Clearing Membership
Application FormJULY 2019

Chicago Mercantile Exchange Inc. (“CME”)
Board of Trade of the City of Chicago, Inc. (“CBOT”)
New York Mercantile Exchange, Inc. (“NYMEX”)
Commodities Exchange, Inc. (“COMEX”)

Thank you for your interest in Clearing Membership with one or more CME Group exchanges. Please review and follow all
directions contained in this application packet carefully. Please note that any incomplete or missing information will extend thereview process. Prior to submitting the application, each applicant should:
1.

Ensure all questions on the application have been thoroughly reviewed and completely answered.

2.

Ensure all supporting documents are attached.

3.	A scanned copy of the application and all applicable supporting documentation should be emailed to
FRSAdmin@cmegroup.com or mailed to the following address:
CME Group Inc.
c/o FRS Management Team
20 S. Wacker Drive
Chicago, IL 60606

CME Group Inc. policies require all its directors, officers, employees, consultants and agents (“Representatives”) to treat as confidential and to use a reasonable
degree of care to maintain the confidential nature of all information received from an applicant in conjunction with an application for member firm status on a
CME Group Exchange (i.e., CME, CBOT, NYMEX and COMEX). Such confidential information may only be disclosed to CME Group representatives who have a needto know such information and who are bound by these policies and who agree to protect the confidential information from unauthorized use and disclosure. CME
Group Inc. acknowledges that such confidential information may not be disclosed to any third-party person or entity (except pursuant to administrative or judicial
process) without the prior written consent of the applicant providing such confidential information. CME Group collects and uses personal information for the
purposes for which it was obtained. For further information, please reference CME Group’s Privacy Policy or contact the Privacy Office at privacy@cmegroup.com.

Clearing Membership Application Form – July 20192

Note to Applicant: This PDF works best when completed using the application Adobe Reader. Alternative PDF viewer
software may not support fillable form fields.

Application and Agreement for Clearing Membership
1. ORGANIZATION’S FULL LEGAL NAME
2. TYPE OF ORGANIZATION (CHECK ONE)Corporation organized under the laws of		C Corporation

Subchapter S Corporation (check one)

Limited Liability Company organized under the laws ofLimited Partnership organized under the laws ofGeneral Partnership organized under the laws of
Cooperative Association organized under the laws of
Other (please specify)
3. DATE ESTABLISHED

4. A. U.S. TAX IDENTIFICATION NUMBER

4. B. LEGAL ENTITY IDENTIFIER (LEI)

5. MAIN ADDRESSPHONE NUMBERWEBSITE ADDRESS

6. U.S. OR ADDITIONAL ADDRESSPHONE NUMBER
7.	INDICATE THE NAME(S), TITLE(S) AND CONTACT INFORMATION OF INDIVIDUAL(S) AUTHORIZED TO REPRESENT THE ORGANIZATION BEFORE THE
EXCHANGE(S) AND ITS COMMITTEES.

PHONE NUMBER

8. FISCAL YEAR END

EMAIL ADDRESS

		

9. PUBLIC ACCOUNTANT (INCLUDE ADDRESS, RESPONSIBLE PARTNER, AND DIRECT PHONE NUMBER)

Clearing Membership Application Form – July 20193

10.	IS YOUR ORGANIZATION QUALIFIED TO DO BUSINESS IN THE STATE OF ILLINOIS AND/OR THE STATE OF NEW YORK? IF “YES”, PLEASE PROVIDESUPPORTING DOCUMENTATION, IF NOT, PLEASE PROVIDE AN EXECUTED AGENCY AGREEMENT AND INDICATE BELOW WHO WILL BE APPOINTED.
THE AGENCY AGREEMENT PROVIDES A PLACE FOR SERVICE OF PROCESS.

11.	IS YOUR ORGANIZATION SUBJECT TO ANY RESTRICTIONS WHICH WOULD PROHIBIT IT FROM BECOMING A CLEARING MEMBER? IF “YES”, PLEASEPROVIDE SUPPORTING INFORMATION.

12. PLEASE RESPOND TO THE FOLLOWING:

QuestionYesA.

Has your organization or its principals ever been denied registration, or had a registrationsuspended, revoked, or conditioned by a governmental or regulatory authority?

B.

Has your organization or any affiliated organization ever failed in business, made a compromise withor assignment of assets for the benefit of creditors, or been a party to any voluntary or involuntary
proceeding under any relevant Bankruptcy Law, taken advantage of any Exemption Law or pleaded
the Statute of Limitations to any claim of creditors?

C.

Has your organization or its principals ever been denied membership or clearing privileges by any
commodity or securities exchange/clearing organization?

D.

