Eligible collateral

A list of the eligible collateral for liquidity insurance schemes and the legal documentation you’ll need

Eligible collateral for liquidity insurance schemes

We lend through our market operations against collateral delivered by firms. This collateral has to be good enough so we can sell or keep it, if a counterparty fails to repay us.

For information on how to deliver securities in our market operations, please see our Collateral settlement and management page.

Collateral needed for each operation or facility

Collateral Level A Level B Level C
RTGS Y N N
Operational Standing Facilities Y N N
Short-Term Repo OMOs Y N N
Indexed Long-Term Repo OMOs Y Y Y
Discount Window Facility Y Y Y
Contingent Term Repo Facility Y Y Y
Funding for Lending Scheme Y Y Y
Term Funding Scheme Y Y Y

Equities as Collateral

The Bank does not normally accept equities as collateral under the SMF but has put in place the technical measures to allow it to do so at its discretion, should the need arise. In order to deliver equities in the event that the Bank takes the decision to include them as eligible collateral in an operation, counterparties would need to have made arrangements with the Bank in advance and have opened a tri-party equity account with an eligible provider. The Bank’s eligible providers are currently BNY Mellon and Euroclear Bank SA/NV.  Participants wanting more information, or to set up a tri-party account, should contact the Bank on applications@bankofengland.co.uk.

Documentation for level C collateral

(Securitisations and Raw Loans)

This page was last updated 07 May 2019
Was this page useful?
Add your details...