TRADE|trade|trading operation · FINANCE|free movement of capital|financial market
- non-executing broker | non-executive broker
- en
- Definition investment firm that handles orders from members or participants and routes them to the trading venue’s order book Reference "Consultation Paper: Guidelines on transaction reporting, reference data, order record keeping & clock synchronisation. ESMA (European Securities and Markets Authority), https://www.esma.europa.eu/sites/default/files/library/2015-1909_guidelines_on_transaction_reporting_reference_data_order_record_keeping_and_clock_synchronisation.pdf [11.10.2016]"
- Comment Such orders are considered in effect as being introduced in the trading venue’s order book by the member or participant and, thus, trading capacity of the order is referred to that of the member or participant. The trading venue usually requires that, if a member or participant wishes to use a non-executing broker to send its orders to the trading venue, a designation agreement has to be signed by the member or participant and sent to the trading venue. Additionally, the trading venue may hold a public registry where non-executing brokers are recorded.