DEFINITION of 'Local'
Traders on future exchanges who may fill public orders occasionally, but will predominantly buy and sell for their own personal accounts. Locals act as floor traders on exchanges, however the key difference between locals and actual floor traders is that locals typically are not members of the exchange they wish to trade on, which is why they are classified in another category of floor trader.
BREAKING DOWN 'Local'
Since locals often are not members of the exchanges, which they wish to trade on for their own personal benefit, in most cases a local will actually lease the floor "space" from a member trader who otherwise would not be required to trade on the floor at that time. Such an arrangement offers benefits to both parties, as locals are able to trade for proprietary purposes while members can collect leasing premiums for use of their floor privileges.