Government Broker

DEFINITION of 'Government Broker'

A senior British stockbroker who works for the U.K. government. The government broker is authorized to purchase and sell government securities on the London Stock Exchange. She or he operates according to instructions received from the Bank of England and also serves as broker to the National Debt Commissioners. The government broker was senior partner of Mullins & Co. until 1986 when the Bank of England opened its gilt-edged division. Since then, gilt-edged market makers – authorized to deal directly in gilt-edged securities - have, for the most part, assumed the function of the government broker.

BREAKING DOWN 'Government Broker'

The establishment of the Bank of England's gilt-edged division concurred with the "Big Bang" in October 1986. The Big Bang created massive market upheaval on the London Stock Exchange by abolishing fixed commission rates for stockbrokers and doing away with exchange rules that established a formal division between brokers and "jobbers" or wholesalers. The London securities market was in large part modernized, and has since become a major force in the globalization of financial markets.

RELATED TERMS
  1. Gilt-Edged Switching

    The selling and repurchasing of certain high-grade stocks or ...
  2. Gilt-Edged Bond

    A bond issued by the U.K. government at a fixed interest rate ...
  3. Gilt-Edged Securities

    High-grade bonds that are issued by a government or firm. This ...
  4. Discount Broker

    A stockbroker who carries out buy and sell orders at a reduced ...
  5. Give Up

    A procedure in securities or commodities trading where the executing ...
  6. Carrying Broker

    A commodities or securities broker who provides back office functions ...
Related Articles
  1. Personal Finance

    How to Pick the Right Stockbroker

    A stockbroker can play an invaluable role in growing your investments, but not all brokers are created equally. Use this guide.
  2. Investing Basics

    How To Choose The Right Online Trading Broker

    The online broker market is becoming more competitive, but differences exist in services that can help traders choose the broker that’s right for them.
  3. Professionals

    Is A Stockbroker Career For You?

    Becoming a stockbroker requires a broad skill set and the willingness to put in long hours. But the rewards can be enormous.
  4. Investing Basics

    Why Use a Discount Broker?

    A discount broker is a stockbroker that does not offer clients investment advice, but trades shares for a smaller commission than a full-service broker.
  5. Term

    Choosing a Stockbroker Over a Discount Broker

    A stockbroker executes buy and sell orders submitted by investors.
  6. Options & Futures

    Broker Or Trader: Which Career Is Right For You?

    A day in the life of a broker or trader is an exciting and varied one. Find out how to decide between these two financial professions.
  7. Investing Basics

    Picking Your First Broker

    If you're a rookie investor, your first big investment decision should be an informed one.
  8. Brokers

    Is Your Broker Acting In Your Best Interest?

    Learn the clues you'll need to determine whether you've chosen a reputable professional.
  9. Forex Education

    Is Your Forex Broker A Scam?

    While the forex market is slowly becoming more regulated, there are many unscrupulous brokers who should not be in business.
  10. Forex

    How Forex Brokers Make Money

    Forex brokers set their prices based on commission, spread, or a combination of both. Traders have to be cautious in the thinly regulated forex market.
RELATED FAQS
  1. What is the difference between a broker and a market maker?

    A broker is an intermediary who has a license to buy and sell securities on a client's behalf. Stockbrokers coordinate contracts ... Read Answer >>
  2. What is a typical day in the life of a stockbroker, from start to finish?

    One of the great attractions for many that become stockbrokers, is that there is no such thing as a typical day. In fact, ... Read Answer >>
  3. Does a broker always have to buy a stock if I want to sell it?

    There are certain times when a broker must purchase the stock that you are selling. For example, if the broker is a market ... Read Answer >>
  4. There are so many stockbrokers out there. How do I go about choosing the best one ...

    If you decide that you have the knowledge and experience to take on stock investing, or if you feel you would like to give ... Read Answer >>
  5. I'm new to this. Can I sell or buy stock by myself?

    In order to buy stocks, you need the assistance of a stock broker since you cannot just phone up a company and ask to buy ... Read Answer >>
  6. My broker just sold securities out of my account without my permission. Is this legal?

    Your broker's actions are not legal unless he or she sold the securities under certain conditions. Let's look at the two ... Read Answer >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center