Internalisation: Difference between revisions
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imported>Doug Williamson (Amend links.) |
imported>Doug Williamson (Add link.) |
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* [[Internalisation risk]] | * [[Internalisation risk]] | ||
* [[Long position]] | * [[Long position]] | ||
* [[Prime brokerage]] | |||
* [[Short position]] | * [[Short position]] | ||
* [[Spread]] | * [[Spread]] | ||
Revision as of 14:05, 13 November 2016
1.
The practice where customer trades are executed internally within a brokerage or through intermediaries rather than through an exchange.
The brokerage keeps any money it may make on the spread (the difference between the purchase price and the sale price).
2.
A reduction in the collateral needs of a broker, resulting from the presence of both long and short client positions.
3.
Netting of transactions within a group of businesses, thereby reducing the number and cost of external transactions.
