Member Offices

The NYSE requires that the main office of a member firm be open for business during every NYSE full trading day. As a member’s business grows, they will often wish to open new offices. The classification of the additional offices depends on the type of activity that is conducted.  There are three types of offices that a member may open. They are:

  • An office of supervisory jurisdiction
  • A branch office
  • A satellite office

Office of Supervisory Jurisdiction

A member firm must inform FINRA which offices it has identified as being an office of supervisory jurisdiction, or an OSJ. An OSJ is any office that conducts one or more of the following activities at that location:

  • Has custody of customer funds or securities
  • Has final approval for advertising or sales literature
  • Has final approval of customer accounts
  • Reviews and approves customer orders
  • Executes orders or makes markets in securities
  • Forms or structures offerings
  • Supervises employees at other branch offices

At least one resident principal must mange the OSJ. The resident principal must enforce the policies and procedures of the firm, review all customer activity, and inspect the branch offices within their jurisdiction.

Note: A copy of the firm’s policy and procedures manual as well as a copy of the FINRA manual must be kept in each OSJ. The FINRA manual must be made available to a customer upon request.

Branch Offices

A branch office is any location that is identified to the public as being a place where the member conducts business but does not engage in any of the activities that would require it to be considered an OSJ. Branch offices are inspected by an OSJ. A branch office may operate without a resident principal. A registered representative may act as the branch manager. The supervisory responsibility is with the OSJ.

Satellite Offices

A satellite office is usually a smaller office that does not meet the definition of a branch. A satellite office may not have any signs or advertising. The home office of a registered representative that works out of their house would be considered a satellite office. There are a number of restrictions placed on the business activities of registered representatives that work out of their homes. Some of these restrictions are:

  • The representative may not meet with clients at their home
  • Only one representative may work out of the residence unless the representatives both live there or are related
  • No customer funds or securities may be handled at the residence
  • The representative must be assigned to a branch office for supervision
  • The representative must use the branch office’s address on business cards and stationary
  • All of the representative’s communications with the public are subject to review and supervision by the firm
  • All email sent from the representative must be sent through the firm’s email system
  • The NYSE must approve firm representatives working out of their home offices

Sharing Office Space

Member frms from time to time may elect to share office space. The NYSE has enacted specific rules for firms who share or provide office space to other members. These rules include:

  • The offices must be separated by floor to ceiling walls
  • The offices must receive little customer traffic
  • Customer must be able to clearing identify the different member’s offices
  • Employees of the different members must be easily identifiable
  • The members who share office space must have separate phone numbers
  • The name of each member must appear on the door
  • Direct access to a common hallway, corridor or street must be available
  • NYSE membership signs must be displayed in each office
OPENING A NEW ACCOUNT

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