Series 24: 5.9.2.1. ACT Reporting Participants

5.9.2.1. ACT Reporting Participants

ACT participants are designated as either introducing brokers, executing brokers, or clearing brokers.

• Introducing brokers are parties to a transaction, but they cannot execute or clear trades. To enter the system, they must find an order entry firm or market maker to execute trades on their behalf.

• Executing brokers are market makers and order entry firms that are authorized to submit trade data into the ACT system. To get authorization, each market maker and order entry firm must first establish a relationship with a clearing firm. When an executing broker-dealer becomes an ACT participant, it must identify its clearing broker-dealer.

» Larger executing brokers are often their own clearing brokers and are call