Date of meeting: 29 November 2023
Time: 2pm – 2.45pm | Location: Main Oak Room, Bank of England, London, EC2R 8AH
Minutes
Item 1 – Welcome and Apologies
Philippe Lintern (Chair, Bank of England) announced the departures of David Clark (Refinitiv Benchmark Services Ltd) and Zar Amrolia (XTX Markets) and took the opportunity to thank them for their contributions to the FXJSC over the years. Mr Lintern also thanked Kerry Peacock (MUFG Bank), who was stepping down as Chair of the FXJSC Operations Sub-committee but would remain on the Sub-committee. Finally, Mr Lintern thanked Andrew Hauser (Bank of England) for his leadership of the FXJSC over the previous five years.
Mr Lintern welcomed Pooja Rohra (Citadel Securities), Claire Brunton (State Street), and Gillian Ross (Next plc) as observers.
Mr Lintern noted the special event marking the FXJSC’s 50th anniversary taking place after the meeting.
Item 2 – Minutes of the September Meeting
The minutes of the 28 September meeting were agreed.
Item 3 – FXJSC Retrospective and 2024 Planning
Mr Lintern noted the Committee had discussed a broad range of topics during the previous couple of years. The Committee discussed key themes for the FX market going forward, and which topics could be explored in greater depth by the Committee in 2024.
The Committee discussed risk mitigation solutions for currencies not covered by Payment versus Payment (PvP) providers. Members discussed how evolving technology could disrupt traditional settlement models.
Members discussed how developments in technology could lead to changes in FX intermediation. There was also discussion about the rise in FX volume traded through the futures’ market.
The committee discussed the trend among Asset Managers to move back to managing FX in-house.
Mr Lintern noted the Global FX Code review, the move to T+1 settlement of securities, and DE&I would also be covered in discussions during 2024.
Item 4 – FXJSC Sub-Committee Updates
Sharon Blackman (Chair of the Legal Sub-Committee) noted the Sub-Committee had met on 28 November. The main agenda item had been a discussion with the International Swaps and Derivatives Association (ISDA). The discussion included ISDA’s proposed update of the 1998 FX & Currency Option Definitions and the proposed ISDA Notices Hub (an online platform for delivering and receiving notices under ISDA and other Master Agreements).
Kerry Peacock (Chair of the Operations Sub-Committee) noted the Sub-Committee had met on 22 November. Agenda items had included: an update on the shortening securities settlement cycle in the US and a presentation on Artificial Intelligence.
Item 5 – Regular Updates
The Committee had previously received a written summary from the Financial Conduct Authority (FCA) that included updates on: the draft report from the UK’s accelerated settlement task force; IOSCO’s work on developing guidance on pre-hedging; HMT’s extension of the transitional period for third country benchmarks; HMT’s Feedback Statement on future financial services regulatory regime for cryptoassets; and the recently published FCA Discussion Paper DP23/4 on regulating fiat backed stablecoins.
Item 6 – Any Other Business
Mr Lintern informed the Committee that a contingency test would take place on Wednesday 6 December.
Attendees
Alan Barnes – Financial Conduct Authority
Andrew Hauser – Bank of England
David Clark – Refinitiv Benchmark Services Ltd
Galina Dimitrova – The Investment Association
James Kemp – FICC Markets Standards Board
Kerry Peacock (Chair, FXJSC Operations Sub-committee) – MUFG Bank
Kevin Kimmel – Citadel Securities
Lisa Dukes – Corporate Representative - Association of Corporate Treasurers
Marc Bayle de Jesse – CLS
Mimi Rushton - Barclays
Neehal Shah – BNP Paribas
Nina Moylett – M&G plc
Paul Houston – CME Group
Philippe Lintern (Chair) – Bank of England
Rajesh Venkataramani – Goldman Sachs
Richard Bibbey – HSBC
Richard Purssell – Insight Investment
Sally Francis-Cole – London Stock Exchange Group
Sarah Boyce – Association of Corporate Treasurers
Sharon Blackman (Chair, Legal Sub-committee) – Citigroup
Simon Manwaring – NatWest Markets
Sophie Rutherford – State Street
Stephen Jefferies – JP Morgan
Zar Amrolia – XTX Markets
FXJSC Secretariat
George Johnston – Bank of England
Laura Austin – Bank of England
Sam Hewgill – Bank of England
Sita Mistry – Bank of England
Guest attendees
Claire Brunton – State Street
Gillian Ross – Next plc
Pooja Rohra – Citadel Securities
Apologies
Giles Page – Citigroup