CMFAS RES 2B OTC Derivatives: Products & Mechanics question: inter-dealer broker to work a swap in a size below the broker's minimum dealing

A principal at Kallang Capital asks an inter-dealer broker to work a swap in a size below the broker's minimum dealing amount without saying so. Later the same day the principal finds it has no credit line left for the counterparty the broker has found, and tells the broker only after the broker has matched the trade. Under the dealing procedures described in the RES 2B guide, what has the principal done wrong?

• A Nothing, because the broker carries the whole responsibility for checking dealing sizes and credit lines
• B It should have refused to deal at all, because transactions below the minimum dealing amount are always prohibited
• C It should have obtained MAS approval for the smaller dealing amount before instructing the broker
• D It should have told the broker the deal was below the minimum amount, and given credit-limit information early