A wire house is a company that organizes its many branches and provides them with the same level of access to information through high-speed communication. This term originated from large brokerage firms that were linked in a way that made the same information available for every facet of the business. Now, any firm that has branches where each branch can quickly retrieve information from a common source can be referred to as a wire house.
When you have a bank account, you can usually use any branch of your bank to make deposits, withdrawals, or anything else. The reason you are able to do this is because all of your bank branches, through computer communication, are essentially “wired” together and have access to the same information through high-speed communication. This can also be called a wire house.
In the example above, the wire house does not refer to the branch itself, but to the company (house), which organizes its many branches while providing them with the same level of access to information. Those old enough to remember the pre-IT age of banking realize that the term is still relatively new. Before the ability to communicate via computer from bank to bank, no company could be called a wire house. If you want instant access to your funds, you would visit the bank that used to be your home branch, as it had direct information about your bank balance.
When computers were first developed, they were huge machines not meant for home use. High-speed connections between different parts of a business or different branches of the same bank were common in businesses long before they were accessible for home use. Only the largest companies could afford the expense of being able to deliver communications from one office to another, and often these companies were brokerage firms. It then became common to refer to a large brokerage firm as a wire house, as they were linked in a way that made the same information available for every facet of the business.
The name stuck, although we now see examples of “hardwired” companies in a variety of settings and it’s as common as air. You can visit or call a stock broker at any location and get up-to-date and up-to-date information on stock prices and market declines. You can also direct a broker to buy or sell stocks, which can often be done right away, and you can also get this information online.
The flow of information is not only between branches of a typical wire manufacturing company, but also comes from primary sources, such as different stock markets. High-speed communication also allows several businesses to get in touch with each other, such as two banks communicating about withdrawals, writing checks, or a bank communicating with a grocery store when using the ATM to make purchases . Any firm that has branches where each branch is able to quickly retrieve information from a common source can technically be referred to as a wire house, although the term has been more applied to brokerage firms.
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