Clearing Membership
Handbook

Table of Contents
1.

Introduction

2.

General Requirements

3.

Membership Requirements

4.

Capital and Financial Requirements

5.

Cleared OTC Derivatives

6.

Financial Reporting, Notification and Other Requirements

7.

Cross-Guarantee, Guarantee of Obligations and Guaranty Fund Guarantee

8.

Letters of Credit

9.

Clearing Fees, GPS™, BPS™ and CME® Globex® and Trading Floor
Customer Service

10.

Contact Listing and Resource Guide

Exhibits
A.

Agency Agreement

B.

Clearing Member-Membership Assignment Agreement and Clearing Member-Class A
Shares Assignment Agreement

C.

Indemnification Acknowledging Ownership or Assignment of Membership

D.

Settlement and Customer Account Listing and Debit Authorization FormE.

Cross-Guarantee Agreement

F.

Guarantee of Obligations to CMEG.

Guaranty Fund Deposit Guarantee of ObligationsH.

Fee Policy Bulletin #09-01: Clearing and Globex Fees for Member Firm Accounts

I.

Clearing Member Firm Trading Attestation – CME Clearing Member Firm Sample

J.

Authorization Agreement for Pre-Authorized Payments

K.

GPS™ Clearing Member Agreement and Participation Form

L.

Online System Access Request Form and CME Firm MQM Definition Request FormM.

BPS™ System Clearing Member Participation FormN.

Secretary’s Certificate

O.

Designated Spokesperson FormP.

Tax Forms: W-9 and W-8BEN
April 2023

Summary
This handbook is designed to familiarize firms with the requirements for clearing membershipand to assist them in becoming clearing members.
The use of the term “clearing member” in the handbook includes all clearing members of CME,
CBOT, NYMEX and COMEX. Thus, unless specifically stated otherwise, wherein a rule and/or
requirement states clearing member, such rule and/or requirement applies to clearing membersof all four exchanges.
The handbook supplements and clarifies the rules for clearing members as adopted in CME,
CBOT and NYMEX Rulebooks. This handbook is compiled for the convenience of the user andis furnished without responsibility for any errors or omissions contained therein. In the event of
a conflict between this Handbook and the applicable Exchange’s rules, the Exchange’s rules
shall control.

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Clearing Membership
Introduction
CME Clearing (“Clearing House”) is the clearing house division of Chicago Mercantile ExchangeInc. (“CME”), a Delaware corporation, which is wholly owned by CME Group Inc. (“CME Group”), a
publicly traded Delaware corporation. CME Group was formed by the merger of Chicago
Mercantile Exchange Holdings Inc. and CBOT Holdings, Inc. in 2007, and subsequently mergedwith NYMEX Holdings, Inc. in 2008. CME Group is the ultimate parent of: (1) CME; (2) Board ofTrade of the City of Chicago, Inc. (“CBOT”); (3) New York Mercantile Exchange, Inc. (“NYMEX”);
and (4) Commodity Exchange, Inc. (“COMEX”).
Exchange-traded futures and options are listed by CME Group Designated Contract Markets(“DCM”) and cleared by the Clearing House, CME Group’s Derivatives Clearing Organization(“DCO”). In addition, CME Group’s DCO provides clearing services for over-the-counter (“OTC”)
derivatives. If a clearing member will only clear OTC derivatives, it should consider an OTC
Derivatives Clearing Membership. While this manual generally applies to clearing members which
will clear exchange-traded futures and options, a summary of the requirements for clearing
members which will also clear OTC derivative products is located in Chapter 5.
Clearing membership in CME, CBOT, NYMEX and/or COMEX (hereafter referred to individually as“Exchange” and collectively as “Exchanges”) is a privilege granted by the Clearing House
Oversight Committee of CME. Clearing members assume full financial and performance responsibility for all transactions executed through them and cleared by the Clearing House. They are
responsible and accountable for every position they carry, whether it is for the account of amember, non-member customer or their own account.
A clearing member is an elected member in the Clearing House. The Clearing House is a divisionof CME through which all trades are confirmed, matched and settled on a daily basis until either
offset or delivered and through which all financial settlement is made. In every matchedtransaction executed through the Clearing House’s facilities, the Clearing House is substituted as
the buyer to the seller and the seller to the buyer, with a clearing member assuming the opposite
side of each transaction.
The Clearing House conducts business only with its clearing members, not with their customers orindividual members of the Exchanges. As the contra-side to every position, the Clearing House isheld accountable to clearing members for performance on all open positions. The Clearing House,by monitoring and overseeing its clearing members, guarantees performance on each contract toprotect both buyers and sellers from financial loss.
Each of the Exchanges offers separate and distinct clearing membership options as follows:
CME
x
x
x

Clearing Member
Clearing Member - Bank
Clearing Member – Hedge FundCBOT
x Clearing FCM
x Clearing Member - Bankx Clearing Member – Hedge Fundx Clearing Corporate Member – May not be an FCM or Hedge Fund
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Clearing Membership
Introduction

NYMEX
x Clearing Member
x Clearing Member - Bankx Clearing Member – Hedge FundCOMEX
x Clearing Member
x Clearing Member - Bankx Clearing Member – Hedge Fund
Clearing members are not required to clear or carry positions directly with the Clearing House. A
firm may be approved as a clearing member and not actively clear its positions with the Clearing
House. These clearing members who do not actively clear have all the rights and responsibilities
as all other (active) clearing members; however, they do not clear or carry positions directly with
the Clearing House or qualify traders on the Exchanges’ trading floors.
Clearing Membership Application Process
Clearing member applicants who wish to clear their Exchange trading activity with the Clearing
House must complete the following:
Non-Hedge Fund Applicants:
Application for Clearing Membership can be found on CME Group’s Web site at:
http://www.cmegroup.com/company/membership/files/application-and-clearing-agreementwriteable.pdf
Hedge Fund Applicants:
All hedge fund clearing member applicants must complete the Application for Clearing
Membership – Hedge Fund Information. This can be found on CME’s Web site at:https://www.cmegroup.com/company/membership/files/corporate-membership-application-hedge-fund.pdf

The application must be submitted with the organizational chart, constitutional documents,
prospectus, offering documents, investment management agreements, investment advisor
agreements, partnership or limited liability company operating agreements, and any otherrelevant agreements for each fund requesting approval under CBOT Rule 106.S. or CME Rule106.S. in addition to the clearing member. Hedge fund applicants which are structured as“master-feeders” are required to submit all required documentation for the master fund as well
as all feeder funds (U.S. and non-U.S.) with the application.
Exchanges’ Rule 911 (Screening Procedures) requires the Exchange membership community
be notified of all applicants for clearing membership for a 20-day period (i.e., the “20-day posting
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Clearing Membership
Introduction
period”). Clearing membership applicants are posted to the membership on the Monday
following receipt of a completed clearing membership application.
Once all requirements of membership have been met, or exemptions granted, the clearing
applicant is presented to the Clearing House Risk Committee for review and feedback. The
clearing applicant and any CHRC feedback is then taken to the Clearing House OversightCommittee for review and approval. If approved and all applicable requirements have beenmet, the approval of the clearing member may become effective.
To be effective as a clearing member, all conditions and requirements of membership must be
satisfied and the 20-day posting period must have expired.
OTC Derivatives Clearing Membership
OTC Derivative Clearing Members are eligible to clear OTC derivative products only and mustmeet all requirements for the clearing of a particular OTC derivative contract (i.e. operational,
capital and risk management requirements). An OTC Derivatives Clearing Member is a memberof the Clearing House and it is afforded full rights and privileges to clear for its own account, andon behalf of customers if it is properly registered as an FCM, transactions in OTC derivative
products. OTC Derivatives Clearing Members are not entitled to clear products other than OTC
derivative products.
For additional information on OTC Derivatives Clearing Membership, please refer to Chapter 5of this Handbook.

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Clearing Membership
General Requirements
Exchanges’ Rule 901. (General Requirements and Obligations) states the general requirements
which must be satisfied to become a clearing member of the Exchange. Significant clearing
membership requirements are outlined in other sections of this handbook. The general
requirements for clearing membership include but are not limited to the following:
1. A clearing member must be a corporation (including a C Corporation, Subchapter S
Corporation or Limited Liability Company), partnership (including a Limited Partnership orGeneral Partnership) or cooperative association. The articles of incorporation, operating
agreement, or partnership agreement (and all sub-agreements) shall be submitted with aclearing applicant’s application.
2. A clearing member shall agree to (a) abide by all Exchange Rules and to cooperate in theirenforcement; (b) be responsible even after it has withdrawn as a clearing member, for any
violations of Exchange Rules committed by it while it was a clearing member; and (c)continue to meet all requirements applicable to clearing members, including all financial
requirements.
3. A clearing member shall have an authorized representative satisfactory to the Clearing
House Risk Committee who shall represent the clearing member before the Exchanges
and its committees.
4. A clearing member shall be qualified to do business in the State of Illinois or the State of
New York or have an agency agreement in place with an entity already qualified in theState of Illinois or the State of New York. Such agency agreement must be in an Exchange
approved format. Refer to Exhibit A.
This requirement provides a place for service of process and other communications inconnection with the business of the clearing member.
5. A clearing member shall be engaged in or demonstrate immediate capacity to engage inthe conduct of the business of a clearing member. A clearing member applicant is
responsible to ensure that any and all necessary approvals have been received from
regulatory authorities to allow the firm to conduct the business of a clearing member.
6. A clearing member shall demonstrate such fiscal and moral integrity as would justify the
Clearing House’s assumption of the risks inherent in clearing its trades.
7. A clearing member shall guarantee and assume complete financial responsibility for all
trading activity routed through a Globex portal or routed through any other electronic trading
system to CME via any connection, terminal, link, telecommunications hub or handheld unit
as well as any other applicable electronic trading systems and terminals that the clearing
member provides to a third party to enter orders.
8. It shall be responsible for the acts of Globex terminal operators accessing the Globex
system through its connections, including direct connections.

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9. A clearing member shall agree to guarantee and assume complete responsibility for trades
executed on Marketplaces for which the Exchange provides clearing services.
10. A clearing member shall comply with all credit control policies developed by the Exchange
for customer and proprietary transactions. Such credit control policies may include, but not
be limited to, registration of credit control administrators with the Exchange, definition of
credit control limits, and maintenance of written procedures verifying compliance with
Exchange credit control requirements. Any credit control functionality required by the
Exchange shall be in addition to a clearing member’s initial risk monitoring and credit
control procedures. Refer to Rule 949 (Credit Controls).
Exchanges’ Rule 905. (Choice of Law) states, in summary, the Rules of the Exchanges shall begoverned by and construed in accordance with the laws of the State of Illinois. Any action,
claim, dispute or litigation of any kind between the Clearing Member and the Exchanges shallbe adjudicated in a federal or state court in Chicago, Illinois. Clearing Members consent to thejurisdiction of such court and to service of process by any means authorized by Illinois or U.S.
federal law and waive the right to transfer the venue of such litigation. In addition, the ruleprovides that clearing members irrevocably waive any grounds of sovereign immunity in any
legal action with the Exchanges.
Clearing membership in the Exchanges’ Clearing House is granted by the Clearing House
Oversight Committee and may be withdrawn for cause at any time.
Clearing Members in Non-U.S. Jurisdictions
Clearing members that are incorporated/domiciled in non-U.S. jurisdictions must be subject to alegal and insolvency regime acceptable to the Clearing House. Clearing members from non-U.S.
jurisdictions must use approved Clearing House settlement banks for performance bond deposits
and variation margin.
(See http://www.cmegroup.com/clearing/financial-and-collateralmanagement/settlement-banks.html for a complete listing.)
Hedge Fund Clearing Members
Clearing Members which are hedge funds are subject to additional clearing membership
requirements including:xxx

Establishing separate clearing accounts for each fund whose activity is being cleared by
the Hedge Fund Clearing Member.
Minimum assets under management of $1 Billion for the investment manager.
Additional reporting of risk exposures and liquidity resources of the Hedge Fund Clearing
Member and all affiliated funds for which it clears.

In addition, if the Hedge Fund Clearing Member will clear activity for related funds, it must be
registered as an FCM unless the related funds qualify as noncustomer or proprietary accounts
as defined in CFTC Regulation 1.3 Proprietary Account.
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Clearing Members who are Facilities Managed
A clearing member may determine that it is not cost-effective to establish a back-office operation.
Clearing members may enter into "facilities management" agreements with other clearing
members or service providers to reduce their costs associated with doing business on the
Exchanges. Under such an agreement, the clearing member clears its trades with the Clearing
House; however, another clearing member (facilitator) performs trade processing and/or manages
the bookkeeping (service bureau) functions.
Typically, facilities management agreements are entered into between two clearing members forthe purpose of doing some or all of the clearing member’s back office/clearing operations. For
example, if a clearing member’s trade processing is conducted through another firm's back office,the clearing member defrays the cost of setting up a back office and hiring personnel to perform
trade processing. The financial terms of the arrangement are private, but the agreement may beviewed by Exchange staff members during the application process. However, the Exchange will
always look to the clearing member clearing the trades (i.e., not the firm processing the trades) inthe event there is a late submission or other problems associated with the clearing member’s trade
processing. A clearing member may not contract out its responsibility to guarantee its trades orfollow correct processing procedures.
If a clearing member enters into a facilities management agreement, it must always have a senior
officer, director, or partner of the clearing member available to represent the clearing member
before the Exchanges and their committees.
Clearing Members and Give Up System Agreements
Likewise, a clearing member may determine that it is not cost-effective to establish its own floor
presence. The Give-Up Payment System (GPS) may be used by a clearing member that does notwant to establish a floor operation. Essentially, one clearing member agrees to be responsible forthe execution of another clearing member’s trades on the floor and the resulting positions are thenentered into GPS for transfer, acceptance, and clearing by the clearing member. (Additional
https://www.cmegroup.com/clearing/operations-andinformation
may
be
found
at:
deliveries/payment-systems.html and the Clearing Member Agreement and Participation Form may
be found at: https://www.cmegroup.com/clearing/files/gps_agreement.pdf)

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Clearing Membership
Membership Requirements

Assignment Requirements
Pursuant to Rule 902 (Clearing Membership Assignment Requirements), all assigned
memberships, including firm owned and independent assignments, are pledged to the Clearing
House as security for a clearing member’s obligations. Assigned memberships may be sold by the
Clearing House in the event of insolvency of a clearing member. The proceeds of such sale will be
used to fulfill the obligations of the clearing member.
CME Rule 902.A. (Assignment Requirement) requires all clearing members to have at least two
CME memberships, at least two IMM memberships, at least two IOM memberships and at least
one GEM membership assigned to the clearing member.
A higher division membership may be substituted for a lower division membership to satisfy theassignment requirements. That is, one CME membership may be substituted for any othermembership; an IMM membership may be substituted for an IOM membership or a GEM
membership; and an IOM membership may be substituted for a GEM membership.
At least one CME, one IMM, one IOM and one GEM membership required for clearing
membership privileges must be owned by the clearing member or a person, including parent
company, with an acceptable proprietary interest in the clearing member. An acceptable
proprietary interest is defined as at least a $500,000 interest in the clearing member and includes
the person’s interest in the ownership equity of the clearing member plus the person’s
subordinated debt to the clearing member. Voting rights are not considered when determining anowner’s proprietary interest. If the memberships to be assigned are jointly owned, all owners musthave an acceptable proprietary interest in the clearing member. The remaining memberships
necessary for clearing membership may be independently assigned.
A CBOT Clearing FCM must have at least two Full memberships assigned to the Clearing House
while all other CBOT Clearing Corporate Members must have at least one Full membershipassigned to the Clearing House. Pursuant to CBOT Rule 902, at least one Full membership
required for clearing membership pursuant to this Rule must be owned by the clearing member
or a person, including a parent company, with an acceptable proprietary interest in such clearing
member. An acceptable proprietary interest is defined as at least a $500,000 interest in theclearing member and includes the person’s interest in the ownership equity of the clearing member
plus the person’s subordinated debt to the clearing member. Voting rights are not considered when
determining an owner’s proprietary interest. If the membership or shares to be assigned are jointly
owned, all owners must have an acceptable proprietary interest in the clearing member. If two Fullmemberships are required for clearing membership, one of those memberships may be
independently assigned.
NYMEX clearing members must have two NYMEX memberships assigned to the Clearing House.
NYMEX Rule 902 requires 50% of assigned memberships required for NYMEX clearing
membership must be owned by the clearing member or by a person, including parent company,
with an acceptable proprietary interest in the clearing member. The remaining membership may be
independently assigned by any person. An acceptable proprietary interest is defined as at least a
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Clearing Membership
Membership Requirements$500,000 interest in the clearing member and includes the person’s interest in the ownership equityof the clearing member plus the person’s subordinated debt to the clearing member. Voting rights
are not considered when determining an owner’s proprietary interest. If the memberships to be
assigned are jointly owned, all owners must have an acceptable proprietary interest in the clearing
member. The remaining membership necessary for clearing membership may be independently
assigned.
COMEX clearing members must have two COMEX memberships assigned to the Clearing House.
50% of assigned memberships required for COMEX clearing membership must be owned by theclearing member or by a person, including parent company, with an acceptable proprietary interestin the clearing member. The remaining membership may be independently assigned by any
person. An acceptable proprietary interest is defined as at least a $500,000 interest in the clearing
member and includes the person’s interest in the ownership equity of the clearing member plus the
person’s subordinated debt to the clearing member. Voting rights are not considered when
determining an owner’s proprietary interest. If the membership to be assigned is jointly owned, allowners must have an acceptable proprietary interest in the clearing member. The remaining
membership necessary for clearing membership may be independently assigned.
Assignment of Memberships
Memberships may only, at any time, be assigned to a single clearing member. Owners andmembers may assign memberships to an applicant for clearing membership. At the time of andduring assignment, the memberships must be unencumbered and may not be subject to any
Exchanges’ Rule 110 (Claims Against Membership, Application of Proceeds) claims. An
Authorization to Sell or to Transfer or Sell - Rule 106.A.-B. Security Transaction cannot be on filefor a membership which is assigned for clearing membership privileges.
A member on an assigned membership need not be qualified by the clearing member for whom
the membership is assigned. Such member on an assigned membership may be qualified by any
clearing member except a clearing member that is not actively clearing. To qualify traders, aclearing member must have established systems in place for trade submission, risk management,
clearing and settlement/banking with the Clearing House. A qualifying clearing member should
know if a member it qualifies for trading privileges has assigned their membership to anotherclearing member. Likewise, a clearing member should know who the qualifying clearing member isfor members on memberships assigned for its clearing membership privileges.
Assigned memberships may be transferred in accordance with Exchanges’ Rule 106.C. (Family
Transfers) and Exchanges’ Rule 106.F. (Clearing Member). Note: For an Exchange Rule 106.F.
transfer of an individually owned membership, the owner transferring the membership must havean acceptable proprietary interest of $500,000 or more in the clearing member. The $500,000
proprietary interest requirement does not apply to firm owned memberships.
Assigned memberships may not be leased out under Exchanges’ Rule 106.D. (Futures Industry
Transfers). However, excess memberships owned by the clearing member which are not assigned
may be leased out under the respective Exchange Rule 106.D.
An individual member may assign his membership without trading restrictions on his own individual
trading activity.
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Membership Requirements
Memberships must be assigned on Exchange-prescribed forms. Refer to Exhibit B. Upon
submitting an assignment form to the Membership Services Department, the newly assigned
membership shall be posted to the Exchange membership for ten days. After all Exchange Rule110 (Claims Against Membership, Application of Proceeds) claims have been resolved to thesatisfaction of the Exchange, the membership shall be assigned to the clearing member.
A clearing member may substitute other memberships for assigned memberships provided that theclearing member continues, at all times, to meet the assignment requirements of the Exchanges.
If a membership assignment is not necessary for the clearing member to meet its assignment
requirements (e.g., the clearing member maintains more than the required number of memberships
necessary under Exchange rules), a request to withdraw such assignment is effective upon receipt.
Further, if an owner of memberships wishes to withdraw his assigned memberships over theobjection of the clearing member to which they are pledged, the owner must request permission to
do so from the Membership Services Department. The request must be in writing with a copy
delivered to the clearing member to which the memberships are assigned. The Membership
Services Department may grant such requests under conditions that do not jeopardize the financial
integrity of the Clearing House.
In the event a clearing member has a valid claim against a member that it qualifies, and themember’s membership is assigned to another clearing member, the clearing member utilizing themembership for assignment shall have 10 business days to substitute another membership to fulfill
the assignment requirements of Exchange Rule 902. Such substitution shall be required to protect
the financial integrity of the Clearing House.
Note: In order for a member to utilize a previously assigned membership (i.e., use the membershipto trade at a new qualifying clearing member) which is currently subject to a 60-day posting period
for a withdrawing clearing member, the member’s new qualifying clearing member must execute
an Indemnification of Transfer agreement. Such acknowledgment provides that the claims of the
new qualifying clearing member to the membership are subordinate to the claims that may beplaced against the previously assigned membership or the previously assigned clearing member.
Refer
to
ExhibitC(A
DocuSign
versionmay
belocatedat:https://powerforms.docusign.net/d55e01d9-68f3-4e66-97bf0ee9230cbb08?env=na2&acct=791512ab-28e7-4259-b378-741638926b9b&accountId=791512ab28e7-4259-b378-741638926b9b ) .
Shares and Fees
With regards to trades made for the benefit of the Clearing Member itself (i.e. “proprietary trades”),
CME and CBOT Clearing Members receive fees in conjunction with CME Rule 106.H. Trading
Member Firm and CBOT Rule 106.H. Trading Member Firm respectively. NYMEX Clearing
Members receive non-member fees. COMEX Clearing Members receive COMEX Rule 106.J.
Member Firm fees. Clearing Members with shares are those clearing members that also maintain
CME Group Class A Shares in accordance with CME Rule 106.J. Equity Member Firm, CBOT
Rule 106.J. Equity Member Firm and/or NYMEX Rule 106.J. Member Firm requirements. In lieu of
CME Group shares, the firm may choose to participate in the Equity Member Subscription Rate
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CME Clearing Membership
Membership Requirements
Program.
See https://www.cmegroup.com/company/membership/equity-member-subscriptionrate-program.html for details.
Note: In all cases in the remaining sections of this chapter, a “clearing member withshares” shall include clearing members meeting the share requirement under the Equity
Member Subscription Rate Program.
Rule 106.I. Affiliate Member Firms
CME Rule 106.I. Affiliate Member Firm
A membership under CME Rule 106.I. allows all non-member firms that either own, directly or
indirectly, 100% of a clearing member with shares or that have 100% ownership, direct orindirect, in common with a firm that owns, directly or indirectly, 100% of a clearing member withshares, to receive member clearing fees and performance bond rates on the proprietary tradingof such firms within the division of membership held.
Under this rule, a CME, IMM or IOM membership may be owned by the clearing member withshares or any firm that either owns, directly or indirectly, 100% of the clearing member withshares or that has 100% ownership, direct or indirect, in common with a firm that owns, directly
or indirectly, 100% of the clearing member with shares (“related parties”). The membership
required for CME Rule 106.I. maybe owned by the clearing member with shares or any of its
affiliates and is in addition to the memberships assigned for the clearing member with shares
clearing membership privileges. A membership held under CME Rule 106.I. cannot be
assigned for clearing membership privileges.
If the CME Rule 106.I. member elects to have an individual placed on its CME, IMM or IOM
membership, the individual must be an employee or officer of the clearing member with sharesor any of its 100% related parties and must be approved for individual membership by theMembership Services Department.
The proprietary positions of the clearing member with shares and its 100% related parties
receiving equity member clearing fees must be carried separately from other accounts on thebooks of a clearing member. Organizational charts must be maintained demonstratingownership of all related parties receiving equity member clearing fees.
The clearing member with shares or its affiliate must complete an Application for Corporate
Membership CME Rule 106.I. Affiliate Member Firm Agreement for Membership and submit it to
CME Group’s Concierge Department for approval by the FRS Department as a CME Rule 106.I.
firm. The application is located on CME Group’s Web site at:https://www.cmegroup.com/company/membership/files/corporate-membership-application-nonhedge-fund.pdf
CBOT Rule 106.I. Affiliate Member Firm – Equity
A membership under CBOT Rule 106.I. allows an entity that is not a pool or a hedge fund, but
is owned by the clearing member or any firm that either owns, directly or indirectly, 100% of the
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CME Clearing Membership
Membership Requirements
clearing member or that has 100% ownership, direct or indirect, in common with a firm thatowns, directly or indirectly, 100% of the clearing member (“related parties”) to receive member
clearing fees and performance bond rates on the proprietary trading of such firms within thedivision of membership held.
Under this rule, either one CBOT Full + 20,000 Class A shares or one Associate Membership +8,750 Class A shares may be owned by the clearing member, a related party, or an employee
or principal of the clearing member or affiliated applicant. The memberships and sharesrequired for CBOT Rule 106.I. is per affiliate and is in addition to the memberships assigned forthe clearing member’s clearing membership privileges. The memberships and shares held
under CBOT Rule 106.I. Affiliate Member Firm – Equity cannot also be assigned for clearing
membership privileges.
If the CBOT Rule 106.I. member elects to have an individual placed on its Full or Associate
Membership, the individual must be an employee or officer of the clearing member or its
affiliated applicant and must be approved for individual membership by the Membership
Services Department.
The proprietary positions of the clearing member and its Exchange approved CBOT Rule 106.I.
Affiliate Member Firm – Equity receiving equity member clearing fees must be carried
separately from other accounts on the books of a clearing member. Organizational charts must
be maintained demonstrating ownership of all related parties.
The affiliate must complete the following found on CME Group’s Web site:
Application for Corporate Membership Form:
https://www.cmegroup.com/company/membership/files/corporate-membership-application-nonhedge-fund.pdf
Completed forms must be submitted to CME Group’s Concierge Department for approval by the
FRS Department as a CBOT Rule 106.I. firm.
CBOT Rule 106.I. Affiliate Member Firm – Trading
A membership under CBOT Rule 106.I. allows an entity that is not a pool or a hedge fund, but isowned by the clearing member or any firm that either owns, directly or indirectly, 100% of theclearing member or that has 100% ownership, direct or indirect, in common with a firm thatowns, directly or indirectly, 100% of the clearing member (“related parties”) to receiving trading
member clearing fees and performance bond rates on the proprietary trading of such firms
within the division of membership held.
Under this rule, either: one CBOT Full, one CBOT Associate Membership, one CBOT IDEM or
one CBOT COM may be owned or leased by the clearing member or any related party or an
employee or principal of the clearing member or affiliated applicant. The membership required
for CBOT Rule 106.I. is per affiliate and is in addition to the memberships assigned for theclearing member’s clearing membership privileges. The memberships held under CBOT Rule
106.I. Affiliate Member Firm – Trading cannot also be registered for clearing membershipprivileges.
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If the CBOT Rule 106.I. member elects to have an individual placed on its Full, Associate, IDEM
or COM Membership, the individual must be an employee or officer of the clearing member or
its affiliated applicant and must be approved for individual membership by the Membership
Services Department.
The proprietary positions of the CBOT Rule 106.I. Affiliate Member Firm – Trading receive
trading member clearing fees and must be carried separately from other accounts on the booksof a clearing member. Organizational charts must be maintained demonstrating ownership of all
related parties.
The affiliate must complete the following form found on CME Group’s Web site:
Application for Corporate Membership Form:
https://www.cmegroup.com/company/membership/files/corporate-membership-application-nonhedge-fund.pdf
Completed forms must be submitted to CME Group’s Concierge Department for approval by the
FRS Department as a CBOT Rule 106.I. firm.
CBOT Rule 106.I. Affiliate Member Firm - Umbrella
A membership under CBOT Rule 106.I. Affiliate Member Firm – Umbrella allows all firms thateither own, directly or indirectly, 100% of the clearing member with shares or that has 100%
ownership, direct or indirect, in common with a firm that owns, directly or indirectly, 100% of theclearing member with shares (“related parties”) to receive clearing member fees andperformance bond rates on the proprietary trading of such firms. Under this rule, four Fullmemberships, two Associate memberships and 20,000 CME Group shares or five Fullmemberships and 20,000 CME Group shares (Agricultural only) may be owned by the clearing
member with shares or a related party. A CBOT clearing member with shares which qualifies for
the CBOT membership umbrella may qualify an unlimited number of affiliates, but the qualified
affiliates must apply and be registered with the Exchange. The memberships and CME Group
shares required to qualify for the CBOT membership umbrella include the memberships
required for the CBOT clearing member, including any independent assignments.
Each affiliate must complete the following form found on CME Group’s Web site:
Application for Corporate Membership:https://www.cmegroup.com/company/membership/files/corporate-membership-application-nonhedge-fund.pdf
Completed forms must be submitted to CME Group’s Concierge Department for approval by the
FRS Department as a CBOT Rule 106.I. Qualified Affiliate.
CME Rule 106.S. Family of Funds Member Firm
CME clearing members with shares that are hedge funds are generally not owned in the
traditional sense by a parent company and, as such, related funds do not meet the ownership
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April 2023

