© 2010-2023 FMX Futures Exchange, L.P. November 9, 2023

November 9, 2023

RULES GOVERNING THE

FMX DIVISION

AND CX DIVISION

Of 

FMX FUTURES EXCHANGE, L.P.

RULES

BY ACCESSING, OR ENTERING ANY ORDER INTO, THE CX DIRECT SYSTEM, AND WITHOUT ANY 

NEED FOR ANY FURTHER ACTION, UNDERTAKING OR AGREEMENT, A PARTICIPANT, AND ITS 

AUTHORIZED TRADERS AGREE (I) TO BE BOUND BY, AND COMPLY WITH, THE RULES OF THE 

EXCHANGE, THE RULES OF THE CLEARINGHOUSE, ANY APPLICABLE CONTRACT RULES AND 

APPLICABLE LAW, IN EACH CASE TO THE EXTENT APPLICABLE TO IT OR THEM, AND (II) TO BECOME 

SUBJECT TO THE JURISDICTION OF THE EXCHANGE WITH RESPECT TO ANY AND ALL MATTERS 

ARISING FROM, RELATED TO, OR IN CONNECTION WITH, THE STATUS, ACTIONS OR OMISSIONS OF 

SUCH PARTICIPANT AND/OR ITS AUTHORIZED TRADERS. SEE CHAPTER III AND THE RELATED 

DEFINITIONS IN THESE RULES.

Any Person initiating or executing a transaction on or subject to the Rules of the Exchange directly 

or through an intermediary, and any Person for whose benefit such a transaction has been initiated 

or executed, expressly consents to the jurisdiction of the Exchange and agrees to be bound by and 

comply with the Rules of the Exchange in relation to such transactions, including, but not limited 

to, rules requiring cooperation and participation in investigatory and disciplinary processes.
© 2010-2023 FMX Futures Exchange, L.P. Version: February 27, 2023
NY27:98101.14

NY12532:415259.27

VERSION LOG

Version Effective Date Summary of Changes ResponsibleResponsibility

1.0 July 12, 2021 Base COOChief Operating Officer

1.1 April 8, 2022tbd Correction to Rules: addition of Rules 

VI-13, Front Running, and VI-14, Wash 

Trading, which were originally effective 

on November 19, 2018; updated Table 

of ContentsDraft of proposed rule changes 

to permit intermediated trading; 

reorganization into three Parts

COOChief Operating Officer

1.2 April 19March 18, 2022 Revised definitions to reflect new entity 

name as FMX Futures Exchange, 

L.P.Revisions based on DMO comments

COOChief Operating Officer

1.3 April 29, 2022 Clarify voting rules of the Regulatory 

Oversight Committee.Revisions to ROC 

and Disruptive Trading

COO

Chief Operating Officer

1.4 July 28, 2022 Revisions based on DMO and DCR 

comments

Chief Operating Officer

1.41.5 February 7June 5, 2023 Delete product rules: IX-1000, IX-1010, 

IX-1020, IX-1030, IX-1100, IX-1200, IX2000, IX-3100, IX-3101, IX-3200, IX3300, IX-3301, IX-3302, and IX3303 Revisions based on changes to 

defined terms and other conforming 

changes

COO 

Chief Operating Officer

1.51.6 February 27November 9, 

2023

Add new Rule II-12, Transaction 

Records; delete incentive programs 

100, 101, and 102. Add new Rule XI-1, 

2023 Automated Liquidity Provider 

(ALP) Program; Revisions to participant 

eligibility

COOChief Operating Officer
FMX Futures Exchange, L.P. Rules

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© 2010-2023 FMX Futures Exchange, L.P.

TABLE OF CONTENTS

Page

PART A RULES OF THE FMX DIVISION....................................................................1

CHAPTER I DEFINITIONS; INTERPRETATION; 

AMENDMENTSINTERPRETATION; AMENDMENTS ...................................1

I-1. Defined Terms ...............................................................................................1

I-2. Rules of Interpretation............................................................................. 1213

I-3. Effect of Titles ........................................................................................ 1213

I-4. Amendment of Rules............................................................................... 1213

I-5. ContractHierarchy of Interpretation of Rules...............................................13

CHAPTER II ADMISSION TO TRADE CONTRACTS ..........................................................14

II-1 FMX Participants and FMX Trading Accounts.............................................14

II-2 Responsible Trading Agents.........................................................................15

II-3 Direct Access Customers..............................................................................16

II-4 FMX Trading Privileges...............................................................................18

II-5 Eligibility.....................................................................................................18

II-6 Application for FMX Trading Privileges......................................................20

II-7 Front-End User Interface and Independent Software Vendors.......................20

II-8 Financial and Risk Management Requirements for an FMX Participant 

that is an FCM; Requirements for an FMX Participant that is an 

Introducing Broker.......................................................................................21

CHAPTER III FMX TRADING STANDARDS........................................................................21

III-1 FMX Division Contracts ..............................................................................21

III-2 Trading Days and Trading Hours..................................................................21

III-3 FMX Division Contract Order Entry ............................................................22

III-4 Acceptable FMX Division Contract Orders..................................................22

III-5 Information Regarding FMX Division Contract Orders................................24

III-6 Pre-Execution Discussions and Cross Trades of FMX Division 

Contract .......................................................................................................24

III-7 Opening and Closing Trading on the FMX Division.....................................25

III-8 Execution of Orders on the FMX Division ...................................................25

III-9 Modification and Cancellation of Orders on the FMX Division ....................26
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III-10 Errors, Trade Cancellation and Price Adjustments on the FMX 

Division .......................................................................................................27

III-11 Responsibility for Orders..............................................................................31

III-12 Allocation and Priority of Customer Orders; No Withholding of 

Orders; Bunched Orders...............................................................................31

III-13 Financial Requirements for Order Entry and Executions...............................33

III-14 Revocation of Clearing Authorization: Trade Nullification..........................33

III-15 Customer Margin .........................................................................................33

III-16 Segregation, Custody and Investment of Customer Funds.............................34

III-17 Daily Settlement Price Determination...........................................................34

III-18 Required Reports..........................................................................................34

III-19 Recording of Orders and Record Keeping ....................................................35

III-20 Reporting of Open Interest by Clearing Members.........................................36

CHAPTER IV CLEARING OF FMX DIVISION CONTRACTS .........................................36

IV-1 Rules of LCH Limited..................................................................................36

IV-2 Substitution..................................................................................................36

CHAPTER V FMX DIVISION CONTRACTS .........................................................................37

V-1 Reserved. .....................................................................................................37

V-2 Reserved. .....................................................................................................37

CHAPTER VI 37

VI-1 Incentive Programs.......................................................................................37

PART B GENERAL RULES OF THE EXCHANGE...................................................39

CHAPTER IIX GOVERNANCE OF THE EXCHANGE ..................................................... 1439

X-1 Defined Terms .............................................................................................39

II-1.X-2 Board of Directors................................................................................... 1439

II-2.X-3 Standing Committees .............................................................................. 1439

II-3.X-4 Regulatory Oversight Committee ............................................................ 1540

II-4.X-5 Additional Committees and Panels.......................................................... 1641

II-5.X-6 Eligibility................................................................................................ 1641

II-6.X-7 Power of the Board of Directors to Review Decisions ............................. 1844

II-7.X-8 Officers................................................................................................... 1944

II-8.X-9 Restrictions on Certain Persons Who Possess Material, Non-Public 

Information ............................................................................................. 1944
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II-9.X-10 Conflicts of Interest................................................................................. 2045

II-10.X-11Regulatory Cooperation........................................................................... 2349

II-11.X-12Regulatory Services Agreement with NFA.............................................. 2450

II-12.X-13 Transaction Records................................................................................ 2450

CHAPTER III OWNERSHIP AND TRADING PRIVILEGES .......................................... 26

III-1. PARTICIPANTS ANDCHAPTER XI GENERAL TRADING 

ACCOUNTSPROVISIONS ......................................................................... 2650

XI-1 Contract Specifications.................................................................................50

IIIXI-2. Authorized Traders.................................................................27Contract 

Modifications...............................................................................................50

IIIXI-3. Eligibility ..................................................................................28Position 

Accountability..............................................................................................50

IIIXI-4. Application forPrice Limits and Temporary Trading PrivilegesHalts..... 3051

IIIXI-5. Fees and Payments...........................................................31Transfers of 

Positions.......................................................................................................52

IIIXI-6. [RESERVED]EFP Transactions............................................................. 3152

XI-7 Block Trading ..............................................................................................52

XI-8 EFS Transactions .........................................................................................52

XI-9 Emergencies.................................................................................................53

XI-10 Daily Reports...............................................................................................54

XI-11 Message Traffic Limits.................................................................................54

III-7.XI-12Application of Rules and Jurisdiction Following Termination ................. 3154

III-8.XI-13Recording of Communications................................................................ 3255

III-9.XI-14Notices.................................................................................................... 3255

III-10. Communications between the Exchange and Participants............................ 32

III-11. Referral and Solicitation of Participants and Orders...................................... 33

CHAPTER IV TRADING STANDARDS......................................................................... 36

IV-1. Contracts Traded on the Exchange............................................................... 36

IV-2. Trading Days and Trading Hours .................................................................. 36

IV-3. Order Entry.................................................................................................... 36

IV-4. Financial Requirements for Order Entry and Executions............................... 37

IV-5. Acceptable Orders ........................................................................................ 39

IV-6. Modification and Cancellation of Orders........................................................ 39

IV-7. Execution of Orders by the CX Direct System............................................... 39

IV-8. Daily Settlement Price Determination............................................................ 40

IV-9. XI-15 ....................................................................... Proprietary Nature of Market 

CrossingData ......................................................................................... 4155
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IV-10. Information Regarding Orders....................................................................... 41

IV-11. Errors ............................................................................................................ 41

IV-12. Position Limits and Position Accountability ................................................... 42

IV-13. Price Limits.................................................................................................... 46

IV-14. Reportable Positions ..................................................................................... 47

IV-15. EFP Transactions.......................................................................................... 47

IV-16. Block Trading ................................................................................................ 48

IV-17. Exchange of Futures for, or in connection with, Swap Transaction............... 50

IV-18. Transfers of Positions.................................................................................... 51

IV-19. Emergencies ................................................................................................. 52

IV-20.XI-16..........................................................................................................Limitation of 

Liability .................................................................................................. 5456

IV-21. Opening Auctions.......................................................................................... 56

IV-22. Daily and Weekly Reports............................................................................. 58

CHAPTER VXII OBLIGATIONS OF PARTICIPANTS ..................................................... 5958

VXII-1. Books and Records; Cooperation in Proceedings..................................... 5958

VXII-2. Minimum Financial Reporting Requirements and Reports............................59

VXII-3. Authority of the President to Impose Restrictions.................................... 6059

VXII-4. Minimum Financial Requirements........................................................... 6059

VXII-5. Trade Confirmations ....................................................................................60

VXII-6. Account Statements................................................................................. 6160

VXII-7. Risk Disclosure Statement....................................................................... 6160

VXII-8. Fraudulent or Misleading Communications ............................................. 6160

VXII-9. System Security............................................................................................61

XII-10 Communications between the Exchange and Participants.............................61

V-10. Market Maker ProgramsXII-11 ........................................................... Fees and 

Payments......................................................................................................62

Market MakerXII-12 .................................................................................................Incentive

Programs......................................................................................................62

V-11. DPMs ............................................................................................................ 63

DPMs 63

V-12. Investment of Certain Participant Account Funds ......................................... 66

VXII-13. ElectronicExchange Trading System Requirements................................ 6763

XII-14 Measures to Avoid Self-Matching ................................................................64

CHAPTER VIXIII BUSINESS CONDUCT......................................................................... 6864

VIXIII-1. Rule Violations ....................................................................................... 6864

VIXIII-2. Fraudulent Acts....................................................................................... 6864

VIXIII-3. Fictitious Transactions ............................................................................ 6864
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VIXIII-4. Market Demoralization............................................................................ 6864

VIXIII-5. Price Manipulation .................................................................................. 6965

VIXIII-6. Prohibition of Misstatements................................................................... 6965

VIXIII-7. Adherence to Law ................................................................................... 6965

VIXIII-8. Use of Trading Privileges........................................................................ 6965

VIXIII-9. Supervision ............................................................................................. 6965

VIXIII-10. Disclosing Orders.................................................................................... 6965

VIXIII-11. Pre-Execution 

Discussions ........................................................................................ 70

................................................................................................................. Reserved.

.....................................................................................................................66

VIXIII-12. Disruptive Practices................................................................................. 7066

VIXIII-13. Front Running ......................................................................................... 7066

VIXIII-14. Wash Trading ..................................... 70; Accommodation Trading, Money 

Passes...........................................................................................................66

XIII-15 Cross Trades ................................................................................................67

CHAPTER VIIXIV DISCIPLINE AND ENFORCEMENT.................................................. 7167

VIIXIV-1. General ................................................................................................... 7167

VIIXIV-2. Inquiries and Investigations..................................................................... 7268

VIIXIV-3. Reports of Investigations......................................................................... 7370

VIIXIV-4. Review of Investigative Reports.............................................................. 7470

VIIXIV-5. Notice of Charges and Opportunity to Respond ....................................... 7471

VIIXIV-6. Answer to Notice of Charges................................................................... 7672

VIIXIV-7. Service of Notice of Charges................................................................... 7673

VIIXIV-8. Settlements.............................................................................................. 7773

VIIXIV-9. Disciplinary Panel ................................................................................... 7774

VIIXIV-10...................................................................... Convening Hearings of Disciplinary 

Proceedings............................................................................................. 7874

VIIXIV-11.............................................................................................Respondent Review of 

Evidence ................................................................................................. 7975

VIIXIV-12..................................................................... Conducting Hearings of Disciplinary 

Proceedings............................................................................................. 8076

VIIXIV-13..........................................................................................Decision of Disciplinary 

Panel ....................................................................................................... 8177
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VIIXIV14..............................................................................................................Sanctions

................................................................................................................ 8278

VIIXIV15.....................................................................................................................Costs

................................................................................................................ 8378

VIIXIV-16. Appeal from Disciplinary Panel Decision, Summary Impositions of Fines and 

Other Summary Actions.......................................................................... 8379

VIIXIV-17........................................................................................... Summary Imposition of 

Fines....................................................................................................... 8682

VIIXIV-18.......................................................... Summary Suspensions and Other Summary 

Actions.................................................................................................... 8782

VIIXIV-19.................................................... Rights and Responsibilities after Suspension or 

Termination............................................................................................. 8984

VIIXIV-20..................................Notice to the Respondent, the CommissionCFTC and the 

Public...................................................................................................... 9085

CHAPTER VIIIXV ARBITRATION.................................................................................... 9185

VIIIXV-1. General ................................................................................................... 9185

VIIIXV-2. Forum ..................................................................................................... 9185

VIIIXV-3. Applicable Arbitration Rules................................................................... 9185

VIIIXV-4. Penalties.................................................................................................. 9185

PART C RULES OF THE CX DIVISION.....................................................................86

CHAPTER XX TERMS APPLICABLE TO THE CX DIVISION.............................................86

XX-1 Defined Terms .............................................................................................86

XX-2 Rules of Interpretation..................................................................................94

XX-3 Effect of Titles .............................................................................................95

XX-4 Amendment of Rules....................................................................................95

XX-5 Hierarchy of Interpretation of Rules .............................................................95

CHAPTER XXI ADMISSION TO TRADE ON CX DIVISION ...............................................97

XXI-1 CX Participants and CX Trading Accounts...................................................97

XXI-2 Responsible Trading Agents.........................................................................98

XXI-3 CX Trading Privileges..................................................................................99

XXI-4 Eligibility.....................................................................................................99

XXI-5 Application for CX Trading Privileges.......................................................101

XXI-6 Referral and Solicitation of Participants and Orders....................................102
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CHAPTER XXII CX DIVISION TRADING STANDARDS ..................................................105

XXII-1 CX Division Contracts ...............................................................................105

XXII-2 CX Division Trading Days and Trading Hours...........................................105

XXII-3 Opening and Closing Trading in CX Division Contracts.............................105

XXII-4 CX Division Contract Order Entry .............................................................106

XXII-5 Acceptable CX Division Contract Orders...................................................106

XXII-6 Information Regarding CX Contract Orders ...............................................106

XXII-7 Permissible Pre-Execution Discussions On CX Division ............................106

XXII-8 Errors, Trade Cancellation and Price Adjustments of CX Division 

Contracts....................................................................................................106

XXII-9 Investment of Certain CX Participant Account Funds.................................107

XXII-10 Financial Requirements for Order Entry and Executions on the CX 

Division .....................................................................................................107

XXII-11 Reportable Positions...................................................................................109

CHAPTER IXXXIII CLEARING OF CX DIVISION CONTRACTS .................................92110

IX-1. Contract Specifications.................................................................................. 92

IX-2. Contract Modifications................................................................................... 92

IX-3003. Atlantic Named Storm Landfall Swaps..................................................... 92

CHAPTER X CLEARING .............................................................................................. 98

XXXIII-1. Rules of the CX Clearinghouse...............................................................98110

XXIII-2 Clearing Services .......................................................................................110

XXIII-3 Transfer of Open Positions to Clearinghouse..............................................110

XXIII-4 Substitution................................................................................................110

XXIII-5 Offsets........................................................................................................110

CHAPTER XXIV CX DIVISION CONTRACTS ...................................................................110

XXIV-1 Contract Specifications...............................................................................110

CHAPTER XIXXV CX DIVISION INCENTIVE PROGRAMS .........................................99112

XIXXV-1. . 2023 Automated Liquidity Provider (ALP) Program ............................99112
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FMX Division

© 2010-2023 FMX Futures Exchange, L.P.

PART A RULES OF THE FMX DIVISION

Scope: The Rules of the Exchange (“the Rules”) in Part A apply to trading of Contracts (as defined 

below) on the FMX Division of FMX Futures Exchange, L.P. (the “Exchange”).

CHAPTER I

DEFINITIONS; INTERPRETATION;

AMENDMENTSINTERPRETATION; AMENDMENTS

I-1 I-1. Defined Terms

Unless otherwise specifically provided in the Rules of the Exchange or the 

context otherwise requires, the terms defined in this Section I-1 shall for all purposes of 

the Rules of the Exchange have the meanings specified herein.

The following terms have the meanings specified herein with regard to the Exchange and 

the FMX Division unless otherwise specifically provided in the Rules of the Exchange (as defined 

below) or the context otherwise requires.

Administrator

The term “Administrator” means an employee or agent designated by a Participant or a 

Direct Access Customer as its administrator with respect to the use of the Exchange Trading 

System by the Responsible Trading Agents of such Participant or Direct Access Customer. 

Affiliate

An “Affiliate” of, or a Person “Affiliated” with, another Person is a Person who, directly 

or indirectly, Controls, is Controlled by, or is under common Control with, such other Person.

Appeals Panel

The term “Appeals Panel” means a panel comprised of three (3) individuals from the 

Regulatory Oversight Committee, with one individual acting as chairman, which will consider 

appeals in accordance with Chapter VIIXIV. If lessfewer than three (3) individuals from the 

Regulatory Oversight Committee are eligible to serve on the Appeals Panel pursuant to 

Rule VIIXIV-16, the Appeals Panel shall be a panel solely comprised of those individuals from the 

Regulatory Oversight Committee that are eligible to serve on the Appeals Panel and such 

additional individuals meeting the requirements of Public Director who are appointed by the Chief 

Compliance DirectorOfficer pursuant to Rule VIIXIV-16. Members of the Compliance 

Department of the Exchange shall not be eligible to serve on the Appeals Panel. Members of a 

Disciplinary Panel may not serve on an Appeals Panel for the same matter.
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FMX Division

© 2010-2023 FMX Futures Exchange, L.P.

Applicable Law

The term “Applicable Law” means, with respect to any Person, any Federal or state statute, 

law, regulation, Rulerule or ordinance of any governmentalFederal or state authority applicable 

to such Person, including the CEA, CFTC Regulations, NFA Rules, and margin rules adopted by 

the Board of Governors of the Federal Reserve System.

Assistant SecretaryAsset Manager

The term “Assistant Secretary” means any individual appointed by the 

Board of Directors from time to time to serve as an assistant secretary of the Exchange.

Available Funds

The term “Available Funds” shall have the meaning assigned to such term 

in the Rules of the Clearinghouse.

Authorized Trader

The term “Authorized Trader” means any natural person who is authorized 

by a Participant to place Orders on the CX Direct System. 

Block Trade

The term “Block Trade” has the meaning set forth in Rule IV-16Asset Manager” 

means a person or an entity that exercises investment discretion over the assets of any other person 

or entity.

Block Trade ContractAsset Manager Customer

The term “Block Trade Contract” has the meaning set forth in Rule IV-16Asset 

Manager Customer” means any Asset Manager who uses an FCM as agent in connection with 

trading on the FMX Division.

Block Trader IDAvailable Order Type

The term “Block Trader ID” shall have the meaning ascribed to it in Rule IV16.Available Order Type” means any form of Order to buy or sell a Contract on or subject to the 

Rules of the CX Division or the FMX Division with any modifiers that can be added to the Order 

as described as an Acceptable Order for the CX Division or the FMX Division, as applicable.

Board of Directors

The term “Board of Directors” means the Board of Directors of the Exchange constituted 

from time to time in accordance with the CX Futures Exchange, L.P. Operating Agreement and 

the Amended and Restated Limited Liability Company Agreement of CX Futures Exchange 

Holdings, LLC, dated as of February 18, 2009.
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FMX Division

© 2010-2023 FMX Futures Exchange, L.P.

Bunched Order

The term “Bunched Order” means an Order for multiple accounts that have been combined 

into a single Order for the purpose of execution in accordance with the procedures of Rule III-13. 

Business Day

The term “Business Day” means any day other than a Saturday, Sunday or any other day 

on which banking institutions in The City of New York are authorized or required by law, 

regulation or executive order to be closed.

Cancel Order

The term “Cancel Order” means an Order that cancels fully an existing buy 

or sell order.

Cancel Replace Order

The term “Cancel Replace Order” means an order to cancel fully an existing 

buy or sell Order and replace it with a new Order for a different quantity or price.

CX Direct System

The term “CX Direct System” means the proprietary order entry and 

execution system used by the Exchange for the placement and execution of Orders or 

the collection and transmission of information relating to Contracts. Participants (and 

their Authorized Traders) will access the CX Direct System directly via the Internet.

CEA

The term “CEA” means the Commodity Exchange Act as in effect from time to time. 

CFTC

The term “CFTC” means the Commodity Futures Trading Commission, and includes any 

successor agency or authority.

CFTC Regulation

The term “CFTC Regulation” means any rule, regulation, order or directive and any 

interpretation thereof adopted from time to time by the CFTC.

Clearinghouse

The term “Clearinghouse” means CX Clearinghouse, L.P. (including its 

successors), a limited partnership organized under the laws of the State of Delaware, or 
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FMX Division

© 2010-2023 FMX Futures Exchange, L.P.

such other third-party clearing organization as the Exchange may designate in the future 

to provide clearing services with respect to any or all of its Contracts. 

Closed Contract Positions

The term “Closed Contract Positions” shall have the meaning assigned to 

such term in the Rules of the Clearinghouse.

Chief Compliance DepartmentOfficer

The term “Compliance Department” has the meaning set forth in Rule VII1(c).

Compliance Director

The term “Chief Compliance DirectorOfficer” means an individual appointed by the 

Exchange who (i) fulfills the role of chief regulatory officer, (ii) does not have a relationship with 

the Exchange or any parent or subsidiary thereof of a type described in Rule II-6X-5(b), (ii) is 

knowledgeable about futures trading and futures market operations as well as CFTC Regulations, 

and (iii) reports directly to the Regulatory Oversight Committee.

Clearing Member

The term “Clearing Member” means any FMX Participant that is a member of LCH 

Limited and is authorized pursuant to the Rules of LCH Limited to clear trades entered on the 

FMX Division.

Combination Order

The term “Combination Order” means an Order entered into the Exchange Trading System 

for more than one Contract that is to be executed jointly at a single price. A Combination Order 

consists of a bid(s) and/or offer(s) for more than one Contract on the same, or a related, underlying 

product. A Combination Order may be one of a type of Order commonly referred to as an intermarket or intra-market (calendar) spread, pack, bundle, strip or another combination of orders 

permitted by the Exchange to be entered as a Combination Order.

Compliance Department

The term “Compliance Department” has the meaning set forth in XIV-1(c). 

Contract

The term “Contract” means any forward, swap, FutureFutures or option (including an 

Option on Futures), and any other agreement, contract or transaction, which has been approved by 

the Exchange as generally eligible for trading as either a CX Division Contract or an FMX Division 

Contract on the Exchange pursuant to these Rules.
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FMX Division

© 2010-2023 FMX Futures Exchange, L.P.

Contract Profit or Loss Amounts 

The term “Contract Profit or Loss Amounts” shall have the meaning 

assigned to such term in the Rules of the Clearinghouse. 

Contract Rules

The term “Contract Rules” means, with respect to any CX Division Contract or FMX 

Division Contract, the rules or other trading protocols containing specifications for such CX 

Division Contract or FMX Division Contract, as adopted, amended, supplemented or otherwise 

modified from time to time by the Exchange.

Control

The term “Control” means the power to exercise a controlling influence over the 

management or policies of a Person, unless such power is solely the result of an official position 

with such Person. Any Person who owns beneficially, directly or indirectly, more than 20% of the 

voting power in the election of directors of a corporation, or more than 25% of the voting power 

in the election of directors of any other corporation which directly or through one or more Affiliates 

owns beneficially owns more than 25% of the voting power in the election of directors of such 

corporation, shall be presumed to control such corporation. The terms “controlling” or 

“controlled” shall have meanings correlative to the foregoing.

Control Desk

The term “Control Desk” means the Exchange staff that supervise the proper operation of 

the Exchange Trading System and the trading market in real time at all times that the market is 

open for trading.

Customer

The term “Customer” means any person who uses an FCM or Introducing Broker as agent 

in connection with trading on the FMX Division and includes any Commodity Pool Operator or 

Commodity Trading Advisor trading as agent for a beneficial owner.

Customer Account 

The term “Customer Account” means any Trading Account carried by an FMX Participant 

that is an FCM or Introducing Broker for a Customer who is not, and is not affiliated with, the 

FMX Participant. 

Customer Order

The term “Customer Order” means an Order submitted by an FMX Participant acting as 

agent on behalf of a Customer or an order submitted by an Direct Access Customer.
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FMX Division

© 2010-2023 FMX Futures Exchange, L.P.

CX Division Contract

The term “CX Division Contract” means a Contract listed for trading on the CX Division 

and which is designated to be cleared by CX Clearinghouse, L.P. 

Direct Access Customer

The term “Direct Access Customer” means any Customer of an FMX Participant that uses 

a User ID to access the Exchange Trading System directly. For the avoidance of doubt only an 

FMX Participant that is an FCM may sponsor a Direct Access Customer’s direct access. Direct 

Access Customers may not place Orders on behalf of Customers.

Director of Hearings

The term “Director of Hearings” means the individual appointed by the NFAChief 

Compliance Officer on behalf of the Exchange from time to time to act as its director of hearings.

Disciplinary Panel

The term “Disciplinary Panel” has the meaning set forth in Rule VIIRuleXIV-9.

DPM

The term “DPM” means any designated primary market maker approved by 

the Exchange from time to time in accordance with, and with the duties and 

responsibilities set forth in, Rule V-11.

Equilibrium Price

The term “Equilibrium Price” means the price of a Contract determined in 

accordance with the application of the Exchange’s proprietary pricing algorithm, as 

described in Rule IV-23.

EFP

The term “EFP” means any exchange for physical transaction entered into 

in accordance with Rule IV-15, a component of which is not executed on the Exchange 

and a component or all of which involves a Contract.

EFS

The term “EFS” has the meaning set forth in Rule IV-17(a).

Emergency

The term “Emergency” means any occurrence or circumstance that, in the opinion of the 

Board of Directors, requires immediate action and threatens or may threaten the fair and orderly 
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FMX Division

© 2010-2023 FMX Futures Exchange, L.P.

trading in, or the liquidation of or delivery pursuant to, any Contract. An Emergency may include, 

without limitation, any of the following:

(a) Any manipulative activity or attempted manipulative activity;,

(b) Any actual, attempted or threatened corner, squeeze, congestion or undue 

concentration of positions;,

(c) Any circumstance that may materially adversely affect the performance of 

Contracts, including any failure of the payment system;,

(d) Any action taken by the Federal or any foreign government, any other 

governmental body, or any other exchange or trading facility (foreign or domestic), in each case 

that may have a direct adverse effect on trading on the Exchange;,

(e) Any circumstance that may have a severe, adverse effect upon the physical 

functions of the Exchange, including fire or other casualty, bomb threats, terrorist acts, substantial 

inclement weather, power failures, communications breakdowns, computer system breakdowns, 

malfunctions of plumbing, heating, ventilation and air conditioning systems and transportation 

breakdowns;,

(f) The bankruptcy or insolvency of any Participant or the imposition of any 

injunction or other restraint by any government agency, court or arbitrator upon a Participant, that 

may affect the ability of such Participant to perform on its Contracts; ,

(g) Any circumstance in which it appears that any Participant or any other Person 

has failed to perform its Contracts, is insolvent, or is in such financial or operational condition or 

is conducting business in such a manner that such Person cannot be permitted to continue in 

business without jeopardizing the safety of other Participants, the Exchange, LCH Limited or the 

CX Clearinghouse;, and

(h) Any other unusual, unforeseeable and adverse circumstance with respect to 

which it is impracticable for the Exchange to submit in a timely fashion a reviewable Rule to the 

CFTC.

End of Business Day 

The term “End of Business Day” means 5:00 P.M. local time in the city of New York on 

each Trading Day. 

End of Trading

The term “End of Trading” means 5:00 P.M.3:00 P.M. local time in the city of New York

on each Trading Day or such other time as the Exchange may from time to time prescribe on its 

website or with respect to a specific Contract in the Contract Rules. The End of Trading is the 

time as of which such actions as are specified in thesethe Rules of the Exchange or the relevant 
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Contract Rules as taking place at the end of a Trading Day, such as determination of the daily 

Settlement Prices, will occurtake place.

Entity

The term “Entity” means any Person other than a natural person (e.g., a corporation, 

partnership, sole proprietorship or trust).

Exchange

The term “Exchange” means FMX Futures Exchange, L.P. (including its successors), a 

limited partnership organized under the laws of the State of Delaware, and when used with 

reference to the administration of any Rule of the Exchange, means either the Board of Directors 

or the Officer, employee, agent, committee or delegee to whom appropriate authority to administer 

such provision has been delegated by the Board of Directors.

Exchange Official

The term “Exchange Official” means any Officer of, or individual employed directly by, 

the Exchange.

Exchange Trading System

The term “Exchange Trading System” means the proprietary order entry and execution 

systems used by the Exchange for the placement and execution of orders or the collection and 

transmission of information relating to trading on the CX Division or the FMX Division.

Executive Committee

The term “Executive Committee” refers to a group of directors appointed to act on behalf 

of, and within the powers granted to them by, the Board of Directors. 

FCM

The term “FCM” means any Person registered with the CFTC as a futures commission 

merchant.

First Trading Day

The term “First Trading Day” means the first Trading Day on which the relevant Contract 

trades on the Exchange, as describedspecified in the applicable Contract Rules.

FMX Division Contract

The term “FMX Division Contract” means a Contract listed for trading on the FMX 

Division and which is designated to be cleared by LCH Limited. 
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Floor TraderFMX Participant

The term “Floor TraderFMX Participant” means anya Participant who (i) is registered 

as a floor trader under the CEA, or (ii) has a pending application for such registrationthat 

trades as agent for its Customer or for the Participant’s proprietary account in trading on the FMX 

Division.

Funds Deposit Request

The term “Funds Deposit Request” means a Participant’s written or 

electronic authorization to withdraw and transmit funds from such Participant’s bank 

account including all information required to give effect to such withdrawal and 

transmission.

FutureFutures

The term “FutureFutures” means any contract for the purchase or sale of any commodity 

or financial instrument for future delivery or settlement, as the case may be.

General Partner

The term “General Partner” means the general partner of the Exchange.

Hearing Panel Committee

The term “Hearing Panel Committee” means the Exchange committee whose members 

are drawn from the NFA’s Hearing Committeethat hears and adjudicates disciplinary matters 

under Chapter XIV of these Rules.

Iceberg Order

The term “Iceberg Order” has the meaning set forth in Rule III-4(b).

Independent Software Vendor

The term “Independent Software Vendor” means a person that offers software, hardware, 

applications or devices that are capable of direct or indirect interface with, connection to or use of 

any of the FMX Division’s trading facilities.

Last Trading Day

The term “Last Trading Day” means the last Trading Day on which the relevant Contract 

trades on the Exchange, as describedspecified in the applicable Contract Rules.
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Limit OrderLCH Limited

The term “Limit Order” has the meaning set forth in Rule IV-5(i).LCH Limited” means 

the derivatives clearing organization registered with the CFTC that the Exchange has designated 

to provide clearing services with respect to FMX Division Contracts.

Limited Liability Company Agreement

Market Data

The term “Limited Liability Company Agreement” means the then current Limited 

Liability Company Agreement of FMX Futures Exchange Holdings GP, LLC, as amended, 

restated, supplemented or otherwise modified from time to time.Market Data” means any 

and all information relating to Orders or transactions on the Exchange Trading System, including 

Last Sale Information, information on bids and offers, any other data derived from such 

information, volume information, the format and presentation of any such data or information, and 

transmissions of such data or information to Participants, Market Data Vendors and other persons.

Market MakerTaker

The term “Market MakerTaker” means any Participant that has been appointedidentified

by the Exchange to performreceive certain market-making functionsbenefits with respect to one 

or more specified Contracts pursuant to an agreement between such Participant andobjective 

criteria established by the Exchange. 

Market Order

The term “Market Order” has the meaning set forth in Rule IV-5(ii).

Matched Trade

The term “Matched Trade” has the meaning set forth in Rule IV-4XXII-10(h).

Master Order BookMatching Algorithm

The term “Master Order Book” means the book maintained by the Exchange 

containing all bids and offers on Contracts entered in an Opening Auction for such 

Contracts or in continuous trading market with respect to such Contract.Matching 

Algorithm” means the process to match an aggressing Order against one or more resting orders. 

The Exchange shall determine the Matching Algorithm implemented for each Contract it lists for 

trading from among the following. The Matching Algorithm used shall be specified in the terms 

and conditions of the Contract:

• FIFO – First In First Out – FIFO matches the best price first, then if multiple orders 

exist at the same price, the oldest (first entered) Order is matched first.
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• Pro-Rata – Pro-Rata matches best price first then, if multiple Orders exist in the order 

book at the same price, a pro-rated percentage of the resting Orders (i.e., each resting 

order’s quantity divided by the total resting quantity at the price level), with all fills 

rounding down to the nearest integer that is at least two. Excess quantity is allocated 

according to FIFO. 

• Pro-Rata with TOP – A Pro-Rata with TOP Order matches an incoming order with the 

first order resting at any price level. The remainder of the incoming order will match 

Pro-Rata with the remaining orders at that price level. A minimum quantity may be 

applied to TOP Orders for a Contract. 

Message Traffic 

The term “Message Traffic” means electronic transmissions of orders, trade reports and 

other messages entered into the Exchange Trading System by a Participant, Responsible Trading 

Agent or Direct Access Customer or sent to a Participant, Responsible Trading Agent or Direct 

Access Customer by the Exchange Trading System. Depending on the context, Message Traffic 

may refer to one-way or two-way transmissions.

NFA

The term “NFA” means the National Futures Association, and includes any successor 

organization. 

No Bust Range 

The term “No Bust Range” means the range of prices for a Contract specified in the 

Contract’s Rules within which a trade submitted for review and cancellation may not be cancelled. 

The center point of the No Bust Range is the most recent market price for that contract as 

determined by the Exchange’s Designee in accordance with Rule III-10. 

Officer

The term “Officer” shall have the meaning ascribed to it in Rule IIX-8.

Open Contract Positions

The term “Open Contract Positions” shall have the meaning assigned to 

such term in the Rules of the Clearinghouse.

Opening Auction

The term “Opening Auction” means a two-sided, single price auction 

conducted by the Exchange on the First Trading Day with respect to any Contract at the 

times specified in the applicable Contract Rules for the purpose of determining the 

Equilibrium Price with respect to the applicable Contract.
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Operating Agreement

The term “Operating Agreement” means the then current Limited Partnership Agreement 

of the Exchange, dated as of November 14, 2006, as amended, restated, supplemented or 

otherwise modified from time to time.

Option on Futures

The term “Option on Futures” means any optiona Contract which gives the holder the 

right, but not the obligation, to buy or sell any Future traded subject to the Rules of the 

ExchangeFutures contract at the option’s strike price on or before the option's expiration date. 

Order

The term “Order” means any orderan instruction to enter a bid or an offer to buy or sell a 

Contract on or subject to theExchange Rules of the Exchange.

Original Margin

The term “Original Margin” shall have the meaning assigned to such term 

in the Rules of the Clearinghouse.

Participant

The term “Participant” means any Person that has been granted, and continues to have, 

Trading Privileges, or otherwise remains to enter Orders into the Exchange Trading System for 

CX Division Contracts (“CX Participant”) or FMX Division Contracts (“FMX Participant”) on or

subject to the jurisdictionRules of the Exchange under these Rules.

Participant Clearing Account

The term “Participant Clearing Account” means, with respect to each 

Participant, the account established and maintained by such Participant at the 

Clearinghouse through which the Participant will hold, and the Clearinghouse will 

maintain and monitor, Available Funds, Open Contract Positions, Closed Contract 

Positions, Contract Profit or Loss Amounts and the corresponding margin requirements, 

if any, in connection with Open Contract Positions entered into through the Participant’s 

Trading Account.

Passwords

The term “Passwords” has the meaning set forth in Rule VXII-9(b).

Person

The term “Person” means any natural person, association, partnership, limited liability 

company, joint venture, trust or corporation.
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Position Accountability

The term “Position Accountability” shall have the meaning ascribed to it in Rule XI-3. 

President

The term “President” means the individual appointed by the Board of Directors from time 

to time to serve as president of the Exchange.

Public Director

The term “Public Director” has the meaning ascribed to it in Rule IIX-6(b), provided that 

such definition shall be amended from time to time as may be necessary to conform to any 

amendments or modifications to the term "“Public Director"” set forth in the CFTC Regulations as 

the CFTC may adopt from time to time.

Referred ParticipantQualified Market Maker

The term “Referred Participant” means a Person that has been referred or solicited 

by a Referring Participant to become a Participant of the Exchange or whose Orders have 

been solicited by a Referring Participant. Qualified Market Maker” means a Participant or 

Direct Access Customer or Customer that provides liquidity on the Exchange under the terms of 

an Incentive Program established under Chapter VI.

