NY stock exchange traders floor LC-U9-10548-6

A floor broker also known as a "Pit broker" is an independent member of an exchange who can act as a broker on the trading floor. They would act on behalf of

floor trader A floor trader is a member of a stock or commodities exchange who trades on the floor of that exchange for their own account. The floor trader must abide by trading rules similar to those of the exchange specialists who trade on behalf of others. ...

s or large clients such as financial firms, as an agent on the floor of the exchange. With the advent of

electronic trading Electronic trading, sometimes called e-trading, is the buying and selling of stocks, bonds, foreign currencies, financial derivatives, cryptocurrencies, and other financial instruments online. This is typically done using electronic trading plat ...

in the 1990s and the closing of physical trading floors, this role has largely disappeared. The floor broker used to receive 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 their firm's trading department and then proceeds to the appropriate trading post on the exchange floor. There he would join other brokers and the specialist in the

security Security is protection from, or resilience against, potential harm (or other unwanted coercion). Beneficiaries (technically referents) of security may be persons and social groups, objects and institutions, ecosystems, or any other entity or ...

being bought or sold and executes the trade at the best competitive price available using

open outcry Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of Hand signaling (stock market), hand signals to transfer information pri ...

. 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 repre ...

back at the firm and the trade is printed on the consolidated

ticker tape Ticker tape was the earliest electrical dedicated financial communications medium, transmitting stock price information over electrical telegraph, telegraph lines, in use from around 1870 to 1970. It consisted of a paper strip that ran through ...

which is displayed electronically around the country. A floor broker should not be confused with a

who trades as a principal for his or her own account, rather than as a broker. Commission brokers were employees of a member firm.

References

Financial markets Brokerage firms {{econ-stub