Street Book: A Comprehensive Guide to Its Legal Definition and Usage

Definition & Meaning

A street book is a detailed record maintained by futures commission merchants and clearing members. It documents each futures and options transaction, capturing essential information such as the transaction date, price, quantity, market, commodity, future, strike price, option type, and the individual for whom the trade was executed. This record is crucial for tracking trading activities and ensuring compliance with regulatory requirements.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A futures commission merchant records a transaction in their street book for a soybean futures contract traded on March 1, 2023, at a price of $14.00 per bushel for 100 contracts. This entry includes all relevant details, ensuring compliance and transparency.

Example 2: A trader executes an options trade for a call option on a stock with a strike price of $50. The street book entry will note the transaction date, price, quantity, and option type (hypothetical example).

Comparison with related terms

Term Definition Difference
Trade blotter A record of all trades executed by a trader. A street book is more detailed and includes specific information about each transaction, while a trade blotter may summarize trades.
Order book A list of buy and sell orders for a specific security. The street book records completed transactions, whereas an order book shows pending orders.

What to do if this term applies to you

If you are involved in futures or options trading, ensure that you maintain an accurate street book to comply with regulatory requirements. You can utilize US Legal Forms to find templates that help you create and manage your street book effectively. If you face complex legal issues related to trading, consider consulting a legal professional for tailored advice.

Quick facts

  • Typical users: Futures commission merchants, clearing members
  • Purpose: Record and track futures and options transactions
  • Compliance: Required for regulatory oversight
  • Key components: Date, price, quantity, market, commodity, future, strike price, option type

Key takeaways

Frequently asked questions

The street book serves to document all futures and options transactions, ensuring compliance with regulatory standards.