Sterling Money Markets Liaison Group

The Money Market Liaison Group (MMLG) was established in the summer of 1999 following a series of reforms in the sterling money markets. It comprises representatives from market participants, trade associations and the authorities. It provides a forum for discussion of structural issues concerning money markets.

Follow this link for the MMLG terms of reference.

Follow this link for the MMLG Ops Sub-Group terms of reference.

Recent topics have included:

Guidance on the timetable for the allocation of ISINS to CD Issues
(111k)
21 February 2005
Views on the Bank of England's review of its official operations in the sterling money market
Preparation of the market Code for Non-Investment Products (NIPs), successor to the London Code of Conduct in respect of non-investment products, effective at the beginning of December 2001.
A review of money market instruments and plans for their dematerialisation so that they can be settled in the CREST system.
A review of voluntary guidelines (105k) for issues by authorised institutions in the UK of certificates of deposit.
The introduction of CLS and Repoclear
A review of the main legal agreements used by members of the London Money Markets Association.
Proposed changes to the calculation of the daily overnight average, SONIA, rate.
Contingency planning against the possibility of widespread disruption to sterling money markets following a market-wide event. The MMLG made a non-binding recommendation that the MPC's official Bank rate should be paid and charged on unintended bank balances and overdrafts following any event that led to market-wide disruption to trading and settlement in sterling money markets. MMLG has established standing arrangements to hold conference calls amongst its members in the event of a major market disruption in order to exchange information and discuss practical measures to address any market-wide problems.
Work to clarify and describe how the main infrastructure providers in the sterling money market (Bank of England, MMLG, CHAPSCo, Euroclear UK & Ireland Limited (formerly CRESTCo), CLS, SWIFT) would respond to different operational contingencies and how decisions would be taken. This is summarised in the following table which has been checked by the infrastructure providers listed above and will be updated regularly.
Money Markets Liaison Group Contingency Matrix
(123k)
June 2006