Referring Participant Regulatory Oversight Committee

The term “Referring Participant” means a Participant that has been approved by 

the Exchange to solicit or refer another Person to become a Participant (the Referred 

Participant) or to solicit a Referred Participant’s Orders, but not to enter such Referred 

Participant’s Orders into the Trading System on behalf of that Referred 

Participant.Regulatory Oversight Committee” means the committee of the Board of Directors 

constituted in accordance with Rule X-4. 

Regulatory Services Agreement

The term “Regulatory Services Agreement” shall have the meaning ascribed to it in Rule 

IIX-12.

Regulatory Oversight CommitteeReserve Quantity

The term “Regulatory Oversight Committee” means the committee of the Board of 

Directors constituted in accordance with Rule II-4.Reserve Quantity” means the amount of 

any Order that is not exposed to market participants but is entered coterminous with, and available 

for purchase or sale upon the exhaustion of, the displayed Order quantity in connection with 

Iceberg Orders.

Responsible Trading Agent
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The term “Responsible Trading Agent” shall have the meaning ascribed to it in Rule 

V-9(a)means any natural person who is authorized by a Participant or by a Direct Access Customer 

to place Orders on the Exchange Trading System.

Rules of the ClearinghouseExchange

The term “Rules of the Exchange” means any rule adopted or amended, from time to time, 

by the Exchange.

Rules of LCH Limited

The term “Rules of the ClearinghouseLCH Limited” means the constitutive documents 

and any rules, regulations, interpretations, stated policies or instruments corresponding to any of 

the foregoing, in each case as adopted or amended from time to time by the Clearinghouse 

relating to the Exchange or any or all of theLCH Limited and applicable to Contracts for which 

such Clearinghouse has been designated by the Exchangetraded on the FMX Division.

Rules of the Exchange

The term “Rules of the Exchange” means any Rule adopted or amended, 

from time to time, by the Exchange. 

Secretary

The term “Secretary” means the individual appointed by the Board of Directors from time 

to time to serve as secretary of the Exchange.

Settlement Price

The term “Settlement Price” means, with respect to any Contract, the price established 

either at the end of each Trading Day or at contract expiration, as the context otherwise requires, 

in accordance with Rule III-17 Daily Settlement Price Determination and any additional 

procedures from time to time specified by the Exchange.

Supervised Persons

The term “Supervised Persons” shall mean any directors, officers or 

employees or Authorized Traders of any Participant.

Trading Account

The term “Trading Account” shall mean, as applicable, with respect to each Participant, 

each account established and maintained by such Participant at the Exchange (1) through which 

the Participant’s Authorized TradersResponsible Trading Agents will trade CX Division 

Contracts and(“CX Trading Account”) or (2) through which the Exchange will monitor the 

Open Contract Positions and Closed Contract Positions of such Participant. Participant’s 
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FMX Division

© 2010-2023 FMX Futures Exchange, L.P.

Responsible Trading Agents and Direct Access Customers will trade FMX Division Contracts 

(“FMX Trading Account”), respectively.

Trading Day

The term “Trading Day” means, with regard to CX Division Contracts, any day on which 

the Exchange is open and available for the trading ofCX Division Contracts, with regard to FMX 

Division Contracts, any day on which the Exchange is open and available for trading FMX 

Division Contracts and the CX Clearinghouse or LCH Limited, respectively, is open and available 

for the clearing of applicable Contracts.

Trading Hours

The term “Trading Hours” means, with respect to any Contract, the hours during which the 

Exchange is regularly open for the trading of such Contract, as set forth in the relevant Contract 

Rules.

Trading Privileges

The term “Trading Privileges” means, with respect to Participants and their respective 

Authorized TradersResponsible Trading Agents and, as applicable, their Direct Access 

Customers, the right (a) to transmitto enter Orders for certain or all CX Division Contracts (“CX 

Trading Privileges”) or FMX Division Contracts (“FMX Trading Privileges”) in electronic form 

directly to the CX Direct System and (b) to enter into the CX Direct System EFPs and Block 

Trades involving certain or all Contracts, subject to the specific requirements and 

conditions applicable theretoExchange Trading System.

Transfer Trade

The term “Transfer Trade” refers to moving a position from an account carried on the books 

of one Clearing Member to an account carried on the books of a different Clearing Member 

provided that both accounts have the same beneficial owner or, in the case of transfers between 

accounts with different beneficial owners, the movement resolves an error trade in accordance with 

Rule III-10.

Treasurer

The term “Treasurer” means the individual appointed by the Board of Directors from time 

to time to serve as treasurer of the Exchange.

User ID

The Term “User ID” means the unique identifier provided by the Exchange to a 

Responsible Trading Agent that provides access to the Exchange Trading System.
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Vice President

The term “Vice President” means any individual appointed by the Board of Directors from 

time to time to serve as a vice president of the Exchange.

I-2 I-2. Rules of Interpretation

For all purposes of these Rules of the Exchange, except as otherwise expressly provided 

herein or unless the context otherwise requires:

(a) the terms defined in these Rules of the Exchange include the plural as well as 

the singular and vice versa;,

(b) words importing gender include all genders;,

(c) any reference to a Chapter, Rule or Appendix refers to a Chapter or Rule of, or 

Appendix to, these Rules; of the Exchange,

(d) any reference to these Rules refers to these Rules of the Exchange, including 

all Appendices hereto, and the words herein, hereof, thereto, hereto and hereunder and words of 

similar import refer to these Rules and their appendices as a whole and not to any particular Part, 

Chapter, Rule, appendix or any other subdivision;,

(e) references to days, months and years refer to calendar days, months and years, 

respectively;,

(f) all references herein to “including” shall be deemed to be followed by the words 

“without limitation,”; 

(g) any term used herein that is defined in the CEA or CFTC Regulations shall 

have the meaning assigned to it therein;, and

(h) all references herein to a time of day refer to local time in The City of New 

York.

I-3 I-3. Effect of Titles

The titles of these Rules have been inserted for convenience of reference only and shall not 

affect the meaning of these Rules.

I-4 I-4. Amendment of Rules

New Rules of the Exchange may be adopted, and existing Rules of the Exchange may be 

amended or repealed, by the Board of Directors. All such new Rules of the Exchange, amendments 

or repeals shall become effective on such date (after any required filingcertification with, or 

approval thereof by, the CFTC) as may be determined by the Exchange.
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FMX Division

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I-5 I-5. ContractHierarchy of Interpretation of Rules

(a) The Rules are divided into three Parts. The rules specific to the FMX Division are 

included in Part A, the General Rules of the Exchange are included in Part B, and the rules specific 

to the CX Division are located in Part C. Notwithstanding any provision of these Rules to the 

contrary, in the event of any conflict between a Rule in Part A governing the FMX Division and a 

General Rule of the Exchange in Part B of this Rulebook, the Part A Rule shall govern, or in the 

event of any conflict between a Rule in Part C governing the CX Division and a General Rule of 

the Exchange in Part B of this Rulebook, the Part C Rule shall govern.

(b) Notwithstanding any provision of these Rules to the contrary, the Contract 

Rules with respect to a particular Contract shall govern the applicability of these Rules to 

trading in such Contract and, in the event of any conflict between these Rules and the 

Contract Rules, thea Rule in Parts A, B or C of this Rulebook and a specific Contract Rule in 

Chapter V for FMX Division Contracts or Chapter XXV for CX Division Contracts, the specific

Contract Rules shall govern with respect to trading in the relevant Contract.

(c) Notwithstanding the generality of Rule I-5(a) or anything to the contrary in 

Rule III-3II-5, the Contract Rules for each individual Contract may specify: whether such Contract 

may be settled via cash settlement, physical delivery of the underlying commodity, or by any 

other means, as applicable.

(i) different classes of Participants eligible to trade such Contracts. 

Each such class of Participants shall have the rights and obligations 

specified by the Contract Rules for each such Contract; and

CHAPTER II

ADMISSION TO TRADE CONTRACTS

II-1 FMX Participants and FMX Trading Accounts

(a) Each FMX Participant, its Responsible Trading Agents and Direct Access 

Customers shall have the right to access the Exchange Trading System, including the right to place 

Orders for FMX Trading Accounts as provided in this Chapter.

(b) Upon application to the Exchange and an explanation of the reasons and uses 

therefore, the Exchange in its discretion may permit an FMX Participant to maintain more than 

one proprietary FMX Trading Account, provided however, FMX Participants need not provide an 

explanation for maintaining a proprietary account and one or more Customer accounts.

(c) In the event that the Exchange determines that FMX Participants may be permitted 

to maintain more than one Trading Account as described in paragraph (b) of this Rule, each FMX 

Participant shall designate each of its Responsible Trading Agents or Direct Access Customers, as 

the case may be, to trade any or all of the FMX Participant’s Customer accounts, provided that 

an FMX Participant shall at all times be responsible for all of its FMX Trading Accounts as set 
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forth under these Rules, including any providing direct access to an Direct Access Customer, as 

provided under Rule II-3. 

(d) Subject to the requirements and procedures set forth in these Chapters II and III, 

FMX Trading Privileges shall be offered to all applicants eligible to be FMX Participants as 

determined by the Exchange, subject to any limitations or restrictions imposed by the Exchange. 

FMX Trading Privileges are non-transferable, non-assignable, may not be sold or leased, and are 

specifically limited to the category of FMX Division Contracts to which such FMX Trading 

Privileges are granted.

(e) By virtue of obtaining FMX Trading Privileges, an FMX Participant shall not 

obtain any equity or other interest in the Exchange, including voting rights or rights to receive any 

dividends or other distributions, whether arising from a dissolution, merger, consolidation 

involving the Exchange or otherwise, unless specifically so provided by agreement with the 

Exchange.

II-2 Responsible Trading Agents

(a) Each FMX Participant or Direct Access Customer, as applicable, shall appoint one 

or more individuals to act as a Responsible Trading Agent.

(b) FMX Participants or Direct Access Customers may appoint a third party as their 

Responsible Trading Agent, pursuant to a power of attorney or other instrument, in a form 

prescribed or approved by the Exchange, providing such third party with discretionary trading 

authority with respect to the FMX Participant’s Trading Account.

(c) Each FMX Participant may at any time revoke an authorization granted by it to any 

Responsible Trading Agent or Direct Access Customer by providing written notice of such 

revocation to the Exchange, such written notification may be by electronic mail. An FMX 

Participant shall take immediate measures appropriate to ensure that, after such revocation, (i) the 

affected Responsible Trading Agent or Direct Access Customer shall not have access to the 

Exchange Trading System or (ii) the affected Responsible Trading Agent or Direct Access 

Customer shall not utilize its User ID, and the Exchange shall act promptly, but in any event within 

one (1) Business Day of receiving notice from the FMX Participant, to disallow Order entry by 

any such Person.

(d) Without limiting the foregoing, each Responsible Trading Agent will consent, in a 

form satisfactory to the Exchange, to abide by these Rules and Applicable Law prior to accessing 

the Exchange Trading System, and each FMX Participant will ensure on an ongoing basis that 

(i) none of its Responsible Trading Agents or 

Direct Access Customers is subject to a disqualification 

pursuant to Section 8a(2) of the CEA (unless an appropriate 

exemption has been obtained with respect thereto), 
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(ii) each of its Responsible Trading Agents will 

be technically proficient, 

(iii) each of its Responsible Trading Agents will 

conduct its business in a fair and equitable manner, and 

(iv) each of its Responsible Trading Agents will 

conduct its business in accordance with these Rules.

II-3 Direct Access Customers

(a) Subject to Rule XII-13, each FMX Participant may provide one or more of its 

Customers direct access to the Exchange Trading System, and any such Customer will become a 

Direct Access Customer for purposes of these Rules and shall be entitled to exercise FMX Trading 

Privileges and to access the Exchange Trading System directly, subject to the terms and conditions 

of these Rules.

(b) Any FMX Participant wishing to designate a Direct Access Customer shall notify 

the Exchange and must obtain from each Direct Access Customer an agreement, in the form 

specified by the Exchange, pursuant to which, among other things, the Direct Access Customer 

agrees to comply with these Rules and Applicable Law. Each Direct Access Customer must satisfy 

such requirements as may be prescribed by the Exchange from time to time and shall be subject to 

the disciplinary authority of the Exchange and possible fine or restriction or revocation of Trading 

Privileges.

(c) Direct Access Customers of any FMX Participant may access the Exchange 

Trading System directly, provided that the following provisions of this Rule II-3 are satisfied:

(i) The FMX Participant must be an FCM and 

the Customer Account must be with the FMX Participant.

(ii) The FMX Participant must provide to the 

Exchange, in a form acceptable to the Exchange, evidence of 

a guaranty from a Clearing Member for the Direct Access 

Customer’s account or an omnibus account in the name of the 

FMX Participant through which the Direct Access Customer 

is trading, assuring the financial performance of all trades and 

positions for that account.

(iii) The FMX Participant shall provide to the 

Control Desk such information as shall be requested pertaining 

to the Direct Access Customer for which access is sought, 

including but not limited to, name, address, account number 

assigned by the FMX Participant, any give-up information, 

email address and telephone numbers. The FMX Participant 

shall identify the Direct Access Customer’s Administrator. 
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(iv) The Control Desk, once it is satisfied that all 

requested information has been provided, shall issue to the 

FMX Participant’s Administrator a User ID and Password or 

identifiers and Passwords for use by such Direct Access 

Customer.

(v) Only once all requirements are met, risk 

controls have been established, and the Exchange is satisfied 

in its sole discretion with the information provided shall the 

Exchange enable the User ID to be used by the Direct Access 

Customer for purposes of trading on the Exchange Trading 

System. Notwithstanding the foregoing, the FMX Participant 

shall remain responsible in accordance with these Rules for the 

acts and omissions of any of its Direct Access Customers, 

regardless of the level of risk controls set by the Clearing 

Member and the approval of such risk controls by the 

Exchange.

(d) The Exchange may deny (or may condition) or revoke the grant of Trading 

Privileges to any Person:

(i) who is a Direct Access Customer or an FMX 

Participant through which a Direct Access Customer or 

Customer trades and, in any such case, any such Direct Access 

Customer or Customer maintains a position in any Contract 

that, when considered in light of the other positions maintained 

by the FMX Participant through which such Direct Access 

Customer or Customer trades and any other factors that the 

Exchange reasonably deems relevant, including, as applicable, 

(A) the positions maintained by such FMX Participant, such 

FMX Participant’s Responsible Trading Agents and such 

FMX Participant’s other Customers, (B) the required financial 

information provided by such FMX Participant and (C) the 

level of margin maintained by such FMX Participant at such 

FMX Participant’s Clearing Member, the Exchange 

reasonably believes could jeopardize the financial safety of 

such FMX Participant or any of such FMX Participant’s other 

Customers.

(ii) For the avoidance of doubt, any limitation, 

suspension or revocation of Trading Privileges pursuant to 

Rule II-3(d), in the sole discretion of the Exchange,

(A) may take the form of (x) a full suspension or revocation of 

Trading Privileges, (y) a requirement that the positions at issue be 
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immediately liquidated in full or reduced to a reasonable level to be set by 

the Exchange as a condition to the Trading Privileges remaining in effect or 

(z) a prohibition on the use of such Trading Privileges in respect of the 

trades of any Customer identified by the Exchange;

(B) may be applied to the Trading Privileges of the Direct 

Access Customer or FMX Participant at issue, such Direct Access 

Customer’s FMX Participant or the other Direct Access Customers and 

Responsible Trading Agents of such FMX Participant, in each case, as 

deemed reasonably necessary by the Exchange for the protection of such 

Persons and other FMX Participants of the Exchange; and

(C) in the case of any suspension, revocation or limitation of the 

Trading Privileges of any Responsible Trading Agents or Direct Access 

Customer of any FMX Participant pursuant to this Rule II-3 may also 

suspend, revoke or limit the Trading Privileges of such FMX Participant or 

such FMX Participant’s Responsible Trading Agents or Direct Access 

Customers, as the Exchange deems necessary to protect its other FMX 

Participants and the integrity of the Exchange Trading System. 

II-4 FMX Trading Privileges

(a) For purposes of these Rules, any reference to (i) the FMX Trading Privileges of an 

FMX Participant shall also be deemed to refer and apply to the exercise of Trading Privileges by 

any of such FMX Participant’s Responsible Trading Agents and Direct Access Customers, (ii) an 

FMX Participant submitting or receiving Orders, bids, offers or Message Traffic into or from the 

Exchange Trading System or trading subject to Exchange rules, shall be deemed also to refer and 

apply to any such actions engaged in by any of such FMX Participant’s Responsible Trading 

Agents and Direct Access Customers and (iii) the knowledge of, or matters known to, any FMX 

Participant shall be deemed also to refer to and include the knowledge of, or matters known to, its 

Responsible Trading Agents, other personnel and Direct Access Customers.

(b) Each Direct Access Customer shall be deemed to be a “member” of the Exchange 

for all purposes under the CEA.

II-5 Eligibility

(a) None of BGC Group, Inc., Cantor Fitzgerald, L.P., or any Person Affiliated with 

either of the foregoing may become an Asset Manager Customer, Customer, Direct Access 

Customer, FMX Participant, or Qualified Market Maker, and no Person may designate the 

employees or agents of any of the foregoing as a Responsible Trading Agent.

(b) To be eligible to become an FMX Participant, applicants initially and on a 

continuing basis thereafter, must (i) satisfy such financial criteria as may be prescribed by the 

Exchange from time to time; (ii) have sufficient technical and operational capabilities to fulfill any 

other obligations applicable to FMX Participants, their Responsible Trading Agents or Direct 
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Access Customers as may from time to time be required by the Exchange; and (iii) satisfy such 

other requirements or criteria as may from time to time be adopted by the Exchange.

(c) In considering any applicant for status as an FMX Participant, Responsible Trading 

Agent, or Direct Access Customer, the Exchange may request additional information, or employ 

such other means that it deems desirable or appropriate, to ascertain relevant facts bearing on the 

applicant’s qualifications.

(d) The Exchange may limit an FMX Participant to trading specified FMX Division 

Contracts based upon financial, regulatory or other criteria established by the Exchange that are 

impartial and transparent and that are applied in a non-discriminatory manner. 

(e) An FMX Participant may trade on the CX Division only if also admitted as a CX 

Participant.

(f) The Exchange in its sole discretion may deny (or may condition) the grant of FMX 

Trading Privileges of any FMX Participant, Responsible Trading Agent or Direct Access 

Customer:

(i) if such Person is unable satisfactorily to 

demonstrate a capacity to adhere to all applicable Rules of the 

Exchange, Rules of LCH Limited and CFTC Regulations, 

including, to the extent applicable, those concerning recordkeeping, reporting, finance and trading procedures,

(ii) whether such Contract may be settled via 

cash settlement, physical delivery of the underlying 

commodity, or by any other means, as applicable.if such 

Person would bring the Exchange into disrepute, or

(iii) for such other causes as the Exchange may 

determine from time to time.

(g) The Exchange in its sole discretion may condition or revoke an FMX Participant’s 

Trading Privileges or, in the case of a Responsible Trading Agent or Direct Access Customer 

condition or revoke its association with an FMX Participant or its access rights, respectively, if 

any of the circumstances specified in the preceding paragraph (e) exist with respect to such FMX 

Participant, Responsible Trading Agent, or Direct Access Customer or if such FMX Participant, 

Responsible Trading Agent or Direct Access Customer:

(i) fails to meet any of the qualification 

requirements for FMX Trading Privileges or association or 

direct access after such FMX Trading Privileges, association 

or direct access have been approved;
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(ii) fails to meet any condition placed by the 

Exchange on such FMX Trading Privileges, association; or 

direct access; or 

(iii) violates any agreement with, or Rule of, the 

Exchange.

II-6 Application for FMX Trading Privileges

(a) Each application to become an FMX Participant or a Direct Access Customer shall 

be in such form as may from time to time be prescribed by the Exchange. Each applicant to become 

an FMX Participant or a Direct Access Customer shall promptly update the applicable application 

materials if any of the information provided therein becomes inaccurate or incomplete. The 

Exchange shall act upon, and approve or disapprove, any such application without unreasonable 

delay.

(b) Each applicant to become an FMX Participant or Direct Access Customer shall:

(i) submit to the Exchange executed forms of all 

applicable application documents;

(ii) pay to the Exchange such initial fees as may 

be prescribed by the Exchange from time to time; and 

(iii) agree in written or electronic form to abide by 

these Rules and Applicable Law.

(c) Upon the Exchange’s approval of an applicant’s FMX Participant application and 

upon the Exchange’s confirmation that the initial fee payable by the applicant, as may be 

prescribed, has been paid to the Exchange, the applicant shall become an FMX Participant or a 

Direct Access Customer within the participation category or categories so approved and obtain 

FMX Trading Privileges applicable to that category or categories.

(d) Any Person who has been denied FMX Trading Privileges or granted only 

conditional FMX Trading Privileges pursuant to this Rule II-6 and any Person who is not permitted 

to keep its FMX Trading Privileges or whose FMX Trading Privileges are conditioned pursuant to 

this Rule II-6 may appeal the Exchange’s decision in accordance with the provisions of Chapter 

XIV relating to disciplinary proceeding appeals.

II-7 Front-End User Interface and Independent Software Vendors

(a) Access to the Exchange by any FMX Participant using the front-end interface (or 

any other system) of an Independent Software Vendor shall be impartial, subject to Exchange 

criteria that are transparent and applied in a non-discriminatory manner. Each FMX Participant 

shall be solely responsible for ensuring that any front-end interface connecting to the Exchange 

Trading System that is not provided by the Exchange, and that is used by the Participant, its 
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Responsible Trading Agents or Direct Access Customers, is in compliance, in design and 

operation, with Applicable Law and these Rules.

(b) Any Independent Software Vendor wishing to access the Exchange may do so if it 

demonstrates that it is able to meet the technical, operational and other conditions set forth by the 

Exchange. Such conditions shall apply equally to all Independent Software Vendor applicants. All 

Independent Software Vendors receiving equal access to, or services from, the Exchange shall be 

subject to comparable fee structures.

II-8 Financial and Risk Management Requirements for an FMX Participant 

that is an FCM; Requirements for an FMX Participant that is an 

Introducing Broker

(a) Any FMX Participant that is an FCM and/or is a Clearing Member shall be required 

to comply with the minimum financial requirements described in Section 1.17 of the CFTC 

Regulations and other Applicable Law, and deliver to the Exchange a copy of any financial 

information (including any accountant’s certifications thereon) required by Section 1.10 of the 

CFTC Regulations to be filed with the CFTC or provided to the FCM’s designated self-regulatory 

organization (the “Required Financial Information”), in each case, within the time periods 

prescribed for such filing or delivery in Section 1.10 of the CFTC Regulations. 

(b) Any Participant that is an FCM shall be required to comply with the risk 

management program requirements of CFTC Regulation 1.11.

(c) Any FMX Participant that is an Introducing Broker shall be required to comply 

with the minimum financial requirements described in Section 1.17 of the CFTC Regulations and 

other Applicable law and notify the Exchange immediately if at any time its adjusted net capital 

falls below that amount. 

CHAPTER III

FMX TRADING STANDARDS

III-1 FMX Division Contracts

(a) The Exchange shall determine which FMX Division Contracts are available for 

trading subject to the Rules of the Exchange from time to time and, subject to the provisions of 

Chapter V, approve rules containing the specifications for such FMX Division Contracts, provided

that certifications or applications with respect to such FMX Division Contracts shall be submitted 

to the CFTC as required by the CEA and CFTC Regulations.

(b) FMX Division Contracts shall be traded by an FMX Participant for its own account 

or for the account of its customers and will be cleared though LCH Limited.
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III-2 Trading Days and Trading Hours

(a) The Exchange shall from time to time determine (a) the Trading Days during any 

particular calendar year and (b) the Trading Hours with respect to any particular FMX Division 

Contract. All time references shall be based on local time prevailing in The City of New York, 

New York, unless otherwise expressly set forth in the relevant FMX Division Contract Rules. 

Opening times start on the first second of the minute cited. Closing times end on the first second 

of the minute cited. Trading Hours may vary among different FMX Division Contracts. No FMX 

Participant may make any bid or offer for, or engage in any transaction in, any FMX Division 

Contract before or after such hours.

(b) Trading will be suspended during periods the Exchange schedules for routine 

maintenance and during any announced periods of non-routine maintenance. In the event that 

trading is suspended either for routine or non-routine maintenance, notice will be given to FMX 

Participants as promptly as practicable both by posting of a notice on the Exchange’s website and 

by e-mail directly to each Participant.

(c) The Control Desk will be staffed and will operate at all times during the Trading 

Hours of any FMX Division Contract.

III-3 FMX Division Contract Order Entry 

The Responsible Trading Agents of each FMX Participant or Direct Access Customer shall 

enter Orders by electronic transmission and shall provide the information required by the Exchange 

Trading System for such FMX Division Contract. Orders must be in accordance with any 

parameters with respect to size and price as the Exchange in its discretion shall establish from time 

to time. The Exchange shall maintain an electronic record of Order entries. Each FMX Participant 

shall be responsible for any and all Orders in each of its Trading Accounts entered by any of its 

Direct Access Customers, its Responsible Trading Agents or its Direct Access Customers’ 

Responsible Trading Agents.

III-4 Acceptable FMX Division Contract Orders

The Order type or types available on the Exchange Trading System for each FMX Division 

Contract is at the discretion of the Exchange from among the following basic Order types with or 

without modification: 

(a) Basic Order types:

Cancel Order. A “Cancel Order” is an Order that cancels fully an existing buy or 

sell order.

Limit Order. A “Limit Order” is an Order to purchase or sell a Contract at a 

specified price or better. A Limit Order will be executed when entered to the extent that 

there are opposite Orders open in the Exchange Trading System, with any balance to 
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remain as an open Order until it is executed or is cancelled, or until it expires at the End of 

Trading on the Trading Day designated on such Order.

Market to Limit Order. A “Market to Limit Order” is an order that is submitted to 

execute at the current best market price including a limit to be used as the floor or ceiling 

price. If the order is only partially filled, the remainder of the order is canceled and resubmitted as a Limit Order with the limit price equal to the last price at which the filled 

portion of the order executed.

Market With Protection Order. A “Market With Protection Order” is a market order 

that is filled within a Protected Range. A Market With Protection Order enters the order 

book as a Limit Order with the limit price equal to the price prevailing in the Exchange 

Trading System at the time the Market With Protection Order is entered into the Exchange 

Trading System, plus or minus the Protected Range. The Order is executed at all price 

levels between the prevailing market price and limit price. If the Order is not completely 

filled, the unfilled quantity becomes a Limit Order with the limit price being set at the limit 

price of the Protected Range. 

Stop Limit Order. A “Stop Limit Order” is an Order to buy or sell a stated number 

of Contracts at the best obtainable price as soon as a user-specified stop price is reached 

but only to a user-specified limit price. A buy Stop Limit Order becomes a Limit Order 

when the Contract trades at or above the specified stop price, whereas a sell Stop Limit 

Order becomes a Limit Order when the Contract trades at or below the specified stop trice. 

Stop Limit Orders must be submitted with a specified stop price and a specified limit price.

Stop With Protection Order. A “Stop With Protection Order” is a Stop Limit Order 

that is filled within a Protected Range (as defined below). A Stop With Protection Order 

is triggered when a user-designated trigger price is traded on the Exchange Trading System. 

The Order then enters the order book as a Limit Order with the limit price equal to the 

trigger price, plus or minus the pre-defined Protected Range. The “Protected Range” is set 

by the Exchange and is typically the trigger price, plus or minus 50 percent of the No Bust 

Range for that product. The Order is executed at all price levels between the trigger price 

and limit price. If the Order is not completely filled, the remaining quantity rests in the 

Exchange Trading System at the limit price. A buy Stop With Protection Order must have 

a trigger price greater than the last traded price for the Contract. A sell Stop With 

Protection Order must have a trigger price lower than the last traded price for the Contract.

(b) Order Modifiers are:

Cancel Replace Order. A “Cancel Replace Order” is an Order to cancel the unfilled 

quantity of an existing buy or sell Order and replace it with a new Order for a different 

quantity and/or price.

Fill or Kill (FOK) Order. A “Fill or Kill Order” is executed, with one or multiple 

executions, against any existing Orders at the stated price or better, but only in the whole 

volume designated on the Order, as soon as the Order is received within a designated time 
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period. If a Fill or Kill Order cannot be executed in whole, the Fill or Kill Order shall be 

cancelled. Fill or Kill Orders must be submitted with a specified volume. Fill or Kill Orders 

may be used with the following Order types: Limit Orders and Stop Limit Orders.

Iceberg Order. An “Iceberg Order” involves matching a displayed quantity before 

filling a Reserve Quantity at a requested price level. Random display sizes can be produced 

by the Exchange Trading System within a minimum and maximum value provided by the 

user. The displayable portion of the Order will always be restricted by such parameters sent 

with the request. Reserve quantity will not be displayed, nor will any indicator be 

contained in the market data stream to expose its presence. Reserve may be used with the 

following Order types: Limit Orders and Stop Limit Orders. 

(c) Combination Orders: 

The Exchange may provide for the entry of Combination Orders into the Exchange 

Trading System. Any Combination Order may be matched against another Combination 

Order on the other side of the market provided that the Exchange Trading System maintains 

an order book for such Combination Orders. If an incoming Combination Order can be 

matched at a price more favorable to the Participant, or the Participant’s Customer if it is a 

Customer Order, entering the Combination Order by matching against Orders not in the 

Combination Order books, the Exchange Trading System, where and as possible shall 

match the incoming Combination Order against Orders for two or more Contracts which 

together match the requirements of the Combination Order; provided that such Order match 

shall not be guaranteed by the Exchange Trading System.

III-5 Information Regarding FMX Division Contract Orders

The Exchange may make information regarding FMX Division Contract Orders (including 

prices bid or offered), and any other matters it may deem appropriate available to Participants, 

Direct Access Customers and their Responsible Trading Agents and other Persons at such times 

and in such manner (whether through the Exchange Trading System, a ticker, financial information 

services or otherwise) as it may consider necessary or advisable from time to time. 

Each Participant, Direct Access Customer, Responsible Trading Agent or other Person 

receiving any such information through the Exchange Trading System is expressly prohibited from 

redistributing such information unless expressly permitted by the Exchange. Employees and 

agents of the Exchange shall have access to the offices of any Participant, its Direct Access 

Customers and each of their Responsible Trading Agents or other Persons receiving information 

through the Exchange Trading System during regular business hours and in a commercially 

reasonable manner in order to observe the compliance by such Persons of this Rule.

III-6 Pre-Execution Discussions and Cross Trades of FMX Division Contract

(a) No Person shall enter through the Exchange Trading System into a pre-discussed 

transaction or assume on its own behalf or on behalf of a Customer the opposite side of its own 

order or its Customer’s order (a “Cross Trade”), except if the following conditions have been met:
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(i) the Person is entering into both sides of a 

Customer Order on a non-discretionary basis and prior written 

blanket or transaction-specific consent has been obtained in 

respect of any relevant Customer Account and the Person 

waits for a reasonable period of time, which shall be not less 

than five (5) seconds, after the initial Order is submitted before 

submitting the opposite side Order, or 

(ii) the trade is executed by two (2) FMX 

Participants trading for the same account, or for separate 

accounts of the same beneficial ownership, where neither 

FMX Participant has knowledge of the other’s Order and there 

is no coordination or prearrangement of the Cross Trade, 

provided that the relevant FMX Participant shall be 

responsible, upon the request of the Exchange, to demonstrate 

to the reasonable satisfaction of the Exchange, that neither 

FMX Participant had knowledge of the other’s Order.

(b) No Person may enter into a pre-discussed trade except if the following condition 

has been met; the Person waits for a reasonable period of time, which shall be not less than five 

(5) seconds, after the initial Order is submitted before submitting the opposite side Order.

(c) No Person may disclose the details of any pre-execution communications with other 

parties. Furthermore, no party may take advantage of any information disclosed in pre-execution 

communication for a Cross Trade for the purpose of entering a subsequent order in the market. 

III-7 Opening and Closing Trading on the FMX Division

(a) The Exchange may from time to time adopt procedures for the daily opening or 

closing of trading in any FMX Division Contract. 

(b) The Exchange may open trading by allowing Orders to be entered into the system 

at the start of trading on any Trading Day; or 

(c) absent the Exchange adopting the procedure indicated in paragraph (b) of this Rule 

or another alternative procedure for opening trading, the following procedure will be used to open 

trading in FMX Division Contract:

(i) The Exchange Trading System will reject any 

Orders entered prior to the opening of trading. Upon the 

opening of trading, Order will have the priority in which they 

are received by the Exchange Trading System.
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III-8 Execution of Orders on the FMX Division

(a) Orders to buy or sell any FMX Division Contract are subject to the trading 

requirements specified in the relevant Contract Rules. 

(b) Unless the Exchange determines to implement another Matching Algorithm, 

namely the Pro-Rata or the Pro-Rata with TOP, all Orders are matched with each other and 

executed electronically through the Exchange Trading System in accordance with FIFO, an 

algorithm that gives first priority to Orders at the best price and priority among Orders entered at 

the same price based on their time of entry into the Exchange Trading System, with the Order first 

entered receiving first priority. Without limiting the generality of the foregoing, FIFO is based 

upon the following principles:

(i) An Order at a better price will always have 

priority over Orders at inferior prices. As among Orders at the 

same price, an Order with time priority will be executed before 

Orders that have been entered after the Order with time 

priority. An Order with time priority will not lose such priority 

if the quantity of the Order is subsequently reduced. However, 

an Order will lose its time priority if the price of the Order is 

changed.

(ii) After the commencement of Trading Hours 

on a Trading Day for a particular Contract time priority will 

be assigned to the first Order at a price that betters the best 

price prevailing when the Order is received. Only one buy 

Order and one sell Order can have time priority at any given 

time. Orders with time priority will be matched first regardless 

of their respective sizes.

(iii) An Order will not lose time priority with 

respect to Orders at the same price if and when an Order at a 

better price is entered, but it will lose price priority.

(iv) Once an Order with time priority has been 

filled, the algorithm described herein will be applied to the 

remaining Orders at the same price. Thus, the Order received 

immediately after the Order that initially had time priority will 

be assigned time priority and be the next Order to be executed 

at such price.

(c) Notwithstanding anything in these Rules to the contrary, the Exchange may at any 

time use a different Matching Algorithm for an FMX Division Contract by giving notice of such 

algorithm to all FMX Participants at least ten (10) Trading Days before such algorithm is 

implemented.
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III-9 Modification and Cancellation of Orders on the FMX Division

Any order for an FMX Division Contract that has been entered into the Exchange Trading 

System may be modified or cancelled unless and until it has been executed or has otherwise 

expired. Any such modification or cancellation requires that a Cancel Replace Order or Cancel 

Order, as the case may be, with respect to the original order be entered into the Exchange Trading 

System. Such modification or cancellation will become effective upon the issuance of an 

acknowledgement by the Exchange Trading System of the Cancel Order or Cancel Replace Order, 

as the case may be. Any Order automatically expires at the end of the Trading Hours on the Trading 

Day such order is placed, in the event of any suspension or curtailment of trading, or in the case 

of any failure of the Exchange Trading System.

III-10 Errors, Trade Cancellation and Price Adjustments on the FMX Division

(a) Trade Cancellation Authority 

The Exchange’s trade cancellation policy authorizes the Board, through its 

designee the Chief Compliance Officer (or the Chief Compliance Officer’s delegate) (the 

“Designee”), to adjust trade prices or cancel (bust) FMX Division Contract trades when 

such action is necessary to mitigate market disrupting events caused by the improper or 

erroneous use of the Exchange Trading System or by system defects. Notwithstanding any 

other provision of this Rule III-10, the Designee may adjust trade prices or cancel any trade 

if the Designee determines that allowing the trade to stand as executed may have a material, 

adverse effect on the integrity of the market, provided, however, that any such 

determination by the Designee (if other than the Chief Compliance Officer) will be subject 

to review by the Chief Compliance Officer if the Designee determines such review to be 

necessary or appropriate. Subject to the immediately preceding sentence, the decision of 

the Designee shall be final.

(b) Review of Trades 

The Designee may review a trade based on its analysis of market conditions or a 

request for review by a user of the Exchange Trading System. A request for review must 

be made within eight (8) minutes of the execution of the trade. The Designee shall 

promptly determine whether the trade will be subject to review, and upon deciding to 

review a trade, the Designee will promptly issue an alert to all FMX Participants, 

Responsible Trading Agents and Direct Access Customers on the Exchange Trading 

System indicating that the trade is under review.

In the case of Contracts determined by the Designee to be illiquid, the Designee may initiate 

a review up to one hour after the execution of the trade, and has the authority, but not the 

obligation, to review trades reported any time before the start of the next Trading Day even 

if that is more than one (1) hour following execution if the Designee determines that the 

trade price was significantly out of line with fair value.
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In the course of its review of any trade, the Designee may, but is not obligated to, inform 

any of the parties to the trade of the identity and contact information of any other party to 

the trade.

(c) Trade Price Adjustment and Cancellation Process 

The Designee will first determine whether the trade price is within the No Bust 

Range for the Contract. During fast market conditions, upon the release of significant 

news, or in other circumstances in which the Designee determines it is appropriate, the 

Designee may, without prior notice, temporarily increase the published No Bust Range, up 

to an amount that is double the published range. Such temporary action will be notified to 

the CFTC in accordance with CFTC Regulation 40.6(a)(6)(ii).

In applying the No Bust Range, the Designee shall determine the market price for that 

Contract immediately before the trade under review (the “Market Price”). The Designee 

may consider any relevant information, including the existing market conditions, the 

volatility of the market, the prices of similar instruments in other markets, the last trade 

price on the Exchange Trading System, a better bid or offer price, a more recent price in a 

different Contract month, the price of the same or related Contract established in open 

outcry trading and any other factors that the Designee deems relevant.

(i) Trade Price Inside the No Bust Range 

If the Designee determines that the price of the trade was inside the No Bust 

Range, the Designee will promptly issue an alert to all Participants, Responsible 

Trading Agents and Direct Access Customers on the Exchange Trading System 

indicating that the trade shall stand.

(ii) Trade Price Outside the No Bust Range 

If the Designee determines that a trade price is outside the applicable No 

Bust Range, the trade price shall be adjusted to a price agreed upon in a reasonable 

time by a Person not responsible for an Order that results in a trade price adjustment 

that is within the No Bust Range. In the absence of such agreement, the trade price 

shall be adjusted to a price that equals the Market Price for that Contract at the time 

of the questioned trade plus or minus the standard or adjusted No Bust Range; 

provided, however, that in the event that such adjusted price would be outside the 

trading range of the day at the time of the questioned trade, such adjustment shall 

be limited to the trading range as applicable. In the event there are multiple parties, 

prices and/or Contracts involved in the transactions at issue, the Designee has the 

authority, but not the obligation, to bust rather than price adjust such transactions. 

