Member Firm

DEFINITION of 'Member Firm'

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

Also referred to as "clearing member".

BREAKING DOWN 'Member Firm'

One seat (membership) on the NYSE usually costs more than $1 million. Owning a seat on the NYSE allows a person to trade on the floor of the exchange, either as an agent for someone else or for his or her own personal account.