Interpositioning

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Interpositioning

The practice of using a second broker in a securities transaction, which is considered illegal it is if used to generate additional commission.

Interpositioning

The act or practice of adding another broker-dealer to a transaction when there is no reason to do so and the extra broker-dealer does not provide a necessary service. Generally speaking, interpositioning occurs when two broker-dealers agree to insert the one into the dealings of another. This allows both to extract commissions without doing any work; obviously this is detrimental to the client because it forces him/her to pay money he/she does not need to pay. Interpositioning is illegal under the Investment Company Act of 1940, but it still occurs. Indeed, it was relatively common during the first few years of the 2000s.

interpositioning

The involvement of a third party between a broker-dealer and the best available market price that results in the customer paying a bigger markup or markdown than would have been the case if the third party had not been present. For example, Dealer A satisfies a customer order to buy a security by purchasing the security through Dealer B who in turn purchases the security from the market maker. Dealer B marks up the security to Dealer A, who then marks up the security again when selling it to the customer. Interpositioning is considered unethical by the National Association of Securities Dealers.
References in periodicals archive ?
Treatment options include aspiration, surgical excision of the cyst with preservation of the remaining artery, and excision of the affected arterial segment with bypass interposition.
The dynamic radioulnar convergence of the Darrach procedure and the ulnar head hemiresection interposition arthroplasty: a biomechanical study.
He cited the purported redefinition of marriage by federal judges, as well as the purported legalization of abortion by the Supreme Court, as two of the most egregious examples that require interposition.
state had adopted interposition as either official or symbolic policy,
Because of the decreased wing extension and associated function attributed to the radioulnar synostosis, surgical separation of the radius and ulna with interposition of a polypropylene mesh was elected.
Taking a cue from inguinal hernia surgery, interposition grafting has become an attractive method to replace or augment standard plication-type repairs.
Besides these findings, CT showed the hepatodiaphragmatic interposition of transvers colon (Fig.
The NISS issued a statement published by its mouthpiece, the Sudanese Media Center (SMC), saying that Boshi's detention had nothing to do with his critical interposition during the symposium at Khartoum.
And I recommend to them that while offering up the ascriptions justly due to Him for such singular deliverances and blessings, they do also, with humble penitence for our national perverseness and disobedience, commend to His tender care all those who have become widows, orphans, mourners or sufferers in the lamentable civil strife in which we are unavoidably engaged, and fervently implore the interposition of the Almighty Hand to heal the wounds of the nation and to restore it as soon as may be consistent with the Divine purposes to the full enjoyment of peace, harmony, tranquillity and Union.
Walter Reed National Military Medical Center, presented a poster on "Decreased Mandatory Use of Supplemental Interposition Mesh Using Serial Abdominal Closure Technique of the Open Abdomen.
Hepatodiaphragmatic interposition is a rather rare condition and has an incidence ranging from 0.