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The procedure used when a specialist makes a trade involving his own inventory, on one hand, and a floor broker's order, on the other. The broker must first complete the trade with the specialist, who then transacts a separate trade with the customer.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A situation in which a specialist on the floor of an exchange fills an order using his/her own store of inventory with the expectation that the customer will pay him/her back. For example, if a specialist receives an order to sell 1,000 shares of Security A, he/she may sell 1,000 of his/her own shares in Security A, with the expectation that the customer will then sell the specialist the 1,000 shares he/she wished to sell at the agreed-upon price.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved