PBs seek remedy for credit addiction in FX
Group set up after big Citi loss considers limit-checking hub, among other options
Prime brokers in the foreign exchange markets are looking for new ways to control credit risk, after a $180 million loss at Citi in 2018 attracted the attention of regulators.
A working group has been quietly exploring remedies over the past year, FX Markets can reveal, with the granting of too-generous credit limits seen as the industry’s most pressing problem. One option under discussion is the creation of a centralised limit-checking hub.
“What we wanted to do is prioritise the biggest
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