Security and commodity contracts brokerage

NACE v2.1 Code: L66.12

About security and commodity contracts brokerage

NACE code 66.12 covers the industry of security and commodity contracts brokerage, which plays a vital role in the global financial system. This industry facilitates the trading of various financial instruments, including stocks, bonds, derivatives, and commodities, connecting buyers and sellers to enable the efficient flow of capital and risk management. As a key component of the broader financial services sector, the security and commodity contracts brokerage industry is essential for the proper functioning of capital markets and the broader economy.

Production process

The core activities of the security and commodity contracts brokerage industry involve the execution of buy and sell orders on behalf of clients, as well as the provision of related advisory and support services. Brokers utilize advanced trading platforms, data analysis tools, and market research to identify opportunities and execute transactions in a timely and efficient manner. They also provide guidance to clients on investment strategies, risk management, and portfolio diversification.

Production inputs

The security and commodity contracts brokerage industry relies on a range of inputs, including highly skilled financial professionals, such as traders, analysts, and portfolio managers, as well as sophisticated technology infrastructure, including trading platforms, data feeds, and cybersecurity systems. Additionally, brokers require access to financial markets, regulatory compliance frameworks, and a deep understanding of the financial instruments they trade.

Production outputs

The primary outputs of the security and commodity contracts brokerage industry are the successful execution of buy and sell orders for a wide range of financial instruments, including 66.19 Other activities auxiliary to financial services, except insurance and pension funding, 64.20 Activities of holding companies, and 64.30 Trusts, funds and similar financial entities. Brokers also provide valuable market insights, investment recommendations, and risk management strategies to their clients, which can contribute to the overall efficiency and stability of the financial system.

Revisions to 66.12

Classification codes are adjusted frequently. The code may have been revised or replaced between system versions. The table below shows the history (newest to oldest) of the code 66.12. The most recent 1 version of this code (66.12) is in the NACE v2.1 system (this version):

This page shows the most recent version of code 66.12.

Family tree for security and commodity contracts brokerage

    graph LR
    A["<a href='/classifications/nace/v2-1/L'>L: FINANCIAL AND INSURANCE ACTIVITIES</a>"]
A --> B["<a href='/classifications/nace/v2-1/L/66'>66: Activities auxiliary to financial services and insurance activities</a>"]
B --> C["<a href='/classifications/nace/v2-1/L/66/1'>66.1: Activities auxiliary to financial services, except insurance and pension funding</a>"]
C --> D["<a href='/classifications/nace/v2-1/L/66/12'>66.12: Security and commodity contracts brokerage</a>"]

    C --> E["<a href='/classifications/nace/v2-1/L/66/11'>66.11: Administration of financial markets</a>"]
C --> F["<a href='/classifications/nace/v2-1/L/66/19'>66.19: Other activities auxiliary to financial services, except insurance and pension funding</a>"]

    

    %% Color coordination by level

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    classDef level2 color:#000,fill:#e0a458,stroke:#333,stroke-width:1px
    classDef level3 color:#000,fill:#419d78,stroke:#333,stroke-width:1px
    classDef level4 color:#000,fill:#c04abc,stroke:#333,stroke-width:1px
    classDef level5 color:#000,fill:#f1c40f,stroke:#333,stroke-width:1px
    classDef level6 color:#000,fill:#f1c40f,stroke:#333,stroke-width:1px
    classDef highlight color:#000,fill:#fff,stroke:#000,stroke-width:5px



  %% Apply classes
  class A level1
class B level2
class C level3
class D level4
class E level4
class F level4

  class D highlight

  %% class A level1
  %% class B,C level2
  %% class D,E,F,G,H,I level2
  %% class J,K,L,M,N,O,P level3
  %% class D highlight