Chapter 04 · Section 4.1

Dealer vs. Broker

In which system are the functions of Dealer and Broker totally separate?

• a) In the commodity/futures system (as used on CME).
  No. Floor brokers may also trade for their own accounts on the CME. Floor traders (locals) may also act on behalf of others.
  b) In the Specialist System (as used on PHLX, AMEX).
  c) In the Competing Market Maker System (as used on CBOE, EOE).

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