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LedgerX LLC

Rules

version [__]

March 2019 Draft

For purposes of Designation as a Contract Market
TABLE OF CONTENTS

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CHAPTER 1 Definitions...................................................................................................1

Rule 1.1 Definitions.............................................................................................. 1

Rule 1.2 Rules of Construction .......................................................................... 12

CHAPTER 2 Company Governance..............................................................................13

Rule 2.1 Ownership ........................................................................................... 13

Rule 2.2 Board................................................................................................... 13

Rule 2.3 Officers ................................................................................................ 15

Rule 2.4 Eligibility and Fitness........................................................................... 16

Rule 2.5 LedgerPrime........................................................................................ 18

Rule 2.6 Committees and Subcommittees......................................................... 18

Rule 2.7 Regulatory Oversight Committee ........................................................ 19

Rule 2.8 Risk Management Committee ............................................................. 21

Rule 2.9 Participant Committee ......................................................................... 21

Rule 2.10 Nominating Committee...................................................................... 22

Rule 2.11 Disciplinary Panel and Appeals Committee....................................... 22

Rule 2.12 Emergency Rules .............................................................................. 24

Rule 2.13 Conflicts of Interest............................................................................ 26

Rule 2.14 Recordkeeping .................................................................................. 29

Rule 2.15 Information-Sharing Agreements....................................................... 30

Rule 2.16 Recordkeeping and Reporting Requirements ................................... 31

Rule 2.17 Public Information.............................................................................. 32

CHAPTER 3 Participants...............................................................................................33

Rule 3.1 Jurisdiction, Applicability of Rules ....................................................... 33

Rule 3.2 Participants – Applications, Agreements, Eligibility Criteria, 

Classifications and Privileges ............................................................. 34

Rule 3.3 Participant Obligations......................................................................... 40

Rule 3.4 Customer Account Requirements for FCM Participants...................... 47

Rule 3.5 Customer Funds Maintained With the Company................................. 48

Rule 3.6 Dues, Fees and Expenses Payable by Participants............................ 49

Rule 3.7 Recording of Communications ............................................................ 49

Rule 3.8 Independent Software Vendors........................................................... 49
TABLE OF CONTENTS

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Rule 3.9 Participant Accounts and Customer Accounts .................................... 51

Rule 3.10 Withdrawal of Participant................................................................... 52

CHAPTER 4 Liquidity Providers ....................................................................................54

Rule 4.1 Application and Agreement ................................................................. 54

Rule 4.2 Appointment ........................................................................................ 54

Rule 4.3 Benefits................................................................................................ 55

Rule 4.4 Obligations........................................................................................... 55

CHAPTER 5 Method for Trading Company Contracts ..................................................55

Rule 5.1 User IDs............................................................................................... 55

Rule 5.2 Order Entry and Audit Trail.................................................................. 57

Rule 5.3 Order Type .......................................................................................... 61

Rule 5.4 Trading Contracts on Behalf of Customers ......................................... 62

Rule 5.5 Execution Methods.............................................................................. 62

Rule 5.6 Trading Hours...................................................................................... 63

Rule 5.7 Block Trades........................................................................................ 63

Rule 5.8 Exchange for Physical Transactions ................................................... 64

CHAPTER 6 Clearing and Delivery ...............................................................................66

Rule 6.1 Clearance and Substitution ................................................................. 66

Rule 6.2 Settlement of Company Contracts....................................................... 67

Rule 6.3 Deposit Procedures............................................................................. 68

Rule 6.4 Withdrawal Procedures ....................................................................... 68

Rule 6.5 Deliveries............................................................................................. 69

Rule 6.6 Reconciliation ...................................................................................... 69

Rule 6.7 Swap Data Reporting .......................................................................... 69

CHAPTER 7 Margin.......................................................................................................71

Rule 7.1 Full Collateralization of Company Contracts Required........................ 71

Rule 7.2 Collateral ............................................................................................. 71

Rule 7.3 Segregation of Participant Funds ........................................................ 72

Rule 7.4 Concentration Limits............................................................................ 73

CHAPTER 8 Business Conduct and Trading Practices.................................................73
TABLE OF CONTENTS

(continued)

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Rule 8.1 Scope .................................................................................................. 73

Rule 8.2 Procedures .......................................................................................... 73

Rule 8.3 Prohibited Trading Activity; Prohibitions on Fictitious Transactions, 

Fraudulent Activity and Manipulation.................................................. 74

Rule 8.4 Prohibition on Money Passing, Pre-Arranged, Pre-Negotiated and 

Non-Competitive Trades ..................................................................... 75

Rule 8.5 Acts Detrimental to the Welfare or Reputation of the Company 

Prohibited............................................................................................ 75

Rule 8.6 Misuse of the Platform......................................................................... 75

Rule 8.7 Supervision; Information Sharing ........................................................ 76

Rule 8.8 Business Conduct................................................................................ 76

Rule 8.9 Trading Practices................................................................................. 77

Rule 8.10 Customer Order Priority..................................................................... 78

Rule 8.11 Trading Against Customer Orders..................................................... 79

Rule 8.12 Prohibition on Withholding of Customer Orders ................................ 79

Rule 8.13 Execution Priority............................................................................... 79

Rule 8.14 Crossing Orders ................................................................................ 80

Rule 8.15 Position Limits ................................................................................... 80

Rule 8.16 Position Accountability Levels ........................................................... 82

Rule 8.17 Aggregation of Positions.................................................................... 83

Rule 8.18 Large Trader Reporting ..................................................................... 83

Rule 8.19 Compliance........................................................................................ 84

CHAPTER 9 Discipline and Enforcement......................................................................85

Rule 9.1 General................................................................................................ 85

Rule 9.2 Investigations....................................................................................... 88

Rule 9.3 Disciplinary Panel................................................................................ 89

Rule 9.4 Notice of Charges................................................................................ 90

Rule 9.5 Contesting and Appeals ...................................................................... 91

Rule 9.6 Settlements.......................................................................................... 94

Rule 9.7 Notice of Decision................................................................................ 95

Rule 9.8 Penalties.............................................................................................. 95
TABLE OF CONTENTS

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Rule 9.9 Summary Suspension ......................................................................... 96

Rule 9.10 Reporting Violations to the Commission............................................ 98

CHAPTER 10 Arbitration ...............................................................................................99

Rule 10.1 In General.......................................................................................... 99

Rule 10.2 Fair and Equitable Arbitration Procedures ...................................... 100

Rule 10.3 Withdrawal of Arbitration Claim ....................................................... 101

Rule 10.4 Penalties.......................................................................................... 101

Rule 10.5 Arbitration Panel.............................................................................. 102

CHAPTER 11 Miscellaneous.......................................................................................103

Rule 11.1 Adjustments Necessitated by Material Changes in the Underlying. 103

Rule 11.2 Prohibition on Trading by Company Personnel; Misuse of 

Material, Non-Public Information....................................................... 103

Rule 11.3 Property Rights................................................................................ 104

Rule 11.4 Signatures ....................................................................................... 106

Rule 11.5 Governing Law ................................................................................ 106

Rule 11.6 Legal Proceedings........................................................................... 107

Rule 11.7 LIMITATION OF LIABILITY; NO WARRANTIES............................. 107

Rule 11.8 Error Trade Policy............................................................................ 111

Rule 11.9 Company Contacts.......................................................................... 116

Rule 11.10 Reasonability Levels...................................................................... 116

Rule 11.11 No Cancellation Ranges................................................................ 117

Rule 11.12 Amendments to the Rules ............................................................. 117

Rule 11.13 Transfer of Trades......................................................................... 117

CHAPTER 12 Company Contract Specifications ........................................................119

Rule 12.1 USD/BTC Options ........................................................................... 119

Rule 12.2 Day-Ahead USD/BTC Swaps.......................................................... 121

Rule 12.3 USD/BTC Weekly Options............................................................... 124

Rule 12.4 Day-Ahead USD/BTC Options ........................................................ 127
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Rules of LedgerX LLC

Introduction

The Commodity Exchange Act requires that LedgerX LLC comply with the core principles set 

forth in the Commodity Exchange Act, as amended, and the regulations, rules and orders of the 

Commodity Futures Trading Commission, and establish, monitor and enforce its Rules relating 

to its business as a Swap Execution Facility, Designated Contract Market and Derivatives 

Clearing Organization. The following Rules of LedgerX LLC pertain to the trading of Company 

Contracts on the Company DCM and the Company SEF, the clearing of Company Contracts on 

the Company DCO and the rights and Obligations of Participants in connection with such 

activities.

CHAPTER 1 Definitions

Rule 1.1 Definitions

As used in these Rules, the following terms have the following respective meanings:

Affiliate: A Person who, directly or indirectly, controls, is controlled by, or is under 

common control with another Person.

Appeals Committee: A committee of the Board composed of Directors pursuant to Rule 

2.11, and that acts in an adjudicative role and fulfills various adjudicative responsibilities 

and duties as described in Chapter 9.

Applicable Law: With respect to any Person, any statute, law, regulation, rule or 

ordinance of any government, governmental or self-regulatory authority applicable to 

such Person, including without limitation the CEA and CFTC Regulations and any laws 

and regulations relating to economic or trade sanctions.

As soon as technologically practicable: As soon as possible, taking into consideration 

the prevalence, implementation and use of technology by comparable market 

participants.

Authorized Representative: With respect to any Participant that is an entity, an officer 

of such entity who is responsible for supervising all activities of the Participant, its 

Authorized User(s) and its employees relating to Transactions, and for providing 

information regarding the Participant to the Company upon request of the Company.
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Authorized User: A natural person who is either employed by or is an agent of a 

Participant and who is authorized by the Participant to trade on the Company DCM 

and/or the Company SEF on behalf of the Participant, and in the case of FCM 

Participants, intermediate Orders and clear Transactions on behalf of Customers, 

provided that the Participant maintains supervisory authority over such individual’s 

trading activities, but Authorized Users shall not include (i) employees or agents of 

Customers or (ii) Customers that are natural persons.

Block Trade: A privately negotiated transaction effected away from the Platform in 

accordance with Rule 5.7.

Board: The Board of Directors of the Company.

Bitcoin: A Digital Currency.

Business Day: Any day on which the Company DCM or the Company SEF is open for 

trading, as the context requires.

CEA: The Commodity Exchange Act, as amended.

CFTC Regulations: The regulations of the CFTC, as in effect from time to time, 

including any Commission-issued orders or interpretive or no-action letters.

Chief Compliance Officer: The individual appointed by the Board to serve as the 

Company’s chief compliance officer.

Chief Executive Officer: The individual appointed by the Board to serve as the 

Company’s chief executive officer.

Chief Risk Officer: The individual appointed by the Board to serve as the Company’s 

chief risk officer.

Cleared Swaps Customer: As defined in §22.1 of CFTC Regulations.

Cleared Swaps Customer Account: As defined in §22.1 of CFTC Regulations and, for 

purposes of these Rules, shall include an account established and maintained for a 

Cleared Swaps Customer by the Company on the Company’s books and records to 

which a financial asset is or may be credited in accordance with these Rules and such 

other procedures as the Company may implement from time to time.

Collateral Account: With respect to: (1) Participants, including an FCM Participant’s 

Proprietary Accounts, each Participant’s and FCM Participant’s Participant Account and 
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an account opened and maintained by the Company at a Settlement Bank (a) to which a 

Participant or FCM Participant transfers funds and (b) from which the Company is 

authorized to debit fees and margin or option premium, and debit or credit settlement 

payments, as applicable; and (2) FCM Participants, each FCM Participant’s Customer 

Account and an account opened and maintained by the Company at a Settlement Bank 

(a) to which an FCM Participant transfers Customer Funds and (b) from which the 

Company is authorized to debit fees and margin or option premium, and debit or credit 

settlement payments, as applicable.

Cleared Swaps Customer Collateral: As defined in §22.1 of CFTC Regulations.

Cleared Swaps Proprietary Account: As defined in §22.1 of CFTC Regulations.

Clearing Privileges: Any right granted by the Company to a Participant to clear 

Company Contracts.

Commission or CFTC: The U.S. Commodity Futures Trading Commission.

Company: LedgerX LLC. For the avoidance of doubt, references to the “Company” 

generally shall refer to the Company in its capacity as a DCM, DCO and/or SEF, as the 

context requires.

Company Contract: Any derivative contract, including a futures contract, option 

contract or swap agreement, based on one or more Underlying and listed for trading on 

the Company DCM or the Company SEF or subject to the Rules.

Company Contract Specifications: The terms and conditions of a Company Contract 

as initially published in the Rules and posted on the Website and thereafter as published 

in the Rules, posted on the Website and sent in Participant Notices.

Company DCM: The Designated Contract Market of the Company.

Company DCO: The Derivatives Clearing Organization of the Company.

Company Official: A Director, Officer, committee member, or such other individual as 

the Board may designate from time to time.

Company Personnel: A Company employee, consultant of the Company, contractor of 

the Company or agent of the Company.

Company Representative: Any Company Official, Company employee, consultant of 

the Company, contractor of the Company or agent of the Company.
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Company SEF: The Swap Execution Facility of the Company.

Company Telecommunication Systems: The Company’s designated 

telecommunications systems (e.g., telephone and instant messaging) used for pre-trade 

communications and noncompetitive executions permitted in accordance with these 

Rules, access to which is provided to Participants by the Company.

Compliance Department: The department, reporting to the Chief Compliance Officer, 

that is responsible for compliance, investigations and disciplinary proceedings.

Critical Security Parameters or CSPs: Company-assigned private authentication 

tokens such as automated passwords and cryptographic keys used to access the 

Platform together with the User ID for security purposes.

Customer: (i) A Participant that has authorized an Executing Participant to execute 

Orders on behalf of such Participant on or subject to the Rules of the Company, 

provided that such Participant shall not be deemed to be a Customer with respect to the 

clearing or settlement of its Transactions or its margin or option premium associated with 

such Transaction; (ii) a Cleared Swaps Customer; (iii) a Futures Customer; or (iv) both 

an Executing Participant’s Customer and a Cleared Swaps Customer or a Futures 

Customer, in each case as the context requires.

Customer Account: A Cleared Swaps Customer Account or a Customer Segregated 

Account, as the context requires.

Customer Funds: As defined in CFTC Regulation 1.3.

Customer ID: The identifying code an FCM Participant assigns to a Customer and 

includes in each Customer Order to identify the individual customer on whose behalf the 

FCM Participant is exercising Trading Privileges and/or Clearing Privileges.

Customer Segregated Account: A “futures account,” as defined in CFTC Regulation 

1.3, and, for purposes of these Rules, shall include an account established and 

maintained for a Futures Customer by the Company on the Company’s books and

records to which a financial asset is or may be credited in accordance with these Rules 

and such other procedures as the Company may implement from time to time.

Customer Type Indicator Code or CTI: A symbol that indicates the buying and selling 

customer types, as required by CFTC Regulation 1.35(g).
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Derivatives Clearing Organization or DCO: As set forth in Section 1a(15) of the CEA 

and registered with the Commission pursuant to Section 5b of the CEA and in 

accordance with the provisions of Part 39 of CFTC Regulations.

Designated Contract Market or DCM: A board of trade designated by the CFTC as a 

contract market under Section 5 of the CEA and in accordance with the provisions of 

Part 38 of CFTC Regulations.

Digital Currency: A medium of exchange stored and transferred electronically, 

including, but not limited to, Bitcoin.

Director: A member of the Board.

Disciplinary Action: Any inquiry, investigation, disciplinary proceeding, appeal from a 

disciplinary proceeding, summary imposition of fines, summary suspension or other 

summary action.

Disciplinary Panel: A panel appointed by the Regulatory Oversight Committee 

pursuant to Rule 2.11 to act in an adjudicative role and fulfill various adjudicative 

responsibilities and duties as described in Chapter 9.

Discretionary Order: As defined in Rule 8.10.

EFP transaction: An exchange for physical transaction effected away from the Platform 

in accordance with Rule 5.8.

Eligible Contract Participant or ECP: As set forth in Section 1a(18) of the CEA and as 

further defined in CFTC Regulation 1.3(m).

Emergency: Any occurrence or circumstance which, in the opinion of the Board, the 

Chief Executive Officer, the Chief Compliance Officer, or a designee duly authorized to 

issue such an opinion, requires immediate action, and which threatens, or may threaten, 

such things as the fair and orderly trading in, the liquidation, settlement, delivery, or the 

integrity of, any Company Contract, or the timely collection and payment of funds in 

connection with clearing and settlement by the Company, including without limitation:

a any circumstance that may materially affect the performance of any Company

Contract, including without limitation failure of the payment system, the 

bankruptcy or insolvency of any Participant, or any actual, attempted or 

threatened theft or forgery of, or other interference with, the Underlying or 

delivery or transfer thereof;
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b any action taken by any United States or foreign regulatory, self-regulatory, 

judicial, arbitral, or governmental (whether national, state or municipal) or quasigovernmental authority, or any agency, department, instrumentality, or 

subdivision thereof; or other Person exercising, or entitled to exercise any 

administrative, executive, judicial, legislative, police, regulatory or taxing authority 

or power; or any other entity registered with the Commission, board of trade, 

market or facility which may have a direct impact on trading on the Company or 

clearing and settlement of any Company Contract;

c any actual, attempted or threatened corner, squeeze, congestion, or undue 

concentration of positions in any Company Contract;

d any other circumstance that may have a severe, adverse effect upon the 

functioning of the Company DCM, the Company DCO or the Company SEF; or

e any manipulative or attempted manipulative activity.

Emergency Action: An action deemed to be necessary or appropriate to respond to an 

Emergency and taken pursuant to Rule 2.12.

Emergency Rules: Procedures or rules adopted in response to an Emergency pursuant 

to Rule 2.12.

Executing Participant: A Participant that has executed a Participant Application and 

Agreement and is authorized to enter into Orders and Transactions for its own account 

and is authorized to execute Orders as agent for other Participants and is registered with 

the Commission as a futures commission merchant, introducing broker, commodity pool 

operator or commodity trading advisor, or is exempt from registration as such.

FCM Participant: A Participant that is registered with the Commission as a Futures 

Commission Merchant and as a swap firm and to whom the Company has granted 

Trading Privileges and Clearing Privileges with respect to its Customer and Proprietary 

Account, as applicable.

Futures Commission Merchant or FCM: As defined in Section 1a(28) of the CEA and 

in CFTC Regulation 1.3(p).

Futures Customer: As defined in CFTC Regulation 1.3.

Futures Proprietary Account: A “proprietary account,” as defined in CFTC Regulation 

1.3.
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Independent Software Vendor or ISV: A Person that makes available to Participants a 

system or platform offering smart order routing, front-end trading applications, 

aggregation, or a combination of the foregoing, but that does not provide Participants the 

ability to effect Swaps on such system or platform.

LedgerPrime: As defined in Rule 2.5.

Legal Entity Identifier or LEI: The identifying code that is required of each counterparty 

to any swap subject to the CFTC’s jurisdiction and that is used in all recordkeeping and 

all swap data reporting pursuant to Part 45 of CFTC Regulations, including any 

predecessor identifiers and including the Global Markets Entity Identifier or GMEI, which 

is the current identifier required by the CFTC until the establishment of a global Legal 

Entity Identifier system. LEIs must be renewed on an annual basis.

Life Cycle Event: Any event that would result in either a change to a primary economic 

term of a Swap or to any primary economic terms data previously reported to a Swap 

Data Repository in connection with a Swap. Examples of such events include, without 

limitation, a counterparty change resulting from an assignment or novation; a partial or 

full termination of the Swap; a change to the end date for the Swap; a change in the 

cash flows or rates originally reported; availability of a LEI for a Swap counterparty 

previously identified by name or by some other identifier; or a corporate action affecting 

a security or securities on which the swap is based (e.g., a merger, dividend, stock split, 

or bankruptcy). Life Cycle Event data means all of the data elements necessary to fully 

report any Life Cycle Event. 

Liquidity Provider: As defined in Chapter 4.

Liquidity Provider Agreement: An agreement between the Company and a Liquidity 

Provider that must be executed for a Participant to act as a Liquidity Provider.

Market Participant Director: A Director who has been found by the Board to be an 

authorized representative of a Participant and suitable to be a Director pursuant to 

Section 5b(c)(2)(Q) of the CEA. 

Matching Engine: The set of algorithms through which Orders are matched.

Material Relationship: As set forth in Rule 2.2F.

NFA: The National Futures Association.
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Nominating Committee: The committee of the Board constituted in accordance with 

Rule 2.10.

Notice of Charges: As set forth in Rule 9.4.

Novation: The process by which a party to a Swap transfers all of its rights, liabilities, 

duties and obligations under the Swap to a new legal party other than the counterparty 

to the Swap. The transferee accepts all of the transferor's rights, liabilities, duties and 

obligations under the swap. A Novation is valid as long as the transferor and the 

remaining party to the Swap are given notice, and the transferor, transferee and 

remaining party to the Swap consent to the transfer.

Obligation: Any Rule, order or procedure issued by the Company, including a 

Participant Notice or other requirement implemented by the Company under the Rules 

(including each term and condition of a Company Contract), as well as any contractual 

obligations between, on the one hand, a Person, and on the other hand, the Company, 

and any Order or Transaction entered into by a Participant or its Authorized User.

OFAC: The Office of Foreign Assets Control of the U.S. Department of the Treasury.

Officer: An individual as set forth in Rule 2.3.

Operating Agreement: The Limited Liability Company Operating Agreement of the 

Company, as it may be modified from time to time.

Order: Either a bid or an offer for a Company Contract entered on the Platform or 

subject to the Rules.

Oversight Panel: As defined in CFTC Regulation 1.69,

Participant: A Person that has executed the Participant Application and Agreement and 

is authorized to enter into Orders and Transactions for its own account. As used in the 

Rules, the term Participant includes an FCM Participant, an Executing Participant and a 

Liquidity Provider unless the context requires otherwise. A Participant must be an ECP 

to be eligible to enter into Transactions on the Company SEF. A Participant is not 

required to be an ECP to be eligible to enter into Transactions on the Company DCM.

Participant Account: An account established and maintained for a Participant by the 

Company on its books and records to which a financial asset is or may be credited in 

accordance with these Rules and such other procedures as the Company may 

implement from time to time.
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Participant Application and Agreement: An application submitted by an applicant for 

Participant status and an agreement between the Company and a Participant that must 

be executed for a Participant to gain access to the Company DCM, the Company SEF 

and/or the Company DCO for the entry and execution of Orders and/or clearance of 

Transactions.

Participant Committee: The committee of the Board constituted in accordance with 

Rule 2.9.

Participant Notice: A communication sent by or on behalf of the Company to all 

Participants in accordance with Rule 2.17.

Participant Portal: The vehicle through which Participants send and receive messages 

to or from the Company and other Participants, update account and contact information, 

and submit deposit and withdrawal notifications.

Permitted Transaction: Any transaction involving a Swap that is not subject to the trade 

execution requirement in Section 2(h)(8) of the CEA.

Person: As defined in Section 1a(38) of the CEA and in CFTC Regulation 1.3(u).

Platform: The electronic trading facility operated by the Company to provide 

Participants with the ability to execute Orders and Transactions from the interaction of 

multiple bids and multiple offers within a pre-determined, non-discretionary automated 

trade matching and execution algorithm.

Position Limit: The maximum number of positions, either net long or net short, in one 

Series or a combination of various Series with the same Underlying that may be held or 

controlled by a Participant as prescribed by the Company or the Commission.

Proprietary Account: A Cleared Swaps Proprietary Account or a Futures Proprietary 

Account, as the context requires.

Proprietary Data and Personal Information: Information identifying a natural person 

(e.g., name, e-mail address) or other data proprietary to any Person that discloses such 

Person’s trade secrets, market positions and/or other business transactions, excluding 

Transaction Data.

Proprietary Information: As set forth in Rule 11.3A.

Public Director: A Director who has been found by the Board to have no Material 

Relationship with the Company in accordance with Rule 2.2F.
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Public dissemination and publicly disseminate: To publish and make available Swap 

transaction and pricing data in a non-discriminatory manner, through the Internet or 

other electronic data feed that is widely published (in a manner that is freely available 

and readily accessible to the public) and in machine-readable electronic format.

Regulatory Agency: Any government body, including the Commission, and any 

organization, whether domestic or foreign, granted authority under statutory or regulatory 

provisions to regulate its own activities and the activities of its members, and includes 

LedgerX LLC, any other clearing organization or contract market, and the NFA.

Regulatory Oversight Committee: The committee of the Board constituted in 

accordance with Rule 2.7.

Required Swap Continuation Data: As set forth in CFTC Regulation 45.1.

Required Swap Creation Data: As set forth in CFTC Regulation 45.1.

Required Transaction: Any transaction involving a Swap that is subject to the trade 

execution requirement in Section 2(h)(8) of the CEA.

Regulatory Swap Data: Includes (i) Swap Transaction and Pricing Data, (ii) Required 

Swap Creation Data and (iii) Required Swap Continuation Data.

Reporting Counterparty: As set forth in Part 45 of CFTC Regulations and means the 

Participant that is designated as the Reporting Counterparty pursuant to Rule 5.1.

Respondent: Any Person subject to a Disciplinary Action and such Person’s legal 

counsel or representative.

Risk Management Committee: The committee appointed by the Board and constituted 

in accordance with Rule 2.8.

Rules: These rules of the Company, as in effect and as may be amended from time to 

time.

Self-Regulatory Organization: As set forth in CFTC Regulation 1.3(ee) and includes a 

DCO.

Series: All Company Contracts having identical terms, including Settlement Date and 

the value or range of values of an Underlying or category of asset class.

Settlement Bank: A depository approved by the Company as an acceptable location for 

depositing Participant funds or Customer Funds, as applicable.
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Settlement Bank Business Day: A day a Settlement Bank is open for business.

Settlement Date: A Business Day on which: (1) a Participant properly tenders to the 

Company an exercise notice, resulting in the delivery of the Underlying and payment on 

the next Settlement Bank Business Day following the exercise; or (2) the Company

automatically closes out and settles a Participant’s Company Contracts that offset one 

another. A Company Contract that is an option and that has not been exercised on or 

before the last trading day will expire with no value.

Swap: A Company Contract that is a swap as defined in Section 1a(47) of the CEA and 

as further defined by CFTC Regulation 1.3(xxx), and shall include Company Contracts 

that are options as set forth in the Company Contract Specifications.

Swap Data Repository or SDR: As set forth in Section 1a(48) of the CEA and 

registered with the Commission pursuant to Section 21 of the CEA and in accordance 

with Part 49 of CFTC Regulations.

Swap Execution Facility or SEF: As set forth in Section 1a(50) of the CEA and 

registered with the Commission pursuant to Section 5h of the CEA and in accordance 

with the provisions of Part 37 of CFTC Regulations.

Swap Transaction and Pricing Data: Any data required to be reported under Part 43 of 

CFTC Regulations.

Trading Hours: The hours during which Orders may be entered on the Company DCM 

or the Company SEF or subject to the Rules, as set forth in Rule 5.6, and as may be 

revised from time to time, by the Company as disclosed on the Website and through 

Participant Notices.

Trading Privilege: Any right granted by the Company to a Participant to transmit Orders 

for a Company Contract.

Transaction: Any purchase or sale of any Company Contract made on the Company or 

pursuant to the Rules.

Transaction Data: Orders, bids, offers and related information concerning Company 

Contracts executed subject to the Rules, together with all information and other content 

contained in, displayed on, generated by or derived from the Platform.

UCC: The Uniform Commercial Code as in effect in the State of New York.
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Underlying: The index, rate, risk, measure, instrument, differential, indicator, value, 

contingency, commodity, occurrence, or extent of an occurrence that shall determine the 

amount payable or deliverable under a Company Contract.

Unique Swap Identifier or USI: The unique swap identifier, which shall be created, 

transmitted, and used for each swap executed on LedgerX as provided in CFTC 

Regulation 45.5.

User ID: The unique identifier registered with the Company that the Company assigns to 

an Authorized User, and which is included on each Order to enable the Company to 

identify the Person entering such Orders, and, with respect to an Order entered by an 

Executing Participant on behalf of a Customer, the Customer.

Website: The Company home page or a website to which the Company home page has 

a link.

