Accurately calculating OTC brokerage fees during times of extreme volatility is challenging.
Any sharp rise in OTC volumes leaves investment banks paying more in brokerage fees. Dealing with multiple brokers, all with different rate card structures, is challenging during normal market conditions. But in the midst of this global pandemic, it must be nigh-on-impossible for any bank to get a true handle on how much brokerage they are being charged at the time of trading.
Click here to read the full article, published in Best Execution, 10th November 2020.