Introducing broker

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Introducing Broker

A person or business that provides investing advice or counsel to an investor, but does not actually handle transactions. Generally speaking, introducing brokers make recommendations while delegating the task of executing trades to someone at the same or a different firm who operates on a trading floor. The introducing broker and the person(s) who execute a transaction split the fees and commissions according to some agreed upon arrangement. The term most often applies to brokers in the futures market.

Introducing broker (IB).

An introducing broker is a broker-dealer that contracts with a clearing firm to handle the execution and settlement of orders that the introducing firm receives from its clients or its own trading desk to buy and sell securities.

The clearing firm, not the introducing broker, receives payments and securities from the clients and handles record-keeping. The introducing broker, who earns a commission on the transaction, typically pays a fee for each trade and interest on margin loans the clearing firms make to the clients it introduces.

In commodities markets, an introducing broker is an intermediary who takes orders for futures contracts but passes on responsibility for executing the orders and handling the financial arrangements to a futures commission merchant (FCM).

References in periodicals archive ?
O'Brien & Associates is the largest independent futures brokerage firm in the United States, serving institutional, commercial and individual clients globally, in addition to a network of 400 introducing brokers (IBs).
Brewer Investment Group is an independent diversified wealth management firm serving individual investors, small to mid-size businesses, institutions, independent advisors and introducing brokers.
Clearing more than 80,000 client accounts, RJO services a global network of more than 300 introducing brokers and many of the world's largest financial, industrial and agricultural institutions.
com include the company's retail brokers, branch teams, Introducing Brokers and Guaranteed Introducing Brokers (IBs and GIBs), customer service managers, and colleagues from education firms that PFGBEST.
Taking over responsibility for the Introducing Brokers as President of the division is Hanley, a 14-year veteran of RJO.
Penson GHCO, a leading provider of technology products and services to active futures traders, currently employs about 85 people at its Chicago headquarters and in New York, Minneapolis and London offices, and serves approximately 400 clients, including floor traders, introducing brokers, non-clearing FCMs, commercial grain companies and other institutional and professional trading firms.
In addition to this important Shanghai office, PFG has branches, subsidiaries, a network of Introducing Brokers (IBs), and customers in more than 80 countries.
RJO services a nationwide network of more than 250 introducing brokers and some of the world's largest financial, industrial and agricultural institutions.
Feltes, widely acclaimed by introducing brokers (IBs), institutions and commercial agricultural market participants for his comprehensive analysis of, and commentary on, grain and oilseed markets, will focus on research tailored to meet the needs of the firm's clients.
Joseph Murphy, RJO Executive Vice President and President of the Americas, said: "With futures as our core business, we have established a terrific niche in serving the growing middle market base of clients, including Fortune 1000 companies, small to mid-size corporate, industrial and agricultural firms, introducing brokers, high net worth individuals and commodity trading advisors.
Like National Bank's Correspondent Network, the TD Waterhouse Institutional Services business provides back-office services for independent Canadian- based registered portfolio managers and introducing brokers.
Aside from individual and institutional accounts, London Multi Commodities Exchange also offers trading accounts that are especially designed for financial advisors and introducing brokers.