Dealers drag their feet on NDF clearing, say prime brokers
Trade mismatches and other wrinkles hinder clearing between executing broker and prime broker
Foreign exchange prime brokers are struggling to persuade dealers to clear non-deliverable forward (NDF) trades, as technological and operational hitches impede the switch to central clearing.
Prime brokerage units at banks such as Citi and Bank of America say that while some of their dealer counterparties have agreed to clear trades, others are holding out. The delay means added costs for both parties in the form of margin.
The trades in question are the leg of NDFs between executing broker
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