Minutes of the London FXJSC Main Committee Meeting – 25 September 2025

Minutes

Item 1: Welcome and Apologies

Andrea Rosen (Chair, Bank of England) confirmed that she had taken over as Chair from Vicky Saporta, following Vicky’s recent announcement. Ms Rosen noted apologies from Alan Barnes (Financial Conduct Authority), Galina Dimitrova (The Investment Association), Philippe Lintern (Bank of England), Rajesh Venkataramani (Goldman Sachs), Richard Bibbey (HSBC) and Sophie Rutherford (State Street).

Ms Rosen welcomed Meera Chandan (JP Morgan) and Timothy Graf (State Street) as guest presenters, and Oliver McCausland (Financial Conduct Authority) and Hugo Gordon (The Investment Association) as alternates. She also welcomed Tsvetoslav Tsonev (Aviva Investors) and Nick Singh (M&G) as observers.

Ms Rosen announced that Jatin Vara (BlackRock) had joined the Committee. She also flagged that Sarah Collins (UBS Asset Management) had stepped down from the Committee and thanked Ms Collins for her valuable contributions.

Item 2:

The minutes of the 26 June 2025 meeting were approved.

Item 3:

Stephen Jefferies, Meera Chandan (JP Morgan) and Timothy Graf (State Street) presented an update on recent market developments.

Ms Chandan highlighted that economic growth, particularly in the US, had been resilient and market volatility had eased. This environment had supported procyclical currencies (those that tend to strengthen when global growth prospects improve) which contributed to a weaker US dollar. Ms Chandan also noted that recent fiscal policy trends and monetary policy were key drivers influencing global currency performance.

Mr Graf gave an overview of asset manager flows into UK and US assets, noting that overall risk appetite had remained firm, with equity allocations (relative to bonds) returning to their highest levels since January 2025. Mr Graf also discussed recent FX hedging activity and highlighted some of the differences between UK and US-based investors’ hedging behaviour.

The Committee discussed recent drivers of global bond market moves and inflation dynamics in the UK and the US. Members also considered how these developments – along with the expected impact of tariffs - could influence the FX market and the broader global economic outlook.

Item 4:

Munalula Lisimba (Bank of England) presented the key findings of the April 2025 FXJSC Turnover Survey. Mr Lisimba noted that daily average FX turnover had reached a record £4,045 billion, which was the largest survey-on-survey increase since 2013. Mr Lisimba added that FX spot and options had been the main contributors to the growth of FX turnover in London.

Item 5:

Jeremy Smart (XTX) gave an overview on the use of AI in the FX market, with a particular focus on the use of deep learning and machine learning. Mr Smart outlined the potential implications AI could have on FX market making and noted that the development of deep learning models required significant computing power and investment. Mr Smart added that high barriers to entry could lead to further bifurcation of the FX market, where only a small number of participants are able to compete effectively in the primary market.

Mr Smart further noted that increased automation could reduce the need for lower-skilled coding roles, as AI systems become capable of performing many of these tasks. In contrast, demand is likely to rise for highly skilled technical specialists who can develop, manage, and oversee advanced AI systems. The Committee also discussed the impact AI could have on current technology and compliance considerations for regulated firms.

Item 6:

Natalie Lovell (Bank of England) provided an update on the work of the Global Foreign Exchange Committee (GFXC). It was noted that the GFXC Secretariat would collaborate with the Bank for International Settlements (BIS) and the Committee on Payments and Market Infrastructures (CPMI) Secretariat to co-author an article on the key findings from the FX settlement risk section of the 2025 BIS Triennial Survey.

Ms Lovell also noted that the GFXC FX Settlement Risk Working Group would produce a discussion paper on the impact on the FX market as a result of the upcoming UK, EU, and Swiss move to T+1 securities settlement.

Lisa Dukes (Dukes and King) provided an update on the GFXC Motivation for Code Adherence Working Group. Ms Dukes explained that the group had been divided into three subgroups which were focused on: i) asset manager and hedge fund outreach, ii) engagement with corporates, and iii) FX Global Code training. Ms Dukes noted that the Working Group was also aiming to raise its media presence and increase participation in industry events - particularly through collaboration with trade associations and corporate networks.

Item 7:

Oliver McCausland provided an update on a recent FCA/Bank of England guidance consultation on the UK European Market Infrastructure Regulation (UK EMIR) reporting framework, which governs how derivatives are reported to trade repositories. Mr McCausland noted that the consultation included guidance on how to accurately report FX swaps. Mr McCausland added that the consultation had closed, the responses were being analysed and the FCA would publish finalised Q&As in due course.

Item 8:

Sharon Blackman (Chair of the Legal Sub-Committee) noted that the Legal Sub-Committee had met on 17 September. The discussion had included the 29 September 2025 deadline for EU member states to align national laws with the revised Markets in Financial Instruments Directive (MiFID).

James Kaye (Chair of the Operations Sub-Committee) noted that the Operations Sub-Committee had met on 18 September. The Operations Sub-committee had continued to develop a communications playbook for use during systemic issues in the FX market. There had also been a presentation from the Bank of England on proposals to extend RT2 and CHAPS settlement hours^{footnote [1]}. Mr Kaye also noted that the Principles for Managing an FX Settlement Outage (CLS Playbook) had also been published on the CMORG website on 27 August.

Item 9:

Shivani Khetia (Bank of England) provided an overview of topics discussed by other local FX committees in 2025 to support the FXJSC’s forward agenda planning for 2026. The Committee shared their experiences from other local FX committees and flagged a range of potential discussion topics for 2026, including cryptocurrency, stablecoins and the implications of T+1 Settlement on the FX market. It was noted that Diversity, Equity and Inclusion (DE&I) initiatives would also remain central to the FXJSC’s forward agenda.

Attendees

Andrea Rosen – Bank of England (Chair)

James Kaye (Chair, FXJSC Operations Sub-committee) – HSBC

James Kemp – Financial Markets Standards Board

Jeremy Smart – XTX Markets

Kate Hill – Aviva Investors

Lisa Dukes – Corporate Representative, Association of Corporate Treasurers

Mani Natarajan – Morgan Stanley

Marc Bayle de Jesse – CLS

Mimi Rushton – Barclays

Neehal Shah – BNP Paribas

Nina Moylett – M&G

Paul Houston – CME Group

Sally Francis-Cole – London Stock Exchange Group

Sarah Boyce – Association of Corporate Treasurers

Sarah Collins – UBS Asset Management

Sharon Blackman (Chair, FXJSC Legal Sub-committee) – Citigroup

Simon Manwaring – NatWest Markets

Stephen Jefferies – JP Morgan

FXJSC Secretariat

Carly Jones (Legal Secretariat) – Bank of England

James Brennan (Legal Secretariat) – Bank of England

James O’Connor – Bank of England

Munalula Lisimba – Bank of England

Natalie Lovell – Bank of England

Shivani Khetia – Bank of England

Guest attendees

Hugo Gordon – The Investment Association

Meera Chandan – JP Morgan

Nick Singh – M&G

Oliver McCausland - Financial Conduct Authority

Timothy Graf – State Street

Tsvetoslav Tsonev – Aviva Investors

Apologies

Alan Barnes – Financial Conduct Authority

Galina Dimitrova – The Investment Association

Jatin Vara - BlackRock

Philippe Lintern – Bank of England

Rajesh Venkataramani – Goldman Sachs

Richard Bibbey - HSBC

Sophie Rutherford – State Street