Money Market Investor Funding Facility (MMIFF)
Background
The Money Market Investor Funding Facility (MMIFF) was introduced to provide liquidity to U.S. money market mutual funds in order to increase their ability to meet redemption requests and to enhance money market investors' willingness to invest in money market instruments, particularly for terms longer than overnight. The MMIFF was a complement to the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF) and was designed to serve a similar purpose--increasing the liquidity available to MMMFs.
The MMIFF was created by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, which permitted the Board, in unusual and exigent circumstances, to authorize Reserve Banks to extend credit to individuals, partnerships, and corporations. The facility was administered by the Federal Reserve Bank of New York.
The facility was announced on October 21, 2008, and was closed on October 30, 2009. No loans were made under the MMIFF.