Definition: [crh] Used for listed equity securities. (1) Term used in a securities transaction involving three brokers, as Definition: follows: Broker A, a floor broker, executes a buy order for broker B (a member fiDefinition: rm broker who has too much business at the time to execute the order). The broker with whom broker A completes the transaction (the selDefinition: l-side broker) is broker C. Broker A "gives up" the name of broker B, so that the record shows a transaction between broker B and broker C even though the tradeDefinition: > is actually executed between broker A and broker C; (2) distribution of commissions to brokerage houses not participating in a trade. Definition: This is a grey area of the law governing reimbursement of a broker for services (e.g., research). See: Directed brokerage.
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