EBS and Thomson Reuters urged to rethink credit methodology
Foreign exchange prime brokers (FXPBs) are calling for changes to the way in which the credit they extend into trading platforms is measured, saying some platforms' insistence on measuring open positions in gross rather than net values is exposing them to too much risk.
When major platforms such as EBS and Thomson Reuters measure open positions on a gross basis, FXPBs complain they cannot net a client's buy and sell transactions to reduce the overall credit that must be allocated. Instead they
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