The Designee will promptly issue an alert to all Participants, Responsible Trading 

Agents and Direct Access Customers on the Exchange Trading System indicating 

that the prices of the trades outside the No Bust Range have been adjusted to the 

No Bust Range limit or have been busted.
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(iii) Liability for Losses Resulting from a Price 

Adjustment or Trade Bust.

(A) Price-Adjusted Trades 

A Person responsible for an Order that results in a trade price 

adjustment shall generally not be liable for losses incurred by Persons 

whose trade prices were adjusted. 

(B) Busted Trades 

A Person responsible for an Order that results in a trade bust may be 

liable for the reasonable out-of-pocket losses incurred by Persons whose 

trades were busted or Persons whose Conditional Orders were executed and 

not busted. Issues of liability in such cases will be determined based upon 

all relevant facts and circumstances, including the conduct of the respective 

parties.

(d) Trade Cancellation or Offset Procedures 

Upon a determination by the Designee that a trade shall be busted or that trade 

prices shall be adjusted, that decision will be implemented. The busted trade price and any 

price quotes that have been adjusted will be reflected as cancelled in the Exchange’s official 

record of time and sales.

(e) Transfer Trades 

Positions that result from a trade determined by the Designee to be outside the No 

Bust Range that cannot be busted because the trade was not reported within eight (8) 

minutes of the execution of the trade may be transferred between the parties using a transfer 

trade upon agreement of the parties (a “Transfer Trade”). The Transfer Trade must use the 

original trade price and quantity. Any party may, but is not required to, include a cash 

adjustment to another party to the trade. Trades determined by the Designee to be inside 

the No Bust Range may not be reversed using a Transfer Trade.

(f) Arbitration of Disputes Regarding Transfer Trade

If a party does not agree to transfer a position pursuant to Rule III-10(f), any other 

party to the trade may file an arbitration claim against the Person representing the other 

side of the trade. Written notice of such claim must be provided to the Exchange within 

five (5) Business Days of the execution of the trade. Failure to file the claim within five 

(5) Business Days shall be deemed a waiver of all claims. The arbitration claim will be 

conducted in accordance with Chapter XV.

(g) Voluntary Adjustment of Trade Price 
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When a trade outside of the No Bust Range is busted in accordance with this Rule 

III-10, the parties to the trade may agree voluntarily to reestablish the trade but to adjust its 

price and make a cash adjustment; provided that, all of the following conditions are met:

(i) The Designee approves the adjustment 

(ii) The quantity of the position being 

reestablished is the same as the quantity of the trade that was 

busted.

(iii) In the case of a trade below the Market Price, 

the adjusted price must be the lowest price that traded at or 

about the time of the trade without being busted. In the case 

of a trade above the Market Price, the adjusted price must be 

the highest price that traded at or about the time of the trade 

without being busted.

(iv) The parties to the adjusted trade must report 

it to the Exchange Trading System using a Transfer Trade not 

later than the close of business on the Business Day after the 

trade occurred.

(h) Busting Trades After System Malfunction. 

In the event that the Exchange Trading System malfunctions with live Orders in the 

queue waiting to be matched, such Orders shall not be matched. When the Exchange reopens the Exchange Trading System, the Exchange will conduct a Market Open including 

the Pre-Opening Period. 

(i) Transfers of FMX Division Contract Positions

A Clearing Member may transfer a position in the Trading Accounts of its 

customers to:

(i) correct errors in an existing FMX Division 

Contract, provided that the original trade documentation 

confirms the error;

(ii) transfer an existing FMX Division Contract 

position from one Trading Account to another Trading 

Account owned by the same FMX Participant where no 

change in ownership is involved, except as provided for in 

section (k) below;
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(iii) transfer an existing FMX Division Contract 

position from one Clearing Member to another Clearing 

Member where no change in ownership occurs; or 

(iv) transfer an existing FMX Division Contract 

through operation of law from death or bankruptcy.

(j) Subject to Rule III-11, a Participant may transfer a position on its books to other 

accounts beneficially owned by such Participant.

(k) Upon written request, the Exchange may, in its sole discretion, allow the transfer 

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

transaction for a Clearing Member that is an organization.

(l) Transfers of positions pursuant to this Rule III-11 must be made at the same prices 

that appear on the books of the transferring Clearing Member or Participant, as the case may be, 

or at the most recent settlement price, and the transfer must indicate the date when the original 

trade was made. Each Clearing Member or FMX Participant that is a party to a transfer of positions 

must make and retain records stating the nature of the transaction and the name of the counterparty 

Clearing Member or FMX Participant, as the case may be. Each Clearing Member that is a party 

to a transfer of positions must adhere to the Rules of LCH Limited related to transfers of positions 

and must provide any information required by LCH Limited related to such transfer.

(m) Transfers of an existing physically-delivered FMX Division Contract from one 

account to another where no change in ownership is involved during the delivery month and the 

two (2) Business Days prior to the delivery month is not permitted for purposes of offset except to 

correct a bona fide clerical or operational error on the day that the error is identified and provided 

that the quantity of the offset does not represent more than one percent (1%) of the reported open 

interest in the affected Futures Contract month.

III-11 Responsibility for Orders

Each FMX Participant shall be responsible for (i) all Orders placed by it, and by any of its 

Responsible Trading Agents or Direct Access Customers and (ii) use of any of the User IDs 

assigned to it and any of its Responsible Trading Agents or Direct Access Customers.

III-12 Allocation and Priority of Customer Orders; No Withholding of Orders; 

Bunched Orders

(a) No FMX Participant shall enter an Order into the Exchange Trading System for its 

own account, an account in which it has a direct or indirect financial interest or a discretionary 

account, including, without limitation, an order allowing discretion as to time and price, when such 

Participant is in possession of any order for the benefit of a Customer that the Exchange Trading 

System is capable of accepting. A discretionary account is a Customer Account over which the 

FMX Participant has been given express discretionary trading authority by the Customer as 

documented by a power of attorney or other similarly effective trading authorization. 
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(b) An FMX Participant shall not withhold or withdraw from the Exchange Trading 

System any order, or any part of an Order, for the benefit of any other Customer that is not a party 

to that Order.

(c) Each FMX Participant shall ensure that Orders are allocated to the appropriate 

accounts and shall establish and enforce procedures to ensure appropriate allocations. 

(d) Bunched Orders may be submitted to the Exchange Trading System by a Participant 

only if all the requirements of (i) or (ii) below are satisfied:

(i) If trade allocation is to be made based upon a 

pre-determined allocation system, then:

(A) The Bunched Order must be accompanied by an account 

series designation,

(B) each account within such series is a discretionary account, 

and

(C) the Participant entering the Bunched Order has, and follows, 

a written, pre-determined allocation system that defines the series and 

provides for an equitable allocation of prices, or 

(ii) If trade allocation is made on a postexecution basis, then:

(A) the person placing and directing the allocation shall be an 

“eligible account manager”, as defined by CFTC Regulation 1.35(b)(5)(i), 

acting pursuant to a prior written grant of trading discretion on behalf of 

each participating Customer Account,

(B) each Bunched Order is accompanied by an account series 

designation that references the eligible account manager’s Order initiation 

document,

(C) the allocation is made as soon as practicable after the 

Bunched Order is executed; account managers must provide allocation 

information to FCMs no later than a time sufficiently before the end of the 

Trading Day the order is executed to ensure that clearing records identify 

the ultimate customer for each trade, and

(D) the allocation is made in compliance with CFTC 

Regulation 1.35(b)(5)(iv) and is otherwise fair and equitable such that no 

account or group of accounts shall receive consistently favorable or 

unfavorable treatment.
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III-13 Financial Requirements for Order Entry and Executions

Each FMX Participant and Direct Access Customer that is not itself a Clearing Member 

must establish a clearing relationship with a Clearing Member. The Clearing Member shall 

establish risk controls and trading parameters for each FMX Participant, Direct Access Customer 

and Customer for which it clears and will provide such information to the Exchange in a manner 

suitable to the Exchange. All orders shall be checked against the risk controls prior to admittance 

into the order book. A Clearing Member shall utilize the risk control software tools provided by 

the Exchange, as appropriate. Notwithstanding the foregoing, the FMX Participant shall remain 

responsible in accordance with these Rules for the acts and omissions of any of its Direct Access 

Customers or Responsible Trading Agents regardless of the level of risk controls set by the 

Clearing Member and the approval of such risk controls by the Exchange.

III-14 Revocation of Clearing Authorization: Trade Nullification

In the event that LCH Limited terminates a Clearing Member’s authorization, any trade 

executed for that Clearing Member or for a Person guaranteed by that Clearing Member after the 

Exchange receives and processes notice of the termination from LCH Limited and prior to any 

reinstatement of such Clearing Member’s authorization, shall be nullified and cancelled by the 

Exchange at the price at which the nullified transaction was executed. The Exchange shall process 

such notice promptly.

III-15 Customer Margin

(a) The minimum amount of margin which must be obtained by (i) FMX Participants 

who carry Customer Accounts and (ii) Clearing Members from each FMX Participant, Direct 

Access Customer and Customer for which it carries an account shall be the same as the minimum

amounts which must be so obtained by Clearing Members, as specified by LCH Limited.

(b) The maintenance margin level which must be maintained by all Clearing Members 

for each account which has an open Contracts shall be the amount or level specified by LCH 

Limited.

(c) At the close of trading on any Business Day when the net liquidating value of any 

account is less than the maintenance margin level, the Clearing Member carrying such account 

shall be required to reinstate the minimum amount of margin to the full amount required pursuant 

to these Rules within a reasonable period of time.

(d) Each Clearing Member which carries an account that is required to reinstate a 

minimum amount of margin shall issue a call for margin within one (1) Business Day after the 

account is required to reinstate a minimum amount of margin. Each Clearing Member shall 

maintain written records of all margin calls (and any cancellations of margin calls). Such records 

shall be kept and shall be open for inspection in accordance with CFTC Rule 1.31.
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(e) A Clearing Member may liquidate any or all positions in a Customer account it 

carries that does not meet a margin call as required by these Rules. Any loss or deficiency resulting 

from such liquidation shall be the liability of the Customer account holder.

(f) A Clearing Member shall not accept Orders for an undermargined account except 

for the establishment or closure of Contracts that reduces the risks of existing Contracts, unless the 

Clearing Member has been given assurances by the Person for whom the account is carried that 

funds to restore the equity in the account to the then prevailing minimum amount of margin are 

forthcoming and will be received within a reasonable period of time.

III-16 Segregation, Custody and Investment of Customer Funds

All Customer funds must be separately accounted for and segregated from proprietary and other 

funds by FMX Participants, and treated as belonging to Customers, in accordance with CFTC 

Rules 1.20 through 1.30 and CFTC Rule 1.32 and other Applicable Law.

III-17 Daily Settlement Price Determination

(a) The daily Settlement Price of each FMX Division Contract used by LCH Limited, 

for purposes of determining any amounts of margin due on Open Contract Positions, will be 

established by the Exchange as soon as practicable after the End of Trading on each Trading Day.

(b) The daily Settlement Price of an FMX Division Contract shall be the volume 

weighted average price of all trades in that FMX Division Contract during (i) the last minute of 

trading on a Trading Day or (ii) such other period of time that may be specified in the Rules for 

that FMX Division Contract as its Settlement Price determination period.

(c) If, in the sole opinion of the Control Desk, the Settlement Price for any FMX 

Division Contract calculated in accordance with Paragraph (b) above is inconsistent with the 

pricing of different Contract months, with cash or other market prices or with resting bids and 

offers at the close of the Trading Day or if there were no trades during the relevant Settlement 

Price determination period, the Control Desk may report a daily Settlement Price that it determines 

is consistent with fair market values.

III-18 Required Reports

(a) Each FMX Participant (on behalf of itself and its Customers) or Direct Access 

Customer required to file any report, statement, form or other information with the CFTC pursuant 

to CFTC Regulations Part 15 or 17 concerning any Contract or commodity underlying a Contract 

must simultaneously file a copy of such report, form or other information with the Exchange. Each 

FMX Participant shall be required to file with the Exchange any such report on behalf of any 

Customer of such FMX Participant who does not file such report to the Exchange itself. Each 

FMX Participant or Direct Access Customer must submit the report, form or other information to 

the Exchange in the form and manner designated by the Exchange.
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(b) For purposes of filings made or information provided to the Exchange pursuant to 

CFTC Regulations Part 15 or 17 each FMX Participant (on behalf of itself or any of its Customers 

that do not file such report itself) or Direct Access Customer, as the case may be, must report open 

Contract positions at or above such levels as the Exchange establishes from time to time, as set 

forth in Chapter XI.

(c) Any FMX Participant (on behalf of itself and its Customers) required to file large 

trader reports as per sections (a) and (b) of this Rule shall submit a report to the Exchange in the 

event that it holds in any reportable account a current month position that exceeds the reportable 

level for any cash-settled contract that references the settlement price of another Designated 

Contract Market (“Reference DCM”) in the final Settlement Price. Such report must identify 

positions which such FMX Participant or its Customer owns or controls in the current month of 

the Reference DCM’s corresponding contract as of the open of trading and the close of trading on 

such Last Trading Day. The report must be provided after the close of trading and be in such form 

and manner as may be specified by the Exchange. An FMX Participant (on behalf of itself and its 

Customers) subject to the requirements of this Rule shall provide such other information as may 

be requested by the Exchange regarding transactions effected on the Last Trading Day by such 

Person in the corresponding Reference DCM contract, in such form and manner as may be 

specified by the Exchange.

III-19 Recording of Orders and Record Keeping 

(a) Any Order, except an Order for a proprietary account, which is not in the form of 

an electronic or written record, and which is not immediately entered into the Exchange Trading 

System upon receipt, must within one (1) minute of its receipt be recorded in writing or caused to 

be recorded in writing by the FMX Participant receiving such Order.

(b) The record of any Orders required to be recorded in writing under paragraph (a) of 

this Rule III-20 shall:

(i) include the account identification, User ID, 

Source ID, if applicable, and Order number assigned by the 

receiving FMX Participant;

(ii) include a date and time stamp to the nearest 

minute when the Order was received; and 

(iii) be written or in an electronic form, in each 

case, which is not subject to erasure and is otherwise 

satisfactory to the Exchange.

(c) All memoranda reflecting Orders for a Customer Account shall be retained in 

accordance with Rule V-1.

(d) All Order-related information entered into the Exchange Trading System shall be 

retained by the Exchange for the time period set forth in Rule V-1. 
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III-20 Reporting of Open Interest by Clearing Members

On each Trading Day by the time set by the Exchange, and in the format the Exchange 

specifies, each Clearing Member shall report to the Exchange the total for each Contract of all long 

open contracts and the total for each Contract of all short open contracts it carries by proprietary 

and Customer Account for each Contract. Clearing Members shall not include in its report of open 

Contracts against which delivery notices have been noticed or issued. Clearing Members shall 

report separately short Contracts that have been noticed for delivery and long Contracts against 

which delivery notices have been issued by LCH Limited.

CHAPTER IV

CLEARING OF FMX DIVISION CONTRACTS

IV-1 Rules of LCH Limited

(a) The clearing services provided by LCH Limited with respect to FMX Division 

Contracts, and the rights and obligations of Clearing Member purchasers and sellers under cleared 

Contracts (including, without limitation, rights and obligations in respect of clearing and 

settlement, variation margin payments and performance at maturity, and in the case of Options on 

Futures, upon exercise thereof), shall be governed by the Rules of LCH Limited.

(b) The Exchange may discontinue the clearance of contracts at LCH Limited and 

select and substitute another derivatives clearing organization that has been approved by the CFTC 

to clear FMX Division Contracts.

IV-2 Substitution 

Where a Contract is cleared through LCH Limited, the clearinghouse shall be deemed 

substituted as seller to the buyer and shall also be deemed substituted as buyer to the seller, and 

thereupon LCH Limited shall have all of the rights and be subject to all of the liabilities of the 

original parties with respect to such contract.

CHAPTER V

FMX DIVISION CONTRACTS

The terms and conditions of FMX Division Contracts listed for trading on the Exchange 

are as follows:
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© 2010-2023 FMX Futures Exchange, L.P.

V-1 Reserved.

V-2 Reserved.

CHAPTER VI

FMX DIVISION INCENTIVE PROGRAMS

Incentive programs applicable to the FMX Division are as follows: 

VI-1 Incentive Programs 

(a) Market Maker Incentive Program 

The Market Maker Incentive Program provides that FMX Participants, or Direct Access 

Customers, meeting objective criteria with respect to providing liquidity to Contracts shall 

be entitled to receive benefits, as provided under the terms of the Incentive Program.

(i) FMX Participants and Direct Access 

Customers may apply for participation in the Market Maker 

Incentive Program, and the Exchange in its discretion shall 

select applicants, thereafter “Qualified Market Makers,” to 

participate in each cycle of the Market Maker Incentive 

Program;

(ii) the obligations of such Qualified Market 

Maker, including, but not limited to, any applicable minimum 

time-in-market, quote spread width and other trading 

requirements; and

(iii) the benefits accruing to such Qualified 

Market Maker

(b) Asset Manager Incentive Program 

The Asset Manager Incentive Program provides that Asset Manager Customers meeting 

objective criteria with respect to providing certain calendar spread volume to Contracts 

shall be entitled to benefits as defined in the program Asset Manager Incentive Program 

provides for the following:

(i) Asset Manager Customers may apply to the 

Asset Manager Incentive Program, with FMX specifying the 

conditions, obligations and maximum number of Participants;
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© 2010-2023 FMX Futures Exchange, L.P.

(ii) the benefits accruing to such Asset Manager 

Customers. 

[RESERVED-- CHAPTERS VII-IX]
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PART B GENERAL RULES OF THE EXCHANGE 

Scope: The rules in Part B shall apply to the Exchange and to trading on the Exchange generally. 

CHAPTER XCHAPTER II 
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GOVERNANCE OF THE EXCHANGE

X-1 Defined Terms

The following terms have the meanings specified herein with regard to the Exchange unless 

otherwise specifically provided in the Rules of the Exchange (as defined below) or the context 

otherwise requires. 

All defined terms listed in Part A – Chapter I – Definitions; Interpretation; Amendments –

I-1 Defined Terms (Rule I-1) are hereby incorporated into this Part B of the Rules of the Exchange.

X-2 II-1. Board of Directors 

(a) The business and affairs of the Exchange shall be managed by the Board of 

Directors in accordance with the CX Futures Exchange, L.P. Operating Agreement and Applicable 

Law.

(b) The number of directors on the Board of Directors shall be seven, at least three 

of whom shall be Public Directors (or such other percentage of the Board of Directors as may be 

required by the CFTC Regulations, as amended from time to time, provided that the number of 

Public Directors shall at all times equal no less than 35% of the entire Board of Directors). Any 

vote made by the Board of Directors that results in a tie will require that the Board of Directors 

reconvene to reconsider the matter until such tie is broken.

(c) The appointment of the members of the Board of Directors will be made by the 

General Partner. The sole member of the General Partner shall make such appointments on behalf 

of the General Partner.

X-3 II-2. Standing Committees

(a) Unless otherwise determined by the Board of Directors, the Board of Directors 

shall initially have one standing committee: the “Regulatory Oversight Committee”. In the event 

that the Board of Directors establishes an Executive Committee, the number of Public Directors 

on the committee shall constitute at least 35% of its members.

(b) Except as otherwise specifically provided in these Rules, the members of 

standing committees shall be appointed by the chairperson of the Board of Directors, subject to 

approval by the Board of Directors, as promptly as possible after each annual meeting of the 

Exchange. Each appointee shall serve for one year or until the due appointment of his or her 

successor or his or her resignation or removal, with or without cause, by a majority vote of the 

Board of Directors. Subject to approval by the Board of Directors, the chairperson of the Board 

of Directors shall designate the chairperson of each standing committee.
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(c) Each standing committee shall assist in the supervision, management and 

control of the affairs of the Exchange within its particular area of responsibility.

(d) Subject to the authority of the Board of Directors, each standing committee 

shall determine the manner and form in which its proceedings shall be conducted, and may act at 

a meeting or without a meeting, and through a quorum composed of a majority of all its members 

then in office, inclusive of ex officio members. Except as otherwise specifically provided in these 

Rules, the decision of a majority of those present at a meeting at which a quorum is present, or the 

decision of a majority of those participating when at least a quorum participates, shall be the 

decision of the standing committee. Any or all members of any standing committee may 

participate in any meeting thereof by telephone conference or similar communications equipment 

by means of which all members participating in such meeting can hear each other.

(e) In the event of the absence or disqualification of any member of a standing 

committee from any meeting thereof, each of the following individuals, in the order of their 

availability, may appoint another qualified individual to act at the relevant meeting in the place of 

any such absent or disqualified member: (i) the chairperson of the Board of Directors, (ii) the 

President or (iii) the chairperson of the standing committee in question.

X-4 II-3. Regulatory Oversight Committee

The Regulatory Oversight Committee of the Board of Directors shall consist only of Public 

Directors, who shall be members of the Board of Directors, and shall be appointed from time to 

time by the chairperson of, and approved by, the Board of Directors. The Regulatory Oversight 

Committee shall oversee the Exchange’s regulatory program on behalf of the Board of Directors. 

It shall make such recommendations to the Board of Directors as will, in its judgment, best promote 

the interests of the Exchange, provided that, for the avoidance of doubt, any dissenting opinions 

from one or more members of the Regulatory Oversight Committee shall be reported to the Board 

of Directors along with any such recommendation. The Regulatory Oversight Committee shall 

also have such other powers and perform such other duties as the Board of Directors may delegate 

to it from time to time.

The Board of Directors shall confirm one member of the Regulatory Oversight Committee 

as the committee’s chairperson. The Chairperson of the Regulatory Oversight Committee shall 

determine the agenda for the committee and shall cast the tie-breaking vote on any matter where 

the voting members of the committee are equally divided; provided, however, that if the 

Regulatory Oversight Committee has only two (2) members all decisions of the Regulatory 

Oversight Committee must be unanimous. 

Without limiting the generality of the foregoing, the Regulatory Oversight Committee shall 

have authority to: (a) monitor the Exchange’s regulatory program for sufficiency, effectiveness 

and independence, (b) oversee all facets of the Exchange’s 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, 
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(c) review the size and allocation of the regulatory budget and resources; and the number, hiring 

and termination, and compensation of regulatory personnel, (d) supervise the Exchange’s Chief 

Compliance DirectorOfficer, who will report directly to the Regulatory Oversight Committee, 

(e) prepare an annual report assessing the Exchange’s self-regulatory program for the Board of 

Directors and the CFTC, which sets forth the regulatory program’s expenses, describes its staffing 

and structure, catalogues disciplinary actions taken during the year, and reviews the performance 

of disciplinary committees and panels, (f) recommend changes that would ensure fair, vigorous, 

and effective regulation, (g) review regulatory proposals and advise the Board of Directors as to

whether and how such changes may impact regulation, and (h) exercise any other functions 

expressly assigned to it in these Rules.

X-5 II-4. Additional Committees and Panels

(a) The Board of Directors may create such additional standing committees of the 

Board of Directors as it may from time to time deem necessary or advisable. Members of such 

committees must be members of the Board of Directors, provided that the President may be a 

voting ex officio member of any such standing committee.

(b) In addition to the standing committees, the Board of Directors may from time 

to time constitute and appoint, by Rule or resolution, special committees of the Board of Directors 

and designate their composition, responsibilities and powers. The provisions regarding standing 

committees in Rule II-2X-3 shall apply mutatis mutandis to any such special committees. At least 

35% of the members of each special committee designated by the Board of Directors shall be 

Public Directors.

(c) The Exchange may create additional committees of the Exchange, or panels, 

for such purposes as may from time to time be necessary or advisable. Members of each such 

committee may be members of the Board of Directors, Participants, Authorized 

TradersResponsible Trading Agents or such other individuals as may be qualified to serve on 

such committee. At least 35% of the members of each such committee designated by the Board 

of Directors shall be Public Directors (or individuals that would qualify as Public Directors if they 

were directors of the Exchange).

X-6 II-5. Eligibility

(a) No Person may serve as an Officer of the Exchange, or a member of the Board 

of Directors, or any disciplinary committee, arbitration panel or oversight panel of the Exchange 

or as Chief Compliance DirectorOfficer if such Person:

(i) was found within the past three (3) years by a 

final decision of a self-regulatory organization, an 

administrative law judge, a court of competent jurisdiction or 

the CFTC to have committed a disciplinary offense;

(ii) entered into a settlement agreement within 

the past three (3) years in which any of the findings or, in 
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absence of such findings, any of the acts charged included a 

disciplinary offense;

(iii) is currently suspended from trading on any 

contract market, is suspended or expelled from membership 

from any self-regulatory organization, is serving any sentence 

of probation or owes any portion of a fine imposed pursuant to 

either:

(A) a finding by a final decision of a self-regulatory 

organization, an administrative law judge, a court of competent jurisdiction 

or the CFTC that such person committed a disciplinary offense; or

(B) a settlement agreement in which any of the findings or, in 

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

offense;

(iv) is currently subject to an agreement with the 

CFTC or any self-regulatory organization not to apply for 

registration with the CFTC or membership in any selfregulatory organization;

(v) is currently subject to or has had imposed on 

him or her within the past three (3) years a CFTC registration 

revocation or suspension in any capacity for any reason, or has 

been convicted within the past three (3) years of any of the 

felonies listed in section 8a(2)(D)(ii) through (iv) of the CEA; 

or 

(vi) is currently subject to a denial, suspension or 

disqualification from serving on the disciplinary committee, 

arbitration panel or governing board of any self-regulatory 

organization as that term is defined in Section 3(a)(26) of the 

Securities Exchange Act of 1934.

(b) To qualify as a Public Director, an individual must be found, by action of the 

Board of Directors, to have no relationship with the Exchange that reasonably could affect the 

independent judgment or decision making of the Director. In addition, a Director shall 

automatically be deemed to have such a relationship and shall not be considered a “Public 

Director” if any of the following circumstances exist:

(i) within the last year, the individual or any 

member of his or her immediate family has been an officer or 

employee of the Exchange or any of its affiliates. Solely for 

purposes of this Rule IIX-6, the term “affiliate” shall mean 

parents or subsidiaries of the Exchange or entities that share a 
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common parent with the Exchange. For the avoidance of 

doubt, an individual may still qualify as a Public Director if 

such individual (x) has, within the last year, served as a 

director of an affiliate of the Exchange, but (y) otherwise 

meets the eligibility criteria under this Rule IIX-6(b).

(ii) within the last year, the individual or any 

member of his or her immediate family has been a member of 

the Exchange, or a person employed by or affiliated with a 

member. Solely for purposes of this Rule IIX-6, the term 

“member” is defined according to Section 1a(24) of the CEA 

and Regulation 1.3(q) promulgated by the CFTC thereunder. 

Therefore, any Participant would be considered a “member” 

of the Exchange. In this context, a person is “affiliated” with 

a member if he or she is an officer or director of the member, 

or if he or she has any other relationship with the member such 

that his or her impartiality could be called into question in 

matters concerning the member.

(iii) within the last year, the individual or any 

immediate family member of the individual, or a firm with 

which such individual or his or her immediate family member 

is affiliated, as described in Rule IIX-6(b)(ii) above, received 

more than $100,000 in combined annual payments from the 

Exchange or its affiliates, or from a member or any person or 

entity affiliated with a member of the Exchange, in each case 

for legal, accounting or consulting services. Compensation for 

services as a Director shall not count towards the $100,000 

payment limit, nor shall deferred compensation for services 

prior to becoming a Director, so long as such compensation is 

in no way contingent, conditioned or revocable.

(c) Public Directors may also serve as directors of any parent company of the 

Exchange if the Public Directors otherwise meet the definition of “Public Director” in this 

Rule IIX-6.

(d) For purposes of this Rule IIX-6, the terms “self-regulatory organization”, 

“disciplinary committee”, “arbitration panel”, “oversight panel”, “final decision”, “disciplinary 

offense”, and “settlement agreement” have the meanings set forth in CFTC Regulation 1.63(a).

X-7 II-6. Power of the Board of Directors to Review Decisions

The Board of Directors has the power and authority to call for review, and to affirm, 

modify, suspend or overrule, any and all decisions and actions of standing committees, special 
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committees of the Board of Directors formed pursuant to Rule IIX-5(b) and officers of the 

Exchange appointed pursuant to Rule IIX-8 (other than the Regulatory Oversight Committee).

X-8 II-7. Officers

The Board of Directors shall appoint a President, one or more Vice Presidents, a Secretary, 

a Treasurer, one or more Assistant Secretaries, one or more Assistant Treasurers and such 

other officers (each such person, an “Officer”) as it may deem necessary or appropriate from time 

to time, in each case for such term and on such other conditions as it sees fit. Any officer of the 

Exchange may also be a director, officer, partner or employee of the sole member of the General 

Partner or any of its affiliates.

X-9 II-8. Restrictions on Certain Persons Who Possess Material, Non-Public 

Information

(a) None of (i) any Officer of the Exchange, (ii) any member of the Board of 

Directors or any committee established by the Board of Directors or the Exchange (including but 

not limited to the Disciplinary Panel and the Appeals Panel), (iii) the Chief Compliance 

DirectorOfficer or any other employee or agent of the Exchange shall use or disclose any material, 

non-public information obtained in connection with the performance of his or her official duties, 

for any purpose other than the performance of his or her official duties.

(b) No Officer, employee or agent of the Exchange, and no member of the Board 

of Directors or any committee established by the Board of Directors of the Exchange, shall (i) trade 

in any Contract, or any underlying or related commodity interest, if such Person is in possession 

of material non-public information concerning such Contract or any underlying or related 

commodity interest or (ii) disclose to any other Person material, non-public information, however 

obtained (including, without limitation, material non-public information obtained by an employee 

or agent of the Exchange in connection with such employee or agent’s employment or agency, as 

the case may be), if such Person could reasonably expect that such information might assist another 

Person in trading any Contract or underlying or related commodity interest.

(c) Any Officer, Director, Chief Compliance DirectorOfficer or employee or agent 

of the Exchange who violates any provision of this Rule IIX-9 shall indemnify the Exchange for, 

and hold the Exchange harmless against, any losses, damages or costs that the Exchange may incur 

as a result of such violation.

(d) Notwithstanding anything to the contrary in this Rule IIX-9, the applicable 

Contract Rules for each Contract traded on the Exchange may impose additional prohibitions on 

the use of or trading on material non-public information by any Person.

(e) For purposes of this Rule IIX-9, the terms “material information,” “non-public 

information” and “commodity interest” shall have the meanings ascribed to them in CFTC 

Regulation 1.59 or in the applicable Contract Rules, as the case may be.
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X-10 II-9. Conflicts of Interest

(a) Definitions. For purposes of this Rule IIX-10, the following definitions shall 

apply:

(i) The term “family relationship of a Person” 

shall mean such Person’s spouse, former spouse, parent, 

stepparent, child, stepchild, sibling, stepbrother, stepsister, 

grandparent, grandchild, uncle, aunt, nephew, niece or in-law.

(ii) The term “Board” shall mean the Board of 

Directors, and any committee thereof duly authorized to take 

action or to recommend the taking of action on behalf of the 

Exchange.

(iii) The term “member’s affiliated firm” shall 

mean a firm in which a member of the relevant deliberating 

body is an employee or a “principal”, as defined in CFTC 

Regulation 3.1(a).

(iv) The term “named party in interest” shall 

mean a Person or entity that is identified by name as a subject 

of any matter being considered by the Board, a disciplinary 

committee or oversight panel.

(v) The term “significant action” shall mean any 

of the following types of actions or Rule changes that are 

implemented without the CFTC’s prior approval:

(A) Any actions or Rule changes which address an 

“Emergency”, as defined in Chapter I of these Rules; and

(B) Any changes in margin levels that are designed to respond 

to extraordinary market conditions or otherwise likely to have a substantial 

effect on prices in any Contract.

(b) Named Party in Interest Conflict.

(i) Prohibition. No Officer of the Exchange, 

Chief Compliance DirectorOfficer or member of the Board of 

Directors or any standing committee, “disciplinary 

committee” or “oversight panel” (both as defined in CFTC 

Regulation 1.69) shall knowingly participate in such body’s 

deliberations or voting in any matter involving a named party

in interest where such member (A) is a named party in interest, 

(B) is an employer, employee or fellow employee of a named 
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party in interest, (C) is associated with a named party in 

interest through a broker association, (D) has a family 

relationship with a named party in interest or (E) has any other 

significant, ongoing business relationship with a named party 

in interest, excluding relationships limited to executing 

Contracts opposite each other.

(ii) Recusal. Where the Chief Compliance 

DirectorOfficer has or may have one of the relationships listed 

in paragraph (b)(i) of this Rule IIX-10 with a named party in 

interest, the Chief Compliance DirectorOfficer shall recuse 

himself or herself from the matter giving rise to the conflict 

and the Board of Directors shall appoint an individual meeting 

all the requirements of a Chief Compliance DirectorOfficer to 

serve as Chief Compliance DirectorOfficer for the specific 

matter giving rise to the conflict.

(iii) Disclosure. Prior to consideration of any 

matter involving a named party in interest, each member of the 

deliberating body (other than the Chief Compliance 

DirectorOfficer whose recusal is required pursuant to clause 

(ii) above) shall disclose to the President, or his or her 

designee, whether such member has or may have one of the 

relationships listed in paragraph (b)(i) of this Rule IIX-10 with 

a named party in interest.

(iv) Procedure and Determination. The 

President, or his or her designee, shall determine whether any 

member of the relevant deliberating body is subject to a 

conflicts restriction under this paragraph (b). Such 

determination shall be based upon a review of the following 

information:

(A) information provided by such member pursuant to clause (ii) 

above; and

(B) any other source of information that is held by or reasonably 

available to the Exchange.

(c) Financial Interest in a Significant Action Conflict.

(i) Prohibition. No Officer of the Exchange, 

Chief Compliance DirectorOfficer or member of the Board of 

Directors or any standing committee, “disciplinary 

committee” or “oversight panel” (both as defined in CFTC 

Regulation 1.69) shall participate in such body’s deliberations 
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and 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 Exchange or nonExchange positions that could reasonably be expected to be 

affected by the significant action under consideration, as 

determined pursuant to this paragraph (c).

(ii) Recusal. Where the Chief Compliance 

DirectorOfficer has or may have a direct and substantial 

financial interest in the result of the vote on any significant 

action based upon either Exchange or non-Exchange positions 

that could reasonably be expected to be affected by the 

significant action under consideration, the Chief Compliance 

DirectorOfficer shall recuse himself or herself from the matter 

giving rise to the conflict and the Board of Directors shall 

appoint an individual meeting all the requirements of a Chief 

Compliance DirectorOfficer to serve as Chief Compliance 

DirectorOfficer for the specific matter giving rise to the 

conflict.

(iii) Disclosure. Prior to consideration of any 

significant action, each member of the deliberating body (other 

than the Chief Compliance DirectorOfficer whose recusal is 

required pursuant to clause (ii) above) who does not choose to 

abstain from deliberations and voting shall disclose to the 

President, or his or her designee, position information known 

to such member with respect to any particular Contracts that 

are under consideration, and any other positions which the 

deliberating body reasonably expects could be affected by the 

significant action, as follows:

(A) gross positions held at the Exchange in such member’s 

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

Regulation 1.3(j);

(B) gross positions held at the Exchange in accounts in which 

such member is a “principal”, as defined in CFTC Regulation 3.1(a); and

(C) any other types of positions, whether maintained at the 

Exchange or elsewhere, held in such member’s personal accounts or the 

proprietary accounts of such member’s affiliated firm, that the Exchange 

reasonably expects could be affected by the significant action.

(iv) Procedure and Determination. The 

President, or his or her designee, shall determine whether any 
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member of the relevant deliberating body is subject to a 

conflicts restriction under this paragraph (c) based upon a 

review of the most recent large trader reports and clearing 

records available to the Exchange, information provided by 

such member with respect to positions pursuant to clause (ii) 

above and any other source of information that is held by and 

reasonably available to the Exchange, taking into 

consideration the exigency of the significant action being 

contemplated. A member of a deliberating body shall be 

subject to the conflicts restriction in clause (i) above if the 

review by the President, or his or her designee, identifies a 

position in such member’s personal or controlled accounts or 

accounts in which such member is a principal as specified in 

subclauses (iii)(A), (B) and (C) above.

(v) Deliberation Exemption. Any Officer of the 

Exchange, member of the Board, a “disciplinary committee” 

or “oversight panel” (both as defined in CommissionCFTC

Regulation 1.69) who would otherwise be required to abstain 

from deliberations and voting pursuant to this paragraph (c) 

(excluding the Chief Compliance DirectorOfficer) may 

participate in deliberations, but not voting, if the deliberating 

body, after considering 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 shall fully consider the 

position information specified in clause (ii) above which is the 

basis for such member’s 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 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.

(d) Documentation. The minutes of any meeting to which the conflicts 

determination procedures set forth in this Rule IIX-10 apply shall reflect the following 

information:

(i) the names of all members of the relevant 

deliberating body who attended such meeting in person or who 

otherwise were present by electronic means;
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(ii) the name of any member of the relevant 

deliberating body 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; 

and 

(iii) information on the position information that 

was reviewed for each member of the relevant deliberating 

body.

X-11 II-10. Regulatory Cooperation

(a) The Exchange may from time to time enter into such agreements with domestic 

or foreign self-regulatory organizations, associations, boards of trade and their respective 

regulators providing for the exchange of information and other forms of mutual assistance for 

financial surveillance, routine audits, market surveillance, investigative, enforcement and other 

regulatory purposes as the Exchange may consider necessary or appropriate or as the CFTC may 

require.

(b) The Chief Executive Officer or the President, or theirhis or her delegates, 

are authorized to provide information to an exchange or clearing organization that is a party to an 

information sharing agreement with the Exchange, in accordance with the terms and conditions of 

such agreement.

(c) All information received by the Exchange with respect to any information 

sharing agreement, shall be held in confidence by the Exchange and shall not be provided to any 

of its nonregulatory departments or divisions or any other person (including to any affiliate of the 

Exchange), except as follows:

(i) to the governmental authority(ies) 

responsible for regulating financial instruments in the home 

jurisdiction of the requesting information sharing agreement 

member,

(ii) pursuant to an order of a court or other lawful 

process, or 

(iii) as it may be necessary for conducting any 

investigation or disciplinary proceeding.

X-12 II-11. Regulatory Services Agreement with NFA

The Exchange has contracted with NFA to provide certain regulatory services to the 

Exchange pursuant to a regulatory services agreement (the “Regulatory Services Agreement”). In 

accordance with the Regulatory Services Agreement, NFA may perform certain surveillance, 
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investigative, and regulatory functions under the Rules of the Exchange and the Exchange may 

provide information to NFA in connection with the performance by NFA of those functions. 