Rule 1.2 Rules of Construction

For purposes of these Rules, the following rules of construction shall apply:

1. Words conveying a singular number include the plural number, where the 

context permits, and vice versa.

2. References to any Regulatory Agency include any successor Regulatory 

Agency.

3. If, for any reason, a Rule is found or determined to be invalid or 

unenforceable by a court of law, the Commission or another 

governmental or quasi-governmental agency with supervisory authority, 

such Rule shall be considered severed from the Rules and all other Rules 

shall remain in full force and effect.

4. All references to time are to the local time in New York, New York unless 

expressly provided otherwise.

5. All terms defined in the UCC and not otherwise defined herein shall have 

the respective meanings accorded to them therein.

6. In the event of a conflict between these Rules and a non-disclosure 

agreement between the Company or an Affiliate of the Company and a 

Participant or Customer, these Rules shall govern.
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7. In the event of a conflict between these Rules and the CEA or CFTC 

Regulations, the applicable provision of the CEA and/or CFTC Regulation 

shall govern.

CHAPTER 2 Company Governance

Rule 2.1 Ownership

The Company is a Delaware limited liability company. The management and operation of the 

Company is governed by the Operating Agreement and the Rules. Participant status does not 

confer any equity interest or voting right in the Company.

Rule 2.2 Board

A. The Board shall, subject to applicable provisions in the Operating Agreement:

1. Be the governing body of the Company;

2. Be constituted, and shall constitute its committees or subcommittees, to 

permit consideration of the views of market participants;

3. Have charge and control of all property of the Company;

4. Provide, acquire and maintain adequate Company offices and facilities;

5. Fix, determine and levy all Participant or other fees when necessary;

6. Determine the Company Contracts and the Company Contract

Specifications;

7. Adopt, amend or repeal any Rules, with the input of Officers and 

committees or subcommittees;

8. Have the power to act in Emergencies as detailed in Rule 2.12; and

9. Have the power to call for review, and to affirm, modify, suspend or 

overrule, any and all decisions and actions of the Officers, committees or 

subcommittees related to the day-to-day business operations of the 

Company.

B. Any authority or discretion by the Rules vested in any Officer or delegated to any 

committee or subcommittee shall not be construed to deprive the Board of such 
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authority or discretion and, in the event of a conflict, the determination of the 

matter by the Board shall prevail.

C. A majority of the Directors serving on the Board, including at least one Public 

Director, shall constitute a quorum for the transaction of business of the Board. 

At all times when the Board is conducting business at a meeting of the Board, a 

quorum of the Board must be present at such meeting, and the Board may act 

only by the decision of a majority of the Directors constituting a quorum of the 

Board by vote at a meeting, by unanimous written consent without a meeting, or 

as otherwise set forth in the Operating Agreement.

D. The Board shall comprise the number of Directors set forth in the Operating 

Agreement, which shall include Public Directors and Market Participant Directors 

in at least the number or percentage required under the CEA or CFTC 

Regulations, but in any event, (i) no less than two Directors shall be Public 

Directors and (ii) no less than two Directors shall be Market Participant Directors. 

Each Director (including Public Directors and Market Participant Directors) shall 

be appointed in accordance with the Operating Agreement, and shall serve until 

his or her successor is duly appointed, or until his or her earlier resignation or 

removal, with or without cause.

E. Each Director is entitled to indemnification pursuant to the Operating Agreement 

with respect to matters relating to the Company.

F. To qualify as a Public Director, an individual must be found, by the Board and on 

the record, to have no Material Relationship, as defined below, with the 

Company. The Board must make such finding at the time the Public Director is 

elected and as often as necessary in light of all circumstances relevant to such 

Public Director, but in no case less than annually. A Material Relationship is one 

that reasonably could affect the independent judgment or decision-making of the 

Director. The Board need not consider previous service as a Director of the 

Company to constitute a Material Relationship. A Director shall be considered to 

have a Material Relationship with the Company if any of the following 

circumstances exist or have existed within the past year:
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1. such Director is or was an Officer or an employee of the Company, or an 

officer or an employee of an Affiliate of the Company; such Director is or 

was a Participant; or

2. such Director is or was a director, an officer, or an employee of a 

Participant.

G. If any of the immediate family of a Director, i.e., spouse, parents, children, and 

siblings, in each case, whether by blood, marriage, or adoption, or any person 

residing in the home of the Director or that of his or her immediate family have a 

Material Relationship as defined above, then that Material Relationship is 

deemed to apply to such Director.

H. The Board shall have procedures, as may be adopted by the Board from time to 

time, to remove a Director where the conduct of such Director is likely to be 

prejudicial to the sound and prudent management of the Company.

I. The Board shall review its performance and that of its individual Directors 

annually and shall consider periodically using external facilitators for such review.

Rule 2.3 Officers

A. The Board shall appoint a Chief Executive Officer, Chief Compliance Officer, 

Chief Risk Officer and such other officers of the Company as it may deem 

necessary or appropriate from time to time.

B. The Chief Compliance Officer must:

1. have the background and skills appropriate for fulfilling the responsibilities 

of the position;

2. be an individual who would not be disqualified from registration under 

Section 8a(2) or 8a(3) of the CEA;

3. report to the Board or, in the event that the Board delegates its authority 

to the Chief Executive Officer, to the Chief Executive Officer; and

4. fulfill his or her duties as required pursuant to CFTC Regulations, 

including, but not limited to, the preparation and submission of an annual 

compliance report as described in CFTC Regulation 39.10(c)(3), and 
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assist the Regulatory Oversight Committee in its preparation of an annual 

report.

C. Any Officer may also be a director, officer, partner or employee of the Company

or of any of its Affiliates, subject to disclosure and resolution of conflicts of 

interest. Notwithstanding the foregoing, the Chief Compliance Officer and the 

Chief Risk Officer must be two different individuals.

D. The Officers shall have such powers and duties in the management of the 

Company as the Board may prescribe from time to time, subject to any limitations 

set forth in the Operating Agreement.

E. Each Officer is entitled to indemnification pursuant to the Operating Agreement 

with respect to matters relating to the Company.

Rule 2.4 Eligibility and Fitness

A. An individual may not serve as a Director or Officer, or serve on a committee or 

subcommittee established by the Board or hold a 10 percent or more ownership 

interest in the Company, if the individual:

1. within the prior three years has been found, by a final decision of a court 

of competent jurisdiction, an administrative law judge, the CFTC, or any 

Self-Regulatory Organization, to have committed a disciplinary offense;

2. within the prior three years has entered into a settlement agreement in 

which any of the findings or, in the absence of such findings, any of the 

acts charged included a disciplinary offense;

3. is currently suspended from trading on a Designated Contract Market or a 

Swap Execution Facility, is suspended or expelled from membership in a 

Self-Regulatory Organization, is serving any sentence of probation, or 

owes any portion of a fine or penalty imposed pursuant to either:

a a finding by final decision of a court of competent jurisdiction, an 

administrative law judge, the CFTC or any Self-Regulatory 

Organization that such person committed a disciplinary offense; or

b a settlement agreement in which any of the findings or, in the 

absence of such findings, any of the acts charged included a 

disciplinary offense;
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4. is currently subject to an agreement with the CFTC or Self-Regulatory 

Organization not to apply for registration with the CFTC or for 

membership in the Self-Regulatory Organization;

5. is currently, or within the past three years has been, subject to a 

revocation or suspension of registration by the CFTC, 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;

6. is currently subject to a denial, suspension or disqualification from serving 

on a disciplinary panel, arbitration panel or governing board of any selfregulatory organization as that term is defined in Section 3(a)(26) of the 

Securities Exchange Act of 1934; or

7. is subject to a statutory disqualification pursuant to Section 8a(2) of the 

CEA.

For purposes of this Rule 2.4A, the terms “disciplinary offense,” “final decision” 

and “settlement agreement” have the meaning given those terms in CFTC 

Regulation 1.63(a).

B. Any Director, Officer, member of a committee established by the Board and any 

individual nominated to serve in any such role, shall immediately notify the Chief 

Executive Officer if such individual is subject to one or more of the criteria in Rule 

2.4A. Prior to nomination to the Board, each individual shall certify he or she is 

not disqualified pursuant to Rule 2.4A. Upon appointment, each Director, Officer, 

and member of a committee shall provide to the Company, where applicable, 

changes in registration information within 30 days and certification of compliance 

accordingly. The Company shall verify information supporting Board compliance 

with eligibility criteria.

C. To serve as a Director, an individual must possess the ability to contribute to the 

effective oversight and management of the Company, taking into account the 

needs of the Company and such factors as the individual’s experience, 

perspective, skills and knowledge of the industry in which the Company operates.

D. A Director or Officer must meet any qualifications set forth from time to time in 

the Operating Agreement.
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E. An individual may not serve on any Disciplinary Panel, arbitration panel, or the 

Appeals Committee during any proceeding affecting or concerning such 

individual, to be determined in a reasonable manner by the Company’s General 

Counsel.

F. If the Company determines that an individual subject to this Rule 2.4 no longer 

meets the criteria set forth in Rule 2.4.A., the Company shall inform the CFTC of 

such determination. The Company shall provide to the CFTC, upon request, an 

individual’s certification of compliance with the criteria set forth in Rule 2.4.A.

Rule 2.5 LedgerPrime

A. The Company’s parent company has established LedgerPrime LLC 

(“LedgerPrime”), a wholly-owned subsidiary of the Company’s parent company,

to make markets in Company products (collectively, the “LedgerPrime 

Contracts”) cleared by the Company and to engage in hedging activities through

various offsetting transactions. Position and counterparty limits, as well as 

parameters on LedgerPrime hedging, will be established by the Company. 

B. LedgerPrime does not receive any preferential pricing from the Company and 

does not have an inherent advantage over any other Participant with respect to 

latency or Order execution speed.

C. LedgerPrime traders are subject to the same access criteria and must abide by 

the same rules as all other Participants.

Rule 2.6 Committees and Subcommittees

A. The Board may create, appoint Directors to serve on, and delegate powers to, 

committees and subcommittees. There shall be a Regulatory Oversight 

Committee, a Risk Management Committee, a Participant Committee, a 

Nominating Committee, a Disciplinary Panel, and an Appeals Committee. The 

Board shall designate the chairperson of each such committee, except that the 

chairperson of the Board shall designate the chairperson of the Appeals 

Committee and the Regulatory Oversight Committee shall designate the 

chairperson of the Disciplinary Panel.
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B. Each committee and subcommittee shall assist in the supervision, management 

and control of the affairs of the Company within its particular area of 

responsibility, subject to the Operating Agreement and the authority of the Board.

C. Subject to the authority of the Board, each committee and subcommittee shall 

determine the manner and form in which its proceedings shall be conducted. A 

majority of the members serving on a committee or subcommittee, including at 

least one Public Director, shall constitute a quorum for the transaction of 

business of a committee or subcommittee. Each committee and subcommittee 

may act only by the decision of a quorum, by vote at a meeting or by unanimous 

written consent without a meeting. The Board has the authority to overrule the 

decisions of any committee or subcommittee.

Rule 2.7 Regulatory Oversight Committee

A. The Regulatory Oversight Committee shall be a standing committee of the Board 

consisting of only Public Directors, as appointed from time to time. No less than 

two Public Directors shall serve on the Regulatory Oversight Committee.

B. Each member of the Regulatory Oversight Committee shall serve for a term of 

one calendar year from the date of his or her appointment or for the remainder of 

his or her term as a Public Director, and until the due appointment of his or her 

successor, or until his or her earlier resignation or removal, with or without cause, 

as a member of the Regulatory Oversight Committee or as a Public Director. A 

member of the Regulatory Oversight Committee may serve for multiple terms.

C. The Regulatory Oversight Committee shall oversee the Company’s regulatory 

program on behalf of the Board. The Board shall delegate sufficient authority, 

dedicate sufficient resources, and allow sufficient time for the Regulatory 

Oversight Committee to fulfill its mandate. The Regulatory Oversight Committee 

shall make such recommendations to the Board that will, in its judgment, best 

promote the interests of the Company. The Regulatory Oversight Committee 

shall also have such other powers and perform such other duties as set forth in 

the Rules and as the Board may delegate to it from time to time.

D. The Regulatory Oversight Committee shall appoint individuals to the Disciplinary 

Panel in accordance with these Rules, Applicable Law and the composition 

requirements of the Disciplinary Panel. The Committee shall appoint at least one 
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person who would not be disqualified from serving as a Public Director, and who 

shall serve as the Chairperson of the Disciplinary Panel.

E. The Regulatory Oversight Committee shall prepare an annual report that 

assesses the Company’s self-regulatory program for the Board and the CFTC. 

The annual report sets forth the regulatory program’s expenses, describes its 

staffing and structure, catalogues disciplinary actions taken during the year, and 

reviews the performance of the Disciplinary Panel. Such report may be prepared 

in conjunction with the Chief Compliance Officer’s annual compliance report as 

required pursuant to CFTC Regulation 39.10(c)(3).

F. Without limiting the generality of the foregoing, the Regulatory Oversight 

Committee shall have the authority to:

1. monitor the regulatory program of the Company for sufficiency, 

effectiveness, and independence;

2. oversee all facets of the regulatory program, including trade practice and 

market surveillance; audits, examinations, and other regulatory 

responsibilities with respect to Participants (including ensuring 

compliance with financial integrity, financial reporting, sales practice, 

recordkeeping, and other requirements); and the conduct of 

investigations;

3. review the size and allocation of the regulatory budget and resources; 

and the number, hiring, termination, and compensation of regulatory 

personnel;

4. supervise the Chief Compliance Officer of the Company, who will report 

directly to the Regulatory Oversight Committee and to the Board or, if the 

Board delegates such authority, to the Chief Executive Officer;

5. recommend changes that would ensure fair, vigorous, and effective 

regulation; and

6. review all regulatory proposals prior to implementation and advise the 

Board as to whether and how such changes may impact regulation.
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Rule 2.8 Risk Management Committee

A. The Risk Management Committee shall be a standing committee consisting of no 

fewer than one Public Director, one Market Participant Director, and one 

Company Officer. The Risk Management Committee also may allow the 

participation of other market participants.

B. Each member of the Risk Management Committee shall serve for a term of one 

calendar year from the date of his or her appointment or for the remainder of his 

or her term as a Public Director, as applicable, and until the due appointment of 

his or her successor, or until his or her earlier resignation or removal, with or 

without cause, as a member of the Risk Management Committee or as a Public 

Director. A member of the Risk Management Committee may serve for multiple 

terms.

C. The Risk Management Committee shall oversee the Company’s risk 

management program. The Board shall delegate sufficient authority, dedicate 

sufficient resources, and allow sufficient time for the Risk Management 

Committee to fulfill its mandate. The Risk Management Committee shall make 

such recommendations to the Board that will, in its judgment, best promote the 

interests of the Company. The Risk Management Committee shall also have 

such other powers and perform such other duties as set forth in the Rules and as 

the Board may delegate to it from time to time.

Rule 2.9 Participant Committee

A. The Participant Committee shall be a standing committee of the Board consisting 

of at least 35 percent Public Directors, as appointed from time to time. No less 

than two Public Directors shall serve on the Participant Committee.

B. Each member of the Participant Committee shall serve for a term of one calendar 

year from the date of his or her appointment or for the remainder of his or her 

term as a Public Director, as applicable, and until the due appointment of his or 

her successor, or until his or her earlier resignation or removal, with or without 

cause, as a member of the Participant Committee or as a Public Director. A 

member of the Participant Committee may serve for multiple terms.

C. The Participant Committee shall determine the standards and requirements for 

initial and continuing membership or participation eligibility; review appeals of 
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Company staff denials of Participant, Executing Participant and Liquidity Provider 

applications; and approve measures that would result in different categories or 

classes of Company membership. In reviewing staff denials, the Participant 

Committee shall not uphold any such Company staff denial if the relevant 

application satisfies the standards and requirements that the Participant 

Committee sets forth. The Participant Committee shall not, and shall not permit 

the Company to, restrict access or impose burdens on access in a discriminatory 

manner, within each category or class of Participants or between similarly 

situated categories or classes of Participants.

Rule 2.10 Nominating Committee

A. The Nominating Committee shall be a standing committee of the Board 

consisting of at least 51 percent Public Directors, as appointed from time to time. 

No less than two Public Directors shall serve on the Nominating Committee.

B. Each member of the Nominating Committee shall serve for a term of one 

calendar year from the date of his or her appointment or for the remainder of his 

or her term as a Public Director, as applicable, and until the due appointment of 

his or her successor, or until his or her earlier resignation or removal, with or 

without cause, as a member of the Nominating Committee or as a Public 

Director. A member of the Nominating Committee may serve for multiple terms.

C. The Nominating Committee shall identify individuals qualified to serve on the 

Board, consistent with criteria approved by the Board, and with the composition 

requirements set forth in the Rules or Operating Agreement. The Nominating 

Committee shall administer a process for the nomination of individuals to the 

Board. The Board shall delegate sufficient authority, dedicate sufficient 

resources, and allow sufficient time for the Nominating Committee to fulfill its 

mandate. The Nominating Committee shall make such recommendations to the 

Board that will, in its judgment, best promote the interests of the Company. The 

Nominating Committee shall also have such other powers and perform such 

other duties as set forth in the Rules and as the Board may delegate to it from 

time to time.

Rule 2.11 Disciplinary Panel and Appeals Committee

A. The Disciplinary Panel shall be:
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1. a standing committee consisting of at least three members, including at 

least one person who would not be disqualified from serving as a Public 

Director who will serve as the chairperson, as appointed from time to 

time. At least one member of the Disciplinary Panel must be a Participant 

or an employee of a Participant. The Board may establish more than one 

Disciplinary Panel. The Regulatory Oversight Committee will appoint 

individuals for membership on the Disciplinary Panel. Each Disciplinary 

Panel shall include members with sufficient differing experience and 

Participant interests so as to ensure fairness and to prevent special 

treatment or preference for any Person.

2. responsible for conducting hearings, rendering decisions, and imposing 

sanctions with respect to any Disciplinary Action. The Disciplinary Panel 

shall also have such other powers and perform such other duties as set 

forth in the Rules and as the Board may determine from time to time.

B. Each member of the Disciplinary Panel shall serve for a term of two calendar 

years from the date of his or her appointment, and until the due appointment of 

his or her successor, or until his or her earlier resignation or removal, with or 

without cause, as a member of the Disciplinary Panel. A member of the 

Disciplinary Panel may serve for multiple terms.

C. The Appeals Committee shall be:

1. a standing committee consisting of at least three members of the Board. 

The members of the Appeals Committee and its Chairperson shall be 

appointed by the Chairperson of the Board, provided that, at all times the 

Appeals Committee shall include at least one Public Director who shall 

serve as the Chairperson of the Appeals Committee.

2. responsible for conducting hearings of appeals of decisions of the 

Disciplinary Panel, rendering decisions of such appeals, and imposing 

sanctions with respect to such appeals. The Appeals Committee shall 

also have such other powers and perform such other duties as set forth in 

these Rules and as the Board may determine from time to time.

D. Each member of the Appeals Committee shall serve for a term of one calendar 

year from the date of his or her appointment or for the remainder of his or her 
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term as a Public Director, as applicable, and until the due appointment of his or 

her successor, or until his or her earlier resignation or removal, with or without 

cause, as a member of the Appeals Committee or as a Public Director. A 

member of the Appeals Committee may serve for multiple terms.

Rule 2.12 Emergency Rules

A. During an Emergency, the Company may implement temporary emergency 

procedures and rules pursuant to Rule 2.12D, subject to the applicable 

provisions of the CEA and CFTC Regulations.

B. The Chief Executive Officer or his or her designee and the Chief Compliance 

Officer or his or her designee, acting in conjunction or, if it is not possible to act in 

conjunction, acting alone, are authorized to determine whether an Emergency 

exists and whether Emergency Rules or Emergency Actions are warranted. 

Emergency Rules may require or authorize the Company, the Board, any 

committee of the Board or any Officer to take Emergency Actions, including, but 

not limited to, the following actions:

1. suspend or curtail trading in, or limit trading to liquidation, for any 

Company Contract;

2. extend or shorten the last trading date for any Company Contract;

3. provide alternative settlement mechanisms for any Company Contract

(including by altering the settlement terms or conditions or fixing the 

settlement price) or suspend the transfer of the Underlying;

4. order the transfer or liquidation of open positions in any Company 

Contract; provided that if a Company Contract is fungible with a contract 

on another platform in addition to the Company, the liquidation or transfer 

of open interest in such Company Contract will be ordered only as 

directed, or agreed to, by CFTC staff or the CFTC;

5. extend, shorten or change the Trading Hours or the expiration date of any 

Company Contract;

6. require Participants to meet special margin requirements;
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7. order the transfer of Company Contracts and the associated margin or 

alter any Company Contract’s settlement terms or conditions;

8. impose or modify position limits, price limits, and intraday market 

restrictions; or

9. any other action, if so directed by the CFTC.

C. Before taking an Emergency Action, the effects of such Emergency Action on 

markets underlying the Company Contract(s) affected by such Emergency 

Action, on markets that are linked or referenced to such Company Contracts and 

similar markets on other trading venues, or any potential conflicts of interest shall 

be considered and documented as required under Rule 2.12F.

D. Before any Emergency Rule may be adopted and enforced, the Regulatory 

Oversight Committee shall approve the implementation of such Emergency Rule 

at a duly convened meeting. If the Chief Executive Officer, or his or her designee, 

or if the Chief Executive Officer or his or her designee is unavailable, the Chief 

Compliance Officer, or his or her designee, determines that Emergency Rules 

must be implemented with respect to an Emergency before a meeting of the 

Regulatory Oversight Committee can reasonably be convened, then the Chief 

Executive Officer, or his or her designee, or if the Chief Executive Officer or his 

or her designee is unavailable, the Chief Compliance Officer, or his or her 

designee, shall have the authority, without Board or committee action, to 

implement any Emergency Rules with respect to such Emergency that he or she 

deems necessary or appropriate to respond to such Emergency. In such 

circumstances, the Chief Executive Officer, or his or her designee, or if the Chief 

Executive Officer or his or her designee is unavailable, the Chief Compliance 

Officer, or his or her designee, must convene a meeting of the Regulatory 

Oversight Committee to ratify the actions taken by the Chief Executive Officer, or 

his or her designee, or the Chief Compliance Officer, or his or her designee, as 

soon as practicable. Whenever the Company implements an Emergency Rule or 

takes an Emergency Action, a duly authorized representative of the Company, 

where possible, will inform Participants through a Participant Notice.

E. The Company will use reasonable efforts to notify the CFTC and the Board prior 

to implementing, modifying or terminating an Emergency Rule. If such prior 
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notification is not possible or practicable, the Company will notify the CFTC and 

the Board as soon as possible or reasonably practicable, but in any event no 

longer than 24 hours after implementing, modifying or terminating an Emergency 

Rule.

F. Upon taking any Emergency Action, the Company will document the decisionmaking process related to such Emergency Action, including the process for 

minimizing conflicts of interest, the extent to which the Company considered the 

effect of its Emergency Action on the Underlying markets and on markets that 

are linked or referenced to the contract market and similar markets on other 

trading venues, and reasons for using emergency authority under this Rule 2.12. 

Such documentation will be maintained in accordance with Rule 2.14.

G. The Chief Executive Officer, or his or her designee, or if the Chief Executive 

Officer or his or her designee is unavailable, the Chief Compliance Officer, or his 

or her designee, may determine that an Emergency has been reduced 

sufficiently to allow the Company to resume normal functioning, in which case 

any Emergency Actions responding to such Emergency will be terminated and a 

duly authorized representative of the Company will inform Participants through a 

Participant Notice.

H. Participants must promptly notify the Company of any circumstance that may 

give rise to a declaration of an Emergency.

Rule 2.13 Conflicts of Interest

A. Named Party in Interest Conflict

1. No member of the Board, Oversight Panel or Disciplinary Panel shall 

participate in such body’s deliberations or voting in any matter involving a 

named party in interest where such member:

a is the named party in interest in the matter;

b is an employer, employee or fellow employee of a named party in 

interest;

c is associated with a named party in interest through a “broker 

association” as defined in CFTC Regulation 156.1;
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d has any other significant, ongoing business relationship with a 

named party in interest, excluding relationships limited to 

Company Contracts; or

e has a family relationship (i.e., the member’s spouse, parents, 

children, and siblings, in each case, whether by blood, marriage, 

or adoption, or any person residing in the home of the member or 

that of his or her immediate family) with a named party in interest.

2. Prior to consideration of any matter involving a named party in interest, 

each member of the deliberating body shall disclose to the Chief 

Compliance Officer whether such member has one of the relationships 

listed above with a named party in interest.

3. The Chief Compliance Officer shall determine whether any member of the 

relevant deliberating body is subject to a conflicts restriction under this 

Rule 2.13A. Such determination shall be based upon a review of the 

following information:

a information provided by such member pursuant to clause (2) 

above; and

b any other source of information that is held by and reasonably 

available to the Company.

B. Financial Interest in a Significant Action Conflict

1. No member of the Board, Oversight Panel or Disciplinary Panel shall 

participate in the body’s deliberations or voting on any significant action if 

such member knowingly has a direct and substantial financial interest in 

the result of the vote based upon either Company or non-Company

positions that could reasonably be expected to be affected by the action.

2. Prior to consideration of any significant action, each member of the 

deliberating body who does not choose to abstain from deliberations and 

voting shall disclose to the Chief Compliance Officer any information that 

may be relevant to a determination of whether such member has a direct 

and substantial financial interest in the result of the vote.
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3. The Chief Compliance Officer shall determine whether any member of the 

relevant deliberating body who does not choose to abstain from 

deliberations and voting is subject to a conflicts restriction under this Rule 

2.13B. Such determination shall be based upon a review of the following 

information:

a the most recent large trader reports and clearing records available 

to the Company;

b gross positions held at the Company in the member's personal 

accounts or “controlled accounts,” as defined in CFTC Regulation 

1.3(j);

c gross positions held at the Company in proprietary accounts, as 

defined in CFTC Regulation 1.17(b)(3), at the member's affiliated 

firm;

d gross positions held at the Company in accounts in which the 

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

e net positions held at the Company in “customer” accounts, as 

defined in CFTC Regulation 1.17(b)(2), at the member's affiliated 

firm;

f any other types of positions, whether maintained at the Company

or elsewhere, held in the member's personal accounts or the

proprietary accounts of the member's affiliated firm that the Chief 

Compliance Officer reasonably expects could be affected by the 

significant action;

g information provided by such member pursuant to clause (2) 

above; and

h any other information reasonably available to the Company, taking 

into consideration the exigency of the significant action being 

contemplated.

4. Any member who would otherwise be required to abstain from 

deliberations and voting pursuant to clause (1) above may participate in 

deliberations, but not in voting, if the deliberating body, after considering 
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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 information specified in clause (3) above which is the basis for such 

member’s direct and substantial financial interest in the significant action 

that is being contemplated. In making its determination, the deliberating 

body shall consider:

a whether such member’s participation in the deliberations is 

necessary to achieve a quorum; and

b whether such member has unique or special expertise, knowledge 

or experience in the matter being considered.

C. The minutes of any meeting to which the conflicts determination procedures set 

forth in this Rule apply shall reflect the following information:

1. the names of all members who participated in such meeting;

2. the name of any member 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;

3. the information that was reviewed for each member of the relevant 

deliberating body; and

4. any determination made in accordance with Rule 2.13A.3 or Rule 2.13B.4

above.

Rule 2.14 Recordkeeping

A. The Company shall keep, or cause to be kept, complete and accurate books and 

records of accounts and activities of the Company, including all books, records 

and other documentation required to be maintained pursuant to the CEA and 

CFTC Regulations.

B. The Company shall retain all such books and records in accordance with the 

CEA and CFTC Regulations.

C. The Company will provide information required to be maintained or provided 

pursuant to the CEA and CFTC Regulations to the Commission, the U.S. 
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Securities and Exchange Commission, the U.S. Department of Justice or any 

representative of a prudential regulator as authorized by the Commission, upon 

request, in each case in the form and manner required under these Rules, and/or 

the CEA and CFTC Regulations.

