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".

Investopedia Commentary

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

Related Links

Brokers and Online Trading

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

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.