CX Clearinghouse, L.P. 

Rule Amendment Submission #2023-01

May 9, 2023

1. The text of the changes to the CX Clearinghouse (“Clearinghouse”) Rules is attached. 

These changes were approved by the Board of Directors by email voting conducted from May 3 

to May 9, 2023.

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

Trading Commission (“Commission”) of this submission. 

3. Attached, please find a certification that: (1) this rule complies with the Commodity 

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

submission, the Clearinghouse posted on its website: (i) a notice of pending certification of the 

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

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

rule changes appear below.

5. There were no opposing views expressed regarding this amendment.

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CONCISE EXPLANATION AND ANALYSIS OF THE OPERATION, PURPOSE, AND 

EFFECT OF THE CERTIFIED RULE AND ITS COMPLIANCE WITH APPLICABLE 

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

REGULATIONS THEREUNDER

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

of the operation, purpose, and effect of the amendments to the Rules.

The Clearinghouse proposes removing the definition of guaranty fund as well as the 

requirements regarding its establishment, maintenance and use set forth in its Rules III-1 and 

VII-3. The appropriate deletions are shown in the attachment. 

Currently, the Clearinghouse Rules require the maintenance of at least $1,000,000 guarantee 

fund to be used for payments in the event of a Participant default and to protect the 

clearinghouse’s financial integrity. 

In accordance with Clearinghouse Rule III-1 the guaranty fund contains no customer funds. The 

monies in the guaranty fund are, and have always been, solely Clearinghouse property. 
CERTIFICATIONS PURSUANT TO SECTION 5c OF THE COMMODITY EXCHANGE 

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

17 C.F.R. §40.6

I hereby certify that:

(1) the amended Rule below complies with the Commodity Exchange Act and the 

Commodity Futures Trading Commission’s regulations thereunder; and

(2) concurrent with this submission, CX Clearinghouse, L.P. posted on its 

website, CXMarkets.com: (a) a notice of pending certification of the above Rule 

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

_________________________

By: Thomas Thompson

Title: Chief Compliance Officer 

Date: May 9, 2023

Attachment: Deletion of Guaranty Fund from CXC Rules 
Deletion of Guaranty Fund from 

CX Clearinghouse, L.P. Rules

“Guaranty Fund” means the fund established by the Clearinghouse in accordance 

with Rule III-1 to support its financial integrity. 

III-1 Guaranty Fund

(a) The Clearinghouse shall establish and maintain at all times, in 

accordance with any regulatory requirements and conditions from time to time imposed by 

the CFTC, a Guaranty Fund in an aggregate principal amount equal to the greater of 

(x) $1,000,000 or (y) 1% of the aggregate Original Margin required to be provided by 

Participants. 

(b) Subject to any regulatory requirements and conditions from time to 

time imposed by the CFTC, the Guaranty Fund shall consist of such combination of cash 

in U.S. dollars, interests in money market mutual funds, securities that are direct 

obligations of the U.S. Government, insurance policies or other instruments or assets as the 

Clearinghouse may from time to time decide.

(c) All Guaranty Fund deposits constituting cash or securities shall be 

held at one or more banks from time to time approved by the Clearinghouse for such 

purpose, in one or more accounts separate from all other cash and securities owned or 

controlled by the Clearinghouse.

(d) The Clearinghouse will have full and immediate access to the 

Guaranty Fund at any time, in accordance with these Rules. The Guaranty Fund may be 

applied by the Clearinghouse in accordance with these Rules, on such terms and conditions, 

as the Board may deem necessary or appropriate. 

VII-3 Payments Upon an Event of Default

Upon the occurrence of any Event of Default:

(a) any and all amounts previously paid by the Defaulting Participant 

pursuant to applicable Contract Rules (including any and all amounts of Original Margin, 

Variation Margin and any other margin obligations upon delivery or settlement of the 

Contract, as specified in the relevant Contract Rules, previously paid by the Defaulting 

Participant) and any other assets of such Defaulting Participant under the control of the 

Clearinghouse shall be liquidated and applied by the Clearinghouse to pay any and all 

amounts owing by such Defaulting Participant to the Clearinghouse (the “Defaulted 

Obligations”); and
(b) if the amounts and assets referred to in clause (a) above are in the 

aggregate less than the Defaulted Obligations, and such Defaulting Participant fails to pay 

the Clearinghouse the amount of such deficiency on demand, such Defaulting Participant 

shall continue to be liable therefor, but the amount of such deficiency, until collected from 

such Defaulting Participant, shall be satisfied from the following sources of funds in the 

order listed:

(i) if the President so determines, a loan obtained by the 

Clearinghouse on such terms and conditions as the President may 

determine;

(ii) the Guaranty Fund;

(iii)(ii) such portion, if any, of the surplus of the Clearinghouse as 

the Board may determine to be available for such purpose.

The deficiency, when and as collected, shall be paid to the Clearinghouse.