DEFINITION of 'Association Of Futures Brokers And Dealers - AFBD'

An organization established by the major London futures exchanges to provide regulatory supervision for futures brokers and dealers. The Association of Futures Brokers and Dealers (AFBD) was a self-regulating organization when it was founded in 1984. It has since been incorporated into the Financial Services Authority.

BREAKING DOWN 'Association Of Futures Brokers And Dealers - AFBD'

The Association of Futures Brokers and Dealers was formed to be a self-regulatory organization to oversee futures broker and dealer activity. The association developed and maintained standards to which British brokers and dealers on futures exchanges were expected to adhere. In 1991, the Association of Futures Brokers and Dealers merged with The Securities Association (TSA) to form the United Kingdom's Securities and Futures Authority (SFA), which sets the rules of fair practice as well as capital requirements for firms active in the securities, futures and options markets.

RELATED TERMS
  1. Dealer

    A dealer is a person or firm in the business of buying and selling ...
  2. Dealer Incentive

    A dealer incentive is a financial inducement used by manufacturers ...
  3. Privilege Dealer

    An individual or a securities firm that is registered as a market ...
  4. Dealer Financing

    Dealer financing refers to loans originated by a retailer that ...
  5. Markup

    The difference between an investment's lowest current offering ...
  6. Bid Wanted In Competition (BWIC)

    Bid wanted in competition (BWIC) is a situation wherein an institutional ...
Related Articles
  1. Investing

    Picking your first broker

    If you're a rookie investor, choosing a broker may be your first big investment decision. Learn more on whether you should you go with a full-service broker or a discount broker.
  2. Financial Advisor

    Is Your FX Broker In Compliance?

    Sharon Pendleton, director of compliance, National Futures Association (NFA), discusses some of the new rules that now govern forex brokers or dealers.
  3. Trading

    Price Shading In The Forex Markets

    This practice puts brokers ahead of their clients, but it doesn't have to be a negative for traders.
  4. Trading

    An Introduction To Securities Markets

    The global securities market is constantly evolving. Discover the most popular market structures currently in use.
  5. Trading

    5 Tips For Selecting A Forex Broker

    Discover the best ways to find a broker who will help you succeed in the forex market.
  6. Personal Finance

    Research Report Red Flags For Brokers

    Discover how to look past analysts' ratings to find winning stocks for your clients.
  7. Insights

    Why Don’t Regulators Check All Financial Professionals?

    Reports indicate that there is a growing need for increased supervision of brokers.
RELATED FAQS
  1. Why Do Brokers Ask for Personal Information?

    There are 3 reasons a broker needs personal information: suitability, record-keeping and the law. Read Answer >>
  2. Why are most brokerage firms owned by banks?

    Learn about the differences between investing with a bank-owned brokerage firm or with an independent broker. Get real answers ... Read Answer >>
  3. 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 >>
  4. How does FINRA differ from the SEC?

    Discover how Securities and Exchange Commission (SEC) is different from the Financial Industry Regulatory Authority (FINRA) ... Read Answer >>
Hot Definitions
  1. Treasury Yield

    Treasury yield is the return on investment, expressed as a percentage, on the U.S. government's debt obligations.
  2. Return on Assets - ROA

    Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets.
  3. Fibonacci Retracement

    A term used in technical analysis that refers to areas of support (price stops going lower) or resistance (price stops going ...
  4. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  5. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  6. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
Trading Center