Information for participants

To participate in Bank facilities, you must apply and have been granted access to the specific facility or operation. More information can be found on our Information for applicants page.

The table below outlines when the Bank’s market operations will normally take place.

Changes to our standard operations schedule are sometimes required due to market conditions, operational issues or other circumstances (Bank holidays). The calendar of open market operations (PDF) is kept up to date and we use Market Notices to keep participants informed.

Operation	Operation type	Day	Time
APF Gilt Sales - Auctions	Auction	Monday (confirmed via quarterly Market Notice)	2.15pm to 2.45pm
Short Term Repo	Auction	Thursday	10am (12.30pm on scheduled MPC dates)
Indexed Long-Term Repos	Auction	Tuesday (usually once per month, currently once per week)	10am to 10.30am
Operational Standing Facilities	Bilateral facility	Monday to Friday (on demand)	Until 6.10pm (6.20pm on the last day of the maintenance period)
Discount Window Facility	Bilateral facility	Monday to Friday (on demand)	Participants are advised to contact us by noon if they wish to make a drawing on the same day
7 Day US Dollar Repo	Auction	Usually weekly on Wednesdays	8.15am to 8.45am
Alternative Liquidity Facility (ALF)	Auction	Thursday (once per week)	Until 1pm

• Full calendar of open market operations for 2025 (PDF)

Auctions

The Bank runs most of our auctions via an electronic trading system called Btender. Btender is accessed via SWIFT. You can use Btender to submit and edit bids in an auction during the operation window.  As part of onboarding to the Sterling Monetary Framework, you set up access to Btender and a test trade is arranged for you to practise access in the system.  

You control of your own user access in the system, and you should ensure multiple users maintain access to and familiarity with Btender. 

For more information about how to access and use Btender please refer to our user guide (PDF). 

Bilateral Facilities

To participate in any of the Bank’s bilateral facilities you will need to contact the Sterling Desk on +44 (0) 20 3461 5000 or email Markets-SMDDealers@bankofengland.co.uk.

You can use the results screen in the Btender system to confirm whether the full value of your bid has been accepted or, if not, what amount of your bid has been accepted.

The Bank’s expectation is for you to use Btender in all circumstances to minimise operational risk. Where this is not possible you may submit proxy bids. 

If a proxy bid is required, on auction day, you should:

1. Call +44 (0) 20 3461 5000 to confirm the bid, leaving sufficient time before the end of the auction window.
2. Then email proxybids@bankofengland.co.uk, including the name of the auction in the subject header field when submitting their proxy bid.

Alternatively, you may submit proxy bids via a pre-existing Bloomberg IB chat room with the Sterling Desk. To set up an IB with the Sterling Desk, please contact your relationship manager or email Markets-SMDDealers@bankofengland.co.uk.

You should allow sufficient time before the end of the auction window to allow proxy bids to be processed by the Bank. All proxy bids will be processed on a best endeavours basis and at the risk of the participant.

We reserve the right to take further steps to confirm firm eligibility, and verify the identity of submitting dealers, before accepting proxy bids. We accept no liability for delays arising from such checks.

The Bank uses a pooling method to manage the collateral we hold. Under this model, you will maintain one or more pools of securities and loans to cover exposures you have with the Bank. The collateral is not earmarked against individual transactions.

The majority of our facilities will be collateralised by the main collateral pool (Single Collateral Pool or SCP), but there are further sub-pools depending on which facilities you are signed up for.

Collateral pooling helps to streamline operational processes including collateral management. Participants can pre-position collateral in the SCP, it is also possible to substitute collateral. Collateral pooling also simplifies the margin call process as the Bank does not call margin on individual exposures.

Please see our Operating Procedures section 8.3 (PDF) for further details.

The Bank accepts a broad range of collateral, split into three buckets in terms of liquidity:

• Level A collateral consists of assets expected to remain liquid in almost all market conditions, such as high-quality sovereign debt trading in very deep markets.
• Level B collateral consists of assets that will normally be liquid, such as sovereign debt, supranational and private sector debt and the highest-quality asset-backed securities.
• Level C collateral is comprised of typically less liquid assets, such as securitisations, securities delivered by the same entity that originated the underlying assets (‘own name’ assets) and portfolios of loans, including mortgages.

We do not normally accept equities as collateral for our facilities, but we have put in place the technical measures to do so at our discretion, should the need arise in the future.

If you are signed up to access the Collateral Management Portal (CMP), you can use the ‘Eligibility Check Screen’ to check if a security is eligible and the collateral level.

You can also use the Bank’s website where we publish lists of Level A, Level B and Level C (XLSX) securities that are ready to be used in our systems.

If a security does not appear, check the high-level criteria published on our eligible collateral page to see if it meets our requirements. If it does, contact Eligible.securities@bankofengland.co.uk and ask for them to complete an eligibility assessment. For Asset Backed Securities and covered bonds there is additional information you will need to provide for the assessment to take place, see further details.

For loan collateral, there is a separate process for determining eligibility, please see the Loan Pre-positioning Guide (PDF) for further details.

