Prime broker fees "too low"
Some banks fear that current fees do not adequately recompense them for the credit risk they take on as a prime broker – and market dynamics prevent them from raising charges in the highly competitive environment.
"Competition has already put significant downward pressure on the fees charged for foreign exchange prime brokerage," said the Bank of England’s Foreign Exchange Joint Standing Committee (FX JSC), which identified the problem at a recent meeting. And this may lead to prime brokers
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