Blind Brokering

AAA

DEFINITION of 'Blind Brokering'

When brokerage firms ensure anonymity to both the buyer and the seller in a transaction. In the ordinary course of securities trading, most brokerage transactions are "blind". Exceptions occur for broker/dealers or others acting as both broker and principal on a given trade

INVESTOPEDIA EXPLAINS 'Blind Brokering'

Disclosure to either the buying or selling party of the identity of the other is not the norm in public securities trading, except in some cases of privately arranged transactions.

The only exception to this is when the broker is a principal and selling securities from its own inventory to a customer of the firm. In this case, disclosure is required due to a possible conflict of interest.

RELATED TERMS
  1. Cross Trade

    A practice where buy and sell orders for the same stock are offset ...
  2. U.S. Treasury

    Created in 1798, the United States Department of the Treasury ...
  3. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  4. Broker

    1. An individual or firm that charges a fee or commission for ...
  5. Primary Dealer

    A pre-approved bank, broker/dealer or other financial institution ...
  6. Surrender Period

    The amount of time an investor must wait until he or she can ...
Related Articles
  1. Does a broker always have to buy a stock ...
    Investing

    Does a broker always have to buy a stock ...

  2. A Look At Primary And Secondary Markets
    Investing Basics

    A Look At Primary And Secondary Markets

  3. Broker Or Trader: Which Career Is Right ...
    Options & Futures

    Broker Or Trader: Which Career Is Right ...

  4. The Importance Of Trading Psychology ...
    Options & Futures

    The Importance Of Trading Psychology ...

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center