The Bank of England announced in December 1996 that it would no longer require the gilt-edged market makers (GEMMs), its counterparties in the gilt market, to be separately capitalised firms. This change, which took effect from 3 March 1997, allows firms to merge their specialist gilt-edged market-making subsidiary into their main operating entity if they so wish. The Bank’s counterparties must, however, continue to satisfy a range of obligations. These obligations and the facilities available to market makers are set out in the following paper. The paper also covers the role in the gilt market of the inter-dealer brokers, who provide a service to the GEMMs and continue to be subject to supervision by the Bank.