CME Clearing Membership
Membership Requirements
requirement of Rule 106.I. (Affiliate Member Firm). CME Rule 106.S. (Family of Funds MemberFirm) allows a family of funds that is managed by a fund management company to receive
equity member clearing fee rates without the need for each fund in the family to become a CME
Member.
One fund in the family of funds or the fund management company must become a CME
Clearing Member with shares. If the fund management company becomes the CME Clearing
Member with shares, it must designate one fund in the family of funds to receive the equity
member clearing fee rates. Under CME Rule 106.S., up to five additional funds within the familyof funds are eligible for equity member clearing fee rates for each additional membershippurchased. The five additional funds in a family may receive equity member clearing fee rates
on the proprietary trading of the funds within the division of membership owned under Rule106.S. The CME Clearing Member with shares will, of course, receive equity member clearing
fee rates on all CME products.
To be eligible for CME Rule 106.S. membership, the following criteria must be met:xxxx

Each fund in the family of funds must be approved by the Exchange;
The accounts must be held by a clearing member(s) in the name of the approved fund;
Any fund or the fund management company may hold the 106.S. membership; and,The fund management company must agree to submit to Exchange regulatory
jurisdiction.

Only true funds in the family, not managed accounts, qualify for preferential clearing fee rates
under CME Rule 106.S.
Under CME Rule 106.S., a CME, IMM or IOM membership may be owned by the clearing
member with shares, any fund in the family or the fund management company. Regardless ofwhich entity owns the membership, the fund management company is designated as the CME
Rule 106.S. member. The membership required for CME Rule 106.S. is in addition to thememberships assigned for the CME Clearing Member with share’s membership privileges. A
membership held under CME Rule 106.S. cannot be assigned for clearing or corporate
membership privileges. Class A shares are not required for CME Rule 106.S. membership.
If the CME Rule 106.S. member elects to have an individual placed on its CME, IMM or IOM
membership, the individual must be an employee or officer of the CME Clearing Member withshares, the fund management company or a fund that is part of the family of funds. In addition,
the member must be approved for individual membership by the Membership Services
Department.
The proprietary positions of CME Clearing Member with shares and each of the approved funds
within the family that receive equity member clearing fee rates must be carried separately on thebooks of a clearing member. Organizational charts must be maintained demonstratingownership/organization of all entities, including feeder/master funds, the investment manager
and other management companies.
The fund management company must complete a CME Application for Corporate Membership –CME Rule 106.S. Family of Funds Member Firm Hedge Fund Agreement for Membership and
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April 2023

CME Clearing Membership
Membership Requirements
submit it to CME’s Concierge Department for approval by the FRS Department. The application
is located on CME’s Web site at:https://www.cmegroup.com/company/membership/files/corporate-membership-applicationhedge-fund.pdf

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April 2023

Clearing Membership
Capital and Financial Requirements
Capital Requirements
Clearing members are responsible for monitoring their capital and to ensure continued compliancewith the Exchanges’ capital requirements. Capital requirements for clearing members which are
not Banks are specific to its exchange membership privileges and, if applicable, any OTC
products that it will clear. For non-Bank clearing members, capital is defined as Adjusted Net
Capital as computed in accordance with CFTC Regulation 1.17. For Bank clearing members,
capital is defined as Tier I Capital, as defined in accordance with regulations applicable to the
Bank clearing member.
For a CME Clearing Member, the exchange capital requirement is the greater of the CFTC or
SEC capital requirement or:
For a non-Bank clearing member:
x $5,000,000 if it will clear only exchange-traded futures/options; or,x $50,000,000 if a clearing member will clear any OTC derivative product, including, but notlimited to, FX OTC, or IRS; or,x 20% of aggregate performance bond requirement for all customer and house accounts
containing CME-cleared IRS positions.
For a Bank clearing member:
x $5,000,000,000 if it will clear exchange-traded futures/options; or,x $50,000,000 if it will clear only OTC derivative products, including, but not limited to, FX
OTC, or IRS; orx 20% of aggregate performance bond requirement for all proprietary and affiliate accounts
containing CME-cleared IRS positions.
For a CBOT Clearing Member, the exchange capital requirement is the greater of the CFTC or
SEC capital requirement or:
For a non-Bank clearing member:
x $5,000,000 if it will clear exchange-traded futures/options or agricultural OTC derivative
products; or,x $50,000,000 if it will clear any OTC derivative products excluding agricultural OTC
derivatives.
For a Bank clearing member:
x $5,000,000,000 if it will clear exchange-traded futures/options; or,x $50,000,000 if it will clear only OTC derivative products, including, but not limited to,
agricultural OTC derivative products.

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Clearing Membership
Capital and Financial Requirements

For a NYMEX Clearing Member, the exchange capital requirement is the greater of the CFTC or
SEC capital requirement or:
For a non-Bank clearing member:
x $5,000,000 if it will clear only exchange-traded futures/options; or,x $50,000,000 if it will clear any OTC derivative products, including, but not limited to energy
OTC derivative products.
For a Bank clearing member:
x $5,000,000,000 if it will clear exchange-traded futures/options; or,x $50,000,000 if it will clear only OTC derivative products, including, but not limited to energy
OTC derivative products.
For a COMEX Clearing Member, the exchange capital requirement is the greater of the CFTC or
SEC capital requirement or:
For a non-Bank clearing member:
x $5,000,000 if it will clear only exchange-traded futures/options; or,x $50,000,000 if it will clear any OTC derivative products, including, but not limited to metal
OTC derivative products.
For a Bank clearing member:
x $5,000,000,000 if it will clear exchange-traded futures/options; orx $50,000,000 if it will clear only OTC derivative products, including, but not limited to, metal
OTC derivative products.
For reference, the following product link may be helpful:
http://www.cmegroup.com/trading/products/#pageNumber=1&sortField=oi&sortAsc=false
Refer to Chapter 5 – Cleared OTC Derivatives for additional information for clearing members
trading OTC derivatives.
The Clearing House Risk Committee(s) or Clearing House Oversight Committee may prescribe
additional financial and capital requirements and grant exemptions.
CFTC’s Minimum Regulatory Capital Requirement
The CFTC’s regulatory minimum capital requirement is computed as 8% of domestic and foreign
domiciled customer plus 8% of noncustomer (excluding proprietary) risk maintenanceperformance bond requirements for all domestic, foreign futures and options on futures contracts
and cleared swaps (see Chapter 5) excluding the risk margin associated with naked long option
positions.

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April 2023

Clearing Membership
Capital and Financial Requirements
The Exchanges impose a risk-based capital requirement, identical to the CFTC’s regulatory
minimum capital requirement, on all clearing members, including non-FCMs.
The CFTC’s minimum regulatory capital requirement includes all customer and noncustomer
commodity accounts posing risk to the clearing member; that is, all domestic and foreign
domiciled accounts and their positions. Further, the risks of positions being carried by a firm arebest quantified by Exchange determined risk performance bond requirements. For Exchange
traded futures/options and various OTC products, risk maintenance performance bondrequirements are generated (for all domestic futures exchanges and numerous futures exchanges
worldwide) from the Standard Portfolio Analysis of Risk® performance bond system (SPAN®). The
SPAN performance bond system is a risk-based, portfolio performance bond system used tocompute minimum performance bond requirements for all futures and options positions. For
CME IRS and FX OTC products, the Historical Value at Risk (“HVaR”) methodology is applied. In
HVaR, past events are used for determining possible scenarios in the future.
The CFTC’s regulatory minimum capital requirement is based solely on the risk component of theperformance bond system requirement. The risk component is the assessment for changes in theunderlying portfolio's price and volatility. The equity component (the marked-to-the-market valueof options) of the SPAN performance bond system requirement is included in performance bondequity and is not part of the capital requirement computation.
The risk maintenance performance bond on naked long option positions may be excluded fromthe risk maintenance performance bond requirement as the risk component on naked long option
positions is an assessment of the liquidation risk and a haircut on the value of the options. Naked
long option positions are defined as long options in an account which are not used to reduce therisk of other futures and/or options positions.
It is important to recognize that proprietary accounts of a clearing member are not part of this riskbased capital calculation as proprietary charges based upon risk maintenance performance bondrequirements are already included in the firm's computation of adjusted net capital.
Computation of Adjusted Net Capital
Clearing members which are not Banks are responsible for computing adjusted net capital inaccordance with CFTC Regulation 1.17. As a reminder:x

There are restrictions on the amount of house (noncustomer and proprietary) cash
balances which may be held with affiliates and treated as current/allowable assets.
Clearing applicants are encouraged to contact the Financial and Regulatory Surveillance(“FRS”) Department or their designated self-regulatory organization (“DSRO”) for guidanceon the classification of house cash deposits with affiliates.

x

There is a capital charge on open futures and options positions held in proprietaryaccounts. Refer to CFTC Regulation 1.17(c)(5)(x) or SEC Rule 15c3-1b(a)(3)(xiv).
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Clearing Membership
Capital and Financial Requirements
x

There is a 2% capital charge on the market value of firm-owned investments in money
market mutual funds. This haircut is applicable to funds invested in CME’s Interest
Earning Facility 2 Program (“IEF2®”). Refer to SEC Rule 15c3-1(c)(2)(vi)(D)(1).

Computation of Adjusted Net Capital - Subordinated Loan Agreements
The rules and requirements governing subordinated loan agreements are contained in Exchange
Rule 970.A.5. (Financial Requirements) and CFTC Regulation 1.17(h). In general, a satisfactory
subordinated loan agreement may be considered good for capital purposes provided such loan
effectively subordinates any right of the lender to receive payment to the claims of all present andfuture general creditors. The CFTC Regulations contain very specific requirements for
subordinated loan agreements and must be complied with completely.
To qualify as capital, subordinated loan agreements must be approved by a firm's DSRO. For
clearing member applicants for whom CME, CBOT, NYMEX or COMEX will be the DSRO,
subordinated loan agreements must be submitted to the FRS Department for approval. Suchsubmission shall be at least ten days prior to the loan's effective date and may be included in theclearing membership application packet.
For non-CME Group DSRO clearing member
applicants, subordinated loan agreements should be submitted to their DSRO for approval.
Sample formats of Subordinated Debt Agreements can be located on CME Group’s Web site athttps://www.cmegroup.com/clearing/financial-and-regulatorysurveillance/forms.html?redirect=/clearing/audit/audit-department-forms.html .
Guaranty Fund Requirements
The guaranty fund requirements for clearing of exchange traded futures and options of the
Clearing House are stated in Rule 816. (Guaranty Fund Deposit). Clearing members must depositwith the Clearing House a Base Guaranty Fund deposit for their obligations to the Clearing House.
The minimum Base Guaranty Fund deposit of a clearing member shall equal the greater of (a)$500,000 if clearing CME, CBOT, NYMEX or COMEX futures and options on futures only, (b)$2,500,000 if clearing OTC spot, forward or swaps contracts or (c) the clearing member's
proportionate share of the "Aggregate Guaranty Fund Deposit." This requirement is separate anddistinct from the guaranty fund deposit requirement for IRS Products as set forth in Chapter 8G of
the CME Rulebook. The Aggregate Guaranty Fund Deposit shall be an amount determined by the
Clearing House.
Only U.S. Dollars or U.S. Treasury bills, floating rate notes, notes or bonds are acceptable andmust be deposited by a clearing member applicant during the application approval process. All
securities must be denominated in multiples of $5,000. Stripped securities and securities dated
prior to January 1, 1973, are not acceptable. TBonds may not exceed 30 years’ time tomaturity.
Interest is not paid on U.S. Dollar deposits. If U.S. treasuries are deposited, themarket value of such securities, less any applicable haircut, must be at least equal to theminimum requirement. For example, U.S. T-Bills with a par value of $505,000, market value of$502,000 and no applicable haircut may be used to meet the $500,000 Base Guaranty Fund
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April 2023

Clearing Membership
Capital and Financial Requirements
requirement. For a chart of Acceptable Guaranty Fund Collateral and limits see:https://www.cmegroup.com/clearing/files/acceptable-collateral-guaranty-fund.pdf
Questions on Base Guaranty Fund deposits may be directed to the Clearing House Financial
Unit at 312.207.2594. (See also: http://www.cmegroup.com/clearing/risk-management/files/cmeclearing-principles-for-financial-market-infrastructures-disclosure.pdf)
A clearing member’s Base Guaranty Fund amount is based on the risk that a clearing member
represents to the Clearing House as measured by its performance bond requirements and trading
volume. Currently, a clearing member’s Base Guaranty Fund amount consists of (i) a specified
percentage of the Aggregate Guaranty Fund Deposit multiplied by the clearing member's
proportionate share (including the total risk performance bond requirement in respect of positionsin its cross-margin accounts and any applicable short option value) of the average aggregate risk
performance bond requirement (including the risk performance bond requirement in respect ofpositions in all cross-margin accounts and any applicable short option value) for the preceding
three months; plus (ii) a specified percentage of the Aggregate Guaranty Fund Deposit multipliedby the clearing member's proportionate share of the total number of contracts executed on the
Exchange and any applicable exchange or market during the preceding three months; plus (iii) a
specified percentage of the Aggregate Guaranty Fund Deposit multiplied by the clearing
member’s proportionate share of foreign currency settlements for the preceding three months.
Such percentages may be modified by the Clearing House Risk Committee as it deems
appropriate. Further, in determining a clearing member’s Base Guaranty Fund volume
component, a different weighting may be applied to a particular contract(s) if such contract(s) isdeemed to represent a disproportionate amount of exposure to the Clearing House. The Base
Guaranty Fund deposit is recalculated on a monthly basis (more frequently if deemed necessary)by the Clearing House.
The Base Guaranty Fund deposit must be wired into the account of the Clearing House. The
Clearing House should be informed prior to any funds or securities being wired to the Clearing
House.
Clearing members that clear OTC derivatives (IRS) are subject to separate guaranty fundrequirements. Refer to Chapter 5 – Cleared OTC Derivatives.
Settlement Banks
All active clearing members must maintain a settlement account at one or more of the approved
settlement banks. Clearing members shall establish separate accounts for customer and house(noncustomer and proprietary) activity.
For a complete listing of the approved settlement, performance bond and guaranty fund banks,
please see:
http://www.cmegroup.com/clearing/financial-and-collateral-management/settlement-banks.html

