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Liability as a principal for [[unallocated trades]] | Liability as a principal for [[unallocated trades]] | ||
{{Seealsoagent}} | |||
*{{tag|executing broker}} | *{{tag|executing broker}} | ||
Revision as of 10:31, 19 August 2016
Broker dealers
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