Information Classification: General

January 28, 2022

BY ELECTRONIC SUBMISSION

Christopher J. Kirkpatrick

Office of the Secretariat

U.S. Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: SwapEx CFTC Submission 01-22: Certification Pursuant to Commission Rule 40.6 –

Rule Amendments

Dear Mr. Kirkpatrick:

Pursuant to Section 5c(c) of the Commodity Exchange Act (the “Act”) and Section 40.6(a) of the

regulations of the Commodity Futures Trading Commission (the “CFTC” or “Commission”), 

SwapEx, LLC (“SwapEx”, or the “Company”) hereby notifies the Commission that it has 

amended its Rulebook and that it is certifying those amendments. The Rulebook has been 

amended to align the rules to the guidance in relation to Core Principle 15 of section 5(d) of the 

CEA: Governance Fitness Standards set forth in Appendix B to the Part 38 of the CEA. The 

amended Rulebook will become effective on February 14, 2022.

A concise explanation of the amendments to the Rulebook and their compliance with applicable 

provisions of the Act, including core principles and the Commission’s regulations, is attached 

hereto as Exhibit A. A clean copy of the amended Rulesis attached hereto as Exhibit B, and a copy 

of the Rules marked to show changes against the version submitted to the Commission as part of 

the Rule certification on June 30, 2021, is attached hereto as Exhibit C. SwapEx hereby certifies 

that: (i) the amended Rulebook complies with the Act and the Commission’s regulations 

thereunder, and (ii) a notice and copy of this submission is being concurrently posted on SwapEx’s

web site. There were no substantive opposing views to the amendments to the Rulebook.

If you have questions, please contact the undersigned at (212) 259-3126 or

KAAluise@statestreet.com.

Sincerely,

Karen A. ALuise

Karen A. Aluise

Chief Compliance Officer

Encl. (Exhibits A, B and C)
Information Classification: General

A-1

Exhibit A

Explanation of Amendments to SwapEx Rulebook

Capitalized terms used but not defined herein have the meanings assigned to them in the 

Rulebook.

Amendment Explanation

Rule 101

Deleted definition of “Independent Director”

Amened definition of “Public Director”

Amendments made to align 

definition of “Public 

Director” to the guidance in 

relation to Core Principle 15 

of section 5(d) of the 

Commodity Exchange Act 

(the “CEA”): Governance 

Fitness Standards set forth in 

Appendix B to the Part 38 of 

the CEA

Rule 201(d)

Added rule defining requirements of a “Public Director”. 

Rule added to align 

definition of “Public 

Director” to the guidance in 

relation to Core Principle 15 

of section 5(d) of the CEA: 

Governance Fitness 

Standards set forth in 

Appendix B to the Part 38 of 

the CEA

Rule 204(b)

Amended the rule to change the Regulatory Oversight Committee 

composition requirement to require that all members be Public 

Directors

Rule amended to align the 

Regulatory Oversight 

Committee composition 

requirement to align with the 

guidance in relation to Core 

Principle 15 of section 5(d) 

of the CEA: Governance 

Fitness Standards set forth in 

Appendix B to the Part 38 of 

the CEA 
Exhibit B 

Rulebook (clean) 

[see attached]
Revised January 28, 2022

SWAPEX, LLC

RULEBOOK

FEBRUARY 14 , 2022

Information Classification: General

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TABLE OF CONTENTS

CHAPTER 1. DEFINITIONS ........................................................................................................ 1

Rule 101. General.................................................................................................................1

Rule 102. Rules of Construction ..........................................................................................9

CHAPTER 2. GOVERNANCE.................................................................................................... 10

Rule 201. Board..................................................................................................................10

Rule 202. Officers ..............................................................................................................11

Rule 203. Qualifications of Directors, Officers, Committee Members, Disciplinary 

Panel Members and Appeal Panel Members.....................................................11

Rule 204. Standing Committees.........................................................................................12

Rule 205. Additional Committees......................................................................................13

Rule 206. Conflicts of Interest............................................................................................13

Rule 207. Maintenance of Books and Records by the Company; Provision of 

Information to the CFTC...................................................................................15

CHAPTER 3. TRADING SYSTEM............................................................................................. 16

Rule 301. Access to the Trading System............................................................................16

Rule 302. Participant Eligibility Requirements..................................................................16

Rule 303. Participant Application Procedure .....................................................................17

Rule 304. Authorized Traders ............................................................................................19

Rule 305. Authorized Users ...............................................................................................20

Rule 306. Independent Software Vendors..........................................................................21

Rule 307. Limitations on Access to the Trading System ...................................................21

Rule 308. Notices and Other Communications..................................................................22

Rule 309. Designated Representatives...............................................................................22

Rule 310. Application of Rules; Jurisdiction of the Company...........................................23

Rule 311. Withdrawal of Participant..................................................................................23

Rule 312. Dues, Assessments and Fees..............................................................................24

CHAPTER 4. BUSINESS CONDUCT........................................................................................ 25

Rule 401. Duties and Responsibilities of Participants and Authorized Traders.................25

Rule 402. Required Notices................................................................................................26

Rule 403. Inspections by the Company..............................................................................27

Rule 404. Financial and Related Reporting Requirements ................................................27

Rule 405. Restrictions on Activity .....................................................................................27

Rule 406. Customers ..........................................................................................................28

Rule 407. Publication of Trade Information.......................................................................29

Rule 408. Disaster Recovery; Business Continuity............................................................29

Rule 409. Anti-Money Laundering Obligations.................................................................29
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CHAPTER 5. TRADING PRACTICES....................................................................................... 30

Rule 501. Scope..................................................................................................................30

Rule 502. Rule Violations ..................................................................................................30

Rule 503. Just and Equitable Principles of Trade; Acts Detrimental.................................30

Rule 504. Fraudulent Acts Prohibited ................................................................................30

Rule 505. Fictitious or Noncompetitive Transactions Prohibited ......................................30

Rule 506. Market Manipulation Prohibited........................................................................30

Rule 507. Disruptive Trading Practices Prohibited............................................................31

Rule 508. Prohibition of Misstatements.............................................................................31

Rule 509. Misuse of the Trading System ...........................................................................31

Rule 510. Financial or Other Incentive Programs..............................................................31

Rule 511. Withholding of Customer Orders Prohibited; Priority of Customer Orders......31

Rule 512. Handling of Customer Orders............................................................................32

Rule 513. Disclosing Orders and Requests for Quotes Prohibited; Post-Trade 

Anonymity.........................................................................................................33

Rule 514. Wash Sales Prohibited .......................................................................................33

Rule 515. “Moneypassing,” Prearranged, Pre-Negotiated and Noncompetitive 

Transactions Prohibited.....................................................................................33

Rule 516. Responsibility for Customer Orders ..................................................................34

Rule 517. Discretionary Customer Orders .........................................................................34

Rule 518. Recordkeeping; Audit Trail ...............................................................................34

Rule 519. Position Accountability......................................................................................36

Rule 520. Position Limits...................................................................................................36

Rule 521. Position Information ..........................................................................................36

Rule 522. Aggregation of Positions....................................................................................36

Rule 523. Position Limits and Position Accountability Levels..........................................37

Rule 524. Operation of the Trading System.......................................................................37

Rule 525. Confirmation of Transactions............................................................................39

Rule 526. Trade Cancellations, Error Correction and Price Adjustments..........................40

Rule 527. Limitation of Liability; No Warranties..............................................................49

Rule 528. Swap Data Reporting .........................................................................................51

Rule 529. Updating Reportable Swap Data........................................................................53

CHAPTER 6. BLOCK TRADES ................................................................................................. 54

Rule 601. Block Trades......................................................................................................54

Rule 602. Time-Stamp Requirements for Block Trades....................................................55

CHAPTER 7. DISCIPLINARY RULES...................................................................................... 56

Rule 701. General...............................................................................................................56

Rule 702. Inquiries and Investigation.................................................................................57

Rule 703. Reports of Investigations ...................................................................................58

Rule 704. Opportunity to Respond.....................................................................................59

Rule 705. Review of Investigation Reports........................................................................59

Rule 706. Notice of Charges ..............................................................................................60

Rule 707. Service of Notice................................................................................................61
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Rule 708. Answer to Notice of Charges.............................................................................61

Rule 709. Settlements.........................................................................................................62

Rule 710. Disciplinary Panel..............................................................................................63

Rule 711. Respondent’s Review of Evidence ....................................................................64

Rule 712. Hearings.............................................................................................................65

Rule 713. Decision of Hearing Panel .................................................................................66

Rule 714. Sanctions............................................................................................................67

Rule 715. Appeal from Hearing Panel Decisions and Summary Actions (Other than 

Summary Impositions of Fines) ........................................................................68

Rule 716. Summary Imposition of Fines............................................................................70

Rule 717. Summary Suspensions and Other Summary Actions ........................................71

Rule 718. Rights and Responsibilities After Suspension or Termination ..........................72

Rule 719. Notice of Disciplinary Proceedings...................................................................72

Rule 720. Regulatory Services Provider ............................................................................72

CHAPTER 8. ARBITRATION RULES ...................................................................................... 74

Rule 801. General...............................................................................................................74

Rule 802. Forum and Arbitration Rules.............................................................................74

Rule 803. Initiating an Arbitration Claim...........................................................................74

Rule 804. Claims Relating to Trade Cancellations or Price Adjustments..........................74

Rule 805. Penalties.............................................................................................................74

CHAPTER 9. MISCELLANEOUS.............................................................................................. 76

Rule 901. Contract Specifications......................................................................................76

Rule 902. Legal Certainty...................................................................................................76

Rule 903. Trading by Company Officials Prohibited; Misuse of Material, NonPublic Information.............................................................................................76

Rule 904. Proprietary Information; Use of Market Data....................................................77

Rule 905. Confidentiality ...................................................................................................79

Rule 906. Recording of Communications..........................................................................80

Rule 907. Information-Sharing Agreements ......................................................................80

Rule 908. Force Majeure ....................................................................................................81

Rule 909. Extension or Waiver of Rules............................................................................81

Rule 910. Effect of Amendment, Repeal or New Rule ......................................................81

Rule 911. Signatures...........................................................................................................82

Rule 912. Governing Law; Legal Proceedings...................................................................82

Rule 913. Emergencies.......................................................................................................82

Rule 914. Indemnification ..................................................................................................84

CHAPTER 10. CLEARING......................................................................................................... 85

Rule 1001. Clearing Firm Requirements..............................................................................85

Rule 1002. Submission of Contracts to Derivatives Clearing Organization ........................85

Rule 1003. Clearing Firm Representation............................................................................85

Rule 1004. Responsibility of Participants and Authorized Traders.....................................85

Rule 1005. Rules of the Derivatives Clearing Organization ................................................85
Information Classification: General

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CHAPTER 11. CONTRACT SPECIFICATIONS....................................................................... 86

Rule 1101. Non-Deliverable Foreign Exchange Forwards (USD Settlement Currency) 

(Uncleared)........................................................................................................86

Rule 1102. Cross-Rate Non-Deliverable Foreign Exchange Forwards (Uncleared) ...........88

Rule 1103. Synthetic Non-Deliverable Foreign Exchange Forwards (Uncleared) ..............90

Rule 1104. LCH Clearnet Limited Cleared Non-Deliverable Foreign Exchange 

Forwards*..........................................................................................................92
CHAPTER 1. DEFINITIONS

Rule 101. General

Unless the context otherwise requires, the terms defined in this Rule have the meanings 

specified below for all purposes under the Rules:

“Affiliate” means, with respect to any Person, any Person who, directly or indirectly, 

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

“Appeal Panel” means the panel appointed in accordance with Rule 715 to consider an 

appeal from an order of a Hearing Panel pursuant to Rule 713 or a notice of summary action 

imposed pursuant to Rule 717 or appointed to consider an appeal from a summary imposition of a 

fine pursuant to Rule 716, and to affirm, modify or reverse all or any portion of such order, notice

or fine.

“Appeal Panel Member” means an individual who is appointed to, and serves as, a member 

of an Appeal Panel.

“Applicable Law” means, with respect to any Person, any statute, or any rule, regulation

or ordinance of any Government Agency, Derivatives Clearing Organization or Self-Regulatory 

Organization, in any case applicable to such Person.

“Audit Trail” has the meaning given that term in Rule 518(b).

“Authorized Trader” means a Person (not an individual) who is authorized by a Participant 

to access the Trading System pursuant to Rule 304.

“Authorized User” means an individual who is employed by or is an agent of a Participant, 

an Authorized Trader or a Clearing Firm and who has been authorized to access the Trading 

System pursuant to Rule 305. When used in reference to a Participant, “Authorized User” means 

and includes (i) such Participant’s Authorized Users and (ii) employees and agents of the 

Participant’s Authorized Traders who have been designated by the Authorized Trader as 

Authorized Users.

“Block Trade” means a publicly reportable swap transaction that:

(1) Involves a swap that is listed on a registered swap execution facility;

(2) Occurs away from the Company’s trading system and is executed 

pursuant to Chapter 6 of the Rules;

(3) Has a notional or principal amount at or above the appropriate minimum block 

size applicable to such swap; and

(4) Is reported subject to the Rules, including the appropriate time delay 

requirements set forth in CFTC Regulation 43.5.
Information Classification: General

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“Board” means the Board of Directors of the Company.

“Breakage Agreement” means any arrangement that provides for the assessment of liability 

or payment of damages between the parties to the Cleared Contract in the event the Cleared 

Contract is rejected from clearing, as such term is defined or interpreted by the CFTC from time 

to time.

“Business Day” means a day on which the Company is open for trading.

“CEA” means the Commodity Exchange Act.

“CFTC” means the Commodity Futures Trading Commission.

“CFTC Regulations” means the rules, regulations and orders promulgated by the CFTC.

“Chairman” means the chairman of the Board.

“Chief Compliance Officer” means the individual appointed by the Board as the 

Company’s chief compliance officer. 

“Chief Executive Officer” means the individual appointed by the Board as the Company’s 

chief executive officer.

“Cleared Contracts” has the meaning given that term in Rule 1002.

“Clearing Firm” means a Person, whether or not a Participant, that has been approved as a 

member or participant in one or more Derivatives Clearing Organizations and that is authorized 

pursuant to the rules of such a Derivatives Clearing Organization to clear Contracts for customers; 

provided that, the term “Clearing Firm” as used herein shall be deemed to refer to such Person 

solely in its capacity as a Clearing Firm and not, as applicable, in its capacity as a Participant.

“Committee” means a committee established by the Board.

“Company” means SwapEx, LLC or any successor thereto.

“Company Official” means any Director or Officer of, or individual employed directly by, 

the Company, or any individual rendering similar services to the Company under an administrative 

or similar agreement.

“Company Proceeding” means any Disciplinary Proceeding or an appeal from a 

Disciplinary Proceeding.

“Company Requirements” means (i) the Rules and other requirements implemented by the 

Company under the Rules, (ii) the applicable Contract Specifications, and (iii) the Participant 
Information Classification: General

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Documentation and other contractual obligations between a Participant, Authorized Trader and/or 

Authorized User and the Company.

“Contract” means a Swap and an Exempt Swap.

“Contract Specifications” means, with respect to any Contract, the terms and conditions,

rules or other trading protocols, as adopted, amended, supplemented or otherwise modified from 

time to time by the Company and published on the Company’s website in accordance with Part 40 

of the CFTC Regulations. 

“Control” means the possession, direct or indirect, of the power to direct or cause the 

direction of the management and policies of a Person, whether through the ownership of voting 

securities, by contract, or otherwise. The terms “Controlling” or “Controlled” shall have meanings 

correlative to the foregoing.

“Covered Person” has the meaning given that term in Rule 903(b).

“CTI” has the meaning given that term in Rule 518(d).

“Customer” means (i) an Eligible Contract Participant that has authorized a Participant or 

Authorized Trader to cause transactions in Contracts to be made for its account, and (ii) a DMA 

Customer.

“Customer Order” means, with respect to a Participant or Authorized Trader, an Order or 

Request for Quote that has been provided to such Participant or Authorized Trader, as applicable, 

by or on behalf of a Customer. 

“DMA Customer” means an Eligible Contract Participant who is authorized by a 

Participant to submit Customer Orders electronically on the Participant’s system or platform for 

onward transmission to the Trading System through the User ID assigned to an Authorized User

of the Participant.

“Derivatives Clearing Organization” has the meaning given that term in section 1a(9) of 

the CEA and, as used in these Rules, means a derivatives clearing organization that is registered 

or exempt from registration as such with the CFTC and that is engaged in the clearing of one or 

more Contracts.

“Designated Representative” means an individual, designated by a Participant or an 

Authorized Trader pursuant to Rule 309, with authority to act on behalf of such Participant or 

Authorized Trader, as applicable. 

“Direct Losses” means any Losses other than those described in Rule 527(d). 

“Director” means any member of the Board.

“Disciplinary Panel” means, as the context may require, either or both of a Review Panel 

and a Hearing Panel.
Information Classification: General

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“Disciplinary Panel Member” means an individual who is appointed to, and serves as, a 

member of a Disciplinary Panel.

“Disciplinary Proceeding” means any inquiry, investigation, disciplinary proceeding, 

summary imposition of fines, summary suspension or other summary action conducted pursuant 

to Chapter 7 of the Rules.

“Eligible Contract Participant” has the meaning given that term in section 1a(18) of the 

CEA and CFTC Regulations.

“Emergency” means any occurrences or circumstance which, in the opinion of the Board, 

the Chairman or the Chief Executive Officer, requires immediate action, and threatens, or may 

threaten, such things as the fair and orderly trading in, or the liquidation of or delivery pursuant to, 

any Contract or the timely collection and payment of funds in connection with clearing and

settlement of, any Contract, by a Derivatives Clearing Organization, including:

(1) any manipulative or attempted manipulative activity;

(2) any actual, attempted or threatened corner, squeeze, congestion or undue 

concentration of positions in a Contract;

(3) any circumstance that may materially affect the performance of a Contract, 

including failure of the payment system or the bankruptcy or insolvency of a Participant;

(4) any action taken by any United States or foreign regulatory, self-regulatory, 

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

thereof; or other Person exercising, or entitled to exercise any administrative, executive, 

judicial, legislative, police, regulatory or taxing authority or power; any Derivatives 

Clearing Organization, board of trade or other exchange (foreign or domestic) or facility 

that, in any such case, may have a direct impact on trading on the Trading System or the 

settlement and clearing of any Contract;

(5) any circumstance that may have a severe, adverse effect upon the functions 

and facilities of the Company. 

“EMTA” means EMTA, Inc., the Emerging Markets Traders Association.

“Error Trade” has the meaning given that term in Rule 526(a)(2).

“Exempt Swap” means a swap, as defined under Section 1a(47) of the CEA and CFTC 

Regulations, that is listed for trading on the Trading System but that is not required to be cleared 

pursuant to Section 2(h)(2)(D) of the CEA and CFTC Regulation 39.5, without regard to whether 

such Exempt Swap is submitted to a Derivatives Clearing Organization for clearing.
Information Classification: General

5

“Government Agency” means the CFTC and any other governmental agency or department 

that regulates the activities of the Company, a Participant, an Authorized Trader or Authorized 

User, as applicable.

“Hearing Panel” means the panel appointed pursuant to Rule 710 to conduct hearings in 

connection with Disciplinary Proceedings (other than summary impositions of fines pursuant to 

Rule 716), to make findings, render decisions, and impose sanctions pursuant to Chapter 7 of the 

Rules.

“Independent Software Vendor” or “ISV” means a Person that makes available to 

Participants and Authorized Traders a system or platform offering smart order routing, front-end 

trading applications, an aggregator platform or a combination of the foregoing but that does not 

provide the ability to effect the execution of Contracts other than through the Trading System.

“Indication of Interest” means an indicative price level provided for a Contract which is 

not executable.

“Insolvent” and “Insolvency” means the occurrence of any of the following events with 

respect to a Person:

(1) the Person is determined to be insolvent by a Government Agency or SelfRegulatory Organization;

(2) if the Person is a member of the Securities Investor Protection Corporation, 

a court of competent jurisdiction finds that the Person meets any one of the conditions 

set forth in clauses (A), (B), (C) or (D) of Section 5(b)(1) of the Securities Investor 

Protection Act of 1970;

(3) in the event of the entry or the making of a decree or order by a court, 

Government Agency or other supervisory authority of competent jurisdiction (i) 

adjudging the Person as bankrupt or insolvent, (ii) approving as properly filed a petition 

seeking reorganization, arrangement, liquidation, dissolution, adjustment or composition 

of or in respect of the Person under the Bankruptcy Code or any other applicable federal, 

state or other U.S. or non-U.S. law, including any bankruptcy, insolvency, 

reorganization, liquidation, dissolution or similar law, (iii) appointing a receiver, 

custodian, liquidator, provisional liquidator, administrator, provisional administrator, 

assignee, trustee, sequestrator or other similar official for the Person or for any substantial 

part of its property, (iv) ordering the winding up or liquidation of the Person’s affairs or 

(v) consenting to the institution by the Person of proceedings to be adjudicated as a 

bankrupt or insolvent; or

(4) the filing by the Person of a petition, or any case or proceeding, seeking 

reorganization or relief under the Bankruptcy Code or any other applicable federal, state 

or other U.S. or non-U.S. law, including any bankruptcy, insolvency, reorganization, 

liquidation, dissolution or similar law, or the consent by the Person to the filing of any 

such petition, case or proceeding or to the appointment of a receiver, custodian, 

liquidator, provisional liquidator, administrator, provisional administrator, assignee, 
Information Classification: General

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trustee, sequestrator or other similar official for the Person or for any substantial part of 

its property, or the making by the Person of an assignment for the benefit of its creditors, 

or the admission by the Person in writing of its inability to pay its debts generally as they 

become due, or the taking of corporate or similar action by the Person in furtherance of 

the foregoing.

“Interested Person” has the meaning given that term in Rule 206(a).

“Investigation Report” has the meaning given that term in Rule 703(a).

“ISDA” means the International Swaps and Derivatives Association Inc.

“LLC Agreement” means the Limited Liability Company Agreement of the Company, as 

it may be amended, amended and restated or otherwise modified from time to time.

“Losses” means any losses, damages, costs or expenses (including attorneys’ fees) whether 

direct, indirect, special, incidental, consequential, punitive or otherwise of any kind, including any 

loss of revenue, loss of actual or anticipated profits, loss of contracts, loss of the use of money, 

loss of anticipated savings, loss of business, loss of opportunity, loss of goodwill, loss of reputation 

or loss of, damage to or corruption of data.

“Maker” has the meaning given that term in Rule 524(b)(1).

“Market Data” means:

(1) all data and other information submitted for entry into the Trading System 

or relating in any way to a Contract, including the time at which such data or information 

was submitted to or generated by the Trading System;

(2) any data or other information contained in, derived from or related to any 

of the foregoing, including the format, compilation and presentation thereof; and

(3) any data or information transmitted, published or disseminated by the 

Company to Participants, Authorized Traders, Authorized Users or any publisher of such 

data or information with whom the Company has a written agreement relating thereto.

“Market Order” means an order to buy or sell an instrument at the current market price.

“Market Regulation Department” means all officers, employees and agents of the 

Company (including the Regulatory Services Provider) that assist the Company in the 

implementation, surveillance and enforcement of the Rules and other Company Requirements.

“NFA” means the National Futures Association.

“No-Bust Ranges” has the meaning given to that term in Rule 526(g).
Information Classification: General

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“Nominating Committee” means the Committee of the Board constituted pursuant to Rule

204.

“Non-Deliverable Component Pair” has the meaning given that term in Rule 1102.

“Officer” has the meaning given that term in Rule 202.

“Order” means either a bid or an offer for a Contract on the Trading System, and includes 

any modification to or cancellation of such a bid or offer, but does not include a Request for Quote 

or an Indication of Interest.

“Order Book” has the meaning given that term in CFTC Regulation 37.3.

“Participant” means a Person that has been authorized by the Company to have access to 

the Trading System pursuant to Rule 303 and to permit Authorized Traders and Authorized Users 

to have access to the Trading System pursuant to Rule 304 and Rule 305.

“Participant Committee” means the committee of the Board constituted pursuant to 

Rule 204.

“Participant Documentation” means the agreements (together with any applicable 

schedules, exhibits or appendices thereto) that are required to be executed and delivered to the 

Company before a Person may have access to the Trading System, including the Participant 

Agreement, Appointment of Authorized Trader, Authorized User ID Request Form, and User 

License Agreement, as applicable. 

“Permitted Transaction” means any transaction involving a Contract that is not a Required 

Transaction.

“Person” means an individual, sole proprietorship, partnership, limited liability company, 

association, firm, trust, corporation or other entity, as the context may require.

“Proprietary Information” has the meaning given that term in Rule 904.

“Public Director” has the meaning given that term in Rule 201(d)..

“Recipient” has the meaning given that term in Rule 524(b)(2).

“Regulatory Oversight Committee” means the committee of the Board constituted pursuant 

to Rule 204.

“Regulatory Services Provider” means NFA and such other organizations, if any, that 

provide regulatory services to the Company, in each case, together with those certain employees 

and agents of any such organization that provide regulatory services to the Company.

“Relevant EMTA Template” means all of the template terms for the confirmation of a 

foreign exchange non-deliverable forward transaction in a currency pair that is subject of a 

particular Contract as recommended by EMTA or a recognized successor (such template terms in 
Information Classification: General

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effect on the Effective Date of the Contract and published and available at www.emta.org or any 

successor website). 

“Reportable Swap Data” means both (i) Swap Transaction and Pricing Data; and (ii) 

Required Swap Creation Data.

“Reporting Counterparty” means, for purposes of Part 45 of CFTC Regulations, the 

Participant or Authorized Trader that is designated as such pursuant to Rule 528(b).

“Request for Quote” and “RFQ” have the meaning given those terms in Rule 524(b) and, 

unless the context otherwise requires, include both requests for quotes pursuant to Rule 524(b) and 

responses to any such requests.

