What does Omnibus Account mean?
An Omnibus account is a stock holding account generally held by multiple brokers or merchants. The broker or merchant holds the stock for multiple clients and transact on their holdings, thereby making it easier for them to manage accounts for clients. The identities of the clients or individual account holders are hidden in such a process.
Futures Knowledge Explains Omnibus Account
Such an account is also known as an “asset management” or a “cash management” account.
For example, broker ABC holds an omnibus account by which he manages the stock holding accounts for 15 clients. It becomes easier for the broker to transact on their behalf as he can do the same through just one account.