Industry pushes back on Citi’s FXPB cost claims
Rivals question apex brokerage’s calls for executing brokers to make up mispricing shortfalls caused by incoming rules
Firms in the foreign exchange prime brokerage (FXPB) market are challenging some of the claims made in an April white paper by Citi, the market’s dominant player.
In the paper, the bank argues the service is often priced too low, that incoming rules on derivatives margining will drive up costs for prime brokers and the increased burden should be shared by executing brokers.
While conceding some of these points, rivals question Citi’s motives – noting the bank moved its FXPB group out of its
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