© 2010-2023 FMX Futures Exchange, L.P. November 9, 2023

November 9, 2023 

 

RULES GOVERNING THE 

 

FMX DIVISION 

AND CX DIVISION

Of 

FMX FUTURES EXCHANGE, L.P. 

Any Person initiating or executing a transaction on or subject to the Rules of the Exchange directly 

or through an intermediary, and any Person for whose benefit such a transaction has been initiated 

or executed, expressly consents to the jurisdiction of the Exchange and agrees to be bound by and 

comply with the Rules of the Exchange in relation to such transactions, including, but not limited 

to, rules requiring cooperation and participation in investigatory and disciplinary processes.
© 2010-2023 FMX Futures Exchange, L.P. 

VERSION LOG 

Version Effective Date Summary of Changes Responsibility 

1.0 July 12, 2021 Base Chief Operating 

Officer 

1.1 tbd Draft of proposed rule changes to permit 

intermediated trading; reorganization into three Parts 

Chief Operating 

Officer 

1.2 March 18, 2022 Revisions based on DMO comments Chief Operating 

Officer 

1.3 April 29, 2022 Revisions to ROC and Disruptive Trading Chief Operating 

Officer 

1.4 July 28, 2022 Revisions based on DMO and DCR comments Chief Operating 

Officer 

1.5 June 5, 2023 Revisions based on changes to defined terms and 

other conforming changes 

Chief Operating 

Officer 

1.6 November 9, 2023 Revisions to participant eligibility Chief Operating 

Officer 
© 2010-2023 FMX Futures Exchange, L.P. 

TABLE OF CONTENTS 

Page 

PART A RULES OF THE FMX DIVISION ......................................................................1

CHAPTER I DEFINITIONS; INTERPRETATION; AMENDMENTS .........................................1

I-1 Defined Terms ...................................................................................................1

I-2 Rules of Interpretation .....................................................................................12

I-3 Effect of Titles .................................................................................................13

I-4 Amendment of Rules .......................................................................................13

I-5 Hierarchy of Interpretation of Rules ................................................................13

CHAPTER II ADMISSION TO TRADE CONTRACTS .............................................................14

II-1 FMX Participants and FMX Trading Accounts ...............................................14

II-2 Responsible Trading Agents ............................................................................14

II-3 Direct Access Customers .................................................................................15

II-4 FMX Trading Privileges ..................................................................................18

II-5 Eligibility .........................................................................................................18

II-6 Application for FMX Trading Privileges .........................................................19

II-7 Front-End User Interface and Independent Software Vendors ........................20

II-8 Financial and Risk Management Requirements for an FMX Participant 

that is an FCM; Requirements for an FMX Participant that is an 

Introducing Broker ...........................................................................................20

CHAPTER III FMX TRADING STANDARDS ...........................................................................21

III-1 FMX Division Contracts ..................................................................................21

III-2 Trading Days and Trading Hours ....................................................................21

III-3 FMX Division Contract Order Entry ...............................................................22

III-4 Acceptable FMX Division Contract Orders ....................................................22

III-5 Information Regarding FMX Division Contract Orders ..................................24

III-6 Pre-Execution Discussions and Cross Trades of FMX Division 

Contract ............................................................................................................24

III-7 Opening and Closing Trading on the FMX Division.......................................25

III-8 Execution of Orders on the FMX Division ......................................................25

III-9 Modification and Cancellation of Orders on the FMX Division .....................26

III-10 Errors, Trade Cancellation and Price Adjustments on the FMX 

Division ............................................................................................................26
© 2010-2023 FMX Futures Exchange, L.P. 

III-11 Responsibility for Orders .................................................................................31

III-12 Allocation and Priority of Customer Orders; No Withholding of 

Orders; Bunched Orders ..................................................................................31

III-13 Financial Requirements for Order Entry and Executions ................................32

III-14 Revocation of Clearing Authorization: Trade Nullification ...........................32

III-15 Customer Margin .............................................................................................33

III-16 Segregation, Custody and Investment of Customer Funds ..............................33

III-17 Daily Settlement Price Determination .............................................................33

III-18 Required Reports .............................................................................................34

III-19 Recording of Orders and Record Keeping .......................................................34

III-20 Reporting of Open Interest by Clearing Members ...........................................35

CHAPTER IV CLEARING OF FMX DIVISION CONTRACTS ...........................................35

IV-1 Rules of LCH Limited .....................................................................................35

IV-2 Substitution ......................................................................................................36

CHAPTER V FMX DIVISION CONTRACTS ............................................................................36

V-1 Reserved. ..........................................................................................................36

V-2 Reserved. ..........................................................................................................36

CHAPTER VI 36

VI-1 Incentive Programs ..........................................................................................36

PART B GENERAL RULES OF THE EXCHANGE .....................................................38

CHAPTER X GOVERNANCE OF THE EXCHANGE ...............................................................38

X-1 Defined Terms .................................................................................................38

X-2 Board of Directors............................................................................................38

X-3 Standing Committees .......................................................................................38

X-4 Regulatory Oversight Committee ....................................................................39

X-5 Additional Committees and Panels ..................................................................40

X-6 Eligibility .........................................................................................................40

X-7 Power of the Board of Directors to Review Decisions ....................................42

X-8 Officers ............................................................................................................43

X-9 Restrictions on Certain Persons Who Possess Material, Non-Public 

Information ......................................................................................................43

X-10 Conflicts of Interest..........................................................................................44

X-11 Regulatory Cooperation ...................................................................................48
© 2010-2023 FMX Futures Exchange, L.P. 

X-12 Regulatory Services Agreement with NFA .....................................................48

X-13 Transaction Records .........................................................................................49

CHAPTER XI GENERAL TRADING PROVISIONS .................................................................49

XI-1 Contract Specifications ....................................................................................49

XI-2 Contract Modifications ....................................................................................49

XI-3 Position Accountability ....................................................................................49

XI-4 Price Limits and Temporary Trading Halts .....................................................50

XI-5 Transfers of Positions ......................................................................................50

XI-6 EFP Transactions .............................................................................................51

XI-7 Block Trading ..................................................................................................51

XI-8 EFS Transactions .............................................................................................51

XI-9 Emergencies .....................................................................................................51

XI-10 Daily Reports ...................................................................................................53

XI-11 Message Traffic Limits ....................................................................................53

XI-12 Application of Rules and Jurisdiction Following Termination ........................53

XI-13 Recording of Communications ........................................................................53

XI-14 Notices .............................................................................................................54

XI-15 Proprietary Nature of Market Data ..................................................................54

XI-16 Limitation of Liability ......................................................................................54

CHAPTER XII OBLIGATIONS OF PARTICIPANTS................................................................57

XII-1 Books and Records; Cooperation in Proceedings ............................................57

XII-2 Minimum Financial Reporting Requirements and Reports .............................57

XII-3 Authority of the President to Impose Restrictions ...........................................57

XII-4 Minimum Financial Requirements ..................................................................58

XII-5 Trade Confirmations ........................................................................................58

XII-6 Account Statements .........................................................................................58

XII-7 Risk Disclosure Statement ...............................................................................59

XII-8 Fraudulent or Misleading Communications .....................................................59

XII-9 System Security ...............................................................................................59

XII-10 Communications between the Exchange and Participants ...............................60

XII-11 Fees and Payments ...........................................................................................60

XII-12 Incentive Programs ..........................................................................................61

XII-13 Exchange Trading System Requirements ........................................................61
© 2010-2023 FMX Futures Exchange, L.P. 

XII-14 Measures to Avoid Self-Matching ...................................................................62

CHAPTER XIII BUSINESS CONDUCT .....................................................................................62

XIII-1 Rule Violations ................................................................................................62

XIII-2 Fraudulent Acts ................................................................................................62

XIII-3 Fictitious Transactions .....................................................................................63

XIII-4 Market Demoralization ....................................................................................63

XIII-5 Price Manipulation ...........................................................................................63

XIII-6 Prohibition of Misstatements ...........................................................................63

XIII-7 Adherence to Law ............................................................................................63

XIII-8 Use of Trading Privileges ................................................................................63

XIII-9 Supervision ......................................................................................................63

XIII-10 Disclosing Orders.............................................................................................64

XIII-11 Reserved. ..........................................................................................................64

XIII-12 Disruptive Practices .........................................................................................64

XIII-13 Front Running ..................................................................................................64

XIII-14 Wash Trading; Accommodation Trading, Money Passes ................................64

XIII-15 Cross Trades.....................................................................................................65

CHAPTER XIV DISCIPLINE AND ENFORCEMENT ..............................................................65

XIV-1 General .............................................................................................................65

XIV-2 Inquiries and Investigations .............................................................................67

XIV-3 Reports of Investigations .................................................................................68

XIV-4 Review of Investigative Reports ......................................................................68

XIV-5 Notice of Charges and Opportunity to Respond ..............................................69

XIV-6 Answer to Notice of Charges ...........................................................................70

XIV-7 Service of Notice of Charges ...........................................................................71

XIV-8 Settlements .......................................................................................................71

XIV-9 Disciplinary Panel ............................................................................................72

XIV-10 Convening Hearings of Disciplinary Proceedings ...........................................72

XIV-11 Respondent Review of Evidence .....................................................................73

XIV-12 Conducting Hearings of Disciplinary Proceedings ..........................................74

XIV-13 Decision of Disciplinary Panel ........................................................................75

XIV-14 Sanctions ..........................................................................................................76

XIV-15 Costs .................................................................................................................76
© 2010-2023 FMX Futures Exchange, L.P. 

XIV-16 Appeal from Disciplinary Panel Decision, Summary Impositions of 

Fines and Other Summary Actions ..................................................................77

XIV-17 Summary Imposition of Fines ..........................................................................79

XIV-18 Summary Suspensions and Other Summary Actions ......................................80

XIV-19 Rights and Responsibilities after Suspension or Termination .........................82

XIV-20 Notice to the Respondent, the CFTC and the Public .......................................82

CHAPTER XV ARBITRATION ..................................................................................................83

XV-1 General .............................................................................................................83

XV-2 Forum ...............................................................................................................83

XV-3 Applicable Arbitration Rules ...........................................................................83

XV-4 Penalties ...........................................................................................................83

PART C RULES OF THE CX DIVISION ........................................................................84

CHAPTER XX TERMS APPLICABLE TO THE CX DIVISION ..............................................84

XX-1 Defined Terms .................................................................................................84

XX-2 Rules of Interpretation .....................................................................................92

XX-3 Effect of Titles .................................................................................................93

XX-4 Amendment of Rules .......................................................................................93

XX-5 Hierarchy of Interpretation of Rules ................................................................93

CHAPTER XXI ADMISSION TO TRADE ON CX DIVISION .................................................94

XXI-1 CX Participants and CX Trading Accounts .....................................................94

XXI-2 Responsible Trading Agents ............................................................................95

XXI-3 CX Trading Privileges .....................................................................................96

XXI-4 Eligibility .........................................................................................................96

XXI-5 Application for CX Trading Privileges ............................................................98

XXI-6 Referral and Solicitation of Participants and Orders .......................................99

CHAPTER XXII CX DIVISION TRADING STANDARDS.....................................................101

XXII-1 CX Division Contracts ...................................................................................101

XXII-2 CX Division Trading Days and Trading Hours .............................................101

XXII-3 Opening and Closing Trading in CX Division Contracts ..............................102

XXII-4 CX Division Contract Order Entry ................................................................102

XXII-5 Acceptable CX Division Contract Orders ......................................................102

XXII-6 Information Regarding CX Contract Orders ..................................................102

XXII-7 Permissible Pre-Execution Discussions On CX Division ..............................103
© 2010-2023 FMX Futures Exchange, L.P. 

XXII-8 Errors, Trade Cancellation and Price Adjustments of CX Division 

Contracts ........................................................................................................103

XXII-9 Investment of Certain CX Participant Account Funds ..................................104

XXII-10 Financial Requirements for Order Entry and Executions on the CX 

Division ..........................................................................................................104

XXII-11 Reportable Positions ......................................................................................106

CHAPTER XXIII CLEARING OF CX DIVISION CONTRACTS ...........................................106

XXIII-1 Rules of the CX Clearinghouse ......................................................................106

XXIII-2 Clearing Services ...........................................................................................106

XXIII-3 Transfer of Open Positions to Clearinghouse ................................................106

XXIII-4 Substitution ....................................................................................................106

XXIII-5 Offsets ............................................................................................................107

CHAPTER XXIV CX DIVISION CONTRACTS ......................................................................107

XXIV-1 Contract Specifications ..................................................................................107

CHAPTER XXV CX DIVISION INCENTIVE PROGRAMS ...................................................108

XXV-1 . 2023 Automated Liquidity Provider (ALP) Program ..................................108
- 1 - 

FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

PART A RULES OF THE FMX DIVISION 

Scope: The Rules of the Exchange (“the Rules”) in Part A apply to trading of Contracts (as defined 

below) on the FMX Division of FMX Futures Exchange, L.P. (the “Exchange”). 

CHAPTER I 

DEFINITIONS; INTERPRETATION; AMENDMENTS 

I-1 Defined Terms 

The following terms have the meanings specified herein with regard to the Exchange and 

the FMX Division unless otherwise specifically provided in the Rules of the Exchange (as defined 

below) or the context otherwise requires. 

Administrator 

The term “Administrator” means an employee or agent designated by a Participant or a 

Direct Access Customer as its administrator with respect to the use of the Exchange Trading 

System by the Responsible Trading Agents of such Participant or Direct Access Customer. 

Affiliate 

An “Affiliate” of, or a Person “Affiliated” with, another Person is a Person who, directly 

or indirectly, Controls, is Controlled by, or is under common Control with, such other Person. 

Appeals Panel 

The term “Appeals Panel” means a panel comprised of three (3) individuals from the 

Regulatory Oversight Committee, with one individual acting as chairman, which will consider 

appeals in accordance with Chapter XIV. If fewer than three (3) individuals from the Regulatory 

Oversight Committee are eligible to serve on the Appeals Panel pursuant to Rule XIV-16, the 

Appeals Panel shall be a panel solely comprised of those individuals from the Regulatory 

Oversight Committee that are eligible to serve on the Appeals Panel and such additional 

individuals meeting the requirements of Public Director who are appointed by the Chief 

Compliance Officer pursuant to Rule XIV-16. Members of the Compliance Department shall not 

be eligible to serve on the Appeals Panel. Members of a Disciplinary Panel may not serve on an 

Appeals Panel for the same matter. 

Applicable Law 

The term “Applicable Law” means, with respect to any Person, any Federal or state statute, 

law, regulation, rule or ordinance of any Federal or state authority applicable to such Person, 

including the CEA, CFTC Regulations, NFA Rules, and margin rules adopted by the Board of 

Governors of the Federal Reserve System. 
- 2 - 

FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Asset Manager 

The term “Asset Manager” means a person or an entity that exercises investment discretion 

over the assets of any other person or entity. 

Asset Manager Customer 

The term “Asset Manager Customer” means any Asset Manager who uses an FCM as agent 

in connection with trading on the FMX Division. 

Available Order Type 

The term “Available Order Type” means any form of Order to buy or sell a Contract on or 

subject to the Rules of the CX Division or the FMX Division with any modifiers that can be added 

to the Order as described as an Acceptable Order for the CX Division or the FMX Division, as 

applicable. 

Board of Directors 

The term “Board of Directors” means the Board of Directors of the Exchange constituted 

from time to time in accordance with the CX Futures Exchange, L.P. Operating Agreement and 

the Amended and Restated Limited Liability Company Agreement of CX Futures Exchange 

Holdings, LLC, dated as of February 18, 2009. 

Bunched Order 

The term “Bunched Order” means an Order for multiple accounts that have been combined 

into a single Order for the purpose of execution in accordance with the procedures of Rule III-13. 

Business Day 

The term “Business Day” means any day other than a Saturday, Sunday or any other day 

on which banking institutions in The City of New York are authorized or required by law, 

regulation or executive order to be closed. 

CEA 

The term “CEA” means the Commodity Exchange Act. 

CFTC 

The term “CFTC” means the Commodity Futures Trading Commission and includes any 

successor agency or authority. 
- 3 - 

FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

CFTC Regulation 

The term “CFTC Regulation” means any rule, regulation, order or directive and any 

interpretation thereof adopted by the CFTC. 

Chief Compliance Officer 

The term “Chief Compliance Officer” means an individual appointed by the Exchange who 

(i) fulfills the role of chief regulatory officer, (ii) does not have a relationship with the Exchange 

or any parent or subsidiary thereof of a type described in Rule X-5(b), (ii) is knowledgeable about 

futures trading and futures market operations as well as CFTC Regulations, and (iii) reports 

directly to the Regulatory Oversight Committee. 

Clearing Member 

The term “Clearing Member” means any FMX Participant that is a member of LCH 

Limited and is authorized pursuant to the Rules of LCH Limited to clear trades entered on the 

FMX Division. 

Combination Order 

The term “Combination Order” means an Order entered into the Exchange Trading System 

for more than one Contract that is to be executed jointly at a single price. A Combination Order 

consists of a bid(s) and/or offer(s) for more than one Contract on the same, or a related, underlying 

product. A Combination Order may be one of a type of Order commonly referred to as an intermarket or intra-market (calendar) spread, pack, bundle, strip or another combination of orders 

permitted by the Exchange to be entered as a Combination Order. 

Compliance Department 

The term “Compliance Department” has the meaning set forth in XIV-1(c). 

Contract 

The term “Contract” means any forward, swap, Futures or option (including an Option on 

Futures), and any other agreement, contract or transaction, which has been approved by the 

Exchange as generally eligible for trading as either a CX Division Contract or an FMX Division 

Contract on the Exchange pursuant to these Rules. 

Contract Rules 

The term “Contract Rules” means, with respect to any CX Division Contract or FMX 

Division Contract, the rules or other trading protocols containing specifications for such CX 

Division Contract or FMX Division Contract, as adopted, amended, supplemented or otherwise 

modified by the Exchange. 
- 4 - 

FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Control 

The term “Control” means the power to exercise a controlling influence over the 

management or policies of a Person unless such power is solely the result of an official position 

with such Person. Any Person who owns beneficially, directly or indirectly, more than 20% of the 

voting power in the election of directors of a corporation, or more than 25% of the voting power 

in the election of directors of any other corporation which directly or through one or more Affiliates 

beneficially owns more than 25% of the voting power in the election of directors of such 

corporation, shall be presumed to control such corporation. The terms “controlling” or 

“controlled” shall have meanings correlative to the foregoing. 

Control Desk 

The term “Control Desk” means the Exchange staff that supervise the proper operation of 

the Exchange Trading System and the trading market in real time at all times that the market is 

open for trading. 

Customer 

The term “Customer” means any person who uses an FCM or Introducing Broker as agent 

in connection with trading on the FMX Division and includes any Commodity Pool Operator or 

Commodity Trading Advisor trading as agent for a beneficial owner. 

Customer Account 

The term “Customer Account” means any Trading Account carried by an FMX Participant 

that is an FCM or Introducing Broker for a Customer who is not, and is not affiliated with, the 

FMX Participant. 

Customer Order 

The term “Customer Order” means an Order submitted by an FMX Participant acting as 

agent on behalf of a Customer or an order submitted by an Direct Access Customer.

CX Division Contract 

The term “CX Division Contract” means a Contract listed for trading on the CX Division 

and which is designated to be cleared by CX Clearinghouse, L.P. 

Direct Access Customer 

The term “Direct Access Customer” means any Customer of an FMX Participant that uses 

a User ID to access the Exchange Trading System directly. For the avoidance of doubt only an 
- 5 - 

FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

FMX Participant that is an FCM may sponsor a Direct Access Customer’s direct access. Direct 

Access Customers may not place Orders on behalf of Customers. 

Director of Hearings 

The term “Director of Hearings” means the individual appointed by the Chief Compliance 

Officer on behalf of the Exchange from time to time to act as its director of hearings. 

Disciplinary Panel 

The term “Disciplinary Panel” has the meaning set forth in RuleXIV-9. 

Emergency 

The term “Emergency” means any occurrence or circumstance that, in the opinion of the 

Board of Directors, requires immediate action and threatens or may threaten the fair and orderly 

trading in, or the liquidation of or delivery pursuant to, any Contract. An Emergency may include, 

without limitation, any of the following: 

(a) Any manipulative activity or attempted manipulative activity, 

(b) Any actual, attempted or threatened corner, squeeze, congestion or undue 

concentration of positions, 

(c) Any circumstance that may materially adversely affect the performance of 

Contracts, including any failure of the payment system, 

(d) Any action taken by the Federal or any foreign government, any other governmental 

body, or any other exchange or trading facility (foreign or domestic), in each case that may have a 

direct adverse effect on trading on the Exchange, 

(e) Any circumstance that may have a severe, adverse effect upon the physical 

functions of the Exchange, including fire or other casualty, bomb threats, terrorist acts, substantial 

inclement weather, power failures, communications breakdowns, computer system breakdowns, 

malfunctions of plumbing, heating, ventilation and air conditioning systems and transportation 

breakdowns, 

(f) The bankruptcy or insolvency of any Participant or the imposition of any injunction 

or other restraint by any government agency, court or arbitrator upon a Participant, that may affect 

the ability of such Participant to perform on its Contracts, 

(g) Any circumstance in which it appears that any Participant or any other Person has 

failed to perform its Contracts, is insolvent, or is in such financial or operational condition or is 

conducting business in such a manner that such Person cannot be permitted to continue in business 

without jeopardizing the safety of other Participants, the Exchange, LCH Limited or the CX 

Clearinghouse, and 
- 6 - 

FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

(h) Any other unusual, unforeseeable and adverse circumstance with respect to which 

it is impracticable for the Exchange to submit in a timely fashion a reviewable Rule to the CFTC. 

End of Business Day 

The term “End of Business Day” means 5:00 P.M. local time in the city of New York on 

each Trading Day. 

End of Trading 

The term “End of Trading” means 3:00 P.M. local time in the city of New York on each 

Trading Day or such other time as the Exchange may from time to time prescribe on its website or 

with respect to a specific Contract in the Contract Rules. The End of Trading is the time as of 

which such actions as are specified in the Rules of the Exchange or the relevant Contract Rules as 

taking place at the end of a Trading Day, such as determination of the daily Settlement Prices, take 

place. 

Entity 

The term “Entity” means any Person other than a natural person (e.g., a corporation, 

partnership, sole proprietorship or trust). 

Exchange 

The term “Exchange” means FMX Futures Exchange, L.P. (including its successors), a 

limited partnership organized under the laws of the State of Delaware, and when used with 

reference to the administration of any Rule of the Exchange, means either the Board of Directors 

or the Officer, employee, agent, committee or delegee to whom appropriate authority to administer 

such provision has been delegated by the Board of Directors. 

Exchange Official 

The term “Exchange Official” means any Officer of, or individual employed directly by, 

the Exchange. 

Exchange Trading System 

The term “Exchange Trading System” means the proprietary order entry and execution 

systems used by the Exchange for the placement and execution of orders or the collection and 

transmission of information relating to trading on the CX Division or the FMX Division. 

Executive Committee 

The term “Executive Committee” refers to a group of directors appointed to act on behalf 

of, and within the powers granted to them by, the Board of Directors. 

FCM
- 7 - 

FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

The term “FCM” means any Person registered with the CFTC as a futures commission 

merchant.

First Trading Day 

The term “First Trading Day” means the first Trading Day on which the relevant Contract 

trades on the Exchange, as specified in the applicable Contract Rules. 

FMX Division Contract 

The term “FMX Division Contract” means a Contract listed for trading on the FMX 

Division and which is designated to be cleared by LCH Limited. 

FMX Participant 

The term “FMX Participant” means a Participant that trades as agent for its Customer or 

for the Participant’s proprietary account in trading on the FMX Division. 

Futures 

The term “Futures” means any contract for the purchase or sale of any commodity or 

financial instrument for future delivery or settlement, as the case may be. 

General Partner 

The term “General Partner” means the general partner of the Exchange. 

Hearing Panel Committee 

The term “Hearing Panel Committee” means the Exchange committee that hears and 

adjudicates disciplinary matters under Chapter XIV of these Rules. 

Iceberg Order 

The term “Iceberg Order” has the meaning set forth in Rule III-4(b).

Independent Software Vendor 

The term “Independent Software Vendor” means a person that offers software, hardware, 

applications or devices that are capable of direct or indirect interface with, connection to or use of 

any of the FMX Division’s trading facilities. 

Last Trading Day 

The term “Last Trading Day” means the last Trading Day on which the relevant Contract 

trades on the Exchange, as specified in the applicable Contract Rules. 
- 8 - 

FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

LCH Limited 

The term “LCH Limited” means the derivatives clearing organization registered with the 

CFTC that the Exchange has designated to provide clearing services with respect to FMX Division 

Contracts. 

Market Data 

The term “Market Data” means any and all information relating to Orders or transactions 

on the Exchange Trading System, including Last Sale Information, information on bids and offers, 

any other data derived from such information, volume information, the format and presentation of 

any such data or information, and transmissions of such data or information to Participants, Market 

Data Vendors and other persons. 

Market Taker 

The term “Market Taker” means any Participant that has been identified by the Exchange 

to receive certain benefits with respect to one or more specified Contracts pursuant to objective 

criteria established by the Exchange. 

Matched Trade 

The term “Matched Trade” has the meaning set forth in Rule XXII-10(h). 

Matching Algorithm 

The term “Matching Algorithm” means the process to match an aggressing Order against 

one or more resting orders. The Exchange shall determine the Matching Algorithm implemented 

for each Contract it lists for trading from among the following. The Matching Algorithm used shall 

be specified in the terms and conditions of the Contract: 

 FIFO – First In First Out – FIFO matches the best price first, then if multiple orders 

exist at the same price, the oldest (first entered) Order is matched first. 

 Pro-Rata – Pro-Rata matches best price first then, if multiple Orders exist in the order 

book at the same price, a pro-rated percentage of the resting Orders (i.e., each resting 

order’s quantity divided by the total resting quantity at the price level), with all fills 

rounding down to the nearest integer that is at least two. Excess quantity is allocated 

according to FIFO. 

 Pro-Rata with TOP – A Pro-Rata with TOP Order matches an incoming order with the 

first order resting at any price level. The remainder of the incoming order will match 

Pro-Rata with the remaining orders at that price level. A minimum quantity may be 

applied to TOP Orders for a Contract. 
- 9 - 

FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Message Traffic 

The term “Message Traffic” means electronic transmissions of orders, trade reports and 

other messages entered into the Exchange Trading System by a Participant, Responsible Trading 

Agent or Direct Access Customer or sent to a Participant, Responsible Trading Agent or Direct 

Access Customer by the Exchange Trading System. Depending on the context, Message Traffic 

may refer to one-way or two-way transmissions. 

NFA 

The term “NFA” means the National Futures Association. 

No Bust Range 

The term “No Bust Range” means the range of prices for a Contract specified in the 

Contract’s Rules within which a trade submitted for review and cancellation may not be cancelled. 

The center point of the No Bust Range is the most recent market price for that contract as 

determined by the Exchange’s Designee in accordance with Rule III-10. 

Officer 

The term “Officer” shall have the meaning ascribed to it in Rule X-8. 

Operating Agreement 

The term “Operating Agreement” means the Limited Partnership Agreement of the 

Exchange, dated as of November 14, 2006, as amended, supplemented or otherwise modified from 

time to time. 

Option on Futures 

The term “Option on Futures” means a Contract which gives the holder the right, but not 

the obligation, to buy or sell any Futures contract at the option’s strike price on or before the 

option's expiration date. 

Order 

The term “Order” means an instruction to enter a bid or an offer to buy or sell a Contract 

on or subject to Exchange Rules.

Participant 

The term “Participant” means any Person that has been granted, and continues to have, 

Trading Privileges to enter Orders into the Exchange Trading System for CX Division Contracts 

(“CX Participant”) or FMX Division Contracts (“FMX Participant”) on or subject to the Rules of 

the Exchange. 
- 10 - 

FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Passwords 

The term “Passwords” has the meaning set forth in Rule XII-9(b). 

Person 

The term “Person” means any natural person, association, partnership, limited liability 

company, joint venture, trust or corporation. 

Position Accountability 

The term “Position Accountability” shall have the meaning ascribed to it in Rule XI-3. 

President 

The term “President” means the individual appointed by the Board of Directors from time 

to time to serve as president of the Exchange. 

Public Director 

The term “Public Director” has the meaning ascribed to it in Rule X-6(b), provided that 

such definition shall be amended from time to time as may be necessary to conform to any 

amendments or modifications to the term “Public Director” set forth in the CFTC Regulations as 

the CFTC may adopt from time to time. 

Qualified Market Maker 

The term “Qualified Market Maker” means a Participant or Direct Access Customer or 

Customer that provides liquidity on the Exchange under the terms of an Incentive Program 

established under Chapter VI. 

Regulatory Oversight Committee 

The term “Regulatory Oversight Committee” means the committee of the Board of 

Directors constituted in accordance with Rule X-4. 

Regulatory Services Agreement 

The term “Regulatory Services Agreement” shall have the meaning ascribed to it in Rule 

X-12. 

Reserve Quantity 

The term “Reserve Quantity” means the amount of any Order that is not exposed to market 

participants but is entered coterminous with, and available for purchase or sale upon the exhaustion 

of, the displayed Order quantity in connection with Iceberg Orders. 
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Responsible Trading Agent 

The term “Responsible Trading Agent” means any natural person who is authorized by a 

Participant or by a Direct Access Customer to place Orders on the Exchange Trading System. 

Rules of the Exchange 

The term “Rules of the Exchange” means any rule adopted or amended, from time to time, 

by the Exchange. 

Rules of LCH Limited 

The term “Rules of LCH Limited” means the constitutive documents and any rules, 

regulations, interpretations, stated policies or instruments corresponding to any of the foregoing, 

in each case as adopted or amended from time to time by LCH Limited and applicable to Contracts 

traded on the FMX Division. 

Secretary 

The term “Secretary” means the individual appointed by the Board of Directors from time 

to time to serve as secretary of the Exchange. 

Settlement Price 

The term “Settlement Price” means, with respect to any Contract, the price established 

either at the end of each Trading Day or at contract expiration, as the context otherwise requires, 

in accordance with Rule III-17 Daily Settlement Price Determination and any additional 

procedures from time to time specified by the Exchange. 

Trading Account 

The term “Trading Account” shall mean, as applicable, with respect to each Participant 

each account established and maintained by such Participant at the Exchange (1) through which 

the Participant’s Responsible Trading Agents will trade CX Division Contracts (“CX Trading 

Account”) or (2) through which the Participant’s Responsible Trading Agents and Direct Access 

Customers will trade FMX Division Contracts (“FMX Trading Account”), respectively. 

Trading Day 

The term “Trading Day” means, with regard to CX Division Contracts, any day on which 

the Exchange is open and available for trading CX Division Contracts, with regard to FMX 

Division Contracts, any day on which the Exchange is open and available for trading FMX 

Division Contracts and the CX Clearinghouse or LCH Limited, respectively, is open and available 

for the clearing of applicable Contracts. 
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Trading Hours 

The term “Trading Hours” means, with respect to any Contract, the hours during which the 

Exchange is regularly open for the trading of such Contract, as set forth in the relevant Contract 

Rules. 

Trading Privileges 

The term “Trading Privileges” means, with respect to Participants and their respective 

Responsible Trading Agents and, as applicable, their Direct Access Customers, the right to enter 

Orders for certain or all CX Division Contracts (“CX Trading Privileges”) or FMX Division 

Contracts (“FMX Trading Privileges”) in electronic form directly to the Exchange Trading System. 

Transfer Trade 

The term “Transfer Trade” refers to moving a position from an account carried on the books 

of one Clearing Member to an account carried on the books of a different Clearing Member 

provided that both accounts have the same beneficial owner or, in the case of transfers between 

accounts with different beneficial owners, the movement resolves an error trade in accordance with 

Rule III-10. 

Treasurer 

The term “Treasurer” means the individual appointed by the Board of Directors from time 

to time to serve as treasurer of the Exchange. 

User ID 

The Term “User ID” means the unique identifier provided by the Exchange to a 

Responsible Trading Agent that provides access to the Exchange Trading System. 

Vice President 

The term “Vice President” means any individual appointed by the Board of Directors from 

time to time to serve as a vice president of the Exchange. 

I-2 Rules of Interpretation 

For all purposes of these Rules of the Exchange, except as otherwise expressly provided 

herein or unless the context otherwise requires: 

(a) the terms defined in these Rules of the Exchange include the plural as well as the 

singular and vice versa,

(b) words importing gender include all genders, 
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© 2010-2023 FMX Futures Exchange, L.P. 

(c) any reference to a Chapter, Rule or Appendix refers to a Chapter or Rule of, or 

Appendix to, these Rules of the Exchange, 

(d) any reference to these Rules refers to these Rules of the Exchange, including all 

Appendices hereto, and the words herein, hereof, thereto, hereto and hereunder and words of 

similar import refer to these Rules and their appendices as a whole and not to any particular Part, 

Chapter, Rule, appendix or any other subdivision, 

(e) references to days, months and years refer to calendar days, months and years, 

respectively, 

(f) all references herein to “including” shall be deemed to be followed by the words 

“without limitation,” 

(g) any term used herein that is defined in the CEA or CFTC Regulations shall have 

the meaning assigned to it therein, and 

(h) all references herein to a time of day refer to local time in The City of New York. 

I-3 Effect of Titles 

The titles of these Rules have been inserted for convenience of reference only and shall not 

affect the meaning of these Rules. 

I-4 Amendment of Rules 

New Rules of the Exchange may be adopted, and existing Rules of the Exchange may be 

amended or repealed, by the Board of Directors. All such new Rules of the Exchange, amendments 

or repeals shall become effective on such date (after any required certification with or approval 

thereof by the CFTC) as may be determined by the Exchange. 

I-5 Hierarchy of Interpretation of Rules 

(a) The Rules are divided into three Parts. The rules specific to the FMX Division are 

included in Part A, the General Rules of the Exchange are included in Part B, and the rules specific 

to the CX Division are located in Part C. Notwithstanding any provision of these Rules to the 

contrary, in the event of any conflict between a Rule in Part A governing the FMX Division and a 

General Rule of the Exchange in Part B of this Rulebook, the Part A Rule shall govern, or in the 

event of any conflict between a Rule in Part C governing the CX Division and a General Rule of 

the Exchange in Part B of this Rulebook, the Part C Rule shall govern. 

(b) Notwithstanding any provision of these Rules to the contrary, in the event of any 

conflict between a Rule in Parts A, B or C of this Rulebook and a specific Contract Rule in Chapter 

V for FMX Division Contracts or Chapter XXV for CX Division Contracts, the specific Contract 

Rules shall govern with respect to trading in the relevant Contract. 
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© 2010-2023 FMX Futures Exchange, L.P. 

(c) Notwithstanding the generality of Rule I-5(a) or anything to the contrary in Rule 

II-5, the Contract Rules for each individual Contract may specify whether such Contract may be 

settled via cash settlement, physical delivery of the underlying commodity, or by any other means, 

as applicable. 

CHAPTER II 

ADMISSION TO TRADE CONTRACTS 

II-1 FMX Participants and FMX Trading Accounts 

(a) Each FMX Participant, its Responsible Trading Agents and Direct Access 

Customers shall have the right to access the Exchange Trading System, including the right to place 

Orders for FMX Trading Accounts as provided in this Chapter. 

(b) Upon application to the Exchange and an explanation of the reasons and uses 

therefore, the Exchange in its discretion may permit an FMX Participant to maintain more than 

one proprietary FMX Trading Account, provided however, FMX Participants need not provide an 

explanation for maintaining a proprietary account and one or more Customer accounts. 

(c) In the event that the Exchange determines that FMX Participants may be permitted 

to maintain more than one Trading Account as described in paragraph (b) of this Rule, each FMX 

Participant shall designate each of its Responsible Trading Agents or Direct Access Customers, as 

the case may be, to trade any or all of the FMX Participant’s Customer accounts, provided that 

an FMX Participant shall at all times be responsible for all of its FMX Trading Accounts as set 

forth under these Rules, including any providing direct access to an Direct Access Customer, as 

provided under Rule II-3. 

(d) Subject to the requirements and procedures set forth in these Chapters II and III, 

FMX Trading Privileges shall be offered to all applicants eligible to be FMX Participants as 

determined by the Exchange, subject to any limitations or restrictions imposed by the Exchange. 

FMX Trading Privileges are non-transferable, non-assignable, may not be sold or leased, and are 

specifically limited to the category of FMX Division Contracts to which such FMX Trading 

Privileges are granted. 

(e) By virtue of obtaining FMX Trading Privileges, an FMX Participant shall not 

obtain any equity or other interest in the Exchange, including voting rights or rights to receive any 

dividends or other distributions, whether arising from a dissolution, merger, consolidation 

involving the Exchange or otherwise, unless specifically so provided by agreement with the 

Exchange. 

II-2 Responsible Trading Agents 

(a) Each FMX Participant or Direct Access Customer, as applicable, shall appoint one 

or more individuals to act as a Responsible Trading Agent. 
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FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

(b) FMX Participants or Direct Access Customers may appoint a third party as their 

Responsible Trading Agent, pursuant to a power of attorney or other instrument, in a form 

prescribed or approved by the Exchange, providing such third party with discretionary trading 

authority with respect to the FMX Participant’s Trading Account. 

(c) Each FMX Participant may at any time revoke an authorization granted by it to any 

Responsible Trading Agent or Direct Access Customer by providing written notice of such 

revocation to the Exchange, such written notification may be by electronic mail. An FMX 

Participant shall take immediate measures appropriate to ensure that, after such revocation, (i) the 

affected Responsible Trading Agent or Direct Access Customer shall not have access to the 

Exchange Trading System or (ii) the affected Responsible Trading Agent or Direct Access 

Customer shall not utilize its User ID, and the Exchange shall act promptly, but in any event within 

one (1) Business Day of receiving notice from the FMX Participant, to disallow Order entry by 

any such Person. 

(d) Without limiting the foregoing, each Responsible Trading Agent will consent, in a 

form satisfactory to the Exchange, to abide by these Rules and Applicable Law prior to accessing 

the Exchange Trading System, and each FMX Participant will ensure on an ongoing basis that 

(i) none of its Responsible Trading Agents or 

Direct Access Customers is subject to a disqualification 

pursuant to Section 8a(2) of the CEA (unless an appropriate 

exemption has been obtained with respect thereto), 

(ii) each of its Responsible Trading Agents will 

be technically proficient, 

(iii) each of its Responsible Trading Agents will 

conduct its business in a fair and equitable manner, and 

(iv) each of its Responsible Trading Agents will 

conduct its business in accordance with these Rules. 

II-3 Direct Access Customers 

(a) Subject to Rule XII-13, each FMX Participant may provide one or more of its 

Customers direct access to the Exchange Trading System, and any such Customer will become a 

Direct Access Customer for purposes of these Rules and shall be entitled to exercise FMX Trading 

Privileges and to access the Exchange Trading System directly, subject to the terms and conditions 

of these Rules. 

(b) Any FMX Participant wishing to designate a Direct Access Customer shall notify 

the Exchange and must obtain from each Direct Access Customer an agreement, in the form 

specified by the Exchange, pursuant to which, among other things, the Direct Access Customer 

agrees to comply with these Rules and Applicable Law. Each Direct Access Customer must satisfy 

such requirements as may be prescribed by the Exchange from time to time and shall be subject to 
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© 2010-2023 FMX Futures Exchange, L.P. 

the disciplinary authority of the Exchange and possible fine or restriction or revocation of Trading 

Privileges. 

(c) Direct Access Customers of any FMX Participant may access the Exchange 

Trading System directly, provided that the following provisions of this Rule II-3 are satisfied: 

(i) The FMX Participant must be an FCM and 

the Customer Account must be with the FMX Participant. 

(ii) The FMX Participant must provide to the 

Exchange, in a form acceptable to the Exchange, evidence of 

a guaranty from a Clearing Member for the Direct Access 

Customer’s account or an omnibus account in the name of the 

FMX Participant through which the Direct Access Customer 

is trading, assuring the financial performance of all trades and 

positions for that account. 

(iii) The FMX Participant shall provide to the 

Control Desk such information as shall be requested pertaining 

to the Direct Access Customer for which access is sought, 

including but not limited to, name, address, account number 

assigned by the FMX Participant, any give-up information, 

email address and telephone numbers. The FMX Participant 

shall identify the Direct Access Customer’s Administrator. 

(iv) The Control Desk, once it is satisfied that all 

requested information has been provided, shall issue to the 

FMX Participant’s Administrator a User ID and Password or 

identifiers and Passwords for use by such Direct Access 

Customer. 

(v) Only once all requirements are met, risk 

controls have been established, and the Exchange is satisfied 

in its sole discretion with the information provided shall the 

Exchange enable the User ID to be used by the Direct Access 

Customer for purposes of trading on the Exchange Trading 

System. Notwithstanding the foregoing, the FMX Participant 

shall remain responsible in accordance with these Rules for the 

acts and omissions of any of its Direct Access Customers, 

regardless of the level of risk controls set by the Clearing 

Member and the approval of such risk controls by the 

Exchange. 

(d) The Exchange may deny (or may condition) or revoke the grant of Trading 

Privileges to any Person: 
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© 2010-2023 FMX Futures Exchange, L.P. 

(i) who is a Direct Access Customer or an FMX 

Participant through which a Direct Access Customer or 

Customer trades and, in any such case, any such Direct Access 

Customer or Customer maintains a position in any Contract 

that, when considered in light of the other positions maintained 

by the FMX Participant through which such Direct Access 

Customer or Customer trades and any other factors that the 

Exchange reasonably deems relevant, including, as applicable, 

(A) the positions maintained by such FMX Participant, such 

FMX Participant’s Responsible Trading Agents and such 

FMX Participant’s other Customers, (B) the required financial 

information provided by such FMX Participant and (C) the 

level of margin maintained by such FMX Participant at such 

FMX Participant’s Clearing Member, the Exchange 

reasonably believes could jeopardize the financial safety of 

such FMX Participant or any of such FMX Participant’s other 

Customers. 

(ii) For the avoidance of doubt, any limitation, 

suspension or revocation of Trading Privileges pursuant to 

Rule II-3(d), in the sole discretion of the Exchange, 

(A) may take the form of (x) a full suspension or revocation of 

Trading Privileges, (y) a requirement that the positions at issue be 

immediately liquidated in full or reduced to a reasonable level to be set by 

the Exchange as a condition to the Trading Privileges remaining in effect or 

(z) a prohibition on the use of such Trading Privileges in respect of the 

trades of any Customer identified by the Exchange; 

(B) may be applied to the Trading Privileges of the Direct 

Access Customer or FMX Participant at issue, such Direct Access 

Customer’s FMX Participant or the other Direct Access Customers and 

Responsible Trading Agents of such FMX Participant, in each case, as 

deemed reasonably necessary by the Exchange for the protection of such 

Persons and other FMX Participants of the Exchange; and 

(C) in the case of any suspension, revocation or limitation of the 

Trading Privileges of any Responsible Trading Agents or Direct Access 

Customer of any FMX Participant pursuant to this Rule II-3 may also 

suspend, revoke or limit the Trading Privileges of such FMX Participant or 

such FMX Participant’s Responsible Trading Agents or Direct Access 

Customers, as the Exchange deems necessary to protect its other FMX 

Participants and the integrity of the Exchange Trading System. 
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FMX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

II-4 FMX Trading Privileges 

(a) For purposes of these Rules, any reference to (i) the FMX Trading Privileges of an 

FMX Participant shall also be deemed to refer and apply to the exercise of Trading Privileges by 

any of such FMX Participant’s Responsible Trading Agents and Direct Access Customers, (ii) an 

FMX Participant submitting or receiving Orders, bids, offers or Message Traffic into or from the 

Exchange Trading System or trading subject to Exchange rules, shall be deemed also to refer and 

apply to any such actions engaged in by any of such FMX Participant’s Responsible Trading 

Agents and Direct Access Customers and (iii) the knowledge of, or matters known to, any FMX 

Participant shall be deemed also to refer to and include the knowledge of, or matters known to, its 

Responsible Trading Agents, other personnel and Direct Access Customers. 

(b) Each Direct Access Customer shall be deemed to be a “member” of the Exchange 

for all purposes under the CEA. 

II-5 Eligibility 

(a) None of BGC Group, Inc., Cantor Fitzgerald, L.P., or any Person Affiliated with 

either of the foregoing may become an Asset Manager Customer, Customer, Direct Access 

Customer, FMX Participant, or Qualified Market Maker, and no Person may designate the 

employees or agents of any of the foregoing as a Responsible Trading Agent. 

(b) To be eligible to become an FMX Participant, applicants initially and on a 

continuing basis thereafter, must (i) satisfy such financial criteria as may be prescribed by the 

Exchange from time to time; (ii) have sufficient technical and operational capabilities to fulfill any 

other obligations applicable to FMX Participants, their Responsible Trading Agents or Direct 

Access Customers as may from time to time be required by the Exchange; and (iii) satisfy such 

other requirements or criteria as may from time to time be adopted by the Exchange. 

(c) In considering any applicant for status as an FMX Participant, Responsible Trading 

Agent, or Direct Access Customer, the Exchange may request additional information, or employ 

such other means that it deems desirable or appropriate, to ascertain relevant facts bearing on the 

applicant’s qualifications. 

(d) The Exchange may limit an FMX Participant to trading specified FMX Division 

Contracts based upon financial, regulatory or other criteria established by the Exchange that are 

impartial and transparent and that are applied in a non-discriminatory manner. 

(e) An FMX Participant may trade on the CX Division only if also admitted as a CX 

Participant. 

(f) The Exchange in its sole discretion may deny (or may condition) the grant of FMX 

Trading Privileges of any FMX Participant, Responsible Trading Agent or Direct Access 

Customer: 
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© 2010-2023 FMX Futures Exchange, L.P. 

(i) if such Person is unable satisfactorily to 

demonstrate a capacity to adhere to all applicable Rules of the 

Exchange, Rules of LCH Limited and CFTC Regulations, 

including, to the extent applicable, those concerning recordkeeping, reporting, finance and trading procedures, 

(ii) if such Person would bring the Exchange into 

disrepute, or 

(iii) for such other causes as the Exchange may 

determine from time to time. 

(g) The Exchange in its sole discretion may condition or revoke an FMX Participant’s 

Trading Privileges or, in the case of a Responsible Trading Agent or Direct Access Customer 

condition or revoke its association with an FMX Participant or its access rights, respectively, if 

any of the circumstances specified in the preceding paragraph (e) exist with respect to such FMX 

Participant, Responsible Trading Agent, or Direct Access Customer or if such FMX Participant, 

Responsible Trading Agent or Direct Access Customer: 

(i) fails to meet any of the qualification 

requirements for FMX Trading Privileges or association or 

direct access after such FMX Trading Privileges, association 

or direct access have been approved; 

(ii) fails to meet any condition placed by the 

Exchange on such FMX Trading Privileges, association; or 

direct access; or 

(iii) violates any agreement with, or Rule of, the 

Exchange. 

II-6 Application for FMX Trading Privileges 

(a) Each application to become an FMX Participant or a Direct Access Customer shall 

be in such form as may from time to time be prescribed by the Exchange. Each applicant to become 

an FMX Participant or a Direct Access Customer shall promptly update the applicable application 

materials if any of the information provided therein becomes inaccurate or incomplete. The 

Exchange shall act upon, and approve or disapprove, any such application without unreasonable 

delay. 

(b) Each applicant to become an FMX Participant or Direct Access Customer shall: 

(i) submit to the Exchange executed forms of all 

applicable application documents; 
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© 2010-2023 FMX Futures Exchange, L.P. 

(ii) pay to the Exchange such initial fees as may 

be prescribed by the Exchange from time to time; and 

(iii) agree in written or electronic form to abide by 

these Rules and Applicable Law. 

(c) Upon the Exchange’s approval of an applicant’s FMX Participant application and 

upon the Exchange’s confirmation that the initial fee payable by the applicant, as may be 

prescribed, has been paid to the Exchange, the applicant shall become an FMX Participant or a 

Direct Access Customer within the participation category or categories so approved and obtain 

FMX Trading Privileges applicable to that category or categories. 

(d) Any Person who has been denied FMX Trading Privileges or granted only 

conditional FMX Trading Privileges pursuant to this Rule II-6 and any Person who is not permitted 

to keep its FMX Trading Privileges or whose FMX Trading Privileges are conditioned pursuant to 

this Rule II-6 may appeal the Exchange’s decision in accordance with the provisions of Chapter 

XIV relating to disciplinary proceeding appeals. 

II-7 Front-End User Interface and Independent Software Vendors 

(a) Access to the Exchange by any FMX Participant using the front-end interface (or 

any other system) of an Independent Software Vendor shall be impartial, subject to Exchange 

criteria that are transparent and applied in a non-discriminatory manner. Each FMX Participant 

shall be solely responsible for ensuring that any front-end interface connecting to the Exchange 

Trading System that is not provided by the Exchange, and that is used by the Participant, its 

Responsible Trading Agents or Direct Access Customers, is in compliance, in design and 

operation, with Applicable Law and these Rules. 

(b) Any Independent Software Vendor wishing to access the Exchange may do so if it 

demonstrates that it is able to meet the technical, operational and other conditions set forth by the 

Exchange. Such conditions shall apply equally to all Independent Software Vendor applicants. All 

Independent Software Vendors receiving equal access to, or services from, the Exchange shall be 

subject to comparable fee structures. 

II-8 Financial and Risk Management Requirements for an FMX Participant 

that is an FCM; Requirements for an FMX Participant that is an 

Introducing Broker 

(a) Any FMX Participant that is an FCM and/or is a Clearing Member shall be required 

to comply with the minimum financial requirements described in Section 1.17 of the CFTC 

Regulations and other Applicable Law, and deliver to the Exchange a copy of any financial 

information (including any accountant’s certifications thereon) required by Section 1.10 of the 

CFTC Regulations to be filed with the CFTC or provided to the FCM’s designated self-regulatory 

organization (the “Required Financial Information”), in each case, within the time periods 

prescribed for such filing or delivery in Section 1.10 of the CFTC Regulations. 
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© 2010-2023 FMX Futures Exchange, L.P. 

(b) Any Participant that is an FCM shall be required to comply with the risk 

management program requirements of CFTC Regulation 1.11. 

(c) Any FMX Participant that is an Introducing Broker shall be required to comply 

with the minimum financial requirements described in Section 1.17 of the CFTC Regulations and 

other Applicable law and notify the Exchange immediately if at any time its adjusted net capital 

falls below that amount. 

CHAPTER III 

FMX TRADING STANDARDS 

III-1 FMX Division Contracts 

(a) The Exchange shall determine which FMX Division Contracts are available for 

trading subject to the Rules of the Exchange from time to time and, subject to the provisions of 

Chapter V, approve rules containing the specifications for such FMX Division Contracts, provided

that certifications or applications with respect to such FMX Division Contracts shall be submitted 

to the CFTC as required by the CEA and CFTC Regulations. 

(b) FMX Division Contracts shall be traded by an FMX Participant for its own account 

or for the account of its customers and will be cleared though LCH Limited. 

III-2 Trading Days and Trading Hours 

(a) The Exchange shall from time to time determine (a) the Trading Days during any 

particular calendar year and (b) the Trading Hours with respect to any particular FMX Division 

Contract. All time references shall be based on local time prevailing in The City of New York, 

New York, unless otherwise expressly set forth in the relevant FMX Division Contract Rules. 

Opening times start on the first second of the minute cited. Closing times end on the first second 

of the minute cited. Trading Hours may vary among different FMX Division Contracts. No FMX 

Participant may make any bid or offer for, or engage in any transaction in, any FMX Division 

Contract before or after such hours. 

(b) Trading will be suspended during periods the Exchange schedules for routine 

maintenance and during any announced periods of non-routine maintenance. In the event that 

trading is suspended either for routine or non-routine maintenance, notice will be given to FMX 

Participants as promptly as practicable both by posting of a notice on the Exchange’s website and 

by e-mail directly to each Participant. 

(c) The Control Desk will be staffed and will operate at all times during the Trading 

Hours of any FMX Division Contract. 
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© 2010-2023 FMX Futures Exchange, L.P. 

III-3 FMX Division Contract Order Entry 

The Responsible Trading Agents of each FMX Participant or Direct Access Customer shall 

enter Orders by electronic transmission and shall provide the information required by the Exchange 

Trading System for such FMX Division Contract. Orders must be in accordance with any 

parameters with respect to size and price as the Exchange in its discretion shall establish from time 

to time. The Exchange shall maintain an electronic record of Order entries. Each FMX Participant 

shall be responsible for any and all Orders in each of its Trading Accounts entered by any of its 

Direct Access Customers, its Responsible Trading Agents or its Direct Access Customers’ 

Responsible Trading Agents. 

III-4 Acceptable FMX Division Contract Orders 

The Order type or types available on the Exchange Trading System for each FMX Division 

Contract is at the discretion of the Exchange from among the following basic Order types with or 

without modification: 

(a) Basic Order types:

Cancel Order. A “Cancel Order” is an Order that cancels fully an existing buy or 

sell order.

Limit Order. A “Limit Order” is an Order to purchase or sell a Contract at a 

specified price or better. A Limit Order will be executed when entered to the extent that 

there are opposite Orders open in the Exchange Trading System, with any balance to 

remain as an open Order until it is executed or is cancelled, or until it expires at the End of 

Trading on the Trading Day designated on such Order. 

Market to Limit Order. A “Market to Limit Order” is an order that is submitted to 

execute at the current best market price including a limit to be used as the floor or ceiling 

price. If the order is only partially filled, the remainder of the order is canceled and resubmitted as a Limit Order with the limit price equal to the last price at which the filled 

portion of the order executed. 

Market With Protection Order. A “Market With Protection Order” is a market order 

that is filled within a Protected Range. A Market With Protection Order enters the order 

book as a Limit Order with the limit price equal to the price prevailing in the Exchange 

Trading System at the time the Market With Protection Order is entered into the Exchange 

Trading System, plus or minus the Protected Range. The Order is executed at all price 

levels between the prevailing market price and limit price. If the Order is not completely 

filled, the unfilled quantity becomes a Limit Order with the limit price being set at the limit 

price of the Protected Range. 

Stop Limit Order. A “Stop Limit Order” is an Order to buy or sell a stated number 

of Contracts at the best obtainable price as soon as a user-specified stop price is reached 

but only to a user-specified limit price. A buy Stop Limit Order becomes a Limit Order 
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© 2010-2023 FMX Futures Exchange, L.P. 

when the Contract trades at or above the specified stop price, whereas a sell Stop Limit 

Order becomes a Limit Order when the Contract trades at or below the specified stop trice. 

Stop Limit Orders must be submitted with a specified stop price and a specified limit price. 

Stop With Protection Order. A “Stop With Protection Order” is a Stop Limit Order 

that is filled within a Protected Range (as defined below). A Stop With Protection Order 

is triggered when a user-designated trigger price is traded on the Exchange Trading System. 

The Order then enters the order book as a Limit Order with the limit price equal to the 

trigger price, plus or minus the pre-defined Protected Range. The “Protected Range” is set 

by the Exchange and is typically the trigger price, plus or minus 50 percent of the No Bust 

Range for that product. The Order is executed at all price levels between the trigger price 

and limit price. If the Order is not completely filled, the remaining quantity rests in the 

Exchange Trading System at the limit price. A buy Stop With Protection Order must have 

a trigger price greater than the last traded price for the Contract. A sell Stop With 

Protection Order must have a trigger price lower than the last traded price for the Contract. 

(b) Order Modifiers are: 

Cancel Replace Order. A “Cancel Replace Order” is an Order to cancel the unfilled 

quantity of an existing buy or sell Order and replace it with a new Order for a different 

quantity and/or price.

Fill or Kill (FOK) Order. A “Fill or Kill Order” is executed, with one or multiple 

executions, against any existing Orders at the stated price or better, but only in the whole 

volume designated on the Order, as soon as the Order is received within a designated time 

period. If a Fill or Kill Order cannot be executed in whole, the Fill or Kill Order shall be 

cancelled. Fill or Kill Orders must be submitted with a specified volume. Fill or Kill Orders 

may be used with the following Order types: Limit Orders and Stop Limit Orders. 

Iceberg Order. An “Iceberg Order” involves matching a displayed quantity before 

filling a Reserve Quantity at a requested price level. Random display sizes can be produced 

by the Exchange Trading System within a minimum and maximum value provided by the 

user. The displayable portion of the Order will always be restricted by such parameters sent 

with the request. Reserve quantity will not be displayed, nor will any indicator be 

contained in the market data stream to expose its presence. Reserve may be used with the 

following Order types: Limit Orders and Stop Limit Orders. 

(c) Combination Orders: 

The Exchange may provide for the entry of Combination Orders into the Exchange 

Trading System. Any Combination Order may be matched against another Combination 

Order on the other side of the market provided that the Exchange Trading System maintains 

an order book for such Combination Orders. If an incoming Combination Order can be 

matched at a price more favorable to the Participant, or the Participant’s Customer if it is a 

Customer Order, entering the Combination Order by matching against Orders not in the 

Combination Order books, the Exchange Trading System, where and as possible shall 
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© 2010-2023 FMX Futures Exchange, L.P. 

match the incoming Combination Order against Orders for two or more Contracts which 

together match the requirements of the Combination Order; provided that such Order match 

shall not be guaranteed by the Exchange Trading System.

III-5 Information Regarding FMX Division Contract Orders 

The Exchange may make information regarding FMX Division Contract Orders (including 

prices bid or offered), and any other matters it may deem appropriate available to Participants, 

Direct Access Customers and their Responsible Trading Agents and other Persons at such times 

and in such manner (whether through the Exchange Trading System, a ticker, financial information 

services or otherwise) as it may consider necessary or advisable from time to time. 

Each Participant, Direct Access Customer, Responsible Trading Agent or other Person 

receiving any such information through the Exchange Trading System is expressly prohibited from 

redistributing such information unless expressly permitted by the Exchange. Employees and 

agents of the Exchange shall have access to the offices of any Participant, its Direct Access 

Customers and each of their Responsible Trading Agents or other Persons receiving information 

through the Exchange Trading System during regular business hours and in a commercially 

reasonable manner in order to observe the compliance by such Persons of this Rule. 

III-6 Pre-Execution Discussions and Cross Trades of FMX Division Contract 

(a) No Person shall enter through the Exchange Trading System into a pre-discussed 

transaction or assume on its own behalf or on behalf of a Customer the opposite side of its own 

order or its Customer’s order (a “Cross Trade”), except if the following conditions have been met: 

(i) the Person is entering into both sides of a 

Customer Order on a non-discretionary basis and prior written 

blanket or transaction-specific consent has been obtained in 

respect of any relevant Customer Account and the Person 

waits for a reasonable period of time, which shall be not less 

than five (5) seconds, after the initial Order is submitted before 

submitting the opposite side Order, or 

(ii) the trade is executed by two (2) FMX 

Participants trading for the same account, or for separate 

accounts of the same beneficial ownership, where neither 

FMX Participant has knowledge of the other’s Order and there 

is no coordination or prearrangement of the Cross Trade, 

provided that the relevant FMX Participant shall be 

responsible, upon the request of the Exchange, to demonstrate 

to the reasonable satisfaction of the Exchange, that neither 

FMX Participant had knowledge of the other’s Order. 
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(b) No Person may enter into a pre-discussed trade except if the following condition 

has been met; the Person waits for a reasonable period of time, which shall be not less than five 

(5) seconds, after the initial Order is submitted before submitting the opposite side Order. 

(c) No Person may disclose the details of any pre-execution communications with other 

parties. Furthermore, no party may take advantage of any information disclosed in pre-execution 

communication for a Cross Trade for the purpose of entering a subsequent order in the market. 

III-7 Opening and Closing Trading on the FMX Division 

(a) The Exchange may from time to time adopt procedures for the daily opening or 

closing of trading in any FMX Division Contract. 

(b) The Exchange may open trading by allowing Orders to be entered into the system 

at the start of trading on any Trading Day; or 

(c) absent the Exchange adopting the procedure indicated in paragraph (b) of this Rule 

or another alternative procedure for opening trading, the following procedure will be used to open 

trading in FMX Division Contract: 

(i) The Exchange Trading System will reject any 

Orders entered prior to the opening of trading. Upon the 

opening of trading, Order will have the priority in which they 

are received by the Exchange Trading System. 

III-8 Execution of Orders on the FMX Division 

(a) Orders to buy or sell any FMX Division Contract are subject to the trading 

requirements specified in the relevant Contract Rules. 

(b) Unless the Exchange determines to implement another Matching Algorithm, 

namely the Pro-Rata or the Pro-Rata with TOP, all Orders are matched with each other and 

executed electronically through the Exchange Trading System in accordance with FIFO, an 

algorithm that gives first priority to Orders at the best price and priority among Orders entered at 

the same price based on their time of entry into the Exchange Trading System, with the Order first 

entered receiving first priority. Without limiting the generality of the foregoing, FIFO is based 

upon the following principles: 

(i) An Order at a better price will always have 

priority over Orders at inferior prices. As among Orders at the 

same price, an Order with time priority will be executed before 

Orders that have been entered after the Order with time 

priority. An Order with time priority will not lose such priority 

if the quantity of the Order is subsequently reduced. However, 

an Order will lose its time priority if the price of the Order is 

changed. 
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(ii) After the commencement of Trading Hours 

on a Trading Day for a particular Contract time priority will 

be assigned to the first Order at a price that betters the best 

price prevailing when the Order is received. Only one buy 

Order and one sell Order can have time priority at any given 

time. Orders with time priority will be matched first regardless 

of their respective sizes. 

(iii) An Order will not lose time priority with 

respect to Orders at the same price if and when an Order at a 

better price is entered, but it will lose price priority. 

(iv) Once an Order with time priority has been 

filled, the algorithm described herein will be applied to the 

remaining Orders at the same price. Thus, the Order received 

immediately after the Order that initially had time priority will 

be assigned time priority and be the next Order to be executed 

at such price. 

(c) Notwithstanding anything in these Rules to the contrary, the Exchange may at any 

time use a different Matching Algorithm for an FMX Division Contract by giving notice of such 

algorithm to all FMX Participants at least ten (10) Trading Days before such algorithm is 

implemented. 

III-9 Modification and Cancellation of Orders on the FMX Division 

Any order for an FMX Division Contract that has been entered into the Exchange Trading 

System may be modified or cancelled unless and until it has been executed or has otherwise 

expired. Any such modification or cancellation requires that a Cancel Replace Order or Cancel 

Order, as the case may be, with respect to the original order be entered into the Exchange Trading 

System. Such modification or cancellation will become effective upon the issuance of an 

acknowledgement by the Exchange Trading System of the Cancel Order or Cancel Replace Order, 

as the case may be. Any Order automatically expires at the end of the Trading Hours on the Trading 

Day such order is placed, in the event of any suspension or curtailment of trading, or in the case 

of any failure of the Exchange Trading System. 

III-10 Errors, Trade Cancellation and Price Adjustments on the FMX Division 

(a) Trade Cancellation Authority 

The Exchange’s trade cancellation policy authorizes the Board, through its 

designee the Chief Compliance Officer (or the Chief Compliance Officer’s delegate) (the 

“Designee”), to adjust trade prices or cancel (bust) FMX Division Contract trades when 

such action is necessary to mitigate market disrupting events caused by the improper or 

erroneous use of the Exchange Trading System or by system defects. Notwithstanding any 

other provision of this Rule III-10, the Designee may adjust trade prices or cancel any trade 
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if the Designee determines that allowing the trade to stand as executed may have a material, 

adverse effect on the integrity of the market, provided, however, that any such 

determination by the Designee (if other than the Chief Compliance Officer) will be subject 

to review by the Chief Compliance Officer if the Designee determines such review to be 

necessary or appropriate. Subject to the immediately preceding sentence, the decision of 

the Designee shall be final. 

(b) Review of Trades 

The Designee may review a trade based on its analysis of market conditions or a 

request for review by a user of the Exchange Trading System. A request for review must 

be made within eight (8) minutes of the execution of the trade. The Designee shall 

promptly determine whether the trade will be subject to review, and upon deciding to 

review a trade, the Designee will promptly issue an alert to all FMX Participants, 

Responsible Trading Agents and Direct Access Customers on the Exchange Trading 

System indicating that the trade is under review. 

In the case of Contracts determined by the Designee to be illiquid, the Designee may initiate 

a review up to one hour after the execution of the trade, and has the authority, but not the 

obligation, to review trades reported any time before the start of the next Trading Day even 

if that is more than one (1) hour following execution if the Designee determines that the 

trade price was significantly out of line with fair value. 

In the course of its review of any trade, the Designee may, but is not obligated to, inform 

any of the parties to the trade of the identity and contact information of any other party to 

the trade. 

(c) Trade Price Adjustment and Cancellation Process 

The Designee will first determine whether the trade price is within the No Bust 

Range for the Contract. During fast market conditions, upon the release of significant 

news, or in other circumstances in which the Designee determines it is appropriate, the 

Designee may, without prior notice, temporarily increase the published No Bust Range, up 

to an amount that is double the published range. Such temporary action will be notified to 

the CFTC in accordance with CFTC Regulation 40.6(a)(6)(ii). 

In applying the No Bust Range, the Designee shall determine the market price for that 

Contract immediately before the trade under review (the “Market Price”). The Designee 

may consider any relevant information, including the existing market conditions, the 

volatility of the market, the prices of similar instruments in other markets, the last trade 

price on the Exchange Trading System, a better bid or offer price, a more recent price in a 

different Contract month, the price of the same or related Contract established in open 

outcry trading and any other factors that the Designee deems relevant. 

(i) Trade Price Inside the No Bust Range 
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If the Designee determines that the price of the trade was inside the No Bust 

Range, the Designee will promptly issue an alert to all Participants, Responsible 

Trading Agents and Direct Access Customers on the Exchange Trading System 

indicating that the trade shall stand. 

(ii) Trade Price Outside the No Bust Range 

If the Designee determines that a trade price is outside the applicable No 

Bust Range, the trade price shall be adjusted to a price agreed upon in a reasonable 

time by a Person not responsible for an Order that results in a trade price adjustment 

that is within the No Bust Range. In the absence of such agreement, the trade price 

shall be adjusted to a price that equals the Market Price for that Contract at the time 

of the questioned trade plus or minus the standard or adjusted No Bust Range; 

provided, however, that in the event that such adjusted price would be outside the 

trading range of the day at the time of the questioned trade, such adjustment shall 

be limited to the trading range as applicable. In the event there are multiple parties, 

prices and/or Contracts involved in the transactions at issue, the Designee has the 

authority, but not the obligation, to bust rather than price adjust such transactions. 

The Designee will promptly issue an alert to all Participants, Responsible Trading 

Agents and Direct Access Customers on the Exchange Trading System indicating 

that the prices of the trades outside the No Bust Range have been adjusted to the 

No Bust Range limit or have been busted. 

(iii) Liability for Losses Resulting from a Price 

Adjustment or Trade Bust. 

(A) Price-Adjusted Trades 

A Person responsible for an Order that results in a trade price 

adjustment shall generally not be liable for losses incurred by Persons 

whose trade prices were adjusted. 

(B) Busted Trades 

A Person responsible for an Order that results in a trade bust may be 

liable for the reasonable out-of-pocket losses incurred by Persons whose 

trades were busted or Persons whose Conditional Orders were executed and 

not busted. Issues of liability in such cases will be determined based upon 

all relevant facts and circumstances, including the conduct of the respective 

parties. 

(d) Trade Cancellation or Offset Procedures 

Upon a determination by the Designee that a trade shall be busted or that trade 

prices shall be adjusted, that decision will be implemented. The busted trade price and any 
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© 2010-2023 FMX Futures Exchange, L.P. 

price quotes that have been adjusted will be reflected as cancelled in the Exchange’s official 

record of time and sales. 

(e) Transfer Trades 

Positions that result from a trade determined by the Designee to be outside the No 

Bust Range that cannot be busted because the trade was not reported within eight (8) 

minutes of the execution of the trade may be transferred between the parties using a transfer 

trade upon agreement of the parties (a “Transfer Trade”). The Transfer Trade must use the 

original trade price and quantity. Any party may, but is not required to, include a cash 

adjustment to another party to the trade. Trades determined by the Designee to be inside 

the No Bust Range may not be reversed using a Transfer Trade. 

(f) Arbitration of Disputes Regarding Transfer Trade

If a party does not agree to transfer a position pursuant to Rule III-10(f), any other 

party to the trade may file an arbitration claim against the Person representing the other 

side of the trade. Written notice of such claim must be provided to the Exchange within 

five (5) Business Days of the execution of the trade. Failure to file the claim within five 

(5) Business Days shall be deemed a waiver of all claims. The arbitration claim will be 

conducted in accordance with Chapter XV. 

(g) Voluntary Adjustment of Trade Price 

When a trade outside of the No Bust Range is busted in accordance with this Rule 

III-10, the parties to the trade may agree voluntarily to reestablish the trade but to adjust its 

price and make a cash adjustment; provided that, all of the following conditions are met: 

(i) The Designee approves the adjustment 

(ii) The quantity of the position being 

reestablished is the same as the quantity of the trade that was 

busted. 

(iii) In the case of a trade below the Market Price, 

the adjusted price must be the lowest price that traded at or 

about the time of the trade without being busted. In the case 

of a trade above the Market Price, the adjusted price must be 

the highest price that traded at or about the time of the trade 

without being busted. 

(iv) The parties to the adjusted trade must report 

it to the Exchange Trading System using a Transfer Trade not 

later than the close of business on the Business Day after the 

trade occurred. 
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© 2010-2023 FMX Futures Exchange, L.P. 

(h) Busting Trades After System Malfunction. 

In the event that the Exchange Trading System malfunctions with live Orders in the 

queue waiting to be matched, such Orders shall not be matched. When the Exchange reopens the Exchange Trading System, the Exchange will conduct a Market Open including 

the Pre-Opening Period. 

(i) Transfers of FMX Division Contract Positions 

A Clearing Member may transfer a position in the Trading Accounts of its 

customers to: 

(i) correct errors in an existing FMX Division 

Contract, provided that the original trade documentation 

confirms the error; 

(ii) transfer an existing FMX Division Contract 

position from one Trading Account to another Trading 

Account owned by the same FMX Participant where no 

change in ownership is involved, except as provided for in 

section (k) below; 

(iii) transfer an existing FMX Division Contract 

position from one Clearing Member to another Clearing 

Member where no change in ownership occurs; or 

(iv) transfer an existing FMX Division Contract 

through operation of law from death or bankruptcy. 

(j) Subject to Rule III-11, a Participant may transfer a position on its books to other 

accounts beneficially owned by such Participant. 

(k) Upon written request, the Exchange may, in its sole discretion, allow the transfer 

of a position as a result of a merger, asset purchase, consolidation, or similar non-recurring 

transaction for a Clearing Member that is an organization. 

(l) Transfers of positions pursuant to this Rule III-11 must be made at the same prices 

that appear on the books of the transferring Clearing Member or Participant, as the case may be, 

or at the most recent settlement price, and the transfer must indicate the date when the original 

trade was made. Each Clearing Member or FMX Participant that is a party to a transfer of positions 

must make and retain records stating the nature of the transaction and the name of the counterparty 

Clearing Member or FMX Participant, as the case may be. Each Clearing Member that is a party 

to a transfer of positions must adhere to the Rules of LCH Limited related to transfers of positions 

and must provide any information required by LCH Limited related to such transfer. 
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© 2010-2023 FMX Futures Exchange, L.P. 

(m) Transfers of an existing physically-delivered FMX Division Contract from one 

account to another where no change in ownership is involved during the delivery month and the 

two (2) Business Days prior to the delivery month is not permitted for purposes of offset except to 

correct a bona fide clerical or operational error on the day that the error is identified and provided 

that the quantity of the offset does not represent more than one percent (1%) of the reported open 

interest in the affected Futures Contract month. 

III-11 Responsibility for Orders 

Each FMX Participant shall be responsible for (i) all Orders placed by it, and by any of its 

Responsible Trading Agents or Direct Access Customers and (ii) use of any of the User IDs 

assigned to it and any of its Responsible Trading Agents or Direct Access Customers. 

III-12 Allocation and Priority of Customer Orders; No Withholding of Orders; 

Bunched Orders 

(a) No FMX Participant shall enter an Order into the Exchange Trading System for its 

own account, an account in which it has a direct or indirect financial interest or a discretionary 

account, including, without limitation, an order allowing discretion as to time and price, when such 

Participant is in possession of any order for the benefit of a Customer that the Exchange Trading 

System is capable of accepting. A discretionary account is a Customer Account over which the 

FMX Participant has been given express discretionary trading authority by the Customer as 

documented by a power of attorney or other similarly effective trading authorization. 

(b) An FMX Participant shall not withhold or withdraw from the Exchange Trading 

System any order, or any part of an Order, for the benefit of any other Customer that is not a party 

to that Order. 

(c) Each FMX Participant shall ensure that Orders are allocated to the appropriate 

accounts and shall establish and enforce procedures to ensure appropriate allocations. 

(d) Bunched Orders may be submitted to the Exchange Trading System by a Participant 

only if all the requirements of (i) or (ii) below are satisfied: 

(i) If trade allocation is to be made based upon a 

pre-determined allocation system, then: 

(A) The Bunched Order must be accompanied by an account 

series designation, 

(B) each account within such series is a discretionary account, 

and 

(C) the Participant entering the Bunched Order has, and follows, 

a written, pre-determined allocation system that defines the series and 

provides for an equitable allocation of prices, or 
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© 2010-2023 FMX Futures Exchange, L.P. 

(ii) If trade allocation is made on a postexecution basis, then: 

(A) the person placing and directing the allocation shall be an 

“eligible account manager”, as defined by CFTC Regulation 1.35(b)(5)(i), 

acting pursuant to a prior written grant of trading discretion on behalf of 

each participating Customer Account, 

(B) each Bunched Order is accompanied by an account series 

designation that references the eligible account manager’s Order initiation 

document, 

(C) the allocation is made as soon as practicable after the 

Bunched Order is executed; account managers must provide allocation 

information to FCMs no later than a time sufficiently before the end of the 

Trading Day the order is executed to ensure that clearing records identify 

the ultimate customer for each trade, and 

(D) the allocation is made in compliance with CFTC 

Regulation 1.35(b)(5)(iv) and is otherwise fair and equitable such that no 

account or group of accounts shall receive consistently favorable or 

unfavorable treatment. 

III-13 Financial Requirements for Order Entry and Executions 

Each FMX Participant and Direct Access Customer that is not itself a Clearing Member 

must establish a clearing relationship with a Clearing Member. The Clearing Member shall 

establish risk controls and trading parameters for each FMX Participant, Direct Access Customer 

and Customer for which it clears and will provide such information to the Exchange in a manner 

suitable to the Exchange. All orders shall be checked against the risk controls prior to admittance 

into the order book. A Clearing Member shall utilize the risk control software tools provided by 

the Exchange, as appropriate. Notwithstanding the foregoing, the FMX Participant shall remain 

responsible in accordance with these Rules for the acts and omissions of any of its Direct Access 

Customers or Responsible Trading Agents regardless of the level of risk controls set by the 

Clearing Member and the approval of such risk controls by the Exchange. 

III-14 Revocation of Clearing Authorization: Trade Nullification 

In the event that LCH Limited terminates a Clearing Member’s authorization, any trade 

executed for that Clearing Member or for a Person guaranteed by that Clearing Member after the 

Exchange receives and processes notice of the termination from LCH Limited and prior to any 

reinstatement of such Clearing Member’s authorization, shall be nullified and cancelled by the 

Exchange at the price at which the nullified transaction was executed. The Exchange shall process 

such notice promptly.
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III-15 Customer Margin 

(a) The minimum amount of margin which must be obtained by (i) FMX Participants 

who carry Customer Accounts and (ii) Clearing Members from each FMX Participant, Direct 

Access Customer and Customer for which it carries an account shall be the same as the minimum 

amounts which must be so obtained by Clearing Members, as specified by LCH Limited. 

(b) The maintenance margin level which must be maintained by all Clearing Members 

for each account which has an open Contracts shall be the amount or level specified by LCH 

Limited. 

(c) At the close of trading on any Business Day when the net liquidating value of any 

account is less than the maintenance margin level, the Clearing Member carrying such account 

shall be required to reinstate the minimum amount of margin to the full amount required pursuant 

to these Rules within a reasonable period of time. 

(d) Each Clearing Member which carries an account that is required to reinstate a 

minimum amount of margin shall issue a call for margin within one (1) Business Day after the 

account is required to reinstate a minimum amount of margin. Each Clearing Member shall 

maintain written records of all margin calls (and any cancellations of margin calls). Such records 

shall be kept and shall be open for inspection in accordance with CFTC Rule 1.31. 

(e) A Clearing Member may liquidate any or all positions in a Customer account it 

carries that does not meet a margin call as required by these Rules. Any loss or deficiency resulting 

from such liquidation shall be the liability of the Customer account holder. 

(f) A Clearing Member shall not accept Orders for an undermargined account except 

for the establishment or closure of Contracts that reduces the risks of existing Contracts, unless the 

Clearing Member has been given assurances by the Person for whom the account is carried that 

funds to restore the equity in the account to the then prevailing minimum amount of margin are 

forthcoming and will be received within a reasonable period of time. 

III-16 Segregation, Custody and Investment of Customer Funds 

All Customer funds must be separately accounted for and segregated from proprietary and other 

funds by FMX Participants, and treated as belonging to Customers, in accordance with CFTC 

Rules 1.20 through 1.30 and CFTC Rule 1.32 and other Applicable Law. 

III-17 Daily Settlement Price Determination 

(a) The daily Settlement Price of each FMX Division Contract used by LCH Limited, 

for purposes of determining any amounts of margin due on Open Contract Positions, will be 

established by the Exchange as soon as practicable after the End of Trading on each Trading Day. 

(b) The daily Settlement Price of an FMX Division Contract shall be the volume 

weighted average price of all trades in that FMX Division Contract during (i) the last minute of 
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© 2010-2023 FMX Futures Exchange, L.P. 

trading on a Trading Day or (ii) such other period of time that may be specified in the Rules for 

that FMX Division Contract as its Settlement Price determination period. 

(c) If, in the sole opinion of the Control Desk, the Settlement Price for any FMX 

Division Contract calculated in accordance with Paragraph (b) above is inconsistent with the 

pricing of different Contract months, with cash or other market prices or with resting bids and 

offers at the close of the Trading Day or if there were no trades during the relevant Settlement 

Price determination period, the Control Desk may report a daily Settlement Price that it determines 

is consistent with fair market values. 

III-18 Required Reports 

(a) Each FMX Participant (on behalf of itself and its Customers) or Direct Access 

Customer required to file any report, statement, form or other information with the CFTC pursuant 

to CFTC Regulations Part 15 or 17 concerning any Contract or commodity underlying a Contract 

must simultaneously file a copy of such report, form or other information with the Exchange. Each 

FMX Participant shall be required to file with the Exchange any such report on behalf of any 

Customer of such FMX Participant who does not file such report to the Exchange itself. Each 

FMX Participant or Direct Access Customer must submit the report, form or other information to 

the Exchange in the form and manner designated by the Exchange. 

(b) For purposes of filings made or information provided to the Exchange pursuant to 

CFTC Regulations Part 15 or 17 each FMX Participant (on behalf of itself or any of its Customers 

that do not file such report itself) or Direct Access Customer, as the case may be, must report open 

Contract positions at or above such levels as the Exchange establishes from time to time, as set 

forth in Chapter XI. 

(c) Any FMX Participant (on behalf of itself and its Customers) required to file large 

trader reports as per sections (a) and (b) of this Rule shall submit a report to the Exchange in the 

event that it holds in any reportable account a current month position that exceeds the reportable 

level for any cash-settled contract that references the settlement price of another Designated 

Contract Market (“Reference DCM”) in the final Settlement Price. Such report must identify 

positions which such FMX Participant or its Customer owns or controls in the current month of 

the Reference DCM’s corresponding contract as of the open of trading and the close of trading on 

such Last Trading Day. The report must be provided after the close of trading and be in such form 

and manner as may be specified by the Exchange. An FMX Participant (on behalf of itself and its 

Customers) subject to the requirements of this Rule shall provide such other information as may 

be requested by the Exchange regarding transactions effected on the Last Trading Day by such 

Person in the corresponding Reference DCM contract, in such form and manner as may be 

specified by the Exchange. 

III-19 Recording of Orders and Record Keeping 

(a) Any Order, except an Order for a proprietary account, which is not in the form of 

an electronic or written record, and which is not immediately entered into the Exchange Trading 
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© 2010-2023 FMX Futures Exchange, L.P. 

System upon receipt, must within one (1) minute of its receipt be recorded in writing or caused to 

be recorded in writing by the FMX Participant receiving such Order. 

(b) The record of any Orders required to be recorded in writing under paragraph (a) of 

this Rule III-20 shall: 

(i) include the account identification, User ID, 

Source ID, if applicable, and Order number assigned by the 

receiving FMX Participant; 

(ii) include a date and time stamp to the nearest 

minute when the Order was received; and 

(iii) be written or in an electronic form, in each 

case, which is not subject to erasure and is otherwise 

satisfactory to the Exchange. 

(c) All memoranda reflecting Orders for a Customer Account shall be retained in 

accordance with Rule V-1. 

(d) All Order-related information entered into the Exchange Trading System shall be 

retained by the Exchange for the time period set forth in Rule V-1. 

III-20 Reporting of Open Interest by Clearing Members 

On each Trading Day by the time set by the Exchange, and in the format the Exchange 

specifies, each Clearing Member shall report to the Exchange the total for each Contract of all long 

open contracts and the total for each Contract of all short open contracts it carries by proprietary 

and Customer Account for each Contract. Clearing Members shall not include in its report of open 

Contracts against which delivery notices have been noticed or issued. Clearing Members shall 

report separately short Contracts that have been noticed for delivery and long Contracts against 

which delivery notices have been issued by LCH Limited. 

CHAPTER IV 

CLEARING OF FMX DIVISION CONTRACTS 

IV-1 Rules of LCH Limited 

(a) The clearing services provided by LCH Limited with respect to FMX Division 

Contracts, and the rights and obligations of Clearing Member purchasers and sellers under cleared 

Contracts (including, without limitation, rights and obligations in respect of clearing and 

settlement, variation margin payments and performance at maturity, and in the case of Options on 

Futures, upon exercise thereof), shall be governed by the Rules of LCH Limited. 
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(b) The Exchange may discontinue the clearance of contracts at LCH Limited and 

select and substitute another derivatives clearing organization that has been approved by the CFTC 

to clear FMX Division Contracts. 

IV-2 Substitution 

Where a Contract is cleared through LCH Limited, the clearinghouse shall be deemed 

substituted as seller to the buyer and shall also be deemed substituted as buyer to the seller, and 

thereupon LCH Limited shall have all of the rights and be subject to all of the liabilities of the 

original parties with respect to such contract. 

CHAPTER V 

FMX DIVISION CONTRACTS 

The terms and conditions of FMX Division Contracts listed for trading on the Exchange 

are as follows:

V-1 Reserved. 

V-2 Reserved. 

CHAPTER VI 

FMX DIVISION INCENTIVE PROGRAMS 

Incentive programs applicable to the FMX Division are as follows: 

VI-1 Incentive Programs 

(a) Market Maker Incentive Program 

The Market Maker Incentive Program provides that FMX Participants, or Direct Access 

Customers, meeting objective criteria with respect to providing liquidity to Contracts shall 

be entitled to receive benefits, as provided under the terms of the Incentive Program. 

(i) FMX Participants and Direct Access 

Customers may apply for participation in the Market Maker 

Incentive Program, and the Exchange in its discretion shall 

select applicants, thereafter “Qualified Market Makers,” to 
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© 2010-2023 FMX Futures Exchange, L.P. 

participate in each cycle of the Market Maker Incentive 

Program; 

(ii) the obligations of such Qualified Market 

Maker, including, but not limited to, any applicable minimum 

time-in-market, quote spread width and other trading 

requirements; and 

(iii) the benefits accruing to such Qualified 

Market Maker 

(b) Asset Manager Incentive Program 

The Asset Manager Incentive Program provides that Asset Manager Customers meeting 

objective criteria with respect to providing certain calendar spread volume to Contracts 

shall be entitled to benefits as defined in the program Asset Manager Incentive Program 

provides for the following:

(i) Asset Manager Customers may apply to the 

Asset Manager Incentive Program, with FMX specifying the 

conditions, obligations and maximum number of Participants; 

(ii) the benefits accruing to such Asset Manager 

Customers. 

[RESERVED-- CHAPTERS VII-IX] 
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General Rules of the Exchange 

© 2010-2023 FMX Futures Exchange, L.P. 

PART B GENERAL RULES OF THE EXCHANGE 

Scope: The rules in Part B shall apply to the Exchange and to trading on the Exchange generally. 

CHAPTER X 

GOVERNANCE OF THE EXCHANGE 

X-1 Defined Terms 

The following terms have the meanings specified herein with regard to the Exchange unless 

otherwise specifically provided in the Rules of the Exchange (as defined below) or the context 

otherwise requires. 

All defined terms listed in Part A – Chapter I – Definitions; Interpretation; Amendments – 

I-1 Defined Terms (Rule I-1) are hereby incorporated into this Part B of the Rules of the Exchange. 

X-2 Board of Directors 

(a) The business and affairs of the Exchange shall be managed by the Board of 

Directors in accordance with the CX Futures Exchange, L.P. Operating Agreement and Applicable 

Law. 

(b) The number of directors on the Board of Directors shall be seven, at least three of 

whom shall be Public Directors (or such other percentage of the Board of Directors as may be 

required by the CFTC Regulations, as amended from time to time, provided that the number of 

Public Directors shall at all times equal no less than 35% of the entire Board of Directors). Any 

vote made by the Board of Directors that results in a tie will require that the Board of Directors 

reconvene to reconsider the matter until such tie is broken. 

(c) The appointment of the members of the Board of Directors will be made by the 

General Partner. The sole member of the General Partner shall make such appointments on behalf 

of the General Partner. 

X-3 Standing Committees 

(a) Unless otherwise determined by the Board of Directors, the Board of Directors shall 

initially have one standing committee: the “Regulatory Oversight Committee”. In the event that 

the Board of Directors establishes an Executive Committee, the number of Public Directors on the 

committee shall constitute at least 35% of its members. 

(b) Except as otherwise specifically provided in these Rules, the members of standing 

committees shall be appointed by the chairperson of the Board of Directors, subject to approval by 

the Board of Directors, as promptly as possible after each annual meeting of the Exchange. Each 

appointee shall serve for one year or until the due appointment of his or her successor or his or her 
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resignation or removal, with or without cause, by a majority vote of the Board of Directors. Subject 

to approval by the Board of Directors, the chairperson of the Board of Directors shall designate 

the chairperson of each standing committee. 

(c) Each standing committee shall assist in the supervision, management and control 

of the affairs of the Exchange within its particular area of responsibility. 

(d) Subject to the authority of the Board of Directors, each standing committee shall 

determine the manner and form in which its proceedings shall be conducted and may act at a 

meeting or without a meeting, and through a quorum composed of a majority of all its members 

then in office, inclusive of ex officio members. Except as otherwise specifically provided in these 

Rules, the decision of a majority of those present at a meeting at which a quorum is present, or the 

decision of a majority of those participating when at least a quorum participates, shall be the 

decision of the standing committee. Any or all members of any standing committee may 

participate in any meeting thereof by telephone conference or similar communications equipment 

by means of which all members participating in such meeting can hear each other. 

(e) In the event of the absence or disqualification of any member of a standing 

committee from any meeting thereof, each of the following individuals, in the order of their 

availability, may appoint another qualified individual to act at the relevant meeting in the place of 

any such absent or disqualified member: (i) the chairperson of the Board of Directors, (ii) the 

President or (iii) the chairperson of the standing committee in question. 

X-4 Regulatory Oversight Committee 

The Regulatory Oversight Committee of the Board of Directors shall consist only of Public 

Directors, who shall be members of the Board of Directors, and shall be appointed from time to 

time by the chairperson of, and approved by, the Board of Directors. The Regulatory Oversight 

Committee shall oversee the Exchange’s regulatory program on behalf of the Board of Directors. 

It shall make such recommendations to the Board of Directors as will, in its judgment, best promote 

the interests of the Exchange, provided that, for the avoidance of doubt, any dissenting opinions 

from one or more members of the Regulatory Oversight Committee shall be reported to the Board 

of Directors along with any such recommendation. The Regulatory Oversight Committee shall 

also have such other powers and perform such other duties as the Board of Directors may delegate 

to it from time to time. 

The Board of Directors shall confirm one member of the Regulatory Oversight Committee 

as the committee’s chairperson. The Chairperson of the Regulatory Oversight Committee shall 

determine the agenda for the committee and shall cast the tie-breaking vote on any matter where 

the voting members of the committee are equally divided; provided, however, that if the 

Regulatory Oversight Committee has only two (2) members all decisions of the Regulatory 

Oversight Committee must be unanimous. 

Without limiting the generality of the foregoing, the Regulatory Oversight Committee shall 

have authority to: (a) monitor the Exchange’s regulatory program for sufficiency, effectiveness 

and independence, (b) oversee all facets of the Exchange’s regulatory program, including trade 
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practice and market surveillance; audits, examinations, and other regulatory responsibilities with 

respect to Participants (including ensuring compliance with financial integrity, financial reporting, 

sales practice, recordkeeping, and other requirements); and the conduct of investigations, 

(c) review the size and allocation of the regulatory budget and resources; and the number, hiring 

and termination, and compensation of regulatory personnel, (d) supervise the Exchange’s Chief 

Compliance Officer, who will report directly to the Regulatory Oversight Committee, (e) prepare 

an annual report assessing the Exchange’s self-regulatory program for the Board of Directors and 

the CFTC, which sets forth the regulatory program’s expenses, describes its staffing and structure, 

catalogues disciplinary actions taken during the year, and reviews the performance of disciplinary 

committees and panels, (f) recommend changes that would ensure fair, vigorous, and effective 

regulation, (g) review regulatory proposals and advise the Board of Directors as to whether and 

how such changes may impact regulation, and (h) exercise any other functions expressly assigned 

to it in these Rules. 

X-5 Additional Committees and Panels 

(a) The Board of Directors may create such additional standing committees of the 

Board of Directors as it may from time to time deem necessary or advisable. Members of such 

committees must be members of the Board of Directors, provided that the President may be a 

voting ex officio member of any such standing committee. 

(b) In addition to the standing committees, the Board of Directors may from time to 

time constitute and appoint, by Rule or resolution, special committees of the Board of Directors 

and designate their composition, responsibilities and powers. The provisions regarding standing 

committees in Rule X-3 shall apply mutatis mutandis to any such special committees. At least 

35% of the members of each special committee designated by the Board of Directors shall be 

Public Directors. 

(c) The Exchange may create additional committees of the Exchange, or panels, for 

such purposes as may from time to time be necessary or advisable. Members of each such 

committee may be members of the Board of Directors, Participants, Responsible Trading Agents 

or such other individuals as may be qualified to serve on such committee. At least 35% of the 

members of each such committee designated by the Board of Directors shall be Public Directors 

(or individuals that would qualify as Public Directors if they were directors of the Exchange). 

X-6 Eligibility 

(a) No Person may serve as an Officer of the Exchange, or a member of the Board of 

Directors, or any disciplinary committee, arbitration panel or oversight panel of the Exchange or 

as Chief Compliance Officer if such Person: 

(i) was found within the past three (3) years by a 

final decision of a self-regulatory organization, an 

administrative law judge, a court of competent jurisdiction or 

the CFTC to have committed a disciplinary offense; 
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(ii) entered into a settlement agreement within 

the past three (3) years in which any of the findings or, in 

absence of such findings, any of the acts charged included a 

disciplinary offense; 

(iii) is currently suspended from trading on any 

contract market, is suspended or expelled from membership 

from any self-regulatory organization, is serving any sentence 

of probation or owes any portion of a fine imposed pursuant to 

either: 

(A) a finding by a final decision of a self-regulatory 

organization, an administrative law judge, a court of competent jurisdiction 

or the CFTC that such person committed a disciplinary offense; or 

(B) a settlement agreement in which any of the findings or, in 

absence of such findings, any of the acts charged included a disciplinary 

offense; 

(iv) is currently subject to an agreement with the 

CFTC or any self-regulatory organization not to apply for 

registration with the CFTC or membership in any selfregulatory organization; 

(v) is currently subject to or has had imposed on 

him or her within the past three (3) years a CFTC registration 

revocation or suspension in any capacity for any reason, or has 

been convicted within the past three (3) years of any of the 

felonies listed in section 8a(2)(D)(ii) through (iv) of the CEA; 

or 

(vi) is currently subject to a denial, suspension or 

disqualification from serving on the disciplinary committee, 

arbitration panel or governing board of any self-regulatory 

organization as that term is defined in Section 3(a)(26) of the 

Securities Exchange Act of 1934. 

(b) To qualify as a Public Director, an individual must be found, by action of the Board 

of Directors, to have no relationship with the Exchange that reasonably could affect the 

independent judgment or decision making of the Director. In addition, a Director shall 

automatically be deemed to have such a relationship and shall not be considered a “Public 

Director” if any of the following circumstances exist: 

(i) within the last year, the individual or any 

member of his or her immediate family has been an officer or 

employee of the Exchange or any of its affiliates. Solely for 
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purposes of this Rule X-6, the term “affiliate” shall mean 

parents or subsidiaries of the Exchange or entities that share a 

common parent with the Exchange. For the avoidance of 

doubt, an individual may still qualify as a Public Director if 

such individual (x) has, within the last year, served as a 

director of an affiliate of the Exchange, but (y) otherwise 

meets the eligibility criteria under this Rule X-6(b). 

(ii) within the last year, the individual or any 

member of his or her immediate family has been a member of 

the Exchange, or a person employed by or affiliated with a 

member. Solely for purposes of this Rule X-6, the term 

“member” is defined according to Section 1a(24) of the CEA 

and Regulation 1.3(q) promulgated by the CFTC thereunder. 

Therefore, any Participant would be considered a “member” 

of the Exchange. In this context, a person is “affiliated” with 

a member if he or she is an officer or director of the member, 

or if he or she has any other relationship with the member such 

that his or her impartiality could be called into question in 

matters concerning the member. 

(iii) within the last year, the individual or any 

immediate family member of the individual, or a firm with 

which such individual or his or her immediate family member 

is affiliated, as described in Rule X-6(b)(ii) above, received 

more than $100,000 in combined annual payments from the 

Exchange or its affiliates, or from a member or any person or 

entity affiliated with a member of the Exchange, in each case 

for legal, accounting or consulting services. Compensation for 

services as a Director shall not count towards the $100,000 

payment limit, nor shall deferred compensation for services 

prior to becoming a Director, so long as such compensation is 

in no way contingent, conditioned or revocable. 

(c) Public Directors may also serve as directors of any parent company of the Exchange 

if the Public Directors otherwise meet the definition of “Public Director” in this Rule X-6. 

(d) For purposes of this Rule X-6, the terms “self-regulatory organization”, 

“disciplinary committee”, “arbitration panel”, “oversight panel”, “final decision”, “disciplinary 

offense”, and “settlement agreement” have the meanings set forth in CFTC Regulation 1.63(a). 

X-7 Power of the Board of Directors to Review Decisions 

The Board of Directors has the power and authority to call for review, and to affirm, 

modify, suspend or overrule, any and all decisions and actions of standing committees, special 
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committees of the Board of Directors formed pursuant to Rule X-5(b) and officers of the Exchange 

appointed pursuant to Rule X-8 (other than the Regulatory Oversight Committee). 

X-8 Officers 

The Board of Directors shall appoint a President, one or more Vice Presidents, a Secretary, 

a Treasurer and such other officers (each such person, an “Officer”) as it may deem necessary or 

appropriate from time to time, in each case for such term and on such other conditions as it sees 

fit. Any officer of the Exchange may also be a director, officer, partner or employee of the sole 

member of the General Partner or any of its affiliates. 

X-9 Restrictions on Certain Persons Who Possess Material, Non-Public 

Information 

(a) None of (i) any Officer of the Exchange, (ii) any member of the Board of Directors 

or any committee established by the Board of Directors or the Exchange (including but not limited 

to the Disciplinary Panel and the Appeals Panel), (iii) the Chief Compliance Officer or any other 

employee or agent of the Exchange shall use or disclose any material, non-public information 

obtained in connection with the performance of his or her official duties, for any purpose other 

than the performance of his or her official duties. 

(b) No Officer, employee or agent of the Exchange, and no member of the Board of 

Directors or any committee established by the Board of Directors of the Exchange, shall (i) trade 

in any Contract, or any underlying or related commodity interest, if such Person is in possession 

of material non-public information concerning such Contract or any underlying or related 

commodity interest or (ii) disclose to any other Person material, non-public information, however 

obtained (including, without limitation, material non-public information obtained by an employee 

or agent of the Exchange in connection with such employee or agent’s employment or agency, as 

the case may be), if such Person could reasonably expect that such information might assist another 

Person in trading any Contract or underlying or related commodity interest. 

(c) Any Officer, Director, Chief Compliance Officer or employee or agent of the 

Exchange who violates any provision of this Rule X-9 shall indemnify the Exchange for, and hold 

the Exchange harmless against, any losses, damages or costs that the Exchange may incur as a 

result of such violation. 

(d) Notwithstanding anything to the contrary in this Rule X-9, the applicable Contract 

Rules for each Contract traded on the Exchange may impose additional prohibitions on the use of 

or trading on material non-public information by any Person. 

(e) For purposes of this Rule X-9, the terms “material information,” “non-public 

information” and “commodity interest” shall have the meanings ascribed to them in CFTC 

Regulation 1.59 or in the applicable Contract Rules, as the case may be. 
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X-10 Conflicts of Interest 

(a) Definitions. For purposes of this Rule X-10, the following definitions shall apply: 

(i) The term “family relationship of a Person” 

shall mean such Person’s spouse, former spouse, parent, 

stepparent, child, stepchild, sibling, stepbrother, stepsister, 

grandparent, grandchild, uncle, aunt, nephew, niece or in-law. 

(ii) The term “Board” shall mean the Board of 

Directors, and any committee thereof duly authorized to take 

action or to recommend the taking of action on behalf of the 

Exchange. 

(iii) The term “member’s affiliated firm” shall 

mean a firm in which a member of the relevant deliberating 

body is an employee or a “principal”, as defined in CFTC 

Regulation 3.1(a). 

(iv) The term “named party in interest” shall 

mean a Person or entity that is identified by name as a subject 

of any matter being considered by the Board, a disciplinary 

committee or oversight panel. 

(v) The term “significant action” shall mean any 

of the following types of actions or Rule changes that are 

implemented without the CFTC’s prior approval: 

(A) Any actions or Rule changes which address an 

“Emergency”, as defined in Chapter I of these Rules; and 

(B) Any changes in margin levels that are designed to respond 

to extraordinary market conditions or otherwise likely to have a substantial 

effect on prices in any Contract. 

(b) Named Party in Interest Conflict. 

(i) Prohibition. No Officer of the Exchange, 

Chief Compliance Officer or member of the Board of 

Directors or any standing committee, “disciplinary 

committee” or “oversight panel” (both as defined in CFTC 

Regulation 1.69) shall knowingly participate in such body’s 

deliberations or voting in any matter involving a named party 

in interest where such member (A) is a named party in interest, 

(B) is an employer, employee or fellow employee of a named 

party in interest, (C) is associated with a named party in 
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interest through a broker association, (D) has a family 

relationship with a named party in interest or (E) has any other 

significant, ongoing business relationship with a named party 

in interest, excluding relationships limited to executing 

Contracts opposite each other. 

(ii) Recusal. Where the Chief Compliance 

Officer has or may have one of the relationships listed in 

paragraph (b)(i) of this Rule X-10 with a named party in 

interest, the Chief Compliance Officer shall recuse himself or 

herself from the matter giving rise to the conflict and the Board 

of Directors shall appoint an individual meeting all the 

requirements of a Chief Compliance Officer to serve as Chief 

Compliance Officer for the specific matter giving rise to the 

conflict. 

(iii) Disclosure. Prior to consideration of any 

matter involving a named party in interest, each member of the 

deliberating body (other than the Chief Compliance Officer 

whose recusal is required pursuant to clause (ii) above) shall 

disclose to the President, or his or her designee, whether such 

member has or may have one of the relationships listed in 

paragraph (b)(i) of this Rule X-10 with a named party in 

interest. 

(iv) Procedure and Determination. The 

President, or his or her designee, shall determine whether any 

member of the relevant deliberating body is subject to a 

conflicts restriction under this paragraph (b). Such 

determination shall be based upon a review of the following 

information: 

(A) information provided by such member pursuant to clause (ii) 

above; and 

(B) any other source of information that is held by or reasonably 

available to the Exchange. 

(c) Financial Interest in a Significant Action Conflict. 

(i) Prohibition. No Officer of the Exchange, 

Chief Compliance Officer or member of the Board of 

Directors or any standing committee, “disciplinary 

committee” or “oversight panel” (both as defined in CFTC 

Regulation 1.69) shall participate in such body’s deliberations 

and voting on any significant action if such member 
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knowingly has a direct and substantial financial interest in the 

result of the vote based upon either Exchange or nonExchange positions that could reasonably be expected to be 

affected by the significant action under consideration, as 

determined pursuant to this paragraph (c). 

(ii) Recusal. Where the Chief Compliance 

Officer has or may have a direct and substantial financial 

interest in the result of the vote on any significant action based 

upon either Exchange or non-Exchange positions that could 

reasonably be expected to be affected by the significant action 

under consideration, the Chief Compliance Officer shall 

recuse himself or herself from the matter giving rise to the 

conflict and the Board of Directors shall appoint an individual 

meeting all the requirements of a Chief Compliance Officer to 

serve as Chief Compliance Officer for the specific matter 

giving rise to the conflict. 

(iii) Disclosure. Prior to consideration of any 

significant action, each member of the deliberating body (other 

than the Chief Compliance Officer whose recusal is required 

pursuant to clause (ii) above) who does not choose to abstain 

from deliberations and voting shall disclose to the President, 

or his or her designee, position information known to such 

member with respect to any particular Contracts that are under 

consideration, and any other positions which the deliberating 

body reasonably expects could be affected by the significant 

action, as follows: 

(A) gross positions held at the Exchange in such member’s 

personal accounts or “controlled accounts”, as defined in CFTC 

Regulation 1.3(j); 

(B) gross positions held at the Exchange in accounts in which 

such member is a “principal”, as defined in CFTC Regulation 3.1(a); and 

(C) any other types of positions, whether maintained at the 

Exchange or elsewhere, held in such member’s personal accounts or the 

proprietary accounts of such member’s affiliated firm, that the Exchange 

reasonably expects could be affected by the significant action. 

(iv) Procedure and Determination. The 

President, or his or her designee, shall determine whether any 

member of the relevant deliberating body is subject to a 

conflicts restriction under this paragraph (c) based upon a 

review of the most recent large trader reports and clearing 
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records available to the Exchange, information provided by 

such member with respect to positions pursuant to clause (ii) 

above and any other source of information that is held by and 

reasonably available to the Exchange, taking into 

consideration the exigency of the significant action being 

contemplated. A member of a deliberating body shall be 

subject to the conflicts restriction in clause (i) above if the 

review by the President, or his or her designee, identifies a 

position in such member’s personal or controlled accounts or 

accounts in which such member is a principal as specified in 

subclauses (iii)(A), (B) and (C) above. 

(v) Deliberation Exemption. Any Officer of the 

Exchange, member of the Board, a “disciplinary committee” 

or “oversight panel” (both as defined in CFTC 

Regulation 1.69) who would otherwise be required to abstain 

from deliberations and voting pursuant to this paragraph (c) 

(excluding the Chief Compliance Officer) may participate in 

deliberations, but not voting, if the deliberating body, after 

considering the factors specified below, determines that such 

participation would be consistent with the public interest, 

provided, however, that before reaching any such 

determination, the deliberating body shall fully consider the 

position information specified in clause (ii) above which is the 

basis for such member’s substantial financial interest in the 

significant action that is being contemplated. In making its 

determination, the deliberating body shall consider: 

(A) whether such member’s participation in deliberations is 

necessary to achieve a quorum; and 

(B) whether such member has unique or special expertise, 

knowledge or experience in the matter being considered. 

(d) Documentation. The minutes of any meeting to which the conflicts determination 

procedures set forth in this Rule X-10 shall reflect the following information: 

(i) the names of all members of the relevant 

deliberating body who attended such meeting in person or who 

otherwise were present by electronic means; 

(ii) the name of any member of the relevant 

deliberating body who voluntarily recused himself or herself 

or was required to abstain from deliberations or voting on a 

matter and the reason for the recusal or abstention, if stated; 

and 
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(iii) information on the position information that 

was reviewed for each member of the relevant deliberating 

body. 

X-11 Regulatory Cooperation 

(a) The Exchange may from time to time enter into such agreements with domestic or 

foreign self-regulatory organizations, associations, boards of trade and their respective regulators 

providing for the exchange of information and other forms of mutual assistance for financial 

surveillance, routine audits, market surveillance, investigative, enforcement and other regulatory 

purposes as the Exchange may consider necessary or appropriate or as the CFTC may require. 

(b) The President, or his or her delegates, are authorized to provide information to an 

exchange or clearing organization that is a party to an information sharing agreement with the 

Exchange, in accordance with the terms and conditions of such agreement. 

(c) All information received by the Exchange with respect to any information sharing 

agreement, shall be held in confidence by the Exchange and shall not be provided to any of its 

nonregulatory departments or divisions or any other person (including to any affiliate of the 

Exchange), except as follows: 

(i) to the governmental authority(ies) 

responsible for regulating financial instruments in the home 

jurisdiction of the requesting information sharing agreement 

member, 

(ii) pursuant to an order of a court or other lawful 

process, or 

(iii) as it may be necessary for conducting any 

investigation or disciplinary proceeding. 

X-12 Regulatory Services Agreement with NFA 

The Exchange has contracted with NFA to provide certain regulatory services to the 

Exchange pursuant to a regulatory services agreement (the “Regulatory Services Agreement”). In 

accordance with the Regulatory Services Agreement, NFA may perform certain surveillance, 

investigative, and regulatory functions under the Rules of the Exchange and the Exchange may 

provide information to NFA in connection with the performance by NFA of those functions. 

Without limitation of the foregoing, any of the powers or functions of the Exchange under these 

Rules may be delegated to the NFA pursuant to the Regulatory Services Agreement in such manner 

and on such terms as the Exchange and the NFA may mutually agree. 
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X-13 Transaction Records 

All regulatory records as defined in CFTC Regulation 1.31 relating to transactions 

on the Exchange shall be maintained by the Exchange in accordance with the CFTC’s requirements 

for data creation and storage. Records shall be maintained for at least five years from the time the 

record was created or for such longer period required by CFTC regulations and shall be sufficient 

to provide a complete audit trail. Data for any swap transaction shall be maintained for at least five 

years after the date of termination, maturity, transfer, assignment or novation of the swap. 

CHAPTER XI 

General Trading Provisions 

XI-1 Contract Specifications 

Each Contract will meet such specifications, and all trading in such Contract will be subject 

to such procedures and requirements, as set forth in the rules governing such Contract. 

XI-2 Contract Modifications 

The specifications for, and the procedures and requirements for trading, any Contract may 

not be modified in any respect without the prior approval of the Exchange. 

XI-3 Position Accountability 

(a) Position Accountability 

(i) Position Accountability levels may be 

established by the Exchange, in its discretion, from time to 

time, for Contracts having a highly liquid and deep cash 

market. Such Position Accountability levels may be specific 

to a particular Contract, as set forth in the relevant Contract 

Rules, or delivery month or may be established on an 

aggregate basis among Contracts. 

(ii) The Compliance Department may, at any 

time, require a person who owns or controls positions in 

contracts traded on the Exchange or cleared by the applicable 

clearinghouse which exceed a Position Accountability level to 

which such person is subject to provide information relating to 

the nature and size of such person’s position; the trading 

strategy employed with respect to the position; as relevant, 

information supporting a determination of the hedging nature 

of the position; and such other information as the Compliance 

Department may request. 
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(iii) The Compliance Department may order the 

reduction of such position to the Position Accountability level 

of any person who fails to provide the information as directed. 

(iv) A person who holds or controls aggregate 

positions in excess of a specified Position Accountability level 

shall be deemed to have consented not to further increase the 

size of such person’s position, or to reduce any open position 

which exceeds the Position Accountability level as directed by 

the head of the Compliance Department, in his or her sole 

discretion. 

(v) For purposes of this section (b), all positions 

in accounts for which a person, by power of attorney or 

otherwise, directly or indirectly holds positions or controls 

trading shall be included with the positions held by such 

person. Positions held by two or more persons acting pursuant 

to an expressed or implied agreement or understanding shall 

be treated the same as if the positions were held by a single 

person. 

XI-4 Price Limits and Temporary Trading Halts 

(a) On each Trading Day, the amount by which the price of a Contract may increase or 

decrease is limited to an amount specified in the applicable Contract Rules, provided that, in each 

case, the Exchange shall have the authority under extraordinary market circumstances to set daily 

price limits at different levels if in the reasonable judgment of the Exchange such action is 

warranted for the protection of the market and Participants. 

(b) Price limits with respect to any Contract will be calculated as soon as practicable 

following the End of Trading each Trading Day based on the then-applicable Settlement Price. A 

Contract will not be allowed to trade beyond the price limit until after new price limits are 

established following the End of Trading on the next succeeding Trading Day. 

XI-5 Transfers of Positions 

(a) A Participant and its Responsible Trading Agents (and Direct Access Customers in 

the case of the FMX Division) may transfer positions between their Trading Accounts in order to: 

(i) correct errors in an existing Contract, 

provided that the original trade documentation confirms the 

error; 

(ii) transfer an existing Contract from one 

Trading Account to another of the same Participant where no 

change in ownership is involved; or 
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(iii) transfer an existing Contract through 

operation of law from death or bankruptcy. 

(b) The provisions of paragraph (a) of this Rule shall apply to any Trading Account 

maintained by a Participant with control over one or more Trading Accounts, whether or not such 

Trading Accounts are controlled by the same Responsible Trading Agents of such Participant. 

(c) Upon written request, the Exchange may, in its sole discretion, allow the transfer 

of a position as a result of a merger, asset purchase, consolidation, or similar non-recurring 

transaction for a Person that is an organization. 

(d) The Exchange will transfer positions pursuant to this Rule XI-5 at the same prices 

that appear on the books of the transferring Participant, and the transfer will indicate the date when 

the original trade was made. 

XI-6 EFP Transactions 

Reserved. 

XI-7 Block Trading 

Reserved. 

XI-8 EFS Transactions 

Reserved. 

XI-9 Emergencies 

(a) General. In the event of an Emergency, the President or any individual designated 

by the President may place into immediate effect a temporary emergency rule, which may remain 

in effect for up to thirty (30) Trading Days and which may provide for, or may authorize the Board 

of Directors or any committee thereof to undertake, actions necessary or appropriate to respond to 

the Emergency, including such actions as: 

(i) limiting trading to liquidation only, in whole 

or in part, 

(ii) changing the delivery month or extending or 

shortening the term of any Contract, 

(iii) changing delivery points or the means of 

delivery provided in any relevant Contract Rules, 

(iv) imposing or modifying position or price 

limits with respect to a particular Contract, 
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(v) ordering the liquidation of Contracts, the 

fixing of a Settlement Price or any reduction in positions, 

(vi) ordering the exercise of Options on Futures, 

(vii) extending, limiting or changing the hours of 

trading, 

(viii) suspending or curtailing trading in any or all 

Contracts or modifying circuit breakers, 

(ix) requiring Participants to meet special margin 

requirements in the Customer Accounts they carry, or 

(x) modifying or suspending any provision of the 

Rules of the Exchange or the Rules of LCH Limited. 

Any such action placed into effect in accordance with the preceding sentence shall be 

reviewed by the Board of Directors as soon as practicable under the circumstances and may be 

revoked, suspended or modified by the Board of Directors. 

(b) Physical Emergency. If, in the judgment of the President, or any individual 

designated by the President and approved by the Board of Directors, the physical functions of the 

Exchange are, or are threatened to be, severely and adversely affected by a physical emergency, 

such Person shall have authority to take such action as he or she may deem necessary or appropriate 

to respond to such physical emergency, including closing the Exchange, delaying the opening of 

trading in one or more Contracts or suspending trading in or extending trading hours for one or 

more Contracts. In the event that any action has been taken pursuant to the immediately preceding 

sentence, any Person who is authorized to take such action may order the removal of any restriction 

previously imposed pursuant to such sentence, upon a determination by such Person that the 

physical emergency that gave rise to such restriction has sufficiently abated to permit the physical 

functions of the Exchange to continue in an orderly manner. Any order by any Person pursuant to 

this sentence shall be subject to review, modification or reversal by the Board of Directors. In the 

event that trading is suspended in any or all Contracts, unexecuted Orders for the suspended 

Contracts that are currently resting in the Exchange Trading System will automatically be 

cancelled and must be resubmitted by the Participants upon resumption of trading in the affected 

Contracts. 

(c) Notification and Recording. The Exchange will notify the CFTC of any action 

taken, or proposed to be taken, pursuant to this Rule XI-9 in accordance with CFTC 

Regulation § 40.6. The decision-making process with respect to, and the reasons for, any such 

action will be recorded in writing. 

(d) Conflicts of Interest. The conflict-of-interest provisions set forth in Rule X-10 and 

the related documentation requirements set forth in Rule X-10 shall apply, with any such 
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modifications or adaptations as may be necessary or appropriate under the circumstances, to the 

taking of any action under this Rule XI-9 by the President, or his or her designee. 

XI-10 Daily Reports 

(a) The Exchange will post on its website the current volume, open interest, last 

Settlement Price and Price Limits for all active Contracts on each Trading Day. 

(b) The Exchange may publish additional reports from time to time in accordance with, 

and as specified in, the applicable Contract Rules. 

XI-11 Message Traffic Limits 

The President or his delegate may at any time restrict or establish utilization fees in respect 

of Message Traffic in order to safeguard the security or operations of the Exchange Trading 

System, or to preserve market integrity or fair and orderly trading, or if otherwise in the public 

interest. For the avoidance of doubt, this includes blocking all Message Traffic from an FMX 

Participant where such action is appropriate to safeguard the security of the Exchange of to 

preserve market integrity or fair and orderly trading. 

XI-12 Application of Rules and Jurisdiction Following Termination 

(a) By accessing, or entering any Order into, the Exchange Trading System, and 

without any need for any further action, undertaking or agreement, a Participant and its Direct 

Access Customers, as applicable, Customers and Responsible Trading Agents agree (i) to be bound 

by, and comply with, the Rules of the Exchange, the Rules of the CX Clearinghouse or the Rules 

of LCH Limited, as applicable, and Applicable Law, in each case to the extent applicable to it, and 

(ii) to become subject to the jurisdiction of the Exchange with respect to any and all matters arising 

from, related to, or in connection with, the status, actions or omissions of such Participant and its 

Direct Access Customers and Responsible Trading Agents. 

(b) Any CX Participant or FMX Participant, its Direct Access Customers and 

Responsible Trading Agents whose Trading Privileges are revoked or terminated and any 

Customers of such FMX Participant shall remain bound by the Rules of the Exchange, the Rules 

of the CX Clearinghouse, the Rules of LCH Limited, as applicable, and Applicable Law, in each 

case to the extent applicable to it, and subject to the jurisdiction of the Exchange with respect to 

any and all matters arising from, related to, or in connection with, the status, actions or omissions 

of such Participant, and its Direct Access Customer as applicable and its Responsible Trading 

Agent prior to such revocation or termination. 

XI-13 Recording of Communications 

The Exchange may record conversations and retain copies of electronic communications 

between officers, employees or agents of the Exchange, on one hand, and Participants, Direct 

Access Customers or Responsible Trading Agents, on the other hand. Any such recordings may 

be retained by the Exchange in such manner and for such periods of time as the Exchange may 
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deem necessary or appropriate but in no event less than the retention periods necessary to comply 

with CFTC Regulations1.31, 38.950 and, for swaps, 45.2(c). The NFA will have access to such 

recordings to the extent required to perform certain regulatory services to the Exchange pursuant 

to the Regulatory Services Agreement. 

XI-14 Notices 

The Exchange shall publish on its website a notice with respect to each addition to, 

modification of, or clarification of, the Rules of the Exchange or of any action to implement any 

Rules of the Exchange, in accordance with the requirements of the relevant sections of Part 40 of 

the CFTC’s Regulations and in a form and manner that is reasonably designed to enable each 

Participant, Direct Access Customer as applicable, and Responsible Trading Agents to become 

aware of and familiar with, and to implement any necessary preparatory measures to be taken by 

it with respect to, such addition or modification, prior to the effective date thereof. 

XI-15 Proprietary Nature of Market Data 

All Participants, Direct Access Customers, and Responsible Trading Agents: 

(a) acknowledge the Exchange’s proprietary interest in Market Data as well as all 

related trade data and settlement prices relating to all Contracts traded through the Exchange 

Trading System or subject to Exchange Rules; and 

(b) agree to comply with any reasonable policies that the Exchange publishes from time 

to time relating to the protection of such proprietary interest. 

XI-16 Limitation of Liability 

EXCEPT AS OTHERWISE PROVIDED IN THESE RULES, AND EXCEPT IN 

INSTANCES WHERE THERE HAS BEEN A FINDING OF WILLFUL OR WANTON 

MISCONDUCT, IN WHICH CASE THE PARTY FOUND TO HAVE ENGAGED IN SUCH 

CONDUCT CANNOT AVAIL ITSELF OF THE PROTECTIONS IN THIS RULE XI-16, 

NEITHER THE EXCHANGE (INCLUDING ITS AFFILIATES AND ANY CONTRACTORS 

AND SUB-CONTRACTORS PROVIDING SERVICES TO THE EXCHANGE) NOR ANY OF 

THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS SHALL BE 

LIABLE TO ANY OTHER PERSON, INCLUDING ANY PARTICIPANT OR PERSON 

ASSOCIATED WITH A PARTICIPANT (INCLUDING ANY DIRECT ACCESS CUSTOMER 

OR RESPONSIBLE TRADING AGENT), FOR ANY LOSSES, DAMAGES, COSTS OR 

EXPENSES (INCLUDING LOSS OF PROFITS, LOSS OF USE, DIRECT, INDIRECT, 

INCIDENTAL OR CONSEQUENTIAL DAMAGES), ARISING FROM (A) ANY FAILURE 

OR MALFUNCTION, INCLUDING ANY INABILITY TO ENTER OR CANCEL ORDERS, 

OF THE CX DIRECT SYSTEM OR ANY EXCHANGE SERVICES OR FACILITIES USED 

TO SUPPORT THE CX DIRECT SYSTEM, OR (B) ANY FAULT IN DELIVERY, DELAY, 

OMISSION, SUSPENSION, INACCURACY OR TERMINATION, OR ANY OTHER CAUSE, 

IN CONNECTION WITH THE FURNISHING, PERFORMANCE, MAINTENANCE, USE OF 

OR INABILITY TO USE ALL OR ANY PART OF THE EXCHANGE TRADING SYSTEM OR 
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ANY EXCHANGE SERVICES OR FACILITIES USED TO SUPPORT THE EXCHANGE 

TRADING SYSTEM. THE FOREGOING SHALL APPLY REGARDLESS OF WHETHER A 

CLAIM ARISES IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR 

OTHERWISE. FURTHERMORE, THERE SHALL BE NO LIABILITY BASED UPON, OR IN 

CONNECTION WITH, ANY QUOTE OR OTHER INFORMATION IF NO CORRELATIVE 

PURCHASE OR SALE OF A CONTRACT IS MADE, AND IF A CORRELATIVE PURCHASE 

OR SALE OF A CONTRACT IS MADE, ANY LIABILITY SHALL BE LIMITED IN AMOUNT 

TO THE AGGREGATE PRICE OF THE CONTRACTS PURCHASED OR SOLD. 

THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS 

PROVIDED BY THE EXCHANGE (INCLUDING ITS AFFILIATES AND ANY 

CONTRACTORS AND SUBCONTRACTORS PROVIDING SERVICES TO THE 

EXCHANGE), RELATING TO THE EXCHANGE TRADING SYSTEM OR ANY 

EXCHANGE SERVICES OR FACILITIES USED TO SUPPORT THE EXCHANGE TRADING 

SYSTEM, INCLUDING WARRANTIES OF MERCHANTABILITY AND WARRANTIES OF 

FITNESS FOR A PARTICULAR PURPOSE OR USE. THE SERVICES OF THE EXCHANGE 

ARE BEING PROVIDED ON AN “AS IS” BASIS AT THE SOLE RISK OF THE 

PARTICIPANT AND ANY PERSON ASSOCIATED WITH THE PARTICIPANT 

(INCLUDING ANY DIRECT ACCESS CUSTOMER OR RESPONSIBLE TRADING AGENT). 

NEITHER THE EXCHANGE (INCLUDING ITS AFFILIATES AND ANY CONTRACTORS 

AND SUBCONTRACTORS PROVIDING SERVICES TO THE EXCHANGE) NOR ANY OF 

THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS MAKE ANY 

WARRANTY WITH RESPECT TO, AND NO SUCH PARTY SHALL HAVE ANY LIABILITY 

TO ANY PARTICIPANT OR ANY PERSON ASSOCIATED WITH A PARTICIPANT 

(INCLUDING ANY DIRECT ACCESS CUSTOMER OR RESPONSIBLE TRADING AGENT) 

FOR, THE ACCURACY, TIMELINESS, COMPLETENESS, RELIABILITY, PERFORMANCE 

OR CONTINUED AVAILABILITY OF THE EXCHANGE TRADING SYSTEM OR THE 

EXCHANGE, DELAYS, OMISSIONS OR INTERRUPTIONS IN EXCHANGE SERVICES OR 

THE CREDITWORTHINESS OF ANY OTHER PARTICIPANT OR ANY PERSON 

ASSOCIATED WITH A PARTICIPANT (INCLUDING ANY DIRECT ACCESS CUSTOMER 

OR RESPONSIBLE TRADING AGENT). THE EXCHANGE SHALL HAVE NO DUTY OR 

OBLIGATION TO VERIFY ANY INFORMATION DISPLAYED ON THE EXCHANGE 

TRADING SYSTEM OR OTHERWISE. EACH PARTICIPANT AND EACH PERSON 

ASSOCIATED WITH A PARTICIPANT (INCLUDING ANY DIRECT ACCESS CUSTOMER 

OR RESPONSIBLE TRADING AGENT) ACKNOWLEDGES AND AGREES THAT THE 

EXCHANGE (INCLUDING ITS AFFILIATES AND ANY CONTRACTORS AND 

SUBCONTRACTORS PROVIDING SERVICES TO THE EXCHANGE) DOES NOT AND 

SHALL NOT SERVE AS THE PRIMARY BASIS FOR ANY DECISIONS MADE BY SUCH 

PARTICIPANT OR PERSON ASSOCIATED WITH A PARTICIPANT (INCLUDING ANY 

RESPONSIBLE TRADING AGENT), AS THE CASE MAY BE, AND IS NOT AN ADVISOR 

OR FIDUCIARY OF SUCH PARTICIPANT OR PERSON ASSOCIATED WITH A 

PARTICIPANT (INCLUDING ANY RESPONSIBLE TRADING AGENT), AS THE CASE 

MAY BE. 
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EXCEPT AS OTHERWISE PROVIDED IN THESE RULES, ANY LIABILITY OF THE 

EXCHANGE (OTHER THAN LIABILITY THAT IS EXCLUDED PURSUANT TO THE 

PRECEDING TWO PARAGRAPHS OF THIS RULE XI-16) WILL BE LIMITED TO DIRECT, 

OUT-OF-POCKET LOSSES DIRECTLY CAUSED BY THE ACTS OR OMISSIONS OF THE 

EXCHANGE OR ITS DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS; PROVIDED 

THAT THE TOTAL COMBINED AGGREGATE LIABILITY OF THE EXCHANGE AND ITS 

DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS TO ANY ONE PARTICIPANT WITH 

RESPECT TO CX AND CONTRACTS SHALL NOT, (TAKEN TOGETHER WITH ANY 

LIABILITY OF THE CX CLEARINGHOUSE WITH RESPECT TO CX CONTRACTS TO 

SUCH PARTICIPANT RESULTING FROM THE ACTS OR OMISSIONS OF THE CX 

CLEARINGHOUSE OR ITS DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS) 

EXCEED $25,000 FOR ALL LOSSES FROM ALL CAUSES SUFFERED ON A SINGLE 

CALENDAR DAY; $50,000 FOR ALL LOSSES SUFFERED FROM ALL CAUSES IN A 

SINGLE CALENDAR MONTH; AND $500,000 FOR ALL LOSSES SUFFERED FROM ALL 

CAUSES IN A SINGLE CALENDAR YEAR. 

ANY DISPUTE ARISING OUT OF THE USE OF THE EXCHANGE TRADING 

SYSTEM OR EXCHANGE SERVICES OR FACILITIES USED TO SUPPORT THE 

EXCHANGE TRADING SYSTEM IN WHICH THE EXCHANGE (INCLUDING ITS 

AFFILIATES AND ANY CONTRACTORS AND SUBCONTRACTORS PROVIDING 

SERVICES TO THE EXCHANGE) OR ANY OF THEIR RESPECTIVE DIRECTORS, 

OFFICERS, EMPLOYEES OR AGENTS IS A PARTY SHALL BE CONSTRUED AND 

ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. ANY 

ACTIONS, SUITS OR PROCEEDINGS AGAINST ANY OF THE FOREGOING MUST BE 

BROUGHT WITHIN TWO YEARS FROM THE TIME THEY FIRST ARISE, AND ANY 

SUCH ACTION, SUIT OR PROCEEDING MAY BE BROUGHT IN ANY FEDERAL OR 

STATE COURTS LOCATED IN THE BOROUGH OF MANHATTAN, THE CITY OF NEW 

YORK. THIS PROVISION SHALL IN NO WAY CREATE A CAUSE OF ACTION AND 

SHALL NOT AUTHORIZE ANY ACTION THAT WOULD OTHERWISE BE PROHIBITED 

BY RULES OF THE EXCHANGE. 

ANY PARTICIPANT OR PERSON ASSOCIATED WITH A PARTICIPANT 

(INCLUDING ANY DIRECT ACCESS CUSTOMER OR RESPONSIBLE TRADING AGENT) 

WHO FAILS TO PREVAIL IN A LAWSUIT OR OTHER LEGAL PROCEEDING 

INSTITUTED BY SUCH PERSON AGAINST THE EXCHANGE (INCLUDING ITS 

AFFILIATES) OR ANY OF ITS DIRECTORS, COMMITTEE MEMBERS, OFFICERS, 

EMPLOYEES, AGENTS OR CONTRACTORS, AND RELATED TO THE BUSINESS OF THE 

EXCHANGE, WILL PAY TO THE EXCHANGE ALL REASONABLE EXPENSES, 

INCLUDING ATTORNEYS’ FEES, INCURRED BY THE EXCHANGE IN THE DEFENSE OF 

SUCH PROCEEDING TO THE EXTENT THAT SUCH EXPENSES EXCEED FIFTY 

THOUSAND DOLLARS ($50,000.00). THIS PROVISION WILL NOT APPLY TO 

DISCIPLINARY ACTIONS BY THE EXCHANGE, ADMINISTRATIVE APPEALS OF 

EXCHANGE ACTIONS OR IN ANY SPECIFIC INSTANCE WHERE THE BOARD OF 

DIRECTORS HAS GRANTED A WAIVER OF THIS PROVISION.
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NOTWITHSTANDING ANY OF THE FOREGOING PROVISIONS, THIS RULE XI-16 

SHALL IN NO WAY LIMIT THE LIABILITY OF ANY PERSON ARISING FROM ANY 

VIOLATION OF SUCH PERSON OF THE CEA OR CFTC REGULATIONS THEREUNDER. 

CHAPTER XII 

OBLIGATIONS OF PARTICIPANTS 

XII-1 Books and Records; Cooperation in Proceedings 

(a) Each Participant that is registered with any self-regulatory association shall prepare 

and keep current all books, ledgers and other similar records required to be kept by it pursuant to 

the CEA, CFTC Regulations and the Rules of the Exchange, and shall prepare and keep current 

such other books and records and adopt such forms as the Exchange may from time to time 

prescribe. Such books and records shall be made available to the Exchange and its authorized 

representatives, including but not limited to the NFA as authorized under the Regulatory Services 

Agreement, the CFTC, the Department of Justice and their respective authorized representatives 

upon request. 

(b) Each Participant that is registered with any self-regulatory association shall keep 

all books and records required to be kept by it pursuant to these Rules for a period of five (5) years 

from the date on which they are first prepared, unless otherwise provided in these Rules or required 

by law. Such books and records shall be readily accessible during the first two (2) years of such 

five-year period. During such five-year period, all such books and records shall be made available 

for inspection by, and copies thereof shall be delivered to, the Exchange and its authorized 

representatives, including but not limited to the NFA as authorized under the Regulatory Services 

Agreement, upon request. 

(c) Each Participant that is not registered with the CFTC or any self-regulatory 

organization shall prepare and keep current all books, ledgers and other similar records in a form 

and substance as the Exchange may from time to time prescribe. Such books and records shall be 

made available to the Exchange, the CFTC, the Department of Justice and their respective 

authorized representatives upon request. 

XII-2 Minimum Financial Reporting Requirements and Reports 

Each Participant that is registered with any self-regulatory association shall comply with 

the provisions of Applicable Law relating to minimum financial and related reporting and 

recordkeeping requirements. A copy of any notice or written report that a Participant is required 

to file with the CFTC pursuant to CFTC Regulation 1.12 shall be concurrently provided to the 

Exchange. A Participant that violates any of the aforementioned CFTC Regulations shall be 

deemed to have violated this Rule XII-2. 

XII-3 Authority of the President to Impose Restrictions 

Whenever a Participant or Direct Access Customer is subject to the early warning 

requirements set forth in CFTC Regulation 1.12, the President or his or her designee may impose 
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such conditions or restrictions on the business and operations of such Participant or Direct Access 

Customer as the President or his or her designee may deem necessary or appropriate for the 

protection of other Participants or the Exchange. 

XII-4 Minimum Financial Requirements 

(a) Each CX Participant shall be required to satisfy such minimum financial 

requirements as may be established from time to time by the Exchange or the CX Clearinghouse; 

each FMX Participant shall be required to satisfy such minimum financial requirements as may be 

established from time to time by the Exchange or LCH Limited. 

(b) Each Participant must notify the President or his or her designee immediately upon 

becoming aware that it fails to satisfy the minimum financial requirements applicable to it. 

(c) Unless and until a Participant is able to demonstrate to the Board of Directors that 

it is in compliance with the minimum financial requirements applicable to it, such Participant may 

not engage in any transactions subject to the Rules of the Exchange, except for the purpose of 

closing open positions. 

XII-5 Trade Confirmations 

(a) The Exchange shall furnish, or cause to be furnished, to each Participant that enters 

into a trade, no later than 12:00 Noon on the Trading Day immediately following the day on which 

such trade is entered into, an e-mail or downloadable confirmation of such trade in such form as 

the Exchange may from time to time prescribe, indicating the Contract bought or sold, the price, 

quantity, time of execution and such other information as the Exchange may require. In the case 

of an Option on Futures trade, such confirmation shall also indicate: (i) the amount of the premium 

and all other commissions, costs and fees, separately listed; (ii) the Option on Futures series; and 

(iii) the expiration date of the Option on Futures. 

(b) Promptly upon the expiration or exercise of any Option on Futures, the Exchange 

must furnish to each Participant holding such Option on Futures an e-mail confirmation statement, 

which shall include the date of such occurrence, a description of such Option on Futures, and in 

the case of exercise, the details of the Future position resulting therefrom. 

(c) Notwithstanding paragraphs (a) and (b) above, a trade that is executed for a 

commodity pool needs to be confirmed only to the operator of such pool. 

XII-6 Account Statements 

The Exchange shall furnish or cause to be furnished to each CX Participant as soon as 

practicable after the end of each month, a monthly statement of account via e-mail. Each such 

statement shall indicate, at a minimum, the CX Participant’s initial balance, closing balance, 

commissions and fees incurred, income received and trades made. 
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XII-7 Risk Disclosure Statement 

(a) A risk disclosure statement in the form approved by the Exchange for purposes of 

CFTC Regulation 1.55 and any other disclosure statement from time to time required by the 

Exchange is included in the application form to become a CX Participant and shall be completed 

by the CX Participants where required under CFTC Regulations. 

(b) All Customers and Direct Access Customers of FMX Participants shall have been 

provided a risk disclosure statement in the form approved by the Exchange for purposes of CFTC 

Regulation 1.55 as well as any other disclosure statement required by the Exchange before they 

may be permitted to enter into transactions on the Exchange. 

XII-8 Fraudulent or Misleading Communications 

No Participant shall make, or attempt to make, any fraudulent or misleading 

communications relating to the purchase or sale of any Contract. 

XII-9 System Security 

(a) Each Participant that is an Entity shall at all times have an Administrator. Each 

Participant that is a natural person shall serve as its own Administrator. The Exchange may 

prescribe such qualification standards for Administrators as it may from time to time determine 

necessary or advisable. Among other things, each Administrator shall (i) have full control over 

access to the Exchange Trading System by the Participant (including its Responsible Trading 

Agents) represented by such Administrator and (ii) be able to access, and, if required, modify and 

withdraw, any and all Orders placed, or purported to be placed, by the Responsible Trading Agents 

of such Participant. The Administrator or Administrators of any Participant shall also be solely 

responsible for any and all communications between the Exchange and such Participant, and any 

and all notices or other communications sent to such Administrator or Administrators by the 

Exchange shall be binding on such Participant. Each Participant shall notify the Exchange 

promptly of any change regarding any of its Administrators. 

(b) Each Participant shall (i) be solely responsible for controlling and monitoring the 

use of all user identification codes and passwords to access the Exchange Trading System 

(collectively, “Passwords”) issued to its Responsible Trading Agents and Administrators by the 

Exchange, (ii) provide such Passwords only to its Responsible Trading Agents and Administrators, 

and (iii) shall notify the Exchange promptly upon becoming aware of any unauthorized disclosure 

or use of the Passwords or access to the Exchange or of any other reason for deactivating 

Passwords. Each Participant, on behalf of itself and its Responsible Trading Agents, shall be 

bound by any actions taken through the use of its Passwords (other than any such actions resulting 

from the fault or negligence of the Exchange), including the execution of transactions, whether or 

not such actions were authorized by such Participant or executed by anyone other than an 

Responsible Trading Agent of such Participant. 

(c) Notwithstanding anything to the contrary in Rule XII-9(b), each Direct Access 

Customer and Responsible Trading Agent shall have his or her own unique Passwords that may 
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be used only by such Responsible Trading Agent and solely for the purpose of submitting Orders 

in respect of the Trading Account for which the Direct Access Customer or Responsible Trading 

Agent has Trading Privileges. 

XII-10 Communications between the Exchange and Participants 

(a) Each Participant and Direct Access Customer shall 

(i) identify in writing to the Exchange one or 

more Designated Contacts as the Exchange may determine, 

and 

(ii) ensure that at least one of its Designated 

Contacts is available by telephone at all times when any person 

to whom it has given permission is accessing the Exchange 

Trading System or has an open Order. 

(b) Each Participant and Direct Access Customer must provide the Exchange with the 

current electronic mail address for each of its Responsible Trading Agents, its Administrator and 

immediately (and in any event within 24 hours) update each such address whenever it changes. 

All communications between the Exchange and the Participant (and its Direct Access Customers, 

Responsible Trading Agents and/or Administrator) will be transmitted by electronic mail and/or 

posted on the Exchange website. Each Participant will be responsible for promptly reviewing and, 

if necessary, responding to all electronic communications from the Exchange. The NFA will have 

access to such communications to the extent required to perform certain regulatory services to the 

Exchange pursuant to the Regulatory Services Agreement. 

XII-11 Fees and Payments 

(a) The Board of Directors shall have the sole authority to set the times and amounts 

of any fees to be paid by Participants or any incentive payments to be paid to a Participant in any 

incentive program. All such fees or payments shall be paid when due. 

(b) Participants receiving equal access to, or services from, the Exchange shall be 

provided comparable fee structures. 

(c) If a Participant fails to pay when due any Exchange fees or other amounts due, and 

such payment obligation remains unsatisfied for thirty (30) Business Days after its due date, the 

Exchange as it deems necessary or appropriate may suspend, revoke, limit, condition, restrict or 

qualify the Trading Privileges of such Participant and its Responsible Trading Agents and Direct 

Access Customers as applicable. For the avoidance of doubt, the Exchange may also suspend, 

revoke, limit, condition, restrict or qualify the Trading Privileges of any Participant and its 

Responsible Trading Agents or Direct Access Customers as applicable that has had its FMX or 

CX Privileges suspended, revoked, limited, conditioned, restricted or qualified under this Rule 

XII-11(c). 
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XII-12 Incentive Programs 

The Exchange may from time to time adopt one or more programs under which one or 

more Participants, Responsible Trading Agents, Direct Access Customers or Customers, 

including those Persons who are designated by the Exchange as Market Takers or Qualified Market 

Makers may be designated as program participants with respect to one or more Contracts, and may 

be granted certain benefits, which may include fee reductions, compensatory payments or other 

benefits, in return for participating in the program and/or assuming obligations in order to provide 

liquidity and orderliness in the market or markets for such Contract or Contracts Any such 

program may provide for any or all of the following: 

(a) qualifications, including any minimum net capital requirements, that any such 

program participant must satisfy, 

(b) the procedure by which Participants, Responsible Trading Agents, Direct Access 

Customers, or Customers may seek and receive designation as a participant in such incentive 

programs, 

(c) the obligations of such incentive program participant, including any applicable 

minimum bid and offer commitments, 

(d) the benefits accruing to such incentive program participant, including priority in 

the execution of transactions effected by Participants, Responsible Trading Agents or Direct 

Access Customers in their capacity as an incentive program participant, Market Taker or Qualified 

Market Maker, 

(e) the criteria and procedures under which Participants, Direct Access Customers or 

Customers shall qualify as being a Market Taker or Qualified Market Maker, including applicable 

trading patterns that such Person must satisfy, and 

(f) the benefits accruing to such Market Takers or Qualified Market Makers, including 

priority in the execution of transactions effected by Participants, Direct Access Customers, or 

Customers in their capacities as Market Takers or Qualified Market Makers, reduced transaction 

fees or the receipt of compensatory payments from the Exchange. 

XII-13Exchange Trading System Requirements 

Participants with access to the Exchange Trading System or any other electronic trading 

facility of the Exchange, including but not limited to any application programming interface(s), 

software development library(ies), or internet-based connection(s) used to transmit electronic 

trading information, shall: 

(a) prevent any such electronic trading system or other application connecting to the 

Exchange from causing a market disruption, 
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(b) comply at all times with any system certification requirements as required by the 

Exchange from time to time, 

(c) monitor and detect any abnormalities in such systems and promptly notify the 

Exchange of such abnormalities, and 

(d) disconnect such system from the Exchange upon discovering any anomaly in the 

behavior of such system or if so directed by the Exchange. 

XII-14 Measures to Avoid Self-Matching 

Participants with access to the Exchange Trading System must take reasonable steps to 

prevent the matching of orders for the same account and for accounts with common ownership, 

within and across Clearing Members including installing self-match prevention software on their 

trading devices and implementing, as appropriate, any self-match prevention software provided by 

the Exchange for use in the Exchange Trading System.

CHAPTER XIII 

BUSINESS CONDUCT 

XIII-1 Rule Violations 

It shall be an offense for any Person to violate any Rule of the Exchange or Rule of the 

respective clearinghouse regulating the conduct or business of a Participant, or any agreement 

made with the Exchange, or to engage in fraud, dishonorable or dishonest conduct, or in conduct 

which is inconsistent with just and equitable principles of trade. 

XIII-2 Fraudulent Acts 

(a) No Participant, Direct Access Customer or Responsible Trading Agent shall 

engage, or attempt to engage, in any fraudulent act or engage, or attempt to engage, in any scheme 

to defraud, deceive or trick in connection with or related to any trade on or other activity related 

to the Exchange or the applicable clearinghouse. 

(b) Notwithstanding anything to the contrary in these Rules, neither the prohibitions on 

trading described in Rule XIII-12 nor any other provisions of these Rules will supersede any 

applicable prohibitions on fraud and manipulation, whether such prohibitions are prescribed by 

law, regulation or the Rules of the Exchange or the Rules of the respective Clearinghouse. All 

such prohibitions on fraud and manipulation, including, but not limited to, the antifraud provisions 

of the CEA and the antifraud rules promulgated by the CFTC thereunder, will remain in full force 

and effect with respect to, and will be fully applicable to, the trading of all Contracts. The 

Exchange and the respective clearinghouse each retain the right to take any appropriate 

disciplinary actions against Participants as permitted by the Rules of the Exchange or the Rules of 

the respective clearinghouse, as applicable. 
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XIII-3 Fictitious Transactions 

No Participant, Direct Access Customer, or Responsible Trading Agent shall create 

fictitious transactions or execute any such Order with knowledge of its nature. 

XIII-4 Market Demoralization 

Orders entered into the Exchange Trading System for the purpose of upsetting the 

equilibrium of the market in any Contract or creating a condition in which prices do not or will not 

reflect fair market values are prohibited, and any Participant, Direct Access Customer, or 

Responsible Trading Agent who enters or assists in entering any such Order with knowledge of 

the purpose thereof or who, with such knowledge, in any way assists in carrying out any plan or 

scheme for the entering of any such Order, will be deemed to have engaged in an act detrimental 

to the Exchange. 

XIII-5 Price Manipulation 

Any manipulation of the market in any Contract is prohibited. It shall be a violation of this 

Rule for any person to manipulate or attempt to manipulate the price of any Contract traded on or 

subject to the rules of the Exchange. 

XIII-6 Prohibition of Misstatements 

It shall be an offense to make any misstatement of a material fact to the Exchange 

(including the Board of Directors, any committee thereof or any panel of any such committee, any 

Exchange Official or any committee of the Exchange) or to the NFA (including any members of 

its staff) or to engage in any other conduct that violates CFTC Regulation 180.1. 

XIII-7 Adherence to Law 

No Participant, Responsible Trading Agent, Direct Access Customer, or, if applicable, any 

other personnel of the Participant shall engage in conduct in violation of Applicable Law, the Rules 

of the Exchange or the Rules of the applicable clearinghouse (insofar as the Rules of the applicable 

clearinghouse relate to the reporting or clearance of any transaction on the CX Division or the 

FMX Division, respectively). 

XIII-8 Use of Trading Privileges 

No Participant, Direct Access Customer, or Responsible Trading Agent may use its 

Trading Privileges or access the Exchange in any way which could be expected to bring disrepute 

upon such Participant or the Exchange. 

XIII-9 Supervision 

Each Participant shall be responsible for establishing, maintaining, and administering 

reasonable supervisory procedures to ensure that it complies with Applicable Law, the Rules of 
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the Exchange, and the Rules of CX Clearinghouse or LCH Limited, as applicable, shall be 

responsible for supervising its personnel and may be held accountable for the actions of such 

Persons. 

XIII-10 Disclosing Orders 

Except in accordance with any policies or procedures for pre-execution discussion from 

time to time adopted by the Exchange, no Participant shall disclose to any Person any Order placed 

by any other Person, except to an Exchange Official or a member of the staff of the CFTC, the 

NFA, or the Department of Justice, respectively. 

XIII-11 Reserved. 

XIII-12 Disruptive Practices 

It shall be a violation of this Rule for any Person to enter an Order into the Trading System 

with the intention to cancel such bid or offer before it is executed or to engage in any trading, 

practice, or conduct on or subject to the rules of the Exchange that: 

(a) violates bids or offers; 

(b) demonstrates intentional or reckless disregard for orderly execution of transactions 

during the closing period; or 

(c) is, is of the character of, or is commonly known to the trade as, “spoofing” or 

“layering.” 

XIII-13 Front Running 

It shall be a violation of this Rule for any person to engage in the practice of trading ahead 

of another person, including a Customer, by taking a futures or option position based upon 

nonpublic information regarding an impending transaction by another person in the same or related 

Contract or a related Futures Contract on another designated contract market. 

XIII-14 Wash Trading; Accommodation Trading, Money Passes 

It shall be a violation of this Rule for any person to engage in a transaction that is of the 

character of, or is commonly known to the trade as, a “wash trade,” Entering buy and sell orders 

for different accounts with common beneficial ownership with the intent to negate market risk or 

price competition shall also be deemed to violate the prohibition on wash trades. Execution as well 

as accommodation of such orders by direct or indirect means shall also be a violation of this Rule. 

It shall also be a violation of this Rule for any person to engage in a transaction that is of 

the character of, or is commonly known to the trade as, an “accommodation trade.” Noncompetitive trading entered into by a Participant, usually to assist another Participant with illegal 

trades, shall also be deemed to violate the prohibition on accommodation trades. 
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It shall also be a violation of this Rule for any person to engage in a transaction that is of 

the character of, or is commonly known to the trade as, a “money pass.” Non-competitive trading 

between authorized traders where a profit is passed from one Participant to the other Participant 

shall also be deemed to violate the prohibition on accommodation trades. 

XIII-15 Cross Trades 

It shall be a violation of this Rule for any person to enter through the Exchange Trading 

System a Cross Trade or any other trade against the person’s Customer’s order except in the case 

of transactions effected pursuant to Rule III-6. 

CHAPTER XIV 

DISCIPLINE AND ENFORCEMENT 

XIV-1 General 

(a) All Participants, Direct Access Customers, Customers and Responsible Trading 

Agents shall be subject to the Exchange’s jurisdiction. This includes any Person initiating or 

executing a transaction on or subject to the Rules of the Exchange directly or through an 

intermediary, and any Person for whose benefit such a transaction has been initiated or executed. 

All Participants, Direct Access Customers, Customers and Responsible Trading Agents are subject 

to this Chapter XIV if they are alleged to have violated, to have aided and abetted a violation, to 

be violating, or to be about to violate, any Rule of the Exchange or any provision of Applicable 

Law for which the Exchange possesses disciplinary jurisdiction. 

(b) The Exchange will conduct inquiries, investigations, disciplinary proceedings and 

appeals from disciplinary proceedings, summary impositions of fines, summary suspensions or 

other summary actions in accordance with this Chapter XIV. 

(c) The Exchange may delegate any or all of its powers or responsibilities under this 

Chapter XIV to the NFA (acting in its compliance role, the “Compliance Department”) and the 

Disciplinary Panel, which may take any actions on behalf of the Exchange that the Exchange is 

permitted to take hereunder. In the event of any such delegation, references to the Exchange in 

this Chapter XIV shall be construed to be references to the Compliance Department or the 

Disciplinary Panel, as the case may be. 

(d) No member of the staff of the Exchange will interfere with or attempt to influence 

the process or resolution of any inquiry, investigation, disciplinary proceeding, appeal from a 

disciplinary proceeding, summary imposition of fines, summary suspension or other summary 

action. No member of the Board of Directors will interfere with or attempt to influence the process 

or resolution of any inquiry, investigation, disciplinary proceeding, appeal from a disciplinary 

proceeding, summary, imposition of fines, summary suspension or other summary action with 

respect to which the member of the Board of Directors is not a member of the relevant Appeals 

Panel. 
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(e) Any Participant, Direct Access Customer or Responsible Trading Agent may be 

represented by counsel during any inquiry, investigation, disciplinary proceeding, appeal from a 

disciplinary proceeding, summary imposition of fines, summary suspension or other summary 

actions pursuant to this Chapter XIV. 

(f) Pursuant to this Chapter XIV, the Exchange may hold: 

(i) a Participant liable for, and impose sanctions 

against such Participant for, such Participant’s own acts and 

omissions that constitute a violation; 

(ii) a Participant liable for, and impose sanctions 

against such Participant for, the acts and omissions of each 

Direct Access Customer or Responsible Trading Agent 

authorized by, and each other agent or representative of, such 

Participant that constitute a violation as if such violation were 

that of the Participant; 

(iii) a Direct Access Customer liable for, and 

impose sanctions against him or her for, such Direct Access 

Customer’s own acts and omissions that constitute a violation 

or of any of the Direct Access Customer’s Responsible 

Trading Agents; and impose sanctions against him or her, for 

the acts and omissions of each agent or representative of such 

Responsible Trading Agents that constitute a violation as if 

such violation were that of the Direct Access Customer. 

(iv) a Responsible Trading Agent liable for, and 

impose sanctions against him or her for, such Responsible 

Trading Agent’s own acts and omissions that constitute a 

violation; and 

(v) a Responsible Trading Agent liable for, and 

impose sanctions against him or her for, the acts and omissions 

of each agent or representative of such Responsible Trading 

Agent that constitute a violation as if such violation were that 

of the Responsible Trading Agent. 

(g) Pursuant to this Chapter XIV, the Exchange may in its sole discretion, and subject 

to the conditions specified in Rule XIV-16(g), review an appeal by any applicant of the Exchange’s 

decision to deny or otherwise limit Trading Privileges of such applicant pursuant to the Rules of 

the Exchange; provided, however, that any such decision by the Exchange to deny or otherwise 

limit applicant’s Trading Privileges shall continue in effect during such review. 
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XIV-2 Inquiries and Investigations 

(a) The Compliance Department will, in conjunction with NFA, investigate any matter 

within the Exchange’s disciplinary jurisdiction that it or the Control Desk discovers or that is 

brought to the Compliance Department’s attention, including but not limited to, possible violations 

of the Rules of the Exchange or manipulation of a Contract that is traded on the Exchange. All 

such investigations must be completed in a timely manner, as determined in the reasonable 

judgment of the Exchange. The Compliance Department will determine the nature and scope of 

its inquiries and investigations within its sole discretion and will function independently of any 

commercial interests of the Exchange. 

(b) The Compliance Department has the authority to: 

(i) initiate and conduct inquiries and 

investigations; 

(ii) prepare investigative reports and make 

recommendations concerning initiating disciplinary 

proceedings; 

(iii) prosecute alleged violations within the 

Exchange’s disciplinary jurisdiction; and 

(iv) represent the Exchange on appeal from any 

disciplinary proceeding, summary imposition of fines, 

summary suspension or other summary action. 

(c) Each Participant, Direct Access Customer or Responsible Trading Agent: 

(i) is obligated to appear and testify and respond 

in writing to interrogatories within the time period required by 

the Compliance Department in connection with: (A) any 

Rule of the Exchange; (B) any inquiry or investigation; or 

(C) any preparation by and presentation during a disciplinary 

proceeding or appeal from a decision in a disciplinary 

proceeding, summary imposition of fines, summary 

suspension or other summary action by the Exchange; 

(ii) is obligated to produce books, records, 

papers, documents or other tangible evidence, including any 

oral and written pre-trade communications, as described by 

CFTC Rule 1.35(a)(1)(iii), in its, his or her possession, custody 

or control within the time period required by the Compliance 

Department in connection with: (A) any Rule of the 

Exchange; (B) any inquiry or investigation; or (C) any 

preparation by and presentation during a disciplinary 
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proceeding or appeal from a decision in any disciplinary 

proceeding, summary imposition of fines, summary 

suspension or other summary action by the Exchange; and 

(iii) may not impede or delay any inquiry, 

investigation, disciplinary proceeding, appeal from a 

disciplinary proceeding, summary imposition of fines, 

summary suspension or other summary action. 

XIV-3 Reports of Investigations 

(a) The Compliance Department will maintain a log of all investigations and their 

dispositions. The Compliance Department will prepare a written report of each investigation, 

regardless of whether the evidence gathered during any inquiry or investigation forms a reasonable 

basis to believe that a violation within the Exchange’s jurisdiction has occurred or is about to occur 

or whether the evidence gathered results in closing the matter without further action or through 

summary action. 

(b) Any written report of investigation will include the reasons for initiating the 

investigation (including a summary of the complaint, if any), all relevant facts and evidence 

gathered, and the recommendation of the Compliance Department. For each potential respondent, 

the Compliance Department will recommend either (i) closing the investigation without further 

action, (ii) summary action, (iii) resolving the investigation through an informal disposition, 

including the issuance of a warning letter or (iv) initiating disciplinary proceedings. An informal 

disposition (including the issuance of a warning letter) will not constitute a finding of a violation 

or a sanction. 

XIV-4 Review of Investigative Reports 

(a) The Chief Compliance Officer will review promptly each completed investigation 

report to determine whether a reasonable basis exists to believe that a violation within the 

Exchange’s jurisdiction has occurred or is about to occur. Such determination will be made by the 

Chief Compliance Officer within ten (10) Business Days of receipt of the applicable investigation 

report. 

(b) If the Chief Compliance Officer determines that additional investigation or 

evidence is needed to decide whether a reasonable basis exists to believe that a violation within 

the Exchange’s jurisdiction has occurred or is about to occur, the Chief Compliance Officer will 

direct the Compliance Department to conduct further investigation. 

(c) After receiving completion of an investigation, the Chief Compliance Officer will 

determine for each potential respondent whether to authorize: 

(i) the commencement of disciplinary 

proceedings because a reasonable basis exists to believe that a 
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violation within the Exchange’s jurisdiction has occurred or is 

about to occur; 

(ii) the informal disposition of the investigation 

(by issuing a warning letter or otherwise) if the Chief 

Compliance Officer determines that a violation of the Rules of 

the Exchange or any applicable Contract Rules may have 

occurred but that formal disciplinary proceedings are 

unwarranted; or 

(iii) the closing of the investigation without any 

action, and without the issuance of a warning letter, because 

disciplinary proceedings are not warranted and no reasonable 

basis exists to believe that a violation within the Exchange’s 

jurisdiction has occurred or is about to occur. 

XIV-5 Notice of Charges and Opportunity to Respond 

(a) If the Chief Compliance Officer authorizes disciplinary proceedings pursuant to 

Rule XIV-4, the Compliance Department will prepare in accordance with Rule XIV-5 and serve 

in accordance with Rule XIV-7, a notice of charges within twenty (20) Business Days thereafter. 

(b) A notice of charges will: 

(i) state the acts, practices or conduct that the 

respondent is alleged to have engaged in, 

(ii) state the Rule of the Exchange or provision of 

Applicable Law alleged to have been violated or about to be 

violated, 

(iii) state the proposed sanctions, 

(iv) advise the respondent of its right to submit a 

written statement explaining why a disciplinary proceeding 

should not be instituted or one or more of the potential charges 

should not be brought, which statement must be submitted 

within twenty (20) Business Days after service of the notice of 

charges, 

(v) advise the respondent of its right to a hearing 

and its right to have counsel present, 

(vi) state the period of time within which the 

respondent can request a hearing on the notice of charges, in 

lieu of submitting a written statement pursuant to Rule XIV-
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5(b)(iv), which will not be less than twenty (20) Business Days 

after service of the notice of charges, 

(vii) advise the respondent that any failure to 

request a hearing within the period stated, except for good 

cause, will be deemed to constitute a waiver of the right to a 

hearing, and 

(viii) advise the respondent that any allegation in 

the notice of charges that is not expressly denied will be 

deemed to be admitted. 

(c) If the respondent submits a written statement pursuant to Rule XIV-5(b)(iv), the 

Chief Compliance Officer shall, within ten (10) Business Days after receipt of the written 

statement, advise the respondent: 

(i) of the Chief Compliance Officer’s decision to 

drop any or all of the potential charges, 

(ii) that the disciplinary proceedings will proceed 

with respect to all remaining charges in accordance with the 

notice of charges delivered to the respondent, and/or, as 

appropriate 

(iii) that the respondent shall have twenty (20) 

Business Days to submit an answer to the notice of charges, as 

described in Rule XIV-6. 

XIV-6 Answer to Notice of Charges 

(a) If the respondent determines to answer a notice of charges, the respondent must file 

answers within twenty (20) Business Days after being served with such notice, or within such other 

time period determined appropriate by the Chief Compliance Officer. 

(b) To answer a notice of charges, the respondent must in writing: 

(i) specify the allegations that the respondent 

denies or admits, 

(ii) specify the allegations that the respondent 

does not have sufficient information to either deny or admit, 

(iii) specify any specific facts that contradict the 

notice of charges, 
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(iv) specify any affirmative defenses to the notice 

of charges, and 

(v) sign and serve the answer on the Director of 

Hearings. 

(c) Any failure by the respondent to timely serve an answer to a notice of charges will 

be deemed to be an admission to the allegations in such notice. Any failure by the respondent to 

answer one or more allegations in a notice of charges will be deemed to be an admission of that 

allegation or those allegations. Any allegation in a notice of charges that the respondent fails to 

expressly deny will be deemed to be admitted. A general denial by the respondent, without more, 

will not satisfy the requirements of paragraph (b) above. 

XIV-7 Service of Notice of Charges 

(a) Any notice of charges or other documents contemplated to be served pursuant to 

this Chapter XIV may be served (and service shall be deemed complete) upon the respondent either 

personally or by (i) leaving the same at his or her place of business or by deposit in the United 

States mail, postage prepaid, via registered or certified mail addressed to the respondent at the 

address as it appears on the books and records of the Exchange, or (ii) sending the same via 

electronic mail to the e-mail address of the respondent as it appears on the books and records of 

the Exchange. 

XIV-8 Settlements 

(a) A respondent or potential respondent may at any time propose in writing an offer 

of settlement to anticipated or instituted disciplinary proceedings. Any offer of settlement should 

contain proposed findings and sanctions and be signed by the respondent or potential respondent 

and submitted to the Compliance Department. A respondent or potential respondent may offer to 

settle disciplinary proceedings without admitting or denying the findings contained in the order of 

the disciplinary proceedings but must accept the jurisdiction of the Exchange over it and over the 

subject matter of the proceedings and consent to the entry of the findings and sanctions imposed. 

(b) If a respondent or potential respondent submits an offer of settlement in accordance 

with paragraph (a) above, the Compliance Department will forward the offer to the Chief 

Compliance Officer with a recommendation on whether to accept or reject the offer. If the Chief 

Compliance Officer conditionally accepts an offer of settlement, the settlement will become final 

upon the expiration of twenty (20) Business Days after an order of the disciplinary proceedings 

consistent with the terms of the offer of settlement is served on the respondent. 

(c) If an offer of settlement is accepted and the related order of disciplinary proceedings 

becomes final, the respondent’s submission of the offer will be deemed to constitute a waiver of 

the right to notice, opportunity for a hearing and review and appeal under these Rules. 

(d) If the offer of settlement of a respondent or potential respondent is not accepted, 

fails to become final or is withdrawn by the respondent or potential respondent, the matter will 
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proceed as if the offer had not been made and the offer and all documents relating to it will not 

become part of the record. Neither a respondent or potential respondent nor the Compliance 

Department may use an unaccepted offer of settlement as an admission or in any other manner at 

a hearing of, or appeal from, disciplinary proceedings. 

XIV-9 Disciplinary Panel 

(a) A disciplinary panel consisting of five (5) individuals selected by the Board of 

Directors from the Exchange’s Hearing Panel Committee (with one individual acting as chairman) 

(the “Disciplinary Panel”), will conduct hearings in connection with any disciplinary proceedings, 

to make findings and impose sanctions pursuant to this Chapter XIV. A separate disciplinary panel 

will be established prior to the commencement of each disciplinary matter. No Disciplinary Panel 

shall be comprised in a manner such that any group or class of industry participants may reasonably 

be expected to dominate or exercise disproportionate influence on such panel. Each Disciplinary 

Panel shall consist of at least one individual who would qualify as a Public Director (if the 

individual was a director of the Exchange), except in cases limited to decorum, attire, or the timely 

submission of accurate records required for clearing or verifying each day’s transactions. 

Members of the Compliance Department of the Exchange shall not be eligible to serve on a 

Disciplinary Panel. 

(b) Within ten (10) Business Days of being notified of the appointment of the 

Disciplinary Panel, a respondent may seek to disqualify any individual named to the Disciplinary 

Panel for the reasons identified in Rule X-10 or for any other reasonable grounds, by serving 

written notice on the Chief Compliance Officer and providing a copy thereof to the Director of 

Hearings. By not timely filing a request for disqualification, the respondent will be deemed to 

have waived any objection to the composition of a Disciplinary Panel. The Chief Compliance 

Officer will decide the merits of any request for disqualification within his or her sole discretion. 

Any such decision will be final and not subject to appeal. 

XIV-10 Convening Hearings of Disciplinary Proceedings 

(a) All disciplinary proceedings (except for summary impositions of fines pursuant to 

Rule XIV-17) will be conducted at a hearing before the Disciplinary Panel. A hearing will be 

conducted privately and confidentially unless the Disciplinary Panel decides that the hearing, or 

any part of it, should be held in public after giving each respondent the opportunity to present its, 

his or her views on holding a public hearing. Notwithstanding the confidentiality of hearings, the 

Disciplinary Panel may appoint an expert to attend any hearing and assist in deliberations if such 

expert agrees to be subject to an appropriate confidentiality agreement. 

(b) After reasonable notice to each respondent, the Disciplinary Panel will promptly 

(but in no event later than thirty (30) Business Days following such notice) convene a hearing to 

conduct the disciplinary proceedings with respect to such respondent. Parties to a disciplinary 

proceeding include each respondent and the Compliance Department. 

(c) The chairman of the Disciplinary Panel may continue, adjourn or otherwise conduct 

the hearing, as he or she may deem appropriate. The chairman of the Disciplinary Panel will 
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determine all procedural and evidentiary matters, including the admissibility and relevance of any 

evidence proffered. In determining procedural and evidentiary matters, the chairman of the 

Disciplinary Panel will not be bound by any evidentiary or procedural rules or law. Once admitted 

during the hearing, the Disciplinary Panel may consider, and attach the weight it believes 

appropriate to, evidence or other materials. The Exchange will provide guidance to the chairman 

of the Disciplinary Panel on the conduct of the hearing. 

(d) Except for procedural and evidentiary matters decided by the chairman of the 

Disciplinary Panel pursuant to paragraph (c) above and Rule XIV-11, unless each respondent 

otherwise consents, the entire Disciplinary Panel must be present during the entire hearing and any 

related deliberations. 

XIV-11 Respondent Review of Evidence 

(a) Prior to the commencement of a hearing, each respondent will be given the 

opportunity to review all books, records, documents, papers, transcripts of testimony and other 

tangible evidence in the possession or under the control of the Exchange that the Compliance 

Department will use to support the allegations and proposed sanctions in the notice of charges or 

which the chairman of the Disciplinary Panel deems relevant to the disciplinary proceedings. 

Notwithstanding the foregoing, no respondent will have the right to review, and the Exchange will 

have no obligation to disclose, any information protected by attorney-client privilege or any other 

privileges recognized by Applicable Law. 

(b) If any books, records, documents, papers, transcripts of testimony, or other tangible 

evidence contain information that could adversely affect the competitive position of the Person 

providing the information or if such information might compromise other investigations being 

conducted by the Compliance Department, the Compliance Department may redact, edit or code 

such information before furnishing it to the respondent. 

(i) Notwithstanding anything in paragraph (b) 

above to the contrary, the Compliance Department: 

(ii) will not redact, edit or code competitive or 

investigative information contained in documents in a manner 

that would impair the respondent’s ability to defend against 

the allegations or proposed sanctions in the notices of charges, 

and 

(iii) will provide the respondent with access to the 

information and portions of the documents that the 

Compliance Department intends to rely on to support the 

allegations or proposed sanctions in the notice of charges. 

(c) For purposes of this Rule VII-11, information that could adversely affect 

competitive positions include positions in Contracts currently held, trading strategies employed in 
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establishing or liquidating positions, the identity of any Participant or Responsible Trading Agent 

and the personal finances of the Person providing the information. 

XIV-12 Conducting Hearings of Disciplinary Proceedings 

(a) At a hearing conducted in connection with any disciplinary proceedings, the 

Compliance Department will present its case supporting the allegations and proposed sanctions in 

the notice of charges to the Disciplinary Panel. If a respondent has timely filed an answer to the 

notice of charges in accordance with Rule XIV-6, the respondent is entitled to attend and 

participate in the hearing. 

(b) At a hearing conducted in connection with any disciplinary proceedings, the 

Disciplinary Panel or the Compliance Department and each respondent may: 

(i) present evidence and facts determined 

relevant and admissible by the chairman of the Disciplinary 

Panel, 

(ii) call and examine witnesses, and 

(iii) cross-examine witnesses called by other 

parties. 

(c) If the respondent fails to file an answer, has filed a general denial, or if any or all 

of the allegations in the notice of charges are not expressly denied in the respondent’s answer, the 

chairman of the Disciplinary Panel may limit evidence concerning any allegations not expressly 

denied in determining the sanctions to impose. If a respondent fails to file an answer but appears 

at the hearing, the respondent may not participate in the hearing (by calling or cross-examining 

witnesses, testifying in defense, presenting evidence concerning the notice of charges, or 

otherwise) unless the Disciplinary Panel determines that the respondent had a compelling reason 

for failing to timely file an answer. If the Disciplinary Panel determines that the respondent had a 

compelling reason for failing to timely file an answer, the Disciplinary Panel will adjourn the 

hearing and direct the respondent to promptly file a written answer in accordance with Rule XIV6. 

(d) Any Person entitled, or required or called upon, to attend a hearing before a 

Disciplinary Panel pursuant to paragraph (b)(ii) above will be given reasonable notice, confirmed 

in writing, specifying the date, time and place of the hearing, and the caption of the disciplinary 

proceedings. The Exchange will require all Participants and Responsible Trading Agents that are 

called as witnesses to appear at the hearing and produce evidence. The Exchange will make 

reasonable efforts to secure the presence of all other Persons called as witnesses whose testimony 

would be relevant. 

(e) If during any disciplinary proceedings the Disciplinary Panel determines that a 

reasonable basis exists to believe that the respondent violated or is about to violate a Rule of the 

Exchange or a provision of Applicable Law other than the violations alleged in the notice of 
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charges, the Disciplinary Panel may consider those apparent violations after providing the 

respondent with an opportunity to answer the additional allegations in accordance with Rule XIV6. In connection with considering apparent violations pursuant to this paragraph (e), the 

Disciplinary Panel may request that the Compliance Department provide the Panel with any 

additional information. 

(f) The Disciplinary Panel may summarily impose sanctions on any Participant or 

Responsible Trading Agent that impede or delay the progress of a hearing. 

(g) The Exchange will arrange for any hearing conducted in connection with 

disciplinary proceedings to be recorded hearing verbatim, or substantially verbatim, in a manner 

capable of accurate transcription. If the respondent requests a copy of all or portions of the 

recording of a hearing, the chairman of the Disciplinary Panel may within his or her sole discretion 

order the respondent to pay the costs for transcribing the recording of the hearing. 

(h) No interlocutory appeals of rulings of any Disciplinary Panel or chairman of the 

Disciplinary Panel are permitted. 

XIV-13 Decision of Disciplinary Panel 

(a) As promptly as reasonable following a hearing, the Disciplinary Panel will issue an 

order rendering its decision based on the weight of the evidence contained in the record of the 

disciplinary proceedings. A decision by a majority of the Disciplinary Panel will constitute the 

decision of the Disciplinary Panel. 

(b) The Exchange will serve a copy of the order of the disciplinary proceedings on the 

respondent and the Compliance Department. The order will include: 

(i) the notice of charges or summary of the 

allegations, 

(ii) the answer, if any, or a summary of the 

answer, 

(iii) a brief summary of the evidence introduced 

at the hearing, 

(iv) findings of fact and conclusions concerning 

each allegation, including each specific Rule of the Exchange 

and provision of Applicable Law that the respondent is found 

to have violated, 

(v) the imposition of sanctions, if any, and the 

effective date of each sanction; and 
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(vi) notice of the respondent’s right to appeal 

pursuant to Rule XIV-16. 

(c) Unless a timely notice of appeal is filed pursuant to Rule XIV-16, the order of the 

disciplinary proceedings will become final upon the expiration of twenty (20) Business Days after 

the order is served on the respondent and a copy thereof is provided to the Compliance Department. 

XIV-14 Sanctions 

(a) After notice and opportunity for hearing in accordance with these Rules, the 

Exchange will impose sanctions if a Participant or Responsible Trading is found to have violated 

or to have attempted to violate a Rule of the Exchange or provision of Applicable Law for which 

the Exchange possesses disciplinary jurisdiction. The Exchange may impose one or more of the 

following sanctions or remedies: (i) censure; (ii) limitation on Trading Privileges, association with 

a Participant or other activities, functions or operations; (iii) suspension of Trading Privileges or 

association with a Participant; (iv) fine (subject to paragraph (b) below); (v) restitution or 

disgorgement; (vi) termination of Trading Privileges; or (vii) any other sanction or remedy deemed 

to be appropriate. 

(b) The Exchange may impose a fine of up to $500,000 for each violation. If a fine or 

other amount is not paid within thirty (30) Business Days of the date that it becomes payable, then 

interest will accrue on the sum from the date that it became payable at the quoted prime rate plus 

three percent. The Exchange has sole discretion to select the bank on whose quotations to base 

the prime rate. Each Participant will be responsible for paying any fine or other amount imposed 

on, but not paid by, any Responsible Trading Agent authorized by, or other agent or representative 

of, such Participant. 

(c) The Exchange will enforce the Rules and impose sanctions impartially. 

XIV-15 Costs 

(a) Regardless of the outcome of any disciplinary proceeding, the Disciplinary Panel 

may order a respondent to pay some or all of the costs associated with the disciplinary proceedings 

that the Disciplinary Panel believes were unnecessarily caused by the respondent. Costs may 

include costs associated with the inquiry or investigation, the prosecution by the Compliance 

Department, legal and professional assistance, the hearing and administrative and other expenses 

incurred by the Disciplinary Panel. 

(b) The Disciplinary Panel may only award costs against the Exchange if the Panel 

concludes that the Exchange has behaved in a manifestly unreasonable manner in the 

commencement or conduct of the disciplinary proceedings in question. The Disciplinary Panel 

must limit any award of costs against the Exchange to an amount that the Panel concludes is 

reasonable and appropriate, but does not exceed the respondent’s costs for external legal or other 

external professional assistance. 
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(c) The Disciplinary Panel may determine the amounts and allocation of costs in any 

manner it may deem appropriate. The Exchange or the respondent will pay any costs ordered to 

be paid by it by the Disciplinary Panel within thirty (30) Business Days of the later of either written 

notice of (i) the amount imposed by the Disciplinary Panel or (ii) the determination of an appeal 

by the Appeals Panel against the Disciplinary Panel’s determination. 

XIV-16 Appeal from Disciplinary Panel Decision, Summary Impositions of 

Fines and Other Summary Actions 

(a) Each respondent found by the Disciplinary Panel to have violated a Rule of the 

Exchange or a provision of Applicable Law or who is subject to any summary fine imposed 

pursuant to Rule XIV-17 or any summary action imposed pursuant to Rule XIV-17 may appeal 

the decision within twenty (20) Business Days of receiving the order of the disciplinary 

proceedings or the notice of summary action, as the case may be, by filing a notice of appeal with 

the Chief Compliance Officer. While an appeal is pending, the effect of the order of disciplinary 

proceedings or the summary action (including any sanctions, remedies or costs imposed thereby) 

shall be suspended; provided however, any summary sanction entered under Rule XIV-18 shall 

continue in effect during the appeal. 

(b) The notice of appeal must state in writing the grounds for appeal, including the 

findings of fact, conclusions or sanctions to which the respondent objects. An appellant may 

appeal the order of disciplinary proceedings or any summary decision on the grounds that: 

(i) the decision was arbitrary, capricious, an 

abuse of discretion, or not in accordance with the Rules of the 

Exchange; 

(ii) the decision exceeded the authority or 

jurisdiction of the Disciplinary Panel, the Chief Compliance 

Officer or the Exchange; 

(iii) the decision failed to observe required 

procedures; 

(iv) the decision was unsupported by the facts or 

evidence; or 

(v) the imposed sanctions, remedies or costs are 

inappropriate or unsupported by the record. 

(c) The Chief Compliance Officer will forward copies of any notice of appeals received 

by it to all parties to the disciplinary proceeding or summary action, as the case may be, except the 

appellant. On or before the 20th day after filing a notice of appeal, the appellant must file with the 

Chief Compliance Officer and serve on the Compliance Department a brief supporting the notice 

of appeal and documents supporting the brief. On or before the 20th day after the date on which 

the appellant serves their supporting brief, the appellee must file and serve its brief in opposition. 
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On or before the 10th day after the date on which the appellee serves its brief in opposition, the 

appellant must file and serve a brief in reply. 

(d) In connection with any appeal, the Compliance Department will furnish to the Chief 

Compliance Officer and to the respondent/appellant a transcript of the hearing, any exhibits 

introduced at the hearing, the notice of appeal and briefs filed to support and oppose the appeal. 

(e) Within thirty (30) Business Days after the last submission filed pursuant to 

paragraph (c) above, the Chief Compliance Officer will appoint the Appeals Panel to consider and 

determine the appeal. No member of the Disciplinary Panel that originally heard the matter may 

be a member of the Appeals Panel on such matter. 

(f) The Appeals Panel may hold a hearing to allow parties to present oral arguments. 

Any hearing will be conducted privately and confidentially unless the Appeals Panel decides that 

the hearing, or any part of it, should be held in public after giving each appellant the opportunity 

to present their views on holding a public hearing. Notwithstanding the confidentiality of hearings, 

the Appeals Panel may appoint individuals to attend any hearing and assist in the deliberations if 

such individuals agree to be subject to appropriate confidentiality agreements. In determining 

procedural and evidentiary matters, the Appeals Panel will be bound by evidentiary or procedural 

rules or law. 

(g) The Appeals Panel will only consider on appeal the record before the Disciplinary 

Panel or, in the case of a summary action, the record considered by the Chief Compliance Officer 

or the Chief Compliance Officer’s Designee, the notice of appeal, the briefs filed in support and 

opposition of the appeal, and any oral arguments of the parties. The Appeals Panel may only 

consider new evidence when the Appeals Panel is satisfied that good cause exists on why the 

evidence was not introduced during the disciplinary proceeding or when imposing the summary 

action. 

(h) After completing its review, the Appeals Panel may affirm or, only if it finds that 

the decision of the Disciplinary Panel or the Chief Compliance Officer that is under review, as the 

case may be, meets one of the criteria listed in Rule XIV-16(i) below, modify or reverse any order 

of the disciplinary proceedings or summary action under appeal, in whole or in part, including 

increasing, decreasing or eliminating any sanction or remedy imposed, imposing any other 

sanction or remedy authorized by the Rules of the Exchange, or remanding the matter to the same 

or a different Disciplinary Panel for further disciplinary proceedings or for reconsideration by the 

Chief Compliance Officer. The Appeals Panel may order a new hearing for good cause or if the 

Appeals Panel determines in its sole discretion that the appellant was not given a full and fair 

opportunity to make an argument in its favor and present supporting evidence. 

(i) As described in Rule XIV-16(h) above, the Appeals Panel may modify or reverse 

any order of the disciplinary proceedings or summary action under appeal only if it finds that the 

decision was: 

(i) Arbitrary, capricious, or an abuse of the 

discretion of the Disciplinary Panel, the Chief Compliance 
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General Rules of the Exchange 

© 2010-2023 FMX Futures Exchange, L.P. 

Officer, or the Chief Compliance Officer’s Designee, as the 

case may be; 

(ii) In excess of the authority or jurisdiction of 

the Disciplinary Panel or the Chief Compliance Officer, as the 

case may be; or 

(iii) Based on a clearly erroneous application or 

interpretation of the Rules of the Exchange or the applicable 

Contract Rules. 

(j) As promptly as reasonably possible following its review, the Appeals Panel will 

issue a written decision on appeal rendering its decision based on the weight of the evidence before 

the Appeals Panel. The decision of the Appeals Panel will include a statement of findings of fact 

and conclusions for each finding, sanction, remedy and cost reviewed on appeal, including each 

specific Rule of the Exchange and provision of Applicable Law that the respondent is found to 

have violated, if any, and the imposition of sanctions, remedies and costs, if any, and the effective 

date of each sanction, remedy or cost. 

(k) The Appeal Panel’s written order on appeal (including findings of fact and 

conclusions and the imposition of sanctions, remedies and costs, and the effective date of any 

sanction, remedy cost) will be the final action of the Exchange and will not be subject to appeal 

within the Exchange. 

(l) Within ten (10) Business Days of being notified of the appointment of the Appeals 

Panel, a respondent may seek to disqualify any individual named to the Appeals Panel for the 

reasons identified in this Rule XIV-16 or for any other reasonable grounds, by serving written 

notice on the Chief Compliance Officer and providing a copy thereof to the Director of Hearings. 

By not timely filing a request for disqualification, the respondent will be deemed to have waived 

any objection to the composition of an Appeals Panel. The Chief Compliance Officer will decide 

the merits of any request for disqualification within his or her sole discretion. Any such decision 

will be final and not subject to appeal. 

XIV-17 Summary Imposition of Fines 

(a) The Chief Compliance Officer may summarily impose a fine against any Person 

with Trading Privileges jointly and severally with such Participant through which Person has been 

granted Trading Privileges for failing: 

(i) to make timely payments of margin, options 

premiums, fees, cost, charges or fines to the Exchange or the 

Clearinghouse, 

(ii) to make timely and accurate submissions to 

the Exchange of notices, reports or other information required 

by the Rules of the Exchange, and 
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General Rules of the Exchange 

© 2010-2023 FMX Futures Exchange, L.P. 

(iii) to keep any books and records required by the 

Rules of the Exchange. 

(b) The Compliance Department, acting on behalf of the Chief Compliance Officer, 

will give notice of any fine imposed pursuant to this Rule XIV-17 to each Participant or 

Responsible Trading Agent subject thereto. The notice will specify (i) the violations of the Rules 

of the Exchange for which the fine is being imposed, (ii) the date of the violation for which the 

fine is being imposed and (iii) the amount of the fine. Within twenty (20) Business Days of serving 

the notice of fine, the Participant or Responsible Trading Agent, as the case may be, must either 

pay the fine or file notice of an appeal pursuant to Rule XIV-16. Unless timely notice of appeal is 

filed pursuant to Rule XIV-16, the fine will become final upon the expiration of twenty (20) 

Business Days after the notice of fine is served on the Participant or Responsible Trading Agent, 

as the case may be. 

(c) The Exchange, in its sole discretion, may deduct the amount of any fine imposed 

pursuant to Rule XIV-17(b) directly from the Participant’s Trading Account; provided, that the 

Exchange may not make such a deduction if the result would be to cause an Event of Default with 

respect to any Open Contract Positions then held in the Trading Account of such Participant. 

(d) The Exchange will set the amount of any fines imposed pursuant to this Rule XIV17, with the maximum fine for each violation not to exceed $5,000. Summary imposition of fines 

pursuant to this Rule XIV-17 will not preclude the Exchange from bringing any other action 

against the Participant or Responsible Trading Agent, as the case may be. 

XIV-18 Summary Suspensions and Other Summary Actions 

(a) Notwithstanding anything in the Rules of the Exchange to the contrary, the Chief 

Compliance Officer or the Chief Compliance Officer’s Designee, upon a good faith determination 

that there are substantial reasons to believe that such immediate action is necessary to protect the 

public or the best interests of the Exchange, may order that any party be denied access to the 

Trading System or the Exchange, or summarily limit, condition, restrict or qualify the Trading 

Privileges of a Participant or Responsible Trading Agent, and may take other summary action 

against any Participant or Responsible Trading Agent in accordance with the Rules of the 

Exchange; provided, however, that the Chief Compliance Officer or the Chief Compliance 

Officer’s Designee in issuing an order denying access, may permit such party to enter Orders solely 

for the purpose of liquidating the Open Contract Positions of such Participant while the applicable 

suspension, limitation, condition, restriction or qualification of access is in effect. 

(b) Promptly after an order is issued pursuant to paragraph (a), the party shall be 

informed of the action taken, the reasons for the action, the effective date and the duration of the 

action. The party shall also be informed of his or her right to appeal the action under Rule XIV16. Whenever practicable, the Compliance Department, acting on behalf of the Chief Compliance 

Officer, shall provide such notice prior to taking the action. 
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General Rules of the Exchange 

© 2010-2023 FMX Futures Exchange, L.P. 

(c) Unless timely notice of appeal is filed pursuant to Rule XIV-16, the summary 

action will become final upon the expiration of twenty (20) Business Days after the notice of action 

is served on the respondent. 

(d) At the request of the Exchange or the Clearinghouse, a respondent against whom a 

summary action is brought pursuant to this Rule XIV-18 must provide books and records over 

which the respondent has access or control and must furnish information to, or appear or testify 

before, the Exchange or the Clearinghouse in connection with the enforcement of any Rule of the 

Exchange or Rule of the Clearinghouse. 

(e) A respondent whose Trading Privileges are suspended, limited, conditioned, 

restricted or qualified pursuant to this Rule XIV-18 may apply for reinstatement by filing with the 

Compliance Department a written request stating the applicant’s reasons for seeking reinstatement. 

The Exchange will not consider a respondent’s request for reinstatement if the respondent (i) 

persists in the conduct which was the subject of the order denying access; (ii) owes any fines, fees, 

charges or costs to the Exchange, (iii) continues to fail to appear at disciplinary proceedings 

without good cause or (iv) continues to impede the progress of disciplinary proceedings. 

(f) Within a reasonable period after the filing of a request for reinstatement, the 

Appeals Panel will conduct a hearing to consider the request. At the hearing for reinstatement, the 

respondent will present its, his or her case supporting the reinstatement and the Compliance 

Department, acting on behalf of the Chief Compliance Officer may, in its discretion, present its 

case opposing or supporting the reinstatement and each may present relevant and admissible 

evidence and facts and call, examine and cross-examine witnesses. At the hearing for 

reinstatement, the Exchange may require any Participant or any Responsible Trading Agent to 

appear as witnesses and produce evidence if the Appeals Panel determines that the evidence is 

relevant. 

(g) As promptly as reasonably possible after a reinstatement hearing, the Appeals Panel 

will issue an order reinstating, denying the reinstatement, or placing conditions on the 

reinstatement of the Trading Privileges, or association with a Participant, of the respondent. The 

order will include a brief summary of the evidence introduced at the reinstatement hearing; and, if 

applicable, findings of fact and conclusions not contained in the Appeals Panel’s initial order 

issued pursuant to Rule XIV-18(d) above. The Appeals Panel’s order may not be appealed. 

(h) Any decision to deny access pursuant to paragraph (a) shall not remain in effect for 

more than sixty (60) days unless the Chief Compliance Officer or the Chief Compliance Officer’s 

Designee, upon further consideration of the circumstances giving rise to the order denying access, 

issues a separate order denying access for an additional period of time, not to exceed sixty (60) 

days. The party must be notified thereof prior to issuance of the second order, unless prior notice 

is impracticable. Such notice must meet the standards provided in paragraph (b). At any time, a 

party subject to an action under this Rule XIV-18, may petition the Chief Compliance Officer or 

the Chief Compliance Officer’s Designee to reconsider an access denial pursuant to this Rule based 

upon materially changed circumstances. 
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General Rules of the Exchange 

© 2010-2023 FMX Futures Exchange, L.P. 

XIV-19 Rights and Responsibilities after Suspension or Termination 

(a) When the Trading Privileges of a Participant are, or the association of a Direct 

Access Customer or Responsible Trading Agent with a Participant is, suspended for a period of 

twelve (12) months or less, none of its rights and Trading Privileges (including the right to hold 

oneself out to the public as a Participant, enter Orders into the Exchange Trading System and 

receive Participant rates for fees, costs, and charges and deposit margin at Participant levels) will 

apply during the period of the suspension, except for the right of the Participant or Responsible 

Trading Agent in question to assert claims against others as provided in the Rules of the Exchange. 

Any such suspension will not relieve the Participant, Direct Access Customer or Responsible 

Trading Agent in question of its, his or her obligations under the Rules of the Exchange to perform 

any Contracts entered into before the suspension, or for any Exchange fees, costs, or charges 

incurred during the suspension. The Exchange may discipline a suspended Participant, Direct 

Access Customer or Responsible Trading Agent under this Chapter XIV for any violation of a 

Rule of the Exchange or provision of Applicable Law committed by the Participant before, during 

or after the suspension. 

(b) When the Trading Privileges of a Participant are, or the association of a Direct 

Access Customer or Responsible Trading Agent with a Participant is, terminated, all of its rights 

and Trading Privileges will terminate, except for the right of the Participant, Direct Access 

Customer or Responsible Trading Agent in question to assert claims against others, as provided in 

the Rules of the Exchange. A terminated Participant or Responsible Trading Agent may only seek 

to reinstate its Trading Privileges by applying for Trading Privileges pursuant to Rule II-6 or Rule 

XXI-5. The Exchange will not consider the application of a terminated Participant, Direct Access 

Customer or Responsible Trading Agent if such Participant, Direct Access Customer or 

Responsible Trading Agent, as the case may be, continues to fail to appear at disciplinary 

proceedings without good cause or continues to impede the progress of disciplinary proceedings. 

(c) A suspended or terminated Participant, Direct Access Customer or Responsible 

Trading Agent remains subject to the Rules of the Exchange and the jurisdiction of the Exchange 

for acts and omissions prior to the suspension of termination, and must cooperate in any inquiry, 

investigation, disciplinary proceeding, appeal of disciplinary proceedings, summary suspension or 

other summary action as if the suspended or terminated Participant, Direct Access Customer or 

an Responsible Trading Agent still had Trading Privileges or was still associated with a Participant, 

as the case may be. 

XIV-20 Notice to the Respondent, the CFTC and the Public 

(a) The Exchange will provide written notice of disciplinary proceedings to the parties 

and the CFTC consistent with CFTC Regulations. Whenever the Exchange suspends, expels, fines 

or otherwise disciplines, or denies any Person access, to the Exchange, the Exchange will make 

the public disclosures required by CFTC Regulations. 
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General Rules of the Exchange 

© 2010-2023 FMX Futures Exchange, L.P. 

CHAPTER XV 

ARBITRATION 

XV-1 General 

Except as otherwise provided in the Rules of the Exchange, Participants, Direct Access 

Customers and Responsible Trading Agents must arbitrate all controversies arising in connection 

with their Exchange business between or among themselves. Notwithstanding the foregoing, this 

Rule XV-1 does not require arbitration of claims alleging employment discrimination (including 

sexual harassment) in violation of Applicable Law. 

XV-2 Forum 

NFA will conduct any and all arbitrations of a type described in Rule XV-1. 

XV-3 Applicable Arbitration Rules 

Any and all arbitrations of a type described in Rule XV-1 above will be conducted pursuant 

to NFA’s Member Arbitration Rules. 

XV-4 Penalties 

(a) Any failure on the part of any Participant or Responsible Trading Agents to arbitrate 

a case subject to arbitration, or the commencement by any such Person of a suit in any court prior 

to arbitrating a case subject to arbitration, violates the Rules of the Exchange and subjects such 

Participant or Responsible Trading Agent to disciplinary proceedings pursuant to Chapter XIV. 

(b) The Exchange may summarily suspend, pursuant to Chapter XIV, a Participant or 

Responsible Trading Agent that fails to satisfy an arbitration award rendered in any arbitration 

pursuant to this Chapter XV. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

PART C RULES OF THE CX DIVISION 

Scope: The rules of Part C apply to trading of Contracts on the CX Division of the Exchange. 

CHAPTER XX 

TERMS APPLICABLE TO THE CX DIVISION 

XX-1 Defined Terms 

The following terms have the meanings specified herein with regard to the Exchange and 

the CX Division unless otherwise specifically provided in the Rules of the Exchange or the context 

otherwise requires. 

Administrator 

The term “Administrator” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange. 

Affiliate 

The term “Affiliate” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange. 

Appeals Panel 

The term “Appeals Panel” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange. 

Applicable Law 

The term “Applicable Law” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 

Assistant Secretary 

The term “Assistant Secretary” means any individual appointed by the Board of Directors 

from time to time. 

Available Funds 

The term “Available Funds” shall have the meaning assigned to such term in the Rules of 

the CX Clearinghouse. 

Board of Directors 

The term “Board of Directors” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Business Day 

The term “Business Day” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange. 

Cancel CX Order 

The term “Cancel CX Order” means an Order that cancels fully an existing buy or sell 

order for a CX Division Contract. 

Cancel Replace CX Order 

The term “Cancel Replace CX Order” means an order to cancel fully an existing buy or 

sell Order for a CX Division Contract and replace it with a new Order for a CX Division Contract 

for a different quantity or price. 

CEA 

The term “CEA” shall have the meaning assigned to such term in Chapter I of the Rules of 

the Exchange. 

CFTC 

The term “CFTC” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange. 

CFTC Regulation 

The term “CFTC Regulation” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 

Closed Contract Positions 

The term “Closed Contract Positions” shall have the meaning assigned to such term in the 

Rules of the CX Clearinghouse. 

Compliance Department 

The term “Compliance Department” shall have the meaning assigned to such term in 

Chapter I of the Rules of the Exchange. 

Chief Compliance Officer 

The term “Chief Compliance Officer” shall have the meaning assigned to such term in 

Chapter I of the Rules of the Exchange. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Contract 

The term “Contract” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange. 

Contract Profit or Loss Amounts 

The term “Contract Profit or Loss Amounts” shall have the meaning assigned to such term 

in the Rules of the CX Clearinghouse. 

Contract Rules 

The term “Contract Rules” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 

Control 

The term “Control” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange. 

CX Clearinghouse 

The term “CX Clearinghouse” means CX Clearinghouse, L.P. (including its successors), a 

limited partnership organized under the laws of the State of Delaware, and a registered derivatives 

clearing organization, that the Exchange has designated to provide clearing services with respect 

to CX Division Contracts that the Exchange lists for trading. 

CX Direct System 

The term “CX Direct System” means the proprietary order entry and execution system used 

by the Exchange for the placement and execution of Orders or the collection and transmission of 

information relating to Contracts. Participants (and their Responsible Trading Agents) will access 

the CX Direct System directly via the Internet. 

CX Division 

The term “CX Division” means the Division of the Exchange that lists Contracts only for 

direct Participant trading and for self-clearing by Participants through CX Clearinghouse. 

CX Division Contract 

The term “CX Division Contract” shall have the meaning assigned to such term in Chapter 

I of the Rules of the Exchange. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

CX Participant 

The term “CX Participant” means a Participant that is admitted to the Exchange for trading 

on the CX Division, only for its own account (or whose account is traded by a registered or exempt 

Commodity Pool Operator or Commodity Trading Advisor). 

CX Participant Clearing Account 

The term “CX Participant Clearing Account” means, with respect to each CX Participant, 

the account established and maintained by such Participant at the CX Clearinghouse through which 

the Participant will hold, and the CX Clearinghouse will maintain and monitor, Available Funds, 

Open Contract Positions, Closed Contract Positions, Contract Profit or Loss Amounts and the 

corresponding margin requirements, if any, in connection with Open Contract Positions in CX 

Division entered into through the Participant’s Trading Account. 

CX Referred Participant 

The term “Referred Participant” means a Person that has been referred or solicited by a 

Referring Participant to become a CX Participant or whose Orders for CX Division Contracts have 

been solicited by a Referring Participant. 

CX Referring Participant 

The term “Referring Participant” means a Participant that has been approved by the 

Exchange to solicit or refer another Person to become a CX Participant (the Referred Participant) 

or to solicit a Referred Participant’s Orders for CX Division Contracts, but not to enter such 

Referred Participant’s Orders into the Trading System on behalf of that Referred Participant.

Director of Hearings 

The term “Director of Hearings” shall have the meaning assigned to such term in Chapter 

I of the Rules of the Exchange. 

Disciplinary Panel 

The term “Disciplinary Panel” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange. 

DPM 

The term “DPM” means any designated primary market maker approved by the Exchange 

from time to time. 

Emergency 

The term “Emergency” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

End of Trading 

The term “End of Trading” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 

Entity 

The term “Entity” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange. 

Exchange 

The term “Exchange” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange. 

Exchange Official 

The term “Exchange Official” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange. 

First Trading Day 

The term “First Trading Day” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange. 

Floor Trader Participant 

The term “Floor Trader Participant” means any Participant who (i) is registered as a floor 

trader under the CEA, or (ii) has a pending application for such registration. 

Funds Deposit Request 

The term “Funds Deposit Request” means a Participant’s written or electronic 

authorization to withdraw and transmit funds from such Participant’s bank account relating to 

trading in CX Division including all information required to give effect to such withdrawal and 

transmission.

Futures 

The term “Futures” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange. 

General Partner 

The term “General Partner” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Hearing Panel Committee 

The term “Hearing Panel Committee” shall have the meaning assigned to such term in 

Chapter I of the Rules of the Exchange. 

Last Trading Day 

The term “Last Trading Day” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 

Limit Order 

The term “Limit Order” shall have the meaning assigned to such term in Rule III-4(a) of 

the Rules of the Exchange. 

Matched Trade 

The term “Matched Trade” has the meaning set forth in Rule XXII-10(h). 

NFA 

The term “NFA” shall have the meaning assigned to such term in Chapter I of the Rules of 

the Exchange. 

Officer 

The term “Officer” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange.

Open Contract Positions 

The term “Open Contract Positions” shall have the meaning assigned to such term in the 

Rules of the CX Clearinghouse. 

Operating Agreement 

The term “Operating Agreement” shall have the meaning assigned to such term in Chapter 

I of the Rules of the Exchange. 

Option on Futures 

The term “Option on Futures” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange. 

Order 

The term “Order shall have the meaning assigned to such term in Chapter I of the Rules of 

the Exchange. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Original Margin 

The term “Original Margin” shall have the meaning assigned to such term in the Rules of 

the CX Clearinghouse. 

Participant 

The term “Participant” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange 

Passwords 

The term “Passwords” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange. 

Person 

The term “Person” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange. 

President 

The term “President” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange. 

Public Director 

The term “Public Director” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 

Qualified Market Maker 

The term “Qualified Market Maker” shall have the meaning assigned to such term in 

Chapter I of the Rules of the Exchange. 

Regulatory Oversight Committee 

The term “Regulatory Oversight Committee” shall have the meaning assigned to such term 

in Chapter I of the Rules of the Exchange. 

Regulatory Services Agreement 

The term “Regulatory Services Agreement” shall have the meaning assigned to such term 

in Chapter I of the Rules of the Exchange. 

Responsible Trading Agent 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

The term “Responsible Trading Agent” shall have the meaning assigned to such term in 

Chapter I of the Rules of the Exchange. 

Rules of the CX Clearinghouse 

The term “Rules of the CX Clearinghouse” means the constitutive documents and any 

rules, regulations, interpretations, stated policies or instruments corresponding to any of the 

foregoing, in each case as adopted or amended from time to time by the CX Clearinghouse relating 

to the CX Division Contracts for which CX Clearinghouse has been designated as the 

clearinghouse by the Exchange. 

Rules of the Exchange 

The term “Rules of the Exchange” shall have the meaning assigned to such term in Chapter 

I of the Rules of the Exchange. 

Secretary 

The term “Secretary” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange. 

Settlement Price 

The term “Settlement Price” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 

Supervised Persons 

The term “Supervised Persons” shall mean any directors, officers or employees or 

Responsible Trading Agents of any Participant. 

Trading Account 

The term “Trading Account” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 

Trading Day 

The term “Trading Day” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange. 

Trading Hours 

The term “Trading Hours” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Trading Privileges 

The term “Trading Privileges” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange. 

Treasurer 

The term “Treasurer” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange. 

User ID 

The term “User ID” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange. 

Vice President 

The term “Vice President” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange. 

XX-2 Rules of Interpretation 

For all purposes of these Rules, except as otherwise expressly provided herein or unless 

the context otherwise requires: 

(a) the terms defined in these Rules include the plural as well as the singular and vice 

versa; 

(b) words importing gender include all genders; 

(c) any reference to a Chapter, Rule or Appendix refers to a Chapter or Rule of, or 

Appendix to, these Rules; 

(d) any reference to these Rules refers to these Rules, including all Appendices hereto, 

and the words herein, hereof, thereto, hereto and hereunder and words of similar import refer to 

these Rules and their appendices as a whole and not to any particular Part, Chapter, Rule, appendix 

or any other subdivision; 

(e) references to days, months and years refer to calendar days, months and years, 

respectively; 

(f) all references herein to “including” shall be deemed to be followed by the words 

“without limitation;” 

(g) any term used herein that is defined in the CEA or CFTC Regulations shall have 

the meaning assigned to it therein; and 

(h) all references herein to a time of day refer to local time in The City of New York. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

XX-3 Effect of Titles 

The titles of these Rules have been inserted for convenience of reference only and shall not 

affect the meaning of these Rules. 

XX-4 Amendment of Rules 

New Rules of the Exchange may be adopted, and existing Rules of the Exchange may be 

amended or repealed, by the Board of Directors. All such new Rules of the Exchange, amendments 

or repeals shall become effective on such date (after any required certification with or approval 

thereof by the CFTC) as may be determined by the Exchange. 

XX-5 Hierarchy of Interpretation of Rules 

(a) The Rules are divided into three Parts. The rules specific to the FMX Division are 

included in Part A, the General Rules of the Exchange are included in Part B, and the rules specific 

to the CX Division are located in Part C. Notwithstanding any provision of these Rules to the 

contrary, in the event of any conflict between a Rule in Part A governing the FMX Division and a 

General Rule of the Exchange in Part B of this Rulebook, the Part A Rule shall govern, or in the 

event of any conflict between a Rule in Part C governing the CX Division and a General Rule of 

the Exchange in Part B of this Rulebook, the Part C Rule shall govern. 

(b) Notwithstanding any provision of these Rules to the contrary, in the event of any 

conflict between a Rule in Parts A, B or C of this Rulebook and a specific Contract Rule in Chapter 

V for FMX Division Contracts or Chapter XXV for CX Division Contracts, the specific Contract 

Rules shall govern with respect to trading in the relevant Contract. 

(c) Notwithstanding the generality of Rule XX-5(a) or anything to the contrary in Rule 

XXI-4, the Contract Rules for each individual Contract may specify: 

(i) different classes of Participants eligible to 

trade such Contracts. Each such class of Participants shall have 

the rights and obligations specified by the Contract Rules for 

each such Contract; and 

(ii) whether such Contract may be settled via 

cash settlement, physical delivery of the underlying 

commodity, or by any other means, as applicable. 

 
- 94 - 

CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

CHAPTER XXI 

ADMISSION TO TRADE ON CX DIVISION 

XXI-1 CX Participants and CX Trading Accounts 

(a) Each CX Participant and its Responsible Trading Agents shall have the right to 

access the Exchange Trading System, including the right to place Orders for Trading Accounts as 

provided in this Chapter. 

(b) Upon application to the Exchange and an explanation of the reasons and uses 

therefore, the Exchange in its discretion may permit a CX Participant to maintain more than one 

Trading Account. 

(c) In the event that the Exchange determines that Participants may be permitted to 

maintain more than one Trading Account, the CX Participant shall designate each of its 

Responsible Trading Agents to trade any or all of its Trading Accounts, provided that a Participant 

shall at all times be responsible for all of its Trading Accounts as set forth under these Rules. 

(d) Subject to the requirements and procedures set forth in this Chapter, CX Trading 

Privileges shall be offered to all applicants eligible to be CX Participants, as determined by the 

Exchange, subject to any limitations or restrictions from time to time imposed by the Exchange. 

CX Trading Privileges are non-transferable, non-assignable, may not be sold or leased, and are 

specifically limited to trading on the CX Division. For the avoidance of doubt, a CX Participant 

may trade FMX Division Contracts on the FMX Division only if also admitted as an FMX 

Participant. 

(e) By virtue of obtaining CX Trading Privileges, a CX Participant shall not obtain any 

equity or other interest in the Exchange, including voting rights or rights to receive any dividends 

or other distributions, whether arising from a dissolution, merger, consolidation involving the 

Exchange or otherwise, unless specifically so provided by agreement with the Exchange. 

(f) For the avoidance of doubt, and notwithstanding anything to the contrary in these 

Rules, under no circumstances shall any employees, officers, directors or agents of the Exchange 

(i) trade directly or indirectly in any commodity 

interest traded on the Exchange or cleared by the CX 

Clearinghouse, or in a related commodity interest; or 

(ii) trade directly or indirectly in a commodity 

interest traded on a designated contract market or swap 

execution facility other than the Exchange or cleared by a 

derivatives clearing organization other than the Exchange’s 

clearinghouse, if the employee, officer or director has access 

to material non-public information concerning such 

commodity interest. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

XXI-2 Responsible Trading Agents 

(a) Participants that are natural persons may act as their own Responsible Trading 

Agent or may appoint a third party as their Responsible Trading Agent, pursuant to a power of 

attorney or other instrument, in a form prescribed or approved by the Exchange, providing such 

third party with discretionary trading authority with respect to the CX Participant’s Trading 

Account. 

(b) A CX Participant that is an Entity may appoint an employee to act as its Responsible 

Trading Agent or may appoint a third party as its Responsible Trading Agent pursuant to a power 

of attorney or other instrument, in a form prescribed or approved by the Exchange, providing such 

third party with discretionary trading authority with respect to the CX Participant’s Trading 

Account. A CX Participant that authorizes a third party to trade for its Trading Account on a 

discretionary basis pursuant to a power of attorney or other instrument must identify a specific 

natural person as its Responsible Trading Agent with respect to such Trading Account. 

(c) Each Responsible Trading Agent that is an employee of a CX Participant that is an 

Entity and any CX Participant that is a natural person acting as their own Responsible Trading 

Agent pursuant to paragraph (a) above (i) may trade only for one CX Participant, and (ii) must 

satisfy any other requirements as may be prescribed by the Exchange from time to time. Each 

Responsible Trading Agent that is an employee of a third party with discretionary trading authority 

with respect to the Participant’s Trading Account (i) must be a natural person, (ii) may have 

Trading Privileges with respect to the Trading Accounts of more than one Participant, and as 

applicable, (iii) must allocate contracts executed for such multiple accounts in a fair and equitable 

manner so that no account or group of accounts consistently receives favorable or unfavorable 

treatment over time, and (iv) must satisfy any other requirements as may be prescribed by the 

Exchange from time to time. Each CX Participant may at any time revoke its authorization to its 

Responsible Trading Agent by providing written notice of such revocation to the Exchange. A 

Participant shall take immediate measures appropriate to ensure that, after such revocation, (i) the 

affected Responsible Trading Agent shall not have access to the Exchange Trading System or (ii) 

the affected Responsible Trading Agent shall not utilize its User ID, and the Exchange shall act 

promptly, but in any event within one Business Day of receiving notice from the Participant, to 

disallow Order entry by any such Person. 

(e) Without limiting the foregoing, each Responsible Trading Agent will consent, in a 

form satisfactory to the Exchange, to abide by the Rules of the Exchange and Applicable Law prior 

to accessing the Exchange Trading System, and each Participant will ensure on an ongoing basis 

that (i) none of its Responsible Trading Agents is subject to a disqualification pursuant to any 

Applicable Law (unless an appropriate exemption has been obtained with respect thereto), (ii) each 

of its Responsible Trading Agents will be technically proficient, (iii) each of its Responsible 

Trading Agents will conduct its business in a fair and equitable manner, and (iv) each of its 

Responsible Trading Agents will conduct its business in accordance with the Rules of the 

Exchange. 

(f) All obligations of Participants under these Rules shall also apply to each of their 

Responsible Trading Agents, and other personnel, and each Participant shall be responsible for the 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

actions and omissions of each of its Responsible Trading Agents and other personnel. Each 

Participant will ensure on an ongoing basis that none of its Responsible Trading Agents is subject 

to a disqualification pursuant to any Applicable Law (unless an appropriate exemption has been 

obtained with respect thereto) and that each of its Responsible Trading Agents (as applicable will 

be technically proficient in respect of the use of the Exchange Trading System. Each Participant 

shall have procedures for performing day-to-day monitoring of its Responsible Trading Agents to 

ensure that each will conduct its business in a fair and equitable manner and in accordance with 

the Rules of the Exchange. 

XXI-3 CX Trading Privileges 

(a) For purposes of these Rules, any reference to (i) the Trading Privileges of a CX 

Participant shall also be deemed to refer and apply to the exercise of CX Trading Privileges by any 

of such Participant’s Responsible Trading Agents (ii) a CX Participant submitting or receiving 

orders, bids, offers or Message Traffic into or from the Exchange Trading System or engaging in 

transactions on the CX Division shall be deemed also to refer and apply to any such actions 

engaged in by any of such Participant’s Responsible Trading Agents and (iii) the knowledge of, 

or matters known to, any Participant shall be deemed also to refer to and include the knowledge 

of, or matters known to, its Responsible Trading Agents and other personnel. 

(b) Each Responsible Trading Agent shall be deemed to be a “member” of the 

Exchange for all purposes under the CEA. 

XXI-4 Eligibility 

(a) A CX Participant initially and on a continuing basis, thereafter, is eligible to hold 

either long or short positions in CX Division Contracts only for their proprietary CX Trading 

Accounts. In addition, CX Participants must: (i) satisfy all requirements generally applicable to 

CX Participants and Responsible Trading Agents under these Rules and any applicable CX 

Contract Rules; (ii) satisfy such financial criteria as may be prescribed by the Exchange from time 

to time; (iii) have sufficient technical and operational capabilities to fulfill any other obligations 

applicable to CX Participants, or their Responsible Trading Agents as may from time to time be 

required by the Exchange; and (iv) satisfy such other requirements or criteria as may from time to 

time be adopted by the Exchange. 

(b) The Exchange shall have the right to establish more than one class of CX 

Participants, which shall include Referring Participants as a separate class, in connection with the 

trading of particular CX Division Contracts, and which shall include Floor Traders as a separate 

class, in connection with the trading of all CX Division Contracts, subject to and in accordance 

with the applicable Exchange Rules., (ii)

(i) All Rules that apply to Participants also apply 

to Referring Participants except where the context requires 

otherwise. All rules that apply to Referring Participants shall 

only apply to such Persons. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

(ii) All Rules that apply to Participants also apply 

to Floor Trader Participants. A Floor Trader Participant shall 

have the same obligations, responsibilities, and rights as a 

Participant. 

(c) Each applicant to become a CX Participant that is a natural person must: (A) have 

a mechanism that is acceptable for transferring funds to and receiving funds from the applicant’s 

CX Clearing Account, (B) have attained the age of majority in the individual’s place of residence, 

(C) appoint one or more Responsible Trading Agents pursuant to Rule XXI-2, and (D) satisfy such 

other requirements or criteria as may from time to time be adopted by the Exchange. 

(d) Each applicant to become a CX Participant that is an Entity must: (A) be duly 

organized and in good standing in its jurisdiction of organization, (B) have a mechanism that is 

acceptable for transferring funds to and receiving funds from the applicant’s Clearing Account, 

(C) have the legal authority and be duly authorized and empowered to become a Participant and 

to effect transactions on the Exchange, (D) appoint one or more Responsible Trading Agents 

pursuant to Rule XXI-2, and (E) satisfy such other requirements or criteria as may from time to 

time be adopted by the Exchange. 

(e) Notwithstanding anything in the foregoing paragraphs (c) or (d) to the contrary: 

(i) In considering any applicant for status as a 

CX Participant, Responsible Trading Agent, or Referring 

Participant, the Exchange may request additional information, 

or employ such other means that it deems desirable or 

appropriate, to ascertain relevant facts bearing on the 

applicant’s qualifications; and 

(ii) The Exchange may limit a Participant to 

trading specified CX Contract(s) based upon financial, 

regulatory or other criteria established by the Exchange, or the 

Exchange may limit a Referring Participant to acting in the 

capacity of Referring Participant for specific Contracts based 

upon regulatory or other criteria established by the Exchange. 

(f) The Exchange in its sole discretion may deny (or may condition) the grant of CX 

Trading Privileges to any CX Participant or any Responsible Trading Agent of any CX Participant. 

(i) If such Person is unable satisfactorily to 

demonstrate a capacity to adhere to all applicable Rules of the 

Exchange, Rules of the CX Clearinghouse and CFTC 

Regulations, including, to the extent applicable, those 

concerning record-keeping, reporting, finance and trading 

procedures; 

(ii) if such Person would bring the Exchange into 

disrepute; or 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

(iii) for such other causes as the Exchange may 

determine from time to time. 

(g) The Exchange in its sole discretion may condition or revoke a CX Participant’s CX 

Trading Privileges or, in the case of an Responsible Trading Agent, condition or revoke its 

association with a Participant or its access rights, respectively, if any of the circumstances specified 

in the preceding paragraph () exist with respect to such CX Participant, or Responsible Trading 

Agent, or if such CX Participant or Responsible Trading Agent: 

(i) fails to meet any of the qualification 

requirements for CX Trading Privileges or association after 

such CX Trading Privileges or association have been 

approved; 

(ii) fails to meet any condition placed by the 

Exchange on such CX Trading Privileges, or association; or 

(iii) violates any agreement with, or Rule of, the 

Exchange. 

(h) Futures commission merchants or other intermediaries shall not be permitted to 

submit trades on the CX Division for execution on behalf of customers. 

(i) No Participant may refer or solicit another Person to become a CX Participant or to 

solicit another CX Participant to enter an Order on the Exchange, including providing related 

software, technical or other associated services except in accordance with the provisions of Rule 

XXI-6. 

XXI-5 Application for CX Trading Privileges 

(a) Each application to become a CX Participant shall be in such form as may from 

time to time be prescribed by the Exchange. Each applicant to become a CX Participant shall 

promptly update the application materials if any of the information provided therein becomes 

inaccurate or incomplete. The Exchange shall act upon, and approve or disapprove, any such 

application without unreasonable delay. 

(b) Each applicant to become a CX Participant shall: 

(i) submit to the Exchange executed forms of all 

application documents; 

(ii) pay to the Exchange such initial fee as may 

be prescribed by the Exchange from time to time; and 

(iii) agree in written or electronic form to abide by 

these Rules and Applicable Law. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

(c) Upon the Exchange’s approval of an applicant’s CX Participant application and 

upon the Exchange’s confirmation that the initial fee payable by the applicant has been paid to the 

Exchange, the applicant shall become a CX Participant and as a CX Participant obtain CX Trading 

Privileges applicable to CX Division. 

(d) Any Person who has been denied CX Trading Privileges or granted only conditional 

CX Trading Privileges pursuant to this Rule XXI-5, and any Person who is not permitted to keep 

its CX Trading Privileges or whose CX Trading Privileges are conditioned pursuant to this Rule 

XXI-5, may appeal the Exchange’s decision in accordance with the provisions of Chapter XIV 

relating to disciplinary proceeding appeals. 

XXI-6 Referral and Solicitation of Participants and Orders 

(a) Notwithstanding anything to the contrary in these Rules, a CX Participant may refer 

or solicit another Person to become a CX Referred Participant or may solicit a CX Referred 

Participant’s Orders, and may provide software, technical or other associated services, upon being 

notified by the Exchange under the procedures specified in paragraph (b) that the CX Referring 

Participant satisfies, and remains in compliance with, the following conditions and is being 

permitted by the Exchange to act in the capacity of CX Referring Participant. The CX Referring 

Participant must: 

(i) be a CX Participant in good standing with the 

Exchange; 

(ii) if applicable, be registered with the National 

Futures Association in an appropriate registration category, or 

be exempt from such registration; 

(iii) submit to the Exchange such additional forms 

and agreements as the Exchange shall require and promptly 

update any information provided therein that becomes 

inaccurate or incomplete; 

(iv) maintain an amount of funds on deposit (the 

level of such amount(s) to be determined by the Exchange in 

the Exchange’s sole discretion) for as long as the person 

remains a CX Referring Participant of the Exchange. Such 

amount, minus any financial obligations payable to the 

Exchange, shall be returned to the CX Referring Participant 

upon the CX Referring Participant’s withdrawal from the 

Exchange or revocation of such Person’s status as a CX 

Referring Participant; provided however, that in establishing 

the level of such deposits, the Exchange may implement a 

tiered structure with the level of deposit corresponding to a 

particular category of CX Participant; 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

(v) provide a means acceptable to the Exchange 

of identifying to the Exchange those CX Participants which it 

refers or solicits, and the referred CX Participant’s 

acknowledgment that it has been referred; 

(vi) demonstrate sufficient technical and 

operational capabilities to meet Exchange technical 

specifications and requirements as specified by the Exchange 

from time to time; 

(vii) solicit or refer Persons to become a CX 

Participant or solicit their Orders to the Exchange via: 

(A) electronic media of the CX Referring Participant approved 

by the Exchange; 

(B) electronic media made available to the Referring Participant 

by the Exchange; or 

(C) such other method as the Exchange may accept from time to 

time; 

(viii) satisfy such other requirements or criteria as 

may from time to time be adopted by the Exchange under these 

Rules. 

(ix) For the avoidance of doubt, a CX Referring 

Participant shall not enter Orders into the Exchange Trading 

System on behalf of a CX Referred Participant as the 

Responsible Trading Agent of a CX Referred Participant or in 

any other capacity. 

(b) Following a request by a CX Participant for a determination by the Exchange that 

the CX Participant meets the conditions of paragraph (a) to act as a CX Referring Participant, the 

Exchange shall notify such CX Participant without unreasonable delay whether such CX 

Participant is permitted by the Exchange to refer or solicit CX Participants or their Orders. 

Provided, however, the Exchange may limit its permission to particular CX Division Contract(s). 

(c) The Exchange in its sole discretion may deny, condition or revoke its permission 

to a CX Referring Participant to act as a CX Referring Participant. Any such action may be 

appealed by the CX Referring Participant in accordance with the procedures under the provisions 

of Chapter XIV, provided, however, that such sanction shall continue in effect during the appeal. 

The Exchange may take such action to deny, condition or revoke its permission, if: 

(i) upon request, the CX Referring Participant is 

unable satisfactorily to demonstrate a capacity to adhere to all 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

applicable Rules of the Exchange, Rules of the CX 

Clearinghouse, CFTC Regulations and Applicable Law; 

(ii) at any time the CX Referring Participant fails 

to meet any of the conditions in paragraph (a); 

(iii) the CX Referring Participant fails to meet any 

limitation placed by the Exchange on its permission to the CX 

Referring Participant under paragraph (b); 

(iv) the CX Referring Participant violates any 

agreement with the Exchange; 

(v) the actions or activities of the CX Referring 

Participant would bring the Exchange into disrepute; 

(vi) in the discretion of the Exchange, such action 

is in the best interests of the Exchange or for such other causes 

as the Exchange may determine from time to time. 

(d) Upon granting permission to a CX Referring Participant to act in that capacity, the 

Exchange shall record the referral relationship between a CX Participant and the CX Referring 

Participant in its account records and shall make available daily reports and information about the 

referred account activity in such form and manner as the Exchange shall from time to time 

determine. The Exchange shall disclose to CX Referred Participants whether it makes payments 

for referrals to Referring Participants. 

CHAPTER XXII 

CX DIVISION TRADING STANDARDS 

XXII-1 CX Division Contracts 

(a) The Exchange shall determine which CX Division Contracts are available for 

trading from time to time and, subject to the provisions of Rule XXIV-1, approve rules containing 

the specifications for such CX Division Contracts, provided that certifications or applications with 

respect to such CX Division Contracts shall be submitted to the CFTC as required by the CEA and 

CFTC Regulations. 

(b) CX Division Contracts shall be traded by a CX Participant only for its own account 

and be self-cleared though CX Clearinghouse. 

XXII-2 CX Division Trading Days and Trading Hours 

(a) The Exchange shall from time to time determine (a) the Trading Days during any 

particular calendar year and (b) the Trading Hours with respect to any particular CX Division 

Contract. All time references shall be based on local time prevailing in The City of New York, 

New York, unless otherwise expressly set forth in the relevant CX Division Contract Rules. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Opening times start on the first second of the minute cited. Closing times end on the first second 

of the minute cited. Trading Hours may vary among different CX Division Contracts. No CX 

Participant may make any bid or offer for, or engage in any transaction in, any CX Division 

Contract before or after such hours. 

(b) Trading will be suspended during periods the Exchange schedules for routine 

maintenance and during any announced periods of non-routine maintenance. In the event that 

trading is suspended either for routine or non-routine maintenance, notice will be given to CX 

Participants as promptly as practicable both by posting of a notice on the Exchange’s website and 

by e-mail directly to each Participant. 

(c) The Exchange may from time to time adopt procedures for the opening or closing 

of trading in any CX Division Contract. The Control Desk will be staffed and operate at all times 

during the Trading Hours of any CX Division Contract. No Person may make any bid or offer for, 

or engage in any transaction in, any CX Division Contract before or after such hours. 

XXII-3 Opening and Closing Trading in CX Division Contracts 

The Exchange may from time to time adopt procedures for the opening or closing of trading 

in any CX Division Contract which shall be incorporated into the operation of the Exchange 

Trading System. 

XXII-4 CX Division Contract Order Entry 

The Responsible Trading Agents of each CX Participant shall enter orders by electronic 

transmission to and shall be required to provide the information required by the Exchange Trading 

System for entry of an order to buy or sell such CX Division Contract. The Exchange shall maintain 

an electronic record of those entries. Each CX Participant shall be responsible for any and all 

orders in each of its Trading Accounts to be entered by any of its Responsible Trading Agents. 

XXII-5 Acceptable CX Division Contract Orders 

The order type or types available on the Exchange Trading System for any CX Division 

Contract is at the discretion of the Exchange from among the Available Order Types supported by 

the Exchange Trading System for CX Division Contracts. 

XXII-6 Information Regarding CX Contract Orders 

(a) The Exchange may make information regarding Orders (including prices bid or 

offered), and any other matters it may deem appropriate, available to Participants, and their 

Responsible Trading Agents and other Persons at such times and in such manner (whether through 

the Exchange Trading System, a ticker, financial information services or otherwise) as it may 

consider necessary or advisable from time to time. 

(b) Each Participant, Responsible Trading Agent or other Person receiving any such 

information through the Exchange Trading System is expressly prohibited from redistributing such 

information unless expressly permitted by the Exchange. Employees and agents of the Exchange 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

shall have access to the offices of any Participant and each of its Responsible Trading Agents or 

other Persons with receiving information through the Exchange Trading System during regular 

business hours in order to observe the compliance by such persons with this Rule XXII-6. 

XXII-7 Permissible Pre-Execution Discussions On CX Division 

(a) Responsible Trading Agents seeking to execute a pre-negotiated transaction must 

wait for a reasonable period of time, which shall be presumed to be not less than 15 seconds after 

the initial Order is submitted to the Exchange Trading System, before submitting the opposite side 

Order. 

(b) Except in the case of transactions effected pursuant to this Rule XXII-7, no 

Responsible Trading Agents shall enter through the Exchange Trading System into a pre-discussed 

or pre-arranged transaction. 

XXII-8 Errors, Trade Cancellation and Price Adjustments of CX Division 

Contracts 

(a) If an Order for a CX Division Contract was incorrectly executed or rejected by the 

Exchange Trading System, a Participant or its Responsible Trading Agent may, within ten (10) 

minutes thereafter, request review of the Order by providing the confirmation number for the Order 

and stating the grounds for the disagreement. 

(b) Upon receipt by the Exchange of a request for review of an Order for a CX Division 

Contract and the accompanying confirmation number, the Exchange will review its electronic audit 

trail to determine if the Exchange Trading System correctly interpreted and executed the Order. 

Such review will be completed (i) on the same Business Day if the Exchange received such request 

for review prior to 12:00 Noon on any Business Day or (ii) by the end of the following Business 

Day if such request was received (x) on or after 12:00 Noon on any Business Day or (y) on any 

day that is not a Business Day. 

(c) If the review described in Rule XXII-8(b) reveals that the Order was incorrectly 

handled, then the Order in question shall be cancelled in the Trading Accounts of all affected 

Participants. 

(d) If the review described in Rule XXII-8(b) reveals that the Order was correctly 

handled, then no adjustment shall be made in the Trading Accounts of any Participants. 

(e) Notwithstanding anything to the contrary in this Rule XXII-8, if the Exchange 

determines in its sole discretion that the execution of any trade was the result of Orders being 

incorrectly processed by the Exchange Trading System, or any other cause beyond the control of 

any CX Participant, then the Exchange may cancel such trade in the Trading Accounts of all 

affected Participants. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

XXII-9 Investment of Certain CX Participant Account Funds 

CX Participant funds on deposit with the Exchange and funds in the Trading Accounts of 

such CX Participants (i.e., the account containing the funds paid by CX Participants to purchase 

or sell CX Division Contracts and which are to be used to pay CX Participants at expiration of CX 

Division Contracts) will be segregated in accordance with the CFTC’s Regulations. The Exchange 

may invest such funds subject to the limitations and conditions set forth in CFTC Regulation 1.25. 

The Exchange will pay interest to CX Participants’ Trading Accounts at a rate to be determined 

by the Exchange on funds in CX Participants’ Trading Accounts in excess of an amount to be 

determined by the Exchange. The Exchange will retain all profit from investment of the Participant 

funds not paid to Participants in accordance with the preceding sentence.

XXII-10 Financial Requirements for Order Entry and Executions on the CX 

Division 

(a) Participants are required to have sufficient funds on deposit with the CX 

Clearinghouse such that any executed Orders for CX Division Contracts will “PASS” the credit 

check as described in Rule XXII-10(h). 

(b) To facilitate compliance with Rule XXII-10(a), the Exchange shall establish a 

maximum CX Contract Order size for each Trading Account of each Participant based upon the 

Participant’s Available Funds, the size of the Participant’s Participant CX Clearing Account, the 

Participant’s trading behavior, and any other factors that the Exchange deems relevant. 

(c) To facilitate compliance with Rule XXII-10(a) the Exchange, in its sole discretion 

and from its own funds, may advance funds for immediate use to a Participant’s CX Clearing 

Account provided that: 

(i) Such Participant has Trading Privileges, 

(ii) such Participant has submitted a bona-fide 

Funds Deposit Request, 

(iii) such Funds Deposit Request is being 

processed in the normal course of banking transactions by the 

CX Clearinghouse, and 

(iv) such amount shall not exceed the lesser of the 

Funds Deposit Request or $1,000. 

(d) Notwithstanding the provisions of paragraph (c) of this Rule, in the event that any 

Funds Deposit Request has not cleared the Participant’s issuing bank or the funds are otherwise 

deemed as non-collectable by the CX Clearinghouse then such Participant shall be subject to a 

summary fine not to exceed $2,500 for each such Funds Deposit Request. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

(e) Nothing hereinabove shall be deemed a limitation or waiver of the CX 

Clearinghouse’s rights to enforce its own rules respecting the collection of Original Margin (as 

defined in the rules of the Clearinghouse). 

(f) The Exchange shall review the maximum Order size for each Trading Account 

within fifteen (15) days of the end of each calendar quarter and at any other time at which the 

Participant deposits funds or withdraws funds from the Participant’s Participant CX Clearing 

Account. The maximum Order size for any Trading Account may be revised by the Exchange at 

any of the foregoing times, or at any time that the Exchange determines it necessary to make any 

such revision based on market conditions, a Participant’s trading activity or other reasons as the 

Exchange deems appropriate. 

(g) Notwithstanding the imposition of the limits described in Rule XXII-4(b) and Rule 

XXII-4(c), the Participant shall remain solely responsible for compliance with the Rules of the 

Exchange and the Rules of the CX Clearinghouse. 

(h) When a bid or offer for a CX Division Contract is entered into the Exchange 

Trading System such that a trade would execute (each such occurrence, a “Matched Trade”), the 

CX Clearinghouse shall undertake an immediate credit check prior to such Matched Trade being 

confirmed to any of the purchaser, the seller or the CX Clearinghouse. The credit check procedures 

shall be as follows: 

(i) For liquidating Orders, or any portion of a 

Matched Trade that represents a liquidating quantity, the credit 

check shall “PASS”. 

(ii) For the establishment of new positions or an 

increase in size of existing positions, or any portion of a 

liquidating trade that would create a new position or add to an 

existing position, the credit check shall PASS if and only if the 

funds immediately available in the applicable CX Participant 

Clearing Account are greater than or equal to the Original 

Margin required to establish the new position or increase an 

existing position. 

(iii) The credit check will “FAIL” if the funds 

immediately available in the applicable CX Participant 

Clearing Account are less than the Original Margin required 

to establish the new position or increase an existing position. 

In such case, the size of the Matched Trade shall be reduced 

such that the minimum quantity of Contracts that would PASS 

the credit check, if any, based on the level of Original Margin 

in the applicable CX Participant Clearing Account, will be 

matched. Any remaining portion of the purchaser’s or seller’s 

Order that would have passed the credit check had the 

purchaser or seller’s Order originally been limited to such 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

amount shall be restored with its original price and time 

priority to the order book and any remaining portion of the 

purchaser’s or seller’s Order that failed the credit check shall 

be cancelled. 

(i) If a standing Limit Order “FAILS”, as described in Rule XXII-4(a), then the 

Exchange will notify the CX Participant of such event via email. 

XXII-11 Reportable Positions 

(a) The Exchange shall meet the requirements of paragraphs (a) through (h) of CFTC 

Regulation 17.00 as they apply to trading on the CX Division with respect to contracts that qualify 

as “exclusively self-cleared contracts” within the meaning of CFTC Regulation 15.00. 

CHAPTER XXIII 

CLEARING OF CX DIVISION CONTRACTS 

XXIII-1 Rules of the CX Clearinghouse 

The clearing services provided by the CX Clearinghouse with respect to CX Division 

Contracts, and the rights and obligations of purchasers and sellers under cleared Contracts 

(including, without limitation, rights and obligations in respect of clearing and settlement, variation 

margin payments and performance at maturity, and in the case of Options on Futures, upon 

exercise thereof), shall be governed by the Rules of the CX Clearinghouse. 

XXIII-2 Clearing Services 

The Exchange may discontinue the clearance of CX Division Contracts through CX 

Clearinghouse and select and substitute another derivatives clearing organization that has been 

approved by the CFTC to clear CX Division Contracts. 

XXIII-3 Transfer of Open Positions to Clearinghouse 

Each CX Participant shall comply in all respects with any statement of policy or other 

notice issued by the Exchange relating to the procedures and processes that must be followed to 

effectuate the transfer of open positions to any clearinghouse. 

XXIII-4 Substitution 

Where a CX Contract is cleared through the CX Clearinghouse, the CX Clearinghouse 

shall be deemed substituted as seller to the buyer and shall also be deemed substituted as buyer to 

the seller, and thereupon the CX Clearinghouse shall have all of the rights and be subject to all of 

the liabilities of the original parties with respect to such contract. 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

XXIII-5 Offsets 

Where a CX Participant buys and sells the same CX Contract for the same delivery, the 

purchases and sales shall be offset to the extent of their equality, as provided for by the Rules of 

the CX Clearinghouse. 

CHAPTER XXIV 

CX DIVISION CONTRACTS 

XXIV-1 Contract Specifications 

The terms and conditions of the existing CX Division Contracts are unchanged (save for 

renumbering) and are published on the website as follows: 

 IX-3003. ATLANTIC NAMED STORM LANDFALL (“ANSLS”) SWAPS 

o https://www.cxmarkets.com/wp-content/uploads/2019/05/CX-ANSLSContract-Rules.pdf

 
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CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

CHAPTER XXV 

CX DIVISION INCENTIVE PROGRAMS 

XXV-1. 2023 Automated Liquidity Provider (ALP) Program 

(a) This incentive program provides the initial liquidity for the Atlantic Named Storm 

Landfall Swaps contracts for the 2023 tropical storm season. 

(b) No direct payments to Participants will be made under this program. 

(c) The Exchange, using its own funds, will allocate an amount not to exceed $25,000 

for this program and such funds will be placed in a CX Participant Clearing Account for this 

purpose. 

(d) Using funds allocated for this program, the exchange will purchase 300 contracts 

at 13 different locations upon the listing of each named storm contract, provided that: 

(i) the named storm is listed on or after June 1, 2023; 

(ii) at the time of listing, the purchase price of contracts is $1.00; 

(iii) the CX Participant Clearing Account has at least $3,900 of available 

funds to cover such purchases. 

(e) Contracts will be purchased at the zip codes closest to the 13 landfall locations of 

tropical storms during the 2021 and 2022 tropical storm seasons. The locations are attached here 

as Schedule A. 

(f) Once purchased, contracts will be retained by the Exchange in a designated 

Participant Account for this program. Accordingly, all such contract purchases will be reported 

as volume and open interest in the normal course. 

(g) Contracts purchased will be held until settlement at the original strike code 

locations. This Participant Account will not engage in strike code switching, as permitted by 

contract rules. 

(h) Contracts will be settled in the normal course for each named storm. Any proceeds 

from settlements will be returned to the Exchange’s Participant Clearing Account in the normal 

course and, therefore, may continue to be used for the program. 

(i) At the end of the 2023 tropical storm season, the Exchange will close its account(s) 

and withdraw any remaining funds. 

(j) This program shall be in effect for the 2023 tropical storm season and may be 

terminated at any time by the Exchange in its absolute discretion upon three (3) days’ notice to 

Participants. 

Initial effective date: June 1, 2023
- 109 - 

CX Division 

© 2010-2023 FMX Futures Exchange, L.P. 

Schedule A 

2021 Landfall Locations 

 29.2N 91.0W 

 32.3N 80.5W 

 29.8N 83.5W 

 40.9N 72.3W 

 41.4N 71.7W 

 29.7N 89.4W 

 41.2N 71.6W 

 29.1N 90.2W 

 29.7N 85.1W 

 28.7N 95.7W 

2022 Landfall Locations 

 26.7N 82.2W 

 33.3N 79.2W 

 27.6N 80.4W