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An agency cross is a transaction in which the broker for both parties is the same.
Even though our broker incidentally has a client willing to buy our securities at our price, we still need to go through the open market to conform to agency cross regulation.
Agency cross transactions are subject to specific regulations because there is an increased risk of a conflict of interest. This results from the fact that the broker is acting on behalf of both counterparties involved in the transaction. The broker is obliged to perform an arm’s length transaction, must have the clients’ prior consent to perform such transactions, and must act in both clients’ best interests so as not to favor either client over the other. Because of these obligations, agency crosses are often concluded at the so-called mid-price. The same requirements hold if the broker is an associated entity of the client’s investment advisor.
„Agency cross“ je transakce, ve které je makléř obou stran stejný.
Ačkoli náš makléř náhodou má klienta, který by byl ochoten naše cenné papíry koupit za naši cenu, musíme přesto jít na otevřený trh, abychom splnili regulace agency cross.
Tyto transakce podléhají určitým regulacím, protože u nich existuje zvýšené riziko střetu zájmů. Je to proto, že makléř jedná za obě protistrany, které se na transakci podílí. Makléř je povinen provést transakci dle tržních podmínek, musí mít klientův souhlas předtím, než ji provede a musí stále jednat v nejlepším zájmu klientů, aby nestranil jednomu klientovi na úkor druhého. Kvůli těmto povinnostem jsou transakce agency cross často provedeny za takzvanou střední cenu. Stejné požadavky platí, pokud je makléř přidruženou osobou investičního poradce klienta.
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English Editorial Services’ mission is to assist international businesses and organizations of all sizes to communicate clearly, correctly, and persuasively with their business partners and target audiences.
Simply subscribe to receive our Business Term of the Day at no charge to your inbox each business day, with explanation in English and Czech.
