Unless otherwise agreed, CNB FX provides what is commonly referred to as “all-in” pricing for FX transactions. Accordingly, unless we agree otherwise, the price of any FX transaction that CNB FX executes for clients may include what we believe to be a reasonable bid-ask spread and/or a mark-up. Such “all-in” pricing also applies to orders that CNB FX agrees to execute using its discretion (e.g., “at best” orders or orders executed over a specifc period of time). For a live transaction, this means that interbank rates, often observed and reported by various news outlets, are indications of the basis from which CNB FX will apply a proft spread. For limit orders, this means that a client’s requested transaction would be subject to execution when the interbank market reaches a level where CNB FX’s proft spread can be realized.
CNB FX’s pricing is based on a number of factors, including, without limitation, the type of instrument and transaction involved, prevailing market conditions, the accessibility of quotations and other pricing information, the transparency of the market, CNB FX’s rate of return, hedging and market risk, credit risk, operational costs, applicable regulatory requirements, and other internal and external factors. Interbank FX rates are indicative for the market, meaning that such rates may have been transacted by certain players of the market but are not always available to all market participants, including CNB FX.
Pricing may vary for diferent clients for the same or substantially similar transactions for a number of reasons, including, without limitation, the client’s trading volumes, the service provided to the client by the sales team and other support services, credit quality, and the client’s overall relationship with City National Bank.