In accordance with the FOMC's authorization and continuing directive, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York plans to adjust the Standing Repo Facility (SRF) to conduct a daily morning overnight SRF operation on each business day beginning Thursday, June 26, 2025. These daily morning SRF operations will be conducted from 8:15 to 8:30 a.m. Eastern Time (ET), and will facilitate earlier settlement of awarded positions on the Bank of New York (BNY) tri-party repo platform. The regularly scheduled afternoon SRF operations will continue to take place on each business day from 1:30 to 1:45 p.m. ET.
The additional daily morning SRF operations are intended to further enhance the effectiveness of the SRF in its ability to support the effective implementation of monetary policy and smooth market functioning. The morning SRF operations will allow for the execution and settlement of SRF trades earlier each day, which, based on recent technical exercises and feedback from primary dealers and SRF counterparties, may better align with the timing of the funding needs of some SRF counterparties.
Operational parameters for the planned SRF operations beginning on June 26, 2025 are shown below. The current aggregate SRF operation limit of $500 billion will continue to apply to the combined daily operations. Each day, beginning June 26, 2025, the afternoon SRF operation will have an aggregate operation limit of $500 billion less the accepted amount from the morning SRF operation. The Desk plans to announce the aggregate afternoon SRF operation limit each day shortly after the morning SRF operation is completed on the Repo Operations webpage.
To facilitate earlier settlement of awarded positions from these daily morning SRF operations, the Desk will position necessary funds on the BNY tri-party repo platform typically within thirty minutes of the operation close time on a best-efforts basis. Actual settlement timing will vary and depends in part on the delivery of securities. The repurchase of securities on the maturity date will take place on the BNY tri-party repo platform in the afternoon.
| Standing Repo Facility Parameters (EXPECTED TO BE IN EFFECT JUNE 26, 2025) |
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| Schedule | Every business day from 8:15 to 8:30 a.m. ET, unless otherwise stated | Every business day from 1:30 to 1:45 p.m. ET, unless otherwise stated |
| Aggregate Operation Limit | $500 billion | $500 billion less the accepted amount from the morning operation |
| Proposition Limit | Two propositions per eligible security type per operation, subject to a $20 billion per proposition limit | |
| Minimum bid rate | The SRF bid rate specified by the FOMC. Also available in the SRF Frequently Asked Questions (FAQs). | |
| Settlement | Same-day settled. BNY tri-party repo conventions apply. Funds will typically be delivered within thirty minutes following the operation close time. | Same-day settled. BNY tri-party repo conventions apply. |
| Eligible counterparties | Primary dealers and SRF counterparties, which include depository institutions | |
| Eligible securities | U.S. Treasuries, agency debt, and agency mortgage-backed securities (for additional details on security types see Repo Securities Schedule) | |
Additional information on the SRF can be found on the Repo and Reverse Repo Agreements page or in the SRF FAQs.
