Meaning of a phrase: principal to principal

[Fulio Pen]

Hello,

I've read the following two sentences in an article:

Customer and Participating Banks to contract as principal to
principal. All trades in investments and other financial products
through or by means of ‘XXX’’s services or systems shall be effected
by the Customer directly with a Participating Bank on a principal to
principal basis

but don't understand the meaning of 'principal to principal', nor did
I find it in an online dictionary. I hope someone in this group can
explain to me. Thanks for your expertise and help.

Fulio Pen

[tinwhistler]

In Agency Law I learned about masters and servants, principals and
agents or representatives. In the financial field, principal to
principal means that the persons ultimately obligated by contractual
commitments are the signatories to the contract, whether or not they
directly negotiated the drafting of terms.
--
Aloha ~~~ Ozzie Maland ~~~ San Diego

[Fulio Pen]

Thanks a lot for your help.

Fulio Pen