The Federal Reserve Bank of New York announced yesterday that it will begin funding purchases of eligible money market instruments through its previously announced Money Market Investor Funding Facility (MMIFF) on or around November 24 – approximately three weeks later than industry participants had expected. In conjunction with the postponement, the Fed has updated its Frequently Asked Questions (FAQs) to provide further information regarding the program.

The delay increases pressure on money market funds to meet investor redemption demands, which have dramatically increased across the sector since the Reserve’s Primary Fund, one of the oldest money market funds in the country, “broke the buck” in September and thereafter announced its liquidation.