The standards and best practice expected from participants in the deposit, repo* and securities lending markets are set out in a voluntary new UK Money Markets Code, which is underpinned by the key principle that participants should always act in a manner that promotes the markets’ integrity.

Six other high-level principles outlined by the Code are: ethics, governance, risk management, confidentiality, execution and settlement.

‘UK Money Markets Code’ has been endorsed by the Bank of England’s money marketing committee, which comprises experienced market practitioners, a sub group of whom drew up the code and will remain in place as a permanent sub-committee  to ensure it remains relevant as markets evolve.

The code is expected to be embedded in the market by January 2018, superseding and substantively updating existing guidance in the Non-investment Products (NIPs) Code, the Gilt Repo Code and the Securities Borrowing and Lending Code.

It will align with the Global FX Code and Precious Metals Code, which will be published at the end of May.

(*A ‘repo’ – or repurchase agreement – is a form of short-term borrowing for dealers in government securities.)