Intermediate broker

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In the world of exchange-traded instruments, a broker who occupies the dun netherworld between a client-facing executing broker and the exchange or CCP-facing clearing member. May or may not be affiliated with the executing broker.

Of interest[1] because:

  • An intermediate broker it might prolong a clearing chain beyond the permissible number of links under EMIR
  • It may present a risk-weighting problem to you under CRR if you don’t pass on all solvency relates losses as contemplated in Art 306(1)(c) of that glorious regulation.

See also

References

  1. Professional interest, needless to say.