Tag: Bank Of England

Bank Of England

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.

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.