local

(1) (except in BIPRU 1.1 (Application and purpose)) 22a 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

(2) (in BIPRU 1.1 (Application and purpose) and in accordance with article 3(1)(p) of the Capital Adequacy Directive (Definitions)) an undertaking dealing for its own account on markets in financial-futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets or which deals for the accounts of other members of those markets and which are guaranteed by clearing members of the same markets, where responsibility for ensuring the performance of contracts entered into by such an undertaking is assumed by clearing members of the same markets; for these purposes a clearing member means a member of the exchange or the clearing house which has a direct contractual relationship with the central counterparty (market guarantor).22