An interdealer broker is a brokerage firm that operates in the over-the-counter or bond market and acts as an intermediary between major dealers and facilitates inter-dealer trades. Unlike traders and investment bankers, the brokers don't take on risk or devise trading strategies for their clients. Interdealer brokers often facilitate transactions in currencies, bonds, and derivative products related to shares, property and credit markets.
Major Interdealer Brokers
In July 2009, these five firms founded the Wholesale Markets Brokers' Association Americas Inc. (WMBA Americas), an industry association designed to "association to promote the quality and standards of the industry and a better understanding of the critical role played by wholesale brokers in the efficient functioning of financial markets." The WMBAA advocates on behalf of the founding members as regulations related to the Dodd-Frank Act are implemented, specifically rules regarding swap execution facilities and OTC derivatives.
- Credit Seizure? $6 Million Pay Turns on Relationships. Bloomberg.
- 30-Second Guide To Inter-Dealer Brokers. This Is Money.
- Wholesale Market Brokers form New Association. WMBA Americas.