When a broker needs to switch a name, this should be done:

In financial markets, a broker executes a name switch when a proposed counterparty lacks sufficient credit lines with another party, necessitating the substitution of an acceptable counterparty to complete the trade. According to the ACI Model Code and standard OTC market practice guidelines, brokers are strictly required to ensure transparency when performing name substitutions. A broker may only perform a name switch provided that the transaction is explicitly identified and disclosed as a switching transaction to all participating institutions involved. Transparency prevents credit risk misrepresentation and ensures that counterparties are fully aware of the credit intermediate structure. Consequently, name switching is permissible provided that such transactions are clearly identified as switching transactions.

Option A: Internal broker management approval is not the mandated market standard rule governing the execution of name switching under the ACI Code.

Option B: While transactions must be at market rates generally, the specific condition governing name switching requires explicit identification of the switch.

Option C: Consulting local regulators is not required for standard name-switching operations, as long as industry code identification rules are followed.

- ACI Financial Markets Association, ACI Model Code, Section: Inter-dealer Brokers and Name Substitution Guidelines.

- Foreign Exchange Working Group (FXWG), Global Code of Conduct for the Foreign Exchange Market (FX Global Code), Principle 12.