Posted in Finance, Accounting and Economics Terms, Total Reads: 338
Definition: Upstairs Market
Upstairs market is a network which helps brokerage firms and investors to communicate amongst each other in an exchange market. It consists of telephones and computers with display systems to facilitate for the their interaction. It is basically used for program trades and block trades.
Using upstairs market, sale of shares can be done after discussions between the brokerage and the investor.
It is similar to a stock exchange as stock tradings, securities tradings etc happen between the dealer and the broker. The buyers and the sellers (broker-dealer) are involved in the transaction of stocks, securities etc. These tradings take place within the firm.
Some exchanges across the world have also prohibited the use of upstairs market as a method of doing trading.