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Clearing Membership
Capital and Financial Requirements
The Clearing House must have information on all settlement and custody accounts established byclearing members to clear trades. Further, the Clearing House requires debit authorization overclearing members’ settlement accounts. As such, clearing members must execute and submit to
the Clearing House a Settlement and Custody Account Listing and Debit Authorization form. See
Exhibit D (or at: https://www.cmegroup.com/clearing/files/banking-instructions-form.pdf).
Performance Bond Requirements
The Clearing House determines prudent minimum performance bond levels for all futures andoptions contracts based on historical price changes, volatilities, current and anticipated market
conditions and other factors deemed pertinent. The Clearing House collects performance bonds
from its clearing members to guarantee the obligations associated with futures and options
contracts which are carried by clearing members.
For margining of CME, CBOT, NYMEX and COMEX positions of clearing members, theExchanges require that gross positions be used to calculate performance bond requirements forthe customer origin; firms must submit customer gross margining files to ensure eligible risk
offsets are applied only for the benefit of each individual customer account. Net positions may be
used to calculate performance bond requirements for the house origin.
A list of acceptable forms of collateral to meet performance bond requirements is available on
CME Group’s website at:https://www.cmegroup.com/clearing/financial-and-collateral-management.html and refer to
Chapter “X” for additional information on Letters of Credit.
Concentration Margin
The Clearing House also applies a concentration margining program, which allows the Clearing
House to assess additional performance bond requirements when a clearing firm’s potential
market exposure becomes large relative to the financial resources available to support those
exposures. Concentration risk is measured by performing a stress test at the asset class levelacross a given clearing member’s house and customer accounts. Stress test exposures are thencompared against that clearing member’s adjusted net capital and/or absolute value threshold(portfolio size), to determine the applicable tier-based percent add-on to be applied forconcentration margin calculation. Collateral which is acceptable for core performance bondrequirements may also be used to meet concentration margin requirements.
Customer Accounts at the Clearing House
Clearing members must maintain separate accounts for customer segregated, customer secured
30.7, cleared swap customer and house (noncustomer and proprietary) funds at the Clearing
House. Exchange Rule 973 (Customer Accounts with the Clearing House) requires the Clearing
House to hold all customer funds deposited with the Clearing House in accordance with the
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Clearing Membership
Capital and Financial Requirements
Commodity Exchange Act (“CEA”) and CFTC Regulation 1.20 in an account identified as
Customer Segregated and all customer funds deposited with the Clearing House in accordancewith the CEA and CFTC Regulation 30.7 in an account identified as Customer Secured 30.7.
Exchange Rule 973 also requires all customer funds deposited with the Clearing House on behalfof cleared OTC derivatives Customers shall be held in accordance with Exchange Rules 8F001
through 8F025 in an account identified as a Cleared Swaps Customer Account. As the Clearing
House has adopted such a rule, CFTC Reg. 1.26(a) provides that a segregation, secured 30.7 orcleared swap acknowledgement letter need not be obtained for customer deposits held by the
Clearing House.
Financial Responsibilities in the Event of a Default
In the event a clearing member fails to promptly discharge any obligation to the Clearing Houseand is declared in default by the Clearing House, its Base Guaranty Fund deposit, its available
performance bond on deposit with the Clearing House, any of its other assets available to theClearing House, and the proceeds of the sale of any memberships assigned to it for clearing
qualification shall be applied by CME’s Clearing House to discharge the obligation.
If the defaulting clearing member's commodity futures, options, commodity swaps, or OTC FX (forclearing members clearing IRS derivatives, see Chapter 5) obligation to the Clearing House
remains unsatisfied, the obligation will be met by the application of funds according to thefollowing priority:(1)$100M CME Capital for Base Guaranty Fund(2)

Non-Defaulting Clearing Members Base Guaranty Fund Contributions(3)

Assessment against all clearing members (excluding any insolvent or defaulting clearing
members) up to an amount that does not exceed:(a) 275% of such clearing members’ Base Guaranty Fund requirement when losses are
attributable to a single defaulting clearing member during the cooling off period; and,(b) 550% of such clearing members’ Base Guaranty Fund requirement when losses are
attributed to losses ofmultiple defaulting clearing members during a cooling off period.
Note: The above are generalizations of specified formulas and procedures. The detail ofthe allocation of Base Guaranty Fund contributions in the event of a clearing member
default should be read in its entirety in Exchange Rule 802.B. Satisfaction of Clearing
House Obligations.
In connection with IRS Clearing Members, the Clearing House has established a separate
guaranty fund for IRS contracts. (Refer to Chapter 5 and CME Rule 8G802)4-7

April 2023

Clearing Membership
Capital and Financial Requirements
To minimize the possibility of clearing member defaults and to provide our customers and themarket with the finest protection, CME Group has adopted and rigorously enforces an integrated
package of financial surveillance and risk management procedures. These are described in CMEGroup’s Financial Safeguards, which may be found on CME Group’s Web site at:
http://www.cmegroup.com/clearing/files/financialsafeguards.pdf.

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April 2023

Cleared OTC Derivatives
CME, CBOT, NYMEX and COMEX Clearing Members and OTC Clearing Members are eligible toclear OTC derivative products (i.e. cleared swaps and forwards) with CME’s Clearing House if all
requirements for the clearance of particular OTC derivative contracts are met.
If a Clearing Member will clear OTC derivatives products through the Clearing House for its
customers, the firm must be registered with the CFTC as an FCM. FCMs are subject to CFTC
rules and regulations including regulatory capital, financial reporting and customer protection.
A clearing member who clears customer business acts as agent for undisclosed principals (i.e.,the customers) vis-a-vis the Clearing House and guarantees their customers’ performance to
the Clearing House. A clearing member is deemed to be the principal to the OTC contract when
it clears trades for its own proprietary account and is deemed a guarantor and agent to the OTC
contract when it clears trades for its affiliates or customers. The clearing member-customer
agency relationship facilitates customer cleared swaps segregation protection, bankruptcy
portability of customer positions and collateral, operational efficiency, and favorable capitaltreatment for the clearing member. This relationship is fundamental to the operation of the
Clearing House and is embedded throughout the rules of Exchanges, the Commodity Exchange
Act and the regulations of the CFTC.
General Requirements
In addition to the General Requirements of clearing membership contained in Chapter 2 –General Requirements, the following requirements apply to a clearing member which will clear
OTC derivatives.
1.

A Clearing Member that will clear FX OTC or Interest Rate Swaps (“IRS”) must haveappropriate risk management capabilities, operational infrastructure and experience tosupport this activity, as prescribed by the Clearing House.

2.

A Clearing Member shall agree to guarantee and assume responsibility for all trading activity
routed through a Globex portal, or routed through any electronic trading system, if applicable,
to the Clearing House for clearing of such OTC derivative transactions and which are
guaranteed to the Clearing House by the clearing member via any connection, terminal, link,telecommunications hub or handheld unit provided by a clearing member to a third party as
well as any applicable electronic trading systems and terminals that the clearing member
provides to a third party, including an eligible customer, to enter orders.

3.

The Clearing Member shall agree to guarantee and assume responsibility for all OTC
derivatives trading activity executed via outside means and submitted for clearing to andaccepted for clearing by the Clearing House by any customer, broker or affiliate authorized by
the Clearing Member.

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April 2023

Cleared OTC Derivatives
Capital Requirements
Capital requirements for clearing members which are not Banks are specific to its exchange
membership privileges and, if applicable, any OTC products that it will clear. For non-Bankclearing members, capital is defined as Adjusted Net Capital as computed in accordance with
CFTC Regulation 1.17. For Bank clearing members, capital is defined as Tier 1 Capital, as
defined in accordance with regulations applicable to the bank clearing member. The following
are the applicable capital requirements:
For a CME Clearing Member, the exchange capital requirement is the greater of the CFTC or
SEC capital requirement or:
For a non-Bank clearing member:
x $5,000,000 if it will clear only exchange-traded futures/options; or,x $50,000,000 if a clearing member will clear any OTC derivative product, including, but notlimited to, FX OTC or IRS; or,x 20% of aggregate performance bond requirement for all customer and house accounts
containing CME-cleared IRS positions.
For a Bank clearing member:
x $5,000,000,000 if it will clear exchange-traded futures/options; or,x $50,000,000 if it will clear only OTC derivative products, including, but not limited to, FX
OTC or IRS; orx 20% of aggregate performance bond requirement for all proprietary and affiliate accounts
containing CME-cleared IRS positions.
For a CBOT Clearing Member, the exchange capital requirement is the greater of the CFTC or
SEC capital requirement or:
For a non-Bank clearing member:
x $5,000,000 if it will clear exchange-traded futures/options and agricultural OTC derivatives
products; or,x $50,000,000 if it will clear any OTC derivative products, excluding agricultural OTC
derivative products.
For a Bank clearing member:
x $5,000,000,000 if it will clear exchange-traded futures/options; or,x $50,000,000 if it will clear only OTC derivative products, including, but not limited to,
agricultural OTC derivative products.

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April 2023

Cleared OTC Derivatives
For a NYMEX Clearing Member, the exchange capital requirement is the greater of the CFTC or
SEC capital requirement or:
For a non-Bank clearing member:
x $5,000,000 if it will clear only exchange-traded futures/options; or,x $50,000,000 if it will clear any OTC derivative products, including, but not limited to energy
OTC derivative products.
For a Bank clearing member:
x $5,000,000,000 if it will clear exchange-traded futures/options; or,x $50,000,000 if it will clear only OTC derivative products, including, but not limited to energy
OTC derivative products.
For a COMEX Clearing Member, the exchange capital requirement is the greater of the CFTC or
SEC capital requirement or:
For a non-Bank clearing member:
x $5,000,000 if it will clear only exchange-traded futures/options; or,x $50,000,000 if it will clear any OTC derivative products, including, but not limited to energy
OTC derivative products.
For a Bank clearing member:
x $5,000,000,000 if it will clear exchange-traded futures/options; or,x $50,000,000 if it will clear only OTC derivative products, including, but not limited to, metal
OTC derivative products.
For additional information on capital requirements, refer to Rule 970 for Exchange-tradedfutures/options, CME Rule 8F004 for OTC derivatives and CME Rule 8G04 for IRS.
The Clearing House Oversight Committee, the Clearing House Risk Committee, the IRS Risk
Committee or the Clearing House may prescribe additional capital requirements and grant
exemptions.
In addition:
x If a hedge fund is the CME, CBOT, NYMEX or COMEX clearing member, the investment
manager must maintain assets under management of $1 billion for exchange-tradedfutures/options and OTC.
x If the investment manager of a hedge fund is the CME, CBOT, NYMEX or COMEX
clearing member, its exchange minimum capital requirement for exchange-tradedfutures/options is $50,000,000 (instead of $5,000,000 per the above).

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Cleared OTC Derivatives
Guaranty Fund and Membership Requirements
All clearing members must deposit with the Clearing House a guaranty fund deposit for their
obligations to CME. Guaranty fund requirements are dependent upon the products cleared.
Separate guaranty fund pools are maintained for Exchange-traded products and OTC
derivatives excluding IRS (i.e., the “base” guaranty fund) and IRS. The minimum base guaranty
fund deposit for a clearing member which will clear OTC derivative products, excluding IRS, is$2,500,000.
The guaranty fund requirements of the Clearing House are stated in Rule 816. (Guaranty Fund
Deposit) and for OTC derivatives in Rule 8F007. (Guaranty Fund Deposit) and 8G07. (IRS
Financial Safeguards and Guaranty Fund Deposit).
If the Clearing Member will clear IRS products, the minimum requirement to the IRS guaranty
fund is the greater of $15,000,000 or the IRS clearing member’s proportionate share consistent
with CME Rule 8G07.1.(i) and (ii) (i.e., the “funded portion” of the IRS financial safeguards
package). Refer to Rule 8G07. for information regarding the IRS guaranty fund.
Guaranty fund minimums may be increased from time to time, depending on the mix of OTC
asset classes for which the Clearing House provides clearing services.
The Clearing House Oversight Committee, the Clearing House Risk Committee, the IRS Risk
Committee or the Clearing House may prescribe additional financial, including guaranty funddeposit, requirements.

Clearing of Customer Activity
If the clearing member will clear customer accounts, it must be properly registered or authorized
for such activity by its primary regulator and it must be registered as an FCM with the CFTC and
NFA. FCMs are subject to CFTC rules and regulations including rules and regulations
pertaining to regulatory capital, financial reporting and customer protection. Information on FCM
registration can be obtained from the National Futures Association (www.nfa.futures.org or
312.781.1300). CFTC rules and regulations can be found on their Web Site at www.cftc.gov.
A clearing member must comply with the requirements of Rule 971 (Segregation, Secured andCleared Swaps Customer Account Requirements). These requirements include:xxx

Maintaining at all times sufficient funds in segregated, secured 30.7 or cleared swap
customer accounts;
Computing, recording and reporting the Segregation, Secured 30.7 and Cleared Swap
Amounts Statements;
Obtaining satisfactory segregation, secured 30.7 and cleared swap acknowledgement
letters; and,
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April 2023

Cleared OTC DerivativesxPreparing and reporting daily Segregation, Secured 30.7 and Cleared Swap Amounts
Statements.

In addition, clearing members must provide immediate written notice to CME Group’s FRS
Department of a failure to maintain sufficient funds in segregation, secured 30.7 or cleared swap
accounts. Refer to Rule 971. (Segregation, Secured and Cleared Swaps Customer AccountRequirements).
All clearing members must ensure that its customers meet any eligibility requirements
established for trading certain OTC derivatives products. For example, customers who willtrade interest rate swaps must meet the qualifications for Eligible Contract Participant as definedin CFTC regulations.
All OTC derivative transactions must be identified with an account number which identifies theoriginator of the transaction and indicate whether the transaction was executed as a proprietaryor customer transaction. In addition, an OTC Clearing Member must register all “ultimate” orend customers. Refer to Rule 8F009. (Customer Registration)
All OTC clearing members are subject to risk management and monitoring practices by CME
related to transactions submitted to the Clearing House. OTC Clearing Members shall promptly
provide all information requested by Clearing House staff, including, without limitation,
information with respect to risk, settlement, liquidity, and operational issues. OTC Clearing
Members shall make information and documents regarding their risk management policies,
procedures and practices available to the CFTC upon the CFTC’s request. Refer to Rule
8F010. (Risk Management).

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Clearing Membership
Financial Reporting, Notification and Other Requirements
Financial Reporting Requirements
Designated Self-Regulatory Organization (DSRO)
All clearing members will be assigned a DSRO. A clearing member’s DSRO is its lead regulator
for the futures industry.
DSRO assignments are decided by the Joint Audit Committee which is composed ofrepresentatives of domestic futures exchanges and National Futures Association. For the mostpart, a DSRO is determined based upon where a clearing member was first elected tomembership and where the bulk of the clearing member’s business (trading activity) is conducted.
In general, clearing member applicants who are applying to CME for their first U.S. commodity
exchange membership will have CME as their DSRO, while clearing members holding other U.S.
commodity exchange memberships at the time of application will continue with their current
DSRO.
Financial Statement Filings – Daily
All clearing member FCMs must submit, on a daily basis, daily segregated, secured 30.7 andcleared swap customer statements (“Daily Seg 1-FR” for FCMs and “Daily Seg FOCUS II” fordually registered FCM-Broker/Dealers), as applicable, through WinJammer¥ by 12:00 noon on
the following business day. These statements must be signed off by the firm’s Chief Executive
Officer, Chief Financial Officer or their designated representatives as allowed.
Financial Statement Filings – Bi-Monthly
All clearing member FCMs must submit a report of investments as of the 15th and last business
day of the month through WinJammer by the close of business on the following business day.
The report will detail the dollar amount of funds held by depository and by permitted investment as
outlined in CFTC Regulation 1.25(a). The investment reports must be submitted by segregated,secured 30.7 and cleared swap customer origin.
Financial Statement Filings - Monthly
All non-Bank clearing members must submit monthly Form 1-FRs (all non-Broker/Dealers) or
FOCUS Reports (dually registered FCM-Broker/Dealers), including Exchange Supplemental
Information, through the WinJammer system within seventeen (17) business days of month-end.
Such monthly reporting includes the submission of an unaudited monthly report as of fiscal yearend.

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Clearing Membership
Financial Reporting, Notification and Other Requirements
The Exchange Supplemental Information required in the financial filing includes:xxxxCapital to be withdrawn within 6 months;
Subordinated Debt maturing within 6 months;
Subordinated Debt due to mature within 6 months that you plan to renew; and,Additional capital requirement for excess margin on Reverse Repurchase Agreement. ** Information is only applicable to broker/dealers

This additional information is required for the FRS Department to monitor a clearing member’s
capital level and decreases which are known and will occur within the next six months.
All monthly financial statements must be submitted through the WinJammer system, an electronic
filing system. To file the statements using the WinJammer system, authorized financial statement
submitters are granted access to WinJammer. To gain access and obtain approval for a
submitter, you may visit the WinJammer web site at: http://winjammer.futures.org/. The
information can be located under Getting Started. Should you encounter difficulty, please e-mailwjammer@cmegroup.com or call 312-930-3230.
Financial Statement Filings – Quarterly
All Bank clearing members are required to file any and all financial statements and capital
adequacy reports which are filed with its primary banking regulator. However, such financial
statements and capital adequacy reports must be file on, at least, a quarterly basis, including as of
the Bank clearing member’s fiscal year-end, if such filing of an unaudited fiscal year-end financial
statement or capital adequacy report is required by the clearing member’s primary banking
regulator. All Bank clearing members must submit to FRS the quarterly Form “CME Financial
Forms – Banks” through the WinJammer¥ system and must attach all financial statements andcapital adequacy reports filed with their primary banking regulator to the WinJammer filing. Referto above for WinJammer filing information.
Such quarterly financial statements and capital adequacy reports are due five calendar days after
such statements are filed with the Bank’s primary banking regulator. These capital adequacy
reports must demonstrate compliance with the Exchange minimum capital requirements.
ome.asp# The Pin information can be located under
Financial Statement Filings – AnnuallyAll non-Bank clearing members are required to submit certified financial statements within sixty(60) days of their fiscal year-end to the FRS Department. The requirements of certified financial
reports of broker/dealers are specified in SEC Rule 17a-5 and the requirements of certified
financial reports of FCMs are specified in CFTC Regulations 1.10 and 1.16.
Bank clearing members must submit an annual certified financial statement to CME Group’s FRS
Department. The annual certified financial statement is due five calendar days after suchstatements are filed with its primary banking regulator.
All annual certified financial statements must be submitted to the FRS Department via
WinJammer.
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Clearing Membership
Financial Reporting, Notification and Other Requirements
Financial Statement Filings - More Frequent Financial Reporting
Clearing Members may be placed on more frequent reporting for "just cause" at the discretion of
the Exchanges, including but not limited to the Clearing House Oversight Committee, the Clearing
House Risk Committee, the IRS Risk Committee or Exchange staff. Generally, more frequent
reporting would be due to new clearing membership status as well as result from on-going
financial difficulties or significant problems discovered during a review of the clearing member.
Examples of more frequent reporting include the submission of daily or weekly capitalcomputations.
Notification Requirements
Financial Notifications
1.

All clearing members must provide written notice to the FRS Department whenever theclearing member:
x
x
x
x
x
x
x

Fails to maintain minimum capital requirements;
Fails to maintain early warning capital requirements;
Fails to maintain current books and records;
Determines the existence of a material inadequacy as specified in CFTC
Regulation 1.16(d)(2);
Changes its fiscal year;
Changes its public accountant; or,Fails to comply with Exchange prescribed additional accounting, reporting,financial, and/or operational requirements.

Refer to Rule 970.A.3. and Rule 970.D. (Financial Requirements).
2.

All clearing member FCMs must provide written notice to the FRS Department if theclearing member fails to maintain sufficient funds in segregation, secured 30.7 or clearedswap customer accounts.
Refer to Rule 971.F. (Segregation, Secured and Cleared Swaps Customer AccountRequirements).

3.

All clearing member FCMs must provide written notice of pre-approval (by CEO, CFO or
authorized representative) to the FRS Department for all disbursements not made for the
benefit of a customer from a segregated, secured 30.7 or cleared swap customer accountwhich exceed 25% of the FCM clearing member’s excess segregated, secured 30.7 orcleared swap customer origin, as applicable, of the most recent calculation.
Refer to Rule 971.E. (Segregation, Secured and Cleared Swaps Customer AccountRequirements)

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Clearing Membership
Financial Reporting, Notification and Other Requirements
4.

All non-Bank clearing members must provide written notice to the FRS Department of any
reductions in net capital as reported on the Form 1-FR, or tentative net capital as reported
on the FOCUS Report for broker/dealers, of 20% or more from the most recent filing ofsuch report within two business days of the event or series of events causing the
reduction.
All non-Bank clearing members must provide written notice to the FRS Department atleast two business days in advance of any planned reductions to equity capital if it would
cause a reduction in excess net capital of 30% or more.
Bank clearing members must provide notice if any event or series of events, including
any withdrawal, advance, loan or loss would cause, on a net basis, a reduction in Tier I
capital as reported on the most recent filing of a financial report, of 20% or more. Noticemust be provided within five business days of the event or series of events causing the
reduction.
Refer to Rule 972. (Reductions in Capital).

5.

All clearing members must provide written notice to the FRS Department if a performancebond call in any account (customer, noncustomer, or omnibus) exceeds the clearing
member’s adjusted net capital or if a performance bond call exceeding the clearing
member’s excess net capital remains unanswered by the close of business the day
following the issuance of the call.
Refer to CFTC Regulations 1.12(f)(3) and 1.12(f)(4).

6.

All clearing member FCMs must provide written notice to the FRS Department wheneverthe clearing member:x Is aware that its investments of segregated, secured 30.7 or cleared swaps customer
funds are in instruments which are not permitted under CFTC Regulation 1.25;
x Fails to maintain sufficient funds to meet its targeted residual interest in segregated,secured 30.7 or cleared swaps customer accounts or its residual interest is less thanthe undermargined amount;x Experiences a material adverse impact to its creditworthiness or ability to fund its
obligations;x Experiences a material change in its operations or risk profile; or,x Is notified by the Securities and Exchange Commission or another securities or futures
self-regulatory organization that it is the subject of a formal investigation
Refer to CFTC Regulation 1.12.
The above list of notifications is not all inclusive.

Other Notifications
1.

