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.
To facilitate earlier settlement, the NY Fed’s 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.