Buy-side forex trading curbed as margin rules take effect
Prime brokers will cut off access to dealers if they fail to agree revised CSAs
Buy-side firms will be unable to trade foreign exchange derivatives with scores of dealers when new non-cleared margin rules take effect in the US and Japan on September 1.
Foreign exchange prime brokers have been racing to finalise collateral agreements and other documentation necessary to continue trading with executing dealers under the non-cleared margin regime. Those efforts have yielded mixed results.
"We have come across a range of preparedness among prime brokers," says James Wood
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