Introducing Broker

This Issue in United States

Concept of Introducing Broker (IB) in Futures Trading

In this context of financial law, the following is a definition of Introducing Broker (IB): A person (other than a person registered as an associated person of a futures commission merchant) who is engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on an exchange who does not accept any money, securities, or property to margin, guarantee, or secure any trades or contracts that result therefrom. See 7 USC 1a(31).