BROWSE

Off-Floor Order

What is 'Off-Floor Order'

An investor's directive to buy or sell securities when that directive is given to a broker, not to a trader working on the trading floor of an exchange. Exchange rules require off-floor orders, which are made on behalf of customers, to be executed before on-floor orders, which are made for exchange members'own accounts. In some cases, an off-floor order can be reclassified as an on-floor order where a conflict of interest might exist.

Explaining 'Off-Floor Order'

To be a floor trader, one must be associated with a member firm. Member firms pay hefty fees for the privilege of trading on the floor.


Further Reading


Market vs. limit orders: The SuperDOT evidence on order submission strategy
www.jstor.org [PDF]
… That is, off-floor traders cannot profitably operate as quasi-dealers in competition with the specialist and other floor traders … Expired orders are handled in a similar fashion. An expired buy order is assumed filled at the closing ask price; an expired sell order at the closing bid …

The trades of NYSE floor brokersThe trades of NYSE floor brokers
www.sciencedirect.com [PDF]
… That is, off-floor traders cannot profitably operate as quasi-dealers in competition with the specialist and other floor traders … Expired orders are handled in a similar fashion. An expired buy order is assumed filled at the closing ask price; an expired sell order at the closing bid …

Market making, the tick size, and payment-for-order flow: theory and evidenceMarket making, the tick size, and payment-for-order flow: theory and evidence
www.jstor.org [PDF]
… That is, off-floor traders cannot profitably operate as quasi-dealers in competition with the specialist and other floor traders … Expired orders are handled in a similar fashion. An expired buy order is assumed filled at the closing ask price; an expired sell order at the closing bid …

Order dynamics: Recent evidence from the NYSEOrder dynamics: Recent evidence from the NYSE
www.sciencedirect.com [PDF]
… That is, off-floor traders cannot profitably operate as quasi-dealers in competition with the specialist and other floor traders … Expired orders are handled in a similar fashion. An expired buy order is assumed filled at the closing ask price; an expired sell order at the closing bid …

NYSE order flow, spreads, and informationNYSE order flow, spreads, and information
www.sciencedirect.com [PDF]
… That is, off-floor traders cannot profitably operate as quasi-dealers in competition with the specialist and other floor traders … Expired orders are handled in a similar fashion. An expired buy order is assumed filled at the closing ask price; an expired sell order at the closing bid …

The role of floor brokers in the supply of liquidity: An empirical analysisThe role of floor brokers in the supply of liquidity: An empirical analysis
onlinelibrary.wiley.com [PDF]
… That is, off-floor traders cannot profitably operate as quasi-dealers in competition with the specialist and other floor traders … Expired orders are handled in a similar fashion. An expired buy order is assumed filled at the closing ask price; an expired sell order at the closing bid …

Financial innovations and the organisation of stock market tradingFinancial innovations and the organisation of stock market trading
ojs.uniroma1.it [PDF]
… That is, off-floor traders cannot profitably operate as quasi-dealers in competition with the specialist and other floor traders … Expired orders are handled in a similar fashion. An expired buy order is assumed filled at the closing ask price; an expired sell order at the closing bid …

Order flow, dealer profitability, and price formationOrder flow, dealer profitability, and price formation
www.sciencedirect.com [PDF]
… That is, off-floor traders cannot profitably operate as quasi-dealers in competition with the specialist and other floor traders … Expired orders are handled in a similar fashion. An expired buy order is assumed filled at the closing ask price; an expired sell order at the closing bid …

Constructing a market, performing theory: The historical sociology of a financial derivatives exchangeConstructing a market, performing theory: The historical sociology of a financial derivatives exchange
www.journals.uchicago.edu [PDF]
… That is, off-floor traders cannot profitably operate as quasi-dealers in competition with the specialist and other floor traders … Expired orders are handled in a similar fashion. An expired buy order is assumed filled at the closing ask price; an expired sell order at the closing bid …

Should securities markets be transparent?Should securities markets be transparent?
www.sciencedirect.com [PDF]
… That is, off-floor traders cannot profitably operate as quasi-dealers in competition with the specialist and other floor traders … Expired orders are handled in a similar fashion. An expired buy order is assumed filled at the closing ask price; an expired sell order at the closing bid …


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