Bank Of England Proposes New Settlement System For Gilt Repos

The Bank of England (BoE) has released a consultative paper outlining new proposals for organising settlement in the soon-to-be-launched U.K. gilt repos and strips markets. According to the document, current Central Gilts Office (CGO) settlement systems are too "old and inflexible" to cope with the surge in volumes expected once repos and strips are introduced. The paper goes on to recommend that the CGO develops a new system based on Crest, the forthcoming settlement system for London Stock