What it is:
A saitori is a member of the TokyoExchange who matches buy and sell orders.
How it works/Example:
Saitori are similar to specialists in the New York listed securities.
A saitori has four roles. First, he is the ; that is, he is the primary party to a transaction. He must be willing to buy and sell out of his own inventory to steady the if there is a buying frenzy or a huge sell-off. Second, he is an agent; that is he places orders on behalf of his clients and ensures that they get the best price as fast as possible. Third, he is a catalyst; that is, he reports the prices of his securities in a timely manner and he sets the opening bid prices of his securities every morning based on supply and demand. Fourth, the saitori is an auctioneer; that is, he must disclose what the best buying and selling prices are and ensure that orders are transacted properly.
Why it matters:
In the U.S., specialists are not allowed to trade for their own accounts; they can only trade for clients. Saitori are less regulated in this area.