Foreign Exchange Benchmarks: Report on Progress in Implementing the Financial Stability Board's September 2014 Recommendations

On 1 October 2015, the Financial Stability Board (FSB) published a progress report regarding the implementation of its September 2014 recommendations for reforms to foreign exchange (FX) benchmarks. This report draws on assessments of market participants' progress which were undertaken by the main foreign exchange committees as well as by central banks in other large FX centres.

The implementation to date of the FSB's recommendations, together with the enhanced scrutiny on fixing transactions externally and within organisations, appears to have moved the market in a favourable direction, especially as regards the WM/Reuters (WMR) 4pm London fix. However, the report re-emphasises that the FSB recommendations are intended to apply to all FX benchmarks, not just the WMR fix. A more complete implementation of the recommendations, particularly regarding other FX benchmarks, would increase the likelihood of maintaining and extending the improvement already seen.

The preparation of this report was led by Guy Debelle (Assistant Governor, Financial Markets, Reserve Bank of Australia; chair of the BIS Markets Committee).

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