Chapter 04 · Section 4.1
Recording Trades
Which of the following is a general rule regarding the way clearing members must record their trades?
a) Separate accounts must be used for option purchases and option sales.
b) Separate accounts must be used for transactions in which the clearing member acts as a broker and for transactions on the clearing member's own account.
c) The position in every option series must be recorded net (i.e. no simultaneous long and short positions in the same option series).
It is important for the clearing house to know to what extent a clearing member's positions are agent positions (i.e. on behalf of a third party).