Has any commodity exchange, securities exchange, clearing organization or other self-regulatory
body ever fined, suspended, conditioned, or revoked privileges of your organization or its principals?

E.

Has your organization ever used, been known by, or conducted business under, any other name?

F.

Has your organization or its principals ever been:(a) convicted of any felony, pled guilty, entered aplea of “no contest” or entered into a voluntary settlement as to any violation of any criminal or
penal code; or, (b) convicted of any misdemeanor or found guilty of violating a rule or regulationthat involves embezzlement, theft, fraud, extortion, misappropriation of funds, forgery, or bribery, by
any U.S. or foreign court, government or regulatory authority, or exchange/clearing organization?

G.

To the best of your knowledge, is your organization or its principals currently subject to an
investigation (excluding routine financial audits and examinations) by any government or regulatory
authority, or exchange/clearing organization?

H

Does your organization or its principals currently have any judgments, liens, attachments, or otherencumbrances filed against it?

No

If your response is “Yes” to any of the above, please describe below and provide supporting documentation. (Alternatively, asuggested template for 12.G. is attached to the application.)

Clearing Membership Application Form – July 20194

13. LIST ALL COMMODITY AND SECURITY EXCHANGES/CLEARING ORGANIZATIONS, U.S. AND NON-U.S., AT WHICH MEMBERSHIP PRIVILEGES ARE HELD OR
PENDING. PLEASE ALSO INDICATE THE TYPE OF MEMBERSHIP HELD OR PENDING (E.G. CLEARING OR NON-CLEARING).

14. IS YOUR ORGANIZATION REGISTERED AS A FUTURES COMMISSION MERCHANT (FCM) WITH THE CFTC? IF YES, PLEASE STATE YOUR DESIGNATED SELFREGULATORY ORGANIZATION (DSRO).

15. IS YOUR ORGANIZATION REGISTERED AS A BROKER/DEALER WITH THE SEC? IF YES, PLEASE STATE YOUR DESIGNATED EXAMINING AUTHORITY (DEA).

16. IS YOUR ORGANIZATION REGISTERED IN ANY OTHER REGULATORY CAPACITY? IF SO, INDICATE THE NATURE AND COUNTRY OF REGISTRATION(S),YOUR PRIMARY REGULATOR(S), THE REGULATOR’S WEB SITE(S), AND THE NAME, TITLE, ADDRESS, TELEPHONE AND E-MAIL ADDRESS OF A CONTACT AT
YOUR PRIMARY REGULATOR. IF A BANK, INCLUDE PRIMARY BANKING REGULATOR AND APPLICABLE INFORMATION.

17.	A. FOR NEW CLEARING MEMBERS ONLY - PLEASE SELECT ONE: ou have obtained any required consent, authorization, and approval of, have filed with, and have taken all other actions
Yrequired by any governmental authority or regulatory body, or under any law, rule, or regulation applicable to the firm inconnection with the application for clearing membership of each Applicable Exchange [Please provide a copy of such
document(s)]; or o consent or approval of, filing with, or other action is required by any governmental authority or regulatory body, or underN
any law, rule, or regulation applicable to the firm in connection with the application of clearing membership for eachapplicable Exchange. [Please provide an opinion of outside counsel.]
B. FOR CURRENT CME GROUP CLEARING MEMBERS ONLY - IF ACCURATE, PLEASE ACKNOWLEDGE:

No consent or approval of, filing with, or other action is required by any governmental authority or regulatory body, or under
any law, rule, or regulation applicable to the firm in connection with the application of clearing membership for eachapplicable Exchange. [Please complete attestation to be provided by CME Group.]

18. IS YOUR ORGANIZATION, A SUBSIDIARY OF YOUR ORGANIZATION, OR PARENT COMPANY/OWNER OF YOUR ORGANIZATION REGULATED BY THE U.S.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) AND/OR U.S. OFFICE OF THE COMPTROLLER OF THE CURRENCY (OCC)?IF SO, PLEASE IDENTIFY
THE ENTITY AND ITS REGULATOR(S).

Clearing Membership Application Form – July 20195

19.	WILL YOUR ORGANIZATION CARRY RETAIL FOREX ACCOUNTS OR ACT AS COUNTERPARTY TO OTC FOREX TRANSACTIONS WITH CUSTOMERS WHO
ARE NOT ELIGIBLE CONTRACT PARTICIPANTS?

20.	 WILL YOUR ORGANIZATION CLEAR SWAP OR FORWARD PRODUCTS? IF SO, PLEASE INDICATE FOR CUSTOMER, NON-CUSTOMER OR PROPRIETARY
ACCOUNTS AND INDICATE THE TYPE OF PRODUCTS YOUR ORGANIZATION WILL CLEAR (E.G., INTEREST RATE, COMMODITY AND/OR ENERGY SWAPS
AND/OR FOREIGN EXCHANGE AND/OR METAL FORWARDS).

