Top Global Finance Watchdog Mulls Probe on FX Derivatives Market

The world’s top financial stability watchdog is considering a probe into the $155 trillion market for foreign-exchange derivatives as growing volatility leaves investors at risk of larger losses.

The Financial Stability Board said in its annual report released Tuesday that it will also complete a report on private credit this year, with the potential for further research in the area. The FSB is also looking at non-bank lending and cryptoassets in 2026.

The over-the-counter market for foreign exchange derivatives, which investors and corporates use to hedge trade risk and bet on currency movements, grew almost 20% to a notional value ...