Tag: Bank Of England

Bank Of England

FX Code Seeks to Drown Out Drumbeat of Scandal

Following on the heels of the FX Fix scandal that rocked the FX industry over the course of the past few years, the Bank for International Settlements (BIS) set up a working group to draw up a Global Code of Conduct for FX market participants, by FX market participants.

Several of those involved in crafting the Code addressed attendees of Profit & Loss Forex Network London to discuss some of the adherence and compliance mechanisms drafted into the Code.

Speaking at the event, Chris Salmon, executive director, Markets, at the Bank of England (BoE), said: “The drumbeat of scandal in relation to the FX industry created issues for market practitioners, but it also became a concern for the central banks of the world.”

A Short Stay: BoE Deputy Governor Resigns After Two Weeks

Just two weeks after officially taking up the position, the Bank of England’s deputy governor for Markets and Banking, Charlotte Hogg, has resigned.
Hogg, who was also chief operating officer of the Bank of England, resigned because she failed to disclose her brother’s position at Barclays, an institution she would be overseeing. She had apparently tried to resign previously over the matter, but her resignation was knocked back by BoE Governor Mark Carney and Chair of the Court Anthony Hapgood.

The DNA of a Flash Crash

A new paper uses trade repository data to forensically analyse the Swiss franc de-pegging and while Colin Lambert finds its conclusions are familiar, the paper offers other insights

The story is familiar to anyone in the foreign exchange business – on January 15, 2015, the Swiss National Bank shocked the markets with the announcement it was abandoning its Swiss franc ceiling to the euro at 1.2000. Chaos ensued as EUR/CHF collapsed over 40% before recovering sharply, after which the industry was left to rake over the ashes of what was to many a debacle.

Bank of England Appoints Deputy Governor for Markets

Charlotte Hogg has been named deputy governor for Markets and Banking at the Bank of England.
The appointment is effective from 1 March and for a renewable term of five years.
Charlotte Hogg will succeed Minouche Shafik, who will leave at the end of February. In addition to taking on the role of deputy governor, Hogg will continue in her current role as chief operating officer.
In the role Hogg will have specific responsibility for managing the balance sheet of the bank.

BoE’s Salmon Expects More Surprise Flash Moves in FX

Chris Salmon, executive director, markets, at the Bank of England (BoE), said in a speech today that, while he has confidence in the ability of the FX market to process identifiable risks, he expects to see more surprise flash moves in this asset class.

Speaking at the OMFIF City Lecture in London, Salmon looked at the depreciation of sterling following the UK Brexit referendum result and the sterling “flash crash” that took place on October 7, 2016, to provide insight into how the market is functioning.

Steady as She Goes: BoE Leaves Rates Unchanged

The Bank of England’s (BoE) Monetary Policy Committee (MPC) today voted unanimously to maintain Bank Rate at 0.25%.

The Committee also decided to continue with the programme of sterling non-financial investment-grade corporate bond purchases totalling up to £10 billion, financed by the issuance of central bank reserves.

Additionally, it will continue with the programme of £60 billion of UK government bond purchases to take the total stock of these purchases to £435 billion, financed by the issuance of central bank reserves.

No Surprises: BoE Holds Rates Steady

The Bank of England’s (BoE) Monetary Policy Committee (MPC) has voted unanimously to maintain the measures it introduced in its Brexit-induced stimulus package announced in August.

This means that it will hold the Bank Rate at 0.25% and continue with the programme of sterling non-financial investment-grade corporate bond purchases totalling up to £10 billion, financed by the issuance of central bank reserves.

The MPC also voted unanimously to continue with the programme of £60 billion of UK government bond purchases to take the total stock of these purchases to £435 billion, financed by the issuance of central bank reserves.

Markets Head to Leave Bank of England

The Bank of England has announced that its deputy governor for markets and banking, Minouche Shafik, will leave at the end of February 2017.
She is leaving to take up the post of director at the London Schools of Economics, having joined the bank in 2014 from the IMF.
“We will say farewell to Minouche with gratitude and regret,” says Bank of England governor Mark Carney. “She helped drive vital reforms on the domestic and international stages, perhaps most prominently in the successful completion of the Fair and Effective Markets Review

Analysts Predict Further Rate Cuts After BoE Stimulus

Expect further rate cuts from the Bank of England (BoE) as Governor Mark Carney shows that he is willing to let sterling continue depreciating, say analysts. “The package of stimulus announced by the Bank of England has prompted a significant market reaction,” notes Adam Chester, head of economics at Lloyds Commercial Banking. He adds: “Immediately […]