NODAL EXCHANGE RULEBOOK

2023v54 28

(d) shows such other cause as the Exchange may reasonably determine. 

3.3.4 If the Exchange decides to deny or condition an applicant’s access to the 

Exchange’s System, the Exchange shall promptly notify the applicant in 

writing to the address provided by the applicant on the Exchange 

application form. Any such denial or condition placed by the Exchange 

may be appealed by the applicant and shall be promptly considered by the 

Exchange Participant Committee. In each case, the Exchange Participant 

Committee shall determine the specific procedures to be applied, provided 

that the applicant shall be afforded the opportunity to present such evidence 

as the Committee deems relevant. The rules of evidence shall not apply 

and a transcript shall not be created. 

3.3.5 If the Participant is not an Individual Clearing Member, the Participant 

must also be party to an agreement with a FCM Clearing Member in 

accordance with Rule 5.2.1. 

3.3.6 A Person approved as a Participant shall be subject to all of the Rules of 

the Exchange. 

3.3.7 Each applicant and each Participant agrees (i) promptly to provide, or 

procure the provision of, such information and documents as the Exchange 

may reasonably request, and (ii) that the Exchange, without being 

prevented by any duty of confidentiality by any holder of information, may 

obtain such information and documents from any Clearing Member or 

from the Clearing House. 

3.3.8 The Exchange shall grant access to independent software vendors that meet 

the requirements for Participants set out in this Rule 3.3. 

3.3.9 FCM Participants shall effect any transfer of transactions and/or positions 

in accordance with the Rules and CFTC Regulation 1.65. 

3.4 Minimum Financial, Segregation and Related Reporting Requirements 

3.4.1 All Participants (including FCM Participants) executing Block Trades 

must be an ECP and must immediately notify the Exchange or the 

Regulatory Service Provider, if any, if theyit or its Customer, as applicable, 

no longer meets the requirements of an ECP. Likewise, FCM Participants 

must ensure that only Customers that are ECPs are enabled to execute 

Block Trades.

3.4.2 Each Participant that is acting as an FCM Participant, a Participant that 

and/or is registered with the CFTC as an FCM, and each FCM Clearing 

Member must: 
NODAL EXCHANGE RULEBOOK

2023v54 29

(a) comply with the minimum financial and related reporting 

requirements of Commission Regulations, including Commission 

Regulations 1.10, 1.12, 1.17 and 1.18; 

(b) comply with the Customer funds segregation requirements of 

Commission Regulations 1.20 through 1.30, 1.32 and 1.49; 

(c) file with the Exchange and the Regulatory Service Provider, if any, 

a copy of any notice or written report that it is required to file with 

the Commission pursuant to Commission Regulations 1.10 or 1.12; 

and

(d) comply with all applicable provisions of the CEA, Commission 

Regulations, and NFA Rules including, but not limited to, rules and 

regulations regarding registration, customer protection, risk 

management, supervision, reporting and recordkeeping.; and 

(d)(e) comply with and adopt risk management requirements the same as, 

or more stringent than, the requirements contained in Commission 

Regulation 1.11.

3.4.3 A Participant that is registered with or authorized or supervised by a 

Governmental Authority shall comply with the rules and regulation of such 

Governmental Authority relating to minimum financial and related 

reporting and recordkeeping requirements and shall provide to the 

Exchange and to the Regulatory Service Provider, if any, a copy of such 

Participant’s regulatory capital report, reasonably contemporaneously with 

the filing of such report and substantially in the form such report was filed 

with such Governmental Authority. A Participant that is not subject to 

such filing requirements shall provide the Exchange with such financial 

information as the Exchange may require from time to time. 

3.4.4 A Participant that is not registered with the CFTC, or registered with or 

authorized or supervised by a Governmental Authority other than the 

CFTC, shall submit to the Exchange upon request annual audited financial 

statements for the Participant or, if applicable, its parent company certified 

by a certified independent public accountant (or by a Person having similar 

qualifications if the Participant’s books of account are kept outside the 

United States) within ninety calendar days of the Participant’s fiscal yearend. 

3.5 Requirements for Engaging in Physical Delivery of Environmental Products 

3.5.1 All futures contracts on environmental products will settle through 

physical delivery if positions remain open at the end of the Last Trading 

Day. The seller, or its designee, is responsible for delivery through the 

designated registry associated with the Deliverable Product as defined in 

Appendix A. The delivery is processed between the parties per the rules of