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(MNI) London – All timings are subject to change.

Monday 8 December:

• Ukraine: President Volodymyr Zelenskyy is in London for talks with the leaders of the E3 countries (France, Germany, the UK). The four leaders are due to discuss the framework peace deal that the US claims is in its final stage of finessing, but neither Moscow nor Kyiv have indicated their acceptance. Speaking on 7 December, US President Donald Trump claimed “Russia is, I believe, fine with [the deal], but I’m not sure that Zelenskyy’s fine with it. His people love it. But he isn’t ready.” As well as his meeting with the E3 leaders, Zelenskyy will travel to Brussels for talks with the presidents of the European Commission and European Council, and NATO Secretary General Mark Rutte.

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• The Bank of England has announced that it will be narrowing the spread on its OSF (Operational Standing Facility) to lend / borrow at Bank Rate +/-15bp (rather than the previous spread of +/-25bp). The facility allows counterparties to borrow / deposit at the Bank overnight using Level A collateral. The change will take effect immediately.
• In practice this may help in times when RONIA-Bank Rate spreads get to more excessive levels (which can also have impacts on spreads used on instruments such as FX forwards).
• On a day-to-day basis when spreads are more contained there is no additional incentive to make use of the OSF - it is cheaper to use the weekly STR operation to borrow from the BOE at Bank Rate +3bp using the same collateral set. So this change can be thought of one that will dampen volatility around times when liquidity is temporarily scarce between next weekly STR operations.
• The Market Notice out today also stated that "The Bank is reviewing the DWF as the second step in strengthening the provision of reserves through our on-demand, bilateral facilities and intends to publish an announcement relating to any changes to this facility in the first part of 2026."