A trade that is dependent on one of the parties in the transaction to complete a transaction with another party in order to eliminate the risk that is normally involved with the trade both party are about to undertake.
Related information about riskless principal:
- Riskless Principal Definition | Investopedia
A trade in a security that involves two orders, with the execution of one of these orders dependent upon the receipt or execution of the other. Riskless principal is ...
- Riskless Principal
For a downloadable PDF of our memorandum discussing these frequently-asked questions about Riskless Principal, click here. What is a riskless principal, and ...
- 01-85 Guidance on Compensation and Mixed Capacity
A. In Nasdaq, a riskless principal trade is one in which a broker/dealer, after having received an order to buy (sell) a security, purchases (sells) the security as ...
- What is riskless principal? definition and meaning
Definition of riskless principal: A trade that is dependent on one of the parties in the transaction to complete a transaction with another party in order to eliminate ...
- Riskless Principal: Definition from Answers.com
Riskless Principal Two principal transactions occurring at the same price that are reported only once as an agency transaction.
- Trade Reporting Frequently Asked Questions - FINRA
May 10, 2012 ... Q101.5: Member BD1 receives an order from member BD2 to buy 5,000 shares of ABCD security and works the order as riskless principal.
- REG 2007-57: Riskless Principal Transactions and Other Changes ...
Dec 4, 2007 ... adding a "riskless principal" exception, which would permit off-floor members to place orders as principal for securities for which one or more of ...
- Bingham | Callcott Discusses “Riskless” Principal Trades
Callcott Discusses “Riskless” Principal Trades. Broker-Dealer. IA Watch, May 10, 2010 — The question of whether a “riskless” principal trade is still a principal ...