On 2 February 2026, the Prudential Regulation Authority (PRA) published a speech by Rebecca Jackson (Executive Director, Authorisations, Regulatory Technology and International Supervision) entitled Frenemies at the gates.

The speech focuses on a changing market landscape, shaped by rapid advances in new technologies and the growing importance of specialist electronic market makers and liquidity providers, known as Principal Trading Firms. These specialist players create valuable business opportunities for banks as well as providing new competition – they are banks’ frenemies. The PRA welcomes innovations where banks’ risk management and controls keep pace.

At the end of the speech Rebecca Jackson refers to boards and their risk management committees. She states:

“Boards and their risk management committees need to be inquisitive and aware of risks from daylight exposures to Principal Trading Firm clients and seek assurances that control frameworks are adequate and properly resourced. There is a direct link between risk mitigation and the level of investment in risk management technology, and this should remain a keen focus for executive management and boards. The good news is that current advancements in ultra-low latency trade execution speeds may be reaching their limits.”

In terms of next steps, Rebecca Jackson states that the PRA will this year carry out more work with banks on the adequacy of their counterparty risk management frameworks, specifically directed at their control of intraday risks.