What does Board Broker System mean?
A system for making markets on commodity exchanges. A Board Broker System works through Board Brokers who are assigned specific commodities and made responsible for maintaining liquidity for them. One commodity is assigned to only one Board Broker. However one Board Broker may have more than one commodity.
Futures Knowledge Explains Board Broker System
A board broker system in a commodity exchange is similar to the systems used in stock markets, such as the NASDAQ and NYSE. A board broker system uses Board Brokers who perform role similar to that of specialists in NYSE or market makers in NASDAQ or OTC markets. With the advent of computerised trading, the Board Broker System has been virtually replaced by computer software. Trades are executed automatically through computer networks without Board Brokers, specialists or market makers.