Bona fide purchaser certification extends through multiple sub-brokers only when each is tied to a stock exchange member.

Stock Exchanges could certify a purchaser as a bona fide purchaser for value only where the purchase was made through a member or through a member's sub-broker, and the protective clarification was meant to shield such purchasers from attachment and unnecessary court proceedings. That certification could extend to a chain involving more than one sub-broker, but only if each intermediary sub-broker was itself a sub-broker of a member of the Stock Exchanges. If any intermediary was merely a sub-broker of another sub-broker and not of a member, the Stock Exchanges lacked authority to certify and the party had to seek a declaration of title from the Court.

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Issues: Whether the Stock Exchanges could certify a purchaser as a bona fide purchaser for value where the purchase chain involved more than one sub-broker, and whether certification was unavailable only when a sub-broker was not a sub-broker of a member of the Stock Exchanges.

Analysis: The clarification order was intended to protect bona fide purchasers for value so that their shares were not affected by attachment and they were not driven to Court in every case. The certification power was confined to purchases made through a member or through a member's sub-broker. That protection could extend where there were multiple sub-brokers, but only if each concerned sub-broker was itself a sub-broker of a member of the Stock Exchanges. If any intermediary was merely a sub-broker of another sub-broker and not of a member, the Stock Exchanges had no authority to certify, and the party would have to seek a declaration of title from the Court.

Conclusion: The Stock Exchanges were permitted to certify even where more than one sub-broker was involved, but only if every concerned sub-broker was a sub-broker of a member of the Stock Exchanges; otherwise certification was impermissible.

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