FX prime brokers forced to terminate double give-up trades
Prime brokers have had to cancel four-way agreements for trades involving two buy-side firms, on the basis that a no-action letter issued by the CFTC on April 30 did not cover this type of business
Foreign exchange prime brokers have been forced to terminate double give-up relationships, which involve two buy-side firms trading with each other through a prime-brokerage arrangement, because the prime broker cannot supply the pre-trade mark required by the US Dodd-Frank Act.
The requirements – part of Dodd-Frank external business conduct standards that came into effect on May 1 – had initially obliged prime brokers to submit certain information to their clients, including a pre-trade mid
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