Matched Sale-Purchase Agreement - MSPA

An arrangement whereby the Federal Reserve sells government securities (U.S. Treasuries) to an institutional dealer or the central bank of another country with the contractual agreement to purchase the security back within a short period of time, usually less than two weeks. The security is bought back at the same price at which it was sold, and decreases banking reserves during the term of the matched sale-purchase agreement.

This is also known as a "system MSP".

This is a rarely-used method of temporarily decreasing reserves and securities holdings, and is done to slightly prohibit market liquidity for the term of the MSP. This financial arrangement is different than the standard open-market operations (such as selling Treasuries to investors) where actions done by the Federal Reserve make permanent changes to banking reserves and securities levels.


Investment dictionary. . 2012.

Look at other dictionaries:

  • matched sale-purchase agreement — MSP A device used by the US Federal Reserve in which it sells money market instruments for immediate effect and couples the sale with the forward purchase of the same instrument, to facilitate the distribution of reserves of the banking system …   Big dictionary of business and management

  • matched sale purchase transactions — transactions in which the Federal Reserve sells a government security to a dealer or a foreign central bank and agrees to buy back the security to a dealer or a foreign central bank and agrees to buy back the security on a specified date (usually …   Financial and business terms

  • Repurchase agreement — Better known as Repurchase agreements (RPs or repos), a Sale and Repurchase Agreement has a borrower (seller/cash receiver) sell securities for cash to a lender (buyer/cash provider) and agree to repurchase those securities at a later date for… …   Wikipedia

  • СОГЛАШЕНИЕ ПО УРАВНОВЕШИВАНИЮ ПОКУПКИ-ПРОДАЖИ — (matched sale purchase agreement, MSP) Механизм, используемый Федеральной резервной системой США, призванный облегчить распределение резервов банковской системы, когда она продает инструменты денежного рынка в целях получения немедленного эффекта …   Финансовый словарь

  • MSP — Abbreviation for matched sale purchase agreement …   Big dictionary of business and management

  • репорт, соглашение о продаже ценных бумаг с последующим выкупом — Соглашение между покупателем и продавцом обычно государственных ценных бумаг США, согласно которому продавец обязуется приобрести эти же ценные бумаги по согласованной цене и в указанный момент времени. Соглашения о продаже с последующим выкупом… …   Финансово-инвестиционный толковый словарь

  • international trade — Introduction       economic transactions that are made between countries. Among the items commonly traded are consumer goods, such as television sets and clothing; capital goods, such as machinery; and raw materials and food. Other transactions… …   Universalium

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • France — /frans, frahns/; Fr. /frddahonns/, n. 1. Anatole /ann nann tawl /, (Jacques Anatole Thibault), 1844 1924, French novelist and essayist: Nobel prize 1921. 2. a republic in W Europe. 58,470,421; 212,736 sq. mi. (550,985 sq. km). Cap.: Paris. 3.… …   Universalium

  • Business and Industry Review — ▪ 1999 Introduction Overview        Annual Average Rates of Growth of Manufacturing Output, 1980 97, Table Pattern of Output, 1994 97, Table Index Numbers of Production, Employment, and Productivity in Manufacturing Industries, Table (For Annual… …   Universalium

  • Computers and Information Systems — ▪ 2009 Introduction Smartphone: The New Computer.       The market for the smartphone in reality a handheld computer for Web browsing, e mail, music, and video that was integrated with a cellular telephone continued to grow in 2008. According to… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.