Information Classification: General

B-1

Exhibit B

Rulebook (clean)

Rule 101. General

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“Error Trade” has the meaning given that term in Rule 526(a)(2).

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Rule 526. Trade Cancellations, Error Correction and Price Adjustments

(a) Trade Cancellations and Error Corrections 

(1) Except as provided in Rule 526(a)(2) below, if a transaction is submitted to, 

but not accepted for clearing by, a Derivatives Clearing Organization, such transaction 

shall be deemed to be void ab initio following receipt of a clearing rejection notice from 

the Derivatives Clearing Organization and neither of the parties thereto nor the Company 

shall have any further responsibility for such transaction under these Rules. 

(2) A Participant shall promptly notify the Company, by sending an e-mail to 

support@swapex.com, of any trade executed on or subject to the Rules that contains an 

operational or clerical error (an “Error Trade”), and, as applicable, any offsetting and 

correcting trades. The Participants that are counterparties to the Error Trade shall be 

permitted to enter into an offsetting or correcting trade subject to the following: 

(i) If the Error Trade is not a Cleared Contract, the Company shall 

permit (x) the original counterparties to the Error Trade (or, if the wrong legal entity 

was assigned as a counterparty to the original transaction, the intended 

counterparties) to enter into a prearranged transaction that corrects the errors in the 

Error Trade or (y) the original counterparties to the Error Trade to enter into a 

prearranged transaction that offsets the Error Trade, in each case, using any 

applicable execution method described in Rule 524 above. 

(ii) If the Error Trade is a Cleared Contract rejected from clearing by a 

Derivatives Clearing Organization , the Company shall permit the original 

counterparties to the Error Trade to enter into a new transaction, with terms and 

conditions that match the terms and conditions of the original transaction, other 

than any such error or omission and time of execution using any applicable 

execution method as described in Rule 524 above and submit such new transaction 

for clearing. Execution of a new trade and resubmission of such trade to clearing 

pursuant to this Rule 526(a)(2)(ii) must occur as quickly as technologically 

practicable after the relevant Clearing Firm(s) receipt of notice of the rejection by 

the Derivatives Clearing Organization, but, in any event, no later than sixty (60) 

minutes from issuance of such notice. If the resubmitted transaction is rejected 
Information Classification: General

B-2

from clearing, such transaction will be void ab initio and shall be cancelled by the 

Company. The counterparties may not resubmit a new transaction a second time. 

The procedure set forth in this Rule 526(a)(2)(ii) is not available with respect to 

transactions that are rejected from clearing for credit reasons. 

(iii) If the Error Trade is a Cleared Contract that has been cleared, the 

Company shall permit the original counterparties to the Error Trade to enter into a 

prearranged transaction that offsets the transaction carried on the books of the 

relevant Derivatives Clearing Organization using any applicable execution method 

as described in Rule 524 above. The Company shall also permit the original 

counterparties (or, if the wrong legal entity was assigned as a counterparty to the 

original transaction, the intended counterparties) to enter into a prearranged 

transaction that corrects the errors in the Error Trade using any applicable execution 

method as described in Rule 524 above. Any offsetting or correcting transaction 

executed pursuant to this Rule 526(a)(2)(iii) must be executed and submitted for 

clearing not later than three days after the three days after the relevant Derivatives 

Clearing Organization accepted the Error Trade for clearing. If the offsetting or 

correcting transaction is rejected from clearing, such transaction will be void ab 

initio and shall be cancelled by the Company. The counterparties may not resubmit 

a new transaction a second time.

(iv) Except as otherwise required under the CEA or CFTC Regulation, 

the Company shall not directly or indirectly, including through a third-party service 

provider, disclose the identity of any counterparty to a Cleared Contract that has 

been executed anonymously. Participants shall not directly or indirectly, including 

through a third-party service provider, disclose the identity of any counterparty to 

a Cleared Contract that has been executed anonymously. 

(3) No Participant, Authorized Trader or Customer or prospective Participant, 

Authorized Trader or Customer may enforce a Breakage Agreement with another 

Participant, Authorized Trader or Customer, or require such an agreement as a condition 

to trading with such other Participant, Authorized Trader or Customer on or pursuant to 

the Rules in respect of a Cleared Contract.

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