nonmember firm

Nonmember firm

Used for listed equity securities. Brokerage firm that is not a member of an organized exchange (NYSE). Such firms execute trades either through member firms, or on regional exchanges where they are members, or in the third market.

Nonmember Firm

A firm that does not have any employees who are allowed to trade on the floor of an exchange. To become a member, one needs to purchase a membership or a seat on the exchange, which can be very expensive. Furthermore, there are usually a set number of memberships to an exchange; for example, on the New York Stock Exchange, there are 1,366 seats. As a result, nonmember firms must work with and through member firms in order to gain access to the floor and execute trades.

nonmember firm

A firm that is not a member of an organized securities exchange. Nonmember firms must work through member firms to have their orders executed on the exchange floor.
References in periodicals archive ?
One or more major deficiencies were found in 39% of the 400 audits examined in the study Firms that are members of the EBPAQC performed higher-quality work than nonmember firms, the DOL report states.
Nonmember firms that advertise positions get a similar letter telling them how much money they could have saved on their job posting had they been a member.
The 2,000 firms polled were equally divided between PCPS member firms and nonmember firms and were scattered across the country.