Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

interdealer broker

Interdealer brokers sit between investment banks. They help find buyers and sellers of large, usually illiquid blocks of securities at other investment banks or dealers. They might conduct deals on behalf of large corporations, but the corporations generally go through the investment banks first. Interdealer brokers are used when banks want to move large illiquid assets such as interest swaps, commodities or blocks of shares. They are paid a commission for negotiatiing the deal between the buyer...