Two pieces of information seems to conflict between each other in the notes:
LOS39.C “this service(the brokered market) is valuable …. When the trader wants to remain anonymous”
LOS39.K “in a need trustworthy agent trading focus, ….the weakness of this strategy is that ….the trader may reveal his trade intentions to the broker, which may not be in the trader’s best interests”
So, if in the exam, the question ask us to choose a trading tactic to keep us from information leakage, whether broker is a right option?
Brokered Market - brokers act as a trader’s agent to find counterparties
Trading tactic: Need-trustworthy-agent —> here broker uses his skill & time to obtain lower price to execute a large order—here the usual trade motivation is not information driven…is it?
Broekred market - you remian anonomyous to the market. The broker knows what you ware trying to do, but the rest of the market doesnt know who you are.
Trustworthy agent - you hire someone to make the trade. You may still be anonymous to the market, however you run the risk of the agent frontrunning a trade or leaking information to the public about your intentions.