Name switching is:
A) the practice of a dealer attempting to replace one customer by a new one in a previously dealt transaction
B) the practice of a broker having to show a new name to the dealer, although he was full on the first name presented to him
C) the practice of a broker attempting to substitute a third name between the two original counterparties to clear the transaction
D) the practice of a broker attempting to show a substitution name to get out of a situation in which he was stuffed by a dealer

Question

Quizplus · Accepted Answer

Name switching refers to the practice of a broker attempting to substitute a third name between the two original counterparties to clear the transaction. This can be done for various reasons, such as to hide the identity of one of the parties, to avoid a failed trade, or to manipulate the market. However, this practice is considered fraudulent and illegal.

Name Switching Is