“Required Swap Creation Data” means any data required to be reported under CFTC 

Regulation 45 and Appendix 1 thereto.

“Required Transaction” means any transaction involving a Contract that is subject to the 

trade execution mandate under section 2(h)(8) of the CEA and is not a Block Trade.

“Reverse RFQ Review Period” has the meaning given that term in Rule 524(b)(2).

“Review Panel” means the panel, if any, appointed pursuant to Rule 705 to review a 

completed Investigation Report and to determine whether a reasonable basis exists for finding a 

violation of the Rules and authorizing the issuance of a notice of charges pursuant to Rule 706.

“Rule” or “Rules” means the rules of SwapEx as set forth in this Rulebook.

“Self-Regulatory Organization” has the meaning given that term in CFTC 

Regulation 1.3(ee) and in section 3(a)(26) of the Securities Exchange Act of 1934.

“Sender” has the meaning given that term in Rule 524(b)(2).

“Significant Liquidity Provider” has the meaning given that term in Rule 408(b).

“Standard RFQ Review Period” has the meaning given that term in 524(b)(1)(iii).

“Stop Order” or “Stop Loss Order” means an order with a trigger price placed above the 

market (buy stop) or below the market (sell stop). A Stop Order becomes a Market Order when 

triggered. (Not offered on SwapEx currently)

“Summary Proceeding” means a Disciplinary Proceeding conducted pursuant to Rule 716

or Rule 717.

“Swap” has the meaning given that term in section 1a(47) of the CEA and CFTC 

Regulations but does not include Exempt Swaps, and, as used in these Rules, refers solely to 
Information Classification: General

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transactions in Swaps (including Orders and RFQs) that are listed for trading on the Trading 

System.

“Swap Data Repository” has the meaning given that term in section 1a(48) of the CEA and

in Part 49 of the CFTC Regulations, as used in these Rules, means a swap data repository that is 

registered or exempt from registration as such with the CFTC and that receives Reportable Swap 

Data in respect of one or more Contracts.

“Swap Transaction and Pricing Data” means any data required to be reported under Part 

43 of the CFTC Regulations and Appendix A thereto.

“Taker” has the meaning given that term in Rule 524(b)(1). 

“Terms Incorporated by Reference” has the meaning given that term in Rule 525(b).

“Trade Communication” has the meaning given that term in Rule 525(b).

“Trading Hours” means, for any Business Day, the hours during which the Trading System 

is scheduled to operate.

“Trading Privileges” means the right, granted to a Participant, an Authorized Trader, a 

DMA Customer or an Authorized User to transmit Orders and originate and/or respond to Requests 

for Quotes through the Trading System. 

“Trading System” means the Company’s electronic trade execution system that is used for 

the trading of Contracts, including the associated hardware, software, systems and 

communications links.

“User ID” means the unique identifier that is assigned by the Company to each Authorized 

User and to each automated trading system employed by a Participant or Authorized Trader and, 

in the case of such an automated trading system, linked to the User ID that is assigned to a single 

Authorized User. 

“User License Agreement” means the User License Agreement between the Company and 

a Person that the Company allows to access and use the Trading System.

Rule 102. Rules of Construction

In the Rules, unless the context otherwise requires: (i) headings are for convenience only 

and do not affect the construction of the Rules; (ii) words in the singular include the plural and 

words in the plural include the singular; (iii) references to the Rules and to a particular Rule are to 

the Rules and such Rule as they may be amended, amended and restated or otherwise modified 

from time to time; (iv) references to statutory provisions include those provisions, and any rules

or regulations promulgated thereunder, as they may be amended, amended and restated or 

otherwise modified from time to time; (iv) any reference to a time means the time in New York 

City; and (v) all uses of the word “including” are to be construed to mean “including, but not 

limited to.”
Information Classification: General

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CHAPTER 2. GOVERNANCE

Rule 201. Board

(a) The Board shall have overall responsibility for the business and affairs of the 

Company. The Board has the power and authority to call for the review of, and to affirm, modify, 

suspend or overrule, any and all decisions and actions of any Committee or Officer of the 

Company.

(b) The Board may act by the decision of a majority of the Directors present and voting 

at a meeting, by unanimous written consent without a meeting, or as otherwise set forth in the LLC 

Agreement.

(c) At least 35%, but no fewer than two (2), of the Directors shall be Public Directors. 

Each Director (including Public Directors) shall be appointed in accordance with the LLC 

Agreement, and shall serve until his or her successor is duly appointed, or until his or her earlier 

resignation or removal, with or without cause. 

(d) To qualify as a Public Director, a Director must be found, by the Board on the 

record, to have no material relationship with the Company or any of its Affiliates. A “material 

relationship” is one that reasonably could affect the independent judgment or decision making of 

such individual as a Public Director. In addition, an individual shall not be considered a “Public 

Director” if any of the following circumstances exist, or existed during the one-year period 

immediately prior to such individual’s appointment as a Director:

(1) such Director is an Officer or employee of the Company, or an officer or 

employee of an Affiliate of the Company; 

(2) such Director is a Participant, Authorized Trader, or a director, officer or 

employee of a Participant or Authorized Trader; or

(3) such Director, or an entity with which the Director is a partner, an officer, 

or a director, receives more than $100,000.00 in combined annual payments for legal, 

accounting or consulting services from the Company or any Affiliate of the Company. 

Compensation for services as a director of the Company or as a director of an Affiliate

of the Company does not count toward the $100,000.00 payment limit, nor does deferred 

compensation for services rendered prior to becoming a director of the Company, so long 

as such compensation is in no way contingent, conditioned, or revocable.

Any of the relationships set forth in subparagraphs (1), (2) and (3) of this Rule 201(d) apply to the 

“immediate family” of such Director (i.e., spouse, parents, children and siblings).
Information Classification: General

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Rule 202. Officers

(a) The Board shall appoint a Chief Executive Officer, a Chief Compliance Officer, 

and such other officers of the Company (all of the foregoing, collectively, the “Officers”) as it may 

deem necessary or appropriate from time to time, in accordance with the LLC Agreement.

(b) Any Officer may also be a director or employee of the Company or a director, 

officer or employee of any of its Affiliates.

(c) The Officers shall have such powers and duties in the management of the Company 

as the Board may prescribe from time to time.

Rule 203. Qualifications of Directors, Officers, Committee Members, 

Disciplinary Panel Members and Appeal Panel Members

(a) No Person may serve as a Director or Officer, or serve on a Committee, a 

Disciplinary Panel or an Appeal Panel, or hold a 10% or greater ownership interest in the 

Company, if such Person:

(1) within the prior three (3) years has been found, by a final decision in any 

action or proceeding brought in or by a court of competent jurisdiction, the CFTC, or any 

Self-Regulatory Organization or any Derivatives Clearing Organization, to have 

committed a disciplinary offense;

(2) within the prior three (3) years has entered into a settlement agreement in 

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

included a disciplinary offense;

(3) is currently suspended from trading on any contract market or swap 

execution facility, is suspended or expelled from membership in a Self-Regulatory 

Organization or Derivatives Clearing Organization, is serving any sentence or probation, 

or owes any portion of a fine or penalty related to either:

(i) a finding of a disciplinary offense by a final decision in any action 

or proceeding brought in or by a court of competent jurisdiction, the CFTC, or any 

Self-Regulatory Organization or any Derivatives Clearing Organization; or

(ii) a settlement agreement in which any of the findings or, in the 

absence of such findings, any of the acts charged included a disciplinary offense;

(4) is currently subject to an agreement with the CFTC, a Self-Regulatory 

Organization or a Derivatives Clearing Organization not to apply for registration with the 

CFTC or for membership or participant status in the Self-Regulatory Organization or 

Derivatives Clearing Organization;

(5) is currently, or within the past three (3) years has been, subject to a 

revocation or suspension of registration by the CFTC or has been convicted of a felony 

listed in sections 8a(2)(D)(i) through (iv) of the CEA; 
Information Classification: General

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

on a 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, as amended; or

(7) is subject to a statutory disqualification pursuant to Section 8a(2) or 8a(3) 

of the CEA.

(b) Any Director, Officer, member of a Committee, Disciplinary Panel or Appeal 

Panel, any individual nominated to serve in any such role, or any individual authorized by the 

Market Regulation Department to take summary action shall immediately notify the Chief 

Compliance Officer if such individual meets one or more of the criteria in Rule 203(a).

(c) For purposes of Rule 203(a), the terms “disciplinary offense,” “final decision,” and 

“settlement agreement” have the meanings given those terms in CFTC Regulation 1.63(a).

Rule 204. Standing Committees

(a) The Board shall initially have three (3) standing Committees: the Nominating 

Committee, the Participant Committee and the Regulatory Oversight Committee.

(b) Each member of such Committees must be a Director, one of whom the Board shall 

designate as the chairperson of such Committee. A temporary member of any such Committee 

may be appointed, using the same process required for regular appointments to a Committee, 

during the absence or inability to act of a regular member, and such temporary appointee shall 

have all the rights, power, authority, duties and obligations of the regular Committee member until 

the latter is again present and able to act. In addition, the Regulatory Oversight Committee shall 

consist of two (2) Public Directors, . In the event that there is a tie vote between the members of 

the Regulatory Oversight Committee with respect to any matter requiring a vote of the Regulatory 

Oversight Committee, the member who is the chair of the Regulatory Oversight Committee shall 

cast the deciding vote. :

(c) Each standing Committee shall assist in the supervision, management and control 

of the affairs of the Company within its particular area of responsibility, subject to the authority of 

the Board.

(d) Subject to the authority of the Board, each standing Committee shall determine the 

manner and form in which its proceedings shall be conducted. Each standing Committee may act 

only by the decision of a majority of the members of such Committee present and voting at a 

meeting or by unanimous written consent without a meeting. The Board has the authority to 

overrule the decisions of a standing Committee.

(e) If the Board rejects a recommendation or supersedes an action of the Regulatory 

Oversight Committee or the Participant Committee, the Company shall submit a written report to 
Information Classification: General

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the CFTC detailing: (i) the recommendation of or action proposed to be taken by the Regulatory 

Oversight Committee or the Participant Committee; (ii) the rationale for such recommendation or 

action; (iii) the rationale of the Board for rejecting such recommendation or superseding such 

action; and (iv) the course of action that the Board decided to take contrary to such 

recommendation or action.

Rule 205. Additional Committees

(a) In addition to the standing Committees of the Board, the Board may from time to 

time constitute and appoint Committees and designate their composition, responsibilities and 

powers. The members of such Committees may be Directors, Participants, Authorized Traders,

Authorized Users or such other individuals as may be qualified to serve on such Committee. The 

Board shall designate the chairperson of each such additional Committee.

(b) Each such additional Committee shall assist the Board in the management and 

control of the affairs of the Company within its particular area of responsibility.

(c) Subject to the authority of the Board, each such Committee shall determine the 

manner and form in which its proceedings shall be conducted. Each such Committee may act only 

by the decision of a majority of the members of such Committee present and voting at a meeting 

or by unanimous written consent without a meeting.

Rule 206. Conflicts of Interest

(a) A Director, Officer, member of any Committee, Disciplinary Panel Member or 

Appeal Panel Member who, in respect of a Company Proceeding or an Emergency, is subject to a 

“material conflict of interest” between his or her position as a Director, Officer, member of a 

Committee, Disciplinary Panel Member or Appeal Panel Member and his or her personal interests 

(any such Director, Officer, member of any Committee, Disciplinary Panel Member or Appeal 

Panel Member, an “Interested Person”) may not participate in deliberations or votes of the Board, 

a Committee, Disciplinary Panel or Appeal Panel in respect of such Company Proceeding or an 

Emergency, or otherwise exercise any authority with respect to such Company Proceeding or 

Emergency that involves his or her personal interest, except as described in Rule 206(d).

(b) For purposes of Rule 206(a), a “material conflict of interest” in respect of a 

Company Proceeding or an Emergency means a Director, Officer, member of a Committee, 

Disciplinary Panel Member or Appeal Panel Member:

(1) being named as a respondent or potential respondent in such Company 

Proceeding;

(2) being an employer, employee, fellow employee or an Affiliate of a 

respondent or potential respondent in such Company Proceeding;

(3) having any significant, ongoing business relationship with a respondent or 

potential respondent in such Company Proceeding;
Information Classification: General

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(4) having a family relationship with a respondent or potential respondent in 

such Company Proceeding (including the individual’s spouse, co-habitator, former 

spouse, parent, step-parent, child, step-child, sibling, step-brother, step-sister, 

grandparent, grandchild, uncle, aunt, nephew, niece, father-in-law, mother-in-law, 

brother-in-law or sister-in-law);

(5) having a direct and substantial financial interest in the result of the 

deliberations or vote based upon trades or positions that could reasonably be expected to 

be affected by such Company Proceeding or Emergency. A direct and substantial 

financial interest includes (but is not limited to) trades and positions in accounts of, 

controlled by, or affiliated with the Interested Person or in any other types of direct and 

substantial financial positions of the Interested Person that could reasonably be expected 

to be affected by such deliberations or vote; and/or

(6) any other circumstance that gives rise to a conflict between the exercise of 

authority by the Director, Officer, member of any Committee, Disciplinary Panel 

Member or Appeal Panel Member concerning such Company Proceeding or Emergency 

and his or her personal interests.

(c) Before considering a Company Proceeding or Emergency, an Interested Person 

must disclose in writing to the Chief Compliance Officer, and where appropriate, the Board, 

Committee, Disciplinary Panel or Appeal Panel, the material facts concerning his or her 

relationship or interest therein.

(d) An Interested Person who would be required otherwise to abstain from 

deliberations and voting pursuant to Rule 206(a) as a result of having a direct and substantial 

financial interest in the result of the deliberations and vote within the meaning of Rule 206(b)(5)

may participate in deliberations, prior to a vote on the Company Proceeding or Emergency, if:

(1) the material facts about the Interested Person’s financial interest in the 

matter are disclosed or known to the Board, Committee, Disciplinary Panel or Appeal 

Panel (as applicable);

(2) the Board, Committee, Disciplinary Panel or Appeal Panel determines that 

the participation by the Interested Person would be consistent with the public interest and 

the interests of the Company; and

(3) a majority of the members of the Board, Committee, Disciplinary Panel or 

Appeal Panel (as applicable), excluding any Interested Persons, vote to allow the 

Interested Person to participate in deliberations on the Company Proceeding or 

Emergency.
Information Classification: General

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(e) If a determination is made pursuant to Rule 206(d) that an Interested Person may 

participate in deliberations prior to a vote, the minutes of the meeting of the Board, Committee, 

Disciplinary Panel or Appeal Panel will reflect the fact thereof and the reasons therefor. 

(f) If a determination is made that all Committee members, Disciplinary Panel 

Members or Appeal Panel Members are Interested Persons with respect to a matter relating to a 

Company Proceeding or Emergency that is subject to a vote by such Committee, such Disciplinary 

Panel or the Appeal Panel (as applicable), the Board shall be authorized to appoint a panel of 

individuals who are not Interested Persons with respect to such matter. This panel shall have the 

same authority and powers over such matter that the Committee, Disciplinary Panel or Appeal 

Panel (as applicable) would have if the Committee members, Disciplinary Panel Members or 

Appeal Panel Members were not Interested Persons with respect to such matter. The Board shall 

have the same power to appoint individuals who are not Interested Persons if necessary to permit 

a Committee, Disciplinary Panel or Appeal Panel to satisfy quorum requirements.

Rule 207. Maintenance of Books and Records by the Company; Provision 

of Information to the CFTC

The Company shall keep, or cause to be kept, all books and records required to be 

maintained pursuant to CFTC Regulation 45.2(c) throughout the life of a Swap and for a period of 

five (5) years following the final termination of a Swap. The Company shall keep, or cause to be 

kept, all other books and records required to be maintained pursuant to the CEA and CFTC 

Regulations for at least five (5) years following the date of creation. All of the foregoing books 

and records shall be accessible by the Company for the duration of the required record keeping 

period in accordance with Core Principle 10 and CFTC Regulations 37.1001. All of the foregoing 

books and records shall be open to inspection upon request by any representative of the CFTC, the 

United States Department of Justice, or the Securities and Exchange Commission, or by any 

representative of a prudential regulator as authorized by the CFTC. Upon request from the CFTC, 

the Company shall, at the Company’s expense, provide information in its possession requested by 

the CFTC in a form and manner that the CFTC approves.
Information Classification: General

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CHAPTER 3. TRADING SYSTEM

Rule 301. Access to the Trading System

(a) A Participant will be granted Trading Privileges if it has been authorized by the 

Company pursuant to Rule 303.

(b) A Participant shall designate at least one (1) of its employees, agents or authorized 

contractors who are individuals as an Authorized User and may designate other employees, agents 

and authorized contractors who are individuals as Authorized Users pursuant to Rule 305. 

Authorized Users may access and use the Trading System on behalf of such Participant and, to the 

extent permitted by Applicable Law, on behalf of, such Participant’s Customers or the Customers 

of Authorized Traders.

(c) A Participant may designate one or more customers, investment managers or other 

third parties that are not individuals as Authorized Traders pursuant to Rule 304. An Authorized 

Trader will be given access to the Trading System and shall designate at least one (1) of its 

employees, agents or authorized contractors who are individuals as an Authorized User and may 

designate other employees, agents and authorized contractors as Authorized Users pursuant to Rule

305. Authorized Users may access and use the Trading System on behalf of such Authorized 

Trader and, to the extent permitted by Applicable Law, Customers of the Authorized Trader.

(d) A Participant must establish and maintain appropriate credit and/or risk controls for 

its Authorized Traders and Authorized Users.

(e) A Participant may be held accountable by the Company for the actions and 

omissions of its Authorized Traders and its and their Authorized Users.

(f) An Independent Software Vendor will be granted access to the Company if it has 

been authorized by the Company pursuant to Rule 306.

(g) The Company will provide any Person who is an Eligible Contract Participant and 

any Independent Software Vendor with impartial access to the Trading System in accordance with 

CFTC Regulation 37.202, including any indicative quote screens or any similar pricing data 

displays (if applicable). 

Rule 302. Participant Eligibility Requirements

(a) To be eligible for admission as a Participant, an applicant must be able to 

demonstrate to the satisfaction of the Company that it:

(1) is an Eligible Contract Participant, and, if applicable, is in compliance with 

CFTC Regulation 1.17;
Information Classification: General

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(2) is located in, and will access and use the Trading System and permit its 

Authorized Users to access and use the Trading System solely from, the United States or 

a jurisdiction in which the Company is permitted by Applicable Law to offer the Trading 

System and, if the applicant or any of its Authorized Traders is organized or established 

under the laws of a country other than the United States or intends to access and use the 

Trading System or permits their respective Authorized Users to access and use the 

Trading System from a jurisdiction other than the United States, the applicant shall 

submit, upon request by the Company, an opinion of appropriately qualified and 

reputable outside counsel on home country law and, if applicable, other relevant nondomestic law, in form and substance acceptable to the Company;

(3) is, if such Participant or its Authorized User accesses the Trading System 

from Singapore, an accredited investor, an expert investor or an institutional investor as 

these terms are defined in the Securities and Futures Act of Singapore;

(4) has all registrations, licenses and consents required by its constituent 

documents and by Applicable Law to trade Contracts on the Trading System and is not 

subject to any trading ban, prohibition or suspension issued by the CFTC or by any SelfRegulatory Organization that is subject to the CFTC’s oversight, including the NFA; 

(5) with respect to Contracts that are to be cleared by a Derivatives Clearing 

Organization, (i) is a member of a Derivatives Clearing Organization that is authorized 

to clear Contracts for its own account and, if applicable, for the account(s) of its

Customers, Authorized Traders and its and their Customers or (ii) has delivered to the 

Company evidence satisfactory to the Company, in its sole discretion, that at least one 

Clearing Firm has agreed to accept Contracts for clearing into the account of such 

Participant and/or, if applicable, its Authorized Traders and its and/or their Customers; 

and

(6) is of good reputation and business integrity, maintains adequate financial 

resources and credit, and satisfies such other criteria as the Company may establish from 

time to time.

(b) Once admitted, a Participant shall continue to comply with all applicable eligibility 

criteria in Rule 302(a) and shall provide the Company with such information in relation thereto as 

the Company may require.

(c) Each Participant shall immediately notify the Company in writing if it ceases to 

meet any of the requirements of Rule 302(a).

Rule 303. Participant Application Procedure

(a) A Person that desires to become a Participant shall:

(1) complete and submit the Participant Documentation;
Information Classification: General

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(2) provide such information and documentation as may be requested by the 

Company, and comply with the procedures established by the Company for admission;

(3) distribute the Rules to its Authorized Traders, Authorized Users, and if 

applicable, DMA Customers, or cause the Rules to be so distributed; and

(4) if such Person is organized or established under the laws of a country other 

than the United States:

(i) maintain a presence in the United States, either directly or through 

a suitable agent, whose personnel are fluent in English, are knowledgeable about 

the applicant’s business, and can assist representatives of the Company as 

necessary;

(ii) pursuant to CFTC Regulation 15.05, enter into a written agreement 

acceptable to the Company appointing a third party as its agent for service of 

process in the United States and shall, upon request by the Company, provide the 

Company with a copy of such agreement; 

(iii) make such other representations as the Company deems necessary; 

and

(iv) upon request by the Company, submit an opinion of outside counsel 

on home country law and, if applicable, other relevant non-domestic law, in form 

and substance acceptable to the Company.

(b) The Company may require additional information from an applicant in order to 

establish the applicant’s eligibility to access the Trading System and may conduct an investigation 

to verify information submitted by the applicant.

(c) If the Company decides to admit an applicant as a Participant, it shall promptly 

notify the applicant in writing. Admission as a Participant does not confer any right of ownership 

in, right to attend or vote at meetings of, or right to share in the profits of, the Company or 

ownership of any of the Company’s Market Data, software supporting the Trading System and 

other intellectual property. The Company may pay a referral fee, based on a Participant’s use of 

the Trading System, to any third party consultant who is deemed to have introduced the Participant 

to the Company.

(d) The Company may deny or condition an application for admission as a Participant:

(1) if the applicant is unable to satisfactorily demonstrate its ability to satisfy 

the eligibility criteria to become or remain a Participant;
Information Classification: General

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(2) if the applicant is unable to satisfactorily demonstrate its capacity to adhere 

to the Rules and Applicable Law;

(3) for such other cause as the Company may reasonably determine.

(e) If the Company decides to deny or condition an application for admission as a 

Participant, the Company shall promptly notify the applicant in writing, setting forth the reasons 

for the denial or conditioning of Participant status. The applicant may, within fourteen (14) days 

of the date of such notice, request in writing that the Participant Committee reconsider that 

determination. The Participant Committee may request additional information from the applicant 

or establish any other process that it believes is necessary and appropriate to consider the request 

for reconsideration. Unless extended with the consent of the applicant, the Participant Committee 

shall confirm, reverse or modify the denial or conditioning of the application within thirty (30) 

days of receiving the request for reconsideration or such longer period as may be agreed by the 

applicant. The Participant Committee shall promptly notify the applicant of its decision in writing. 

The decision of the Participant Committee shall be final and not subject to appeal.

Rule 304. Authorized Traders

(a) A Participant may grant permission to one or more Authorized Traders to enter 

Orders and Indications of Interest, originate and respond to Requests for Quotes, and otherwise 

access the Trading System in accordance with the criteria and procedures established by the 

Company. 

(b) By agreeing to act as an Authorized Trader, such Person agrees to be bound by the 

duties and responsibilities of an Authorized Trader under the Rules and other Company

Requirements and to be subject to, and comply with, the Rules.

(c) An Authorized Trader must at all times:

(1) be an Eligible Contract Participant;

(2) if applicable, be in compliance with CFTC Regulation 1.17;

(3) be located in and access and use the Trading System, and permit its 

Authorized Users to access and use the Trading System, solely from within the United 

States or a jurisdiction in which the Company is permitted by Applicable Law to offer 

the Trading System;

(4) be, to the extent such Authorized Trader or its Authorized Users accesses 

the Trading System from Singapore, an accredited investor, an expert investor or an 

institutional investor as these terms are defined in the Securities and Futures Act of 

Singapore;

(5) ensure that activity conducted under the User IDs assigned to it and its 

Authorized Users complies with the Rules;
Information Classification: General

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(6) have the authority, at the Company’s request, to adjust or withdraw any 

Order or Request for Quote submitted under such User IDs;

(7) have and maintain all necessary regulatory approvals and/or licenses to 

operate as an Authorized Trader and not be subject to any trading ban, prohibition or 

suspension issued by the CFTC or by any Self-Regulatory Organization that is subject to 

CFTC oversight, including the NFA; and

(8) agree to such other terms and conditions as may be established by the 

Company from time to time.

(d) The Company will promptly notify a Participant in writing of its approval, or 

refusal to approve, the designation of an Authorized Trader. The Company may, in its sole 

discretion, revoke or suspend the designation of an Authorized Trader, and shall promptly notify 

the Participant in writing of such action in accordance with procedures established by the 

Company. 

(e) Each Authorized Trader shall immediately notify the Company in writing if it 

ceases to meet any of the requirements of Rule 304(c). Participant shall notify the Company in 

writing if it becomes aware that any of its Authorized Traders ceases to meet any of the 

requirements of Rule 304(c).

(f) A Participant that seeks to terminate the designation of an Authorized Trader shall 

notify the Company in writing, providing such information as the Company may require. The 

Company shall terminate the Trading Privileges of such Authorized Trader and its Authorized 

Users in accordance with procedures established by the Company.

Rule 305. Authorized Users

(a) A Participant, an Authorized Trader or a Clearing Firm shall designate one or more 

Authorized Users in accordance with the criteria and procedures established by the Company. 

Each Authorized User shall be identified to the Company, in the manner prescribed by the 

Company, and shall be subject to the Rules. Any Authorized User designated by a Clearing Firm 

shall only be permitted to access and use administrative, credit control functionality on the Trading 

System and shall have no Trading Privileges. 

