In 1683 the Navy Board had again to be reminded that this distinction pendant was to be used, but by 1692 it had become so popular that "some Commanders of their Mats ships do take the liberty to wear distinction pendants without order for the same[289]," and they were strictly forbidden to do so.

In 1695 the use of this pendant was extended to the senior captain of ships cruising in the "Soundings" at the entrance to the Channel.

In the meantime another form of distinction pendant was introduced, in which the St George at the head was replaced by the Union. This form was for use abroad, in analogy with the practice by which Admirals sent abroad were ordered to wear the Union flag when out of the Channel, instead of their squadronal flag. As early as 1687 Pepys had noted the use abroad of a red ensign with the Union instead of the St George in its canton. At this date the St George's flag was still being flown by Genoese ships, and it was doubtless the desire to avoid any misunderstandings on this account that led to the disuse, before 1707, of the St George's flag by English men-of-war outside home waters. For some unexplained reason this form of ensign had become known as the Budgee flag, and this name was later transferred to the Union Broad Pendant, which became known as the Budgee Pendant[290] and was no doubt the parent of the modern word "Burgee."

The first instance of the use of the Budgee Pendant occurs in December, 1690, when Captain Aylmer, appointed Commander-in-Chief of the squadron intended for the Mediterranean, was ordered to be supplied with a distinction pendant "made with ye Union Crosses in place where other Distinction Pendants have only St Georges Crosse[291]."

Three years later the Earl of Danby, Captain of the 'Royal William' in the fleet under the three joint-admirals, was ordered to wear this same pendant and given precedence next to the Flag Officers[292], and in 1697 Captain J. Norris was appointed Commander-in-Chief of a squadron bound to Newfoundland and ordered, when out of the Channel, to "wear such a swallow tail pendant as Mr Aylmer had when he commanded a squadron in the streights, and which was afterwards worne by the Earle of Danby[293]."

All these officers, whether commanding-in-chief like Aylmer or in subordinate command like Danby, were serving in a position afterwards known as that of "Commodore." This title, derived from the Dutch "Commandeur" (originally the senior officer of a merchant fleet) which had been adopted in the Dutch navy from their merchant service at the end of the sixteenth century, was introduced into the English navy about 1695, no doubt as a consequence of the close connection between the two navies under "Dutch William." It was, however, not yet officially recognised; in their official orders the officers were simply "Captain" or "Captain and Commander in chief." They received a special allowance, usually 10s. a day, while so acting. Later on the importance of some of these positions was enhanced by the introduction, in certain cases, of a second captain into the Commodore's ship. This practice, which was in vogue at least as early as 1720, does not seem at first to have entailed any difference in flag or pay, but it made an important difference in prize money, for those Commodores who had Captains under them were treated in this respect as though they were flag officers.

In 1731 the Admiralty attempted to establish the rank of Commodore by providing for three posts of this rank in the Regulations and Instructions for his Majesty's service at sea, then for the first time gathered together in one book, but the Privy Council struck out all the articles relating to this proposal before recommending the book for the king's approval. The title was, however, formally recognised in 1734 by an Order in Council which, in laying down the relative precedence of Sea and Land Officers, provided "That Commodores with Broad Pendants have the same respects as Brigadiers-General," but the rank remains to this day a "temporary" one, carrying special pay and privileges but giving the captain holding it no authority over captains senior to him on the list.

Regulations governing the rank first appeared in the King's Regulations of 1806. The Broad Pendant was to be of the squadronal colour and was to have the further distinction of a white ball if the Commodore had no second captain in his ship.

There shall be a temporary rank of Commodore which shall be distinguished by a Broad Pendant, Red, White or Blue....