correspondent

Correspondent

The name given to a bank, broker, dealer, or financial institution that acts on behalf of another financial institution with limited or restricted access to the financial markets where a transaction must occur.

Notes:

Commonly done by smaller financial corporations that don't necessarily have the capital to enter into foreign markets and set up new operations. This is a cheaper method of providing international services to clients through agreements and partnerships.

See also: Broker, Broker-Dealer, Dealer, Financial Supermarket

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Correspondent

A financial organization that performs services (acts as an intermediary) in a market for another organization that does not have access to that market.

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correspondent

A financial organization such as a securities firm or a bank that regularly performs services for another firm that does not have the requisite facilities or the access to perform the services directly. For example, a member of a securities exchange may execute a trade for a nonmember firm.