Introducer Broker Agreement

An introductory broker (IB) acts as an intermediary by comparing an entity seeking market access with a counterparty willing to take the other side of the transaction. In general, IBs issue recommendations as they delegate the task of executing trades to someone who works on a commercial surface. The introductory broker and the one who makes a transaction allocates fees and commissions after certain agreed agreements. 6. Limiting the administration of individual treatment 6.1. The IB is not allowed to act without the company`s prior written consent:6.1.1. to assume responsibility on behalf of the company or to subject the company to obligations;6.1.2. publish documents (articles, letters) or help write material (articles, letters) through the company in newspapers, magazines or other magazines or on internet resources (such as blogs, social networking sites, forums, etc.) that may damage the company`s positive image; or 6.1.3. provide guarantees and/or commit to claiming rights to payments in the context of company contracts and/or agreements. The introduction of brokers helps to increase efficiency and reduce the workload of Commission futures traders.

The layout allows for a specialization in which IB focuses on the customer, while the FCM focuses on the trade of ground operations. An importing broker (IB) is a futures broker who has a direct relationship with a client, but delegates ground-based and executing work to another futures trader, usually a futures commission trader (FCM). As a general rule, IB is linked to the FCM, either as an independent entity working with that trading company or as a direct subsidiary of that FCM. 14.2. Barring express provision, this agreement will apply before the effective date, with the total exclusion of any agreement or arrangement of any kind, with respect to the purpose of this agreement between the parties. 3. Interaction of parts3.1. This agreement does not constitute an agreement for the creation of a partnership, joint venture, agency or employer-employee relationship. The IB can only operate and act as an existing customer of the company, which serves as IB and not other function, in its dealings with third parties. The introduction of brokers plays the same role in futures markets as stockbrokers on stock markets.

However, they are regulated by different authorities. Brokers are registered with the Securities and Exchange Commission (SEC) and are regulated by the Financial Industry Regulatory Authority (FINRA). Futuresbrokers are registered with the Commodity Futures Trading Commission (CFTC) and regulated by the National Futures Association (NFA). 7.3. The calculation formula for the IB Recommendation Commission is posted on the company`s website.8. Representations and guarantees 8.1. The IB presents it from the effective date:8.1.1 and guarantees it. if it is a company, it is duly registered and valid in accordance with the laws of the jurisdiction in which it was registered. 8.1.2. In the case of a business, it has taken, fulfilled and made all necessary measures, conditions and conditions, including all necessary business measures, (i) to legally exercise its rights to perform and comply with its obligations, in accordance with the provisions of this agreement and the proposed transactions; and (ii) to ensure that these commitments are legally binding and enforceable.8.1.3.