We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is a Wire Room?

Mary McMahon
Updated: May 16, 2024

A wire room is a room which serves as a hub for sending and transmitting customer orders, notifications about trades, and funds. Banks have wire rooms for handling wire transfers, and these rooms are also found in brokerage houses. Depending on the size of the institution, the room may be staffed by full time staffers who are dedicated to wire duties specifically, or staffers may rotate in and out of the wire room and share responsibilities. In some cases, it may be handled at a desk, rather than a literal room.

Much of the work in the wire room is supported by computer systems. These systems need to be secured because they handle personal financial data, and interference with the system could prove costly. For example, if a hacker changed the terms of orders being sent in and out of the wire room, the wrong orders would be executed on behalf of customers.

In a brokerage house, when a customer places a buy or sell order, it goes through the wire room so that it can be relayed to the trading floor, with a representative of the brokerage house executing the trade as directed. Likewise, executed trades are reported back to the wire room so that they can be logged appropriately. The wire room staff are responsible for confirming that the orders they wire back and forth are correct, and for verifying information which passes through their hands. Usually printouts of activities are generated to create a record which can be used later.

In a bank, the key function of the wire room is to handle wire transfers of funds between accounts. Incoming and outgoing wires are both run through the room. Several companies manufacture standard equipment and software suites which can be used to manage wire transfers, and these packaged products are popular with smaller banks. Larger institutions generally prefer to install custom systems which will allow for greater flexibility and functionality.

Staff who work in a wire room may need some technical training, or they may learn their skills on the job. Because they are trusted with sensitive financial material, they may be required to pass background checks to confirm that they do not have any events in their history which could conflict with their ability to work effectively in the wire room. For example, someone with a history of convictions for financial fraud is probably not the best choice of employee for this type of work.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments
By David09 — On Aug 09, 2011

@allenJo - When I think of the wire room the words that come to my mind are “war room” and I imagine sinister computers like HAL in Space Odyssey or the “Whopper” in War Games which have the power to control important systems that run our world.

Think of how important these systems are. I imagine that a cyber attack into these units could cause a complete collapse of the stock market. I would imagine that there would have to be multiple, redundant systems in place to handle this possibility.

By allenJo — On Aug 08, 2011

I still can’t grasp the fact that all these traders on the trading floor are actually executing trades on behalf of thousands or even millions of traders.

I understand the concept of computerized trading, the idea that all of my trades can get sent to a computer system in a wire room or wherever.

But the thought of all of those orders going to “live” people down on the floor baffles me. I see pictures on television of guys with pencils and pads and yelling out orders. How anything gets done on the stock exchange floor continues to baffle me; but it does, and for that at least I’m grateful.

Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.