Chapter 04 · Section 4.1

Trading Floor Status

In the Commodity/Futures system (as used on the Chicago Mercantile Exchange for currency futures options for instance), there are two kinds of participants on the trading floor: floor brokers and floor traders. What status do these people have?

a) They are all exchange members.
• b) They are all clearing members.
  No. An exchange member can trade on the floor without being a clearing member as long as his trades are cleared through a clearing member.
  c) None of the above.

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