Also moving to reassure clients was $8.49 trillion manager BlackRock.
"We have been reducing leverage in some of our LDI funds, acting prudently to preserve our clients' capital in extraordinary market conditions," a spokesman said in an email. "Trading in BlackRock funds has not been halted, nor has BlackRock ceased trading in gilts."
Jos Vermeulen, head of solution design at Insight Investment, said in an email: "Given recent market events we are working with some U.K. pension fund clients to reduce leverage in their LDI strategies. This aims to ensure that their liability hedges remain resilient."
A spokesman for Schroders was not immediately available to comment. A spokesman for LDI manager Columbia Threadneedle Investments, which now owns the legacy BMO EMEA business, did not immediately respond to a request for comment.
Following its commitment to purchase up to £65 billion in long-dated gilts — at a rate of up to £5 billion per day until Oct. 14 — the BOE on Monday said in a market notice that it is "studying patterns of demand and will continue to use reserve pricing in order to ensure the backstop objective" of its asset purchases is delivered. "In addition, the bank stands ready to adjust any of the other parameters of the auction in order to secure that objective," the notice said.
Also, the BOE reiterated that, starting Tuesday, it was asking "gilt-edged market makers" — its counterparties in gilt markets — to identify whether offers in gilt auctions are being made on behalf of themselves, clients or another dealer. The bank had already outlined the requirement in a market notice dated Sept. 1, in relation to planned quantitative tightening.
"The bank is collecting this information to get a better understanding of the effect of its operations on the broader market and the financial stability objective of these purchases," the BOE said in its notice.