A method of executing financial transactions through a voice broker who acts as an intermediary between the buyer and seller, relaying bids and offers verbally. Voice indirect trading allows counterparties to maintain anonymity during price discovery while the broker matches buyers with sellers. This method remains prevalent in markets for less liquid instruments, bespoke derivatives, and large block trades where electronic matching may be insufficient.
Example
“The bond trader used a voice broker to source a $50 million block of off-the-run Treasuries, as the electronic order book showed insufficient depth at the desired price.”