Via Portal Submission

July 21, 2015

Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: OneChicago, LLC Rule Submission

New OCX Rule 418 (Futures Calendar Spread)

(OCX Submission Number 15-010)

Dear Mr. Kirkpatrick:

Pursuant to section 5c(c)(1) of the Commodity Exchange Act, as amended (the “Act”), and § 

40.6(a) of the regulations promulgated by the Commodity Futures Trading Commission

(“CFTC” or the “Commission”) under the Act, OneChicago, LLC (“OneChicago,” “OCX,” or 

the “Exchange”) hereby submits the following rule amendment, which will become effective on 

August 5, 2015.

OneChicago is proposing to insert new OCX Rule 418 (Futures Calendar Spread) into the OCX 

Rulebook. New OCX Rule 418 will formally codify in the rulebook the definition of a Futures 

Calendar Spread. Specifically, the new rule explains that a Futures Calendar Spread is a single 

integrated transaction executed as a single instrument and at a single price, which is the 

differential between the prices of the two expiries in the transaction. The new rule also explains 

that the parties to a Futures Calendar Spread are obligated to transfer and retake delivery of the 

underlying security in accordance with the physical delivery settlement cycle of the Contracts 

traded in the transaction, unless the spread transaction is offset. The text of new OCX Rule 418

is enclosed as Attachment A. Notice to Members (“NTM”) 2015-28, which notifies market 

participants of new OCX Rule 418, is enclosed as Attachment B. 

* * *

The purpose and effect of the rule amendment is to formally codify the Futures Calendar Spread 

in the OCX Rulebook. OneChicago is formally codifying this transaction type alongside other 

currently defined transactions types, such as Exchange of Future for Physical trades and Block 

trades. Comments on this rule filing have not been solicited and none have been received. 

311 S. WACKER DRIVE SUITE 1700 CHICAGO, IL 60606 T 312 883 3410 ONECHICAGO.COM
OneChicago is not aware of any substantive opposing views to this rule filing. OneChicago 

certifies that the rule amendment complies with the Act, including the core principles, and the 

Commission’s regulations promulgated thereunder. OneChicago further certifies that a copy of 

this submission has been posted on the OneChicago website. 

OneChicago staff has reviewed the core principles applicable to designated contract markets 

(“DCMs”), and has concluded that the proposed rule amendment may have some bearing upon 

the following core principles: 

Core Principle 7: Core Principle 7 requires that a DCM make available to market authorities, 

market participants, and the public accurate information concerning: (1) the terms and conditions

of the contracts of the contract market; and (2) the rules, regulations and mechanisms for 

executing transactions on or through the facilities of the contract market. 

This rule filing supports Core Principle 7 in that it codifies a type of transaction within the OCX 

Rulebook and makes market authorities, market participants, and the public aware of such 

transaction type and its requirements. 

 

If you have any questions or comments related to this filing, please feel free to contact me by 

telephone at (312) 883-3441 or through e-mail at wbarazi@onechicago.com. 

Respectfully Submitted,

Waseem Barazi

Chief Regulatory Officer and Associate General Counsel 

Encl: Attachment A

Attachment B
Attachment A

* * *

CHAPTER 3

307. Application of Rules and Jurisdiction

(a) – (c) [Unchanged]

(d) Any Person subject to Rule 307(b) that is not a Clearing Member, Exchange 

Member or Access Person is bound by and required to comply with the following Rules 

of the Exchange for purposes of Rule 307(b) to the same extent that a Clearing Member, 

Exchange Member or Access Person is bound by and required to comply with those 

Rules of the Exchange:

Rules 306, Limitations of Access Privileges; 308, Recording of Conversations; 309, 

Notices; 402, Trading Hours; 406, Execution of Orders by OneChicago System; 411, 

Requirements for Average Price System Transactions; 412, Application and Closing Out 

of Offsetting Positions, 413, Errors of Clearing Members; 414, Position Limits and 

Position Accountability; 416, Exchange of Future for Physical; 417, Block Trading; 418, 

Futures Calendar Spread; 4212, Limitation of Liability, No Warranties; 4223, Transfer of 

Trades; 4234, Concurrent Long and Short Positions; 501, Books and Records; 502, 

Inspection and Delivery; 510, Risk Disclosure Statement; 511, Fraudulent or Misleading 

Communications; 512, Responsibility for Customer Orders; 513, System Security; 601, 

Fraudulent Acts; 602, Fictitious Transactions; 603, Market Manipulation; 604, Adherence 

to Law; 605, Sales Practice Rules; 607, Use of Access Privileges; 608, Acts Detrimental 

to the Exchange; Acts Inconsistent with Just and Equitable Principles of Trade; 610, 

Priority of Customers’ Orders; 611, Trading Against Customers’ Orders; 612, 

Withholding Orders; 613, Disclosing Orders; 614, Pre-Arranged Trades; 615, 

Simultaneous Buying and Selling Order; and all of chapters 7, 9, 10 and 11.

