Through the work of the Financial Policy Committee and the Bank more widely (including Governors’ participation in the FSB), as well as the FCA, the UK has been actively engaging with this programme. 17. For example, see the FSB’s publication  of a framework on MMF resilience in 2021, and subsequent UK Discussion  paper . On OEFs, we strongly support global policy actions to increase resilience, and look forward to the upcoming FSB proposals to address vulnerabilities arising from liquidity mismatch. 18. Specifically, the European Market Infrastructure Regulation (EMIR), Sterling Money Market Daily data (SMMD) collection, and MiFID II  . 19. To assess the risk of leverage we need balance sheet metrics (e.g. notional) as well as risk and liquidity measures. (see NBFI leverage deep dive, November 2018 FSR  )  20. The Bank highlighted the need for developing consistent leverage metrics in its public response  to IOSCO report  on leverage. 21. See SEC Proposes to Enhance Private Fund Reporting 22. See Review of margining practices 23. The 6 areas for policy work are: increasing transparency in centrally cleared markets; enhancing liquidity preparedness of market participants; identifying data gaps in regulatory reporting; streamlining variation margin processes in centrally and non-centrally cleared markets; evaluating the responsiveness of both centrally cleared and non-centrally cleared initial margin models to stress. 24. See Financial Policy Summary and Record – October 2020 25. See From Lender of Last Resort to Market Maker of Last Resort via the dash for cash 26.

Meanwhile, it became clear to us that the standardisation of mortgage origination documents would facilitate the securitisation of mortgages more efficiently, by removing the need for due diligence review of documentation by credit rating agencies and investors. The HKMC therefore spent considerable efforts in promoting such standardisation. With the generous support of the legal fraternity and the banking industry, the HKMC introduced, in July 2001, the Model Mortgage Deed and the Model Deed of Guarantee and Indemnity. Fourteen major mortgage lenders have since adopted these model documents. Further standardisation of mortgage origination documents is in progress. It was against this background that the HKMC found it able to embark on another MBS programme the Bauhinia MBS Programme. The first series of MBS under that programme was issued in March 2002 and amounted to $ billion. The paper issued was in the form of bonds that investors are familiar, with a secondary market of considerable liquidity. Great care has been taken to design the Programme in such a way as to provide a convenient, flexible and cost-efficient platform for the issue of MBS. Benefiting from the standardisation of product structure and legal documentation, the leadtime for arranging an issue has been shortened substantially, from six to nine months for a standalone issue, to a few weeks under the Bauhinia MBS Programme. The current issue of $ billion of MBS is the second series under the Bauhinia MBS Programme. We are grateful and greatly encouraged by the enthusiastic response of the underwriting banks and investors.