8E13.

8E14,

800.

802.

For each set of standing instructions, an FXMarketSpace Clearing Member shall specify (a) its CLS
bank, (b) its CLS participant identifier and (c) instructions outside of CLS. Each
FXMarketSpace Clearing Member, or its authorized CLS settlement agent, shall comply with all
applicable CLS rules governing cutoff times for post-execution settlement of forward transactions
Forward transactions for which settlement is completed shall be margined up to, but not on, the
settlement date. The forward transactions shall be removed in clearing after settlement is
completed.

Notwithstanding the above, if an FXMS transaction fails to match in CLS prior to the applicable
settlement cut-off time, the FXMS Clearing Member on the opposite side of such transaction may:
(i) settle the transaction via CLS on the following Business Day, or (ii) transmit funds outside of
CLS to the applicable CME account. However, such funds must be confirmed in a CME account
before the currency on the opposite side of the transaction is paid out. In the event either procedure
(i) or (ii) above is followed, CME shall not be responsible for good-value settlement and any
charges CME incurs as a result of a failed settlement will be the responsibility of the applicable
FXMS Clearing Member.

8E12.B. Settlement of Currency Pairs Not Through CLS

In the event that, in accordance with CLS or applicable CME Rules, settlement of any currency pair
cannot be undertaken through CLS, the Clearing House shall not release the applicable
performance bond (margin) until such settlement is completed.

INSOLVENCY

In the event of a bankruptcy or insolvency of an FXMS Clearing Member, the default Rules of CME
shall apply. In addition, if a bankruptcy or insolvency of an FXMS Clearing Member or a CME
Clearing Member involves FXMS Products, the applicable U.S. laws and industry standards shall
apply to the close-out netting and liquidation of such FXMS Products.

MITIGATION OF LOSSES

In the event of a fail involving an FXMS Product, FXMS Clearing Members shall work cooperatively
with their counterparties and CME to mitigate any losses that may occur as a result of such fail.

Conforming Rule Changes Underlined
CLEARING HOUSE '

The Exchange shall maintain and operate a Clearing House in order to protect market
participants and to maintain the integrity of the contracts traded on or processed through the
Exchange. Membership in the Clearing House shall be a right and privilege granted by the
Board of Directors which may, from time to time, establish such classes of membership in the
Clearing House, together with the duties, rights and privileges thereof, as it deems necessary.
Whenever these rules create a right in favor of the Clearing House, or impose a liability on the
Clearing House, it shall be construed as the right or liability of the Exchange, and shall be
enforced by or against the Exchange.

Unless otherwise stated, "clearing member" shall mean all clearing members including, but
not limited to, Class A clearing members, inactive Class A clearing members, Special CME
Clearing Members and FXMarketSpace Clearing Members.

PROTECTION OF CLEARING HOUSE?
802.A. Default by Clearing Member and Other Parti

ating Exchanges *
1. Default by Clearing Member *
\f a clearing member fails promptly to discharge any obligation to the Clearing House, it shall

be in default. If a clearing member is in default, its security deposit (pursuant to Rule 816), its
performance bonds on deposit with the Clearing House, the proceeds of the sale of any


902.

requirements for the clearing members’ customers' accounts, and the proceeds of
performance bond collateral deposited for the house trades shall be applied against the
requirements for the clearing member's own (so-called "house") account.

These performance bond requirements ay to all applicable classes of Clearing Member as
specified in the Manual.

CLEARING MEMBERSHIP ASSIGNMENT REQUIREMENTS °
902.A. Assignment Requirement ”

Subject to exemptions granted by Exchange staff to certain Special CME Clearing Members
and FXMS Clearing Members, each CME clearing member shall have at least 15,000 Class A
Shares assigned to it and shall have at least two CME memberships and the coupled Class B-
1 Share, at least two IMM memberships and the coupled Class B-2 Share, at least two IOM
memberships and the coupled Class B-3 Share, at least one GEM membership and the
coupled Class B-4 Share assigned. A clearing member which was an IMM Class A clearing
member on or prior to May 6, 1987, shall have at least 15,000 Class A Shares assigned to it
and shall have at least one CME membership and the coupled Class B-1 Share, three IMM
memberships and the coupled Class B-2 Share, two |OM memberships and the coupled Class
B-3 Share, at least one GEM membership and the coupled Class B-4 Share assigned.
Notwithstanding the above, a clearing member approved for membership on or before
February 1, 2006, that was subject to an assignment requirement of 30,000 CME Class A
Shares may only reduce such CME Class A Share requirement to 15,000 shares incrementally
over a five month period in accordance with the procedures established by the Exchange.
Provided, further, any clearing member approved for membership on or before February 1,
2006, may not withdraw and reapply for clearing membership under the 15,000 Class A Share
assignment threshold for at least a six month period. "*

