System Open Market Account Law and Legal Definition

According to 12 CFR 270.2 [Title 12 -- Banks and Banking; Chapter II -- Federal Reserve System; Subchapter B -- Federal Open Market Committee; Part 270 -- Open Market Operations of Federal Reserve Banks; Regulations Relating to Open Market Operations Of Federal Reserve Banks], System Open Market Account means “the obligations acquired pursuant to authorizations and directives issued by the Committee and held on behalf of all Federal Reserve banks.”