The Bank of England (BoE) reports on Randy Kroszner’s address at the Futures Industry Association (FIA) International Derivative Expo, where he examined the critical role of central counterparties (CCPs) in maintaining financial stability amid emerging global risks. Drawing on his extensive experience as an academic, regulator, and policymaker, Kroszner outlined how recent global shocks — including geopolitical tensions, trade-policy disruptions, sovereign debt vulnerabilities, and cyber threats — have heightened market uncertainty and underscored the necessity for a system-wide risk management approach. He explained that while CCPs serve as vital shock absorbers, the concentration of clearing activities among a few dominant players could amplify systemic risks during market stress. Furthermore, Kroszner addressed regulatory challenges by emphasising the need for enhanced data collection, improved market surveillance, and greater international coordination to bridge existing data gaps. His speech also spotlighted ongoing reforms, notably the BoE’s macro-prudential regulatory framework and the forthcoming fundamental rules for financial market infrastructure, which together underscore a commitment to harmonising standards and reinforcing financial stability in an interconnected global landscape.

The Bank of England (BoE) has introduced a data-driven approach to monitor hidden leverage in the non-bank financial system, using transaction-level data from the UK EMIR Trade Repository (EMIR TR). This initiative aims to address systemic risks posed by opaque financial exposures, such as those that contributed to the collapse of Archegos Capital in 2021. By analysing derivative transactions involving UK-domiciled counterparties, BoE can identify large and rapidly growing positions that may signal emerging vulnerabilities in financial markets.

Law360, London: Bank of London has said it is under investigation by the Bank of England's (BoE) regulatory arm, with the risk that an unfavourable outcome could affect whether it ultimately stays in business.

The Bank of England (BoE) has published its annual report on supervision of financial market infrastructures (FMIs), detailing its work over the past year, including implementing an improved regulatory regime under the Financial Services and Markets Act 2023 (FSMA 2023) and facilitating innovation through stablecoins and the Digital Securities Sandbox.

The Bank of England (BoE) has released its consultation paper (CP) concerning its proposal to revoke the retained EU law technical standard 2019/348 on Simplified Obligations (SO UKTS) which is of relevance to Prudential Regulatory Authority (PRA) authorised UK banks, building societies, PRA-designated investment firms, their qualifying UK parent undertakings, and their affiliates. Responses are sought by 2 February 2025.

The Bank of England (BoE) has published a policy statement on expanding mandatory ISO 20022 enhanced data requirements for CHAPS payments from November 2027. The expansion follows feedback from its 2024 consultation and aims to improve payment prioritisation, resilience, fraud prevention, and global harmonisation.

The Bank of England (BoE) has launched the 2025 Bank Capital Stress Test to assess the resilience of the UK banking system against severe economic shocks. The test involves the seven largest and most systemic UK banks and building societies, representing 75% of UK real economy lending. The stress scenario encompasses deep recessions in the UK and global economies, significant asset price declines, higher global interest rates, and elevated misconduct costs. It is designed as a 'tail risk' scenario to evaluate the banks' ability to withstand adverse conditions without amplifying shocks. The test aims to ensure that the participating banks can continue serving UK households and businesses during times of stress. The results, to be published in Q4 2025, will inform the setting of capital buffers for the UK banking system and individual banks, as well as provide insights into risks in the banking sector.

On 2 May 2025, the Bank of England (BoE) launched an Artificial Intelligence (AI) Consortium as a public–private platform to gather stakeholder input on AI applications within UK financial services. The initiative seeks to identify current and potential uses of AI, assess its benefits, risks and challenges, and inform the BoE’s and Financial Conduct Authority (FCA)’s approach to ensuring its safe adoption in financial services.

The Bank of England (BoE) has launched a consultation on its proposed regulatory regime for sterling-denominated systemic stablecoins and the application of holding limits. Developed in coordination with the Financial Conduct Authority (FCA) and HM Treasury (HMT), the framework aims to foster innovation while safeguarding financial stability.

The Bank of England (BoE) has issued a policy statement outlining the fees regime for financial market infrastructure (FMI) supervision for the year 2024/25. This statement confirms the fee rates necessary to meet the Bank's funding requirements for FMI supervisory activities and specifies the hourly costs for special projects. The BoE has taken into account feedback from the consultation paper for supervisory fees for FMI for 2024/25, addressing concerns regarding the timing of consultations, the proportionality of fees, and the impact of increased fees due to new responsibilities under the Financial Services and Markets Act 2023 (FSMA 2023). To mitigate immediate financial impacts on firms, the BoE plans to spread the costs of developing the UK central counterparty (CCP) rulebook over three years.

The Bank of England (BoE) has published a report outlining its approach to creating an environment that enables responsible innovation in artificial intelligence (AI), distributed ledger technology (DLT) and quantum computing. The report sets out the work the BoE has undertaken and plans to undertake to support the safe and effective adoption of these technologies while fulfilling its statutory objectives of maintaining monetary and financial stability and ensuring the safety and soundness of regulated firms. It provides a toolkit of actions the BoE can deploy to encourage innovation while mitigating potential risks. The BoE also highlights plans to collaborate with industry, other regulators, and government to deliver the outlined work and ensure technological innovation sustainably supports economic growth.

MLex: The Bank of England (BoE) is paying closer scrutiny to the stock prices of artificial intelligence (AI) companies and the exposure of UK banks to them, after saying valuations driven by large US technology companies were comparable to the peak of the dot-com bubble.