Minutes of the London FXJSC Operations Sub-Committee Meeting – 16 June 2026
The desk maintains that the overarching stability exhibited in FX markets, as highlighted in the recent FXJSC Operations Sub-Committee Meeting, is poised to influence future trading decisions. Per the full note from the Bank of England, the discussions underscored that FX markets have remained orderly despite geopolitical pressures. This reflects a resilience that may foster more confident participation from institutional traders moving forward.
What the desk is arguing
The desk argues that the takeaways from the FXJSC meeting indicate a cautiously optimistic outlook for the FX markets in the near term. Notably, the committee reported continued orderliness in FX operations, even amidst geopolitical uncertainties. This suggests traders might benefit from maintaining positions in stable pairs, anticipating less volatility.
Additionally, members discussed developments such as the potential role of digital assets in FX and updates on turnover survey results. These updates may provide important contextual shifts for market participants, urging them to stay informed on future innovations that could reshape trading dynamics.
Where it sits in our coverage
Our current consensus target for GBP/USD is set at 1.075, within a trader range spanning from 1.04 to 1.12. This is supported by forecasts from various firms including: - jpmorgan: target of 1.10 for Mar26 - bofa: target of 1.04 for Mar26
The desk's view is aligned with the jpmorgan perspective and sits near the upper bound of the spread, reflecting a balanced anticipation of stability amidst shifting market conditions.
How other firms see it
Firms such as jpmorgan and citi appear to be aligned with the desk's cautious optimism regarding FX market stability. Conversely, firms like bofa hold a more conservative stance, forecasting lower levels. Related currency pairs to monitor include the broader EUR/USD trajectory, which reflects similar sentiments regarding the overall health of the financial markets and lends insight into potential correlations with the Bank of England's policies.
What the calendar says
With no imminent high-impact events on the calendar, the focus shifts towards ongoing geopolitical developments and market sentiment as primary drivers for FX volatility in the coming weeks. This lull in events places greater emphasis on trader sentiment as discussions from the FXJSC continue to resonate in the market.
How firms align with this view
Aligned with the desk view
Contrary positioning
Key takeaways
- 01FX markets exhibit resilience despite geopolitical uncertainty.
- 02The FXJSC meeting highlighted orderly market conditions and opportunities for institutional traders.
- 03Digital assets and turnover trends are becoming focal points for future discussions.
- 04Consensus among key firms leans towards stability in GBP/USD.
Market implications
Traders should monitor GBP/USD around the 1.075 mark, as prevailing market conditions suggest potential stability. With the absence of scheduled events in the near term, individual firm reports will greatly influence directional flows in the coming months.
Risks to this view
A sudden shift in geopolitical developments or macroeconomic signals, such as unexpected inflation data or central bank announcements, could lead to increased volatility, potentially undermining the current optimistic sentiment.
Home Minutes of the London FXJSC Operations Sub-Committee Meeting – 16 June 2026 Minutes of the London FXJSC Operations Sub-Committee Meeting – 16 June 2026 The Bank of England chairs the London Foreign Exchange Joint Standing Committee (FXJSC) Operations and Legal Sub-Committees. The FXJSC is made up of market participants, infrastructure providers and the UK financial regulators. Published on 07 October 2026 Browse content Contents Date of meeting: 16 June 2026 Time: 14:00 – 16:00 | Location: Bank of England, Moorgate Building, 20 Moorgate, London, EC2R 6DA Minutes Item 1 – Welcome and Apologies James Kaye (Chair, HSBC) welcomed new Committee members: Adam Jukes (Deutsche Bank) replacing Nimit Jobanputra, and Jonathan Morris (Goldman Sachs) replacing Anna Chadderton.
Adam Paris (MUFG) was welcomed as an observer. Apologies were noted from Andrew Grice (Bank of England), Claire Forster-Lee (Morgan Stanley), Daniel Hoye (NatWest Markets), Fiona O’Riordan (Citi), Gail Smith (Royal Bank of Canada), Hendrik van der Merwe (Northern Trust), James Hull (MillTech FX) and Jermain Nooks (Investment Association). Item 2 – Minutes of the March 2026 Operations Sub-Committee Meeting and Feedback from the March 2026 Main FXJSC Committee Meeting The minutes from the 18 March 2026 FXJSC Operations Sub-Committee meeting were agreed.
The Chair provided an overview of the March 2026 Main Committee meeting. Members had discussed recent FX market developments, noting that FX markets had remained orderly despite geopolitical uncertainty and a broadly cautious environment. Members received updates on FX turnover survey results, the potential role of digital assets in FX, and ongoing Global Foreign Exchange Committee (GFXC) work including preparations for the 2027 FX Global Code review, FX settlement data collection and corporate outreach.
