CHAPTER 3
EXCHANGE COMMITTEES300.

COMMITTEES
300.A. General Provisions
300.B. Board Level Committees
300.C. Non-Board Level Committees
300.D. Disqualification from Certain Committees and Governing Boards
300.E. Disciplinary Offenses Defined
300.F. Use of Disclosure of Material, Non-Public Information

Chapter 3
Exchange Committees
300.

COMMITTEES

300.A.

GENERAL PROVISIONSThe Board shall establish from time to time Board level committees as defined in the bylaws andnon-Board level committees necessary to conduct the business of the Exchange.
Every committee of the Exchange must have a chairman or co-chairmen. For purposes of theseRules, each co-chairman shall have the powers and duties of a chairman if acting in the capacity ofa chairman. The chairman or co-chairmen may either be members of the Board, if required by theRules or applicable committee charter, Exchange members or employees of member firms, or nonmembers. The Chairman of the Board may appoint vice-chairmen or alternate chairmen to eachcommittee. All meetings shall be called upon request of the chairman of the committee. In theabsence of the chairman or a co-chairman, the function of that office shall be performed by a vicechairman or an alternate chairman and may be performed by the Chairman of the Board.
Meetings shall be conducted according to established procedures of the Exchange, its bylaws orcommittee charter, as applicable. In the absence of established procedures, or in the case of adispute, Robert's Rules of Order may be consulted as a guide. Voting by proxy at committee
meetings shall not be permitted.

300.B.

BOARD LEVEL COMMITTEES
The duties of Board level committees are to establish plans for the strategic direction of theExchange, develop regulatory policy, advise and assist the Board and perform the specific duties
assigned to them elsewhere in these Rules and/or in their charters. The Board may refer to acommittee any matter within the committee's jurisdiction, and it shall be the duty of the committee
to meet, consider the matter and make a complete report to the Board.
A quorum of a Board level committee shall consist of a majority of the members of the committee.
All members of a Board level committee shall be entitled to vote.

300.C.

NON- BOARD LEVEL COMMITTEES
The duties of non-Board level committees are to review investigation reports prepared by
Exchange staff, conduct hearings and/or advise and assist the Board and perform the specificduties assigned to them elsewhere in these Rules, in their charters or by the Board. The Board mayrefer to a committee any matter within the committee’s jurisdiction and it shall be the duty of thecommittee to meet, consider the matter and make a complete report to the Board.
The Chairman may appoint Exchange members or employees of member firms and non-members
to all non-Board level committees to serve during the Chairman's term of office and until newcommittees are appointed. The Chairman may at any time remove any member of a committee,
with or without cause, and all vacancies shall be filled as in the case of an original appointment.
Unless otherwise provided in the Rules, a quorum of a non-Board level committee shall consist of amajority of the members of a committee or a committee panel, excluding the vice-chairman, if any.
The chairman of a non-Board level committee, or another individual acting in the capacity of thechairman, may vote only to make or break a tie vote unless otherwise provided in the Rules.

300.D.

DISQUALIFICATION FROM CERTAIN COMMITTEES AND GOVERNING BOARDS
No person shall serve on the Board of Directors or any Board level committee; the Clearing House
Risk Committee; the IRS Risk Committee; the Business Conduct Committee or the Arbitration
Committee
1) who is found by a final decision or settlement agreement (or absent a finding in the settlementagreement if any acts charged included a disciplinary offense) to have committed a disciplinary
offense, as defined in Section E. below; or2) whose CFTC registration in any capacity has been revoked or suspended; or3) who is subject to an agreement with the CFTC or any self-regulatory organization not to apply forregistration or membership; or4) who is subject to a denial, suspension or disqualification from serving on a disciplinarycommittee, oversight committee, arbitration panel or governing board of any self-regulatoryorganization as that term is defined in Section 3(a)(26) of the Securities Exchange Act of 1934; or
5) who has been convicted of any felony listed in Section 8a(2)(D)(ii) through (iv) of the CommodityExchange Act; for a period of three years from the date of such final decision or for such a time as
the person remains subject to any suspension, expulsion or has failed to pay any portion of a fine
imposed for committing a disciplinary offense, whichever is longer.

300.E.

DISCIPLINARY OFFENSES DEFINED"Disciplinary offense" is defined as a:(1) Violation of any Exchange rule or the rules of a self-regulatory organization (as defined in CFTC
Regulation 1.63(a)(1)), except those violations that are related to (a) decorum or attire, (b) financial
requirements, or (c) reporting or recordkeeping violations which receive cumulative fines of $5,000
or less within any calendar year;(2) Notwithstanding paragraph (1) above, a “disciplinary offense” shall include a violation of any
Exchange rule or rule of another self-regulatory organization which: (a) involves fraud, deceit orconversion; or (b) results in an access denial, suspension or expulsion;(3) Violation of the Commodity Exchange Act or CFTC regulations; or(4) Failure to exercise supervisory responsibility in violation of the Rules of the Exchange, the rulesof other self-regulatory organizations, the Commodity Exchange Act or CFTC regulations withrespect to activities that involved fraud, deceit or conversion.
A Person who serves on any of the committees listed in Rule 300.D. shall inform the Exchange if
he or she is currently ineligible, and shall immediately inform the Exchange if he or she later
becomes ineligible, to serve on such committees under the standards set forth above with respect
to disciplinary offenses. Violation of this rule shall be an act detrimental to the interest or welfare ofthe Exchange.

300. F.

USE OR DISCLOSURE OF MATERIAL, NON- PUBLIC INFORMATIONNo member of any committee shall use or disclose, for any purpose other than the performance ofsuch person's official duties as a member of a committee, any material non-public information
obtained by such person as a result of such person's participation on any such committee;
provided, however, that if any such person who effects any transactions after having received any
such material, non-public information so obtained can show that such transaction was effected in
the ordinary course of such person's business, such person shall not be deemed to have used suchinformation in violation of this rule, unless it can be shown that such person would not haveeffected such transaction in the absence of such information. For the purposes of this rule, theterms "material" and "non-public information" shall have the meaning set forth in CFTC Regulation
1.59(a).
(End Chapter 3)