Who are inter dealer brokers?

Inter-dealer brokers are financial intermediaries who facilitate transactions between banks and other financial institutions, specifically in fixed income securities such as gilts (government bonds). They play a crucial role in providing liquidity to the market by matching buyers and sellers, ensuring that trading happens more efficiently and transparently.

The correct choice highlights that inter-dealer brokers are non-GEMM (Gilt-Edged Market Makers) members who can buy or sell gilts. This distinction is important because it recognizes the role of inter-dealer brokers in the broader marketplace, not limited to just those actively involved in market-making activities. By enabling trades between various institutions, these brokers help ensure that even those who are not GEMM members can participate in the gilt market, facilitating more comprehensive trading options and market depth.

The other options do not accurately reflect the nature of inter-dealer brokers. Individuals without authority to trade would not function effectively as brokers, as trading authority is essential to their role. The mention of GEMM members only does not encompass the broader category of non-GEMM members who also engage in gilt transactions. Lastly, government representatives managing debt refers to a different function entirely, as they would be focused on policy and oversight rather than facilitating trading activities.