July 28 (Reuters) - The Federal Reserve announced on Wednesday that it will establish two standing repo facilities, one domestic and one for foreign and international monetary authorities, 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, with a maximum operation size of $500 billion.
Through the foreign repo facility, or FIMA, the Fed will enter into overnight repo agreements as needed with foreign official institutions against their holdings of Treasury securities held at the New York Fed. (Reporting by Jonnelle Marte Editing by Chris Reese)