Rule 2.15 Information-Sharing Agreements

A. The Company may enter into information-sharing agreements or other 

arrangements or procedures to coordinate surveillance with other markets on 

which financial instruments related to the Company Contracts trade. As part of 

any information-sharing agreements or other arrangements or procedures 

adopted pursuant to this Rule, the Company may:

1. provide market surveillance reports to other markets;

2. share information and documents concerning current and former 

Participants or Authorized Users with other markets;

3. share information and documents concerning ongoing and completed 

investigations with other markets; or

4. require its current or former Participants or Authorized Users to provide 

information and documents to the Company at the request of other 

markets with which the Company has an information-sharing agreement 

or other arrangements or procedures.

B. The Company may enter into any information-sharing agreements or other 

arrangements or procedures, including an information-sharing agreement or 

other arrangement or procedure similar to that described above in paragraph (A), 

with any Person or body (including but not limited to a Regulatory Agency or 

Swap Data Repository) if the Company considers such agreement, arrangement 

or procedures to be in furtherance of the Company’s purpose or duties under 

these Rules or Applicable Law.

C. The Company may provide information to a duly authorized foreign governmental 

authority, as directed by the CFTC, in accordance with an information-sharing 

agreement or other arrangements or procedures executed with such foreign 

governmental authority or the CFTC.
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Rule 2.16 Recordkeeping and Reporting Requirements

A. In the event the Board rejects a recommendation or supersedes an action of the 

Regulatory Oversight Committee, the Risk Management Committee or the Chief 

Compliance Officer, the Company shall maintain documentation detailing: (1) the 

recommendation or action of the Regulatory Oversight Committee, the Risk 

Management Committee or the Chief Compliance Officer, as the case may be; 

(2) the rationale for such recommendation or action; (3) the rationale of the Board 

for rejecting such recommendation or superseding such action; and (4) the 

course of action that the Board decided to take contrary to such recommendation 

or action.

B. In the event that the Risk Management Committee rejects a recommendation or 

supersedes an action of any of its subcommittees, the Company shall maintain 

documentation detailing (1) the recommendation or action of the subcommittee; 

(2) the rationale for such recommendation or action; (3) the rationale of the Risk 

Management Committee for rejecting such recommendation or superseding such 

action; and (4) the course of action that the Risk Management Committee 

decided to take contrary to such recommendation or action.

C. In accordance with Rule 6.7, the Company shall report all Transactions of Swaps 

subject to reporting by the Company pursuant to applicable CFTC Regulations to 

a Swap Data Repository selected by the Company for such purpose within the 

time limits set forth in CFTC Regulations. Parties to a Transaction where 

reporting is required shall be responsible for any of their own reporting 

obligations. Participants shall include with any Order sufficient information to 

enable the Company to report all Required Swap Creation Data pursuant to Part 

45 of CFTC Regulations, including but not limited to the information prescribed 

under Rule 5.2B.10 (to the extent such information is not pre-populated by the 

Platform). Participants may provide certain data to the Company in the 

Participant Application and Agreement, such as whether the Participant is a U.S. 

person, swap dealer, major swap participant, or financial entity as defined in the 

Participant Application and Agreement. Participants must inform the Company

immediately of any change in status that would affect data to be reported to a 

Swap Data Repository in accordance with Rule 6.7.
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D. The Company shall record and report to the CFTC all data required to be 

reported to the CFTC under Part 16 of CFTC Regulations, in the form and 

manner required by CFTC Regulations.

E. The Company shall keep and maintain books and records identifying each Order 

submitted to the Company and each Transaction effected pursuant to these 

Rules, including the identification of the execution method (e.g., central limit 

order book, Block Trade, EFP) with respect to each such Order and Transaction. 

These books and records shall be kept and maintained in accordance with the 

CEA and CFTC Regulations.

F. The Company shall submit to the CFTC within thirty days after each Board 

election a list of the Board’s Directors, the Participant interests they represent, 

and how the composition of the Board meets the requirements of CFTC 

Regulation 1.64(b) and the Company’s Rules and procedures.

Rule 2.17 Public Information

A. Accurate, complete and current copies of these Rules and Company Contract

Specifications shall be published on the Website.

B. The Company shall make public on a daily basis information on settlement 

prices, volume, open interest, and opening and closing ranges for actively traded 

Company Contracts.

C. Except as provided herein, the Company shall publish on its Website a 

Participant Notice with respect to each addition to, modification of, or clarification 

of, the Rules, the Matching Engine, and any Company Contract Specification 

prior to the earlier of:

1. the effective date thereof; and

2. the filing of such change with the Commission.

D. If confidential treatment is sought with respect to any information the Company

submits to a Regulatory Agency, only the public version of such filing shall be 

disclosed pursuant to Rule 2.17C.

E. Any Participant Notice shall be deemed to have been made to all Participants 

and any other such Person as may be required by sending such Participant 
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Notice to the email address on file with the Company and by posting the 

Participant Notice on the Website.

F. Any information published in accordance with this Rule 2.17 shall specify 

whether it applies to the Company DCM, the Company DCO and/or the 

Company SEF.

CHAPTER 3 Participants

Rule 3.1 Jurisdiction, Applicability of Rules

A. ANY PERSON, INCLUDING A PARTICIPANT OR AN AUTHORIZED USER, 

DIRECTLY OR INDIRECTLY INITIATING, EXECUTING, AND/OR CLEARING A 

TRANSACTION ON THE COMPANY OR SUBJECT TO THESE RULES, AND 

ANY PERSON FOR WHOSE BENEFIT SUCH A TRANSACTION HAS BEEN 

INITIATED OR EXECUTED, OR CLEARED, INCLUDING CUSTOMERS, AND 

AN AUTHORIZED REPRESENTATIVE AND, FOR THE AVOIDANCE OF 

DOUBT, AN FCM PARTICIPANT, EXECUTING PARTICIPANT AND A 

LIQUIDITY PROVIDER, AND ANY EMPLOYEE OR AGENT OF A 

PARTICIPANT, AND ANY OTHER PERSON ACCESSING THE PLATFORM: (i) 

AGREES TO BE BOUND BY AND COMPLY WITH THESE RULES, THE 

OBLIGATIONS AND APPLICABLE LAW, IN EACH CASE TO THE EXTENT 

APPLICABLE TO SUCH PERSON; (ii) EXPRESSLY CONSENTS AND 

SUBMITS TO THE JURISDICTION OF THE COMPANY WITH RESPECT TO 

ANY AND ALL MATTERS ARISING FROM, RELATED TO, OR IN 

CONNECTION WITH, THE STATUS, ACTIONS OR OMISSIONS OF SUCH 

PERSON; AND (iii) AGREES TO ASSIST THE COMPANY IN COMPLYING 

WITH THE COMPANY’S LEGAL AND REGULATORY OBLIGATIONS, 

COOPERATE WITH THE COMPANY, THE CFTC AND ANY REGULATORY 

AGENCY WITH JURISDICTION OVER THE COMPANY IN ANY INQUIRY, 

INVESTIGATION, AUDIT, EXAMINATION OR PROCEEDING. ANY 

AMENDMENTS TO OR THE REPEAL OF A RULE, OR THE ADOPTION OF A 

NEW RULE, SHALL, UPON THE EFFECTIVE DATE OF SUCH AMENDMENT, 

REPEAL OR ADOPTION, AS APPLICABLE, BE BINDING ON ALL PERSONS 

SUBJECT TO THE JURISDICTION OF THE COMPANY, REGARDLESS OF 

WHEN SUCH PERSON BECAME SUBJECT TO THE COMPANY’S 

JURISDICTION, AND ON ALL COMPANY CONTRACTS AS APPLICABLE.
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B. ALL COMPANY PARTICIPANTS ARE ALSO SUBJECT TO THE 

JURISDICTION OF THE CFTC REGARDLESS OF LOCATION, NATIONALITY, 

CITIZENSHIP, OR PLACE OF INCORPORATION.

Rule 3.2 Participants – Applications, Agreements, Eligibility Criteria, Classifications and 

Privileges

LedgerX LLC will provide access to the Platform (including but not limited to the central limit 

order book) and related services in an impartial, transparent, fair and non-discriminatory 

manner.

A. Each Participant shall have the right to access electronically the Platform, 

including the right to place Orders for each of its Proprietary Accounts, provided 

that such Participant is eligible for and has applied and received Trading 

Privileges and Clearing Privileges. In order to become a Participant, an applicant 

must:

1. complete and submit the Company Participant Application and 

Agreement, User Agreement, and application fee, as may be established 

by the Company from time to time;

2. (for U.S. applicants and foreign applicants outside of Singapore:) if an 

applicant is an entity, be validly organized, and in good standing, in the 

United States (or, if such entity is validly organized, and in good standing,

in a country outside of the United States, it must be wholly owned and/or 

managed by a natural person who is a resident of the United States or by 

an entity that is validly organized, and in good standing, in the United 

States, or be a current registrant of the CFTC in good standing with the 

CFTC and NFA, as applicable); and 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 SpeciallyDesignated Nationals and Blocked Persons;

3. (for Singapore applicants:) if an applicant is an entity, be validly 

organized, and in good standing, in Singapore; and must not be subject to 

any economic or trade sanctions programs administered by OFAC or 

other relevant U.S. or non-U.S. authority; must not be listed on OFAC’s 

List of Specially-Designated Nationals and Blocked Persons; and must 
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not be listed as a designated individual or entity as to terrorism or 

targeted financial sanctions by the Money Authority of Singapore;

4. (for U.S. applicants:) if an applicant is a natural person, be a resident of 

the United States; and must not be subject to any economic or trade 

sanctions programs administered by OFAC or other relevant U.S. or nonU.S. authority; and must not be listed on OFAC’s List of SpeciallyDesignated Nationals and Blocked Persons;

5. (for Singapore applicants:) if an applicant is a natural person, be a citizen 

of Singapore; and must not be subject to any economic or trade sanctions 

programs administered by OFAC or other relevant U.S. or non-U.S. 

authority; must not be listed on OFAC’s List of Specially-Designated 

Nationals and Blocked Persons; and must not be listed as a designated 

individual or entity as to terrorism or targeted financial sanctions by the 

Money Authority of Singapore;

6. except as provided below in this Rule 3.2.A, be an Eligible Contract 

Participant in order to gain impartial access to the Company SEF and any 

SEF services;

7. not be prohibited from using the services of the Company for any reason 

whatsoever;

8. have a good reputation and business integrity and maintain adequate 

financial resources and credit;

9. not have filed for bankruptcy;

10. designate at least one Authorized User (or in the case of a natural person 

Participant, such Person shall be deemed to be the Authorized User);

11. if an applicant is an entity, designate at least two Authorized 

Representatives (or in the case of a natural person Participant, such 

Person shall be deemed to be the sole Authorized Representative) who 

are responsible for supervising all activities of the Participant, its 

Authorized User(s) and its employees relating to Transactions, for making 

withdrawal requests and for providing any information the Company may 

request regarding such Participant; provided, that upon request the 
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Company may permit an entity applicant to designate a single Authorized 

Representative in the Chief Compliance Officer’s sole discretion; and

12. meet any other criteria and provide the Company with any other 

information the Company may request regarding the Participant.

Notwithstanding Rule 3.2.A.6 above, to the extent that a Participant intends to 

execute one or more Company Contracts on or pursuant to the rules of the 

Company DCM, such Participant is not required to be an ECP solely with respect 

to any such Company Contracts.

B. Each FCM Participant shall have the right to access electronically the Platform, 

including the right to place Orders for each of its Proprietary Accounts or 

Customer Accounts, provided that such FCM Participant is eligible for and has 

applied and received Trading Privileges and Clearing Privileges. The Company

does not currently have any FCM Participants or other Participants that may 

execute intermediated trades. In order to become an FCM Participant, an FCM 

applicant must: 

1. satisfy the conditions in 0;

2. be validly organized and in good standing, in the United States; 

3. have sufficient operational capabilities and resources to support the 

Platform and Underlying transfer requirements, including sufficient: (a) 

policies and procedures, (b) understanding of and support for the 

Company Contracts and transfers of the Underlying, (c) asset security 

and cyber security procedures and (d) AML controls;

4. have sufficient ability, appropriate accounts and technical support to clear 

the Underlying, including maintenance of the requisite Collateral Accounts 

at all times; 

5. submit to the Company a letter confirming that the applicant will maintain 

all Customer Funds deposited with it in connection with trading any 

Company Contract in appropriately labeled and segregated Customer 

Accounts, as required by Commission regulations; 
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6. except as provided below in this Rule 3.2.B, confirm that each of its 

Customers represents that each such Customer is an ECP in order to 

gain impartial access to the Company SEF and any SEF services; and

7. meet any other criteria or complete any additional applications that the 

Company may request.

Notwithstanding Rule 3.2.B.6 above, to the extent that an FCM Participant 

intends to clear through LedgerX one or more Company Contracts executed on 

or pursuant to the rules of the Company DCM on behalf of a Customer, such 

Customer is not required to be an ECP solely with respect to any such Company 

Contracts. Likewise, to the extent that an FCM Participant intends to clear 

through LedgerX one or more Swaps executed on or pursuant to the rules of 

another Designated Contract Market on behalf of a Customer, such Customer is 

not required to be an ECP solely with respect to any such Swaps.

C. Prior to becoming an FCM Participant, FCM applicants must submit to the 

Company: (i) a guarantee agreement on a form prescribed by the Company

defining the FCM Participant’s obligation to financially guarantee the applicant’s 

Orders and Transactions and those of the applicant’s Customers, signed by the 

FCM Participant; and (ii) an agreement authorizing the Company to unilaterally 

debit any Collateral Accounts in accordance with these Rules, Company policies 

and procedures and in amounts solely determined by the Company. 

D. The Company may in its sole discretion approve, deny, or condition any FCM 

Participant application as the Company deems necessary or appropriate. 

E. If an FCM Participant application is approved by the Company, the applicant will 

be a FCM Participant of the Company with Trading Privileges and Clearing 

Privileges with respect to its Customers and its Proprietary Account, as 

applicable.

F. To be eligible to become an Executing Participant, an applicant must:

1. satisfy the conditions in 0;

2. complete the Executing Participant representation of the Participant 

Application and Agreement; 
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3. with respect to trading on the Company SEF, agree to confirm that each 

of its Customers represents that each such Customer is an ECP; and

4. be registered as a futures commission merchant, introducing broker or 

commodity trading advisor, or be exempt from registration as such. 

G. Submission of a Participant Application and Agreement to the Company

constitutes the applicant’s agreement to be bound by the Rules and the 

published policies of the Company.

H. No person affiliated, within the meaning of Section 5b(c)(2)(O) of the CEA, with a 

director of the Company or a Participant (for purposes of this Rule, an “affiliate”) 

shall meet criteria for refusal to register a person under Section 8a(2) of the CEA; 

unless the Risk Management Committee finds that there are special 

circumstances warranting the waiver of such disqualification with respect to the 

affiliate.

1. With respect to affiliates, the Board shall be entitled to rely on a 

representation from the relevant director or Participant that, to the best of 

such person’s knowledge, none of its affiliates is subject to 

disqualification pursuant to the Company’s fitness standards and that 

such person will notify the Company if at any time such director or 

Participant becomes aware that any such affiliate fails to meet the fitness 

standards.

2. Section 5b(c)(2)(O)(ii)(IV) of the CEA requires each DCO to establish 

Fitness Standards for persons with direct access to the settlement or 

clearing activities of the DCO (“Access Persons”). The only persons with 

such access are Participants. 

I. Applicants for Participant status of the Company may withdraw their applications 

at any time without prejudice or without losing their right to apply at a future time.

J. Company staff may, in its sole discretion, approve, deny, or condition any 

Participant application as Company staff deems necessary or appropriate.

1. In the event that Company staff decides to decline or condition an 

application for admission as a Participant, or to terminate a Person’s 

status as Participant, Company staff shall notify such Person thereof in a 
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written notice sent to the address provided by the Person in the 

Participant Application and Agreement or maintained in the Company’s 

registry of Participants. The written notice will specify the basis for the 

Company’s decision. Such Person may, within 28 Business Days, 

request in writing that the Participant Committee reconsider the 

determination.

2. Within 28 Business Days of receiving a request for reconsideration, the 

Participant Committee shall confirm, reverse or modify the denial, 

condition or terminate the Participant status of such Person, and shall 

promptly notify such Person accordingly in writing. The Participant 

Committee may, in its sole discretion, schedule a hearing (in person or by 

teleconference), request additional information from such Person or 

establish any other process that it believes is necessary or appropriate to 

consider the request for reconsideration.

3. The Participant Committee’s decision is the final action of the Company

and is not subject to appeal within the Company.

K. Upon approval by the Company of an applicant’s Participant Application and 

Agreement, the applicant will be deemed to be a Participant, and shall continue 

to comply with all applicable eligibility criteria in this Rule or as the Company may 

require, and shall have the following privileges, which the Company may revoke, 

amend, or expand in accordance with, or by amending, these Rules:

1. Trading Privileges and Clearing Privileges;

2. To intermediate the execution of Customer Transactions on the 

Company, if approved as an Executing Participant;

3. To intermediate Orders and clear Transactions on behalf of Customers, if 

approved as an FCM Participant; and

4. To distribute Company data to its Customers pursuant to any data 

distribution agreement with the Company.

L. The Company will apply Participant access criteria in a fair and nondiscriminatory manner that is not anti-competitive.
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Rule 3.3 Participant Obligations

A. Each Participant and any Authorized User(s) thereof, must comply with these 

Rules, applicable provisions of the CEA and relevant CFTC Regulations. Each 

Participant and any Authorized User(s) thereof also must cooperate promptly and 

fully with the Company, its agents, and the CFTC in any investigation, call for 

information, inquiry, audit, examination, or proceeding. Such cooperation shall 

include providing the Company with access to information on the activities of 

such Participant and/or its Authorized User(s) in any referenced market that 

provides the underlying prices for any Company market. If any Participant or 

Authorized User thereof fails to satisfy any Obligation, the Company may revoke 

or suspend the Participant’s privileges in full or in part. Each Participant also may 

be subject to civil or criminal prosecution.

B. Each Participant consents to allow the Company to provide all information the 

Company has about the Participant, including the Participant’s and Customers’ 

trading activity, to the CFTC or any other Regulatory Agency, law enforcement 

authority, or judicial tribunal, including (as may be required by informationsharing agreements or other arrangements or procedures or other contractual, 

regulatory, or legal provisions) foreign regulatory or self-regulatory bodies, law 

enforcement authorities, or judicial tribunals without notice to the Participant.

C. Each Participant consents to the Company providing information related to Know 

Your Customer or Anti-Money Laundering to Settlement Banks or potential 

Settlement Banks.

D. Each Participant must establish and maintain cyber security policies and 

procedures to protect each such Participant’s systems, including, but not limited 

to, any API.

E. Each Participant must represent to the Company that each such Participant has 

established and maintains an account to hold Underlying and will adhere to the 

Company’s collateral transfer procedures. Each Participant agrees to provide 

and accept collateral when required to do so by the Company.

F. Each Participant and Customer, upon a request of the Company or any 

Regulatory Agency, must promptly respond to any requests for information, 
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including by providing any necessary information for the Company to perform any 

of the functions described in CEA Section 5h. 

G. Participant Recordkeeping:

1. Swaps. With respect to each Company Contract that is a Swap, each 

Participant and Customer must prepare, maintain, keep current and retain 

those books and records for the life of each Swap, including records of 

the instrument used as a reference price, underlying commodities and 

related derivatives market for five years following the termination of such

Swap, and any other books and records required by these Rules, the 

CEA and the CFTC’s Regulations for the time period required by these 

Rules, the CEA and the CFTC’s Regulations.

2. Futures Contracts. With respect to each Company Contract that is a 

futures contract (including any option on a futures contract), each 

Participant and Customer must prepare, maintain, keep current and retain 

those books and records of the trading activity, including records of the 

instrument used as a reference price, underlying commodities and related 

derivatives market for five years following execution of the Company 

Contract, and any other books and records required by these Rules, the 

CEA and the CFTC’s Regulations for the time period required by these 

Rules, the CEA and the CFTC’s Regulations.

3. The books and records required to be kept under subparagraphs 1 and 2 

above shall be readily accessible for inspection and promptly provided to 

the Company, its designated Self-Regulatory Organization, the CFTC, the 

U.S. Securities and Exchange Commission or the U.S. Department of 

Justice, upon request, in each case in the form and manner required 

under these Rules, and/or the CEA and CFTC Regulations.

H. Each Participant must immediately notify the Company in writing upon becoming 

aware:

1. that the Participant, any of the Participant’s officers or any of the 

Participant’s Authorized Users has had trading or clearing privileges 

suspended, access to, or membership or clearing membership in any 

Regulatory Agency denied;
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2. that the Participant, any of the Participant’s officers or any of the 

Participant’s Authorized Users has been convicted of, pled guilty or no 

contest to, or entered a plea agreement to any felony in any domestic, 

foreign or military court, or with the CFTC, as applicable;

3. that the Participant, any of the Participant’s officers or any of the 

Participant’s Authorized Users has been convicted of, plead guilty or no 

contest to, or entered a plea agreement to a misdemeanor in any 

domestic, foreign or military court, or with the CFTC, as applicable, which 

involves:

a embezzlement, theft, extortion, fraud, fraudulent conversion, 

forgery, counterfeiting, false pretenses, bribery, gambling, 

racketeering, or misappropriation of funds, securities or properties; 

or

b any Transaction in or advice concerning swaps, futures, options 

on futures or securities;

4. that the Participant, any of the Participant’s officers or any of the 

Participant’s Authorized Users has been subject to, or associated with a 

firm that was subject to, regulatory proceedings before any Regulatory 

Agency;

5. of any other material change in any information contained in the 

Participant’s application, including any failure to continue to meet the 

requirements to be an Eligible Contract Participant with respect to trading 

activity on the Company SEF or any change in status as a swap dealer, 

major swap participant or financial entity;

6. of becoming the subject of a bankruptcy petition, receivership proceeding, 

or the equivalent, or being unable to meet any financial obligation as it 

becomes due;

7. of information that concerns any financial or business developments that 

may materially affect the Participant’s ability to continue to comply with 

applicable participation requirements; 
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8. as applicable to FCM Participants and Executing Participants, of 

becoming subject to early warning reporting under CFTC Regulation 1.12; 

or

9. as applicable to FCM Participants, of any failure to segregate or maintain 

adequate Customer Funds as required by the CFTC and CFTC 

Regulations.

I. Each Participant must diligently supervise all activities of the Participant’s 

employees and/or agents, including all Authorized Users and Authorized 

Representatives, relating to Orders, Transactions and communications with the 

Company. Any violation of these Rules by any employee, Authorized 

Representative or Authorized User of a Participant may constitute a violation of 

the Rules by such Participant.

J. Each Participant must inform the Company of: (i) its LEI, if applicable, (ii) any 

change to its email address within 24 hours after such change; (iii) any changes 

to the regulatory registration information of the Participant’s Authorized Users 

within two Settlement Bank Business Days of such change; and (iv) other 

information provided in the Participant Application and Agreement within five 

days after any such change.

K. Each FCM Participant also must: 

1. Comply with the financial and reporting requirements set forth by the 

Commission and the NFA, including the requirements contained in 

Commission Regulations 1.10 and 1.17. 

2. Require Customers to maintain and provide to the FCM Participant or the 

Company upon request by the FCM Participant or the Company

information identifying any individual who has entered orders on behalf of 

such Customer’s Account, including, but not limited to, the individual’s 

name, taxpayer or other identification number, affiliation to the Customer, 

address and contact information. 

3. At all times maintain the financial resources at or in excess of the amount 

prescribed by the Company from time to time. 
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4. Maintain a Customer Account that holds Customer Funds with the 

Company and may maintain a Proprietary Account that holds the FCM 

Participant’s proprietary funds with the Company. 

5. Maintain a separately identifiable Customer ID for each Customer and 

provide such Customer ID with every Order submitted on the Platform on 

behalf of a Customer. 

6. Include in the FCM Participant’s Customer Account separate Customer 

IDs for each Customer based on the Customer ID that the FCM 

Participant transmits with each Order. 

7. Make an initial deposit of funds in an amount determined by the FCM 

Participant, subject to the Company requiring a greater amount, 

constituting the FCM Participant’s residual interest therein, into a 

Customer Account for excess collateral with the Company. 

8. Submit statements of financial condition at such times and in such 

manner as shall be prescribed from time to time. 

9. Use due diligence in receiving and handling Orders from Customers, 

submitting such Orders on the Platform on behalf of such Customers, 

responding to inquiries from Customers about their Orders and reporting 

back to Customers the execution of such Orders. 

10. Maintain policies and procedures acceptable to the Company that: 

a with respect to each Customer who is an individual, restricts 

access to any system through which such individual Customer 

submits Orders to the FCM Participant for transmission to the 

Company to that individual Customer; and 

b with respect to each Customer who is not an individual: (1) 

restricts access to any system through which the Customer’s 

Orders may be submitted to the FCM Participant for transmission 

to the Company to such individuals authorized to enter Orders on 

behalf of such Customer; (2) requires each Customer who is not 

an individual, with respect to Swaps, to have and maintain an LEI, 

which shall be provided to the Company with each order message 
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submitted by such Person; (3) identifies each individual authorized 

to enter Orders on behalf of such Customer by a distinct Customer 

ID, which shall be provided to the FCM Participant and the 

Company with each order message submitted by such Person; 

and (4) requires the customer to maintain and provide to the FCM 

Participant or the Company upon request by the FCM Participant 

or the Company information identifying any individual who has 

entered Orders on behalf of such Customer’s account, including 

but not limited to the individual’s name, taxpayer or other 

identification number, affiliation to the Customer, address and 

contact information. 

11. Prior to an FCM Participant accepting any Orders from a Customer for 

submission to the Company: 

a an FCM Participant must first have provided such Customer with 

the Company Risk Disclosure Statement; 

b the Company will require certification by the FCM Participant to 

the Company that its system has the capacity to block Customer 

Funds such that the relevant Customer Account maintains 

sufficient funds to cover the Customer’s maximum loss under the 

Company Contract before the FCM Participant enters the Order 

and that the FCM Participant demonstrate that capacity to the 

Company. In addition, on an annual basis or as otherwise required 

by the Company, each FCM Participant must represent to the 

Company that the portion of the FCM Participant’s system that 

blocks Customer Funds has not been changed in any material 

respect or, if the system has been changed, the FCM Participant 

must identify any such changes and recertify the system’s 

capacity to block Customer Funds. Finally, each FCM Participant 

agrees to submit to any compliance review by the Company of its 

systems in this regard. 

12. With respect to the Associated Persons or employees of a FCM 

Participant: 
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a Each FCM Participant shall be responsible for diligently 

supervising the FCM Participant’s Associated Persons’ or 

employees’ compliance with all Company Rules. 

b Each FCM Participant must maintain a complete and accurate list 

of all Associated Persons or employees of the FCM Participant. 

Such list shall be promptly provided to the Company upon 

request. 

c Associated Persons or employees must comply with Company

Rules. 

d Each Associated Person or employee shall be bound by Company

Rules to the same extent as if such person were a Participant. 

e Each FCM Participant shall be responsible for the acts or 

omissions of the FCM Participant’s Associated Persons or 

employees, and may be liable for any fines imposed upon such 

Associated Persons or employees by the Company. Any violation 

of a Company rule by any such Associated Persons or employee 

may be considered a violation by the FCM Participant. 

13. Make and file reports in accordance with CFTC Regulations in a manner 

and form and at such times as may be prescribed by the Commission. 

14. Make and file reports with the Company at such times, in such manner 

and form, and containing such information as the Company may 

prescribe from time to time. 

15. Invest Customer Funds only in accordance with CFTC Regulations 

22.2(e)(1) and 1.25, to the extent an FCM Participant invests Customer 

Funds.

16. Prepare, maintain and keep current those books and records required by 

the rules of the Company, the CEA and CFTC Regulations. Such books 

and records shall be open to inspection and promptly provided to the 

Company, its Designated Self- Regulatory Organization (“DSRO”), the 

Commission and/or the U.S. Department of Justice and/or the U.S. 

Securities and Exchange Commission, upon request.
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L. An Executing Participant must also:

1. Adhere to CFTC Regulations concerning applicable financial resources 

and financial reporting requirements, including, but not limited to, the 

requirements under CFTC Regulations 1.10 and 1.17, as applicable.

