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===Broker capacity=== | ===Broker capacity=== | ||
Why it should matter: | Why it should matter: | ||
*'''Tax''': Where [[stamp duty reserve tax]] is payable on equity transactions, a recognised [[intermediary]] may have an exemption where it is buying as a principal. (where it on-sells to a customer, [[SDRT]] will be payable; if it transacts | *'''Tax''': Where [[stamp duty reserve tax]] is payable on equity transactions, a recognised [[intermediary]] may have an exemption where it is buying as a principal. (where it on-sells to a customer, [[SDRT]] will be payable; if it transacts “[[on swap]]”, [[SDRT]] may not be. | ||
*'''Conflicts of interest''': Both the [[Investment Advisers Act]] of 1940 and [[ERISA]] contain sanctions with varying degrees of severity for discretionary investment managers who should transact for their clients with affiliated [[broker-dealer]]s | *'''Conflicts of interest''': Both the [[Investment Advisers Act]] of 1940 and [[ERISA]] contain sanctions with varying degrees of severity for discretionary investment managers who should transact for their clients with affiliated [[broker-dealer]]s | ||
*'''[[Give-up]]s''': How a trade is executed may have an impact on how it is given up. | *'''[[Give-up]]s''': How a trade is executed may have an impact on how it is given up. | ||
===Synthetic equity=== | ===Synthetic equity=== | ||
The difference between a cash trade and an equity bought | The difference between a cash trade and an equity bought “[[on swap]]” - also known as a “[[contract for differences]]” or “[[CFD]]”. This is particularly important for tax purposes. | ||
===See also=== | ===See also=== |