The role of IP brokers in the IPv4 shortage era

• Brokers connect organisations seeking IPv4 space with legitimate holders, helping them pass registry checks and avoid fraud in a complex, regulated market.

• Registries oversee accuracy and policy compliance, not price; broker programmes and due-diligence guidance have evolved as transfer volumes and risks have grown.

The demand for IPv4 addresses has outstripped supply. Regional Internet Registries (RIRs) remain the space and waiting lists, when enterprises, ISPs, cloud providers and content networks need IPv4 to interoperate with customers and legacy systems. The result is a secondary market in which ownership of address blocks is transferred between organisations under registry rules.

In this market, IP brokers—sometimes called “facilitators”—play a visible role. They help buyers find space, help sellers prepare documentation, and keep both parties aligned with regional policies. Yet they operate in an environment where governance is deliberately separate from commerce: RIRs validate who holds what and whether policy conditions are met; they do not set prices or negotiate trades. Understanding what brokers do (and do not do) is essential for any organisation that must acquire, dispose of, or reorganise IPv4 space during the long transition to IPv6.

This article explains how the brokered market emerged, how it is governed, where brokers fit, the risks and due-diligence steps to consider, and what to expect region-by-region. It draws on authoritative material from RIRs and technical bodies.

From exhaustion to markets: How we got here  

The structural shortage in IPv4 is no longer news—but the timeline matters. On 3 February 2011, the Internet Assigned Numbers Authority (IANA) allocated the final /8 blocks to the RIRs, the event widely referred to as global IPv4 “run-out”. Over the following years, each RIR reached its own depletion point and introduced rationing or waiting lists. That distinction—governance by the registries, commerce by private parties—defines the operating space for brokers.

What brokers actually do  

Matchmaking and market navigation  

In a brokered transaction, the broker’s first job is to help a buyer locate address space of a suitable size, region and transfer status (for example, space eligible for inter-RIR transfer) and help the seller validate that it is legitimately held and free from encumbrances. Because RIR policies differ, the broker also aligns expectations around which registry (or registries) needs to approve the transfer.

APNIC’s overview of the transfer environment is explicit: transfers occur only with the consent of both parties, on commercial terms, and RIRs do not set those terms.  Brokers therefore add market intelligence—availability, typical price ranges, and timelines—while keeping both sides aligned to registry documentation, such as needs-based justification in some regions.

Compliance shepherding  

RIRs require specific evidence to approve a transfer. In the ARIN region, for example, transfer requests are filed in ARIN Online under NRPM rules, and (as of the current schedule) incur a non-refundable processing fee. Qualified facilitators (ARIN’s term for approved brokers) are reviewed by ARIN staff and “can assist client organizations to complete transfers in accordance with ARIN policy.” 

In RIPE NCC’s service region, members transferring resources must ensure the registry can verify holdership and legitimacy; RIPE NCC’s legacy services pages describe a due-diligence process and the supporting documentation that may be requested. Brokers often help collate this evidence and prepare contacts for registry review.

Risk screening and fraud prevention  

Because IPv4 assets can be valuable, fraud and hijacking risks exist. RIPE NCC states that it is committed to “maintaining our high standards of due diligence and protecting holders' resources” and will revert unauthorised changes and report illegal activities. APNIC’s guidance distinguishes between “squatting” on unallocated space and “hijacking” of resources already allocated to another party, each with operational and legal implications.  A 2020 APNIC Blog article notes reported attempts to exploit the transfer market by hijacking dormant address space, which is a concern for operators.

Experienced brokers should help buyers avoid tainted or disputed space by checking route histories and registry records and by anticipating registry questions. That said, the registries ultimately validate entries in their databases; brokers cannot overrule an RIR decision.

The buyer’s journey: A step-by-step view

• Define operational need. Determine the block size and timeline. Where needs-based justification applies (e.g., in ARIN), compile utilisation data and forecasts aligned to policy requirements.

• Choose a region (or inter-RIR path). The present holder’s RIR and the buyer’s RIR must both allow the transfer. RIPE NCC’s inter-RIR pages explain the need to satisfy both sides’ policies.

• Select a broker/facilitator (optional but common). In ARIN’s region, organisations can select a Qualified Facilitator; ARIN’s list explains its scope and review process.

• Pre-check the resource. Verify holdership (whois/RDAP), RPKI status, routing history and any dispute flags. APNIC’s guidance on hijacking and squatting helps structure these checks.

• Agree commercial terms privately. Price and payment terms are negotiated between the parties (often via the broker). APNIC notes that transfers “may be on commercial terms.” 

• Submit transfer requests to the RIR(s). Use ARIN Online, RIPE NCC’s ticketing, or APNIC’s processes as applicable. ARIN explains the documentation and steps on its Transfers page.

• Wait for evaluation, respond to questions. Registries may request extra documents to prove holdership, corporate continuity or legitimate acquisition.

• Registry updates the database. Once approved, registry records (and ideally RPKI ROAs and route objects) are updated.

• Post-transfer hygiene. Update IRR/RPKI, adjust ROAs, and monitor routing for anomalies. Consider a broker or managed service for BGP monitoring if staff capacity is limited.

The seller’s perspective: unlocking value while avoiding pitfalls  

Holders of under-utilised blocks—especially legacy /16s, /17s and /18s—may seek to right-size allocations or monetise dormant assets. A reputable broker adds value by:

• Assessing block quality (clean routing history, reputation) and advising on de-aggregation strategies acceptable to the market.

