What is the primary purpose of an Agency Cross Trade?

The primary purpose of an Agency Cross Trade is to facilitate trades between client accounts. In this arrangement, an investment adviser, acting as an agent, connects buyers and sellers among its own clients. This method allows clients to trade with one another rather than executing trades on the open market, potentially leading to benefits such as more favorable prices and reduced trading costs due to the elimination of market impact.

Agency cross trades can also help clients maintain a level of privacy in their trading activities, as their transactions are conducted internally rather than on a public exchange. It's essential for advisers to ensure that they adhere to specific regulatory requirements and considerations when engaging in such trades to avoid conflicts of interest.

The other options may describe various aspects of trading or brokerage operations but do not specifically capture the essence of Agency Cross Trades in terms of their primary function and purpose.