Agent

An Intermediary acts as True Agent if, acting on Buyer’s behalf, it agrees the purchase of an Asset from Seller by Buyer.

• True Agent acts at all times on Buyer’s behalf and never in its own capacity.
• A True Agent will not record the Asset in its own trading books at any time.
• There is never any contract with respect to the Asset either
  • between True Agent and Seller, or
  • between True Agent and Buyer.
• Buyer pays True Agent a Commission calculated on the contract between Buyer and Seller.

Asset Managers as agents

Liability as a principal for unallocated trades

See also

• Riskless principal
• Principal
• executing broker