Interbank market news scan: Foreign exchange rates as of 8:01 am EST.

Currency pair	Federal Reserve System (1)	x-rates.com	OANDA
EUR/USD	1.0887	1.0930	1.0934
GBP/USD	1.2701	1.2655	1.2681
AUD/USD	0.6687	0.6636	0.6626
NZD/USD	0.6149	0.6097	0.6095
CHF/USD	1.1137	1.1179	1.1163
JPY/USD	0.0070	0.0069	0.0069

1. These rates are average rates compiled by the Federal Reserve System as of 23 June 2023. 

Today’s definition: What is an introducing broker?

Investopedia, a financial information website, defines an introducing broker as:

” [A] broker in the futures markets who has a direct relationship with a client, but delegates the work of the floor operation and trade execution to another futures merchant, typically a futures commission merchant (FCM). The IB is usually affiliated with the FCM, either as an independent entity that is partnered with that merchant firm or as a direct subsidiary of that FCM.

Generally speaking, IBs make recommendations while delegating the task of executing trades to someone who operates on a trading floor. The introducing broker and whoever executes a transaction split the fees and commissions according to some agreed upon arrangement.”

17 CFR 5.1(f)(1) defines an introducing broker as:

“[A]ny person who solicits or accepts orders from a customer that is not an eligible contract participant as defined in section 1a(18) of the Act, in connection with retail forex transactions.”

Introducing brokers are required to register with the Commodity Futures Trading Commission and become members of the National Futures Association.

Alton Drew

29 June 2023

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