Legal Definition of Floor Broker

What is Legal Definition of Floor Broker?

Legal Definition of Floor Broker meaning 22) Floor broker (A) In general The term “floor broker” means any person— (i)who, in or surrounding any pit, ring, post, or other place provided by a contract market for the meeting of persons similarly engaged, shall purchase or sell for any other person— (I)any commodity for future delivery, security futures product, or swap; or (II)any commodity option authorized under section 6c of this title; or (ii)who is registered with the Commission as a floor broker. (B) Further definition The Commission, by rule or regulation, may include within, or exclude from, the term “floor broker” any person in or surrounding any pit, ring, post, or other place provided by a contract market for the meeting of persons similarly engaged who trades for any other person if the Commission determines that the rule or regulation will effectuate the purposes of this chapter.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary

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