Significant Business Transaction or Change in Operations. All clearing members are
required to provide notice to the Exchanges prior to any significant business transaction.
The purpose of such notification is to enable the Exchanges to better identify and monitor
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Clearing Membership
Financial Reporting, Notification and Other Requirements
risks presented by significant business transactions. The notification requirements arecontained in Rule 901.H. (General Requirements and Obligations) and are as follows:
All clearing members must notify the FRS Department prior to any significant business
transaction or significant change in operations including:
x
x
x
x
x
x

the merger, combination, or consolidation between the clearing member andanother person or entity;
the assumption or guarantee by the clearing member of all or substantially all of
the liabilities of another in connection with a direct or indirect acquisition of all or
substantially all of that person's or entity's assets;
the sale of a significant part of the clearing member's business and/or assets toanother person or entity;a change in the direct or indirect beneficial ownership of 20% or more of theclearing member;any change in the clearing member's system provider used to process trades; or,an increase in the number of members qualified by the clearing member.

Such transactions may be subject to review and approval by the Clearing House OversightCommittee with respect to corporate organization and structure changes and the Clearing
House Risk Committee or Exchange staff shall be the relevant body with respect to allother changes.
In addition, a clearing member that qualifies members must provide fifteen (15) days
notice to the Exchanges of any proposal to terminate such business or any material part ofsuch business.
2.

Ownership Changes. All clearing members must submit and maintain with the FRS
Department a current list of every person or entity that is directly, or indirectly throughintermediaries, the beneficial owner of 20% or more of any class of equity security of theclearing member.
The FRS Department requires notification as soon as any changes in ownership structure
occur in accordance with Rule 901.H.4. (General Requirements and Obligations).

3.

Firm Contact Listings. Maintaining up-to-date personnel contact information is critical tocontinue communications with our clearing members during normal, as well as crisis,
situations. Therefore, clearing members are required to immediately notify the Exchangesof all changes to its key personnel as well as update its information accordingly on CME’s
Firm Contact System.

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April 2023

Clearing Membership
Financial Reporting, Notification and Other Requirements
Other Requirements
Futures Commission Merchant Activity
Clearing members that are registered as FCMs are required to have appropriate staff, systems,
procedures and controls to meet the requirements and obligations of being an FCM. This
includes, but is not limited to, staff with customer futures industry experience who areconversant with CFTC customer protection, capital adequacy and compliance rules;
bookkeeping systems to account for customers (as well as non-customer and proprietary)
futures activity and regulatory reporting requirements; performance bond, risk management andother compliance procedures and sufficient internal accounting controls over safeguarding
customer and firm assets.
Required Records and Reports
All clearing members are required to prepare, maintain and keep current those books and records
required by the Exchange(s), CFTC and applicable Regulations thereunder. It is important to notethat such books and records shall be open to inspection and promptly provided to the Exchange
upon request.
Refer to Rule 980 (Required Records and Reports)
Anti-Money Laundering and Economic Sanctions Compliance
All clearing members are required to have a written compliance program approved by its senior
management which is reasonably designed to achieve and monitor the clearing member’s
compliance with all applicable requirements of the Bank Secrecy Act, the International Emergency
Economic Powers Act, the Trading with the Enemy Act, Executive Orders, regulations issued by
the U.S. Department of Treasury and the Commodity Futures Trading Commission.
Refer to Rule 981 (Anti-Money Laundering and Economic Sanctions Compliance).
Risk Management
All clearing members must have written risk management policies and procedures in place toensure they are able to perform certain basic risk and operational functions at all times. In
addition, FCMs that accept money, securities or property to margin, guarantee or secure any
trades must comply with the risk management requirements set forth in CFTC Regulation 1.11.
Refer to Rule 982 (Risk Management) and CFTC Regulation 1.11

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Clearing Membership
Financial Reporting, Notification and Other Requirements

Disaster Recovery and Business Continuity
All clearing members must have written disaster recovery and business continuity policies andprocedures in place to ensure they are able to perform certain basic operational functions in theevent of a significant internal or external interruption to their operations. Depending on the firm’s
size and its business and product mix, clearing members must have procedures in place to allow
them to continue to operate during periods of stress or to transfer accounts to another fully
operational clearing member with minimal disruption to either the Clearing House or theircustomers. Clearing members must perform periodic testing of disaster recovery and business
continuity plans, have duplication of critical systems at back up sites and periodically back-up
critical information.
Refer to Rule 983 (Disaster Recovery and Business Continuity).
Segregated, Secured 30.7 and Cleared Swaps Accounts
All clearing member FCMs must provide authorization to third party banks, clearing organizations
and carrying brokers to allow these depositories to provide daily account balance information to
the FRS Department for its segregated, secured 30.7 and cleared swaps customer accounts. In
addition, acknowledgement letters for such customer accounts must be filed via WinJammer by
the FCM within three business days after such accounts are opened and by the depository via
email to FRSAcknowledgmentLetters@cmegroup.com.

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Clearing Membership
Cross-Guarantee, Guarantee of Obligations and Guaranty Fund Guarantee
Cross-Guarantee Agreement
Rule 901.G. (General Requirements and Obligations) states that if any person directly or indirectly
controls, owns 10% or more of, or has the right to 10% or more of the profits of two or moreclearing members, then each clearing member shall guarantee the obligations of the otherclearing members to the Exchanges. If a cross guarantee affiliation exists, absent an exemption,
only one entity may trade in a given OTC clearing class within the house origin (i.e., only one
entity may clear IRS activity).
Each clearing member shall execute a written guarantee to the Exchanges on an approved form.
Refer to Exhibit E. The cross-guarantee shall be signed by an authorized officer for a corporation,
an authorized member or manager for a limited liability company, or a general partner of apartnership. In addition, each clearing member shall submit a Board of Director’s resolution orsimilar written documentation stating the clearing member’s decision to execute such CrossGuarantee Agreement and granting such officer, member, manager or partner authority to sign theguarantee.
A cross-guarantee shall guarantee all obligations of the clearing member to the Clearing Housearising out of customer, noncustomer and proprietary accounts cleared by the clearing member.
Such customer, noncustomer and proprietary obligations covered under the cross-guarantee
include performance bond and settlement for customer, noncustomer and proprietary positions
held and cleared; customer, noncustomer and proprietary trades executed by traders qualified by
the clearing member until accepted for clearing by another clearing firm; and, customer
noncustomer and proprietary trades executed and processed through the Give Up System (“GUS”)
by the clearing member until accepted for clearing by another clearing firm.
A cross-guarantee shall also apply to any obligations of the clearing member to pay an assessment
to the Clearing House pursuant to Rule 802.B. (Protection of Clearing House - Satisfaction ofClearing House Obligations). Note: Rule 802.B. sets forth a clearing member's financial
responsibilities in the event of a default of another clearing member.
Exchange Staff may grant exemptions from the cross-guarantee requirements.
Guarantee of Obligations to the Clearing House
A guarantee of obligations to the Clearing House must be obtained whenever:1.

A clearing member reorganizes into a different legal entity, such as a corporation
reorganizing to a limited liability company; or2.

A clearing member is replaced by a different company within the same corporate structure
and the new clearing member wishes to utilize the membership assignments of thewithdrawing clearing member during the 60-day posting period.

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Clearing Membership
Cross-Guarantee, Guarantee of Obligations and Guaranty Fund Guarantee
A guarantee of obligations to the Clearing House must be executed on an Exchange-approved
form. The guarantee of obligations is between the new clearing member and the existing clearing
member. It must be accepted and signed by both parties. Refer to Exhibit F.
The guarantee of obligations shall be signed by an authorized officer for a corporation, an
authorized member or manager for a limited liability company, or a general partner of apartnership. In addition, the clearing member shall submit a Board of Director’s resolution or similar
written documentation stating the clearing member’s decision to reorganize or replace an affiliatedcompany (as applicable) and granting such officer, member, manager or partner authority to sign
the guarantee.
Within the guarantee, the new clearing member unconditionally guarantees and assumes all
obligations of the current clearing member to the Clearing House. Examples of such obligations
include, but are not limited to, out-trades, open complaints, clearing fee liabilities arising from pasttransactions, delivery obligations, valid Exchange claims, and outstanding bid guarantees.
In addition, the new clearing member assumes responsibility for all agreements entered into by
the existing clearing member with the Exchanges. Examples of such agreements include, but are
not limited to, membership assignments, trader qualification agreements, authorized signatures,transfers pursuant to Rules 106.D. and 106.F., trading authorizations and consents to qualified
members and lessees to have accounts at clearing members other than their qualifying clearing
member.
There is no time restriction on the guarantee.
Guaranty Fund Guarantee of Obligations
Under limited conditions, such as a clearing membership replacement or merger with an affiliatedcompany, the new or surviving clearing member may assume the existing guaranty fund depositof the withdrawing clearing member during the 60-day posting period of the withdrawing clearing
member. This eliminates the affiliates having to maintain two guaranty fund deposits with theClearing House during the 60-day posting period.
By executing the Guaranty Fund Guarantee of Obligations, the new or surviving clearing member
agrees to pay all valid claims filed pursuant to Rules 110 and 913 against the withdrawing clearing
member. The guarantee is limited to the amount of guaranty fund assumed by the new orsurviving clearing member. The guarantee remains in effect until all claims have been resolved.
To utilize a Guaranty Fund Guarantee of Obligations, a written request must be directed to FRS
Department staff. FRS Department staff will consider how the replacement or reorganization is
structured and the relationship of the parties. If approved, a Guaranty Fund Guarantee of
Obligations must be executed on an Exchange approved form. Refer to Exhibit G. The Guaranty
Fund Guarantee of Obligations must be signed by an authorized officer for a corporation, an
authorized member or manager for a limited liability company, or a general partner of apartnership.

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Clearing Membership
Letters of Credit
The Clearing House allows limited use of letters of credit in meeting performance bondrequirements on positions at the clearing house level. The Clearing House accepts letters ofcredit in accordance with Rule 820. (Performance Bonds).
Clearing members may accept letters of credit from their customers for performance bond inaccordance with Rule 930.C. (Account Holder Performance Bond Requirements: Acceptable
Performance Bond Deposits).
All letters of credit must be irrevocable and drawable in the continental United States.
Clearing House Letters of Credit
Letters of credit deposited with the Clearing House must be in Clearing House approved formats
from a Clearing House approved bank. For approved formats and approved banks, refer to CMEGroup’s Website at:https://www.cmegroup.com/clearing/financial-and-collateral-management.html.
In addition, the Clearing House accepts pass-through letters of credit for margining of CME,
CBOT, NYMEX and COMEX positions; that is, letters of credit deposited by a clearing member’s
customers/noncustomers and passed through to the Clearing House. Both the clearing member
and the Clearing House are beneficiaries of such pass-through letters of credit.
A clearing member (a bank or other organization) is not allowed to post with the Clearing House aletter of credit issued by itself or any of its affiliates.
Letters of Credit are acceptable only for Base products and are capped at the lesser of 25% ofcore requirement or $1 billion per clearing member firm. For a complete list of acceptable
collateral and product class restrictions, refer to CME Group’s website at:https://www.cmegroup.com/clearing/financial-and-collateral-management.html
andhttps://www.cmegroup.com/clearing/financial-and-collateral-management/acceptable-collateralfor-letters-of-credit.html
Clearing Firm Letters of Credit
Letters of credit accepted by clearing firms from their customers/noncustomers to meet
performance bond requirements on CME, CBOT, NYMEX and COMEX positions must be in
Exchange-approved formats. For approved formats refer to CME Group’s Web site at:
http://www.cmegroup.com/clearing/audit/audit-department-forms.html.
A clearing member may not accept a letter of credit from a customer/noncustomer which is issued
by the customer/noncustomer, an affiliate of the customer/noncustomer, the clearing member, oran affiliate of the clearing member.

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Clearing Membership
Clearing Fees, GPS™, BPS™, CME Globex®
and Trading Floor Customer Service
Clearing Fees
Clearing, Exchange and Globex® fees are assessed per side (the buy and the sell side) on all
Exchanges futures and options contracts according to the published schedules then in effect.
Clearing members are invoiced on a monthly basis for all fees. The fee schedules of CME,
CBOT, NYMEX and COMEX are located on CME Group’s Web site at:https://www.cmegroup.com/company/clearing-fees.html.
Proprietary trading activity of clearing members with shares/Equity Member Subscription Rate
Program Participant and related Rule 106.I. members must conform to CME Group member fee
policies. Refer to Exhibit H. A Proprietary Trading Attestation indicating if proprietary trading
activity is conducted by the clearing member and, if so, that it conforms to CME Group fee
policies, must be executed and submitted with the clearing membership application. Refer to
Exhibit I.
A Proprietary Trading Attestation is included in the Application for Clearing
Membership.
The Exchange Fee System (EFS) provides the clearing member with online transactional viewing
and an adjustment facility for clearing fees. Clearing firms have the ability to reallocate current
month trades, exercises, assignments, and deliveries by account on a daily basis and resubmit
the transactions through the Exchange Fee Systems. Clearing firms are able to make intra-monthand inter-month adjustments that will automatically be reprocessed.
Only inter-monthtransactions appear separately on the clearing firm’s month-end statement. A clearing firm may
make adjustments to its calculated fees up to two months after the fee month ends.
Clearing members are required to complete, sign and submit an Authorization Agreement for PreAuthorized Payments for clearing and non-clearing charges (i.e. telecom, floor space fees, etc.) to
Accounts Receivable. Kwaw Kwakyi may be contacted at Kwaw.Kwakyi@cmegroup.com. (Avoided check may also be required.) Refer to Exhibit J (One form for futures and options and one
form for OTC). The agreement must be signed by an authorized senior officer of the clearing
member.
For more information on clearing fees or Exchange Fee Systems, contact
EFSAdmin@cmegroup.com or the Fee Hotline at (312) 648-5470 or the FRS Department at (312)930-3230.
Give-Up Payment System (“GPS”)
The Give-Up Payment System (“GPS”) is a billing system for give-up business that
automatically transfers funds on a monthly basis between executing and carrying firms using the
BMO Harris Bank ACH System. Use of GPS at the Clearing House is mandatory for thoseentities conducting give-up business.
Clearing members who will clear CME, CBOT, NYMEX or COMEX products are required tocomplete, sign and submit a Clearing Member Agreement and Participation Form (including avoided check), along with an IRS W-9 Form (or W-8BEN for non-U.S. entities), to the Clearing
House before executing trades. Refer to Exhibit K.

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Clearing Membership
Clearing Fees, GPS™, BPS™, CME Globex®
and Trading Floor Customer Service
In addition, an Online System Access Request Form must be completed, signed, and submitted
online to EASE (Enterprise Application & System Entitlements). Additional information may beobtained by contacting: EASE@cmegroup.com. The Online System Access Request Formmust be completed for each individual that will maintain the system at the clearing member.
(See http://www.cmegroup.com/clearing/files/member-firm-online-access-form.pdf)
These forms allow the users the ability to set rates, change accounts, and add new agreements
online as well as transmit and receive data.
For further information concerning GPS, please contact: CME Group Clearing Services at (312)207-2525 or email ccs@cmegroup.com.
Brokerage Payment System (“BPS”)
CME Group’s Brokerage Payment System (“BPS”) is a web-based application that facilitatesbrokerage payments to filling brokers by member firms by automatically debiting the member
firms’ bank accounts and crediting the brokers’ bank accounts. This system eliminates thecostly labor-intensive task of preparing and distributing checks to brokers each month andassures timely brokerage payments. Use of BPS at CME, CBOT, NYMEX and COMEX is
mandatory if the firm has floor brokers/traders.
Clearing members who will clear CME, CBOT, NYMEX or COMEX products are required tocomplete, sign and submit a Brokerage Payment System Clearing Member Participation Form(including voided check), along with an IRS W-9 Form (or W-8BEN for non-U.S. entities), to theClearing
House.
Refer
to
https://www.cmegroup.com/company/membership/files/BPSCMParticipationForm.pdf and Exhibit
M. The agreement and applicable IRS Form must be signed by an authorized senior officer ofthe clearing member.
Finally, to utilize BPS, all brokers that fill orders for a clearing member must have a Brokerage
Payment System Broker Agreement for NYMEX and COMEX brokers (including a voided check)or a Brokerage Payment System Floor Broker Agreement for CME and CBOT brokers, along withan IRS W-9 Form (or W-8BEN for non-U.S. entities), on file with the Membership Services
Department.
If the clearing member firm conducts 100% of its trading through Globex-API, this form is not
required (i.e., this includes if the firm is solely an OTC Clearing Member applicant). However, if
the clearing member conducts trading through ClearPort and its brokers have elected to becompensated through BPS, this form is required. For further information concerning BPS, pleasecontact:x

x

CME Clearing Services and Operations: (312) 207-2525 e-mail: ccs@cmegroup.com
Jule Mondschein, Supervisor, Membership Services,
Phone: (312) 435-3485 e-mail: Jule.Mondschein@cmegroup.com

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Clearing Membership
Clearing Fees, GPS™, BPS™, CME Globex®
and Trading Floor Customer Service
Other Membership Services Department Forms
Clearing members who will clear CME, CBOT, NYMEX or COMEX products are required to
execute a Secretary’s Certificate (Refer to Exhibit N), a Designated Spokesperson
Acknowledgement (Refer to Exhibit O) and IRS W-9 Form (or W-8BEN for non-U.S. entities) (inaddition to the IRS Form executed in conjunction with the GPS and BPS agreements).
The Certificate with Respect to Corporate Resolutions designates an individual who is authorized
to execute documents on behalf of the clearing member for membership purchases, sales,transfers, and assignments as well as other documents that may be required by the Membership
Services Department.
The Designated Spokesperson Acknowledgement designates an individual at the clearing
member who the Membership Services Department may contact if it has questions pertaining to
the clearing member’s memberships, shares or qualified traders.
An original IRS W-9 Form (or W-8BEN for non-U.S. entities) (Refer to Exhibit P) is required fromall clearing members with shares by ComputerShare, the transfer agent for all CME Group ClassA shares.
CME Globex®
In 1992, CME launched CME Globex® (“Globex”), an innovative electronic trading platform forafter-hours trading of CME products. The CME Globex platform was the first - and remains
among the fastest - global electronic trading systems for futures and options. Through its
advanced functionality, high reliability and global connectivity, it is now the world's premiermarketplace for derivatives. CME Group's technology facilitates all electronic trading, providing
users across the globe with virtually 24-hour access to global markets. Globex provides fast,
flexible, and reliable access to market information, order entry and order management.
Clearing members are required to utilize CME Globex credit controls for their own trades as wellas any customers/firms that they clear. In addition, all clearing members are required to maintaintrading records for five years in accordance with CME Rule 536. For customers for whom theclearing member has authorized access, the clearing member must:xxx

Guarantee and assume full responsibility for all activity through the terminal;
Assist the Exchange in any investigation into potential violations of Exchange rules or the
Commodity Exchange Act (“CEA”); and,
Suspend or terminate the customer’s Globex access if the Exchange determines that theactions of the customer threaten the integrity or liquidity of any contract or violate any rulesof the Exchange or the CEA, or if a customer fails to cooperate in an investigation.

Access to Globex is available through order routing software designed by independent software
vendors (ISVs) and market participants and certified to CME Group requirements. CME
Globex is also available via CME Direct, an Exchange provided front-end system.

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Clearing Membership
Clearing Fees, GPS™, BPS™, CME Globex®
and Trading Floor Customer Service
FCMs, Introducing Brokers and ISVs also offer customers trading applications that are enabled
for trading Globex products and provide connectivity through a number of different means,including the Internet, through the vendor's private network or data center, or via directconnections from the customer to the Exchange.
Additional information on accessing
https://www.cmegroup.com/globex.html.

Globexisavailable

on

the

Web

site

at

For further information on Globex, please contact Global Account Management:
United States: +1 312-634-8700
Europe: +44 800 898 013
Asia: +65 6593 5505
globalaccountmanagement@cmegroup.com

9-4

April 2023

Clearing Membership
Contact Listing and Resource Guide

Contact Listing
Suzanne Sprague

Sr MD, Global Head of Clearing(312) 930-3260

Debbie Kokal

Executive Director, FRS Dept(312) 930-3235

Suzanne.Sprague@cmegroup.com
Debbie.Kokal@cmegroup.com

Senior Director, FRS Dept(312) 648-3802

Cathleen.Downs@cmegroup.com

Senior Director, FRS Dept(312) 338-2405

Laurie.Egan@cmegroup.com

Director, FRS Dept(312) 930-3236

Kristen.Klein@cmegroup.com

Lee Betsill

Managing Director, CRO(312) 338-2779

Lee.Betsill@cmegroup.com

Terry Ruppe

Senior Director, Banking + Collateral(312) 930-3223

Terry.Ruppe@cmegroup.com

Michael Kobida

Executive Director, CollateralServices(312) 454-8961

Michael Kobida @cmegroup.com

Robert Krewer

Director, Membership Services(312) 435-3473

Robert.Krewer@cmegroup.com

Jule MondscheinSupervisor, Membership Services(312) 435-3485

Jule.Mondschein@cmegroup.com

FRS Department
Cathy Downs
Laurie Egan
Kristen Klein
Clearing House

Membership Services
Department

10-1

April 2023

Clearing Membership
Contact Listing and Resource Guide

Resource Guide
Rule Books and Exchange Manuals
x

CFTC Regulations
https://www.ecfr.gov/cgi-bin/textidx?SID=e8419eb63d5d1968fa5b740969ee59d8&c=ecfr&tpl=/ecfrbrowse/Title17/17cfrv1_02.tpl

x

CME Clearing House Manuals of Operations
http://www.cmegroup.com/clearing/operations-and-deliveries/system-manuals.html

xCME, CBOT, NYMEX and COMEX Rule Books
http://www.cmegroup.com/market-regulation/rulebook/x

NFA Rule Book
www.nfa.futures.org

Commodity ManualsxxxxCFTC 1-FR Instruction Manual
CFTC Financial & Segregation Interpretations 1-14
CFTC Advisories and Interpretative Letters
Joint Audit Committee (JAC) Margins Handbook

http://www.jacfutures.com/jac/Documents.aspx
www.cftc.gov/opa/opaletters.htm
http://www.jacfutures.com/jac/Documents.aspx

Publications
CME Group
x CME Group Inc.’s Annual Report
http://investor.cmegroup.com/investor-relations/financials.cfm
x

The Financial Safeguard System CME Clearing
http://www.cmegroup.com/clearing/cme-clearing-overview/safeguards.html

Membershipx

CME, CBOT, NYMEX and COMEX Clearing Fee Schedules
http://www.cmegroup.com/company/clearing-fees/index.html

xEquity Member Rate Subscription Program
http://www.cmegroup.com/company/clearing-fees/index.html

xClearing Membership Handbook
http://www.cmegroup.com/company/membership/files/cme-group-clearing-membership-handbook.pdf

10-2

April 2023

Clearing Membership
Contact Listing and Resource Guide
Regulatoryx

Financial and Regulatory Bulletins (FRBs)(Located under “Clearing Advisories”/ “Audit Advisories”)
http://www.cmegroup.com/toolsinformation/advisorySearch.html#cat=advisorynotices%3AAdvisory%20Notices&pageNumber=4x

CME Clearing House Advisories
http://www.cmegroup.com/tools-information/subscriptions/advisory-subscribe.html

x

JAC Regulatory Alertsx

WinJammer Quick Start Guide www.nfa.futures.org/NFA-electronic-filings/winJammer.HTML

http://www.jacfutures.com/jac/RegAlerts.aspx

Forms and Formats
Membershipx

Clearing Membership Applications

x

Clearing Member Membership and Class B Share Assignment Application
http://www.cmegroup.com/company/membership/files/ClassBShareAssignmentApplication.pdf

See Chapter 1 for links to applicable documents.

