Standing Repurchase Agreement Facility
a.k.a. SRF, Standing repo facility
A permanent Fed backstop where eligible firms can borrow cash overnight against Treasuries, to stop repo rates from spiking.
The Standing Repurchase Agreement Facility (SRF) is the Fed's always-open emergency tap for the repo market. Eligible banks and dealers can hand over high-quality bonds and borrow cash overnight at a set rate. It was made permanent in 2021, after repo rates went haywire in September 2019.
Because firms can always borrow from the Fed at that rate, it acts as a ceiling on short-term borrowing costs, the counterpart to the ON RRP floor. Heavy use of it is a sign funding markets are under strain.
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