136946590

ERIS CLEARING, LLC 

RULEBOOK 

AprilNovember 2019 
AprilNovember 2019 

1 

136946590

TABLE OF CONTENTS 

1. GENERAL3101. Definitions.

3 

102. Interpretation. 6 

103. Date and Time References. 6 

104. Conflicts. 6 

2. GOVERNANCE6201. Purpose, Powers and Authority.

6 

202. Board 7 

203. Committees 7 

204. Officers 7 

205. Eligibility of Officers and Board Members 8 

206. Conflicts of Interest and Misuse of Material, Non-Public Information. 8 

207. Emergencies. 12 

208. Maintenance of Books and Records by the Clearinghouse 14 

3. CLEARING MEMBERS13301. General Eligibility Requirements of Clearing Members.

15 

302. Application and Approval of Clearing Member Status. 17 

303. Duties and Responsibilities of Clearing Members. 18 

304. Authorized Representative. 19 

305. Adequate Resources 20 

306. Notices Required of Clearing Members. 20 

307. Omnibus and Carrying Broker Accounts. 23 

308. Financial Requirements of FCM Clearing Members. 23 

309. Customer Accounts and Member Property Accounts. 24 

310. General Recordkeeping and Reporting Requirements for Clearing Members. 25 

311. Disaster Recovery and Business Continuity FCM Clearing Members 25 

312. Fees. 26 

313. Segregation of Customer Funds and Assets for FCM Clearing Members. 26 

314. Access to Eris Clearing. 26 

315. Digital Asset Collateral. 26 

4. CLEARING, SETTLEMENT, AND DELIVERY OF CONTRACTS 26401. 

Submission of Trades. 28 

402. Clearance and Substitution. 28 

403. Margin. 29 

404. Offset and Settlement. 30 

405. Approved Depository Institutions. 30 

406. Statement of Trades and Contracts. 30 
AprilNovember 2019 

2 

136946590

407. Confirmation to Customers. 31 

408. Transfer Trades. 31 

409. Settlement Prices 31 

410. Delivery. 31 

411. Reporting. 32 

5. OBLIGATIONS OF ERIS CLEARING30501. Limitation of Liability.

32 

502. Clearing Member Default. 34 

503. Investment of Customer Funds 36 

6. SUSPENSION; DISCIPLINARY PROCEEDINGS34601. Suspension.

36 

602. Right of Appeal. 38 

603. Sanctions from Disciplinary Proceedings. 39 

604. Procedures for Disciplinary Proceedings. 39 

605. Discipline by Other Self-Regulatory Organizations. 41 

606. Restriction on or Termination of Clearing Privileges. 41 

607. Just and Equitable Principles of Trade; Acts Detrimental to the Clearinghouse. 42 

7. MISCELLANEOUS40701. Force Majeure.

43 

702. Suspension of Rules. 43 

703. Confidentiality. 44 

704. Information-Sharing Agreements 44 

705. Trading by Officers and Employees Prohibited. 45 

706. Forms; Facsimile Signatures. 46 

707. Governing Law; Legal Proceedings. 46 

708. Dispute Resolution 46 

709. Contracts 44 
AprilNovember 2019 

3 

136946590

1. GENERAL 

101. Definitions. 

Unless the context clearly requires otherwise, the following terms shall have the following 

meanings when used in these Rules: 

(a) “Account” means a Customer Account or a Member Property Account, as context requires, 

used in conjunction with the trading or delivery of commodity products. 

(b) “Appeal Panel” means a panel comprised of individuals appointed by the Board or the 

Chief Compliance Officer to consider appeals under Rule 602. 

(c) “Applicable Law” means any statute, law, regulation, rule or ordinance of any 

governmental authority, including the CEA, CFTC Regulations, State Regulations, and the 

rules or regulations of any relevant Self-Regulatory Organization. 

(d) “Approved Depository Institution” means a bank, trust company or other depository that 

has been approved by Eris Clearing as an acceptable location for depositing Clearing 

Member funds or Collateral, as applicable. 

(e) “Authorized Representative” means an individual designated by a Clearing Member and 

listed with Eris Clearing as having authority to act on behalf of the Clearing Member. 

(f) “Board” means the board of directors of Eris Clearing, as set forth in the LLC Agreement. 

(g) “Business Day” means any day on which the Clearinghouse is open for clearing. 

References in these Rules to a “day” or “Business Day” shall, unless the context otherwise 

requires, mean the “Business Day” corresponding to the trading day of the Exchange. 

(h) “CEA” means the Commodity Exchange Act, as it may be amended from time to time. 

(i) “CFTC” means the U.S. Commodity Futures Trading Commission. 

(j) “CFTC Regulations” means the rules, regulations and interpretations promulgated by the 

CFTC pursuant to the CEA, as in effect from time to time. 

(k) “Clearinghouse” means Eris Clearing LLC. 

(l) “Clearing Member” means an FCM Member or Direct Clearing Member who has 

executed a Clearing Member Agreement, and to whom the Clearinghouse has granted the 

right to clear contracts on the Clearinghouse. 

(m) “Clearing Member Agreement” means the agreement for clearing privileges between 

Eris Clearing and a Clearing Member. 

(n) “Collateral” means digital assets or other assets deposited by a Clearing Member as from 

time to time determined by the Clearinghouse as acceptable in accordance with Rule 

403(b). 
AprilNovember 2019 

4 

136946590

(o) “Committee” means a committee established by the Board or otherwise, pursuant to the 

Rules. 

(p) “Contract” means, as context requires, any futures contract, options contract, or spot 

contract, agreement, or transaction on a commodity (as such term is defined in the CEA or 

CFTC Regulations), which has been approved for clearing by Eris Clearing pursuant to 

these Rules. 

(q) “Customer” shall have the meaning set forth in CFTC Regulation 1.3(k). 

(r) “Customer Account” means an account established by an FCM Clearing Member with 

Eris Clearing in which the FCM Clearing Member maintains trades, positions and Margin 

solely for Customers. 

(s) “Default” means, with respect to a Clearing Member, if such Clearing Member (a) fails to 

satisfy any of its Obligations, (b) fails to deliver funds within the time established therefor 

by Eris Clearing, (c) is expelled or suspended from the Exchange, Eris Clearing or any 

Self-Regulatory Organization, (d) fails to meet the minimum capital and other financial 

requirements of Eris Clearing, or (e) is Insolvent. 

(t) “Direct Clearing Member” means a Person that submits trades for clearing at Eris 

Clearing on behalf of its own account(s), has completed a Clearing Member Agreement 

and has been granted clearing privileges by the Clearinghouse. 

(u) “Directors” means members of the Board. 

(v) “Disciplinary Panel” means a panel comprised of individuals appointed by the Board at 

the recommendation of the Chief Compliance Officer to act in an adjudicative role and 

fulfill various adjudicative responsibilities and duties described in Chapter 6. 

(w) “Emergency” shall have the meaning set forth in Rule 207. 

(x) “Eris Clearing” means Eris Clearing, LLC, a Delaware limited liability company. 

(y) “ErisX” means Eris Clearing and the Exchange collectively. 

(z) “Exchange” means Eris Exchange, LLC and its respective successors. 

(aa) “Exchange Committee” includes the Regulatory Oversight, Exchange Member 

Committee, Nomination, or Exchange Practices Committees of the Exchange, and any 

other future or successor committee of the Exchange. 

(bb) “FCM Clearing Member” means a Person that is registered with the CFTC as a Futures 

Commission Merchant, has completed a Clearing Member Agreement and has been 

granted clearing privileges by the Clearinghouse. 

(cc) “Futures Commission Merchant” or “FCM” shall have the meaning set forth in CFTC 

Regulation 1.3(p). 
AprilNovember 2019 

5 

136946590

(dd) “Government Agency” means the CFTC and/or any other governmental agency or 

department, including State agencies or departments for purposes of spot contracts 

regulating the activities of a Clearing Member. 

(ee) “Insolvent” and “Insolvency” means the Clearing Member has become the subject of a 

bankruptcy petition, receivership proceeding, or an equivalent proceeding. 

(ff) “LLC Agreement” means the Limited Liability Company Agreement of Eris Clearing, as 

amended or restated from time to time. 

(gg) “Margin” means funds or the applicable amount of the deliverable asset required to 

collateralize Contracts as set forth in Rule 403. 

(hh) “Member Property Account” means an account established by a Clearing Member with 

Eris Clearing in which the Clearing Member maintains trades, positions and Margin solely 

on its own behalf. 

(ii) “Obligations” means all financial obligations of a Clearing Member, however arising, 

whether absolute or contingent, direct or indirect, due or to become to be due, arising under 

these Rules or such Clearing Member’s agreements with Eris Clearing. 

(jj) “Officer” has the meaning set forth in Rule 204. 

(kk) “Person” means an individual, sole proprietorship, partnership, limited liability company, 

association, firm, trust, corporation or other entity, as the context may require. 

(ll) “Regulations” means rules, regulations, guidance, or advisories promulgated by the CFTC 

or any applicable State or Federal agency. 

(mm) “Removal Event” means (a) the termination of the Clearing Member Agreement; (b) a 

materially false or misleading representation or warranty made by the Clearing Member to 

Eris Clearing under or in connection with any agreement between Eris Clearing and the 

Clearing Member; (c) the breach by the Clearing Member of the Rules or any of the terms 

or provisions of any agreement between Eris Clearing and the Clearing Member which is 

not remedied promptly after notice from Eris Clearing; (d) a material violation of the rules 

of the Exchange, or (e) a Default by the Clearing Member. 

(nn) “Rule” means a Rule of Eris Clearing either contained in this Rulebook or in guidance or 

notices from Eris Clearing. 

(oo) “Self-Regulatory Organization” shall mean any futures or securities exchange, 

derivatives clearing organization, securities clearing agency, or National Futures 

Association. 

(pp) “Settlement Price” has the meaning set forth in Rule 410. 

(qq) “State Regulation” means, with respect to states in which Eris Clearing is licensed to 

operate as a money transmitter or otherwise permitted to engage in a virtual currency 

business, any regulation related thereto. 
AprilNovember 2019 

6 

136946590

(rr) “Transfer Trade” has the meaning set forth in Rule 408. 

(ss) “UCC” means the Uniform Commercial Code as in effect in the State of Illinois. 

102. Interpretation. 

In these Rules, unless the context clearly requires otherwise, (a) words in the singular include the 

plural and words in the plural include the singular, (b) any gender includes each other gender, (c) 

references to statutory provisions include those provisions, and any rules or regulations 

promulgated thereunder, as amended, and (d) all uses of the word “including” should be construed 

to mean “including, but not limited to.” Headings included herein are for convenience purposes 

only and do not form a part of these Rules. 

103. Date and Time References. 

Unless otherwise specified, all references to dates, times or time periods shall refer to, or be 

measured in accordance with the time in Chicago, Illinois. 

104. Conflicts. 

In the event of a conflict between any Rules of general application and the Rules relating to 

particular types of transactions, the transaction-specific Rules will prevail. 

2. GOVERNANCE 

201. Purpose, Powers and Authority. 

(a) Eris Clearing is registered with the CFTC as a Derivatives Clearing Organization. Eris 

Clearing operates to clear Contracts for its Clearing Members. 

(b) Eris Clearing has the power and authority to operate and regulate its clearing and settlement 

facilities to ensure that such facilities are not used for any improper purpose and to establish 

and enforce Rules and procedures to reduce systemic risk and facilitate the orderly clearing 

of Contracts through Eris Clearing by Clearing Members. 

(c) These Rules specify the process by which a Person may become a Clearing Member and 

the terms and conditions on which Eris Clearing will clear Contracts. These Rules are 

binding on all Clearing Members. 

202. Board 

The Board shall have control and management of the affairs and business of Eris Clearing and 

shall have the powers and duties set forth in the LLC Agreement. Without limiting the generality 

of the foregoing, the Board shall have the power to: (a) adopt, amend, implement and repeal such 

Rules, as will in its judgment best promote and safeguard the interests of Eris Clearing; and (b) 

render interpretations of the Rules, which shall be binding on all Persons having dealings with Eris 

Clearing, including Direct Clearing Members, FCM Clearing Members, and their Customers. 

203. Committees 

(a) The Risk Management Committee is a permanent Committee of the Board. 
AprilNovember 2019 

7 

136946590

(b) The Board may establish such additional Committee(s) as it may from time to time deem 

necessary or advisable and appoint Board members or other individuals to serve on such 

Committees and delegate powers to one or more Committees. 

(c) A Committee shall operate in accordance with its charter or powers as otherwise delegated 

to it by the Board and shall take such actions as may be required by the Rules. 

(d) All information and documents provided to a Committee and all deliberations and 

documents related thereto shall be treated as non-public and confidential and shall not be 

disclosed, except as required by Applicable Law or as necessary to further the business and 

affairs of Eris Clearing or Eris Exchange. 

(e) The actions of each Committee shall be the subject to final review by the Board. 

204. Officers 

The Board shall appoint Officers of Eris Clearing, as it may deem necessary or appropriate from 

time to time, and delegate to such Officers, subject to its oversight, the power and authority to 

manage the business and affairs of Eris Clearing and to establish and enforce rules and procedures 

for the conduct of business by Eris Clearing. Any Officer may also be a director, officer, partner 

or employee of Eris Clearing or any of its affiliates. 

At all times, Eris Clearing shall have a Chief Risk Officer, Chief Compliance Officer, and a 

designated senior officer of the company (whether CEO, President, COO, or other). 

