The ability of a firm to act either as principal with the customers when trading or to act as agent on behalf of their customers. Dresdner Kleinwort Wasserstein financial glossary
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dual capacity ˌdual caˈpacity noun [uncountable]
FINANCE when a marketmaker (= financial institution that has supplies of shares to sell ) is allowed to buy and sell shares for itself as well as for clients. This situation has existed on the London stockmarket since Big Bang:
• Under dual capacity a member firm can act as both agent and principal whereas previously jobbers and brokers were separated.
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dual capacity UK US noun [U]
► STOCK MARKET the system on the London Stock Exchange in which some financial organizations are allowed to trade in shares for themselves and for others: »
There were fears that the advent of dual capacity would produce conflicts of interest.
Financial and business terms. 2012.