Commission: In the context of securities, this involves mixing customer-owned securities with brokerage firm-owned securities. This process is referred to as rehypothecation, which is the use of customers' collateral to secure their loans. This is legal with customer consent, although some securities and collateral must be kept separately.

 

Related Words

Commission: An amount, which may vary, that a travel agent or tour operator receives from a supplier for marketing/selling transportation, accommodations, services or other products or services.

Futures Commission Merchant (FCM): A futures commission merchant (FCM) is a person or a firm that acts as an agent to execute buy or sell orders for futures contracts or commodity options. You may open an account directly wit . . . View Full Definition

Commission Broker: The fee paid to a broker to execute a trade, based on number of shares, bonds, options, and/or their dollar value. In 1975, deregulation led to the establishment of discount brokers, who cha . . . View Full Definition

Commission On 21st Century Production Agriculture: An 11-member panel authorized by Title I-G of the FAIR Act (P.L. 104-127) to conduct a comprehensive review of the farm economy, including the impact of the 1996 law: and a follow-up review . . . View Full Definition