Collateral Haircuts

Haircuts are designed to protect the Bank against falls in the value of collateral, so if a participant defaults, the sale of that collateral by us raises at least the amount borrowed against it. Higher quality assets offer us greater protection against asset value volatility, and so require lower haircuts.

We publish base haircuts (PDF) on our website for Level A, Level B, and Level C securities.

Haircuts for Level C loan collateral are calculated for each pool of loans individually.

Collateral Prices

Securities are valued by us using observed and derived market prices; where a price is derived using model inputs a higher haircut is applied. The Bank’s valuation is binding.

The Bank obtains live market prices at approximately 4pm London time where possible.

The Bank uses prices, haircuts and FX rates to calculate an ‘Adjusted Market Value’ (AMV) of the collateral delivered to us. The total AMV of all collateral delivered to us in a specific collateral pool must be greater than the value of the exposures in that pool. If the value of collateral falls below that of the exposures, you will be asked to deliver additional collateral.

You should monitor the values of collateral placed with us to ensure you have enough collateral to cover your drawings plus any fees or interest. Once the collateral has been delivered to us, you can check the AMV of your collateral using the Collateral Management Portal or view the ‘pool details report’ which is emailed daily at around 10pm.

We are unable to confirm the AMV of specific securities ahead of them being placed with us but you can use the haircut information published, along with market FX rates and prices to calculate an indicative value.

Close to the maturity date of collateral, some securities lose value. Please refer to the Sterling Monetary Framework Operating Procedures (PDF) (section 8.25) for detail. This can be monitored using the Collateral Management Portal or via the pool details report.

Yes, please do. The Bank encourages you to pre-position a broad range of collateral with us. This can include High Quality Liquid Assets (HQLA) where these are eligible for use as collateral.

Pre-positioning allows us to risk assess, price, value collateral and set a suitable haircut in advance of drawdown, therefore allowing you to have more certainty over the value of your collateral and to use our liquidity facilities more quickly when needed. This is particularly important for lending facilities that settle T+0, like the Short-Term Repo (STR).

There are three possible collateral instruction methods:

• SWIFT instruction
• Collateral Management Portal (CMP)
• Excel template confirmation

The Bank encourages participants to use SWIFT messages and/or the CMP, because these are most efficient.

To enable SWIFT instruction the Bank provides additional references to quote in collateral messages. Please contact CMC.SCP@bankofengland.co.uk for more information on SWIFT instructions for collateral or to arrange a test trade. 

The CMP allows users easy access to view collateral positions and valuations, check collateral eligibility and instruct collateral movements.  You can find out more about the CMP by accessing the user guide. For more information on the CMP, including set-up process and user benefits, please contact CMC.SSI@bankofengland.co.uk.

Finally, the collateral confirmation Excel template can be completed and sent via email to CMC.SCP@bankofengland.co.uk to process collateral instructions and movements.

For loan collateral, there is a separate process for moving loan pools, please contact LoansData@bankofengland.co.uk for more information.

You can see what collateral valuations and outstanding exposures by accessing the Collateral Management Portal (CMP).  

In addition a ‘pool details report’ is emailed to participants daily at around 10pm. The ‘pool details report’ also contains a list of active exposures, including the maturity date. Pool details reports are sent to the contact email address provided as part of the Data Collection Form (SSI form). 

You can also elect to receive statements of holdings as MT535 SWIFT messages. This is specified via the Data Collection Form (SSI form).

To register a new account, or change details on an existing account, fill in our registration form and return it to: cmc.ssi@bankofengland.co.uk. 

The portal is a SWIFT based interface. To use the portal your institution needs to join both the test and the live SWIFT closed user groups (CUGs). Apply to join those groups below:

Swift closed user groups (CUGs)

CUG registration details	Owner
Collateral management portal - trail (test)	BKENGB2L
Collateral management portal (live)	BKENGB2L

All collateral movements will be processed on a T+0 (same trade/settlement date) basis with the exception being JPY settlement which is T+2. Therefore, we encourage you to instruct collateral delivery as early as possible during the day, especially if the collateral is needed to cover new exposures or drawings. We encourage pre-positioning of collateral, as soon as possible. This will ensure timely payment of GBP cash.

Although some of our auction facilities allow participants to collateralise the trade following the auction, collateral can be placed with us ahead of the auction, particularly in the Short-Term Repo where bids are fully allocated.

Collateral that a participant has requested to be returned will only be delivered back if there is sufficient headroom to cover any outstanding exposures, and when any cash that is owed to the Bank has been received.

For collateral substitutions, any exposures must remain collateralised, so you must settle additional collateral into your pool before the Bank can return any collateral to you. 

Like delivering new collateral, we encourage substitutions to take place as early as possible during the day to ensure same day settlement.

Term DBV is eligible collateral in SMF operations, Free of Payment (FoP) and Delivery Versus Payment (DvP) settlement methods can be used to deliver collateral; however, there are some key features to be aware of.  To support use of Term DBV we can arrange a test trade of the process.  