205. Eligibility of Officers and Board Members 

No Person may serve as an Officer or a member of the Board, or any other disciplinary committee, 

arbitration panel or oversight panel if such Person: 

(a) Was found within the past three 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 substantive disciplinary offense; 

(b) Entered into a settlement agreement within the past three years in which any of the findings 

or, in absence of such findings, any of the acts charged included a disciplinary offense; 

(c) Is currently suspended from trading on any market subject to CEA regulation, 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: 

(i) 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 

(ii) A settlement agreement in which any of the findings or, in absence of such findings, 

any of the acts charged included a disciplinary offense; 

(d) 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 self-regulatory organization; 
AprilNovember 2019 

8 

136946590

(e) Is currently subject to or has had imposed on him or her within the past three years a CFTC 

registration revocation or suspension in any capacity for any reason, or has been convicted 

within the past three years of any of the felonies listed in section 8a(2)(D)(ii) through (iv) 

of the CEA; 

(f) 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; or 

(g) Otherwise fails to fulfil reasonable fitness standards of the Clearinghouse, as may be 

determined and modified at the discretion of the Clearinghouse. 

Any Officer or member of the Board, disciplinary committee, arbitration panel or oversight panel, 

or holder of 10% or more ownership interest in Eris Clearing, and any individual nominated to 

serve in any such role, shall immediately notify the Chief Compliance Officer if such individual 

meets one or more of the criteria in Rule 205(a)-(g).For purposes of this Rule 205, the terms “selfregulatory 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), as amended from time to time. 

206. Conflicts of Interest and Misuse of Material, Non-Public Information. 

(a) No Officer, Director, or member of a Committee or “disciplinary committee” or “oversight 

panel” (each as defined in CFTC Regulation 1.69) shall knowingly participate in the 

relevant body’s deliberations or voting in any matter involving an inquiry, investigation, 

disciplinary proceeding or any appeal from a disciplinary proceeding, summary 

suspension, other summary action, or any other matter appropriately the subject of the 

Officer’s, Director’s or member’s authorization under Rules 202, 203 and 204, as 

applicable (each an “Action” and, collectively, “Actions”) or Emergency action taken 

pursuant to Rule 207 (each such Action or Emergency action, a “Self-Regulatory Action”) 

where such member has a “material conflict of interest” (each, an “Interested Person”), 

except as described in Rule 206(d). 

(b) For purposes of Rule 206(a), a “material conflict of interest” means an Officer, Director, 

or member of a Committee or disciplinary committee or oversight panel: 

(i) having a direct and substantial financial interest in the result of the deliberations or 

vote based upon either exchange or non-exchange positions (as referenced in CFTC 

Regulation 1.69), other than a direct or indirect equity or other interest in Eris 

Clearing, that could reasonably be expected to be affected by the Self-Regulatory 

Action, as determined pursuant to Rule 206(c)(i) below. A direct and substantial 

financial interest includes positions in Contracts in accounts of, controlled by, or 

affiliated with the Interested Person or in any other types of direct and substantial 

financial positions of the Interested Person that are reasonably expected to be 

affected by the deliberations or vote; 

(ii) being named as a respondent or potential respondent in the Self-Regulatory Action; 
AprilNovember 2019 

9 

136946590

(iii) being an employer, employee, fellow employee or an Affiliate of a respondent or 

potential respondent in the Self-Regulatory Action; 

(iv) having any significant, ongoing business relationship with a respondent or potential 

respondent in the Self-Regulatory Action, excluding relationships limited to 

executing Contracts opposite each other or to clearing Contracts through the same 

Clearing Firm; 

(v) having a family relationship with a respondent or potential respondent in a SelfRegulatory Action (including the individual’s spouse, co-habitator, former spouse, 

parent, step-parent, child, step-child, sibling, step-brother, step-sister, grandparent, 

grandchild, uncle, aunt, nephew, niece, father-in-law, mother-in-law, brother-inlaw or sister-in-law); and/or 

(vi) any other circumstance that gives rise to a conflict between the Officer’s, Director’s 

or member’s exercise of authority concerning any Self-Regulatory Action and his 

or her personal interests. 

(c) Disclosure and Determination of Conflicts. Prior to consideration of any Self-Regulatory 

Action, each member of the deliberating body who chooses to participate in any 

deliberations or vote will disclose to the Chief Compliance Officer if such member has one 

of the relationships listed in Rule 206(b) above. 

(i) For any matter involving the relationship set forth in Rule 206(b)(i), each member 

of the deliberating body who chooses to participate in any deliberations or vote will 

disclose to the Chief Compliance Officer position information (including 

information regarding positions held by such member, positions held by individuals 

of such member’s family and positions held by a firm with which such member is 

affiliated) that is known to such member with respect to any particular month or 

months that are under consideration, and any other positions which the deliberating 

body reasonably expects could be affected by the significant action, as follows: 

1. gross positions held at the Clearinghouse in such member’s personal 

accounts or “controlled accounts,” as defined in CFTC Regulation 1.3(j); 

2. gross positions held at the Clearinghouse in proprietary accounts, as defined 

in CFTC Regulation 1.17(b)(3), at such member’s affiliated firm; 

3. gross positions held at the Clearinghouse in accounts in which such member 

is a principal, as defined in CFTC Regulation 3.1(a); 

4. net positions held at the Clearinghouse in Customer accounts, as defined in 

CFTC Regulation 1.17(b)(2), at such member’s affiliated firm; and 

5. any other types of positions, whether maintained at the Clearinghouse or 

elsewhere, held in such member’s personal accounts or the proprietary 

accounts of such member’s affiliated firm, that the Clearinghouse 

reasonably expects could be affected by the significant action. 
AprilNovember 2019 

10 

136946590

(d) Procedure. The Chief Compliance Officer will determine whether any member of the 

relevant deliberating body who chooses to participate in any deliberations or vote in a SelfRegulatory Action is subject to a conflicts restriction under this Rule 206(a). 

(i) For any matter involving the relationships listed in Rule 206(b) above, such 

determination will be based upon a review of the following information: 

1. information provided by such member pursuant to Rule 206(c); and 

2. any other source of information that is held by and reasonably available to 

the Clearinghouse. 

(ii) In addition to the review of the information set forth in Rule 206(c)(i) above, for 

any matter involving the relationship set forth in Rule 206(b)(i), such determination 

will be based upon a review of the following information: 

1. Information provided to Eris Clearing by the Exchange, or information 

related to trading and clearing records from the Exchange; 

2. information provided pursuant to Rule 206(c)(i); and, 

3. any other source of information that is held by and reasonably available to 

Eris Clearing taking into consideration the exigency of the significant action 

being contemplated. 

(e) Any Interested Person who would be required otherwise to abstain from deliberations and 

voting pursuant to Rule 206(a) as a result of having a direct and substantial financial 

interest in the result of the deliberations and vote may participate in deliberations, prior to 

a vote on the matter, 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 will fully 

consider the position information specified in Rule 206(c)(i) above which is the basis of 

such member’s substantial financial interest in the Self-Regulatory Action that is being 

contemplated. In making its determination, the deliberating body will consider: 

(i) whether such member’s participation in the deliberations is necessary to achieve a 

quorum; and; 

(ii) whether such member has unique or special expertise, knowledge or experience in 

the matter being considered. 

(f) The minutes of any meeting to which the conflicts determination procedures set forth in 

this Rule 206 apply will reflect the following information: 

(i) the names of all members of the relevant deliberating body who attended such 

meeting in person or who otherwise participated in such meeting 

(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; 
AprilNovember 2019 

11 

136946590

(iii) information on the position information that was reviewed for each member of the 

relevant deliberating body; and 

(iv) any determination made in accordance with Rule 206(d) and (e) above. 

(g) If a determination is made that all members of the relevant deliberating body are Interested 

Persons with respect to a matter subject to a vote by the Board, the Chief Compliance 

Officer will appoint a panel of individuals who are not Interested Persons with respect to 

such matter, which will have the same authority and powers over such matter that the 

Committee would have if the members were not Interested Persons with respect to such 

matter. 

(h) No Director, Officer or member of any committee or panel established by the Board shall 

use or disclose for any purpose other than the performance of his or her official duties and 

responsibilities as an Officer or committee or panel member any material, non-public 

information obtained as a result of the individual’s duties and responsibilities as an Officer 

or committee or panel member. No Director, Officer or committee or panel member shall, 

directly or indirectly, disclose or use at any time, either during his or her association with 

Eris Clearing, or thereafter, any confidential information of which the Board member or 

committee or panel member becomes aware. Each Director, Officer or committee or panel 

member in possession of confidential information shall take all appropriate steps to 

safeguard the information and to protect it against disclosure, misuse, loss and theft. 

(i) Notwithstanding Rule 206(h), a Director, Officer or committee or panel member may 

disclose confidential information if required by law or a court order to be revealed to the 

United States Department of Justice or the CFTC. 

(j) For the purposes of Rule 206(h), the terms “material information” and “nonpublic 

information” shall each have the meaning set forth in CFTC Regulation 1.59(a). 

207. Emergencies. 

(a) During an Emergency, the Board may implement temporary emergency procedures and 

rules (“Emergency Rules”), subject to applicable provisions of the CEA and CFTC 

Regulations. If an Officer of the Clearinghouse determines that Emergency Rules must be 

implemented with respect to an Emergency before a meeting of the Board can reasonably 

be convened, then the Officer, in consultation and with the approval of the Chief 

Compliance Officer, shall have the authority, without Board action, to implement any 

Emergency Rules with respect to such Emergency that he or she deems necessary or 

appropriate to respond to such Emergency. 

(b) Pursuant to this Rule 207, Emergency Rules may require or authorize Eris Clearing, the 

Board, any Committee, or the Officers of Eris Clearing to take actions necessary or 

appropriate to respond to the Emergency, including, but not limited to, the following: 

(i) Suspending or curtailing clearing or limiting clearing to liquidation only (in whole 

or in part); 
AprilNovember 2019 

12 

136946590

(ii) Extending or shortening the expiration date and/or the last settlement date for 

Contracts; 

(iii) Providing alternative settlement mechanisms; 

(iv) Ordering the liquidation of Contracts, the fixing of a Settlement Price, or the 

reduction of positions; 

(v) Extending, limiting or changing the hours of operation of Eris Clearing; 

(vi) Temporarily modifying or suspending any provision of the Rules; 

(vii) Changing the amount of money to be paid in connection with a Contract, whether 

previously or thereafter delivered; and/or 

(viii) Requiring Clearing Members to meet special Margin requirements. 

(c) For the purposes of this Rule 207, “Emergency” is defined as any occurrence or 

circumstances which, in the opinion of the Board, an Officer, or a Committee or Exchange 

Committee, requires immediate action, and that threatens, or may threaten, the fair and 

orderly settlement or integrity of any Contract, including, without limitation, the following: 

(i) Any circumstance that may materially affect the performance of a Contract; 

(ii) Any action taken by the United States government, a foreign government, 

Government Agency, Self-Regulatory Organization, state or local governmental 

body, or market or exchange (foreign or domestic) that may have a material adverse 

effect on the clearing of Contracts through Eris Clearing or the settlement, legality 

or enforceability of any Contract; 

(iii) Any actual, attempted, or threatened corner, squeeze, congestion, manipulative 

activity or undue concentration of positions in a Contract; 

(iv) Any circumstance that may have a severe, adverse effect upon the functions and 

facilities of Eris Clearing, including, but not limited to, acts of God, pandemics, fire 

or other natural disasters, bomb threats, acts of terrorism or war, severely inclement 

weather, or failure or malfunction of all or a portion of the clearing systems of Eris 

Clearing, or other system breakdowns or interruptions such as power, computer, 

communication or transportation systems or the Internet; 

(v) The Insolvency of any Clearing Member or the imposition of any injunction or 

other restraint by any Government Agency, court or arbitrator upon a Clearing 

Member which may affect the ability of a Clearing Member to satisfy its 

Obligations; 

(vi) Any circumstance in which it appears to the Board that a Clearing Member: 

1. Has failed to perform on a Contract; 

2. Is Insolvent; 
AprilNovember 2019 

13 

136946590

3. Is otherwise in Default; 

4. Is in such financial or operational condition or is conducting business such 

that the Clearing Member cannot be permitted to continue in business 

without jeopardizing the safety of funds of Eris Clearing, Clearing Members 

or the funds of Customers; or 

(vii) Any other unusual, unforeseeable or adverse circumstance as determined by the 

Board or the Officers of the Clearinghouse. When Eris Clearing determines that the 

Emergency has been reduced sufficiently to allow Eris Clearing to resume normal 

functioning, any such actions will be terminated. 

(d) Whenever Eris Clearing takes action to respond to an Emergency (including, without 

limitation, the actions set forth in paragraph (b) above), it will, where possible, ensure that 

notice is timely given to Clearing Members 

(e) Eris Clearing will use reasonable efforts to notify the CFTC prior to implementing, 

modifying or terminating an Emergency Rule. If such prior notification is not possible or 

practicable, Eris Clearing will notify the CFTC as soon as reasonably practicable, but in all 

circumstances within twenty-four hours of the implementation, modification or termination 

of such Emergency Rule. In all cases, Eris Clearing will act in accordance with CFTC 

rules on Emergency rule certifications under CFTC Regulation 40.6. 

(f) Upon taking any action in response to an Emergency, Eris Clearing will document the 

decisions and deliberations related to such action. Such documentation will be kept for at 

least five years, consistent with the Clearinghouse Recordkeeping Policy, following the 

date on which the Emergency ceases to exist or to affect Eris Clearing, and all such 

documentation will be provided to the CFTC upon request. 

208. Maintenance of Books and Records by the Clearinghouse 

(a) Eris Clearing shall keep, or cause to be kept, complete and accurate books and records of 

accounts of the Clearinghouse, including, without limitation, all books and records required 

to be maintained pursuant to the CEA, CFTC Regulations, and State Regulations. 

