Prudential Regulation Authority to be legally integrated into Bank of England

Maria Nikolova

Tier 1 prime brokerage desks at London’s dealers that are responsible for 49% of all global FX order flow are regulated by the PRA.

london

It seems that the days marked by concerns over the ‘twin peaks’ model are so far away, when in fact they are not, and, now, another structurally important change is in store for the UK financial services sector regulation.

Effective March 1, 2017, the Prudential Regulation Authority (PRA) will be brought within the single legal entity of the Bank of England, as the PRA Board will be replaced by the Prudential Regulation Committee (PRC). The changes are happening under the Bank of England and Financial Services Act 2016.

What will change?

  • Effective March 1, 2017, the PRA’s most important supervisory and policy decisions will be made by the PRC. The PRC replaces the PRA Board as the governing body of the PRA as part of the Bank of England.
  • The PRC will be on the same legal footing as the Monetary Policy Committee and the Financial Policy Committee.
  • The PRA’s legal status as a subsidiary company will be terminated.

Why is it important?

Because the PRA is responsible for the regulation of the biggest financial institutions, including Tier 1 banks whose prime brokerage desks are responsible for 49% of all global FX order flow and decide to extend (or not!) liquidity to OTC markets.

The PRC members

Then and now

When, back in April 2013, the Financial Services Authority (FSA) was replaced with the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), the PRA got a number of statutory objectives, including the promotion of the safety and soundness of all the firms it supervises. The regulator was required to focus chiefly on the harm that firms can cause to the stability of the UK financial system and to prevent such harm from happening.

After the latest raft of reforms, the statutory objectives of the PRA remain unchanged. The PRA’s operational independence will be preserved, while the changes are aimed at the promotion and the sharing of knowledge, expertise, and analysis throughout “One Bank”.

Read this next

Fintech

Telegram CEO’s Bitcoin stash valued in hundreds of millions

Telegram CEO Pavel Durov revealed that he has held several hundred million dollars in fiat and bitcoin for the past decade.

Digital Assets

Bitcoin drops below $60K as halving just 300 blocks away

Bitcoin fell below the $60,000 mark on April 17, just days before a scheduled reduction in mining rewards, known as the “halving,” which is set to occur on April 20.

Chainwire

New Meme Coin ICO Dogeverse Raises $6 Million After Completing Coinsult Audit

A new multichain meme coin, Dogeverse, has raised $6 million in its presale and recently passed a smart contract audit.

The new meme coin leverages bridge technology, ensuring the token is available across the most prominent on-chain markets.

Retail FX

Interactive Brokers posts Q1 earnings, raises dividend

Interactive Brokers Group Inc (NASDAQ:IBKR) announced its first-quarter financial results for the period ending March 31, 2024. The leading automated global electronic broker reported a GAAP diluted EPS of $1.61 and an adjusted EPS of $1.64.

Fundamental Analysis, Tech and Fundamental

Global FX Market Summary: USD, FED, Gold  April 17 ,2024

The Fed’s hawkish stance on interest rates is strengthening the US dollar while central banks globally grapple with inflation and economic growth.

Digital Assets

Kraken launches self-custodial wallet, joining competitors like Coinbase

Kraken, the second-largest U.S.-based cryptocurrency exchange, has introduced its own digital wallet, aligning its offerings with those of competitors like Coinbase.

blockdag

BlockDAG’s Lunar Teaser Skyrockets Presale to $17.8M! Polkadot’s Price Soars with Optimism & Chainlink Unveils Updates

Polkadot (DOT) price prediction expects a rally as DOT garners attention for its high development activity, whereas Chainlink launches a new bridging tool. Meanwhile, BlockDAG has entered stage 9, with an impressive $17.8 million garnered in its ongoing presale.

Chainwire

MetaWin Announces Innovative TOKENIZED Tesla Cybertruck Contest on Ethereum’s Base Layer 2 Blockchain

This NFT, which represents full ownership rights to The Cybertruck, has been launched on the Ethereum Base Layer 2 blockchain operated by cryptocurrency giant Coinbase.

Tech and Fundamental, Technical Analysis

S&P 500 index Technical Analysis Report 17 April, 2024

S&P 500 index can be expected to fall further toward the next support level 5000.00, followed by 4940.00 (which reversed the price twice in February).

<