Events listed in [PRA] Prudential Regulation Authority
Launch of the scenario phase of the system-wide exploratory scenario
ID 25748
BoE has published a statement to announce that it has initiated its SWES exercise, aiming to examine the behavior of banks and NBFIs during periods of stressed financial market conditions. The exercise will explore how these behaviors could interact and potentially amplify shocks in key UK financial markets, thus affecting the stability of the country’s financial system. Participating entities include large banks, insurers, central ...
Bank of England Levy Framework Document
ID 25713
BoE has released a consultation paper on the Framework Document for the Bank of England Levy (the Levy), with the intention of replacing the current CRD in 2024 (exact date TBA depending on the responses). Market participants should answer the following questions and send them to BoELevy@bankofengland.co.uk: – Do you have any general comments or observations in relation to this CP and how the ...
Statistical Notice 2023/11
ID 25707
The Bank of England (BoE) has published a new statistical notice (2023/11) relating to the HM Treasury’s intention to replace the Cash Ratio Deposit (CRD) scheme with a new levy to fund the operations of the Bank. In this notice, the BoE provides some background information on the intended change and asks financial institutions to comment on the ongoing consultations in this context (please ...
2023 CCP Supervisory Stress Test: results report
ID 25706
On 8 November 2023, the Bank of England’s Prudential Regulation Authority (PRA) has published the results of its second public stress test among central counterparties (CCPs) in the UK. The test was conducted the Spring of 2023. It covered all UK CCPs, including ICE Clear Europe Limited, LCH Limited, and LME Clear Limited. The stress was based on a baseline market scenario which included ...
Clearing in the 2020s: the Bank of England’s approach to policy reform and ...
ID 25692
Sasha Mills, the Executive Director of the Financial Market Infrastructure, gave a speech on the FSMA 2023 and how it will shape UK’s clearing industry. BoE has a long history of shaping financial regulations, including EU legislations, and supervising CCPs and CSDs. She underlines the following points: – BoE’s strong supervision of stress tests of CCPs, which resulted in high resilience to scenarios – ...
Regulatory regime for systemic payment systems using stablecoins and related ...
ID 25675
As previously announced in EventID 23724, the Prudential Regulation Authority (PRA) has now published its own discussion paper on a „proposed new regulatory regime for systemic payment systems using stablecoins and related service providers“. The discussion paper comes in response to the increased use of stablecoins particularly by cryptoasset exchanges as a means of payments for cryptoassets. Generally speaking, so the PRA, are stablecoins ...
What are stablecoins and how do they work?
ID 25671
In view of the launch of various new discussion papers on a new regulatory framework for stablecoins (please see EventID 23724 and EventID 23817 in this context), the Bank of England has launched a new „explainer website“ on such stablecoins. The website contains various frequently asked questions (FAQs) about stablecoins, including the following – as quoted: – What is a stablecoin? – Is Bitcoin ...
Letter from David Bailey, Nathanaël Benjamin and Vicky Saporta on ‘Innovations in ...
ID 25669
In view of and concurrently to the publication of two discussion papers, one by the Financial Conduct Authority (FCA) and one by the Prudential Regulation Authority (PRA), about a new supervisory regime for issuers, distributors, and custodians of stablecoins (EventID 23724 and EventID 23817), the PRA has published a Dear CEO Letter addressed at deposit taking institutions. **In this letter, the PRA formulates its ...
Cross-authority roadmap on innovation in payments
ID 25667
Following the publication of two discussion papers, one by the Financial Conduct Authority (FCA) and one by the Prudential Regulation Authority (PRA), about a new supervisory regime for issuers, distributors, and custodians of stablecoins (EventID 23724 and EventID 23817) and a related Dear CEO Letter (EventID 23820) about regulatory expectations of UK depository institutions when engaging in digital money deposit-taking or issuance, **the two ...
Relationship discounts in corporate bond trading
ID 25654
The Prudential Regulation Authority (PRA) has published a working paper which outlines the findings from a study that examined dealer-client relationships in the over-the-counter (OTC) corporate bond market using regulatory and proprietary data sets. Specifically, the study looked at the prices long-standing clients of bond dealers had to pay versus those costs clients with no relationship incurred. As shown in the working paper, the ...