Agency Trade

Agency Trade

A trade that a broker makes for a client in which the broker initiates the order. Only brokers managing discretionary accounts may make agency trades because, otherwise, they do not have the authority to execute orders without the client's explicit authorization.
References in periodicals archive ?
Adding that business activities in the Agency could restore the prosperity and the Highway was the backbone of the Agency trade.
But Peter Mathews, chairman of the Midlands World Trade Forum, said that through his organisation, backed by the DTI agency Trade Partners UK and Advantage West Midlands, exporters were "receiving more support than ever".
The firm said that the solution supports the bank's cash equity business for principal and agency trades conducted on the Australia Securities Exchange (ASX) and CHI-X Markets.
The protocol, which has been constructed for principal-to-principal trades and as such will not cover agency trades between buy-side and sell-side firms, allows a signatory to strike a cash balance for open trades with a signatory that defaults, following the model used in other OTC markets.