The PRA publishes Pillar 2 liquidity consultation paper

May 12, 2016

The Prudential Regulation Authority (PRA) published today a consultation paper which proposes a statement of policy on its approach to three aspects of Pillar 2 liquidity:

  • Intraday risk,
  • debt buyback,
  • and non-margined derivatives.

The consultation paper also outlines the PRA’s Pillar 2 objectives and scope and an early overview of future Pillar 2 approaches that the PRA has not yet set out proposals for.

The PRA is seeking specific feedback from firms on those elements where its thinking is advanced enough to make specific proposals. It also invites early views from the industry on key future elements of the regime where it is not yet ready to make specific proposals.

The consultation period closes on 12 August 2016.

The consultation paper can be found on the BoE website here.

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