ProcessIntermediate
Internalization
The practice of executing client orders internally within the broker rather than routing them to external liquidity providers or exchanges.
Last updated: February 10, 2026
1
A client order arrives at the broker's system.
2
Instead of routing to an external LP, the broker matches the order internally.
3
This may involve offsetting against other client orders (client-to-client matching).
4
Or the broker takes the opposite position itself (proprietary internalization / B-book).
5
Internalized orders never reach external markets.