21.	WILL YOUR ORGANIZATION CLEAR CLEARPORT PRODUCTS? IF SO, PLEASE INDICATE FOR CUSTOMER, NON-CUSTOMER OR PROPRIETARY ACCOUNTSAND INDICATE THE TYPE OF PRODUCTS YOUR ORGANIZATION WILL CLEAR (E.G. ENERGY, METAL OR AGRICULTURAL).

22.	WHAT BOOKKEEPING SYSTEM(S) ARE UTILIZED BY YOUR ORGANIZATION FOR FUTURES AND/OR CLEARED SWAPS/FORWARDS ACTIVITY? PLEASE STATE
THE VENDOR OR INDICATE PROPRIETARY SYSTEM, AS APPLICABLE.

Futures:
Swaps/Forwards:
23.	WILL YOUR ORGANIZATION BE FACILITIES MANAGED BY A THIRD PARTY? IF YES, WHO WILL PROVIDE FACILITIES MANAGEMENT?
PLEASE PROVIDE THEIR ADDRESS AND THE NAME AND DIRECT PHONE NUMBER AND E- MAIL ADDRESS OF A CONTACT PERSON.

24.	DOES YOUR ORGANIZATION INTEND TO CLEAR ITS CUSTOMER FUTURES AND/OR CLEARED SWAPS/FORWARDS PRODUCTS? IF SO, PLEASE INDICATETHE APPROXIMATE DATE THAT THE FIRM WILL BEGIN CLEARING THESE PRODUCTS.

		 CME:		

CBOT:

		COMEX:		NYMEX:

Swaps/Forward:

25.	DOES YOUR ORGANIZATION INTEND TO CLEAR ITS NON-CUSTOMER/AFFILIATE/PROPRIETARY FUTURES AND/OR CLEARED SWAPS/FORWARD
PRODUCTS? IF SO, PLEASE INDICATE THE APPROXIMATE DATE THAT THE FIRM WILL BEGIN CLEARING THESE PRODUCTS.

		 CME:		

CBOT:

		COMEX:		NYMEX:

Swaps/Forward:

26.	IF THE APPLICANT IS AN FCM, LIST ALL BRANCH OFFICES TRANSACTING FUTURES RELATED BUSINESS.

Clearing Membership Application Form – July 20196

27. IF THE APPLICANT IS AN FCM, LIST ALL GUARANTEED INTRODUCING BROKERS.

28.	DESCRIBE THE NATURE OF YOUR ORGANIZATION’S ANTICIPATED BUSINESS, INCLUDING CUSTOMER AND AFFILIATE BUSINESS, AND COMPLETE THE
CHART BELOW.

Anticipated Type of Business (Include all futures and cleared swaps/forward related activity)
Number of
Futures Accounts

Number of
Cleared Swap/
Forward Accounts

Percent of
Trading Volume

Commercial Accounts
Retail Accounts
Institutional Accounts
Individual Exchange Member Accounts
Discretionary/Managed Accounts
Omnibus Accounts
Affiliate Accounts
Other Noncustomer Accounts
Proprietary (firm owned) Accounts
Other

Clearing Membership Application Form – July 20197

29. IF YOUR ORGANIZATION WILL CONDUCT MEMBER FIRM PROPRIETARY TRADING ACTIVITY, COMPLETE THE CHART BELOW.

Member Firm Account Controllers/Traders (include all member firm related trading activity)
Number of Traders

Number of Traders

Bona-fide W-2 Employees

OwnersExchange Members

Commodity Trading Advisors

Independent Contractors – IRS Form 1099-MISC

Independent Contractors – IRS Form 1099-B

Other (describe)

Other (describe)

30.	PLEASE STATE THE NAME(S) AND ACCOUNT NUMBER(S) OF YOUR CUSTOMER SEGREGATED, CLEARED SWAPS CUSTOMER AND HOUSE SETTLEMENTBANK(S), AS APPLICABLE.

31.	DOES ANY ORGANIZATION/PERSON DIRECTLY OR INDIRECTLY OWN OR CONTROL 10% OR MORE, OR HAVE THE RIGHTS TO 10% OR MORE, OF THE
PROFITS IN YOUR ORGANIZATION AND ANY CLEARING MEMBER OF CME, CBOT, NYMEX AND/OR COMEX? IF YES, PLEASE DESCRIBE

32.	INDICATE THE NAME(S), TITLE(S) AND CONTACT INFORMATION OF INDIVIDUALS AUTHORIZED TO ACT ON BEHALF OF THE ORGANIZATION REGARDING
THIS APPLICATION AND TO CONTACT FOR QUESTIONS CONCERNING THE APPLICATION.