• Preparing chain-of-custody evidence to satisfy due diligence (e.g., corporate continuity, past mergers, original allocation letters).

• Steering sellers away from risky buyers and questionable intermediaries, consistent with RIPE NCC’s public stance against hijacking and its readiness to act on irregularities.

Because brokers do not control registry approvals, sellers should not rely on broker assurances alone. Verify what your registry will require before committing to a sale.

Risk landscape: hijacking, fraud, and reputational harm  

• The secondary market has attracted opportunists. APNIC’s research has discussed misuse and abuse of the transfer system, such as attempts to take over dormant space for spamming or reselling.

• RIPE NCC has documented investigations into attempts to gain control of members’ resources and publicised process updates to address such threats.

From a buyer’s viewpoint, acquiring tainted space can create months of deliverability or routing issues. From a seller’s viewpoint, failing to control registry credentials and company records can enable impersonation or unauthorised changes. Robust, documented processes and the use of RPKI, IRR hygiene, and registry multifactor authentication are essential.

How to select a reputable broker (and verify claims)  

• Check registry relationships. In ARIN, confirm whether a broker is listed as a Qualified Facilitator and understand what that does—and does not—mean. These organisations are reviewed by ARIN staff, but ARIN does not endorse commercial terms, and you must still perform due diligence.

• Ask for process detail. A serious broker can explain required documents for your region(s) and provide sample checklists aligned with ARIN’s Transfers guidance or RIPE NCC’s legacy due-diligence requirements.

• The demand transparency. Request disclosure of any conflicts (e.g., acting for both sides), escrow arrangements, and how they handle RPKI/IRR updates post-transfer.

• Insist on technical vetting. Your broker should surface routing history, abuse reports, and RPKI/IRR status and help remediate issues before the registry submission.

• Avoid pressure tactics. Scarcity can invite urgency. Remember that registry approval—not broker promises—finalises a transfer. ARIN’s fee notice is a helpful reminder: paying a fee “does not guarantee approval.” 

Governance versus commerce: keeping roles clean  

One recurring misconception is that brokers can “get transfers approved.” In reality, approval follows policy. As the APNIC Blog puts it, the primary condition is mutual consent, but RIRs take no part in the transaction beyond policy checks, and commercial terms are private.

This clear delineation preserves the integrity of the public number registry system while allowing market mechanisms to recycle address space where needed.

Costs, timelines and operational realities  

While RIR fees are publicly documented (e.g., ARIN’s processing fee), total transaction costs depend on broker fees, legal review, escrow, and internal staff time. Timelines are shaped by registry response windows, the completeness of documentation, and inter-RIR complexity. Good brokers accelerate preparation, not the registry’s due-diligence clock.

Some organisations look to waiting lists (where available) as an alternative to the market; others re-architect with NAT, CGNAT, or accelerate IPv6 to reduce v4 demand. The ultimate solution to IPv4 exhaustion is, of course, the complete transition of the Internet to IPv6.

Security and integrity: beyond the purchase order  

Even once the registry updates the records, the operational work isn’t done. Consider:

• RPKI. Issue or update ROAs for your new prefixes and validate that upstreams accept them.

• IRR hygiene. Ensure route(6) objects reflect the new origin AS and that stale entries are removed.

• BGP monitoring. Watch for route leaks or hijacks, particularly during the first weeks after activation. Research highlighted that account weaknesses can place vast swathes of addresses at risk if not properly secured.

• Reputation remediation. If addresses had prior abuse history, prepare for remediation with major email providers and security feeds.

A broker with post-transfer services can help, but the network operator ultimately owns the outcome.

Strategic outlook: brokers in a dual-stack world  

In this dual-stack reality, brokers provide a bridge that enables organisations to keep moving while planning IPv6 transitions.

However, the market are likely to demonstrated a better-governed, registry-aware facilitators and more rigorous KYC/AML-like verification as documented cases of fraud and registry manipulation continue to come to light. RIPE NCC’s Registry Investigation Report has underscores the importance of transparency and ongoing vigilance.

IPv4 brokers exist because the market exists. They do not create scarcity, set policy, or guarantee outcomes. Yet good brokers can reduce friction, prevent costly mistakes, and keep both sides aligned with the rules that protect the global number registry system. As long as organisations still need IPv4 to reach users and partners, brokers will sit at the intersection of technical governance and commercial negotiation, playing a useful—if carefully bounded—role in the shortage era.

FAQs  

1) Are IP brokers endorsed by the registries?

No. Registries maintain neutrality and do not endorse commercial intermediaries. ARIN explicitly says its lists are not endorsements and recommends customers conduct their own due diligence. APNIC similarly notes that any list is for information only and that it does not sponsor, endorse, or approve such services.

2) Do brokers influence transfer approvals?

No. Registries approve transfers only when policy criteria are met. Brokers can help prepare documentation and guide the process, but approval rests with the relevant RIR(s), which may request additional evidence and can decline requests. See ARIN’s Transfer guidance and RIPE NCC’s due-diligence material.

3) What are the main risks when buying IPv4 space?

Key risks include acquiring hijacked or disputed space, inheriting reputation problems, and mis-sequencing inter-RIR steps. APNIC has documented misuse attempts involving dormant space, and RIPE NCC actively investigates irregularities and can deregister resources in serious cases.

4) Why do some regions list facilitators while others don’t?

Approaches vary. ARIN retired STLS and now operates a Qualified Facilitator programme to review intermediaries; RIPE NCC removed its Recognised Brokers List in 2023 to avoid implied endorsement. Both preserve policy neutrality while acknowledging the market’s existence.