Tag: Bank Of England

Bank Of England

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.

Carney Expresses Optimism Over FICC Misconduct Measures

In a speech delivered today to the FICC Markets Standards Board (FMSB) in London, Mark Carney, Governor of the Bank of England (BoE), expressed optimism that new measures aimed at preventing misconduct in the FICC markets are having a significant impact. 

These measures, set out two-and-a-half years ago in the Fair and Effective Markets Review (FEMR), are designed to improve confidence in FICC markets after a series of scandals. 

“Multiple factors contributed to a tide of ethical drift in FICC markets. Market standards were poorly understood, often ignored and always lacked teeth. Too many participants neither felt responsible for the system nor recognised the full impact of their actions. Bad behaviour went unchecked, proliferated and eventually became the norm,” noted Carney in his speech.

Sonia Reforms in April 2018 – BoE

The Bank of England has formally announced that its reforms to the Sonia interest rate benchmark will take effect on Monday 23 April 2018.
The reforms, which were announced earlier this year and see Sonia replace Libor as the interest rate benchmark for UK markets, will result in the Bank of England taking on the end-to-end administration, including the calculation and publication of Sonia, broadening the coverage to included overnight unsecured transactions, and the use of a VWAP methodology to calculate the rate.

Regulators Must Keep Up with Fast Markets: BoE’s Salmon

In a speech on Friday, Chris Salmon, executive director, Markets, at the Bank of England, discussed the changing market microstructure, in particular the advent of “fast markets” and stressed it was “incumbent” upon authorities to keep up.
Salmon highlighted three recent flash events in financial markets, the equities market flash crash of 2010, the US Treasuries flash rally in 2014 and last year’s Cable flash crash and while he observed that sharp moves in asset prices are nothing new, “the speed, and the typical near-total reversal” is new.

New COO, Deputy Governor Appointed at BoE

Joanna Place has been appointed as COO at the Bank of England (BoE) and Sir David Ramsden has been named as deputy governor for Markets and Banking at the central bank. Both appointments are effective immediately.

Place has been acting as COO since 1 May, and previously was the executive director of human resources.

The COO reports to the governor and has responsibility for the day-to-day management of the BoE including finance, technology, information and physical security, human resources, property, and procurement. The COO has status and remuneration equivalent to the deputy governors.

Carney Speech Prompts Sterling Slide

The value of sterling slid today as Bank of England (BoE) Governor, Mark Carney, indicated that there would be no immediate adjustment of monetary policy by the central bank.

In a speech delivered at Mansion House in London, Carney declared that “now is not yet the time to begin” monetary adjustment, ruling out the possibility of an interest rate hike.

GBP/USD promptly dropped from 1.2753 at 8am BST to 1.2631 just before 3pm BST in response to Carney’s comments. “Since the prospect of Brexit emerged, financial markets, notably sterling, have marked down the UK’s economic prospects.

Bank of England Releases Money Market Code of Conduct

The financial markets industry has another code of conduct to confirm with after the Bank of England released its new, voluntary, UK Money Markets Code, which sets out the standards and best practice expected from participants in the deposit, repo and securities lending markets.
The Code is underpinned by the key principle that participants should always act in a manner to promote the integrity and effective functioning of these markets. It also outlines six high-level principles encompassing: ethics, governance, risk management, confidentiality, execution and settlement.