of secured borrowings known
as advances with one year or less to maturity at origination, as well as interest-bearing deposits
placed by FHLBs without a specified maturity. In addition, the Board added an item to the time
deposits section of the FR 2420 requiring respondents to denote which deposits are brokered
transactions. The Board revised the FR 2420 instructions to add guidance related to submission
of these new data items. Among other instruction revisions, the Board removed references to the
London Interbank Offered Rate (LIBOR) in the instructions to reflect the cessation of U.S. dollar
LIBOR.
The collection of the additional data concerning funding provided by FHLBs to
depository institutions would support the Federal Reserve’s ability to carry out its monetary
policy responsibilities by providing insights into large, key areas of short-term bank funding and
money market conditions that are not currently subject to uniform data collection. With the high
frequency of FR 2420 reporting, the additional data would improve the Federal Reserve’s
monitoring of changes in liquidity conditions and money market interest rates. FHLB advances
are a key source of bank funding, while interest-bearing demand deposits placed by FHLBs
constitute an economically significant amount of intraday and overnight liquidity in the banking
system. The additional data concerning brokered time deposits would allow for more effective
monitoring of the evolution of funding markets involving brokered transactions as opposed to
time deposits from other sources.

1

A selected borrowing from a non-exempt entity is an unsecured borrowing (an unsecured primary obligation
undertaken by the reporting institution as a means of obtaining funds) in U.S. dollars from a counterparty that is a
non-exempt entity as derived from Regulation D, section 204.2(a)(1)(vii)(A).

The collection of the data items is consistent with the FR 2420’s stated purpose “to
monitor market activity in selected money market instruments.” The FR 2420 revisions are
effective with the February 9, 2026, as of date.
The current estimated total annual burden for the FR 2420 is 119,825 hours, and would
increase to 133,825 hours. The revisions would result in an increase of 14,000 hours. The form
and instructions are available on the Board’s public website at
https://www.federalreserve.gov/apps/reportingforms/.
Background and Justification
The Board established the FR 2420 in April 2014 to enhance the Federal Reserve’s
ability to monitor money markets. The Federal Reserve Bank of New York (FRBNY), on behalf
of the Federal Reserve, implements temporary open market operations in money markets at the
directive of the Federal Open Market Committee (FOMC). Transaction-level data on a variety of
money market instruments provides insight into market functioning, allows FRBNY to meet the
FOMC’s policy directive, and supports the publication of the Effective Federal Funds Rate
(EFFR) and the Overnight Bank Funding Rate (OBFR). This information is not available from
other sources.
Description of Information Collection
The FR 2420 is a transaction-based report that collects daily liability data on federal
funds, selected borrowings from non-exempt entities, Eurodollars, and time deposits and
certificates of deposit (CDs). Transactions in these money market instruments are reportable if
they are executed on the report date and are denominated in U.S. dollars, are executed in
amounts of $1 million or more, and are conducted at arm’s length. Reported information includes
the amount of each transaction; the trade date, settlement date, and maturity date of each
transaction; the interest rate for each transaction; and the counterparty type involved in each
transaction. In addition, since time deposits and CDs may have floating interest rates, several
items are collected to better understand their interest rate structure.
Federal Funds Purchased (Part A)
Part A captures data used for the analysis of federal funds market conditions. Federal
funds purchased are unsecured borrowings of the reporting institution’s U.S. offices from a
counterparty that is an exempt entity as defined in Regulation D - Reserve Requirements of
Depository Institutions (12 CFR Part 204).
Eurodollars (Part B)
Eurodollars are an important source of funding for U.S.-based banking offices and the
Federal Reserve monitors and analyzes the Eurodollar market concurrently with its coverage of
the federal funds market. Eurodollars are unsecured liabilities of the reporting institution’s nonU.S. offices. IBFs of reporting institutions must also file a separate FR 2420 Part B.

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Time Deposits and Certificates of Deposit (Part C)
Data on time deposits and CD transactions improve market monitoring capabilities as
they provide otherwise unavailable information. Time deposits and CDs are booked by the
reporting institution and may be evidenced by a negotiable or nonnegotiable instrument, or a
deposit in book-entry form evidenced by a receipt or similar acknowledgement issued by the
bank. Unlike federal funds and Eurodollars, CDs frequently have floating rates. For that reason,
the FR 2420 collects additional data fields for reportable CD transactions that are necessary to
understand the interest rate structure over the life of each CD. These data items are floating or
fixed rate, a step-up indicator, reset period, reference rate and spread information, negotiability,
and embedded options.
Selected Deposits (Part D)
Part D captures short-term wholesale unsecured deposits that are economically equivalent
to federal funds purchased in Part A or Eurodollars in Part B.
Respondent Panel
The FR 2420 panel comprises certain commercial banks, savings associations, U.S.
branches and agencies of foreign banks, IBFs, and significant banking organizations representing
entities actively participating in the federal funds and/or other money markets.2 Commercial
banks and savings associations with $18 billion or more in total assets on the September 30
Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and
FFIEC 051; OMB No. 7100-0036) each year are required to submit the FR 2420 daily for the
following year. Additionally, commercial banks and savings associations with total assets above
$5 billion, but less than $18 billion, and federal funds activity totaling more than $200 million on
two or more days over the preceding three months are included in the reporting panel. These
thresholds currently capture 112 depository institutions, which provide sufficient coverage to
have a statistically representative sample. U.S. branches and agencies of foreign banks are
required to report daily if third-party assets are $2.5 billion or more on the September 30 Report
of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002; OMB
No. 7100-0032). This threshold currently captures the 82 largest U.S. branches and agencies of
foreign banks. IBFs of the above-referenced institutions are required to report daily for
Eurodollars (Part B) only. This requirement currently captures 83 IBFs. There are currently no
institutions deemed a significant banking institution.
The revisions contain no change to criteria for the respondent panel.
Frequency and Time Schedule
The FR 2420 is submitted daily. As the FRBNY uses the data collected from the FR 2420
to calculate the EFFR and OBFR reference rates for the public each business day, daily
2

