Using an unnecessary third party (usually another broker-dealer) between a customer and the best available market price, with the sole purpose being to generate extra commissions is called

Explanations

FINRA Rule 5310 (Best Execution and Interpositioning) requires that, in any transaction for or with a customer or a customer of another broker-dealer, firms use reasonable diligence to ascertain the best market for the subject security and buy or sell in such market so that the resultant price to the customer is as favorable as possible under prevailing market conditions. Interpositioning is illegal under the Investment Company Act of 1940