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Definition of 'Broker Association'
A permitted association between exchange members who have shared responsibility for the execution of orders placed by their customers. These members thereby gain access to a collective pool of un-transacted orders, and they share the profits and losses associated with trading activities.
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Investopedia explains 'Broker Association'
Broker associations are permitted by regulatory bodies, and allow smaller exchange members to capitalize on economies of scale through cooperation and shared responsibilities.
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