While many financial markets operate behind the scenes, the Foreign Exchange Joint Standing Committee (FXJSC) stands at the heart of the UK’s wholesale foreign exchange ecosystem! Born in November 1973, this powerful forum brings together market players and public authorities under the Bank of England’s leadership.
Think of FXJSC as the financial world’s emergency response team! When markets face crisis—like during 9/11, COVID-19, or Russia’s invasion of Ukraine—the FXJSC springs into action. They coordinate responses through emergency meetings and crisis calls. Their FX Settlement Crisis Playbook has become essential reading for institutions steering through troubled waters.
When financial markets face turmoil, the FXJSC activates as the industry’s first responders, deploying emergency protocols to stabilize global currency trading.
Remember the Herstatt Bank collapse? This shocking 1974 event exposed massive settlement risks in FX markets. The FXJSC tackled this head-on by supporting the creation of the Continuous Linked Settlement (CLS) system. Today, they’re still fighting settlement risks by collecting data with global partners and conducting regular surveys. Their emphasis on timely communication during market disruptions has been key for industry resilience.
You might not realize it, but when you see smoother, more ethical FX trading, the FXJSC is often behind it! They champion the FX Global Code of conduct and push for best practices across the industry. The committee actively works to increase diversity and inclusion within the foreign exchange market through various initiatives. They also promote risk management tools similar to those offered by regulated forex brokers. They’re like market referees ensuring everyone plays by the rules!
Communication is their superpower! Regular meetings at the Bank of England’s Moorgate facility bring together banks, service providers, and regulators. This creates a buzzing hub where market-wide resilience strategies are born.
The FXJSC doesn’t work alone. They collaborate with other major FX centers globally, sharing insights on market developments. Their two subcommittees—Operations (est. 2002) and Legal (est. 2004)—dive deep into specialized areas.
Next time you hear about currency market stability or crisis management in the FX world, remember the FXJSC—the quiet force helping to keep the £6.6 trillion daily FX market running smoothly!
