Bank of England may accept equities as collateral
Speaking at a the Money Markets Liaison Committee meeting, Chris Salmon, executive director for markets, revealed that the central bank had started work to ensure there are no technical obstacles its ability to accept equities as collateral "should the need arise".
"The Bank can further bolster its flexibility by removing any technical obstacles to accepting equities as collateral, should the need arise," said Salmon.
However, Salmon said that it was a longer term project and that he anticipated work to remove technical obstacles to continue through 2016.
"Given the complexities involved, the project will take some time to deliver."
The central bank currently accepts a relatively broad range of collateral, including government bonds, asset-backed securities and pools of raw loans.
Found this useful?
Take a complimentary trial of the FOW Marketing Intelligence Platform – the comprehensive source of news and analysis across the buy- and sell- side.
Gain access to:
- A single source of in-depth news, insight and analysis across Asset Management, Securities Finance, Custody, Fund Services and Derivatives
- Our interactive database, optimized to enable you to summarise data and build graphs outlining market activity
- Exclusive whitepapers, supplements and industry analysis curated and published by Futures & Options World
- Breaking news, daily and weekly alerts on the markets most relevant to you