(b) Eris Clearing shall retain all such books and records for at least five (5) years, or such 

longer period as may be required under Applicable Law, and shall make such books and 

records readily accessible for inspection by the CFTC, the United States Department of 

Justice or such other governmental or regulatory authority, as required under Applicable 

Law. 

3. CLEARING MEMBERS 

301. General Eligibility Requirements of Clearing Members. 

(a) The Clearinghouse imposes eligibility requirements for Clearing Members, and may 

modify these requirements in order to maintain an orderly clearing process and mitigate 

risk to the Clearinghouse and other Clearing Members. 
AprilNovember 2019 

14 

136946590

(b) All Clearing Members and prospective Clearing Members who wish to enter into a 

Clearing Member Agreement will be subject to Clearinghouse Anti-Money Laundering 

policies and procedures, designed to achieve and monitor compliance with the 

requirements of the Bank Secrecy Act and the regulations promulgated thereunder, or 

otherwise, by the Department of the Treasury or other federal agencies and bureaus. 

(c) All Clearing Members are subject to all Rules, as well as all rules of the Exchange, whether 

contained in the Exchange Rulebook, or in Exchange guidance or notices. 

(d) Each applicant for qualification as a Clearing Member must satisfy the following 

requirements at the time of application, and at all times as a Clearing Member: 

(i) Applicant must not be subject to any economic or trade sanctions programs 

administered by OFAC or other relevant U.S. or non-U.S. authority and must not 

be listed on OFAC’s List of Specially-Designated Nationals and Blocked Persons; 

(ii) It shall enter into a Clearing Member Agreement with Eris Clearing, pursuant to 

which it shall agree, among other things, to: (1) abide by all Eris Clearing Rules 

and to cooperate in their enforcement; (2) be responsible, even after it has 

withdrawn as a Clearing Member, for any violations of Eris Clearing Rules 

committed by it while it was a Clearing Member; and (3) continue to meet all 

requirements applicable to Clearing Members, including all financial requirements 

provided by these Rules; 

(iii) It shall have received all necessary approvals and consents from all applicable 

regulatory authorities and Government Agencies to permit it to conduct the 

business of a Clearing Member; 

(iv) Applicant must have one or more accounts that has been approved by Eris Clearing 

for purposes of depositing and withdrawing funds or Collateral at Eris Clearing; 

(v) It shall be engaged in or demonstrate immediate capacity to engage in the conduct 

of the business of a Clearing Member; 

(vi) Applicant must not be prohibited from using the services of the Exchange for any 

reason whatsoever; 

(vii) It shall continuously satisfy any minimum commercial, integrity, financial, credit, 

operational capability and competence standards, as may be established by Eris 

Clearing from time to time; 

(viii) Applicant must maintain adequate financial resources and credit as may be 

determined by the Clearinghouse from time to time and published on the Eris 

Clearing website; and 

(ix) Applicant must not have filed for bankruptcy, and not be subject to a current 

bankruptcy proceeding. 
AprilNovember 2019 

15 

136946590

(e) In addition to the requirements set forth in paragraph (d), each applicant for qualification 

as an FCM Clearing Member must satisfy the following requirements at the time of 

application, and at all times as an FCM Clearing Member: 

(i) It shall be a corporation, limited liability company, partnership or other entity 

approved by Eris Clearing, duly organized and in good standing in its state of 

organization; 

(ii) It shall maintain back-office facilities staffed with experienced and competent 

personnel or have entered into a facilities management agreement in form and 

substance acceptable to Eris Clearing; and 

(iii) It shall maintain minimum regulatory capital in excess of the greater of (1) 

$5,000,000 and (2) any applicable capital requirements imposed on applicant by 

the CFTC, another Government Agency or Self- Regulatory Organization. 

(f) In addition to the requirements set forth in paragraph (d), each applicant for qualification 

as a Direct Clearing Member must satisfy the following requirements at the time of 

application, and at all times as a Direct Clearing Member: 

(i) Have the ability to make and take delivery of any Contract in which it trades; 

(ii) Have banking relationships sufficient to deposit U.S. dollars with the 

Clearinghouse settlement bank; 

(iii) On a daily basis reconcile its records against those of the Clearinghouse; 

(iv) Provide updated positions each business day by the time established by the 

Clearinghouse; 

(v) Identify an Authorized Representative to be contacted in the event of any issues 

related to clearing. 

(g) The Board may, in its sole discretion, grant exemptions or guidance to the requirements set 

forth in this Rule 301 for Clearing Members if it determines that such an exemption will 

not jeopardize the financial integrity of Eris Clearing. Additionally, the Board or Risk 

Committee may require applicants meet additional requirements, provide additional 

information for evaluation, or refuse to admit any Person as a Clearing Member if, at their 

sole and absolute discretion, they determine that admission of such Person would 

undermine the financial integrity or reputation of the Clearinghouse. 

302. Application and Approval of Clearing Member Status. 

(a) Applicants for Clearing Member status shall submit an application in the form prescribed 

by Eris Clearing, financial statements and any other documentation as Eris Clearing shall 

require and shall enter into a Clearing Member Agreement with Eris Clearing. 

(b) Eris Clearing may review the books and records of any applicant or Clearing Member and 

take such other action as it may deem appropriate to investigate an applicant’s or Clearing 

Member’s qualifications. FCM Clearing Members shall, at time of application and 
AprilNovember 2019 

16 

136946590

thereafter as required by Eris Clearing, submit statements of its financial condition and 

other financial records as shall be prescribed from time to time. 

(c) Eris Clearing shall have the sole discretion to determine whether any applicant, or any 

existing Clearing Member, meets its clearing privileges qualifications. The Clearinghouse 

shall have no liability to any applicant or Clearing Member who is denied or loses Clearing 

Member status. 

(d) The Board, or if such responsibility is delegated, then the Chief Compliance Officer or 

other Officer of the Clearinghouse shall have final authority to grant or deny an application 

to become a Clearing Member and shall deny the application of any Person which does not 

meet the eligibility requirements established pursuant to Rules 301, 302 and 303. 

(e) If the Board or delegated Officer grants an application to become a Clearing Member, Eris 

Clearing shall promptly give the applicant written notice thereof. The applicant shall 

thereafter become a Clearing Member at such time as the applicant has filed with Eris 

Clearing such agreements and documents, and performed such undertakings as Eris 

Clearing may require; provided, however, that if such applicant has not complied with the 

foregoing provisions within 30 days after the applicant was given written notice of approval 

of its application, the application shall be deemed to have been withdrawn. 

(f) If, in accordance with paragraph (d) of this Rule 302, Eris Clearing denies an application 

to become a Clearing Member, Eris Clearing shall give the applicant notice of the Board’s 

decision, setting forth the grounds therefor, and such decision shall be the final action of 

Eris Clearing. 

(g) By virtue of obtaining clearing privileges, a Clearing Member shall not obtain any equity 

or other interest in Eris Clearing, including voting rights or rights to receive any dividends 

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

Eris Clearing or otherwise. All such rights shall be owned exclusively by the members of 

Eris Clearing, as specified in the LLC Agreement. 

303. Duties and Responsibilities of Clearing Members. 

(a) Any Person initiating or executing a transaction in Contracts to be cleared by Eris Clearing, 

and any Person for whose benefit such a transaction has been initiated or executed, 

expressly consents to the jurisdiction of the Clearinghouse and agrees to be bound by and 

comply with the Rules of the Eris Clearing in relation to such transactions and Contracts, 

including, but not limited to, rules requiring cooperation and participation in investigatory 

and disciplinary processes. Each Clearing Member shall: 

(i) Comply with and act in a manner consistent with, and cause its Authorized 

Representatives and employees to comply with an act in a manner consistent with, 

the Rules; 

(ii) Guarantee and assume responsibility for all Contracts submitted by it or for which 

it authorizes another Person to submit in its name for clearing; 
AprilNovember 2019 

17 

136946590

(iii) Keep the passwords assigned by Eris Clearing confidential; 

(iv) At all times maintain one or more accounts that has been approved by Eris Clearing 

for purposes of depositing and withdrawing funds or Collateral at Eris Clearing, 

and promptly inform Eris Clearing of any changes to any of the foregoing 

account(s) 

(v) Promptly review and, if necessary, respond to all communications sent by Eris 

Clearing; 

(vi) Be responsible for violations of the Rules committed by it, its Authorized 

Representative or employees; 

(vii) Not knowingly mislead or conceal any material fact or matter in any dealings or 

filings with Eris Clearing or in response to any proceeding; 

(viii) Cooperate with Eris Clearing and any Government Agency in any inquiry, 

investigation, audit, examination or proceeding; 

(ix) Observe high standards of integrity, commercial honor, fair dealing, and just and 

equitable principles of trade in relation to any aspect of its business connected with 

or concerning Eris Clearing. 

(b) In addition to the requirements in 303(a)(i) through 303(a)(ix) above, each FCM Clearing 

Member shall also: 

(i) Provide appropriate staff in its offices during specified hours, on Business Days 

and otherwise, when such is deemed necessary by Eris Clearing to ensure the 

integrity of its systems or as otherwise deemed necessary for the protection of the 

Eris Clearing; 

(ii) Have written risk management policies and procedures in place to ensure it is able 

to perform certain basic risk and operational functions at all times and to make 

information regarding its risk management policies, procedures and practices 

available to Eris Clearing or the CFTC upon request. At a minimum, the following 

areas must be addressed in the Clearing Member’s policies and procedures, taking 

into account the Clearing Member’s business and products offered for clearing 

(iii) Monitoring the credit risks of accepting trades, including give-up trades, of its 

Customers; 

(iv) Monitoring the risks associated with proprietary trading; 

(v) Limiting the impact of significant market moves through the use of tools such as 

stress testing or position limits; 

(vi) Maintaining the ability to monitor account activity on an intraday and overnight 

basis; 
AprilNovember 2019 

18 

136946590

(vii) Ensuring order entry systems, including third party systems connected to any 

exchange, include the ability to set automated credit controls or position limits or 

requiring a firm employee to enter orders; and Defining sources of liquidity for 

increased settlement obligations; 

(viii) Ensuring that all trades placed by Customers of the FCM Clearing Member are fully 

collateralized. 

304. Authorized Representative. 

(a) Each Clearing Member shall designate one or more Authorized Representatives to sign all 

instruments, correct errors, perform such other duties as may be required under the Rules 

and transact all business in connection with the operations of Eris Clearing. Each Clearing 

Member must provide Eris Clearing with current contact and other requested information 

for each of its Authorized Representatives. 

(b) To designate an Authorized Representative, a Clearing Member must provide the 

information requested and conform to the procedures and requirements established by Eris 

Clearing. By agreeing to become an Authorized Representative, an individual agrees to be 

bound by the duties and responsibilities of an Authorized Representative and to be subject 

to, and comply with, the Rules and Obligations to the extent applicable. 

(c) Eris Clearing will promptly notify a Clearing Member of the approval of nominated 

Authorized Representatives and will maintain a list of all approved Authorized 

Representatives for each Clearing Member. Eris Clearing shall promptly notify the 

Clearing Member if Eris Clearing (i) declines to approve the designation, (ii) revokes the 

designation, or (iii) suspends the designation of an Authorized Representative. 

(d) An Authorized Representative who is suspended remains subject to the Rules and Eris 

Clearing’s jurisdiction throughout the period of suspension. 

(e) To request the termination of the designation of an Authorized Representative, the Clearing 

Member or the Authorized Representative must notify Eris Clearing providing the 

information and complying with the procedures and requirements established by Eris 

Clearing. 

(f) An Authorized Representative remains subject to the Rules and the jurisdiction of Eris 

Clearing for acts done and omissions made while registered as such, and a proceeding 

relating to an individual whose designation as an Authorized Representative has been 

terminated or suspended shall occur as if the Authorized Representative were still 

registered as such. 

305. Adequate Resources 

If Eris Clearing has reason to believe that a Clearing Member may fail to comply with any of the 

Rules, it may require the Clearing Member to provide it, within such time frame, in such detail, 

and in such manner as Eris Clearing shall determine, with adequate assurances that the Clearing 

Member shall not violate any of the Rules. 
AprilNovember 2019 

19 

136946590

306. Notices Required of Clearing Members. 

(a) Each Clearing Member, if applicable, shall immediately notify Eris Clearing, orally and in 

writing, of: 

(i) Any Default of the Clearing Member or any failure or inability of the Clearing 

Member to meet its Obligations; 

(ii) Any failure to maintain current books and records; 

(iii) Any refusal of admission to, withdrawal of any application for membership in, any 

suspension, expulsion, bar, fine, censure, denial of membership, registration or 

license, withdrawal of any application for registration, cease and desist order, 

temporary or permanent injunction, denial of trading privileges or clearing 

privileges, or any other sanction or discipline through an adverse determination, 

voluntary settlement or otherwise, by the CFTC, the SEC, any commodity or 

securities exchange, clearing organization, any Self-Regulatory Organization or 

other business or professional association; 

(iv) The imposition of any restriction or limitation on the business conducted by the 

Clearing Member on or with any securities or futures clearing organization or 

exchange (including, without limitation, any contract market, swap execution 

facility or other trading facility), other than restrictions or limitations imposed 

generally on all Clearing Members of or Clearing Members of such clearing 

organization or exchange; 

(v) Any failure by such Clearing Member, or any guarantor or commonly owned or 

controlled Clearing Member, to perform any of its material contracts, obligations 

or agreements; 

(vi) Any determination that it, or any guarantor or commonly owned or controlled 

Clearing Member, will be unable to perform any of its material contracts, 

obligations or agreements; 

(vii) The insolvency, bankruptcy or receivership of such Clearing Member, or of any 

guarantor or commonly owned or controlled Clearing Member; 

(viii) The institution of any proceeding by or against the Clearing Member, any affiliate 

of the Clearing Member, or any 5% direct owner of the Clearing Member, under 

any provision of the bankruptcy laws of the United States, or under the Securities 

Investor Protection Act of 1970, any other statute or equitable power of a court of 

like nature or purpose, in which such Clearing Member or Person is designated as 

the bankrupt, debtor or equivalent, or a receiver is appointed, or if a receiver, trustee 

or similar official is appointed for the Clearing Member, such Person, or its or their 

property; 

(ix) The receipt by such Clearing Member, or the filing by such Clearing Member with 

a Self-Regulatory Organization, of a notice of material inadequacy, including as 
AprilNovember 2019 

20 

136946590

provided in CFTC Regulation 1.16(d)(2) or SEC Rule 17a-5(g)(3), in each case as 

applicable to such Clearing Member; 

(x) The receipt by such Clearing Member from its independent auditors of an audit 

opinion that is not unqualified; 

(xi) The cessation by such Clearing Member of its clearing of trades for a trading 

privilege holder of the Exchange; or 

(xii) Any default by a Customer of the FCM Clearing Member. 

