As we know all the activities in the securities market, performs professional, includes several activities.These include brokerage and dealer activity;activities, assuming control of securities;clearing;depository activity;maintaining the register of securities owners;organization of securities trading in the market and some other activities.Let us dwell on this concept as brokering.
Brokerage activity - an activity by committing civil transactions.The objects are securities transactions, and the brokering activity a person acts as a commission agent or attorney, and operates on the basis of commission agreement or assignment.Besides brokering, or rather its implementation requires a power of attorney to make such transactions, if the contract is not an indication of the powers of a commission agent or attorney.
Broker - a participant of the securities market, which is engaged in brokering.
Today brokerage activities - in most cases the prerogative of commercial organizations established in the form of a limited liability or joint stock company.In our country, this type of activity engaged in as public institutions.In particular brokerage services of Sberbank of Russia, performing securities transactions on behalf of and for the account of customers.
for the legitimate exercise of broker activities require a license, affirming the right of securities market to engage in professional transactions.
The distinctive features that characterize the brokerage activity in comparison with other types of professional activities at the securities market is the fact that brokers can make transactions peredovereniya, but only if this is stipulated in the contract.Peredoverenie also possible in cases where the broker forces to this force of circumstances, and if not possible otherwise to protect the interests of the client.Client the latter necessarily be notified of the intention to make a transaction broker peredovereniya.
is the responsibility of the broker enters faithful implementation of customers' orders in the order they are received.The main responsibilities of the broker also include:
1. The obligation to bring to the knowledge of the customer all the necessary information related to the implementation of recent orders and fulfillment of obligations stipulated by the contract of purchase and sale of securities.For example, the broker does not have the right not to recommend the deal to the client if the latter did not receive full information about the risks that are associated with it;
2. Preservation and management of the client's securities account.This is done within the time specified by the contract.In addition to the broker go to the obligation to submit reports to the client during the performance of the contract as well as statements showing movement of securities and cash in the accounts of accounting of the client;
3. Take measures to ensure the confidentiality of customer data, in particular its name, billing information and other information that has been obtained due to the fulfillment of the obligations stipulated in the contract with the client.
in the stock market may be accompanied by situations where between the broker and the client begins a conflict of interest.In such cases, the broker must notify the client of interest has arisen.If this obligation is ignored by the broker and the client will suffer losses as a result of this, the latter will be every reason to demand from the broker damages.Compensation is carried out in a manner that provided by civil law.
