On Oct. 16, UK BoE issued notice confirming weekly frequency.
UK BoE issued market notice Confirmation of weekly frequency for Indexed Long-Term Repo (ILTR) Operations, confirming operations will be permanently on weekly basis.
Since Mar. 2019, UK BoE has offered ILTR operations weekly, on a temporary basis.
Prior to that change, UK BoE had offered ILTR operations only once a month.
Now confirms that the ILTR, which offers reserves for a 6-month period against the full range of SMF-eligible collateral, will continue as weekly operation on permanent basis.
This reflects UK BoE's ongoing transition to a repo-led, demand-driven operational framework, ILTR will play a key role within the framework, in supplying the stock of reserves demanded by the system for monetary and financial stability reasons.
From w/c Nov. 4, 2024, maturity structure of ILTR operations amended to reflect weekly frequency, means the term of all ILTR drawings will now mature after exactly 6 months, previously all ILTR operations in given month had same single maturity date.
UK BoE Market Operations Guide has been updated the reflect the announcement, participants should review relevant settlement process information for ILTR operations.
Next Steps
Further changes to ILTR calibration are being considered, UK BoE plans to seek views on this via a discussion paper which is due to be published later in 2024.
Any further changes to the ILTR will be announced in due course.
