Posted in Finance, Accounting and Economics Terms, Total Reads: 280
Definition: Blind Brokering
Blind brokering refers to a security trade transaction in which buyer and seller don’t know each other and all the transactions are done through a broker. A broker acts as an intermediary and does not disclose the identities of the two parties involved in the trade. This is very common now days almost all purchase and sell of securities and most transaction on exchange are done on the blind brokering basis where buyer and seller of securities don’t know each other. So anonymity is maintained between trading partners until and unless there is some conflict of interest between two parties then it requires disclosure between two parties. Blind brokering is totally legal.
In some cases, like in privately arranged transactions the disclosure is necessary since there is possibility of conflict of interest.
The example of blind brokering is when we buy or sell shares of any company, we don’t know who are selling or purchasing your shares. Thus there is a broker in between who maintain that anonymity. The buyers and sellers are too widespread across the world and thus every transaction is done through a broker only.