PHONE NUMBER

EMAIL ADDRESS

33.	INDICATE THE NAME, TITLE AND CONTACT INFORMATION OF THE INDIVIDUAL AUTHORIZED TO SUBMIT FINANCIAL STATEMENTS (E.G. QUARTERLYBANK FORMS, MONTHLY 1-FR OR FOCUS, AND DAILY CUSTOMER COMPUTATIONS WHERE APPLICABLE) ON BEHALF OF THE FIRM.

a.	If submitting a Form 1-FR: Must be an authorized signer as defined in CFTC Regulation 1.10(d)(4) who is also listed as aprincipal or FinOp of the firm.
b. If submitting a FOCUS: Must be signed by CFO or Registered FinOp and registered under 240.17a-5.
c.	If submitting Bank form: If not the CFO or CEO, submitter must be a person who is otherwise able to attest to and answer
detailed questions regarding the bank’s capital computation.
Name

Title

E-mailPhone #1

Phone #2

Clearing Membership Application Form – July 20198

PLEASE INCLUDE THE FOLLOWING WITH THE APPLICATION:
All documents but be submitted in English or accompanied by an English translation• Articles of Incorporation, Certificate of Incorporation, Articles of Association, Limited Liability Company Operating Agreement,
and/or Partnership Agreement as applicable (including all sub-agreements). These documents may also be required for any
entity in the organizational structure up to and including the ultimate beneficial owner.
• For bank applicants, the certificate of banking license or authorization, or equivalent, from the organization’s primary regulator.
• Notarized Certificate of Incumbency/Secretary’s Certificate (template within application).
• Designated Spokesperson and Authorized Signor Form (attached).
• Ownership chart (detailing percentages of ownership and business form) of all entities, including affiliates, in the corporate
structure. Please also include applicable share registry for each applicable entity.
• Executed Settlement and Custody Account Listing and Debit Authorization.
• The organization’s most recent certified financial statement.
• For regulated applicants, the organization’s most recent unaudited financial statement filed with its primary regulator. Also, asummary of the capital, financial reporting, and customer protection requirements imposed upon the organization by its primary
regulator.
• For nonregulated applicants, the organization’s most recent unaudited financial statement.
• The organization’s most recent monthly financial statement including supplemental information on total customer and noncustomer
risk maintenance performance bond requirements for all U.S. and non-U.S. futures and cleared swap/forward positions.
• If registered as an FCM, the firm’s Risk Management, Anti-Money Laundering and Business Continuity Programs as required by
CFTC Regulations 1.11 and 1.73 and Exchange Rules 981, 982 and 983.
• IRS Form W-9 Request for Taxpayer Identification Number and Certification or IRS Form W-8BEN Certificate of Foreign Status ofBeneficial Owner for United States Tax Withholding, as applicable.
• A listing of all member firm traders and, as applicable, evidence of bona-fide employment for employee-traders, documentationof IRS Form 1099-MISC or IRS Form 1099-B for independent contractor-traders, and/or most recent capital account balance forowner-traders. (See attached template)• Trader agreements, if applicable.
• Completed Contact List (attached).

Clearing Membership Application Form – July 20199

Clearing Membership Agreement
The undersigned (the “Company”) applies to be a clearing member for the following exchanges and/or OTC clearing memberships:[Check all that apply]
Chicago Mercantile Exchange Inc. (“CME”)
Board of Trade of the City of Chicago, Inc. (“CBOT”)
New York Mercantile Exchange, Inc. (”NYMEX”)
Commodity Exchange, Inc. (“COMEX”)
OTC
Chicago Mercantile Exchange Inc. OTC-Foreign Exchange (“OTC FX”)
Chicago Mercantile Exchange Inc. OTC-Interest Rate Swaps (“OTC IRS”)

Section 1

Adherence to Rulebook(s)Company agrees that upon its acceptance as a Clearing Member of the above checked exchanges (and acceptance as a clearing
member of any exchange(s) for which it applies in the future to be a clearing member) (“Applicable Exchange(s)”), it and its
representatives will observe and be bound by the Bylaws, Certificate of Incorporation, and all Rules (as defined in each Applicable
Exchange’s Rulebook1) as amended from time to time. All Rules of each Applicable Exchange and all amendments thereto fromtime to time are hereby incorporated fully herein as if set out fully herein. Capitalized terms used but not defined herein shall havethe respective meanings assigned thereto in the Rules.
Upon approval as a clearing member, Company agrees to abide by the requirements for such clearing membership at eachApplicable Exchange.

