Inter-Dealer Broker


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Inter-Dealer Broker

1. A brokerage that intermediates trades between dealers in the bond market and some over-the-counter markets.

2. A member firm on the London Stock Exchange that only deals with market makers. That is, this inter-dealer broker does not trade securities with members of the public.

In both cases, inter-dealer brokers work with huge transactions with very small spreads. This means that the percentage of profit on an individual is likely small, but the sheer size of transactions makes up for this.
References in periodicals archive ?
Remate Lince, which zeroes in on instruments available in, or linked to, Mexican pesos, operating a pesos bonds division and a derivatives division, complements BGC's existing footprint in Mexico and Brazil in the inter-dealer broker area, the buyer has said.
"Our end user customers and inter-dealer broker partners have increasingly been seeking out straight-through-processing and a front-end for trading and execution in global OTC energy markets," said Joe Raia, the CME Group Managing Director for Energy & Metals Products.
* Cross-in/IDB out (involving a third-party inter-dealer broker as intermediary to effectuate a cross-out); and
Inter-dealer broker Tullet Prebon saw its shares crash last week after the company said takeover talks had ended and it reported a 12% fall in revenues to pounds 312m in the first four months of 2010 compared with the same period a year ago.
"What is potentially damaging to London is if the regulatory burden becomes too burdensome," the report quoted Michael Spencer, chief executive of inter-dealer broker Icap, as saying.
ICAP is the world's largest inter-dealer broker with an average daily transaction volume in excess of $700 billion.
It was recently reported that Michael Spencer, the founder of inter-dealer broker Icap and treasurer of the UK's Conservative Party, has also put a painting, Modigliani's Cariatide, up as collateral for a loan.
Inter-dealer broker Icap was another prominent faller after a downgrade from Morgan Stanley brokers sent it 21p lower to 220.75p.
(NASDAQ:GFIG <http://studio-5.financialcontent.com/prnews?Page=Quote&Ticker=GFIG>) , a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities.
ICAP is the world's premier voice & electronic inter-dealer broker with an average daily transaction volume in excess of 1.5 trillion.
Lena Komileva, a market economist at Tullett Prebon, an inter-dealer broker, said: "It will have a positive impact on the money market, but it's unlikely that it will have any meaningful impact on unlocking mortgage markets."
Cowdrey, married to former top amateur rider Maxine (nee Juster), now assistant to Lady Herries, returned to his role as head of entertainment and charity for leading inter-dealer broker BGC last month.
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