2. Provide a Customer ID for every Order submitted to the Company.

3. Use due diligence in receiving and handling Orders from Customers, 

submitting such Orders on the Platform on behalf of such Customers, 

responding to inquiries from Customers about their Orders and reporting 

back to Customers the execution of such Orders.

4. Maintain policies and procedures acceptable to the Company that:

a identify each Authorized User whom the Executing Participant has 

authorized to transmit Customer Orders by a unique User ID as 

provided pursuant to Rule 5.1, which User ID shall be submitted to 

the Company with each Order submitted by such Authorized User;

b permit access only to Authorized Users with permission to enter 

Customer Orders on behalf of the Executing Participant;

c require each Customer who is not an individual, with respect to 

Swaps, to have and maintain a Legal Entity Identifier deemed 

acceptable under CFTC Regulations, which shall be provided to 

the Company with each order message submitted by such 

Person, as applicable; and

d require the Customer to maintain and provide, upon request, to 

the Executing Participant or the Company information identifying 

any individual who has entered Orders on behalf of such 

Customer’s account, including, but not limited to, the individual’s 

name, taxpayer or other identification number, affiliation to the 

Customer, address and contact information.

Rule 3.4 Customer Account Requirements for FCM Participants

A. FCM Participants must comply with the requirements set forth in Parts 1 and 22 

of CFTC Regulations. This includes, but is not limited to, the following:
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1. Maintaining sufficient funds at all times in Customer Accounts.

2. Computing, recording and reporting completely and accurately the 

balances in the Statement of Segregation Requirements and Funds in 

Segregation and the Statement of Segregation Requirements and 

Cleared Swaps Customer Collateral Held in Cleared Swaps Customer 

Accounts.

3. Obtaining satisfactory Customer Segregated Account and/or Cleared 

Swaps Customer Account acknowledgment letters and identifying 

Customer Segregated Account and/or Cleared Swaps Customer Account 

as such.

4. Preparing complete and materially accurate daily Customer Segregated 

Account and Cleared Swaps Customer Account computations, as 

applicable, in a timely manner.

B. All FCM Participants must submit a daily Customer Segregated Account 

statement and a Cleared Swaps Customer Account statement, as applicable,

through Company-approved electronic transmissions by 12:00 noon on the 

following Settlement Bank Business Day.

C. FCM Participants must provide the Company’s Compliance Department with 

access to Customer Account information in a form and manner prescribed by the 

Compliance Department. 

D. All FCM Participants must provide written notice to the Compliance Department 

of a failure to maintain sufficient funds in Customer Accounts. The Compliance 

Department must receive immediate written notification when an FCM Participant 

knows or should have known of such failure.

E. Company staff may prescribe additional Customer Account requirements.

Rule 3.5 Customer Funds Maintained With the Company

All Customer Funds deposited with the Company on behalf of Customers shall be held in 

accordance with Parts 1 and 22 of the CFTC Regulations in an account identified as a 

Customer Segregated Account or a Cleared Swaps Customer Account, as applicable. Such 

Customer Funds shall be segregated by the Company and treated as belonging to such 
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Customers of the FCM Participant. Pursuant to this rule, an FCM Participant shall satisfy the 

acknowledgment letter requirement of Rule 3.4A.3 for Customer Funds held at the Company.

Rule 3.6 Dues, Fees and Expenses Payable by Participants

A. Participants are not required to pay dues.

B. Participants may be charged fees in connection with Trading Privileges and 

Clearing Privileges in such amounts as may be revised from time to time. Fees 

and any revisions to such fees will be provided on the Website and in Participant 

Notices.

C. Participants may be charged fees for settlement of Company Contracts at 

expiration in an amount to be reflected from time to time on the Website and in 

Participant Notices.

D. The Company or a Settlement Bank may also deduct from a Collateral Account 

fees or expenses incurred in connection with a Participant’s trading or account 

activity, such as fees for wire transfers or check processing via electronic check, 

or storage or other fees or expenses related to Trading Privileges or Clearing 

Privileges. All such fees shall be charged in an amount to be reflected from time 

to time on the Website and in Participant Notices.

E. If the Company determines in the future to impose dues or additional fees, the 

Company shall notify the Participant of any dues or additional fees that will be 

imposed at least 10 days before they take effect.

Rule 3.7 Recording of Communications

The Company may record conversations and retain copies of electronic communications 

between Company Officials, on one hand, and Participants, their Authorized Users, Authorized 

Representatives or other agents, on the other hand. Any such recordings may be retained by 

the Company in such manner and for such periods of time as the Company may deem 

necessary or appropriate. The Company shall retain such records for the retention periods 

necessary to comply with CFTC Regulation 1.35 or such longer period as the Company deems 

appropriate.

Rule 3.8 Independent Software Vendors

A. A person seeking to act as an Independent Software Vendor must satisfy the 

Company’s technological integrity requirements, complete the necessary ISV 
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application and access documentation, agree to abide by these Rules and 

Applicable Law, consent to the jurisdiction of the Company, and agree to not 

adversely affect the Company’s ability to comply with Applicable Law. Access to 

the Company by an ISV shall be provided pursuant to criteria that are impartial, 

transparent and applied in a fair and non-discriminatory manner. Persons 

seeking access to the Company through an ISV must themselves be Participants 

to have such access. ISVs shall be subject to fees as reflected from time to time 

on the Website and in Participant Notices.

B. Each ISV must immediately notify the Company in writing upon becoming aware:

1. that the ISV or any of the ISV’s officers has been convicted of, pled guilty 

or no contest to, or entered a plea agreement to any felony in any 

domestic, foreign or military court, or with the CFTC, as applicable;

2. that the ISV or any of the ISV’s officers has been convicted of, plead 

guilty or no contest to, or entered a plea agreement to a misdemeanor in 

any domestic, foreign or military court, or with the CFTC, as applicable, 

which involves:

a embezzlement, theft, extortion, fraud, fraudulent conversion, 

forgery, counterfeiting, false pretenses, bribery, gambling, 

racketeering, or misappropriation of funds, securities or properties; 

or

b any Transaction in or advice concerning swaps, futures, options 

on futures or securities;

3. that the ISV or any of the ISV’s officers has been subject to, or associated 

with a firm that was subject to, regulatory proceedings before any 

Regulatory Agency;

4. of any other material change in any information contained in the ISV’s 

application;

5. of becoming the subject of a bankruptcy petition, receivership proceeding, 

or the equivalent, or being unable to meet any financial obligation as it 

becomes due; and
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6. of information that concerns any financial or business developments that 

may materially affect the ISV’s ability to continue to comply with 

applicable Company requirements.

C. Each ISV must inform the Company of: (i) any change to its email address within 

24 hours after such change; and (ii) other information provided in its application 

for ISV status within five days after any such change.

Rule 3.9 Participant Accounts and Customer Accounts 

A. The Company shall establish and maintain a Participant Account for each 

Participant and the Company undertakes to treat the Participant for whom such 

Participant Account is maintained as entitled to exercise the rights that comprise 

each financial asset which is credited to such Participant Account. However, the 

Company shall have complete and absolute discretion as to whether any 

particular financial asset is accepted by it for credit to any Participant Account.

B. The Company shall establish and maintain a Customer Account for each FCM 

Participant’s Customers and the Company undertakes to treat the FCM 

Participant for whom such Customer Account is maintained as entitled to 

exercise the rights that comprise each financial asset which is credited to such 

Customer Account. However, the Company shall have complete and absolute 

discretion as to whether any particular financial asset is accepted by it for credit 

to any Customer Account.

C. With respect to any Digital Currency, including, but not limited to, Bitcoin, which 

is or may be credited to any Participant Account, the following terms and 

conditions shall apply:

1. For purposes of creating a “security entitlement” as such term is defined 

in Section 8-102(a)(17) of the UCC, the Company and the Participant 

agree that: (1) the Digital Currency and any Digital Currency wallet 

maintained by the Company shall be treated as a “financial asset” as 

such term is defined in Section 8-102(a)(9) of the UCC; and (2) each 

Participant shall be treated as an “entitlement holder” as such term is 

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

2. Each Participant acknowledges that the Company is a “securities 

intermediary” as such term is defined in Section 8-102(a)(14) of the UCC.
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3. Any Digital Currency which a Participant desires be credited to such 

Participant’s Participant Account shall be transferred to a Digital 

Currency wallet designated by the Company and upon such 

transfer the Company shall indicate by book entry that such Digital 

Currency has been credited to such Participant Account.

D. With respect to any Digital Currency, including, but not limited to, Bitcoin, which 

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

conditions shall apply:

1. For purposes of creating a “security entitlement” as such term is defined 

in Section 8-102(a)(17) of the UCC, the Company and the Customer and 

the relevant FCM Participant all agree that: (1) the Digital Currency 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 Participant shall be treated as 

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

the UCC. 

2. Each Customer and each FCM Participant acknowledges that the 

Company is a “securities intermediary” as such term is defined in Section 

8-102(a)(14) of the UCC.

3. Any Digital Currency which an FCM Participant desires be credited to any 

of such FCM Participant’s Customer Accounts shall be transferred to a 

Digital Currency wallet designated by the Company and upon such 

transfer the Company shall indicate by book entry that such Digital 

Currency has been credited to any of such Customer Accounts.

E. The Company shall have only such duties and obligations with respect to each 

Participant Account and Customer Account as are set forth in Article 8 of the 

UCC or otherwise mandated by Applicable Law. Each Participant, including each 

FCM Participant, and each Customer acknowledges and agrees that the 

Company is not a fiduciary for any Participant, including any FCM Participant, or 

Customer.

Rule 3.10 Withdrawal of Participant

A. To withdraw from the Company, a Participant must notify the Company of its 

withdrawal. Such withdrawal shall be accepted immediately upon receipt of such 
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notice by the Company and shall be effective upon such Participant’s fulfillment 

of its obligations under paragraph (C) below, or at such other time as the 

Company may determine in its reasonable discretion is desirable for the efficient 

operation of the Company. 

B. When the Company accepts the withdrawal of a Participant, all rights and 

privileges of such Participant terminate (including, without limitation, the Trading 

Privileges and Clearing Privileges) except as set forth in paragraph (C) below. 

The accepted withdrawal of a Participant shall not affect the rights of the 

Company under these Rules or relieve the former Participant of such 

Participant’s obligations under the Company Rules before such withdrawal. 

Notwithstanding the accepted withdrawal of a Participant, the withdrawn 

Participant remains subject to the LedgerX Rules, the Obligations and the 

jurisdiction of the Company for acts done and omissions made while a 

Participant, must comply with paragraphs (C) and (D) below, must cooperate in 

any Disciplinary Action under Chapter 9 as if the withdrawn Participant were still 

a Participant, and must comply with requests for information from the Company

regarding activities and obligations while a Participant for at least five years 

following its withdrawal.

C. A Participant that has delivered a withdrawal notice pursuant to paragraph (A) 

above shall be subject to the following requirements, obligations and provisions:

1. it must use all reasonable endeavors to close out or transfer all open 

positions in its Participant Account and each of its Customer Accounts, as 

applicable, within 30 days after the Participant has delivered a withdrawal 

notice pursuant to paragraph (A) (the “wind-down period”);

2. after delivering a withdrawal notice pursuant to paragraph (A), it shall only 

be entitled to submit transactions for clearing which it can demonstrate 

have the overall effect of reducing open positions;

3. if it has any open positions with the Company (whether in the Participant 

Account or any Customer Account) after the wind-down period, the 

Participant shall be subject to the Company exercising rights under Rule 

7.2G to liquidate or transfer the open positions of the Participant.
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D. Any withdrawal notice delivered by a Participant pursuant to paragraph (A) above 

shall be irrevocable by the Participant and membership may only be reinstated 

pursuant to a new application for membership following the close-out or transfer 

of all open Company Contracts in its Participant Account and each of its 

Customer Accounts, as applicable.

CHAPTER 4 Liquidity Providers

Rule 4.1 Application and Agreement

A. Only Participants in good standing may become Liquidity Providers on the 

Company.

B. To be considered for Liquidity Provider status, a Participant shall complete and 

execute a Liquidity Provider Agreement.

C. The designation of any Liquidity Provider may be suspended, terminated or 

restricted by the Company at any time and for any reason.

Rule 4.2 Appointment

A. The Company may appoint one or more Liquidity Providers for certain Company 

Contracts.

B. In making such appointments, the Company shall consider:

1. the financial resources available to the applicant;

2. the applicant’s trading activity in relevant swaps, futures, options on 

futures or related cash markets; and

3. the applicant’s business reputation and experience in market making in 

options and other derivative products.

C. The Company, in its sole discretion, may appoint a Participant as a Liquidity 

Provider for certain Series and may appoint multiple Liquidity Providers for 

certain Series.

D. No appointment of a Liquidity Provider shall be made without the Liquidity

Provider’s consent to such appointment.

E. The Company shall periodically conduct an evaluation of all Liquidity Providers to 

determine whether they have fulfilled performance standards relating to, among 
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other things, quality of the markets; trading activity; competitive market making; 

observance of ethical standards; business reputation; and administrative and 

financial soundness. If the Liquidity Provider fails to meet minimum performance 

standards, the Company may, among other actions, suspend, terminate or 

restrict the Liquidity Provider’s appointment.

Rule 4.3 Benefits

Liquidity Providers may receive reduced trading fees or other incentives in accordance with any 

Liquidity Provider program in place at the Company for fulfilling the Obligations of a Liquidity 

Provider as disclosed in the applicable Liquidity Provider Agreement.

Rule 4.4 Obligations

Transactions of Liquidity Providers should constitute a course of dealing reasonably calculated 

to contribute to the maintenance of a fair and orderly market, and Liquidity Providers shall not 

enter Orders or enter into Transactions that are inconsistent with such a course of dealing. 

Ordinarily, Liquidity Providers shall be obligated to do the following:

A. comply with all other terms of the applicable Liquidity Provider Agreement; and

B. make good-faith efforts to enter on the Platform current binding bid and offer 

quotes, with a bid/offer spread as specified in the applicable Liquidity Provider 

Agreement, as necessary to ensure liquidity.

CHAPTER 5 Method for Trading Company Contracts

Rule 5.1 User IDs

A. Each Authorized User must have a unique User ID and a CSP.

B. Each Order entered must contain a User ID that identifies the Participant’s 

Authorized User that entered the Order.

C. Each Order entered by an FCM Participant or Executing Participant on behalf of 

a Customer must contain: (1) such Customer’s User ID or Customer ID; and (2) 

the User ID of the FCM Participant’s or Executing Participant’s Authorized User 

that entered the Order.

D. For Transactions in Swaps, (1) the Reporting Counterparty shall be established 

pursuant to CFTC Regulation 45.8, as may be amended from time to time; and 
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(2) if each Participant has equal reporting status under CFTC Regulation 45.8, 

the Company shall designate the seller of a Swap as the Participant that is the 

Reporting Counterparty.

E. No Person may use a User ID to place any Order except as permitted by these 

Rules, nor may any Person knowingly permit or assist with the unauthorized use 

of a User ID. Each Participant and Authorized User shall ensure that no User ID 

is used by any Person not authorized by these Rules. Each Participant shall 

establish and maintain policies and procedures to ensure the proper use and 

protection of User IDs. An Authorized User is prohibited from using another 

Person’s User ID, unless the Authorized User is entering the Order of a 

Customer in accordance with the Rules.

F. With respect to Customers of Executing Participants, each such Customer must 

provide the User ID of any of its Authorized Users to an Executing Participant to 

allow the Executing Participant to enter Orders on behalf of such Customer.

G. Each Participant shall be solely responsible for controlling and monitoring the use 

of all User IDs and CSPs issued to its Authorized Users.

H. Each Participant shall notify the Company of the need to terminate any User IDs 

or the status of any of its Authorized Users.

I. Each Participant shall keep confidential and secure all User IDs, except as 

permitted pursuant to these Rules, as well as all CSPs and any account numbers 

and passwords related to the Platform and shall notify the Company promptly 

upon becoming aware of:

1. any unauthorized disclosure or use of any User ID or CSP and of any 

other compromise to a User ID or CSP that would reasonably cause the 

Company to deactivate the User ID or CSP;

2. any loss of any User ID or CSP; and

3. any unauthorized access to the Company by any Person using a User ID 

and/or CSP assigned to such Participant.

J. Each trading system that automates the generation and routing of Orders to the 

Company must have a User ID.
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Rule 5.2 Order Entry and Audit Trail

A. Each Participant and Authorized User shall enter Orders on the Platform, and the 

Company shall maintain an electronic record of these entries. Each Participant 

shall be responsible for any and all Orders entered using User IDs assigned to 

the Participant or its Authorized User by the Company. Trading on the Company

central limit order book is anonymous.

B. Each Participant’s Authorized User entering Orders on the Platform must input 

for each Order the following information (to the extent that such information is not 

provided at account creation or by the Platform):

1. the Authorized User’s User ID;

2. for an Authorized User of an FCM Participant or Executing Participant 

entering an order on behalf of a Customer, the User ID of the Authorized 

User and the Customer ID, where applicable, for whom such Authorized 

User enters an Order;

3. the Series;

4. Order type;

5. Customer Type Indicator Code;

6. buy or sell, and for options, put, call and strike;

7. price;

8. quantity;

9. such additional information as may be prescribed from time to time by the 

Company; and

10. for each Order to buy or sell a Swap, the Authorized User shall include 

with each such Order the following information (to the extent that such 

information is not provided at account creation or by the Platform):

a the Legal Entity Identifier of the Participant on whose behalf the 

Order is placed;
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b a yes/no indication of whether the Participant is a swap dealer, as 

defined in Section 1a(49) of the CEA and CFTC Regulations, with 

respect to the Swap for which the Order is submitted;

c a yes/no indication of whether the Participant or Authorized User

is a major swap participant, as defined in Section 1a(33) of the 

CEA and CFTC Regulations, with respect to the Swap for which 

the Order is submitted;

d a yes/no indication of whether the Participant is a financial entity,

as defined in Section 2(h)(7)(C) of the CEA;

e a yes/no indication of whether the Participant or Customer is a 

U.S. person, as defined in the CFTC’s July 26, 2013 Cross-Border 

Guidance, as may be amended from time to time; and

f if the Swap will be allocated: (i) an indication that the Swap will be 

allocated; (ii) the LEI of the agent; (iii) an indication of whether the 

Swap is a post-allocation swap; and (iv) if the Swap is a postallocation swap, the unique swap identifier of the original 

transaction between the reporting counterparty and the agent.

C. In the event that an FCM Participant or Executing Participant or Authorized User 

of an FCM Participant or Executing Participant receives an Order from a 

Customer that cannot be immediately entered on the Platform, the Executing 

Participant or Authorized User of the Executing Participant must prepare a 

written Order ticket and include the account designation, date, an electronic 

timestamp reflecting the time of receipt and other information required pursuant 

to section (B) above. The FCM Participant or Executing Participant must enter 

the Order on the Platform when the Order becomes executable.

D. Audit Trail Requirements

1. Participants that provide connectivity to the Company are responsible for 

maintaining, or causing to be maintained, an Order routing or front-end 

audit trail for all electronic Orders, including Order entry, modification, 

cancellation and responses to such messages, entered on the Platform 

through any gateway to the Platform. The audit trail must contain all 
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Order receipt, Order entry, Order modification, and response or receipt 

times to the highest level of precision achievable by the operating system, 

in accordance with CFTC requirements for electronic Orders and no more 

than one second for non-electronic Orders. The times captured must not 

be able to be modified by the Person entering the Order.

2. Participants, including Authorized Users and any Person having Trading 

Privileges, must maintain audit trail information as required by the CEA 

and CFTC Regulations, including, but not limited to, CFTC Regulations 

1.31 and 1.35 if applicable, and must be able to produce this data in a 

standard format upon request from the Regulatory Oversight Committee, 

Compliance Department or other relevant department of the Company.

3. FCM Participants must maintain a complete record of all of Customer 

Orders to trade Company Contracts received by the FCM Participant, and 

any other Transaction records, communications or data received by the 

FCM Participant regarding its Customer Accounts.

4. The audit trail must capture required fields, which include but are not 

limited to the following: all fields relating to Order entry, including the ID 

of a Company Contract, quantity, Order type, buy/sell indicator, User 

ID(s), Customer Type Indicator Code, timestamps, and, where applicable, 

stop/trigger price, type of action and action status code, and applicable 

information contained in paragraph (B) of this Rule 5.2.

5. For Orders that are executed, the audit trail must record the execution 

time of the Company Contract and all fill information.

6. The Compliance Department staff shall require, at least on an annual 

basis, its Participants to verify compliance with these audit trail and 

record-keeping requirements. Participants also may be subject to 

periodic audit trail spot checks, depending upon any indicators that any 

Participant is failing to adhere to Company Rules pertaining to audit trail 

requirements, Participant obligations or any other failures to provide 

information to the Company upon request. The findings of such 

Company reviews will be documented and maintained as part of the 
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books and records of the Company. The reviews shall include, but not be 

limited to, the following: 

a review of random samples of audit trail data;

b review of the process by which identifications are assigned to 

records and users and how the records are maintained; and

c review of account numbers and customer indicators in trade 

records to test for accuracy and improper use.

E. CTI Codes. Each Participant must identify each Transaction on the record of 

transactions submitted to the Company with the correct CTI Code. The CTI 

Codes are as follows:

CTI 1: Electronic Trading and Privately Negotiated – Applies to Transactions 

initiated and executed by a Participant for its Proprietary Account, for an account 

controlled by a Participant, or for an account in which the Participant has an 

ownership or financial interest.

CTI 2: Electronic Trading and Privately Negotiated – Applies to Transactions 

initiated and executed by a Participant trading for a clearing member's house 

account. 

CTI 3: Electronic Trading and Privately Negotiated – Applies to Orders entered 

by a Participant or Authorized User for another Participant or an account 

controlled by such other Participant.

CTI 4: Electronic Trading and Privately Negotiated – Applies to Transactions 

initiated and executed by a Participant trading for any other type of Customer.

F. A Company Contract will not be void or voidable due to: (1) a violation by the 

Company of the provisions of sections 5 or 5h of the CEA or Parts 37 or 38 of 

CFTC Regulations; (2) any CFTC proceeding to alter or supplement a rule, term 

or condition under section 8a(7) of the CEA or to declare an emergency under 

section 8a(9) of the CEA; or (3) any other proceeding the effect of which is to: (i) 

alter or supplement a specific term or condition or trading rule or procedures, or 

(ii) require the Company to adopt a specific term or condition, trading rule or 

procedure, or to take or refrain from taking a specific action.
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Rule 5.3 Order Type

A. The following types of Orders may be entered on the Platform with respect to any 

Company Contract.

1. Limit Order. An Order to buy or sell a Company Contract at a specified 

price or better. A Limit Order must be entered on the Platform with a 

defined limit price. A Limit Order will be executed when it is entered, to 

the extent that there are resting contra-Orders, with any balance of such 

Limit Order to remain as a resting Order until such Limit Order is 

executed or cancelled. Unless cancelled by the Participant or upon a 

market close, an exchange restart, or other disruption to normal operating 

conditions, all Limit Orders shall be normally cancelled by the Company

30 days after being placed.

2. Negotiated Trade Order. An Order to cross a pre-negotiated trade 

available only for Permitted Transactions on the Company SEF. A

Negotiated Trade Order must be entered on the Platform with the Order 

size, limit price, buy or sell indication, and committed counterparty. The 

entire balance of the Negotiated Trade Order shall be executed against 

the committed counterparty’s side of the Negotiated Trade Order via the 

trade matching system. The agreed-upon terms of any Negotiated Trade 

Order must be submitted to the Platform via the Company 

Telecommunication Systems by one Participant within five minutes of the 

conclusion of any pre-negotiation. The counterparty to the transaction 

must then approve the terms via the Company Telecommunication 

Systems before the Negotiated Trade Order is executed via the trade 

matching system. 

3. Quote. A Limit Order as defined in this Rule 5.3A that is entered on the 

Platform by a Liquidity Provider.

B. The Company’s central limit order book matches orders in an open and 

competitive manner on the basis of a price and time priority algorithm.

C. The Company does not accept indications of interest or indicative quotes.
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D. Other types of Orders as may be approved by the Company from time to time as 

certified with the CFTC in accordance with Part 40 of CFTC Regulations and 

disclosed in a Participant Notice and on the Website.

Rule 5.4 Trading Contracts on Behalf of Customers

A. Individuals or entities that have not been approved and authorized as 

Participants of the Company may trade Company Contracts only as Customers 

of an FCM Participant, and all Customer Orders must be transmitted to the 

Company by each Customer’s FCM Participant. Each FCM Participant shall 

maintain a secure connection to the Company and comply with all technical and 

other requirements established by the Company for this purpose. 

B. Upon submission of a Customer Order, the Company will conduct a review of the 

FCM Participant’s applicable Customer Account to ensure that the FCM 

Participant’s Customer can fully collateralize the Order prior to entering into any 

Transaction. If the FCM Participant’s Customer Account does not have the 

necessary funds for the Order, the Company will not accept the Customer’s 

Order. 

Rule 5.5 Execution Methods

A. Swap Execution Facility:

1. The Company facilitates the execution of Orders through a central limit 

order book on the Platform, as set forth in Rule 5.3.

2. Negotiated Trade Orders are facilitated and executed via the Platform’s 

trade matching system.

3. The Company SEF does not facilitate the execution of Block Trades or 

EFPs.

B. Designated Contract Market:

1. The Company facilitates the execution of Orders in an open and 

competitive manner through a central limit order book on the Platform, as 

set forth in Rule 5.3.

2. The Company facilitates Block Trades and EFP transactions, as set forth 

in Rule 5.7 and Rule 5.8, respectively.
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3. The Company DCM does not facilitate the execution of Negotiated Trade 

Orders.

C. A written record of all of the terms of each Transaction entered into on the 

Company or pursuant to the Rules will be available immediately upon execution 

through the Participant Portal. Such record shall legally supersede any previous 

agreement and serve as a confirmation of each such Transaction. The Company 

will send confirmation messages to Participants upon execution of a Transaction 

via the API and/or Portal, if such Participants are online at the time. However, 

please note that if any applicable Participant is not online at the time of 

execution, such Participant will see the confirmation(s) when it next logs on to the 

Platform.

D. Except with respect to transfer trades, the product type, size, execution time (or 

submission time in the case of Block Trades and EFPs) and execution method 

for each Transaction will be made available on the Platform to all Participants 

immediately after execution (or immediately after submission to the Platform in 

the case of Block Trades and EFPs) of the relevant Transaction.

Rule 5.6 Trading Hours

A. The Trading Hours of the Company are 24 hours a day, seven days a week, 365 

days per year.

1 The Trading Hours applicable to any given type of Company 

Contract will be as specified in Chapter 12 of these Rules with any modifications 

posted on the Website and sent by Participant Notice.

Rule 5.7 Block Trades

A. The Company may permit Block Trades in Company Contracts listed by the 

Company DCM. The relevant Company Contract Specifications shall specify 

whether a Company Contract is eligible to be traded as a Block Trade.

B. Each Block Trade shall be effected away from the Platform but otherwise 

pursuant to the Rules. The parties to a Block Trade must be Eligible Contract 

Participants, and a Block Trade must be in a size that is equal to or in excess of 

the applicable minimum block size for such Company Contract as set forth in the 

Company Contract Specifications.

 1 Or, 366 days per year for leap years.
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C. An FCM Participant or an Executing Participant must receive written instructions 

from a Customer or obtain the Customer’s prior written or recorded consent 

before entering into a Block Trade with that Customer.

D. Except as may otherwise be permitted by Applicable Law, Participants shall not 

aggregate Orders for different accounts to achieve the minimum block size.

E. The price at which a Block Trade is executed must be fair and reasonable in light 

of (1) the size of the Block Trade, (2) the prices and sizes of other transactions in 

the same contract at the relevant time, (3) the prices and sizes of transactions in 

other relevant markets at the relevant time, and (4) the circumstances of the 

markets or the parties to the Block Trade.

F. Block Trades between different accounts with common beneficial ownership are 

prohibited unless (1) each party’s decision to enter into the block trade is made 

by an independent decision-maker and (2) each party has a legal and 

independent bona fide business purpose for engaging in the block trade.

