Definition
A Fed backstop facility that provides overnight repo funding to primary dealers and eligible banks, acting as a ceiling for repo rates.
Launched in 2021, the SRF allows counterparties to borrow cash against Treasury collateral when market repo rates spike. Usage above zero signals genuine funding stress — institutions are paying the Fed's penalty rate because they can't find cheaper funding elsewhere. SRF is part of the Funding/Plumbing tier (30% weight) in the DLI model. Usage is rare but highly informative.