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Home > Markets and Payments > Sterling Monetary Framework - Applications to Participate
 

Sterling Monetary Framework - Applications to Participate

This page contains information about the process for becoming a participant in the Bank's Sterling Monetary Framework (SMF). All enquiries relating to applications should be directed to applications@bankofengland.co.uk. 

Eligibility to Participate
 
The following types of institution may apply to participate in SMF facilities, subject to the Eligibility Criteria set out in the SMF Documentation:

-       Banks and building societies, including branches and subsidiaries of overseas banks, which are authorised to take deposits in the UK;

-       Investment firms designated by the PRA for prudential supervision (referred to as ‘broker-dealers’); and

-       Central counterparties operating in UK markets either authorised under EMIR or recognised by ESMA.
More detail is available in the Red Book:

  Red Book - Counterparties  
and in the SMF Eligibility Criteria, available to download on the following page:
SMF Application Form

 
Each applicant for SMF Facilities should complete the following application form, and provide the additional information requested on page 1:

SMF application form

The authorised signatory list and front office contact forms included as part of this application form are also available as separate templates:
 

Authorised signatory evidence form

Front office contact form

Please note that the Bank requires evidence of the delegated authority of the individual(s) signing off these forms.  Guidance on the evidence required to support the authorised signatory evidence form can be found in the following link:

Guidance for the authorised signatory evidence form

SMF Admission Letter
 
Successful applicants will be asked to sign an Admission Letter, agreeing to the terms of the SMF Documentation.  A proforma Admission Letter is available below:
 

Pro forma Admission Letter

Further Documentation and Guidance
 

The Bank may require provision of a capacity opinion or a capacity and country opinion in connection with the application. Pro-forma opinions are linked here:

Pro forma legal opinion (capacity issues only)
Pro forma legal opinion (country and capacity issues)

If the applicant is not the primary entity in its group, the Bank may require a guarantee and an associated legal opinion to be provided. A pro-forma guarantee and associated legal opinion are linked here:

 Pro forma guarantee 
 Pro forma legal opinion on the guarantee 

In addition, once an initial application to the Reserves scheme has been agreed in principle, applicants will be required to complete the RTGS Account Mandate and Reserves Account Annex. These are available on the following page:

Payment and Settlement Systems

Guidance for emergent lenders and newly authorised institutions on access to Bank of England Sterling Monetary Framework liquidity facilities can be found here:

Guidance for new banks

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