Operational Notice for Open Market Operations
The Operational Notice sets out the procedures for normal market operations which the Bank undertakes in the sterling money market. In exceptional circumstances the Bank may on occasion undertake other operations at its discretion. The Bank may also announce variations in these arrangements, or new forms of market operation, either by special announcement or by means of a supplement to the Operational Notice.
New Operational Notice
- New
Operational
notice (199k)
Will be effective from 3 January 2006, reflecting the most recent changes to the Bank's open market operations.
The most recent amendment to the Operational Notice was announced
on 14 December 2005, when the Bank announced the offer of long
term repo operations, requiring a number of changes to the Operational
Notice. These changes take effect from 3 January 2006. TheNotice
issued by the Bank (17k) on 14 December 2005 describes the
long-term repo operations in full.
Current Operational Notice
- Current
Operational
notice (230k)
Effective from 14 March 2005, reflecting the most recent changes to the Bank's open market operations.
An amendment to the Operational Notice was announced on 11
February 2005, when the Bank announced a number of changes to
the Operational Notice as an interim measure ahead of the launch
of the fully-reformed framework. These changes took effect from
14 March 2005. The Notice
issued by the Bank (12k) on 11 February 2005 describes the
changes in full.
Previous amendments to the Operational Notice
On 23 November 2004 the Bank also amended its Operational Notice in four areas:
- With effect from 1 March 2005, the Bank limited the amount of collateral, by value, of a single issuer (excluding HM Government and the Bank of England) that an Open Market Operations (OMO) counterparty or settlement bank could hold with the Bank.
- In exceptional circumstances, the Bank will be able to extend its list of eligible collateral to include US Treasuries.
- Local Authority bills were removed from the list of eligible collateral.
- Further guidance was provided on the criteria for being an OMO counterparty.
Click here for a summary
of these changes (108k).
On 11 September 2003 the Bank published a new Operational Notice to reflect changes following the dematerialisation of money market instruments such as Treasury Bills, Certificates of Deposit and Commercial Paper. The new Notice of September 2003 included arrangements for eligible debt security (EDS) equivalents of money market instruments and took effect from 15 September.
A supplement to the Operational Notice was also issued in June 2001 when the Bank announced the introduction of the 15.30 overnight deposit facility.
- Operational
Notice effective 15 September 2003 (1.3mb)
Updated on 22 April 2004 - Notice
on transition between settlement of eligible money market
securities in the central moneymarkets office (CMO) and settlement
in CREST (70k)
- Supplement
to the Operational Notice effective 27 June 2001 (14k)
See also the list of Eligible Securities.
If you have any queries on the notice, please contact:
Chris Darkens
Sterling Markets Divison
Bank of England
Threadneedle
Street
London EC2R 8AH
Tel: +44(020) 7601 5208
E-mail:
chris.darkens@bankofengland.co.uk
