Responsible Broker-Dealer Law and Legal Definition

Responsible broker-dealer refers to a broker-dealer who communicates bids on the floor of a stock exchange. Responsible broker-dealer also communicates bids or offers at the designated location for trading in a reported security. Responsible broker dealer also communicates the bid or offer as either a principal or an agent, for its own or another’s account.[Gurfein v. Ameritrade, Inc., 411 F. Supp. 2d 416 (S.D.N.Y. 2006)].