Without limitation of the foregoing, any of the powers or functions of the Exchange under these 

Rules may be delegated to the NFA pursuant to the Regulatory Services Agreement in such manner 

and on such terms as the Exchange and the NFA may mutually agree.

X-13 II-12. Transaction Records

All regulatory records as defined in CFTC Regulation 1.31 relating to transactions 

on the Exchange shall be maintained by the Exchange in accordance with the CFTC’s requirements 

for data creation and storage. Records shall be maintained for at least five years from the time the 

record was created or for such longer period required by CFTC regulations and shall be sufficient 

to provide a complete audit trail. Data for any swap transaction shall be maintained for at least five 

years after the date of termination, maturity, transfer, assignment or novation of the swap.

CHAPTER III 
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OWNERSHIP AND TRADING PRIVILEGES

III-1. Participants and Trading Accounts

Upon application to the Exchange and an explanation of the 

reasons and uses therefore, the Exchange in its discretion may permit a 

Participant to maintain more than one Trading Account.

Each Participant and its Authorized Traders shall have the right 

to access the CX Direct System, including the right to place Orders for each 

of such Participant’s Trading Account(s).

In the event that the Exchange determines that Participants may 

be permitted to maintain more than one Trading Account, as described in 

Rule III-1(a), each Participant shall designate each of its Authorized Trader 

to trade any or all of its Trading Accounts, provided that a Participant shall 

at all times be responsible for all of its Trading Accounts as set forth under 

these Rules.

Subject to the requirements and procedures set forth in this 

Chapter III, Trading Privileges shall be offered to all applicants eligible to 

be Participants as determined by the Exchange from time to time, subject 

to any limitations or restrictions from time to time imposed by the 

Exchange. Trading Privileges are non-transferable, non-assignable and 

may not be sold or leased.

By virtue of obtaining Trading Privileges, a Participant shall not 

obtain any equity or other interest in the Exchange, including voting rights 

or rights to receive any dividends or other distributions, whether arising 

from a dissolution, merger, consolidation involving the Exchange or 

otherwise.

For the avoidance of doubt, and notwithstanding anything to the 

contrary in these Rules, under no circumstances shall any employees, 

officers, directors or agents of the Exchange.

(i) trade directly or indirectly in any commodity interest traded on 

the Exchange or cleared by its clearinghouse, or in a related commodity 

interest; or

(ii) trade directly or indirectly in a commodity interest traded on a 

designated contract market or swap execution facility other than the 

Exchange or cleared by a derivatives clearing organization other than the 

Exchange’s clearinghouse, if the employee, officer or director has access 

to material non-public information concerning such commodity interest.
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III-2. Authorized Traders

Each Participant that is an Entity shall be required to appoint 

one or more individuals to act as its Authorized Trader or Authorized 

Traders, as applicable.

Participants that are natural persons may act as their own 

Authorized Trader or may appoint a third party as his or her Authorized 

Trader, pursuant to a power of attorney or other instrument, in a form 

prescribed or approved by the Exchange, providing such third party with 

discretionary trading authority with respect to the Participant's Trading 

Account. 

Participants that are Entities may appoint an employee to act as 

their Authorized Trader or may appoint a third party as its Authorized 

Trader pursuant to a power of attorney or other instrument, in a form 

prescribed or approved by the Exchange, providing such third party with 

discretionary trading authority with respect to the Participant's Trading 

Account. A Participant that authorizes a third party to trade for its Trading 

Account on a discretionary basis pursuant to a power of attorney or other 

instrument must identify a specific natural person as its Authorized Trader 

with respect to such Trading Account.

Each Authorized Trader that is an employee of a Participant that 

is an Entity, and any Participant that is a natural person acting as his or her 

own Authorized Trader pursuant to Rule III-2(b) above, (i) must be a natural 

person, (ii) may have Trading Privileges with respect to the Trading 

Account or Trading Accounts, as the case may be, of one and only one 

Participant, and (iii) must satisfy any other requirements as may be 

prescribed by the Exchange from time to time. 

Each Authorized Trader that is an employee of a third party with 

discretionary trading authority with respect to the Participant's Trading 

Account (i) must be a natural person, (ii) may have Trading Privileges with 

respect to the Trading Accounts of more than one Participant, and (iii) must 

allocate contracts executed for such multiple accounts in a fair and 

equitable manner so that no account or group of accounts consistently 

receives favorable or unfavorable treatment over time, and (iv) must satisfy

any other requirements as may be prescribed by the Exchange from time 

to time. 

Each Participant may at any time revoke an authorization 

granted by it to any Authorized Trader by disabling such authorization in 

the CX Direct System.
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Without limiting the foregoing, each Authorized Trader will 

consent, in a form satisfactory to the Exchange, to abide by the Rules of 

the Exchange and Applicable Law prior to accessing the CX Direct System, 

and each Participant will ensure on an ongoing basis that (i) none of its 

Authorized Traders is subject to a disqualification pursuant to any 

Applicable Law (unless an appropriate exemption has been obtained with 

respect thereto), (ii) each of its Authorized Traders will be technically 

proficient, (iii) each of its Authorized Traders will conduct its business in a 

fair and equitable manner, and (iv) each of its Authorized Traders will 

conduct its business in accordance with the Rules of the Exchange.

III-3. Eligibility

Participants are eligible to hold either long or short positions in 

Contracts only for their proprietary Trading Accounts.. In addition, 

Participants must: (i) satisfy all requirements generally applicable to 

Participants and Authorized Traders under these Rules and any applicable 

Contract Rules; (ii) satisfy such financial criteria as may be prescribed by 

the Exchange from time to time; (iii) have sufficient technical and 

operational capabilities to fulfill any other obligations applicable to 

Participants or their Authorized Traders as may from time to time be 

required by the Exchange; and (iv) satisfy such other requirements or 

criteria as may from time to time be adopted by the Exchange.

Notwithstanding anything to the contrary in Rule III-3(a), the 

Exchange shall have the right to establish more than one class of 

Participants, which shall include Referring Participants as a separate class, 

in connection with the trading of particular Contracts, and which shall 

include Floor Traders as a separate class, in connection with the trading of 

all Contracts, subject to and in accordance with the applicable Exchange 

Rules. 

(i) All Rules that apply to Participants also apply to Referring 

Participants except where the context requires otherwise. All rules that 

refer to Referring Participants shall only apply to such Persons. 

(ii) All Rules that apply to Participants also apply to Floor Trader 

Participants. A Floor Trader Participant shall have the same obligations, 

responsibilities, and rights as a Participant.

Each applicant to become a Participant that is a natural person 

must: (A) have a mechanism that is acceptable for transferring funds to 

and receiving funds from the applicant’s Clearing Account, (B) have 

attained the age of majority in the individual’s place of residence, 

(C) appoint one or more Authorized Traders pursuant to Rule III-2, and 
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(D) satisfy such other requirements or criteria as may from time to time be 

adopted by the Exchange.

Each applicant to become a Participant that is an Entity must: 

(A) be duly organized and in good standing in its jurisdiction of 

organization, (B) have a mechanism that is acceptable for transferring 

funds to and receiving funds from the applicant’s Clearing Account, 

(C) have the legal authority and be duly authorized and empowered to 

become a Participant and to effect transactions on the Exchange, 

(D) appoint one or more Authorized Traders pursuant to Rule III-2, and 

(E) satisfy such other requirements or criteria as may from time to time be 

adopted by the Exchange.

Notwithstanding anything in the foregoing paragraphs (c) or (d) 

to the contrary:

(i) In considering any applicant for status as a Participant, an 

Authorized Trader of a Participant, or a Referring Participant, the 

Exchange may request additional information, or employ such other 

means that it deems desirable or appropriate, to ascertain relevant facts 

bearing on the applicant’s qualifications; and

(ii) The Exchange may limit trading in particular Contracts to 

specific Participants based upon financial, regulatory or other criteria 

established by the Exchange or the Exchange may limit a Referring 

Participant to acting in the capacity of Referring Participant for specific 

Contracts based upon regulatory or other criteria established by the 

Exchange. 

The Exchange in its sole discretion may deny (or may condition) 

the grant of Trading Privileges of any Participant or any Authorized Trader:

(i) if such Person is unable satisfactorily to demonstrate a capacity 

to adhere to all applicable Rules of the Exchange, Rules of the 

Clearinghouse and CFTC Regulations, including, to the extent applicable, 

those concerning record-keeping, reporting, finance and trading 

procedures;

(ii) if such Person would bring the Exchange into disrepute; or 

(iii) for such other causes as the Exchange may determine from 

time to time.

The Exchange in its sole discretion may condition or revoke a 

Participant’s Trading Privileges or, in the case of an Authorized Trader 

condition or revoke its association with a Participant, if any of the 
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circumstances specified in the preceding paragraph (f) exist with respect 

to such Participant or Authorized Trader, or such Participant or Authorized 

Trader:

(i) fails to meet any of the qualification requirements for Trading 

Privileges or association after such Trading Privileges or association have 

been approved;

(ii) fails to meet any condition placed by the Exchange on such 

Trading Privileges or association; or

(iii) violates any agreement with or Rule of the Exchange.

Futures commission merchants or other intermediaries shall not 

be permitted to submit trades in Contracts for execution on behalf of 

customers.

No Participant may refer or solicit another Person to become a 

Participant of the Exchange or to solicit another Participant to enter an 

Order on the Exchange, including providing related software, technical or 

other associated services except in accordance with the provisions of Rule 

III-11.

III-4. Application for Trading Privileges

Each application to become a Participant shall be in such form 

as may from time to time be prescribed by the Exchange. Each applicant 

to become a Participant shall promptly update the application materials if 

any of the information provided therein becomes inaccurate or incomplete. 

The Exchange shall act upon, and approve or disapprove, any such 

application without unreasonable delay.

Each applicant to become a Participant shall:

(i) submit to the Exchange executed forms of all application 

documents;

(ii) pay to the Exchange such initial fee as may be prescribed by 

the Exchange from time to time; and

(iii) agree in written or electronic form to abide by these Rules and 

Applicable Law.

Upon the Exchange’s approval of an applicant’s Participant application and 

upon the Exchange’s confirmation that the initial fee payable by the applicant has been 
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paid to the Exchange, the applicant shall become a Participant and obtain Trading 

Privileges. 

III-5. Fees and Payments

(a) The Board of Directors shall have the sole authority to set the 

times and amounts of any fees to be paid by Participants or any payments 

to be paid by the Exchange to Referring Participants, which fees or payments 

shall be paid when due. The Exchange shall disclose to Referred 

Participants whether it makes payments for referrals to Referring 

Participants. 

(b) If a Participant fails to pay when due any Exchange fees or 

other amounts due on such Participant, and such payment obligation 

remains unsatisfied for 30 Business Days after its due date, the Exchange 

as it deems necessary or appropriate may suspend, revoke, limit, condition, 

restrict or qualify the Trading Privileges of such Participant and its Authorized 

Traders. 

(c) If a Referring Participant fails to pay when due any Exchange 

fees or other amounts due on such Referring Participant, and such payment 

obligation remains unsatisfied for 30 Business Days after its due date, the 

Exchange as it deems necessary or appropriate may suspend, revoke, limit, 

condition, restrict or qualify the permission of a Referring Participant to act 

in the capacity of a Referring Participant. 

III-6. [RESERVED]

III-7. Application of Rules and Jurisdiction Following Termination

By accessing, or entering any Order into, the CX Direct System, 

and without any need for any further action, undertaking or agreement, a 

Participant and its Authorized Traders agree (i) to be bound by, and comply 

with, the Rules of the Exchange, the Rules of the Clearinghouse and 

Applicable Law, in each case to the extent applicable to it, and (ii) to 

become subject to the jurisdiction of the Exchange with respect to any and 

all matters arising from, related to, or in connection with, the status, actions 

or omissions of such Participant and its Authorized Traders. 

Any Participant and its Authorized Traders whose Trading 

Privileges are revoked or terminated shall remain bound by the Rules of 

the Exchange, the Rules of the Clearinghouse and Applicable Law, in each 

case to the extent applicable to it, and subject to the jurisdiction of the 

Exchange with respect to any and all matters arising from, related to, or in 

connection with, the status, actions or omissions of such Participant and 

its Authorized Traders prior to such revocation or termination.
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III-8. Recording of Communications

The Exchange may record conversations and retain copies of electronic 

communications between officers, employees or agents of the Exchange, on one hand, 

and Participants or Authorized Traders, on the other hand. Any such recordings may be 

retained by the Exchange in such manner and for such periods of time as the Exchange 

may deem necessary or appropriate but in no event less than the retention periods 

necessary to comply with Commission Rule 1.35. The NFA will have access to such 

recordings to the extent required to perform certain regulatory services to the Exchange 

pursuant to the Regulatory Services Agreement.

III-9. Notices

The Exchange shall publish a notice with respect to each addition to, 

modification of, or clarification of, the Rules of the Exchange or of any action to implement 

any Rules of the Exchange, in a form and manner that is reasonably designed to enable 

each Participant and its Authorized Traders to become aware of and familiar with, and to 

implement any necessary preparatory measures to be taken by it with respect to, such 

addition or modification, prior to the effective date thereof; provided that any failure of the 

Exchange to so publish a notice shall not affect the effectiveness of the addition or 

modification in question. For purposes of publication in accordance with the first sentence 

of this Rule III-9, it shall be sufficient (without limiting the discretion of the Exchange as to 

any other reasonable means of communication) if a notice is published on the Exchange’s 

website.

III-10. Communications between the Exchange and Participants

Each Participant must provide the Exchange with the current electronic mail 

address for each of its Authorized Traders and its Responsible Agent and immediately 

(and in any event within 24 hours) update each such address whenever it changes. All 

communications between the Exchange and the Participant (and its Authorized Traders 

and/or Responsible Agent) will be transmitted by electronic mail and/or posted on the 

Exchange website. Each Participant will be responsible for promptly reviewing and, if 

necessary, responding to all electronic communications from the Exchange. The NFA 

will have access to such communications to the extent required to perform certain 

regulatory services to the Exchange pursuant to the Regulatory Services Agreement.

III-11. Referral and Solicitation of Participants and Orders

Notwithstanding anything to the contrary in these Rules, a 

Participant may refer or solicit another Person to become a Referred 

Participant or may solicit a Referred Participant’s Orders, and may provide 

software, technical or other associated services, upon being notified by the 

Exchange under the procedures specified in paragraph (b) that the 

Referring Participant satisfies, and remains in compliance with, the 
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following conditions and is being permitted by the Exchange to act in the 

capacity of Referring Participant. The Referring Participant must:

(i) be a Participant in good standing with the Exchange;

(ii) if applicable, be registered with the National Futures Association 

in an appropriate registration category, or be exempt from such 

registration;

(iii) submit to the Exchange such additional forms and agreements 

as the Exchange shall require and promptly update any information 

provided therein that becomes inaccurate or incomplete;

(iv) maintain an amount of funds on deposit (the level of such 

amount(s) to be determined by the Exchange in the Exchange’s sole 

discretion) for as long as the person remains a Referring Participant of the 

Exchange. Such amount, minus any financial obligations payable to the 

Exchange, shall be returned to the Referring Participant upon the 

Referring Participant’s withdrawal from the Exchange or revocation of 

such Person’s status as a Referring Participant; provided however, that in 

establishing the level of such deposits, the Exchange may implement a 

tiered structure with the level of deposit corresponding to a particular 

category of Participant; 

(v) provide a means acceptable to the Exchange of identifying to 

the Exchange those Participants which it refers or solicits, and the referred 

Participant’s acknowledgment that it has been referred; 

(vi) demonstrate sufficient technical and operational capabilities to 

meet Exchange technical specifications and requirements as specified by 

the Exchange from time to time;

(vii) solicit or refer Persons to become a Participant or solicit their 

Orders to the Exchange via:

(A) electronic media of the Referring Participant approved by 

the Exchange;

(B) electronic media made available to the Referring 

Participant by the Exchange; or 

(C) such other method as the Exchange may accept from time 

to time;

(viii) satisfy such other requirements or criteria as may from time to 

time be adopted by the Exchange under these Rules.
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(ix) For the avoidance of doubt, a Referring Participant shall not 

enter Orders into the CX Direct System on behalf of a Referred Participant 

as the Authorized Trader of a Referred Participant or in any other capacity.

Following a request by a Participant for a determination by the 

Exchange that the Participant meets the conditions of paragraph (a) to act 

as a Referring Participant, the Exchange shall notify such Participant 

without unreasonable delay whether such Participant is permitted by the 

Exchange to refer or solicit Participants or their Orders. Provided, 

however, the Exchange may limit its permission to particular Contracts. 

The Exchange in its sole discretion may deny, condition or 

revoke its permission to a Referring Participant to act as a Referring 

Participant. Any such action may be appealed by the Referring Participant 

in accordance with the procedures under the provisions of Chapter VII, 

provided, however, that such sanction shall continue in effect during the 

appeal. The Exchange may take such action to deny, condition or revoke 

its permission, if: 

(i) upon request, the Referring Participant is unable satisfactorily to 

demonstrate a capacity to adhere to all applicable Rules of the Exchange, 

Rules of the Clearinghouse, CFTC Regulations and Applicable Law; 

(ii) at any time the Referring Participant fails to meet any of the 

conditions in paragraph (a); 

(iii) the Referring Participant fails to meet any limitation placed by 

the Exchange on its permission to the Referring Participant under 

paragraph (b); 

(iv) the Referring Participant violates any agreement with the 

Exchange;

(v) the actions or activities of the Referring Participant would bring 

the Exchange into disrepute; 

(vi) in the discretion of the Exchange, such action is in the best 

interests of the Exchange or for such other causes as the Exchange may 

determine from time to time.

Upon granting permission to a Referring Participant to act in that 

capacity, the Exchange shall record the referral relationship between a 

Participant and the Referring Participant in its account records and shall 

make available daily reports and information about the referred account 

activity in such form and manner as the Exchange shall from time to time 

determine.
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CHAPTER XICHAPTER IV 
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TRADING STANDARDSGeneral Trading Provisions

XI-1 IV-1. Contracts Traded on the ExchangeContract Specifications

The Exchange shall determine which Contracts are available for trading 

subject to the Rules of the Exchange from time to time and, subject to the provisions of 

Rule IX-1, approve rules containing the specifications for such Contracts, provided that 

certifications or applications with respect to such Contracts shall be submitted to the 

CFTC as required by the CEA and CFTC Regulations.

Each Contract will meet such specifications, and all trading in such Contract will be subject 

to such procedures and requirements, as set forth in the rules governing such Contract.

XI-2 IV-2. Trading Days and Trading HoursContract Modifications

The specifications for, and the procedures and requirements for trading, any Contract may 

not be modified in any respect without the prior approval of the Exchange.

The Exchange shall from time to time determine (a) the Trading 

Days during any particular calendar year and (b) the Trading Hours with 

respect to any particular Contract. All time references shall be based on 

local time prevailing in The City of New York, New York, unless otherwise 

expressly set forth in the relevant Contract Rules. Opening times start on 

the first second of the minute cited. Closing times end on the first second 

of the minute cited. Trading Hours may vary among different Contracts. 

No Participant may make any bid or offer for, or engage in any transaction 

in, any Contract before or after such hours.

Trading will be suspended during periods the Exchange 

schedules for routine maintenance and during any announced periods of 

non-routine maintenance. In the event that trading is suspended either for 

routine or non-routine maintenance, notice will be given to Participants as 

promptly as practicable both by posting of a notice on the Exchange’s 

website and by e-mail directly to each Participant.

The Exchange may from time to time adopt procedures for the 

opening or closing of trading in any Contract.

IV-3. Order Entry

The Authorized Traders of each Participant shall enter Orders by electronic 

transmission to, and shall be required to provide the information required on the order 

entry page of, the CX Direct System. The Exchange shall maintain an electronic record 

of those entries. Each Participant shall be responsible for any and all Orders in each of 

its Trading Accounts to be entered by any of its Authorized Traders. 
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IV-4. Financial Requirements for Order Entry and Executions

Participants are required to have sufficient funds on deposit with 

the Clearinghouse such that any executed Orders will “PASS” the credit 

check as described in Rule IV-4(h).

To facilitate compliance with Rule IV-4(a), the Exchange shall 

establish a maximum Order size for each Trading Account of each 

Participant based upon the Participant’s Available Funds, the size of the 

Participant’s Participant Clearing Account, the Participant’s trading 

behavior, and any other factors that the Exchange deems relevant.

To facilitate compliance with Rule IV-4(a) the Exchange, in its 

sole discretion and from its own funds, may advance funds for immediate 

use to a Participant’s Clearing Account provided that: 

(i) Such Participant has Trading Privileges;

(ii) such Participant has submitted a bona-fide Funds Deposit 

Request;

(iii) such Funds Deposit Request is being processed in the normal 

course of banking transactions by the Clearinghouse;

(iv) such amount shall not exceed the lesser of the Funds Deposit 

Request or $1,000.

Notwithstanding the provisions of paragraph (c) of this Rule, in 

the event that any Funds Deposit Request has not cleared the Participant’s 

issuing bank or are otherwise deemed as non-collectable by the 

Clearinghouse then such Participant shall be subject to a summary fine not 

to exceed $2,500 for each such Funds Deposit Request.

Nothing hereinabove shall be deemed a limitation or waiver of 

the Clearinghouse’s rights to enforce its own rules respecting the collection 

of Original Margin (as defined in the rules of the Clearinghouse).

The Exchange shall review the maximum Order size for each 

Trading Account within 15 days of the end of each calendar quarter and at 

any other time at which the Participant deposits funds or withdraws funds 

from the Participant’s Participant Clearing Account. The maximum Order 

size for any Trading Account may be revised by the Exchange at any of 

the foregoing times, or at any time that the Exchange determines it 

necessary to make any such revision based on market conditions, a 

Participant’s trading activity or other reasons as the Exchange deems 

appropriate.
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Notwithstanding the imposition of the limits described in Rule 

IV-4(b) and Rule IV-4(c), the Participant shall remain solely responsible for 

compliance with the Rules of the Exchange and the Rules of the 

Clearinghouse.

When a bid and offer for Contracts are matched on the trading 

facilities of the Exchange (each such occurrence, a “Matched Trade”), the 

Clearinghouse shall undertake an immediate credit check prior to such 

matched trade being confirmed to any of the purchaser, the seller or the 

Clearinghouse. The credit check procedures shall be as follows:

(i) For liquidating Orders, or any portion of a matched trade that 

represents a liquidating quantity, the credit check shall “PASS”.

(ii) For the establishment of new positions or an increase in size of 

existing positions, or any portion of a liquidating trade that would create a 

new position or add to an existing position, the credit check shall PASS if 

and only if the funds immediately available in the applicable Participant 

Clearing Account are greater than or equal to the Original Margin required 

to establish the new position or increase an existing position.

(iii) The credit check will “FAIL” if the funds immediately available 

in the applicable Participant Clearing Account are less than the Original 

Margin required to establish the new position or increase an existing 

position. In such case, the size of the matched trade shall be reduced 

such that the minimum quantity of Contracts that would PASS the credit 

check, if any, based on the level of Original Margin in the applicable 

Participant Clearing Account, will be matched. Any remaining portion of 

the purchaser’s or seller’s Order that would have passed the credit check 

had the purchaser or seller’s Order originally been limited to such amount 

shall be restored with its original price and time priority to the Master Order 

Book and any remaining portion of the purchaser’s or seller’s Order that 

failed the credit check shall be cancelled. 

If a standing Limit Order “FAILS”, as described in Rule IV-4(h) 

above, then the Exchange will notify the Participant of such event via email.

IV-5. Acceptable Orders

At the discretion of the Exchange, the following types of Orders, as well as 

any other types that may be approved from time to time, may be entered into the CX 

Direct System by Participants (via their Authorized Traders) with respect to a Contract:

(i) Limit Orders. A “Limit Order” is an Order to purchase or sell a 

Contract at a specified price or better. A Limit Order will be executed when 

entered to the extent that there are opposite Orders open in the CX Direct 
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System, with any balance to remain as an open Order until it is executed 

or is cancelled, or until it expires at the End of Trading on the Trading Day 

designated on such Order. 

(ii) Market Orders. A “Market Order” is an Order to purchase or sell 

a Contract at the best price available in the CX Direct System at the time 

the Order is entered. A Market Order will be executed when entered to 

the extent that there are opposite Orders open in the CX Direct System, 

with any balance cancelled. 

IV-6. Modification and Cancellation of Orders

Any Order that has been entered into the CX Direct System may be 

modified or cancelled unless and until it has been executed or has otherwise expired. 

Any such modification or cancellation requires that a Cancel Replace Order or Cancel 

Order, as the case may be, with respect to the original order be entered into the CX Direct 

System. Such modification or cancellation will become effective upon the issuance of an 

acknowledgement by the CX Direct System of the Cancel Order or Cancel Replace Order, 

as the case may be.

IV-7. Execution of Orders by the CX Direct System

Orders to buy or sell any Contract are subject to the minimum trading 

requirements specified in the relevant Contract Rules and any margin requirements as 

imposed from time to time in the relevant Contract Rules or by the Clearinghouse. All 

Orders are matched with each other and executed electronically through the CX Direct 

System in accordance with an algorithm that gives first priority to Orders at the best price 

and priority among Orders entered at the same price based on their time of entry into the 

CX Direct System, with the Order first entered receiving first priority. Without limiting the 

generality of the foregoing, the algorithm to match Orders entered in the CX Direct System 

is based upon the following principles:

An Order at a better price will always have priority over Orders 

at inferior prices. As among Orders at the same price, an Order with time 

priority will be executed before Orders that have been entered after the 

Order with time priority. An Order with time priority will not lose such priority 

if the quantity of the Order is subsequently reduced. However, an Order 

will lose its time priority if the price of the Order is changed. 

After the commencement of Trading Hours on a Trading Day for 

a particular Contract (or, with respect to any Contract which trades on a 24 

hour, continuous basis, after the commencement of trading on the first 

Trading Day for such Contract), time priority will be assigned to the first 

Order at a price that betters the best price prevailing when the Order is 

received. Only one buy Order and one sell Order can have time priority at 
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any given time. Orders with time priority will be matched first regardless of 

their respective sizes.

An Order will not lose time priority with respect to Orders at the 

same price if and when an Order at a better price is entered, but it will lose 

price priority.

Once an Order with time priority has been filled, the algorithm 

described herein will be applied to the remaining Orders at the same price. 

Thus, the Order received immediately after the Order that initially had time 

priority will be assigned time priority and be the next Order to be executed 

at such price.

Notwithstanding anything in these Rules to the contrary, the Exchange may 

at any time use a different matching algorithm for a particular Contract by giving notice of 

such algorithm to all Participants at least 10 Trading Days before such algorithm is 

implemented.

IV-8. Daily Settlement Price Determination

The daily Settlement Price of each Contract, for purposes of 

determining any amounts of margin due on Open Contract Positions, will 

be established by the Exchange as soon as practicable after the End of 

Trading on each Trading Day.

Subject to the provisions of Rule IV-7(c) and Rule IV-7(d), the 

Settlement Price of a Contract shall equal the last reported trading price of 

such Contract on the applicable Trading Day; provided, however, that, as 

of the End of Trading, if (i) the best bid is above or (ii) the best offer is below 

the last reported trading price of such Contract on such Trading Day, the 

Settlement Price shall be equal to such bid or offer price.

If there were no trades of such Contracts on such Trading Day, 

then the Settlement Price shall equal the Settlement Price at the End of 

Trading on the prior Trading Day.

In the case of the First Trading Day of any Contract, the 

Settlement Price, for the purpose of commencing continuous trading on the 

Exchange at the conclusion of the Opening Auction, if such an Opening 

Auction is conducted, shall equal the Equilibrium Price of such Contract.

Pursuant to CFTC Regulation 16.01(b)(3), the Exchange shall 

make readily available to the public, in printed form at the office of the 

Exchange and on its website, this Rule IV-8 as the method used by the 

Exchange in determining nominal prices and Settlement Prices. Discretion 

may be used by the Exchange in determining the Settlement Prices in 
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those instances when bids, offers, or trades normally used in the 

calculation of Settlement Prices are deemed by the President as not 

representative of closing market conditions.

IV-9. Market Crossing

The Exchange may from time to time adopt procedures for facilitating 

crossing of orders through the CX Direct System.

IV-10. Information Regarding Orders

The Exchange may make information regarding Orders (including prices bid 

or offered), trades and any other matters it may deem appropriate available to 

Participants, Authorized Traders and other Persons at such times and in such manner 

(whether through the CX Direct System, a ticker, financial information services or 

otherwise) as it may consider necessary or advisable from time to time.

Each Participant, Authorized Trader or other Person receiving any such 

information through the CX Direct System is expressly prohibited from redistributing such 

information unless expressly permitted by the Exchange. Employees and agents of the 

Exchange shall have access to the offices of any Participant and each of its Authorized 

Traders during regular business hours in order to observe the compliance by such 

Participant and its Authorized Traders with the immediately preceding sentence.

IV-11. Errors 

If an Order was incorrectly executed or rejected by the CX Direct 

System, a Participant or its Authorized Trader may, within ten minutes 

thereafter, request review of the Order by providing the confirmation 

number for the Order and stating the grounds for the disagreement.

Upon receipt by the Exchange of a request for review of an 

Order and the accompanying confirmation number, the Exchange will 

review its electronic audit trail to determine if the CX Direct System 

correctly interpreted and executed the Order. Such review will be 

completed (i) on the same Business Day if the Exchange received such 

request for review prior to 12:00 Noon on any Business Day or (ii) by the 

end of the following Business Day if such request was received (x) on or 

after 12:00 Noon on any Business Day or (y) on any day that is not a 

Business Day.

If the review described in Rule IV-11(b) reveals that the Order 

was incorrectly handled, then the Order in question shall be cancelled in 

the Trading Accounts of all affected Participants.
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If the review described in Rule IV-11(b) reveals that the Order 

was correctly handled, then no adjustment shall be made in the Trading 

Accounts of any Participants.

Notwithstanding anything to the contrary in this Rule IV-11, if 

the Exchange determines in its sole discretion that the execution of any 

trade was the result of Orders being incorrectly processed by the CX Direct 

System, or any other cause beyond the control of any Participant, then the 

Exchange may cancel such trade in the Trading Accounts of all affected 

Participants.

XI-3 IV-12. Position Limits and Position Accountability

Position Limits. Position limits shall be established by the 

Exchange from time to time for all contracts except for those contracts 

subject to Position Accountability levels under paragraph (b). Such 

position limits may be specific to a particular Contract, as set forth in the 

relevant Contract Rules, or delivery month or may be established on an 

aggregate basis among Contracts. Except as specified in paragraph (b) 

and (c) below, no Person shall control, or trade in, any number of Contracts 

that exceeds any position limits so established by the Exchange. Except 

as specified in paragraph (b) and (c) below, no Person shall be permitted 

to enter into any transaction on the Exchange that would cause such 

Person to exceed any position limits.

(i) A Participant may apply to the Exchange, in accordance with 

paragraph (d) below, for certain qualified hedge transactions to be exempt 

from the position limits that would otherwise apply. For purposes of this 

Rule IV-12, the term “qualified hedge transaction” shall include any 

transaction or position in a particular Contract that represents a substitute 

for transactions to be made or positions to be taken at a later time in the 

instrument underlying such Contract or that is otherwise appropriate to the

reduction of risks arising in connection with commercial or investment 

activities related to the instrument underlying such Contract, provided that 

the transaction entered into or position taken on the Exchange is 

economically appropriate to reduce risks arising from:

(A) any potential change in the value of assets that a 

Participant or one or more of its Affiliates owns, produces, 

manufacturers, processes or merchandises, or to which such person 

otherwise has exposure in connection with a commercial or 

investment activity, or anticipates owning, producing, manufacturing, 

processing, or merchandising, or to which such person otherwise 

has exposure in connection with a commercial or investment activity;
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(B) any potential change in the value of liabilities that a 

Participant or one or more of its Affiliates owes or anticipates 

incurring;

(C) any potential change in the value of services that a 

Participant or one or more of its Affiliates provides, purchases or 

anticipates providing or purchasing; or

(D) any other good cause shown, as determined by the 

Exchange, in its sole discretion.

(ii) On the basis of an application to the Exchange in accordance 

with paragraph (d) below, and such supplemental information as the 

Exchange may request, the Exchange will determine whether to approve 

a particular transaction as an arbitrage or spread transaction. In granting 

any such approval, the Exchange may impose such limitations as it may 

deem necessary or appropriate in light of the liquidity of the markets 

involved and the financial condition and business circumstances of the 

Participant and one more of its Affiliates. Subject to any such limitations, 

transactions approved in accordance with the immediately preceding 

sentence shall be exempt from the position limits that would otherwise 

apply.

(iii) Any application for an exemption from position limits for a 

hedging, arbitrage or spread transaction must be made by the relevant 

Participant wishing to enter into the transaction or wishing to take the 

position at issue to the Exchange in such form, and within such time limits, 

as the Exchange may from time to time prescribe. Without limiting the 

foregoing, any such application must include the following:

(A) If a qualified hedge transaction, an arbitrage transaction 

or a spread transaction, a representation that such transaction or 

position constitutes a qualified hedge transaction, an arbitrage 

transaction or a spread transaction, as the case may be, and is not 

used in an attempt to violate or avoid any Rule of the Exchange;

(B) If a qualified hedge transaction, a representation that such 

transaction or position is necessary or advisable as an integral part 

of the business of such Participant or one or more of its Affiliates, 

which representation shall also include a description of such 

business;

(C) If an arbitrage or spread transaction, an undertaking that 

the prospective arbitrageur or spreader will specify the extent of the 

current or planned activity in the cash market underlying the Contract 
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for which such exemption is requested by the Participant or one or 

more of its Affiliates;

(D) If an arbitrage or spread transaction, a representation that 

the positions involved are moved in an orderly manner and not 

initiated or liquidated in a manner calculated to cause unreasonable 

price fluctuations or unwarranted price changes;

(E) A representation that such Participant or one more of its 

Affiliates has complied with any applicable federal requirement 

relating to hedging, arbitrage or spread transactions, as the case 

may be, and has obtained any and all necessary approvals from the 

CFTC;

(F) A schedule of the maximum number of Contracts, long and 

short, that such Participant intends to enter into for hedging, arbitrage 

or spread transaction purposes, as the case may be;

(G) An agreement that such Participant will comply with any 

additional limits on its trading as the Exchange may from time to time 

impose; and

(H) An agreement by such Participant to submit promptly a 

supplemental statement explaining any change in circumstances 

that may affect the nature of its positions.

(iv) Any exemption from the speculative position limits for hedging 

purposes must be renewed annually, by filing a renewal application in 

accordance with this paragraph (d).

(v) In determining whether any Participant has exceeded the 

position limits established by the Exchange, all positions in Trading 

Accounts for which such Participant or any of its Affiliates, by power of 

attorney or otherwise, directly or indirectly controls trading shall be 

included. Position limits shall apply to positions held by two or more 

Persons acting pursuant to an express or implied agreement or 

understanding in the same manner as if such positions were held by a 

single Person.

(vi) The Exchange shall have the authority to review and rescind 

any exemption granted by him or her pursuant to paragraphs (b) and (c) 

above at any time in its sole discretion.

(vii) For purposes of paragraph (e) above, “control” is presumed to 

exist when the Person in question makes investment decisions for the 

Trading Account or Trading Accounts in question or materially influences, 
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directly or indirectly, the actions of any Person who makes such 

investment decisions. In addition, “control” will be presumed to exist in 

the following circumstances:

(A) Among all parties to a joint Trading Account who have 

authority to act on behalf of such Trading Account;

(B) Among all general partners to a partnership Trading 

Account;

(C) If a Person (A) holds an ownership interest of 10 percent 

or more in the Person holding the Trading Account or Trading 

Accounts in question, or (B) shares in 10 percent or more of the 

profits or losses related to such Trading Account or Trading 

Accounts;

(D) If the Persons holding the Trading Account or Trading 

Accounts in question have common directors or management; or

(E) If a Person has the authority to execute transactions in the 

Trading Account or Trading Accounts in question.

(viii) Any presumption of control on the basis of the foregoing 

circumstances can be rebutted by proving that such circumstances do not 

exist or by showing other circumstances which negate the presumption of 

control. Initial determinations of “control” shall be made by the President 

or his or her designee.

(a) Position Accountability

(i) Position Accountability levels shallmay be 

established by the Exchange, in its discretion, from time to 

time, for contractsContracts having a highly liquid and deep 

cash market. Such Position Accountability levels may be 

specific to a particular Contract, as set forth in the relevant 

Contract Rules, or delivery month or may be established on an 

aggregate basis among Contracts.

(ii) The Compliance Department may, at any 

time, require a person who owns or controls positions in 

contracts traded on the Exchange or cleared by the 

Clearinghouseapplicable clearinghouse which exceed a 

Position Accountability level to which such person is subject 

to provide information relating to the nature and size of such 

person’s position; the trading strategy employed with respect 

to the position; as relevant, information supporting a 
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determination of the hedging nature of the position; and such 

other information as the Compliance Department may request.

(iii) The Compliance Department may order the 

reduction of such position to the Position Accountability level 

of any person who fails to provide the information as directed.

(iv) A person who holds or controls aggregate 

positions in excess of a specified Position Accountability level 

shall be deemed to have consented not to further increase the 

size of such person’s position, or to reduce any open position 

which exceeds the Position Accountability level as directed by 

the head of the Compliance Department, in his or her sole 

discretion.

(v) For purposes of this section (b), all positions 

in accounts for which a person, by power of attorney or 

otherwise, directly or indirectly holds positions or controls 

trading shall be included with the positions held by such 

person. Positions held by two or more persons acting pursuant 

to an expressed or implied agreement or understanding shall 

be treated the same as if the positions were held by a single 

person.

XI-4 IV-13. Price Limits and Temporary Trading Halts

(a) On each Trading Day, the amount by which the price of a Contract may 

increase or decrease is limited to an amount specified in the applicable Contract Rules, provided 

that, in each case, the Exchange shall have the authority, under extraordinary market 

circumstances, to set daily price limits at different levels if, in the reasonable judgment of the 

Exchange, such action is warranted for the protection of the market and Participants.

(b) Price limits with respect to any Contract will be determinedcalculated as soon 

as practicable following the End of Trading each Trading Day based on the then-applicable 

Settlement Price. A Contract will not be allowed to trade beyond the price limit until after new 

price limits are established following the End of Trading on the next succeeding Trading Day.

