Separate Trading of Registered Interest and Principal Securities

This Issue in United States

Concept of STRIPS (Separate Trading of Registered Interest and Principal Securities) in Futures Trading

In this context of financial law, the following is a definition of STRIPS (Separate Trading of Registered Interest and Principal Securities): A book-entry system operated by the Federal Reserve permitting separate trading and ownership of the principal and coupon portions of selected Treasury securities. It allows the creation of zero coupon Treasury securities from designated whole bonds.