Section 2

Authorizations(1)	Company authorizes each Applicable Exchange and its affiliates to obtain information from sources it deems appropriate inorder to adequately evaluate and process this application.
(2) 	Company authorizes each Applicable Exchange and its affiliates to disclose or release any information regarding Company to
U.S. or foreign securities and futures regulators or markets. Such disclosure or release may only be made based on a regulatory
need, or if otherwise authorized by the information-sharing agreements or procedures of the Intermarket Surveillance Group,
the Intermarket Financial Surveillance Group, or the International Information Sharing Memorandum of Understanding andAgreement of March 15, 1996 as amended with CME’s consent from time to time, or as otherwise permitted or required by law.

1

Each Applicable Exchange’s Rulebook can be found at http://www.cmegroup.com/market-regulation/rulebook/index.html.

Clearing Membership Application Form – July 201910

Section 3

Representations and Warranties

Company represents and warrants to each Applicable Exchange that:(1) 	it meets all of the requirements for clearing membership at each Applicable Exchange at which clearing membership isapplied for;(2) 	all current and future member firm trading activity of Company will conform to the requirements for such trading activity
established by each Applicable Exchange;(3) 	as of the date of this Agreement it has, and on each date up to the termination of its clearing membership it will have, thecorporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder, including
without limitation any obligation required under each Applicable Exchange’s Rulebook;(4) its execution, delivery and performance of this Agreement have been duly and validly authorized;(5) this Agreement, when executed and delivered by Company, will constitute a valid and legally binding obligation of Company;(6) 	as of the date of this Agreement it is, and on each date up to the termination of its clearing membership it will be, (i) dulyorganized, validly existing and in good standing under the laws of its jurisdiction of Company, and (ii) duly qualified to dobusiness and(7) 	in good standing as a foreign corporation in each jurisdiction where the conduct of its business requires such qualification;(8) 	the execution, delivery of this Agreement, or any act to be performed pursuant to this Agreement or the Rules of eachApplicable Exchange, by or on behalf of Company or each Applicable Exchange, does not and will not violate or conflict withany provision of the certificate of incorporation, by-laws, partnership agreement, limited liability company agreement or any
other organizational document, as the case may be, of Company, or of any agreement which is binding upon Company, or of
any law or regulation applicable to Company;(9) 	it has obtained any required consent, authorization, and approval of, has filed with, and has taken all other actions requiredby any governmental authority or regulatory body, or under any law, rule, or regulation applicable to Company in connection
with (i) its application for clearing membership of each Applicable Exchange, and (ii) the execution, delivery of, or performanceof this Agreement and its obligations as a clearing member of each Applicable Exchange; and,(10) 	all information provided to the Applicable Exchange(s) in connection with its application for clearing membership at eachApplicable Exchange is true, accurate and complete.

Section 4

Acknowledgments and Notifications(1) Company acknowledges and agrees that in the event it:		(i) makes any fraudulent misrepresentation to any Applicable Exchange,		(ii) conceals information from any Applicable Exchange,		(iii) makes a material misstatement to any Applicable Exchange,		(iv) provides inaccurate and/or incomplete information to any Applicable Exchange, or		(v) makes an unlawful request for clearing membership of any Applicable Exchange(s),	Company may be subject to disciplinary actions and/or penalties by the Applicable Exchange(s), including but not limited tosuspension, expulsion and/or termination of its membership(s) and clearing membership(s) and sale of its membership(s)pursuant to Rules of the Applicable Exchange(s).
(2) 	Company agrees to notify each Applicable Exchange in the event Company has a significant negative change to its authority
to perform its obligations as a clearing member or becomes unqualified to do business in a jurisdiction where suchqualification is required.

Clearing Membership Application Form – July 201911

Section 5

Miscellaneous(1) 	Company will execute and deliver such further instruments and documents, and take such further action, as any Applicable
Exchange may reasonably request in order to confirm or better effectuate the authority and rights granted to the Applicable
Exchange(s) pursuant to this Agreement and the Rules.
(2) 	Company hereby irrevocably waives any right it may have to a trial by jury with respect to any litigation directly or indirectly
arising out of or relating to this Agreement.
(3) 	Except as otherwise provided in Chapters 4, 5, 6, and 8G of the Applicable Exchange(s) Rulebook, Company consents to the
exclusive jurisdiction of any federal or state court in Chicago, Illinois with respect to any action between Company andApplicable Exchange(s) and/or an Applicable Exchange(s) affiliate arising from this Agreement or Company’s Applicable
Exchange(s) Clearing Membership, and hereby waives any right to transfer the venue of such litigation.
(4) 	Company further agrees that this Agreement shall be governed by and construed in all respects by the laws of the State of
Illinois, without giving effect to principles of conflict of law.

[Name of Company]

BY:
NAME:
TITLE:DATE:
Must be submitted along with a notarized Certificate of Incumbency/Secretary’s Certificate.

