If a dealer has any intention of assigning an interest rate swap to a third party soon after transacting that swap:
A) The dealer should not reveal his future dealing intentions to his counterparty.
B) The dealer should make his intention to assign clear before transacting.
C) The dealer should agree the method of assignment before transacting.
D) The counterparty should specify whether or not assignment would be acceptable in negotiations.

Question

Quizplus · Accepted Answer

It is important for the dealer to make their intention to assign the swap clear before transacting to avoid any miscommunication or misunderstandings with their counterparty. This will also allow the counterparty to make an informed decision about whether or not they are comfortable with the potential assignment.

If a Dealer Has Any Intention of Assigning an Interest