Application for Membership

Individual | Organization

To Register an Individual

Persons applying for membership must be at least twenty-one (21) years of age and be associated with a duly qualified and registered member organization.

Organization Application Checklist

Financial Responsibility:

Applicants must demonstrate their knowledge of the rules and regulations pertaining to the computation of net capital, have a general understanding of securities accounting and reporting requirements for that particular segment of the securities business that they intend to conduct.

Training/Experience:

Prior experience or employment in the securities industry, or the completion of an orientation program on the trading floors of the PHLX may be required.

Other measures of competency such as oral and/or written examinations may be required by the Admissions, Floor Procedures, Options or the Foreign Currency Options Committees respecting consideration of the applicants qualifications .

Each prospective member must file with the Office of Membership Services:

1. An "Individual Membership Application"
2. A completed Form U-4
3. Check payable to the PHLX in the amount of $350.00 as a filing fee.
4. Any other documents requested by the Exchange relative to this application.
5. Additionally, if the applicant is registering as an on-floor:

 

• Floor Broker, include the following:
  PHLX member badge request
• Market Maker, include the following:
  Participant Exchange Certificate (PEC)
  Clearing Arrangement Certificate
  PHLX member badge request
• Specialist, include the following:
  Participant Exchange Certificate (PEC)
  Clearing Arrangement Certificate
  PHLX member badge request
  Individual Specialist Application

 

To Register an Organization

A member organization, must be a broker or dealer duly registered with the Securities and Exchange Commission and qualified by a holder of a permit who is associated with such organization.

Registration with the SEC as a Broker Dealer:

The Securities and Exchange Act of 1934 requires that individuals, partnerships or corporations applying for membership on an exchange, must also be registered with the Securities and Exchange Commission. This registration may be done concurrently with the applications for membership or participation on the PHLX.

For More information on registering as a broker/dealer and a Guide to Broker-Dealer Registration please visit the U.S. Securities and Exchange Commission site.

A full paper Form BD is required when an applicant is filing with the CRD for the first time. Full instructions and a blank Form BD may be obtained at this SEC link: http://www.sec.gov/about/forms/formbd.pdf or through the SECs Publications Office at (202) 551-4040.

SIPC Membership:

All registered broker-dealer firms must become members of the Securities Investor Protection Corporation (SIPC). The SIPC fee should be paid upon becoming a registered broker-dealer with the SEC and should be paid at the beginning of each year thereafter.

All Organization applicants must provide the following documents:

1. A completed Organization Membership Application.
2. A summary of the firm's business plan addressing the type of business intended to be conducted on the PHLX. This letter should also contain a contact person and phone number for the applicant along with confirmation of the firm's clearing arrangements.
3. A Copy of the current Form BD and the organizations registration approval letter by the SEC.
4. A copy of the organizations most recent Focus Report or trial balance.
5. A Form U4 for each officer, director, stockholder, general or limited partner if the organization is to be sole PHLX member organization.
6. Additionally, if the applicant is a:

 

• Corporation, include the following:
  Executed PHLX Corporate Exhibits Nos. 1-7 inclusive.
• Partnership, include the following:
  An executed copy of the firm's partnership agreement
• Limited Liability Company, include the following:
  Operating Agreement
  Articles of Organization or Certificate of Formation

If the PHLX will be your Designated Regulating Authority additional documents may be required by the Examinations Department, a representative will contact you.