Clearing Membership Application Form – July 201912

Clearing Member Firm – Member Firm Trading Authorization(Clearing Member)
The trades of a CME, CBOT, NYMEX, COMEX or OTC (as applicable and hereafter referred to as “Applicable Exchange(s)”)
approved clearing member maintaining the required number of memberships/seats and CME Group Inc. shares in accordancewith Applicable Exchange rules, may receive member fee rates – less than charged to non-member customers.
In order for clearing members to receive member fees on Applicable Exchange trades, all member firm trading must be conductedin accordance with CME Group Inc.’s Fee Policy Bulletins on CME Group Inc.’s website at http://www.cmegroup.com/toolsinformation/fee-policy-bulletins.html for Member Firm Trading Policies.

Requirements (Absolutes)
A member firm trading account is evidenced through:• The financial benefit and risk shall be solely of the member firm – only firm capital is at risk of loss.
• No non-owner traders may make any contributions or payments to the member firm or member firm trading account nor haveany capital at risk in connection with their trading of the member firm account.
• All contributions by owners of the member firm are subject to risk of loss from any and all trading and business activities ofthe firm.
• All profits and losses of the member firm account are written off to the income of the member firm and are taxed to the member
firm in accordance with IRS regulations.
• All trading must be done in member firm trading accounts held in the name of the clearing member.
Further, clearing member trading activity must be conducted by traders including operators/administrators of AutomatedTrading Systems (“ATS”) that are:
• Bona-fide W-2 employees (or equivalent W-2 of a foreign jurisdiction) of the clearing member; or• Independent contractors and other self-employed individuals who maintain at least $250,000 in holdbacks whose totalcompensation (that is, all compensation) is reported on a IRS Form 1099-MISC (“1099-MISC”) (or equivalent document of a foreign
jurisdiction) and/or on an IRS Form 1099-B (“1099-B”) of the clearing member; or• Owners who maintain at least $250,000 in bona-fide capital and holdbacks; or• Individual equity members of Applicable Exchange trading within their division of membership; or• Rule 106.F. Clearing Member Transfer members; or• Registered Commodity Trading Advisors (“CTAs”), exempt CTAs under CFTC Regulations 4.14(a)(4), 4.14(a)(8)(i)(D) or 4.14(a)(10), andInvestment Managers authorized by the Financial Conduct Authority (“FCA”).
All clearing member traders must be assigned unique trader IDs, those IDs and the associated clearing member trader must be
appropriately registered in CME Group Inc.’s Exchange Fee System and all Globex trades (orders) must be identified with theregistered ID of the trader executing the trade.

Clearing Membership Application Form – July 201913

In addition, member firm trading must meet the following requirements:• Traders cannot be responsible for losses beyond their share of profits earned and maintained in the account which have not yet
been distributed to the trader.
• The firm must be allocated both a portion of the profits and losses of the member firm account.
• The profit split on agreements with any trader, including owners acting as traders, may not exceed 80/20 (i.e. 80% to thetrader/20% to the firm).
– For member firm trading conducted by a team of traders, the profit split to the team in total may not exceed 80/20(i.e. 80% to the trader team/20% to the firm).
– Further the 80% limit on profit splits to a trader or team of traders includes any individual who has a specific interest in its
profitability including those involved in the training/supervision of the account(s) and/or trader(s).
• Non-owner traders cannot leave their share of profits in the firm for greater than 24 months without becoming an equity owner.
– Non-owner trader’s share of capital in an account may not exceed the trader’s share of net profit/loss in the previous
24 month period.
– If a trader leaves their share of any profits in the account for greater than 24 months, they must become an equity owner.
• The firm is prohibited from:– Setting minimum account balances for its traders.
– Charging margin on positions to traders.
– Charging fees on draws taken by traders.
– Requiring or accepting security deposits from its traders.

Best Practices
CME Group Inc. recognizes that certain business practices may be utilized when conducting customer business as well as member
firm trading activities. The Best Practices were established to allow member firms to utilize certain business practices (most notallowed in the past) which are generally prohibited. In order to do so, the member firm must clearly demonstrate to CME Group
Inc. their application of these non-compliant practices is not inconsistent with CME Group Inc.’s goal of providing member fees
only for member firm trading activity. Such practices will be reviewed individually and in the aggregate in relation to the firm’s
entire trading activities and operation.
Review of such non-compliant practices will reflect the following key principles of CME Group Inc.’s member firm trading policies.
First and foremost, the trading activity eligible for member fees must be conducted for the account and sole benefit of themember firm itself. The trading activity of individual customers/traders conducted in the name of the firm is not eligible fordiscounted member firm fees in order to prevent arcade type trading under the guise of member firm trading and to prevent the“selling” of member firm rates. Further, a member firm may only profit/benefit from the member firm trading activity through theperformance of the trade and not from any other source such as a commission or charge for trade execution.

