Mr Tucker outlines three problems with the current framework. First, it is overly complex, with up to four rounds of operations each day. Second, because fixed-rate repos span MPC meetings, the short-term yield curve pivots when the MPC is expected to change rates. Third, overnight interest rates are volatile by international standards, though less so than before an earlier round of reforms in 1996-98. These characteristics deter full participation in the sterling money markets by foreign banks, securities houses, corporate treasurers and money managers. "Less tangibly, but importantly, the reputation of the sterling money markets is impaired," he comments.