G. The material terms of a Block Trade must be agreed to on the Company 

Telecommunication Systems. Each Block Trade must be submitted to the 

Company via the Company Telecommunication Systems by one Participant 

within five minutes of the execution. The counterparty to the transaction must 

then approve the terms of the Block Trade via the Company Telecommunication 

Systems within five minutes of the execution.

H. Participants involved in the execution of Block Trades must maintain written or 

electronic records of all such Block Trades, including an electronic timestamp 

reflecting the date and time any such Order was received as well as an electronic 

timestamp reflecting the date and time such Order was executed or cancelled.

I. All Company Contracts effected as Block Trades shall be cleared in the usual 

manner.

Rule 5.8 Exchange for Physical Transactions

A. The Company may permit EFP transactions involving Company Contracts listed 

by the Company DCM. The relevant Company Contract Specifications shall 

specify whether a Company Contract is eligible to be traded as a component of 

an EFP transaction.
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B. An EFP transaction shall consist of two discrete but related simultaneous 

transactions in which one party must be the buyer of the related position and 

seller of the corresponding Company Contract, and the other party to the EFP 

transaction must be the seller of the related position and the buyer of the 

corresponding Company Contract. The related position must involve the 

commodity underlying the Company Contract in a quantity that is approximately 

equivalent to the quantity covered by the Company Contract.

C. Each EFP transaction requires a bona fide transfer of ownership of the cash 

commodity between the parties. The facilitation of an EFP transaction by any 

party that knows such EFP transaction is non bona fide shall constitute a 

violation of this Rule.

D. The execution of an EFP transaction may not be contingent upon the execution 

of another EFP or related position transaction between the parties where the 

transactions result in the offset of the related position without the incurrence of 

market risk that is material in the context of the related position transactions.

E. The accounts involved in the execution of an EFP transaction must be (1) 

independently controlled with different beneficial ownership, (2) independently 

controlled accounts of separate legal entities with the same beneficial ownership, 

or (3) independently controlled accounts within the same legal entity, provided 

that the account controllers operate in separate business units.

F. EFP transactions may be effected at such commercially reasonable prices as are 

mutually agreed upon by the parties to the transaction. EFP transactions may not 

be priced to facilitate the transfer of funds between parties for any purpose other 

than as the consequence of legitimate commercial activity.

G. The parties to an EFP transaction shall maintain all documents relevant to the 

Company Contract and the related position including all documents customarily 

generated in accordance with the relevant market practices, including, as 

applicable, copies of the documents evidencing title to, or the contract or 

contracts to buy or sell, the cash commodity involved in such EFP transaction. 

Any such documents and information shall be furnished to the Company upon 

request.
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H. The material terms of an EFP transaction must be agreed to on the Company 

Telecommunication Systems. Each EFP transaction must be submitted to the 

Company via the Company Telecommunication Systems by one Participant 

within five minutes of the execution. The counterparty to the transaction must 

then approve the terms of the EFP transaction within five minutes of the 

execution via the Company Telecommunication Systems.

I. All Company Contracts effected as part of EFP transactions shall be cleared in 

the usual manner.

CHAPTER 6 Clearing and Delivery

Rule 6.1 Clearance and Substitution

A. Upon submission of an Order, the Company will conduct a review of the 

Participant’s Collateral Account to ensure that the Participant can fully 

collateralize the Order prior to entering into any Transaction. If the Participant’s 

Collateral Account does not have the necessary funds and/or collateral for the 

Order, the Company will not accept the Order.

B. Upon the successful matching of Orders, the Company’s Derivatives Clearing 

Organization shall immediately, through the process of Novation, be substituted 

as and assume the position of seller to the Participant buying and buyer to the 

Participant selling the relevant Company Contract. Upon such substitution, the 

buying and selling Participants shall be released from their Obligations to each 

other, and such Participants shall be deemed to have bought the Company 

Contract from or sold the Company Contract to the Company’s DCO, as the case 

may be, and the Company’s DCO shall have all the rights and be subject to all 

the liabilities of such Participants with respect to such Transactions. Such 

substitution shall be effective in law for all purposes. The Participants of the 

Company Contract are deemed to consent to the Novation by entering the 

applicable Orders on the Company Platform and the Company DCO consents to 

the Novation by accepting the Orders on the Company Platform.

C. Company Contracts with the same terms and conditions, as defined by the 

Company Contract Specifications, submitted to the Company’s Derivatives 

Clearing Organization for clearing, are economically equivalent within the 
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Company’s Derivatives Clearing Organization and may be offset with each other 

within the Company’s Derivatives Clearing Organization.

D. Upon acceptance of a Company Contract by the Company’s Derivatives Clearing 

Organization for clearing:

1. The original Company Contract is extinguished;

2. The original Company Contract is replaced by an equal and opposite 

Company Contract between the Company’s DCO and each Participant; 

and

3. All terms of a cleared Company Contract must conform to the Company 

Contract Specifications.

E. If a Company Contract is rejected for clearing by the Company’s Derivatives 

Clearing Organization for any reason, such Company Contract is void ab initio.

Rule 6.2 Settlement of Company Contracts

A. The Company shall maintain, on its system, a record of each Participant’s 

account balances and Company Contracts.

B. On the Settlement Date, the Company will notify all Participants of the final 

amount payable.

C. With respect to a Company Contract that is physically settled, the Company shall 

transfer the Underlying to the Participant Account on the Company’s books and 

records of the Participant that exercised its Company Contract that is an option 

on the next Business Day after the Settlement Date. For an expired Company

Contract that is an option, the Company will transfer the Underlying to the 

Participant Account on the Company’s books and records of the Participant that 

initially posted the Underlying in its capacity as the option call writer.

D. After the notice period on the last trading day of an expiring Series of Company 

Contracts that are options, the Company will delete all such Company Contracts 

that have not been exercised from each Participant’s Participant Account. A 

Company Contract that is an option and that has not been exercised on or before 

the last trading day will expire with no value in accordance with the Contract 

Specifications.
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Rule 6.3 Deposit Procedures

A. A Participant must submit a deposit notification through the Participant Portal 

before the Participant may deposit funds or any Underlying with the Company. A 

Participant must deposit funds or Underlying on the same day as the Participant 

submits to the Company a deposit notification to the Company. 

B. Deposits occur, and funds and Underlying are available for use with respect to 

Trading Privileges and Clearing Privileges, no later than the next Settlement 

Bank Business Day after a Participant submits a deposit notification and deposits 

funds or Underlying with the Company in accordance with Rule 6.3A 

C. Participants are responsible for all transfers of funds from their Companyapproved accounts to the Collateral Account or transfers of any Underlying to the 

Company for credit to the relevant Participant Account.

D. In the event a Participant deposits funds or Underlying to the Company without 

submitting a deposit notification, the Participant agrees to: (1) cooperate with the 

Company to resolve any issues that may arise; and (2) agree that the Company

will send the funds or Underlying back to the account or address from which it 

was transferred within two (2) Settlement Bank Business Days if there has been 

no resolution.

Rule 6.4 Withdrawal Procedures

A. Only an Authorized Representative may submit a withdrawal notification through 

the Participant Portal before the Company transfers funds or Underlying to a 

Participant or a Customer. Upon receipt of a withdrawal notification, the 

Company no longer permits funds or Underlying in the amount listed in the 

withdrawal notification to be used for Trading Privileges and Clearing Privileges.

B. Participants are responsible for providing accurate account numbers or wallet 

addresses, as the case may be, to allow the Company to effect transfers to the 

Participants or Customers.

C. Withdrawals occur, and funds and Underlying are available, no later than the 

next Settlement Bank Business Day after a Participant has submitted a 

withdrawal notification if the Participant submits a withdrawal notification during 

Trading Hours. 
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D. With respect to withdrawals of Bitcoin collateral, the Company shall deliver to the 

Participant a cryptographically signed Bitcoin transaction, which shall include the 

two signatures, the LedgerX “from” address, the Participant “to” address and the 

appropriate Bitcoin withdrawal amount. 

E. If a Participant fails to adhere to the withdrawal procedures set forth herein or in 

the Company Contract Specifications, as applicable, the Company will take 

reasonable measures to effect the withdrawal; however, if unable to effect the 

withdrawal, the Participant’s collateral may become the sole property of the 

Company, to the extent permitted by Applicable Law. The Company may apply 

the collateral (including any Underlying held in such Participant’s Participant 

Account) against the Participant’s Obligations.

Rule 6.5 Deliveries

A Participant that is required to make or accept delivery under a Company Contract (either for 

itself or on behalf of a Customer) agrees that it is required to provide full collateralization prior to 

entering any such Transaction or exercising any Company Contract so as to allow the Company

to complete all necessary delivery requirements as set forth in the Rules. Deliveries will occur 

on the Company’s books and records unless otherwise specified in the Company Contract

Specifications. Any failure to deposit funds or collateral in accordance with Rule 6.3 or withdraw 

funds or collateral in accordance with Rule 6.4 may be deemed a default of an Obligation and 

an act detrimental to the interest or welfare of the Company.

Rule 6.6 Reconciliation

The Company shall reconcile the positions and cash and collateral balances of each Participant 

at the end of each Settlement Bank Business Day. The Company shall make available to each 

Participant the positions and cash and collateral balances of each such Participant and any 

Customers of the Participant. All Participants shall be responsible for reconciling their records of 

their positions and cash and collateral balances with the records of positions and cash and 

collateral balances that the Company makes available to Participants.

Rule 6.7 Swap Data Reporting

A. The Company shall report Regulatory Swap Data for Swaps to a single Swap 

Data Repository for purposes of complying with the CEA and applicable CFTC 

Regulations governing the regulatory reporting of swaps. The Company shall 

report all data fields as required by Appendix A to Part 43 of CFTC Regulations 
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and Appendix 1 to Part 45 of CFTC Regulations, as applicable, including, but not 

limited to, Swap counterparties, Company Contract type, option method, option 

premium, LEIs, User IDs, buyer, seller, USIs, unique product identifiers, 

underlying asset description, the Swap price or yield, quantity, maturity or 

expiration date, the size, settlement method, execution timestamp, timestamp of 

submission to the SDR, the CTI Code, Participant Accounts, and whether a 

Participant is a swap dealer, major swap participant or a financial entity. The 

Company shall identify each counterparty to any Transaction in all recordkeeping 

and all Regulatory Swap Data reporting using a single LEI as prescribed under 

CFTC Regulation 45.6. As soon as technologically practicable after execution, 

the Company also shall transmit to both Swap counterparties and the LedgerX 

DCO, the USI for the Swap created pursuant to CFTC Regulation 45.5 and the 

identity of the SDR. For Swaps involving allocation, the Company will transmit 

the USI to the Reporting Counterparty and the agent as required by CFTC 

Regulation 45.5(d)(1).

B. The Company shall from time to time designate a Swap Data Repository in 

respect of one or more Swaps and shall notify Participants of such designation. 

Currently, the Company reports all Regulatory Swap Data for all Swaps to ICE 

Trade Vault.

C. Participants that become aware of an error or omission in Regulatory Swap Data 

for a Transaction shall promptly submit corrected data to the Company. 

Participant shall not submit or agree to submit a cancellation or correction in 

order to gain or extend a delay in pubic dissemination of accurate Swap 

Transaction and Pricing Data or to otherwise evade the reporting requirements of 

Part 43 of CFTC Regulations. LedgerX will report any errors or omissions in 

Regulatory Swap Data to the same SDR to which it originally submitted the Data, 

as soon as technologically practicable after discovery of any such error or 

omission.

D. The Company sends the Regulatory Swap Data as set forth in Rule 6.7A to the 

Swap Data Repository as soon as technologically practicable after a trade has 

been executed on the Platform, or pursuant to the Company Rules. Following 

the transmittal of the Data to the Swap Data Repository, the Company will make 

available the Swap Transaction and Pricing Data to all Participants accessing the 
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Platform. However, due to transmission and posting timing of the Swap Data 

Repository, Participants should be aware that the Swap Transaction and Pricing 

Data may be available on the Company Platform prior to being publicly 

disseminated by the Swap Data Repository.

CHAPTER 7 Margin

Rule 7.1 Full Collateralization of Company Contracts Required

Each Participant, on behalf of itself or Customers, shall deposit funds or the applicable amount 

of the Underlying required to fully collateralize Orders pursuant to Company Contract

Specifications, including payment of premiums, payment in exchange for delivery or to fulfill 

delivery obligations, as applicable, prior to submission of such Orders to the Company. If a 

Company Contract is an option, a Participant shall not be permitted to exercise such option if 

the Participant has not already deposited sufficient collateral to fully collateralize the Underlying 

or funds necessary to complete delivery or payment of the option, as applicable. Collateral 

transfers made by a Participant to the Company or by the Company to a Participant are 

irrevocable and unconditional when effected.

Rule 7.2 Collateral

A. Subject to the terms and conditions of Company-approved margin collateral, the 

Company will accept from Participants the following as margin collateral: (1) 

cash; (2) the Underlying; 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 Participant Notices and on 

the Website. The Company will value margin collateral as it deems appropriate.

B. Except as otherwise provided herein, Collateral must be and remain 

unencumbered. Each Participant posting collateral hereby grants to the 

Company a continuing first priority security interest in, lien on, right of setoff 

against and collateral assignment of all of such Participant’s right, title and 

interest in and to any property and collateral deposited with the Company by the 

Participant, whether now owned or existing or hereafter acquired or arising, 

including without limitation the following: (i) such Participant’s Participant Account 

and all securities entitlements held therein and all funds held in a Collateral 

Account; (ii) all Digital Currencies that, in each case, are held in or otherwise 

credited to a virtual “wallet” or other account maintained by the Company; (iii) 
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such virtual “wallet” or other account; and (iv) all proceeds of the foregoing. A 

Participant shall execute any documents required by the Company to create, 

perfect and enforce such lien. 

C. Each Participant hereby agrees that with respect to any Digital Currency and any 

other financial asset which is or may be credited to the Participant’s Participant 

Account, the Company 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. A Participant must transfer the collateral to the Company or to a Collateral 

Account and the Company will hold collateral transferred to the Company on 

behalf of the Participant. The Company will credit to the Participant the collateral 

that such Participant deposits. Collateral shall be held by the Company until a 

Participant submits a withdrawal notification unless otherwise stipulated by these 

Rules.

E. The Company will not be responsible for any diminution in value of collateral that 

a Participant deposits with the Company. Any fluctuation in markets is the risk of 

each Participant. Any interest earned on Participant collateral may be retained by 

the Settlement Bank or the Company.

F. The Company has the right to liquidate a Person’s Company Contracts or noncash collateral to the extent necessary to close or transfer Company Contracts, 

fulfill obligations to the Company or other Participants, and/or to return collateral 

in the event that (1) the Person ceases to be a Participant; (2) the Company

suspends or terminates the Person’s Trading Privileges or Clearing Privileges; or 

(3) the Company determines in its sole discretion that it is necessary to take such 

measures. 

Rule 7.3 Segregation of Participant Funds

The Company shall separately account for and segregate from the Company’s proprietary funds 

all Participant funds used to purchase, margin, guarantee, secure or settle Company Contracts, 

and all money accruing to such Participant as the result of Company Contracts so carried in a 

Collateral Account. The Company shall maintain a proprietary account that will be credited with 

fees or other payments owed to the Company that are debited from the Collateral Account as a 

result of Participant trades and settlements of Company Contracts. The Company shall 
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maintain a record of each Participant’s account balances and Company Contracts. The 

Company shall not hold, use or dispose of Participant funds except as belonging to Participants.

Rule 7.4 Concentration Limits

The Company may apply appropriate limitations or charges on the concentration of assets 

posted as collateral, as necessary, in order to ensure its ability to liquidate such assets quickly 

with minimal adverse price effects, and may evaluate the appropriateness of any such 

concentration limits or charges, on a periodic basis. In the event that the Company determines 

in its sole discretion that the Participant’s deposit is in material excess of the amount necessary 

to collateralize the Participant’s Company Contracts, the Company shall have the right to (1) 

transfer non-cash collateral, including Digital Currencies, back to a Participant, and Participant 

agrees to accept such transfer, or (2) take other action the Company deems to be necessary to 

safeguard the collateral. The Company shall be entitled to charge fees related to holding noncash collateral in material excess of the amount necessary to collateralize a Participant’s 

Company Contracts.

CHAPTER 8 Business Conduct and Trading Practices

Rule 8.1 Scope

This Chapter 8 applies to all Transactions except as may be provided herein. Participants and, 

where applicable, Authorized Users, shall adhere to and comply fully with this Chapter 8.

Rule 8.2 Procedures

A. With respect to trading on the Platform, the Company may adopt procedures 

relating to Transactions and trading on the Platform, including, without limitation, 

procedures to:

1. determine the daily settlement price of a Company Contract;

2. disseminate the prices of bids and offers on, and trades in, Company 

Contracts;

3. record, and account for, Company Contracts and activity on the 

Company;

4. perform market surveillance and regulation on matters affecting Company 

Contracts and activity on the Company;
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5. establish limits on the number and/or size of Orders that may be 

submitted by a Participant on the Platform;

6. establish limits on the number of Company Contracts that may be held by 

a Participant; and

7. establish a limit on the maximum daily price fluctuations for any Company 

Contract and provide for any related restriction or suspension of trading in 

the Company Contract.

B. The Company may, in its discretion and at any time, amend any procedures 

adopted pursuant to Rule 8.2A, and will publish the amendments in a Participant 

Notice and on the Website.

Rule 8.3 Prohibited Trading Activity; Prohibitions on Fictitious Transactions, Fraudulent 

Activity and Manipulation

No Person shall engage in any of the following activities in connection with or related to any 

Company activity:

A. any fraudulent act or scheme to defraud, deceive, trick or mislead;

B. trading ahead of a Customer or front-running;

C. fraudulent trading;

D. trading against a Customer Order or entering into a cross-trade, except as 

permitted by Rule 8.11;

E. accommodation trading;

F. fictitious Transactions;

G. pre-arranged or non-competitive Transactions (except for Transactions 

specifically authorized under these Rules);

H. cornering, or attempted cornering, of any Company Contract;

I. violations of bids or offers;

J. spoofing;

K. any manipulation proscribed under CEA Section 9(a)(2) or CFTC Regulations 

180.1(a) or 180.2, whether attempted or completed;
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L. demonstrating intentional or reckless disregard for the orderly execution of 

Transactions during the closing period;

M. making fictitious or trifling bids or offers, offering to enter into a Company

Contract at a price variation less than the minimum price fluctuation permitted for 

such Company Contract under the Rules, or knowingly making any bid or offer 

for the purpose of making a market price that does not reflect the true state of the 

market; or

N. other conduct that constitutes a disruptive trading practice or is otherwise 

prohibited under CEA Section 4c(a)(5) or applicable CFTC Regulations.

Rule 8.4 Prohibition on Money Passing, Pre-Arranged, Pre-Negotiated and NonCompetitive Trades

A. No Person may enter Orders for the purpose of entering into Transactions 

without a net change in either party’s open positions but a resulting profit to one 

party and a loss to the other party, commonly known as a “money pass”.

B. No Person shall pre-arrange or pre-negotiate any purchase or sale or noncompetitively execute any Transaction, except to effect a Negotiated Trade 

Order, a Block Trade or an EFP transaction. Pre-execution communications 

related to the material terms of a Negotiated Trade Order, a Block Trade or an 

EFP transaction must take place on the Company Telecommunication Systems.

Rule 8.5 Acts Detrimental to the Welfare or Reputation of the Company Prohibited

No Participant, Authorized Representative, Authorized User or ISV shall engage in any 

Company activity that tends to impair the welfare, reputation, integrity or good name of the 

Company.

Rule 8.6 Misuse of the Platform

Misuse of the Platform is strictly prohibited. It shall be deemed an act detrimental to the 

Company to permit unauthorized use of the Platform, to assist any Person in obtaining 

unauthorized access to the Platform, to trade on the Platform without an agreement, to alter the 

equipment associated with the Platform (except with the Company’s consent), to interfere with 

the operation of the Platform, to intercept or interfere with information provided thereby, or in 

any way to use the Platform in a manner contrary to these Rules.
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Rule 8.7 Supervision; Information Sharing

A. A Participant shall be responsible for establishing, maintaining and administering 

reasonable supervisory procedures to ensure that its Authorized Users comply 

with these Rules and Applicable Law, and such Participant may be held 

accountable for the actions of such Authorized Users with respect to the 

Company.

B. Participants and Authorized Users shall cooperate fully with the Company or a 

Regulatory Agency in any investigation, call for information, inquiry, audit, 

examination or proceeding.

C. Participants and Authorized Users shall ensure that any information disclosed to 

the Company is accurate, complete and consistent. No existing or prospective 

Participant or Authorized User shall make any false statements or 

misrepresentations in any application, report or other communication to the 

Company.

Rule 8.8 Business Conduct

A. Conducting trading activities in an honorable and principled manner consistent 

with these Rules is the essence of ethical conduct with respect to the Company. 

Participants, Authorized Users and other Persons subject to the Company’s 

jurisdiction shall act with ethical integrity with regard to their Company activity, 

and shall adhere to the following ethical standards:

1. A Participant, Authorized User and any other Person subject to the 

Company’s jurisdiction shall abstain from engaging in conduct that is a 

violation of these Rules or Applicable Law, and will conduct its business 

in accordance with Applicable Law, and in good faith, with a commitment 

to honest dealing.

2. No Participant, Authorized User or other Person subject to the Company’s 

jurisdiction shall engage in any fraudulent act or engage in any scheme to 

defraud, deceive, trick or mislead in connection with or related to any 

Company activity.

3. No Participant, Authorized User or other Person subject to the Company’s 

jurisdiction shall knowingly enter, or cause to be entered, bids or offers on 
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the Platform other than in good faith for the purpose of executing bona 

fide Transactions.

Rule 8.9 Trading Practices

A. No Participant, Authorized User or other Person subject to the Company’s 

jurisdiction shall knowingly effect or induce the purchase or sale of any Company 

Contract for the purpose of creating or inducing a false, misleading, or artificial 

appearance of activity in such Company Contract, or for the purpose of unduly or 

improperly influencing the market price of such Company Contract or for the 

purpose of making a price which does not reflect the true state of the market in 

such Company Contract. No such Participant, Authorized User or other Person 

shall arrange and execute simultaneous offsetting buy and sell Orders in a 

Company Contract with the intent to artificially affect reported revenues, trading 

volumes or prices.

B. No Participant, Authorized User or other Person subject to the Company’s 

jurisdiction shall attempt to manipulate, or manipulate the market, in any 

Company Contract or Underlying. No such Participant, Authorized User or other 

Person shall directly or indirectly participate in or have any interest in the profit of 

a manipulative operation or knowingly manage or finance a manipulative 

operation. This includes any pool, syndicate, or joint account, whether in 

corporate form or otherwise, organized or used intentionally for the purposes of 

unfairly influencing the market price of any Company Contract.

C. Orders entered on the Platform for the purpose of upsetting the equilibrium of the 

market in any Company Contract or creating a condition in which prices do not or 

will not reflect fair market values are prohibited, and any Person who makes or 

assists in entering any such Order with knowledge of the purpose thereof or who, 

with such knowledge, in any way assists in carrying out any plan or scheme for 

the entering of any such Order, will be deemed to have engaged in an act 

detrimental to the Company.

D. No Participant, Authorized User or other Person subject to the Company’s 

jurisdiction shall engage in any trading, practice, or conduct that constitutes a 

disruptive or a manipulative trading practice, as defined by the CEA, CFTC 

Regulations or in any interpretive guidance issued by the Commission.
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E. No Participant, Authorized User or other Person subject to the Company’s 

jurisdiction shall make any knowing misstatement of a material fact to the 

Company, any Company Official, or any Board committee.

F. No Participant, Authorized User or other Person subject to the Company’s 

jurisdiction shall knowingly disseminate false or misleading reports regarding 

Transactions, the Company or one or more markets in any Company Contract.

G. Abusive trading practices are prohibited on the Platform. No Participant, 

Authorized User or other Person subject to the Company’s jurisdiction shall place 

or accept buy and sell Orders in the same product and expiration month, and for 

options, the same strike, when they know or reasonably should know that the 

purpose of the Orders is to avoid taking a bona fide market position exposed to 

market risk (transactions commonly known or referred to as “wash sales”). Buy 

and sell Orders that are entered with the intent to negate market risk or price 

competition shall be deemed to violate the prohibition on wash sales. 

Additionally, no Participant, Authorized User or other Person subject to the 

Company’s jurisdiction shall knowingly execute or accommodate the execution of 

such Orders by direct or indirect means.

H. No Participant, Authorized User or other Person subject to the Company’s 

jurisdiction shall disclose an Order to buy or sell, except to a Company

Representative or official of the CFTC or as necessary to efficiently execute the 

Order, nor shall any such Participant, Authorized User or other Person solicit or 

induce another Person to disclose Order information. No Participant, Authorized 

User or other Person shall take action or direct another to take action based on 

non-public Order information, however acquired, except as permitted by Rule 

8.4B. The mere statement of opinions or indications of the price at which a 

market may open or resume trading does not constitute a violation of this Rule.

Rule 8.10 Customer Order Priority

A. No Participant, Authorized User or other Person subject to the Company’s 

jurisdiction shall knowingly enter an Order on the Platform for its own account, an 

account in which it has a direct or indirect financial interest, or an account over 

which it has discretionary trading authority (a “Discretionary Order”), including, 

without limitation, an Order allowing discretion as to time and price, when such 
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Person is in possession of a Customer Order that can be but has not been 

entered on the Platform.

B. For purposes of this Rule 8.10, a Person shall not be deemed to knowingly buy 

or sell a Company Contract or execute a Discretionary Order if:

1. such Person is a corporate or other legal entity consisting of more than 

one individual trader;

2. such Person has in place appropriate “firewall” or separation of function 

policies and procedures; and

3. the Person or Authorized User buying or selling the Company Contract or 

executing the Discretionary Order in question has no direct knowledge of 

the Order to buy or sell the same Company Contract for any other Person 

at the same price or at the market price or of the Customer Order for the 

same Company Contract, as the case may be.

C. Nothing in this Rule 8.10 limits the ability of an “eligible account manager” to 

bunch Orders in accordance with CFTC Regulation 1.35(b)(5).

Rule 8.11 Trading Against Customer Orders

A. No Person in possession of a Customer Order shall knowingly take, directly or 

indirectly, the opposite side of such Order for its own account, an account in 

which it has a direct or indirect financial interest, or an account over which it has 

discretionary trading authority.

B. The foregoing restriction does not prohibit permissible pre-execution discussions 

conducted in accordance with Rule 8.4.

Rule 8.12 Prohibition on Withholding of Customer Orders

No Executing Participant or FCM Participant shall withhold or withdraw from the market any 

Customer Order, or any part of an Order, for the benefit of any Person other than the Customer.

Rule 8.13 Execution Priority

A. Executable Customer Orders must be entered on the Platform immediately upon 

receipt. An FCM Participant or Executing Participant that receives a Customer 

Order that is not immediately entered on the Platform must create a non-erasable 
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record of the Order, including the Order instructions, account designation, date, 

time of receipt and any other information that may be required by the Company.

B. Customer Orders received by an FCM Participant or Executing Participant shall 

be entered on the Platform in the sequence received. Customer Orders that 

cannot be immediately entered on the Platform must be entered when the Orders 

become executable in the sequence in which the Orders were received.

C. Non-discretionary Customer Orders received by an FMC Participant or Executing 

Participant shall be entered on the Platform in the sequence in which they were 

received. Non-discretionary Customer Orders that cannot be immediately 

entered on the Platform must be entered when the Orders become executable in 

the sequence in which the Orders were received.

Rule 8.14 Crossing Orders

Independently initiated Orders on opposite sides of the market for different beneficial account 

owners that are immediately executable against each other may be entered without delay. 

Orders must not involve pre-execution communications, except as permitted by Rule 8.4B.

Rule 8.15 Position Limits

A. To reduce the potential threat of market manipulation or congestion, LedgerX 

shall adopt for each of its Company Contracts, as is necessary and appropriate, 

position limitations or position accountability levels for speculators. The 

Company may establish position limits for one or more Company Contracts at a 

level not higher than any limit set by the CFTC for any Company Contract. The 

position limit levels shall be set forth in a Position Limit and Position 

Accountability Level Table as may be amended from time to time by the 

Company in a Participant Notice and on the Website. The Company may grant 

exemptions from position limits in accordance with CFTC Regulations.