IV-14. Reportable Positions

The Exchange shall meet the requirements of paragraphs (a) 

through (h) of CFTC Regulation 17.00 as they apply to trading in any 

Contracts that qualify as “exclusively self-cleared contracts” within the 

meaning of CFTC Regulation 15.00.
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IV-15. EFP Transactions

A bona fide EFP may, subject to the relevant Contract Rules, 

be entered into by an Authorized Trader with respect to any Contract in 

accordance with the applicable trading increments set forth in the relevant 

Contract Rules, at a price mutually agreed upon by the parties to such 

transaction. Contingent EFP transactions are not permitted. Each EFP 

must contain the following three essential elements:

(i) a Futures transaction and a cash transaction that are integrally 

related;

(ii) an exchange of Futures for the underlying commodity where the 

commodity contract provides for the transfer of ownership of the 

commodity to the cash buyer upon performance of the terms of such 

contract, with delivery to take place within a reasonable time thereafter, in 

accordance with prevailing cash market practice; and

(iii) separate Persons, such that the Trading Accounts involved on 

each side of the EFP have different beneficial ownership or are under 

separate control.

In every EFP, one party must be the buyer of the commodity 

and the seller of the corresponding Futures and the other party must be 

the seller of the commodity and the buyer of the corresponding Futures. 

Prices reported of the commodity and the corresponding Futures must 

correspond to prevailing market levels of each. Further, the quantity of the 

commodity traded in an EFP must be substantially equivalent to the 

quantity of the commodity represented by the Futures portion of the 

transaction.

EFP transactions must be reported to the Exchange in a manner 

prescribed from time to time by the Exchange. EFP transactions executed 

during Trading Hours must be reported to the Exchange within 30 minutes 

of agreement by the parties and no later than 15 minutes prior to the End 

of Trading for such Contract on such Trading Day.

EFP transactions executed after the End of Trading must be 

reported within 15 minutes after the opening of the next Trading Day with 

respect to the underlying Contract.

For EFP transactions between the Authorized Traders of two 

Participants, the Exchange requires the Participants granting Trading 

Privileges to each of the Authorized Traders to report the transaction.
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The Exchange will review the information submitted by the 

Participants for the EFP transaction and will post the transaction to the CX 

Direct System if the transaction details are complete and accurate in 

accordance with this Rule. The Exchange will immediately publicize 

information identifying the transaction as an EFP trade and identifying the 

relevant Contract, contract month, quantity and, if applicable, whether the 

transaction involved a put or a call and the strike price.

Each Participant involved in an EFP shall maintain records 

evidencing compliance with the criteria set forth in this Rule IV-15. Upon 

request, such Participant shall provide documentation evidencing the 

underlying cash transaction to the Exchange or the NFA.

EFP transactions are not permitted during the last Trading Day 

for a Contract delivery month.

EFP prices will not trigger unexecuted Orders.

Notwithstanding anything to the contrary in this Rule IV-15, an 

EFP may only be executed with respect to Contracts for which such 

transactions are expressly permitted by the applicable Contract Rules.

IV-16. Block Trading

Participants may, subject to the relevant Contract Rules, enter 

into transactions outside the CX Direct System, at prices mutually agreed, 

with respect to Contracts that have been designated by the Exchange for 

such purpose (each, a “Block Trade Contract”), provided that all of the 

following conditions are satisfied (each such transaction, a “Block Trade”): 

(i) Each buy or sell Order underlying a Block Trade must (A) state 

explicitly that it is to be, or may be, executed by means of a Block Trade, 

(B) be for at least such minimum number of Contracts as may from time 

to time be specified by the Exchange, and CFTC Regulations and 

(C) meet any other applicable CFTC Regulations governing block trades.

Prior to entering into a Block Trade, an Authorized Trader of one 

participating Participant must apply for a unique identifying number (a 

“Block Trader ID”) by such means as prescribed by the Exchange from 

time to time. Once issued, the Block Trader ID number will be valid for a 

period of 5 minutes only. Block Trades will only be accepted from 

Authorized Traders accessing the CX Direct System with a valid Block 

Trader ID.
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Each party to a Block Trade shall comply with all applicable 

Rules of the Exchange other than those which by their terms only apply to 

trading through the CX Direct System.

When negotiating or executing a Block Trade, an Authorized 

Trader must ensure that the price quoted for a Block Trade represents a 

fair price. When determining a fair price, an Authorized Trader should take 

into account the prevailing bids and offers and volume currently available 

in the CX Direct System.

Block Trades must be reported to the Exchange in a manner 

prescribed from time to time by the Exchange. Block Trades must be 

reported to the Exchange within 5 minutes after the completion of 

negotiations, but may not be submitted any later than 5 minutes prior to the 

End of Trading with respect to the underlying Contract.

For Block Trades between two Participants, the Exchange 

requires both Participants to report the Block Trade.

The Exchange will review the information submitted by the 

Participant(s) for the Block Trade and will post the Block Trade to the CX 

Direct System if the details are complete and accurate in accordance with 

this Rule. The Exchange will immediately publicize information identifying 

the trade as a Block Trade and identifying the relevant Contract, contract 

month, price or premium, quantity and, if applicable, whether the 

transaction involved a put or a call and the strike price.

Block Trades are not permitted during the last Trading Day for 

a Contract delivery month.

Block Trade prices will not trigger unexecuted Orders.

Each Participant that is party to a Block Trade shall record the 

following details on its order ticket: the Contract (including the expiry 

month) to which such Block Trade relates; the number of Contracts traded; 

the price of execution or premium; the time of execution; the identity of the 

counterparty; the underlying instrument, whether the transaction involved 

a put or a call and the strike price. Upon request by the Exchange, such 

Participant shall produce satisfactory evidence, including the order ticket 

referred to in the preceding sentence, that the Block Trade meets the 

requirements set forth in this Rule IV-16.

Under no circumstances shall Participants be permitted to 

aggregate Orders across multiple Trading Accounts or multiple 

Participants in order to meet any applicable minimum size for a Block 

Trade.
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Any Block Trade in violation of these requirements shall 

constitute conduct which is inconsistent with just and equitable principles 

of trade.

Notwithstanding anything to the contrary in this Rule IV-16, a 

Block Trade may only be executed (i) by Participants that are “Eligible 

Contract Participants,” as defined under the CEA and CFTC Regulations, 

and (ii) with respect to Contracts for which such transactions are expressly 

permitted by the applicable Contract Rules.

IV-17. Exchange of Futures for, or in connection with, Swap Transaction

An exchange of futures for, or in connection with, a swap 

transaction (“EFS”) may, subject to the relevant Contract Rules, be entered 

into by an Authorized Trader. An EFS consists of two bona fide, discrete, 

but related, transactions: a purchase and sale of Futures and a related 

swap transaction. At the time an EFS is effected, the buyer and seller of 

the Futures must be the seller and the buyer, respectively, of the swap. 

Prices reported of the Futures and the related swap transaction must 

correspond to prevailing market levels of each. The swap component of an 

EFS shall involve the commodity underlying the Futures, or a derivative, 

by-product or related product of such commodity. The quantity of such 

commodity covered by the swap must be approximately equivalent to such 

quantity covered by the Futures. The swap component of an EFS must 

comply with the requirements of the CEA and CFTC Regulations 

thereunder. Contingent EFS transactions are not permitted.

Notification of each EFS shall be given to and posted by the 

Exchange, in the manner from time to time specified by the Exchange, on 

the Trading Day on which such EFS is effected (or, in the case of an EFS 

entered into after the end of any Trading Day with respect to a particular 

Contract, then on the next succeeding Trading Day). Each EFS shall be 

cleared in accordance with normal procedures, shall be clearly identified 

and marked in the same manner as an EFP, and shall be recorded by the 

Exchange and by the Participants involved.

In addition to the notification required by paragraph (b) above, a 

report of each EFS shall be submitted to the Exchange by each Participant 

involved in clearing the Futures component of such EFS. Such report shall 

identify the EFS as having been effected under this Rule IV-17, and shall 

contain the following information: a statement that the swap component of 

the EFS complied with the requirements of the CEA and CFTC Regulations 

thereunder at the time the EFS was entered into, a statement that the EFS 

has resulted or will result in a change of payments or other such change, 

the kind and quantity of the Futures component, the price at which the 
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Futures component is to be cleared, the name of each Participant involved 

in the EFS, and such other information as the Exchange may require. Such 

report shall be submitted to the Exchange no later than 12:00 p.m. on the 

date that is two Trading Days after the date on which the relevant EFS is 

effected.

The Exchange has the right to require the parties to an EFS to 

demonstrate that such EFS is legitimate and satisfies the requirements set 

forth in paragraph (a) above. Upon request by the Exchange, all 

documentary evidence relating to an EFS, including a master swap 

agreement and any schedules and other documents related thereto, shall 

be obtained by the Participants involved in such EFS from the parties 

thereto, and made available by such Participants for examination by the 

Exchange.

Notwithstanding anything to the contrary in this Rule IV-17, an 

EFS may only be executed with respect to Contracts for which such 

transactions are expressly permitted by the applicable Contract Rules.

XI-5 IV-18. Transfers of Positions

(a) A Participant and its Authorized TradersResponsible Trading Agents (and 

Direct Access Customers in the case of the FMX Division) may transfer positions between their 

Trading Accounts in order to:

(i) correct errors in an existing Contract, 

provided that the original trade documentation confirms the 

error;

(ii) transfer an existing Contract from one 

Trading Account to another of the same Participant where no 

change in ownership is involved; or 

(iii) transfer an existing Contract through 

operation of law from death or bankruptcy.

(b) The provisions of Rule IV-18paragraph (a) of this Rule shall apply to any 

Trading Account maintained by a Participant with control over one or more Trading Accounts, 

whether or not such Trading Accounts are controlled by the same Authorized TraderResponsible 

Trading Agents of such Participant.

(c) Upon written request, the Exchange may, in its sole discretion, allow the 

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

transaction for a Person that is an organization.
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(d) The Exchange will transfer positions pursuant to this Rule IV-18XI-5 at the 

same prices that appear on the books of the transferring Participant, and the transfer will indicate 

the date when the original trade was made.

XI-6 EFP Transactions 

Reserved.

XI-7 Block Trading

Reserved.

XI-8 EFS Transactions

Reserved.

XI-9 IV-19. Emergencies

(a) General. In the event of an Emergency, the President or any individual 

designated by the President may place into immediate effect a temporary emergency rule, which 

may remain in effect for up to thirty (30) Trading Days and which may provide for, or may 

authorize the Board of Directors or any committee thereof to undertake, actions necessary or 

appropriate to respond to the Emergency, including such actions as:

(i) limiting trading to liquidation only, in whole 

or in part;,

(ii) changing the delivery month or extending or 

shortening the term of any Contract;,

(iii) changing delivery points or the means of 

delivery provided in any relevant Contract Rules;,

(iv) imposing or modifying position or price 

limits with respect to a particular Contract;,

(v) ordering the liquidation of Contracts, the 

fixing of a Settlement Price or any reduction in positions;,

(vi) ordering the exercise of Options on Futures;,

(vii) extending, limiting or changing the hours of 

trading;,

(viii) suspending or curtailing trading in any or all 

Contracts or modifying circuit breakers;,
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(ix) requiring Participants to meet special margin 

requirements; in the Customer Accounts they carry, or

(x) modifying or suspending any provision of the 

Rules of the Exchange or the Rules of the 

ClearinghouseLCH Limited.

Any such action placed into effect in accordance with the preceding sentence shall be 

reviewed by the Board of Directors as soon as practicable under the circumstances and may be 

revoked, suspended or modified by the Board of Directors.

(b) Physical Emergency. If, in the judgment of the President, or any individual 

designated by the President and approved by the Board of Directors, the physical functions of the 

Exchange are, or are threatened to be, severely and adversely affected by a physical emergency, 

such Person shall have authority to take such action as he or she may deem necessary or appropriate 

to respond to such physical emergency, including closing the Exchange, delaying the opening of 

trading in one or more Contracts or suspending trading in or extending trading hours for one or 

more Contracts. In the event that any action has been taken pursuant to the immediately preceding 

sentence, any Person who is authorized to take such action may order the removal of any restriction 

previously imposed pursuant to such sentence, upon a determination by such Person that the 

physical emergency that gave rise to such restriction has sufficiently abated to permit the physical 

functions of the Exchange to continue in an orderly manner. Any order by any Person pursuant to 

this sentence shall be subject to review, modification or reversal by the Board of Directors. In the 

event that trading is suspended in any or all Contracts, unexecuted Orders for the suspended 

Contracts that are currently resting in the CX DirectExchange Trading System will automatically 

be cancelled and must be resubmitted by the Participants upon resumption of trading in the affected 

Contracts.

(c) Notification and Recording. The Exchange will notify the CFTC of any action 

taken, or proposed to be taken, pursuant to this Rule IV-19XI-9 in accordance with CFTC 

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 interestconflict-of-interest provisions set 

forth in Rule IIX-10 and the related documentation requirements set forth in Rule IIX-10 shall 

apply, with any such modifications or adaptations as may be necessary or appropriate under the 

circumstances, to the taking of any action under this Rule IV-19XI-9 by the President, or his or 

her designee.

XI-10 Daily Reports

(a) The Exchange will post on its website the current volume, open interest, last 

Settlement Price and Price Limits for all active Contracts on each Trading Day.

(b) The Exchange may publish additional reports from time to time in accordance with, 

and as specified in, the applicable Contract Rules.
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XI-11 Message Traffic Limits

The President or his delegate may at any time restrict or establish utilization fees in respect 

of Message Traffic in order to safeguard the security or operations of the Exchange Trading 

System, or to preserve market integrity or fair and orderly trading, or if otherwise in the public 

interest. For the avoidance of doubt, this includes blocking all Message Traffic from an FMX 

Participant where such action is appropriate to safeguard the security of the Exchange of to 

preserve market integrity or fair and orderly trading.

XI-12 Application of Rules and Jurisdiction Following Termination

(a) By accessing, or entering any Order into, the Exchange Trading System, and 

without any need for any further action, undertaking or agreement, a Participant and its Direct 

Access Customers, as applicable, Customers and Responsible Trading Agents agree (i) to be bound 

by, and comply with, the Rules of the Exchange, the Rules of the CX Clearinghouse or the Rules 

of LCH Limited, as applicable, and Applicable Law, in each case to the extent applicable to it, and 

(ii) to become subject to the jurisdiction of the Exchange with respect to any and all matters arising 

from, related to, or in connection with, the status, actions or omissions of such Participant and its 

Direct Access Customers and Responsible Trading Agents.

(b) Any CX Participant or FMX Participant, its Direct Access Customers and 

Responsible Trading Agents whose Trading Privileges are revoked or terminated and any 

Customers of such FMX Participant shall remain bound by the Rules of the Exchange, the Rules 

of the CX Clearinghouse, the Rules of LCH Limited, as applicable, and Applicable Law, in each 

case to the extent applicable to it, and subject to the jurisdiction of the Exchange with respect to 

any and all matters arising from, related to, or in connection with, the status, actions or omissions 

of such Participant, and its Direct Access Customer as applicable and its Responsible Trading 

Agent prior to such revocation or termination.

XI-13 Recording of Communications

The Exchange may record conversations and retain copies of electronic communications 

between officers, employees or agents of the Exchange, on one hand, and Participants, Direct 

Access Customers or Responsible Trading Agents, on the other hand. Any such recordings may 

be retained by the Exchange in such manner and for such periods of time as the Exchange may 

deem necessary or appropriate but in no event less than the retention periods necessary to comply 

with CFTC Regulations1.31, 38.950 and, for swaps, 45.2(c). The NFA will have access to such 

recordings to the extent required to perform certain regulatory services to the Exchange pursuant 

to the Regulatory Services Agreement.

XI-14 Notices

The Exchange shall publish on its website a notice with respect to each addition to, 

modification of, or clarification of, the Rules of the Exchange or of any action to implement any 

Rules of the Exchange, in accordance with the requirements of the relevant sections of Part 40 of 

the CFTC’s Regulations and in a form and manner that is reasonably designed to enable each 
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Participant, Direct Access Customer as applicable, and Responsible Trading Agents to become 

aware of and familiar with, and to implement any necessary preparatory measures to be taken by 

it with respect to, such addition or modification, prior to the effective date thereof.

XI-15 Proprietary Nature of Market Data

All Participants, Direct Access Customers, and Responsible Trading Agents:

(a) acknowledge the Exchange’s proprietary interest in Market Data as well as all 

related trade data and settlement prices relating to all Contracts traded through the Exchange 

Trading System or subject to Exchange Rules; and 

(b) agree to comply with any reasonable policies that the Exchange publishes from time 

to time relating to the protection of such proprietary interest.

XI-16 IV-20. Limitation of Liability

EXCEPT AS OTHERWISE PROVIDED IN THESE RULES, AND EXCEPT IN 

INSTANCES WHERE THERE HAS BEEN A FINDING OF WILLFUL OR WANTON 

MISCONDUCT OR GROSS NEGLIGENCE, IN WHICH CASE THE PARTY FOUND TO 

HAVE ENGAGED IN SUCH CONDUCT CANNOT AVAIL ITSELF OF THE PROTECTIONS 

IN THIS RULE IV-20XI-16, NEITHER THE EXCHANGE (INCLUDING ITS AFFILIATES 

AND ANY CONTRACTORS AND SUB-CONTRACTORS PROVIDING SERVICES TO THE 

EXCHANGE) NOR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES 

OR AGENTS SHALL BE LIABLE TO ANY OTHER PERSON, INCLUDING ANY 

PARTICIPANT OR PERSON ASSOCIATED WITH A PARTICIPANT (INCLUDING ANY 

AUTHORIZED TRADERDIRECT ACCESS CUSTOMER OR RESPONSIBLE TRADING 

AGENT), FOR ANY LOSSES, DAMAGES, COSTS OR EXPENSES (INCLUDING LOSS OF 

PROFITS, LOSS OF USE, DIRECT, INDIRECT, INCIDENTAL OR CONSEQUENTIAL 

DAMAGES), ARISING FROM (A) ANY FAILURE OR MALFUNCTION, INCLUDING ANY 

INABILITY TO ENTER OR CANCEL ORDERS, OF THE CX DIRECT SYSTEM OR ANY 

EXCHANGE SERVICES OR FACILITIES USED TO SUPPORT THE CX DIRECT SYSTEM, 

OR (B) ANY FAULT IN DELIVERY, DELAY, OMISSION, SUSPENSION, INACCURACY 

OR TERMINATION, OR ANY OTHER CAUSE, IN CONNECTION WITH THE 

FURNISHING, PERFORMANCE, MAINTENANCE, USE OF OR INABILITY TO USE ALL 

OR ANY PART OF THE CX DIRECTEXCHANGE TRADING SYSTEM OR ANY 

EXCHANGE SERVICES OR FACILITIES USED TO SUPPORT THE CX 

DIRECTEXCHANGE TRADING SYSTEM. THE FOREGOING SHALL APPLY 

REGARDLESS OF WHETHER A CLAIM ARISES IN CONTRACT, TORT, NEGLIGENCE, 

STRICT LIABILITY OR OTHERWISE. FURTHERMORE, THERE SHALL BE NO 

LIABILITY BASED UPON, OR IN CONNECTION WITH, ANY QUOTE OR OTHER 

INFORMATION IF NO CORRELATIVE PURCHASE OR SALE OF A CONTRACT IS MADE, 

AND IF A CORRELATIVE PURCHASE OR SALE OF A CONTRACT IS MADE, ANY 

LIABILITY SHALL BE LIMITED IN AMOUNT TO THE AGGREGATE PRICE OF THE 

CONTRACTS PURCHASED OR SOLD.
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THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS 

PROVIDED BY THE EXCHANGE (INCLUDING ITS AFFILIATES AND ANY 

CONTRACTORS AND SUBCONTRACTORS PROVIDING SERVICES TO THE 

EXCHANGE), RELATING TO THE CX DIRECTEXCHANGE TRADING SYSTEM OR ANY 

EXCHANGE SERVICES OR FACILITIES USED TO SUPPORT THE CX 

DIRECTEXCHANGE TRADING SYSTEM, INCLUDING WARRANTIES OF 

MERCHANTABILITY AND WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE 

OR USE. THE SERVICES OF THE EXCHANGE ARE BEING PROVIDED ON AN “AS IS” 

BASIS AT THE SOLE RISK OF THE PARTICIPANT AND ANY PERSON ASSOCIATED 

WITH THE PARTICIPANT (INCLUDING ANY AUTHORIZED TRADERDIRECT ACCESS 

CUSTOMER OR RESPONSIBLE TRADING AGENT). NEITHER THE EXCHANGE 

(INCLUDING ITS AFFILIATES AND ANY CONTRACTORS AND SUBCONTRACTORS 

PROVIDING SERVICES TO THE EXCHANGE) NOR ANY OF THEIR RESPECTIVE 

DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS MAKE ANY WARRANTY WITH 

RESPECT TO, AND NO SUCH PARTY SHALL HAVE ANY LIABILITY TO ANY 

PARTICIPANT OR ANY PERSON ASSOCIATED WITH A PARTICIPANT (INCLUDING 

ANY AUTHORIZED TRADERDIRECT ACCESS CUSTOMER OR RESPONSIBLE 

TRADING AGENT) FOR, THE ACCURACY, TIMELINESS, COMPLETENESS, 

RELIABILITY, PERFORMANCE OR CONTINUED AVAILABILITY OF THE CX 

DIRECTEXCHANGE TRADING SYSTEM OR THE EXCHANGE, DELAYS, OMISSIONS 

OR INTERRUPTIONS IN EXCHANGE SERVICES OR THE CREDITWORTHINESS OF 

ANY OTHER PARTICIPANT OR ANY PERSON ASSOCIATED WITH A PARTICIPANT 

(INCLUDING ANY AUTHORIZED TRADERDIRECT ACCESS CUSTOMER OR 

RESPONSIBLE TRADING AGENT). THE EXCHANGE SHALL HAVE NO DUTY OR 

OBLIGATION TO VERIFY ANY INFORMATION DISPLAYED ON THE CX 

DIRECTEXCHANGE TRADING SYSTEM OR OTHERWISE. EACH PARTICIPANT AND 

EACH PERSON ASSOCIATED WITH A PARTICIPANT (INCLUDING ANY AUTHORIZED 

TRADERDIRECT ACCESS CUSTOMER OR RESPONSIBLE TRADING AGENT) 

ACKNOWLEDGES AND AGREES THAT THE EXCHANGE (INCLUDING ITS AFFILIATES 

AND ANY CONTRACTORS AND SUBCONTRACTORS PROVIDING SERVICES TO THE 

EXCHANGE) DOES NOT AND SHALL NOT SERVE AS THE PRIMARY BASIS FOR ANY 

DECISIONS MADE BY SUCH PARTICIPANT OR PERSON ASSOCIATED WITH A 

PARTICIPANT (INCLUDING ANY AUTHORIZED TRADERRESPONSIBLE TRADING 

AGENT), AS THE CASE MAY BE, AND IS NOT AN ADVISOR OR FIDUCIARY OF SUCH 

PARTICIPANT OR PERSON ASSOCIATED WITH A PARTICIPANT (INCLUDING ANY 

AUTHORIZED TRADERRESPONSIBLE TRADING AGENT), AS THE CASE MAY BE.

EXCEPT AS OTHERWISE PROVIDED IN THESE RULES, ANY LIABILITY OF THE 

EXCHANGE (OTHER THAN LIABILITY THAT IS EXCLUDED PURSUANT TO THE 

PRECEDING TWO PARAGRAPHS OF THIS RULE IV-20XI-16) WILL BE LIMITED TO 

DIRECT, OUT-OF-POCKET LOSSES DIRECTLY CAUSED BY THE ACTS OR OMISSIONS 

OF THE EXCHANGE OR ITS DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS; 

PROVIDED THAT THE TOTAL COMBINED AGGREGATE LIABILITY OF THE 

EXCHANGE AND ITS DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS TO ANY ONE 

PARTICIPANT WITH RESPECT TO CX AND CONTRACTS SHALL NOT, (TAKEN 
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TOGETHER WITH ANY LIABILITY OF THE CX CLEARINGHOUSE WITH RESPECT TO 

CX CONTRACTS TO SUCH PARTICIPANT RESULTING FROM THE ACTS OR 

OMISSIONS OF THE CX CLEARINGHOUSE OR ITS DIRECTORS, OFFICERS, 

EMPLOYEES OR AGENTS,) EXCEED $25,000 FOR ALL LOSSES FROM ALL CAUSES 

SUFFERED ON A SINGLE CALENDAR DAY; $50,000 FOR ALL LOSSES SUFFERED 

FROM ALL CAUSES IN A SINGLE CALENDAR MONTH; AND $500,000 FOR ALL 

LOSSES SUFFERED FROM ALL CAUSES IN A SINGLE CALENDAR YEAR.

ANY DISPUTE ARISING OUT OF THE USE OF THE CX DIRECTEXCHANGE 

TRADING SYSTEM OR EXCHANGE SERVICES OR FACILITIES USED TO SUPPORT THE 

CX DIRECTEXCHANGE TRADING SYSTEM IN WHICH THE EXCHANGE (INCLUDING 

ITS AFFILIATES AND ANY CONTRACTORS AND SUBCONTRACTORS PROVIDING 

SERVICES TO THE EXCHANGE) OR ANY OF THEIR RESPECTIVE DIRECTORS, 

OFFICERS, EMPLOYEES OR AGENTS IS A PARTY SHALL BE CONSTRUED AND 

ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. ANY 

ACTIONS, SUITS OR PROCEEDINGS AGAINST ANY OF THE FOREGOING MUST BE 

BROUGHT WITHIN TWO YEARS FROM THE TIME THEY FIRST ARISE, AND ANY 

SUCH ACTION, SUIT OR PROCEEDING MAY BE BROUGHT IN ANY FEDERAL OR 

STATE COURTS LOCATED IN THE BOROUGH OF MANHATTAN, THE CITY OF NEW 

YORK. THIS PROVISION SHALL IN NO WAY CREATE A CAUSE OF ACTION AND 

SHALL NOT AUTHORIZE ANY ACTION THAT WOULD OTHERWISE BE PROHIBITED 

BY RULES OF THE EXCHANGE.

ANY PARTICIPANT OR PERSON ASSOCIATED WITH A PARTICIPANT 

(INCLUDING ANY AUTHORIZED TRADERDIRECT ACCESS CUSTOMER OR 

RESPONSIBLE TRADING AGENT) WHO FAILS TO PREVAIL IN A LAWSUIT OR OTHER 

LEGAL PROCEEDING INSTITUTED BY SUCH PERSON AGAINST THE EXCHANGE 

(INCLUDING ITS AFFILIATES) OR ANY OF ITS DIRECTORS, COMMITTEE MEMBERS, 

OFFICERS, EMPLOYEES, AGENTS OR CONTRACTORS, AND RELATED TO THE 

BUSINESS OF THE EXCHANGE, WILL PAY TO THE EXCHANGE ALL REASONABLE 

EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE EXCHANGE IN THE 

DEFENSE OF SUCH PROCEEDING TO THE EXTENT THAT SUCH EXPENSES EXCEED 

FIFTY THOUSAND DOLLARS ($50,000.00). THIS PROVISION WILL NOT APPLY TO 

DISCIPLINARY ACTIONS BY THE EXCHANGE, ADMINISTRATIVE APPEALS OF 

EXCHANGE ACTIONS OR IN ANY SPECIFIC INSTANCE WHERE THE BOARD OF 

DIRECTORS HAS GRANTED A WAIVER OF THIS PROVISION.

NOTWITHSTANDING ANY OF THE FOREGOING PROVISIONS, THIS RULE IV20XI-16 SHALL IN NO WAY LIMIT THE LIABILITY OF ANY PERSON ARISING FROM 

ANY VIOLATION OF SUCH PERSON OF THE CEA OR CFTC REGULATIONS 

THEREUNDER.
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IV-21. Opening Auctions

The trading of a particular Contract on the Exchange may be 

preceded by an Opening Auction. Any such Opening Auction will be 

conducted in accordance with these Rules and the applicable Contract 

Rules and will be used to determine the opening price of such Contract on 

the First Trading Day. The Opening Auction will be a two-sided, single 

price auction conducted by the Exchange on the First Trading Day at the 

times specified in the applicable Contract Rules. At the close of the 

Opening Auction, the Exchange will apply its proprietary pricing algorithm, 

as described in Rule IV-22(d) below, to the bids and offers submitted during 

the Opening Auction to determine the Equilibrium Price at which trading in 

the relevant Contract will commence on the First Trading Day. 

The Opening Auction will be open to all Participants; 

Participants may submit either offers or bids for Contracts at the times 

specified in the applicable Contract Rules. All entries must include the 

intention to bid or offer, quantity, and price limit.

(i) The minimum quantity Order in the Opening Auction is one 

Contract. 

(ii) Orders will remain in the Exchange’s Master Order Book and 

will be available for execution after the close of the Opening Auction, 

subject to their original price/time priority. 

(iii) Bids and offers received by the Exchange may be cancelled by 

Participants prior to the execution of the Opening Auction, which shall be 

on the First Trading Day at the time specified in the applicable Contract 

Rules.

Bids and offers submitted in the Opening Auction will become 

binding on Participants immediately upon submission. At the time Orders 

are submitted in the Opening Auction, the Clearinghouse will deduct 

Original Margin, as if the Participant’s Orders were filled in their entirety, 

from each applicable Participant Clearing Account (as defined in the Rules 

of the Clearinghouse). Original Margin rates for the Opening Auction will 

be equal to an amount specified in the applicable Contract Rules. Failure 

to have sufficient funds on deposit with and available to the Clearinghouse 

will cause the Exchange to reduce the Order quantity until the required 

Original Margin is less than or equal to the Participant’s Available Funds.

The pricing of contracts in the Opening Auction shall be 

determined as follows:
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(i) If zero Contracts are matched and no bids and no offers are 

received during an Opening Auction, there will be no Equilibrium Price. 

Under such circumstances, the Exchange will, in its reasonable judgment, 

establish the opening trading price, margin rates, and price limits with 

respect to such Contract, taking into account such factors and 

considerations as it deems appropriate.

(ii) If zero Contracts are matched and there are Orders on only one 

side of the market (bid or offer), then the Equilibrium Price will be equal to 

the best price on that side (highest bid or lowest offer).

(iii) If zero Contracts are matched and there are Orders on both 

sides of the market (bid and offer) then the Equilibrium Price will be equal 

to the midpoint of the best unmatched bid and offer prices. 

(iv) If Contracts are matched and the last matching lies between 

any remaining best unmatched bids and offers, then the Equilibrium Price 

will be equal to the last matching price at which a Contract was matched.

(v) If Contracts are matched and the last matching price lies below 

the remaining best unmatched bid or above the remaining best 

unmatched offer, then the Equilibrium Price is set equal to the 

corresponding best unmatched bid or offer.

The following shall apply to post-Opening Auction Contract 

allocations, cancelled Orders and announcements:

(i) After the completion of the Opening Auction, the Exchange will 

allocate the matched Contracts among Participants at the Equilibrium 

Price, irrespective of the bid price or offer price submitted with the Order. 

Quantities will be allocated to Participants at the Equilibrium Price in 

accordance with the time priority of their Orders. 

(ii) All unmatched bids and offers entered in connection with an 

Opening Auction will be carried over and applied to regular trading in the 

applicable Contract following the execution of the Opening Auction. 

(iii) After the allocations of Contracts are complete, each Participant 

who participated in the Opening Auction will be notified of the Equilibrium 

Price, the volume and open interest of Contracts cleared and the status of 

their Orders (e.g., “Filled”, “Cancelled”, “Active”). 
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IV-22. Daily and Weekly Reports

The Exchange will post on its website the current volume, open 

interest, last Settlement Price and Price Limits for all active Contracts on 

each Trading Day.

The Exchange will publish additional reports from time to time 

in accordance with, and as specified in, the applicable Contract Rules.

CHAPTER XIICHAPTER V 
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OBLIGATIONS OF PARTICIPANTS

XII-1 V-1. Books and Records; Cooperation in Proceedings

(a) Each Participant that is registered with any self-regulatory association shall 

prepare and keep current all books, ledgers and other similar records required to be kept by it 

pursuant to the CEA, CFTC Regulations and the Rules of the Exchange, and shall prepare and 

keep current such other books and records and adopt such forms as the Exchange may from time 

to time prescribe. Such books and records shall be made available to the Exchange and its 

authorized representatives, including but not limited to the NFA as authorized under the 

Regulatory Services Agreement, the CFTC, the Department of Justice and their respective 

authorized representatives upon request.

(b) Each Participant that is registered with any self-regulatory association shall 

keep all books and records required to be kept by it pursuant to these Rules for a period of five (5) 

years from the date on which they are first prepared, unless otherwise provided in these Rules or 

required by law. Such books and records shall be readily accessible during the first two (2) years 

of such five-year period. During such five-year period, all such books and records shall be made 

available for inspection by, and copies thereof shall be delivered to, the Exchange and its 

authorized representatives, including but not limited to the NFA as authorized under the 

Regulatory Services Agreement, upon request.

(c) Each Participant that is not registered with the CFTC or any self-regulatory 

organization shall prepare and keep current all books, ledgers and other similar records in a form 

and substance as the Exchange may from time to time prescribe. Such books and records shall be 

made available to the Exchange, the CFTC, the Department of Justice and their respective 

authorized representatives upon request.

XII-2 V-2. Minimum Financial Reporting Requirements and Reports

Each Participant that is registered with any self-regulatory association shall comply with 

the provisions of Applicable Law relating to minimum financial and related reporting and 

recordkeeping requirements. A copy of any notice or written report that a Participant is required 

to file with the CFTC pursuant to CFTC Regulation 1.12 shall be concurrently provided to the 

Exchange. A Participant that violates any of the aforementioned CFTC Regulations shall be 

deemed to have violated this Rule VXII-2.

XII-3 V-3. Authority of the President to Impose Restrictions

Whenever a Participant or Direct Access Customer is subject to the early warning 

requirements set forth in CFTC Regulation 1.12, the President or his or her designee may impose 

such conditions or restrictions on the business and operations of such Participant or Direct Access 

Customer as the President or his or her designee may deem necessary or appropriate for the 

protection of other Participants or the Exchange.
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XII-4 V-4. Minimum Financial Requirements

(a) Each CX Participant shall be required to satisfy such minimum financial 

requirements as may be established from time to time by the Exchange or the CX Clearinghouse; 

each FMX Participant shall be required to satisfy such minimum financial requirements as may be 

established from time to time by the Exchange or LCH Limited.

(b) Each Participant must notify the President or his or her designee immediately 

upon becoming aware that it fails to satisfy the minimum financial requirements applicable to it.

(c) Unless and until a Participant is able to demonstrate to the Board of Directors 

that it is in compliance with the minimum financial requirements applicable to it, such Participant 

may not engage in any transactions subject to the Rules of the Exchange, except for the purpose 

of closing open positions.

XII-5 V-5. Trade Confirmations

(a) The Exchange shall furnish, or cause to be furnished, to each Participant that 

enters into a trade, no later than 12:00 Noon on the Trading Day immediately following the day 

on which such trade is entered into, an e-mail or downloadable confirmation of such trade in such 

form as the Exchange may from time to time prescribe, indicating the Contract bought or sold, the 

price, quantity, time of execution and such other information as the Exchange may require. In the 

case of an Option on Futures trade, such confirmation shall also indicate: (i) the amount of the 

premium and all other commissions, costs and fees, separately listed; (ii) the Option on Futures 

series; and (iii) the expiration date of the Option on Futures.

(b) Promptly upon the expiration or exercise of any Option on Futures, the 

Exchange must furnish to each Participant holding such Option on Futures an e-mail confirmation 

statement, which shall include the date of such occurrence, a description of such Option on Futures, 

and in the case of exercise, the details of the Future position resulting therefrom.

(c) Notwithstanding paragraphs (a) and (b) above, a trade that is executed for a 

commodity pool needs to be confirmed only to the operator of such pool.

XII-6 V-6. Account Statements

The Exchange shall furnish or cause to be furnished to each CX Participant as soon as 

practicable after the end of each month, a monthly statement of account via e-mail. Each such 

statement shall indicate, at a minimum, the CX Participant’s initial balance, closing balance, 

commissions and fees incurred, income received and trades made.

XII-7 V-7. Risk Disclosure Statement

(a) A risk disclosure statement in the form approved by the Exchange for purposes of 

CFTC Regulation 1.55 and any other disclosure statement from time to time required by the 
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Exchange is included in the application form to become a CX Participant and shall be completed 

by the CX Participants where required under CFTC Regulations.

(b) All Customers and Direct Access Customers of FMX Participants shall have been 

provided a risk disclosure statement in the form approved by the Exchange for purposes of CFTC 

Regulation 1.55 as well as any other disclosure statement required by the Exchange before they 

may be permitted to enter into transactions on the Exchange. 

XII-8 V-8. Fraudulent or Misleading Communications

No Participant shall make, or attempt to make, any fraudulent or misleading 

communications relating to the purchase or sale of any Contract.

XII-9 V-9. System Security

(a) Each Participant that is an Entity shall at all times have at least one employee 

or agent (each, a “Responsible Agent”) designated as its administrator with respect to the 

use of the CX Direct System by the Authorized Traders of such Participantan 

Administrator. Each Participant that is a natural person shall serve as its own Responsible 

AgentAdministrator. The Exchange may prescribe such qualification standards for Responsible 

AgentsAdministrators as it may from time to time determine necessary or advisable. Among other 

things, each Responsible AgentAdministrator shall (i) have full control over access to the CX 

DirectExchange Trading System by the Participant (including its Authorized 

TradersResponsible Trading Agents) represented by such Responsible AgentAdministrator and 

(ii) be able to access, and, if required, modify and withdraw, any and all Orders placed, or 

purported to be placed, by the Authorized TradersResponsible Trading Agents of such 

Participant. The Responsible Agent or Responsible AgentsAdministrator or Administrators

of any Participant shall also be solely responsible for any and all communications between the 

Exchange and such Participant, and any and all notices or other communications sent to such 

Responsible Agent or Responsible AgentsAdministrator or Administrators by the Exchange 

shall be binding on such Participant. Each Participant shall notify the Exchange promptly of any 

change regarding any of its Responsible AgentsAdministrators.

