01am EST –Alton Drew – News Block

currency pair Federal Reserve System (1) x-rates.com OANDA
EUR/USD 1.0887 1.0930 1.0934
GBP/USD 1.2701 1.2655 1.2681
AUD/USD 0.6687 0.6636 0.6626
NZD/USD 0.6149 0.6097 0.6095
CHF/USD 1.1137 1.1179 1.1163
JPY/USD 0.0070 0.0069 0.0069
  1. These rates are average rates compiled by the Federal Reserve System as of June 23, 2023.

Today’s Definition: What is an Introducing Broker?

Investopediaa financial information website, defines an introduction broker as:

”(A) broker in the futures markets who has a direct relationship with a client, but delegates the work of floor trading and trade execution to another futures merchant, usually a futures commission merchant (FCM). The IB is generally affiliated with the FCM, either as an independent entity associated with that business enterprise or as a direct subsidiary of that FCM.

Generally speaking, IBs make recommendations while delegating the task of executing trades to someone operating a trading floor. The presenting broker and the person executing a transaction divide the fees and commissions in accordance with some agreed agreement.

17 CFR 5.1(f)(1) defines a filing broker as:

“(C) any person who solicits or accepts orders from a customer who is not an eligible contract participant as defined in section 1a(18) of the Act, in connection with retail currency transactions.”

Introducing brokers must register with the Commodity Futures Trading Commission and become a member of the National Futures Association.

alton drew

June 29, 2023

Disclaimer: This post should not be construed as legal or financial advice. Please contact us if there is a legal question you wish to investigate.

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