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Non-compliance with the Best Practices below is generally prohibited as it is indicative of arcade type trading, the selling of rates,
and/or profiting from sources other than the performance of the member firm trade. As such, while the Best Practices are notabsolutes as the Requirements are, any non-compliance of the Best Practices will be carefully reviewed with the burden of
responsibility on the clearing member to clearly support and demonstrate to CME Group Inc.’s satisfaction that the trading is of
the clearing member itself. Under limited circumstances in reviewing the totality of the clearing member’s trading operations andthe violative practice(s), CME Group Inc. may deem the clearing member’s trading activities in accordance with CME Group Inc.’s
policies for clearing member trading activity that is eligible for equity member fees. Please check the box next to each practicewhich you do not comply with regarding your member firm trading:	The firm may not charge interest on debit balances to traders nor may it pay interest on credit balances to traders except
where an options trading strategy is utilized in which interest on the premium is a key component of the overall profitability ofthe strategy.
	The firm may not pay interest on holdbacks where holdbacks are permitted.
	The firm may not pay interest on capital contributions.
	The firm may not allocate expenses to trades or traders in excess of actual direct and indirect expenses of the individual
member firm trades or traders. Only actual expenses incurred may be allocated – a markup on expenses is not permitted.
Further, opportunity costs may not be allocated. Clearing members must maintain and provide adequate supporting
calculations and documentation of such allocated expenses and their reasonableness.
	A firm may not charge a fee for capital usage to individual traders of the member firm’s accounts.
	A firm may not charge a fee for the cost of capitalizing the firm (and thus the member firm’s trading accounts) to individual
traders.
	Individual owners and investing LLCs (as permitted) of a clearing member may not have a specific interest in the profitability ofa clearing member account or group of accounts other than a clearing member account that the individual owners or ownersof the investing LLC trade or provide direct supervision/training to.
I represent that all current and future member firm trading activity of clearing member receiving member fee rates will conform to
the requirements for such trading activity established by CME Group Inc.
I attest that the above information is true and correct. I further acknowledge that confirming incorrect information may subject me
to CME Group Inc. disciplinary action and/or penalties.

Clearing Membership Application Form – July 201915

Signed and accepted by a corporate officer and a duly authorized human resource or legal representative of my organization.
		

Corporate Officer*

HR or Legal Representative

Signature:
Printed name:Title:Date:* Acceptable Signor: CFO, CEO, COO, or equivalent officer.

Completed applications along with all supporting documentation should be submitted to:
		
		
		
		

CME Group Inc.
Financial and Regulatory Surveillance Department
20 S. Wacker Drive
Chicago, IL 60606

CME Group Inc. policies require all directors, officers, employees, consultants and agents (“Representatives”) to treat as confidential and to use a reasonable degreeof care to maintain the confidential nature of all information received from an applicant in conjunction with an application for member firm status on a CME Group
Exchange (i.e., CME, CBOT, NYMEX and COMEX). Such confidential information may only be disclosed to CME Group representatives who have a need to knowsuch information and who are bound by these policies or who agree to protect the confidential information from unauthorized use and disclosure. CME Group Inc.
acknowledges that such confidential information may not be disclosed to any third party person or entity (except pursuant to administrative or judicial process)without the prior written consent of the applicant providing such confidential information.

Clearing Membership Application Form – July 201916

Secretary’s Certificate
The undersigned hereby certifies, solely in [his/her] capacity as Corporate Secretary of [COMPANY], as of [DATE], that [NAME OF
SIGNATORY] is authorized to sign the Clearing Membership Agreement, dated as of [DATE], for clearing membership at one ormore of the following exchanges: Chicago Mercantile Exchange Inc., Board of Trade of the City of Chicago, Inc., New York
Mercantile Exchange, Inc. and/or Commodity Exchange, Inc. The undersigned further certifies that the signature appearing below
is true and correct.
[NAME OF SIGNATORY]

Signature of Agreement Signatory

Signature of Secretary:

Name of Secretary

Title: [Corporate Secretary]

Date
ACKNOWLEDGMENT
STATE OF
COUNTY OFI,, a Notary Public in and for and residing in the aforesaid state do hereby certify thatof[Company], personally known to me to be the same persons whose name is subscribed to the above Certificate appeared before
me this day in person and acknowledged that (s)he signed and delivered the above Certificate.
GIVEN under my hand and notarial seal this day of,20

Notary Public(Notary Seal)