Corporate and Fund Membership Applications
https://www.cmegroup.com/company/membership/corporate.html
xIndividual Membership Application (Short Form and Long Form)
https://www.cmegroup.com/company/membership/individual.html

xShareholder Relations and Membership Services – Various Forms
http://www.cmegroup.com/company/membership/membership-resources.html

Regulatoryx

Subordinated Loan Agreements - Sample Formats
http://www.cmegroup.com/clearing/audit/audit-department-forms.html

Other CME Group InformationxMembership Prices
http://www.cmegroup.com/company/membership/membership-pricing.html

Any questions and/or requests for materials can be directed to the Financial and Regulatory Surveillance
Department at (312) 930-3230.

10-3

April 2023

AGENCY AGREEMENTWHEREAS,(“Member”) with offices located atisaclearing member of Chicago Mercantile Exchange Inc. ("CME"), Chicago Board of Trade, Inc.
(“CBOT”), New York Mercantile Exchange, Inc. (“NYMEX”), and/or Commodity Exchange, Inc.
(“COMEX”), (collectively, “Exchanges”), as applicable, and such other exchange as may becomea member of CME Group Inc. (“CME Group”);
WHEREAS, the Member hereby appoints _(“Agent”) as its agent for service of process and other communications in connection with theabove-referenced business; andWHEREAS, the Agent accepts such appointment to act as agent for service of process
and other communications;
NOW THEREFORE, the parties agree as follows:1.

Services. The Member appoints the Agent as its agent for service of process and othercommunications in connection with its activities related to clearing membership. The
Agent shall accept service of process and other communications on behalf of the Member
and shall transmit such communications to the Member. Such communications shall betransmitted to the address set forth above or by electronic or telephonic means.

2.

Termination of Agreement. This Agency Agreement (“Agreement”) may be terminated byagreement of the parties provided that the Member first provides to the Exchanges an
Agreement appointing an agent for service of process that is acceptable to the
Exchange(s).

3.

No Assignment. This Agreement shall not be assigned by either party without the writtenconsent of Exchange staff.

4.

Applicable Law. This Agreement shall be governed by and construed in accordance withthe laws of the State of(Illinois or New York), United States of America.

5.

Choice of Forum and Consent to Jurisdiction.
jurisdiction of the courts (check one):____

Each party consents to the personalof Illinois and the United States District Court for the Northern District of Illinois overany action at law, suit in equity, or judicial proceeding under or which may otherwise
arise out of the Member activities as a clearing member or this Agreement andagrees not to contest venue for any such proceeding in Cook County, State of
Illinois. The Member agrees that any action at law, suit in equity, or judicial
proceeding under or which may otherwise arise out of the Member’s activities as a

September 2013

clearing member or this Agreement shall be instituted by the Member only in the
Courts of the State of Illinois or the United States District Court for the Northern
District of Illinois.
____

New York and the United States District Court for the Southern District of New Yorkover any action at law, suit in equity, or judicial proceeding under or which mayotherwise arise out of the Member’s activities as a clearing member or thisAgreement and agrees not to contest venue for any such proceeding in KingsCounty, State of New York. The Member agrees that any action at law, suit inequity, or judicial proceeding under or which may otherwise arise out of theMember’s activities as a clearing member or this Agreement shall be instituted by
the Member only in the Courts of the State of New York or the United States District
Court for the Southern District of New York

6.

Severability. If any provision of this Agreement is held by any Court of competentjurisdiction to be invalid, illegal or unenforceable for any reason, the remaining provisions of
this Agreement shall not be affected and this Agreement shall be construed and enforced
as if this Agreement did not contain the provision which is held to be invalid, illegal, or
unenforceable.

7.

Heirs, Successors, and Assigns. This Agreement shall be binding on and shall inure to thebenefit of the heirs, executors, administrators, successors, and assigns of the parties.
Nothing in this paragraph shall be construed as a consent by either party to any
assignment of this Agreement except as provided in Paragraph 3 of this Agreement.

8.

Notices. Except as provided in Paragraph 1, all notices or communications required by or
given under this Agreement shall be deemed given as of the date of receipt or, if earlier, asof the date five days after such notices or communications are deposited in the UnitedStates mail, airmail postage prepaid, or in the mails of any other country, airmail postage
prepaid, or delivered to any generally recognized international air carrier.
All notices to the Agent shall be addressed as follows:_________________________________________________________________________________________________________

September 2013

All notices to the Member shall be addressed to the address set forth at the beginning of
this Agreement.
Executed on ___________________, 20____, at_(City)_(State, Province, etc.)_(Country)___________________________________(Signature)___________________________________(Printed Name)___________________________________(Title)Approved and accepted by the Agent on ____________________, 20____,___________________________ ________________________________ ________________(City)(State, Province, etc.)(Country)AGENT
By: ___________________________________(Signature)___________________________________(Printed Name)___________________________________(Title)September 2013

Clearing Member Firm – Membership Assignment Form
The clearing membership assignment form is required pursuant to CME, CBOT, NYMEX and COMEX Rule902 (as applicable) where certain qualified entities or individuals assign their membership(s) for theclearing member firm’s membership status.
1. Clearing Member Firm Name (Assignee):

2. Seat Owner Name (Assignor):

3. Please indicate Assignor’s relationship to clearing member firm (please select one):
Clearing Member Firm
Parent company with acceptable proprietary interest in Clearing Member Firm
Individual owner with acceptable proprietary interest in Clearing Member Firm
Independent assignment
4.	Indicate the Exchange, Division and Membership Number for each membership that will be assigned forclearing membership status.
Exchange

Division

Membership Number

The Assignor hereby agrees to assign the listed membership(s) in CME Group Inc. to the Assignee pursuant to Exchange Rule902. The Assignor and Assignee hereby acknowledge they have read and understand all provisions within Exchange Rule 902.
Upon default of Assignee in meeting its obligations to CME Group Inc. or its subsidiaries or upon the Clearing House Risk
Committee’s determination that the Assignee’s financial position jeopardizes the financial integrity of the Exchange, CME
Group Inc. may direct the sale of any or all of the Assignee’s Membership(s). The proceeds from the sale of the Membership(s)shall be used to satisfy Rule 110 obligations and any obligations resulting from the Assignee’s default as provided in Exchange
rules including, but not limited to, Exchange Rule 913. Assignee and Assignor consent to the exclusive jurisdiction of any
federal or state court in Chicago, Illinois with respect to any action between Assignee, Assignor and/or CME Group Inc. or
its subsidiaries arising from this Assignment Agreement and hereby waive any right to transfer the venue of such litigation.
Assignee and Assignor agree 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.

Signed (on behalf of the Assignor – Seat Owner)

Signed (on behalf of the Assignee – Clearing Member Firm)

Name (printed)

Name (printed)

Date

Date
CME GROUP INC.

CLEARING MEMBERSHIP ASSIGNMENT FORMJANUARY 2016

Member Firm – Share Assignment Form
The share assignment form is required pursuant to CME, CBOT and NYMEX 106.J. and 106.S. Rules (asapplicable) where certain qualified entities or individuals assign their CME Group shares for the firm’s
membership status. A separate assignment form must be completed by each shareholder who wishes toassign such shares for a member firm. Please note only shares that are maintained an account with the
Exchange’s transfer agent may be assigned for a firm’s membership status.
1. Member Firm Name (Assignee):

2. Share Owner Name (Assignor):

3. Please indicate Assignor’s relationship to member firm (please select one):
Member firm
Eligible affiliated corporate entity
Individual owner with acceptable proprietary interest in member firm
Eligible principal or employee of member firm
Independent assignment
4.	Number of CME Group shares being assigned.

Signed (on behalf of the Assignor – Share Owner)

Signed (on behalf of the Assignee – Member Firm)

Name (printed)

Name (printed)

Date

Date

CME GROUP INC.

CORPORATE MEMBERSHIP SHARE ASSIGNMENT FORMJANUARY 2016

Acknowledgement of Rule 110 andIndemnification of Transfer
1. Clearing Member Name (“Clearing Member”)

2. Transferee

3. Transferor

4. Seat Holder Name (as applicable) (“Holder”)

5. Please indicate Exchange, Division and Membership Number of the leased seat.
Exchange

Division

Membership Number

Clearing Member hereby agrees that the transfer of the membership interest registered in the name ofTransferor to Transferee and, as applicable, Holder pursuant to Rule 105 (“Application for Membership”) andRule 106 (“Transfers, Security Transactions, and Authorizations to Transfer or Sell”) does not extinguish any
Rule 110 (“Claims Against Member, Application of Proceeds”) claims that have been or may be filed against themembership interest being transferred. Furthermore, in addition to any claims which may arise from being thequalifying Clearing Member of the Transferor, Clearing Member agrees to pay all such valid Rule 110 claims up
to the value of this membership interest on the date of this transfer and to indemnify and hold harmless the
Exchange from any claims, demands, actions, liabilities or losses, including costs and attorney fees, arising or
resulting from or incurred as a result of the waiver of the posting period for this membership transfer.

Signed (on behalf of the Authorized Representative of Clearing Member)

Name (printed)
Date

CME GROUP INC.

RULE 110 INDEMNIFICATION FORMFEBRUARY 2016

CLEARING MEMBERSETTLEMENT ACCOUNTSAND DEBIT AUTHORIZATION
CLEARING MEMBER FIRMS MUST CONTACT THE DESIGNATED SETTLEMENT BANK(s) AND EXECUTE ALL DEBITAUTHORITY DOCUMENTATION THAT ALLOWS CME TO DEBIT THE APPROPRIATE BANK ACCOUNT(s) FOR SETTLEMENTPURPOSES.

Clearing Member Firm #_______

Asset Account(s) #_______USD Settlement Bank Account Number(s):SETTLEMENT BANKBank of America N.A.

CUSTOMERSEGREGATEDACCOUNT

HOUSE/NON-SEGREGATEDACCOUNTCUSTOMER
CLEARED SWAPSACCOUNT
N/A

Bank of China Ltd, NY
BranchBank of New York
MellonBarclays Bank PLC,
NY Branch
Brown Brothers
Harriman & Co.
BMO Harris Bank,
N.A.
Citibank N.A., NY

JP Morgan Chase, NY

Lakeside Bank

N/A

GUARANTY FUNDDEPOSITENABLE CCF*
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Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both*By electing to enable CCF (combined cash flow) the clearing member elects to have variation collects remain at
CME rather than wired back to the settlement bank. The cash on deposit can be used to meet IM requirements or
fulfill a variation obligation in a future settlement cycle. Contact ClearingHouseFinancial@cmegroup.com for more
information.

September 2018

Non-USD Settlement Bank Account Number(s):Please refer to the list of acceptable banks http://www.cmegroup.com/clearing/financial-and-collateralmanagement/settlement-banks.html
Currency

Settlement Bank

Account Number

Segregation Class(NSEG, CSEG, COTC)

Enable CCF
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September 2018

Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
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Collects
Both
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Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
Collects
Both
Pays
CollectsBothBy signing below, you are authorizing CME to unilaterally debit any of the account(s) listed above in accordancewith CME rules, policies and procedures and in amounts solely determined by CME. In addition, you represent thatyou are an authorized signatory at the bank(s) on the account(s) provided on this form, and that the account(s) areowned by the Clearing Member Firm.

________________________________________(Clearing Member Firm Name)____________________________________(Signature)____________________________________(Printed Name)____________________________________(Title)____________________________________(Date)

Operational Contact Information:
Please provide an operational contact or set of contacts at your firm which CME Clearing Banking & Collateral Team may reach out toregarding coordination of debit authority testing and system setup for the account(s) listed on this form.

First Name

September 2018

Last Name

Title

Phone

Email Address

CR
ROSS-GUARRANTEE AG
GREEMENTIn
n considerattion of Chica
ago Mercantile Exchangge Inc. (“CMME”), Boardd of Trade of
o the
and
City of Chicago, Inc. (“CBOTT”), New YorkY
Mercanntile Excha
ange, Inc. (“NYMEX”),(
Commoddity Exchan
nge Inc. (“CCOMEX”) (collectively, “Exchangees”), acceptting/retaining
g as
Clearing Members ____________________________________________________________________
and _________________________________________________________________________ (each(hereinaftter referredd to individ
dually as a “Guaranteeing Mem
mber” and collectivelyy as“Guarantteeing Membbers”), whichh share com
mmon ownerrship, contro
ol or profits asa set forth in the
Exchanges’ Rule 901
1.G., each GuaranteeingG
g Member hereby:
1.

Uncon
nditionally guarantees andapromisees payment of any and all indebted
dness
or othher obligation
ns which thee other Guarranteeing Member may now or hereeafterowe to the Excha
anges. The
e Exchangess will attemp
pt to notify the Guarante
eeing
Memb
ber by teleph
hone of any default by thet other Gu
uaranteeing Member and will
thereaafter confirm
m such notice in writing;w
how
wever, the liability off theGuaraanteeing Me
ember to the Exchangess for such deefault pursua
ant to this CrossC
Guara
antee Agree
ement shall become duue and paya
able immediiately upon suchdefault;2.

Agree
es that suchh Guarantee
eing Membe
er’s liability hereunderhmmay
be enfo
orced
withouut notice tot it and without firsst proceediing againstt the defau
ultingGuara
anteeing Me
ember or ressorting to any collateral, security or other guara
antorsor obligors, if any, or pursuing any oth
her remedy. Any collatteral, securiity or
obligaations of anyy other gua
arantors or obligors,oif any,a
may bee sold, relea
ased,surrenndered, excchanged, settled,scommpromised, waived, subordinatedsd or
modified, in eachh case withoout consideration and on any termss and condittions,
withouut notice to or further assent fromm either Gu
uaranteeing Member. EachGuara
anteeing Me
ember’s lia
ability is se
everal and independen
nt of any otherguara
antees in effe
ect with resp
pect to any partp of the abbove obligattions and ma
ay be
enforcced regardle
ess of the exxistence of any other gua
arantees;

3.

Agree
es that nottwithstanding
g any otheer provisionn in this Cross-Guara
C
antee
Agree
ement, this guarantee
g
s
shall
continu
ue in effect or shall be reinstated iff any
time, payment or other perforrmance, or any
a part theereof, by eith
her Guarante
eeing
ber to the Exchanges with respect to any ofo the abovve obligation
ns is
Memb
rescinnded, or musst otherwise be repaid byb the Excha
anges as ressult of bankru
uptcy
or reoorganization of either Gu
uaranteeing Member;
M

4.

Agree
es that no paymentpor otheroperformance by eithereGuara
anteeing Member
shall entitle it, byy subrogatioon or otherw
wise, to any right again
nst the defau
ultinganteeing Me
ember, inclu
uding any pa
ayment by thetdefaultin
ng Guarante
eeing
Guara
Memb
ber or out off property off the defaultting Guaranteeing Mem
mber, except after
the fuull performan
nce, paymen
nt and dischharge of all ofo the above
e obligationss. All
Decemberr 2008

remedies, rights, powers and privileges granted to the Exchanges pursuant tothis Cross-Guarantee Agreement are cumulative and not alternative. The
exercise of any or all such rights by the Exchanges shall not reduce, limit, impair,discharge, terminate or otherwise affect the liability of either Guaranteeing
Member. No failure or delay by the Exchanges in exercising any remedy, right,
power or privilege pursuant to this Cross Guarantee Agreement shall operate as
waiver thereof and any such remedy, right, power or privilege may be exercisedby the Exchanges at any time. No partial exercise of any such rights shallpreclude further exercise or the exercise of any other remedy, right, power or
privilege by the Exchanges;
5.

Agrees that no modification of this Cross-Guarantee Agreement or waiver of any
portion hereof shall be valid unless in writing and signed by the Exchanges andthen only to the extent specifically set forth in such writing. No notice or demandby the Exchanges upon either Guaranteeing Member or any other guarantor of
the above obligations shall preclude the Exchanges from taking further action
without notice or demand;

6.

Agrees that this Cross-Guarantee Agreement is binding upon its respective heirs,
personal representatives, successors and assigns, and shall inure to the benefitof and be enforceable by the Exchanges and its transferees, successors andassigns. Each Guaranteeing Member hereby waives notice of any suchassignment by the Exchanges;

7.

Agrees that this Cross-Guarantee Agreement and all rights, obligations andliabilities arising hereunder shall be governed by the laws of the State of Illinois
in all respects, including but not limited to matters of construction, validity andperformance;

8.

Agrees that any action or litigation of any kind whatsoever initiated by the
Guaranteeing Members or the Exchanges in connection with this CrossGuarantee Agreement, shall be adjudicated in a court of competent jurisdiction
located in Chicago, Illinois. The Guaranteeing Members and the Exchanges
hereby consent to the jurisdiction of such courts and to service of process by anymeans authorized by Illinois or Federal law and hereby waive the right to transfer
the venue of any such litigation or action; and9.

Agrees that if (1) one of the Guaranteeing Members ceases to be a clearing
member of the Exchanges or (2) the Guaranteeing Members provide the
Exchanges with written notice that they no longer share common ownership,
control or profits as set forth in Rule 901.G., this Cross-Guarantee Agreement
shall remain in effect until the Clearing House Risk Committee of the CME
Clearing House determines that any and all indebtedness and other obligations
owing to the Exchanges from each Guaranteeing Member have been satisfied infull.

___________________________________(Guaranteeing Member)(Guaranteeing Member)

By: ___________________________________

By:(Signature of General Partner or Authorized Officer)(Signature of General Partner or Authorized Officer)

2
December 2008

______________________________________(Printed Name / Title)(Printed Name / Title)______________________________________(Date)(Date)

3
December 2008

`

Guarantee of Obligations

Please Check the Appropriate Box:[ ] Reorganization[ ] Replacement___________________________________ will be replacing ___________________________ as a
(New Clearing Member)(Current Clearing Member)clearing member of (each an "Exchange”) (select all that apply):___ Chicago Mercantile Exchange Inc.
___ Board of Trade of the City of Chicago, Inc.
___ New York Mercantile Exchange, Inc.
___ Commodity Exchange, Inc.
effective ________________. (Date)__________________________________ agrees to unconditionally guarantee and assume all obligations(New Clearing Member)of _______________________________ with each Exchange.
(Current Clearing Member)This includes, but is not limited to, the following:1.
Unresolved trades (outtrades),2.
Unresolved complaints,
3.
Clearing fee liabilities arising from past transactions,
4.
Delivery obligations,
5.
Payment obligations,6.
Valid claims in accordance with Rules 110, 8G913 and 913; and,7.
Any other outstanding obligation with each Exchange.
_______________________ also agrees that it will assume responsibility for all agreements entered into
(New Clearing Member)by _____________________________ with each Exchange. This includes, but is not(Current Clearing Member)

limited to, the following:
1.
Assignment of memberships and/or shares,
2.
Qualification Agreement,
3.
Authorized signatures,
4.
Employee transfers pursuant to Rule 106.F.,
5.
Clearing Membership Agreement: and,6.
Any other agreements required by each Exchange's Rules
Furthermore, _______________________ agrees to indemnify and hold harmless each Exchange and its
Board of Directors, officers and employees from any claims, demands, actions, liabilities or losses,
including costs and attorney fees, arising or resulting from or incurred as a result of the waiver, if any, ofthe posting period for the clearing member change indicated above and for the shares transferred inconnection with the clearing member change indicated above.
Signed and executed by a duly authorized representative of:___________________________________(Current Clearing Member)(New Clearing Member)

By: ___________________________________

B y : ____________________________________(Signature of General Partner or Authorized Officer)______________________________________(Printed Name / Title)______________________________________(Date)(Signature of General Partner or Authorized Officer)(Printed Name / Title)(Date)

April 2023

Guaranty Fund
Guarantee of Obligations to
Chicago Mercantile Exchange Inc.

