Tag: Bank Of England

Bank Of England

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.

Bank of England Launches Sonia Transition Consultation

The Bank of England’s Working Group on Sterling Risk Free Reference Rates, which is tasked with leading the transition away from Libor to term Sonia rates, has launched a consultation process to help drive the evolution, which is intended to be complete by the end of 2021.
The work is part of a global effort to shift interest rate benchmarks away from the scandal-ridden mechanisms such as Libor, Euribor and Tibor, has been launched at a time when attention on the reform process is ratcheting up.

FSB: Cryptoassets Not a Risk to Financial Stability

In a new report to the G20, the Financial Stability Board (FSB) has concluded that “cryptoassets do not pose a material risk to global financial stability at this time”.

While this is a welcome boost for the crypto industry, the FSB does make clear that these assets should be vigilantly monitored by authorities going forward.

As such, the FSB has requested that the Standing Committee on Assessment of Vulnerabilities (SCAV) and the Committee on Payments and Market Infrastructures (CPMI) work jointly to develop a framework for monitoring the financial stability risks related to cryptoassets with a focus on identifying potential metrics that can be used to measure these risks.

Bank of England Implements Sonia Reforms

The Bank of England says it has implemented its reforms to the Sonia Interest rate benchmark.
The bank says its aim in reforming Sonia – the Sterling Overnight Index Average – is to strengthen a benchmark which is considered critical for the sterling financial markets. Previously, the benchmark was based on a market for brokered deposits, which the Old Lady says, has limited transaction volumes.
The new benchmark now captures a broader scope of overnight unsecured deposits, by including bilaterally negotiated transactions alongside brokered transactions.

BoE Names Churm as Head of FX Division

Rohan Churm has been appointed as head of the FX division at Bank of England (BoE), succeeding Rebecca Jackson.

A spokesperson for the BoE declines to comment on the news, but Profit & Loss understands that Churm took on this new role late last year.

Prior to this, Churm was the head of the Stress Testing Strategy Division at the BoE.  The division was created in 2014 and is responsible for the delivery of stress tests and development of the stress testing framework.

The October 2015 paper, “The Bank of England’s Approach to Stress Testing the UK Banking System”, set out the main features of the Bank’s stress-testing framework to 2018.

Salmon Steps Down from Bank of England, GFXC

Chris Salmon, executive director, markets, at the Bank of England and chair of the Global Foreign Exchange Committee is stepping down to pursue an opportunity in the private sector.
Although there has been no formal announcement from the Bank of England, the GFXC says in a release that Simon Potter, executive vice president of the Federal Reserve Bank of New York, will act as interim chair of the committee with immediate effect. A new chair will be elected at the next GFXC meeting, to be held on 27 June 2018 in Johannesburg.

Carney: Cryptos Pose No Risk to Financial Stability

In a speech delivered today, Bank of England Governor, Mark Carney, stated that crypto-assets don’t currently pose a risk to the stability of financial markets, even as he declared that cryptocurrencies are “failing” as a form of money.

Speaking at the inaugural Scottish Economics Conference at Edinburgh University on the subject of the future of money, Carney’s speech was heavily focused on cryptocurrencies.

Addressing the question of how well cryptocurrencies fulfill the traditional role of money, Carney argued that the answer has to be judged against the functioning of the entire cryptocurrency ecosystem. This ecosystem includes exchanges that enable the buying and selling of cryptocurrencies, miners who create new coins and verify transactions and the wallet providers who effectively offer custody services.

Bank of England Commits to Three Codes of Conduct

The Bank of England has today issued Statements of Commitment to the FX Global Code, the UK Money Markets Code and Global Precious Metals Code.
The Bank says that in issuing the statements, it is demonstrating that it is committed to adhering to the principles of these Codes when acting as a market participant in the relevant markets, and that its internal practices and processes are aligned with the principles of the Codes.
“The principles of these Codes are important in promoting the integrity and effective functioning of these respective markets,” it states.

Cox to Join BNP Paribas

Profit & Loss understands that Chris Cox has left the Bank of England and is joining BNP Paribas in London.
Cox is believed to be joining the bank in a new role leading the bank’s response to the FX Global Code of Conduct, ensuring it fulfils its intended Statement of Commitment to the Code and strengthening internal procedures to ensure compliance with the Code’s principles.
Cox has been at the Bank of England for nine years, starting as an FX and money market trader and analyst.