A higher Division membership and associated Class B Share may be substituted for a lower
Division membership to satisfy these requirements. Class A Shares assigned to a clearing
member may not be sold, pledged, hypothecated, lent, reregistered or otherwise transferred
without the prior approval of the Exchange. Each clearing member assigning Class A Shares
to CME hereby acknowledges that CME has control over such Class A Shares and further
agrees to comply with any policies or procedures established by CME to affect control over
Class A shares.

All of the membership interests and Class A and B Shares required for clearing memberships
pursuant to this rule must be owned by the clearing member or a person, including a parent
company, with an acceptable proprietary interest, if such clearing member was approved for
membership after June 1, 2003.

A clearing member approved for membership on or before June 1, 2003, may continue to
maintain the same number of independent membership assignments and the same ratio of
independent Class A Share assignments as the clearing member held on June 1, 2003 (i.e.,
up to one CME, one IMM, and one IOM memberships, the associated Class B Shares and up
to 50 percent of the Class A Shares). !f a clearing member approved on or before June 1,
2003, or a person with an acceptable proprietary interest in the clearing member, subsequently
purchases a membership and associated Class B Share or Class A Shares and substitutes
such asset for one which was previously an independent assignment, such membership and
associated Class B Share or Class A Shares must thereafter be owned by the clearing
member or a person with an acceptable proprietary interest. '

Upon default of a clearing member in meeting its obligations to the Exchange or upon the
Clearing House Risk Committee's determination that a clearing member's financial position
jeopardizes the financial integrity of the Exchange, the Exchange may direct the sale of any or
all of the clearing member's assigned CME memberships and associated Class B Shares, any
Membership Interests of a Special CME Clearing Member, any other assets or collateral of an
FXMS Clearing Member held by or pledged to the Clearing House. The proceeds from the
sale of Exchange memberships, Class B Shares, and Membership Interests shall be used to
satisfy Rule 110 obligations.


8E09.

8E10.

8E11.

8E12.

documents required by CME to create and enforce such lien.
CUSTOMER REGISTRATION

All transactions executed on FXMarketSpace, and any transactions related to post-execution trade
processing such as give-ups or transfers, shall be identified with an account number which
identifies the owner of that transaction, whether the transaction is a proprietary transaction of the
FXMarketSpace Clearing Member or arises from a transaction on FXMarketSpace by a customer.
FXMarketSpace Clearing Members shall register, on CME approved forms, all of the “ultimate” (or
end) customer accounts authorized to execute transactions on FXMarketSpace.

RISK MANAGEMENT

Without limitation of any other provision of CME’s Rules and the procedures in the Manual that are
applicable to CME Clearing Members, FXMS Clearing Members will be subject to risk management
and monitoring practices by CME regarding FXMS Clearing Members activities relating to FXMS or
CME for the purpose of complying with any reporting or other requirement under applicable law or
regulation, including, but not limited to, prompt responses on reasonable risk, settlement, liquidity,
and operational queries as well as reasonable on-site risk reviews in accordance with CME Rules
and subject to reasonable standards of confidentiality. FXMS Clearing Members will also be
subject to on-going oversight by the Clearing House Risk Committee regarding FXMS Clearing
Members activities relating to FXMS or CME for the purposes of complying with any reporting or
other requirement under applicable rule or regulation in a manner consistent with oversight of CME
Clearing Members and subject to reasonable standards of confidentiality.

FINANCIAL REQUIREMENTS

A. Subject to exceptions granted by CME staff regarding CME imposed financial requirements,
FXMarketSpace Clearing Members must comply with the following:

1, Maintenance of minimum capital requirements;

2. Notification requirements to the Audit Department when a clearing member:
(i) Fails to maintain minimum capital requirements;
(ii) Fails to maintain current books and records; or
(ili) Changes its fiscal year.