In conjunction with the withdrawal of _____________________________________, a Clearing Member of(Current Clearing Member)_______________________________________________________ (“Exchange(s)”), and the approval of_________________________________________________ as a Clearing Member of the Exchange(s),(New Clearing Member)_________________________________________________ agrees to the following:(New Clearing Member)______________________________ agrees to pay any valid claims filed pursuant to Rule 110, 8G913,(New Clearing Member)and 913, in conjunction with the withdrawal of ______________________________________ as a(Current Clearing Member)
Clearing Member of the Exchange(s). Such guarantee is limited to the amount of____________________’s guarantee fund with CME in the amount of $___________________________.
(Guaranty Fund Requirement at Withdrawal Date)(Current Clearing Member)This agreement is effective on __________________________________________________, the date of(Withdrawal date)_______________________________________________’s withdrawal and will remain in effect until the(Current Clearing Member)disposition of all claims filed upon pursuant to Rules 110, 8G913 and 913.
This agreement is binding upon _________________________________________ and its successors.
(New Clearing Member)

Signed and executed by a duly authorized representative of ___________________________________:(New Clearing Member)_______________________________________(Guaranteeing Clearing Member)

By: ________________________________________(Signature of General Partner or Authorized Officer)___________________________________________(Printed Name / Title)___________________________________________(Date)

April 2021

Memorandum______________________________________________________________________
FEE POLICY BULLETIN
TO:

Chief Financial Officers
Chief Compliance Officers
Corporate Members
New Firm Approval Contacts
Firm EFS Contacts

FROM:

Audit Department, Clearing House Division

DATE:

June 16, 2009

SUBJECT:

Clearing and Globex® Fees for Member Firm Accounts#09-01

CME Group Inc. (“CME Group”) sets the fee policies for its four subsidiary exchanges - Chicago
Mercantile Exchange Inc. (“CME”), Chicago Board of Trade, Inc. (“CBOT”), New York
Mercantile Exchange, Inc. (“NYMEX”) and Commodity Exchange, Inc. (“COMEX”).
In December 2008, CME Group issued Fee Policy Bulletin (”FPB”) #08-02 concerning Clearing
and Globex Fees. In response to market participant feedback and concerns, CME Group is
issuing this FPB to enunciate CME, CBOT, NYMEX and COMEX member fee eligibility policies
and to update and clarify them as needed. These policies, where different from those in effecttoday, are effective July 1, 2009. This FPB supersedes all previous bulletins discussing fee
policy issues for member firm accounts.
The trading activity of member firms must adhere to our policies in order to be granted member
fees – equity member or preferential fees as applicable. CME Group has established member
firm trading policies to ensure that the trading activity conducted for the member firm account isfor the sole benefit of the member firm itself and not the trading activity of individual
customers/traders conducted in the name of the firm; i.e. to prevent arcade type trading under
the guise of member firm trading and the “selling” of member firm rates. To that end, thefinancial benefit and risk of the trading activity must be solely of the member firm. Further themember 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 fortrade execution.
The trading environment and the customer base has evolved and expanded over the years. We
have seen a tremendous growth in both clearing and corporate membership for trading groups.
These trading groups have their own unique capitalization, ownership structures, trader
compensation and trading styles.

Clearing and Globex® Fees for Member Firm Accounts
June 16, 2009
Page 2This FPB presents both Requirements (Absolutes) and Best Practices for defining whenmember firm trading activity will be granted member fees. In recognition of the varying trading
operations, Best Practices were established to allow member firms to utilize certain businesspractices (most not allowed in the past) which are generally prohibited. In order to do so, themember firm must clearly demonstrate to CME Group their application of these non-compliant
practices is not inconsistent with CME Group’s goal of providing member fees for trading activity
for the account and sole benefit of the member firm.

1.

REQUIREMENTS

1.1

Member Firm Trading AccountIn order to obtain member clearing fees, CME Group rules require that the member firm trading
account of CME, CBOT, NYMEX and COMEX clearing members1, CME and CBOT Rule 106.H.
trading members, CBOT Rule 106.J. equity members, NYMEX and COMEX Rule 106.J.
members2, CME and CBOT Rule 106.I. affiliated members, CME and CBOT Rule 106.R.
electronic corporate members and CME and CBOT Rule 106.S. family of funds members mustbe 100% owned by the firm.3•

For CME clearing members the CME trading activity conducted for the account of 100%
owned subsidiaries is entitled to equity member clearing fees.

•

For CBOT clearing members the CBOT trading activity of 100% owned subsidiaries is notentitled to member clearing fees unless the subsidiary itself qualifies as an Affiliate Member
Firm/Affiliate Umbrella Member Firm under CBOT Rule 106.I. That is, CBOT clearing
membership fee benefits do not flow down to 100% owned subsidiaries.

•

For NYMEX and COMEX clearing members the NYMEX and COMEX trading activity of
100% owned subsidiaries is not entitled to member clearing fees. That is, NYMEX andCOMEX clearing membership fee benefits do not flow down to 100% owned subsidiaries.
Furthermore, affiliates and subsidiaries of NYMEX and COMEX clearing members must
become member firms themselves in order to receive membership benefits.

•

For CME and CBOT Rule 106.H./I./S. and CBOT Rule 106.J./R. corporate members toreceive member fees, all member firm trading must be conducted within the division ofmembership held. Member firm trading activity of such corporate members outside thedivision of membership held will receive non-member customer fees.

1

For clarity, clearing member includes CME corporate equity member (formerly known as inactive
clearing member).
2

For clarity, NYMEX and COMEX Rule 106.J. members were previously known as NYMEX and COMEX
non-clearing members.
3

For purposes of this FPB, clearing members referenced without a preceding CME, CBOT, NYMEX or
COMEX designation, include CME, CBOT, NYMEX and COMEX clearing members.

Clearing and Globex® Fees for Member Firm Accounts
June 16, 2009
Page 3•

For CME Rule 106.R. corporate members to receive member fees, all member firm trading
must be conducted in accordance with the Questions & Answers Guide for Electronic
Corporate Members under CME Rule 106.R. which may be found on CME’s Web site at
http://www.cmegroup.com/company/membership/files/ECMQA.pdf.

•

Affiliates and subsidiaries of CME and CBOT Rule 106.H./R. and CBOT Rule 106.J.
corporate members are not entitled to the membership benefits of the corporate member.

•

Affiliates and subsidiaries of NYMEX and COMEX Rule 106.J. members are not entitled tothe membership benefits of the member. Note: A COMEX Option Only Rule 106.J. member
is only entitled to member clearing fees on COMEX option contracts.

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 riskof loss.

•

No non-owner traders may make any contributions, loans (including subordinated loans) or
payments to the member firm or member firm trading account nor have any capital at risk
except for holdbacks as permitted 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 of the firm.

•

All profits and losses of the member firm account are written off to the income of themember firm and are taxed to the member firm in accordance with IRS regulations.

These accounts must be registered in CME’s Exchange Fee System (“EFS”) and CBOT’s and
NYMEX’s Combined Fee System (“CFS”)4 as member firm accounts of the clearing, CME and
CBOT Rule 106.H./I./R./S. or CBOT, NYMEX and COMEX Rule 106.J. member as appropriate.

1.1.1

Joint Accounts with Individual Equity/Lessee5 Members

A clearing, CME and CBOT Rule 106.H./I./R./S. or CBOT, NYMEX and COMEX Rule 106.J.
member may have a joint account with an equity or lessee member and receive preferential
fees on contracts under the lowest division of membership held. These accounts must be
registered in the Fee System under the joint account owner with the lowest division ofmembership held. Further the account title field in the Fee System must identify all owners of
the joint account.

4

For purposes of this FPB, the term “Fee System” will include CME’s fee system referred to as EFS andthe combined fee system of CBOT and NYMEX referred to as CFS.

5

For clarity, lessee includes delegate; CBOT previously defined individuals leasing a membership(lessees) as delegates.

Clearing and Globex® Fees for Member Firm Accounts
June 16, 2009
Page 4

1.2

Member Firm Traders6 for Globex Activity

The member firm trading activity must be conducted byoperators/administrators of Automated Trading Systems (“ATS”) that are:traders

including•Bona-fide IRS Form W-2 (‘W-2”) employees (or equivalent W-2 of a foreign jurisdiction) of
the member firm; or•

Independent contractors and other self-employed individuals of the member firm whose totalcompensation (that is, all compensation) is reported on an IRS Form 1099-MISC (“1099MISC”) (or equivalent document of a foreign jurisdiction); or•

Independent contractors and other self-employed individuals of clearing, CME and CBOT
Rule 106.I. and CBOT, NYMEX and COMEX Rule 106.J. members who maintain at least$250,000 in holdbacks whose total compensation (that is, all compensation) is reported on a1099-MISC (or equivalent document of a foreign jurisdiction) and/or on a IRS Form 1099-B(“1099-B”); or•

Owners who maintain at least $250,000 in bona-fide capital and holdbacks for clearing,
CME and CBOT Rule 106.I. and CBOT, NYMEX and COMEX Rule 106.J. members7; or•Bona-fide owners of the firm for CME and CBOT Rule 106.H./R. members; or•Individual equity members8 of CME, CBOT, NYMEX and COMEX trading within theirrespective exchange and division of membership except for CME Rule 106.R. members.
Traders of CME Rule 106.R. members may not own, hold, or have owned or held amembership in any of CME’s divisions within the past two years; or•CME, CBOT, NYMEX and COMEX Rule 106.F. Clearing Member Transfer and CME and
CBOT Rule 106.I. Related Party Transfer members; or

6

For CBOT clearing members and CBOT Rule 106.I./J. members, the memberships status of theindividual entering the trade will impact the level of member fee charged. Please refer to the current
CBOT Clearing Fee Schedule at http://www.cmegroup.com/company/clearing-fees/index.html.
7

The acceptable bona-fide capital level for owners has been reduced from $500,000 to $250,000
effective July 1, 2009. In addition holdbacks will be considered along with any capital investment inmaintaining the $250,000 level. Prior to January 1, 2009, the acceptable bona-fide capital level forowners of CBOT clearing members and CBOT Rule 106.I./J. members was $200,000. All owners of such
CBOT member firms with a bona-fide interest of at least $200,000 as of December 31, 2008 were
grandfathered in at the $200,000 level. Note that the grandfathering is specific to the individual owners
and the particular CBOT member firm and cannot be transferred.
8

For clarity, individual members participating in the Clerk for Member Program may not utilize their clerks
to enter orders for member firm trading. That is, the Clerk for Member Program does not apply tomember firm trading; it is only applicable to the trading of individual members. Such clerks themselves
must be qualified traders for member firm trading.

Clearing and Globex® Fees for Member Firm Accounts
June 16, 2009
Page 5•

Registered Commodity Trading Advisors (“CTAs”), exempt CTAs under CFTC Regulations
4.14(a)(4), 4.14(a)(5), 4.14(a)(8)(i)(D) or 4.14(a)(10), and Investment Managers authorized
by the Financial Services Authority (“FSA”).

All member firm traders must be assigned unique trader IDs, those IDs and the associatedmember firm trader must be appropriately registered in the Fee System, and all Globex trades(orders) must be identified with the registered ID of the trader executing the trade.
•

Clearing, CME and CBOT Rule 106.I./S., CBOT Rule 106.H./J./R. and NYMEX and COMEX
Rule 106.J. member firm traders must be further defined as “W-2 Employee”, “Commodity
Trading Advisor”, “Independent Contractor 1099-MISC”, “Rule 106.F. Trader”, “Owner w/
Acceptable Interest”, or for clearing, CME and CBOT Rule 106.I. and CBOT, NYMEX andCOMEX Rule 106.J. members as “Trader w/ Acceptable Holdback”, or for CBOT clearing
and CBOT Rule 106.I./J. as “Member” as applicable.

•

Clearing, CME and CBOT Rule 106.I./S., CBOT Rule 106.H./J./R. and NYMEX and COMEX
Rule 106.J. member firm traders which are compensated through a W-2 or 1099-MISC for
their trading profitability must be registered in EFS as “W-2 Employee” or “Independent
Contractor 1099-MISC”, as appropriate, even if they are an owner of the firm with less thanan acceptable proprietary interest.

•

For operators/administrators of an ATS and for the ID under which an ATS submits orders,the “ATS” box on the Fee System registration screen must be checked.

1.2.1

Bona-fide Employees

Bona-fide employees of the member firm are evidenced through:•Issuance of an W-2, or foreign equivalent, for all compensation (i.e. salary and bonus) to thetrader by the member firm;•

Inclusion in the firm’s payroll tax records; and•The trader has no income until the firm pays the trader.

1.2.2

Independent Contractors

1099-MISC independent contractors/self-employed individuals of a member firm may receive
member fees when trading a member firm’s account.
Except as provided in the following paragraph, the member firm trading activity of independent
contractors and other self-employed individuals whose compensation is reported on an IRS
Form 1099 which is not a 1099-MISC (e.g. 1099-B) or equivalent document of a foreign
jurisdiction will be assessed fees based on the lowest division of membership held by both thefirm and the independent contractor/self-employed individual.99Traders receiving compensation reported on a 1099-B are regarded as “holders” of the positions and,as such, the account would not qualify as a member firm account.

Clearing and Globex® Fees for Member Firm Accounts
June 16, 2009
Page 6For clearing, CME and CBOT Rule 106.I. and CBOT, NYMEX and COMEX Rule 106.J.
members, independent contractors and other self-employed individuals who maintain aholdback of at least $250,000 may receive their compensation in any manner including a 1099MISC, 1099-B, or K-1 (if they are an owner as well) for their (not of a team/division) trading
activity of the member firm account. Holdbacks are defined to be a trader’s share of profits
which have not been distributed to the trader and which are held back in an account of the firm.
Holdbacks are not a contribution to the firm in the form of a capital contribution, loan, security
deposit or other payment. Holdbacks may not exceed the trader’s share of net profit/loss in theprevious 24 month period. In addition, holdbacks may not be held by the firm for greater than 2
years without being converted to equity capital; that is the trader would need to become an
equity owner of the firm for their interest held back greater than 2 years.
If the 1099-B independent contractor/self-employed individual is not an equity, lessee or Rule106.F. member or does not maintain a holdback of at least $250,000 as permitted with themember firm and is trading a member firm account, non-member customer fees will apply on
trades executed by the individual. These accounts should not be registered in the Fee System
as member firm accounts and are not eligible for firm-based incentives or discounts.

1.2.3

Bona-fide Owners

Individual owners are considered to have an acceptable proprietary interest in the member firm
as follows:••

Clearing, CME and CBOT Rule 106.I. and CBOT, NYMEX and COMEX Rule 106.J.
members - $250,000 in bona-fide capital.
CME and CBOT Rule 106.H./R. members – no specific dollar level; only bona-fide capitalinterest.

For individual owners, the bona-fide capital interest must be in the form of an equity investment;
it cannot take the form of a loan including a subordinated loan. In addition, for clearing, CME
and CBOT Rule 106.I. and CBOT, NYMEX and COMEX Rule 106.J. members an individualowner’s capital interest as well as any holdbacks may be added together for purposes ofmeeting the $250,000 proprietary interest.
Individual owners of member firms who maintain an acceptable proprietary interest in the firm
may receive member fees on their trading activity of the member firm’s account. Further,individual owners with acceptable proprietary interests who share in the profit split of a team of
traders must share in the profits/losses of the overall firm (e.g. customer business and otherproprietary trading activities) in order to be considered a bona-fide owner. If such individualowners do not share in the overall firm profits/losses, their share of the profit split from the teamof traders must be reported on a W-2 or 1099 MISC in order to receive member fees on the
trading activity of the trader team.
Individual owners of member firms who do not maintain an acceptable proprietary interest in thefirm are not entitled to receive member fees on their trading activity of the member firm’s
account unless their trading profitability is reported to them on a W-2 or 1099-MISC or they areon one of the clearing member firm’s Rule 106.F. memberships.
Individual owners of member firms with less than an acceptable proprietary interest who trade
the member firm account and whose trading profitability is reported on a form other than a W-2

Clearing and Globex® Fees for Member Firm Accounts
June 16, 2009
Page 7or 1099 MISC (e.g. an IRS Form K-1) are assessed fees based on the lowest division ofmembership held by the owner and the firm. If such owners are not equity, lessee or Rule106.F members themselves, non-member customer fees will apply and these accounts should
not be registered in the Fee System and are not eligible for firm-based incentives or discounts.
An investing LLC is prohibited from trading and/or having a specific interest in a member firm
account eligible for equity member rates unless (1) the investing LLC maintains an investmentof an acceptable proprietary interest of bona-fide capital in the member firm for each owner (thatis owner, member and/or equity participation member) of the investing LLC and (2) the trading is
conducted by and only by individual owners of the investing LLC.10

1.2.4

Individual Equity/Lessee Members

A member firm account traded by an equity/lessee member who is not a W-2 employee, 1099MISC independent contractor/self-employed individual, 1099-B independent contractor/selfemployed individual of a clearing, CME and CBOT Rule 106.I. or CBOT, NYMEX and COMEX
Rule 106.J. member who maintains at least $250,000 in holdbacks, or Rule 106.F. member isassessed fees based on the lowest membership status of the firm and the equity/lessee
member. These accounts must be registered in the Fee System under the party with the lowest
division of membership held. Further the account title field in the Fee System must identify themember firm as the account owner.

1.2.5

Rule 106.F. Clearing Member Transfers

Traders on a clearing member’s Rule 106.F. membership may receive their compensation inany manner including a W-2, 1099-MISC, 1099-B, or K-1 for their (not of a team/division) trading
activity of the clearing member firm account. All other requirements for member firm trading
must be met.

1.3

Member Firm Traders for Open Outcry Activity

1.3.1. CME Open Outcry
The member firm trading of a CME clearing member or CME Rule 106.H./I./S. member isentitled to member clearing fees when an individual owning and holding a membership or thefirm’s CME Rule 106.F. or CME Rule 106.H./I./S. member executes it on the floor of theexchange in open outcry.
The member firm trading of a CME clearing member or CME Rule 106.H./I./S. member
conducted with discretion by a CME Rule 106.D. lessee member on the floor of the Exchange inopen outcry will be charged fees based on the lowest membership status of the firm and theCME Rule 106.D. lessee member regardless if the lessee member is a firm W-2 employee or1099-MISC independent contractor/self-employed individual. The CME Rule 106.D. lessee
10

There are no restrictions on passive investing LLCs of members firms. Passive investing LLCs do nottrade or have a specific interest in a trading account(s) and their return is based on the overall firm’s
profitability.

Clearing and Globex® Fees for Member Firm Accounts
June 16, 2009
Page 8member must be registered as an account controller for the clearing or CME Rule 106.H./I./S.
member firm account in the Fee System.

1.3.2. CBOT Open Outcry
The member firm trading of a CBOT clearing member or CBOT Rule 106.H./I./J./S. member isentitled to member clearing fees when an equity member or lessee or the firm’s CBOT Rule106.F. or CBOT Rule 106.H./I./J./S. member executes it on the floor of the exchange in open
outcry.

1.3.3. NYMEX and COMEX Open Outcry
The member firm trading of a NYMEX and COMEX clearing member or Rule 106.J. member isentitled to member clearing fees when an equity member or lessee executes it on the floor of
the exchange in open outcry.

1.4

Member Firm Trader Compensation and Profit Splits

Member firm trading and trader compensation must meet the following requirements:•

Traders cannot be responsible for losses beyond their share of profits earned andmaintained 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 notexceed 80/20 (i.e. 80% to the trader/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
supervision/training of the account(s) and/or trader(s).

Non-owner traders cannot leave their share of profits in the firm for greater than two years
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 two years, theymust become an equity owner.

Clearing and Globex® Fees for Member Firm Accounts
June 16, 2009
Page 9•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.

2.

BEST PRACTICES

2.1

Description of Best Practices

CME Group 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 not allowed in thepast) which are generally prohibited. In order to do so, the member firm must clearly
demonstrate to CME Group their application of these non-compliant practices is not inconsistent
with CME Group’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’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 the member 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 the performance of the trade and notfrom any other source such as a commission or charge for trade execution.
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 themember firm trade. As such, while the Best Practices are not absolutes as theRequirements are, any non-compliance of the Best Practices will be carefully reviewed
with the burden of responsibility on the member firm to clearly support and demonstrate
to CME Group’s satisfaction that the trading is of the member firm itself. Under limited
circumstances in reviewing the totality of the member firm’s trading operations and theviolative practice(s), CME Group may deem the member firm’s trading activities inaccordance with our policies for member firm trading activity that is eligible for member
firm fees.

2.1.1

Interest

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 thepremium is a key component of the overall profitability of the strategy.

Clearing and Globex® Fees for Member Firm Accounts
June 16, 2009
Page 10

The firm may not pay interest on holdbacks where holdbacks are permitted.
The firm may not pay interest on capital contributions.

2.1.2

Allocated Expenses

A 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 mark up on expenses is not permitted. Further, opportunity costs may not beallocated.
Expense allocations may be made on a per trade/contract basis and/or monthly, quarterly,
yearly, or other time period basis.
Direct expenses may include items such as clearing and Globex fees, brokerage commissions(those charged by member firm’s clearing firm), software, connection/line charges, licensing
fees, and market subscriptions. Indirect expenses may include items such as rent, utilities,
membership/share costs, and firm costs for accounting, legal, back-office, compliance, strategy
development, programming, and human resource services.
For all expenses allocated the firm must maintain records of actual costs incurred. All rebatesof expenses incurred must also be reflected in the allocated costs. Further total costs incurred
may not be allocated only to traders but must be allocated to all areas of the member firm’s
operations which benefit; for example rent should be allocated across all areas of the firm
utilizing office space. If an expense is otherwise allocated directly to a trader (for example a line
charge) such expense may not be included in the allocated costs.
The total amount of expenses allocated must be reasonable to the actual costs incurred.
Allocated expenses must be reviewed, and if necessary adjusted, routinely to ensure they
continue to be reasonable in relation to actual expenses. Member firms must maintain andprovide adequate supporting calculations and documentation of such allocated expenses andtheir reasonableness.

2.1.3

Capital Usage Fee

A firm may not charge a fee for capital usage to individual traders of the member firm’s
accounts.

2.1.4

Cost of Capital Fee

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.