(b) By agreeing to act as an Authorized User, an individual agrees to be bound by the 

duties and responsibilities of an Authorized User under the Rules and other Company 

Requirements and to be subject to, and comply with, the Rules.

(c) Each Authorized User must have and use a unique User ID to access the Trading 

System. It shall be the responsibility of an Authorized User and its sponsoring Participant, its 

sponsoring Authorized Trader or its sponsoring Clearing Firm, as applicable, to ensure that each 

such User ID is registered with the Company, and that such registration is accurate at all times. In 
Information Classification: General

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no event may a Person other than the Authorized User to whom a User ID has been assigned 

exercise Trading Privileges or otherwise access the Trading System using such User ID.

(d) An Authorized User must at all times:

(1) ensure that activity conducted under the User ID assigned to such 

Authorized User, or any automated trading system for which the User ID is linked to 

such Authorized User, complies with the Rules;

(2) if such Authorized User was designated by a Participant or an Authorized 

Trader, have the authority, at the Company’s request, to adjust or withdraw any Order, 

Indication of Interest or Request for Quote submitted to the Trading System under any 

User ID assigned or linked to such Authorized User;

(3) have and maintain all necessary regulatory approvals and/or licenses to act 

as an Authorized User; and

(4) agree to such other terms and conditions as may be established by the 

Company from time to time.

(e) The Company will promptly notify, in writing, the Participant, the Authorized 

Trader or the Clearing Firm, as applicable, of its approval, or refusal to approve, the designation 

of an Authorized User. The Company may, in its sole discretion, revoke or suspend the designation 

of an individual as an Authorized User, and shall promptly notify, in writing, the Participant, the 

Authorized Trader or the Clearing Firm of such action.

(f) Each Authorized User shall immediately notify the Company in writing if it ceases 

to meet any of the requirements of Rule 305(d). A Participant, Authorized Trader or Clearing 

Firm, as applicable, shall notify the Company in writing if it becomes aware that any of its 

Authorized Users ceases to meet any of the requirements of Rule 305(d).

(g) A Participant, Authorized Trader or Clearing Firm that seeks to terminate the 

designation of an individual as an Authorized User shall notify the Company in writing in 

accordance with procedures established by the Company. The Company shall act to terminate 

such Authorized User’s Trading Privileges or other use of and access to the Trading System in 

accordance with procedures established by the Company.

Rule 306. Independent Software Vendors

A Person seeking to act as an ISV must satisfy the Company’s technological integrity 

requirements and not adversely affect the Company’s ability to comply with the CEA and CFTC 

Regulations.

Rule 307. Limitations on Access to the Trading System

(a) The Company may at any time revoke, suspend, limit, restrict or qualify a 

Participant’s Trading Privileges, and those of its Authorized Traders and its and their Authorized 

Users, in accordance with the procedures set forth in Chapter 7.
Information Classification: General

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(b) Subject to the terms of any agreement between a Participant, Authorized Trader 

and/or its or their Customers and a Clearing Firm, the Clearing Firm may at any time revoke the 

authorization of the Participant, Authorized Trader and/or its or their Customers, as applicable, to 

submit Contracts to a Derivatives Clearing Organization for clearing by such Clearing Firm. Any 

such revocation shall become effective as soon as practicable after the receipt of written notice 

thereof by the Company or at such later date as may be specified in the written notice from the 

Clearing Firm, at which time the Trading Privileges of the Participant, its Authorized Traders and 

its Authorized Users with respect to its Cleared Contracts intended to be cleared by the Clearing 

Firm shall be terminated, unless, prior to such termination such Participant has designated, in the 

form and in a manner satisfactory to the Company, another Clearing Firm to clear such Contracts. 

For the avoidance of doubt, such revocation shall not be effective with respect to any transaction 

executed prior to such termination of Trading Privileges. 

(c) A Participant shall suspend or terminate the ability of a DMA Customer to submit 

any Customer Order on its system or platform for onward transmission to the Trading System if 

the Company determines in accordance with the procedures set forth in Chapter 7 that the actions 

of the DMA Customer threaten the integrity of the Trading System or violate any Rule.

Rule 308. Notices and Other Communications

The Company shall publish on the Company’s website and transmit to each Designated 

Representative by electronic mail each addition to or modification of the Company Requirements 

in accordance with CFTC Regulations, as applicable; provided that publication on the Company’s 

website shall constitute notice to all Participants, Authorized Traders and Authorized Users. 

Rule 309. Designated Representatives

(a) Each Participant shall designate in writing one or more Designated Representatives 

who are authorized to represent the Participant before the Company and its committees and receive 

notices on behalf of the Participant and its Authorized Users. The Company shall be entitled to 

rely on the actions of the Designated Representative as binding on the Participant and its 

Authorized Users. Each Participant must provide the Company with the telephone number, 

mailing and electronic mail address of its Designated Representatives and shall promptly update 

this information by written notice whenever it changes.

(b) Each Authorized Trader shall designate in writing one or more Designated 

Representatives who are authorized to represent the Authorized Trader before the Company and 

its committees and receive notices on behalf of the Authorized Trader and its Authorized Users. 

The Company shall be entitled to rely on the actions of the Designated Representative as binding 

on the Authorized Trader and its Authorized Users. Each Authorized Trader must provide the 

Company with the telephone number, mailing and electronic mail address of its Designated 

Representatives and shall promptly update this information by written notice whenever it changes.
Information Classification: General

23

Rule 310. Application of Rules; Jurisdiction of the Company

(a) By becoming a Participant, Authorized Trader or Authorized User, as applicable, 

and without any need for any further action, undertaking or agreement, such Participant, 

Authorized Trader or Authorized User agrees:

(1) to be bound by, and comply with the Rules, Company Requirements and 

Applicable Law, in each case to the extent applicable to it;

(2) to be bound by the acts and omissions of its Authorized Traders and/or 

Authorized Users, as applicable; 

(3) to assist the Company in complying with the Company’s legal and 

regulatory obligations and to cooperate with the Company in any inquiry, investigation, 

audit, examination or proceeding; and

(4) to authorize the Company to provide information regarding such 

Participant, Authorized Trader or Authorized User as provided in Rule 905.

(b) A Participant, Authorized Trader or Authorized User whose Trading Privileges 

and/or ability to otherwise access the Trading System are suspended, revoked or terminated shall 

remain bound by the Rules, Company Requirements and Applicable Law, in each case to the extent 

applicable to it, her or him during the period of any suspension and with respect to any acts or 

omissions occurring during or prior to the suspension, revocation or termination.

(c) Any Person initiating or executing a transaction on the Trading System or subject 

to the Rules directly or through an intermediary, and any Person for whose benefit such transaction 

has been initiated or executed, consents to the jurisdiction of the Company with respect to all 

matters arising from or related to such activity and such transactions.

Rule 311. Withdrawal of Participant

(a) To withdraw from the Company, a Participant must notify the Company in writing

in accordance with procedures established by the Company for such purpose. Except as otherwise 

required by law or regulation or by request or order of a Government Agency, such withdrawal 

will be effective immediately upon receipt of the withdrawal by the Company.

(b) Upon the effective date of the withdrawal of a Participant, all rights and privileges 

of such Participant, its Authorized Traders and its and their Authorized Users shall terminate 

(including such Participant’s Trading Privileges and ability to access the Trading System). The 

withdrawal of a Participant shall not affect the rights of the Company under the Rules or relieve 

the former Participant of its obligation under the terms of any Contract entered into or otherwise 

arising under the Rules before the effective date of such withdrawal. A Participant that has 

withdrawn remains subject to the Rules, the Company Requirements and the jurisdiction of the 

Company for acts done and omissions made while a Participant, and must cooperate in any 

Company Proceeding under Chapter 7 as if the withdrawn Participant were still a Participant.
Information Classification: General

24

Rule 312. Dues, Assessments and Fees

Each Participant, Authorized Trader and ISV shall pay when due all dues, assessments and 

fees as may be established by the Company and published on the Company’s website or otherwise 

agreed between the Company and such Participant, Authorized Trader or ISV. The Company shall 

charge comparable dues, assessments and fees to Persons that receive comparable access to the 

Trading System. The Company may suspend, revoke, limit, condition, restrict or qualify the 

Trading Privileges of a Participant, Authorized Trader or ISV and its ability to otherwise access 

the Trading System if such Participant, Authorized Trader or ISV fails to pay such amounts when 

due. The provisions of Chapter 7 (other than Rule 716) shall not apply to any such suspension, 

revocation, limitation, condition, restriction or qualification.
Information Classification: General

25

CHAPTER 4. BUSINESS CONDUCT

Rule 401. Duties and Responsibilities of Participants and Authorized 

Traders

(a) Each Participant and Authorized Trader shall, and shall cause its Authorized Users 

to:

(1) use the Company’s Trading System in a responsible manner and not for any 

improper purpose;

(2) use the Company’s Trading System only to conduct business that is subject 

to the Rules and in a manner consistent with the Rules and Company Requirements;

(3) comply with the Rules and Company Requirements and act in a manner 

consistent with the Rules and Company Requirements;

(4) comply with the rules of a Derivatives Clearing Organization that accepts 

for clearing a Contract traded by the Participant, Authorized Trader or Authorized User

on the Trading System, to the extent applicable to such Participant, Authorized Trader or 

Authorized User and such Contract;

(5) observe high standards of commercial honor and just and equitable 

principles of trade while conducting or seeking to conduct any business connected with 

or concerning the Company;

(6) not knowingly mislead or conceal any material fact or matter in any dealings 

or filings with the Company or in connection with a Company Proceeding;

(7) keep all User IDs, account numbers and passwords related to the 

Company’s Trading System confidential; and

(8) keep complete and accurate books and records relating to Participant’s or 

its Authorized Traders’ use of the Trading System as required by Applicable Law, 

including records of their activity in the index or instrument used as a reference price, 

the underlying instrument and related derivatives markets with respect to Swaps, and 

make such books and records available, upon request, for inspection by a representative 

of the Company, the Regulatory Services Provider and/or the CFTC in accordance with 

Rule 403 and otherwise as required by Applicable Law.

(b) In addition to the requirements of Rule 401(a), each Participant shall be responsible 

for all Orders, RFQs, Indications of Interest and transactions effected on the Trading System by or 

for the account of such Participant, its Authorized Traders and Authorized Users or by any Person 

using its or their User IDs or, at the election and sole discretion of Participant, cause its Customer 

to be fully responsible for all trading losses and bear all financial responsibility for Orders, RFQs, 

Indications of Interest and transactions effected on the Trading System for the account of or on the 

behalf of such Customer.
Information Classification: General

26

(c) Each Participant and Authorized Trader that is registered, or required to be 

registered, with the CFTC as a swap dealer or a major swap participant is responsible for 

compliance with the mandatory trading requirement of Section 2(h)(8) of the CEA when such 

Participant or Authorized Trader enters into, or facilitates entry into, a Swap.

Rule 402. Required Notices 

Each Participant, Authorized Trader or ISV shall immediately notify the Market 

Regulation Department in writing upon becoming aware of any of the following events:

(a) any material changes to the information provided to the Company by the Participant 

pursuant to Rule 302, 303, 304, 305, 306 or 309;

(b) any refusal of admission to any Self-Regulatory Organization by the Participant or 

any of its Authorized Traders;

(c) any expulsion, suspension or fine in excess of $25,000 in the case of an individual 

or $50,000 in the case of a firm (whether through an adverse determination, voluntary settlement 

or otherwise) imposed on the Participant, Authorized Trader or ISV or any of their Authorized 

Users by any Self-Regulatory Organization;

(d) any revocation, suspension or conditioning of a registration or license granted by 

the Securities and Exchange Commission, the Commodity Futures Trading Commission or the 

securities commission or equivalent authority of any state, territory, the District of Columbia or 

foreign country, the National Futures Association or the Financial Industry Regulatory Authority, 

Inc. to the Participant, Authorized Trader or ISV or any of their Authorized Users;

(e) the commencement of any judicial or administrative proceeding against the 

Participant, Authorized Trader or ISV or any of their Authorized Users by any commodity or 

securities exchange or related clearing organization, the Securities and Exchange Commission, the 

Commodity Futures Trading Commission or the securities commission or equivalent authority of 

any state, territory, the District of Columbia or foreign country, the National Futures Association, 

the Financial Industry Regulatory Authority, Inc. or any Self-Regulatory Organization or the 

imposition of a fine in excess of $25,000 in the case of an individual or $50,000 in the case of a 

firm, cease and desist order, denial of trading privileges, censure or other sanction or remedy 

(whether through an adverse determination, voluntary settlement or otherwise) imposed by any 

commodity or securities exchange or related clearing organization, the Securities and Exchange 

Commission, the Commodity Futures Trading Commission or the securities commission or 

equivalent authority of any state, territory, the District of Columbia or foreign country, the National 

Futures Association, the Financial Industry Regulatory Authority, Inc., any Self-Regulatory 

Organization or, with respect to activity subject to the Rules, any court;

(f) the indictment or conviction of, or any confession of guilt or plea of guilty or nolo 

contendere by, the Participant, Authorized Trader or ISV or any of their Authorized Users, senior 
Information Classification: General

27

officers or principals for any felony or for any misdemeanor involving, arising from, or related to, 

the purchase or sale of any Contract or other financial instrument, or involving or arising from 

fraud or moral turpitude; and

(g) the Insolvency of the Participant, any of its Authorized Traders, or any of its or 

their Affiliates.

Rule 403. Inspections by the Company

The Company and the Regulatory Services Provider shall have the right with such prior 

reasonable advance notice as is practicable under the circumstances, in connection with 

determining whether the Rules and Company Requirements are being, will be or have been 

complied with by the Participant or Authorized Trader or DMA Customer, to: (a) inspect the books 

and records of the Participant or Authorized Trader or DMA Customer relating to the Participant’s 

or Authorized Trader’s or DMA Customer’s business which is subject to the Rules (including, 

without limitation, Permitted Transactions and Block Trades), (b) inspect systems, equipment and 

software, wherever located, operated by a Participant or Authorized Trader in connection with the 

Participant’s or Authorized Trader’s business which is subject to the Rules (including, without 

limitation, Permitted Transactions and Block Trades) (c) access the systems, equipment, software, 

and the premises on which the Participant’s or Authorized Trader’s systems, equipment, and 

software are located, data stored in such systems or equipment, in each case, related to the 

Participant’s or Authorized Trader’s business which is subject to the Rules (including, without 

limitation, Permitted Transactions and Block Trades), during the regular business hours and 

Trading Hours of Company and (d) copy and/or reproduce such data as may be necessary to 

monitor such Participant or Authorized Trader or DMA Customer for compliance with the 

requirements of Rule 518.

Rule 404. Financial and Related Reporting Requirements

(a) Each Participant and Authorized Trader that is registered with or authorized or 

supervised by a Government Agency shall comply with the provisions of Applicable Law relating 

to minimum financial and related reporting and recordkeeping requirements. 

(b) Each Participant and Authorized Trader must notify the Company and the 

Regulatory Services Provider immediately when it ceases to be an Eligible Contract Participant, 

and if the Participant or Authorized Trader is registered with the CFTC as a futures commission 

merchant, when it ceases to satisfy the minimum financial requirements set out in CFTC Regulation 

1.17. Each Participant and Authorized Trader that is registered with the CFTC as a futures 

commission merchant that is unable to demonstrate that it is in compliance with the minimum 

financial requirements of CFTC Regulation 1.17 shall not effect transactions in Contracts except 

for the purpose of closing open positions to the extent not prohibited by Applicable Law.

Rule 405. Restrictions on Activity

If the Company determines that the financial or operational condition of a Participant, one 

of its Affiliates or an Authorized Trader is such that to allow that Participant to continue to have 

access to the Trading System would adversely affect the Company or the financial markets
Information Classification: General

28

(including, but not limited to, such Participant or Authorized Trader being subject to the 

notification requirements of CFTC Regulation 1.12 or similar requirements of another 

Government Agency to which such Participant or Authorized Trader is subject), the Company may 

limit or restrict the number, type or market direction of Contracts that may be traded by a

Participant or its Authorized Traders on the Trading System or terminate the Trading Privileges of 

such Participant, its Authorized Traders and/or its and their Authorized Users.

Rule 406. Customers

(a) The Participant or Authorized Trader shall have arrangements in place with each of 

its Customers such that every Contract executed for, or other activity engaged in by the Participant 

or Authorized Trader on the Trading System on behalf of, its Customer (including without 

limitation any Customer Order transmitted by the Participant to the Trading System for a DMA 

Customer) is subject to the terms of the Rules insofar as they are applicable to that Contract or 

activity. Additionally, a Participant or Authorized Trader, as applicable, will be deemed to have 

made the following representations and warranties each time it makes use of, or if applicable, 

facilitates the transmission of a Customer Order to, the Trading System for or on behalf of a 

Customer: 

(1) such Customer is an Eligible Contract Participant; and

(2) such Customer consents to the jurisdiction of the Company with respect to 

all matters arising from or related to any Customer Order submitted on, or transmitted to,

the Trading System on such Customer’s behalf or for such Customer’s benefit; 

(3) with respect to Contracts that are to be cleared by a Derivatives Clearing 

Organization, either (i) such Participant or the Participant who designated such 

Authorized Trader, as applicable, is a member of the Derivatives Clearing Organization 

that is authorized to clear such Contracts for the account(s) of such Customer, or (ii) such 

Participant or the Participant who designated such Authorized Trader, as applicable, has 

delivered to the Company evidence satisfactory to the Company, in its sole discretion, 

that at least one Clearing Firm has agreed to accept Contracts for clearing into the account 

of such Customer; and

(4) to the extent that a DMA Customer submits any Customer Order on the 

Participant’s system or platform for onward transmission to the Trading System, such 

DMA Customer is located in, and will access and use the Participant’s system or platform 

solely from, the United States or another jurisdiction in which the Company is permitted 

by Applicable Law to offer the Trading System.

(b) Each Customer shall keep, or shall arrange for the Participant or Authorized Trader

engaging in activity on behalf of such Customer on the Trading System to keep, as agent for the 

Customer, complete and accurate books and records relating to Contracts executed for, or other 

trading activities engaged in by the Participant or Authorized Trader on the Trading System on 
Information Classification: General

29

behalf of, such Customer as required by CFTC Regulation 37.404(b) and, solely with respect to 

DMA Customers, CFTC Regulations 1.31 and 1.35, and shall, or shall arrange for the Participant 

or Authorized Trader engaging in activity on behalf of such Customer on the Trading System to 

make, as agent for the Customer, such books and records available, upon request, to the Company, 

the Regulatory Services Provider and/or the CFTC.

Rule 407. Publication of Trade Information

The Company shall daily publish on its website information regarding volume, price ranges 

(based on non-cancelled bids, non-cancelled offers, and sales) subject to such prices accurately 

reflecting market conditions within the discretion of the Company, and opening and closing prices

and settlement prices. The Company shall also publish on its website, on a daily basis, the total 

quantity of Block Trades if any, which are included in the total volume of trading. 

Rule 408. Disaster Recovery; Business Continuity

Each Participant shall have written disaster recovery and business continuity policies and 

procedures in place to ensure it is able to resume operations in a timely manner in the event of a 

significant internal or external interruption to its operations. 

Rule 409. Anti-Money Laundering Obligations

Each Participant or Authorized Trader represents and warrants that it maintains policies 

and has implemented procedures and controls, including, without limitation, policies and 

procedures for sanctions screening, reasonably designed to ensure compliance with all laws, rules 

and regulations applicable to it pertaining to anti-money laundering and anti-terrorism, including 

those related to customer identification and verification and those administered by the Office of 

Foreign Assets Control (“OFAC”). Each Participant or Authorized Trader shall provide to the 

Company, upon request, so long as permitted by Applicable Law, including those pertaining to 

data privacy, any documents and other information reasonably requested by the Company in order 

to satisfy any anti-money laundering, anti-terrorism or other customer identification and 

verification laws, rules and regulations applicable to the Company. The foregoing representations, 

warranties and covenants shall be deemed to be made by the Participant or Authorized Trader each 

time it makes use of the Trading System. 
Information Classification: General

30

CHAPTER 5. TRADING PRACTICES

Rule 501. Scope

This Chapter 5 applies to all transactions in Contracts, except as otherwise specifically 

provided in Chapter 6.

Rule 502. Rule Violations

It shall be a violation for any Person subject to the Company’s jurisdiction to violate any 

Rule or any Company Requirement.

Rule 503. Just and Equitable Principles of Trade; Acts Detrimental

It shall be a violation of these Rules for any Person subject to the Company’s jurisdiction

to engage in conduct inconsistent with just and equitable principles of trade or that is detrimental 

to the interest or welfare of the Company. A Participant that has actual or constructive notice of a 

violation of the Rules involving the use of or access to (whether direct or indirect) the Trading 

System by any of its Authorized Traders or any of their respective Authorized Users or Customers 

may be found to have committed an act detrimental to the Company.

Rule 504. Fraudulent Acts Prohibited

No Person subject to the Company’s jurisdiction shall engage, or attempt to engage, in any 

fraudulent act or engage in any manipulative device, scheme or artifice to defraud, deceive or 

mislead another Person (including the Company and the Regulatory Services Provider) in 

connection with or relating to any Contract.

Rule 505. Fictitious or Noncompetitive Transactions Prohibited

No Person subject to the Company’s jurisdiction shall engage in fictitious or 

noncompetitive transactions or enter an Order, or originate or respond to a Request for Quote or 

Indication of Interest for such a purpose. This prohibition on non-competitive transactions shall 

not apply to transactions contemplated in Rules 512(b) and (c) and 515(b) and Chapter 6, or to

Permitted Transactions executed via the RFQ functionality of the Trading System.

Rule 506. Market Manipulation Prohibited

(a) No Person subject to the Company’s jurisdiction shall attempt to manipulate or 

manipulate the price in any Contract, including, without limitation, engaging in activity in 

violation of CEA sections 9(a)(2) and 4c(a)(5) and CFTC Regulations 180.1(a) and 180.2.

(b) Without limiting the generality of the foregoing, parties involved in the solicitation 

or negotiation of a Block Trade and parties that are privy to nonpublic information regarding a 
Information Classification: General

31

consummated Block Trade may not disclose such information to any other party prior to the 

reporting of the Block Trade by the Company except with the permission of the client and where 

it would be required to facilitate execution of the Block Trade, and may not trade in the same 

product or closely-related product for the purpose of taking advantage of such information. 

Rule 507. Disruptive Trading Practices Prohibited

No Person subject to the Company’s jurisdiction shall engage in any trading practice or 

conduct that constitutes a “disruptive trading practice,” as such term is described either in 

Section 4c(a)(5) of the CEA or in interpretive guidance issued by the CFTC, in relation to the 

trading of any Contract. Conduct prohibited under this Rule 507 includes: violating bids or offers; 

demonstrating intentional or reckless disregard for the orderly execution of transactions during the 

closing period; activity that is, or 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); and the 

entry of data or other information into the Trading System, including Orders, Requests for Quote 

and Indications of Interest, 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. 

Rule 508. Prohibition of Misstatements

No Person subject to the Company’s jurisdiction shall make a misstatement of a material 

fact to the Company, including any Committee, Disciplinary Panel or Appeal Panel, or to the 

Regulatory Services Provider, or knowingly omit to state a material fact necessary in order to make 

the statements made, in the light of the circumstances under which they were made, not misleading.

Rule 509. Misuse of the Trading System

Misuse of the Trading System is strictly prohibited. No Person subject to the Company’s 

jurisdiction shall (i) permit unauthorized use of the Trading System; (ii) assist any Person in 

obtaining unauthorized access to the Trading System; (iii) trade in any Swap on the Trading 

System without an agreement and an established account in good standing with a Clearing Firm; 

(iv) interfere with the operation of the Trading System; (v) intercept or interfere with information 

provided by or to the Trading System; or (vi) in any way use the Trading System in a manner 

contrary to the Rules.

Rule 510. Financial or Other Incentive Programs

The Company may from time to time establish programs that provide Participants with 

financial or other incentives for meeting trading volume, liquidity or other thresholds as may be 

established by the Company.

Rule 511. Withholding of Customer Orders Prohibited; Priority of 

Customer Orders

(a) Customer Orders (other than a Customer Order allowing discretion as to time and 

price) must be entered into the Trading System as soon as practicable following receipt and in the 

sequence in which they were received by a Participant or Authorized Trader, as applicable. A 
Information Classification: General

32

Person that receives a Customer Order shall electronically record the time when such Customer 

Order was received. 

(b) No Person shall withhold or withdraw from the market any Customer Order, or any 

part of a Customer Order, for the benefit of any Person other than the Customer for whom such 

Person is placing the Customer Order. No Person shall knowingly enter an Order or submit a 

Request for Quote into the Trading System for its own account, an account in which it has a direct 

or indirect financial interest, or an account over which it has discretionary trading authority (other 

than an Order allowing discretion as to time and price) when such Person is in possession of a 

Customer Order for the same Contract that can be but has not been submitted to the Trading 

System.

(c) Nothing in this Rule 511 shall limit the ability of an “eligible account manager” to 

bunch Orders in accordance with CFTC Regulation 1.35(b)(5).

Rule 512. Handling of Customer Orders

(a) Except as provided in paragraphs (b) and (c), no Person in possession of a Customer 

Order shall knowingly take, directly or indirectly, the opposite side of such Customer Order on the 

Trading System’s Order Book for its own account, an account in which it has a direct or indirect 

financial interest, or an account over which it has discretionary trading authority.

(b) A Person may knowingly trade on the Trading System’s Order Book against a 

Customer Order for its own account, an account in which it has a direct or indirect financial 

interest, or an account over which it has discretionary trading authority, if the Customer Order has 

been entered into the Trading System’s Order Book as promptly as practicable after receipt of the 

Customer Order and has been exposed on the Trading System’s Order Book for a minimum of 

fifteen (15) seconds.

