Bank of England calls on ISLA to help OTC market
29 October 2015 London
Image: Shutterstock
The Bank of England has invited the International Securities Lending Association (ISLA) to participate in a sub-group to assist with the implementation of the new term deliver-by-value (DBV) mechanism into the over-the counter market.
ISLA, as part of the committee, will help to address market concerns and participants adopt the new product.
DBV is a settlement mechanism for members of the Certificateless Registry for Electronic Share Transfer (CREST).
Users can deliver a specific basket of securities to the required value from a defined set, such as conventional UK gilts or FTSE 100 equities, to a counterparty. This tool mitigates the need to detail the quantities of each individual security to be delivered.
In a statement on the appointment, ISLA stated: “The product is considered helpful in reducing systemic risk in the UK settlement system.”
ISLA has requested that its members voice any concerns about the implementation. A committee term of reference will also soon be published on the ISLA website.
ISLA, as part of the committee, will help to address market concerns and participants adopt the new product.
DBV is a settlement mechanism for members of the Certificateless Registry for Electronic Share Transfer (CREST).
Users can deliver a specific basket of securities to the required value from a defined set, such as conventional UK gilts or FTSE 100 equities, to a counterparty. This tool mitigates the need to detail the quantities of each individual security to be delivered.
In a statement on the appointment, ISLA stated: “The product is considered helpful in reducing systemic risk in the UK settlement system.”
ISLA has requested that its members voice any concerns about the implementation. A committee term of reference will also soon be published on the ISLA website.
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