Trading rooms first appeared among giant investment bank brokers, such as Morgan Stanley since 1971, with the founding of the Nasdaq Stock Exchange, which required a stock trading desk at their headquarters, and the growth of the secondary market for federal debt products, which required a bond trading desk.
The spread of trading rooms accelerated in Europe between 1982 and 1987 due to two major reforms of the money market system, and those reforms were implemented decisively in the United Kingdom and France at the same time.
Trading rooms are made from offices specialized in market segments (stocks, short-term, long-term, options contracts), which share a large public space.Trading rooms serve two types of businesses:
Trading and arbitrage model, which is the business of investment banks and brokers, often referred to as the sell side.
Portfolio management, which is the business of asset management companies and investors, often referred to as the buy side.
Brokers and investment banks set up their trading rooms first and then were followed by giant asset management companies.
The type of business determines the distinct characteristics of each system and the software environment within each trading room.