(c) Except as provided in paragraph (d), opposite Orders for different beneficial owners 

may not knowingly be simultaneously entered into the Trading System’s Order Book by an 

Authorized User on behalf of a Participant or Authorized Trader with discretion over both accounts 

unless one Order is exposed to the marketplace for a minimum of fifteen (15) seconds.

(d) A Customer Order allowing for price and/or time discretion may be knowingly 

entered into the Trading System’s Order Book opposite another Order for a different beneficial 

owner, entered by the same Person only if it is entered immediately upon receipt and one of the 

orders has been exposed to the market for a minimum of fifteen (15) seconds.

(e) The Company may adjust the fifteen (15) second time delay required under Rule

512(c) for a given Contract, based upon such Contract’s liquidity and other product-specific 

considerations, provided however that any amended time delay shall provide Participants, 

Authorized Traders and Authorized Users sufficient time to have a meaningful opportunity to 

execute against such Order.
Information Classification: General

33

Rule 513. Disclosing Orders and Requests for Quotes Prohibited; PostTrade Anonymity

(a) No Person subject to the Company’s jurisdiction shall disclose the terms of an 

Order, Request for Quote or Indication of Interest prior to its entry into the Trading System, except 

to a Company Official, the Regulatory Services Provider or a Government Agency, and no Person 

subject to the Company’s jurisdiction shall solicit or induce another Person to disclose such 

information.

(b) The foregoing shall not apply to pre-execution communications conducted in 

accordance with Rule 515(b), to Permitted Transactions executed via RFQ, to Block Trades, to 

statements of opinion, or to indications of the price at which a market may open or trade.

(c) No Person shall disclose, directly or indirectly, including through a third-party

service provider, the identity of a counterparty for Swaps that are intended to be cleared and are

executed, pre-arranged or pre-negotiated anonymously on or pursuant Rules.

Rule 514. Wash Sales Prohibited

No Person subject to the Company’s jurisdiction shall buy and sell a Contract, place or 

accept buy and sell Orders or initiate RFQs in the same Contract, or knowingly execute or 

accommodate the execution of such Orders or RFQs by direct or indirect means, if the Person 

knows or reasonably should know that the purpose of the transactions is to avoid taking a bona 

fide market position exposed to market risk. Buy and sell Orders for different accounts with 

common beneficial ownership that are entered with the intent to negate market risk or price 

competition shall also be deemed to violate this Rule. 

Rule 515. “Moneypassing,” Prearranged, Pre-Negotiated and 

Noncompetitive Transactions Prohibited

(a) No Person subject to the Company’s jurisdiction may enter Orders or Requests for 

Quote the purpose of which is to enter into Contracts with a resulting profit to one account and a 

loss to the other account but no net change in the open positions in either account, commonly 

known as a “money pass.”

(b) No Person subject to the Company’s jurisdiction shall prearrange or pre-negotiate 

any purchase or sale or noncompetitively execute any Required Transaction on the Trading 

System. Notwithstanding the foregoing, a Person may engage in pre-execution communications 

with regard to Required Transactions executed or to be executed on the Trading System if one 

party (the first party) wishes to be assured that a contra party (the second party) will take the 

opposite side of the first party’s Order, subject to the following restrictions:

(1) A party may not engage in pre-execution communications with other market 

participants on behalf of another party unless the party for whose benefit the trade is 

being made has previously agreed to permit such communications.
Information Classification: General

34

(2) Parties to pre-execution communications shall not disclose to a non-party 

the details of such communications or enter an Order to take advantage of information 

conveyed during such communications except in accordance with this Rule.

(3) With regard to transactions to be executed on the Order Book, the first 

party’s Order must be entered into the Order Book first, and the second party’s Order 

may not be entered into the Trading System until a period of fifteen (15) seconds has 

elapsed from the time of entry of the first Order. 

(4) Each such Order crossed on the Order Book will be processed and matched 

separately and the Company does not guarantee that the first and second party’s Orders 

will be matched with each other or that both Orders will be executed.

Rule 516. Responsibility for Customer Orders

A Participant, Authorized Trader or Authorized User may not directly or indirectly 

guarantee the execution of a Customer Order or any of its terms such as the quantity or price and 

may only report an execution that has been effected through the Trading System or has been 

executed pursuant to Chapter 6. This Rule shall not be construed to prevent a Participant or 

Authorized Trader from assuming or sharing in the losses resulting from an error or the 

mishandling of a Customer Order.

Rule 517. Discretionary Customer Orders

No Person shall submit a discretionary Customer Order to the Trading System without the 

prior written consent of such Customer to the exercise of such discretion. A Customer Order that 

solely gives a Participant, Authorized Trader or Authorized User time and price discretion shall 

not be subject to this Rule.

Rule 518. Recordkeeping; Audit Trail

(a) Each Person entering an Order or Indication of Interest into the Trading System or 

originating or responding to a Request for Quote shall include with such Order, Indication of 

Interest or Request for Quote such information as may be required by the Company, including, to 

the extent applicable, the legal entity identifier assigned to each party to a Contract and to each 

party for whom an Order or Indication of Interest is submitted or Request for Quote is originated 

or responded to. If a Person receives a Customer Order that cannot be immediately entered into 

the Trading System or as to which such Person has been given time and price discretion, such 

Person shall create an electronic record that identifies the Customer from whom the Customer 

Order has been received, including an electronic timestamp reflecting the date and time (to the 

nearest second) of receipt.

(b) Participants that provide connectivity to the Trading System to Authorized Traders, 

DMA Customers or other third parties are responsible for maintaining or causing such Authorized 
Information Classification: General

35

Traders, DMA Customers or other third parties to maintain a routing/front-end audit trail for all 

Orders, Indications of Interest and Requests for Quotes, including entry, modification, cancellation 

and responses to such messages, entered into or transmitted to the Trading System through any 

gateway to the Trading System, including the times thereof to the highest level of precision 

achievable by the Participant’s operating system, but at least to the nearest second (“Audit Trail”). 

The Audit Trail must be retained in a form and manner that ensures the authenticity and reliability 

of these records. 

(1) Participants shall maintain, or shall cause Authorized Traders, DMA 

Customers and other third parties to whom they have provided connectivity to the 

Trading System to maintain, Audit Trail data in the form and manner required by CFTC 

Regulations and in accordance with such additional requirements as may be established 

by the Company. Participants must have the ability to produce such data, or cause such 

data to be produced, in a reasonable form and medium to be specified in any request of 

the Market Regulation Department.

(2) A Participant whose Customer is itself a Participant may agree with such 

Customer that it is the Customer’s obligation to maintain the Audit Trail for such 

Customer’s Orders, Indications of Interest and Requests for Quotes. Any such agreement 

shall be in writing, a copy of which shall be provided to the Market Regulation 

Department upon request. 

(c) A suspense account may be used at the time of entry of an Order or Request for 

Quote provided that a contemporaneous electronic or written record of the Order or Request for 

Quote with the account designation is made, time-stamped and maintained in accordance with this 

Rule 518, and provided that the correct account designation is provided to the Clearing Firm prior 

to the end of the trading day. A suspense account may also be used at the time of entry for bunched 

Orders or Requests for Quote that are eligible for post-trade allocation and that are executed and

allocated in accordance with CFTC Regulation 1.35(b)(5). 

(d) A Person must include the customer type indicator (“CTI”) code with each Order 

and Request for Quote. The CTI codes are as follows:

(1) CTI 1 - Transactions initiated and executed by a Participant or Authorized 

Trader for its own account, for an account it controls or for an account in which it has an 

ownership or financial interest.

(2) CTI 2 - Transactions executed for the proprietary account (as such term is 

defined in CFTC Regulation 1.3(y)) of a Participant, Authorized Trader or Clearing Firm.

(3) CTI 3 - Transactions in which a Participant, Authorized Trader or Authorized User 

is trading (i) for the personal account of another Participant, Authorized Trader or Authorized 

User, (ii) for an account that is controlled by such other Participant, Authorized Trader or 

Authorized User, or (iii) for an account in which such other Participant, Authorized Trader or 

Authorized User has an ownership or financial interest.

(4) CTI 4 - Any transaction which is not characterized by CTIs 1, 2 or 3.
Information Classification: General

36

(e) The Company will enforce the audit trail and recordkeeping requirements set forth 

in this Rule 518 through at least annual reviews of all Participants subject to the requirements of 

this Rule 518 to verify such Participants’ compliance with the applicable requirements of this Rule 

518.

Rule 519. Position Accountability

A Person who holds or controls aggregate positions in any Swap in excess of the applicable

position accountability levels, if any, set forth in Rule 523(c) shall:

(a) upon request by the Market Regulation Department, provide in a timely manner 

information regarding the nature of the position, trading strategy, and hedging information, if 

applicable; and

(b) if so ordered by the Market Regulation Department, not further increase positions 

that exceed the position accountability levels specified in Rule 523(c).

Rule 520. Position Limits

The Company may, pursuant to Rule 523(a), establish position limits for one or more 

Contracts, which, if and when established will be set forth in Rule 523(c), and grant exemptions 

from position limits, in accordance with CFTC Regulations. For any Contract that is subject to a 

position limit established by the CFTC pursuant to section 4a(a) of the CEA, the Company shall: 

(a) set its position limitation at a level no higher than the CFTC limitation and (b) monitor positions 

established on the Trading System for compliance with the limit set by the CFTC and the limit, if 

any, set by the Company. A Person seeking an exemption from position limits must apply to the 

Market Regulation Department in the form and manner required by the Company. 

Rule 521. Position Information

Without limiting any other rights of the Company under these Rules or otherwise, the 

Company shall have the right to request position and trading information in respect of a given 

Contract from any Participant, Authorized Trader or Authorized User that has a position in such 

Contract, or whose Customer has a position in such Contract, at or above the applicable position 

accountability level.

Rule 522. Aggregation of Positions

For purposes of Rules 519, 520 and 521, positions in Contracts shall be aggregated in 

accordance with CFTC Regulations.
Information Classification: General

37

Rule 523. Position Limits and Position Accountability Levels

(a) To reduce the potential threat of market manipulation or congestion, the Company 

shall adopt for each Contract, as necessary and appropriate, position limitations or position 

accountability levels for speculators.

(b) The position limits and position accountability levels for Swaps will be calculated 

on a net basis. SwapEx will enforce position limits and position accountability levels only for 

Contracts executed on the Trading System and Block Trades executed pursuant to Chapter 6 of the 

Rules.

(c) [Reserved.]

Rule 524. Operation of the Trading System

The following is a summary of the execution methods and credit and risk limit functionality 

available on the Trading System. It is not intended to provide a comprehensive description of the 

operation of the Trading System or the execution methods and/or credit and risk functionality 

available thereon. Certain execution methods may not be available for certain Contracts (e.g., 

Contracts that are not cleared, Contracts in certain product types, etc.). Additional information 

with respect to the operation of the Trading System, the execution methods and credit and risk 

functionality is provided in the applicable user guide and other specific information that the 

Company may make available to Participants, Authorized Traders and Authorized Users. 

(a) Execution Methods for Required Transactions:

(1) Order Book. The Trading System’s Central Limit Order Book functionality 

uses a price/time algorithm to match Orders that are eligible to be matched. Whether an 

Order is eligible to be matched depends on a number of factors including, the order type 

and expiry type and, if applicable, credit and/or risk limits established for transactions 

effected through the Trading System.

(b) Execution Methods for Permitted Transactions. For Permitted Transactions, the 

Trading System will provide the execution method as described in paragraph (a)(1) above and, for 

certain Permitted Transactions, will also provide two request for quote (“Request for Quote” or 

“RFQ”) execution styles: Standard RFQ and Reverse RFQ, as described in in paragraphs (b)(1) and 

(b)(2), respectively, below. In addition, the Trading System may provide various other execution 

methods for Permitted Transactions as notified by the Company to Participants and Authorized 

Traders from time to time. A Permitted Transaction will be deemed executed on the Trading System 

upon the Company providing a record of the terms of an executed transaction to each counterparty 

as provided in Rule 525.

(1) Standard RFQ. Through the Standard RFQ functionality, a Person (the 

“Taker”) may submit an RFQ to certain other Persons (each a “Maker”) to which all such 

Makers may respond. 
Information Classification: General

38

(i) A Taker may submit a Request for Quote for a Permitted 

Transaction that is a Cleared Contract through the Standard RFQ functionality to 

any or all Participants and/or Authorized Traders who have indicated to the 

Company in writing that they intend to act as “RFQ Makers” on the Standard RFQ 

functionality; provided that the Taker and each such Participant or Authorized 

Trader have clearing arrangements at the same Derivatives Clearing Organization 

and have available credit.

(ii) A Taker may submit a Request for Quote for a Permitted 

Transaction that is not a Cleared Contract through the Standard RFQ functionality 

to any or all Participants and/or Authorized Traders, provided that both the Taker 

and each such Participant or Authorized Trader have indicated to the Company in 

writing that they are willing to transact with each other via the Standard RFQ 

functionality and, if a credit relationship has been established between the Taker 

and a Participant or Authorized Trader pursuant to paragraph (c) below, there is 

available credit. Through the Standard RFQ functionality, the Taker may submit a 

Request for Quote composed of two Contracts (that are not Cleared Contracts) for 

the same currency pair but with different fixing dates and maturity/valuation dates. 

(iii) Makers may choose to submit firm or indicative quotes via the 

Standard RFQ functionality. A Maker who provides an indicative quote in response 

to an RFQ in the Standard RFQ functionality is provided the opportunity, during a 

set period of time (the “Standard RFQ Review Period”), after a Taker has accepted 

such indicative price quote, to confirm that it remains willing to execute a 

transaction at that quoted rate. During the Standard RFQ Review Period, (1) the 

RFQ status will be set to “pending” and the Taker can no longer make any edits to 

it and (2) the Maker is not permitted to send the same price quote to any other 

market participant on the Trading System. If the quote provided is confirmed by 

the Maker prior to expiration of the applicable Standard RFQ Review Period, the 

status of the RFQ will be updated to reflect completion of the transaction at the 

quoted rate. If the Maker rejects or otherwise does not confirm acceptance of the 

transaction within the applicable Standard RFQ Review Period noted above, (1) the 

Trading System will not execute a transaction between the Maker and Taker and 

(2) the RFQ will resume and the Taker can select another quoted rate to accept.

(2) Reverse RFQ. Through the Reverse RFQ functionality, a Person (the 

“Sender”) may stream quotes for certain Permitted Transactions that are not Cleared 

Contracts to any or all Participants and/or Authorized Traders (each a “Recipient”)

provided that both the Sender and each such Participant or Authorized Trader have 

indicated to the Company in writing that they are willing to transact with each other via 

the Reverse RFQ functionality and, if a credit relationship has been established between 

the Sender and a Participant or Authorized Trader pursuant to paragraph (c) below, there 

is available credit. The Recipient of such quote may indicate its desire to accept a quote 
Information Classification: General

39

from the Sender, and such acceptance will be communicated to the Sender, who then will 

have the opportunity, during a set period of time (the “Reverse RFQ Review Period”) to 

confirm that it remains willing to execute a transaction at that quoted rate. During the 

Reverse RFQ Review Period, (1) the RFQ status will be set to “pending” and the 

Recipient can no longer make any edits to it and (2) the Sender is not permitted to stream 

the same price quote to any other market participant on the Trading Platform. If the quote 

provided is confirmed by the Sender prior to expiration of the applicable Reverse RFQ 

Review Period, the status of the RFQ will be updated to reflect completion of the 

transaction at the quoted rate. If the Sender rejects or otherwise does not confirm 

acceptance of the transaction within the applicable Reverse RFQ Review Period noted 

above, the Trading System will not execute a transaction between the Sender and the

Recipient of the quote. 

(c) Credit and Risk Limits. The Trading System permits Participants, Authorized 

Traders and Clearing Firms to input and establish credit and/or risk limits on the Trading System. 

The Company may also require Participants, Authorized Traders and/or Clearing Firms to input 

and establish credit and/or risk limits on the Trading System. A Person establishing credit and/or 

risk limits on the Trading System shall be solely responsible for evaluating the creditworthiness of 

each Person for whom it establishes such limit and for determining whether such Person is in 

compliance with any such limits with respect to its activity on the Trading System. The Company 

shall not have any responsibility for compliance with credit limits by a Participant, Authorized 

Trader or Authorized User, notwithstanding that such credit limits may have been input into the 

Trading System, or for monitoring, maintaining or enforcing any such credit limits.

Rule 525. Confirmation of Transactions

(a) The Company will provide each counterparty to a transaction that is entered into 

on or pursuant to the rules of the Company with a written record of all of the terms of the transaction

(a “Confirmation”) which shall legally supersede any previous agreement and serve as a 

confirmation of the transaction and the Trade Communication will state the same. The confirmation 

of all terms of the transaction shall take place at the same time as execution. 

(b) With respect to a transaction in a Contract that is not a Cleared Contract, a 

Confirmation shall, for purposes of CFTC Regulation 37.6(b), consist of the Trade Communication 

and, in accordance with and to the extent permitted by CFTC No-Action Letter 17-17 (expiring on 

the effective date of any changes in the CFTC Regulation) and for so long as the applicable relief 

provided therein is effective, the Terms Incorporated by Reference. In the event of any conflict 

between the Trade Communication and the Terms Incorporated by Reference, the Trade 

Communication shall prevail to the extent of any inconsistency. “Trade Communication” means 

the written communication containing the economic terms specific to a transaction provided by the 

Company to the Participant(s) and/or Authorized Trader(s) who executed such transaction on the 

Trading System and shall be deemed to include the applicable Contract Specifications. “Terms 

Incorporated by Reference” means the documents and agreements between the counterparties to 

the transaction (including, without limitation, ISDA master agreements, other master agreements, 

terms supplements, master confirmation agreements and incorporated industry definitions) 

governing such transactions existing at the time of execution of the transaction. The Participant(s) 

and/or Authorized Trader(s) must, as applicable, maintain in accordance with Rule 401(a)(8) copies 
Information Classification: General

40

of all Terms Incorporated by Reference and, for purposes of compliance with these Rules and CFTC 

Regulations shall provide the Company with copies of such Terms Incorporated by Reference 

promptly upon request by the Company. 

Rule 526. Trade Cancellations, Error Correction and Price Adjustments

(a) Trade Cancellations and Error Corrections

(1) Except as provided in Rule 526(a)(2) below, if a transaction is submitted to, 

but not accepted for clearing by, a Derivatives Clearing Organization, such transaction 

shall be deemed to be void ab initio following receipt of a clearing rejection notice from 

the Derivatives Clearing Organization and neither of the parties thereto nor the Company 

shall have any further responsibility for such transaction under these Rules. 

(2) A Participant shall promptly notify the Company, by sending an e-mail to 

support@swapex.com, of any trade executed on or subject to the Rules that contains an 

operational or clerical error (an “Error Trade”), and, as applicable, any offsetting and 

correcting trades. The Participants that are counterparties to the Error Trade shall be 

permitted to enter into an offsetting or correcting trade subject to the following: 

(i) If the Error Trade is not a Cleared Contract, the Company shall 

permit (x) the original counterparties to the Error Trade (or, if the wrong legal entity 

was assigned as a counterparty to the original transaction, the intended 

counterparties) to enter into a prearranged transaction that corrects the errors in the 

Error Trade or (y) the original counterparties to the Error Trade to enter into a 

prearranged transaction that offsets the Error Trade, in each case, using any 

applicable execution method described in Rule 524 above. 

(ii) If the Error Trade is a Cleared Contract rejected from clearing by a 

Derivatives Clearing Organization , the Company shall permit the original 

counterparties to the Error Trade to enter into a new transaction, with terms and 

conditions that match the terms and conditions of the original transaction, other 

than any such error or omission and time of execution using any applicable 

execution method as described in Rule 524 above and submit such new transaction

for clearing. Execution of a new trade and resubmission of such trade to clearing 

pursuant to this Rule 526(a)(2)(ii) must occur as quickly as technologically 

practicable after the relevant Clearing Firm(s) receipt of notice of the rejection by 

the Derivatives Clearing Organization, but, in any event, no later than sixty (60) 

minutes from issuance of such notice. If the resubmitted transaction is rejected 

from clearing, such transaction will be void ab initio and shall be cancelled by the 

Company. The counterparties may not resubmit a new transaction a second time. 

The procedure set forth in this Rule 526(a)(2)(ii) is not available with respect to 

transactions that are rejected from clearing for credit reasons. 
Information Classification: General

41

(iii) If the Error Trade is a Cleared Contract that has been cleared, the 

Company shall permit the original counterparties to the Error Trade to enter into a 

prearranged transaction that offsets the transaction carried on the books of the 

relevant Derivatives Clearing Organization using any applicable execution method 

as described in Rule 524 above. The Company shall also permit the original 

counterparties (or, if the wrong legal entity was assigned as a counterparty to the 

original transaction, the intended counterparties) to enter into a prearranged 

transaction that corrects the errors in the Error Trade using any applicable execution 

method as described in Rule 524 above. Any offsetting or correcting transaction

executed pursuant to this Rule 526(a)(2)(iii) must be executed and submitted for 

clearing not later than three days after the three days after the relevant Derivatives

Clearing Organization accepted the Error Trade for clearing. If the offsetting or 

correcting transaction is rejected from clearing, such transaction will be void ab 

initio and shall be cancelled by the Company. The counterparties may not resubmit 

a new transaction a second time.

(iv) Except as otherwise required under the CEA or CFTC Regulation, 

the Company shall not directly or indirectly, including through a third-party service 

provider, disclose the identity of any counterparty to a Cleared Contract that has 

been executed anonymously. Participants shall not directly or indirectly, including 

through a third-party service provider, disclose the identity of any counterparty to 

a Cleared Contract that has been executed anonymously. 

(3) No Participant, Authorized Trader or Customer or prospective Participant, 

Authorized Trader or Customer may enforce a Breakage Agreement with another 

Participant, Authorized Trader or Customer, or require such an agreement as a condition 

to trading with such other Participant, Authorized Trader or Customer on or pursuant to 

the Rules in respect of a Cleared Contract.

(b) Company Authority

(1) The Company has authority to adjust trade prices or cancel (bust) trades

when such action is necessary to mitigate market-disrupting events caused by the 

improper or erroneous use of the Trading System or by a malfunction or other 

technological error in the Trading System.

(2) Notwithstanding any other provision of this Rule 526, the Company may 

adjust trade prices or cancel any trade if the Company determines that allowing the trade 

to stand as executed may have a material, adverse effect on the integrity of the market.

(c) Review of Trades

(1) The Company may determine to review a trade based on its independent 

analysis of market activity or upon request for review by a Participant. A request for 

review must be made within fifteen (15) minutes of the execution of the trade.
Information Classification: General

42

(2) The Company shall determine whether or not a trade will be subject to 

review. In the absence of a timely request for review, during volatile market conditions, 

upon the release of significant news, or in any other circumstance in which the Company 

deems it to be appropriate, the Company may determine, in its sole discretion, that a trade 

shall not be subject to review. In addition, notwithstanding anything to the contrary

herein, any trade that is entered into pursuant to a Market Order or a Stop Loss Order or 

that has been accepted for clearing by a Derivatives Clearing Organization shall not be 

subject to review under this Rule 526(c) or adjustment or cancellation under Rule 526(d) 

or Rule 526(e). 

(3) Upon deciding to review a trade, the Company shall promptly issue an alert 

to all Participants via the Trading System or electronic mail indicating that the trade is 

under review.

(d) Price Adjustments and Trade Cancellation

(1) Company Review Procedures. In reviewing a trade, the Company shall first 

determine whether the trade price is within the relevant No-Bust Range for the contract, 

as set forth in paragraph (g). 

(2) Trade Price Inside the No-Bust Range. If the Company determines that the 

price of the trade is inside the No-Bust Range, the Company shall issue an alert indicating 

that the trade shall stand.

(3) Trade Price Outside the No-Bust Range. If the Company determines that a 

trade price is outside the No-Bust Range, the Company may cancel the trade if the 

Company determines (i) that the trade was the result of an error, (ii) that allowing the 

trade to stand as executed may have a material, adverse effect on the integrity of the 

market or (iii) that cancellation is necessary to mitigate market-disrupting events caused 

by the improper or erroneous use of the Trading System or by a malfunction or other 

technological error in the Trading System. The Company shall issue an alert regarding 

such cancellation.

(4) Trade Cancellations and Adjustments. Busted trade prices and any prices 

that have been adjusted shall be cancelled in the Company’s official record of time and 

sales. Trades that are price-adjusted shall be inserted in the time and sales record at the 

adjusted trade price.

(e) Alternative Resolution by Agreement of Parties.

(1) With the approval of the Company, parties to an uncleared trade that is 

price-adjusted may instead mutually agree to cancel the trade.
Information Classification: General

43

(2) With the approval of the Company, parties to an uncleared trade that is 

busted may instead mutually agree to price adjust the trade by cancelling the trade and 

reporting a new trade at the adjusted price.

(f) [Reserved.]

