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In a transaction involving an executing broker and an introducing broker, how is commission reported?

April 26, 2017broker Commission executing involving reported transaction

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In a transaction involving an executing broker and an introducing broker, how is commission reported?

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Both the executing and the introducing broker must be represented in the trade report. If the executing broker were long bonds, it would report that it “sold” as principal, net to the introducing broker. If the introducing broker charged its customer a commission, the introducing broker must report the commission in the separate “commission” field.