member firm

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brokerage firm that has at least one membership on a major stock exchange, even though, by exchange rules, the membership is in the name of an employee and not of the firm itself. Such a firm enjoys the rights and privileges of membership, such as voting on exchange policy, together with the obligations of membership, such as the commitment to settle disputes with customers through exchange arbitration procedures.

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A securities brokerage firm organized as a partnership and having at least one general partner who is a member of the New York Stock Exchange (now NYSE Euronext). See member corporation.

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".

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

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