(b) In addition to the requirements above, an FCM Clearing Member shall promptly provide 

written notice to Eris Clearing of: 

(i) Any reduction in adjusted net capital as reported on its Form 1-FR or net capital as 

reported on its FOCUS Report from the most recent filing of such report; 

(ii) Any failure of the Clearing Member to remain in compliance with the minimum 

capital or “early warning” requirements of any Government Agency or SelfRegulatory Organization 

(iii) such Clearing Member knows or has reason to believe that its adjusted net capital 

has fallen below Eris Clearing’s minimum capital requirements; 

(iv) Any damage to, or failure or inadequacy of, the systems, facilities or equipment of 

the Clearing Member used to perform the Clearing Member’s obligations under or 

in connection with Contracts or Customer Accounts that is not promptly remedied; 

(v) If such Clearing Member fails to comply with additional accounting, reporting, 

financial and/or operation requirements prescribed by Eris Clearing; 

(vi) Any failure to maintain funds in any Customer Account sufficient to comply with 

applicable CFTC Regulations; 

(vii) Any planned material reduction in equity capital (and, in all cases, any planned 

reduction in equity capital that would cause a reduction in excess adjusted net 

capital, excess net capital or excess liquid capital of 30% or more), including the 

incurrence of a contingent liability which would materially affect the Clearing 

Member’s capital or other representations contained in the latest financial statement 

submitted to Eris Clearing should such liability become fixed; provided that no such 

notice shall be required in the case of a reduction in capital resulting from (1) the 

repayment or prepayment of subordinated liabilities for which notice has been 

given pursuant to applicable CFTC or SEC requirements, or (2) any futures or 

securities transaction in the ordinary course of business between a Clearing 

Member and any affiliate where the Clearing Member makes payment to or on 

behalf of such affiliate for such transaction and then receives payment from such 

affiliate for such transaction within two Business Days from the date of the 

transaction; 

(viii) Any change in the FCM Clearing Member’s fiscal year or its public accountants; 
AprilNovember 2019 

21 

136946590

(ix) If any Person directly or indirectly becomes a 5% direct owner of the FCM Clearing 

Member; 

(x) Any changes in its name, business address, its telephone or facsimile number, 

electronic mail address, or any number or access code for any electronic 

communication device used by it to communicate with Eris Clearing; or 

(xi) Any external audit findings (including reviews by the Clearing Member’s 

designated Self-Regulatory Organization). 

(c) An FCM Clearing Member shall, unless it is impractical to do so (in which case it shall 

provide written notice to Eris Clearing as promptly as possible), provide at least thirty days 

prior written notice to Eris Clearing, where applicable, of: 

(i) Any proposed change in the organizational or ownership structure or management 

of the FCM Clearing Member, including any merger, combination or consolidation 

between the FCM Clearing Member and another Person; 

(ii) The assumption or guaranty by the FCM Clearing Member of all or substantially 

all of the liabilities of another Person in connection with a direct or indirect 

acquisition of all or substantially all of that Person’s assets; 

(iii) The sale of all or a significant portion of the FCM Clearing Member’s business or 

assets to another Person; 

(iv) A change in the direct or indirect beneficial ownership of 20% or more of the FCM 

Clearing Member; 

(v) Any change in the FCM Clearing Member’s systems provider or facilities manager 

used by the FCM Clearing Member to process transactions in Contracts; or 

(vi) Any planned changes to the FCM Clearing Member’s risk management processes 

or systems. 

(d) Upon the receipt of a notice of the type set forth in paragraphs (a) - (c) above, Eris Clearing 

shall review the continuing eligibility of the Clearing Member for clearing eligibility. 

Where such notice constitutes notice of a Default, Eris Clearing may take any or all of the 

actions as permitted by these Rules, including Rules 502 and 601. 

307. Omnibus and Carrying Broker Accounts. 

(a) Each FCM Clearing Member shall maintain a complete list of all omnibus and carrying 

broker accounts maintained on its books. Such list shall be promptly provided to Eris 

Clearing upon request. Information for each such account must include account name, 

number and address, and classification of the account as either Customer or house. 

(b) Each FCM Clearing Member carrying an omnibus account shall at all times reflect in its 

records the gross long and short positions held in such omnibus account. 
AprilNovember 2019 

22 

136946590

(c) Each FCM Clearing Member that maintains an omnibus account with another FCM 

Clearing Member shall also bear financial responsibility to Eris Clearing for that omnibus 

account. 

308. Financial Requirements of FCM Clearing Members. 

(a) FCM Clearing Members must at all times maintain minimum regulatory capital in excess 

of the greater of (i) $5,000,000, and (ii) the capital requirements imposed by any 

Government Agency, Self-Regulatory Organization or other examining authority or 

regulator to which it is subject by statute, regulation or agreement. Eris Clearing may 

prescribe additional capital requirements with respect to any FCM Clearing Member. 

(b) FCM Clearing Members shall: 

(i) Submit a monthly Form 1-FR-FCM or a FOCUS Report and supplementary 

information schedule, in the form prescribed by the CFTC, including an unaudited 

monthly Form 1-FR-FCM or FOCUS Report as of the FCM Clearing Member’s 

fiscal year-end, within the time set forth in CFTC Regulation 1.10. A FCM Clearing 

Member must include with its Form 1-FR-FCM or FOCUS Report a Statement of 

Income (Loss) for the period between the date of the most recent 1-FR-FCM or 

FOCUS or, at the option of the FCM Clearing Member, the most recent certified 1-

FR- FCM or FOCUS filed with Eris Clearing and the date for which the report is 

made; 

(ii) Submit a certified Form 1-FR-FCM or FOCUS Report as of the Clearing Member’s 

fiscal year-end within the time requirements set forth in CFTC Regulation 1.10. A 

FCM Clearing Member must include with its certified Form 1-FR-FCM or FOCUS 

Report, a reconciliation from the certified Form 1-FR-FCM or FOCUS Report to 

the monthly Form 1-FR-FCM or FOCUS Report as of the same date or a statement 

that no material differences were noted. 

(c) Eris Clearing may prescribe additional accounting, reporting, and other financial and/or 

operational requirements, and FCM Clearing Members must comply with such 

requirements. 

(d) Financial statement filing requirements under this Rule must be met through Eris Clearingapproved electronic transmission, except for certified Form 1-FR-FCMs or FOCUS 

Reports, which shall be submitted in physical form. FCM Clearing Members must provide 

any reports or information pertaining to their financial resources to the CFTC upon request. 

(e) Exceptions to the financial and reporting requirements of this Rule 308 may be granted by 

the Board, in consultation with the Chief Compliance Officer, for good cause if it is 

determined that such exceptions will not jeopardize the financial integrity of Eris Clearing. 

309. Customer Accounts and Member Property Accounts. 

(a) All Customer funds deposited by an FCM Clearing Member with Eris Clearing on behalf 

of Customers protected by CFTC Regulation 1.20 shall be held in accordance with the 

CEA and CFTC Regulation 1.20 in an account identified as “Customer Segregated.” Such 
AprilNovember 2019 

23 

136946590

Customer funds shall be segregated by Eris Clearing and treated as belonging to the 

Customers of the FCM Clearing Member. Pursuant to this Rule, a Clearing Member shall 

satisfy the segregation acknowledgment letter requirements of the CEA and CFTC 

Regulation 1.20 for Customer deposits held at Eris Clearing. 

(b) All funds deposited by a Clearing Member with Eris Clearing on behalf of the Clearing 

Member’s own account shall be held in a Member Property Account. Such Clearing 

Member funds shall be segregated by Eris Clearing and treated as belonging to Clearing 

Members. 

(c) Eris Clearing will, upon request by a Customer, promptly transfer, from the Customer 

Account of one FCM Clearing Member to the Customer Account of another FCM Clearing 

Member, all or a portion of such Customer’s Contracts, in accordance with Rule 408(a)(i). 

310. General Recordkeeping and Reporting Requirements for Clearing Members. 

(a) Each Clearing Member shall prepare, maintain and keep current those books and records 

required by these Rules, the CEA, CFTC Regulations, and any applicable State 

Regulations. Such books and records shall be open to inspection and promptly provided to 

Eris Clearing, the CFTC or other Government Agency upon request. 

(b) Without limiting the foregoing, each Clearing Members shall make and retain records with 

respect to each trade showing the Contract, quantity, date, price, delivery month, the name 

or account identifier of any Customer for whom the trade was made and such other 

information as may be required by law, regulation, or by Eris Clearing. Such records shall 

be retained for at least five years, either in original form or in such other form as Eris 

Clearing may from time to time authorize. 

(c) Each FCM Clearing Member shall maintain an adequate accounting system, internal 

accounting controls, and procedures for safeguarding Customer and firm assets, where 

applicable. This includes, but is not limited to, the following: 

(i) Preparation and maintenance of complete and accurate reconciliations for all 

accounts; and 

(ii) Resolution of reconciling items in a timely manner; and 

(iii) Prevention of a material inadequacy as defined in CFTC Regulation 1.16(d)(2). 

(d) An FCM Clearing Member shall file any information requested by Eris Clearing within the 

time period specified in the request and shall, at all times have the ability to provide to Eris 

Clearing in an acceptable form a complete set of back-office system reports (including, at 

a minimum, the equity run, open position listing, day trade listing, cash adjustments listing 

and debit equity listing, if applicable). Such reports shall be available to Eris Clearing no 

later than 8:00 a.m. Chicago time on the Business Day following the report date. 
AprilNovember 2019 

24 

136946590

(e) Each FCM Clearing Member shall at all times have the ability to provide promptly to Eris 

Clearing upon request a listing of each of its Customers’ method of access to the Exchange, 

including front end applications and network connections. 

311. Disaster Recovery and Business Continuity FCM Clearing Members 

(a) Each FCM Clearing Member shall have written disaster recovery and business continuity 

policies and procedures reasonably designed to ensure it is able to perform certain basic 

operational functions in the event of a significant internal or external interruption to its 

operations. At a minimum, the following areas must be considered in the FCM Clearing 

Member’s policies and procedures: 

(i) The FCM Clearing Member must have procedures in place to allow it to continue 

to operate during periods of stress with minimal disruption to either Eris Clearing 

or its Customers. The FCM Clearing Members must perform periodic testing, 

including testing with Eris Clearing when so requested, of disaster recovery and 

business continuity plans, duplication of critical systems at back up sites and 

periodic backup of critical information; and 

(ii) The FCM Clearing Member must maintain and, at the request of Eris Clearing, 

provide accurate and complete information for its key personnel. An FCM Clearing 

Member must inform Eris Clearing in a timely manner whenever a change to its 

key personnel is made. 

(b) Eris Clearing may prescribe additional and/or alternative requirements for FCM Clearing 

Members’ compliance with this Rule. 

(c) FCM Clearing Members must participate in coordinated testing of their disaster recovery 

and business continuity policies and procedures at least annually. An FCM Clearing 

Member can fulfill this requirement by participating in an industry-wide testing event in 

which Eris Clearing or the Exchange also participates. 

312. Fees. 

Eris Clearing shall have the right to invoice clients and accept payment via check, wire, or money 

transfer, or to offset any fees, charges or other amounts (other than fines or penalties) due to Eris 

Clearing or due to the Exchange against a Clearing Member’s Margin balance, and shall have the 

right to instruct an Approved Depository Institution, if applicable, to debit the Account maintained 

by an Clearing Member to offset any amounts due the Clearinghouse. 

313. Segregation of Customer Funds and Assets for FCM Clearing Members. 

(a) Each FCM Clearing Member must comply with the requirements of the CEA and CFTC 

Regulations regarding segregation of customer funds from the FCM Clearing Member’s 

own funds or assets, including, but not limited to, CFTC Regulations 1.20 through 1.30, 

1.32, and 30.7. 

(b) Eris Clearing shall comply with the applicable segregation requirements of Section 4d of 

the CEA and CFTC Regulations with respect to customer funds held by Eris Clearing. 
AprilNovember 2019 

25 

136946590

(c) As used in this Rule 315, “customer funds” has the same meaning as in CFTC Regulation 

1.3. 

314. Access to Eris Clearing. 

A Customer entering orders by electronic access must access Eris Clearing through the systems 

owned or sponsored by such Customer’s FCM Clearing Member. 

315. Digital Asset Collateral. 

(a) With respect to any digital asset Collateral, including, but not limited to, Bitcoin, which is 

or may be credited to any Clearing Member’s Member Property Account, the following 

terms and conditions shall apply: 

(i) For purposes of creating a “security entitlement” as such term is defined in Section 

8-102(a)(17) of the UCC, the Clearinghouse and the Clearing Member agree that: 

(1) the digital asset Collateral shall be treated as a “financial asset” as such term is 

defined in Section 8-102(a)(9) of the UCC; and (2) each Clearing Member shall be 

treated as an “entitlement holder” as such term is defined in Section 8-102(a)(7) of 

the UCC. 

