UK Money Markets Code

UK markets - best practice

The UK Money Markets Code is voluntary.

It sets out the standards and best practice expected from participants in the UK's deposit, repo and securities lending markets.

The UK Money Markets Code superseded previous guidance for participants in these markets provided by the former NIPs Code, Gilt Repo Code and Securities Borrowing and Lending Code.

The UK Money Markets Code is endorsed by the Bank of England's Money Markets Committee (MMC), comprised of market participants from a wide range of banks, other financial and non-financial institutions.

Signing the Code may support your legal position

"The Code is recognised by the FCA as an industry standard. The principles are designed to protect both you and your counterparties, and to ensure orderly and efficient markets. Therefore, among other reasons for signing, we infer that a statement of commitment by a corporate treasury may be a beneficial (and efficient) way of demonstrating best practice when answering 'KYC' questions from its regulated sell-side counterparties.

Corporate treasurers may find it helpful to view the Code as a risk mitigation tool. Following best practice may help you: to keep your internal operations robust in periods of volatility; to know what to expect from your counterparties (and to hold them to account); to reduce settlement risk; and - if things do go wrong - potentially to support your legal position, if you can demonstrate that you were following recognised industry best practice."

James Winterton, associate policy and technical director at the Association of Corporate Treasurers - June 2024.

Good practice as standard

"Both the FX Global and the UK Money Market Codes are voluntary, but drafted to encourage the broadest possible range of market participants to become involved by signing up to the statement of commitment.

The overarching principle of both of these codes is that market participants should strive for the highest ethical standards."

The Treasurer magazine, November 2017, p27 - Sarah Boyce, associate policy and technical director at the Association of Corporate Treasurers.

See also

• Bank of England
• Counterparty
• Financial Conduct Authority (FCA)
• FX Global Code
• Know-your-customer (KYC)
• NIPS Code
• Repo
• Risk mitigation
• Securities lending
• Sell-side firm
• Standard

Other resources

• UK Money Markets Code Updated - James Winterton, associate policy and technical director at the Association of Corporate Treasurers - June 2024
• The UK Money Markets Code - Bank of England - June 2024
• The UK Money Markets Code: explanatory notes - Bank of England - June 2024
• The UK Money Markets Code & Money Markets Committee - Bank of England