[1] The largest inter-dealer brokers by trade volume, listed in alphabetical order, are: In the fixed income markets, IDBs are specialized securities companies serving as intermediaries which facilitate transactions between broker/dealers and dealer banks in the debt markets.
[4] Broker/dealers and other financial institutions utilize the secondary fixed income markets to execute their customers’ orders, trade for a profit and manage their exposure to risk, including credit, interest rate and exchange rate risks.
As a result, financial institutions need a way to find information, liquidity and anonymity for their trading activity.
Inter-dealer brokers play varying roles in each of the fixed income markets and have become instrumental to their effectiveness and efficiency.
IDBs provide potential buyers and sellers with the critical market information they need to trade.