Definitions for "Interpositioning"
Placement of a second broker in a securities transaction between two principals or between a customer and a market maker. Abuses, such as interpositioning to create additional commission income, are illegal.
The placing of a third party between a broker-dealer and its customer when filling a trade. This practice is prohibited unless it results in a better execution for the customer.
An unethical and unfair practice by a broker/dealer of needlessly employing a third party between the customer and the best available market, so that the customer pays more on a purchase or receives less on a sale than he should.