Clearing Broker Dealer The Fact

A broker dealer that acts as clearing agent in connection with a municipal securities transaction. In addition to handling its own transactions, a clearing broker can provide clearing agent services to other broker dealers, such as introducing brokers.

A clearing broker may provide such back office and related recordkeeping functions on either a fully disclosed or omnibus basis. In a “fully disclosed” relationship, the introducing broker must disclose the identity and other relevant information regarding the client to the clearing broker.

In an “omnibus” relationship, the identity and other relevant information regarding the client is maintained by the introducing broker or other broker dealer that uses the services of the clearing broker dealer and is not disclosed to the Clearing Broker Dealer Definition

Introducing Broker Dealer Definition

An individual or firm who acts as an intermediary between a buyer and seller. A broker usually charges a commission for services.

A broker also may be a person who sells insurance products offered by different companies or someone who sells real estate.

An individual or a firm that brings together buyers and sellers but does not take a position in the asset to be exchanged.

Some observers believe a broker provides an unbiased opinion on a security since there is little self-interest involved in the transaction.

In addition, he or she should not be transaction oriented but should instead be concerned about your values and goals and be willing to realize that the best trade may be no trade.

In summary, you should look for a financial advisor rather than just a “introducing broker dealer definition.”

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