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When a membership is transferred, petitioner: (1) Maintains and
publishes a list of bids to purchase and offers to sell; (2)
receives and holds bid purchase money and transfer fees while
bids to purchase are pending; (3) receives and holds the
authorization of sale submitted by a prospective seller; (4)
notifies the buyer and seller whenever a bid and offer match; (5)
withholds from the tendered purchase price an amount necessary to
pay any outstanding exchange fees or fines of the seller, as well
as any trading related debts or membership financing of the
seller owed to other members or clearing firms; (6) remits
membership sale proceeds to all parties who submitted claims
against the seller for repayment of outstanding debt, that have
been "allowed" by the exchange; and (7) keeps records of all
membership transfers, including intrafirm and intrafamily
transfers, and membership exchanges.
Within 5 business days of acquiring the membership (unless
the application was submitted and approved prior to the
acquisition), the purchaser must submit an application for
membership to petitioner. As part of the application process,
prospective members are given a copy of petitioner’s rules and
they are tested on their knowledge of these rules. If the new
owner of a membership fails to submit an application, is not
elected to membership, or withdraws the application, petitioner's
regulations require the new owner to sell the acquired membership
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Last modified: May 25, 2011