B. CME staff may prescribe additional accounting, reporting, and other financial and/or
operational requirements and clearing members must comply with such requirements. All
clearing members must provide notice to the Audit Department of a failure to comply with the
additional accounting, reporting, financial, and/or operational requirements. The Audit
Department must receive immediate written notification when a clearing member knows or
should know of such failure.

C. CME staff may grant exceptions to the financial requirements of Rule 970. for good cause if it
is determined that such exceptions will not jeopardize the financial integrity of CME.

D. Violation of this rule may constitute a major offense.

SETTLEMENT

8E12.A. Physical Settlement (Deliveries) of Currency Pairs through CLS

All spot, forward and swap (hereafter, collectively referred to as “forward") transactions in currency
pairs consummated on the FXMarketSpace trading platform shall be settled on each transaction’s
value date, in accordance with the terms agreed to on trade date. Transactions in FXMarketSpace
Products shall be settled via Continuous-Linked Settlement (CLS), in accordance with CLS
Rules as in effect from time to time, except as otherwise noted in the Manual. Settlement of such
transactions shall be undertaken by FXMarketSpace Clearing Members, either directly or through
an authorized third party that settles directly with CLS. However, if such FXMarketSpace Clearing
Member or authorized third party fails to make a required settlement, the FXMarketSpace Clearing
Member is responsible for good-value settlement of the failed transaction and is also liable for any
losses or other associated costs incurred by the Clearing House from such failure. Each
FXMarketSpace Clearing Member, or its authorized CLS settlement agent, shall provide standing
CLS settlement instructions for each currency pair that it trades on the FXMarketSpace trading
platform.


816

membership and Class A and Class B Shares assigned to it for clearing qualification, any
Membership Interests and Class A Shares of a Special CME Clearing Member, any assets or
collateral of an FXMS Clearing Member, including all funds deposited with the Clearing House
by an FXMS Clearing Member with respect to FXMarketSpace transactions, and any other
assets held by, pledged to or otherwise available to the Clearing House, shall be applied by
the Clearing House to discharge the obligation. For purposes of this rule, each default by an
individual clearing member will be considered a separate default event.

For purposes of this Rule, the positions in the cross-margin account of a Participating Clearing
Member or its Cross-Margining Affiliate at a Cross-Margining Clearing Organization, and the
performance bond thereon, shall be considered assets of the Participating Clearing Member
available to the Exchange to the extent provided in the Cross-Margining Agreement between
the Exchange and such Cross-Margining Clearing Organization. A clearing member in default
shall immediately make up any deficiencies in its security deposit resulting from such default
prior to the close of business on the next banking day.

The clearing member shall take no action, including but not limited to, attempting to obtain a
court order an injunction or a stay that would interfere with the ability of the Clearing House to
so apply such assets and proceeds.

If the security deposit, performance bond and other assets of a clearing member available to
the Exchange are insufficient to satisfy all of its obligations to the Clearing House, including all
claims against the Clearing House by reason of its substitution for that clearing member
pursuant to Rule 804, the Clearing House shall nonetheless pay all such claims, which shall be
deemed a loss to it and which shall be a liability of the defaulting clearing member to the
Exchange, which the Exchange may collect from any other assets of such clearing member or
by process of law. *

2. Default by Other Participating Exchanges. *

If a Participating Exchange fails to promptly discharge any obligation to the Clearing House
arising out of its obligations to the Exchange, such Participating Exchange's letters of credit,
performance bonds and other assets available to the Exchange shall be applied by the
Clearing House to discharge the obligation.

802.B. Satisfaction of Clearing House Obligations ’

If the Clearing House is unable to immediately satisfy all claims against it including, but not
limited to, costs associated with the liquidation, transfer and managing of positions, arising out
of: 1) its substitution (pursuant to Rule 804) for a defaulting clearing member or a defaulting
Participating Exchange, or a defaulting Partner Clearinghouse; 2) a shortfall in a cross-
margining program; 3) the failure of a depository, exchange or market apart from the
Exchange but whose transactions are cleared pursuant to the provisions of Chapter 8B or
Chapter 8C, 8D, 8E, or; 4) for any other cause, then such claim or obligation shall be met and
made good promptly by the use and application of funds from the following sources in the
order of priority hereafter listed. Each source of funds set forth below shall be completely
exhausted, to the extent practicable, before the next following source is applied.

