Bank of England Operations
The Sterling Money Markets are regulated by the Bank of England via its money market operations. The Bank’s involvement in financial markets is centred around implementing monetary policy and maintaining financial stability. The permanent framework governing the Bank’s operations in the sterling money markets is known as the Sterling Monetary Framework and is set out in detail on the Bank of England website.
About LMMA
The LMMA is the trade association which represents participants in the money markets in London.
Money Markets Committee
The Money Markets Committee (MMC) is a senior-level forum for market participants and the relevant UK authorities to discuss issues concerning the UK unsecured deposits and funding market, the securities lending market and the repo market. It is chaired by the Bank of England.
The MMC meets quarterly and has two permanent sub-committees: the UK Money Markets Code Sub-Committee and the Securities Lending Committee.
The UK Money Markets Sub-Committee is co-chaired and made up of senior market participants. The sub-committee meets regularly to ensure the Money Markets Code remains relevant and up to date as markets evolve. The LMMA is a member of this permanent committee.
The Securities Lending Committee is chaired by a market participant. It is a forum for market participants and the relevant UK public authorities to meet and discuss issues concerning the UK securities lending market, including all collateral activities.
The UK Money Markets Code
The Money Markets Code is a voluntary code written by market participants and was first published on 26 April 2017. The code sets out such standards and the best practice expected from participants in the deposit, repo and securities lending markets in the UK. It supersedes previous guidance for participants in these markets provided by the NIPS Code, the Gilt Repo Code and the Securities Borrowing and Lending Code. The Money Markets Code is endorsed by the Money Markets Committee.
The MMC has also established a Public Register of Institutions who have signed a statement of Commitment or a Statement of Support to the Code. The purpose of the Register is to further restore trust in financial markets by making it easier to see which institutions have taken the important step of committing to the principles set out in the code. The LMMA is a signatory to the Register.
Links
Bank of England
www.bankofengland.co.uk
Financial Conduct Authority
www.fca.org.uk
Prudential Regulatory Authority
www.pra.directory