(ii) Each Clearing Member acknowledges that the Clearinghouse is a “securities 

intermediary” as such term is defined in Section 8-102(a)(14) of the UCC. 

(iii) Any digital asset Collateral which a Clearing Member desires be credited to such 

Clearing Member’s Member Property Account shall be transferred to a digital asset 

wallet designated by the Clearinghouse and upon such transfer the Clearinghouse 

shall indicate by book entry that such digital asset Collateral, less applicable 

transfer costs and fees, has been credited to such Member Property Account. 

(b) With respect to any digital asset Collateral, including, but not limited to, Bitcoin, which is 

or may be credited to any Customer Account, the following terms and conditions shall 

apply: 

(i) For purposes of creating a “security entitlement” as such term is defined in Section 

8-102(a)(17) of the UCC, the Clearinghouse and the Customer and the relevant 

FCM Clearing Member all agree that: (1) the digital asset Collateral shall be treated 

as a “financial asset” as such term is defined in Section 8-102(a)(9) of the UCC; 

and (2) each FCM Clearing Member shall be treated as an “entitlement holder” as 

such term is defined in Section 8-102(a)(7) of the UCC. 

(ii) Each Customer and each FCM Clearing Member acknowledges that the 

Clearinghouse is a “securities intermediary” as such term is defined in Section 8-

102(a)(14) of the UCC. 

(iii) Any digital asset Collateral which an FCM Clearing Member desires be credited to 

any of such FCM Clearing Member’s Customer Accounts shall be transferred to a 

digital asset wallet designated by the Clearinghouse and upon such transfer the 

Clearinghouse shall indicate by book entry that such digital asset Collateral, less 
AprilNovember 2019 

26 

136946590

applicable transfer costs and fees, has been credited to any of such Customer 

Accounts. 

(c) The Clearinghouse shall have only such duties and obligations with respect to each 

Member Property Account and Customer Account as are set forth in Article 8 of the UCC 

or otherwise mandated by Applicable Law. Each Clearing Member, including each FCM 

Clearing Member, and each Customer acknowledges and agrees that the Clearinghouse is 

not a fiduciary for any Clearing Member, including any FCM Clearing Member, or 

Customer. 

(d) The State of Illinois is the “securities intermediary’s jurisdiction” within the meaning of 

Section 8-110(e) of the UCC for all purposes of the UCC. 

4. CLEARING, SETTLEMENT, AND DELIVERY OF CONTRACTS 

401. Submission of Trades. 

(a) Upon matching of a trade effected on or pursuant to the rules of the Exchange, the 

Exchange shall promptly submit to Eris Clearing a trade report generated by the electronic 

trading system of the Exchange. The report shall show for each trade (i) the identity of each 

Clearing Member, (ii) whether bought or sold, (iii) quantity, (iv) delivery month, (v) the 

price, (vi) whether for house, Customer, or non-Customer account, and (vii) such other 

information as may be required by Eris Clearing. 

(b) If Eris Clearing determines that any trade report submitted pursuant to this Rule 401 

contains a material error or is otherwise not eligible for clearing by Eris Clearing, Eris 

Clearing may reject such trade and notify the Exchange of such rejection, setting forth the 

basis of such objection. 

402. Clearance and Substitution. 

(a) The submission of a Contract to Eris Clearing by or on behalf of the buying and selling 

Clearing Members shall constitute a request, by such Clearing Members, for the clearing 

of such Contract by Eris Clearing. Upon the acceptance thereof by Eris Clearing, which 

ordinarily shall be deemed to occur upon the receipt of matched trade data from the 

Exchange, the Contract shall be novated and Eris Clearing shall be substituted as, and 

assume the position of, seller to the Clearing Member buying such Contract and buyer from 

the Clearing Member selling such Contract. Upon such substitution, such buying and 

selling Clearing Members shall be released from their obligations to each other, and Eris 

Clearing shall be deemed to have succeeded to all the rights, and to have assumed all the 

Obligations, of the Clearing Members that were party to such Contract, in each case as 

provided in the Rules. 

(b) Where an FCM Clearing Member acts to clear a Contract made for the account of a 

Customer, the FCM Clearing Member becomes obligated to Eris Clearing, and Eris 

Clearing becomes obligated to the FCM Clearing Member, with respect to such Contract 

in the same manner and to the same extent as if the Contract were for the account of the 

FCM Clearing Member. 
AprilNovember 2019 

27 

136946590

(c) Notwithstanding the provisions of paragraph (a), a trade shall not be accepted for clearing, 

and Eris Clearing shall not be substituted for a given Contract, unless the Margin for such 

Contract is made available to Eris Clearing, by or for both Clearing Members, pursuant to 

Rule 403. 

403. Margin. 

(a) Each Clearing Member shall deposit funds or Collateral in the form of the applicable 

quantity of the deliverable underlying commodity required to fully collateralize orders 

pursuant to the contract specifications contained in the Exchange rulebook, including 

payment of premiums, payment in exchange for delivery or to fulfill delivery obligations, 

as applicable, prior to submission of such orders to the Exchange. Fund and Collateral 

transfers made by a Clearing Member to the Clearinghouse or by the Clearinghouse to a 

Clearing Member are irrevocable and unconditional when effected. The Clearing Member 

shall be responsible for all fees associated with wires or transfers of Collateral to the 

Clearinghouse. 

(b) Subject to the terms and conditions of the Clearinghouse, Clearing Members may deposit 

the following as Margin: (1) cash; (2) the underlying commodity; and (3) any other form 

of Collateral deemed acceptable by the Risk Management Committee upon the Risk 

Management Committee’s approval of such Collateral as communicated through 

Clearinghouse notices. The Clearinghouse will value margin Collateral as it deems 

appropriate. 

(c) Funds and Collateral must be and remain unencumbered. Except as otherwise provided 

herein, each Clearing Member posting funds or Collateral hereby grants to the 

Clearinghouse a first priority security interest in and unencumbered lien against any 

Margin, Contracts, positions and other funds, property and any other Collateral deposited 

with the Clearinghouse by the Clearing Member, including without limitation such 

Clearing Member’s Member Property Accounts, the Customer Accounts of such Clearing 

Member’s Customers, and all securities entitlements held therein. A Clearing Member shall 

execute any documents required by Eris Clearing to create, perfect and enforce such lien. 

Each Clearing Member hereby agrees that with respect to any funds or Collateral which is 

or may be credited to the Clearing Member’s Member Property Account or Customer 

Account, as applicable, the Clearinghouse shall have control pursuant to Section 9-106(a) 

and 8-106(e) of the UCC and a perfected security interest pursuant to Section 9-314(a) of 

the UCC. 

(d) Eris Clearing may assign, pledge, repledge or otherwise create a lien on or security interest 

in, and enter into repurchase agreements involving, Margin, Contracts, positions and other 

funds, property and any other Collateral deposited with the Clearinghouse by the Clearing 

Member, as permitted by CFTC Regulations and applicable State Regulations, held in or 

for such Clearing Member’s Member Property Accounts or the Customer Accounts of such 

Clearing Member’s Customers to secure the repayment of funds that may be borrowed by 

Eris Clearing. 

(e) Clearing Member must transfer the funds and Collateral to the Clearinghouse which will 

hold funds and Collateral on behalf of the Clearing Member. Eris Clearing will credit to 
AprilNovember 2019 

28 

136946590

the Clearing Member the funds and Collateral that such Clearing Member deposits. Funds 

and Collateral shall be held by the Clearinghouse until a Clearing Member submits a 

withdrawal notification, unless otherwise stipulated by these Rules. Eris Clearing will not 

be responsible for any diminution in value of funds or Collateral that a Clearing Member 

deposits with the Clearinghouse, except, in the case of cash, the diminution of value is as 

a direct result of investment activity of the Clearinghouse, such activity having been 

conducted in full compliance with CFTC Regulations and applicable State Regulations. 

Any fluctuation in markets is the risk of each Clearing Member. Any interest earned on 

Clearing Member funds or Collateral may be retained by the Clearinghouse. 

(f) If a Clearing Member is in Default, Eris Clearing may foreclose on and sell any of the 

Margin deposited by such Clearing Member without notice. 

(g) Eris Clearing shall be empowered to invest and reinvest all or part of the funds constituting 

Margin. Such investments shall be for the account and risk of Eris Clearing, and any 

income and gains on such investments and interest on such deposits shall belong to Eris 

Clearing and may be withdrawn from the account holding the Margin and deposited with 

the general funds of Eris Clearing. 

404. Offset and Settlement. 

(a) Where, as the result of novation under Rule 402, a Clearing Member has bought and sold 

a Contract on or subject to the Rules of the Exchange with the same expiration, or otherwise 

deemed equivalent by the Clearinghouse, the purchase and sale will be offset by Eris 

Clearing through the timely submission of instructions by the Clearing Member containing 

such information as Eris Clearing may require in accordance with its procedures. A 

Clearing Member shall be required to pay the loss or entitled to collect the profit, as the 

case may be, upon such offsetting transactions, and shall have no further rights or be under 

any further obligation with respect thereto. For purposes of this Rule 404, the first 

Contracts made shall be deemed the first Contracts offset. 

(b) Contracts made and designated by the Clearing Member as for the Clearing Member’s 

Customer Account shall not be offset under this Rule 405 against Contracts designated by 

the Clearing Member as for the Clearing Member’s own Member Property Account. 

405. Approved Depository Institutions. 

A bank, trust company or other depository that meets such financial and other requirements of Eris 

Clearing may be designated by Eris Clearing as an Approved Depository Institution. 

406. Statement of Trades and Contracts. 

Eris Clearing shall in the manner and at the time that it determines from time to time make available 

to a Clearing Member an accounting of trades and Contracts for each Business Day on which such 

Clearing Member has trades to be cleared or Contracts open with Eris Clearing. Any amounts the 

Clearing Member has posted to Eris Clearing under Rule 403 shall be indicated on this statement. 
AprilNovember 2019 

29 

136946590

407. Confirmation to Customers. 

An FCM Clearing Member servicing Customer Accounts shall confirm to the Customer every 

transaction made for the Customer no later than the following Business Day. Such confirmation 

shall be in electronic or written form and shall show the Contract bought or sold, the quantity, the 

price, and delivery month. 

408. Transfer Trades. 

(a) Trades and positions may be transferred on the books of a Clearing Member or from one 

Clearing Member to another Clearing Member provided that: 

(i) the transfer constitutes a change from one account to another account where the 

underlying beneficial ownership in such accounts remains the same; 

(ii) an error has occurred in the clearing of a trade and a transfer to correct such error 

is undertaken and is completed within two Business Days after the trade date; 

(iii) the transfer is in connection with, or as a result of, a merger, asset purchase, 

consolidation or similar non-recurring transaction between two or more entities 

where one or more entities become the successor in interest to one or more other 

entities; or 

(iv) if, in the judgment of Eris Clearing, the situation so requires and such transfer is in 

the best interest of Eris Clearing. 

(b) Unless otherwise permitted by Eris Clearing, a transfer that is permitted pursuant to this 

Rule 408 (a “Transfer Trade”) shall be recorded and carried on the books of the receiving 

Clearing Member at the original trade dates and prices. 

409. Settlement Prices 

As used in the Rules, the term “Settlement Price” means the settlement price for a Contract for 

which positions remain open, as determined, intra-day and at the close of regular trading hours, by 

the Exchange in accordance with its rules, except in the case of manifest error or where Eris 

Clearing believes that such settlement price does not reasonably reflect the value or price of the 

Contract, in which case Eris Clearing, using its best efforts to consult with the Exchange, shall 

determine the official Settlement Price; provided, that Eris Clearing shall in such circumstances 

promptly notify the Exchange and Clearing Members, and the reasons for that determination and 

the basis for the Settlement Price determined by Eris Clearing shall be published in a notice to the 

Exchange and Clearing Members. 

410. Delivery. 

After trading ceases for a Contract that is physically settled, the Clearinghouse shall transfer the 

underlying to the Account of the Clearing Member that is required to accept delivery, from the 

Account of the Clearing Member obligated to make delivery, such full collateralization having 

been transferred to the Clearinghouse’s custody at the inception of the trade. Deliveries will occur 

on the Clearinghouse’s books and records unless otherwise specified in the Exchange contract 

specifications. 
AprilNovember 2019 

30 

136946590

411. Reporting. 

Clearing Members shall make such reports in respect of trades, Contracts, settlements and 

deliveries as may be as prescribed by Eris Clearing. 

5. OBLIGATIONS OF ERIS CLEARING 

501. Limitation of Liability. 

(a) THE LIABILITY OF ERIS CLEARING RELATING TO OR ARISING OUT OF 

CONTRACTS SHALL BE LIMITED TO LOSSES RESULTING FROM THE 

NOVATION OF THE CONTRACTS IN ACCORDANCE WITH THE RULES. 

