Global FX turnover hits record $9.6 trillion amid resilience
The London Foreign Exchange Joint Standing Committee (FXJSC) discussed robust market developments, including record global turnover and the impact of T+1 securities settlement, at its meeting on 27 November 2025.
Record turnover, resilient markets
The London FXJSC received an update on FX market developments, observing that volatility from April 2025 had largely subsided, with normalisation occurring faster than after previous shocks.
The market outlook for 2026 was broadly positive for risky assets, though significant uncertainty and tail risks remain, particularly for the US dollar's sensitivity to real interest rates and equity markets.
The Committee discussed global fiscal and monetary policy influences on FX markets and noted the market's resilience and orderly functioning despite 2025 volatility.
Preliminary results from the April 2025 BIS Triennial FX Turnover Survey reported global FX turnover reached a record high of $9.6 trillion, driven by increased activity in spot, forwards, and options.
The US dollar remained dominant, featuring in most transactions, with USD/EUR, USD/JPY, and USD/GBP as the most actively traded pairs.
FX options expand, T+1 settlement looms
The FX options market has roughly doubled in size since 2010, with EUR/USD options dominating and USD/CNY options showing significant growth.
Discussions covered market structure changes like electronification and event-driven investor trading behaviour.
The GFXC will discuss FX settlement risk, specifically the impact of the UK, EU, Switzerland, and Liechtenstein's move to T+1 securities settlement.
IOSCO's final pre-hedging guidance, published on 3 November 2025, was noted.
Updates included ISDA's review of its 1998 FX and Currency Option Definitions, expected to conclude in late 2025 for 2027 implementation.
SWIFT's migration to ISO 20022 MX messages for cross-border payments occurred on 22 November 2025.
A consultation on the UK's MiFIR transaction reporting regime is open until 20 February 2026.
Beneath the surface, change is constant
The minutes paint a picture of a robust FX market, yet constant regulatory and structural shifts underscore persistent challenges.
While record turnover signals health, the discussions on T+1 settlement and ISDA definitions reveal a landscape in continuous evolution.
This ongoing adaptation is crucial for maintaining stability, but also demands sustained attention from market participants and regulators alike.