Indirect Bucketing

This Issue in United States

Concept of Indirect Bucketing in Futures Trading

In this context of financial law, the following is a definition of Indirect Bucketing: Also referred to as indirect trading against. It occurs when a floor broker effectively trades opposite his customer in a pair of non-competitive transactions by buying (selling) opposite an accommodating trader to fill a customer order and by selling (buying) for his personal account opposite the same accommodating trader. The accommodating trader assists the floor broker by making it appear that the customer traded opposite him rather than opposite the floor broker.