(b) Each Participant shall (i) be solely responsible for controlling and monitoring 

the use of all user identification codes and passwords to access the CX DirectExchange Trading

System (collectively, “Passwords”) issued to its Authorized Traders and Responsible Trading 

Agents and Administrators by the Exchange, (ii) provide such Passwords only to its Authorized 

Traders and Responsible Trading Agents and Administrators, and (iii) shall notify the Exchange 

promptly upon becoming aware of any unauthorized disclosure or use of the Passwords or access 

to the Exchange or of any other reason for deactivating Passwords. Each Participant, on behalf of 

itself and its Authorized TradersResponsible Trading Agents, shall be bound by any actions taken 

through the use of its Passwords (other than any such actions resulting from the fault or negligence 

of the Exchange), including the execution of transactions, whether or not such actions were 

authorized by such Participant or any of its Supervised Persons or executed by anyone other 

than an Authorized TraderResponsible Trading Agent of such Participant.
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(c) Notwithstanding anything to the contrary in Rule VXII-9(b), each Authorized 

TraderDirect Access Customer and Responsible Trading Agent shall have his or her own unique 

Passwords that may be used only by such Authorized TraderResponsible Trading Agent and 

solely for the purpose of submitting Orders in respect of the Trading Account for which the 

Authorized TraderDirect Access Customer or Responsible Trading Agent has Trading Privileges.

XII-10 V-10. Market Maker Programs Communications between the Exchange 

and Participants

(a) Each Participant and Direct Access Customer shall

(i) identify in writing to the Exchange one or 

more Designated Contacts as the Exchange may determine, 

and 

(ii) ensure that at least one of its Designated 

Contacts is available by telephone at all times when any person 

to whom it has given permission is accessing the Exchange 

Trading System or has an open Order.

(b) Each Participant and Direct Access Customer must provide the Exchange with the 

current electronic mail address for each of its Responsible Trading Agents, its Administrator and 

immediately (and in any event within 24 hours) update each such address whenever it changes. 

All communications between the Exchange and the Participant (and its Direct Access Customers, 

Responsible Trading Agents and/or Administrator) will be transmitted by electronic mail and/or 

posted on the Exchange website. Each Participant will be responsible for promptly reviewing and, 

if necessary, responding to all electronic communications from the Exchange. The NFA will have 

access to such communications to the extent required to perform certain regulatory services to the 

Exchange pursuant to the Regulatory Services Agreement.

XII-11 Fees and Payments

(a) The Board of Directors shall have the sole authority to set the times and amounts 

of any fees to be paid by Participants or any incentive payments to be paid to a Participant in any 

incentive program. All such fees or payments shall be paid when due. 

(b) Participants receiving equal access to, or services from, the Exchange shall be 

provided comparable fee structures.

(c) If a Participant fails to pay when due any Exchange fees or other amounts due, and 

such payment obligation remains unsatisfied for thirty (30) Business Days after its due date, the 

Exchange as it deems necessary or appropriate may suspend, revoke, limit, condition, restrict or 

qualify the Trading Privileges of such Participant and its Responsible Trading Agents and Direct 

Access Customers as applicable. For the avoidance of doubt, the Exchange may also suspend, 

revoke, limit, condition, restrict or qualify the Trading Privileges of any Participant and its 

Responsible Trading Agents or Direct Access Customers as applicable that has had its FMX or 
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CX Privileges suspended, revoked, limited, conditioned, restricted or qualified under this Rule 

XII-11(c).

XII-12 Incentive Programs

The Exchange may from time to time adopt one or more programs under which one or 

more Participants or Authorized Traders, Responsible Trading Agents, Direct Access 

Customers or Customers, including those Persons who are designated by the Exchange as Market 

Takers or Qualified Market Makers may be designated as Market Makersprogram participants

with respect to one or more Contracts, and may be granted certain benefits, which may include fee 

reductions, compensatory payments or other benefits, in return for participating in the program 

and/or assuming obligations in order to provide liquidity and orderliness in the market or markets 

for such Contract or Contracts. Any such program may provide for any or all of the following:

(a) qualifications, including any minimum net capital requirements, that any such 

Market Makerprogram participant must satisfy;,

(b) the procedure by which Participants or Authorized Traders, Responsible 

Trading Agents, Direct Access Customers, or Customers may seek and receive designation as 

Market Makers;a participant in such incentive programs,

(c) the obligations of such Market Makersincentive program participant, 

including any applicable minimum bid and offer commitments; and,

(d) the benefits accruing to such Market Makersincentive program participant, 

including priority in the execution of transactions effected by Participants or Authorized Traders, 

Responsible Trading Agents or Direct Access Customers in their capacity as Market Makers, 

reduced transaction fees or the receipt of compensatory payments from the Exchange.an 

incentive program participant, Market Taker or Qualified Market Maker,

(e) the criteria and procedures under which Participants, Direct Access Customers or 

Customers shall qualify as being a Market Taker or Qualified Market Maker, including applicable 

trading patterns that such Person must satisfy, and 

(f) the benefits accruing to such Market Takers or Qualified Market Makers, including 

priority in the execution of transactions effected by Participants, Direct Access Customers, or 

Customers in their capacities as Market Takers or Qualified Market Makers, reduced transaction 

fees or the receipt of compensatory payments from the Exchange.

V-11. DPMs

Without limiting the generality of Rule V-10, the Exchange may 

from time to time approve such number of Participants as DPMs, and 

allocate to such DPMs such number and types of Contracts, as it may 
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deem necessary or appropriate. Any and all such approvals or allocations 

may be reviewed, conditioned or terminated at any time in accordance with 

this Rule V-11.

A Participant desiring to act as a DPM shall file an application 

with the Exchange in such form as the Exchange may from time to time 

prescribe. DPMs shall be selected by the Exchange from among the 

applications from time to time on file with the Exchange, based on the 

Exchange’s judgment as to which applicant or applicants is or are most 

qualified to perform the functions of a DPM. Factors to be considered in 

making such selection may include, but are not limited to, any one or more 

of the following:

(i) the adequacy of each applicant’s capital;

(ii) each applicant’s operational capacity;

(iii) the trading experience of, and observance of generally 

accepted standards of conduct by, each applicant and its affiliates, in 

particular the individual or individuals who would represent such applicant 

in its capacity as a DPM (each, a “DPM Designee”);

(iv) the number and experience of support personnel of each 

applicant who will be performing functions related to its DPM business;

(v) if applicable, the regulatory history of, and history of adherence 

to the Rules of the Exchange, rules of other self-regulatory organizations 

and Applicable Law by, each applicant and affiliates, in particular its DPM 

Designees;

(vi) the willingness and ability of each applicant to promote the 

Exchange as the marketplace of choice;

(vii) the market performance commitments of each applicant;

(viii) if applicable, any performance evaluations conducted 

pursuant to the Rules of the Exchange or rules of other self-regulatory 

organizations; and

(ix) in the event that one or more affiliates of any applicant are or 

were at any time affiliates of any other DPM, adherence by such other 

DPM to the requirements set forth in the Rules of the Exchange regarding 

responsibilities and obligations of DPMs during the time period while such 

affiliate or affiliates held such position or positions with such other DPM.
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In approving any applicant as a DPM, the Exchange may place 

one or more conditions or limitations on the approval, including but not 

limited to:

(i) conditions concerning the capital, operations or personnel of 

such applicant, satisfaction of market performance commitments or 

benchmarks by such applicant, and the number or types of Contracts 

which may be allocated to such applicant; and

(ii) limitations regarding the time period for which such applicant is 

approved as a DPM (which time period may be subsequently extended by 

the Exchange at its sole discretion).

Each Participant approved as a DPM shall retain such status 

until (x) it resigns as a DPM and the Exchange relieves such Participant of 

its obligations to act as a DPM, (y) the Exchange suspends or terminates 

such DPM’s status or (z) if applicable, the time period referred to in 

paragraph (c)(ii) above expires. In any of the foregoing circumstances, the 

Exchange shall have discretion to do one or both of the following:

(i) approve an interim DPM, pending the final approval of a new 

DPM pursuant to the regular procedures for DPM approval; and

(ii) allocate on an interim basis to one or more other DPMs the 

Contracts that were allocated to the DPM whose status is affected by such 

circumstances, pending a final allocation of such Contracts pursuant to 

paragraph (e) below.

Neither an interim approval nor an allocation made pursuant to this 

paragraph (d) shall constitute a prejudgment with respect to the final approval or 

allocation.

In allocating Contracts to DPMs approved in accordance with 

paragraphs (b) and (c) above, the Exchange may: (i) consider any relevant 

information, including but not limited to performance, volume, capacity, 

market performance commitments, operational factors, efficiency, 

competitiveness and recommendations of committees of the Board of 

Directors or of the Exchange; (ii) place one or more conditions or limitations 

of the type specified in paragraph (c) above on the approval; or (iii) allocate 

any Contract to more than one DPM, such that the different DPMs serve at 

the same time but with respect to different contract months or in different 

time zones, or such that each of the DPMs serves as the DPM for such 

Contract on a rotating basis.

No DPM may sell, transfer or assign any of its rights or 

obligations as a DPM (including but not limited to its allocation of any 
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Contracts by virtue of its status as a DPM) without the prior written approval 

of such sale, transfer or assignment (including but not limited to the 

approval of the Person to which such rights, obligations or allocation are 

intended to be sold, transferred or assigned) by the Exchange. Any 

purported sale, transfer or assignment in violation of the foregoing 

sentence shall be void from the outset. For purposes of this paragraph (f), 

the following transactions shall be deemed to constitute a transfer of a 

DPM’s rights or obligations:

(i) any sale, transfer or assignment of a percentage from time to 

time determined by the Exchange of the equity or profits or losses of a 

DPM (or any series of smaller changes that in the aggregate amount to a 

change of at least such percentage); provided that any sale, transfer or 

assignment of an interest of less than such percentage may be found by 

the Exchange to constitute a transfer of a DPM’s rights or obligations if 

the particular facts and circumstances warrant such a determination;

(ii) any change in, or transfer of, Control of a DPM; and 

(iii) any merger, sale of assets or other business combination or 

reorganization involving a DPM.

The Exchange may from time to time evaluate a DPM’s 

performance with respect to, among other things, one or more of the 

following: quality of markets, market share (taking into account all contracts 

similar to the relevant Contract or Contracts), administrative factors and 

observance of ethical standards. In this connection, the Exchange may 

consider any relevant information, including but not limited to market share 

and trading data, a DPM’s regulatory history and such other factors and 

data as may be pertinent under the circumstances.

The Exchange may terminate, place conditions upon or 

otherwise limit a Participant’s approval to act as a DPM or a DPM’s 

allocation of Contracts, under any one or more of the following 

circumstances:

(i) if the Exchange finds in connection with an evaluation under 

paragraph (g) above that such Participant’s performance as a DPM has 

been unsatisfactory;

(ii) if such Participant becomes subject to a material financial, 

operational or personnel change;

(iii) if such Participant fails to (A) comply with any conditions 

previously placed upon its approval as a DPM or its allocation of Contracts 

or (B) perform its obligations under paragraph (j) below; or
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(iv) if for any reason such Participant is no longer eligible for 

approval as a DPM or to be allocated a particular number or type of 

Contracts.

Each applicant for approval as a DPM pursuant to paragraph (b) 

above shall be given an opportunity to present any matter which it wishes 

the Exchange to consider in conjunction with the application. Prior to 

taking any remedial action against a DPM pursuant to paragraph (h) above, 

such DPM shall be given notice thereof and an opportunity to present any 

matter which it wishes the Exchange to consider in determining whether to 

take such action. The Exchange may require that any presentation under 

this paragraph (i) be made partially or entirely in writing, and may require 

the submission of additional information from any Person wishing to make 

a presentation under this paragraph (i). Formal rules of evidence shall not 

apply to any proceeding involving such a presentation. Notwithstanding 

the foregoing, the Exchange shall have the authority to immediately 

terminate, condition or otherwise limit a Participant’s approval to act as a 

DPM in accordance with subparagraph (h)(ii) above, without prior notice or 

opportunity to make a presentation under this paragraph (i), if the financial, 

operational or personnel change in question warrants such action.

DPMs shall have such rights and obligations as the Exchange 

may specify in connection with their approval or prescribe from time to time 

in policies or procedures.

V-12. Investment of Certain Participant Account Funds

Participant funds on deposit with the Exchange and funds in the Trading 

Accounts of such Participants (i.e., the account containing the funds paid by Participants 

to purchase or sell Contracts and which are to be used to pay Participants at expiration 

of Contracts) will be segregated in accordance with the CFTC’s Regulations. The 

Exchange may invest such funds subject to the limitations and conditions set forth in 

CFTC Regulation 1.25. The Exchange will pay interest to Participants’ Trading Accounts 

at a rate to be determined by the Exchange on funds in Participants’ Trading Accounts in 

excess of an amount to be determined by the Exchange. The Exchange will retain all 

profit from investment of the Participant funds not paid to Participants in accordance with 

the preceding sentence.

XII-13 V-13. ElectronicExchange Trading System Requirements

Participants with access to the CX DirectExchange Trading System or any other electronic 

trading facility of the Exchange, including but not limited to any application programming 

interface(s), software development library(ies), or internet-based connection(s) used to transmit 

electronic trading information, shall:
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(a) prevent any such electronic trading system or other application connecting to 

the Exchange from causing a market disruption;,

(b) comply at all times with any system certification requirements as required by 

the Exchange from time to time;,

(c) monitor and detect any abnormalities in such systems and promptly notify the 

Exchange of such abnormalities;, and

(d) disconnect such system from the Exchange upon discovering any anomaly in 

the behavior of such system or if so directed by the Exchange. 

XII-14 Measures to Avoid Self-Matching 

Participants with access to the Exchange Trading System must take reasonable steps to 

prevent the matching of orders for the same account and for accounts with common ownership, 

within and across Clearing Members including installing self-match prevention software on their 

trading devices and implementing, as appropriate, any self-match prevention software provided by 

the Exchange for use in the Exchange Trading System.

CHAPTER XIIICHAPTER VI 
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BUSINESS CONDUCT

XIII-1 VI-1. Rule Violations

It shall be an offense for any Person to violate any Rule of the Exchange or Rule of the 

Clearinghouserespective clearinghouse regulating the conduct or business of a Participant, or 

any agreement made with the Exchange, or to engage in fraud, dishonorable or dishonest conduct, 

or in conduct which is inconsistent with just and equitable principles of trade.

XIII-2 VI-2. Fraudulent Acts

(a) No Participant, Authorized Trader or, if applicable, any other Supervised 

PersonsDirect Access Customer or Responsible Trading Agent shall engage, or attempt to 

engage, in any fraudulent act or engage, or attempt to engage, in any scheme to defraud, deceive 

or trick in connection with or related to any trade on or other activity related to the Exchange or 

the Clearinghouseapplicable clearinghouse.

(b) Notwithstanding anything to the contrary in these Rules, neither the 

prohibitions on trading described in Rule VIXIII-12 nor any other provisions of these Rules will 

supersede any applicable prohibitions on fraud and manipulation, whether such prohibitions are 

prescribed by law, regulation or the Rules of the Exchange or the Rules of the respective 

Clearinghouse. All such prohibitions on fraud and manipulation, including, but not limited to, the 

antifraud provisions of the CEA and the antifraud rules promulgated by the CFTC thereunder, will 

remain in full force and effect with respect to, and will be fully applicable to, the trading of all 

Contracts. The Exchange and the Clearinghouserespective clearinghouse each retain the right to 

take any appropriate disciplinary actions against Participants as permitted by the Rules of the 

Exchange or the Rules of the Clearinghouserespective clearinghouse, as applicable.

XIII-3 VI-3. Fictitious Transactions

No Participant, Authorized Trader or, if applicable, any other Supervised 

PersonDirect Access Customer, or Responsible Trading Agent shall create fictitious transactions 

or execute any such Order with knowledge of its nature.

XIII-4 VI-4. Market Demoralization

Orders entered into the CX DirectExchange Trading System for the purpose of upsetting 

the equilibrium of the market in any Contract or creating a condition in which prices do not or will 

not reflect fair market values are prohibited, and any Participant, Authorized Trader and, if 

applicable, any other Supervised Person who makesDirect Access Customer, or Responsible 

Trading Agent who enters 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 

Exchange.
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XIII-5 VI-5. Price Manipulation

Any manipulation of the market in any Contract is prohibited. It shall be a violation of this 

Rule for any person to manipulate or attempt to manipulate the price of any Contract traded on or 

subject to the rules of the Exchange.

XIII-6 VI-6. Prohibition of Misstatements

It shall be an offense to make any misstatement of a material fact to the Exchange 

(including the Board of Directors, any committee thereof or any panel of any such committee, any 

Exchange Official or any committee of the Exchange) or to the NFA (including any members of 

its staff) or to engage in any other conduct that violates CFTC Regulation 180.1.

XIII-7 VI-7. Adherence to Law

No Participant, Authorized TraderResponsible Trading Agent, Direct Access Customer,

or, if applicable, any other Supervised Personpersonnel of the Participant shall engage in 

conduct in violation of Applicable Law, the Rules of the Exchange or the Rules of the 

Clearinghouseapplicable clearinghouse (insofar as the Rules of the Clearinghouseapplicable 

clearinghouse relate to the reporting or clearance of any transaction in Contractson the CX 

Division or the FMX Division, respectively).

XIII-8 VI-8. Use of Trading Privileges

No Participant, Authorized Trader or, if applicable, any other Supervised 

PersonDirect Access Customer, or Responsible Trading Agent may use its Trading Privileges or 

access the Exchange in any way which could be expected to bring disrepute upon such Participant 

or the Exchange.

XIII-9 VI-9. Supervision

Each Participant shall be responsible for establishing, maintaining, and administering 

reasonablyreasonable supervisory procedures to ensure that its Supervised Persons complyit 

complies with Applicable Law, the Rules of the Exchange, and the Rules and theof CX

Clearinghouse or LCH Limited, as applicable, shall be responsible for supervising its Supervised 

Personspersonnel and may be held accountable for the actions of such Supervised Persons.

XIII-10 VI-10. Disclosing Orders

Except in accordance with any policies or procedures for pre-execution discussion from 

time to time adopted by the Exchange, no Participant shall disclose to any Person any Order placed 

by any other Person, except to an Exchange Official or a member of the staff of the CFTC, the 

NFA, or the Department of Justice, respectively.
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XIII-11 VI-11. Pre-Execution DiscussionsReserved.

Authorized Traders seeking to execute a pre-negotiated 

transaction must wait for a reasonable period of time, which shall be 

presumed to be not less than 15 seconds after the initial Order is submitted 

to the CX Direct System, before submitting the opposite side Order.

Except in the case of transactions effected pursuant to Rule VI11(a), no Authorized Traders shall enter through the CX Direct System into 

a pre-discussed or pre-arranged transaction. 

XIII-12 VI-12. Disruptive Practices

It shall be a violation of this Rule for any personPerson to enter an Order into the Trading 

System with the intention to cancel such bid or offer before it is executed or to engage in any 

trading, practice, or conduct on or subject to the rules of the Exchange that:

(a) violates bids or offers;

(b) demonstrates intentional or reckless disregard for orderly execution of 

transactions during the closing period; or 

(c) is, is of the character of, or is commonly known to the trade as, “spoofing” 

(bidding or offering with the intent to cancel the bid or offer before execution).or “layering.”

XIII-13 VI-13. Front Running

It shall be a violation of this Rule for any person to engage in the practice of trading ahead 

of another person, including a Customer, by taking a futures or option position based upon nonpublicnonpublic information obtained in violation of a duty to that person regarding an 

impending transaction by that otheranother person in the same or related future or optionContract 

or a related Futures Contract on another designated contract market. 

XIII-14 VI-14. Wash Trading; Accommodation Trading, Money Passes

It shall be a violation of this Rule for any person to engage in a transaction that is of the 

character of, or is commonly known to the trade as, a “wash trade.”,” Entering buy and sell orders 

for different accounts with common beneficial ownership with the intent to negate market risk or 

price competition shall also be deemed to violate the prohibition on wash trades. Execution as well 

as accommodation of such orders by direct or indirect means shall also be a violation of this Rule.

It shall also be a violation of this Rule for any person to engage in a transaction that is of 

the character of, or is commonly known to the trade as, an “accommodation trade.” Noncompetitive trading entered into by a Participant, usually to assist another Participant with illegal 

trades, shall also be deemed to violate the prohibition on accommodation trades. 
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It shall also be a violation of this Rule for any person to engage in a transaction that is of 

the character of, or is commonly known to the trade as, a “money pass.” Non-competitive trading 

between authorized traders where a profit is passed from one Participant to the other Participant 

shall also be deemed to violate the prohibition on accommodation trades.

XIII-15 Cross Trades 

It shall be a violation of this Rule for any person to enter through the Exchange Trading 

System a Cross Trade or any other trade against the person’s Customer’s order except in the case 

of transactions effected pursuant to Rule III-6. 

CHAPTER XIVCHAPTER VII 
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DISCIPLINE AND ENFORCEMENT

XIV-1 VII-1. General

(a) All Participants and Authorized Traders, Direct Access Customers, 

Customers and Responsible Trading Agents shall be subject to the Exchange’s jurisdiction. This 

includes any Person initiating or executing a transaction on or subject to the Rules of the Exchange 

directly or through an intermediary, and any Person for whose benefit such a transaction has been 

initiated or executed. All Participants and Authorized Traders, Direct Access Customers, 

Customers and Responsible Trading Agents are subject to this Chapter VIIXIV 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 of the Exchange or any provision of Applicable Law for which the Exchange possesses 

disciplinary jurisdiction. 

(b) The Exchange will 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 VIIXIV.

(c) The Exchange may delegate any or all of its powers or responsibilities under 

this Chapter VIIXIV to the NFA (acting in its compliance role, the “Compliance Department”) and 

the Disciplinary Panel, which may take any actions on behalf of the Exchange that the Exchange 

is permitted to take hereunder. In the event of any such delegation, references to the Exchange in 

this Chapter VIIXIV shall be construed to be references to the Compliance Department or the 

Disciplinary Panel, as the case may be.

(d) No member of the staff of the Exchange will interfere with or attempt to 

influence the process or resolution of any inquiry, investigation, disciplinary proceeding, appeal 

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

summary action. No member of the Board of Directors will interfere with or attempt to influence 

the process or resolution of any inquiry, investigation, disciplinary proceeding, appeal from a 

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

action with respect to which the member of the Board of Directors is not a member of the relevant 

Appeals Panel.

(e) Any Participant or Authorized Trader, Direct Access Customer or 

Responsible Trading Agent may be represented by counsel during any inquiry, investigation, 

disciplinary proceeding, appeal from a disciplinary proceeding, summary imposition of fines, 

summary suspension or other summary actions pursuant to this Chapter VIIXIV.

(f) Pursuant to this Chapter VIIXIV, the Exchange may hold:

(i) a Participant liable for, and impose sanctions 

against such Participant, for, such Participant’s own acts and 

omissions that constitute a violation;
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(ii) a Participant liable for, and impose sanctions 

against such Participant, for, the acts and omissions of each 

Authorized TraderDirect Access Customer or Responsible 

Trading Agent authorized by, and each other agent or 

representative of, such Participant that constitute a violation as 

if such violation were that of the Participant;

(iii) an Authorized Tradera Direct Access 

Customer liable for, and impose sanctions against him or her, 

for, such Authorized Trader’sDirect Access Customer’s own 

acts and omissions that constitute a violation; and or of any of 

the Direct Access Customer’s Responsible Trading Agents; 

and impose sanctions against him or her, for the acts and 

omissions of each agent or representative of such Responsible 

Trading Agents that constitute a violation as if such violation 

were that of the Direct Access Customer.

(iv) a Responsible Trading Agent liable for, and 

impose sanctions against him or her for, such Responsible 

Trading Agent’s own acts and omissions that constitute a 

violation; and

(v) (iv) an Authorized Tradera Responsible 

Trading Agent liable for, and impose sanctions against him or 

her, for, the acts and omissions of each agent or representative 

of such Authorized TraderResponsible Trading Agent that 

constitute a violation as if such violation were that of the 

Authorized TraderResponsible Trading Agent.

(g) Pursuant to this Chapter VIIXIV, the Exchange may in its sole discretion, and 

subject to the conditions specified in Rule III-3XIV-16(g), review an appeal by any applicant of 

the Exchange’s decision to deny or otherwise limit Trading Privileges of such applicant pursuant 

to the Rules of the Exchange; provided, however, that any such decision by the Exchange to deny 

or otherwise limit applicant’s Trading Privileges shall continue in effect during such review.

XIV-2 VII-2. Inquiries and Investigations

(a) The Compliance Department will, in conjunction with NFA, investigate any 

matter within the Exchange’s disciplinary jurisdiction that it or the Control Desk discovers or that 

is brought to such department’sthe Compliance Department’s attention, including but not limited 

to, possible violations of the Rules of the Exchange or manipulation of a Contract that is traded on 

the Exchange. All such investigations must be completed in a timely manner, as determined in the 

reasonable judgment of the Exchange. The Compliance Department will determine the nature and 

scope of its inquiries and investigations within its sole discretion and will function independently 

of any commercial interests of the Exchange.
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(b) The Compliance Department has the authority to:

(i) initiate and conduct inquiries and 

investigations;

(ii) prepare investigative reports and make 

recommendations concerning initiating disciplinary 

proceedings;

(iii) prosecute alleged violations within the 

Exchange’s disciplinary jurisdiction; and 

(iv) represent the Exchange on appeal from any 

disciplinary proceeding, summary imposition of fines, 

summary suspension or other summary action.

(c) Each Participant or Authorized Trader, Direct Access Customer or 

Responsible Trading Agent:

(i) 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 of the Exchange; (B) any inquiry or investigation; or 

(C) any preparation by and presentation during a disciplinary 

proceeding or appeal from a decision in a disciplinary 

proceeding, summary imposition of fines, summary 

suspension or other summary action by the Exchange;

(ii) is obligated to produce books, records, 

papers, documents or other tangible evidence, including any 

oral and written pre-trade communications, as described by 

CFTC Rule 1.35(a)(1)(iii), in its, his or her possession, custody 

or control within the time period required by the Compliance 

Department in connection with: (A) any Rule of the 

Exchange; (B) any inquiry or investigation; or (C) any 

preparation by and presentation during a disciplinary 

proceeding or appeal from a decision in any disciplinary 

proceeding, summary imposition of fines, summary 

suspension or other summary action by the Exchange; and 

(iii) may not impede or delay any inquiry, 

investigation, disciplinary proceeding, appeal from a 

disciplinary proceeding, summary imposition of fines, 

summary suspension or other summary action.
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XIV-3 VII-3. Reports of Investigations

(a) The Compliance Department will maintain a log of all investigations and their 

dispositiondispositions. The Compliance Department will prepare a written report of each 

investigation, regardless of whether the evidence gathered during any inquiry or investigation 

forms a reasonable basis to believe that a violation within the Exchange’s jurisdiction has occurred 

or is about to occur or whether the evidence gathered results in closing the matter without further 

action or through summary action.

(b) Any written report of investigation will include the reasons for initiating the 

investigation (including a summary of the complaint, if any), all relevant facts and evidence 

gathered, and the recommendation of the Compliance Department. For each potential respondent, 

the Compliance Department will recommend either (i) closing the investigation without further 

action, (ii) summary action, (iii) resolving the investigation through an informal disposition, 

including the issuance of a warning letter or (iv) initiating disciplinary proceedings. An informal 

disposition (including the issuance of a warning letter) will not constitute a finding of a violation 

or a sanction.

XIV-4 VII-4. Review of Investigative Reports

(a) The Chief Compliance DirectorOfficer will review promptly each completed 

investigation report to determine whether a reasonable basis exists to believe that a violation within 

the Exchange’s jurisdiction has occurred or is about to occur. Such determination will be made 

by the Chief Compliance DirectorOfficer within ten (10) Business Days of receipt of the 

applicable investigation report.

(b) If the Chief Compliance DirectorOfficer determines that additional 

investigation or evidence is needed to decide whether a reasonable basis exists to believe that a 

violation within the Exchange’s jurisdiction has occurred or is about to occur, the Chief 

Compliance DirectorOfficer will direct the Compliance Department to conduct further 

investigation.

(c) After receiving completion of an investigation, the Chief Compliance 

DirectorOfficer will determine for each potential respondent whether to authorize:

(i) the commencement of disciplinary 

proceedings because a reasonable basis exists to believe that a 

violation within the Exchange’s jurisdiction has occurred or is 

about to occur;

(ii) the informal disposition of the investigation 

(by issuing a warning letter or otherwise) if the Chief 

Compliance DirectorOfficer determines that a violation of the 

Rules of the Exchange or any applicable Contract Rules may 

have occurred but that formal disciplinary proceedings are 

unwarranted; or 
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(iii) the closing of the investigation without any 

action, and without the issuance of a warning letter, because 

disciplinary proceedings are not warranted and no reasonable 

basis exists to believe that a violation within the Exchange’s 

jurisdiction has occurred or is about to occur.

XIV-5 VII-5. Notice of Charges and Opportunity to Respond

(a) If the Chief Compliance DirectorOfficer authorizes disciplinary proceedings 

pursuant to Rule VIIXIV-4, the Compliance Department will prepare in accordance with Rule 

VIIXIV-5 and serve in accordance with Rule VIIXIV-7, a notice of charges within twenty (20)

Business Days thereafter.

(b) A notice of charges will:

(i) state the acts, practices or conduct that the 

respondent is alleged to have engaged in;,

(ii) state the Rule of the Exchange or provision of 

Applicable Law alleged to have been violated or about to be 

violated;,

(iii) state the proposed sanctions;,

(iv) advise the respondent of its right to submit a 

written statement explaining why a disciplinary proceeding 

should not be instituted or one or more of the potential charges 

should not be brought, which statement must be submitted 

within twenty (20) Business Days after service of the notice of 

charges;,

(v) advise the respondent of its right to a hearing 

and its right to have counsel present;,

(vi) state the period of time within which the 

respondent can request a hearing on the notice of charges, in 

lieu of submitting a written statement pursuant to Rule 

VIIXIV-5(b)(iv), which will not be less than twenty (20)

Business Days after service of the notice of charges;,

(vii) advise the respondent that any failure to 

request a hearing within the period stated, except for good 

cause, will be deemed to constitute a waiver of the right to a 

hearing;, and 
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(viii) advise the respondent that any allegation in 

the notice of charges that is not expressly denied will be 

deemed to be admitted.

(c) If the respondent submits a written statement pursuant to Rule VIIXIV-5(b)(iv), 

the Chief Compliance DirectorOfficer shall, within ten (10) Business Days after receipt of the 

written statement, advise the respondent:

(i) of the Chief Compliance Director’sOfficer’s

decision to drop any or all of the potential charges;,

(ii) that the disciplinary proceedings will proceed 

with respect to all remaining charges in accordance with the 

notice of charges delivered to the respondent;, and/or, as 

appropriate 

(iii) that the respondent shall have twenty (20)

Business Days to submit an answer to the notice of charges, as 

described in Rule VIIXIV-6.

XIV-6 VII-6. Answer to Notice of Charges

(a) If the respondent determines to answer a notice of charges, the respondent must 

file answers within twenty (20) Business Days after being served with such notice, or within such 

other time period determined appropriate by the Chief Compliance DirectorOfficer.

(b) To answer a notice of charges, the respondent must in writing:

(i) specify the allegations that the respondent 

denies or admits;,

(ii) specify the allegations that the respondent 

does not have sufficient information to either deny or admit;,

(iii) specify any specific facts that contradict the 

notice of charges;,

(iv) specify any affirmative defenses to the notice 

of charges;, and

(v) sign and serve the answer on the Director of 

Hearings.

(c) Any failure by the respondent to timely serve an answer to a notice of charges 

will be deemed to be an admission to the allegations in such notice. Any failure by the respondent 

to answer one or more allegations in a notice of charges will be deemed to be an admission of that 
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allegation or those allegations. Any allegation in a notice of charges that the respondent fails to 

expressly deny will be deemed to be admitted. A general denial by the respondent, without more, 

will not satisfy the requirements of paragraph (b) above.

XIV-7 VII-7. Service of Notice of Charges

(a) Any notice of charges or other documents contemplated to be served pursuant 

to this Chapter VIIXIV may be served (and service shall be deemed complete) upon the respondent 

either personally or by (i) leaving the same at his or her place of business or by deposit in the 

United States mail, postage prepaid, via registered or certified mail addressed to the respondent at 

the address as it appears on the books and records of the Exchange, or (ii) sending the same via 

electronic mail to the e-mail address of the respondent as it appears on the books and records of 

the Exchange.

XIV-8 VII-8. Settlements

(a) A respondent or potential respondent may at any time propose in writing an 

offer of settlement to anticipated or instituted disciplinary proceedings. Any offer of settlement 

should contain proposed findings and sanctions and be signed by the respondent or potential 

respondent and submitted to the Compliance Department. A respondent or potential respondent 

may offer to settle disciplinary proceedings without admitting or denying the findings contained 

in the order of the disciplinary proceedings but must accept the jurisdiction of the Exchange over 

it and over the subject matter of the proceedings and consent to the entry of the findings and 

sanctions imposed.

(b) If a respondent or potential respondent submits an offer of settlement in 

accordance with paragraph (a) above, the Compliance Department will forward the offer to the 

Chief Compliance DirectorOfficer with a recommendation on whether to accept or reject the offer. 

If the Chief Compliance DirectorOfficer conditionally accepts an offer of settlement, the 

settlement will become final upon the expiration of twenty (20) Business Days after an order of 

the disciplinary proceedings consistent with the terms of the offer of settlement is served on the 

respondent.

(c) If an offer of settlement is accepted and the related order of disciplinary 

proceedings becomes final, the respondent’s submission of the offer will be deemed to constitute 

a waiver of the right to notice, opportunity for a hearing and review and appeal under these Rules.

(d) If the offer of settlement of a respondent or potential respondent is not accepted, 

fails to become final or is withdrawn by the respondent or potential respondent, the matter will 

proceed as if the offer had not been made and the offer and all documents relating to it will not 

become part of the record. Neither a respondent or potential respondent nor the Compliance 

Department may use an unaccepted offer of settlement as an admission or in any other manner at 

a hearing of, or appeal from, disciplinary proceedings.
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XIV-9 VII-9. Disciplinary Panel

(a) A disciplinary panel consisting of five (5) individuals selected by the Board of 

Directors from the Exchange’s Hearing Panel Committee (with one individual acting as chairman) 

(the “Disciplinary Panel”), will conduct hearings in connection with any disciplinary proceedings, 

to make findings and impose sanctions pursuant to this Chapter VIIXIV. A separate disciplinary 

panel will be established prior to the commencement of each disciplinary matter. No Disciplinary 

Panel shall be comprised in a manner such that any group or class of industry participants may 

reasonably be expected to dominate or exercise disproportionate influence on such panel. Each 

Disciplinary Panel shall consist of at least one individual who would qualify as a Public Director 

(if the individual was a director of the Exchange), except in cases limited to decorum, attire, or the 

timely submission of accurate records required for clearing or verifying each day’s transactions. 

Members of the Compliance Department of the Exchange shall not be eligible to serve on a 

Disciplinary Panel.

(b) Within ten (10) Business Days of being notified of the appointment of the 

Disciplinary Panel, a respondent may seek to disqualify any individual named to the Disciplinary 

Panel for the reasons identified in Rule IIX-10 or for any other reasonable grounds, by serving 

written notice on the Chief Compliance DirectorOfficer and providing a copy thereof to the 

Director of Hearings. By not timely filing a request for disqualification, the respondent will be 

deemed to have waived any objection to the composition of a Disciplinary Panel. The Chief 

Compliance DirectorOfficer will decide the merits of any request for disqualification within his 

or her sole discretion. Any such decision will be final and not subject to appeal.

XIV-10 VII-10. Convening Hearings of Disciplinary Proceedings

(a) All disciplinary proceedings (except for summary impositions of fines pursuant 

to Rule VIIXIV-17) will be conducted at a hearing before the Disciplinary Panel. A hearing will 

be conducted privately and confidentially unless the Disciplinary Panel decides that the hearing, 

or any part of it, should be held in public after giving each respondent the opportunity to present 

its, his or her views on holding a public hearing. Notwithstanding the confidentiality of hearings, 

the Disciplinary Panel may appoint an expert to attend any hearing and assist in deliberations if 

such expert agrees to be subject to an appropriate confidentiality agreement.

(b) After reasonable notice to each respondent, the Disciplinary Panel will 

promptly (but in no event later than thirty (30) Business Days following such notice) convene a 

hearing to conduct the disciplinary proceedings with respect to such respondent. Parties to a 

disciplinary proceeding include each respondent and the Compliance Department.

(c) The chairman of the Disciplinary Panel may continue, adjourn or otherwise 

conduct the hearing, as he or she may deem appropriate. The chairman of the Disciplinary Panel 

will determine all procedural and evidentiary matters, including the admissibility and relevance of 

any evidence proffered. In determining procedural and evidentiary matters, the chairman of the 

Disciplinary Panel will not be bound by any evidentiary or procedural rules or law. Once admitted 

during the hearing, the Disciplinary Panel may consider, and attach the weight it believes 
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appropriate to, evidence or other materials. The Exchange will provide guidance to the chairman 

of the Disciplinary Panel on the conduct of the hearing.

(d) Except for procedural and evidentiary matters decided by the chairman of the 

Disciplinary Panel pursuant to paragraph (c) above and Rule VIIXIV-11, unless each respondent 

otherwise consents, the entire Disciplinary Panel must be present during the entire hearing and any 

related deliberations.

XIV-11 VII-11. Respondent Review of Evidence

(a) Prior to the commencement of a hearing, each respondent will be given the 

opportunity to review all books, records, documents, papers, transcripts of testimony and other 

tangible evidence in the possession or under the control of the Exchange that the Compliance 

Department will use to support the allegations and proposed sanctions in the notice of charges or 

which the chairman of the Disciplinary Panel deems relevant to the disciplinary proceedings. 

Notwithstanding the foregoing, no respondent will have the right to review, and the Exchange will 

have no obligation to disclose, any information protected by attorney-client privilege or any other 

privileges recognized by Applicable Law.

(b) If any books, records, documents, papers, transcripts of testimony, or other 

tangible evidence contain information that could adversely affect the competitive position of the 

Person providing the information or if such information might compromise other investigations 

being conducted by the Compliance Department, the Compliance Department may redact, edit or 

code such information before furnishing it to the respondent.

(i) Notwithstanding anything in 

paragraph (b) above to the contrary, the Compliance 

Department:

(ii) (i) will not redact, edit or code competitive or 

investigative information contained in documents in a manner 

that would impair the respondent’s ability to defend against 

the allegations or proposed sanctions in the notices of charges, 

and 

(iii) (ii) will provide the respondent with access to 

the information and portions of the documents that the 

Compliance Department intends to rely on to support the 

allegations or proposed sanctions in the notice of charges.

(c) For purposes of this Rule VII-11, information that could adversely affect 

competitive positions include positions in Contracts currently held, trading strategies employed in 

establishing or liquidating positions, the identity of any Participant or Authorized 

TraderResponsible Trading Agent and the personal finances of the Person providing the 

information.
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XIV-12 VII-12. Conducting Hearings of Disciplinary Proceedings

(a) At a hearing conducted in connection with any disciplinary proceedings, the 

Compliance Department will present its case supporting the allegations and proposed sanctions in 

the notice of charges to the Disciplinary Panel. If a respondent has timely filed an answer to the 

notice of charges in accordance with Rule VIIXIV-6, the respondent is entitled to attend and 

participate in the hearing.

