What Does a Board Broker Do?

A board broker streamlines trade in a particular commodity. These financial services specialists work to maintain smooth, functional trading and act to address problems that may arise over the course of the trading day. This work requires a license to work on a commodities exchange, along with experience in trading the assigned commodity. Exchanges may have their own internal requirements for brokers who wish to work in their facilities, such as entry fees, which may be met by brokers or by the employers who act as their sponsors.

An individual acting as a board broker supervises trading activities in a given commodity. This person can take and execute orders from other traders to keep trading lively and maintain liquidity. In tight markets, this can require a careful balancing act to encourage trading and make sure orders are filled. The board broker must behave with care to avoid accusations of market manipulation through price fixing and other activities that create unfair advantages for certain traders.

These brokers are also responsible for providing current price quotes on the commodities they work with. They typically need to provide these at regularly scheduled intervals so market information can be updated in a timely fashion. Other brokers and traders can also contact their offices to get the latest pricing information. Errors can result in serious problems and this information is typically checked before release to avoid accidents like transposed numbers that might cause panic among traders.

This work can be varied and demanding. A board broker typically arrives at work before the markets open to assess performance overnight, catch up on any important breaking news, and prepare for the day. After the markets close, brokers need to stay to finish their work and resolve any problems that may have arisen. The long hours can be challenging, even with support staff to help manage trades and distribute information.

Pressure can also be intense during the trading day for a board broker. Traders rely on board brokers to provide current and accurate information and to keep trades moving smoothly, which can require being able to balance multiple activities at once. In addition to multitasking, they also need to keep up with current trading regulations from the government, the individual commodities exchange, and professional organizations. When policy changes occur, brokers may need to be able to enact them immediately, and they also need to keep up with proposals and trends so they are prepared to implement new trading rules.