BoE Unveils New Rules for Market Infrastructure

The Bank of England is initiating a consultation on new regulations aimed at enhancing transparency for clearing houses and payment systems. This marks the first time the BoE is utilizing its powers to create binding regulations for central counterparties and securities depositories in the UK.

The Bank of England announced on Tuesday the commencement of a consultation process focused on implementing new rules for clearing houses, payment system operators, and additional financial market infrastructure. The aim is to improve transparency across these entities.

This consultation marks a groundbreaking move by the BoE, as it exercises newly acquired powers for the first time to create binding regulations. These regulations target central counterparties and central securities depositories within Britain's financial landscape.

The effort is part of a broader strategy by the BoE to ensure stability and transparency in the UK financial markets, responding to evolving market necessities. (Reporting by William Schomberg; Editing by Sachin Ravikumar)

(With inputs from agencies.)