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Agency cross
A trade where a broker executes an order from a client by matching it with an opposite order from another client.
(1) This practice, which is likely to give rise to abuses, is strictly regulated on organized markets.
(2) The term cross and related terms are sometimes used in a broader sense which also includes the principal transaction (in which the broker transacts with its client). The terms agency cross, for a cross-trade, and principal cross, for a principal transaction, are then used.
Translations
Synonyms and variations
- Cross
- Cross transaction
- Crossing
- Cross-trade
- Principal cross
- Put-through