BOE Postpones Long Term Repo Operation Due to Tech Issues

Greg Ritchie and Gabriela Mello, Bloomberg News

The Bank of England headquarters in the City of London. Photographer: Hollie Adams/Bloomberg , Bloomberg

(Bloomberg) -- The Bank of England postponed one of its weekly repo operations because its auction platform was experiencing technical difficulties.

Tuesday’s Indexed Long-Term Repo Operation, which was scheduled for 10 a.m. in London, was deferred until the same time on Wednesday due to problems with the Btender auction platform, according to statements from the BOE. A spokesperson at the central bank declined to comment on the cause of the technical issues.

The BOE facility allows banks to borrow cash for a six-month period in exchange for other, less liquid assets. Its usage tends to spike during times of financial stress, having peaked at £7.2 billion during the coronavirus pandemic panic of March 2020. Borrowing at recent operations has been low, with the latest at £10 million.

It’s not the first time technical issues have impacted the BOE’s operations. The Crest financial markets settlement system suffered problems in September 2020, which led to the postponement of BOE gilt purchases. The same platform went down again in 2022, causing the central bank to trigger back-up procedures.

--With assistance from Tom Rees.

(Adds Bank of England spokesperson declining to comment in second paragraph and additional context in final paragraph.)