Eligible collateral comprises:

• G10 Sovereign bonds
  Debt issued by G10 sovereigns rated Aa3 or higher, excluding securities eligible in the Bank's normal open market operations, subject to any settlement constraints.
• G10 Government guaranteed agency bonds
  Bonds issued by G10 government agencies explicitly guaranteed by national governments, rated AAA. Government Guaranteed Agencies are subject to individual review and additions will not be announced separately.
• FHLMC, FNMA and FHLB securities
  Conventional debt security issues fro the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association and the Federal Home Loan Banks System, rated AAA.
• UK and EEA residential and public sector covered bonds
  UK and EEA Covered bonds rated AAA, including those issued by the institution, or entities in the same group as the institution, entering into the transaction. The underlying assets must be either mortgages, social housing loans or public sector debt.
• UK and EEA RMBS
  AAA-rated tranches of UK and EEA Residential Mortgage-Backed Securities (RMBS) backed by UK and EEA mortgages. The underlying assets must not be synthetic (i.e. not derivatives). RMBS backed by mortgages originated by the institution, or entities in the same group as the institution, entering into the transaction are permitted.
• UK, US and EEA credit card ABS
  AAA-rated tranches of UK, US and EEA Asset-Backed Securities (ABS) backed by social housing loans or credit cards, including those originated by the institution, or entities in the same group as the institution, entering into the transaction. The underlying assets must not be synthetic (i.e. not derivatives).
• HM Government guaranteed bank debt
  Bank debt guaranteed under HM Government's bank debt guarantee scheme announced by the UK Government on 8 October 2008.

The following further requirements apply:

• In each case the underlying assets must be cash not synthetic
• Securities whose ratings on the basis of a guarantee or insurance provided by a third party ("a wrap") will not be eligible (with the exception of government guaranteed instruments noted above).
• Securities may be denominated in sterling, euro, US dollars, Australian dollars, Canadian dollars, Swedish krona, Swiss francs or in the case of Japanese Government Bonds and bank debt issued under the UK government's Credit Guarantee Scheme only, yen.
• Credit ratings as set out above or their equivalent must have been provided by two or more of Fitch, Moody's and Standard and Poor's.
• Securities must be capable of being delivered to the Bank via the delivery mechanisms specified in the Settlement Arrangements set out in the Market Notices.

The Bank reserves the right to reject any security offered or provided as collateral, for any reason, at any time. Please note this summary is designed as a guide only. The Bank will keep under review the securities eligible as collateral in its operations. Participants should always consult the most up to date Market notes together with the SMF Terms and Conditions for a complete guide to eligible collateral. In the event of a conflict between this summary and the Market Notices, the Market Notices shall prevail.

Questions on eligibility can be sent to Sls_eligibility_enquiries@bankofengland.co.uk.