(b) At a hearing conducted in connection with any disciplinary proceedings, the 

Disciplinary Panel or the Compliance Department and each respondent may:

(i) present evidence and facts determined 

relevant and admissible by the chairman of the Disciplinary 

Panel;,

(ii) call and examine witnesses;, and 

(iii) cross-examine witnesses called by other 

parties.

(c) If the respondent fails to file an answer, has filed a general denial, or if any or 

all of the allegations in the notice of charges are not expressly denied in the respondent’s answer, 

the chairman of the Disciplinary Panel may limit evidence concerning any allegations not 

expressly denied in determining the sanctions to impose. If a respondent fails to file an answer 

but appears at the hearing, the respondent may not participate in the hearing (by calling or crossexamining witnesses, testifying in defense, presenting evidence concerning the notice of charges, 

or otherwise) unless the Disciplinary Panel determines that the respondent had a compelling reason 

for failing to timely file an answer. If the Disciplinary Panel determines that the respondent had a 

compelling reason for failing to timely file an answer, the Disciplinary Panel will adjourn the 

hearing and direct the respondent to promptly file a written answer in accordance with 

Rule VIIXIV-6.

(d) Any Person entitled, or required or called upon, to attend a hearing before a 

Disciplinary Panel pursuant to paragraph (b)(ii) above will be given reasonable notice, confirmed 

in writing, specifying the date, time and place of the hearing, and the caption of the disciplinary 

proceedings. The Exchange will require all Participants and Authorized TradersResponsible 

Trading Agents that are called as witnesses to appear at the hearing and produce evidence. The 

Exchange will make reasonable efforts to secure the presence of all other Persons called as 

witnesses whose testimony would be relevant.

(e) If during any disciplinary proceedings the Disciplinary Panel determines that 

a reasonable basis exists to believe that the respondent violated or is about to violate a Rule of the 

Exchange or a provision of Applicable Law other than the violations alleged in the notice of 

charges, the Disciplinary Panel may consider those apparent violations after providing the 

respondent with an opportunity to answer the additional allegations in accordance with 

Rule VIIXIV-6. In connection with considering apparent violations pursuant to this paragraph (e), 
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the Disciplinary Panel may request that the Compliance Department provide the Panel with any 

additional information.

(f) The Disciplinary Panel may summarily impose sanctions on any Participant or 

Authorized TraderResponsible Trading Agent that impede or delay the progress of a hearing.

(g) The Exchange will arrange for any hearing conducted in connection with 

disciplinary proceedings to be recorded hearing verbatim, or substantially verbatim, in a manner 

capable of accurate transcription. If the respondent requests a copy of all or portions of the 

recording of a hearing, the chairman of the Disciplinary Panel may within his or her sole discretion 

order the respondent to pay the costs for transcribing the recording of the hearing.

(h) No interlocutory appeals of rulings of any Disciplinary Panel or chairman of 

the Disciplinary Panel are permitted.

XIV-13 VII-13. Decision of Disciplinary Panel

(a) As promptly as reasonable following a hearing, the Disciplinary Panel will 

issue an order rendering its decision based on the weight of the evidence contained in the record 

of the disciplinary proceedings. A decision by a majority of the Disciplinary Panel will constitute 

the decision of the Disciplinary Panel.

(b) The Exchange will serve a copy of the order of the disciplinary proceedings on 

the respondent and the Compliance Department. The order will include:

(i) the notice of charges or summary of the 

allegations;,

(ii) the answer, if any, or a summary of the 

answer;,

(iii) a brief summary of the evidence introduced 

at the hearing;,

(iv) findings of fact and conclusions concerning 

each allegation, including each specific Rule of the Exchange 

and provision of Applicable Law that the respondent is found 

to have violated; ,

(v) the imposition of sanctions, if any, and the 

effective date of each sanction; and 

(vi) notice of the respondent’s right to appeal 

pursuant to Rule VIIXIV-16.
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(c) Unless a timely notice of appeal is filed pursuant to Rule VIIXIV-16, the order 

of the disciplinary proceedings will become final upon the expiration of twenty (20) Business Days 

after the order is served on the respondent and a copy thereof is provided to the Compliance 

Department.

XIV-14 VII-14. Sanctions

(a) After notice and opportunity for hearing in accordance with these Rules, the 

Exchange will impose sanctions if a Participant or Authorized TraderResponsible Trading is 

found to have violated or to have attempted to violate a Rule of the Exchange or provision of 

Applicable Law for which the Exchange possesses disciplinary jurisdiction. The Exchange may 

impose one or more of the following sanctions or remedies: (i) censure; (ii) limitation on Trading 

Privileges, association with a Participant or other activities, functions or operations; 

(iii) suspension of Trading Privileges or association with a Participant for a period not to exceed 

12 months; (iv) fine (subject to paragraph (b) below); (v) restitution or disgorgement; 

(vi) termination of Trading Privileges; or (vii) any other sanction or remedy deemed to be 

appropriate.

(b) The Exchange may impose a fine of up to $500,000 for each violation. If a 

fine or other amount is not paid within thirty (30) Business Days of the date that it becomes 

payable, then interest will accrue on the sum from the date that it became payable at the quoted 

prime rate plus three percent. The Exchange has sole discretion to select the bank on whose 

quotations to base the prime rate. Each Participant will be responsible for paying any fine or other 

amount imposed on, but not paid by, any Authorized TraderResponsible Trading Agent

authorized by, or other agent or representative of, such Participant.

(c) The Exchange will enforce the Rules and impose sanctions impartially.

XIV-15 VII-15. Costs

(a) Regardless of the outcome of any disciplinary proceeding, the Disciplinary 

Panel may order a respondent to pay some or all of the costs associated with the disciplinary 

proceedings that the Disciplinary Panel believes were unnecessarily caused by the respondent. 

Costs may include costs associated with the inquiry or investigation, the prosecution by the 

Compliance Department, legal and professional assistance, the hearing and administrative and 

other expenses incurred by the Disciplinary Panel.

(b) The Disciplinary Panel may only award costs against the Exchange if the Panel 

concludes that the Exchange has behaved in a manifestly unreasonable manner in the 

commencement or conduct of the disciplinary proceedings in question. The Disciplinary Panel 

must limit any award of costs against the Exchange to an amount that the Panel concludes is 

reasonable and appropriate, but does not exceed the respondent’s costs for external legal or other 

external professional assistance.

(c) The Disciplinary Panel may determine the amounts and allocation of costs in 

any manner it may deem appropriate. The Exchange or the respondent will pay any costs ordered 
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to be paid by it by the Disciplinary Panel within thirty (30) Business Days of the later of either 

written notice of (i) the amount imposed by the Disciplinary Panel or (ii) the determination of an 

appeal by the Appeals Panel against the Disciplinary Panel’s determination.

XIV-16 VII-16. Appeal from Disciplinary Panel Decision, Summary 

Impositions of Fines and Other Summary Actions

(a) Each respondent found by the Disciplinary Panel to have violated a Rule of the 

Exchange or a provision of Applicable Law or who is subject to any summary fine imposed 

pursuant to Rule VIIXIV-17 or any summary action imposed pursuant to Rule VIIXIV-17 may 

appeal the decision within twenty (20) Business Days of receiving the order of the disciplinary 

proceedings or the notice of summary action, as the case may be, by filing a notice of appeal with 

the Chief Compliance DirectorOfficer. While an appeal is pending, the effect of the order of 

disciplinary proceedings or the summary action (including any sanctions, remedies or costs 

imposed thereby) shall be suspended; provided however, any summary sanction entered under 

Rule VIIXIV-18 shall continue in effect during the appeal.

(b) The notice of appeal must state in writing the grounds for appeal, including the 

findings of fact, conclusions or sanctions to which the respondent objects. An appellant may 

appeal the order of disciplinary proceedings or any summary decision on the grounds that:

(i) the decision was arbitrary, capricious, an 

abuse of discretion, or not in accordance with the Rules of the 

Exchange;

(ii) the decision exceeded the authority or 

jurisdiction of the Disciplinary Panel, the Chief Compliance 

DirectorOfficer or the Exchange;

(iii) the decision failed to observe required 

procedures;

(iv) the decision was unsupported by the facts or 

evidence; or

(v) the imposed sanctions, remedies or costs are 

inappropriate or unsupported by the record.

(c) The Chief Compliance DirectorOfficer will forward copies of any notice of 

appeals received by it to all parties to the disciplinary proceeding or summary action, as the case 

may be, except the appellant. On or before the 20th day after filing a notice of appeal, the appellant 

must file with the Chief Compliance DirectorOfficer and serve on the Compliance Department a 

brief supporting the notice of appeal and documents supporting the brief. On or before the 20th 

day after the date on which the appellant serves their supporting brief, the appellee must file and 

serve its brief in opposition. On or before the 10th day after the date on which the appellee serves 

its brief in opposition, the appellant must file and serve a brief in reply.
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(d) In connection with any appeal, the Compliance Department will furnish to the 

Chief Compliance DirectorOfficer and to the respondent/appellant a transcript of the hearing, any 

exhibits introduced at the hearing, the notice of appeal and briefs filed to support and oppose the 

appeal.

(e) Within thirty (30) Business Days after the last submission filed pursuant to 

paragraph (c) above, the Chief Compliance DirectorOfficer will appoint the Appeals Panel to 

consider and determine the appeal. No member of the Disciplinary Panel that originally heard the 

matter may be a member of the Appeals Panel on such matter.

(f) The Appeals Panel may hold a hearing to allow parties to present oral 

arguments. Any hearing will be conducted privately and confidentially unless the Appeals Panel 

decides that the hearing, or any part of it, should be held in public after giving each appellant the 

opportunity to present their views on holding a public hearing. Notwithstanding the confidentiality 

of hearings, the Appeals Panel may appoint individuals to attend any hearing and assist in the 

deliberations if such individuals agree to be subject to appropriate confidentiality agreements. In 

determining procedural and evidentiary matters, the Appeals Panel will be bound by evidentiary 

or procedural rules or law.

(g) The Appeals Panel will only consider on appeal the record before the 

Disciplinary Panel or, in the case of a summary action, the record considered by the Chief 

Compliance DirectorOfficer or the Chief Compliance Director’sOfficer’s Designee, the notice of 

appeal, the briefs filed in support and opposition of the appeal, and any oral arguments of the 

parties. The Appeals Panel may only consider new evidence when the Appeals Panel is satisfied 

that good cause exists on why the evidence was not introduced during the disciplinary proceeding 

or when imposing the summary action.

(h) After completing its review, the Appeals Panel may affirm or, only if it finds 

that the decision of the Disciplinary Panel or the Chief Compliance DirectorOfficer that is under 

review, as the case may be, meets one of the criteria listed in Rule VIIXIV-16(i) below, modify or 

reverse any order of the disciplinary proceedings or summary action under appeal, in whole or in 

part, including increasing, decreasing or eliminating any sanction or remedy imposed, imposing 

any other sanction or remedy authorized by the Rules of the Exchange, or remanding the matter to 

the same or a different Disciplinary Panel for further disciplinary proceedings or for 

reconsideration by the Chief Compliance DirectorOfficer. The Appeals Panel may order a new 

hearing for good cause or if the Appeals Panel determines in its sole discretion that the appellant 

was not given a full and fair opportunity to make an argument in its favor and present supporting 

evidence.

(i) As described in Rule VIIXIV-16(h) above, the Appeals Panel may modify or 

reverse any order of the disciplinary proceedings or summary action under appeal only if it finds 

that the decision was:

(i) Arbitrary, capricious, or an abuse of the 

discretion of the Disciplinary Panel, the Chief Compliance 
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DirectorOfficer, or the Chief Compliance Director’sOfficer’s

Designee, as the case may be;

(ii) In excess of the authority or jurisdiction of 

the Disciplinary Panel or the Chief Compliance 

DirectorOfficer, as the case may be; or 

(iii) Based on a clearly erroneous application or 

interpretation of the Rules of the Exchange or the applicable 

Contract Rules.

(j) As promptly as reasonably possible following its review, the Appeals Panel will 

issue a written decision on appeal rendering its decision based on the weight of the evidence before 

the Appeals Panel. The decision of the Appeals Panel will include a statement of findings of fact 

and conclusions for each finding, sanction, remedy and cost reviewed on appeal, including each 

specific Rule of the Exchange and provision of Applicable Law that the respondent is found to 

have violated, if any, and the imposition of sanctions, remedies and costs, if any, and the effective 

date of each sanction, remedy or cost.

(k) The Appeal Panel’s written order on appeal (including findings of fact and 

conclusions and the imposition of sanctions, remedies and costs, and the effective date of any 

sanction, remedy cost) will be the final action of the Exchange and will not be subject to appeal 

within the Exchange.

(l) Within ten (10) Business Days of being notified of the appointment of the 

Appeals Panel, a respondent may seek to disqualify any individual named to the Appeals Panel for 

the reasons identified in this Rule VIIXIV-16 or for any other reasonable grounds, by serving 

written notice on the Chief Compliance DirectorOfficer and providing a copy thereof to the 

Director of Hearings. By not timely filing a request for disqualification, the respondent will be 

deemed to have waived any objection to the composition of an Appeals Panel. The Chief 

Compliance DirectorOfficer will decide the merits of any request for disqualification within his 

or her sole discretion. Any such decision will be final and not subject to appeal.

XIV-17 VII-17. Summary Imposition of Fines

(a) The Chief Compliance DirectorOfficer may summarily impose a fine against 

aany Person with Trading Privileges jointly and severally with such Participant or Authorized 

Traderthrough which Person has been granted Trading Privileges for failing:

(i) to make timely payments of margin, options 

premiums, fees, cost, charges or fines to the Exchange or the 

Clearinghouse;,

(ii) to make timely and accurate submissions to 

the Exchange of notices, reports or other information required 

by the Rules of the Exchange;, and 
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(iii) to keep any books and records required by the 

Rules of the Exchange.

(b) The Compliance Department, acting on behalf of the Chief Compliance 

DirectorOfficer, will give notice of any fine imposed pursuant to this Rule VIIXIV-17 to each 

Participant or Authorized TraderResponsible Trading Agent subject thereto. The notice will 

specify (i) the violations of the Rules of the Exchange for which the fine is being imposed, (ii) the 

date of the violation for which the fine is being imposed and (iii) the amount of the fine. Within 

twenty (20) Business Days of serving the notice of fine, the Participant or Authorized 

TraderResponsible Trading Agent, as the case may be, must either pay the fine or file notice of 

an appeal pursuant to Rule VIIXIV-16. Unless timely notice of appeal is filed pursuant to 

Rule VIIXIV-16, the fine will become final upon the expiration of twenty (20) Business Days after 

the notice of fine is served on the Participant or Authorized TraderResponsible Trading Agent, 

as the case may be.

(c) The Exchange, in its sole discretion, may deduct the amount of any fine 

imposed pursuant to Rule VIIXIV-17(b) directly from the Participant’s Trading Account; provided, 

that the Exchange may not make such a deduction if the result would be to cause an Event of 

Default with respect to any Open Contract Positions then held in the Trading Account of such 

Participant.

(d) The Exchange will set the amount of any fines imposed pursuant to this 

Rule VIIXIV-17, with the maximum fine for each violation not to exceed $5,000. Summary 

imposition of fines pursuant to this Rule VIIXIV-17 will not preclude the Exchange from bringing 

any other action against the Participant or Authorized TraderResponsible Trading Agent, as the 

case may be.

XIV-18 VII-18. Summary Suspensions and Other Summary Actions

(a) Notwithstanding anything in the Rules of the Exchange to the contrary, the 

Chief Compliance DirectorOfficer or the Chief Compliance Director’sOfficer’s Designee, upon 

a good faith determination that there are substantial reasons to believe that such immediate action 

is necessary to protect the public or the best interests of the Exchange, may order that any party be 

denied access to the Trading System or the Exchange, or summarily limit, condition, restrict or 

qualify the Trading Privileges of a Participant or Authorized TraderResponsible Trading Agent, 

and may take other summary action against any Participant or Authorized TraderResponsible 

Trading Agent in accordance with the Rules of the Exchange; provided, however, that the Chief 

Compliance DirectorOfficer or the Chief Compliance Director’sOfficer’s Designee in issuing an 

order denying access, may permit such party to enter Orders solely for the purpose of liquidating 

the Open Contract Positions of such Participant while the applicable suspension, limitation, 

condition, restriction or qualification of access is in effect.

(b) Promptly after an order is issued pursuant to paragraph (a), the party shall be 

informed of the action taken, the reasons for the action, the effective date and the duration of the 

action. The party shall also be informed of his or her right to appeal the action under Rule VIIXIV-
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16. Whenever practicable, the Compliance Department, acting on behalf of the Chief Compliance 

DirectorOfficer, shall provide such notice prior to taking the action.

(c) Unless timely notice of appeal is filed pursuant to Rule VIIXIV-16, the 

summary action will become final upon the expiration of twenty (20) Business Days after the 

notice of action is served on the respondent.

(d) At the request of the Exchange or the Clearinghouse, a respondent against 

whom a summary action is brought pursuant to this Rule VIIXIV-18 must provide books and 

records over which the respondent has access or control and must furnish information to, or appear 

or testify before, the Exchange or the Clearinghouse in connection with the enforcement of any 

Rule of the Exchange or Rule of the Clearinghouse.

(e) A respondent whose Trading Privileges are suspended, limited, conditioned, 

restricted or qualified pursuant to this Rule VIIXIV-18 may apply for reinstatement by filing with 

the Compliance Department a written request stating the applicant’s reasons for seeking 

reinstatement. The Exchange will not consider a respondent’s request for reinstatement if the 

respondent (i) persists in the conduct which was the subject of the order denying access; (ii) owes 

any fines, fees, charges or costs to the Exchange, (iii) continues to fail to appear at disciplinary 

proceedings without good cause or (iv) continues to impede the progress of disciplinary 

proceedings.

(f) Within a reasonable period after the filing of a request for reinstatement, the 

Appeals Panel will conduct a hearing to consider the request. At the hearing for reinstatement, the 

respondent will present its, his or her case supporting the reinstatement and the Compliance 

Department, acting on behalf of the Chief Compliance DirectorOfficer may, in its discretion, 

present its case opposing or supporting the reinstatement and each may present relevant and 

admissible evidence and facts and call, examine and cross-examine witnesses. At the hearing for 

reinstatement, the Exchange may require any Participant or any Authorized TraderResponsible 

Trading Agent to appear as witnesses and produce evidence if the Appeals Panel determines that 

the evidence is relevant.

(g) As promptly as reasonably possible after a reinstatement hearing, the Appeals 

Panel will issue an order reinstating, denying the reinstatement, or placing conditions on the 

reinstatement of the Trading Privileges, or association with a Participant, of the respondent. The 

order will include a brief summary of the evidence introduced at the reinstatement hearing; and, if 

applicable, findings of fact and conclusions not contained in the Appeals Panel’s initial order 

issued pursuant to Rule VIIXIV-18(d) above. The Appeals Panel’s order may not be appealed.

(h) Any decision to deny access pursuant to paragraph (a) shall not remain in effect 

for more than sixty (60) days unless the Chief Compliance DirectorOfficer or the Chief 

Compliance Director’sOfficer’s Designee, upon further consideration of the circumstances giving 

rise to the order denying access, issues a separate order denying access for an additional period of 

time, not to exceed sixty (60) days. The party must be notified thereof prior to issuance of the 

second order, unless prior notice is impracticable. Such notice must meet the standards provided 
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in paragraph (b). At any time, a party subject to an action under this Rule VIIXIV-18, may petition 

the Chief Compliance DirectorOfficer or the Chief Compliance Director’sOfficer’s Designee to 

reconsider an access denial pursuant to this Rule based upon materially changed circumstances.

XIV-19 VII-19. Rights and Responsibilities after Suspension or Termination

(a) When the Trading Privileges of a Participant are, or the association of an 

Authorized Tradera Direct Access Customer or Responsible Trading Agent with a Participant 

is, suspended for a period of twelve (12) months or less, none of its rights and Trading Privileges 

(including the right to hold oneself out to the public as a Participant, enter Orders into the CX 

DirectExchange Trading System and receive Participant rates for fees, costs, and charges and 

deposit margin at Participant levels) will apply during the period of the suspension, except for the 

right of the Participant or Authorized TraderResponsible Trading Agent in question to assert 

claims against others as provided in the Rules of the Exchange. Any such suspension will not 

relieve the Participant or Authorized Trader in, Direct Access Customer or Responsible Trading 

Agent in question of its, his or her obligations under the Rules of the Exchange to perform any 

Contracts entered into before the suspension, or for any Exchange fees, costs, or charges incurred 

during the suspension. The Exchange may discipline a suspended Participant or Authorized 

Trader, Direct Access Customer or Responsible Trading Agent under this Chapter VIIXIV for any 

violation of a Rule of the Exchange or provision of Applicable Law committed by the Participant 

before, during or after the suspension.

(b) When the Trading Privileges of a Participant are, or the association of an 

Authorized Tradera Direct Access Customer or Responsible Trading Agent with a Participant is, 

terminated, all of its rights and Trading Privileges will terminate, except for the right of the 

Participant or Authorized Trader, Direct Access Customer or Responsible Trading Agent in 

question to assert claims against others, as provided in the Rules of the Exchange. A terminated 

Participant or Authorized TraderResponsible Trading Agent may only seek to reinstate its 

Trading Privileges by applying for Trading Privileges pursuant to Rule III-4II-6 or Rule XXI-5. 

The Exchange will not consider the application of a terminated Participant or Authorized Trader, 

Direct Access Customer or Responsible Trading Agent if such Participant or Authorized Trader, 

Direct Access Customer or Responsible Trading Agent, as the case may be, continues to fail to 

appear at disciplinary proceedings without good cause or continues to impede the progress of 

disciplinary proceedings.

(c) A suspended or terminated Participant or Authorized Trader, Direct Access 

Customer or Responsible Trading Agent remains subject to the Rules of the Exchange and the 

jurisdiction of the Exchange for acts and omissions prior to the suspension of termination, and 

must cooperate in any inquiry, investigation, disciplinary proceeding, appeal of disciplinary 

proceedings, summary suspension or other summary action as if the suspended or terminated 

Participant or an Authorized Trader, Direct Access Customer or an Responsible Trading Agent

still had Trading Privileges or was still associated with a Participant, as the case may be.
- 122 -

General Rules of the Exchange

© 2010-2023 FMX Futures Exchange, L.P.

XIV-20 VII-20. Notice to the Respondent, the CommissionCFTC and the 

Public

(a) The Exchange will provide written notice of disciplinary proceedings to the 

parties and the CFTC consistent with CFTC Regulations. Whenever the Exchange suspends, 

expels, fines or otherwise disciplines, or denies any Person access, to the Exchange, the Exchange 

will make the public disclosures required by CFTC Regulations.

CHAPTER XVCHAPTER VIII 
- 123 -

General Rules of the Exchange

© 2010-2023 FMX Futures Exchange, L.P.

ARBITRATION

XV-1 VIII-1. General

Except as otherwise provided in the Rules of the Exchange, Participants and Authorized 

Traders, Direct Access Customers and Responsible Trading Agents must arbitrate all 

controversies arising in connection with their Exchange business between or among themselves. 

Notwithstanding the foregoing, this Rule VIIIXV-1 does not require arbitration of claims alleging 

employment discrimination (including sexual harassment) in violation of Applicable Law.

XV-2 VIII-2. Forum

NFA will conduct any and all arbitrations of a type described in Rule VIIIXV-1.

XV-3 VIII-3. Applicable Arbitration Rules

Any and all arbitrations of a type described in Rule VIIIXV-1 above will be conducted 

pursuant to NFA’s Member Arbitration Rules.

XV-4 VIII-4. Penalties

(a) Any failure on the part of any Participant or Authorized TraderResponsible 

Trading Agents to arbitrate a case subject to arbitration, or the commencement by any such Person 

of a suit in any court prior to arbitrating a case subject to arbitration, violates the Rules of the 

Exchange and subjects such Participant or Authorized TraderResponsible Trading Agent to 

disciplinary proceedings pursuant to Chapter VIIXIV.

(b) The Exchange may summarily suspend, pursuant to Chapter VIIXIV, a 

Participant or Authorized TraderResponsible Trading Agent that fails to satisfy an arbitration 

award rendered in any arbitration pursuant to this Chapter VIIIXV.
PART C RULES OF THE CX DIVISION

Scope: The rules of Part C apply to trading of Contracts on the CX Division of the Exchange.

CHAPTER XXCHAPTER IX 
CONTRACTSTERMS APPLICABLE TO THE CX DIVISION

XX-1 Defined Terms

The following terms have the meanings specified herein with regard to the Exchange and 

the CX Division unless otherwise specifically provided in the Rules of the Exchange or the context 

otherwise requires.

Administrator

The term “Administrator” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange.

Affiliate

The term “Affiliate” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange.

Appeals Panel

The term “Appeals Panel” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange.

Applicable Law

The term “Applicable Law” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

Assistant Secretary

The term “Assistant Secretary” means any individual appointed by the Board of Directors 

from time to time.

Available Funds

The term “Available Funds” shall have the meaning assigned to such term in the Rules of 

the CX Clearinghouse.

Board of Directors

The term “Board of Directors” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange.

Business Day

The term “Business Day” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange.
Cancel CX Order

The term “Cancel CX Order” means an Order that cancels fully an existing buy or sell 

order for a CX Division Contract.

Cancel Replace CX Order

The term “Cancel Replace CX Order” means an order to cancel fully an existing buy or 

sell Order for a CX Division Contract and replace it with a new Order for a CX Division Contract 

for a different quantity or price.

CEA

The term “CEA” shall have the meaning assigned to such term in Chapter I of the Rules of 

the Exchange.

CFTC

The term “CFTC” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange.

CFTC Regulation

The term “CFTC Regulation” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

Closed Contract Positions

The term “Closed Contract Positions” shall have the meaning assigned to such term in the 

Rules of the CX Clearinghouse.

Compliance Department

The term “Compliance Department” shall have the meaning assigned to such term in 

Chapter I of the Rules of the Exchange.

Chief Compliance Officer

The term “Chief Compliance Officer” shall have the meaning assigned to such term in 

Chapter I of the Rules of the Exchange.

IX-1. Contract Specifications

Each Contract will meet such specifications, and all trading in such Contract 

will be subject to such procedures and requirements, as set forth in the rules governing 

such Contract. 

The term “Contract” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange.
Contract Profit or Loss Amounts

The term “Contract Profit or Loss Amounts” shall have the meaning assigned to such term 

in the Rules of the CX Clearinghouse.

IX-2. Contract ModificationsRules

The term “Contract Rules” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

The specifications for, and the procedures and requirements for trading, any 

Contract may not be modified in any respect without the prior approval of the Exchange. 

IX-3003. Atlantic Named Storm Landfall Swaps 

Scope and Underlying 

These Contract Rules will govern the trading on the CX Futures 

Exchange, L.P. (the “Exchange”) of the ATLANTIC NAMED STORM 

LANDFALL SWAPS CONTRACT (“ANSLS Contract”). In general, the 

ANSLS Contract is a swap that will terminate once the given storm has 

dissipated or is no longer being tracked as a named storm and will settle as 

per Rule 3003(e) below. 

Clearing of the ANSLS Contract will be governed by the rules of the 

CX Clearinghouse, L.P. (the “Clearinghouse”). These Contract Rules are 

established pursuant to and constitute “Contract Specifications” under Rule 

IX-1 of the Rules of the Exchange and constitute “Contract Rules” Under 

Rule I-7 of the Rules of the Clearinghouse. 

Capitalized terms used, but not defined herein, have the meanings 

ascribed to them in the Rules of the Exchange or the Rules of the 

Clearinghouse, as applicable. 

Strike Codes, Landfall Locations and Qualifying Atlantic 

Landfalls

The valid Strike Codes for ANSLS Contracts are all those listed in 

Appendix A. Each Strike Code is five digits and generally co-locates with 

the centroid of equivalent 5-digit US ZIP Codes. For the avoidance of doubt, 

no such correspondence is assured as ANSLS Strike Codes are not 

regularly updated to match US ZIP Code centroid locations.

The qualifying Landfall Locations for each Strike Code are listed in 

Appendix A. Certain Landfall Location latitude and longitude points lie in 

territories that are not part of the continental United States.
A Qualifying Atlantic Landfall (“QAL”) will occur anytime the 

Exchange designates such occurrence relying primarily on Public 

Advisories published on the website www.nhc.noaa.gov and issued by 

NOAA's National Hurricane Center (NHC) provided that (A) the storm was 

named prior to the time of landfall and retains that name at the time of 

landfall; (B) the latitude and longitude of such landfall corresponds to a 

Landfall Location associated with at least one Strike Code in Appendix A; 

(C) the landfall is not a revision or amendment to a prior landfall or inactive 

storm; and (D) the landfall occurs when there is a corresponding ANSLS 

Contract listed for trading. For the avoidance of doubt, multiple landfalls by 

the same named storm qualify as separate QALs and will be taken together 

when calculating the Final Settlement prices for each ANSLS contract.

The Exchange is solely responsible for determining the occurrence 

and location of a QAL and makes no warranties with respect to the accuracy 

of the NHC’s advisory and in its discretion may use other public and private 

weather reporting sources to determine the location of a QAL when doing 

so is in the best interest of the marketplace. The Exchange shall document 

the information on which it declares a QAL.

All QALs will be published on the Exchange website and include 

named storm, date and time of landfall, latitude and longitude of landfall.

Placement of Bids 

(i) Immediately after an ANSLS Contract is listed, Participants, 

through the Exchange, will be able to bid for contracts by specifying the 

Strike Code of the contract. The Bid Price for each Contract’s Strike Code 

shall be the highest Bid for that Strike Code reached on Table 1. By way 

of example, if the Bid Price for the 10055 Strike Code reaches $2.50 

based on Table 1 because it’s within 56 miles of the 36-hour storm 

forecast location, the Bid Price shall remain at $2.50 even if subsequently 

the storm moves such that 10055 Strike Code becomes outside of that 

range. Once a Strike Code is “in range” and unavailable for additional 

bidding, it shall remain unavailable for additional bidding for the contract’s 

duration.

(ii) A named storm’s forecast locations and last reported position 

will be taken from National Hurricane Center Advisories (“Advisory”) and 

updated by the Exchange at least once each Trading Day provided such 

information is made available by the NHC. The Exchange will post a link 

to any Advisory used for Bid Price determination and the effective time of 

such Bid Price changes on its website.
Table 1

Any of a Strike Code’s 

Landfall Location(s) lie within

Bid Price and 

Original Margin per 

Contract

26 miles of the last reported storm location, or

26 miles of the 12-hour storm forecast location, or

43 miles of the 24-hour storm forecast location.

Strike Code is “in range” and 

unavailable for additional 

bidding.

56 miles of the 36-hour storm forecast location. $2.50

74 miles of the 48-hour storm forecast location. $2.25

103 miles of the 72-hour storm forecast location. $2.00

151 miles of the 96-hour storm forecast location. $1.75

198 miles of the 120-hour storm forecast location. $1.50

Storm is named, but outside of locations listed above. $1.25

Storm name has not yet been assigned to a storm by 

NHC. $1.00

Control

The term “Control” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange.

CX Clearinghouse

The term “CX Clearinghouse” means CX Clearinghouse, L.P. (including its successors), a 

limited partnership organized under the laws of the State of Delaware, and a registered derivatives 

clearing organization, that the Exchange has designated to provide clearing services with respect 

to CX Division Contracts that the Exchange lists for trading.

CX Direct System

The term “CX Direct System” means the proprietary order entry and execution system used 

by the Exchange for the placement and execution of Orders or the collection and transmission of 

information relating to Contracts. Participants (and their Responsible Trading Agents) will access 

the CX Direct System directly via the Internet.
CX Division

The term “CX Division” means the Division of the Exchange that lists Contracts only for 

direct Participant trading and for self-clearing by Participants through CX Clearinghouse. 

CX Division Contract

The term “CX Division Contract” shall have the meaning assigned to such term in Chapter 

I of the Rules of the Exchange. 

CX Participant

The term “CX Participant” means a Participant that is admitted to the Exchange for trading 

on the CX Division, only for its own account (or whose account is traded by a registered or exempt 

Commodity Pool Operator or Commodity Trading Advisor).

CX Participant Clearing Account

The term “CX Participant Clearing Account” means, with respect to each CX Participant, 

the account established and maintained by such Participant at the CX Clearinghouse through which 

the Participant will hold, and the CX Clearinghouse will maintain and monitor, Available Funds, 

Open Contract Positions, Closed Contract Positions, Contract Profit or Loss Amounts and the 

corresponding margin requirements, if any, in connection with Open Contract Positions in CX 

Division entered into through the Participant’s Trading Account. 

CX Referred Participant

The term “Referred Participant” means a Person that has been referred or solicited by a 

Referring Participant to become a CX Participant or whose Orders for CX Division Contracts have 

been solicited by a Referring Participant.

CX Referring Participant

The term “Referring Participant” means a Participant that has been approved by the 

Exchange to solicit or refer another Person to become a CX Participant (the Referred Participant) 

or to solicit a Referred Participant’s Orders for CX Division Contracts, but not to enter such 

Referred Participant’s Orders into the Trading System on behalf of that Referred Participant.

Director of Hearings

The term “Director of Hearings” shall have the meaning assigned to such term in Chapter 

I of the Rules of the Exchange.

Disciplinary Panel

The term “Disciplinary Panel” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange.
DPM

The term “DPM” means any designated primary market maker approved by the Exchange 

from time to time.

Emergency

The term “Emergency” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange.

End of Trading

The term “End of Trading” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

Entity

The term “Entity” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange.

Exchange

The term “Exchange” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange.

Exchange Official

The term “Exchange Official” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange.

First Trading Day

The term “First Trading Day” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange.

Floor Trader Participant

The term “Floor Trader Participant” means any Participant who (i) is registered as a floor 

trader under the CEA, or (ii) has a pending application for such registration.

Funds Deposit Request

The term “Funds Deposit Request” means a Participant’s written or electronic 

authorization to withdraw and transmit funds from such Participant’s bank account relating to 

trading in CX Division including all information required to give effect to such withdrawal and 

transmission.
Futures

The term “Futures” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange.

General Partner

The term “General Partner” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

Hearing Panel Committee

The term “Hearing Panel Committee” shall have the meaning assigned to such term in 

Chapter I of the Rules of the Exchange.

Last Trading Day

The term “Last Trading Day” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

Limit Order

The term “Limit Order” shall have the meaning assigned to such term in Rule III-4(a) of 

the Rules of the Exchange.

Matched Trade

The term “Matched Trade” has the meaning set forth in Rule XXII-10(h).

NFA

The term “NFA” shall have the meaning assigned to such term in Chapter I of the Rules of 

the Exchange.

Officer

The term “Officer” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange.

Open Contract Positions

The term “Open Contract Positions” shall have the meaning assigned to such term in the 

Rules of the CX Clearinghouse.

Operating Agreement

The term “Operating Agreement” shall have the meaning assigned to such term in Chapter 

I of the Rules of the Exchange.
Option on Futures

The term “Option on Futures” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange.

Order

The term “Order shall have the meaning assigned to such term in Chapter I of the Rules of 

the Exchange.

Original Margin

(iii) The Bid Price per contract must be deposited with each bid as term “Original 

Margin with the ” shall have the meaning assigned to such term in the Rules of the CX 

Clearinghouse.

(iv) Bids may not be cancelled once entered onto the CX Direct 

System; provided however, the Strike Code of a bid that has been entered 

may be modified if (A) the modified bid is for the same ANSLS contract as 

the original bid and (B) the original Bid Price is bid for the modified Strike 

Code and is retained on deposit as Original Margin with the 

Clearinghouse. For the avoidance of doubt, there shall be no reductions 

in Bid Price, even if the contract premium price for the new Strike Code in 

effect at the time the bid is modified is for a lower amount than the original 

Bid Price.

Once a position is created by the CX Direct System the position 

may not be liquidated except by Final Settlement as provided under Rule 

IX-3003(e).

Termination of Trading and Determination of Final Settlement 

for each Strike Code “Termination of Trading” means the end of trading in 

an ANSLS contract and shall occur at 10:00 AM ET on the Trading Day 

following the earliest of (A) the named storm dissipated or will no longer be 

tracked as a named storm, (B) the named storm is not expected to have a 

potential Landfall Location listed in Appendix A, or (C) the first business 

day after November 30th of the respective calendar year on which there is 

no named storm active in the Atlantic basin. “Final Settlement” is the 

process following Termination of Trading in which either a QAL has 

occurred and each contract will settle as per Rule 3003(e)(i) or a QAL has 

not occurred and each contract will settle as per Rule 3003(e)(ii) below.

(i) Upon Final Settlement, if a QAL has (or multiple QALs have) 

occurred for the respective contract, then each position holder will receive 

a payout on his or her position equal to the number of contracts at each 

Strike Code times the respective Final Settlement Price for each contract. 

The Final Settlement Price for each contract at each Strike Code is 

calculated using the procedure in this subparagraph. The Final Settlement 
Price for any contract is at least $0.01 and no more than $249.99. For the 

avoidance of doubt, any Strike Codes listed in Appendix A that do not have 

open interest at the time of Final Settlement are excluded from all 

calculations. 

For each Strike Code, the Exchange will determine the ANSLS 

Conversion Factor such that (A) any Strike Code having at least one 

Landfall Location that corresponds to a QAL for that contract will be 

assigned an ANSLS Conversion Factor of 1.00, or (B) any Strike Code 

that does not have at least one Landfall Location corresponding to a QAL 

for that contract will be assigned an ANSLS Conversation Factor of 0.01.

Participant

The term “Participant” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange

To determine the Final Settlement Price, the Exchange will multiply the 

number of contracts bid at each Strike Code by the ANSLS Conversion 

Factor and sum these values across all Strike Codes to obtain the 

contract's total Residual Bid Interest. The Final Settlement Price for each 

Strike Code will equal that Strike Code’s ANSLS Conversion Factor times 

the total Original Margin applicable to the contract divided by the total 

Residual Bid Interest then rounded down to the nearest one cent ($0.01). 

After determination of the Final Settlement Price for each contract as 

provided above, the Exchange will post for each Strike Code (A) the bid 

interest; (B) the Residual Bid Interest after application of the ANSLS 

Conversion Factor; and (C) the Final Settlement Price for each Strike 

Code.

