local

a firm which is a member of a futures and options exchange and whose permission includes a requirement that:

1. (a) the firm will not conduct designated investment business other than:
   1. (i) dealing for its own account on that futures or options exchange; or
   2. (ii) dealing for the accounts of other members of the same futures and options exchange; or
   3. (iii) making a price to other members of the same futures and options exchange; and
2. (b) the performance of the firm's contracts must be guaranteed by and must be the responsibility of one or more of the clearing members of the same futures and options exchange.2