SUBJECT TO THE FOREGOING, NEITHER THE CLEARINGHOUSE, NOR ANY 

AFFILIATE OF THE CLEARINGHOUSE, NOR ANY OF THEIR RESPECTIVE 

MANAGERS, OFFICERS, DIRECTORS, EMPLOYEES, EQUITY HOLDERS, 

AGENTS, CONSULTANTS OR SERVICE PROVIDERS (INCLUDING, WITHOUT 

LIMITATION, ANY REGULATORY SERVICES PROVIDER), NOR ANY MEMBER 

OF ANY COMMITTEE OR OTHER GOVERNING BODY OF ANY AFFILIATE OF 

THE CLEARINGHOUSE (EACH OF THE FOREGOING, AS APPLICABLE, THE 

“DISCLAIMING PARTY” AND, COLLECTIVELY, “DISCLAIMING PARTIES”) 

SHALL BE RESPONSIBLE FOR ANY ACTION TAKEN, OR ANY DELAY OR 

FAILURE TO TAKE ANY ACTION, HEREUNDER OR OTHERWISE TO FULFILL A 

DISCLAIMING PARTY’S OBLIGATIONS TO CLEARING MEMBERS, OTHER 

THAN FOR LOSSES CAUSED DIRECTLY BY A DISCLAIMING PARTY’S GROSS 

NEGLIGENCE OR WILLFUL MISCONDUCT AND SHALL NOT BE LIABLE FOR 

ANY OTHER OBLIGATIONS, INCLUDING BUT NOT LIMITED TO OBLIGATIONS 

OF A CLEARING MEMBER, OBLIGATIONS OF A CLEARING MEMBER TO A 

CUSTOMER OR OTHER NON-CLEARING MEMBER OR OBLIGATIONS OF A 

CLEARING MEMBER TO ANOTHER CLEARING MEMBER THAT IS ACTING FOR 

IT AS BROKER; NOR SHALL A DISCLAIMING PARTY BECOME LIABLE TO 

MAKE DELIVERIES TO OR ACCEPT DELIVERIES FROM CLEARING MEMBERS 

OR CUSTOMERS. UNDER NO CIRCUMSTANCES WILL A DISCLAIMING PARTY 

BE LIABLE FOR (1) THE ACTS, DELAYS, OMISSIONS, BANKRUPTCY, OR 

INSOLVENCY, OF ANY THIRD PARTY, INCLUDING, WITHOUT LIMITATION, 

ANY DEPOSITORY, CUSTODIAN, SUBCUSTODIAN, CLEARING OR 

SETTLEMENT SYSTEM UNLESS THE DISCLAIMING PARTY WAS GROSSLY 

NEGLIGENT OR ENGAGED IN WILLFUL MISCONDUCT OR (2) THE 

PERFORMANCE OR OPERATION (OR NON-PERFORMANCE OR NONOPERATION) OF ANY DIGITAL ASSET OR RELATED DISTRIBUTED LEDGER 

(“ANCILLARY DL”) ATTRIBUTABLE DIRECTLY OR INDIRECTLY TO THE 

DESIGN OF THE DIGITAL ASSET OR ANCILLARY DL. UNDER NO 

CIRCUMSTANCES WILL A DISCLAIMING PARTY BE LIABLE FOR ANY 

INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE OR 

EXEMPLARY LOSS OR DAMAGE (INCLUDING, BUT NOT LIMITED TO, LOSS OF 

BUSINESS, LOSS OF PROFITS, TRADING LOSSES, LOSS OF OPPORTUNITY AND 

LOSS OF USE) HOWSOEVER SUFFERED OR INCURRED, REGARDLESS OF 

WHETHER THE DISCLAIMING PARTY HAS BEEN ADVISED OF THE 

POSSIBILITY OF SUCH DAMAGES OR WHETHER SUCH DAMAGES 
AprilNovember 2019 

31 

136946590

OTHERWISE COULD HAVE BEEN FORESEEN OR PREVENTED. THE 

FOREGOING LIMITATIONS OF LIABILITY SHALL APPLY REGARDLESS OF 

WHETHER A CLAIM IS BASED ON BREACH OF CONTRACT, TORT, INCLUDING, 

WITHOUT LIMITATION, NEGLIGENCE (OTHER THAN GROSS NEGLIGENCE), 

STRICT LIABILITY, NEGLIGENT MISREPRESENTATION, RESTITUTION, 

BREACH OF STATUTORY DUTY, BREACH OF WARRANTY OR OTHERWISE, 

AND WHETHER THE CLAIM IS BROUGHT DIRECTLY OR AS A THIRD-PARTY 

CLAIM. 

(b) THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS 

PROVIDED BY THE CLEARINGHOUSE OR ANY OTHER DISCLAIMING PARTY 

RELATING TO ANY SYSTEMS OR SERVICES OF THE CLEARINGHOUSE OR 

SERVICES, EQUIPMENT OR FACILITIES USED TO SUPPORT SUCH SYSTEMS 

OR SERVICES, AND THE CLEARINGHOUSE HEREBY SPECIFICALLY 

DISCLAIMS, OVERRIDES AND EXCLUDES, TO THE FULLEST EXTENT 

PERMITTED BY LAW, ALL IMPLIED WARRANTIES OF MERCHANTABILITY, 

SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE AND ALL 

OTHER WARRANTIES, CONDITIONS, OTHER CONTRACTUAL TERMS, 

REPRESENTATIONS, INDEMNITIES AND GUARANTEES WITH RESPECT TO 

THE SERVICES, WHETHER EXPRESS, IMPLIED OR STATUTORY, ARISING BY 

LAW, CUSTOM, PRIOR ORAL OR WRITTEN STATEMENTS BY THE 

CLEARINGHOUSE OR ANY OTHER DISCLAIMING PARTY OR OTHERWISE 

(INCLUDING BUT NOT LIMITED TO, AS TO TITLE, SATISFACTORY QUALITY, 

ACCURACY, COMPLETENESS, UNINTERRUPTED USE, NON-INFRINGEMENT, 

TIMELINESS, TRUTHFULNESS, SEQUENCE AND ANY IMPLIED WARRANTIES, 

CONDITIONS AND OTHER CONTRACTUAL TERMS ARISING FROM 

TRANSACTION USAGE, COURSE OF DEALING OR COURSE OF 

PERFORMANCE) RELATING TO ANY SYSTEMS OR SERVICES OF THE 

CLEARINGHOUSE OR SERVICES, EQUIPMENT OR FACILITIES USED TO 

SUPPORT SUCH SYSTEMS OR SERVICES. 

(c) ERIS CLEARING MAY ACCEPT AND RELY UPON ANY INFORMATION OR 

INSTRUCTION GIVEN TO ERIS CLEARING BY A CLEARING MEMBER OR ITS 

OFFICERS OR AUTHORIZED REPRESENTATIVES, WHICH REASONABLY IS 

UNDERSTOOD BY ERIS CLEARING TO HAVE BEEN DELIVERED TO ERIS 

CLEARING BY THE CLEARING MEMBER AND SUCH CLEARING MEMBER 

SHALL INDEMNIFY THE DISCLAIMING PARTIES AND CLEARING MEMBERS 

AGAINST ANY LOSS, LIABILITY OR EXPENSE AS A RESULT OF ANY ACT 

DONE IN RELIANCE UPON THE AUTHENTICITY OF ANY INFORMATION OR 

INSTRUCTION RECEIVED BY ERIS CLEARING, THE INACCURACY OF THE 

INFORMATION CONTAINED THEREIN OR EFFECTING TRANSACTIONS IN 

RELIANCE UPON SUCH INFORMATION OR INSTRUCTION. 

(d) A CLEARING MEMBER SHALL REIMBURSE ERIS CLEARING FOR ALL FEES, 

EXPENSES, CHARGES AND COSTS ASSESSED BY A DEPOSITORY AGAINST 

ERIS CLEARING WITH RESPECT TO MARGIN MAINTAINED IN SUCH 

CLEARING MEMBER’S ACCOUNT, AND ERIS CLEARING SHALL NOT HAVE 
AprilNovember 2019 

32 

136946590

ANY OBLIGATION OR RESPONSIBILITY TO PRESERVE, PROTECT, COLLECT 

OR REALIZE UPON, AND EXCEPT AS PROVIDED IN RULE 403(D), ERIS 

CLEARING SHALL NOT BE LIABLE FOR, ANY LOSS OR DIMINUTION IN VALUE 

OR DEPRECIATION IN MARGIN DEPOSITED BY CLEARING MEMBERS. 

CLEARING MEMBERS THAT DEPOSIT MARGIN WITH AN APPROVED 

DEPOSITORY INSTITUTION PURSUANT TO THE RULES SHALL HOLD ERIS 

CLEARING HARMLESS FROM ALL LIABILITY, LOSSES AND DAMAGES WHICH 

MAY RESULT FROM OR ARISE WITH RESPECT TO THE CARE AND SALE OF 

SUCH MARGIN. 

(e) ANY OBLIGATION OF ERIS CLEARING TO A CLEARING MEMBER ARISING 

FROM A CONTRACT OR FROM ANY PROVISION OF THE RULES SHALL BE 

SUBJECT TO ALL THE TERMS OF THE RULES, INCLUDING THE SETOFF AND 

OTHER RIGHTS SET FORTH HEREIN. 

(f) EXCEPT IN ANY CASE WHERE A DISCLAIMING PARTY HAS BEEN FINALLY 

ADJUDICATED TO HAVE ENGAGED IN FRAUD OR WILLFUL OR WANTON 

MISCONDUCT, IN NO EVENT SHALL THE DISCLAIMING PARTIES’ TOTAL 

COMBINED AGGREGATE LIABILITY FOR ALL CLAIMS, OTHER THAN THOSE 

ARISING UNDER RULE 501(F), EXCEED $100,000 FOR ALL LOSSES SUFFERED 

FROM ALL CAUSES ON A SINGLE CALENDAR DAY; $200,000 FOR ALL LOSSES 

SUFFERED FROM ALL CAUSES IN A SINGLE CALENDAR MONTH; AND 

$1,000,000 FOR ALL LOSSES SUFFERED FROM ALL CAUSES IN A SINGLE 

CALENDAR YEAR. IF THE NUMBER OF ALLOWED CLAIMS ARISING OUT OF 

ANY FAILURES OR MALFUNCTIONS ON A SINGLE DAY, SINGLE MONTH OR 

SINGLE YEAR CANNOT BE FULLY SATISFIED BECAUSE OF THE ABOVE 

DOLLAR LIMITATIONS, ALL SUCH CLAIMS SHALL BE LIMITED TO A PRO 

RATA SHARE OF THE MAXIMUM AMOUNT FOR THE RESPECTIVE PERIOD. 

(g) THE RIGHTS OF ERIS CLEARING SET FORTH HEREIN SHALL BE IN ADDITION 

TO OTHER RIGHTS THAT ERIS CLEARING MAY HAVE UNDER APPLICABLE 

LAW AND GOVERNMENTAL REGULATIONS, OTHER PROVISIONS OF THE 

RULES, ADDITIONAL AGREEMENTS WITH THE CLEARING MEMBER OR ANY 

OTHER SOURCE. 

502. Clearing Member Default. 

(a) If a Clearing Member is in Default, Margin held with respect to such Clearing Member’s 

Member Property Accounts, and any other of such Clearing Member’s assets held by, 

pledged to or otherwise available to Eris Clearing, may be applied by Eris Clearing to 

discharge the Obligations of such Clearing Member to Eris Clearing (including any costs 

and expenses associated with the liquidation, transfer or management of Contracts held in 

or for the Member Property Accounts of such Clearing Member, and any fees, assessments 

or fines imposed by Eris Clearing on such Clearing Member), and Eris Clearing may cause 

all Contracts of such Clearing Member (whether or not carried in a Customer Account) to 

be closed or offset, transferred to any other Clearing Member, or otherwise resolved as 

provided in these Rules. 
AprilNovember 2019 

33 

136946590

(b) If the Margin held with respect to such Clearing Member’s Member Property Accounts, 

and other of such Clearing Member’s assets held by, pledged to or otherwise available to 

Eris Clearing, including any guarantee issued pursuant to these Rules, are insufficient to 

satisfy the defaulting Clearing Member’s Obligations to Eris Clearing after giving effect 

to the application of such amounts pursuant to paragraph (a), such defaulting Clearing 

Member shall continue to be liable therefor. 

(c) In closing, offsetting, transferring or otherwise resolving the Contracts of a Clearing 

Member as provided herein and in Rule 601, Eris Clearing shall have the right: 

(i) With respect to Contracts in a Customer Account of such FCM Clearing Member, 

to set off (x) any proceeds received by Eris Clearing from the disposition of such 

Contracts and any property or proceeds thereof deposited with or held by Eris 

Clearing as Margin for such account against (y) any amounts paid by Eris Clearing 

in the disposition of such Contracts, including any commissions or other losses or 

expenses incurred in connection therewith or in connection with the liquidation of 

Margin deposits in such Customer Account and any other amounts owed to Eris 

Clearing as a result of transactions in the Customer Account or otherwise lawfully 

chargeable against such Customer Account; 

(ii) With respect to the Contracts in any Member Property Accounts of such Clearing 

Member, to set off (x) any proceeds received by Eris Clearing from the disposition 

of such Contracts, any property or proceeds thereof deposited with or held by Eris 

Clearing as Margin for such Member Property Accounts and any other property of 

the Clearing Member within the possession or control of Eris Clearing other than 

property that has been identified by such Clearing Member as required to be 

segregated pursuant to the CEA and CFTC Regulations, against (y) any amounts 

paid by Eris Clearing in the disposition of such Contracts, including any 

commissions or other losses or expenses incurred in connection therewith or in 

connection with the liquidation of Margin deposits in such Member Property 

Accounts, and any other Obligations of the Clearing Member to Eris Clearing, 

including Obligations of the Clearing Member to Eris Clearing remaining after the 

setoffs referred to in paragraph (i) above, and any Obligations arising from any 

other Member Property Accounts maintained by the Clearing Member with Eris 

Clearing; and 

(iii) To defer closing or otherwise settling such trades and Contracts if, in its discretion, 

it determines that the closing out of some or all of the suspended Clearing 

Member’s trades or Contracts would not be in the best interests of Eris Clearing or 

other Clearing Members, taking into account the size and nature of the positions in 

question, market conditions prevailing at the time, the potential market effects of 

such liquidating transactions as might be directed by Eris Clearing, and such other 

circumstances as it deems relevant; or 

(iv) take any action the Clearinghouse deems proper or in the best interest of the 

Clearinghouse or its Clearing Members. 
AprilNovember 2019 

34 

136946590

(d) For purposes of this Rule, each Default by a Clearing Member will be considered a separate 

Default. 