2.1.5

Owners Interest in Member Firm Accounts

Individual owners and investing LLCs (as permitted) of a member firm may not have a specificinterest in the profitability of a member firm account or group of accounts other than a member

Clearing and Globex® Fees for Member Firm Accounts
June 16, 2009
Page 11firm account that the individual owners or owners of the investing LLC trade or provide directsupervision/training to. Thus, an individual owner/investing LLC may not be entitled to a directpercentage of the profits of a member firm account traded by a specific “independent”
employee(s) or contractor(s) of the member firm.

2.2

Application of Best Practices

As previously stated non-compliance with the Best Practices is indicative of profiting fromsources other than the performance of the member firm trade and is generally indicative of acustomer relationship versus a member firm trader relationship. Non-compliance with the above
practices will be carefully reviewed with the burden of responsibility on the member firm toclearly support and demonstrate the trading as of the member firm itself. Upon review of thepractice, CME Group will in its sole judgment determine whether the member firm’s practices
are consistent with CME Group’s policies for member firm trading activity that is eligible formember firm fees.
If a member firm has any questions concerning the acceptability of its current or potential
business practices that may appear inconsistent with the Best Practices, please contact the
Audit Department at (312) 930-3230 for forwarding to the Fee Policy Team for discussion andreview.

3.

PENALTIESThe policies set forth herein will be strictly enforced by CME Group. A member, clearing
member, or corporate member found to have engaged in fraudulent or dishonest conduct
or to have acted in bad faith will be subject to a charge of a major rule violation. Major
rule violations are punishable by a fine up to $1,000,000 plus the monetary value of any
benefit received as a result of the violative activity.

If you have any questions, please call the Audit Department at (312) 930-3230.

AUTHORIZATION AGREEMENT FOR PRE-AUTHORIZED PAYMENTS (DEBITSAUTHORIZATION IS NOT TRANSFERABLE OR NEGOTIABLE)I hereby authorize CME Group Inc. to initiate debit entries to the checking account indicated below and theinstitution named below for the payment of amounts owed by this company to CME Group Inc., including
its subsidiaries, Chicago Mercantile Exchange, Inc., The Board of Trade of the City of Chicago, Inc. and
The New York Mercantile Exchange.
I agree to instruct my bank to honor all such transfers. In the event a transfer is returned to CME Group Inc.
dishonored and uncollected, the amount indicated on the transfer will be immediately due and payable, andfurther participation in this service may be terminated at the option of CME Group Inc. In the event I
choose to discontinue this service, I agree to honor any transfers covering amounts due and owing to CMEGroup Inc. which have been drawn on my account prior to receipt by CME Group Inc. of written notice ofsuch discontinuance.
I understand that CME Group Inc. reserves the right to cancel this service at any time upon written notice
to my company. I also reserve the right to cancel my company’s participation in this service by written
notice.
I understand CME Group Inc. will debit Firm's bank account on the 7th business day for Clearing/Exchange
Fees and Non-Clearing Charges on the 25th day of the month.
I. BANK INFORMATION
BANK:
CITY:

STATE:_

TRANSIT/ABA NUMBER:
ACCOUNT NUMBER:
This authorization is to remain in effect until cancelled by either CME Group Inc. or the undersigned.
II. ACCOUNT INFORMATION
Firm Name:
Firm Number:
ADDRESS:
CITY/STATE/ZIPCODE:
PHONE NUMBER:
This authorization is to remain in effect until cancelled by either CME Group Inc. or the undersigned.
AUTHORIZED SIGNATURESNAME

SIGNATURE

TITLE

DATE

NAME

SIGNATURE

TITLE

DATE

Customer Accounts Payable or Accounting contact/Phone Number:

OTC Clearing Firms Only
AUTHORIZATION FOR PRE-AUTHORIZED PAYMENTS(DEBITS AUTHORIZATION IS NOT TRANSFERABLE OR NEGOTIABLE)
CME Clearing Firm identified below (“Clearing Firm”) hereby authorizes Chicago Mercantile Exchange Inc. (and/or
any of its affiliates, including without limitation The Board of Trade of the City of Chicago, Inc. and New York Mercantile
Exchange, Inc.) (collectively, “CME”) to initiate debit entries from each of the respective checking account(s) listed below, heldat each of the bank(s) named below (each, an “Authorized Bank”), for the payment of amounts owed by Clearing Firm to CME(and/or its subsidiaries) (each, a “Transfer”).
Clearing Firm agrees to instruct each respective Authorized Bank to honor all such Transfers. In the event that any
initiated Transfer is returned to CME by the applicable Bank dishonored and uncollected, the amount indicated on the Transfer
will be immediately due and payable by Clearing Member, and further participation in this service may be terminated in CME’ssole discretion.
Clearing Firm understands that CME reserves the right to cancel this service at any time upon written notice toClearing Firm. Clearing Firm also reserves the right to cancel its participation in this service by prior written notice. In the event
Clearing Firm chooses to discontinue this service, Clearing Firm agrees to honor any Transfers covering amounts due and owing
to CME which have been drawn on any of its account identified below prior to receipt by CME of written notice of suchdiscontinuance.
Clearing Firm understands CME will debit Clearing Firm’s bank account in the currency billed on the 7th business dayof the month for Clearing/Exchange Fees and Non-Clearing Charges on the 25th day of the month.

I. AUTHORIZED BANK INFORMATION (Please note “DNA” for any currency that does not apply)

CURRENCY

BANK
NAME

CITY

STATE/
COUNTRY

ACCOUNT
Number

USD
AUD
CAD
CHF
GBP
JPY
EUR
SEK
DKK
NOK
HKD
NZD
SGD
HUF
ZAR
PLN
CZK
MXN
BRL

1

IBAN Number

SWIFT
CODE/ABA
NumberII. CLEARING FIRM INFORMATION
Firm Name: ___________________________________________________________________________
Firm No: _____________________________________________________________________________
Address: ______________________________________________________________________________
City/State/ZIP Code: ____________________________________________________________________
Phone Number: ________________________________________________________________________
Accounts Payable/Accounting Contact & Phone Number: _______________________________________
II. CLEARING FIRM AUTHORIZED SIGNATURES
CLEARING FIRM
By: _______________________________________

By: _______________________________________

Name: ____________________________________

Name: ____________________________________

Title: _____________________________________

Title: _____________________________________

Date: _____________________________________

Date: ______________________________________

2

Exhibit L

Member Firm Online System Access Request Form
Member Firms must keep this form up to date at all times

Request Type

Add

ModifyDeleteClearing Member Firm Information
Firm#:
Firm Name:End User Information
First Name:
Last Name:*CME Group Login ID:

Back Office Manager Information
Full Name:
CME Group Login ID:
Authorizing Signature:
Signature Date:

Environments Needed:(Must choose at least one Environment)
Production

New Release

Certification

All personal information provided under this form will be used, distributed, and maintained in accordance with CME Group’s Privacy Policy.
If completing this form on behalf of another individual, you will ensure that you have the required consent from those individuals to whom the personal
information relates, or you satisfy an applicable legal basis for doing so, in compliance with all applicable laws, to enable CME Group to process such
personal information.

For inquiries regarding passwords and entitlements please contact the EASE Team at:
US: +1 312 456 1560, option 2

Europe: 011 44 203 379 3802

Asia: 011 65 6593 5536

Please allow a minimum of 48 hours for processing your security request
PM2011/021320

CME CLEARING MEMBER FIRM ONLINE SYSTEM ACCESS REQUEST FORM

1

Clearing Application Access*Select Only One Access Type

Please provide Firm number (ex. 123) in space below

Request Systems

UpdateAccessClearing
Firm #

Read-Only
Access

CBT
Firm #

CME
Firm #COMEX
Firm #

DME
Firm #NYMEX
Firm #FEX
Firm #

Asset Management Firm**
Broker Payment System (BPS)
Deliveries Plus**
Deliveries Clearing Agent (optional)
Exchange Fee System Portal (EFS)***EFS Globex Registration
Front End Clearing (FEC+)
Positions – FEC+
Give-Up Payment System (GPS)Settlements Firm**

N/A

NOTE: Some Clearing Firm Applications only require the Clearing Firm # to secure access. Other Clearing Firm Applications are more granular andrequire the Firm #s which are specific to the individual Product Exchanges (ex. CBT, CME, COMEX and NYMEX) to secure access.

Deal Management System(DMS) Access*Select Only One Access TypePer Application
Please provide Firm number (ex. 123) in space below

Request Systems

Read-Write
AccessRead-Only
AccessFX
Firm #

IRS
Firm #IRS DMSIRS DMS Swaptions E&A
FX DMSN/A

IRS DMS Operations (No Limit Access)

NOTE: You may ONLY have access to ONE of the following above: IRS DMS or IRS DMS Operations (No Limit Access) – (NOT BOTH)

EREP Report Access*
Request Systems

Please provide Firm number (ex. 123) in space below
Read-Only
Access

CBT
Firm #

CME
Firm #COMEX
Firm #

DME
Firm #NYMEX
Firm #FEX
Firm #EREP - Operations Reports
EREP - Risk Reports
EREP - Financial Reports
EREP – Delivery Reports
EREP – OTC Operations Reports* Access Requires a CME Group Login ID (Need a CME Group Login ID? Go to: https://login.cmegroup.com/sso/register/)** For CBT, CME, NYMEX and COMEX access only, this application is available in the User Administration application for firm selfservice. Access to the User Administration application requires Firms to complete the CME Group Self-Service Agreement (SSA).
http://www.cmegroup.com/tools-information/self-service.html*** Select for Account Maintenance, Reports, Allocation and Transaction Viewer access. Note: EFS access for Globex Registration
requires separate permissioning.
Privacy Policy: http://www.cmegroup.com/privacy-policy.html

Special Instructions:

SubmitFor inquiries regarding passwords and entitlements please contact the EASE Team at:
US: +1 312 456 1560, option 2

Europe: 011 44 203 379 3802

Asia: 011 65 6593 5536

Please allow a minimum of 48 hours for processing your security request
PM2011/021320

CME CLEARING MEMBER FIRM ONLINE SYSTEM ACCESS REQUEST FORM

2

Exhibit M

BROKERAGE PAYMENT SYSTEM
CLEARING MEMBER PARTICIPATION FORM
The account identified below is the deposit account maintained by Clearing Member forparticipation in the Brokerage Payment System™:
Financial Institution:
Branch Name:
Specific Name of Branch:
Telephone Number:Bank Contact Person:
Exact Account Name:
Check One: Savings _____

Checking _____
Bank Routing Number:

Account Number:
Taxpayer I.D. Number:

Name of customer or division to be billed (clearing member divisions to be associatedwith this firm for payment purposes):
Clearing Member Contact Person:
TEFRA EXEMPT?
YES _____
Bill Major Firm?
YES _____

Telephone:
NO _____
NO _____FOR CHECKING AND MONEY MARKET ACCOUNTS, ATTACH A VOIDED CHECK OR COPY THEREOF BELOW:-VOIDED CHECK OR COPY THEREOF-

Clearing Member authorizes CME to act on its behalf by instructing the Bank designed
above, to accept and act upon all credit and debit entries to the Account that are
indicated by CME hereunder.
Clearing Member:By: (please print)
Signature:

Title:
Date:

Please complete the attached W-9 form and submit with this Clearing Member participation form.
4333.txt

Exhibit N

SECRETARY’S CERTIFICATEThe 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 or more of thefollowing 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 ___________)) ss
COUNTY OF _________)
I, ________________, a Notary Public in and for and residing in the aforesaid state do hereby
certify that _________________of [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 andacknowledged 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: ___________

Exhibit O)LUP 1DPPHDesignated Spokesperson and Authorized Person Form
CME Group Inc. requires ﬁrms to designate a Designated Spokesperson(s) and Authorized Person(s) who shall beauthorized to deal with the Exchanges with respect to memberships owned or leased by the ﬁrm, as applicable,
and who shall be authorized to represent 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 the ﬁrm as a Designated Spokesperson and/or an Authorized Person. Please provide a complete
listing of the ﬁrm’s Designated Spokesperson(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 at www.cmegroup.com/memberships
to CME Group’s Concierge Team at conciergeteam@cmegroup.com. 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
NumberEmailAddress

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 shall have the same authority as the
Designated Spokesperson noted below.
2 A 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.

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: *Name (printed)

Position

Date* Authorized Oﬃcer, Managing Member of an LLC or Partner. Signor should also be designated as an Authorized Person above.

Exhibit P

W-9

Form
(Rev. October 2018)
Department of the Treasury
Internal Revenue Service

Request for Taxpayer
Identification Number and Certification

Give Form to therequester. Do notsend to the IRS.

a Go to www.irs.gov/FormW9 for instructions and the latest information.

1 Name (as shown on your income tax return). Name is required on this line; do not leave this line blank.

Print or type.
See Specific Instructions on page 3.

2 Business name/disregarded entity name, if different from above

4 Exemptions (codes apply only tocertain entities, not individuals; see
instructions on page 3):

3 Check appropriate box for federal tax classification of the person whose name is entered on line 1. Check only one of thefollowing seven boxes.
Individual/sole proprietor or
single-member LLC

C Corporation

S Corporation

Partnership

Trust/estate
Exempt payee code (if any)

Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=Partnership) a
Note: Check the appropriate box in the line above for the tax classification of the single-member owner. Do not check Exemption from FATCA reporting
LLC if the LLC is classified as a single-member LLC that is disregarded from the owner unless the owner of the LLC iscode (if any)
another LLC that is not disregarded from the owner for U.S. federal tax purposes. Otherwise, a single-member LLC thatis disregarded from the owner should check the appropriate box for the tax classification of its owner.
Other (see instructions) a
5 Address (number, street, and apt. or suite no.) See instructions.

(Applies to accounts maintained outside the U.S.)

Requester’s name and address (optional)

6 City, state, and ZIP code

7 List account number(s) here (optional)

Part I

Taxpayer Identification Number (TIN)

Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid
backup withholding. For individuals, this is generally your social security number (SSN). However, for aresident alien, sole proprietor, or disregarded entity, see the instructions for Part I, later. For otherentities, it is your employer identification number (EIN). If you do not have a number, see How to get a
TIN, later.
Note: If the account is in more than one name, see the instructions for line 1. Also see What Name andNumber To Give the Requester for guidelines on whose number to enter.

Social security number

–

–

or
Employer identification number–

Part II

Certification

Under penalties of perjury, I certify that:
1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue
Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am
no longer subject to backup withholding; and3. I am a U.S. citizen or other U.S. person (defined below); and4. The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct.
Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because
you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid,
acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments
other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part II, later.

Sign
Here

Signature of
U.S. person a

Date aGeneral Instructions
Section references are to the Internal Revenue Code unless otherwise
noted.
Future developments. For the latest information about developments
related to Form W-9 and its instructions, such as legislation enacted
after they were published, go to www.irs.gov/FormW9.

Purpose of Form
An individual or entity (Form W-9 requester) who is required to file an
information return with the IRS must obtain your correct taxpayer
identification number (TIN) which may be your social security number(SSN), individual taxpayer identification number (ITIN), adoption
taxpayer identification number (ATIN), or employer identification number(EIN), to report on an information return the amount paid to you, or otheramount reportable on an information return. Examples of information
returns include, but are not limited to, the following.
• Form 1099-INT (interest earned or paid)
Cat. No. 10231X• Form 1099-DIV (dividends, including those from stocks or mutual
funds)• Form 1099-MISC (various types of income, prizes, awards, or grossproceeds)• Form 1099-B (stock or mutual fund sales and certain othertransactions by brokers)• Form 1099-S (proceeds from real estate transactions)• Form 1099-K (merchant card and third party network transactions)• Form 1098 (home mortgage interest), 1098-E (student loan interest),
1098-T (tuition)• Form 1099-C (canceled debt)• Form 1099-A (acquisition or abandonment of secured property)
Use Form W-9 only if you are a U.S. person (including a resident
alien), to provide your correct TIN.
If you do not return Form W-9 to the requester with a TIN, you might
be subject to backup withholding. See What is backup withholding,later.
Form W-9 (Rev. 10-2018)

Page 2Form W-9 (Rev. 10-2018)

By signing the filled-out form, you:
1. Certify that the TIN you are giving is correct (or you are waiting for anumber to be issued),
2. Certify that you are not subject to backup withholding, or
3. Claim exemption from backup withholding if you are a U.S. exempt
payee. If applicable, you are also certifying that as a U.S. person, yourallocable share of any partnership income from a U.S. trade or businessis not subject to the withholding tax on foreign partners' share ofeffectively connected income, and
4. Certify that FATCA code(s) entered on this form (if any) indicatingthat you are exempt from the FATCA reporting, is correct. See What is
FATCA reporting, later, for further information.
Note: If you are a U.S. person and a requester gives you a form otherthan Form W-9 to request your TIN, you must use the requester’s form if
it is substantially similar to this Form W-9.
Definition of a U.S. person. For federal tax purposes, you areconsidered a U.S. person if you are:
• An individual who is a U.S. citizen or U.S. resident alien;• A partnership, corporation, company, or association created ororganized in the United States or under the laws of the United States;• An estate (other than a foreign estate); or• A domestic trust (as defined in Regulations section 301.7701-7).
Special rules for partnerships. Partnerships that conduct a trade orbusiness in the United States are generally required to pay a withholding
tax under section 1446 on any foreign partners’ share of effectively
connected taxable income from such business. Further, in certain cases
where a Form W-9 has not been received, the rules under section 1446
require a partnership to presume that a partner is a foreign person, andpay the section 1446 withholding tax. Therefore, if you are a U.S. personthat is a partner in a partnership conducting a trade or business in the
United States, provide Form W-9 to the partnership to establish yourU.S. status and avoid section 1446 withholding on your share ofpartnership income.
In the cases below, the following person must give Form W-9 to thepartnership for purposes of establishing its U.S. status and avoiding
withholding on its allocable share of net income from the partnershipconducting a trade or business in the United States.
• In the case of a disregarded entity with a U.S. owner, the U.S. ownerof the disregarded entity and not the entity;• In the case of a grantor trust with a U.S. grantor or other U.S. owner,
generally, the U.S. grantor or other U.S. owner of the grantor trust andnot the trust; and• In the case of a U.S. trust (other than a grantor trust), the U.S. trust(other than a grantor trust) and not the beneficiaries of the trust.
Foreign person. If you are a foreign person or the U.S. branch of aforeign bank that has elected to be treated as a U.S. person, do not use
Form W-9. Instead, use the appropriate Form W-8 or Form 8233 (seePub. 515, Withholding of Tax on Nonresident Aliens and Foreign
Entities).
Nonresident alien who becomes a resident alien. Generally, only anonresident alien individual may use the terms of a tax treaty to reduceor eliminate U.S. tax on certain types of income. However, most tax
treaties contain a provision known as a “saving clause.” Exceptions
specified in the saving clause may permit an exemption from tax tocontinue for certain types of income even after the payee has otherwise
become a U.S. resident alien for tax purposes.
If you are a U.S. resident alien who is relying on an exception
contained in the saving clause of a tax treaty to claim an exemption
from U.S. tax on certain types of income, you must attach a statement
to Form W-9 that specifies the following five items.
1. The treaty country. Generally, this must be the same treaty underwhich you claimed exemption from tax as a nonresident alien.
2. The treaty article addressing the income.
3. The article number (or location) in the tax treaty that contains thesaving clause and its exceptions.
4. The type and amount of income that qualifies for the exemption
from tax.
5. Sufficient facts to justify the exemption from tax under the terms ofthe treaty article.

Example. Article 20 of the U.S.-China income tax treaty allows an
exemption from tax for scholarship income received by a Chinese
student temporarily present in the United States. Under U.S. law, thisstudent will become a resident alien for tax purposes if his or her stay in
the United States exceeds 5 calendar years. However, paragraph 2 ofthe first Protocol to the U.S.-China treaty (dated April 30, 1984) allows
the provisions of Article 20 to continue to apply even after the Chinese
student becomes a resident alien of the United States. A Chinese
student who qualifies for this exception (under paragraph 2 of the first
protocol) and is relying on this exception to claim an exemption from tax
on his or her scholarship or fellowship income would attach to Form
W-9 a statement that includes the information described above tosupport that exemption.
If you are a nonresident alien or a foreign entity, give the requester theappropriate completed Form W-8 or Form 8233.

Backup Withholding
What is backup withholding? Persons making certain payments to you
must under certain conditions withhold and pay to the IRS 24% of suchpayments. This is called “backup withholding.” Payments that may besubject to backup withholding include interest, tax-exempt interest,
dividends, broker and barter exchange transactions, rents, royalties,
nonemployee pay, payments made in settlement of payment card andthird party network transactions, and certain payments from fishing boat
operators. Real estate transactions are not subject to backup
withholding.
You will not be subject to backup withholding on payments you
receive if you give the requester your correct TIN, make the proper
certifications, and report all your taxable interest and dividends on yourtax return.
Payments you receive will be subject to backup withholding if:
1. You do not furnish your TIN to the requester,
2. You do not certify your TIN when required (see the instructions forPart II for details),
3. The IRS tells the requester that you furnished an incorrect TIN,
4. The IRS tells you that you are subject to backup withholding
because you did not report all your interest and dividends on your tax
return (for reportable interest and dividends only), or
5. You do not certify to the requester that you are not subject tobackup withholding under 4 above (for reportable interest and dividend
accounts opened after 1983 only).
Certain payees and payments are exempt from backup withholding.
See Exempt payee code, later, and the separate Instructions for theRequester of Form W-9 for more information.
Also see Special rules for partnerships, earlier.

What is FATCA Reporting?
The Foreign Account Tax Compliance Act (FATCA) requires aparticipating foreign financial institution to report all United Statesaccount holders that are specified United States persons. Certain
payees are exempt from FATCA reporting. See Exemption from FATCA
reporting code, later, and the Instructions for the Requester of Form
W-9 for more information.

