Tag: Bank Of England

Bank Of England

Central Bank Group to Assess the Case for Digital Currencies

Six central banks, along with the Bank for International Settlements (BIS), have created a group to assess the potential use cases for a central bank digital currency (CBDC) in their home jurisdictions. The central banks involved in the group are: the Bank of England (BoE), the Bank of Japan (BoJ), the European Central Bank (ECB), […]

UK Ups the Ante on Libor Transition

The Bank of England and the Financial Conduct Authority (FCA) have redoubled their efforts to get what appears to be reluctant financial markets participants to move away from using Libor as a benchmark, citing 2020 as a “critical” year for the transition process as markets move towards the end of Libor in 2021. In a […]

In the FICC Of It

The podcast is back for 2020 and Colin Lambert and Galen Stops immediately try to dampen new year’s spirits with a look at what was a pretty poor 2019 for the FX platforms. On a more positive note, Lambert thinks that 2020 could be a breakout year for two services in the FX industry as […]

And Another Thing…

The issue of the Bank of England’s news conferences being “hacked” raises several questions, but most prominently, what is different about someone paying for a faster feed from such an event, to someone paying for co-location – or even building microwave towers to get data quicker? In December it was reported by The Times that […]

And Finally…

This column is going to sound like it was written for a journal offering something to the left of Stalinism, but some things need to be said and asked. So let’s ask the question – is the UK’s Serious Fraud Office’s dropping of the Libor investigation yet another example of how senior managers are getting […]

Central Banks Highlight Value, Embrace, Fintech

Two major central banks have signalled their increased engagement with the fintech industry with the Bank of England publishing a detailed report in its latest Quarterly Bulletin into the potential for fintech and the Federal Reserve Bank of New York establishing a Fintech Advisory Group.
In its report, the Bank of England stresses that the implications of fintech as part of the wider shift to a digital economy are only beginning to be realised, but says the potential is “substantial”.

BoE, ESMA Prepare for Brexit No-Deal with MoU

The Bank of England and European Securities and Markets Authority (ESMA) have announced that they have agreed Memoranda of Understanding (MoUs) regarding cooperation and information-sharing arrangements with respect to central counterparties (CCPs) and central securities depositories (CSDs).
The MoUs follow the adoption by the European Commission in December 2018 of temporary equivalence decisions on the future UK legal and supervisory framework for UK CCPs and CSDs.
The Commission’s implementing acts would come into effect in the result of a no-deal Brexit. In that scenario, they would allow UK CCPs and CSDs to be recognised by ESMA from 30 March 2019, and therefore continue to provide services respectively to EU clearing members, trading venues and also provide notary and settlement services for securities issued under EU law.
The MoUs will also only take effect in the event of a no-deal Brexit.

Regulators Welcome EC’s Recognition of UK CCPs

The Bank of England, European Securities and Markets Authority (ESMA), and the US Commodity Futures Trading Commission (CFTC) have all welcomed the decision by the European Commission (EC) to adopt a temporary equivalence regime for central counterparties (CCPs) and Central Securities Depositories (CSDs).
ESMA says it supports continued access to UK CCPs, in order to limit the risk of disruption in central clearing and to avoid any negative impact on the financial stability of the EU. It adds it aims to recognise UK CCPs in a timely manner, as long as four recognition conditions under Article 25 of EMIR are met.

UK Gets New Libor Transition Head

The Bank of England and the UK’s Financial Conduct Authority (FCA) have announced the appointment of Tushar Morzaria as the new chair of the Sterling Risk Free Reference Rates Working Group.
The group was established in 2015 to implement the Financial Stability Board’s recommendation to develop alternative risk-free rates (RFRs) for use instead of Libor-style reference rates. In April 2017, the Working Group recommended the Sonia benchmark as their preferred RFR and since then has been focused on how to transition to using Sonia across sterling markets.

Bank of England Turns to Fintech for Atomic Settlement

The Bank of England says it is looking to explore synchronisation of payments in its RTGS (Real Time Gross Settlement) service, including cross border payments relating to international currency transactions.
In a release the Bank says it believes that this functionality could provide an opportunity to reduce cost and risk, improve efficiency, and support innovative new methods of settlement. “We are now seeking to work with a small group of organisations to further explore the potential for this functionality,” it states.