London FXJSC Legal Sub-Committee Meeting Minutes – June 8, 2022

Minutes

Meeting date: June 8, 2022
Time: 3:00 p.m. – 4:30 p.m. | Location: Video meeting

Point 1: Introduction and minutes

The minutes of the meeting of March 16, 2022 are approved.

Point 2: Recent regulatory updates on crypto-assets

Musonda Kapotwe discussed recent regulatory updates from the Financial Conduct Authority (the “FCA”) and the Bank of England (the “BOE”) on crypto-assets, including the FCA consultation on promotions financials of crypto-assets and the Bank of England working paper on stablecoins.

Musonda began by detailing the HMT consultation on crypto-assets, stablecoins and the use of DLT in the financial market and in particular the FCA guidelines on crypto-assets, which outlined three broad categories of crypto-assets and how they fit into existing FCA regulations. Musonda then outlined HMT’s legislative proposals to regulate stablecoins, focusing on their approach to amending existing regulations, including the Electronic Money Regulations 2011 (EMR) and Payment Services Regulations 2017 (PSR). . Musonda presented the proposals to introduce new regulations relating to the custody of stablecoins and to extend Part 5 of the Banking Act 2009 to apply where the risks posed could be systemic.

Musonda and the committee also discussed key themes emerging from the BOE’s discussion paper on digital currency.

Minute 3: Discussion on the impact of Russia’s invasion of Ukraine

Committee members discussed their observations on several legal issues arising from developments related to the Russian invasion of Ukraine. The committee discussed a number of recent developments in the market, including the work done by ISDA, EMTA and GFXD to establish an industry-wide solution for a ruble. deliverable, a working group created to develop a multilateral closing method and the lateral and multilateral amendment agreement published by the EMTA.

Minute 4: FXJSC Committee Update

Sharon Blackman and George Johnston gave members a read from the March FXJSC Main Committee meeting, which included a general market update, a discussion of progress in cross-border payments and an update from the FCA . Sharon and George summarized discussions regarding recent market developments in short-term funding markets. And they detailed the discussion held by the main committee on emerging markets and the impact of the Russian invasion of Ukraine.

Minute 5: Any other business

Members discussed a preference for in-person legal subcommittee meetings when possible.

Attendees

Sharon Blackman (Chair) – Citigroup
George Johnston (Secretary) – Bank of England
David Harris – Financial Conduct Authority (FCA)
Baljit Saini – NatWest
Nimisha Kanabar – Morgan Stanley
Bois Gaynor – CLS
Jateen Shah – Bank of America
Dan Parker – Goldman Sachs
Simon Goldsworthy – Deutsche Bank

FXJSC Legal Sub-Committee Secretariat

Zara Coe – Bank of England
Matthew Hartley – Bank of England

Invited participants

Musonda Kapotwe – Mayer Brown

Apologies

Richard Lamb – UBS
Nasia Pachiti Pallikaropoulou – Barclays
Diane Bouwmeester – London Stock Exchange Group
Tamsin Rolls – JP Morgan
Rakesh Shah – Standard Chartered
Harkamal Atwal – HSBC
Sunil Samani – XTX Markets
Simon Helm – TP ICAP

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