The Federal Reserve is working on eliminating the structural instability of the tri-party repo system, said William Dudley, the president of the New York Federal Reserve.

Dudley said the Fed was working with a broad range of private-sector participants, including dealers, clearing banks, and tri-party repo investors to eliminate the structural instability of the tri-party repo system so that tri-party borrowers are less vulnerable to runs. He said exactly how the mechanics of the tri-party repo