(g) No-Bust Ranges

Contracts No-Bust Ranges

Non-deliverable 

Foreign Exchange 

Forwards

An exchange rate off by a set number of “pips” (as such 

term is commonly understood in the foreign exchange 

marketplace) from the determination of fair market value 

by the Company. The number of pips for the currency pairs 

available for trading on the Trading System are set forth in 

the table below:

Currency Pair Pips

USD/ARS 100

USD/BRL 100

USD/CLP 150

USD/CNY 100

USD/COP 50

USD/IDR 200
Information Classification: General

44

Contracts No-Bust Ranges

Non-deliverable 

Foreign Exchange 

Forwards

An exchange rate off by a set number of “pips” (as such 

term is commonly understood in the foreign exchange 

marketplace) from the determination of fair market value 

by the Company. The number of pips for the currency pairs 

available for trading on the Trading System are set forth in 

the table below:

Currency Pair Pips

USD/INR 30

USD/KRW 5

USD/MYR 150

USD/PEN 200

USD/PHP 20

USD/RUB 10

USD/TWD 10

AUD/USD 20

USD/CAD 20

USD/CHF 30

USD/CZK 150

USD/DKK 100

EUR/USD 20

GBP/USD 20

USD/HKD 60

USD/JPY 20

USD/MXN 300

USD/NOK 200

NZD/USD 60

USD/SEK 200

USD/SGD 50
Information Classification: General

45

USD/THB 20

USD/TRY 50

Contracts No-Bust Ranges

Non-deliverable 

Foreign Exchange 

Forwards (continued) Currency Pair Pips

USD/ZAR 200

AUD/ARS 100

AUD/BRL 100

AUD/CLP 150

AUD/CNY 100

AUD/COP 50

AUD/IDR 200

AUD/INR 30

AUD/KRW 5

AUD/MYR 150

AUD/PEN 200

AUD/PHP 20

AUD/RUB 10

AUD/TWD 10

CAD/ARS 100

CAD/BRL 100

CAD /CLP 150

CAD/CNY 100

CAD/COP 50

CAD/IDR 200

CAD/INR 30

CAD/KRW 5

CAD/MYR 150

CAD/PEN 200
Information Classification: General

46

Contracts No-Bust Ranges

Non-deliverable 

Foreign Exchange 

Forwards (continued) Currency Pair Pips

CAD/PHP 20

CAD/RUB 10

CAD/TWD 10

EUR/ARS 100

EUR/BRL 100

EUR/CLP 150

EUR/CNY 100

EUR/COP 50

EUR/IDR 200

EUR/INR 30

EUR/KRW 5

EUR/MYR 150

EUR/PEN 200

EUR/PHP 20

EUR/RUB 10

EUR/TWD 10

GBP/ARS 100

GBP/BRL 100

GBP/CLP 150

GBP/CNY 100

GBP/COP 50

GBP/IDR 200

GBP/INR 30

GBP/KRW 5

GBP/MYR 150
Information Classification: General

47

GBP/PEN 200
Information Classification: General

48

Contracts No-Bust Ranges

Non-deliverable 

Foreign Exchange 

Forwards (continued) Currency Pair Pips

GBP/PHP 20

GBP/RUB 10

GBP/TWD 10

JPY/ARS 10,000

JPY/BRL 10,000

JPY/CLP 15,000

JPY/CNY 10,000

JPY/COP 5,000

JPY/IDR 20,000

JPY/INR 3,000

JPY/KRW 500

JPY/MYR 15,000

JPY/PEN 20,000

JPY/PHP 2,000

JPY/RUB 1,000

JPY/TWD 1,000
Information Classification: General

49

(h) Company Determinations Final

All determinations and decisions of the Company with respect to the foregoing 

matters shall be final.

(i) Reporting

The Company shall report to the Swap Data Repository any cancellation and/or 

new trade entered into pursuant to this Rule 526.

Rule 527. Limitation of Liability; No Warranties

(a) EXCEPT IN INSTANCES IN WHICH THE DISCLAIMING PARTY (DEFINED BELOW) HAS 

BEEN FINALLY ADJUDICATED BY A COURT OF COMPETENT JURISDICTION TO HAVE ENGAGED IN

FRAUD, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, IN WHICH CASE THE DISCLAIMING PARTY 

FOUND TO HAVE ENGAGED IN SUCH CONDUCT CANNOT AVAIL ITSELF OF THE PROTECTIONS IN THIS 

RULE 527 AND WITHOUT LIMITING THE COMPANY’S INDEMNIFICATION OBLIGATIONS UNDER RULE 

914, NEITHER THE COMPANY, NOR ANY AFFILIATE OF THE COMPANY, NOR ANY OF THEIR RESPECTIVE 

MANAGERS, OFFICERS, DIRECTORS, EMPLOYEES, EQUITYHOLDERS, AGENTS, CONSULTANTS OR 

SERVICE PROVIDERS (INCLUDING ANY REGULATORY SERVICES PROVIDER), NOR ANY MEMBER OF 

ANY COMMITTEE OR OTHER GOVERNING BODY OF ANY AFFILIATE OF THE COMPANY (EACH OF THE 

FOREGOING, AS APPLICABLE, THE “DISCLAIMING PARTY” AND, COLLECTIVELY, “DISCLAIMING 

PARTIES”), SHALL BE LIABLE TO ANY PERSON FOR ANY LOSSES ARISING OUT OF OR IN CONNECTION 

WITH:

(1) ANY FAILURE, MALFUNCTION, FAULT IN DELIVERY, DELAY, OMISSION,

SUSPENSION, INACCURACY, INTERRUPTION, TERMINATION, OR ANY OTHER EVENT, IN 

CONNECTION WITH THE FURNISHING, PERFORMANCE, OPERATION, MAINTENANCE, USE OF 

OR INABILITY TO USE ALL OR ANY PART OF THE TRADING SYSTEM OR ANY OTHER SYSTEMS 

AND SERVICES OF THE COMPANY, OR SERVICES, EQUIPMENT OR FACILITIES USED TO 

SUPPORT SUCH SYSTEMS AND SERVICES, INCLUDING ELECTRONIC ORDER ENTRY AND 

DELIVERY, TRADING THROUGH ANY ELECTRONIC MEANS, ELECTRONIC COMMUNICATION 

OF MARKET DATA OR INFORMATION, WORKSTATIONS USED BY CLEARING FIRMS,

PARTICIPANTS, AUTHORIZED TRADERS, AND AUTHORIZED USERS, PRICE REPORTING 

SYSTEMS AND ANY AND ALL TERMINALS, COMMUNICATIONS NETWORKS, CENTRAL 

COMPUTERS, SOFTWARE, HARDWARE AND FIRMWARE RELATING THERETO; OR

(2) ANY FAILURE OR MALFUNCTION, FAULT IN DELIVERY, DELAY, OMISSION,

SUSPENSION, INACCURACY, INTERRUPTION OR TERMINATION, OR ANY OTHER EVENT, OF 

ANY SYSTEM OR SERVICE OF THE COMPANY, OR SERVICES, EQUIPMENT OR FACILITIES USED 

TO SUPPORT SUCH SYSTEMS OR SERVICES, CAUSED BY ANY THIRD PARTIES INCLUDING, BUT 

NOT LIMITED TO, INDEPENDENT SOFTWARE VENDORS AND NETWORK PROVIDERS; OR

(3) ANY ERRORS OR INACCURACIES IN INFORMATION PROVIDED BY THE 

COMPANY OR ANY OF THE COMPANY’S SYSTEMS, SERVICES OR FACILITIES; OR
Information Classification: General

50

(4) ANY UNAUTHORIZED ACCESS TO OR UNAUTHORIZED USE OF ANY OF THE 

COMPANY’S SYSTEMS, SERVICES, EQUIPMENT OR FACILITIES BY ANY PERSON.

THE FOREGOING LIMITATION OF LIABILITY SHALL APPLY WHETHER A CLAIM IS BASED ON 

BREACH OF CONTRACT, TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY, NEGLIGENT 

MISREPRESENTATION, RESTITUTION, BREACH OF STATUTORY DUTY, BREACH OF WARRANTY OR 

OTHERWISE AND WHETHER THE CLAIM IS BROUGHT DIRECTLY OR AS A THIRD PARTY CLAIM.

(b) THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS PROVIDED 

BY THE COMPANY OR ANY OTHER DISCLAIMING PARTIES, RELATING TO ANY SYSTEMS OR SERVICES 

OF THE COMPANY OR SERVICES, EQUIPMENT OR FACILITIES USED TO SUPPORT SUCH SYSTEMS OR 

SERVICES, INCLUDING THE TRADING SYSTEM AND THE COMPANY HEREBY SPECIFICALLY DISCLAIMS,

OVERRIDES AND EXCLUDES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL IMPLIED WARRANTIES 

OF MERCHANTABILITY, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE AND ALL 

OTHER WARRANTIES, CONDITIONS AND REPRESENTATIONS WITH RESPECT TO THE SERVICES,

WHETHER EXPRESS, IMPLIED OR STATUTORY, ARISING BY LAW, CUSTOM, PRIOR ORAL OR WRITTEN 

STATEMENTS BY THE COMPANY OR ANY OTHER DISCLAIMING PARTY OR OTHERWISE (INCLUDING BUT 

NOT LIMITED TO, AS TO TITLE, SATISFACTORY QUALITY, ACCURACY, COMPLETENESS,

UNINTERRUPTED USE, NON-INFRINGEMENT, TIMELINESS, TRUTHFULNESS, SEQUENCE AND ANY 

IMPLIED WARRANTIES, CONDITIONS AND OTHER CONTRACTUAL TERMS ARISING FROM TRANSACTION 

USAGE, COURSE OF DEALING OR COURSE OF PERFORMANCE) RELATING TO ANY SYSTEMS OR 

SERVICES OF THE COMPANY OR SERVICES, EQUIPMENT OR FACILITIES USED TO SUPPORT SUCH 

SYSTEMS OR SERVICES, INCLUDING THE TRADING SYSTEM.

(c) THE COMPANY’S TOTAL COMBINED AGGREGATE LIABILITIES SHALL NOT EXCEED 

$100,000 FOR ALL LOSSES FROM ALL CAUSES SUFFERED BY ALL PERSONS ON A SINGLE DAY;

$200,000 FOR ALL LOSSES SUFFERED BY ALL PERSONS FROM ALL CAUSES IN A SINGLE CALENDAR 

MONTH; AND $2,000,000 FOR ALL LOSSES FROM ALL CAUSES SUFFERED BY ALL PERSONS IN A SINGLE

CALENDAR YEAR. If the number of allowed claims arising out of any failures or malfunctions on a 

single day or single month cannot be fully satisfied because of the above dollar limitations, all 

such claims shall be limited to a pro rata share of the maximum amount for the respective period. 

In no event shall the total combined aggregate liability of the Disclaiming Parties for all claims 

arising out of any failures, malfunctions, faults in delivery, delays, omissions, suspensions, 

inaccuracies, interruptions, terminations or any other causes in connection with the furnishing, 

performance, operation, maintenance, use of or inability to use all or any part of any of the 

Company’s systems or services, or services, equipment or facilities used to support such systems 

or services, including the Trading System, or the negligence of the Company or any Disclaiming 

Party exceed $2,000,000 in any given calendar year. The limitations of liability in this Rule 527(c) 

shall not apply to the Company’s indemnification obligations under Rule 914.

(d) Under no circumstances shall the Company be liable to a Participant or any other 

Person for any indirect, special, incidental, consequential, exemplary loss or punitive damages of 

any kind, regardless of whether such liability is based on breach of contract, tort, strict liability, 
Information Classification: General

51

breach of warranties or otherwise, including any loss of revenue, loss of actual or anticipated 

profits, loss of contracts, loss of the use of money, loss of anticipated savings, loss of business, 

loss of opportunity, loss of market share, loss of goodwill, loss of reputation or loss of, damage to 

or corruption of data, however suffered or incurred, regardless of whether the Company has been 

advised of the possibility of such damages or whether such damages otherwise could have been 

foreseen or prevented.

(e) Under no circumstances shall the Company be liable for the acts, errors or 

omissions of any third party, including any data communication service, Swap Data Repository or 

Derivatives Clearing Organization.

(f) Any dispute arising out of the use of the systems or services of the Company or 

services, equipment, or facilities used to support such systems or services, including the Trading 

System, in which one or more Disclaiming Parties is a party shall be arbitrated pursuant to the 

Rules in Chapter 8, and references in Chapter 8 to a “Participant” shall, to the extent relevant, be 

deemed for such purpose to mean and include the Disclaiming Parties. Any such claim against a 

Disclaiming Party shall be brought within two (2) years from the time that a cause of action has 

accrued. This paragraph (f) shall in no way be construed to create a cause of action and shall not 

authorize an action that would otherwise be prohibited by the Rules. If for any reason, a court of 

competent jurisdiction finds that a dispute is not arbitrable, such dispute may be litigated only in 

accordance with Rule 912.

(g) For the avoidance of doubt, the limitations on liability in this Rule 527 do not 

change the Company’s obligations under the CEA or CFTC Regulations.

Rule 528. Swap Data Reporting

(a) The Company will report Reportable Swap Data (which Data shall include, but 

shall not be limited to, the actual notional or principal amount for a Swap) to a Swap Data 

Repository for each Contract executed on the Trading System or pursuant to the Rules as soon as 

technologically practicable following execution. The Company may provide Swap Transaction 

and Pricing Data to Participants and Authorized Traders no earlier than the time it transmits such 

information to a Swap Data Repository and in a form that does not disclose the identities, or 

otherwise facilitate identification, of the parties to the Contract.

(b) The Reporting Counterparty for each Contract executed on the Trading System 

shall be established pursuant to CFTC Regulation 45.8. If both counterparties are equal in the

hierarchy set out in CFTC Regulation 45.8 (for example, both are swap dealers), the Reporting 

Counterparty for such Contract shall be, with respect to foreign exchange Contracts, the seller of 

the currency that is higher in alphabetical order determined based on currency code (for example, 

in a USD/BRL trade, the seller of BRL would be the Reporting Counterparty because B is 

alphabetically higher than U).

(c) The Company has designated DTCC Data Repository (U.S.) LLC as the Swap Data 

Repository, to which it will report Reportable Swap Data in accordance with CFTC Regulations.

(d) Each Participant and Authorized Trader:
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(1) authorizes the Company to send Reportable Swap Data on its behalf and, if 

applicable, on behalf of its Customers to the relevant Swap Data Repository designated 

in accordance with Rule 528(c) and further agrees to take all such actions as are deemed 

necessary or required by such Swap Data Repository to facilitate or confirm such 

authorization; and

(2) consents to the maintenance of such Reportable Swap Data by the relevant 

Swap Data Repository designated in accordance with Rule 528(c).

(e) Each Participant, Authorized Trader and Authorized User that enters an Order, an 

Indication of Interest or a Request for Quote into the Trading System shall include with each such 

Order, an Indication of Interest or a Request for Quote the following information (to the extent 

such information is not provided by the Trading System):

(1) the legal entity identifier of such Participant or Authorized Trader;

(2) a yes/no indication of whether such Participant or Authorized Trader is a 

swap dealer with respect to the asset class of the Contract for which the Order, Indication 

of Interest or Request for Quote is placed;

(3) a yes/no indication of whether such Participant or Authorized Trader is a 

major swap participant with respect to the Contract for which the Order, Indication of 

Interest or Request for Quote is placed;

(4) a yes/no indication of whether such Participant or Authorized Trader is a 

financial entity as such term has been defined by the CFTC;

(5) a yes/no indication of whether such Participant or Authorized Trader is a 

U.S. person as such term has been defined by the CFTC; and

(6) if the Contract is a pre-allocation Swap:

(A) an indication that the Contract will be allocated; 

(B) the legal entity identifier of the agent;

if the Contract is a pre-allocation Swap, the Company shall transmit the unique 

swap identifier for such Contract to the Reporting Counterparty and to the agent.

(7) if the Contract is a post-allocation Swap:

(A) the legal entity identifier of the agent;

(B) an indication of whether the Contract is a post-allocation swap; and 
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(C) the unique swap identifier of the original transaction between the 

Reporting Counterparty and the agent.

Post-allocation Contracts shall be respectively effected and reported in 

accordance with the rules of the Derivatives Clearing Organization and Swap 

Data Repository and in accordance with CFTC Regulations.

(f) If the Company lists any multi-asset Swap for trading on the Trading Facility, the 

Company shall report Reportable Swap Data for such Swap to a single Swap Data Repository that 

accepts Swaps in the asset class treated as the primary asset class involved in the Swap. Without 

limiting the foregoing, the Company shall report all primary economic terms (as defined in CFTC 

Regulation 45.1) for each asset class involved in the Swap.

Rule 529. Updating Reportable Swap Data

Any Participant, Authorized Trader or Customer that discovers any error, omission or 

required amendment to Reportable Swap Data for a Contract submitted on its behalf shall promptly 

submit corrected data to the Company and, if the error or omission relates to a Block Trade, the 

counterparty to such Block Trade. The Company shall report any errors or omissions in any data 

that it previously reported to a Swap Data Repository as soon as technologically practicable after 

the discovery thereof.
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CHAPTER 6. BLOCK TRADES

Rule 601. Block Trades

(a) Block Trades shall be permitted to the extent consistent with CFTC Regulations, 

these Rules and any advisory notice or other rule (as defined in CFTC Regulation 40.1) 

implemented by the Company in accordance with Part 40 of the CFTC Regulations. The ability 

to transact via Block Trades is subject to the Company’s support of the relevant functionality. 

(b) The following shall govern Block Trades:

(1) The parties to a Block Trade must be Eligible Contract Participants, and a 

Block Trade must be in a notional or principal amount that is equal to or in excess of the 

appropriate minimum block size for such Swap as set forth in CFTC Regulation 43.6 

(including, as applicable, any currency conversion in accordance with CFTC Regulation 

43.6(h)(4) and Appendix F to Part 43 of CFTC Regulations). Orders for different 

accounts may not be aggregated to achieve the minimum block size, except that 

aggregation is permitted if done by a person who (x)(i) is registered as a commodity 

trading advisor under Section 4n of the CEA, or exempt from registration under the CEA, 

or a principal thereof, who has discretionary trading authority or directs client accounts, 

(ii) is an investment adviser who has discretionary trading authority or directs client 

accounts and satisfies the requirements set forth in CFTC Regulation 4.7(a)(2)(v); or (iii) 

is a foreign person who performs a similar role or has a similar function as the foregoing 

persons and is subject as such to foreign regulation; and (y) has more than $25 million in 

total assets under management.

(2) Spread trades may be executed as Block Trades, provided that the quantity 

of each leg of the spread meets the appropriate minimum block size for such Swap.

(3) A Participant or Authorized Trader must receive instructions from a 

Customer or obtain the Customer’s prior consent before entering into a Block Trade on 

behalf of that Customer.

(4) A Block Trade may only be executed pursuant to the Rules and Company 

Requirements and submitted to the Company if both counterparties to the trade are 

Participants, Authorized Traders or Customers of Participants or Authorized Traders and 

the Company offers the relevant functionality to support such submission.

(5) Both parties to a transaction that is intended to be treated as a Block Trade 

under CFTC Regulation 43.6 must notify the Company of their election to treat the 

transaction as a Block Trade. Both such parties shall report the actual notional or 

principal amount of the Block Trade and any other required information to the Company 

as soon as technologically practicable following the execution of the Block Trade, but in 

no event later than ten (10) minutes after the execution thereof. Such report must include 

the information required by the Company.
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(6) The Company shall transmit all Reportable Swap Data (including a 

notification of Block Trade election) to a Swap Data Repository as soon as 

technologically practicable following receipt of such data by the Company.

Rule 602. Time-Stamp Requirements for Block Trades

All Block Trades executed in accordance with Chapter 6 are subject to the following 

requirements.

(a) The record of each Block Trade maintained by the parties to the Block Trade 

pursuant to Rule 401(a)(8) shall include an electronic time-stamp reflecting the date and time of 

execution.

(b) The Company shall time-stamp the transaction and pricing data with the date and 

time (to the nearest second) that the Company receives such data from the party reporting the 

Block Trade and the date and time when the Company transmits such data to a Swap Data 

Repository. 
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CHAPTER 7. DISCIPLINARY RULES

Rule 701. General

(a) A Person subject to the Company’s jurisdiction shall be subject to this Chapter 7 if 

such Person is alleged to have violated, to have aided and abetted a violation of, to be violating, or 

to be about to violate, any Rule.

(b) The Company, through the Market Regulation Department and the Disciplinary 

Panel, will conduct Disciplinary Proceedings. The Market Regulation Department will maintain 

an enforcement staff that will prosecute violations in accordance with this Chapter 7. The 

enforcement staff shall not include Participants, Authorized Traders, Authorized Users, Customers

or Persons whose interests conflict with their enforcement duties. Members of the enforcement 

staff shall not operate under the direct control of any person with Trading Privileges. No member 

of the Market Regulation Department may be a Disciplinary Panel Member or Appeal Panel 

Member. Any reference to the Market Regulation Department in this Chapter 7 shall also be a 

reference to the enforcement staff.

(c) No Company Official, Director or Officer will interfere with or attempt to influence 

the process or resolution of any Disciplinary Proceeding, except to the extent provided under the 

Rules with respect to a Disciplinary Proceeding in which an Officer or Company Official is a 

member of the enforcement staff or a Director is a member of the relevant Disciplinary Panel or 

Appeal Panel.

(d) No Person subject to the Company’s jurisdiction may knowingly or intentionally 

impede or delay any Disciplinary Proceeding or any inquiry or investigation by the Market 

Regulation Department. 

(e) A Person who acts in violation of Rule 701(d) may be subject to summary 

suspension or other summary action in accordance with Rule 717.

(f) Any Person subject to the Company’s jurisdiction may be represented in a 

Disciplinary Proceeding by legal counsel or any other representative of its choosing at its own 

expense.

(g) Liability.

(1) The Company may hold a Participant liable for, and impose sanctions 

against such Participant, for such Participant’s own acts and omissions that constitute a 

violation of these Rules as well as for the acts and omissions of (i) such Participant’s 

Authorized Traders, Authorized Users and DMA Customers or (ii) a Person using the 

User ID of any of such Participant’s Authorized Users, in each case, that constitute a 

violation as if such violation were that of the Participant.

(2) The Company may hold an Authorized Trader liable for, and impose 

sanctions against such Authorized Trader, for such Authorized Trader’s own acts and 
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57

omissions that constitute a violation of these Rules as well as or for the acts and omissions 

of (i) such Authorized Trader’s Authorized Users or (ii) a Person using the User ID of 

any of such Authorized Trader’s Authorized Users, in each case, that constitute a 

violation as if such violation were that of the Authorized Trader.

(3) The Company may hold an Authorized User liable for, and impose 

sanctions against such Authorized User, for such Authorized User’s own acts and 

omissions that constitute a violation of these Rules, as well as or for the acts and 

omissions of a Person using such Authorized User’s User ID that constitute a violation 

as if such violation were that of the Authorized User.

(4) The Company may hold any Person subject to the Company’s jurisdiction 

liable for, and impose sanctions against such Person, for such Person’s own acts and 

omissions that constitute a violation of these Rules.

(h) Ex Parte Communications.

(1) A Person subject to a Disciplinary Proceeding (and any legal counsel or 

other representative of such Person) and the Market Regulation Department (and any 

legal counsel or other representative of the Market Regulation Department) shall not 

knowingly make or cause to be made an ex parte communication relevant to the merits 

of a Disciplinary Proceeding to any member of the Disciplinary Panel or the Appeal Panel 

hearing such proceeding or appeal, as applicable.

(2) Members of the Disciplinary Panel or the Appeal Panel, as applicable, shall 

not knowingly make or cause to be made an ex parte communication relevant to the 

merits of a Disciplinary Proceeding to any Person subject to such proceeding, the Market 

Regulation Department or any legal counsel or other representative of such Person or the 

Market Regulation Department.

(3) Any Person who receives makes or learns of any communication that is 

prohibited by this Rule shall promptly give written notice of such communication and 

any response thereto to the Market Regulation Department and all parties to the 

Disciplinary Proceeding to which the communication relates.

(4) A Person shall not be deemed to have violated this Rule if the Person refuses 

an attempted communication concerning the merits of a Disciplinary Proceeding as soon 

as it becomes apparent the communication concerns the merits.

Rule 702. Inquiries and Investigation

(a) The Market Regulation Department shall make such inquires as it deems necessary 

or appropriate to monitor Participants’ and other Persons’ compliance with the Rules. The Market 

Regulation Department shall commence an investigation, as provided in paragraph (b), if it has 

reason to believe that the Rules have been or may be violated or upon the receipt of a request from 

the CFTC. Any member of the Market Regulation Department must promptly recuse himself or 
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58

herself and notify the Chief Compliance Officer if such member has a material conflict of interest 

with respect to any potential respondent in an Investigation Report.

(b) Persons subject to the Company’s jurisdiction shall assist the Company and the 

Regulatory Services Provider in any investigation into potential violations of the Rules and the 

Company or the Regulatory Services Provider may require such Person to furnish such information 

concerning such Person’s business that is subject to the Rules and Company Requirements as the 

Company may deem necessary to enable the Company to perform its obligations under Applicable 

Law, including information relating to Contracts and related financial instruments, and information 

requested by a Government Agency, Self-Regulatory Organization, Derivatives Clearing 

Organization or service provider or licensor relating to the Company’s business as a swap 

execution facility and/or the Company’s compliance with Applicable Law. The Company or the 

Regulatory Services Provider may require such Person to produce documents, to answer questions 

from the Company, and/or to appear in connection with an investigation.

(c) The Market Regulation Department will investigate apparent violations of the 

Rules of which it becomes aware. The Market Regulation Department will commence an 

investigation upon the receipt of a request from CFTC staff or upon the discovery or receipt of 

information by the Company that, in the judgment of the Market Regulation Department, indicates

a reasonable basis for finding that a violation has occurred or will occur. The Market Regulation 

Department will determine the nature and scope of its inquiries and investigations in its sole 

discretion and will function independently of the commercial interests of the Company.

(d) The Market Regulation Department has the authority to:

(1) initiate and conduct inquiries and investigations;

(2) prepare Investigation Reports and make recommendations concerning 

initiating Disciplinary Proceedings; and 

(3) prosecute alleged violations within the Company’s disciplinary jurisdiction.

(e) Each Person subject to the Company’s jurisdiction is obligated to appear and testify 

and respond in writing to requests for information from the Market Regulation Department and to 

produce books, records, papers, documents or other tangible evidence in such Person’s possession, 

custody or control within the time period required by the Market Regulation Department.

