Inter-Dealer Broker

DEFINITION of 'Inter-Dealer Broker'

1. A brokerage firm operating in the bond or OTC derivatives market that acts as an intermediary between major dealers to facilitate inter-dealer trades.

2. A member of the London Stock Exchange who is only permitted to deal with market makers, rather than the public.

BREAKING DOWN 'Inter-Dealer Broker'

Inter-dealer brokerages operate on very small spreads, but they handle extremely large transactions.

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RELATED FAQS
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    The process of purchasing over-the-counter (OTC) stocks is different than purchasing stock from companies on the NYSE and ... Read Answer >>
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    A broker is an intermediary who has a license to buy and sell securities on a client's behalf. Stockbrokers coordinate contracts ... Read Answer >>
  3. Can a bond be traded over-the-counter?

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  4. What is the difference between a correspondent bank and intermediary bank?

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