Federal Reserve Alert! The following have been added to the list of Standing Repo Facility Counterparties, effective March 22: Canadian Imperial Bank of Commerce, New York Branch and Natixis New York Branch.

by Dismal-Jellyfish

Source

Standing Repo Facility (SRF) counterparties each expressed an interest to be an eligible SRF counterparty under the criteria published by the New York Fed. Inclusion on this list simply means that, should the New York Fed conduct daily overnight repo transactions under a Standing Repo Facility, those listed would be eligible to participate.

It does not mean that any listed eligible SRF counterparty is eligible for any other program or transactional relationship with the New York Fed.

In July 2021, the Fed announced the establishment of a domestic standing repurchase agreement (repo) facility (SRF). The SRF serves as a backstop in money markets to support the effective implementation of monetary policy and smooth market functioning.

The SRF allows the eligible counterparties above to borrow from the Fed against eligible collateral for a fixed rate.

An SRF is also a facility that offers loans, but to a wider set of counterparties and against a more ‘restrictive list of eligible collateral’. The current SRFs offer loans to primary dealers and foreign central banks against certain credit risk free collateral.