What it is:
In a brokerage firm, a wire room receives customer orders from brokers, sends the orders to the exchanges, and sends back notices of execution.
How it works/Example:
For instance, let's say John Doe is aat Brokerage XYZ. His client, Sally Jones, calls him and tells him to buy 500 of Company ABC for her account. John takes the order and sends it to Brokerage XYZ's wire room, which relays the order to the brokerage firm's specialist on the floor of the New York Exchange. The specialist fills the order and relays the information back to the wire room. The wire room relays that to John Doe, who calls Sally and says the order is complete.
Why it matters:
Wire rooms are one of the many little-noticed parts of the financial world. Though they receive little glory, they handle tremendous amounts of crucial work.