For efficient exposure and collateral management we recommend the use of TDBV FoP, this allows Participants to use Term DBV alongside other member-to-member collateral and realise the benefits of the Bank’s collateral pooling process.  Participants can instruct initiation and amendment of the TDBV size and maturity via the CMP, Swift instruction or Excel Template. TDBV FoP collateral loses value ten business days before maturity, and this should be considered as part of collateral and exposure management.  

TDBV against payment (DvP) can only be used to collateralise the principal exposure, the end date and value of the DvP transaction should match the corresponding principal exposure details. Interest exposures must be collateralised using member-to-member free of payment delivery.  Although principle and maturities payments for exposures collateralised by Term DBV DvP will be paid through CREST, interest payment to be paid to the Bank should be paid via CHAPs upon maturity of the exposure.  

Our Operating Procedures (PDF) (sections 9.8) give further details for the settlement of Term DBV.  Please note that we require participants to advise in advance of Term DBV instruction.

A margin call will be issued to you when the value of collateral backing active exposures drops below the exposure value. When this occurs, a margin call is issued specific to the collateral level (A, B or C) of the securities pledged to cover the exposure. 

The minimum transfer is 25,000 and the margin call notification will specify that it has to be covered by collateral equal to or greater in eligibility (A, B or C) than the level the exposure is secured against. 

The notification is sent as an email to the operational contact specified on the Bank’s Data Collection Form. The Bank aims to send out margin calls as early as possible, normally before 10am or as soon as possible afterwards. You are expected to cover any margin calls within 90 minutes.

Following the settlement and valuation of eligible collateral, the Bank processes the cash payment at the earliest opportunity.

The Bank expects maturity and interest payments to be received by 2pm, on maturity date. You can find details of the maturity and interest payments due on your pool details report. If you are a netting participant, please make sure one payment is made. 

Cash payments for Bank operations can be netted, this will mean that payments for the same operation type will be netted to result in a single payment.  

Netting is be selected on your Data Collateral Form (SSI form) submitted to the Bank.  

You can update your netting preferences by submitted an updated Data Collection Form (see below questions on data updates for details). 

View the Bank’s security settlement and cash payment instructions (PDF). 

You must let us know if your static data changes, including updates to settlement instructions, operational preferences and key contact details.

Updates will be processed as quickly as possible but may take up to three days.

Use the data collection form (PDF) to make updates, please note that all sections of the form should be completed before submitting to the Bank. Your firm’s authorised signatories are required to verify the details submitted. When sending us the form please ensure the following:

• You attach your authorised signatory list when sending a new or updated data collection form
• the full name of the participating institution is stated
• the effective date of the signatory list
• certification by the company secretary (or equivalent person able to certify) that the signatures are true and authentic
• whether each authorised signatory can act alone or if joint signatories are required.

Email your signed form to cmc.ssi@bankofengland.co.uk.

It is recommended that you retain a copy of your submitted data collection form for your own records.  

As a participant in the Sterling Monetary Framework, you are required to provide an authorised signatory evidence form and documentary evidence to support the authorised signatories. This form must be completed on behalf of your organisation and responsibility is with you, the participant, to keep this up to date, and inform the Bank of any updates or amendments in a timely and efficient manner.

To update your authorised signatory evidence form, complete our pro forma:

• Authorised signatory evidence form (pdf)

Evidence of authority and specimen signatures are required for the individual(s) signing off the form. We encourage you to read our guidance note on supporting evidence:

• Guidance on documentary evidence to support the authorised signatory evidence form (pdf)

Please submit the form and supporting evidence to Applications@bankofengland.co.uk.

We encourage regular testing of our facilities. Please contact the Sterling Desk by phone on +44 (0) 20 3461 5000 or email Markets-SMDDealers@bankofengland.co.uk to arrange a test.

Sterling Desk

• For queries on admission to the SMF, contact applications@bankofengland.co.uk or call 020 3461 5000
• For queries during a live Open Market Operations, contact Markets-SMDDealers@bankofengland.co.uk
• For test trade (OSF, DWF or other liquidity operations), contact Markets-SMDDealers@bankofengland.co.uk

Collateral Management and Custody Team

• For queries on collateral movements in pool – How to instruct settlement queries, contact CMC.SCP@bankofengland.co.uk or call 020 3461 5700
• For details on Collateral Management Portal (CMP), contact CMC.SCP@bankofengland.co.uk or call 020 3461 5700
• For Coupons or Redemptions, Dividends and Corporate actions, contact CMC.AST@bankofengland.co.uk or call 020 3461 5477
• For Standard Settlement Instructions (SSIs); Updating Standard Settlement Instructions (SSIs); Signing up to use Collateral Management Portal (CMP); Collateral Management Portal (CMP) changing details – Adding & removing users, contact CMC.SSI@bankofengland.co.uk or call 020 3461 6005

Risk Operations

• For security collateral eligibility and Haircuts, contact eligible.securities@bankofengland.co.uk or call 020 3461 5909
• For all loan requests / loan collateral eligibility and all loan requests (encumbrance, unencumbrance, top ups etc), contact LoansData@bankofengland.co.uk