Rule 703. Reports of Investigations

(a) The Market Regulation Department will maintain a log of all investigations and 

their disposition. The Market Regulation Department will prepare a written report of each 

investigation (the “Investigation Report”), regardless of whether the evidence gathered during an 

investigation forms a reasonable basis to believe that a violation within the Company’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.
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(b) The Investigation Report shall include the reasons for initiating the investigation 

(including a summary of the complaint, if any), all relevant facts and evidence gathered, Market 

Regulation Department staff’s analysis and conclusions and the recommendation of the Market 

Regulation Department. For each potential respondent, the Market Regulation Department will 

recommend either:

(1) closing the investigation without further action;

(2) resolving the investigation through an informal disposition, including the 

issuance of a warning letter. An informal disposition (including the issuance of a warning 

letter) shall not constitute a finding of a violation or a sanction;

(3) summary action;

(4) the preparation and service of a notice of charges for instituting a 

Disciplinary Proceeding and recommended sanctions if a violation is found to have 

occurred by a Hearing Panel; or

(5) a negotiated settlement.

(c) The Investigation Report shall be provided to the Chief Compliance Officer for a 

determination as to whether the Investigation Report is complete.

(d) Each Market Regulation Department investigation shall be completed in a timely 

manner and, absent mitigating factors, no later than twelve (12) months after the date that an 

investigation is opened. Mitigating factors that may justify an investigation taking longer than 

twelve (12) months to complete include the complexity of the investigation, the number of 

potential wrongdoers, the number of potential violations to be investigated and the volume of 

documents and data to be examined and analyzed.

Rule 704. Opportunity to Respond

(a) After completing its Investigation Report, the Market Regulation Department shall, 

where applicable and with the authorization of the Chief Compliance Officer, notify each potential 

respondent that the Market Regulation Department has recommended formal disciplinary charges 

against the potential respondent.

(b) The Market Regulation Department shall allow a potential respondent to submit a 

written statement explaining why a Disciplinary Proceeding should not be instituted and/or one or 

more of the potential charges should not be brought. The potential respondent shall submit any 

written statement within the time limit established by the Market Regulation Department. 

Rule 705. Review of Investigation Reports

(a) After the completion of the Investigation Report and the receipt of any submission 

made by the proposed respondent pursuant to Rule 704(b), the Chief Compliance Officer shall 

decide whether to refer the Investigation Report to the Market Regulation Department for further 
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60

review or to establish a Review Panel. The Market Regulation Department or Review Panel, as 

appropriate, shall, within thirty (30) days, take one of the following actions:

(1) If the Market Regulation Department or Review Panel, as appropriate, 

determines that additional investigation or evidence is needed, it shall promptly conduct 

such further investigation;

(2) If the Market Regulation Department or Review Panel, as appropriate, 

determines that no reasonable basis exists for finding a violation or that prosecution is 

otherwise unwarranted, it shall direct that no further action be taken. Such determination 

shall be in writing, and shall include a written statement setting forth the facts and 

analysis supporting the decision; or

(3) If the Market Regulation Department or Review Panel, as appropriate, 

determines that a reasonable basis exists for finding a violation and adjudication is 

warranted, it shall direct that the Person alleged to have committed the violation be served 

with a notice of charges and proceed in accordance with this Chapter 7 or to be issued a 

warning letter meeting the requirements set forth in Rule 714(b)(1).

(b) A failure of the Market Regulation Department or Review Panel, as appropriate, to 

act within the time prescribed in paragraph (a) shall not prevent the Chief Compliance Officer 

from issuing a warning letter if he or she deems it appropriate to do so. The Chief Compliance 

Officer shall inform the Regulatory Oversight Committee of any such failure of the Market 

Regulation Department or Review Panel, as appropriate, to act.

Rule 706. Notice of Charges

(a) If the Market Regulation Department or Review Panel, as appropriate, authorizes 

Disciplinary Proceedings pursuant to Rule 705(a)(3), it will prepare, and serve in accordance with 

Rule 707, a notice of charges.

(b) A notice of charges shall:

(1) state the acts, practices or conduct that the respondent is alleged to have 

engaged in;

(2) state each specific Rule alleged to have been violated or about to be 

violated;

(3) advise the respondent of its right to a hearing;

(4) advise the respondent that it has the right to be represented by legal counsel 

or any other representative of its choosing in all succeeding stages of the disciplinary 

process (other than a Director, Officer or employee of the Company, any member of the 

Disciplinary Panel or any person substantially related to the Disciplinary Proceedings 

such as a material witness or other respondent);
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61

(5) state the period of time within which the respondent may file an answer to, 

and request a hearing on, the notice of charges, which will, except for good cause, not be 

less than twenty (20) days after service of the notice of charges;

(6) 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

(7) advise the respondent that any allegation in the notice of charges that is not 

expressly denied will be deemed to be admitted.

Rule 707. Service of Notice

Any notice of charges or other documents to be served pursuant to this Chapter 7 may be 

served upon the respondent, and service shall be deemed complete, upon: (i) deposit in the United 

States mail, postage prepaid, via registered or certified mail; (ii) delivery of the same to a 

recognized courier service, addressed to the respondent at the respondent’s last known place of 

business or residence; or (iii) transmittal by electronic mail to the electronic mail address as it 

appears on the books and records of the Company, if followed by a hard copy of the document 

sent promptly thereafter by United States mail, postage prepaid, via registered or certified mail.

Rule 708. Answer to Notice of Charges

(a) If the respondent determines to answer a notice of charges, the respondent shall file 

its answer within twenty (20) days after being served with such notice, or within such other 

reasonable time period as may be determined by the Chief Compliance Officer.

(b) To answer a notice of charges, the respondent must in writing:

(1) specify the allegations that the respondent denies or admits;

(2) specify the allegations that the respondent does not have sufficient 

information to either deny or admit;

(3) specify any specific facts that contradict the notice of charges;

(4) specify any affirmative defenses to the notice of charges; 

(5) sign and serve the answer on the Chief Compliance Officer; and

(6) if applicable, request a hearing before a Hearing Panel.

(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 and a waiver of any right to a 

hearing before a Hearing Panel and to appeal any sanction that may be imposed. 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 allegation or those allegations. Any allegation in a notice of charges that the 
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62

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).

(d) If a respondent admits or fails to specifically deny any of the allegations in the 

notice of charges, the Hearing Panel shall find that the violations set forth in such allegations have 

been committed and shall impose a sanction for such violations. The Hearing Panel shall promptly 

notify the respondent in writing of any sanction imposed pursuant to this Rule 708 and advise the 

respondent that the respondent may request, in writing, a hearing on such sanction within twenty 

(20) days of respondent being served with such notice. Any failure by the respondent to timely 

request a hearing with respect to a notice of sanctions will be deemed to be an acceptance of the 

sanctions in such notice and a waiver of any right to appeal such sanctions. 

Rule 709. Settlements

(a) A respondent or potential respondent may at any time propose in writing an offer 

of settlement related to anticipated or instituted Disciplinary Proceedings. All offers of settlement 

shall be submitted to the Chief Compliance Officer.

(b) 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 Company over it and over the subject matter of the 

proceedings, consent to the entry of the findings and sanctions imposed and waive its right to 

notice, opportunity for a hearing and any and all right to review and appeal under Applicable Law.

(c) If a respondent or potential respondent submits an offer of settlement in accordance 

with paragraph (a) above, the Chief Compliance Officer will forward the offer, together with his 

or her recommendation on whether to accept or reject the offer, to the Disciplinary Panel. The 

respondent or potential respondent may withdraw such offer of settlement at any time before 

acceptance by the Disciplinary Panel, but may not withdraw such offer at any time after acceptance 

by the Disciplinary Panel. 

(d) If an offer of settlement is accepted by the Disciplinary Panel, it shall issue a written 

decision specifying:

(1) the Rule violations it has reason to believe were committed, including the 

basis or reasons for its conclusions; 

(2) any sanction to be imposed, which must include full customer restitution 

where customer harm is demonstrated; and

(3) if applicable, that the respondent has accepted the sanctions imposed 

without either admitting or denying the Rule violations.

(e) In the event that the Disciplinary Panel accepts an offer of settlement without the 

agreement of the Market Regulation Department, the decision must adequately support such 

acceptance. Upon issuance of the written decision in accordance with paragraph (d), the 
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63

respondent’s submission of the offer will be deemed to constitute a waiver of any right to notice, 

the opportunity for a hearing and review and appeal under the Rules.

(f) If the offer of settlement of a respondent or potential respondent is not accepted by 

the Disciplinary Panel or for any other reason fails to become final, 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 that is made available to a subsequent Disciplinary Panel or Appeal Panel but may be 

retained by the Company in its records. Neither a respondent or potential respondent nor the 

Market Regulation Department may use an unaccepted offer of settlement in any manner at a 

hearing of, or appeal from, Disciplinary Proceedings.

Rule 710. Disciplinary Panel

(a) A Review Panel, if established pursuant to Rule 705(a), is responsible for reviewing

a completed Investigation Report and for determining whether a reasonable basis exists for finding 

a violation of the Rules and authorizing the issuance of a notice of charges. A Hearing Panel shall 

conduct hearings in connection with any Disciplinary Proceedings (except for summary 

impositions of fines pursuant to Rule 716), to make findings, render decisions, and impose 

sanctions pursuant to this Chapter 7.

(b) A Disciplinary Panel for a Disciplinary Proceeding other than a Summary 

Proceeding shall be composed of three (3) individuals that have been appointed by the Chief 

Compliance Officer. To the greatest extent practicable, the members shall be from diverse industry 

participant groups so that no group or class of industry participants dominates or exercises a 

disproportionate influence on the Disciplinary Panel and shall include sufficient different 

membership interests so as to ensure fairness and prevent special treatment or preference for any 

Person in the conduct of the Disciplinary Panel’s responsibilities. No employee of the Company 

may serve on a Disciplinary Panel. Subject to paragraphs (c) and (d), the appointment of a member 

of a Disciplinary Panel will not expire until the relevant Disciplinary Proceedings are completed. 

(c) If an individual selected is an Interested Person or if a member of a Disciplinary 

Panel later becomes an Interested Person, a replacement for such individual shall be selected by 

the Chief Compliance Officer. Except as may otherwise be provided in the Rules, the Board may 

at any time remove any member of a Disciplinary Panel for cause.

(d) Within ten (10) days of being notified of the appointment of a Disciplinary Panel, 

a respondent may seek to disqualify any individual named to the Disciplinary Panel for the reasons 

identified in Rule 206 by serving written notice on the Chief Compliance Officer. 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 Chair of the Regulatory Oversight Committee will 

decide the merits of any request for disqualification within his or her sole discretion. Any such 

decision shall be final and not subject to appeal.

(e) All information, records, materials and documents provided to a Disciplinary Panel 

and all deliberations, testimony, information, records, materials and documents related thereto 

shall be treated as non-public and confidential and shall not be disclosed, except as necessary to 

further a Company investigation, respond to a request from the CFTC or as otherwise required by 
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law. No individual shall serve on a Disciplinary Panel unless that individual has agreed in writing 

that he or she will not publish, divulge, or make known in any manner facts or information 

regarding the business of any Person or other information which may come to his attention in his 

official capacity as a member of the Disciplinary Panel, except when reporting to the Board or to 

a Committee concerned with such information or to the Market Regulation Department, when 

requested by the CFTC or other Government Agency, or when compelled to testify in any judicial 

or administrative proceeding.

Rule 711. Respondent’s Review of Evidence

(a) Prior to the commencement of a hearing, each respondent will be given the 

opportunity, subject to paragraphs (b) and (c), to review all books, records, documents, papers, 

transcripts of testimony and other tangible evidence in the possession or under the control of the 

Company that the Market Regulation Department will use to support the allegations and proposed 

sanctions in the notice of charges or which the chair of the Hearing Panel otherwise deems relevant 

to the Disciplinary Proceedings. Unless determined otherwise by the chair of the Hearing Panel, 

all such requests for access to information must be made not less than ten (10) days prior to the 

scheduled hearing date. Notwithstanding the foregoing, a respondent shall not have the right to 

review, and the Company shall have no obligation to disclose, information that (i) is protected by 

attorney-client privilege or attorney work product; (ii) was prepared by an employee of the 

Company but will not be offered in evidence in the Disciplinary Proceedings; (iii) may disclose a 

technique or guideline used in examinations, investigations or enforcement proceedings; or (iv) 

discloses the identity of a confidential source.

(b) The Market Regulation Department may redact, edit or code data and information 

before furnishing it to the respondent if books, records, documents, papers, transcripts of testimony 

or other tangible evidence that would otherwise be required to be provided to a respondent contain 

data or information that could adversely affect the competitive position of the Person providing 

such data or information or if such data or information might compromise other investigations 

being conducted by the Market Regulation Department. For purposes of this Rule 711, data and 

information that could adversely affect a Person’s competitive position include positions in 

Contracts, trading strategies, the identity of any Participant, Authorized Trader, Authorized User 

or Customer and the finances of the Person providing the information. Notwithstanding the 

foregoing, the Market Regulation Department shall not redact, edit or code competitive or 

investigative data or information contained in documents in a manner that materially impairs the 

respondent’s ability to defend against the allegations or proposed sanctions in the notices of 

charges and shall provide the respondent with reasonable access to the information and portions 

of the documents that the Market Regulation Department intends to rely on to support the 

allegations or proposed sanctions in the notice of charges.

(c) The respondent shall treat as confidential all data and information provided to it 

pursuant to this Rule 711, and shall not disclose any such data or information, except as necessary 

to the respondent’s defense of notice of charges and any appeal of the decision of the Hearing 

Panel.
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Rule 712. Hearings

(a) All Disciplinary Proceedings (except for summary impositions of fines pursuant to 

Rule 716) will be conducted at a hearing before a Hearing Panel, such hearing shall be fair and 

shall be convened promptly after reasonable notice to each respondent. Parties to a Disciplinary 

Proceeding shall include each respondent and the Market Regulation Department.

(b) At a hearing conducted in connection with any Disciplinary Proceeding, the Market 

Regulation Department will present its case supporting the allegations and proposed sanctions in 

the notice of charges to the Hearing Panel. If a respondent has timely filed an answer to the notice 

of charges in accordance with Rule 708, the respondent shall be entitled to attend and participate 

in the hearing. All hearings will be conducted privately and confidentially. 

(c) At a hearing conducted in connection with Disciplinary Proceedings, the Market 

Regulation Department and each respondent entitled to participate in such hearing may:

(1) present evidence and facts determined relevant and admissible by the chair 

of the Hearing Panel;

(2) call and examine witnesses; and

(3) cross-examine witnesses called by other parties.

(d) 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 

chair of the Hearing Panel may limit evidence concerning any allegations not expressly denied in 

determining the sanctions to impose. If, in such a case, the respondent appears at the hearing, the 

respondent may not participate in the hearing with respect to such allegations that the respondent 

failed to properly deny (unless such hearing is a hearing conducted pursuant to Rule 708(d)) by 

calling or cross-examining witnesses, testifying in defense, presenting evidence concerning the 

notice of charges or otherwise, unless the respondent’s failure to properly deny the allegations was 

solely the result of respondent’s failure to timely file an answer and the Hearing Panel determines 

that the respondent had a compelling reason for failing to timely file an answer. If the Hearing 

Panel determines that the respondent had a compelling reason for failing to timely file an answer, 

the Hearing Panel shall adjourn the hearing and direct the respondent to promptly file a written 

answer in accordance with Rule 708.

(e) Any Person entitled, or required or called upon, to attend a hearing before a Hearing 

Panel pursuant to paragraph (c) above shall be given reasonable notice, confirmed in writing, 

specifying the date, time and place of the hearing. All Participants, Authorized Traders and 

Authorized Users who are called as witnesses are required to appear at the hearing and, where 

applicable, produce evidence. The Company shall make reasonable efforts to secure the presence 

of other Persons called as witnesses whose testimony would be relevant (as determined by the 

chair of the Hearing Panel). A Hearing Panel may appoint an expert to attend any hearing and 

assist in deliberations if such expert is made subject to appropriate confidentiality requirements.
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(f) The Company will arrange for any hearing conducted in connection with 

Disciplinary Proceedings to be recorded verbatim, or substantially verbatim, in a manner capable 

of accurate transcription and a copy of such recording shall become part of the record of the 

applicable Disciplinary Proceeding. If the respondent requests a copy of all or portions of the 

record, the chair of the Hearing Panel may require the respondent to pay the costs of preparing 

such transcript. Additionally, the Company will prepare a transcript of the hearing (i) if a transcript 

of the hearing is requested by CFTC staff, (ii) the decision of the Hearing Panel or an Appeal Panel 

is reviewed by the CFTC pursuant to section 8c of the CEA or part 9 of the CFTC Regulations or 

(iii) pursuant to Rule 715(e).

(g) The chair of the Hearing Panel may continue, adjourn or otherwise conduct the 

hearing as he or she may deem appropriate. The chair of the Hearing Panel will determine all 

procedural and evidentiary matters, including the admissibility and relevance of any evidence 

proffered. In determining procedural and evidentiary matters, the chair of the Hearing Panel may 

be counseled by the Company’s legal advisors and shall not be bound by evidentiary or procedural 

rules of law. Once admitted during the hearing, the Hearing Panel may consider, and attach the 

weight it believes appropriate to, evidence or other materials. 

(h) Except for procedural and evidentiary matters decided by the chair of the Hearing 

Panel pursuant to paragraph (g) and Rule 711, unless each respondent otherwise consents, the 

entire Hearing Panel must be present in person during the entire hearing and must be present, in 

person or by telephone, during any related deliberations.

(i) The Hearing Panel may summarily impose sanctions on any Person subject to the 

Company’s jurisdiction who impedes, delays or substantially disrupts the progress of a hearing.

Rule 713. Decision of Hearing Panel

(a) As promptly as reasonable following a hearing, the Hearing Panel will issue a 

written 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 Hearing Panel will constitute the 

decision of the Hearing Panel. 

(b) The Company will provide a copy of the order of the Hearing Panel to the 

respondent and the Market Regulation Department. The order will include:

(1) the notice of charges or summary of the allegations;

(2) the answer, if any, or a summary of the answer filed by the respondent;

(3) a brief summary of the evidence introduced at the hearing or, where 

appropriate, incorporation by reference of the Investigation Report;

(4) findings of fact and conclusions concerning each allegation, including a 

complete explanation of the evidentiary and other basis for such findings and conclusions 

with respect to each allegation;
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(5) each specific Rule that the respondent is found to have violated; and

(6) the imposition of sanctions, if any, pursuant to Rule 714, including the basis 

for such sanctions and the effective date of each sanction.

(c) A Hearing Panel shall be dissolved automatically when it has decided the matter 

for which it was appointed and has notified the respondent and the Chief Compliance Officer in 

writing of its decision.

(d) Unless a timely notice of appeal is filed pursuant to Rule 715, the order of the 

Hearing Panel will become final upon the expiration of twenty (20) days after the order is served 

on the respondent and the Market Regulation Department.

Rule 714. Sanctions

(a) In the event that a respondent is found in accordance with this Chapter 7 to have 

violated or to have attempted to violate a Rule or if sanctions are imposed pursuant to an accepted 

settlement offer, the Hearing Panel shall impose such sanctions as it deems appropriate, 

commensurate with the violations committed and sufficient to deter recidivism or similar 

violations by other Persons subject to the Company’s jurisdiction. Any such sanctions shall take 

into account the respondent’s disciplinary history (if any) and, in the event of demonstrated 

customer harm, shall include full customer restitution, except where the amount of restitution or 

to whom such restitution should be provided cannot be reasonably determined.

(b) The Company may impose one or more of the following sanctions or remedies:

(1) a warning letter, provided that no more than one (1) warning letter may be 

issued to the same respondent found to have committed the same rule violation within a 

rolling twelve (12) month period;

(2) censure;

(3) limitation, restriction or qualification of Trading Privileges, ability to 

otherwise access the Trading System, and/or other activities, functions or operations;

(4) suspension, for a period not to exceed twelve (12) months, of Trading 

Privileges and/or ability to otherwise access the Trading System;

(5) termination of Trading Privileges and/or ability to otherwise access the 

Trading System;

(6) expulsion;

(7) a fine;

(8) restitution or disgorgement; or

(9) any other sanction or remedy deemed to be appropriate.
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(c) The Company may impose a fine of up to $100,000 for each violation of a Rule. A 

Participant will be responsible for paying any fine or other amount imposed on, but not paid by, 

any of its Authorized Traders or Authorized Users.

(d) A Hearing Panel may order a respondent to pay some or all of the costs associated 

with the Disciplinary Proceedings, including costs that the Hearing Panel believes were 

unnecessarily caused by the respondent. Costs may include costs associated with the inquiry or 

investigation, the prosecution by the Market Regulation Department or Regulatory Services 

Provider, legal and professional assistance, the conduct of the hearing, and administrative and 

other expenses incurred by the Hearing Panel.

Rule 715. Appeal from Hearing Panel Decisions and Summary Actions 

(Other than Summary Impositions of Fines)

(a) In the event that a respondent is found, pursuant to Rule 713, to have violated or to 

have attempted to violate a Rule:

(1) such respondent may appeal the decision within twenty (20) days of 

receiving the order of the Hearing Panel by filing a written notice of appeal with the Chief 

Compliance Officer; 

(2) the Market Regulation Department may appeal all or any part of a decision 

of the Hearing Panel, including any sanctions that may or may not have been imposed by 

the Hearing Panel, within twenty (20) days of receiving the order of the Hearing Panel

by filing a notice of appeal with the Chief Compliance Officer; and/or

(3) the Appeal Panel may, on its own initiative, order a review of any aspect of 

a decision by the Hearing Panel within twenty (20) days of the order of the Hearing Panel

by filing a notice of appeal with the Chief Compliance Officer. 

(b) While an appeal is pending, the effect of the order of the Hearing Panel (including 

any sanctions, remedies or costs imposed thereby) shall be suspended, except with respect to any 

denial or limit on Trading Privileges or ability to otherwise access the Company’s Trading System

(c) 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. A respondent may 

appeal the order of the Hearing Panel on the grounds that:

(1) the order was arbitrary, capricious, an abuse of discretion or not in 

accordance with the Rules; or

(2) the order exceeded the authority or jurisdiction of the Hearing Panel, the 

Chief Compliance Officer or the Company.

(d) The Company will forward copies of any notice of appeal received by it to all 

parties to the hearing before the Hearing Panel except the appellant. On or before the twentieth 
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(20th) day after filing a notice of appeal, the appellant must file with the Chief Compliance Officer

and serve on all other parties a brief supporting the notice of appeal and documents supporting the 

brief. On or before the twentieth (20th) day after the date on which the appellant serves supporting 

brief, the appellee must file and serve its brief in opposition with the Market Regulation 

Department. On or before the tenth (10th) day after the date on which the appellee serves its brief 

in opposition, the appellant must file and serve a brief in reply with the Market Regulation 

Department.

(e) In connection with any appeal, the Company will furnish to the Chief Compliance 

Officer 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.

(f) An Appeal Panel shall be composed of three (3) individuals that have been 

appointed by the Chief Compliance Officer. To the greatest extent practicable, the members shall 

be from diverse industry participant groups so that no group or class of industry participants 

dominates or exercises a disproportionate influence on the Appeal Panel. No individual shall be 

selected to serve on the Appeal Panel for any Disciplinary Proceeding if such individual has served 

on the Hearing Panel for such Disciplinary Proceeding.

(g) If an individual selected is an Interested Person or if a member of the Appeal Panel 

later becomes an Interested Person, a replacement for such individual shall be selected by the Chief 

Compliance Officer. Except as may be otherwise provided in the Rules, the Board may at any 

time remove any member of an Appeal Panel for cause.

(h) All information, records, materials and documents provided to the Appeal Panel 

and all deliberations, testimony, information, records, materials and documents related thereto 

shall be treated as non-public and confidential and shall not be disclosed, except as necessary to 

further a Company investigation or as otherwise required by law. No individual shall serve on an 

Appeal Panel unless that individual has agreed in writing that he or she will not publish, divulge, 

or make known in any manner facts or information regarding the business of any Person or other 

information which may come to his attention in his official capacity as a member of the Appeal 

Panel, except when reporting to the Board or to a Committee concerned with such information or 

to the Market Regulation Department, when requested by the CFTC or other Government Agency, 

or when compelled to testify in any judicial or administrative proceeding. 

(i) Within ten (10) days of being notified of the appointment of the Appeal Panel, 

either party may seek to disqualify any individual named to the Appeal Panel for the reasons 

identified in Rule 206 by serving written notice on the Chief Compliance Officer. By not timely 

filing a request for disqualification, the parties will be deemed to have waived any objection to the 

composition of an Appeal Panel. The Chair of the Regulatory Oversight Committee will decide 

the merits of any request for disqualification within his or her sole discretion. Any such decision 

shall be final and not subject to appeal.

(j) The Appeal Panel may hold a hearing to allow parties to present oral arguments. 

Any hearing will be conducted privately and confidentially. Notwithstanding the confidentiality 

of hearings, the Appeal Panel may appoint an expert to attend any hearing and assist in the 

deliberations if such individuals agree to be subject to appropriate confidentiality agreements. In 
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determining procedural and evidentiary matters, the Appeal Panel will not be bound by evidentiary 

or procedural rules or law.

(k) Except for procedural and evidentiary matters decided by the Appeal Panel 

pursuant to paragraph (j), unless such appellant otherwise consents, the entire Appeal Panel must 

be present in person during the entire appeal hearing and must be present, in person or by 

telephone, during any related deliberations.

(l) The Appeal Panel will only consider on appeal the record before the Hearing Panel, 

the notice of appeal, the briefs filed in support and opposition of the appeal, and any oral arguments 

of the parties. The Appeal Panel may only consider new evidence when the Appeals Panel 

determines that good cause exists as to why the evidence was not introduced during the 

Disciplinary Proceeding.

