Series 24: Crossing Orders

A crossing order is one in which a broker-dealer receives both an order to buy and an order to sell the same security at the same price. When this occurs, an NYSE member firm is not allowed to immediately “cross the order,” that is, to match and execute the order within the firm. This practice is illegal, because one of the parties is likely to not get the best price. Instead, the broker-dealer must first offer the security to the public (by announcing it on the trading