Broker Association

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.

BREAKING DOWN '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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