The new code was written by market participants and incorporates revised relevant sections of the non-investment products code, and also a revision and update of the gilt repo code and the securities borrowing and lending code.
According to the BoE, the new code sets out best practice expected from participants in the securities lending, repo and deposits markets. It supersedes existing guidance in the incorporated codes of conduct.
By bringing these together, it will more clearly establish the framework for transacting in UK money markets in order to promote counterparty trust, fairness and overall market transparency.
The new code was also endorsed by the UK’s Money Markets Committee, a senior-level forum for market participants and the public authorities.
All UK money market participants have to commit to the principles of the code by 1 January 2018.
Commenting on the new code, ISLA CEO Andy Dyson said: “The code is a principles-based code that will provide a conduct based framework that market participants will adhere to.”
w “We fully endorse and support this new code which firms will need to be compliant with from 2018.”