Emma RadmoreBoE has announced it is taking supervisory action over the operational settlement outage suffered by Euroclear UK and Ireland in September 2020, which caused significant market disruption.
The outage was caused by a messaging software issue. Euroclear commissioned an independent review into what happened and now, as a result of the review, is putting in place a remediation programme.
BoE has issued a direction under s191 Banking Act 2009 requiring that the recommendations of the review be implemented, and is also using its powers under FSMA to appoint a skilled person to assess implementation of the recommendations. The skilled person is to report to BoE in the first half of 2022.
BoE has made it clear that this is not enforcement action and is proportionate to the nature and impact of the incident.