My Commission Expires:*To be completed on Corporate Secretary’s Letterhead

Clearing Membership Application Form – July 201917

Designated Spokesperson and Authorized Person Form
CME Group Inc. requires firms to designate a Designated Spokesperson(s) and Authorized Person(s) who shall be authorized todeal with the Exchanges with respect to memberships owned or leased by the firm, as applicable, and who shall be authorized torepresent the firm before the Exchanges. Such authorized representatives shall be responsible to the Exchanges as if such person
was a member as defined by Rule 400.
CME Group may only discuss the application and information provided pursuant thereto with those individuals designated by thefirm as a Designated Spokesperson and/or an Authorized Person. Please provide a complete listing of the firm’s DesignatedSpokesperson(s) and Authorized Person(s) below. Changes to the list of Designated Spokesperson(s) or Authorized Person(s) may
only be made in writing by completing and emailing an updated Designated Spokesperson and Authorized Person Form located atwww.cmegroup.com/memberships. CME Group collects and uses personal information for the purposes for which it was obtained.
For further information please reference CME Group’s Privacy Policy or contact the Privacy Office at privacy@cmegroup.com.

Name

Job Title

Phone Number

Email Address

Authorized
Person1

DesignatedSpokesperson2

1	An Authorized Person shall be defined as an authorized representative who shall have the authority to make membership and/or incentive program related
decisions on behalf of the firm including, but not limited to, applying, changing, or withdrawing membership and/or incentive program status, request to
deposit or withdraw required seats and/or shares and the buying, selling, releasing or transferring of seats and shares. In addition, an Authorized Person shallhave the same authority as the Designated Spokesperson noted below.
2	Designated Spokesperson(s) shall be defined as an authorized representative whereby CME Group, at its sole discretion, may provide or discuss any
membership and/or incentive program related information specific to the firm.

Clearing Membership Application Form – July 201918

I attest that the information provided above is accurate and complete. This form shall supersede any previously submitted
Designated Spokesperson and Authorized Person Form.

Signed: (on behalf of the applicant*)

Name (Printed)

PositionDate* Authorized Officer, Managing Member of an LLC or Partner. Signor should also be designated as an Authorized Person above. In addition, any individual who hassigned an attestation or any form within this application must also be listed and qualify as an Authorized Person in this section.

Clearing Membership Application Form – July 201919

Access for CME Group Inc.’s Firm Contact System (“FCS”)
Please designate an individual as the FCS administrator who will be responsible for reviewing your organization’s personnel
contact data. This data will be maintained on the CME’s Firm Contact System and must be verified periodically.
Name		

Title

E-Mail		

Portal ID*

Phone(Optional 2nd Administrator)
Name		

Title

E-Mail		

Portal ID*

Phone*If the administrator does not already have a CME Group Login ID, please go to https://login.cmegroup.com/sso/register/to create a CME Group Login ID. If further assistance is needed in creating the login ID, please contact CME Group’s EASE area
at 312-456-1560 or EASE.AtYourService@cmegroup.com

Clearing Membership Application Form – July 201920

Suggested Template For Question #12.G.

Brief Description

Amount of Fine
(if settled)

Date of Payment
and/or Date ofDecision

Potential Loss
(if not settled)

Clearing Membership Application Form – July 201921

Complete the following contact list for your organization. (Two phone numbers MUST be listed for each contact.)

Chief Executive Officer
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Chief Financial Officer
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Chief Operating Officer
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Chief Risk Officer
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Clearing Membership Application Form – July 201922

Chief Compliance Officer
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

1-FR/FOCUS/Financial Statement Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Audit /Joint Audit Committee Mailings Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Back Office Manager
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Clearing Membership Application Form – July 201923

Brokerage Payment System Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Clearing / Trade Processing Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Business Continuity Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

CME Group Main Contact - FRSName		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Clearing Membership Application Form – July 201924

Overnight Risk Management
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

WinJammer Statement Notifications
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

OTC Trade Amend Approver (Cust)
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

OTC Trade Amend Approver (House)
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Clearing Membership Application Form – July 201925

Financial Emergency Contact (1)Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Financial Emergency Contact (2)Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Treasurer
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Primary Operational Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Clearing Membership Application Form – July 201926

Collateral Management Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)Controller
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Deliveries Operations Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Designated Spokesperson
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Clearing Membership Application Form – July 201927

Exchange Fee System Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Give-Up Payment System Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Interest Earning Facility Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

IT Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Clearing Membership Application Form – July 201928

Legal Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

New Firm Approvals Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Overnight Risk Management Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Semi-Annual Contact Update Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Clearing Membership Application Form – July 2019

29

SPAN / Margin Contact
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

Credit/Risk Manager
Name		

Title

Office Phone

Fax			

Home Phone

Mobile

E-Mail 		Address (if different than main)

IF24001/0424

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