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Related to Broker-dealer: brokerage, Series 7


Any person, other than a bank, engaged in the business of buying or selling securities on its own behalf or for others. See: Dealer.


A person or, more often, a firm that acts as a broker for some transactions and a dealer for others. That is, as a broker, he/she conducts transactions on behalf of clients, and, as a dealer, he/she trades on his/her own account. In practice, most brokerages are in fact broker-dealer firms. Most broker-dealers must register with the SEC.


A firm that functions both as a broker by bringing buyers and sellers together and as a dealer by taking positions of its own in selected securities. Many firms that are commonly called brokers or brokerage firms are actually broker-dealers.


A broker-dealer (B/D) is a license granted by the Securities and Exchange Commission (SEC) that entitles the licensee to buy and sell securities for its clients' accounts. The firm may also act as principal, or dealer, trading securities for its own inventory.

Some broker-dealers act in both capacities, depending on the circumstances of the trade or the type of security being traded. For example, your order to purchase a particular security might be filled from the firm's inventory.

That's perfectly legal, though you must be notified that it has occurred. B/Ds range in size from independent one-person offices to large brokerage firms.

References in periodicals archive ?
Italiano joins FTI Consulting from EY, where he managed complex investigations involving the SEC, the Financial Industry Regulatory Authority, the Department of Justice and other financial regulators across broker-dealer institutional sales and trading organizations, as well as the Wealth & Asset Management and Consumer Banking divisions.
Italiano collectively bring more than 45 years of experience advising broker-dealers and banks on significant regulatory and compliance issues, including regulatory reporting, high-frequency trading, alternative trading systems, best execution, equity and fixed income sales/trading, retail sales practices, lookbacks, remediations and Securities and Exchange Commission (SEC) Rule 15c3-5 Market Access, among others.
advisors and broker-dealers relief from the impending requirements under the Markets in Financial Instruments Directive, or MiFID II, which has been applied across the European Union since November 2007.
advisors and broker-dealers to continue current payment and aggregation practices for research and brokerage notwithstanding impending MiFID II requirements.
* broker-dealers to avoid advisor registration even when receiving research payments in hard dollars,
The 15-largest broker-dealer networks control 39.5 percent of advisor headcount.
And among those to be most severely hit are boutique broker-dealers.
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the broker-dealer to pay millions of dollars to abused customers.
fines the broker-dealer for allowing the misconduct to occur.
The Cerulli report warns that life insurance broker-dealers face the greatest fiduciary risk among all BDs because of their higher use of commission-based compensation and proprietary products.
Though insurer's broker-dealers are at greatest risk, significant numbers of retirement advisors industry-wide will also have to adapt to the DOL's draft regulations.