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In an agency trade, a fund manager negotiates a competitive commission rate and then chooses a broker who is expected to provide the lowest total cost for executing the trade. The broker then “works” the order by finding a suitable party to take the other side of the trade. In contrast to a principal trade, the broker is not accepting the opposite position or the risks associated with the opposite side of the trade. Effectively, the responsibility of seeking best execution has been delegated to the broker.