In derivatives, the BoE supervises UK central counterparties and makes the technical standards that specify the classes of OTC derivatives subject to the clearing obligation under the UK version of EMIR. A central counterparty outside the UK can provide clearing services in the UK once the BoE recognizes it1. For the technical standards on the dates and counterparty categories of the clearing obligation, the BoE covers persons authorized by the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) covers all other cases2.

The BoE also administers SONIA, the sterling benchmark rate. It took on that responsibility in 20163.

The BoE states its purpose as maintaining monetary policy and financial stability. The Bank of England Act 1998 sets out, in separate Parts, the Bank's constitution and financial arrangements, financial stability, monetary policy, prudential regulation, and the regulation of central counterparties45. The PRA is the Bank's regulatory arm4.

Notes

  1. Bank of England, "Financial market infrastructure supervision" (checked on October 13, 2026), the opening (the BoE supervises certain UK financial market infrastructures) and "Recognised non-UK CCPs" (recognition of non-UK central counterparties). ↩

  2. The UK version of EMIR on legislation.gov.uk (checked on October 13, 2026), Article 5(2)(a) and (b). ↩

  3. Bank of England, "SONIA interest rate benchmark" (checked on October 13, 2026), the opening ("We are the administrator for SONIA." and the Bank's taking responsibility in 2016). ↩

  4. Bank of England, "About the Bank of England" (checked on October 13, 2026), "We are the UK's central bank" (the purpose) and the description of the PRA as the regulatory arm. ↩ ↩2

  5. The Bank of England Act 1998 on legislation.gov.uk (checked on October 13, 2026), the table of contents (Part I, Part 1A, Part II, Part 3A, and Part 3B). ↩