A floor broker is an independent member of an
exchange
Exchange may refer to:
Physics
*Gas exchange is the movement of oxygen and carbon dioxide molecules from a region of higher concentration to a region of lower concentration. Places United States
* Exchange, Indiana, an unincorporated community
* ...
who can act as a broker for other members who become overloaded with orders, as an
agent on the floor of the exchange. The floor broker receives an order via
Teletype
A teleprinter (teletypewriter, teletype or TTY) is an electromechanical device that can be used to send and receive typed messages through various communications channels, in both point-to-point and point-to-multipoint configurations. Init ...
machine from his firm's trading department and then proceeds to the appropriate trading post on the exchange floor. There he joins other brokers and the
specialist in the
security" \n\n\nsecurity.txt is a proposed standard for websites' security information that is meant to allow security researchers to easily report security vulnerabilities. The standard prescribes a text file called \"security.txt\" in the well known locat ...
being bought or sold and executes the trade at the best competitive price available. On completion of the transaction the customer is notified through his
registered representative
A registered representative, also called a general securities representative, a stockbroker, or an account executive, is an individual who is licensed to sell securities and has the legal power of an agent in the United States.
Registered repr ...
back at the firm and the trade is printed on the consolidated
ticker tape which is displayed electronically around the country. A floor broker should not be confused with a
floor trader who trades as a
principal for his or her own account, rather than as a broker.
Commission brokers are employees of a member firm.
References
Financial markets
Brokerage firms
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