Item 3 – Wholesale FX Innovation John Jackson, Pablo Sanchez Zapata and Regis Bouther (Bank of England) provided an update on work to support innovation in wholesale FX markets and improve cross border settlement. The presentation included an overview of policy and international collaboration initiatives, and early stage experimentation to explore how new approaches could enhance FX settlement efficiency and resilience. The Committee discussed key limitations, potential use cases and timelines, and the presenters agreed to return once the technical and policy reports arising from the ongoing experimentation had been finalised.
Item 4 – T+1 Securities Settlement Dhruv Manocha and Holly Snaith (Bank of England) provided an overview of the planned move to T+1 securities settlement in the UK and Europe from a back office perspective. Mr Manocha highlighted the impact the transition would have on settlement lifecycles, key UK/EU differences, and the need for earlier trade processing. The Bank’s initial preparations as both a custodian and market participant were also outlined.
The Committee discussed potential implications of the move to T+1 securities settlement on the FX market, noting limited systemic concerns but highlighting the importance of preparedness and operational clarity. Item 5 – Swift Update Dean Chard (Swift) provided an update on ongoing collaboration with the International Swaps and Derivatives Association (ISDA) to revise FX Category 3 messaging standards. This included three change requests submitted by ISDA, which Mr Chard noted would be shared for industry consultation.
All updates were expected to form part of the November 2027 transition. Item 6 – Global Foreign Exchange Committee (GFXC) Update Natalie Lovell (Bank of England) provided an update on GFXC initiatives, including the publication of the Bank for International Settlements (BIS) FX settlement data 1 and next steps for the FX Settlement Risk Working Group. Ms Lovell also outlined plans for publishing the GFXC’s semi-annual FX settlement data.
Ms Lovell reported on broader GFXC working group activity and noted that a new Technology and Innovation Working Group had been formed. Finally, Ms Lovell outlined preparations for the 2027 FX Global Code review. Item 7 – Continuous Linked Settlement (CLS) Update Andrew Cooper (CLS) summarised recent CLS activity, noting continued high settlement volumes amid ongoing market volatility, with potential record values on the forthcoming International Monetary Market (IMM) settlement day.
Mr Cooper flagged a planned major technical cutover of CLS data centres at the end of June, highlighting that this represented a significant technology change and that firms should remain operationally prepared. Finally, Mr Cooper reported on progress toward introducing US dollar/Chinese yuan (offshore) CLS settlement. Item 8 – Global Foreign Exchange Division (GFXD) Update Steve Forrest (UBS) provided an update from the Global Foreign Exchange Division (GFXD) Operations Committee.
Mr Forrest noted ongoing work across several areas including improvements to non-deliverable forward (NDF) messaging practices, future priorities for the 2027 workplan, and increased focus on themes such as artificial intelligence (AI), netting and custodial issues. Mr Forrest highlighted a rise in FX claims and associated operational challenges, with further work underway to explore greater transparency and accountability. Mr Forrest referenced ongoing industry engagement on upcoming Swift changes and ISDA definitions, noting the importance of ensuring these remain on firms’ radar.
Item 9 – Financial Conduct Authority (FCA) Update Ellie McCormack (FCA) outlined ongoing FCA activity, noting continued collaboration with the Bank on regulatory developments including European Market Infrastructure Regulation (EMIR) and Markets in Financial Instruments Directive (MiFID). Ms McCormack highlighted the establishment of an industry transaction reporting and post-trade working group, established jointly by the Bank and FCA, and noted upcoming BIS‑related discussions and further work on wholesale markets. Attendees Aaron Mills – Citadel (Deputy Chair) Adam Jukes - Deutsche Bank Andrew Cooper - CLS Dean Chard – Swift Ellie McCormack – FCA Gary Cunningham – Insight Investment James Andrews – JP Morgan James Kaye – HSBC (Chair) Jonathan Morris - Goldman Sachs Kerry Peacock – MUFG Loic Moreau – LSEG Rebecca Fishwick - Barclays Steve Forrest - UBS Natalie Lovell – Bank of England Observers Adam Paris – MUFG FXJSC Secretariat Eleanor Garrett - Bank of England Matthew Hartley – Bank of England Apologies Andrew Grice – Bank of England Claire Forster-Lee - Morgan Stanley Daniel Hoye – NatWest Markets Fiona O’Riordan – Citi Gail Smith – Royal Bank of Canada (Deputy Chair) Hendrik van der Merwe – Northern Trust James Hull – MillTech FX Jermain Nooks – Investment Association Convert this page to PDF Other news News // Minutes 07 October 2026 Minutes of the London FXJSC Legal Sub Committee...
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