Statement
The Bank of England (Bank) co-operates with the Financial Conduct Authority (FCA) to supervise financial market infrastructure (FMI).
The framework for cooperation is set out in a memorandum of understanding (MoU)footnote [1]. This MoU facilitates effective supervision and policy making by exchanging information between the regulators and promotes efficiency by minimising duplication of regulatory activities regarding FMIs. Signatories must review the MoU annuallyfootnote [2] to confirm whether the intended arrangements are proving effective. This involves requesting feedback from supervised firms on whether the proposed cooperation is working effectively as part of the review process.
The Bank and FCA wrote to FMIs: Central Counterparties (CCPs), Recognised Investment Exchanges (RIEs) and Recognised Central Securities Depositories (RCSDs); to review their cooperation, based on these firms’ interaction in 2025. Respondents welcomed the opportunity to provide feedback and reported a high degree of coordination across both policy and supervisory matters. Respondents remain fully supportive of the MoU and recognise the importance of effective planning and coordination between the Bank and the FCA.
The Bank and FCA agree that the MoU arrangements remain effective, with appropriate coordination and no material duplication. Close and agile cooperation remains important given the challenging external environment, rapid technological change, and shared interests across current policy priorities. In the view of the Bank and FCA, the authorities have collaborated effectively in relation to rapidly unfolding events in markets, to support innovation and efficiency via initiatives such as tokenisation, the Digital Securities Sandbox and T+1 settlement, and to ensure effective policy development, such as in relation to the UK EMIR (UK European Markets Infrastructure Regulation) review, and IOREP (Operational Incident and Outsourcing and Third-Party Reporting) Final Policy for FMIs. The authorities remain aware that through efficient coordination, we can improve the effectiveness of our supervision, minimising burden on firms. The Bank and FCA will seek to address the specific suggestions received from firms.