The Bank of England (BoE) has published the
new make up of the London Foreign Exchange Joint Standing Committee (JSC). The
JSC was initially established in 1973 to meet as a senior-level forum for FX market
participants under the auspices of the BoE; and arguably for many years it
probably represented the interests of banks more than any other group.
However, the committee has been expanded
over recent years to reflect the broader range of participants in the market;
the latest development sees the JSC’s buy-side committee rolled into the main
A significant change to the committee’s
make up sees Zar Amrolia re-join the JSC, which he sat on when he was at
Amrolia was the bank’s global head of FX
and then later became its co-head of fixed income, currencies and commodities.
He left the bank last year, joining XTX Markets as co-chief executive officer
in September. His seat on the JSC is seen as reflecting the BoE’s desire to
have the committee more accurately reflect the make up of the modern FX market,
it at least represents some kind of tacit acceptance of the growing importance
of ‘alternative’ market makers such as XTX.
James Kemp has also joined the JSC in his
role with the FICC Markets Standards Board, which is an independent body set up
to advise the Fair and Effective Markets Review. Kemp is also the managing
director of the Global Foreign Exchange Division.
Saxo Bank also has a seat at the table, as
does Shell at the other end of the FX spectrum. With hedge funds, overlay
managers and brokers also represented, the JSC would appear to be taking
soundings from pretty much across the industry. However, perhaps the flipside
is that this has resulted in a committee that has 34 members. This probably
means a couple of challenges: The room holding the meeting has to be very
large, and getting an agreed decision on any motions could at times be challenging.