It pays to be selective when choosing clients, say FXPBs
Credit Suisse collapse strained relationships and showed importance of a partnership approach
The failure of Credit Suisse highlighted the difficult position in which foreign exchange prime brokers can find themselves when clients want to keep trading with a stressed bank counterparty, and emphasised the need for FXPBs to use their judgement when it comes to client selection.
During the peak of Credit Suisse’s collapse in March, some bank trading desks opted to cut off trades with the Swiss dealer, while BNP Paribas reportedly told clients they could not accept novations on derivatives
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