Broker-Dealer
Definition
A firm that engages in the business of buying and selling securities for its own account (dealing) or on behalf of clients (brokering). Broker-dealers are subject to capital requirements, conduct of business rules, best execution obligations, and market abuse prevention requirements. In the US, they must register with the SEC and FINRA.
Regulatory Context
The regulatory framework for broker-dealers varies significantly by jurisdiction. In the US, broker-dealers are regulated under the Securities Exchange Act and FINRA rules. In the EU, they fall under MiFID II as investment firms.