Proposals for the overnight market We are proposing to adjust the format of these SPRA (and SRA) operations from offering primary dealers a fixed amount at the target rate, to a competitive and discriminatory price auction at market rates. We will also increase both the aggregate amount of each SPRA and SRA operation and the limit for each counterparty.
These changes will allow firms that need liquidity to bid for a higher amount in any given round. We expect that this will help distribute liquidity more efficiently to those that need it most. At the same time, we may accept larger deviations from the target rate before we step in.