Minutes of the London FXJSC Legal Sub-Committee Meeting – 15 November 2022

Minutes

Minute 1 – Introduction and Minutes

Sharon Blackman welcomed new members Mayank Patel from Bank of America and Rowland Stacey from Goldman Sachs. They replace Jateen Shah and Dan Parker, who have stepped down from the Committee. The minutes of the meeting of 6 September 2022 were approved.

Minute 2 – Discussion of Benchmark Regulations in the context of FX

Caroline Dawson of Clifford Chance LLP gave an overview of the IOSCO Principles for Financial Benchmarks, and updated members on legislative developments regarding benchmark regulation in the EU and UK.

Minute 3 – Discussion of US Court Case relating to alleged FX manipulation

Brian Morris of Cleary Gottlieb Steen & Hamilton LLP gave an overview and assessment of a recent US court case concerning Neil Phillips, co-founder of Glen Point Capital. Phillips has been charged with conspiracy to commit commodities and wire fraud, wire fraud, and commodities fraud.

Minute 4 – Discussion of FXJSC continued sponsorship of certain EMTA documentation relating to FX transactions

Sharon Blackman explained the background to FXJSC’s sponsorship of EMTA documentation and questioned whether sponsoring the documentation remained appropriate in light of the FXJSC’s remit. The Legal Sub-Committee has been asked to provide a recommendation to the FXJSC on this issue. From reviewing the EMTA Terms of Reference, sponsorship seemed outside the remit of the FXJSC main committee. Sharon is awaiting feedback from the Committee members on this point. George Johnston informed the Committee members that Andrew Hauser, chair of the FXJSC main Committee, was keen to hear the Committee’s view.

Minute 5 – Discussion on the impacts of the Russian/Ukraine conflict

The Committee members discussed their observations on the legal issues arising from the Russian invasion of Ukraine. The Committee noted that while this was still an issue, there was not as much activity as before.

Minute 6 – Discussion on tabled updates to the Sub-committee’s Terms of Reference

Sharon Blackman outlined proposed changes to the Committee’s Terms of Reference (the ‘ToRs’), which have been drafted with a view to the Committee having regard to the diversity of the Committee members and institutions, and to align with both the FXJSC Main Committee and Operations Sub-Committee ToRs. The amendment will be recirculated, and Committee members are to review it and provide comments.

Minute 7 – Any other business

Sharon Blackman suggested potential topics for discussion for upcoming committee meetings (such as an overview of the collapse of FTX, or US regulators’ investigations of traders’ use of personal devices and apps to conduct business). She asked members to contact her with any other suggestions.

Attendees

Sharon Blackman (Chair) – Citigroup

George Johnston (Secretary) - Bank of England

Rakesh Shah - Standard Chartered

Sunil Samani - XTX Markets

Rowland Stacey - Goldman Sachs

Mayank Patel – Bank of America

David Harris – Financial Conduct Authority

Simon Goldsworthy – Deutsche Bank

Harkamal Singh Atwal – HSBC

Baljit Saini – Natwest

FXJSC Legal Sub-Committee Secretariat

Jutta Huesmann – Bank of England

Ayodele Cameron – Bank of England

Guest attendees

Caroline Dawson – Clifford Chance LLP

Brian Morris – Cleary Gottlieb Steen & Hamilton LLP

Apologies

Gaynor Wood – CLS

Tamsin Rolls – JP Morgan Chase

Nimisha Kanabar – Morgan Stanley

Simon Helm – Tullet Prebon

Richard Lamb – UBS

Diane Bouwmeester – London Stock Exchange Group