(m) After completing its review, the Appeal Panel may affirm, modify or reverse any 

order of the Hearing Panel 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, remanding the matter to the same or a different Hearing Panel for further Disciplinary 

Proceedings, or ordering a new hearing.

(n) As promptly as reasonably possible following its review, the Appeal Panel will 

issue a written decision based on the weight of the evidence before the Appeal Panel. The decision 

of the Appeal Panel shall meet the same informational requirements as set forth in Rule 713(b).

(o) The Appeal Panel’s written order will be the final action of the Company and will 

not be subject to appeal within the Company. 

Rule 716. Summary Imposition of Fines

(a) The Chief Compliance Officer may summarily fine a Participant, Authorized 

Trader or Authorized User for failing to make timely and accurate submissions to the Company of 

notices, reports or other information required by the Rules or to keep books and records required 

by the Rules.

(b) The Market Regulation Department, acting on behalf of the Chief Compliance 

Officer, will give notice of any fine imposed pursuant to this Rule 716 to each Participant, 

Authorized Trader or Authorized User subject thereto. The notice will specify the violations of 

the Rules for which the fine is being imposed and the amount of the fine. The Participant, 

Authorized Trader or Authorized User, as the case may be, shall pay or cause the payment of the 

fine within twenty (20) days of the date of notice. 

(c) The Company shall establish, and from time to time revise, schedules of fines to be 

imposed pursuant to this Rule 716. Such schedules of fines shall provide for progressively larger 

fines for recurring violations, with the maximum fine not to exceed $5,000. Summary imposition 

of fines pursuant to this Rule 716 will not preclude the Company from bringing any other action 

against the Participant, Authorized Trader or Authorized User, as the case may be.
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(d) Appeals of the summary imposition of fines imposed pursuant to this Rule 716 shall 

be heard by the Appeal Panel. The appellant shall be advised of its right to a prompt hearing before 

the Appeal Panel and its right to be represented, at its own cost, by legal counsel or any other 

representative at such hearing. The appellant may present evidence in support of its appeal. The 

Appeal Panel’s decision shall be final. The Appeal Panel shall not set aside, modify or amend the 

summary fines imposed unless the Appeal Panel determines by a majority vote that the decision 

to impose the fine was either: 

(1) arbitrary, capricious, or an abuse of the Chief Compliance Officer’s 

discretion; or

(2) in excess of the Chief Compliance Officer’s authority or jurisdiction.

Rule 717. Summary Suspensions and Other Summary Actions

(a) Notwithstanding anything in the Rules to the contrary, the Chief Compliance 

Officer may, after consultation with the Regulatory Oversight Committee if practicable, summarily 

suspend, revoke, limit, condition, restrict or qualify a Participant’s Trading Privileges and/or a 

Participant’s or any other Person’s ability to otherwise access the Trading System, and may take 

other summary action against any Person subject to the Company’s jurisdiction in accordance with 

the Rules (including any imposition of a fine under Rule 716) if the Chief Compliance Officer 

reasonably believes that immediate action is necessary to protect the best interests of the public or 

the Company.

(b) Where practicable, the Company shall provide prior written notice to the party 

against whom action in accordance with paragraph (a) is to be taken. If prior notice is not 

practicable, the Company will give notice at the earliest possible opportunity. Any such notice 

shall describe the action taken or to be taken by the Company, the reasons therefor, the effective 

date, time and duration thereof, and advise the recipient of the notice of its right to a prompt hearing 

before a Hearing Panel and its right to be represented by legal counsel or other representative at 

such hearing. A request by a Participant or other person for such a hearing shall not delay the 

effectiveness of the summary action.

(c) At the request of the Company, a respondent against whom a summary action is 

brought pursuant to this Rule 717 shall provide books and records over which the respondent has 

access or control and shall furnish information to, or appear or testify before, the Market 

Regulation Department and a Disciplinary Panel in connection with the enforcement of any Rule.

(d) If a hearing is requested pursuant to paragraph (b), the Hearing Panel will promptly 

convene a hearing to be conducted in accordance with Rule 712.

(e) As promptly as reasonably possible after the hearing, the Hearing Panel will issue 

to the respondent a written order based on the weight of the evidence affirming, modifying, or 

reversing the summary action. The order will include a description of the summary action taken, 

a summary of the evidence introduced at the hearing, a statement of findings of fact and 

conclusions, a description of any action taken or to be taken by the Company, and the effective 

date, time and duration thereof. 
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Rule 718. Rights and Responsibilities After Suspension or Termination

(a) With respect to any Person whose Trading Privileges and/or ability to otherwise 

access the Trading System (whether directly or indirectly) have been suspended, none of its rights 

(including the right to hold oneself out to the public as a Participant, Authorized Trader or 

Authorized User, enter Orders and Indications of Interest into the Trading System and originate or 

respond to Requests for Quotes) will apply during the period of the suspension, except for the right 

of such Person to assert a claim as provided in Chapter 8. Any suspension of any Person’s Trading 

Privileges and/or ability to otherwise access the Trading System will not relieve such Person of 

its, his or her obligations under the Rules to perform any obligation incurred prior to the 

suspension, or for any Company fees, costs, or charges incurred during the suspension. The 

Company may discipline a suspended Person under this Chapter 7 for any violation of a Rule

committed by such Person before, during or after the suspension.

(b) When a Person’s Trading Privileges and/or ability to otherwise access the Trading 

System are terminated, all of its, his or her related rights will terminate, except for the right of such 

Person to assert a claim as provided in Chapter 8.

(c) A Person whose Trading Privilege and/or ability to otherwise access the Trading 

System is suspended or terminated remains subject to the Rules and the jurisdiction of the 

Company for acts and omissions prior to the suspension or termination, and must cooperate in any 

Disciplinary Proceeding or appeal of Disciplinary Proceedings as if the suspended or terminated 

Participant, Authorized Trader or Authorized User still had Trading Privileges or ability to 

otherwise access the Trading System.

Rule 719. Notice of Disciplinary Proceedings

The Company will provide written notice of final decisions in Disciplinary Proceedings to 

the parties to the Disciplinary Proceeding consistent with applicable CFTC Regulations and the 

Rules. Whenever the Company suspends, expels, fines or otherwise disciplines or denies any 

Person access to the Trading System, the Company will make any public disclosures required by 

CFTC Regulations. 

Rule 720. Regulatory Services Provider

(a) Any of the functions of the Company under Chapter 4 and Chapter 5 or this Chapter

7 may be performed by a Regulatory Service Provider pursuant to a delegation of such functions 

by the Company to such Regulatory Services Provider, and references to the Market Regulation 

Department shall in such circumstances be deemed to be references to such Regulatory Service 

Provider. The Company may provide information regarding any Person that is subject to the 

Company’s jurisdiction to the Regulatory Services Provider in connection with the performance 

by the Regulatory Services Provider of those functions. A failure to comply with a request or 

direction from the Regulatory Services Provider shall be deemed to be a failure to comply with a 

request or direction from the Market Regulation Department.
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(b) The Company shall retain exclusive authority over all substantive decisions made 

by the Regulatory Service Provider (including decisions involving the cancellation of trades, the 

issuance of disciplinary charges, suspensions or terminations of Trading Privileges and/or ability 

to otherwise access the Trading System) and will document instances where its actions differ in 

any material respect from those recommended by the Regulatory Service Provider.

(c) The Company shall retain ultimate decision-making authority with respect to any 

functions that are performed by a Regulatory Services Provider, including the reasons for the 

course of action recommended by the Regulatory Services Provider and the reasons why the 

Company chose a different course of action.
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CHAPTER 8. ARBITRATION RULES

Rule 801. General

(a) Any Person subject to the Company’s jurisdiction shall arbitrate through NFA’s

arbitration program all disputes, controversies or claims between or among themselves that relate 

to or arise out of any Contract or otherwise arise out of one or more transactions made or alleged 

to have been made on the Trading System or subject to the Rules and that are based upon facts and 

circumstances that occurred at a time when the parties were subject to the Company’s jurisdiction.

(b) Notwithstanding the foregoing, this Chapter 8 does not apply to disputes between 

any Persons subject to the Company’s jurisdiction that: (i) such Persons are required by the rules

of a Self-Regulatory Organization to submit to the dispute resolution procedures of that SelfRegulatory Organization; or (ii) that such Persons have, by valid and binding agreement, 

committed to negotiate or litigate in a forum other than NFA.

(c) Notwithstanding the foregoing, this Chapter 8 does not require arbitration of claims 

alleging employment discrimination (including sexual harassment) in violation of Applicable Law.

Rule 802. Forum and Arbitration Rules

NFA will conduct arbitrations described in this Chapter 8 pursuant to NFA’s Member 

Arbitration Rules, as if each party to such arbitration was an “NFA Member,” and references in 

the Member Arbitration Rules to an “Associate” of an “NFA Member” shall mean and include an 

Authorized User.

Rule 803. Initiating an Arbitration Claim

(a) Any Person subject to the Company’s jurisdiction may initiate an arbitration claim 

by submitting the required documents and fees to the NFA.

(b) Any Person submitting an arbitration claim shall provide written notice of such 

claim to the Company.

Rule 804. Claims Relating to Trade Cancellations or Price Adjustments

All claims relating to trade cancellations or price adjustments pursuant to Rule 526 shall 

be arbitrated in accordance with this Chapter 8.

Rule 805. Penalties

(a) Any failure by any Person subject to the Company’s jurisdiction to arbitrate a 

dispute subject to this Chapter 8, or the commencement by such a Person of a suit in any court 

prior to arbitrating a case subject to this Chapter 8, shall constitute a violation of these Rules and 

shall subject such Person to Disciplinary Proceedings pursuant to Chapter 7. Any Person subject 

to the Company’s jurisdiction that does not arbitrate a dispute through the NFA’s arbitration 
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program as provided in Rule 801(b) or Rule 801(c) shall not be deemed to have violated these 

Rules.

(b) The Company may summarily suspend, pursuant to Rule 717, any Person subject 

to the Company’s jurisdiction that fails to timely satisfy an arbitration award rendered in any 

arbitration conducted pursuant to this Chapter 8.
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CHAPTER 9. MISCELLANEOUS

Rule 901. Contract Specifications

(a) Notwithstanding any provision of these Rules, the Contract Specification with 

respect to a particular Contract shall govern the applicability of the Rules to trading in such 

Contract and, in the event of any conflict between the Rules and the Contract Specification with 

respect to trading in such Contract, the Contract Specification shall govern. 

(b) The Contract Specification for each individual Contract may specify: (i) whether 

such Contract may be settled via cash settlement, physical delivery of the underlying commodity, 

or by any other means, as applicable; (ii) the method for determining settlement prices; and (iii) 

such other terms as are determined by the Company to be relevant. 

(c) The Contract Specifications for each Contract are set forth in Chapter 11 to these 

Rules and are published by the Company on its website. 

Rule 902. Legal Certainty

A transaction entered into on the Trading System or pursuant to the Rules and Company 

Requirements shall not be void, voidable, subject to rescission or otherwise invalidated or rendered 

unenforceable as a result of either: (1) any violation by the Company of any of the provisions of 

section 5h of the CEA or Part 37 of the CFTC Regulations; (2) any CFTC proceeding to alter or 

supplement a rule, term or condition under section 8a(7) of the CEA or to declare an emergency 

under section 8a(9) of the CEA; or (3) any other proceeding the effect of which is to: (i) alter or 

supplement a specific term or condition or trading rule or procedure, (ii) require a swap execution 

facility to adopt a specific term or condition, trading rule or procedure, or to take or refrain from 

taking any specific action.

Rule 903. Trading by Company Officials Prohibited; Misuse of Material, 

Non-Public Information

(a) No Company Official may trade, directly or indirectly any Contract or any 

commodity interest related thereto.

(b) No member of the Board, member of any Committee, Disciplinary Panel Member 

or Appeal Panel Member (each, a “Covered Person”) and no Company Official may trade, directly 

or indirectly any Contract, any swap traded on another swap execution facility or other market, or 

any commodity interest related thereto where such Covered Person or Company Official has access 

to material non-public information concerning such Contract or commodity interest that was 

obtained as a result of the individual’s duties and responsibilities as a Covered Person or Company 

Official, as applicable. Participation by a Company Official in a retirement plan sponsored by the 

Company shall not be deemed to constitute trading directly or indirectly in a Contract or 

commodity interest, notwithstanding such plan’s trading of swaps or commodity interests. 
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(c) The Chief Compliance Officer (or, in the case of the Chief Compliance Officer, the 

Board) may grant exemptions from the provisions of paragraph (a) to Company Officials on a 

case-by-case basis under circumstances that are not contrary to the purposes of this Rule and CFTC 

Regulation 1.59. Such circumstances may include, but are not necessarily limited to:

(1) participation in pooled investment vehicles where such Company Official 

has no direct or indirect control over transactions effected by or for the account of the 

pool;

(2) service by such Company Official as an executor or administrator of an 

estate;

(3) service by such Company Official in any other fiduciary capacity, such as 

an officer of a charitable organization, in which such Company Official receives no 

pecuniary benefit from the trading of Contracts or other commodity interests; and

(4) such other circumstances as the Chief Compliance Officer (or, in the case 

of the Chief Compliance Officer, the Board) may determine.

(d) Any Company Official that has received an exemption under paragraph (c) must:

(1) furnish to the Company (or, in the case of the Chief Compliance Officer, to 

the Board) account statements and other documents relevant to the trading activities that 

are so exempted; and

(2) inform the Chief Compliance Officer (or, in the case of the Chief 

Compliance Officer, the Board) within one business day of any material change of 

information that may affect such Company Official’s qualification for such exemption.

(e) Covered Persons and Company Officials are prohibited from using or disclosing

for any purpose other than the performance of their official duties and responsibilities material 

non-public information obtained as a result of their employment, agency relationship or 

engagement with the Company where the Covered Person or Company Official expected or should 

have reasonably expected that the information disclosed may assist a Person in trading any 

Contract, any swap traded on another swap execution facility or other market, or any commodity 

interest related thereto. Notwithstanding the foregoing, Covered Persons and Company Officials 

may disclose material, non-public information if required by law or a court order.

(f) Terms used in this Rule 903 and not otherwise defined in the Rules shall have the 

meaning set forth in CFTC Regulations 1.3 and 1.59.

Rule 904. Proprietary Information; Use of Market Data

(a) By accessing or otherwise using the Trading System, each Participant, Authorized 

Trader, Authorized User, ISV, Customer or other Person subject to the Company’s jurisdiction

hereby acknowledges and agrees that the Company owns and shall retain all right, title and interest 

in and to the Trading System, all components thereof, including all related applications, all 
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application programming interfaces, user interface designs, software and source code and any and 

all intellectual property rights therein, including all registered or unregistered, as applicable (i) 

copyright, (ii) trade mark, (iii) service mark, (iv) trade secret, (v) trade name, (vi) data or database 

rights, (vii) design rights, (viii) moral rights, (ix) inventions, whether or not capable or protection 

by patent or registration, (x) rights in commercial information or technical information, including 

know-how, research and development data and manufacturing methods, (xi) patent, and (xii) other 

intellectual property and ownership rights, including applications for the grant of any of the same, 

in or to the Trading System and all other related proprietary rights of the Company and/or any of 

its affiliates (together, with any and all enhancements, corrections, bug fixes, updates and other 

modifications to any of the foregoing and any and all data or information of any kind transmitted 

by means of any of the foregoing, including the Market Data, “Proprietary Information”). Each

Participant, Authorized Trader, Authorized User, ISV, Customer and other Person subject to the 

Company’s jurisdiction further acknowledges and agrees that the Proprietary Information is the 

exclusive, valuable and confidential property of the Company. Each Participant, Authorized 

Trader, Authorized User, ISV, Customer and other Person subject to the Company’s jurisdiction

acknowledges and agrees that it shall not and shall not permit other Persons affiliated it to, reverse 

engineer, copy, bug fix, correct, update, transfer, reproduce, republish, broadcast, create derivative 

works based on or otherwise modify, in any manner, all or any part of the Trading System or the 

Proprietary Information. Each Participant, Authorized Trader, Authorized User, ISV, Customer 

and other Person subject to the Company’s jurisdiction further agrees to keep, and to cause each of 

its employees and agents to keep, Proprietary Information confidential and not to transfer, lease, 

loan, sell or distribute, directly or indirectly, all or any portion of the Trading System or any 

Proprietary Information except as may be expressly permitted in writing by the Company.

(b) Each Participant and each Authorized Trader retains such rights as it may enjoy 

under Applicable Law with respect to Market Data solely in the form such Market Data was 

submitted to the Trading System by such Participant or Authorized Trader or their respective 

Authorized Users. Subject to the foregoing, the Company shall own all rights, title and interest, 

database rights and trade secret rights in and to all Market Data. Participants and Authorized 

Traders shall not, and shall cause their Customers not to, distribute, sell or retransmit Market Data 

or other information obtained via the Trading System, provided that any such restrictions shall not 

apply to Participant’s own data (and the data of its Authorized Traders and Customers). The 

Company may make Market Data and other information it may deem appropriate available to 

Participants and other Persons at such times and in such manner (whether through the Trading 

System, a ticker, financial information services or otherwise) as it may consider necessary or 

advisable from time to time; provided that, except as may otherwise be permitted by any written 

agreement between the Company and a Participant or Authorized Trader and, in the case of the 

following clause (ii), as may otherwise be permitted by Rule 905, the Company shall not (i) use 

Market Data to compete directly with, as applicable, the Participant, Authorized Trader or the 

Customer (but only if Market Data submitted to the Trading System identifies such Customer), or 

(ii) attribute Market Data to a Participant, Authorized Trader or Customer. Each Participant or 

other Person receiving any such information through the Trading System operated by the Company

may redistribute such information only to such extent and in such manner as may be permitted by 

the Company from time to time.
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(c) Notwithstanding any other provision of this Rule 904, each Person subject to the 

jurisdiction of the Company hereby grants the Company a non-exclusive, perpetual, freely 

transferable, world-wide and royalty-free license to use, distribute, sub-license and disclose Market 

Data in any manner, media and jurisdiction as may be necessary for the operation of the Trading 

System or as may be required by CFTC Regulations.

(d) The Company shall not use for business or marketing purposes any proprietary data 

or personal information it collects or receives, from or on behalf of any Person, for the purpose of 

fulfilling its regulatory obligations; provided, however, that the Company may use such data or 

information for business or marketing purposes if the Person from whom it collects or receives such 

data or information clearly consents in writing to the Company’s use of such data or information in 

such manner. The Company shall not condition access to its market(s) or market services on a 

Person’s consent to the Company’s use of proprietary data or personal information for business or 

marketing purposes. 

(e) Each Person subject to the jurisdiction of the Company acknowledges and agrees 

that the Company may disclose and disseminate swap transaction and pricing data relating to 

Contracts executed on the Trading System or reported to the Company in accordance with Chapter

6 (in a manner designed to prevent attribution to or identification of such data with the applicable 

Participant, Authorized Trader or Customer) to other Persons with access to the Trading System

simultaneous with or subsequent to the Company’s transmittal of such data to a Swap Data 

Repository.

(f) Each Participant and Authorized Trader represents and warrants that, to the extent 

it provides personal information to SwapEx the use and/or transfer of which is subject to regulation 

under the laws and/or regulations of the jurisdiction(s) from which such Participant or Authorized 

Trader or its Authorized Users, or if applicable, such Participant’s DMA Customers, are accessing 

SwapEx (whether directly or indirectly), it has obtained any and all consents and disseminated any 

and all disclosures, in each case as required under such laws and regulations, in order to provide 

SwapEx with such information.

Rule 905. Confidentiality

Except as provided in Rule 904, all non-public information provided to the Company by a 

Participant, Authorized Trader or Authorized User shall be held in confidence and shall not be 

made known to any other Person except as follows:

(a) with the consent of the Participant, Authorized Trader or Authorized User 

providing such information;

(b) to a Government Agency or the regulatory authority of any foreign jurisdiction, if 

the Company is requested or legally required to do so by such Government Agency or regulatory 

authority;

(c) pursuant to legal process;
Information Classification: General

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(d) to a Derivatives Clearing Organization of which such Participant is a member or in 

connection with the clearing of a Contract;

(e) to a Swap Data Repository or other registered entity (as such term is defined in 

CFTC Regulations);

(f) subject to appropriate confidentiality requirements, to any Person providing 

services to the Company, including the Regulatory Services Provider;

(g) with respect to Market Data, in accordance with Rule 904(c);

(h) pursuant to an information-sharing agreement or other arrangement or procedures 

in accordance with Rule 907; and

(i) subject to appropriate confidentiality requirements, to the Board, any Committee, 

Company Officials, attorneys and auditors, and to agents and independent contractors that have 

been engaged by the Company who require such information in connection with the discharge of 

their duties to the Company; and 

(j) as otherwise permitted under the Rules.

Rule 906. Recording of Communications

The Company and/or the Regulatory Services Provider may record conversations and 

retain copies of electronic communications between Company Officials and Participants, 

Authorized Traders, Authorized Users and Clearing Firms. Any such recordings may be retained 

by the Company and/or the Regulatory Services Provider in such manner and for such periods of 

time as the Company may deem necessary or appropriate, including as may be required by 

Applicable Law, but the Company assumes no obligation to Participants, Authorized Traders, 

Authorized Users or Clearing Firms to retain any such recordings. The Company and/or the 

Regulatory Services Provider may disclose such recordings as required by Applicable Law or 

regulation or upon the request of any Government Agency. This Rule 906 shall be deemed to 

constitute the consent of each Participant, Authorized Trader, Authorized User and Clearing Firm 

to such recording and a waiver of any tone or other notice requirement in the State or country of 

such Person’s residence, place of organization or place of business. 

Rule 907. Information-Sharing Agreements

(a) The Company may enter into information-sharing agreements or other 

arrangements or procedures to coordinate surveillance with other markets. As part of any such 

information-sharing agreements or other arrangements or procedures adopted pursuant to this 

Rule, the Company may:

(1) provide market surveillance reports to other markets;
Information Classification: General

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(2) share information and documents concerning current and former 

Participants, Authorized Traders and Authorized Users with other markets;

(3) share information and documents concerning ongoing and completed 

Disciplinary Proceedings with other markets; and/or

(4) require Participants and Authorized Traders to provide information and 

documents to the Company at the request of other markets with which the Company has 

an information-sharing agreement or other arrangements or procedures.

(b) The Company may enter into any information-sharing agreement or arrangement 

with any Person or body (including the NFA, any Self-Regulatory Organization, any exchange, 

market, clearing organization, foreign regulatory authority, data repository or third-party reporting 

service) if the Company considers such information-sharing agreement or arrangement to be in 

furtherance of the Company’s purpose or duties under the Rules or any law or regulation applicable 

to the Company’s operation of swap execution facility. The Company will carry out such 

international information-sharing agreements as may be required by the CFTC. 

(c) The Company will not disclose any non-public information of any Participant, 

Authorized Trader, Authorized User or Customer pursuant to any information-sharing agreement 

or arrangement entered into in accordance with Rule 907(a) and (b) without a corresponding 

confidentiality agreement, unless the Person requesting the information is a Government Agency 

or the regulatory authority of any foreign jurisdiction or such disclosure is otherwise required by 

Applicable Law.

Rule 908. Force Majeure 

Notwithstanding any other provision of the Rules, any delay in or failure by the Company 

to perform its obligations under the Rules or any agreement with a Participant (including exhibits 

and schedules thereto) will not be considered a breach and will be excused to the extent that such

delay or failure is caused by any event beyond the reasonable control of the Company, including, 

without limitation, acts of God, acts of civil or military authorities, strikes or other labor disputes, 

fire or other natural disasters, interruption in telecommunications or internet or network provider 

services, acts or omission of a third party hardware or software supplier or a third party 

communications provider, power outages and governmental restrictions.

Rule 909. Extension or Waiver of Rules

The Company may, in its sole discretion, waive, or extend the time period for performing, 

any act or acts designated by the Rules, but only to the extent such waiver or extension is not 

inconsistent with the CEA or CFTC Regulations.

Rule 910. Effect of Amendment, Repeal or New Rule

(a) The Company may, in compliance with the CEA and CFTC Regulations, amend or 

repeal any Rule and/or adopt new Rules. The Company shall, in accordance with Rule 308 and to 

the extent required by CFTC Regulations, provide Participants with notice of any amendment or 
Information Classification: General

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repeal of any Rule or adoption of any new Rule prior to such amendment, repeal or adoption 

becoming effective. 

(b) Except as provided in Rule 910(c), any such amendment or repeal of a Rule or 

adoption of a new Rule, shall, as of the effective date of such amendment, repeal or adoption, as 

applicable, be binding on all Persons subject to the jurisdiction of the Company and all Contracts.

(c) If an amendment or repeal of a Rule or adoption of a new Rule materially changes 

the terms or conditions of a Contract or affects the value of open Contracts, then the amendment 

or repeal of a Rule or adoption of a new Rule will be binding only on Contracts entered into on or

after the effective date of such amendment, repeal or adoption, unless otherwise specifically 

approved by the Board or required by the CFTC.

Rule 911. Signatures

Rather than rely on an original signature, the Company may elect to rely on a signature that 

is transmitted, recorded or stored by any electronic, optical, or similar means (including telecopy, 

imaging, photocopying, electronic mail, electronic data interchange, telegram or telex) as if it were 

(and the signature shall be considered and have the same effect as) a valid and binding original. 

Rule 912. Governing Law; Legal Proceedings

(a) The Rules, and the rights and obligations of the Company, Participants, Authorized 

Traders and Authorized Users under the Rules, shall be governed by, and construed in accordance 

with, the laws of the State of New York applicable to contracts executed and performed wholly 

within the State of New York, without regard to any provisions of New York law that would apply 

the substantive law of a different jurisdiction.

(b) Subject to Rule 527, any action, suit or proceeding against the Company, its 

officers, directors, limited liability company members, employees, agents, or any member of any 

Committee must be brought with in one (1) year from the time that a cause of action has accrued. 

