LONDON, Jan 14 (Reuters) - The Bank of England is making progress towards ensuring that the financial system is safe in the event of a collapse of an institution outside the traditional banking sector, Deputy Governor Dave Ramsden said on Wednesday.
The British central bank is considering what failure arrangements are needed for important stablecoins and it still has to do more to ensure that firms and the BoE are ready to wind up a clearing house safely, Ramsden said.
"Looking ahead, it's important our resolution regime responds to changes in the financial system, including the growth of market-based finance and structural developments such as the introduction of new financial products," he said in the text of a speech he was due to give at King's College London.
Ramsden said the BoE expected to launch a consultation later this year on ways to shut down safely a failing central counterparty (CCP).
"We are working to enhance our own operational capacity and preparedness to execute a CCP resolution and we are working with firms to ensure they adequately progress their resolution capabilities," he said.
The BoE has included in its stress tests of the financial sector CCPs such as ICE Clear Europe, LCH Limited, part of London Stock Exchange Group, and LME Clear, owned by Hong Kong Exchanges and Clearing.
The most recent stress test of CCPs concluded last month that the firms already held sufficient resources to absorb losses caused by an extreme global slowdown and default of some of their members.
(Writing by William SchombergAdditional reporting by Phoebe SeersEditing by David Milliken)
