Introducing Broker
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An Introducing Broker (IB)[1] is an individual or organization that solicits or accepts orders to buy or sell futures contracts or commodity options but does not accept money or other assets from customers to support such orders. Client funds for trading must be placed in an account directly with a Futures Commission Merchant (FCM).
An introducing broker must be a member of NFA. There are two types of IBs. A Guaranteed Introducing Broker is guaranteed by an FCM and may only have customer accounts with one FCM. An Independent IB may have clearing relationships with multiple FCMs, but must meet certain minimum financial requirements.
IB Organizations
The National Introducing Brokers Association is a nationally recognized organization representing professionals in the futures and options industry. Members include Introducing Brokers, Commodity Trading Advisors, futures and options exchanges and Futures Commission Merchants. The NIBA was established in 1991 and is headed by Melinda Schramm, its long-standing chairperson.
References
- ↑ www.nfa.futures.org. National Futures Association, IB Registration. Retrieved on December 17, 2007.
