Minutes of the London FXJSC Operations Sub-Committee Meeting – 18 March 2026
The desk views the recent commentary from the FXJSC Operations Sub-Committee meeting as indicative of a stable FX market despite rising geopolitical tensions and operational challenges. The meeting highlighted no significant operational issues in the face of increased FX volumes, which is critical context for traders approaching the market environment post-March 2026. Per the full note source, the absence of material operational challenges is a reassuring signal amidst elevated trading activity, which could influence liquidity and price volatility in the coming months.
What the desk is arguing
The desk argues that despite concerns over geopolitical and cyber threats, the operational integrity of the FX market remains intact, which could support continued investor confidence. This aligns with discussions noted in the FXJSC meeting, where it was confirmed that increased trading volumes have not led to identified operational issues.
The spotlight on rising FX options market activity, along with the feedback on the BIS 2025 Triennial Survey results, suggests that market participants are adapting to new dynamics effectively. The discussion of geopolitical risk also resonates, as participants expressed confidence in market infrastructure resilience amid volatility.
Where it sits in our coverage
Currently, our consensus target maintains a neutral stance at 1.075, with some divergence among key firms. Notable targets include: - jpmorgan: 1.10 - bofa: 1.04
Given that jpmorgan sits above our consensus target while bofa is below, this may indicate varied sentiment on the sustainability of current FX levels, particularly in context to the market's operational resilience.
How other firms see it
Firms like jpmorgan and ubs share an aligned perspective on market stability in the wake of the FXJSC's commentary, suggesting a cautiously optimistic view towards trading conditions. In contrast, firms such as bofa remain concerned about pressures that could arise from geopolitical factors.
Relevant currency pairs to monitor include GBP/USD, given its sensitivity to BoE policy decisions and prevailing market dynamics shaped by the ongoing geopolitical landscape. Watching developments in these pairs will provide additional insights into broader FX sentiment.
How firms align with this view
Aligned with the desk view
Contrary positioning
Key takeaways
- 01FXJSC meeting noted increased volumes with no material operational issues identified.
- 02Geopolitical risks are acknowledged but deemed manageable by key market participants.
- 03Consensus target remains at 1.075 with diverse firm perspectives indicating market divergence.
- 04Monitoring GBP/USD will be critical as geopolitical landscape evolves.
Market implications
Traders should track the GBPs response to upcoming geopolitical events and market liquidity levels as key risk indicators for price movements. Watching technical levels at 1.075 will also be critical; a breach above this could signal further bullish momentum.
Risks to this view
Heightened geopolitical tensions could lead to sudden market shocks, causing increased volatility that may disrupt operational stability in FX markets. Should significant operational issues arise, confidence in the infrastructure could wane, leading to a sell-off.
Home Minutes of the London FXJSC Operations Sub-Committee Meeting – 18 March 2026 Minutes of the London FXJSC Operations Sub-Committee Meeting – 18 March 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 02 July 2026 Browse content Contents Date of meeting: 18 March 2026 Time: 14:00 – 16:00 | Location: Bank of England, Threadneedle Street, EC2R 8AH Minutes Item 1 – Welcome and Apologies James Kaye (Chair, HSBC) welcomed new Committee members: Ellie McCormack (FCA) replacing Oliver McCausland, and Hendrik van der Merwe (Northern Trust) replacing Nikki Woodley.
Adam Jukes (Deutsche Bank) was welcomed as an observer. Apologies were noted from Claire Forster-Lee (Morgan Stanley), Fiona O’Riordan (Citi) and Jermain Nooks (Investment Association). Item 2 – Minutes of the November 2025 Meeting and Feedback from the November 2025 Main FXJSC Committee Meeting The minutes from the 24 November 2025 combined FXJSC Operations and Legal Sub-Committee meeting were agreed.
The Chair provided an overview of the November 2025 Main Committee meeting. Members had discussed recent foreign exchange (FX) market developments, including growth in the FX options market. The Main Committee also discussed the Bank for International Settlements (BIS) 2025 Triennial Survey turnover results.
