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Introducing / Carrying Broker Relationship



Introducing / Carrying arrangements are entered into to allow a Member (the "introducing" broker) to use the back office facilities of another Member (the "carrying" broker). The services provided may include any combination of:

 

  • the execution of trades;
  • the clearing and settlement of trades;
  • the custody of client funds and securities;
  • the maintenance of books and records of client transactions and;
  • the financing of client positions.

 

These arrangements allow the introducing broker to rationalize its own operations while retaining its relationships with its clients.

 

Introducing Broker (Type 1-4) - Definition

 

This agreement is between an introducing broker and a carrying broker for the purposes of establishing a Type (1-4) introducing/carrying broker arrangement. A Type (1-4) introducing/carrying broker arrangement is one of four introducing carrying broker arrangements where an introducing broker is allowed to introduce clients to a carrying broker. In this agreement, the Type (1-4) carrying broker has agreed to perform certain services including clearing and record-keeping activities for the Type (1-4) introducing broker. The agreement is required by IIROC under Dealer Member Rule 35, Introducing/Carrying Broker Arrangements. IIROC must approve of the arrangement before it becomes effective.

 

Type 1 Introducing Broker

Type 2 Introducing Broker

Type 3 Introducing Broker

Type 4 Introducing Broker

 


 

Additional information

 

 

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