Date: 24 July 2024
Time: 3.30pm – 5pm | Location: Bank of England / Hybrid
Minutes
Item 1: Introduction
Nic Erevik (NE) welcomed Committee members to this hybrid meeting, the first UK Money Market Code Sub-Committee (the Committee) meeting of 2024.
Committee members were formally informed that Niv Erevik has replaced Terry Barton as Co-Chair of the Committee.
NE (on behalf of the Committee) thanked Terry Barton for his contribution to the Committee’s work over the years, including during his tenure as co-chair, and to the review of the UK Money Market Code last year. The Committee wishes him well for the future.
Item 2: Minutes of last meeting
The minutes of the last meeting were published on the Bank’s website.
Item 3: Terms of Reference for the UK Money Market Code Sub-Committee
The Committee ratified the updated Terms of Reference (ToR) of the Committee.
Item 4: Promoting the updated UK Money Market Code/ACT Conference – Readout on the session on Codes
The latest update of the UK Money Market Code (the Code) was published on 7 June 2024. Feedback from the market indicated that the updated Code had been well-received. The Committee agreed, however, that there was scope for further promoting the Code among market participants. The Committee discussed various channels to explore, including using trade associations to increase its visibility and promote the benefits of signing up to the Code (for example, via websites and industry events).
The Association of Corporate Treasurers (ACT) held their annual meeting in May 2024 at which there was a dedicated panel session on Codes of Conduct. This session covered the UK Money Market Code, Global FX Code as well as the standards of the Financial Markets Standards Board with the aim of educating on: (i) the purpose of voluntary codes; (ii) their importance and the benefits to corporate entities; (iii) obligations for firms and (iv) latest developments. A member of Bank staff was invited to speak on the Money Market Code. A summary was published in the Treasurers’ Magazine and a one-pager on the Code linked to the ACT newsletter. It was noted that many attendees were unaware of the Code. The Committee discussed possible actions to increase awareness among non-financial institutions with the aim increasing corporate signatories.
Item 5: Update: Working Groups on Settlement Efficiency (Securities Lending Committee & LMMA)
The work of the London Money Market Association’s (LMMA) working group on settlement efficiency continues. The Committee will continue to be kept informed as it progresses.
The Committee was informed that there has been a significant improvement in settlement efficiencies in the cleared repo space over the last eighteen months. This improvement has largely been due to the increased uptake of CREST’s auto-splitting facility.
The Securities Lending Committee’s Working Group’s (the Working Group) report on Settlement Efficiency was published on the Bank’s website on 17 June 2024. The report was well received and discussed at the International Securities Lending Association (ISLA) conference in June 2024. The Working Group is now embarking on the second phase of its work and will provide a bulletin in the autumn, commenting on lessons learnt from T+1 in North America. Here the working group will also collate updates and information from electronic platform vendors, market participants, the UK’s T+1 task force, trade associations and industry bodies. There will also be discussions with Central Clearing Counterparties (CCPs) providing securities lending clearing solutions. The Working Group will continue its work with CREST to provide a comprehensive overview of securities lending settlement dates and use this in conjunction with other industry data providers. This will allow the Working Group to provide data to support the initial research and allow monitoring of the securities lending market on an ongoing basis.
Item 6: Diversity and Inclusion (DE&I)
Representatives of three trade associations (members of the Committee) spoke about some of the D&I initiatives being carried out by their respective trade associations. These initiatives focussed on inclusivity via getting younger/junior staff of their respective members to meet up with senior staff. One trade association offered individuals at the beginning of their careers and career returners, discounted tickets to their events. Thus, providing these staff with opportunities they wouldn’t typically get. Another initiative involved providing a series of education-based sessions to the aforementioned groups on topic such as: (i) the Basel Framework; (ii) the data the ISLA uses to think about the Securities Lending market, (iii) the work of the UK Debt Management Office and (iv) a talk on the City of London. Further education-based sessions are being planned for later in the year.
A meeting between banks and the largest Corporate Treasurers in London (one of the initiatives discussed) culminated in the inaugural Diversity and Sustainability Awards 2024 which takes place in London on 16 October and for which the short-list of nominees for the awards have been published.
One member also spoke about a joint meeting their trade association had held with another trade association to promote diversity and inclusion.
The Committee welcome these initiatives and agreed that holding joint DE&I events between associations is a good idea for promoting DE&I within money markets.
Item 7: AOB
No AOB.
Committee attendees
Attendees (in-person)
Alessandro Cozzani – BofA
Helen Willingale – Blackrock
Ina Budh-Raja (Co-Chair) - BNY Mellon
Jack Skinner - DMO (Observer)
James McKerrow - Insight Investment
Ian Mair - LMMA
Philip Chilvers - TP ICAP
Attendees (Virtual)
Gordon Lowson - Aberdeen Standard Investments
James Winterton - Association of Corporate Treasurers
John Edwards - CME Group
Vicky Worsfold – Surrey Heath Borough Council
Andy Dyson – ISLA
Veronica Iommi – IMMFA
James Upton – LCH
Andrew Welch – LGIM
Nic Erevik (Co-Chair) - Newcastle Building Society
Bank of England
Simon Dolan
Tom Archer
Kpakpo Brown