* * *

CHAPTER 4

Exchange of Future for Physical and, Block Trading, and Futures Calendar Spread

416. [Unchanged]

417. [Unchanged]
Special Circumstances

418. Futures Calendar Spread

(a) A Futures Calendar Spread is the purchase (sale) of a certain quantity of a 

Contract and the simultaneous sale (purchase) of the same quantity of the same Contract 

of a different expiry. In a Futures Calendar Spread, the parties to the transaction are 

mutually obligated to transfer or take delivery of the underlying security in accordance 

with the expiry of the Contracts. Unless offset with a separate transaction, the Futures 

Calendar Spread will obligate the buyer to transfer the underlying security upon the 

expiry of the near-dated Contract of the spread within the physical delivery settlement 

cycle of the Contract, and to retake delivery of the security upon the expiry of the fardated Contract of the spread within the physical delivery settlement cycle of the Contract.

(b) A Futures Calendar Spread is an integrated transaction executed as a 

single instrument and at a single price, which shall be the difference between the two 

expiries.

Special Circumstances

4189. Error Trades [Rule Text Unchanged]

41920. Regulatory Halts

(a) – (c) [Unchanged]

Interpretation to Rule 41920

For purposes of this rule 41920, a regulatory halt, as defined in Commission 

Regulation §41.1(l) shall be effective as of the time the “halt” is instituted by the 

national securities exchange. Accordingly, trades in a Single Stock Future or in a 

narrow-based security index as defined above made after the time the underlying 

halt is instituted, will be subject to cancellation or “bust” by the Exchange.

4201. Emergencies

(a) – (b) [Unchanged]

(c) Notification and Recording. The Exchange will notify the Commission of 

any action taken, or proposed to be taken, pursuant to this Rule 4201 in accordance with 
Commission Regulation § 40.6. The decision-making process with respect to, and the 

reasons for, any such action will be recorded in writing.

(d) Conflicts of Interest. The conflict of interest provisions set forth in Rule 

211(b) and the related documentation requirements set forth in Rule 211(c) shall apply, 

mutatis mutandis, to the taking of any action under this Rule 4201 by the Chief Executive 

Officer, or his or her designee.

4212. Limitation of Liability; No Warranties

(a) – (b) [Unchanged]

