FX market weighs tighter AI governance as autonomous trading spreads

Central banks and foreign exchange market participants are weighing whether the rules governing the currency market can keep pace with autonomous AI trading systems, as the industry body behind the FX Global Code prepares a review of the code in 2027, Bloomberg reported on October 20.

The Global Foreign Exchange Committee’s technology group is assessing how growing automation could affect the market and will form a preliminary view on whether AI, central bank digital currencies and tokenized assets require changes to the code, Tokenpost reported. The committee plans to discuss survey findings in December and publish a summary in early 2027, and has not yet decided whether revisions are needed.

Over-the-counter FX turnover averaged $9.5 trillion a day in April 2025, up 27% from three years earlier.

Regulators study kill switches for AI agents

Bank of England Deputy Governor Sarah Breeden warned in a June speech that AI agents responding to similar triggers “could amplify volatility in stress,” and called for market-wide safeguards. The Bank of England and the UK Financial Conduct Authority are assessing tools including runtime oversight of live AI agents and kill switches.

The FCA on October 19 published examples of how firms can monitor and escalate problems with AI agents, without creating new requirements. On October 15, the Financial Stability Board issued its final set of 12 sound practices for responsible AI adoption by financial institutions, delivered to G20 finance ministers and central bank governors.