Business and Personal Finance Dictionary

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• CROSS TRADE
  
  Offsetting match by a broker of the buy order of one customer against the sell order of another, or a match of a trade made by a broker with his customer, a practice that is permissible only when executed in accordance with the Commodity Exchange Act, Commodity Futures Trading Commission regulations, and rules of the contract market. Neither NYMEX Division nor COMEX Division members are permitted to take the opposite side of a customer’s order, except, under certain circum-stances, for trades involving long-dated (nine months or more forward) COMEX Division copper futures.
  
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