Agency Cross

AAA

DEFINITION of 'Agency Cross'

A transaction in which an investment adviser acts as the broker for both his client and the other party to the transaction. Investment advisers are not required to obtain the client's consent for each individual agency cross transaction, but must have the client's prior consent to engage in such transactions.

INVESTOPEDIA EXPLAINS 'Agency Cross'

As in all transactions, advisers are required to obtain the best possible price and execution in agency cross transactions. If an affiliate of the adviser brokers such a transaction, it is still considered an agency cross transaction, just as if the adviser had brokered it. Agency cross transactions are governed by Rule 206(3)-2 of the Investment Advisers Act of 1940.

RELATED TERMS
  1. Payment For Order Flow

    The compensation and benefit a brokerage receives by directing ...
  2. Broker-Reseller

    A type of broker that acts as an intermediary between large brokerages ...
  3. Broker

    1. An individual or firm that charges a fee or commission for ...
  4. Cross Trade

    A practice where buy and sell orders for the same stock are offset ...
  5. Agent

    1. An individual or firm that places securities transactions ...
  6. Discretionary Investment Management

    A form of investment management in which buy and sell decisions ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Charts & Patterns

    The Basic Language Of Candlestick Charting

    If you want to use candlestick charting to get a sense of where a stock is headed, you need to learn how to read this unique charting language.
  2. Forex Education

    Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.
  3. Forex Education

    Make The Currency Cross Your Boss

    Tap into a world of possibilities by going beyond the simple pro- or anti-dollar trade.
  4. Forex Education

    MACD And Stochastic: A Double-Cross Strategy

    Two indicators are usually better than one. Find out how this pairing can enhance your trading.
  5. Investing

    Active Funds: Getting What You Are Paying For?

    Fund investing could have hidden costs that can potentially make a big impact on your final return, particularly over the long-term.
  6. Brokers

    How Brokerage Fees Work

    What you need to know about fees when choosing between a full service and discount broker.
  7. Investing

    What is Asset Management?

    In the investment world, asset management refers to active management of an investor’s portfolio by a financial services company – usually an investment bank.
  8. Brokers

    OptionsXpress Vs. OptionsHouse: Which One To Pick?

    OptionsXpress and OptionsBroker -- each offers a price mix and set of services suitable for certain investors based on their trade approach and priorities.
  9. Mutual Funds & ETFs

    Are Financial Advisors Becoming Dinosaurs?

    Technology is transforming the field of wealth management. Has the shift made financial advisors obsolete?
  10. Professionals

    Which Robo-Advisor is Right for You?

    Which robo-advisor is right for you? There are many factors to consider, including breadth of services, ease of use and cost.

You May Also Like

Hot Definitions
  1. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  2. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  3. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  4. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
Trading Center