BoE looks to fix flaws in funds’ use of swing pricing
Central bank finds some funds overestimate the liquidity of their assets
The Bank of England says it wants to improve the way open-ended funds use swing pricing, in a bid to prevent runs on stressed firms.
The BoE’s financial policy committee (FPC) said today (March 26) it will aim to promote “more consistent and complete swing pricing”. The central bank said it plans to seek a common approach internationally via the Financial Stability Board (FSB). The move is part of broader efforts by the BoE to increase the stability of the non-bank sector and increase
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