Dmm Vs Floor Broker

Floor brokers execute trades on behalf of institutional and high net worth clients.

Dmm vs floor broker.

The floor broker electronically enters an order before 4 00 p m. They are independent members of the exchanges on which they trade and they work from physical trading floors. With the floor closure and no manual dmm or floor broker processes nyse is using an electronic facilitated auction which also uses price range boundaries. In contrast nyse confers special advantages to its single dmm and floor brokers.

But the order is not received by the dmm until after 4 00 p m. However our understanding is that there are now more market and limit on close orders left unfilled which get canceled back to the buyer or seller who is typically an institutional customer. This can include more than one. That puts other participants at a disadvantage making them less inclined to compete for queue priority which in turn can actually work against investors.

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