A counter broker is the opposite of the broker initiating a transaction, working with them to complete orders efficiently. They have no special credentials and aim to ensure smooth transactions for their clients.
Contra brokers are brokers who are associated with the opposite end of any type of investment transaction. Essentially, the counter broker is the mirror image of the broker who is initiating a transaction on behalf of a given investor. The counter broker handles any actions required to work with the initiating broker to successfully complete the order issued by an investor.
The Counter Broker should not be seen as an external or opposing force within the trade order execution process. Actually, a counter broker is the opposite of any kind of hindrance or delay in the execution of an order. When the counter broker is on the sell end of a buy order, he will do everything in his power to ensure that the purchase goes smoothly and without unnecessary delay. At the same time, when the counterbroker is on the buy side of a sell order, they have an obligation to also perform all tasks related to the transaction with efficiency and professionalism.
There are no special skills or credentials that are necessary to be a counter runner. Almost all runners at one time or another will serve in this capacity. This may be due to helping a corporate client with a contra account, such as accumulated amortization. Other types of counter accounts may also be involved. At the same time, a counter broker may simply be a broker attached to a brokerage house that is processing an incoming order.
In most cases, it is in the best interest of the counter broker, as well as their client, to ensure that the transactions go smoothly. At the same time, the counter broker will always choose to do whatever is in the best interest of their client, just as the originating broker will also seek to do the best job possible for an investor. To accomplish this, the typical counterbroker will be knowledgeable about the market, fully competent with applicable laws and regulations, and always prepared to participate in investigations that affect the nature of the transaction.
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