Item 3 – Emerging Risks to FX Market Stability: Geopolitical and Cyber Threats The Chair introduced the agenda item and provided context on the geopolitical backdrop and elevated FX volumes, including increased reliance on core FX market infrastructure and operational resilience. The Chair opened the discussion and members collectively noted that, despite increased FX volumes and market volatility, there had been no material operational issues identified. Item 4 – LCH FX Clearing in 2026 Loic Moreau (LSEG) provided an overview of FX clearing developments in 2026.
The presentation covered trends in LSEG’s cleared volumes and market penetration across key FX products. The presentation also highlighted continued growth in cleared activity, increased client participation, and recent developments in product scope, connectivity and clearing infrastructure. Item 5 – Update on Committee Communications Around Resilience Issues Eleanor Garrett (Bank of England) provided an update on the finalised framework for Committee communications and convening arrangements during potential or realised resilience issues, specifically when wider sector resilience groups have not convened.
In order to support effective implementation of the framework, a test to convene the group was conducted in December 2025, with a second test planned for 2026. Item 6 – Swift Update Dean Chard (Swift) noted recent updates to FX-related Swift standards, including Category 3 messages that were due to go live in November 2026, and highlighted the move towards more structured data requirements, including the adoption of structured postal address formats. Swift and ISDA had continued to collaborate on the implementation of the updated ISDA FX Definitions.
A number of FX messages were expected to align as part of the November 2027 industry transition. Item 7 – Global Foreign Exchange Committee (GFXC) Update Natalie Lovell (Bank of England) provided an update on the work of the GFXC. Ms Lovell noted that the process for the next review of the FX Global Code would commence in the second half of 2026 and would begin with market participant outreach via a GFXC Survey.
Ms Lovell gave an update on the GFXC FX Settlement Risk Survey. Item 8 – CLS Update Andrew Cooper (CLS) reported that FX CLS Settlement values had continued to reach new highs amid heightened market volatility. Mr Cooper noted that recent International Monetary Market (IMM) activity had represented the second largest CLS Settlement day by value and volume on record.
Mr Cooper provided an update on progress toward introducing US dollar/Chinese yuan (offshore) payment‑versus‑payment (PvP) settlement. Mr Cooper noted that the service would operate in a ring‑fenced instance of the CLS Settlement service. Further internal governance steps were expected, with implementation remaining subject to multi‑jurisdictional regulatory approval.
Finally, Mr Cooper highlighted ongoing work to explore operational and liquidity efficiencies within the CLS Settlement service, reflecting changes in market structure and funding behaviour. Item 9 – GFXD Update Steve Forrest (UBS) provided an update from the Global Foreign Exchange Division (GFXD) Operations Committee. Mr Forrest noted discussions on ongoing operational priorities, including liquidity management and resilience.
Mr Forrest also noted ongoing efforts to improve process efficiency across FX operations, particularly in response to operational complexities. Attendees Aaron Mills – Citadel (Deputy Chair) Andrew Cooper - CLS Anna Chadderton - Goldman Sachs Daniel Hoye – NatWest Markets Dean Chard – Swift Ellie McCormack – FCA Gail Smith – Royal Bank of Canada (Deputy Chair) Garry Cunningham – Insight Investment Hendrik van der Merwe – Northern Trust James Andrews – JP Morgan James Hull – MillTech FX James Kaye – HSBC (Chair) Kerry Peacock – MUFG Loic Moreau – LSEG Nikki Woodley – Northern Trust Nimit Jobanputra – Deutsche Bank Rebecca Fishwick - Barclays Steve Forrest - UBS Andrew Grice – Bank of England Matthew Hartley – Bank of England Natalie Lovell – Bank of England Observers Adam Jukes - Deutsche Bank FXJSC Secretariat Eleanor Garrett - Bank of England Apologies Claire Forster-Lee - Morgan Stanley Fiona O’Riordan – Citi Jermain Nooks – Investment Association Convert this page to PDF Other news News // Minutes 02 July 2026 Minutes of the London FXJSC Legal Sub Committee... Minutes of the London FXJSC Legal Sub Committee Meeting – 17 March 2026 News // Minutes 02 July 2026 Minutes of the London FXJSC Main Committee...
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