Talking Shop: How Do You Restrict Trading for Currency and Bank Pairings?

# Foreign Exchange

# Banking

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Member question: “Question on restricting trading for certain currency/bank combinations: We have a few currencies that some banks have trouble settling with us (such as RUB). I want to avoid trading with these banks for those currencies.

“Ideally, I could set up a rule in FXall to restrict specific bank/currency combinations. Does anyone have suggestions for doing this? Thanks!”

Peer answer 1: “I believe that in FXall’s QuickTrade set-up, you can select/designate standard counterparty banks to populate for specific currencies pairs. Although this won’t prevent users from changing the counterparty, it could help in pre-populating the counterparties in FXall when, e.g., RUB is pulled up.” Peer answer 2: “Agreeing with Peer 1’s comments. We currently restrict trading certain currencies to a subset of banks and have configured FXall so only those banks appear as possible counterparties in the RFQ screen. I’m happy to walk you through the steps.” Peer answer 3: “I am curious if Peer 2 automated this. We use the QuickTrade set-up as well to have default counterparties by currency. We have a spreadsheet we plot the ‘roster’ in before entering into FXall (as we actively rotate counterparties quarterly). A matrix we maintain in the spreadsheet makes sure we do not choose bank/currency combinations we don’t think make sense.”