A broker who facilitates transactions between buy and sell sides and pass the names to both sides in order to proceed with a bilateral trade on their own (without an intermediary). A name passing broker provides quotes on request to counterparties to bilateral transactions in order to forge or enter into bilateral contracts. Therefore, as name passing does not involve execution of transactions (that is, orders are not received and transmitted for execution, and therefore best execution is neither sought nor applicable in such name-passing markets.

Given the fact that the final details of a transaction/ trade are agreed between the two counterparties, name passing brokers’ role is mostly about concluding agreements. In other words, these brokers do not execute trades/ order, but rather quote prices. In performing their intermediary role, such brokers do not have any contractual or agency duties/ obligations towards a transaction’s counterparty.