What is a unique feature of agency brokers in financial markets?

In financial markets, agency brokers are specially designed to facilitate transactions between buyers and sellers without taking on the risk of holding inventory. This means they act as intermediaries, ensuring that trades are executed efficiently and at the best possible prices for their clients. By not holding inventory, agency brokers can provide a more neutral service, focusing purely on the needs of the parties involved in the trade, rather than being influenced by their own trading positions.

This unique feature allows agency brokers to maintain their objectivity in transactions, as they do not have a vested interest in the outcomes of trades beyond receiving a fee for their services. Instead, their role centers around finding the best match for buyers and sellers, ensuring liquidity in the markets they operate in.

The other options describe activities or features that are not characteristic of agency brokers. For instance, investing their own money in trades typically aligns more with proprietary trading firms or other types of brokers who take positions in the market. Similarly, while some brokers might provide risk management services, this is not a defining trait of agency brokers specifically. Lastly, quoting market prices is typically the domain of market makers, rather than agency brokers whose role is to facilitate trades without taking market positions themselves.