The Bank of England is today widening access to its Sterling Monetary Framework (SMF)footnote [1] to accept international central securities depositories (ICSDs) as eligible institutions. These changes recognise the role played by ICSDs in the financial system as the custodians and settlers of securities transactions. ICSDs will be able to apply for access to Reserves Accounts and the Operational Standing Facility (OSF).
In order to participate in the SMF, an ICSD will need to satisfy a number of eligibility criteria, including that it is active in sterling markets; and, either (i) is recognised, or has applied for recognition, pursuant to Central Securities Depository Regulation in the United Kingdom; or (ii) is being regulated to broadly equivalent UK standards.
Applications from ICSDs to participate as counterparties in the SMF can be made from today, 25 June 2021.
Application forms are available on the Information for applicants page.
The terms and conditions and operating procedures for the SMF have been updated, and are available on the Information for applicants page.
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The other classes of institution which are eligible to apply for access to the SMF are: banks, building societies, broker-dealers, and central counterparties (CCPs).