A significant banking organization is an entity that does not fall within the normal criteria for reporting but,
nonetheless, is a participant in money markets whose data is important to the analysis and monitoring of market
activity.

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submission of the FR 2420 is needed. Daily submission of the data also supports the Federal
Reserve’s daily monitoring responsibilities for money markets and banking system liquidity. Part
of that analysis calculates average rates across products and tenors and follows trends in the
aggregate levels of transactions.
With the changes, there are no changes to existing deadlines for the filing of the FR 2420.
Respondents are directed to file the new Part E concerning FHLB advances by 2:00 p.m. United
States Eastern Time one business day after the report date, which mirrors the existing deadline
for Part C of FR 2420. Respondents are directed to file the new Part F concerning FHLBs’
interest-bearing demand deposits by 7 a.m. United States Eastern Time one business day after the
report date, which mirrors the existing deadline for Parts A, B, and D of FR 2420.
Revisions to the FR 2420
The Board added several fields to the FR 2420 reporting form, with supporting
information added to the FR 2420 instructions, to enhance money market monitoring. The Board
added Part E to the reporting form to collect information on depository institutions’ secured
borrowings via FHLB advances with 1 year or less to maturity at origination. An additional
section of the reporting form, Part F, serves to collect information on rates paid by depository
institutions for certain non-maturity demand deposits by FHLBs. The Board added one new item
in Part C of the reporting form that would denote whether reported time deposits represent
brokered transactions.
As discussed above, the additions to the FR 2420 align with the Board’s monetary policy
mandate. The additions enhance the Federal Reserve’s ability to monitor bank funding and
money markets, especially under changing conditions.
Domestic banks that are FHLB members rely upon FHLB advances, which are loans
secured by collateral, as a key source of funding. Short-term advances with maturities under one
year are a widely used alternative to the other wholesale money market sources that are already
subject to FR 2420 reporting. The Federal Reserve currently lacks the ability to monitor advance
borrowings by all banks subject to FR 2420 reporting with data on the interest rates paid on
advances or on dollar volumes of borrowings at a higher frequency than quarterly. In addition,
the Federal Reserve currently lacks the ability to monitor volumes and rates for FHLBs’ interestbearing deposits. These deposits represent a significant dollar volume as compared to the other
unsecured funding types currently subject to FR 2420 data collection.
Reporting Form Revisions
The Board added items to the FR 2420 reporting form to collect information on brokered
deposits, short-term FHLB advances, and interest-bearing non-maturity deposits placed by
FHLBs.
The Board added a field to the existing Part C of FR 2420 to denote which reported time
deposits represent brokered transactions.

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The new Part E of the reporting form concerns FHLB advances with an original maturity
of one year or less. The reporting form fields in Part E would be similar to other data for term
instruments reported on the FR 2420. Specifically, covered institutions would be required to
report the dollar amount, origination date, settlement date, maturity date, interest rate, day-count
convention, the interest rate adjusted for estimated FHLB dividends, whether the advance is
fixed- or floating-rate, whether the advance is amortizing, and whether there are embedded
options. For floating-rate advances, the spread, reference rate, and reset period would be
required. Respondents would report on each business day their outstanding FHLB advances with
an original maturity of one year or less.
The new Part F of the reporting form concerns interest-bearing demand deposits from
FHLBs. The additional reporting form fields in Part F include the dollar amount (i.e., account
balance), trade date, interest rate, and day-count convention, reported for each business day.
Instruction Revisions
Revised instruction changes provide guidance to covered institutions on how to report the
revised items pertaining to brokered deposits, FHLB advances, and deposits by FHLBs. Specific
reporting instruction sections are included for FHLB advances and demand deposits by FHLBs,
and related definitions are added to the glossary.
Revised additional instructions for time deposits in Part C include directions to specify a
pre-set value for whether a time deposit transaction is brokered or not. Brokered deposits follow
the existing definition in the FR 2420 glossary. In addition, references to LIBOR among
reference rates in Part C are removed in the revisions, as the production of U.S. dollar LIBOR
will have ceased by the proposed implementation date for the revisions.
The instructions regarding FHLB advances in Part E are generally consistent with those
for other parts of the FR 2420. For FHLB advances with under one year to maturity at
origination, respondents are directed to report the dollar amount of the advance, date on which
the advance is originated, date on which funds settle, interest rate, interest rate adjusted for
estimated FHLB dividends received by the institution, interest-rate spread for floating-rate
advances, and maturity date of the advance. The instructions specify pre-set values for the
interest rate’s day-count convention, whether the interest rate is fixed or floating, reset period for
floating-rate advances, reference rate used for floating-rate advances, whether the advance is
amortizing or non-amortizing, and any embedded options in the advance. Institutions are directed
to report outstanding advances each business day.
The instructions pertaining to the new Part F specify that only interest-bearing demand
deposits by FHLBs should be reported. The term “demand deposits” is defined in the glossary.
Instructions are provided directing institutions to report the dollar amount (i.e, end-of-day
account balance in dollars), trade date, interest rate, and day-count convention for each business
day.

