The Bank of England (BoE) has published the feedback it received and policy response to its November 2014 consultation on the supervisory approach to implementing the European Securities and Markets Authority’s guidelines and recommendations for establishing consistent, efficient and effective assessments of interoperability arrangements.

Section 3 of the document describes the supervisory approach that the BoE will take towards central counterparty interoperability arrangements, taking into account the feedback received. The supervisory approach should be read in conjunction with the BoE’s published paper on its supervisory approach to financial market infrastructures. As a general matter the BoE expects central counterparties (CCPs) to consider the systemic implications of their actions and to mitigate risk both to themselves and to the broader market.

The Appendix to the document sets out the BoE’s final standards for assessing interoperability arrangements for UK CCPs.

View Implementation by BoE of ESMA’s guidelines and recommendations on CCP interoperability arrangements: summary of feedback received and policy response, 15 July 2015