Time: 2pm – 3.30pm | Location: Bank of England, Threadneedle St, London, EC2R 8AH
Minutes
Item 1: Introduction
The Chair (Sharon Blackman) opened the meeting, welcoming those online and in person.
Item 2: Minutes of 17 March Legal Sub-Committee
The minutes of the meeting of 17 March 2026 were approved.
Item 3: ISDA Update – FX Definitions & Non-Deliverables (ISDA – Ann Battle and Jonathan Martin)
The discussion focused on a comprehensive update on the 2026 FX Definitions, covering the transition from the 1998 definitions, key substantive changes, SWIFT implementation, and supporting materials for firms.
Program Timeline and SWIFT Transition:
The four-year program launched in 2024 is now in implementation phase, with a SWIFT change request submitted ahead of their June 4th deadline. SWIFT rulebook changes are expected over the summer and transition to the new FX Definitions in November 2027 (after which the 1998 definitions will cease to apply).
- Consolidation and Digital Publication: The 2026 FX Definitions create a single, fully digital and versioned framework that can be updated and maintained centrally, including matrix-based templates for non-deliverable transactions, simplifying operations and reducing reliance on master confirmations for vanilla trades.
- Key Substantive Changes: Introduction of three default disruption events, alignment of the calculation agent standard with 2021 rates definitions (including a good faith/commercially reasonable standard), and optional provisions such as calendar adjustment events.
- Business Day Framework and Automated Exercise: Streamlined and harmonised business day concept, plus a new fully automated exercise option for FX options based on published rates.
- Implementation Materials and Outreach: A suite of materials are available and forthcoming for firms, including the FX definitions brochure, an industry implementation roadmap, a plain English guide, annotated confirmation templates, and an optional master confirmation bridge agreement. The team is coordinating with the implementation steering committee and planning dealer outreach to clients, with educational webinars and FAQs to support the transition.
- Foreign Law Agreements and SWIFT Application: The group noted uncertainties regarding the application of the 2026 FX Definitions to non-English and non-New York law governed agreements, particularly in relation to SWIFT messaging and local banking associations.
Discussions between ISDA and local banking associations are ongoing.
Item 4: Competition Law Guidance Refresh
Non material amendments have been made to the competition law guidance. Review and comments were invited from the group, particularly to the introductory paragraph and references to the Sub Committees.
Item 5: Approval of Terms of Reference and Deputy Chair Appointment
It was noted that most substantive changes to the subcommittee terms of reference relate to the operation of the legal subcommittee and the introduction of the deputy chair role. The group was invited to provide any final comments to the Secretariat.
The Chair confirmed the appointment of the Deputy Chair (Tamsin Rolls) with no objections from the group.
Item 6: Topics for discussion at Future Meetings
The group considered revisiting legal issues relating to the use of AI in the FX markets, particularly its application in algorithmic trading and related competition law and market practices.
The upcoming policy paper on stablecoins and digital transformation was also noted, and it was suggested that the group revisit these topics once new regulatory documents are published.
Item 7: Any other business
Attendees
David Harris – Financial Conduct Authority
Joanne Napleton - London Stock Exchange Group