Definition of registered competitive trader

one of a group of New York Stock Exchange members who buy and sell for their own accounts. Because these members pay no commissions, they are able to profit on small changes in market prices and thus tend to trade actively in stocks doing a high volume. Like specialists, registered competitive traders must abide by exchange rules, including a requirement that 75% of their trades be stabilizing. This means they cannot sell unless the last trading price on a stock was up, or buy unless the last trading price was down. Orders from the general public take precedence over those of registered competitive traders, which account for less than 1% of volume. Also called floor trader or competitive trader.