(e) A Clearing Member shall take no action, including but not limited to attempting to obtain 

a court order, that would interfere with the ability of Eris Clearing to exercise its rights 

under the Rules and its agreements with such Clearing Member. 

503. Investment of Customer Funds 

Funds and assets belonging to Customers that are invested by Eris Clearing shall be held in 

instruments that comply with CFTC Regulations 1.25 and 39.15(e), and in accordance with any 

applicable State Regulations. Non-Customer funds and assets belonging to Clearing Members that 

are invested by Eris Clearing shall be held in instruments that comply with CFTC Regulation 

39.15(e). 

6. SUSPENSION; DISCIPLINARY PROCEEDINGS 

601. Suspension. 

(a) General. The Board, Risk Management Committee, or any Exchange Committee may 

summarily suspend any Clearing Member (i) if the Clearing Member is in Default, (ii) 

upon the discovery of a materially false or misleading representation or warranty made by 

the Clearing Member to Eris Clearing under or in connection with any agreement between 

Eris Clearing and the Clearing Member, (iii) if a breach by the Clearing Member of the 

Rules or any of the terms or provisions of any agreement between Eris Clearing and the 

Clearing Member is not remedied promptly after notice from Eris Clearing, (iv) in the event 

of a material violation of the Rules of the Exchange or of the Clearinghouse, or (v) if the 

Board or the Risk Management Committee determines that suspension is necessary for the 

protection of Eris Clearing, other Clearing Members, or the general public (whether or not 

such Clearing Member continues to meet the required minimum financial requirements 

pursuant to the Rules). 

(b) Notice of Suspension to Clearing Members. Upon the suspension of a Clearing Member, 

Eris Clearing shall as soon as possible notify all Clearing Members of the suspension. Such 

notice shall state to the extent practicable in general terms how pending transactions, open 

positions and other pending matters will be affected and what steps are to be taken in 

connection therewith. 

(c) Pending Transactions. Notwithstanding any other provision of the Rules, Eris Clearing 

shall have no obligation to accept any transaction of a suspended Clearing Member that 

was effected after the time at which the Clearing Member was suspended. In the event a 

transaction of a suspended Clearing Member is rejected by Eris Clearing, Eris Clearing 

shall provide notice of such rejection to the other party thereto and such transaction shall 

be closed by the other party thereto in accordance with the rules of the Exchange. 

(d) Open Positions. Eris Clearing shall have the right to cause open positions in Contracts in 

any of the accounts of a suspended Clearing Member: 
AprilNovember 2019 

35 

136946590

(i) To be closed in such manner as deemed practicable by Eris Clearing, in its sole 

discretion; 

(ii) To be transferred to the account of one or more other Clearing Members; 

(iii) To be offset against each other and, to the extent of any remaining imbalance, 

against the Contracts of other Clearing Members; or 

(iv) To be settled at the Settlement Price for such Contracts, or at such other price or 

prices as Eris Clearing may deem fair and reasonable under the circumstances, in 

which event Eris Clearing may cause Contracts in the accounts of other Clearing 

Members to be settled at such price or prices; or 

(v) Take any other action with respect to open positions it deems in the best interest of 

the Clearinghouse or Clearing Members. 

(vi) In connection with any action undertaken by Eris Clearing pursuant to 

subparagraphs (i) through (v) above, Eris Clearing shall have the right to apply the 

Margin of the applicable Clearing Member and any other assets of such Clearing 

Member held by, pledged to or otherwise available to Eris Clearing, including any 

guarantee issued pursuant to these Rules, to discharge the Obligations of such 

Clearing Member to Eris Clearing (including any costs and expenses associated 

with the liquidation, transfer or management of Contracts held in or for the accounts 

of such Clearing Member, and any fees, assessments or fines imposed by Eris 

Clearing on such Clearing Member). 

(e) Eris Clearing may delegate to specified Officers or agents of Eris Clearing the authority to 

determine, within such guidelines, if any, as Eris Clearing shall prescribe, the nature and 

timing of transactions of the type described in subparagraph (d). If Eris Clearing shall 

determine, taking into account the size and nature of a suspended Clearing Member’s 

positions, market conditions prevailing at the time, the potential market effects of 

liquidating transactions that might be directed by Eris Clearing, and such other 

circumstances as Eris Clearing deems relevant, that the closing out of some or all of the 

suspended Clearing Member’s positions would not be in the best interests of Eris Clearing, 

other Clearing Members, or the general public, such positions need not be closed out. 

(f) Protective Action. If Eris Clearing (i) is unable, for any reason, to close out in a prompt 

and orderly manner any positions or to convert to cash any Margin deposits of a suspended 

Clearing Member, or (ii) elects pursuant to paragraph (d) of this Rule not to close out any 

such positions, Eris Clearing may authorize the execution of hedging transactions from 

time to time for the account of Eris Clearing, solely for the purpose of reducing the risk to 

Eris Clearing resulting from the continued maintenance of such positions or the continued 

holding of such Margin deposits. Eris Clearing may delegate to specified Officers or agents 

of Eris Clearing the authority to determine, within such guidelines, if any, as Eris Clearing 

shall prescribe, the nature and timing of such hedging transactions. 

(g) Reimbursement of Costs and Expenses. Any costs or expenses, including losses, sustained 

by Eris Clearing in connection with transactions effected for its account pursuant to this 

Rule shall be charged to the suspended Clearing Member, and any gains realized on such 
AprilNovember 2019 

36 

136946590

transactions shall be credited to such Clearing Member; provided, however, that costs, 

expenses, and gains allocable to the hedging of positions in a Customer Account shall be 

charged or credited, as the case may be, to the Customer Account, and only the excess, if 

any, of such costs and expenses over the funds available in that account shall be charged 

to the Clearing Member. Reasonable allocations of costs, expenses, and gains among 

accounts made by Eris Clearing for the purpose of implementing the proviso to the 

preceding sentence shall be binding on the Clearing Member and any persons claiming 

through the Clearing Member and their respective successors and assigns. 

602. Right of Appeal. 

(a) A Clearing Member suspended pursuant to Rule 601 shall be entitled, upon request within 

five Business Days after the date of its suspension, to a written statement of the grounds 

for its suspension and shall have the right to appeal its suspension in accordance with the 

following procedure: 

(i) A suspended Clearing Member may appeal its suspension by filing a written notice 

of appeal within five Business Days after the date of its receipt of a written 

statement of the grounds for its suspension. 

(ii) Appeals shall be considered and decided by the Appeal Panel. Appeals shall be 

heard as promptly as possible, and in no event more than five Business Days after 

the filing of the notice of appeal. The appellant shall be notified of the time, place 

and date of the hearing not less than three Business Days in advance of such date. 

At the hearing, the appellant shall be afforded an opportunity to be heard and to 

present evidence in its own behalf, and may, if it so desires, be represented by 

counsel. As promptly as possible after the hearing, the Appeal Panel shall, by the 

vote of a majority of its members, affirm or reverse the suspension or modify the 

terms thereof. The appellant shall be notified in writing of the Appeal Panel’s 

decision; and if the decision shall have been to affirm or modify the suspension, the 

appellant shall be given a written statement of the grounds therefor. 

(iii) Any decision by the Appeal Panel to affirm or modify a suspension shall be 

reviewable by the Board on its own motion or on written demand by the appellant 

filed with Eris Clearing within three Business Days after receipt of notice of the 

Appeal Panel’s decision. The Board may afford the appellant a further opportunity 

to be heard or to present evidence. The appellant shall be notified in writing of the 

decision of the Board; and if the decision shall have been to affirm or modify the 

suspension, the appellant shall be given a written statement of the grounds therefor. 

(iv) The filing of an appeal pursuant to this Rule shall not impair the validity or stay the 

effect of the suspension appealed from. The reversal or modification of a 

suspension shall not invalidate any acts of Eris Clearing taken pursuant to such 

suspension prior to such reversal or modification, and the rights of any person 

which may arise out of any such acts shall not be affected by such reversal or 

modification. 
AprilNovember 2019 

37 

136946590

(v) A record shall be kept of any hearing held pursuant hereto. The cost of the transcript 

may, in the discretion of the body holding the hearing, be charged in whole or in 

part to the suspended Clearing Member in the event that the suspension is finally 

affirmed. 

603. Sanctions from Disciplinary Proceedings. 

(a) Eris Clearing may censure, suspend, expel or limit the activities, functions or operations 

of, and/or impose a fine on (each a “sanction”), a Clearing Member for (i) a violation of 

the Rules or its agreements with Eris Clearing or the Exchange, (ii) any neglect or refusal 

by such Clearing Member to comply with any applicable order or direction of Eris Clearing 

or the Exchange, (iii) any error, delay or other conduct that materially and adversely affects 

the operations of Eris Clearing or Eris Exchange, (iv) a violation of the rules of the 

Exchange, or (v) a failure to provide adequate personnel or facilities, where applicable, for 

its transactions with Eris Clearing. 

(b) Eris Clearing shall provide prompt notice to the CFTC of any action taken in accordance 

with this Rule 603. 

604. Procedures for Disciplinary Proceedings. 

(a) Before any sanction is imposed pursuant to Rule 603, Eris Clearing shall furnish the person 

against whom the sanction is sought to be imposed (“Respondent”) with a concise written 

statement of the charges against the Respondent. The Respondent shall have ten Business 

Days after the service of such statement to file with Eris Clearing a written answer thereto. 

The answer shall admit or deny each allegation contained in the statement of charges and 

may also contain any defense which the Respondent wishes to submit. Allegations 

contained in the statement of charges which are not denied in the answer shall be deemed 

to have been admitted, and any defense not raised in the answer shall be deemed to have 

been waived. If an answer is not filed within the time prescribed above or any extension 

thereof granted pursuant to paragraph (d) of this Rule, the allegations contained in the 

statement of charges shall be deemed to have been admitted, and the sanction specified in 

the final request shall be imposed without further proceedings and the Respondent shall be 

notified thereof in writing. If an answer is timely filed, Eris Clearing shall (unless the 

Respondent and Eris Clearing shall have stipulated to the imposition of an agreed sanction) 

schedule a hearing before the Disciplinary Panel. The Respondent shall be given not less 

than three Business Days advance notice of the place and time of such hearing. At the 

hearing, the Respondent shall be afforded the opportunity to be heard and to present 

evidence in its behalf and may be represented by counsel. A record of the hearing shall be 

prepared and the cost of the transcript may, in the discretion of the Disciplinary Panel, be 

charged in whole or in part to the Respondent in the event any sanction is imposed on the 

Respondent. As soon as practicable after the conclusion of the hearing, the Disciplinary 

Panel shall furnish the Respondent and the Board with a written statement of its decision. 

If the decision shall have been to impose a disciplinary sanction, the written statement shall 

set forth (i) any act or practice in which the Respondent has been found to have engaged, 

or which the Respondent has been found to have omitted; (ii) the specific provisions of the 

Rules which any such act, practice or omission has been deemed to violate; and (iii) the 

sanction imposed and the reasons therefor. 
AprilNovember 2019 

38 

136946590

(b) In the event that (i) the Disciplinary Panel censures, fines, suspends, expels or limits the 

activities, functions or operations of a Respondent, or (ii) determines not to impose any 

disciplinary measures on a Respondent, the Respondent, in the case of (i) above, or the 

President, in the case of (ii) above, may apply for review to the Board, by written motion 

filed with Eris Clearing within five Business Days after issuance of the Disciplinary Panel’s 

written statement of its decision. 

(c) The granting of any such motion shall be within the discretion of the Board. In addition, 

the Board may determine to review any such action by the Disciplinary Panel on its own 

motion. Review by the Board shall be on the basis of the written record of the proceedings 

in which the sanction was imposed, but the Board may, in its discretion, afford the 

Respondent a further opportunity to be heard or to present evidence. A record shall be kept 

of any such further proceedings. Based upon such review, the Board may affirm, reverse 

or modify, in whole or in part, the decision of the Disciplinary Panel. The Respondent shall 

be notified in writing of the decision of the Board and if the decision shall have been to 

affirm or modify the imposition of any disciplinary sanction, the Respondent shall be given 

a written statement setting forth (i) any act or practice in which the Respondent has been 

found to have engaged, or which the Respondent has been found to have omitted; (ii) the 

Rules which any such act, practice or omission has been deemed to violate; and (iii) the 

sanction imposed and the reasons therefor. 

(d) Any time limit set forth in this Rule may be extended by the body having jurisdiction over 

the matter in respect of which the time limit is imposed. 

(e) Any action taken by the Disciplinary Panel hereunder shall be deemed to be final upon (i) 

expiration of the time provided for the filing of a motion for review, or any extension 

thereof granted pursuant to paragraph (d) hereof; or (ii) if a motion for review is timely 

filed, when the Respondent is notified of the denial of the motion or the decision of the 

Board on review, as the case may be; or (iii) if the Board shall determine on its own motion 

to review the action by the Disciplinary Panel, when the Respondent is notified of the 

decision of the Board on review. 

(f) The summary suspension of a Clearing Member pursuant to Rule 601 shall not be deemed 

to be a “sanction” within the meaning of this Rule, and the provisions of this Rule shall be 

inapplicable to any such summary suspension. 

605. Discipline by Other Self-Regulatory Organizations. 

(a) At the discretion of the Clearinghouse, any suspected violation of these Rules may be 

referred to the enforcement staff of the Exchange. 

(b) Any inquiry, investigation or disciplinary action resulting from a suspected violation of 

these Rules may be handled by Clearinghouse personnel, Exchange personnel, or personnel 

that serve in roles at both the Clearinghouse and the Exchange. 

