Lead brokers

Lead brokers

In floor trading, lead brokers form the link between the buyer and the seller of a security. Thereby, each security is allocated only one lead broker. At FWB Frankfurter Wertpapierbörse (Frankfurt Stock Exchange), lead brokers operate in floor trading

According to the stock exchange rules and regulations, these financial services providers or banks must take into account all orders that have been entered before the time of the price calculation. For these purposes, lead brokers keep their own order book, i.e., a list containing all respective buy and sell orders.

Lead brokers calculate the fair prices on the basis of the above-mentioned data.

The lead brokers' price fixing process is monitored by the market surveillance office of the respective exchange. Additionally, stock market supervision authorities are also monitoring the process. There are currently 15 lead brokers for all tradable securities in floor trading.