Introducing Firm Sample Clauses
The 'Introducing Firm' clause identifies and defines the role of the party responsible for introducing clients or transactions to another firm, typically within a financial or brokerage context. This clause clarifies the relationship between the introducing firm and the receiving or executing firm, often specifying the scope of authority, responsibilities, and any limitations on the introducing firm's activities. By clearly delineating these roles, the clause helps prevent misunderstandings regarding client management and liability, ensuring that each party's duties are transparent and reducing the risk of disputes.
Introducing Firm. Introducing Firm represents and warrants that:
Introducing Firm. The Introducing Firm shall indemnify and hold the Clearing Agent harmless from and against any losses, claims, damages, liabilities or expenses including without limitation those asserted by Introduced Accounts (which shall include, but not be limited to, all costs of defense and investigation and all reasonable attorney's fees) to which the Clearing Agent may become subject, insofar as such losses, claims, damages, liabilities or expenses arise out of or are based upon any of the following:
i. any breach of any representation or warranty made by the Introducing Firm under this Agreement or any failure of the Introducing Firm to perform, undertake, honor or comply with any of its responsibilities or covenants under this Agreement;
ii. the negligence or willful misconduct of the Introducing Firm or its employees in providing the services contemplated hereunder, including the unreasonable failure to obtain relevant information from customers as requested by the Clearing Agent or required by this Agreement;
iii. the loss of securities or cash prior to the actual receipt by the Clearing Agent or an appropriate national clearing organization of such securities from the Introducing Firm or after actual receipt of such securities by the Introducing Firm from the Clearing Agent or an appropriate national clearing organization;
iv. failure of the Introducing Firm to collect margin from its customers after instruction by the Clearing Agent to collect such margin;
v. failure of the Introducing Firm to provide the Clearing Agent with a customer's correct tax identification number or address;
vi. with respect to any Introduced Account, errors, misunderstandings, controversies or failure of any customer to satisfy his or her obligations, unless such losses, claims, damages, liabilities or expenses are the result of the Clearing Agent's error, negligence or willful misconduct;
vii. the exercise by the Introducing Firm, its officers, affiliates or employees of discretionary authority over Introduced Accounts;
viii. any attempt of the Introducing Firm to hold itself out as, advertise or in any way represent that it is the agent of the Clearing Agent, or has apparent authority to act as an agent of the Clearing Agent or agency by estoppel; or
ix. the Introducing Firm executes its own over-the-counter order or designates the counter party and the over-the-counter dealer with whom the Introducing Firm dealt or whom it designated fails to honor its part of the transaction.
Introducing Firm