(c) NO INDEX LICENSOR WITH RESPECT TO ANY INDEX 

PERTAINING TO AN EXCHANGE-TRADED FUND OR A NARROW-BASED 

SECURITY INDEX UNDERLYING A FUTURE TRADED ON THE EXCHANGE 

MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO THE RESULTS TO BE 

OBTAINED BY ANY PERSON FROM THE USE OF SUCH INDEX, ANY 

OPENING, INTRA-DAY OR CLOSING VALUE THEREFOR, OR ANY DATA 

INCLUDED THEREIN OR RELATING THERETO, IN CONNECTION WITH THE 

TRADING OF ANY FUTURE BASED ON A NARROW-BASED SECURITY INDEX

OR A FUTURE ON AN EXCHANGE-TRADED FUND BASED THEREON OR FOR 

ANY OTHER PURPOSE. FOR PURPOSES OF THIS RULE 4212, THE TERM 

“INDEX LICENSOR” REFERS TO ANY PERSON THAT GRANTS THE 

EXCHANGE A LICENSE TO USE ONE OR MORE INDEXES, TRADEMARKS OR

PORTFOLIOS IN CONNECTION WITH THE TRADING OF FUTURES ON AN 

INDEX OR AN EXCHANGE-TRADED FUND BASED ON AN INDEX. ANY SUCH

INDEX LICENSOR SHALL OBTAIN INFORMATION FOR INCLUSION IN, OR 

FOR USE IN THE CALCULATION OF, SUCH INDEX FROM SOURCES IT 

BELIEVES TO BE RELIABLE, BUT DOES NOT GUARANTEE THE ACCURACY

OR COMPLETENESS OF SUCH INDEX, ANY OPENING, INTRA-DAY OR 

CLOSING VALUE THEREFOR, OR ANY DATA INCLUDED THEREIN OR 

RELATED THERETO. ANY SUCH INDEX LICENSOR HEREBY DISCLAIMS ALL 

WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, 

ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR 

PURPOSE OR USE WITH RESPECT TO ANY SUCH INDEX, ANY OPENING, 

INTRA-DAY OR CLOSING VALUE THEREFOR, ANY DATA INCLUDED 

THEREIN OR RELATING THERETO, OR ANY FUTURE BASED ON A NARROWBASED SECURITY INDEX OR FUTURES ON EXCHANGE-TRADED FUNDS 

BASED ON AN INDEX. ANY SUCH INDEX LICENSOR SHALL HAVE NO 

LIABILITY FOR ANY DAMAGES (INCLUDING SPECIAL OR PUNITIVE 

DAMAGES), CLAIMS, LOSSES (INCLUDING ANY INDIRECT, INCIDENTAL, OR 

CONSEQUENTIAL LOSSES OR LOST PROFITS), EXPENSES OR DELAYS, 

WHETHER DIRECT OR INDIRECT, FORESEEN OR UNFORESEEN, SUFFERED 

BY ANY PERSON ARISING OUT OF ANY CIRCUMSTANCE OR OCCURRENCE 
RELATING TO SUCH PERSON’S USE OF SUCH INDEX, ANY OPENING, INTRADAY OR CLOSING VALUE THEREFOR, ANY DATA INCLUDED THEREIN OR 

RELATING THERETO, OR ANY FUTURES ON EXCHANGE-TRADED FUNDS 

BASED ON AN INDEX OR A NARROW-BASED SECURITY INDEX, OR ARISING 

OUT OF ANY ERRORS, OMISSIONS, INTERRUPTIONS OR DELAYS IN 

CALCULATING OR DISSEMINATING SUCH INDEX.

(d) – (e) [Unchanged]

4223. Transfer of Trades

(a) Subject to the limitations of 4234, existing trades may be transferred either 

on the books of a clearing member or from one clearing member to another 

clearing member provided:

(i) The transfer merely constitutes a change from one account 

to another account provided the underlying beneficial ownership in said 

accounts remains the same; or

(ii) An error has been made in the reporting or clearing of a 

trade and the error is discovered and the transfer is completed within two 

business days after the trade date, subject to Section (c), below.

(b) Subject to the limitations of Rule 4234, the Exchange may, upon request 

by the clearing member(s), approve a transfer of existing trades either on the 

books of the same clearing member, or from the books of one clearing member to 

the books of another clearing member if the transfer is in connection with, or as a 

result of, a merger, asset purchase, consolidation or similar non-recurring 

transaction between two or more entities where one or more entities become the 

successor in interest to one or more other entities.

4234. Concurrent Long and Short Positions [Rule Text Unchanged]
Attachment B

(See Following Page)
Notice to Members 2015-28

Date: July 21, 2015

Re: New OCX Rule 418 – Futures Calendar Spread 

Effective Date: August 5, 2014

OneChicago, LLC (“OneChicago” or “OCX”) is issuing this Notice to Members (“NTM”) 2015-

28 to inform market participants that, pending regulatory review, the Exchange is adding new 

OCX Rule 418 (Futures Calendar Spread) to the OCX Rulebook. This new rule will define a 

Futures Calendar Spread, similar to the way Exchange of Future for Physical (OCX Rule 416)

and Block Trading (OCX Rule 417) are currently defined. The text of new OCX Rule 418 is as 

follows:

* * *

418. Futures Calendar Spread 

(a) A Futures Calendar Spread is the purchase (sale) of a certain quantity of a 

Contract and the simultaneous sale (purchase) of the same quantity of the same Contract 

of a different expiry. In a Futures Calendar Spread, the parties to the transaction are 

mutually obligated to transfer or take delivery of the underlying security in accordance 

with the expiry of the Contracts. Unless offset with a separate transaction, the Futures 

Calendar Spread will obligate the buyer to transfer the underlying security upon the 

expiry of the near-dated Contract of the spread within the physical delivery settlement 

cycle of the Contract, and to retake delivery of the security upon the expiry of the fardated Contract of the spread within the physical delivery settlement cycle of the Contract.

(b) A Futures Calendar Spread is an integrated transaction executed as a 

single instrument and at a single price, which shall be the difference between the two 

expiries. 

 

* * *

Any questions regarding this NTM should be directed to Waseem Barazi, Chief Regulatory 

Officer and Associate General Counsel at (312) 883-3441 or wbarazi@onechicago.com.