Indirect Bucketing

What is Indirect Bucketing?

Indirect Bucketing meaning Also referred to as indirect trading against. It occurs when a floor broker effectively trades opposite his customer in a pair of non-competitive transactions by buying (selling) opposite an accommodating trader to fill a customer order and by selling (buying) for his personal account opposite the same accommodating trader. The accommodating trader assists the floor broker by making it appear that the customer traded opposite him rather than opposite the floor broker.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary