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Direct dealing is a a trading reciprocity-based system. Direct dealing includes the process of a market maker expecting the bank that is making the call to reciprocate regarding the setting of a price when needed.

Source(s):

http://www.forex-trading-gurus.com/forex-trading- systems/forex-trading-with-direct-dealing.html

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When the broker is cut out of the picutres. The dealers deal with each other directly

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This is an approach whereby dealers contact each other to transact without a broker.

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Direct dealing is an aggressive approach where in banks contact each other outside the brokers market..

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An approach whereby dealers contact each other to transact without a broker.

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A system that allows a client to trade directly with another client, a market maker on Nasdaq, or a specialist on the floor of an exchange without broker interference.

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What Does Direct Access Trading - DAT Mean?
A system that allows a client to trade directly with another client, a market maker on Nasdaq, or a specialist on the floor of an exchange without broker interference.
Investopedia explains Direct Access Trading - DAT
DAT is the preferred trading system for day traders, where success is dependent upon speed of execution. For the average investor, DAT is not necessary.

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An approach whereby dealers contact each other to transact without a broker.