Intermediaries are legal entities authorized to: perform brokerage or commission activities or other activities designed to bring together supply and demand of securities, perform proprietary trading with IPO’s of securities issued or guaranteed by a third party as well as administer and manage portfolios of securities owned by third parties.
In accordance to Article 113 of Securities Market Act (LMV), intermediaries are:
- Brokerage firms.
- Credit Institutions (commercial banks and development banks)
- Mutual Funds and Pension Funds and,
- Distributors of mutual funds shares and Financial Institutions authorized to act on the aforementioned character of distributors.
- Other financial institutions authorized by other laws to trade securities in their respective markets.
Brokerage with securities listed on the National Registry of Securities (RNV) may only be provided by financial institutions authorized to act as intermediaries in the stock market.
Market intermediaries may give the stock brokerage services of unregistered securities in the RNV, only in relation to shares representing the capital of legal entities, in compliance with the provisions in the Securities Market Act (LMV).
Brokerage activities regarding securities that operate abroad or issued under foreign law, likely to be listed in the International Quotations System (SIC) of a stock exchange may only be provided through this system.