BoE is consulting on reforming its market operations, particularly to help banks have access to liquidity insurance facilities in stressed times. Two of the planned changes took effect on 20 October:

  • replacing Standing Facilities with Operational Standing Facilities, intended to absorb technical problems and imbalances in the operation of money markets and payments and not to provide support to stressed firms; and 
  • setting up a Discount Window Facility, enabling banks to borrow gilts, or sometimes cash, against a wide range of eligible collateral in order to provide liquidity insurance to commercial banks in the event of stress.

Later, it plans permanent long-term repo open market operations against broader classes of collateral, to be auctioned under a mechanism where counterparties bid separately and against different types of collateral. It wants comments by 27 November.