B. A Participant seeking an exemption from position limits, including position limits 

established pursuant to a previously approved exemption, must file the required 

application with the Company in the form and manner as the Company may 

require from time to time and receive approval before exceeding such position 

limits. Notwithstanding the foregoing, a Participant who establishes an 

exemption-eligible position in excess of position limits and files the required 

application with the Company shall not be in violation of this Rule, provided the 
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filing occurs within one Settlement Bank Business Day after assuming the 

position. In the event that the positions in excess of the position limits are not 

deemed to be exemption-eligible, the applicant and the Executing Participant, if 

any, will be in violation of speculative position limits for the period of time in which 

the excess positions remained open.

C. A Participant who owns or controls aggregate positions in a Company Contract in 

excess of the reportable levels set forth in the Position Limit and Position 

Accountability Level Table or where such Person otherwise holds substantial 

positions in Company Contracts shall:

1. keep records, including records of such Participant’s activity in the 

Underlying and related derivative markets, and make such records 

available, upon request, to the Company;

2. provide to the Company, in a timely manner upon request by the 

Company and in a form and manner acceptable to the Company, 

information relating to the positions owned or controlled by such 

Participant, including but not limited to the nature and size of the position, 

the trading strategy employed with respect to the position, and hedging 

information, if applicable;

3. be deemed to have consented, when so ordered by the Company, in its 

sole discretion, not to further increase the positions, to comply with any 

prospective limit which exceeds the size of the position owned or 

controlled, or to liquidate any open position which exceeds position limits; 

and

4. liquidate Company Contracts, if applicable, in an orderly manner.

D. This Rule 8.15 shall not limit the jurisdiction of the Company to take action that it 

determines necessary or appropriate in respect of any positions on the 

Company, including but not limited to the Company taking steps to liquidate such 

Company Contracts on behalf and at the expense of such Participant to the 

extent necessary to eliminate such excess.
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Rule 8.16 Position Accountability Levels

A. The Company shall establish position accountability levels for Company 

Contracts not subject to position limits pursuant to Rule 8.15. The position 

accountability levels shall be set forth in a Position Limit and Position 

Accountability Level Table as may be amended from time to time by the 

Company in a Participant Notice and on the Website.

B. A Participant that owns or controls aggregate positions in a Company Contract in 

excess of the reportable levels set forth in the Position Limit and Position 

Accountability Level Table or where such Participant otherwise holds substantial 

positions in Company Contracts shall:

1. keep records, including records of such Person’s activity in the Underlying 

and related derivative markets, and make such records available, upon 

request, to the Company;

2. provide to the Company, in a timely manner upon request by the 

Company and in a form and manner acceptable to the Company, 

information relating to the positions owned or controlled by such Person, 

including but not limited to the nature and size of the position, the trading 

strategy employed with respect to the position, and hedging information, if 

applicable;

3. be deemed to have consented, when so ordered by the Company, in its 

sole discretion, not to further increase the positions, to comply with any 

prospective limit which exceeds the size of the position owned or 

controlled, or to liquidate any open position which exceeds position 

accountability levels; and

4. liquidate Company Contracts, if applicable, in an orderly manner.

C. This Rule shall not limit the jurisdiction of the Company to take action that it 

determines necessary or appropriate in respect of any positions on the 

Company, including but not limited to the Company taking steps to liquidate such 

Company Contracts on behalf and at the expense of such Participant to the 

extent necessary to eliminate such excess.
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Rule 8.17 Aggregation of Positions

A. For purposes of Rule 8.15 and Rule 8.16, all positions in Company Contracts 

must be aggregated as required by CFTC Regulations. Aggregation of positions 

shall apply to:

1. All positions in accounts for which a Person by power of attorney or 

otherwise directly or indirectly owns the positions or controls the trading of 

the positions. Position limits shall apply to positions held by two or more 

Persons acting pursuant to an expressed or implied agreement or 

understanding, in the same as if the positions were held by, or the trading 

of the positions was done by, a single Person.

2. Any Person holding positions in more than one account, or holding 

accounts or positions in which the Person by power of attorney or 

otherwise directly or indirectly has a ten percent or greater ownership or 

equity interest, must aggregate all such accounts or positions unless such 

Person is exempted from aggregating such positions by CFTC 

Regulations.

B. Any Participant seeking an exemption from aggregation of positions must (1) 

satisfy the exemptive requirements in CFTC Regulations; and (2) apply for a 

Company-approved exemption in the form and manner as may be prescribed by 

the Company from time to time.

Rule 8.18 Large Trader Reporting

A. Each Participant shall submit to the Company (i) a daily report of all positions that 

exceed the reportable position levels set forth on the Website and (ii) a copy of 

the CFTC Form 102 (Identification of Special Accounts, Volume Threshold 

Accounts and Consolidated Accounts and which shall include a Series S filing 

made pursuant to CFTC Regulation 20.5) filed by the Participant or Executing 

Participant with the CFTC for such Participant’s or Executing Participant’s 

Customers’ reportable accounts. The Form 102 shall be submitted to the 

Company no later than the Settlement Bank Business Day following the date on 

which the account becomes reportable.

B. Positions in Company Contracts at or above the reportable level set forth on the 

Website trigger reportable status. For a Participant in reportable status, all 
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positions, regardless of size, in relevant Company Contracts must be reported to 

the Company, in addition to any regulatory obligations a Participant may have 

separate and apart from these Rules.

C. All large trader reports shall be submitted in the form and manner specified by 

the Company. The Company may require that more than one large trader report 

be submitted daily. The Regulatory Oversight Committee may require certain 

Participants to provide reports on a lesser number of positions than otherwise 

required by the Company.

Rule 8.19 Compliance

Each Participant shall have a compliance program commensurate with the size and scope of its 

trading activities on the Company and designed to ensure appropriate, timely and ongoing 

review of trading practices and compliance with the Rules. Each Participant shall act in 

accordance with these practices for compliance and monitoring with regard to its Company

activity:

A. Provide for proper training of personnel on the provisions of the Rules;

B. Maintain internal policies and procedures to promote compliance with the Rules;

C. Promptly disclose to the Company the details of any violations of the Rules 

involving a Participant’s activities on the Company, including its own activities or 

those of another Participant, and a Participant shall promptly disclose to the 

Company the details of any disciplinary sanctions, fines or other related 

determinations made by a Regulatory Agency or another market on which such 

Participant trades, or provision of market information to the Company or any of its 

Affiliates;

D. Provide an environment that encourages employees to engage in safe and 

confidential discussions and to disclose to senior management any trading 

practices that might violate the Rules;

E. Require any consultant, contractor and subcontractor to disclose all financial 

affiliations and conflicts of interest. Ensure that consultants, contractors or 

subcontractors do not cause any disclosure of information in violation of the 

Rules, including this code of conduct, and that confidentiality agreements are in 

effect where appropriate; and
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F. Establish clear lines of accountability for trading practices, including provisions 

relating to the responsibilities of corporate officers, with appropriate oversight by 

the board of directors or other senior corporate management committee.

CHAPTER 9 Discipline and Enforcement

Rule 9.1 General

A. Market Monitoring

1. The Company shall record and store a record of all data entered into the 

Platform, including the Participant’s and Authorized User’s identity, 

information on Transactions and any other information required and in 

accordance with the Company’s policies.

2. The Company shall conduct market surveillance and trade practice 

surveillance by monitoring and reviewing data entered into the Platform 

using programs designed to alert the Company of potentially unusual or 

violative trading activity.

3. The Company, through the Compliance Department, shall initiate a 

review of unusual or violative trading activity and, where appropriate, 

investigate such activity. The Compliance Department will also conduct 

investigations when Compliance Department staff at any time has reason 

to believe that inappropriate activity of any sort is taking place on the 

Company, Platform or Website.

B. All Persons within the Company’s jurisdiction are subject to this Chapter 9 if they 

are alleged to have violated, to have aided and abetted a violation, to be 

violating, or to be about to violate, any Rule or any provision of Applicable Law 

for which the Company possesses disciplinary jurisdiction.

C. Compliance Department

1. The Company has a Compliance Department consisting of one or more 

compliance staff. The Chief Compliance Officer is responsible for 

overseeing the Compliance Department and shall report to the Regulatory 

Oversight Committee and the CEO.

2. The Compliance Department shall investigate unusual trading activity or 

other activity that the Compliance Department has reasonable cause to 
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believe could constitute a violation of these Rules, and shall enforce the 

Rules and prosecute possible Rule violations within the Company’s 

disciplinary jurisdiction.

3. The Compliance Department shall conduct at least annual reviews of all 

Participants to verify compliance with Company Rules. The Compliance 

Department may conduct periodic reviews of all persons and firms subject 

to the Company’s Rules to verify compliance with the Company Rules. 

Such reviews may include, but are not limited to, reviews of randomly 

selected samples of audit trail data, reviews of the process by which User 

ID records are maintained, reviews of usage patterns associated with 

User IDs, and reviews of account numbers and Customer Type Indicator 

codes.

D. The Company, through the Compliance Department, Disciplinary Panel and 

Appeals Committee, shall conduct inquiries, investigations, disciplinary 

proceedings and appeals from disciplinary proceedings, summary impositions of 

fines, summary suspensions or other summary actions in accordance with this 

Chapter 9. Any Person subject to the Company’s jurisdiction under Rule 3.1 is 

subject to the Company’s disciplinary authority set forth in this Chapter 9.

E. The Company, through the Compliance Department, will commence an 

investigation upon (i) the discovery or receipt of information that indicates a 

reasonable basis for finding that a violation may have occurred or will occur, or 

(ii) the receipt of a request from Commission staff. 

F. No Company Official shall interfere with or attempt to influence the process or 

resolution of any Disciplinary Action, except to the extent provided under these 

Rules with respect to a proceeding in which a Person is a member of the relevant 

Disciplinary Panel or Appeals Committee.

G. Representation by Counsel

1. A Respondent, upon being served with a Notice of Charges, has the right 

to retain and be represented by legal counsel or any other representation 

of its choosing, except any Director or a member of the Disciplinary Panel 

or person substantially related to the underlying investigations, such as 

material witnesses or respondents during such proceedings.
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2. In the event of any appeal that requires the Company to retain legal 

counsel, the Respondent shall be responsible for the reasonable 

attorney’s fees incurred by the Company if the Respondent does not 

prevail in the dispute.

H. The Company may hold a Participant liable for, and impose sanctions against 

such Participant, for such Participant’s own acts and omissions that constitute a 

violation as well as for the acts and omissions of each Authorized User, 

Authorized Representative or other Person using a User ID of such Participant, 

or other agent or representative of such Participant (other than an Executing 

Participant acting as agent for such Participant), in each case, that constitute a 

violation as if such violation were that of the Participant.

I. Ex Parte Communications

1. A Respondent (and any counsel or representative of such Respondent) 

and the Compliance Department (and any counsel or representative of 

the Compliance Department) shall not knowingly make or cause to be 

made an ex parte communication relevant to the merits of a disciplinary 

proceeding or an appeal from a disciplinary proceeding to any member of 

the Disciplinary Panel or the Appeals Committee that hears such 

proceeding.

2. Members of a Disciplinary Panel or Appeals Committee shall not 

knowingly make or cause to be made an ex parte communication relevant 

to the merits of a disciplinary proceeding or an appeal from a disciplinary 

proceeding to any Respondent (and any counsel or representative of 

such Respondent) or the Compliance Department (and any counsel or 

representative of the Compliance Department).

3. Any Person who receives, makes or learns of any communication that is 

prohibited by this Rule 9.1I shall promptly give notice of such 

communication and any response thereto to the Compliance Department 

and all parties to the proceeding to which the communication relates.

4. A Person shall not be deemed to have violated this Rule 9.1I if the Person 

refuses an attempted communication concerning the merits of a 
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proceeding as soon as it becomes apparent that the communication 

concerns the merits.

Rule 9.2 Investigations

A. The Compliance Department will endeavor to complete any investigation within 

12 months of the time unusual trading activity or a potential Rule violation is 

suspected, unless there exists significant reason to extend the investigation 

beyond such period. Upon the conclusion of any investigation, the Compliance 

Department shall draft a report detailing the facts that led to the opening of the 

investigation, the facts that were found during the investigation, and the 

Compliance Department’s analysis and conclusion. Such internal report shall be 

maintained in accordance with Rule 2.14.

B. The Compliance Department has the authority to:

1. initiate and conduct inquiries and investigations;

2. examine books and records of any Person subject to the Company’s 

jurisdiction under Rule 3.1;

3. prepare investigative reports and make recommendations concerning 

initiating disciplinary proceedings;

4. issue a Notice of Charges to a Respondent;

5. prosecute alleged violations within the Company’s disciplinary jurisdiction; 

and

6. represent the Company on appeal from any disciplinary proceeding, 

summary imposition of fines, summary suspension or other summary 

action.

C. Each Person subject to the jurisdiction of the Company:

1. is obligated to appear and testify and respond in writing to interrogatories 

within the time period required by the Compliance Department in 

connection with:

a any Rule;

b any inquiry or investigation; or
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c any preparation by and presentation during a Disciplinary Action;

2. is obligated to produce books, records, papers, documents or other 

tangible evidence in its possession, custody or control within the time 

period required by the Compliance Department in connection with:

a any Rule;

b any inquiry or investigation; or

c any preparation by and presentation during a Disciplinary Action; 

and

3. may not impede or delay any Disciplinary Action.

Rule 9.3 Disciplinary Panel

A. The Respondent disputes the Compliance Department’s findings with respect to 

a Disciplinary Action, the Company shall convene the Disciplinary Panel to 

adjudicate the findings by the Compliance Department that are under dispute. 

The Chief Compliance Officer or an individual designated by the Chief 

Compliance Officer may be appointed to argue the matter on behalf of the 

Company.

1. Members of the Disciplinary Panel shall be individuals that do not have a 

direct interest (financial, personal or otherwise) in the matter, but in no 

event may be members of the Compliance Department or any Persons 

involved in adjudicating any other stage of the same proceeding.

2. In the event that members of the Disciplinary Panel do not satisfy the 

requirements of this Rule 9.3A.2, then the Regulatory Oversight 

Committee may substitute a new member for the Disciplinary Panel or act 

as the Disciplinary Panel, to the extent that the substituted member or the 

Regulatory Oversight Committee, as the case may be, does not have a 

direct interest (financial, personal or otherwise) in the matter.

B. Members of the Disciplinary Panel and the Compliance Department may not 

communicate regarding the merits of a matter brought before the Disciplinary 

Panel without informing the Respondent who is the subject of the communication 

of the substance of such communication and allowing the Respondent an 
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opportunity to respond. The Compliance Department may compel testimony, 

subpoena documents, and require statements under oath from any Respondent 

or, to the extent the Respondent is a Participant, any of its Authorized Users, 

Authorized Representatives or other employees or agents.

C. The Compliance Department and other Company Representatives working under 

the supervision of the Compliance Department may not operate under the 

direction or control of any Participant, Authorized User, Authorized 

Representative or any other representative of a Participant, or trade, directly or 

indirectly, in any commodity interest traded on or subject to the rules of any 

Designated Contract Market or Swap Execution Facility.

Rule 9.4 Notice of Charges

A. The Compliance Department shall issue a Notice of Charges to a Respondent by 

electronic mail and the U.S. Postal Service to that Respondent’s last known 

address if the Compliance Department determines that there is reasonable cause 

to believe that a Respondent has violated these Rules or Applicable Law. The 

Notice of Charges shall include:

1. the reason the investigation was initiated;

2. the Rule or Rules alleged to have been violated;

3. the Respondent’s response, if any, or a summary of the response;

4. a summary of the investigation conducted;

5. findings of fact and the Compliance Department’s conclusions as to each 

charge, including which of these Rules the Respondent violated, if any;

6. a summary of the Respondent’s, and any relevant Authorized User’s or 

Authorized Representative’s, disciplinary history, if any;

7. the penalty, if any, proposed by the Compliance Department; and

8. the Respondent’s right to a hearing.

B. If the Compliance Department institutes an investigation of any Affiliate of the 

Company, the Chief Compliance Officer shall notify the Commission’s Division of 

Market Oversight, or its successor division, of that fact. At the conclusion of any 

such investigation, the Chief Compliance Officer shall provide the Commission’s 
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Division of Market Oversight, or its successor division, with a copy of the report 

or other documentation specified in Rule 9.2.

Rule 9.5 Contesting and Appeals

A. The Respondent subject to the investigation may contest the Notice of Charges 

by submitting an answer to the Notice of Charges by electronic mail to the 

Compliance Department within 15 days of receipt of the Notice of Charges. The 

Respondent’s answer must contain a detailed response to the findings and 

conclusions as to each charge and any other information the Respondent 

believes is relevant.

B. The Respondent has a right to examine all relevant books, documents, or other 

evidence in the possession or under the control of the Compliance Department, 

except that the Compliance Department may withhold from inspection any 

documents that:

1. are privileged or that constitute attorney work product;

2. were prepared by any Company Representative but which will not be 

offered in evidence in the disciplinary proceedings;

3. may disclose a technique or guideline used in examinations, 

investigations, or enforcement proceedings; or

4. disclose the identity of a confidential source.

C. If the Respondent fails to answer a Notice of Charges, then such failure shall be 

deemed an admission to the findings in the Notice of Charges, and the 

Compliance Department’s findings and conclusions shall become final and the 

Compliance Department shall impose the penalty (if any) that it proposes. The 

Compliance Department shall notify the Respondent of the imposition of any 

penalty and send a copy of the Notice of Charges by electronic mail and the U.S. 

Postal Service to that Respondent’s last known address.

D. If the findings of the Compliance Department are contested, the Compliance 

Department’s report and the Respondent’s response will be submitted to a 

Disciplinary Panel.

E. The Disciplinary Panel will conduct a fair hearing with the Compliance 

Department or other Company Representative and the Respondent within 15 
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calendar days of receipt of the Participant’s answer to the Notice of Charges 

contesting such Notice of Charges. Parties may attend telephonically. The 

formal rules of evidence shall not apply, but the hearing procedures must not 

deny a fair hearing.

1. The hearing shall be recorded, and all information submitted by the 

parties and the recording of the hearing shall be preserved by the 

Compliance Department, along with the Disciplinary Panel’s findings, as 

the record of the proceedings (the “hearing record”) in accordance with 

Rule 2.14.

2. The hearing record shall be transcribed if requested by the Commission 

or Respondent, if the decision is appealed pursuant to these Rules, or if 

the Commission reviews the decision pursuant to Section 8c of the CEA 

or Part 9 of CFTC Regulations.

F. Prior to the Disciplinary Panel’s hearing, the parties may (but need not) submit 

proposed findings, briefs, and exhibits (including affidavits), and during the 

hearing the parties may present witnesses. The Respondent is entitled to crossexamine witnesses. Persons within the Company’s jurisdiction who are called as 

witnesses must participate in the hearing and produce evidence. The 

Compliance Department shall use reasonable efforts to secure the presence of 

all other witnesses whose testimony would be relevant.

G. Within 15 days after the Disciplinary Panel’s hearing, the Disciplinary Panel shall 

issue a decision, which shall be delivered to the Respondent by electronic mail 

and the U.S. Postal Service to the Respondent’s last known address. The 

findings of the Disciplinary Panel shall contain the following information:

1. the Notice of Charges or a summary thereof, and any answer to the 

charges or a summary thereof;

2. a summary of the evidence received;

3. findings and conclusions with respect to each charge, and a complete 

explanation of the evidence and other basis for such findings and 

conclusions;
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4. an indication of each specific rule that the Respondent was found to have 

violated;

5. a declaration of any penalty to be imposed on the Respondent as the 

result of the findings and conclusions, including the basis for such 

penalty;

6. the effective date and duration of that penalty; and

7. a statement that the Respondent has the right to appeal any adverse 

decision by the Disciplinary Panel to the Appeals Committee within 15 

calendar days of receipt of the Disciplinary Panel’s decision.

H. The Disciplinary Panel’s decision shall be final on the date it is signed by the 

members of the Disciplinary Panel, the finality of which shall be effective on the 

day after the last day of the appeal period.

I. Either the Participant or the Compliance Department or the Company 

Representative may appeal the decision of the Disciplinary Panel within 15 

calendar days by filing an appeal by electronic mail with the Appeals Committee 

and forwarding a copy to the other parties to the appeal. The Appeals Committee 

may review a decision on its own initiative. Any penalties shall be stayed 

pending appeal unless the Regulatory Oversight Committee determines that a 

stay pending appeal would likely be detrimental to the Company, other 

Participants, or the public. The Appeals Committee shall review the hearing 

record and any information submitted by the Compliance Department or the 

Company Representative and the Respondent on appeal and issue a decision, 

which shall be final on the date of such issuance. The Respondent shall be 

notified of the Appeals Committee’s decision by electronic mail and by the U.S. 

Postal Service to the Respondent’s last known address. The hearing record, any 

information submitted on appeal, and the Appeals Committee’s decision shall be 

preserved as the record on appeal in accordance with Rule 2.14. The decision 

shall contain the information listed in Rule 9.5 except for 9.5(G)(7), and will also 

contain:

1. a statement that any Person aggrieved by the action may have a right to 

appeal the action pursuant to Part 9 of the Commission’s Regulations, 

within 30 calendar days of service; and
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2. a statement that any Person aggrieved by the action may petition the 

Commission for a stay pursuant to Part 9 of the Commission’s 

Regulations, within ten calendar days of service.

Rule 9.6 Settlements

A. The Company may enter into settlements with any Respondent any time 

following the issuance of a Notice of Charges and prior to any final decision by 

the Appeals Committee. The Respondent may initiate a settlement offer. Any 

settlement offer shall be forwarded to the Disciplinary Panel with a 

recommendation by the Compliance Department that the proposed settlement be 

accepted, rejected, or modified. A settlement offer may be withdrawn at any time 

before it is accepted by the Disciplinary Panel.

B. The Disciplinary Panel may accept or reject a proposed settlement, and the 

decision of the Disciplinary Panel shall be final. In addition, the Disciplinary Panel 

may propose a modification to the proposed settlement for consideration by the 

Respondent and the Compliance Department.

C. Any settlement under this Rule shall be in writing and shall state:

1. the Notice of Charges or a summary thereof;

2. the Respondent’s answer, if any, or a summary thereof;

3. a summary of the investigation conducted;

4. findings and conclusions as to each charge, including each act the 

Respondent was found to have committed or omitted, be committing or 

omitting, or be about to commit or omit, and each of these Rules or 

Applicable Law that such act or practice violated, is violating, or is about 

to violate;

5. any penalty imposed and the penalty’s effective date; and

6. where customer harm is found to exist, full customer restitution where it 

can be reasonably determined.

D. Failed settlement negotiations, or withdrawn settlement offers, will not prejudice a 

Respondent or otherwise affect subsequent procedures in the Rule enforcement 

process.
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Rule 9.7 Notice of Decision

A. The Compliance Department shall provide to the Respondent notice of the 

Disciplinary Action, decision of the Disciplinary Panel or Appeals Committee, or 

settlement in which sanctions are imposed, no later than two Settlement Bank 

Business Days after it becomes final.

B. The Compliance Department shall provide to the NFA for inclusion in its Internetaccessible database of disciplinary matters within two Settlement Bank Business 

Days after a decision becomes final, notice of any decision providing that a 

Respondent is suspended, expelled, disciplined or denied access to the 

Company.

C. The Compliance Department shall make public notice of the Disciplinary Action 

when the Disciplinary Action becomes final by posting on its Website the 

information required by CFTC Regulation 9.11, for a period of five consecutive 

Settlement Bank Business Days in accordance with CFTC Regulation 9.13.

Rule 9.8 Penalties

As a result of a Disciplinary Action or as part of a settlement, the Compliance Department may 

impose one or more of the following penalties, commensurate with the violation committed, in 

consideration with the Respondent’s disciplinary history, and including full customer restitution 

where customer harm is found and where such restitution can be reasonably determined:

A. a letter of warning, censure, or reprimand (although no more than one such letter 

may be issued to the same Person found to have committed the same Rule 

violation within a rolling 12-month period);

B. a fine or penalty for each Rule or Applicable Law violation sufficient to deter 

recidivism plus the monetary value of any benefit received as a result of the 

violation or the cost of damages to the unoffending counterparty;

C. suspension of Participant or Authorized User status or privileges for a specified 

period, including partial suspension of such privileges (for example, suspension 

of Trading Privileges or Clearing Privileges in particular types of Company 

Contracts or of placement of certain types of orders); 
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D. a prohibition against FCM Participants and/or Executing Participants from 

entering Transactions on behalf of a Customer who has violated these Rules, the 

CEA or CFTC Regulation or other Applicable Law; and

E. revocation of Participant or Authorized User status or privileges, including partial 

revocation of such privileges (for example, revocation of Trading Privileges or 

Clearing Privileges in particular types of Company Contracts or of placement of 

certain types of orders).

Rule 9.9 Summary Suspension

A. The Compliance Department may summarily suspend or restrict a Participant’s 

or an Authorized User’s privileges if the Chief Compliance Officer believes 

suspension or restriction is necessary to protect the swaps, commodity futures or 

options markets, the Company, the public, or other Participants.

B. All access denials, suspensions, expulsions and other restrictions imposed upon 

a Participant or Authorized User by the Compliance Department pursuant to 

these Rules shall restrict with equal force and effect, access to, and use of, the 

Company.

C. The Compliance Department may deny or terminate the status of a Participant, 

including an FCM Participant, Executing Participant or Liquidity Provider, and any 

Authorized User if (i) such Person is unable to demonstrate its ability to satisfy 

the applicable criteria set forth in Chapter 3 of these Rules; (ii) such Person is 

unable to demonstrate its compliance with all other applicable Rules; (iii) such 

Person’s inability to demonstrate compliance with such criteria or Rules would, in 

the Company’s sole discretion, bring the Company into disrepute or cause the 

Company to fail to be in compliance with the CEA or CFTC Regulations or other 

laws and regulations; (iv) such Person or any of its Authorized Users, as 

applicable, has committed a violation of the Rules; or (v) other good cause is 

shown as the Company may reasonably determine in its discretion.

D. Upon any suspension or revocation of an FCM Participant, any open Order on 

the Platform for such FCM Participant’s Customer(s) shall be cancelled by the 

Company. 

E. Whenever practicable the Compliance Department shall notify the Participant or 

Authorized User whose privileges are to be summarily suspended by electronic 
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mail before the action is taken. If prior notice is not practicable, the Participant or

Authorized User shall be served with notice by electronic mail at the earliest 

opportunity. This notice shall:

1. state the action taken or to be taken;

2. briefly state the reasons for the action;

3. state the time and date when the action became or becomes effective 

and its duration; and

4. state that any Person aggrieved by the action may petition the 

Commission for a stay of the effective date of the action pending a 

hearing pursuant to Part 9 of CFTC Regulations, within ten calendar days 

of service.

F. The Participant or Authorized User whose privileges are to be summarily 

suspended shall be given an opportunity for appeal under the procedures 

outlined in Rule 9.5I. The decision affirming, modifying, or reversing the summary 

suspension shall be furnished by electronic mail to the suspended Participant or 

Authorized User, and to the Commission no later than one Settlement Bank 

Business Day after it is issued. The decision shall contain:

1. a description of the action taken and the reasons for the action;

2. a brief summary of the evidence received during the appeal process;

3. findings and conclusions;

4. a determination as to whether the summary action that was taken should 

be affirmed, modified, or reversed;

5. a declaration of any action to be taken against the suspended Participant 

or Authorized User as the result of that determination;

6. the effective date and duration of that action;

7. a determination of the appropriate relief based on the findings and 

conclusions;
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8. a statement that any Person aggrieved by the action may have a right to 

appeal the action pursuant to Part 9 of the Commission’s Regulations, 

within 30 calendar days of service; and

9. a statement that any Person aggrieved by the action may petition the 

Commission for a stay pursuant to Part 9 of the Commission’s 

Regulations, within ten calendar days of service.

