Prime brokers shun forex agency desks over CFTC rules

An empty plate flanked by a knife and fork

Some foreign exchange agency brokers have been forced to withdraw from non-spot transactions as a result of recent amendments to external business conduct rules under the Dodd-Frank Act, which have led prime brokers to terminate double-give-up agreements that involve two buy-side firms trading with each other through prime brokers. Prior to a no-action letter issued by the Commodity Futures Trading Commission (CFTC) on April 30, the business conduct rules would have required prime brokers to