23-023

July 26, 2023

VIA PORTAL

Commodity Futures Trading Commission

Attention: Christopher Kirkpatrick, Secretary

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

Re: CFTC Regulation 40.6(a) Certification: Submission of Amendments to the 

Nodal Exchange Rulebook

Dear Mr. Kirkpatrick:

Nodal Exchange, LLC (“Nodal Exchange” or “Exchange”) is notifying the Commodity Futures 

Trading Commission (“CFTC” or “Commission”) that it is self-certifying amendments to the 

Nodal Exchange Rulebook (“Rules”) pursuant to Commission Regulation 40.6(a). The

Exchange is amending The Exchange and Clearing Transaction Fee Schedule, Appendix B –

Minimum Block Sizes, Electronic Trade Error Policy, and Nodal Rule 3.6 for the upcoming 

launch of new environmental contracts. The amended Rules are attached hereto and 

indicate the specific text in red that is being added. The Exchange intends to implement the 

amended Rules on or after August 11, 2023.

The Rules are being revised for the upcoming launch of new environmental contracts. The 

Exchange is updating The Exchange and Clearing Transaction Fee Schedule, Appendix B –

Minimum Block Sizes, Electronic Trade Error Policy, and Nodal Rule 3.6 to include the new 

environmental contracts.

Exchange management has assessed the amendments and their compliance with applicable 

provisions of the Act, including the Commissions Regulations and the Core Principles. 

Nodal Exchange has identified that the amendments may affect the following Core 

Principles as follows:

Core Principle 2 - Compliance with the Rules: The amendments to the Rules provide clarity 

and consistency with the Act for compliance with the Rules. The Exchange and Clearing 

Transaction Fee Schedule, Appendix B – Minimum Block Sizes, Electronic Trade Error 

Policy, and Nodal Rule 3.6 are applicable to all Nodal Exchange Participants.

Core Principle 4 - Prevention of Market Disruption: All activity performed on Nodal is subject 

to the Nodal Exchange Rulebook Section VI, which prohibits disruptive trading behavior and 
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manipulation, subject to monitoring and surveillance by the Exchange’s Division of Market 

Surveillance.

Core Principle 7 – Availability of General Information: The amendments to the Rules 

provide clarity to Exchange Participants. The amended Rules are available to market 

authorities, Participants, Authorized Brokers and the public on the Exchange website.

Core Principle 12 - Protection of Markets and Market Participants: Section VI of the Nodal 

Exchange Rulebook protects the market and market participants from abusive, disruptive, 

fraudulent, noncompetitive and unfair conduct and trade practices. 

Core Principle 13 - Disciplinary Procedures: Section VII of the Nodal Exchange Rulebook 

describes the disciplinary procedures of the Exchange that authorize the Exchange to 

discipline, suspend, or expel anyone on the Exchange that violates these rules. 

Pursuant to Section 5c(c) of the Act and the Commission’s Regulation 40.6, the Exchange 

certifies that amended Rules comply with the Act and the Commission’s Regulations 

thereunder. There have not been any opposing views expressed regarding the amendments 

to the Rules.

Nodal Exchange certifies that this submission has been concurrently posted on the Nodal 

Exchange website at www.nodalexchange.com.

If you have any question or need additional information regarding this submission, please 

contact me at 703-962-9853 or Markotic@nodalexchange.com.

Sincerely,

/s/ Max Markotic

Managing Director

Attachment:

Exchange and Clearing Transaction Fee Schedule – REDLINE

Appendix B – Minimum Block Sizes - REDLINE

Electronic Trade Error Policy – REDLINE

Nodal Rule 3.6 - REDLINE