Central Banking

Bank of England to post collateral in OTC derivatives trades

Bank of England

The Bank of England (BoE) will start posting collateral to its counterparties in over-the-counter derivatives trades – an attempt to reduce costs for the central bank, and a policy U-turn that took dealers by surprise when it was announced yesterday afternoon.

Sovereign and supranational derivatives users typically do not post collateral, which creates a funding obligation for dealers. While the Portuguese and Irish debt offices have switched to two-way agreements in the past two years, the BoE

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: