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Cantor Futures Exchange, L.P. 

Rule Amendment Submission 2018-1

February 16, 2018

1. The text of the rule changes to the Cantor Futures Exchange, L.P. Rulebook is attached. 

Additions are underlined and deletions are stricken through. These amended rules have been 

approved by Cantor Futures Exchange, L.P. Capitalized terms, unless otherwise defined herein,

shall possess the meaning(s) ascribed in the Cantor Futures Exchange, L.P. Rulebook.

2. The proposed effective date is ten business days after receipt by the Commodity Futures 

Trading Commission of this submission. 

3. Attached, please find a certification that: (1) these rules comply with the Commodity 

Exchange Act, and the Commission’s regulations thereunder; and (2) concurrent with this 

submission, Cantor Futures Exchange, L.P. posted on its website: (i) a notice of pending 

certification of the rule submissions with the Commission; and (ii) a copy of this submission.

4. A concise explanation and analysis of the operation, purpose, and effect of the amended 

rule appears below.

5. There were no opposing views expressed regarding these amended rules.

CONCISE EXPLANATION AND ANALYSIS OF THE OPERATION, PURPOSE, AND 

EFFECT OF THE CERTIFIED RULE AND ITS COMPLIANCE WITH APPLICABLE 

PROVISIONS OF THE ACT, INCLUDING CORE PRINCIPLES AND THE COMMISSION’S 

REGULATIONS THEREUNDER

Pursuant to Commission Rule 40.6(a)(7)(v), the following is a concise explanation and analysis 

of the operation, purpose, and effect of the amended rules.

For internal business reasons, Cantor Futures Exchange, L.P. (the “Exchange”) is changing its 

corporate name to CX Futures Exchange, L.P. Similarly, Cantor Clearinghouse, L.P. is changing 

its corporate name to CX Clearinghouse, L.P. The Exchange is amending its Rulebook to reflect 

these name changes.

The Exchange has considered the Core Principles for Designated Contract Markets under section 

5(d) of the Commodity Exchange Act in the context of these amended rules and believes the 

amendments are in accordance with these obligations.
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CERTIFICATIONS PURSUANT TO SECTION 5c OF THE COMMODITY EXCHANGE 

ACT, 7 U.S.C. §7A-2 AND COMMODITY FUTURES TRADING COMMISSION RULE 40.6, 

17 C.F.R. §40.6

I hereby certify that:

(1) the amended Rules above comply with the Commodity Exchange Act, and the 

Commodity Futures Trading Commission’s regulations thereunder; and

(2) concurrent with this submission, Cantor Futures Exchange, L.P. posted on its 

website: (a) a notice of pending certification of the above Rules with the 

Commission; and (b) a copy of this submission. 

_________________________

By: 

Title: 

Date: February 16, 2018

Nolan Glantz

COO
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Attachment—Rule Amendments

(Additions are underlined, deletions are struck through)

I-1. Defined Terms

. . . 

Authorized Trader

The term “Authorized Trader” means any natural person who is authorized 

by a Participant to place Orders on the Cantor CX Direct System.

. . . 

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 Cantor CX Futures 

Exchange, L.P. Operating Agreement and the Amended and Restated Limited Liability 

Company Agreement of Cantor CX Futures Exchange Holdings, LLC, dated as of 

February 18, 2009.November 14, 2006.

. . . 

Cantor CX Direct System

The term “Cantor CX Direct System” means the proprietary order entry 

and execution system operated by Cantor and used by the Exchange for the placement 

and execution of Orders or the collection and transmission of information relating to 

Contracts. Participants (and their Authorized Traders) will access the Cantor CX Direct 

System directly via the Internet.

. . . 

Clearinghouse

The term “Clearinghouse” means Cantor CX Clearinghouse, L.P. 

(including its successors), a limited partnership organized under the laws of the State of 

Delaware, or such other third-party clearing organization as the Exchange may 

designate in the future to provide clearing services with respect to any or all of its 

Contracts. 

. . . 
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Exchange

The term “Exchange” means Cantor CX 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.

. . . 

General Partner

The term “General Partner” means Cantor Futures Exchange Holdings, 

LLC, the general partner of the Exchange.

. . . 

Trading Privileges

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

respective Authorized Traders, the right (a) to transmit Orders for certain or all 

Contracts in electronic form directly to the Cantor CX Direct System and (b) to enter into 

the Cantor CX Direct System EFPs and Block Trades involving certain or all Contracts, 

subject to the specific requirements and conditions applicable thereto. 

. . . 

II-1. Board of Directors

The business and affairs of the Exchange shall be 

managed by the Board of Directors in accordance with the Cantor CX 

Futures Exchange, L.P. Operating Agreement and Applicable Law. 

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. 

The appointment of the members of the Board of 

Directors will be made by the General Partner. Cantor Fitzgerald, L.P., 
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theThe sole member of the General Partner, shall make such appointments 

on behalf of the General Partner.

II-7. Officers

The Board of Directors shall appoint a President, one or more Vice Presidents, a 

Secretary, a Treasurer, one or more Assistant Secretaries, one or more Assistant 

Treasurers 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 Cantor Fitzgerald, L.P.the sole member of the General 

Partner or any of its affiliates.

III-1. Participants and Trading Accounts

. . . 

(b) Each Participant and its Authorized Traders shall 

have the right to access the Cantor CX Direct System, including the right to 

place Orders for each of such Participant’s Trading Account(s).

. . . 

III-2. Authorized Traders

. . .

(f) Each Participant may at any time revoke an 

authorization granted by it to any Authorized Trader by disabling such 

authorization in the Cantor CX Direct System.

(g) Without limiting the foregoing, each Authorized 

Trader will consent, in a form satisfactory to the Exchange, to abide by the 

Rules of the Exchange and Applicable Law prior to accessing the Cantor 

CX Direct System, and each Participant will ensure on an ongoing basis 

that (i) none of its Authorized Traders is subject to a disqualification 

pursuant to any Applicable Law (unless an appropriate exemption has 

been obtained with respect thereto), (ii) each of its Authorized Traders will 

be technically proficient, (iii) each of its Authorized Traders will conduct its 

business in a fair and equitable manner, and (iv) each of its Authorized 

Traders will conduct its business in accordance with the Rules of the 

Exchange.
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III-7. Application of Rules and Jurisdiction Following Termination

(a) By accessing, or entering any Order into, the 

Cantor CX Direct System, and without any need for any further action, 

undertaking or agreement, a Participant and its Authorized Traders agree 

(i) to be bound by, and comply with, the Rules of the Exchange, the Rules 

of the Clearinghouse 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 

Authorized Traders. 

. . . 

III-11. Referral and Solicitation of Participants and Orders

(a) Notwithstanding anything to the contrary in these 

Rules, a Participant may refer or solicit another Person to become a 

Referred Participant or may solicit a 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 Referring Participant satisfies, and remains in compliance with, the 

following conditions and is being permitted by the Exchange to act in the 

capacity of Referring Participant. The Referring Participant must:

. . . 

(ix) For the avoidance of doubt, a Referring Participant shall not 

enter Orders into the Cantor CX Direct System on behalf of a Referred 

Participant as the Authorized Trader of a Referred Participant or in any 

other capacity.

. . . 

IV-3. Order Entry

The Authorized Traders of each Participant shall enter Orders by 

electronic transmission to, and shall be required to provide the information required on 

the order entry page of, the Cantor CX Direct System. The Exchange shall maintain an 

electronic record of those entries. Each Participant shall be responsible for any and all 

Orders in each of its Trading Accounts to be entered by any of its Authorized Traders. 
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IV-5. Acceptable Orders

At the discretion of the Exchange, the following types of Orders, as well as 

any other types that may be approved from time to time, may be entered into the Cantor 

CX Direct System by Participants (via their Authorized Traders) with respect to a 

Contract:

(i) Limit Orders. 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 

Cantor CX Direct 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. 

(ii) Market Orders. A “Market Order” is an Order to purchase or 

sell a Contract at the best price available in the Cantor CX Direct System 

at the time the Order is entered. A Market Order will be executed when 

entered to the extent that there are opposite Orders open in the Cantor 

CX Direct System, with any balance cancelled. 

IV-6. Modification and Cancellation of Orders

Any Order that has been entered into the Cantor CX Direct 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 

Cantor CX Direct System. Such modification or cancellation will become effective upon 

the issuance of an acknowledgement by the Cantor CX Direct System of the Cancel 

Order or Cancel Replace Order, as the case may be.

IV-7. Execution of Orders by the Cantor CX Direct System

Orders to buy or sell any Contract are subject to the minimum trading 

requirements specified in the relevant Contract Rules and any margin requirements as 

imposed from time to time in the relevant Contract Rules or by the Clearinghouse. All 

Orders are matched with each other and executed electronically through the Cantor CX 

Direct System in accordance with 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 Cantor CX Direct System, with the Order first entered receiving first 

priority. Without limiting the generality of the foregoing, the algorithm to match Orders 

entered in the Cantor CX Direct System is based upon the following principles:
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. . . 

IV-9. Market Crossing

The Exchange may from time to time adopt procedures for facilitating 

crossing of orders through the Cantor CX Direct System.

IV-10. Information Regarding Orders

The Exchange may make information regarding Orders (including prices 

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

Participants, Authorized Traders and other Persons at such times and in such manner 

(whether through the Cantor CX Direct System, a ticker, financial information services 

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

Each Participant, Authorized Trader or other Person receiving any such 

information through the Cantor CX Direct 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 and each 

of its Authorized Traders during regular business hours in order to observe the 

compliance by such Participant and its Authorized Traders with the immediately 

preceding sentence.

IV-11. Errors 

(a) If an Order was incorrectly executed or rejected by 

the Cantor CX Direct System, a Participant or its Authorized Trader may, 

within ten 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 and the accompanying confirmation number, the 

Exchange will review its electronic audit trail to determine if the Cantor CX 

Direct 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.

. . . 
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(e) Notwithstanding anything to the contrary in this 

Rule IV-11, if the Exchange determines in its sole discretion that the 

execution of any trade was the result of Orders being incorrectly processed 

by the Cantor CX Direct System, or any other cause beyond the control of 

any Participant, then the Exchange may cancel such trade in the Trading 

Accounts of all affected Participants.

IV-15. EFP Transactions

. . . 

(f) The Exchange will review the information 

submitted by the Participants for the EFP transaction and will post the 

transaction to the Cantor CX Direct System if the transaction details are 

complete and accurate in accordance with this Rule. The Exchange will 

immediately publicize information identifying the transaction as an EFP 

trade and identifying the relevant Contract, contract month, quantity and, if 

applicable, whether the transaction involved a put or a call and the strike 

price.

. . .

IV-16. Block Trading

(a) Participants may, subject to the relevant Contract 

Rules, enter into transactions outside the Cantor CX Direct System, at 

prices mutually agreed, with respect to Contracts that have been 

designated by the Exchange for such purpose (each, a “Block Trade 

Contract”), provided that all of the following conditions are satisfied (each 

such transaction, a “Block Trade”): 

. . .

(b) Prior to entering into a Block Trade, an Authorized 

Trader of one participating Participant must apply for a unique identifying 

number (a “Block Trader ID”) by such means as prescribed by the 

Exchange from time to time. Once issued, the Block Trader ID number will 

be valid for a period of 5 minutes only. Block Trades will only be accepted 

from Authorized Traders accessing the Cantor CX Direct System with a 

valid Block Trader ID.

(c) Each party to a Block Trade shall comply with all 

applicable Rules of the Exchange other than those which by their terms 

only apply to trading through the Cantor CX Direct System.
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(d) When negotiating or executing a Block Trade, an 

Authorized Trader must ensure that the price quoted for a Block Trade 

represents a fair price. When determining a fair price, an Authorized 

Trader should take into account the prevailing bids and offers and volume 

currently available in the Cantor CX Direct System.

. . . 

(g) The Exchange will review the information 

submitted by the Participant(s) for the Block Trade and will post the Block 

Trade to the Cantor CX Direct System if the details are complete and 

accurate in accordance with this Rule. The Exchange will immediately 

publicize information identifying the trade as a Block Trade and identifying 

the relevant Contract, contract month, price or premium, quantity and, if 

applicable, whether the transaction involved a put or a call and the strike 

price.

. . . 

IV-19. Emergencies

. . . 

(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 Cantor CX Direct System will automatically 

be cancelled and must be resubmitted by the Participants upon resumption 

of trading in the affected Contracts.
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. . . 

IV-20. Limitation of Liability

EXCEPT AS OTHERWISE PROVIDED IN THESE RULES, AND EXCEPT 

IN INSTANCES WHERE THERE HAS BEEN A FINDING OF WILLFUL MISCONDUCT 

OR GROSS NEGLIGENCE, IN WHICH CASE THE PARTY FOUND TO HAVE 

ENGAGED IN SUCH CONDUCT CANNOT AVAIL ITSELF OF THE PROTECTIONS IN 

THIS RULE IV-20, 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 AUTHORIZED TRADER), 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 CANTOR CX DIRECT SYSTEM OR ANY EXCHANGE 

SERVICES OR FACILITIES USED TO SUPPORT THE CANTOR 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 CANTOR CX DIRECT SYSTEM OR ANY 

EXCHANGE SERVICES OR FACILITIES USED TO SUPPORT THE CANTOR CX 

DIRECT 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 CANTOR CX DIRECT SYSTEM OR ANY 

EXCHANGE SERVICES OR FACILITIES USED TO SUPPORT THE CANTOR CX 

DIRECT 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 AUTHORIZED TRADER). NEITHER THE 

EXCHANGE (INCLUDING ITS AFFILIATES AND ANY CONTRACTORS AND 

SUBCONTRACTORS PROVIDING SERVICES TO THE EXCHANGE) NOR ANY OF 
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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 AUTHORIZED TRADER) FOR, THE ACCURACY, 

TIMELINESS, COMPLETENESS, RELIABILITY, PERFORMANCE OR CONTINUED 

AVAILABILITY OF THE CANTOR CX DIRECT 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 AUTHORIZED TRADER). 

THE EXCHANGE SHALL HAVE NO DUTY OR OBLIGATION TO VERIFY ANY 

INFORMATION DISPLAYED ON THE CANTOR CX DIRECT SYSTEM OR 

OTHERWISE. EACH PARTICIPANT AND EACH PERSON ASSOCIATED WITH A 

PARTICIPANT (INCLUDING ANY AUTHORIZED TRADER) 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 AUTHORIZED TRADER), AS THE CASE MAY 

BE, AND IS NOT AN ADVISOR OR FIDUCIARY OF SUCH PARTICIPANT OR 

PERSON ASSOCIATED WITH A PARTICIPANT (INCLUDING ANY AUTHORIZED 

TRADER), AS THE CASE MAY BE.

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 IV-20) 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 SHALL NOT, TAKEN 

TOGETHER WITH ANY LIABILITY OF THE CLEARINGHOUSE TO SUCH 

PARTICIPANT RESULTING FROM THE ACTS OR OMISSIONS OF THE 

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 CANTOR CX 

DIRECT SYSTEM OR EXCHANGE SERVICES OR FACILITIES USED TO SUPPORT 

THE CANTOR CX DIRECT 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, 
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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 AUTHORIZED TRADER) 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.

NOTWITHSTANDING ANY OF THE FOREGOING PROVISIONS, THIS 

RULE IV-20 SHALL IN NO WAY LIMIT THE LIABILITY OF ANY PERSON ARISING 

FROM ANY VIOLATION OF SUCH PERSON OF THE CEA OR CFTC REGULATIONS 

THEREUNDER. 

V-9. System Security

(a) Each Participant that is an Entity shall at all times 

have at least one employee or agent (each, a “Responsible Agent”) 

designated as its administrator with respect to the use of the Cantor CX 

Direct System by the Authorized Traders of such Participant. Each 

Participant that is a natural person shall serve as its own Responsible 

Agent. The Exchange may prescribe such qualification standards for 

Responsible Agents as it may from time to time determine necessary or 

advisable. Among other things, each Responsible Agent shall (i) have full 

control over access to the Cantor CX Direct System by the Participant 

(including its Authorized Traders) represented by such Responsible Agent 

and (ii) be able to access, and, if required, modify and withdraw, any and 

all Orders placed, or purported to be placed, by the Authorized Traders of 

such Participant. The Responsible Agent or Responsible Agents 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 Responsible Agent or Responsible 

Agents by the Exchange shall be binding on such Participant. Each 
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Participant shall notify the Exchange promptly of any change regarding any 

of its Responsible Agents.

(b) Each Participant shall (i) be solely responsible for 

controlling and monitoring the use of all user identification codes and 

passwords to access the Cantor CX Direct System (collectively, 

“Passwords”) issued to its Authorized Traders and Responsible Agents by 

the Exchange, (ii) provide such Passwords only to its Authorized Traders 

and Responsible Agents, 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 Authorized Traders, 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 any of its Supervised Persons or 

executed by anyone other than an Authorized Trader of such Participant.

(c) Notwithstanding anything to the contrary in Rule 

V-9(b), each Authorized Trader shall have his or her own unique 

Passwords that may be used only by such Authorized Trader and solely for 

the purpose of submitting Orders in respect of the Trading Account for 

which the Authorized Trader has Trading Privileges.

VI-4. Market Demoralization

Orders entered into the Cantor CX Direct 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, 

Authorized Trader and, if applicable, any other Supervised Person who makes 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.

VI-11. Pre-Execution Discussions

(a) Authorized Traders seeking to execute a prenegotiated 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 Cantor CX Direct System, before submitting the opposite 

side Order.
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(b) Except in the case of transactions effected 

pursuant to Rule VI-11(a), no Authorized Traders shall enter through the 

Cantor CX Direct System into a pre-discussed or pre-arranged transaction. 

VII-19. Rights and Responsibilities after Suspension or Termination

(a) When the Trading Privileges of a Participant are, 

or the association of an Authorized Trader with a Participant is, suspended 

for a period of 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 Cantor CX Direct 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 Authorized Trader in question to assert claims against others as 

provided in the Rules of the Exchange. Any such suspension will not 

relieve the Participant or Authorized Trader 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 or Authorized Trader under this Chapter VII for any 

violation of a Rule of the Exchange or provision of Applicable Law 

committed by the Participant before, during or after the suspension.

. . .