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 serves more than 80,000 institutional, commercial and individual clients globally, in addition to a network of approximately 400 introducing brokers (IBs).
The Commodity Futures Trading Commission (CFTC) approved a proposed rule to revise a CFTC regulation that requires certain futures commission merchants, retail foreign exchange dealers, commodity trading advisors, commodity pool operators, introducing brokers, major swap participants, and swap dealers to provide annual privacy notices to customers.
Jordan Forex Expo will cover topics like service quality in the forex industry, introducing brokers, white labels, liquidity solutions, asset managers, asset managers, forex, futures CFDs, cash CFDs, spot metals, spot energies, fees & commissions, platforms, education.
Chicago, IL, February 22, 2018 --(PR.com)-- Dallas-based Coquest Inc., one of the largest independent introducing brokers in the U.S.
For regulated brokers, we offer a comprehensive Introducing Brokers programme, enabling partners to introduce their clients to GAIN Capital while building upon our technology and products to service the trading needs of their customers.
We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our customers with a uniquely sophisticated platform to manage their investment portfolios at extremely low cost relative to the financial services industry.
The CDD Final Rule adds a new requirement that financial institutions - including banks, brokers or dealers in securities, mutual funds, futures commission merchants, and introducing brokers in commodities - collect and verify the personal information of the real people (also known as beneficial owners) who own, control, and profit from companies when those companies open accounts.
The final CDD rule adds a new requirement that financial institutions -- including banks, brokers or dealers in securities, mutual funds, futures commission merchants and introducing brokers in commodities -- collect and verify the personal information of the real people (also known as beneficial owners) who own, control and profit from companies when those companies open accounts.
(1) the classification of proprietary accounts of introducing brokers;
O'Brien and 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.
Introducing brokers of Saxo Bank A/S are allowed to offer the co-branded platforms under their own brand, which would be serviced by Saxo Bank A/S.
On the board's new authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act to oversee the audits of broker-dealers, including the authority to determine whether to inspect the auditors of any or all introducing brokers (those who do not maintain custody of client assets), Doty said the purpose of the board's interim inspection program is to gather facts.