Rule 9.10 Reporting Violations to the Commission

A. Whenever the Company suspends, expels, fines or otherwise disciplines or 

denies any Person access to the Platform, the Company will make the 

disclosures required by Commission Regulations. Without limiting the generality 

of the foregoing, upon rendering a final decision regarding a disciplinary or 

access denial action, the Company shall provide notice to the Commission by 

filing with NFA’s BASIC.

B. The Company will submit to the Commission a schedule listing all those 

Company Rule violations which constitute disciplinary offenses as defined in 

paragraph (a)(6)(i) of CFTC Regulation 1.63 and, to the extent necessary to 

reflect revisions, will submit an amended schedule within thirty days of the end of 

each calendar year. The Company will maintain the schedule required by this 

section, and post the schedule on the Company’s website.

C. The Company will submit to the Commission within thirty days of the end of each 

calendar year a certified list of any Participants or Persons who have been 

removed from any Disciplinary Panel, the Board or any Company committee 

pursuant to these Rule or Applicable Law during the prior year.

D. Whenever the Company finds by final decision that a Participant or Person has 

violated a Rule or otherwise committed a disciplinary offense and such finding 

makes such person ineligible to serve on the Company’s Disciplinary Panels, 

Company committees, or the Board, the Company shall inform the Commission 

of such finding and the length of the ineligibility in a notice it is required to provide 

to the Commission pursuant to either CEA Section 17(h)(1) or CFTC Regulation 

9.11.
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CHAPTER 10 Arbitration

Rule 10.1 In General

A. If so elected by a Customer, any Claim by the Customer against a Participant 

(including any related counterclaims) shall be settled by arbitration in accordance 

with this Chapter 10.

B. Any Claim by a Participant against another Participant (including any related 

counterclaims) shall be settled by arbitration in accordance with this Chapter 10. 

Arbitration proceedings invoked pursuant to this paragraph shall be independent 

of, and shall not interfere with or delay the resolution of Customers' Claims 

submitted for arbitration pursuant to paragraph A.

C. Notwithstanding paragraph B, the arbitration panel, in its sole and absolute 

discretion, may decline to take jurisdiction of, or, having taken jurisdiction may at 

any time decline to proceed further with, any Claim or any other dispute, 

controversy or counterclaim, other than such as may be asserted under 

paragraph A.

D. A Claim brought pursuant to this Rule 10.1 shall be adjudicated by qualified 

arbitrators appointed in accordance with Rule 10.5 below.

E. Persons to a dispute resolved in accordance with this Chapter 10 shall have the 

right to retain and be represented by legal counsel or any other representation of 

its choosing, except any Director or a member of the Disciplinary Panel or person 

substantially related to the underlying investigations, such as material witnesses 

or respondents during such proceedings. Persons to a dispute resolved in 

accordance with this Chapter 10 shall be responsible for their own costs, 

expenses and attorneys’ fees incurred in connection with the dispute. 

Notwithstanding the foregoing, the Person that prevails shall be entitled to 

recover from the other party all costs, expenses and reasonable attorneys’ fees 

incurred in any arbitration arising out of or relating to this Chapter 10, and in any 

legal action or administrative proceeding to enforce any arbitration award or 

relief.

F. Any award or relief granted by the arbitrators hereunder shall be final and binding 

on the parties hereto and may be enforced by any court of competent jurisdiction.
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G. Notwithstanding the foregoing, this Chapter 10 does not apply to disputes 

between Participants where:

1. such Persons are required by the rules of a non-Company SelfRegulatory Organization to submit to the dispute resolution procedures of 

that Self-Regulatory Organization; or

2. such Persons have, by valid and binding agreement, committed to 

arbitrate or litigate in a forum other than the Company.

H. For purposes of this Chapter 10, the term “Claim” means any dispute which 

arises out of any Transaction, which dispute does not require for adjudication the 

presence of essential witnesses or third parties over whom the Company does 

not have jurisdiction or who are otherwise not available. The term “Claim” does

not include disputes arising from underlying commodity transactions which are 

not a part of, or directly connected with, any Transaction.

Rule 10.2 Fair and Equitable Arbitration Procedures

A. A Person desiring to initiate an arbitration as provided in Rule 10.1 shall file a 

notice of arbitration (a “Notice”) within two years from the time the Claim arose. 

The Notice must set forth the name and address of the party or parties against 

whom the Claim is being asserted, the nature and substance of the Claim, the 

relief requested and the factual and legal bases alleged to underlie such relief.

B. The Notice shall be accompanied by a non-refundable check payable to the 

Company in payment of the arbitration fee. The amount of the fee shall be (i) 

$500 for a Claim requesting relief totaling less than $25,000 in the aggregate or 

(ii) $1,000 for a Claim requesting relief totaling $25,000 or more in the aggregate.

C. Upon receipt, the Company shall promptly convene an arbitration panel in 

accordance with Rule 10.5. The Company shall deliver a copy of the Notice to 

each other party and to the arbitration panel.

D. Within 20 days following the delivery of the Notice, each respondent shall file a 

written response (a “Response”) with the Company, with a copy to the claimant, 

setting forth its or his position and any counterclaims, as applicable. If the 

Response sets forth one or more counterclaims, the claimant shall file within 20 
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days a written reply to such counterclaims with the Company, with a copy to the 

claimant.

E. Once each party has had an opportunity to respond to the Claim and all

counterclaims, the arbitration panel shall promptly schedule a hearing. 

Notwithstanding, Claims requesting relief totaling less than $5,000 in the 

aggregate may, in the interests of efficiency and economy, be resolved without 

hearing.

F. The chairman of the arbitration panel shall preside over the hearing and shall 

make such determinations on the relevancy and procedure as will promote a fair 

and expeditious adjudication.

G. The arbitration panel shall consider all relevant, probative testimony and 

documents submitted by the parties. The arbitration panel shall not be bound by 

the formal rules of evidence.

H. The final decision of the panel shall be by majority vote of the arbitrators, as 

applicable.

I. Within 60 days after the termination of the hearing, the arbitration panel shall 

render its final decision in writing and deliver a copy thereof either in person or by 

first-class mail to each of the parties. The arbitration panel may grant any remedy 

or relief which it deems just and equitable, including, without limitation, the 

awarding of interest and the arbitration fee.

J. The final decision of the arbitration panel shall not be subject to appeal within the 

Company.

K. No verbatim record shall be made of the proceedings, unless requested by a 

party who shall bear the cost of such record.

Rule 10.3 Withdrawal of Arbitration Claim

Any Notice may be withdrawn at any time before the Response is filed in accordance with this 

Chapter 10. If a Response has been filed, any withdrawal shall require consent of the party 

against which the Claim is asserted.

Rule 10.4 Penalties

A. Any failure on the part of a Person to arbitrate a dispute subject to this Chapter 

10, or the commencement by any such Person of a suit in any court prior to 
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arbitrating a case that is required to be arbitrated pursuant to this Chapter 10, 

violates these Rules and shall subject such Person to disciplinary proceedings 

pursuant to Chapter 9. Any Person that does not arbitrate a dispute pursuant to 

Rule 10.1G shall not be deemed to have violated these Rules.

B. The Chief Compliance Officer, in consultation with the Regulatory Oversight 

Committee, may summarily suspend, pursuant to Rule 9.9, a Participant that fails 

to timely satisfy an arbitration award rendered in any arbitration pursuant to this 

Chapter 10.

Rule 10.5 Arbitration Panel

A. On an as-needed basis, the Company shall convene an arbitration panel to 

adjudicate an arbitration claim under this Chapter 10. For a Claim requesting 

relief totaling less than $25,000 in the aggregate, the arbitration panel shall 

consist of one individual. For a Claim requesting relief totaling $25,000 or more 

in the aggregate, the arbitration panel shall consist of three individuals.

B. Members of the arbitration panel shall be individuals that do not have a direct 

interest (financial, personal or otherwise) in the matter.

C. Any member of the arbitration panel may disqualify himself for any reason he 

deems appropriate.

D. Each member of the arbitration panel shall conduct himself in a manner 

consistent with the American Bar Association/American Arbitration Association's 

"Code of Ethics for Arbitrators in Commercial Disputes," which the Company 

hereby adopts as its own code of ethics for arbitrators.

E. Each member of the arbitration panel must have no less than five years’ 

experience in the financial services industry, and no less than one arbitrator must 

have no less than five years’ experience in the commodity futures or swap 

industry.

F. In the event that members of the arbitration panel do not satisfy the requirements 

of this Rule 10.5, then the Regulatory Oversight Committee may substitute a new 

member for the arbitration panel or act as the arbitration panel, to the extent that 

the substituted member or the Regulatory Oversight Committee, as the case may 

be, does not have a direct interest (financial, personal or otherwise) in the matter.
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CHAPTER 11 Miscellaneous

Rule 11.1 Adjustments Necessitated by Material Changes in the Underlying

In the event that, prior to or during the term of a Series, changes beyond the control of the 

Company occur in the availability of the Underlying or in the way the Underlying is calculated, or 

a value for the Underlying is unavailable or undefined in light of intervening events, the 

Company may delay listing Series or adjust the terms of outstanding Series as it deems 

appropriate in its discretion to achieve fairness to holders of Company Contracts of the affected 

Series.

Rule 11.2 Prohibition on Trading by Company Personnel; Misuse of Material, Non-Public 

Information

A. Terms used in this Rule 11.2 and not otherwise defined in these Rules shall have 

the meanings set forth in CFTC Regulations 1.3 and 1.59. 

B. Company Personnel may not trade, directly or indirectly any Company Contract

or any related financial instrument.

C. Company Representatives may not trade, directly or indirectly any Company 

Contract or financial instrument where such Company Representative has 

access to material, non-public information concerning such Company Contract or 

financial instrument.

D. The Chief Compliance Officer (or, in the case of the Chief Compliance Officer, 

the Board) may grant exemptions in accordance with the provisions of this Rule 

11.2 to Company Personnel on a case-by-case basis under circumstances where 

the Company Personnel is participating in pooled investment vehicles and the 

Company Personnel has no direct or indirect control over Transactions effected 

by or for the account of the pool.

E. For the avoidance of doubt, participation by Company Personnel in a retirement 

plan sponsored by the Company shall not be deemed to constitute trading 

directly or indirectly in a Company Contract or financial instrument, 

notwithstanding such plan’s trading of Company Contracts or financial 

instruments.

F. Any exempt Company Personnel that has received an exemption under Rule 

11.2D must:
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1. furnish to the Company (or, in the case of the Chief Compliance Officer, 

to the Board) account statements and other documents relevant to the 

trading activities that are so exempted; and

2. inform the Chief Compliance Officer (or, in the case of the Chief 

Compliance Officer, the Board) within one Settlement Bank Business Day 

of any material change of information that may affect such Company 

Personnel’s qualification for such exemption.

G. Company Representatives are prohibited from disclosing material, non-public 

information obtained as a result of their employment, agency relationship or 

engagement with the Company for any purpose inconsistent with such Person’s 

duties or responsibilities as an employee, agent, independent contractor, Director 

or Committee member.

Rule 11.3 Property Rights

A. Each Participant on behalf of itself and each of its Affiliates, Authorized Users 

and other Persons affiliated with any of the foregoing, hereby acknowledges and 

agrees that LedgerX LLC owns and shall retain all right, title and interest in and 

to the Company, all components thereof, including, without limitation, all related 

applications, all application programming interfaces, user interface designs, 

software and source code and any and all intellectual property rights therein, 

including, without limitation, all registered or unregistered, as applicable, (a) 

copyright, (b) trademark, (c) service mark, (d) trade secret, (e) trade name, (f) 

data or database rights, (g) design rights, (h) moral rights, (i) inventions, whether 

or not capable of protection by patent or registration, (j) rights in commercial 

information or technical information, including know-how, research and 

development data and manufacturing methods, (k) patent, and (l) other 

intellectual property and ownership rights, including applications for the grant of 

any of the same, in or to LedgerX LLC and all other related proprietary rights of 

LedgerX LLC and/or any of its Affiliates (together, with any and all 

enhancements, corrections, bug fixes, updates and other modifications to any of 

the foregoing and any and all data or information of any kind, other than 

Proprietary Data and Personal Information, transmitted by means of any of the 

foregoing, including, without limitation, market data, the “Proprietary 

Information”). Each Participant on behalf of itself and each of its Affiliates, 
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Authorized Users and other Persons affiliated with any of the foregoing, further 

acknowledges and agrees that the Proprietary Information is the exclusive, 

valuable and confidential property of LedgerX LLC. Each Participant 

acknowledges and agrees that it shall not and shall not permit its Affiliates, 

Authorized Users and other Persons affiliated with any of the foregoing to 

reverse engineer, copy, bug fix, correct, update, transfer, reproduce, republish, 

broadcast, create derivative works based on or otherwise modify, in any manner, 

all or any part of the Company or the Proprietary Information. Each Participant 

further agrees to and to cause each of its Affiliates, Authorized Users and other 

Persons affiliated with any of the foregoing to keep the Proprietary Information 

confidential and not to transfer, rent, lease, copy, loan, sell or distribute, directly 

or indirectly, all or any portion of the Company or any Proprietary Information.

B. Subject to the provisions of this Rule 11.3, each Participant on behalf of itself and 

each of its Affiliates, Authorized Users, and other Persons affiliated with any of 

the foregoing hereby acknowledges and agrees that LedgerX LLC is the owner of 

all rights, title and interest in and to all intellectual property and other proprietary 

rights (including all copyright, patent, trademark or trade secret rights) in market 

data, and all derivative works based thereon, and further agree not to distribute, 

create derivative works based on, or otherwise use or commercially exploit 

market data and any such derivative works, provided that Participants, Affiliates, 

Authorized Users, and such other Persons may use market data for their own 

internal business purposes. Without limiting the generality of the foregoing, 

Participants, Affiliates, Authorized Users, and other Persons affiliated with any of 

the foregoing may not distribute, sell or retransmit market data exchange to any 

third party.

C. Notwithstanding any other provision of this Rule 11.3, each Participant and 

Authorized User retains such rights as it may enjoy under applicable law with 

respect to market data solely in the form such market data was submitted to the 

Company by such Participant or Authorized User.

D. Transaction Data shall not be disclosed publicly other than on an aggregated or 

anonymous basis, or in a manner that does not directly or indirectly identify any 

market participant who has submitted such data.
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E. LedgerX LLC shall not condition access to the Company upon a Participant’s 

consent to the use of Proprietary Data and Personal Information for business or 

marketing purposes. Proprietary Data and Personal Information may not be 

used by the Company for business and marketing purposes unless the market 

participant has clearly consented to the use of Proprietary Data and Personal 

Information in such manner. LedgerX LLC, where necessary, for regulatory 

purposes, may share Proprietary Data and Personal Information with one or 

more Designated Contract Markets or Swap Execution Facilities. Nothing in this 

Rule shall preclude LedgerX LLC from disclosing Proprietary Data and Personal 

Information: (1) as required by Applicable Law or legal process; (2) as the 

Company may deem necessary or appropriate in connection with any litigation 

affecting the Company; (3) to any Company Representative authorized to receive 

such information within the scope of his or her duties; (4) to a third party 

performing regulatory or operational services for the Company, provided that 

such party has executed a confidentiality and non-disclosure agreement in a form 

approved by the Company; (5) to a duly authorized representative of the CFTC 

lawfully requesting Proprietary Data and Personal Information; (6) in a manner in 

which a market participant consents to such disclosure; (7) pursuant to the terms 

of an information-sharing agreement; or (8) as permitted by CFTC Regulations.

Rule 11.4 Signatures

Rather than rely on an original signature, the Company may elect to rely on a signature that is 

transmitted, recorded or stored by any electronic, optical, or similar means (including but not 

limited to telecopy, imaging, photocopying, electronic mail, electronic data interchange, 

telegram, or telex) as if it were (and the signature shall be considered and have the same effect 

as) a valid and binding original.

Rule 11.5 Governing Law

The Rules, and the rights and Obligations of the Company and Participants under the Rules, 

shall be governed by, and construed in accordance with, the laws of the State of New York 

without regard to any provisions of New York law that would apply the substantive law of a 

different jurisdiction. The State of New York is the “securities intermediary’s jurisdiction” within 

the meaning of Section 8-110(e) of the UCC for all purposes of the UCC. 
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Rule 11.6 Legal Proceedings

A. Any action, suit or proceeding against the Company, its Officers, Directors, 

limited liability company members, employees, agents, or any member of any 

committee must be brought within one 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 the City of New York, New York. Each Participant 

and Authorized User expressly consents 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.

B. In the event that a Participant or Authorized User or an Affiliate of such Person 

who fails to prevail in a lawsuit or other legal proceeding instituted by such 

Participant or such Affiliate against (i) the Company or (ii) any Affiliate of the 

Company or any of its respective officers, directors, equity holders, employees, 

agents, or any member of any committee, and related to the business of the 

Company, such Participant or Authorized User shall pay to the Company all 

reasonable costs and expenses, including attorneys’ fees, incurred by the 

Company in the defense of such proceeding. This Rule 11.7 shall not apply to 

Company disciplinary actions, appeals thereof, or an instance in which the Board 

has granted a waiver of the provisions hereof.

C. The Company will provide to the Commission copies of documents pertaining to 

Company-related pending legal proceedings as required under CFTC Regulation 

1.60.

Rule 11.7 LIMITATION OF LIABILITY; NO WARRANTIES

A. EXCEPT AS OTHERWISE SET FORTH IN THE RULES, OR DUE TO 

EXCHANGE OBLIGATIONS ARISING FROM THE ACT OR CFTC 

REGULATIONS, INCLUDING PARTS 37, 38 AND 39 OF THE CFTC 

REGULATIONS, OR OTHERWISE UNDER APPLICABLE LAW, NEITHER THE 

EXCHANGE NOR ANY OF ITS COMPANY REPRESENTATIVES, AFFILIATES 

OR AFFILIATES’ REPRESENTATIVES SHALL BE LIABLE TO ANY PERSON, 

OR ANY PARTNER, DIRECTOR, OFFICER, AGENT, EMPLOYEE, 

AUTHORIZED USER OR AUTHORIZED REPRESENTATIVE THEREOF, FOR 

ANY LOSS, DAMAGE, INJURY, DELAY, COST, EXPENSE, OR OTHER 
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LIABILITY OR CLAIM, WHETHER IN CONTRACT, TORT OR RESTITUTION, 

OR UNDER ANY OTHER CAUSE OF ACTION, SUFFERED BY OR MADE 

AGAINST THEM AS A RESULT OF THEIR USE OF SOME OR ALL OF THE 

PLATFORM AND BY MAKING USE OF THE PLATFORM, SUCH PERSONS 

EXPRESSLY AGREE TO ACCEPT ALL LIABILITY ARISING FROM THEIR USE 

OF SAME.

B. EXCEPT AS OTHERWISE SET FORTH IN THESE RULES OR DUE TO 

EXCHANGE OBLIGATIONS ARISING FROM THE ACT OR CFTC 

REGULATIONS, INCLUDING PARTS 37, 38 AND 39 OF THE CFTC 

REGULATIONS, OR OTHERWISE UNDER APPLICABLE LAW, NEITHER THE 

EXCHANGE NOR ANY OF ITS COMPANY REPRESENTATIVES, AFFILIATES 

OR AFFILIATES’ REPRESENTATIVES SHALL BE LIABLE TO ANY PERSON, 

OR ANY PARTNER, DIRECTOR, OFFICER, AGENT, EMPLOYEE, 

AUTHORIZED USER OR AUTHORIZED REPRESENTATIVE THEREOF, FOR 

ANY LOSS, DAMAGE, INJURY, DELAY, COST, EXPENSE, OR OTHER 

LIABILITY OR CLAIM, WHETHER IN CONTRACT, TORT OR RESTITUTION, 

OR UNDER ANY OTHER CAUSE OF ACTION, SUFFERED BY OR MADE 

AGAINST THEM, ARISING FROM (A) ANY FAILURE OR NON-AVAILABILITY 

OF THE PLATFORM; (B) ANY ACT OR OMISSION ON THE PART OF THE 

EXCHANGE, COMPANY REPRESENTATIVES, AFFILIATES OR AFFILIATES’ 

REPRESENTATIVES INCLUDING WITHOUT LIMITATION A DECISION OF 

THE EXCHANGE TO SUSPEND, HALT, OR TERMINATE TRADING OR TO 

VOID, NULLIFY OR CANCEL ORDERS OR TRADES IN WHOLE OR IN PART; 

(C) ANY ERRORS OR INACCURACIES IN INFORMATION PROVIDED BY THE 

COMPANY, AFFILIATES OR THE PLATFORM; (D) UNAUTHORIZED ACCESS 

TO OR UNAUTHORIZED USE OF THE PLATFORM BY ANY PERSON; (E) 

ANY FORCE MAJEURE EVENT, INCLUDING, BUT NOT LIMITED TO, THE 

UNAVAILABILITY OF THE BLOCKCHAIN AS REASONABLY DETERMINED BY 

THE COMPANY, AFFECTING THE EXCHANGE OR A COMPANY CONTRACT; 

OR (F) ANY LOSS TO ANY PARTICIPANT RESULTING FROM A 

PARTICIPANT’S OWN SECURITY OR THE INTEGRITY OF A PARTICIPANT’S 

TECHNOLOGY OR TECHNOLOGY SYSTEMS. THIS LIMITATION OF 

LIABILITY WILL APPLY REGARDLESS OF WHETHER OR NOT THE 

EXCHANGE, ANY COMPANY REPRESENTATIVES, ANY EXCHANGE 
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AFFILIATES OR AFFILIATES’ REPRESENTATIVES (OR ANY DESIGNEE 

THEREOF) WAS ADVISED OF OR OTHERWISE MIGHT HAVE ANTICIPATED 

THE POSSIBILITY OF SUCH DAMAGES.

C. A PERSON’S USE OF THE PLATFORM, EXCHANGE PROPERTY AND ANY 

OTHER INFORMATION AND MATERIALS PROVIDED BY THE COMPANY IS 

AT THE PERSON’S OWN RISK, AND THE PLATFORM, THE EXCHANGE 

PROPERTY AND ANY OTHER INFORMATION AND MATERIALS PROVIDED 

BY THE COMPANY HEREUNDER ARE PROVIDED ON AN “AS IS” AND “AS 

AVAILABLE” BASIS, WITHOUT WARRANTIES OR REPRESENTATIONS OF 

ANY KIND, EXPRESS OR IMPLIED, BY STATUTE, COMMON LAW OR 

OTHERWISE, INCLUDING ALL IMPLIED WARRANTIES OF 

MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT, AND ANY WARRANTIES ARISING FROM A COURSE OF 

DEALING, USAGE OR TRADE PRACTICE. THE EXCHANGE DOES NOT 

GUARANTEE THAT (A) THE EXCHANGE PROPERTY OR THE PLATFORM 

WILL OPERATE IN AN ERROR-FREE, SECURE OR UNINTERRUPTED 

MANNER; (B) ANY INFORMATION OR MATERIALS PROVIDED BY THE 

COMPANY OR ACCESSIBLE THROUGH THE EXCHANGE PROPERTY OR 

THE PLATFORM WILL BE ACCURATE, COMPLETE, RELIABLE, OR TIMELY; 

OR (C) THE EXCHANGE PROPERTY OR ANY ASPECTS OF THE PLATFORM 

WILL BE FREE FROM VIRUSES OR OTHER HARMFUL COMPONENTS. THE 

EXCHANGE SHALL HAVE NO LIABILITY FOR THE CREDITWORTHINESS OF 

ANY PERSON OR FOR THE ACTS OR OMISSIONS OF ANY PERSON 

UTILIZING THE PLATFORM OR ANY ASPECT OF THE EXCHANGE OR 

PLATFORM. A PERSON ACCESSING THE EXCHANGE IS SOLELY 

RESPONSIBLE FOR THE SECURITY AND INTEGRITY OF THE PERSON’S 

TECHNOLOGY. A PERSON’S ACCESS TO THE COMPANY MAY BE 

INTERNET-BASED AND THE EXCHANGE HAS NO CONTROL OVER THE 

INTERNET OR A PERSON’S CONNECTIONS THERETO. ANY PERSON 

ACCESSING THE EXCHANGE ACKNOWLEDGES THAT THE INTERNET, 

COMPUTER NETWORKS, AND COMMUNICATIONS LINKS AND DEVICES 

NECESSARY TO ENABLE A PERSON TO ACCESS AND USE THE 

PLATFORM ARE INHERENTLY INSECURE AND VULNERABLE TO 

ATTEMPTS AT UNAUTHORIZED ENTRY AND THAT NO FORM OF 
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PROTECTION CAN ENSURE THAT A PARTICIPANT’S DATA, HARDWARE, 

OR SOFTWARE OR THE PLATFORM OR OTHER EXCHANGE PROPERTY 

WILL BE FULLY SECURE. FURTHERMORE, THE EXCHANGE SHALL HAVE 

NO OBLIGATION TO MONITOR OR VERIFY ANY INFORMATION DISPLAYED 

THROUGH THE PLATFORM.

D. A PARTICIPANT THAT DEPOSITS COLLATERAL FOR ITS BENEFIT WITH 

THE COMPANY PURSUANT TO THESE RULES SHALL HOLD THE 

COMPANY HARMLESS FROM ALL LIABILITY, LOSSES AND DAMAGES 

WHICH MAY RESULT FROM OR ARISE WITH RESPECT TO THE CARE AND 

SALE OF SUCH COLLATERAL PROVIDED THAT THE COMPANY HAS 

ACTED REASONABLY AND IN ACCORDANCE WITH APPLICABLE LAW 

UNDER THE CIRCUMSTANCES. FURTHERMORE, THE COMPANY HAS NO 

RESPONSIBILITY FOR ANY ACT OR OMISSION OF ANY THIRD PARTY 

SERVICE PROVIDER THAT THE COMPANY HAS CHOSEN WITH 

REASONABLE CARE. THE COMPANY HAS NO RESPONSIBILITY OR 

LIABILITY FOR ANY LOSS OF COLLATERAL THAT RESULTS, DIRECTLY OR 

INDIRECTLY, FROM A BREACH TO A PARTICIPANT’S SECURITY OR 

ELECTRONIC SYSTEMS, INCLUDING BUT NOT LIMITED TO CYBER 

ATTACKS, OR FROM A PARTICIPANT’S NEGLIGENCE WITH RESPECT TO A 

WALLET, ADDRESS OR THE RECEIPT OF COLLATERAL UPON THE 

REQUEST OF A WITHDRAWAL, OR FROM A PARTICIPANT’S DEPOSIT, 

MISTAKE, ERROR, NEGLIGENCE, OR MISCONDUCT WITH RESPECT TO 

ANY COLLATERAL TRANSFERS A PARTICIPANT MAKES OR ATTEMPTS TO 

MAKE TO THE COMPANY. 

E. NO PARTICIPANT, AUTHORIZED USER, AUTHORIZED REPRESENTATIVE 

OR ANY OTHER PERSON SHALL BE ENTITLED TO COMMENCE OR CARRY 

ON ANY PROCEEDING AGAINST THE EXCHANGE, ANY OF ITS COMPANY 

REPRESENTATIVES, AFFILIATES OR AFFILIATES’ REPRESENTATIVES, IN 

RESPECT OF ANY ACT, OMISSION, PENALTY OR REMEDY IMPOSED 

PURSUANT TO THE RULES OF THE EXCHANGE. THIS SECTION SHALL 

NOT RESTRICT THE RIGHT OF SUCH PERSONS TO APPLY FOR A REVIEW 

OF A DIRECTION, ORDER OR DECISION OF THE EXCHANGE BY A 

COMPETENT REGULATORY AUTHORITY.
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F. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, IN NO 

EVENT SHALL THE EXCHANGE OR ANY OF ITS COMPANY 

REPRESENTATIVES, AFFILIATES OR AFFILIATES’ REPRESENTATIVES BE 

LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR 

SPECIAL DAMAGES (WHETHER OR NOT THE EXCHANGE OR ANY SUCH 

PERSON HAD BEEN INFORMED OR NOTIFIED OR WAS AWARE OF THE 

POSSIBILITY OF SUCH DAMAGES).

