Bank of England Takes Action Against Euroclear for System Outage
The news site marketscreener.com reports that the Bank of England has taken supervisory action against Euroclear UK and Ireland after technical issues triggered an outage last September of its CREST financial markets settlement system, which is critical in enabling stock or bond trades.
This serious disruption caused the Bank of England to delay the purchase of British government bonds under quantitative easing. By invoking section 191 of the Banking Act 2009, the Bank of England requires an independent reviewer to assess the situation and provide recommendations, which Euroclear must then implement. Further, an outside party must assess the implementation and report back to the Bank of England by the first half of 2022.
Euroclear UK and Ireland has stated that it is fully committed to complying with the Bank of England’s requirements, and that it will keep regulators, clients and stakeholders appraised of the review process and resulting recommendations and implementation.
© Reuters 2021