Principal Order

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Principal Order

An order made by a brokerage on its own account, as opposed to a client's. Principal orders must be registered as such on the exchange where they are made to protect investors from abuse or possible insider trading. In a principal order, the broker acts as a dealer because it seeks to trade on its own account. See also: Principal Trade.
References in periodicals archive ?
Among the principal orders of reference from the Assembly, it should be noted that the Subcommittee of the National Assembly met on three occasions this winter to examine the two parliamentary reform proposals tabled in June 2004.
Customer priority: Orders in ANTE are executed by price priority, with customer orders having priority over all orders, while specialists, market makers and off-floor principal orders are on parity and allocated using the specialist allocation ratio.