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Home > Markets and Payments > Sterling Money Markets Liaison Committee

Sterling Money Markets Liaison Committee

The Money Markets Liaison Committee (MMLC) was established in 1999. The MMLC was previously known as the Money Markets Liaison Group prior to April 2015. It comprises representatives from market participants, trade associations and the authorities. It provides a forum for discussion of structural issues concerning money markets. The terms of reference can be found below:

Terms of Reference 

Wholesale Money Market Codes

On 26th May 2016, the Foreign Exchange Working Group of the BIS released the first phase of a global code of conduct for wholesale foreign exchange markets and principles for adherence to the new standards. The complete global code and the adherence mechanisms, which aim to promote the integrity and effective functioning of foreign exchange markets, will be released in May 2017.
When published in its final format, in the UK it will replace the current Non-Investment Products Code (NIPs Code) in relation to the foreign exchange markets.
For non-foreign exchange market products in the UK market, a project to update and revise the current Code is being led by a joint Sub-Committee of the Money Market Liaison Committee and the Securities Lending and Repo Committee. This Sub-Committee is co-Chaired by, and constituted of, senior market participants.  The new UK code will be a voluntary code, written by the market participants; it will incorporate revised relevant sections of the NIPs Code, and also a revision and update of the Gilt Repo Code and Securities Borrowing and Lending Code.  Publication of the new UK Securities Lending, Repo and Money Markets Code is expected in mid-2017.
The Bullion element of the NIPs Code is being replaced by a new code which will be established by the London Bullion Markets Association (LBMA). Further information on the bullion code can be found on the LMBA website.
For further information on the UK Securities Lending, Repo and Money Markets Code please contact:
The Secretariat
Codes Joint Sub-Committee of MMLC and SLRC
Sterling Markets Division
Bank of England
Threadneedle Street
London EC2R 8AH

MMLC Term DBV Sub-Committee

DBV (Delivery-by-value) is a settlement mechanism in CREST. It allows members to instruct the delivery of a specified value of securities from a defined set (such as conventional UK gilts or FTSE 100 equities) to a counterparty, rather than needing to detail the quantities of each individual security to be delivered. DBV transactions can be arranged against payment or free of payment.
Before July 2011, DBVs could only be conducted as overnight transactions, settling in the afternoon and then automatically unwinding on the following morning. Underlying deals with a term greater than one day could only be accommodated by inputting a series of overnight transactions during the life of the term, resulting in unnecessary intra-day cash flows, settlement risk, and operational risk. A Term DBV product was introduced by EUI in July 2011. This allows CREST members to undertake a single DBV transaction which reflects the duration of the underlying deal – between one day (i.e. overnight) and two years. The advantage of this product is that it does not unwind each day, reducing unnecessary cash flows, settlement risk and operational risk.

Migration of gilt repo business to the Term DBV product was supported by a sub-committee of the Money Markets Liaison Committee (MMLC) – the Term DBV Sub-Committee, a joint initiative between the Bank, the London Money Market Association (LMMA), Euroclear UK & Ireland and LCH. This migration was phased as follows:

- September 2015: Migration of cleared DBV gilt trades to LCH’s new Term £GC product.
- September 2016: Migration of bilateral DBV gilt trades to the Term DBV product.

The Term DBV Sub-Committee was disbanded in September 2016 following the successful migration of gilt repo DBV business to the Term DBV product. Euroclear UK & Ireland is separately taking forward work to migrate equities business to the Term DBV. The Term DBV good practice guidelines produced by the sub-committee can be found in the Key Resources section below.


The Sterling Money Market Survey is conducted by the Bank of England on behalf of the MMLC. The Money Market Survey gathers quantitative and qualitative information on developments in the sterling money market. The survey has been undertaken biannually since May 2011. Survey results were published for the first time on a standalone basis in January 2013 but prior results were presented in the Bank’s Quarterly Bulletin.
The MMLC maintains a contingency matrix (below), which summarises how the main infrastructure providers would respond to different operational contingencies and how different decisions will be taken.  

Money Markets Liaison Committee Contingency Matrix 

Related to that contingency matrix, the MMLC Operations Sub-Committee led a test exercise designed to simulate the impact of an extreme failure of the UK payment and settlement infrastructure (below).

MMLC 4 July 2012 test exercise report 

Dematerialisation and settlement of Money Market Instruments in CREST was agreed in 1999 and completed in 2003. For more detail about this process see: Money Market Instruments: Dematerialisation and Settlement in CREST.

Meeting documents