SECURITY DEPOSIT *

Each clearing member shall make a deposit with the Exchange as security for its obligations to
the Clearing House. The minimum security deposit of a Class A clearing member, shall equal
the greater of (a) an amount specified by the Clearing House Risk Committee or (b) the
clearing member's proportionate share of the “Aggregate Security Deposit,” which shall be an
amount determined by the Clearing House Risk Committee. Each clearing member's
proportionate share of the Aggregate Security Deposit shall consist of (i) a specified
percentage of the Aggregate Security Deposit multiplied by the clearing member's
proportionate share (including the total risk performance bond requirement in respect of
positions in its cross-margin accounts) of the average aggregate risk performance bond
requirement (including the risk performance bond requirement in respect of positions in all
cross-margin accounts) for the preceding three months; plus (ii) a specified percentage of the
Aggregate Security Deposit multiplied by the clearing member's proportionate share of the total
number of contracts executed on the Exchange and any applicable exchange or market during



950.

SUPERVISION *

Each clearing member shall adopt and enforce written procedures pursuant to which it will be
able to supervise adequately each customer's account(s), including, but not limited to, the
solicitation of any such account(s). For purposes of this rule, the term "customer" does not
include another futures commission merchant. Exchange staff shall determine whether the
sales practices and customer protection requirements set forth in the Rules shall be applicable
to Special CME Clearing Members and FXMS Clearing Members.


cmeé

Chicago Mercantile Exchange

20 South Wacker Drive
Chicago, IL 60606-7499
www.cme.com

December 15, 2006

Ms. Jean A. Webb

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21" Street, NW

Washington, DC 20581

RE: New CME Rulebook Chapter 8-E, and Rules 800, 802, 816, 820,  -. =e
902 and 950
Submission No. 06-114

Dear Ms. Webb: : :

Chicago Mercantile Exchange Inc. (“CME” or “Exchange") hereby notifies the Commission that
the Exchange has approved new CME Rulebook Chapter 8-E (“FXMarketSpace Limited”) to govern the
clearing of transactions from FXMarketSpace Limited, a joint venture entity with Reuters that provides a
centrally cleared, global foreign exchange marketplace. Conforming rule changes to Rules 800, 802,
816, 820, 902 and 950 were also made.

The text of the new chapter is attached. Amendments to the conforming rules follow with
additions underlined and deletions lined out.

The Exchange certifies that this regulatory advisory neither violates nor is inconsistent with any
provision of the Commodity Exchange Act or of the rules and regulations thereunder.
If you have any questions regarding this matter, please call me at (312) 648-5422.

Sincerely,

/S/ Stephen M. Szarmack
Director and Associate General Counsel

SMS/elm/6016 Sub 06-114


820.

the preceding three months; plus (iii fie centage of the Aggregate Se

multiplied by the clearing members’ proportionate share of the total delivery obligation in final
settlement of contracts cleared through the Clearing House. The applicable contracts an
form of final settlement shall be determined by Exchange staff. The percentages in (i), (ii) and
(iii) above shall be determined and modified by the Clearing House Risk Committee as
appropriate. Some contracts may be weighted more heavily than others in order to reflect the
greater risk associated with those contracts. The average aggregate risk performance bond
and settlement requirements, the total number of contracts executed, and each clearing
member's proportionate share of each will be calculated by the Clearing House, and a report
setting forth such information and the clearing member's required security deposit will be given
to the clearing member each quarter, or more frequently as Exchange staff shall determine. If
such report indicates that the clearing member's current security deposit with the Exchange is
smaller than the amount required, the clearing member shall increase its amount within five
business days. If such report indicates that the clearing member's current security deposit with
the Exchange is larger than the amount required, the clearing member may withdraw the
excess amount.

A clearing member's security deposit may be in a form as set forth in the Manual. Such
security deposit forms and amounts shall be subject to the terms and conditions as approved
by Exchange staff.

These security deposit requirements apply to all applicable classes of Clearing Member as
specified in the Manual.

PERFORMANCE BONDS

Performance bond requirements, including any applicable risk offsets, will be as determined by
Exchange staff from time to time.

Subject to the terms and conditions as approved by Exchange staff, the Clearing House will
accept as performance bond, cash, equity securities, shares of mutual funds, United States
Treasury and agency Securities (under the conditions specified in Rule 825), Letters of Credit
pursuant to Rule 822, , shares in CME's IEF 2 Program, permitted investments allowable
under CFTC Regulation 1.25, and “readily marketable securities” as defined by Securities and
Exchange Commission Rules, as applicable (as used in this Rule 821, such assets and any
proceeds thereof are collectively referred to as "Assets"), all of which must be and remain
unencumbered. The Clearing House may include other forms of collateral within the definition
of “Assets” upon the approval of the Clearing House Risk Committee and notice to clearing
members.