G. ANY CLAIM FOR REDRESS OR DAMAGES HEREUNDER SHALL BE FILED 

IN A COURT OF COMPETENT JURISDICTION WITHIN ONE YEAR OF THE 

DATE ON WHICH SUCH CLAIM ALLEGEDLY AROSE. FAILURE TO 

INSTITUTE LITIGATION WITHIN SUCH TIME PERIOD SHALL BE DEEMED 

TO BE A WAIVER OF SUCH CLAIM AND THE CLAIM SHALL BE OF NO 

FURTHER FORCE OR EFFECT. THE ALLOCATIONS OF LIABILITY IN THIS 

RULE 11.7 REPRESENT THE AGREED AND BARGAINED FOR 

UNDERSTANDING OF THE PARTIES, AND EACH PARTY ACKNOWLEDGES 

THAT THE OTHER PARTY’S RIGHTS AND OBLIGATIONS HEREUNDER 

REFLECT SUCH ALLOCATIONS. THE PARTIES AGREE THAT THEY WILL 

NOT ALLEGE THAT THIS REMEDY FAILS ITS ESSENTIAL PURPOSE.

H. THE LIMITATIONS ON LIABILITY IN THIS RULE 11.7 SHALL NOT PROTECT 

ANY PARTY FOR WHICH THERE HAS BEEN A FINAL DETERMINATION 

(INCLUDING EXHAUSTION OF ANY APPEALS) BY A COURT OR 

ARBITRATOR TO HAVE ENGAGED IN WILLFUL OR WANTON MISCONDUCT 

OR FRAUD. ADDITIONALLY, THE FOREGOING LIMITATIONS ON LIABILITY 

OF THIS RULE SHALL BE SUBJECT TO THE CEA AND THE REGULATIONS 

PROMULGATED THEREUNDER, EACH AS IN EFFECT FROM TIME TO TIME.

Rule 11.8 Error Trade Policy

The Company shall have the discretion to delete Orders, adjust prices, cancel trades or 

suspend the market in the interest of maintaining a fair and orderly market, in accordance with 

this Rule 11.8.

A. In normal circumstances, the Company will only adjust prices or cancel trades on 

the basis that the price traded is not representative of market value. The 

Company will make the final decision on whether a trade price is adjusted, or a 
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trade is cancelled or is allowed to stand. In determining whether a trade has 

taken place at an unrepresentative price, certain factors will be taken into 

account. They may include, but not be limited to:

1. price movements in other expiration months of the same Company 

Contract;

2. current market conditions, including levels of activity and volatility;

3. time period between different quotes and between quoted and traded 

prices;

4. information regarding price movement in related contracts, the release of 

economic data or other relevant news just before or during electronic 

Trading Hours, as applicable;

5. manifest error;

6. whether there is any indication that the trade in question triggered stops 

or resulted in the execution of spread trades;

7. whether another market user or client relied on the price; 

8. whether a transaction cancellation or price adjustment will adversely 

impact market integrity, facilitate market manipulation or other illegitimate 

activity, or otherwise violate applicable rules or regulations; 

9. whether any Participants to the trade in question request that any action 

be taken; and

10. any other factor which the Company, in its sole discretion, may deem 

relevant.

B. The Company, when applicable, may establish price and/or volume reasonability 

levels (“Reasonability Levels”) within the system for each Company Contract. 

The Company may also establish alert levels (“Alert Levels”) as applicable, 

beyond which the Company will send an alert (“Alert”) to the relevant 

Participants via the Participant Portal or API. These Reasonability Levels and 

Alert Levels necessarily are flexible to take account of prevailing market 

conditions. The Company incorporates Reasonability Levels in determining Alert 

Levels for issuing Alerts for items such as “fat finger” type errors. Reasonability 
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Levels and Alert Levels are set by the Company and may be varied from time to 

time according to market conditions. The Company will notify Participants of any 

modifications to the Reasonability Levels. Upon receipt of any Alert, Participant 

can choose whether or not to proceed with entry and execution of the applicable 

Order. If the applicable Participants approve the volume and/or price following 

receipt of the Alert, the Company will attempt to execute the Order and the trade 

will be finalized.

C. Any trade executed at a price outside of the No Cancellation Range (as defined 

below), if identified to the Company within the designated time period, may be 

considered an alleged error trade.

D. The Reasonability Levels applicable to each Company Contract will be listed on 

the Company’s website. 

E. Any trade which is alleged to be an error trade and subsequently is cancelled 

due to the determination that it has been executed at an unrepresentative price 

may be investigated by the Company.

F. There is a defined “no cancellation range” (“No Cancellation Range”) for each 

Company Contract. Trades executed within this price range will not be cancelled 

or price adjusted. A component of market integrity is the assurance that once 

executed, except in exceptional circumstances, a trade will stand and not be 

subject to cancellation or price adjustment. Any trades that do not have an 

adverse effect on the market should not be able to be cancelled or price 

adjusted, even if executed in error.

G. In applying the No Cancellation Range, the Company shall determine the fair 

market price for the Company Contract. The Company may consider any 

relevant information including, but not limited to, the bid, the ask, the bid size, the 

ask size, and the spot price.

H. The No Cancellation Range will be determined per Company Contract and will be 

available on the Company’s website.

I. If a trade takes place within the No Cancellation Range and is alleged to be an 

error, the trade will not be cancelled.
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J. Trades executed outside of the No Cancellation Range may be reported to or 

considered by the Company as an error.

K. Market users have ten (10) minutes from the time of the original trade in which to 

allege a trade has been executed in error.

L. The Company will notify the market immediately through its website that an error 

has been alleged, giving details of the trade, including Company Contract month, 

price and volume. The Company also will notify the Participants involved via email. The Company will then notify all Participants through a Participant Notice

whether the price is adjusted or the trade is cancelled or stands. The Company 

will then contact those parties involved in the trade to explain the Company’s 

decision.

M. In order to assist the Company in determining whether the trade alleged to be an 

error has taken place at an unrepresentative price, the Company may 

contact/consult Participants and other market Participants. The Company will not 

disclose to the parties to the alleged error trade the identity of their counterparty. 

In addition, the identities of the counterparties to the alleged error trade will not 

be disclosed to any Participant or other Person the Company may consult with. 

The Company will take into account a variety of market factors in its 

determination. Each error situation will be assessed on its individual 

circumstances.

N. If the Company determines that a trade price is outside the No Cancellation 

Range for a Company Contract, the trade price may be adjusted to a price that 

equals the fair value market price for that Company Contract at the time the trade 

under review occurred. The Company may consult and obtain the consent of the 

parties to the price adjustment or may determine a price adjustment is 

appropriate regardless of any party’s consent or lack thereof. The Company, at 

its discretion, may allow the trades to stand or cancel the trades rather than 

adjusting the price. The decision of the Company is final.

O. If the Company determines that the price differential of a spread trade is not 

representative of the market for that spread trade at the time of execution, then 

the differential of such spread trade may be adjusted to the price differential for 

that spread trade at the time the trade under review occurred. The Company, at 
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its discretion, may allow the trades to stand or cancel the trades rather than 

adjusting the price differential. The decision of the Company is final.

P. The Company will make every attempt to ensure that a decision on whether an 

alleged error trade will have its price adjusted, will stand or be cancelled will be 

communicated to the market as soon as reasonably possible after the time of the 

original trade.

Q. The Company has the unilateral right to cancel any Order, adjust the price of a 

trade and cancel any trade which it considers to be at an unrepresentative price, 

even where there has been no referral or request from a Participant or other 

Person, in the interest of maintaining a fair and orderly market. The Company

aims to exercise this right within thirty (30) minutes after the trade has been 

identified. The Company also reserves its right to cancel any Order, adjust the 

price of a trade and cancel any trade due to any market disrupting event caused 

by (i) an error in Orders submitted to the Platform or (ii) a technology failure or 

system malfunction, even where there has been no referral or request from a 

Participant or other Person, in the interest of maintaining a fair and orderly 

market and aims to exercise this right within thirty (30) minutes after the system 

or technology failure has been identified. The Company reserves its right to 

consider each alleged error trade situation on its individual merits and may 

therefore amend these policies in light of the circumstances of each individual 

case. The decision of the Company is final.

R. Cancelled trades and prices that have been adjusted will be noted as such in the 

Company’s official record of time and sales. A special marker will indicate trades 

that have been priced adjusted in the official record of time and sales at the 

adjusted trade price.

S. NEITHER THE EXCHANGE NOR ANY OF ITS REPRESENTATIVES, ITS 

AFFILIATES OR ITS AFFILIATES’ REPRESENTATIVES SHALL BE LIABLE TO 

ANY PERSON, OR ANY PARTNER, DIRECTOR, OFFICER, AGENT, 

EMPLOYEE, AUTHORIZED USER OR AUTHORIZED REPRESENTATIVE 

THEREOF, FOR ANY LOSS, DAMAGE, INJURY, DELAY, COST, EXPENSE, 

OR OTHER LIABILITY OR CLAIM, WHETHER IN CONTRACT, TORT OR 

RESTITUTION, OR UNDER ANY OTHER CAUSE OF ACTION, SUFFERED BY 

OR MADE AGAINST THEM ARISING FROM ANY ACT OR OMISSION ON THE 
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PART OF THE EXCHANGE, ITS REPRESENTATIVES, ITS AFFILIATES OR 

ITS AFFILIATES’ REPRESENTATIVES RELATING TO ANY DECISION BY THE 

COMPANY TO, OR TO NOT, VOID, NULLIFY OR CANCEL ORDERS OR 

TRADES OR ADJUST THE PRICES OF ANY TRADES IN WHOLE OR IN 

PART. THIS LIMITATION OF LIABILITY WILL APPLY REGARDLESS OF 

WHETHER OR NOT THE COMPANY, ITS REPRESENTATIVES, ITS 

AFFILIATES OR ITS AFFILIATES’ REPRESENTATIVES (OR ANY DESIGNEE 

THEREOF) WERE ADVISED OF OR OTHERWISE MIGHT HAVE 

ANTICIPATED THE POSSIBILITY OF SUCH DAMAGES.

Rule 11.9 Company Contacts

All requests to cancel Orders or trades must be directed to the Company via the Participant 

Portal or the Company telephone number posted on the website. Any such request for the 

removal of Orders will be acted upon on a best-efforts basis by the relevant Company 

Personnel.

Rule 11.10 Reasonability Levels

The Error Trade Policy includes Reasonability Levels and No Cancellation Ranges for all 

Company Contracts on the Platform.

A. Benchmark:

1. If there exists a last price in the applicable Company Contract in the last 

48 hours, then such price will be used as the benchmark; or

2. If there exists no last price but there is a bid AND an ask in the last 48 

hours, then the Company will use the midpoint of the most recent bid & 

most recent ask as the benchmark.

B. Reasonability Levels:

1. If Benchmark 1 or 2 is applicable, then the Reasonability Level = 50% of 

the Benchmark; or

a If neither Benchmark 1 nor 2 apply, then there will be no alerts 

generated for this Company Contract and error trades are subject 

to the No Cancellation Range and Company discretion with 

respect to adjusting or cancelling trades.
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Rule 11.11 No Cancellation Ranges

A. Benchmark:

1. If there exists a last price in the applicable Company Contract in the last 

48 hours, then such price will be used as the benchmark; or

2. If there exists no last price but there is a bid AND an ask in the last 48 

hours, then the Company will use the midpoint of the most recent bid and

most recent ask as the benchmark.

B. No Cancellation Range:

1. If Benchmark 1 or 2 is applicable, then the No Cancellation Range = 20% 

of the Benchmark; or

2. If neither Benchmark 1 nor 2 apply, then there is not a No Cancellation 

Range for that Company Contract at that time and the Company will 

evaluate each error alleged error trade situation on its individual merits 

and the facts and circumstances of each individual case.

Rule 11.12 Amendments to the Rules

These Rules may be amended or repealed, or new Rules may be adopted. An amendment to a 

Rule, repeal of a Rule or adoption of a new Rule shall be effective on a date set forth by the 

Company, and set forth in a Participant Notice and on the Website.

Rule 11.13 Transfer of Trades

A. The Chief Compliance Officer or his or her designee may, upon request by the 

Participant(s), approve a transfer of existing trades and collateral either on the 

books of the same Participant, or from the books of one Participant to the books 

of another Participant if the transfer is (i) between accounts with identical 

beneficial ownership or (ii) in connection with, or as a result of, an asset 

purchase, corporate restructuring, consolidation or similar non-recurring 

transaction between two or more entities. Such a transfer must meet each of the 

following conditions:

1. The transfer must result in the transfer of all existing open positions and 

collateral in the transferor account;
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2. Immediately prior to the transfer, the transferee account must not have 

any existing open positions or collateral; and

3. All trades involved in the transfer must remain fully collateralized upon 

completion of the transfer.

B. Provided that the transfer is permitted pursuant to paragraph (A) above, the 

transactions must be recorded and carried on the books of the receiving 

Participant at the original trade dates with the original trade prices.

C. All transfers shall be reported to the Company in a form acceptable to the 

Company for the type of transactions involved. The Participant(s) involved shall 

maintain a full and complete record of all transactions together with all pertinent 

memoranda.
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CHAPTER 12 Company Contract Specifications

Rule 12.1 USD/BTC Options

A. Contract Description. Generally speaking, an option is an agreement that grants the 

option purchaser, in exchange for a premium, the right, but not the obligation, to 

purchase from (in the case of a call option) or to sell to (in the case of a put option) the 

option writer, at a specified exercise or “strike” price, and at specified time(s) or within a 

specified period, a specified underlying interest. Participants may enter into Company 

Contracts as buyers or sellers of calls and/or puts. This Rule 12.1 pertains to options on 

bitcoin (as described further herein) and contains general Company Contract terms and 

conditions. 

B. Bitcoin. Bitcoin is a computer network and protocol that allows digital currency to be 

stored and transferred in a distributed manner without the need for a central 

intermediary. The Bitcoin network is a form of blockchain, which allows consensus to be 

built and maintained on a distributed, decentralized basis by parties with no inherent 

reason to trust one another. Each individual bitcoin transaction is validated by the 

network of decentralized parties, or nodes, over a period of time and then added to a 

“block”, which is then cryptographically linked to the immediately preceding block (over 

time, creating a chain, or a “blockchain”).

C. Trading Hours and Trading Facility. The trading hours that are applicable to the 

Company Contract described in this Rule 12.1 (a “USDBTC Option”) will be as stated in 

Rule 5.6 above. The USDBTC Option will be available for trading on the Company DCM 

and the Company SEF.

D. Currency. The currency applicable to USDBTC Options will be United States dollars, 

expressed as dollars and cents per bitcoin.

E. Underlying. The USDBTC Option underlying will be bitcoin (sometimes referred to as 

“BTC”).
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F. Contract Size. Each USDBTC Option contract size will be one bitcoin.

G. Position Limits. No person will own or control positions in excess of:

a. 100,000 USDBTC Options net long or net short in any single Company Contract

month; or

b. 250,000 USDBTC Option net long or net short in all Company Contract months 

combined.

H. Collateral. All Company Contracts will be fully collateralized. Each Participant must 

post the maximum potential loss on a USDBTC Option prior to executing a USDBTC 

Option. 

I. Option Conventions.

a. Traded Price. The traded price on the Trade Date.

b. Strike Price. As of any Trade Date, (i) a range of approximately 15% up and 

15% down from the approximate prevailing spot market price as of such date, 

with increments of $100.00, (ii) a smaller number of additional strikes in 

increments ranging from $250.00 to $1000.00 for prices between 20% and 300% 

of the approximate prevailing spot market price as of such date, and (iii) any 

previously-listed strikes with remaining open interest, in each case as may be 

determined and listed from time to time by the Company in its sole discretion.

c. Daily Settlement Price. None. Because all Company Contracts are fully 

collateralized and physically settled, it is not necessary for the Company to 

publish a settlement price. Each Participant determines whether the intrinsic 

value of the underlying is greater than the relevant Strike Price as of the Last 

Trading Date and makes a corresponding decision as to exercise.

d. Business Day Convention. Previous.
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e. Exercise Type. European.

f. Contract Series. Consecutive months up to and including 60 months from the 

month including the Trade Date, or as otherwise determined and listed from time 

to time by the Company in its sole discretion.

g. Last Trading Date. The last Friday of each USDBTC Option month.

h. Expiration Time. With respect to any USDBTC Option, 4:00pm New York time 

on the Last Trading Date applicable thereto.

i. Settlement. Physical delivery upon exercise. With respect to any USDBTC 

Option, physical delivery will occur on the Business Day next succeeding the 

Last Trading Day in respect of such Company Contract.

j. Final Payment Date. With respect to any USDBTC Option, the Business Day 

next succeeding the Last Trading Day in respect of such Company Contract.

J. Exercise

On the Last Trading Date, Participants submit or update exercise instructions for any 

long USDBTC Option positions. All exercise instructions are processed on the Last 

Trading Date not earlier than 5:00pm. 

Because the Company does not publish a settlement price, there is no provision for 

automatic exercise of Company Contracts.

Rule 12.2 Day-Ahead USD/BTC Swaps

A. Contract Description. The term “swap” is a generic one that covers many types of 

instruments, including (among other things) any agreement, contract or transaction that 

is for the purchase or sale of any one or more currencies or commodities. A Participant 

may enter into a Company Contract as a buyer, whereby such Participant will pay USD 

and receive BTC, or as a seller, whereby such Participant will pay BTC and receive 
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USD. The Company Contract requires that a buyer pay USD on the Initial Payment 

Date, and that the seller pay BTC on the Final Payment Date. This Rule 12.2 pertains to 

swaps on bitcoin (as described further herein) and contains general Company Contract

terms and conditions. 

B. Bitcoin. Bitcoin is a computer network and protocol that allows digital currency to be 

stored and transferred in a distributed manner without the need for a central 

intermediary. The Bitcoin network is a form of blockchain, which allows consensus to be 

built and maintained on a distributed, decentralized basis by parties with no inherent 

reason to trust one another. Each individual bitcoin transaction is validated by the 

network of decentralized parties, or nodes, over a period of time and then added to a 

“block”, which is then cryptographically linked to the immediately preceding block (over 

time, creating a chain, or a “blockchain”).

C. Trading Hours and Trading Facility. The trading hours that are applicable to the 

Company Contract described in this Rule 12.2 (a “Day-ahead Swap”) will be as stated in 

Rule 5.6 above. The Day-ahead Swap will be available for trading on the Company 

DCM and the Company SEF.

D. Currency. The currency applicable to Day-ahead Swaps will be United States dollars, 

which will be expressed in dollars and cents per bitcoin.

E. Underlying. The underlying applicable to Day-ahead Swaps will be bitcoin (sometimes 

referred to as “BTC”).

F. Contract Size. Each Day-ahead Swap will be for a single Underlying (i.e., one bitcoin).

G. Position Limits. As of any date of determination, no person will own or control 

positions in excess of 100,000 Day-ahead Swaps.

H. Collateral. All Company Contracts will be fully collateralized. Before the Company will 

accept a buy order for one or more Day-ahead Swaps from a Participant, such 

Participant must have sufficient USD available for trading in its account to satisfy its 

settlement obligations on such Company Contract(s). Before the Company will accept a 
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sell order for one or more Day-ahead Swaps from a Participant, such Participant must 

have sufficient bitcoin available for trading in its account to satisfy its delivery obligations 

on such Company Contract(s).

I. Swap Tenor. One Business Day. 

J. Swap Conventions.

a. Trade Date. With respect to any Day-ahead Swap, the date on which the 

Company, in its sole discretion accepts a buy or sell order, as the case may be.

b. Effective Date. With respect to any Day-ahead Swap, the Trade Date applicable 

thereto.

c. Minimum Price Fluctuation. With respect to any Day-ahead Swap, $0.25.

d. Initial Payment Date. With respect to any Day-ahead Swap, the Trade Date 

applicable thereto. The buyer of a Day-ahead Swap will pay the bid amount of 

such Company Contract on the Trade Date thereof.

e. Premium. With respect to any Day-ahead Swap, the Buyer thereof will pay the 

premium thereon on the Initial Payment Date. In the context of a Day-ahead 

Swap, the bid amount is equal to the Premium.

f. Final Payment Date. With respect to any Day-ahead Swap, the Business Day 

next succeeding the Trade Date applicable thereto. 

g. Expiration Time. With respect to any Day-ahead Swap, 4:00pm New York time 

(EDT/EST) on the Trade Date applicable thereto.

h. Business Day Convention. Previous.

i. Settlement. Physical delivery. With respect to any Day-ahead Swap, physical 

delivery will occur on the Final Payment Date applicable thereto.
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Rule 12.3 USD/BTC Weekly Options

A. Contract Description. Generally speaking, an option is an agreement that grants the 

option purchaser, in exchange for a premium, the right, but not the obligation, to purchase 

from (in the case of a call option) or to sell to (in the case of a put option) the option writer, 

at a specified exercise or “strike” price, and at specified time(s) or within a specified period, 

a specified underlying interest. Participants may enter into USDBTC Weekly Options as 

buyers or sellers of calls and/or puts. This Rule 12.3 pertains to options on bitcoin (as 

described further herein) and contains general Contract terms and conditions. 

B. Bitcoin. Bitcoin is a computer network and protocol that allows digital currency to be 

stored and transferred in a distributed manner without the need for a central intermediary. 

The Bitcoin network is a form of blockchain, which allows consensus to be built and 

maintained on a distributed, decentralized basis by parties with no inherent reason to trust 

one another. Each individual bitcoin transaction is validated by the network of 

decentralized parties, or nodes, over a period of time and then added to a “block”, which 

is then cryptographically linked to the immediately preceding block (over time, creating a 

chain, or a “blockchain”).

C. Trading Hours and Trading Facility. The Trading Hours that are applicable to the 

USDBTC Weekly Option described in this Rule 12.3 will be as stated in Rule 5.6 above; 

provided, that, with respect to a USBTC Weekly Option with any given tenor and/or strike, 

the Company may establish different Trading Hours by providing notice to participants on 

its Website and by Participant Notice. The USBTC Weekly Option will be available for 

trading on the Company DCM and the Company SEF.

D. Currency. The currency applicable to USDBTC Weekly Options will be United States 

dollars, expressed as dollars and cents per bitcoin.
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E. Underlying. The USDBTC Weekly Option underlying will be bitcoin (sometimes referred 

to as “BTC”).

F. Contract Size. Each USDBTC Weekly Option will be one bitcoin.

G. Position Limits. No person will own or control positions in excess of:

a. 100,000 USDBTC Weekly Options net long or net short in any single Company 

Contract month; or

b. 250,000 USDBTC Weekly Options net long or net short in all Company Contract

months combined.

H. Collateral. All Company Contracts will be fully collateralized. Each Participant must post 

the maximum potential loss on a USDBTC Weekly Option prior to executing a USDBTC 

Weekly Option. 

I. Option Conventions.

a. Traded Price. The traded price on the Trade Date.

b. Strike Price. As of any Trade Date, (i) a range of approximately 15% up and 15% 

down from the approximate prevailing spot market price as of such date, with 

increments of $100.00, (ii) a smaller number of additional strikes in increments 

ranging from $250.00 to $1000.00 for prices between 20% and 300% of the 

approximate prevailing spot market price as of such date, and (iii) any previouslylisted strikes with remaining open interest, in each case as may be determined and 

listed from time to time by the Company in its sole discretion.
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c. Daily Settlement Price. None. Because all Company Contracts are fully 

collateralized and physically settled, it is not necessary for the Company to publish 

a settlement price. Each Participant determines whether the intrinsic value of the 

underlying is greater than the relevant Strike Price as of the Last Trading Date and 

makes a corresponding decision as to exercise.

d. Business Day Convention. Previous.

e. Exercise Type. European.

f. Contract Series. Consecutive weeks up to and including four weeks from the week 

including the Trade Date, or as otherwise determined and listed from time to time 

by the Company in its sole discretion.

g. Last Trading Date. Friday of each calendar week.

h. Last Trading Time. 4:00 pm ET on the Last Trading Date.

i. Settlement. Physical delivery upon exercise. With respect to any USDBTC 

Weekly Option, physical delivery will occur on the Business Day next succeeding 

the Last Trading Day in respect of such Company Contract.

j. Final Payment Date. With respect to any USDBTC Weekly Option, the Business 

Day next succeeding the Last Trading Day in respect of such Company Contract.

J. Exercise
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On the Last Trading Date, Participants submit or update exercise instructions for any long 

USDBTC Weekly Option positions. All exercise instructions are processed on the Last 

Trading Date not earlier than 5:00pm ET. 

Because the Company does not publish a settlement price, there is no provision for 

automatic exercise of Company Contracts.

Rule 12.4 Day-Ahead USD/BTC Options

A. Contract Description. Generally speaking, an option is an agreement that grants the 

option purchaser, in exchange for a premium, the right, but not the obligation, to purchase 

from (in the case of a call option) or to sell to (in the case of a put option) the option writer, 

at a specified exercise or “strike” price, and at specified time(s) or within a specified period, 

a specified underlying interest. Participants may enter into USDBTC Day-Ahead Options 

as buyers or sellers of calls and/or puts. This Rule 12.4 pertains to options on bitcoin (as 

described further herein) and contains general Contract terms and conditions. 

B. Bitcoin. Bitcoin is a computer network and protocol that allows digital currency to be 

stored and transferred in a distributed manner without the need for a central intermediary. 

The Bitcoin network is a form of blockchain, which allows consensus to be built and

maintained on a distributed, decentralized basis by parties with no inherent reason to trust 

one another. Each individual bitcoin transaction is validated by the network of 

decentralized parties, or nodes, over a period of time and then added to a “block”, which 

is then cryptographically linked to the immediately preceding block (over time, creating a 

chain, or a “blockchain”).

C. Trading Hours and Trading Facility. The Trading Hours that are applicable to the 

USDBTC Day-Ahead Option described in this Rule 12.4 will be as stated in Rule 5.6 

above; provided, that, with respect to a USBTC Day-Ahead Option with any given tenor 

and/or strike, the Company may establish different Trading Hours by providing notice to 
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participants on its Website and by Participant Notice. The USDBTC Day-Ahead Option

will be available for trading on the Company DCM and the Company SEF.

D. Currency. The currency applicable to USDBTC Day-Ahead Options will be United States 

dollars, expressed as dollars and cents per bitcoin.

E. Underlying. The USDBTC Day-Ahead Option underlying will be bitcoin (sometimes 

referred to as “BTC”).

F. Contract Size. Each USDBTC Day-Ahead Option will be one bitcoin.

G. Position Limits. No person will own or control positions in excess of: 100,000 USDBTC 

Day-Ahead Options net long or net short.

H. Collateral. All Company Contracts will be fully collateralized. Each Participant must post 

the maximum potential loss on a USDBTC Day-Ahead Option prior to executing a 

USDBTC Day-Ahead Option. 

I. Option Conventions.

a. Traded Price. The traded price on the Trade Date.

b. Strike Price. As of any Trade Date, (i) a range of approximately 15% up and 15% 

down from the approximate prevailing spot market price as of such date, with 

increments of $50.00, (ii) a smaller number of additional strikes in increments 

ranging from $100.00 to $1000.00 for prices between 20% and 300% of the 

approximate prevailing spot market price as of such date, and (iii) any previouslylisted strikes with remaining open interest, in each case as may be determined and 

listed from time to time by the Company in its sole discretion.
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c. Daily Settlement Price. None. Because all Company Contracts are fully 

collateralized and physically settled, it is not necessary for the Company to publish 

a settlement price. Each Participant determines whether the intrinsic value of the 

underlying is greater than the relevant Strike Price as of the Last Trading Date and 

makes a corresponding decision as to exercise.

d. Business Day Convention. Previous.

e. Exercise Type. European.

f. Last Trading Time. With respect to any USDBTC Day-Ahead Option, 4:00pm New 

York time (EDT/EST) on the Trade Date applicable thereto.

g. Settlement. With respect to any USDBTC Day-Ahead Option, physical delivery 

will occur on the Final Payment Date applicable thereto.

h. Final Payment Date. With respect to any USDBTC Day-Ahead Option, the 

Business Day next succeeding the Trade Date applicable thereto. 

J. Exercise

On the Last Trading Date, Participants submit or update exercise instructions for any long 

USDBTC Day-Ahead Option positions. All exercise instructions are processed on the Last 

Trading Date not earlier than 5:00pm ET. 

Because the Company does not publish a settlement price, there is no provision for 

automatic exercise of Company Contracts.