LONDON (Reuters) -The Bank of England will start talking to players in the financial services industry about possible reforms to make sure the gilt repo market is resilient, BoE Deputy Governor Sarah Breeden said on Wednesday.
The BoE’s Financial Policy Committee said in November it wanted to strengthen the market which came under stress in 2022 when British government bond prices slumped following then prime minister Liz Truss’s “mini-budget.”
“We will start a conversation with industry via a Discussion Paper later this year on possible reforms to market structure to enhance gilt repo market resilience,” Breeden said in the text of a speech to the annual meeting of the international Swaps and Derivatives Association in Amsterdam.
(Writing by William Schomberg; editing by Sarah Young)
