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Published date: 3 December 2024

BoE speaks on FX market lessons and settlement risk

Philippe Lintern, head of BoE’s foreign exchange division, has delivered a speech on lessons learnt from the history of the FX market, at FX Markets Europe.

Lintern began by describing the success story of the market, with over $7.5 trillion of FX turnover daily, of which the London market accounts for around 40%. He noted the market’s resilience to disruptions such as COVID-19 or the recent CrowdStrike IT outage, but stressed that market participants and regulators should not be complacent.

The Global Foreign Exchange Committee (GFXC) is set to publish a revised version of the Global FX Code. Lintern drew attention to the the fact that take up of the Code is low in the hedge funds sector, despite its large, sophisticated participants. He said that in the absence of widespread adoption, the approach of the Bank of Mexico as current GFXC chair - to require relevant market participants to confirm their adherence, or otherwise justify their decision in writing - would become more appe