Updating Your Information
You must provide updated information to any person to whom you
claimed to be an exempt payee if you are no longer an exempt payee
and anticipate receiving reportable payments in the future from thisperson. For example, you may need to provide updated information if
you are a C corporation that elects to be an S corporation, or if you nolonger are tax exempt. In addition, you must furnish a new Form W-9 if
the name or TIN changes for the account; for example, if the grantor of a
grantor trust dies.

Penalties
Failure to furnish TIN. If you fail to furnish your correct TIN to arequester, you are subject to a penalty of $50 for each such failure
unless your failure is due to reasonable cause and not to willful neglect.
Civil penalty for false information with respect to withholding. If you
make a false statement with no reasonable basis that results in no
backup withholding, you are subject to a $500 penalty.

Page 3Form W-9 (Rev. 10-2018)

Criminal penalty for falsifying information. Willfully falsifying
certifications or affirmations may subject you to criminal penalties
including fines and/or imprisonment.
Misuse of TINs. If the requester discloses or uses TINs in violation offederal law, the requester may be subject to civil and criminal penalties.

Specific Instructions
Line 1
You must enter one of the following on this line; do not leave this line
blank. The name should match the name on your tax return.
If this Form W-9 is for a joint account (other than an accountmaintained by a foreign financial institution (FFI)), list first, and thencircle, the name of the person or entity whose number you entered inPart I of Form W-9. If you are providing Form W-9 to an FFI to documenta joint account, each holder of the account that is a U.S. person must
provide a Form W-9.
a. Individual. Generally, enter the name shown on your tax return. If
you have changed your last name without informing the Social Security
Administration (SSA) of the name change, enter your first name, the last
name as shown on your social security card, and your new last name.
Note: ITIN applicant: Enter your individual name as it was entered onyour Form W-7 application, line 1a. This should also be the same as thename you entered on the Form 1040/1040A/1040EZ you filed with yourapplication.
b. Sole proprietor or single-member LLC. Enter your individualname as shown on your 1040/1040A/1040EZ on line 1. You may enter
your business, trade, or “doing business as” (DBA) name on line 2.
c. Partnership, LLC that is not a single-member LLC, C
corporation, or S corporation. Enter the entity's name as shown on theentity's tax return on line 1 and any business, trade, or DBA name online 2.
d. Other entities. Enter your name as shown on required U.S. federal
tax documents on line 1. This name should match the name shown on thecharter or other legal document creating the entity. You may enter any
business, trade, or DBA name on line 2.
e. Disregarded entity. For U.S. federal tax purposes, an entity that isdisregarded as an entity separate from its owner is treated as a“disregarded entity.” See Regulations section 301.7701-2(c)(2)(iii). Enterthe owner's name on line 1. The name of the entity entered on line 1
should never be a disregarded entity. The name on line 1 should be thename shown on the income tax return on which the income should bereported. For example, if a foreign LLC that is treated as a disregarded
entity for U.S. federal tax purposes has a single owner that is a U.S.
person, the U.S. owner's name is required to be provided on line 1. If
the direct owner of the entity is also a disregarded entity, enter the firstowner that is not disregarded for federal tax purposes. Enter thedisregarded entity's name on line 2, “Business name/disregarded entity
name.” If the owner of the disregarded entity is a foreign person, theowner must complete an appropriate Form W-8 instead of a Form W-9.
This is the case even if the foreign person has a U.S. TIN.

Line 2
If you have a business name, trade name, DBA name, or disregarded
entity name, you may enter it on line 2.

Line 3Check the appropriate box on line 3 for the U.S. federal tax
classification of the person whose name is entered on line 1. Check only
one box on line 3.

IF the entity/person on line 1 isa(n) . . .

THEN check the box for . . .

• Corporation
Corporation• Individual
Individual/sole proprietor or singlemember LLC• Sole proprietorship, or• Single-member limited liability
company (LLC) owned by anindividual and disregarded for U.S.
federal tax purposes.
• LLC treated as a partnership for
U.S. federal tax purposes,• LLC that has filed Form 8832 or
2553 to be taxed as a corporation,or• LLC that is disregarded as anentity separate from its owner but
the owner is another LLC that is
not disregarded for U.S. federal tax
purposes.

Limited liability company and enter
the appropriate tax classification.
(P= Partnership; C= C corporation;or S= S corporation)• Partnership• Trust/estate

Partnership
Trust/estateLine 4, Exemptions
If you are exempt from backup withholding and/or FATCA reporting,enter in the appropriate space on line 4 any code(s) that may apply toyou.
Exempt payee code.
• Generally, individuals (including sole proprietors) are not exempt frombackup withholding.
• Except as provided below, corporations are exempt from backup
withholding for certain payments, including interest and dividends.
• Corporations are not exempt from backup withholding for payments
made in settlement of payment card or third party network transactions.
• Corporations are not exempt from backup withholding with respect toattorneys’ fees or gross proceeds paid to attorneys, and corporations
that provide medical or health care services are not exempt with respect
to payments reportable on Form 1099-MISC.
The following codes identify payees that are exempt from backup
withholding. Enter the appropriate code in the space in line 4.
1—An organization exempt from tax under section 501(a), any IRA, ora custodial account under section 403(b)(7) if the account satisfies therequirements of section 401(f)(2)
2—The United States or any of its agencies or instrumentalities
3—A state, the District of Columbia, a U.S. commonwealth orpossession, or any of their political subdivisions or instrumentalities
4—A foreign government or any of its political subdivisions, agencies,
or instrumentalities
5—A corporation
6—A dealer in securities or commodities required to register in the
United States, the District of Columbia, or a U.S. commonwealth orpossession
7—A futures commission merchant registered with the Commodity
Futures Trading Commission
8—A real estate investment trust
9—An entity registered at all times during the tax year under theInvestment Company Act of 1940
10—A common trust fund operated by a bank under section 584(a)11—A financial institution
12—A middleman known in the investment community as a nominee orcustodian
13—A trust exempt from tax under section 664 or described in section
4947

Page 4Form W-9 (Rev. 10-2018)

The following chart shows types of payments that may be exempt
from backup withholding. The chart applies to the exempt payees listed
above, 1 through 13.
IF the payment is for . . .

THEN the payment is exempt
for . . .

Interest and dividend payments

All exempt payees except
for 7

Broker transactions

Exempt payees 1 through 4 and 6
through 11 and all C corporations.
S corporations must not enter an
exempt payee code because they
are exempt only for sales ofnoncovered securities acquired
prior to 2012.

Barter exchange transactions andpatronage dividends

Exempt payees 1 through 4

Payments over $600 required to be Generally, exempt payees
reported and direct sales over1 through 52$5,0001
Payments made in settlement of
Exempt payees 1 through 4
payment card or third party networktransactions
1
2

See Form 1099-MISC, Miscellaneous Income, and its instructions.

However, the following payments made to a corporation andreportable on Form 1099-MISC are not exempt from backup
withholding: medical and health care payments, attorneys’ fees, grossproceeds paid to an attorney reportable under section 6045(f), andpayments for services paid by a federal executive agency.
Exemption from FATCA reporting code. The following codes identify
payees that are exempt from reporting under FATCA. These codes
apply to persons submitting this form for accounts maintained outsideof the United States by certain foreign financial institutions. Therefore, if
you are only submitting this form for an account you hold in the UnitedStates, you may leave this field blank. Consult with the person
requesting this form if you are uncertain if the financial institution is
subject to these requirements. A requester may indicate that a code is
not required by providing you with a Form W-9 with “Not Applicable” (orany similar indication) written or printed on the line for a FATCA
exemption code.
A—An organization exempt from tax under section 501(a) or any
individual retirement plan as defined in section 7701(a)(37)
B—The United States or any of its agencies or instrumentalities
C—A state, the District of Columbia, a U.S. commonwealth orpossession, or any of their political subdivisions or instrumentalities
D—A corporation the stock of which is regularly traded on one ormore established securities markets, as described in Regulations
section 1.1472-1(c)(1)(i)E—A corporation that is a member of the same expanded affiliatedgroup as a corporation described in Regulations section 1.1472-1(c)(1)(i)F—A dealer in securities, commodities, or derivative financial
instruments (including notional principal contracts, futures, forwards,
and options) that is registered as such under the laws of the UnitedStates or any state
G—A real estate investment trust
H—A regulated investment company as defined in section 851 or anentity registered at all times during the tax year under the Investment
Company Act of 1940
I—A common trust fund as defined in section 584(a)J—A bank as defined in section 581
K—A broker
L—A trust exempt from tax under section 664 or described in section
4947(a)(1)

M—A tax exempt trust under a section 403(b) plan or section 457(g)plan
Note: You may wish to consult with the financial institution requesting
this form to determine whether the FATCA code and/or exempt payee
code should be completed.

Line 5Enter your address (number, street, and apartment or suite number).
This is where the requester of this Form W-9 will mail your information
returns. If this address differs from the one the requester already has on
file, write NEW at the top. If a new address is provided, there is still achance the old address will be used until the payor changes youraddress in their records.

Line 6Enter your city, state, and ZIP code.

Part I. Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. If you are a resident alien andyou do not have and are not eligible to get an SSN, your TIN is your IRS
individual taxpayer identification number (ITIN). Enter it in the social
security number box. If you do not have an ITIN, see How to get a TIN
below.
If you are a sole proprietor and you have an EIN, you may enter either
your SSN or EIN.
If you are a single-member LLC that is disregarded as an entity
separate from its owner, enter the owner’s SSN (or EIN, if the owner hasone). Do not enter the disregarded entity’s EIN. If the LLC is classified asa corporation or partnership, enter the entity’s EIN.
Note: See What Name and Number To Give the Requester, later, forfurther clarification of name and TIN combinations.
How to get a TIN. If you do not have a TIN, apply for one immediately.
To apply for an SSN, get Form SS-5, Application for a Social Security
Card, from your local SSA office or get this form online atwww.SSA.gov. You may also get this form by calling 1-800-772-1213.
Use Form W-7, Application for IRS Individual Taxpayer Identification
Number, to apply for an ITIN, or Form SS-4, Application for Employer
Identification Number, to apply for an EIN. You can apply for an EIN
online by accessing the IRS website at www.irs.gov/Businesses andclicking on Employer Identification Number (EIN) under Starting a
Business. Go to www.irs.gov/Forms to view, download, or print Form
W-7 and/or Form SS-4. Or, you can go to www.irs.gov/OrderForms toplace an order and have Form W-7 and/or SS-4 mailed to you within 10
business days.
If you are asked to complete Form W-9 but do not have a TIN, apply
for a TIN and write “Applied For” in the space for the TIN, sign and date
the form, and give it to the requester. For interest and dividend
payments, and certain payments made with respect to readily tradable
instruments, generally you will have 60 days to get a TIN and give it to
the requester before you are subject to backup withholding on
payments. The 60-day rule does not apply to other types of payments.
You will be subject to backup withholding on all such payments until
you provide your TIN to the requester.
Note: Entering “Applied For” means that you have already applied for a
TIN or that you intend to apply for one soon.
Caution: A disregarded U.S. entity that has a foreign owner must use
the appropriate Form W-8.

Part II. Certification
To establish to the withholding agent that you are a U.S. person, or
resident alien, sign Form W-9. You may be requested to sign by thewithholding agent even if item 1, 4, or 5 below indicates otherwise.
For a joint account, only the person whose TIN is shown in Part I
should sign (when required). In the case of a disregarded entity, theperson identified on line 1 must sign. Exempt payees, see Exempt payee
code, earlier.
Signature requirements. Complete the certification as indicated in
items 1 through 5 below.

Page 5

Form W-9 (Rev. 10-2018)

1. Interest, dividend, and barter exchange accounts opened
before 1984 and broker accounts considered active during 1983.
You must give your correct TIN, but you do not have to sign thecertification.
2. Interest, dividend, broker, and barter exchange accounts
opened after 1983 and broker accounts considered inactive during
1983. You must sign the certification or backup withholding will apply. If
you are subject to backup withholding and you are merely providing
your correct TIN to the requester, you must cross out item 2 in thecertification before signing the form.
3. Real estate transactions. You must sign the certification. You may
cross out item 2 of the certification.
4. Other payments. You must give your correct TIN, but you do nothave to sign the certification unless you have been notified that you
have previously given an incorrect TIN. “Other payments” include
payments made in the course of the requester’s trade or business forrents, royalties, goods (other than bills for merchandise), medical andhealth care services (including payments to corporations), payments toa nonemployee for services, payments made in settlement of payment
card and third party network transactions, payments to certain fishingboat crew members and fishermen, and gross proceeds paid toattorneys (including payments to corporations).
5. Mortgage interest paid by you, acquisition or abandonment of
secured property, cancellation of debt, qualified tuition program
payments (under section 529), ABLE accounts (under section 529A),
IRA, Coverdell ESA, Archer MSA or HSA contributions or
distributions, and pension distributions. You must give your correct
TIN, but you do not have to sign the certification.

What Name and Number To Give the Requester
For this type of account:

Give name and SSN of:

1. Individual

The individual

2. Two or more individuals (joint
account) other than an accountmaintained by an FFIThe actual owner of the account or, if
combined funds, the first individual on

3. Two or more U.S. persons(joint account maintained by an FFI)

Each holder of the account

4. Custodial account of a minor(Uniform Gift to Minors Act)
5. a. The usual revocable savings trust(grantor is also trustee)b. So-called trust account that is nota legal or valid trust under state law

The minor

6. Sole proprietorship or disregarded
entity owned by an individual

The owner

7. Grantor trust filing under Optional
Form 1099 Filing Method 1 (seeRegulations section 1.671-4(b)(2)(i)(A))

The grantor*

For this type of account:1

the account

2

1

The grantor-trustee
1

The actual owner
3

Give name and EIN of:

8. Disregarded entity not owned by anindividual

The owner

9. A valid trust, estate, or pension trust

Legal entity

10. Corporation or LLC electing
corporate status on Form 8832 orForm 2553

The corporation

11. Association, club, religious,
charitable, educational, or other taxexempt organization

The organization

12. Partnership or multi-member LLC
13. A broker or registered nominee

The partnership
The broker or nominee

4

For this type of account:

Give name and EIN of:

14. Account with the Department ofAgriculture in the name of a public
entity (such as a state or local
government, school district, or
prison) that receives agricultural
program payments

The public entity

15. Grantor trust filing under the Form
1041 Filing Method or the Optional
Form 1099 Filing Method 2 (seeRegulations section 1.671-4(b)(2)(i)(B))

The trust1

List first and circle the name of the person whose number you furnish.
If only one person on a joint account has an SSN, that person’s number
must be furnished.

2

Circle the minor’s name and furnish the minor’s SSN.

3

You must show your individual name and you may also enter yourbusiness or DBA name on the “Business name/disregarded entity”
name line. You may use either your SSN or EIN (if you have one), but the
IRS encourages you to use your SSN.

4

List first and circle the name of the trust, estate, or pension trust. (Donot furnish the TIN of the personal representative or trustee unless thelegal entity itself is not designated in the account title.) Also see Special
rules for partnerships, earlier.
*Note: The grantor also must provide a Form W-9 to trustee of trust.
Note: If no name is circled when more than one name is listed, thenumber will be considered to be that of the first name listed.

Secure Your Tax Records From Identity Theft
Identity theft occurs when someone uses your personal informationsuch as your name, SSN, or other identifying information, without yourpermission, to commit fraud or other crimes. An identity thief may use
your SSN to get a job or may file a tax return using your SSN to receivea refund.
To reduce your risk:• Protect your SSN,
• Ensure your employer is protecting your SSN, and• Be careful when choosing a tax preparer.
If your tax records are affected by identity theft and you receive a
notice from the IRS, respond right away to the name and phone number
printed on the IRS notice or letter.
If your tax records are not currently affected by identity theft but you
think you are at risk due to a lost or stolen purse or wallet, questionablecredit card activity or credit report, contact the IRS Identity Theft Hotline
at 1-800-908-4490 or submit Form 14039.
For more information, see Pub. 5027, Identity Theft Information for
Taxpayers.
Victims of identity theft who are experiencing economic harm or asystemic problem, or are seeking help in resolving tax problems thathave not been resolved through normal channels, may be eligible for
Taxpayer Advocate Service (TAS) assistance. You can reach TAS bycalling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD
1-800-829-4059.
Protect yourself from suspicious emails or phishing schemes.
Phishing is the creation and use of email and websites designed to
mimic legitimate business emails and websites. The most common act
is sending an email to a user falsely claiming to be an establishedlegitimate enterprise in an attempt to scam the user into surrendering
private information that will be used for identity theft.

Page 6

Form W-9 (Rev. 10-2018)

The IRS does not initiate contacts with taxpayers via emails. Also, theIRS does not request personal detailed information through email or ask
taxpayers for the PIN numbers, passwords, or similar secret accessinformation for their credit card, bank, or other financial accounts.
If you receive an unsolicited email claiming to be from the IRS,
forward this message to phishing@irs.gov. You may also report misuseof the IRS name, logo, or other IRS property to the Treasury Inspector
General for Tax Administration (TIGTA) at 1-800-366-4484. You can
forward suspicious emails to the Federal Trade Commission at
spam@uce.gov or report them at www.ftc.gov/complaint. You cancontact the FTC at www.ftc.gov/idtheft or 877-IDTHEFT (877-438-4338).
If you have been the victim of identity theft, see www.IdentityTheft.gov
and Pub. 5027.
Visit www.irs.gov/IdentityTheft to learn more about identity theft andhow to reduce your risk.

Privacy Act Notice
Section 6109 of the Internal Revenue Code requires you to provide yourcorrect TIN to persons (including federal agencies) who are required tofile information returns with the IRS to report interest, dividends, or
certain other income paid to you; mortgage interest you paid; theacquisition or abandonment of secured property; the cancellation of
debt; or contributions you made to an IRA, Archer MSA, or HSA. The
person collecting this form uses the information on the form to fileinformation returns with the IRS, reporting the above information.
Routine uses of this information include giving it to the Department ofJustice for civil and criminal litigation and to cities, states, the District ofColumbia, and U.S. commonwealths and possessions for use inadministering their laws. The information also may be disclosed to othercountries under a treaty, to federal and state agencies to enforce civil
and criminal laws, or to federal law enforcement and intelligenceagencies to combat terrorism. You must provide your TIN whether or
not you are required to file a tax return. Under section 3406, payers
must generally withhold a percentage of taxable interest, dividend, andcertain other payments to a payee who does not give a TIN to the payer.
Certain penalties may also apply for providing false or fraudulent
information.

Form

W-8BEN

Certificate of Foreign Status of Beneficial Owner for UnitedStates Tax Withholding and Reporting (Individuals)(Rev. October 2021)

OMB No. 1545-1621

a For use by individuals. Entities must use Form W-8BEN-E.
Go to www.irs.gov/FormW8BEN for instructions and the latest information.
a Give this form to the withholding agent or payer. Do not send to the IRS.

a

Department of the Treasury
Internal Revenue Service

Do NOT use this form if:• You are NOT an individual

Instead, use Form:
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• You are a U.S. citizen or other U.S. person, including a resident alien individual

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• You are a beneficial owner claiming that income is effectively connected with the conduct of trade or business within the United States(other than personal services) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
• You are a beneficial owner who is receiving compensation for personal services performed in the United States .

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• You are a person acting as an intermediary

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8233 or W-4.

. W-8IMY

Note: If you are resident in a FATCA partner jurisdiction (that is, a Model 1 IGA jurisdiction with reciprocity), certain tax account information may beprovided to your jurisdiction of residence.

Part I

Identification of Beneficial Owner (see instructions)

1

Name of individual who is the beneficial owner

2Country of citizenship

3

Permanent residence address (street, apt. or suite no., or rural route). Do not use a P.O. box or in-care-of address.
City or town, state or province. Include postal code where appropriate.

4Country

Mailing address (if different from above)
City or town, state or province. Include postal code where appropriate.

Country

5

U.S. taxpayer identification number (SSN or ITIN), if required (see instructions)

6a

Foreign tax identifying number (see instructions)

6b Check if FTIN not legally required .

7

Reference number(s) (see instructions)

8Part II
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Date of birth (MM-DD-YYYY) (see instructions)

Claim of Tax Treaty Benefits (for chapter 3 purposes only) (see instructions)

I certify that the beneficial owner is a resident ofwithin the meaning of the income tax
treaty between the United States and that country.
Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article and paragraphof the treaty identified on line 9 above to claim a% rate of withholding on (specify type of income):.
Explain the additional conditions in the Article and paragraph the beneficial owner meets to be eligible for the rate of withholding:Part III

Certification

Under penalties of perjury, I declare that I have examined the information on this form and to the best of my knowledge and belief it is true, correct, and complete. I further certify under penalties of perjury that:• I am the individual that is the beneficial owner (or am authorized to sign for the individual that is the beneficial owner) of all the income or proceeds to which this form
relates or am using this form to document myself for chapter 4 purposes;• The person named on line 1 of this form is not a U.S. person;• This form relates to:(a) income not effectively connected with the conduct of a trade or business in the United States;(b) income effectively connected with the conduct of a trade or business in the United States but is not subject to tax under an applicable income tax treaty;(c) the partner’s share of a partnership’s effectively connected taxable income; or(d) the partner’s amount realized from the transfer of a partnership interest subject to withholding under section 1446(f);• The person named on line 1 of this form is a resident of the treaty country listed on line 9 of the form (if any) within the meaning of the income tax treaty between the United States and that country; and• For broker transactions or barter exchanges, the beneficial owner is an exempt foreign person as defined in the instructions.
Furthermore, I authorize this form to be provided to any withholding agent that has control, receipt, or custody of the income of which I am the beneficial owner or any withholding agent that can
disburse or make payments of the income of which I am the beneficial owner. I agree that I will submit a new form within 30 days if any certification made on this form becomes incorrect.

F

Sign HereI certify that I have the capacity to sign for the person identified on line 1 of this form.

Signature of beneficial owner (or individual authorized to sign for beneficial owner)

Date (MM-DD-YYYY)

Print name of signer

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 25047Z

Form W-8BEN (Rev. 10-2021)