All performance bond collateral, as herein described, shall be placed to the credit of the
member paying the same for its customers’ trades or its own (so-called "house") trades as
designated by the clearing member. The Clearing House shall value performance bond
collateral as it deems appropriate. The clearing member shall transfer the performance bond
collateral to the Exchange or to an approved depository for safekeeping in an Exchange
account and the Exchange shall retain control over such performance bond collateral. Neither
the Exchange nor the Clearing House shall have any obligation or responsibility to preserve,
protect, collect or realize upon, and under no circumstances shall the Exchange or Clearing
House be liable for, any loss or diminution in value or depreciation in the performance bond
collateral maintained pursuant to this rule. A clearing member who maintains performance
bond collateral for its benefit pursuant to this rule shall hold the Exchange and Clearing House
harmless from all liability, losses and damages which may result from or arise with respect to
the care and sale of such performance bond collateral. All initial and additional performance
bonds shall be retained by the Clearing House in whole or in part, as Exchange staff may
deem necessary, until the trades for which such performance bond collateral has been
deposited, have been offset, cash settled, delivered or otherwise closed out as determined by
Exchange staff.

Each clearing member shall reimburse the Clearing House for all fees, expenses, charges and
costs assessed by a depository against the Exchange with respect to all performance bond
collateral maintained in its account, and shall make deposits as may be required by the
Clearing House by reason of any depreciation in the market value of such performance bond
collateral. if a clearing member defaults to the Clearing House with respect to performance
bonds, the performance bond collateral maintained in its account pursuant to this rule shall be
taken over by the Clearing House and sold without notice and the proceeds of the performance
bond collateral deposited for customers’ trades shall be applied against the performance bond


8E01.

8E02.

8E03.

[ALL RULES IN CHAPTER 8-E ARE NEW]
CHAPTER 8-E
FXMARKETSPACE LIMITED

SCOPE OF CHAPTER

This chapter sets forth the clearing-related rules that are applicable to FXMarketSpace Ltd., a
centrally cleared, global foreign exchange marketplace. The rules in this chapter are generally
applicable to the clearing and settlement of FXMarketSpace Products. FXMarketSpace Clearing
Members are also subject to all of the Rules in CME’s Rulebook and the procedures in the Manual
that are applicable to clearing members unless otherwise stated in such Rule or procedure or an
exemption has been granted by staff or the Clearing House Risk Committee and it is determined
that such exemption will not jeopardize the financial integrity of CME. FXMarketSpace Clearing
Members must execute all agreements and documents required by the Exchange to participate in
FXMarketSpace. FXMarketSpace also has its own rulebook that contains rules generally applicable
to the trading and non-clearing aspects of FXMarkelSpace Products which should be reviewed
before trading FXMarketSpace Products.

DEFINITIONS

FXMARKETSPACE

A joint venture entity created and owned equally by CME and Reuters, and their successors and
assigns, for the trading and clearing of global foreign exchange products.

FXMARKETSPACE CLEARING MEMBER

An entity that is approved by CME as an FXMarketSpace Clearing Member and is afforded full
rights and privileges to trade and clear for its own account, and on behalf of customers,
transactions in FXMS Products. FXMarketSpace Clearing Members shall not be entitled to clear
products other than FXMarketSpace Products. The requirements to qualify as an FXMarketSpace
Clearing Member are set forth in this Chapter 8-E.

CME Clearing Members shall be afforded full rights and privileges to trade and clear for their own
accounts, and on behalf of their customers, transactions in FXMarketSpace Products in
accordance with their existing clearing member privileges.

An FXMarketSpace Clearing Member that is affiliated with a CME Clearing Member must have a
cross guarantee with the CME Clearing Member for its activity involving FXMarketSpace Products
unless an exemption is provided by Exchange staff. References in this Chapter to FXMS Clearing
Members shall include CME Clearing Members as applicable.

All FXMS clearing transactions between CME Clearing Members or FXMS Clearing Members and
the Clearing House are proprietary in nature even if they arise from transactions on
FXMarketSpace by customers. CME Clearing Member FXMS accounts and FXMS Clearing
Members’ accounts with the Clearing House are also solely proprietary in nature and all funds
therein are solely for the benefit of the Clearing Member.

