FX prime brokers continue to shun four-way agreements

Four-way agreements too difficult under Dodd-Frank external business conduct standards, say prime brokers

Foreign exchange prime brokers (FXPBs) continue to be reluctant to sign four-way agreements, arguing it has become too complex and time-consuming under the Dodd-Frank Act external business conduct requirements.

The rules, which came into effect in May, initially required prime brokers to submit certain information to clients, including a pre-trade mid-mark and risk disclosures – something industry participants claimed would be impossible, as they only know about each transaction after it has