(c) Nothing in this Chapter 6 shall affect the right of any Self-Regulatory Organization to 

discipline its members pursuant to the provisions of its rules for a violation of the Rules of 

Eris Clearing. 
AprilNovember 2019 

39 

136946590

606. Restriction on or Termination of Clearing Privileges. 

(a) If (x) a Removal Event occurs with respect to a Clearing Member, or (y) Eris Clearing 

determines that the financial or operational condition of a Clearing Member or one of its 

affiliates is such that to allow the Clearing Member to continue its operation as a Clearing 

Member could adversely affect Eris Clearing or cleared markets (whether or not such 

Clearing Member continues to meet the required minimum financial requirements, if 

applicable), Eris Clearing may: 

(i) Allow such Clearing Member (in the case of an FCM Clearing Member handling 

Customer Accounts) to submit Contracts for clearing solely for its Member 

Property Account; 

(ii) Limit or restrict the type of Contracts that may be cleared by such Clearing Member 

in any of its Accounts with Eris Clearing; 

(iii) Limit or restrict the number of Contracts that are permitted to be maintained by 

such Clearing Member in any of its Accounts with Eris Clearing; 

(iv) Decline to accept new trades or positions in Contracts for the Accounts of the 

Clearing Member; 

(v) Increase such Clearing Member’s Margin requirements and/or require such 

Clearing Member to deposit the same in cash or Eligible Securities in proportions 

different than those that are applicable to Clearing Members generally; 

(vi) Allow such Clearing Member to submit Contracts for liquidation only; 

(vii) Prohibit such Clearing Member from withdrawing excess Original Margin; 

(viii) Cause open Contracts in the Member Property Account or Customer Account of 

the Clearing Member to be transferred to another Clearing Member; 

(ix) Cause open Contracts to be settled in cash or liquidated; 

(x) Impose such additional capital, Margin, financial reporting or other requirements 

as Eris Clearing shall deem appropriate for the protection of Eris Clearing and its 

Clearing Members; 

(xi) Terminate the Clearing Member’s membership in Eris Clearing; or 

(xii) Take any other actions it deems proper or in the best interest of the Clearinghouse 

or its Clearing Members. 

(b) Eris Clearing has no obligation to clear trades made on the Exchange or any other trading 

facility where such Clearing Member does not have trading privileges or is not approved 

for the clearing privileges by the relevant facility. 

(c) A Person once qualified as a Clearing Member may voluntarily withdraw from Clearing 

Member status and terminate its clearing privileges upon the approval of Eris Clearing, 

which approval shall be granted not later than 30 days following (i) the liquidation or, with 
AprilNovember 2019 

40 

136946590

the approval of Eris Clearing, transfer to another Clearing Member of all open positions in 

the Clearing Member’s Accounts at Eris Clearing, and (ii) the satisfaction of all Obligations 

of the withdrawing Clearing Member; provided, however that such Person shall remain 

subject to, and responsible for any violation of, the Rules, interpretations and policies of 

Eris Clearing committed by such Person while a Clearing Member, notwithstanding any 

termination of clearing privileges and Clearing Member status. 

(d) When a Clearing Member voluntarily withdraws from membership or its membership is 

terminated, all Obligations of the Clearing Member to Eris Clearing, of whatever nature or 

kind, shall be accelerated and become due and payable upon the effective date of such 

withdrawal or termination. The Clearing Member’s funds, Collateral and other deposits 

will not be released until Eris Clearing determines that all such Clearing Member’s 

Obligations have been settled and all sums owing to Eris Clearing have been paid. 

(e) Any disputes which arise while a Clearing Member which relate to or arise out of any 

transaction with Eris Clearing or status of a Clearing Member in Eris Clearing shall be 

resolved in accordance with the Rules. 

607. Just and Equitable Principles of Trade; Acts Detrimental to the Clearinghouse. 

(a) Eris Clearing shall have the authority to take any actions it deems in the best interest of the 

Clearinghouse or the Clearing Members. 

(b) Eris Clearing shall have the power to suspend or revoke clearing privileges or authorize 

the assessment of fines or charges against Clearing Members for engaging in conduct 

inconsistent with just and equitable principles of trade. 

(c) Eris Clearing shall have the power to suspend or revoke clearing privileges or authorize 

the assessment of fines or charges against Clearing Members for engaging in acts 

detrimental to the interest or welfare of Eris Clearing. 

7. MISCELLANEOUS 

701. Force Majeure. 

Notwithstanding any other provision of these Rules, Eris Clearing shall not be obligated to perform 

its obligations under these Rules or any agreement with a Clearing Member relating to Contracts, 

or to compensate any Person for losses occasioned by any delay or failure of performance, to the 

extent such delay or failure is the result of acts of God, lightning, earthquake, fire, epidemic, 

landslide, drought, storm, explosion, flood, nuclear radiation, act of a public enemy, terrorist 

activity, act of state or blockade, insurrection, riot or civil disturbance, strike or labor disturbance, 

power or communications failure, performance or operation (or non-performance or nonoperation) of any digital asset or Ancillary DL in a manner adverse to the Clearinghouse or more 

than one Clearing Member attributable directly or indirectly to the design of the digital asset or 

Ancillary DL (as determined by Eris Clearing) or any other cause beyond Eris Clearing’s 

reasonable control (whether or not similar to any of the foregoing). If Eris Clearing shall, as a 

result of any of the above-described events, fail to perform any of its obligations, such failure shall 
AprilNovember 2019 

41 

136946590

be excused for a period equal to the period of delay caused by such event. In such an event, Eris 

Clearing shall give written notice thereof to the Exchange or such Clearing Member, as the case 

may be, as soon as it is reasonably practicable and attempt diligently to remove such condition. 

Eris Clearing complies with CFTC rules requiring systems and procedures be in place to meet a 

recovery time objective of no later than the next business day following a disruption. 

702. Suspension of Rules. 

The time frames fixed by these Rules, interpretations or policies of Eris Clearing for the doing of 

any act or acts may be extended, or the doing of any act or acts required by these Rules or any 

interpretations or policies of Eris Clearing may be waived, and any provision of these Rules or any 

interpretations or policies of Eris Clearing may be suspended by Eris Clearing whenever, in the 

judgment of the Board or the Officers, such extension, waiver or suspension is necessary or in the 

best interest of Eris Clearing. Any such extension or waiver may continue in effect after the event 

or events giving rise thereto but shall not continue in effect for more than thirty calendar days after 

the date thereof unless it shall be approved by the Board within such period of 30 calendar days. 

A written report of any such extension or waiver, stating the pertinent facts and the reason such 

extension or waiver was deemed necessary or in the best interest of Eris Clearing shall be presented 

to the Board at its next regular meeting. 

703. Confidentiality. 

(a) All information received by Eris Clearing concerning positions carried by Eris Clearing or 

any other clearing organization for a Clearing Member or deliveries made by or to a 

Clearing Member, and any other information provided by a Clearing Member to Eris 

Clearing, including, without limitation, financial statements filed with Eris Clearing by a 

Clearing Member, shall be held in confidence by Eris Clearing and shall not be made 

known to any other Person except as follows: 

(i) With the consent of the Clearing Member; 

(ii) To a Government Agency or the regulatory authority of any foreign jurisdiction, if 

Eris Clearing is requested or legally required to do so by such Government Agency; 

(iii) Pursuant to legal process; 

(iv) To an exchange (including, without limitation, any contract market, swap execution 

facility or other trading facility) of which such Clearing Member is a member, 

provided that information relating to positions, margin payments and deliveries that 

is furnished to an exchange shall relate solely to contracts traded on that exchange; 

(v) To a Self-Regulatory Organization of which such Clearing Member is a member; 

(vi) To any Person providing services to Eris Clearing, subject to appropriate 

confidentiality requirements; 

(vii) To the Board, any Committee, Eris Clearing or the Exchange’s Officers, 

employees, attorneys and auditors, and to agents and independent contractors that 
AprilNovember 2019 

42 

136946590

have been engaged by Eris Clearing or the Exchange who require such information 

in connection with the discharge of their duties to Eris Clearing; and 

(viii) As otherwise permitted under the Rules. 

704. Information-Sharing Agreements 

(a) Eris Clearing may enter into information-sharing agreements or other arrangements or 

procedures to coordinate surveillance with the Exchange and with other markets or clearing 

organizations on which Contracts or financial instruments related to Contracts trade or are 

cleared. As part of any information sharing agreements or other arrangements or 

procedures adopted pursuant to this Rule, Eris Clearing may, among other things: 

(i) provide market surveillance reports to other markets and clearing organizations; 

(ii) share information and documents concerning current and former Clearing Members 

with other markets and clearing organizations; 

(iii) share information and documents concerning ongoing and completed investigations 

with other markets and clearing organizations; and/or 

(iv) require its Clearing Members to provide information and documents to Eris 

Clearing at the request of other markets or clearing organizations with which Eris 

Clearing has an information-sharing agreement or other arrangements or 

procedures. 

(b) Eris Clearing may enter into an information-sharing arrangement with any Person or body 

(including, without limitation, any Government Authority or any Self-Regulatory 

Organization) if Eris Clearing (i) believes that such Person or body exercises a legal or 

regulatory function under any law or regulation, or a function comprising or associated 

with the enforcement of a legal or regulatory function, or (ii) considers such arrangement 

to be in furtherance of Eris Clearing’s purpose or duties under applicable law. Eris Clearing 

may disclose to any Person or body information concerning or associated with a Clearing 

Member or other Person that Eris Clearing believes is necessary and appropriate in 

exercising a legal or regulatory function (including, without limitation, information 

concerning any aspect of the business of Eris Clearing) whether or not a formal 

arrangement governing the disclosure exists or a request for information was made. 

705. Trading by Officers and Employees Prohibited. 

(a) No Officer or employee of Eris Clearing shall trade or participate directly or indirectly in 

any transaction in any futures, option, or swap traded on any U.S. designated contract 

market, that are closely related to the Contracts cleared by the Clearinghouse, except to the 

extent necessary to carry out the provisions of the Rules or as otherwise permitted pursuant 

to an exemption granted in accordance with this Rule; or 

(b) No Officer, Director, or employee of Eris Clearing shall disclose any material, non-public 

information obtained as a result of such Person’s employment with Eris Clearing where the 

Officer or employee has or should have a reasonable expectation that the information 
AprilNovember 2019 

43 

136946590

disclosed may assist another Person in trading any commodity interest; provided, that an 

employee is not prohibited from making disclosures in the course of the employee’s duties, 

or to another Self-Regulatory Organization, court of competent jurisdiction or 

representative of any agency or department of the federal or state government acting in his 

or her official capacity. 

(c) Eris Clearing may adopt certain exemptions from the trading prohibition contained in 

paragraph (a)(i), provided that any such exemptions shall be consistent with CFTC 

Regulations and applicable State Regulations. 

(d) All terms used in this Rule shall be construed consistently with the definitions appearing 

in CFTC Regulation 1.59. 

706. Forms; Facsimile Signatures. 

(a) Eris Clearing shall prescribe the form, method and time of delivery of any application, list, 

notice or other document required pursuant to these Rules or the policies or practices of 

Eris Clearing. 

(b) A Clearing Member or a Clearing Member’s representative may execute any document to 

be delivered to Eris Clearing or to any other Clearing Member pursuant to these Rules or 

any policy or practice of Eris Clearing by means of a mechanically or electronically 

reproduced facsimile signature if it otherwise satisfies any requirements of Eris Clearing 

for use of such facsimile signatures. 

707. Governing Law; Legal Proceedings. 

(a) These Rules, the Clearing Member Agreement and all rights and obligations under the 

foregoing (including the creation of security interests in margin and guaranty fund 

deposits), shall be governed by and construed in accordance with the internal laws of the 

State of Illinois, without giving effect to the conflict of law provisions thereof. 

(b) Any action, suit or proceeding against Eris Clearing, its Officers, directors, limited liability 

company members, employees, or agents, must be brought within one (1) year from the 

time that a cause of action has accrued. Any such action, suit or proceeding shall be brought 

in the State or Federal courts located within Chicago, Illinois. Each Clearing Member 

expressly consents, for itself and its Authorized Representatives, to the jurisdiction of any 

such court, waives any objection to venue therein, and waives any right it may have to a 

trial by jury. 

(c) In the event that a Clearing Member or an affiliate of such Clearing Member fails to prevail 

in a lawsuit or other legal proceeding instituted by such Clearing Member against (i) Eris 

Clearing or (ii) any affiliate of Eris Clearing or any of their respective officers, directors, 

equity holders, employees, agents, or any member of any Committee, and related to the 

business of Eris Clearing, such Clearing Member shall pay to Eris Clearing all reasonable 

expenses, including attorneys’ fees, incurred by Eris Clearing in the defense of such 

proceeding. This paragraph (c) shall not apply to Eris Clearing disciplinary actions, appeals 

thereof, or an instance in which the Board or the Officers have granted a waiver of the 

provisions hereof. 
AprilNovember 2019 

44 

136946590

708. Dispute Resolution 

(a) All Clearing Members shall be required to arbitrate all disputes between or among 

themselves that relate to or arise out of any transaction submitted for clearing to Eris 

Clearing in accordance with Exchange Rule 801. For these purposes, each Clearing 

Member shall be deemed a “Member” for purposes of Exchange Rule 801. 

(b) Disputes involving Customers may be arbitrated in accordance with Exchange Rule 801(c). 

709. Contracts 

Eris Clearing may approve as eligible for clearing contracts with terms and conditions matching 

the terms and conditions in the Exchange rulebook for such contracts and to the extent permissible 

under Applicable Law. Any new contract that Eris Clearing has approved as eligible for clearing 

shall be posted on Eris Clearing’s website and certified with or otherwise approved by the CFTC 

in accordance with CFTC Regulations, as necessary.