FXMS

FXMarketSpace

FXMARKETSPACE PRODUCTS

All products available for trading on FXMarketSpace including, but not limited to, over-the-counter

foreign exchange spot, forward outrights, forward swaps, non-deliverable forwards and options on
any of the foregoing.

FXMARKETSPACE CLEARING MEMBER QUALIFICATIONS

The qualifications to become an FXMarketSpace Clearing Member are set forth below. The specific
qualifications in this rule are not applicable to CME Clearing Members.

1. An FXMS Clearing Member must be a U.S. or foreign bank that is in good standing.

2. XMS Clearing Members must meet all membership requirements established by FX
MarketSpace.


8E04,

8E05.

8E06.

8E07.

8E08.

3. FXMS Clearing Members must be in compliance with their regulatory capital requirements,
subject to a minimum tier 1 capital of USD $1.0 billion.

4. FXMS Clearing Member applicants that are domiciled in a country with a Moody's country
rating that is less than Aaa may be subject to a higher capital requirement. FXMS Clearing
Member applicants that are domiciled in a country with a Moody's country rating below Baa3.
are not eligible for FXMS clearing membership.

5. FXMS Clearing Members shall maintain on deposit with CME a membership deposit collateral
pool of $5 million for claims, including Rule 110 claims, that may be made by CME or other
Clearing Members against such FXMS Clearing Member that are related to trading losses or
other losses related to membership on CME.

6. FXMS Clearing Members shall submit to CME annual audited financial statements as well as
all unaudited financial statements provided to their primary regulator within five days after such
statements are provided to their regulator. All financial statements shall be in the English
language

7. Without limitation of any other provision of CME's Rules and the procedures in the Manual that
are applicable to CME Clearing Members, the books and records of FXMS Clearing Members
regarding FXMS activities or CME activities in connection therewith shall be made promptly
available for inspection upon reasonable request by CME for the purpose of complying with
any reporting or other requirement under applicable law or regulation and subject to
reasonable standards of confidentiality.

FXMARKETSPACE PRODUCTS
FXMarketSpace Products shall be cleared through the CME Clearing House.
SUBSTITUTION

Each transaction in an FXMarketSpace Product shall be submitted to the Clearing House in
accordance with the rules of FXMarketSpace, and shall be accepted by the Clearing House if
executed in accordance with such rules. Upon such acceptance, the Clearing House shall
automatically and without further action, through the process of novation, step into the middle of
such transaction, with the effect that, for each trade executed over the FXMarketSpace trading
platform, there shall be two equal and offsetting over-the-counter transactions as follows: one
between the buyer and the Clearing House, as seller; and an equal and offsetting transaction
between the Clearing House and the seller. In the case of customers executing transactions on the
FXMarketSpace trading platform as foreign exchange prime brokerage clients of either the Clearing
Member or an affiliate of such Clearing Member, then simultaneously with the Clearing House
novation, each Clearing Member shall be substituted for such customer and be deemed to have
bought from or sold to the Clearing House, as the case may be.

CLEARING MEMBER DEFAULT

In the event that a Clearing Member, including an FXMarketSpace Clearing Member, fails promptly
to discharge any obligation to the Clearing House, it shall be in default in accordance with Rule
802. Pursuant to the Rules, all of the assets and collateral of an FXMarketSpace Clearing Member
that are available to CME including, but not limited to, its security deposit and performance bond
shall be applied by the Clearing House to discharge the obligation.

SECURITY DEPOSIT

CME Clearing Members and FXMS Clearing Members contributions to CME's security deposit poo!
may be used to cover losses incurred by the Clearing House if a defaulting Clearing Member's
assets are insufficient to cover such loss, regardless of the cause of default. The detailed
provisions regarding a default are set forth in Rule 802.

The detailed security deposit rules applicable to Clearing Members are set forth in Rule 816.
LIEN ON COLLATERAL

Each FXMS Clearing Member hereby grants to CME a first priority and unencumbered lien against
all of its assets or collateral required for clearing membership by CME or FX MarketSpace, as
applicable, including all funds deposited with the Clearing House by the FXMS Clearing Member
with respect to FXMarketSpace transactions. FXMS Clearing Members shall execute any