ICMA responds to UK government’s consultation on the UK Treasury Bill market
27 February 2026 ICMA has submitted its response to the UK government’s consultation document on the UK Treasury Bill market.
The consultation, jointly published by HM Treasury and the UK Debt Management Office, is intended to better inform the government on the structure of its T-bill issuance programme, as well as to explore options to promote participation in the T-bill market, both via primary market operations and through the development of a more active and liquid secondary market.
In composing its response, ICMA convened a Taskforce of entities active in the UK T-bill market from its deep and diverse membership, including Gilt-Edged Market Makers (GEMMS), UK Treasury Bill Primary Participants (TBPPs), real money and levered investors, as well as relevant market infrastructures.
In its response, ICMA offers its full support for the UK government’s objective of diversifying its financing sources and believes that T-bills can play a more prominent role in its outstanding stock of debt, as well as providing key recommendations to enhance the depth, liquidity, and efficiency of both the primary and secondary markets, including repo. In doing so, ICMA draws on the successful features and experiences of other active T-bill markets, including those of France, Italy and, in particular, the US. Appropriate incentives for Primary Dealers or other liquidity providers are critical, including a dedicated repo standing facility. ICMA also identifies potential sources of new investment, including retail, noting that T-bills offer a secure and higher-yielding alternative for the £1.6tn currently sitting in bank accounts.
ICMA suggests that with the right architecture and a gradual approach, T-bill issuance could form as much as 15% of the UK government’s outstanding stock of debt; a meaningful increase from the current proportion of 3.5%.
For further information on ICMA's initiatives relating to SEC's mandatory clearing for US Treasuries, please visit our webpage.
