member firm

Member Firm

A broker-dealer in which at least one of the principal officers is a member of either the NYSE, another major stock exchange, a self-regulatory organization or a clearing house corporation.

Also referred to as "clearing member".

Notes:

One seat (membership) on the NYSE usually costs more than $1 million!

See also: Broker Dealer, Clearing House, Member, NYSE

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Member firm

Used for listed equity securities. Brokerage firm that has at least one membership on a major stock exchange even though, by exchange rules, the membership in the name of an employee and not of the firm itself.

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member firm

A securities firm with officers or partners who are members of an organized securities exchange. National brokerage firms are generally members of a number of organized exchanges. Organized exchanges have established standards of conduct and financial conditions. See also ABC Agreement.