Non-Client Order
Categories: Regulations, Trading
An order comes into a brokerage from someone who isn’t a client. This is a problem if the brokerage wants to take the order. Like…who is that person or entity? Are they laundering money for Al Qaeda? Are they qualified to make this purchase? Is the risk level of what they're buying appropriate for their financial position?
See: Know Your Client Rule. If you don’t know the client, generally speaking, you can’t transact on their behalf.