WASHINGTON: The Federal Reserve announced on Wednesday it will establish separate domestic and international standing repo facilities to backstop money markets during times of stress.
The domestic standing repo facility, or SRF, will conduct daily overnight repo operations against Treasury securities, agency debt securities and agency mortgage-backed securities.
Through the facility for foreign and international monetary authorities, known as the FIMA repo facility, the U.S. central bank will enter into overnight repo agreements as needed with foreign official institutions against their holdings of Treasury securities held at the New York Fed.
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