A brokerage that acts as principal and does not disclose names or identities of the contra parties to either side of a brokered trade at the time of the trade. Blind brokerages execute their customers’ orders on an anonymous basis. For example, an investment bank may act as a blind broker connecting dealers who seek to temporarily sell securities in order to borrow money and an investor who wants to temporarily buy securities (lend money).
February 18, 2024