Any such action, suit or proceeding shall be brought in the State or Federal courts located within 

Borough of Manhattan in the City of New York. Each Participant and Authorized Trader expressly 

consents, for itself and its Authorized Users, to the jurisdiction of any such court, waives any 

objection to venue therein, and waives any right it may have to a trial by jury.

Rule 913. Emergencies

(a) During an Emergency, the Board may implement temporary emergency procedures 

and rules (“Emergency Rules”), subject to applicable provisions of the CEA and CFTC 

Regulations (including Core Principle 8 and Part 40). If the Chief Executive Officer (or, in the 

event that the Chief Executive Officer is unavailable, the Chairman) determines that Emergency 

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

reasonably be convened, the Chief Executive Officer (or, if applicable, the Chairman) shall have 

the authority, without Board action, to implement Emergency Rules with respect to such 

Emergency as he or she deems necessary or appropriate to respond to such Emergency. The 
Information Classification: General

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Company may take such other action as may be directed by the CFTC in response to an 

Emergency.

(b) Emergency Rules may require or authorize the Company, the Board, any 

Committee, the Chief Executive Officer (or, if the Chief Executive Officer is unavailable, the 

Chairman) or any other Officer to take actions necessary or appropriate to respond to the 

Emergency, including:

(1) suspending or curtailing trading or limiting trading to liquidation only (in 

whole or in part);

(2) extending, limiting or changing expiration dates or Trading Hours for one 

or more Contracts;

(3) in coordination with applicable Derivatives Clearing Organizations, 

ordering the liquidation or transfer of Contracts or the reduction of positions;

(4) ordering the fixing of a settlement price (which, for Cleared Contracts shall 

be done in coordination with applicable Derivatives Clearing Organizations);

(5) temporarily modifying or suspending any provision of the Rules;

(6) in coordination with applicable Derivatives Clearing Organizations, 

requiring additional Margin to be collected from Customers;

(7) imposing or modifying price limits, position limits or intraday market 

restrictions;

(8) in coordination with applicable Derivatives Clearing Organizations, 

transferring Customer contracts and related Margin and/or altering any Contract’s 

settlement terms or conditions; and/or

(9) providing for the carrying out of any actions under this Rule 913(b) by the 

Regulatory Services Provider.

(c) The Company will use reasonable efforts to notify the CFTC prior to implementing, 

modifying or terminating an Emergency Rule. If such prior notification is not practicable, the 

Company will notify the CFTC as soon as reasonably practicable, but in all circumstances within 

twenty-four (24) hours of the implementation, modification or termination of such Emergency 

Rule. 

(d) Whenever the Company takes action to respond to an Emergency it will, where 

practicable, ensure that prompt notice is given to Participants.

(e) When the Company determines that the Emergency has been reduced sufficiently 

to allow the Company to resume normal functioning, any such actions will be modified or 

terminated, as appropriate.
Information Classification: General

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(f) Upon taking any action in response to an Emergency, the Company shall document 

the decisions and deliberations related to such action. Such documentation will be maintained for 

at least five (5) years following the date on which the Emergency ceases to exist or to affect the 

Company, and all such documentation will be provided to the CFTC upon request.

Rule 914. Indemnification

The Company will indemnify, defend and hold harmless each Participant from and against 

Direct Losses to the extent arising out of any claim, action or allegation brought against such 

Participant under the laws of the United States of America by any third party that the use of the

Trading System by such Participant violates the copyright, patent or other intellectual property 

rights of such third party, provided, however, that such Participant (a) gives prompt written notice 

to the Company of any such claims, actions or allegations against it, (b) allows the Company to 

take control of the defense and settlement thereof at the sole expense of the Company and (c) does 

not agree to any settlement without the prior written consent of the Company. The obligation of 

the Company to provide the foregoing indemnity will not apply to the extent that (i) any software 

or hardware supplied to such Participant in respect of the Trading System is modified by persons 

or entities other than the Company and the alleged violation relates, directly or indirectly, to such 

modification, (ii) any such software or hardware is combined with other products, processes or 

materials not supplied or recommended in writing by the Company and such alleged violation 

would not have arisen but for such combination, (iii) any such software or hardware is modified 

by the Company in compliance with the directions of such Participant and the alleged violation 

relates to such modification, (iv) such Participant continues to use such software or hardware after 

the Company has made available a non-infringing alternative to such Participant or (v) the Direct 

Losses arise as a result of the fraud or willful misconduct of such Participant or any of its 

Authorized Traders or any of its Authorized Users or a breach of the terms of the Participant

Agreement or the Rules by such Participant, any of its Authorized Traders or its Authorized Users. 
Information Classification: General

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CHAPTER 10. CLEARING

Rule 1001. Clearing Firm Requirements

Except as otherwise provided in Rule 1005, a Clearing Firm that seeks to effect transactions 

on the Trading System for its own account or the account of any other Person must be a Participant.

Rule 1002. Submission of Contracts to Derivatives Clearing Organization

Contracts executed on or through the Trading System that are required to be cleared under 

Section 2(h) of the CEA or that are eligible for clearing at a Derivatives Clearing Organization and 

that are intended by the counterparties to such Contract to be submitted to a Derivatives Clearing 

Organization for clearing contemporaneously with execution on the Trading System (“Cleared 

Contracts”) shall be submitted for clearing through a Derivatives Clearing Organization. The 

Company shall submit Cleared Contracts entered into on or pursuant to the Rules to a Derivatives 

Clearing Organization on behalf of the parties to such Cleared Contracts.

Rule 1003. Clearing Firm Representation

Each Participant that is not a Clearing Firm must ensure and, upon request from the 

Company, provide evidence satisfactory to the Company that a Clearing Firm has, subject to such 

Clearing Firm’s credit limits and/or risk controls, guaranteed to the relevant Derivatives Clearing 

Organization the transactions in Cleared Contracts executed for the account(s) of the Participant, 

its Authorized Trader(s) and/or its or their Customer(s), as applicable. 

Rule 1004. Responsibility of Participants and Authorized Traders

Participants and Authorized Traders must, if requested, assist their respective Clearing 

Firms and the relevant Derivatives Clearing Organization in the clearing of its transactions in 

Cleared Contracts.

Rule 1005. Rules of the Derivatives Clearing Organization

The clearing services provided by the Derivatives Clearing Organization with respect to 

any Contract, and the rights and obligations of purchasers and sellers under Cleared Contracts

(including rights and obligations in respect of clearing and settlement, variation payments and 

performance at maturity), will be governed by the rules of the Derivatives Clearing Organization.
Information Classification: General

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CHAPTER 11. CONTRACT SPECIFICATIONS

Rule 1101. Non-Deliverable Foreign Exchange Forwards (USD Settlement 

Currency) (Uncleared)

Contract Structure Notional amounts down to single currency units traded 

against deliverable counter currencies for a custom or 

standard maturity using a default or custom fixing date.

Trading Hours From 5:00 p.m. ET on Sunday to 5:00 p.m. ET on 

Friday. At 5:00 p.m. ET each day, the Company rolls 

the trade date to the next Business Day.

Reference Currency (i.e., Non-deliverable 

currency)

ARS – Argentine Peso

BRL – Brazilian Real

CLP – Chilean Peso

CNY – Chinese Renminbi

COP – Colombian Peso

IDR – Indonesian Rupiah

INR – Indian Rupee

KRW – South Korean Won

MYR – Malaysian Ringgit

PEN – Peruvian Nuevo Sol

PHP – Philippine Peso

RUB – Russian Ruble

TWD – Taiwan Dollar

Settlement Currency USD

Underlying Swap Tenor The duration of time from the Effective Date to the 

Fixing Date. Subject to specific end date defined by 

user or the Company

Forward Rate Currency exchange rate expressed as the amount of 

Reference Currency per unit of Settlement Currency. 

Rate negotiated at the time of execution

Contract Size Minimum Contract size is $1.

Effective Date The date on which the parties enter into the Contract.

Maturity / Valuation Date The date specified in the Contract when the trade will 

be cash settled; it needs to be later than Effective Date.
Information Classification: General

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Fixing Dates The date at which the difference between the prevailing 

market exchange rate and the agreed upon exchange 

rate is calculated.

The Fixing Date is defined by the counterparties at the 

time of entering into the Contract; it needs to be earlier 

than Maturity / Valuation Date.

Last Trading Day for Defined (Fixed) 

Tenors

The last day on which the Contract can be traded is the 

New York business day preceding the Maturity Date

Settlement Procedure Bilateral settlement performed in settlement currency

Quoting Convention A currency pair is the quotation of the relative value of 

a currency unit against the unit of another currency in 

the foreign exchange market. The Company follows 

market convention with regards to quoting, but allows 

users the flexibility with regards to whether the quantity 

traded is expressed in base or terms notional. Foreign 

exchange non-deliverable forwards can be quoted up to 

6 decimal places.

In addition to the above, for a Non-Deliverable Foreign Exchange Forward (USD Settlement 

Currency) (Uncleared) Contract, all of the template terms of the Relevant EMTA Template in the 

currency pair that is the subject of such Contract shall apply to such Contract. For the avoidance 

of doubt, if the Relevant EMTA template becomes effective after the Effective Date of a Contract, 

such Relevant EMTA Template shall not apply to or amend the terms of such Contract. 
Information Classification: General

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Rule 1102. Cross-Rate Non-Deliverable Foreign Exchange Forwards 

(Uncleared)

Contract Structure Notional amounts down to single currency units traded 

against counter currencies for a custom or standard 

maturity using a standard or custom fixing date.

Trading Hours From 5:00 p.m. ET on Sunday to 5:00 p.m. ET on 

Friday. At 5:00 p.m. ET each day, the Company rolls 

the trade date to the next Business Day.

Reference Currency (i.e., Non-deliverable 

currency)

ARS – Argentine Peso

BRL – Brazilian Real

CLP – Chilean Peso

CNY – Chinese Renminbi

COP – Colombian Peso

IDR – Indonesian Rupiah

INR – Indian Rupee

KRW – South Korean Won

MYR – Malaysian Ringgit

PEN – Peruvian Nuevo Sol

PHP – Philippine Peso

RUB – Russian Ruble

TWD – Taiwan Dollar

Settlement Currency AUD – Australian Dollar

CAD – Canadian Dollar

EUR – Euro

GBP – British Pound

JPY – Japanese Yen

Underlying Swap Tenor The duration of time from the Effective Date to the 

Fixing Date. Subject to specific end date defined by 

user or the Company.

Forward Rate Currency exchange rate expressed as the amount of 

Reference Currency per unit of Settlement Currency. 

Rate negotiated at the time of execution.

Contract Size Minimum Contract size is 1 unit of settlement currency 

unit.

Effective Date The date on which the parties enter into the Contract.

Maturity / Valuation Date The date specified in the Contract when the trade will 

be cash settled; it needs to be greater than Effective 

Date.
Information Classification: General

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Fixing Dates The date at which the difference between the prevailing 

market exchange rate and the agreed upon exchange 

rate is calculated.

The Fixing Date is defined by the counterparties at the 

time of entering into the Contract; it needs to be earlier 

than Maturity / Valuation Date.

Last Trading Day for Defined (Fixed) 

Tenors

The last day on which the Contract can be traded is the 

New York business day preceding the Maturity Date

Settlement Procedure Bilateral settlement performed in settlement currency

Quoting Convention A currency pair is the quotation of the relative value of 

a currency unit against the unit of another currency in 

the foreign exchange market the Company follows 

market convention with regards to quoting, but allows 

users the flexibility with regards to whether the quantity 

traded is expressed in base or terms notional. Foreign 

exchange non-deliverable forwards can be quoted up to 

6 decimal places.

For the Cross-Rate Non-Deliverable Foreign Exchange Forwards (uncleared), the cash settlement 

price will be derived from a combination of (1) the Spot Rate identified in the relevant EMTA 

Template for a foreign exchange non-deliverable forward comprised of the applicable Reference 

Currency assuming USD as Settlement Currency (the “Non-Deliverable Component Pair”) and (2) 

the WM/Reuters 4pm Closing Spot Rate for the applicable Settlement Currency against USD. 

Therefore, in addition to the above, for a Cross-Rate Non-Deliverable Foreign Exchange Forward 

(Uncleared) Contract, all of the template terms of the Relevant EMTA Template in the currency 

pair that represents the Non-Deliverable Component Pair of a particular Contract shall apply to 

such Contract. For the avoidance of doubt, if the Relevant EMTA template becomes effective after 

the Effective Date of a Contract, such Relevant EMTA Template shall not apply to or amend the 

terms of such Contract. 

The WM/Reuters benchmark Closing Spot Rates are administered by Thomson Reuters Benchmark 

Services Ltd. which uses data from independent third parties to calculate and validate its benchmark 

rates. Currenex, Inc., is an affiliate of the Company that offers a foreign exchange trading platform for 

the trading of instruments that are not regulated as swaps under the Commodity Exchange Act, as 

amended, and currently serves as a secondary source of data for validation purposes on three currency 

pairs: USD/CHF, EUR/USD and USD/JPY. 
Information Classification: General

90

Rule 1103. Synthetic Non-Deliverable Foreign Exchange Forwards 

(Uncleared)

Contract Structure Notional amounts down to single currency units traded 

against counter currencies for a custom or standard 

maturity using a standard or custom fixing date.

Trading Hours From 5:00 p.m. ET on Sunday to 5:00 p.m. ET on 

Friday. At 5:00 p.m. ET each day, the Company rolls 

the trade date to the next Business Day.

Reference Currency (i.e., Non-deliverable 

currency)

AUD – Australian Dollar

CAD – Canadian Dollar

CHF – Swiss Franc

CZK – Czech Republic Koruna

DKK – Danish Krone

EUR - Euro

GBP – British Pound Sterling

HKD – Hong Kong Dollar

JPY – Japanese Yen

MXN – Mexican Peso

NOK – Norwegian Krone

NZD – New Zealand Dollar

SEK – Swedish Krona 

SGD – Singapore Dollar

THB – Thai Baht 

TRY – Turkish Lira 

ZAR – South African Rand

Settlement Currency

USD – US Dollar

Underlying Swap Tenor The duration of time from the Effective Date to the 

Fixing Date. Subject to specific end date defined by 

user or the Company.

Forward Rate Currency exchange rate expressed as the amount of 

Reference Currency per unit of Settlement Currency. 

Rate negotiated at the time of execution.

Contract Size Minimum Contract size is 1 unit of settlement currency 

unit.

Effective Date The date on which the parties enter into the Contract.
Information Classification: General

91

Maturity / Valuation Date The date specified in the Contract when the trade will 

be cash settled; it needs to be greater than Effective 

Date.

Fixing Dates The date at which the difference between the prevailing 

market exchange rate and the agreed upon exchange 

rate is calculated.

The Fixing Date is defined by the counterparties at the 

time of entering into the Contract; it needs to be earlier 

than Maturity / Valuation Date.

Fixing Source WM/Reuters 4pm Closing Spot Rate for the applicable 

Reference Currency against 

 USD for AUD, CAD, EUR, GBP, HKD, JPY, 

MXN, NZD, SGD, THB, TRY and ZAR

 USD derived from the EUR closing spot rate 

for CHF, CZK, DKK, NOK, SEK and the 

EURUSD closing spot rate

Last Trading Day for Defined (Fixed) 

Tenors

The last day on which the Contract can be traded is the 

New York business day preceding the Maturity Date

Settlement Procedure Bilateral settlement performed in settlement currency

Quoting Convention A currency pair is the quotation of the relative value of 

a currency unit against the unit of another currency in 

the foreign exchange market. The Company follows 

market convention with regards to quoting, but allows 

users the flexibility with regards to whether the quantity 

traded is expressed in base or terms notional. Foreign 

exchange non-deliverable forwards can be quoted up to 

6 decimal places.

The WM/Reuters benchmark Closing Spot Rates are administered by Thomson Reuters Benchmark 

Services Ltd. which uses data from independent third parties to calculate and validate its benchmark 

rates. Currenex, Inc is an affiliate of the Company that offers a foreign exchange trading platform 

for the trading of instruments that are not regulated as swaps under the Commodity Exchange Act, 

as amended, and currently serves as a secondary source of data for validation purposes on three 

currency pairs: USD/CHF, EUR/USD and USD/JPY. 
Information Classification: General

92

Rule 1104. LCH Clearnet Limited Cleared Non-Deliverable Foreign 

Exchange Forwards*

Contract Structure Notional amounts down to single currency units traded 

against deliverable counter currencies for a custom or 

standard maturity using a default or custom fixing date.

Trading Hours From 5:00 p.m. ET on Sunday to 5:00 p.m. ET on 

Friday. At 5:00 p.m. ET each day, the Company rolls 

the trade date to the next Business Day.

Reference Currency (i.e., Non-deliverable 

currency)

BRL – Brazilian Real

CLP – Chilean Peso

CNY – Chinese Renminbi

COP – Colombian Peso

IDR – Indonesian Rupiah

INR – Indian Rupee

KRW – South Korean Won

MYR – Malaysian Ringgit

PEN – Peruvian Nuevo Sol

PHP – Philippine Peso

RUB – Russian Ruble

TWD – Taiwan Dollar

Settlement Currency USD

Underlying Swap Tenor The duration of time from the Effective Date to the 

Fixing Date. Subject to specific end date defined by 

user within the requirements set by LCH Clearnet 

Limited.

Forward Rate Currency exchange rate expressed as the amount of 

Reference Currency per unit of Settlement Currency. 

Rate negotiated at the time of execution

Contract Size Minimum Contract size is $1.

Effective Date The date on which the parties enter into the Contract.

Maturity / Valuation Date The date specified in the Contract when the trade will 

be cash settled; it needs to be later than Effective Date 

within the requirements set by LCH Clearnet Limited.
Information Classification: General

93

Fixing Dates The date at which the difference between the prevailing 

market exchange rate and the agreed upon exchange 

rate is calculated.

The Fixing Date is defined by the counterparties at the 

time of entering into the Contract; it needs to be earlier 

than Maturity / Valuation Date.

Last Trading Day for Defined (Fixed) 

Tenors

The last day on which the Contract can be traded is the 

New York business day preceding the Maturity Date

Settlement Procedure Centrally cleared by LCH Clearnet Limited.

Quoting Convention A currency pair is the quotation of the relative value of 

a currency unit against the unit of another currency in 

the foreign exchange market. The Company follows 

market convention with regards to quoting, but allows 

users flexibility with regards to whether the quantity 

traded is expressed in base or terms notional. Foreign 

exchange non-deliverable forwards can be quoted up to 

6 decimal places.

Derivatives Clearing Organization LCH Clearnet Limited

*The terms and conditions of the swap also include the product eligibility criteria, as established 

by LCH Clearnet Limited in its rules or bylaws, which are incorporated by reference herein as 

terms and conditions of the swap.
Exhibit C 

Rulebook (redline) 

[see attached]
 

Revised June 16January 28, 20221

SWAPEX, LLC 

RULEBOOK

JUNE FEBRUARY 14 30, 20221

Information Classification: General 

i 

TABLE OF CONTENTS 

CHAPTER 1. DEFINITIONS ........................................................................................................ 1

Rule 101. General .................................................................................................................1

Rule 102. Rules of Construction ........................................................................................10

CHAPTER 2. GOVERNANCE .................................................................................................... 11

Rule 201. Board ..................................................................................................................11

Rule 202. Officers ..............................................................................................................12

Rule 203. Qualifications of Directors, Officers, Committee Members, Disciplinary 

Panel Members and Appeal Panel Members .....................................................12

Rule 204. Standing Committees .........................................................................................13

Rule 205. Additional Committees ......................................................................................14

Rule 206. Conflicts of Interest............................................................................................14

Rule 207. Maintenance of Books and Records by the Company; Provision of 

Information to the CFTC ...................................................................................16

CHAPTER 3. TRADING SYSTEM............................................................................................. 17

Rule 301. Access to the Trading System ............................................................................17

Rule 302. Participant Eligibility Requirements ..................................................................17

Rule 303. Participant Application Procedure .....................................................................18

Rule 304. Authorized Traders ............................................................................................20

Rule 305. Authorized Users ...............................................................................................21

Rule 306. Independent Software Vendors ..........................................................................22

Rule 307. Limitations on Access to the Trading System ...................................................22

Rule 308. Notices and Other Communications ..................................................................23

Rule 309. Designated Representatives ...............................................................................23

Rule 310. Application of Rules; Jurisdiction of the Company ...........................................23

Rule 311. Withdrawal of Participant ..................................................................................24

Rule 312. Dues, Assessments and Fees ..............................................................................24

CHAPTER 4. BUSINESS CONDUCT ........................................................................................ 26

Rule 401. Duties and Responsibilities of Participants and Authorized Traders .................26

Rule 402. Required Notices ................................................................................................27

Rule 403. Inspections by the Company ..............................................................................28

Rule 404. Financial and Related Reporting Requirements ................................................28

Rule 405. Restrictions on Activity .....................................................................................29

Rule 406. Customers ..........................................................................................................29

Rule 407. Publication of Trade Information.......................................................................30

Rule 408. Disaster Recovery; Business Continuity ............................................................30

Rule 409. Anti-Money Laundering Obligations .................................................................30
Information Classification: General 

ii 

CHAPTER 5. TRADING PRACTICES ....................................................................................... 31

Rule 501. Scope ..................................................................................................................31

Rule 502. Rule Violations ..................................................................................................31

Rule 503. Just and Equitable Principles of Trade; Acts Detrimental .................................31

Rule 504. Fraudulent Acts Prohibited ................................................................................31

Rule 505. Fictitious or Noncompetitive Transactions Prohibited ......................................31

Rule 506. Market Manipulation Prohibited ........................................................................31

Rule 507. Disruptive Trading Practices Prohibited ............................................................32

Rule 508. Prohibition of Misstatements .............................................................................32

Rule 509. Misuse of the Trading System ...........................................................................32

Rule 510. Financial or Other Incentive Programs ..............................................................32

Rule 511. Withholding of Customer Orders Prohibited; Priority of Customer Orders ......32

Rule 512. Handling of Customer Orders ............................................................................33

Rule 513. Disclosing Orders and Requests for Quotes Prohibited; Post-Trade 

Anonymity .........................................................................................................34

Rule 514. Wash Sales Prohibited .......................................................................................34

Rule 515. “Moneypassing,” Prearranged, Pre-Negotiated and Noncompetitive 

Transactions Prohibited .....................................................................................34

Rule 516. Responsibility for Customer Orders ..................................................................35

Rule 517. Discretionary Customer Orders .........................................................................35

Rule 518. Recordkeeping; Audit Trail ...............................................................................35

Rule 519. Position Accountability ......................................................................................37

Rule 520. Position Limits ...................................................................................................37

Rule 521. Position Information ..........................................................................................37

Rule 522. Aggregation of Positions....................................................................................37

Rule 523. Position Limits and Position Accountability Levels ..........................................38

Rule 524. Operation of the Trading System .......................................................................38

Rule 525. Confirmation of Transactions ............................................................................40

Rule 526. Trade Cancellations, Error Correction and Price Adjustments ..........................41

Rule 527. Limitation of Liability; No Warranties ..............................................................49

Rule 528. Swap Data Reporting .........................................................................................51

Rule 529. Updating Reportable Swap Data ........................................................................53

CHAPTER 6. BLOCK TRADES ................................................................................................. 54

Rule 601. Block Trades ......................................................................................................54

Rule 602. Time-Stamp Requirements for Block Trades ....................................................55

CHAPTER 7. DISCIPLINARY RULES ...................................................................................... 56

Rule 701. General ...............................................................................................................56

Rule 702. Inquiries and Investigation .................................................................................57

Rule 703. Reports of Investigations ...................................................................................58

Rule 704. Opportunity to Respond .....................................................................................59

Rule 705. Review of Investigation Reports ........................................................................59

Rule 706. Notice of Charges ..............................................................................................60

Rule 707. Service of Notice................................................................................................61
Information Classification: General 

iii 

Rule 708. Answer to Notice of Charges .............................................................................61

Rule 709. Settlements .........................................................................................................62

Rule 710. Disciplinary Panel ..............................................................................................63

Rule 711. Respondent’s Review of Evidence ....................................................................64

Rule 712. Hearings .............................................................................................................65

Rule 713. Decision of Hearing Panel .................................................................................66

Rule 714. Sanctions ............................................................................................................67

Rule 715. Appeal from Hearing Panel Decisions and Summary Actions (Other than 

Summary Impositions of Fines) ........................................................................68

Rule 716. Summary Imposition of Fines ............................................................................70

Rule 717. Summary Suspensions and Other Summary Actions ........................................71

Rule 718. Rights and Responsibilities After Suspension or Termination ..........................72

Rule 719. Notice of Disciplinary Proceedings ...................................................................72

Rule 720. Regulatory Services Provider ............................................................................72

CHAPTER 8. ARBITRATION RULES ...................................................................................... 74

Rule 801. General ...............................................................................................................74

Rule 802. Forum and Arbitration Rules .............................................................................74

Rule 803. Initiating an Arbitration Claim ...........................................................................74

Rule 804. Claims Relating to Trade Cancellations or Price Adjustments ..........................74

Rule 805. Penalties .............................................................................................................74

CHAPTER 9. MISCELLANEOUS .............................................................................................. 76

Rule 901. Contract Specifications ......................................................................................76

Rule 902. Legal Certainty...................................................................................................76

Rule 903. Trading by Company Officials Prohibited; Misuse of Material, NonPublic Information .............................................................................................76

Rule 904. Proprietary Information; Use of Market Data ....................................................77

Rule 905. Confidentiality ...................................................................................................79

Rule 906. Recording of Communications ..........................................................................80

Rule 907. Information-Sharing Agreements ......................................................................80

Rule 908. Force Majeure ....................................................................................................81

Rule 909. Extension or Waiver of Rules ............................................................................81

Rule 910. Effect of Amendment, Repeal or New Rule ......................................................81

Rule 911. