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 ?
Qualified voters participating in the Waters rankings are from buy- and sell-side firms as well as exchanges and interdealer brokers.
The Fed was also concerned that the bilateral netting relied on by dealers and interdealer brokers did not have a solid legal underpinning and might unravel if a firm became insolvent.
M2 EQUITYBITES-August 9, 2016-GreenKey launches design partner program led by interdealer brokers
TELECOMWORLDWIRE-August 9, 2016-GreenKey launches design partner program led by interdealer brokers
Tullett Prebon is one of the world's leading interdealer brokers and has a presence in 24 countries and 2,700 people across the globe.
DealHub's customers include global banks, regional banks, interdealer brokers, FX electronic trading venues and asset managers.
But for interdealer brokers and exchanges, the chop and change in the oil price that has rebounded to around $60 a barrel has been a boon.
It also included sections that revealed (http://www.ibtimes.co.uk/articles/432144/20130206/rbs-libor-fixing-cftc-fsa-doj.htm) RBS collusion with interdealer brokers and an RBS yen trader engaged in wash trades to compensate brokers.
Prosecutors allege that together with employees from institutions including UBS, Citigroup, Royal Bank of Scotland, Deutsche Bank, JPMorgan Chase, HSBC, Rabobank and interdealer brokers ICAP, Tullett Prebon and RP Martin, Hayes conspired to defraud.
Four UBS traders did so by colluding with interdealer brokers, and one UBS trader in particular also colluded directly with individuals at banks on the rates panel.
Maria Johansson, Regional Sales Manager UK and Africa at SuperDerivatives, added: "Our data is sourced from trading desks at close to 100 global and local interdealer brokers, market makers, exchanges and trading platforms as well as top data aggregators."
The working group will include senior representatives of the two major cleating banks (JP Morgan Chase and The Bank of New York), the Government Securities Clearing Corporation, securities dealers, interdealer brokers, custodian banks, The Bond Market Association, and the Investment Company Institute.