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Public Availability of Data
No data for specific reporting institutions related to this information collection is made
available to the public. The FRBNY uses the aggregated data from Parts A, B, and D of the
FR 2420 to publish the EFFR, OBFR, and associated aggregated statistics on its public website
each business day.
Legal Status
The FR 2420 is authorized by section 11 of the Federal Reserve Act (FRA) and section 7
of the International Banking Act of 1978 (IBA). Section 11 of the FRA authorizes the Board to
require reports from member banks as it may deem necessary and authorizes the Board to
prescribe reports of liabilities and assets from depository institutions to enable the Board to
discharge its responsibility to monitor and control monetary and credit aggregates (12 U.S.C. §
248(a)). Further, pursuant to section 7(c)(2) of the International Banking Act of 1978, the Board
may also require U.S. Branches and agencies of foreign banks to report certain information under
the FRA (12 U.S.C. § 3105(c)). The obligation to respond to the FR 2420 is mandatory.
The FRBNY uses aggregate data from the FR 2420 to publish the EFFR, OBFR, and
associated statistics daily. The information provided by individual respondents to the FR 2420 is
nonpublic commercial or financial information, which is both customarily and actually treated as
private by the respondents. Responses to the FR 2420 are therefore accorded confidential
treatment pursuant to exemption 4 of the Freedom of Information Act (5 U.S.C. § 552(b)(4)).
Consultation Outside the Agency
There has been no consultation outside the Federal Reserve System.
Public Comments
On September 30, 2024, the Board published an initial notice in the Federal Register (89
FR 79592) requesting public comment for 60 days on the extension, with revision, of the
FR 2420. The comment period for this notice expired on November 29, 2024. The Board did not
receive any comments. The Board adopted the extension, with revision, of the FR 2420 as
originally proposed. On February 5, 2025, the Board published a final notice in the Federal
Register (90 FR 9033).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR 2420 is
119,825 hours, and would increase to 133,825 with the revisions. The Board estimates that the
average hours per response would increase by 0.5 hours for commercial banks, savings
associations, and significant banking organizations. The burden for U.S. branches and agencies
of foreign banks and IBFs would not change. These reporting requirements represent
approximately 1.9 percent of the Board’s total paperwork burden.

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Estimated Estimated
Estimated
number of
annual
average hours
respondents3 frequency per response

FR 2420
Current
Commercial banks, savings
associations, and significant
banking organizations
U.S. branches and agencies of
foreign banks
International Banking Facilities
Current Total
Proposed
Commercial banks, savings
associations, and significant
banking organizations
U.S. branches and agencies of
foreign banks
International Banking Facilities
Proposed Total

Estimated
annual burden
hours

112

250

2.0

56,000

82
83

250
250

2.0
1.1

41,000
22,825
119,825

112

250

2.5

70,000

82
83

250
250

2.0
1.1

41,000
22,825
133,825

Change

14,000

The estimated total annual cost to the public for the FR 2420 is $8,369,776, and would
increase to $9,347,676 with the revisions.4
Sensitive Questions
This information collection contains no questions of a sensitive nature, as defined by
OMB guidelines.

3

Of these respondents, none are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $850 million in total assets). Size standards effective March 17, 2023. See
https://www.sba.gov/document/support-table-size-standards.
4
Total cost to the responding public is estimated using the following formula: total burden hours, multiplied by the
cost of staffing, where the cost of staffing is calculated as a percent of time for each occupational group multiplied
by the group’s hourly rate and then summed (30% Office & Administrative Support at $23, 45% Financial
Managers at $84, 15% Lawyers at $85, and 10% Chief Executives at $124). Hourly rates for each occupational
group are the (rounded) mean hourly wages from the Bureau of Labor Statistics (BLS), Occupational Employment
and Wages May 2023, published April 3, 2024, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are
defined using the BLS Standard Occupational Classification System, https://www.bls.gov/soc/.

7

Estimate of Cost to the Federal Reserve System
The estimated cost to the Federal Reserve System for collecting and processing the
FR 2420 is $655,500.

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