Minutes of the London FXJSC Legal Sub-committee Meeting – 26 November 2024

Minutes

Minute 1: Introduction

The Chair (Sharon Blackman) opened the meeting, welcoming those online and in person.

Minute 2: Minutes

The minutes of the meeting of 17 September 2024 were approved.

Minute 3: An update on the CLS Playbook (FXJSC Operations Sub-Committee - James Kaye (Chair), Gail Smith (Deputy Chair) and Kerry Peacock (Deputy Chair))

Over the summer of 2024 a sub-group of the Operations Sub-Committee reviewed the crisis management playbook, which was last published in October 2018.

Since 2018, operational resilience has changed dramatically, which has prompted Critical Third Parties like CLS to review their resilience, reflecting the advancements that have been made. As a result, it was decided to amend the settlement crisis playbook to principles-based guidance instead of the previous prescriptive approach focussed on a specific scenario.

Members of the Operations Sub-Committee have been asked to review the playbook in their respective organisations, so it is ready to be used.

It was highlighted that the intention is for this version to be published once approved.

The Secretariat agreed to share the Playbook with the members following the meeting.

Minute 4: Bank of England’s approach to innovation in money and payments discussion paper (Ali Moussavi (Bank of England))

Ali Moussavi provided an overview of the Bank of England’s approach to innovation in money and payments Discussion Paper published on 30 July 2024. Mr Moussavi highlighted that innovation in money and payments presents opportunities and risks for central banks’ monetary and financial stability objectives. Therefore, central banks should actively engage with these innovations.

Members discussed how the paper was not yet a proposal of future policy and how the next steps are to engage with consumers of wholesale financial markets. They also discussed what is happening elsewhere in the world and the importance of sandboxes to test. The members agreed that there was a lot to think about from a legal perspective once we get to that point.

Minute 5: Any other business

The Chair asked for members to think about future topics for discussion but suggested a look back/look forward for regulatory review when they meet on 5 March 2025.

Attendees

Sharon Blackman (Chair) – Citigroup

David Harris – Financial Conduct Authority

Simon Goldsworthy – Deutsche Bank

John Smart - Bank of America Merrill Lynch

Rowland Stacey – Goldman Sachs

Joanne Napleton - London Stock Exchange Group

Tamsin Rolls – JP Morgan Chase

Stephanie Cayer – NatWest

Gaynor Wood – CLS

FXJSC Legal Sub-Committee Secretariat

Sakshi Gupta – Bank of England

Matthew Hartley – Bank of England

Carly Jones – Bank of England

Guest attendees

Kerry Peacock - MUFG

Gail Smith – RBC Capital Markets

James Kaye - HSBC

Ali Moussavi – Bank of England

Apologies

Harkamal Singh Atwal – HSBC

Mayank Patel – Bank of America

Nimisha Kanabar - Morgan Stanley

Rakesh Shah – Standard Chartered

Sunil Samani - XTX Markets

Baljit Saini – NatWest

Krisha Somaiya – UBS