Banks warn prime brokerage clients of ‘material’ MVA costs
Some buy-siders are reassessing relationships as a result
Buy-side firms are being warned to brace for a "material" impact on the fees they pay for foreign exchange prime brokerage (FXPB) services, following the introduction of margin rules for non-cleared swaps. The impending price rise is also leading some clients to reassess their prime-broking relationships.
The rules, which were introduced on September 1, require the largest banks in the US, Japan and Canada to post gross initial margin on non-cleared swaps that fall under the rules. These initial
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