(ii) Upon Final Settlement, if no QAL has occurred for the respective 

contract then (A) if the Termination of Trading has occurred on or before 

November 30th of the respective calendar year, each contract position for 

that storm will be rolled forward into a contract position for the same Strike 

Code for the next ANSLS contract that is available for trading in the 

sequence “A”, “B”, “C”, et al that has not yet been named by the NHC, or 

(B) if the Termination of Trading has occurred after November 30th of the 

respective calendar year, the Final Settlement Price for each Strike Code 

will equal the total Original Margin applicable to the contract divided by the 

total open interest for all Strike Codes then rounded down to the nearest 

one cent ($0.01).

For the avoidance of doubt, positions rolled forward under Rule 

3003(e)(ii)(A) above will be rolled into the same Strike Code and at the Bid 

Price of the position being rolled.
Passwords

(iii) Final Settlement of open positions in each contract will occur 

as soon as practical after the Exchange’s calculation and verification of 

the Final Settlement Price for each Strike Code.

The term “Passwords” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange.

Person

The term “Person” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange.

President

The term “President” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange.

Public Director

The term “Public Director” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

Qualified Market Maker

The term “Qualified Market Maker” shall have the meaning assigned to such term in 

Chapter I of the Rules of the Exchange.

Regulatory Oversight Committee

The term “Regulatory Oversight Committee” shall have the meaning assigned to such term 

in Chapter I of the Rules of the Exchange.

Regulatory Services Agreement

The term “Regulatory Services Agreement” shall have the meaning assigned to such term 

in Chapter I of the Rules of the Exchange.

Responsible Trading Agent

The term “Responsible Trading Agent” shall have the meaning assigned to such term in 

Chapter I of the Rules of the Exchange.

Rules of the CX Clearinghouse

The term “Rules of the CX Clearinghouse” means the constitutive documents and any 

rules, regulations, interpretations, stated policies or instruments corresponding to any of the 

foregoing, in each case as adopted or amended from time to time by the CX Clearinghouse relating 
to the CX Division Contracts for which CX Clearinghouse has been designated as the 

clearinghouse by the Exchange.

Rules of the Exchange

The term “Rules of the Exchange” shall have the meaning assigned to such term in Chapter 

I of the Rules of the Exchange.

Secretary

The term “Secretary” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange.

Settlement Price

The term “Settlement Price” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

Supervised Persons

The term “Supervised Persons” shall mean any directors, officers or employees or 

Responsible Trading Agents of any Participant.

Trading Account

The term “Trading Account” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

Trading Day

The term “Trading Day” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange.

Trading Hours

The term “Trading Hours” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

Trading Privileges

The term “Trading Privileges” shall have the meaning assigned to such term in Chapter I 

of the Rules of the Exchange.

Treasurer

The term “Treasurer” shall have the meaning assigned to such term in Chapter I of the 

Rules of the Exchange.

User ID
The term “User ID” shall have the meaning assigned to such term in Chapter I of the Rules 

of the Exchange.

Vice President

The term “Vice President” shall have the meaning assigned to such term in Chapter I of 

the Rules of the Exchange.

XX-2 Rules of Interpretation

For all purposes of these Rules, except as otherwise expressly provided herein or unless 

the context otherwise requires:

(a) the terms defined in these Rules include the plural as well as the singular and vice 

versa;

(b) Ticker Symbols words importing gender include all genders;

Each ANSLS Contract will be identified as “WXANSLSyy@” where “yy” 

shall correspond to the two-digit year and “@” shall be the ANSLS 

Contract’s upper-case alphabetical designator, which shall be consistent 

with the alphabetical designator as determined by the World 

Meteorological Organization and posted on the NHC’s website. For 

example, the first ANSLS Contract for the 2020 season shall be listed as 

WXANSLS20A, the second ANSLS Contract for the season shall be listed 

as WXANSLS20B, etc. If more than 21 storms are listed, then “@” shall be 

the lower-case alphabetical designator in sequence (e.g. “WXANSLS20a” 

would correspond to the “Alpha” storm). 

(c) any reference to a Chapter, Rule or Appendix refers to a Chapter or Rule of, or 

Appendix to, these Rules;

(d) any reference to these Rules refers to these Rules, including all Appendices hereto, 

and the words herein, hereof, thereto, hereto and hereunder and words of similar import refer to 

these Rules and their appendices as a whole and not to any particular Part, Chapter, Rule, appendix 

or any other subdivision;

(e) references to days, months and years refer to calendar days, months and years, 

respectively;

(f) all references herein to “including” shall be deemed to be followed by the words 

“without limitation;”

(g) any term used herein that is defined in the CEA or CFTC Regulations shall have 

the meaning assigned to it therein; and

(h) all references herein to a time of day refer to local time in The City of New York.
XX-1 Effect of Titles

The titles of these Rules have been inserted for convenience of reference only and shall not 

affect the meaning of these Rules.

XX-2 Amendment of Rules

New Rules of the Exchange may be adopted, and existing Rules of the Exchange may be 

amended or repealed, by the Board of Directors. All such new Rules of the Exchange, amendments 

or repeals shall become effective on such date (after any required certification with or approval 

thereof by the CFTC) as may be determined by the Exchange.

XX-3 Hierarchy of Interpretation of Rules

(a) The Rules are divided into three Parts. The rules specific to the FMX Division are 

included in Part A, the General Rules of the Exchange are included in Part B, and the rules specific 

to the CX Division are located in Part C. Notwithstanding any provision of these Rules to the 

contrary, in the event of any conflict between a Rule in Part A governing the FMX Division and a 

General Rule of the Exchange in Part B of this Rulebook, the Part A Rule shall govern, or in the 

event of any conflict between a Rule in Part C governing the CX Division and a General Rule of 

the Exchange in Part B of this Rulebook, the Part C Rule shall govern.

(b) Notwithstanding any provision of these Rules to the contrary, in the event of any 

conflict between a Rule in Parts A, B or C of this Rulebook and a specific Contract Rule in Chapter 

V for FMX Division Contracts or Chapter XXV for CX Division Contracts, the specific Contract 

Rules shall govern with respect to trading in the relevant Contract.

(c) Notwithstanding the generality of Rule XX-5(a) or anything to the contrary in Rule 

XXI-4, the Contract Rules for each individual Contract may specify:

(i) different classes of Participants eligible to 

trade such Contracts. Each such class of Participants shall have 

the rights and obligations specified by the Contract Rules for 

each such Contract; and 

(ii) whether such Contract may be settled via 

cash settlement, physical delivery of the underlying 

commodity, or by any other means, as applicable.
CHAPTER XXI

ADMISSION TO TRADE ON CX DIVISION

XXI-1 CX Participants and CX Trading Accounts

(a) Each CX Participant and its Responsible Trading Agents shall have the right to 

access the Exchange Trading System, including the right to place Orders for Trading Accounts as 

provided in this Chapter.

(b) Upon application to the Exchange and an explanation of the reasons and uses 

therefore, the Exchange in its discretion may permit a CX Participant to maintain more than one 

Trading Account.

(c) In the event that the Exchange determines that Participants may be permitted to 

maintain more than one Trading Account, the CX Participant shall designate each of its 

Responsible Trading Agents to trade any or all of its Trading Accounts, provided that a Participant 

shall at all times be responsible for all of its Trading Accounts as set forth under these Rules.

(d) Subject to the requirements and procedures set forth in this Chapter, CX Trading 

Privileges shall be offered to all applicants eligible to be CX Participants, as determined by the 

Exchange, subject to any limitations or restrictions from time to time imposed by the Exchange. 

CX Trading Privileges are non-transferable, non-assignable, may not be sold or leased, and are 

specifically limited to trading on the CX Division. For the avoidance of doubt, a CX Participant 

may trade FMX Division Contracts on the FMX Division only if also admitted as an FMX 

Participant.

(e) By virtue of obtaining CX Trading Privileges, a CX Participant shall not obtain any 

equity or other interest in the Exchange, including voting rights or rights to receive any dividends 

or other distributions, whether arising from a dissolution, merger, consolidation involving the 

Exchange or otherwise, unless specifically so provided by agreement with the Exchange.

(f) For the avoidance of doubt, and notwithstanding anything to the contrary in these 

Rules, under no circumstances shall any employees, officers, directors or agents of the Exchange

(i) trade directly or indirectly in any commodity 

interest traded on the Exchange or cleared by the CX 

Clearinghouse, or in a related commodity interest; or 

(ii) trade directly or indirectly in a commodity 

interest traded on a designated contract market or swap 

execution facility other than the Exchange or cleared by a 

derivatives clearing organization other than the Exchange’s 

clearinghouse, if the employee, officer or director has access 

to material non-public information concerning such 

commodity interest.
XXI-2 Responsible Trading Agents

(a) Participants that are natural persons may act as their own Responsible Trading 

Agent or may appoint a third party as their Responsible Trading Agent, pursuant to a power of 

attorney or other instrument, in a form prescribed or approved by the Exchange, providing such 

third party with discretionary trading authority with respect to the CX Participant’s Trading 

Account.

(b) A CX Participant that is an Entity may appoint an employee to act as its Responsible 

Trading Agent or may appoint a third party as its Responsible Trading Agent pursuant to a power 

of attorney or other instrument, in a form prescribed or approved by the Exchange, providing such 

third party with discretionary trading authority with respect to the CX Participant’s Trading 

Account. A CX Participant that authorizes a third party to trade for its Trading Account on a 

discretionary basis pursuant to a power of attorney or other instrument must identify a specific 

natural person as its Responsible Trading Agent with respect to such Trading Account.

(a) Each Responsible Trading Agent that is an employee of a CX Participant that is an 

Entity and any CX Participant that is a natural person acting as their own Responsible Trading 

Agent pursuant to paragraph (a) above (i) may trade only for one CX Participant, and (ii) must 

satisfy any other requirements as may be prescribed by the Exchange from time to time. Each 

Responsible Trading Agent that is an employee of a third party with discretionary trading authority 

with respect to the Participant’s Trading Account (i) must be a natural person, (ii) may have 

Trading Privileges with respect to the Trading Accounts of more than one Participant, and as 

applicable, (iii) must allocate contracts executed for such multiple accounts in a fair and equitable 

manner so that no account or group of accounts consistently receives favorable or unfavorable 

treatment over time, and (iv) must satisfy any other requirements as may be prescribed by the 

Exchange from time to time. Each CX Participant may at any time revoke its authorization to its 

Responsible Trading Agent by providing written notice of such revocation to the Exchange. A 

Participant shall take immediate measures appropriate to ensure that, after such revocation, (i) the 

affected Responsible Trading Agent shall not have access to the Exchange Trading System or (ii) 

the affected Responsible Trading Agent shall not utilize its User ID, and the Exchange shall act 

promptly, but in any event within one Business Day of receiving notice from the Participant, to 

disallow Order entry by any such Person.

(c) Without limiting the foregoing, each Responsible Trading Agent will consent, in a 

form satisfactory to the Exchange, to abide by the Rules of the Exchange and Applicable Law prior 

to accessing the Exchange Trading System, and each Participant will ensure on an ongoing basis 

that (i) none of its Responsible Trading Agents is subject to a disqualification pursuant to any 

Applicable Law (unless an appropriate exemption has been obtained with respect thereto), (ii) each 

of its Responsible Trading Agents will be technically proficient, (iii) each of its Responsible 

Trading Agents will conduct its business in a fair and equitable manner, and (iv) each of its 

Responsible Trading Agents will conduct its business in accordance with the Rules of the 

Exchange.

(d) All obligations of Participants under these Rules shall also apply to each of their 

Responsible Trading Agents, and other personnel, and each Participant shall be responsible for the 

actions and omissions of each of its Responsible Trading Agents and other personnel. Each 
Participant will ensure on an ongoing basis that none of its Responsible Trading Agents is subject 

to a disqualification pursuant to any Applicable Law (unless an appropriate exemption has been 

obtained with respect thereto) and that each of its Responsible Trading Agents (as applicable will 

be technically proficient in respect of the use of the Exchange Trading System. Each Participant 

shall have procedures for performing day-to-day monitoring of its Responsible Trading Agents to 

ensure that each will conduct its business in a fair and equitable manner and in accordance with 

the Rules of the Exchange.

XXI-3 CX Trading Privileges

(a) For purposes of these Rules, any reference to (i) the Trading Privileges of a CX 

Participant shall also be deemed to refer and apply to the exercise of CX Trading Privileges by any 

of such Participant’s Responsible Trading Agents (ii) a CX Participant submitting or receiving 

orders, bids, offers or Message Traffic into or from the Exchange Trading System or engaging in 

transactions on the CX Division shall be deemed also to refer and apply to any such actions 

engaged in by any of such Participant’s Responsible Trading Agents and (iii) the knowledge of, 

or matters known to, any Participant shall be deemed also to refer to and include the knowledge 

of, or matters known to, its Responsible Trading Agents and other personnel.

(b) Each Responsible Trading Agent shall be deemed to be a “member” of the 

Exchange for all purposes under the CEA.

XXI-4 Eligibility

(a) A CX Participant initially and on a continuing basis, thereafter, is eligible to hold 

either long or short positions in CX Division Contracts only for their proprietary CX Trading 

Accounts. In addition, CX Participants must: (i) satisfy all requirements generally applicable to 

CX Participants and Responsible Trading Agents under these Rules and any applicable CX 

Contract Rules; (ii) satisfy such financial criteria as may be prescribed by the Exchange from time 

to time; (iii) have sufficient technical and operational capabilities to fulfill any other obligations 

applicable to CX Participants, or their Responsible Trading Agents as may from time to time be 

required by the Exchange; and (iv) satisfy such other requirements or criteria as may from time to 

time be adopted by the Exchange.

(b) The Exchange shall have the right to establish more than one class of CX 

Participants, which shall include Referring Participants as a separate class, in connection with the 

trading of particular CX Division Contracts, and which shall include Floor Traders as a separate 

class, in connection with the trading of all CX Division Contracts, subject to and in accordance 

with the applicable Exchange Rules., (ii)

(i) All Rules that apply to Participants also apply 

to Referring Participants except where the context requires 

otherwise. All rules that apply to Referring Participants shall 

only apply to such Persons.

(ii) All Rules that apply to Participants also apply 

to Floor Trader Participants. A Floor Trader Participant shall 
have the same obligations, responsibilities, and rights as a 

Participant.

(c) Each applicant to become a CX Participant that is a natural person must: (A) have 

a mechanism that is acceptable for transferring funds to and receiving funds from the applicant’s 

CX Clearing Account, (B) have attained the age of majority in the individual’s place of residence, 

(C) appoint one or more Responsible Trading Agents pursuant to Rule XXI-2, and (D) satisfy such 

other requirements or criteria as may from time to time be adopted by the Exchange.

(d) Each applicant to become a CX Participant that is an Entity must: (A) be duly 

organized and in good standing in its jurisdiction of organization, (B) have a mechanism that is 

acceptable for transferring funds to and receiving funds from the applicant’s Clearing Account, 

(C) have the legal authority and be duly authorized and empowered to become a Participant and 

to effect transactions on the Exchange, (D) appoint one or more Responsible Trading Agents 

pursuant to Rule XXI-2, and (E) satisfy such other requirements or criteria as may from time to 

time be adopted by the Exchange.

(e) Notwithstanding anything in the foregoing paragraphs (c) or (d) to the contrary: 

(i) In considering any applicant for status as a 

CX Participant, Responsible Trading Agent, or Referring 

Participant, the Exchange may request additional information, 

or employ such other means that it deems desirable or 

appropriate, to ascertain relevant facts bearing on the 

applicant’s qualifications; and

(ii) The Exchange may limit a Participant to 

trading specified CX Contract(s) based upon financial, 

regulatory or other criteria established by the Exchange, or the 

Exchange may limit a Referring Participant to acting in the 

capacity of Referring Participant for specific Contracts based 

upon regulatory or other criteria established by the Exchange.

(f) The Exchange in its sole discretion may deny (or may condition) the grant of CX 

Trading Privileges to any CX Participant or any Responsible Trading Agent of any CX Participant.

(i) If such Person is unable satisfactorily to 

demonstrate a capacity to adhere to all applicable Rules of the 

Exchange, Rules of the CX Clearinghouse and CFTC 

Regulations, including, to the extent applicable, those 

concerning record-keeping, reporting, finance and trading 

procedures;

(ii) if such Person would bring the Exchange into 

disrepute; or 

(iii) for such other causes as the Exchange may 

determine from time to time.
(g) The Exchange in its sole discretion may condition or revoke a CX Participant’s CX 

Trading Privileges or, in the case of an Responsible Trading Agent, condition or revoke its 

association with a Participant or its access rights, respectively, if any of the circumstances specified 

in the preceding paragraph () exist with respect to such CX Participant, or Responsible Trading 

Agent, or if such CX Participant or Responsible Trading Agent:

(i) fails to meet any of the qualification 

requirements for CX Trading Privileges or association after 

such CX Trading Privileges or association have been 

approved;

(ii) fails to meet any condition placed by the 

Exchange on such CX Trading Privileges, or association; or 

(iii) violates any agreement with, or Rule of, the 

Exchange.

(h) Futures commission merchants or other intermediaries shall not be permitted to 

submit trades on the CX Division for execution on behalf of customers.

(i) No Participant may refer or solicit another Person to become a CX Participant or to 

solicit another CX Participant to enter an Order on the Exchange, including providing related 

software, technical or other associated services except in accordance with the provisions of Rule 

XXI-6.

XXI-5 Application for CX Trading Privileges

(a) Each application to become a CX Participant shall be in such form as may from 

time to time be prescribed by the Exchange. Each applicant to become a CX Participant shall 

promptly update the application materials if any of the information provided therein becomes 

inaccurate or incomplete. The Exchange shall act upon, and approve or disapprove, any such 

application without unreasonable delay.

(b) First Listing Day and Termination of Trading Each applicant to become a 

CX Participant shall:

(i) The First Listing Day for the ANSLS “A” contract shall be the first 

Monday in January that is also a Business Day of each calendar year, 

unless otherwise posted on the Exchange website. 

(ii) The First Listing Day for subsequent contracts in the sequence 

“B”, “C”, “D”, et al will occur at 10:00 AM ET on the Trading Day following 

the NHC’s naming of the immediately preceding storm in the sequence. 

No new contracts will be listed after November 30

th of the calendar year. 

For example, when NHC announces that the “J” storm has formed, the 

Exchange shall list a contract on the “K” storm at 10:00 AM ET on the 

following Trading Day, except if the following Trading Day is after 

November 30th.
(i) submit to the Exchange executed forms of all 

application documents;

(ii) pay to the Exchange such initial fee as may 

be prescribed by the Exchange from time to time; and 

(iii) agree in written or electronic form to abide by 

these Rules and Applicable Law.

(c) Upon the Exchange’s approval of an applicant’s CX Participant application and 

upon the Exchange’s confirmation that the initial fee payable by the applicant has been paid to the 

Exchange, the applicant shall become a CX Participant and as a CX Participant obtain CX Trading 

Privileges applicable to CX Division.

(d) Any Person who has been denied CX Trading Privileges or granted only conditional 

CX Trading Privileges pursuant to this Rule XXI-5, and any Person who is not permitted to keep 

its CX Trading Privileges or whose CX Trading Privileges are conditioned pursuant to this Rule 

XXI-5, may appeal the Exchange’s decision in accordance with the provisions of Chapter XIV 

relating to disciplinary proceeding appeals.

XXI-6 Referral and Solicitation of Participants and Orders

(a) Notwithstanding anything to the contrary in these Rules, a CX Participant may refer 

or solicit another Person to become a CX Referred Participant or may solicit a CX Referred 

Participant’s Orders, and may provide software, technical or other associated services, upon being 

notified by the Exchange under the procedures specified in paragraph (b) that the CX Referring 

Participant satisfies, and remains in compliance with, the following conditions and is being 

permitted by the Exchange to act in the capacity of CX Referring Participant. The CX Referring 

Participant must:

(i) be a CX Participant in good standing with the 

Exchange;

(ii) if applicable, be registered with the National 

Futures Association in an appropriate registration category, or 

be exempt from such registration;

(iii) submit to the Exchange such additional forms 

and agreements as the Exchange shall require and promptly 

update any information provided therein that becomes 

inaccurate or incomplete;

(iv) maintain an amount of funds on deposit (the 

level of such amount(s) to be determined by the Exchange in 

the Exchange’s sole discretion) for as long as the person 

remains a CX Referring Participant of the Exchange. Such 

amount, minus any financial obligations payable to the 

Exchange, shall be returned to the CX Referring Participant 
upon the CX Referring Participant’s withdrawal from the 

Exchange or revocation of such Person’s status as a CX 

Referring Participant; provided however, that in establishing 

the level of such deposits, the Exchange may implement a 

tiered structure with the level of deposit corresponding to a 

particular category of CX Participant;

(v) provide a means acceptable to the Exchange 

of identifying to the Exchange those CX Participants which it 

refers or solicits, and the referred CX Participant’s 

acknowledgment that it has been referred;

(vi) demonstrate sufficient technical and 

operational capabilities to meet Exchange technical 

specifications and requirements as specified by the Exchange 

from time to time;

(vii) solicit or refer Persons to become a CX 

Participant or solicit their Orders to the Exchange via:

(A) electronic media of the CX Referring Participant approved 

by the Exchange;

(B) electronic media made available to the Referring Participant 

by the Exchange; or

(C) such other method as the Exchange may accept from time to 

time;

(viii) satisfy such other requirements or criteria as 

may from time to time be adopted by the Exchange under these 

Rules.

(ix) For the avoidance of doubt, a CX Referring 

Participant shall not enter Orders into the Exchange Trading 

System on behalf of a CX Referred Participant as the 

Responsible Trading Agent of a CX Referred Participant or in 

any other capacity.

(b) Following a request by a CX Participant for a determination by the Exchange that 

the CX Participant meets the conditions of paragraph (a) to act as a CX Referring Participant, the 

Exchange shall notify such CX Participant without unreasonable delay whether such CX 

Participant is permitted by the Exchange to refer or solicit CX Participants or their Orders. 

Provided, however, the Exchange may limit its permission to particular CX Division Contract(s).

(c) The Exchange in its sole discretion may deny, condition or revoke its permission 

to a CX Referring Participant to act as a CX Referring Participant. Any such action may be 

appealed by the CX Referring Participant in accordance with the procedures under the provisions 
of Chapter XIV, provided, however, that such sanction shall continue in effect during the appeal. 

The Exchange may take such action to deny, condition or revoke its permission, if:

(i) upon request, the CX Referring Participant is 

unable satisfactorily to demonstrate a capacity to adhere to all 

applicable Rules of the Exchange, Rules of the CX 

Clearinghouse, CFTC Regulations and Applicable Law;

(ii) at any time the CX Referring Participant fails 

to meet any of the conditions in paragraph (a);

(iii) the CX Referring Participant fails to meet any 

limitation placed by the Exchange on its permission to the CX 

Referring Participant under paragraph (b);

(iv) the CX Referring Participant violates any 

agreement with the Exchange;

(v) the actions or activities of the CX Referring 

Participant would bring the Exchange into disrepute;

(vi) in the discretion of the Exchange, such action 

is in the best interests of the Exchange or for such other causes 

as the Exchange may determine from time to time.

(d) Upon granting permission to a CX Referring Participant to act in that capacity, the 

Exchange shall record the referral relationship between a CX Participant and the CX Referring 

Participant in its account records and shall make available daily reports and information about the 

referred account activity in such form and manner as the Exchange shall from time to time 

determine. The Exchange shall disclose to CX Referred Participants whether it makes payments 

for referrals to Referring Participants.

CHAPTER XXII

CX DIVISION TRADING STANDARDS

XXII-1 CX Division Contracts

(a) The Exchange shall determine which CX Division Contracts are available for 

trading from time to time and, subject to the provisions of Rule XXIV-1, approve rules containing 

the specifications for such CX Division Contracts, provided that certifications or applications with 

respect to such CX Division Contracts shall be submitted to the CFTC as required by the CEA and 

CFTC Regulations.

(b) CX Division Contracts shall be traded by a CX Participant only for its own account 

and be self-cleared though CX Clearinghouse.
XXII-2 CX Division Trading Days and Trading Hours

Trading Hours shall begin immediately upon listing and be available 

continuously until the Termination of Trading except that the Exchange 

may permit modifications to these Trading Days and Trading Hours for the 

purposes of (A) scheduled technology maintenance, (B) abbreviated 

holiday trading schedules, and (C) as required by market or environmental 

considerations. All such changes shall be posted on the Exchange website.

(a) The Exchange shall from time to time determine (a) the Trading Days during any 

particular calendar year and (b) the Trading Hours with respect to any particular CX Division 

Contract. All time references shall be based on local time prevailing in The City of New York, 

New York, unless otherwise expressly set forth in the relevant CX Division Contract Rules. 

Opening times start on the first second of the minute cited. Closing times end on the first second 

of the minute cited. Trading Hours may vary among different CX Division Contracts. No CX 

Participant may make any bid or offer for, or engage in any transaction in, any CX Division 

Contract before or after such hours.

(b) Trading will be suspended during periods the Exchange schedules for routine 

maintenance and during any announced periods of non-routine maintenance. In the event that 

trading is suspended either for routine or non-routine maintenance, notice will be given to CX 

Participants as promptly as practicable both by posting of a notice on the Exchange’s website and 

by e-mail directly to each Participant.

(c) The Exchange may from time to time adopt procedures for the opening or closing 

of trading in any CX Division Contract. The Control Desk will be staffed and operate at all times 

during the Trading Hours of any CX Division Contract. No Person may make any bid or offer for, 

or engage in any transaction in, any CX Division Contract before or after such hours.

XXII-3 Opening and Closing Trading in CX Division Contracts

The Exchange may from time to time adopt procedures for the opening or closing of trading 

in any CX Division Contract which shall be incorporated into the operation of the Exchange 

Trading System.

XXII-4 CX Division Contract Order Entry

The Responsible Trading Agents of each CX Participant shall enter orders by electronic 

transmission to and shall be required to provide the information required by the Exchange Trading 

System for entry of an order to buy or sell such CX Division Contract. The Exchange shall maintain 

an electronic record of those entries. Each CX Participant shall be responsible for any and all 

orders in each of its Trading Accounts to be entered by any of its Responsible Trading Agents.

XXII-5 Acceptable CX Division Contract Orders

The order type or types available on the Exchange Trading System for any CX Division 

Contract is at the discretion of the Exchange from among the Available Order Types supported by 

the Exchange Trading System for CX Division Contracts.
XXII-6 Information Regarding CX Contract Orders

(a) The Exchange may make information regarding Orders (including prices bid or 

offered), and any other matters it may deem appropriate, available to Participants, and their 

Responsible Trading Agents and other Persons at such times and in such manner (whether through 

the Exchange Trading System, a ticker, financial information services or otherwise) as it may 

consider necessary or advisable from time to time.

(b) Each Participant, Responsible Trading Agent or other Person receiving any such 

information through the Exchange Trading System is expressly prohibited from redistributing such 

information unless expressly permitted by the Exchange. Employees and agents of the Exchange 

shall have access to the offices of any Participant and each of its Responsible Trading Agents or 

other Persons with receiving information through the Exchange Trading System during regular 

business hours in order to observe the compliance by such persons with this Rule XXII-6.

XXII-7 Permissible Pre-Execution Discussions On CX Division

(a) Responsible Trading Agents seeking to execute a pre-negotiated transaction must 

wait for a reasonable period of time, which shall be presumed to be not less than 15 seconds after 

the initial Order is submitted to the Exchange Trading System, before submitting the opposite side 

Order.

(b) Except in the case of transactions effected pursuant to this Rule XXII-7, no 

Responsible Trading Agents shall enter through the Exchange Trading System into a pre-discussed 

or pre-arranged transaction.

XXII-8 Errors, Trade Cancellation and Price Adjustments of CX Division 

Contracts

(a) If an Order for a CX Division Contract was incorrectly executed or rejected by the 

Exchange Trading System, a Participant or its Responsible Trading Agent may, within ten (10) 

minutes thereafter, request review of the Order by providing the confirmation number for the Order 

and stating the grounds for the disagreement.

(b) Upon receipt by the Exchange of a request for review of an Order for a CX Division 

Contract and the accompanying confirmation number, the Exchange will review its electronic audit 

trail to determine if the Exchange Trading System correctly interpreted and executed the Order. 

Such review will be completed (i) on the same Business Day if the Exchange received such request 

for review prior to 12:00 Noon on any Business Day or (ii) by the end of the following Business 

Day if such request was received (x) on or after 12:00 Noon on any Business Day or (y) on any 

day that is not a Business Day.

(c) If the review described in Rule XXII-8(b) reveals that the Order was incorrectly 

handled, then the Order in question shall be cancelled in the Trading Accounts of all affected 

Participants.

(d) If the review described in Rule XXII-8(b) reveals that the Order was correctly 

handled, then no adjustment shall be made in the Trading Accounts of any Participants.
(e) Notwithstanding anything to the contrary in this Rule XXII-8, if the Exchange 

determines in its sole discretion that the execution of any trade was the result of Orders being 

incorrectly processed by the Exchange Trading System, or any other cause beyond the control of 

any CX Participant, then the Exchange may cancel such trade in the Trading Accounts of all 

affected Participants.

XXII-9 Investment of Certain CX Participant Account Funds

CX Participant funds on deposit with the Exchange and funds in the Trading Accounts of 

such CX Participants (i.e., the account containing the funds paid by CX Participants to purchase 

or sell CX Division Contracts and which are to be used to pay CX Participants at expiration of CX 

Division Contracts) will be segregated in accordance with the CFTC’s Regulations. The Exchange 

may invest such funds subject to the limitations and conditions set forth in CFTC Regulation 1.25. 

The Exchange will pay interest to CX Participants’ Trading Accounts at a rate to be determined 

by the Exchange on funds in CX Participants’ Trading Accounts in excess of an amount to be 

determined by the Exchange. The Exchange will retain all profit from investment of the Participant 

funds not paid to Participants in accordance with the preceding sentence.

XXII-10 Financial Requirements for Order Entry and Executions on the CX 

Division

(a) Participants are required to have sufficient funds on deposit with the CX 

Clearinghouse such that any executed Orders for CX Division Contracts will “PASS” the credit 

check as described in Rule XXII-10(h).

(b) To facilitate compliance with Rule XXII-10(a), the Exchange shall establish a 

maximum CX Contract Order size for each Trading Account of each Participant based upon the 

Participant’s Available Funds, the size of the Participant’s Participant CX Clearing Account, the 

Participant’s trading behavior, and any other factors that the Exchange deems relevant.

(c) To facilitate compliance with Rule XXII-10(a) the Exchange, in its sole discretion 

and from its own funds, may advance funds for immediate use to a Participant’s CX Clearing 

Account provided that:

(i) [Reserved]Such Participant has Trading 

Privileges,

(ii) Valid Strike Codessuch Participant has 

submitted a bona-fide Funds Deposit Request,

The valid Strike Codes for ANSLS Contracts are all those listed in Appendix 

A which is available at CXMarkets.com.

Minimum Price Increment 

The minimum trading increment of each ANSLS Contract is one cent 

($0.01). 
Position Accountability Levels 

The position accountability level shall be 10,000 contracts net short or net long each 

ANSLS Contract Strike Code. 

Original Margin Requirements 

Original Margin shall be sufficient to cover the maximum possible loss a 

Participant could incur upon liquidation or expiration of a contract.

(iii) such Funds Deposit Request is being 

processed in the normal course of banking transactions by the 

CX Clearinghouse, and

(iv) such amount shall not exceed the lesser of the 

Funds Deposit Request or $1,000.

(d) Notwithstanding the provisions of paragraph (c) of this Rule, in the event that any 

Funds Deposit Request has not cleared the Participant’s issuing bank or the funds are otherwise 

deemed as non-collectable by the CX Clearinghouse then such Participant shall be subject to a 

summary fine not to exceed $2,500 for each such Funds Deposit Request.

(e) Nothing hereinabove shall be deemed a limitation or waiver of the CX 

Clearinghouse’s rights to enforce its own rules respecting the collection of Original Margin (as 

defined in the rules of the Clearinghouse).

(f) The Exchange shall review the maximum Order size for each Trading Account 

within fifteen (15) days of the end of each calendar quarter and at any other time at which the 

Participant deposits funds or withdraws funds from the Participant’s Participant CX Clearing 

Account. The maximum Order size for any Trading Account may be revised by the Exchange at 

any of the foregoing times, or at any time that the Exchange determines it necessary to make any 

such revision based on market conditions, a Participant’s trading activity or other reasons as the 

Exchange deems appropriate.

(g) Notwithstanding the imposition of the limits described in Rule XXII-4(b) and Rule 

XXII-4(c), the Participant shall remain solely responsible for compliance with the Rules of the 

Exchange and the Rules of the CX Clearinghouse.

(h) When a bid or offer for a CX Division Contract is entered into the Exchange 

Trading System such that a trade would execute (each such occurrence, a “Matched Trade”), the 

CX Clearinghouse shall undertake an immediate credit check prior to such Matched Trade being 

confirmed to any of the purchaser, the seller or the CX Clearinghouse. The credit check procedures 

shall be as follows:

(i) For liquidating Orders, or any portion of a 

Matched Trade that represents a liquidating quantity, the credit 

check shall “PASS”.
(ii) For the establishment of new positions or an 

increase in size of existing positions, or any portion of a 

liquidating trade that would create a new position or add to an 

existing position, the credit check shall PASS if and only if the 

funds immediately available in the applicable CX Participant 

Clearing Account are greater than or equal to the Original 

Margin required to establish the new position or increase an 

existing position.

(iii) The credit check will “FAIL” if the funds 

immediately available in the applicable CX Participant 

Clearing Account are less than the Original Margin required 

to establish the new position or increase an existing position. 

In such case, the size of the Matched Trade shall be reduced 

such that the minimum quantity of Contracts that would PASS 

the credit check, if any, based on the level of Original Margin 

in the applicable CX Participant Clearing Account, will be 

matched. Any remaining portion of the purchaser’s or seller’s 

Order that would have passed the credit check had the 

purchaser or seller’s Order originally been limited to such 

amount shall be restored with its original price and time 

priority to the order book and any remaining portion of the 

purchaser’s or seller’s Order that failed the credit check shall 

be cancelled.

(i) If a standing Limit Order “FAILS”, as described in Rule XXII-4(a), then the 

Exchange will notify the CX Participant of such event via email.

XXII-11 Reportable Positions

(a) The Exchange shall meet the requirements of paragraphs (a) through (h) of CFTC 

Regulation 17.00 as they apply to trading on the CX Division with respect to contracts that qualify 

as “exclusively self-cleared contracts” within the meaning of CFTC Regulation 15.00.

CHAPTER XXIIICHAPTER X 
CLEARING OF CX DIVISION CONTRACTS

XXIII-1 X-1. Rules of the CX Clearinghouse

The clearing services provided by the CX Clearinghouse with respect to any ContractCX 

Division Contracts, and the rights and obligations of purchasers and sellers under cleared Contracts 

(including, without limitation, rights and obligations in respect of clearing and settlement, variation 

margin payments and performance at maturity, and in the case of Options on Futures, upon 

exercise thereof), shall be governed by the Rules of the CX Clearinghouse.

XXIII-2 Clearing Services

The Exchange may discontinue the clearance of CX Division Contracts through CX 

Clearinghouse and select and substitute another derivatives clearing organization that has been 

approved by the CFTC to clear CX Division Contracts. 

XXIII-3 Transfer of Open Positions to Clearinghouse

Each CX Participant shall comply in all respects with any statement of policy or other 

notice issued by the Exchange relating to the procedures and processes that must be followed to 

effectuate the transfer of open positions to any clearinghouse.

XXIII-4 Substitution

Where a CX Contract is cleared through the CX Clearinghouse, the CX Clearinghouse 

shall be deemed substituted as seller to the buyer and shall also be deemed substituted as buyer to 

the seller, and thereupon the CX Clearinghouse shall have all of the rights and be subject to all of 

the liabilities of the original parties with respect to such contract.

XXIII-5 Offsets

Where a CX Participant buys and sells the same CX Contract for the same delivery, the 

purchases and sales shall be offset to the extent of their equality, as provided for by the Rules of 

the CX Clearinghouse.

CHAPTER XXIV

CX DIVISION CONTRACTS

XXIV-1 Contract Specifications

The terms and conditions of the existing CX Division Contracts are unchanged (save for 

renumbering) and are published on the website as follows:

• IX-3003. ATLANTIC NAMED STORM LANDFALL (“ANSLS”) SWAPS

o https://www.cxmarkets.com/wp-content/uploads/2019/05/CX-ANSLSContract-Rules.pdf

CHAPTER XXVCHAPTER XI 

CX DIVISION INCENTIVE PROGRAMS

XXV-1XI-1. . 2023 Automated Liquidity Provider (ALP) Program

(a) a) This incentive program provides the initial liquidity for the Atlantic Named 

Storm Landfall Swaps contracts for the 2023 tropical storm season.

(b) b) No direct payments to Participants will be made under this program.

(c) c) The Exchange, using its own funds, will allocate an amount not to exceed 

$25,000 for this program and such funds will be placed in a CX Participant Clearing Account for 

this purpose.

(d) d) Using funds allocated for this program, the exchange will purchase 300 contracts 

at 13 different locations upon the listing of each named storm contract, provided that:

(i) i. the named storm is listed on or after June 1, 2023;

(ii) ii. at the time of listing, the purchase price of contracts is $1.00; and

(iii) iii. the CX Participant Clearing Account has at least $3,900 of 

available funds to cover such purchases.

(e) e) Contracts will be purchased at the zip codes closest to the 13 landfall locations 

of tropical storms during the 2021 and 2022 tropical storm seasons. The locations are attached 

here as Schedule A.

(f) f) Once purchased, contracts will be retained by the Exchange in a designated 

Participant Account for this program. Accordingly, all such contract purchases will be reported 

as volume and open interest in the normal course.

(g) g) Contracts purchased will be held until settlement at the original strike code 

locations. This Participant Account will not engage in strike code switching, as permitted by 

contract rules.

(h) h) Contracts will be settled in the normal course for each named storm. Any 

proceeds from settlements will be returned to the Exchange’s Participant Clearing Account in the 

normal course and, therefore, may continue to be used for the program.

(i) i) At the end of the 2023 tropical storm season, the Exchange will close its 

account(s) and withdraw any remaining funds.

(j) j) This program shall be in effect for the 2023 tropical storm season and may be 

terminated at any time by the Exchange in its absolute discretion upon three (3) days’ notice to 

Participants.

Initial effective date: June 1, 2023

Schedule A

2021 Landfall Locations

• 29.2N 91.0W

• 32.3N 80.5W

• 29.8N 83.5W

• 40.9N 72.3W

• 41.4N 71.7W

• 29.7N 89.4W

• 41.2N 71.6W

• 29.1N 90.2W

• 29.7N 85.1W

• 28.7N 95.7W

2022 Landfall Locations 

• 26.7N 82.2W

• 33.3N 79.2W

• 27.6N 80.4W