Bond Trading, Innovation And Evolution: A Bank Of England Perspective − Speech By Dave Ramsden, Bank Of England Deputy Governor, Markets And Banking, Given At Glaziers Hall, AFME Bond Trading, Innovation And Evolution Forum

Dave Ramsden discusses the Bank of England’s evolving role in bond markets, focusing on the Bank’s approach to normalising its balance sheet and how it is actively working with the market on the future of settlement infrastructure, including through enhancing the RTGS service.

Dave Ramsden

Deputy Governor, Markets and Banking

Speech

Introduction

Thank you to AFME for the invitation to speak at this first forum on bond trading, innovation, and evolution. Given my responsibilities at the Bank my remarks will focus on our perspective of the main themes of the forum in terms of our involvement in and engagement with these key sterling wholesale markets in the financial system. Today’s conference is well timed to take stock of the evolution of the Bank’s trading relationship with a core part of these markets, the market for gilts, through the MPC’s quantitative tightening (QT) programme, a key element in the normalisation of our balance sheet.

The amount of gilts held in the Bank’s Asset Purchase Facility (APF) on behalf of the MPC reached a peak of £875 billion in early 2022 and has since fallen back to £735 billion. As a share of outstanding government debt, the share has fallen from 35% to 31%.

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