Nyse Floor Broker Definition

A floor trader is an exchange member who executes transactions from the floor of the exchange exclusively for their own account.

Nyse floor broker definition. Nyse floor brokers operate on an agency basis on behalf of institutional investors and broker dealers including market participants representing retail investor interest. Floor brokers are physically present on the trading floor and are active participants during nyse s opening and closing auctions as well as throughout the trading day. Trading floors are found in the buildings of various exchanges such as the new york stock exchange and the chicago board of trade. In 1986 as many as 420 floor brokers sold approximately 250 million shares of stock every trading day.

Brokers on the nyse trading floor combine flexibility judgment automation and anonymity with state of the art technology and order management tools. With the heyday of the human floor trader now ancient. A floor broker also known as a pit broker is an independent member of an exchange who is authorized to execute trades on the exchange floor. Traditionally floor brokers at the nyse had substantial discretion and flexibility when representing customer orders manually on the trading floor.

Companies listed on certain exchanges will interview employees of the specialist firms. Trading floor brokers are positioned at the point of sale during openings closings and unique intra day occurrences to execute trades. The storied new york stock exchange in lower manhattan is a symbol of american capitalism. The new york stock exchange s fabled floor traders fearing steeper job losses in their already diminished ranks are an endangered species.

Specialists started on the floor of the new york stock exchange in 1872. They also have the ability to participate electronically and are able to access all markets and trade multiple asset classes to provide clients with a complete trading picture. The firms that hire the specialists to represent companies listed on certain exchanges.