Points System, Despite Acknowledged Abuses, Remains A Necessary Evil In London Market

BANKS

"Yes, it is subject to abuse, yes it helps liquidity and no, we will probably never get rid of it." So says ACI secretary David Clark, treasury and capital markets director at Midland Montague about the broker's point system, a statement that neatly sums up the attitude of many bankers in London. Recent allegations concerning abuses of the broker's point system in the Swiss franc market (FX Week, September 20) have brought the whole question of the system's existence to light once more.

Point