The Association represents the interests of its members and those of the markets in which they operate, with particular support in the areas of regulation and legislation both in the UK and Europe
The WMBA has its origins in the Foreign Exchange and Deposit Brokers' Association (FEDBA) established nearly 50 years ago. Its members cover global markets in many countries and facilitate the overwhelming majority of transaction volumes in the Over-The-Counter (OTC) markets.
The Association works on behalf of the inter-dealer broker (IDB) industry to represent their interests and those of the markets in which they operate. Of particular importance are the relationships that the WMBA has with regulators, Government bodies and Central Banks. The Association also supports efforts to ensure the highest standards of training and competence and codes of conduct are adhered to.
The Association produces and publishes indices in respect of Sterling (SONIA), Euro (EURONIA) and Repos (RONIA) and full details of these can be found in our Market Data section.
The Role of the Inter-Dealer Broker
The function of an IDB in the wholesale financial markets is to act as an intermediary or agent, bringing together two independent counterparties to a transaction in a cost effective way.
An IDB does not take principal positions and does not, therefore, take the financial risks of the transaction they broker onto their own books. They act as a conduit for price data and market news. By offering current, as well as historical, market information, they help the client accurately price a wide range of products, whilst receiving a brokerage fee for their service.
Most importantly, an IDB provides the market with liquidity. Business is transacted by telephone or electronically, giving access to a network of hundreds of potential wholesale counterparties worldwide. It should be noted that neither the general public nor the retail investor has direct access to the wholesale broker market.
A key responsibility of the broker is to provide speedy execution. This requires negotiating skills and acute awareness of market practice. By giving the client a neutral and rapid service, confidentiality of sensitive price and counterparty information is assured.
With the help of modern technology, an IDB is ideally placed to respond to the business needs of companies, banks and governments in markets that are truly global, fast moving and rapidly changing.