The Governing Council of the European Central Bank (ECB) has decided that, from 6 October 2008 until further notice, all institutions that are eligible to participate in Eurosystem open market operations based on standard tenders and that fulfil additional operational or other selection criteria specified by the respective national central bank will also be eligible to participate in quick tenders, i.e. the tender procedure normally used for fine-tuning operations.According to a report by the WSJ,
The national central banks could announce further details applicable for institutions established in the respective Member States, where it will appear necessary.
At the end of September around 140 institutions were eligible to access quick-tender funds, compared with over 1,700 institutions that were qualified to take part in open-market operations.In another liquidity providing operation the ECB allotted $50 billion in a 3-day tender at a marginal rate of 2.51% which covered 66% of successful bids out of a total of $82.9 billion. The tender matures on Monday.
The euro climbed on the news, and was quoted at $1.3862 in European midmorning trading, well above the $1.3801 open.
Interbank overnight money market rates - the rates at which banks lend to each other - fell, with the overnight rate at 4.10%, down from the 4.375% open, and well below the intraday high of 4.55%.