Principal Contract Law and Legal Definition

According to 17 CFR 190.01 [Title 17 -- Commodity and Securities Exchanges; Chapter I – Commodity Futures Trading Commission; Part 190 – Bankruptcy], principal contract means “a contract which is not traded on a board of trade, and includes leverage contracts and dealer options, but does not include transactions executed off the floor of a board of trade pursuant to rules approved by the Commission or rules which the board of trade is required to enforce, or pursuant to rules of a board of trade located outside the United States, its territories or possessions.”