MARKET REGULATION ADVISORY NOTICE______________________________________________________________________
Exchange

CME, CBOT, NYMEX & COMEX

Subject

Consent to Exchange Jurisdiction

Rule References

Rule 418

Advisory Date

January 17, 2020

Advisory Number

CME Group RA2001-5

Effective Date

February 3, 2020

Effective on trade date Monday, February 3, 2020, and pending all relevant CFTC regulatory review
periods, this Market Regulation Advisory Notice will supersede CME Group Market Regulation Advisory
Notice RA1909-5 from December 17, 2019. It is being issued to adopt a provision subjecting any
intermediary that charges a commission or fee who may not otherwise be involved in a client’s trade flow
to the jurisdiction of the Exchanges. The same or similar provision will be adopted by all U.S. designatedcontract markets (“DCMs”), and results from an industry-wide effort to ensure that DCMs have fulljurisdiction over such entities where a commission or fee is charged in connection with a client’s trading
activities in the applicable DCM’s markets. 1
On August 20, 2012, CFTC Regulation 38.151(a) became effective. CFTC Regulation 38.151(a) is set
forth below.
§38.151 Access requirements.
(a) Jurisdiction. Prior to granting any member or market participant access to its markets, a designatedcontract market must require that the member or market participant consent to its jurisdiction.

In response to CFTC Regulation 38.151(a), CME, CBOT, NYMEX and COMEX adopted Rule 418(“Consent to Exchange Jurisdiction”), which also became effective on August 20, 2012. The text of Rule418 is set forth below:
418.
CONSENT TO EXCHANGE JURISDICTION
Any Person initiating or executing a transaction on or subject to the Rules of the Exchange directly or throughan intermediary, and any Person for whose benefit such a transaction has been initiated or executed,
expressly consents to the jurisdiction of the Exchange and agrees to be bound by and comply with the Rulesof the Exchange in relation to such transactions, including, but not limited to, rules requiring cooperation andparticipation in investigatory and disciplinary processes. Any futures commission merchant, introducing
broker, associated person, or foreign Person performing a similar role that charges a commission or fee inconnection with transactions on or subject to the Rules of the Exchange also expressly consent to theExchange’s jurisdiction.

All market participants and intermediaries are reminded that failure to fully cooperate and participate in
any CME Group Market Regulation Department investigation or disciplinary enforcement matter may
result in charges being issued for a violation of Rule 432.L. pursuant to the provisions of Rule 406(“Issuance of Charges”). Rule 432.L. is set forth below:
432.
GENERAL OFFENSES
It shall be an offense:

1Please see Special Executive Report S-8518 from January 17, 2020, for additional information.

CME Group RA2001-5
January 17, 2020
Page 2 of 2L.

1.
2.
3.

to fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly
convened hearing, scheduled staff interview or in connection with any investigation;
to fail to fully answer all questions or produce all books and records at such hearing or in connection
with any investigation, or to make false statements;
to fail to produce any books or records requested by duly authorized Exchange staff, in the format
and medium specified in the request, within 10 days after such request is made or such shorter periodof time as determined by the Market Regulation Department in exigent circumstances;

Sanctions for violations of Rule 432 may include monetary penalties and/or restrictions or denial ofaccess to any or all products of any Designated Contract Market, Derivatives Clearing Organization, orSwap Execution Facility owned or controlled by CME Group.
Market participants and intermediaries are reminded that access to CME, CBOT, NYMEX and COMEX
markets is conditioned on compliance with Rule 418. Market participants and intermediaries should beaware that refusal to cooperate or provide requested information based on privacy or other applicablelaws of any foreign jurisdiction will in no manner affect the Market Regulation Department’s forwarding of
the matter for the issuance of charges pursuant to the provisions of Rule 406 for a violation of rule 432.Lor any other applicable Rule.

Questions regarding this Advisory Notice may be directed to one of the following individuals in MarketRegulation:
Erin Middleton, Director, Rules & Regulatory Outreach, 312.341.3286
Paige Gawrys, Senior Specialist, Rules & Regulatory Outreach, 312.872.5078
Steve Schweitzer, Senior Director, Enforcement, 312.435.3648
For media inquiries concerning this Advisory Notice, please contact CME Group Corporate Communications at 312.930.3434 or
news@cmegroup.com.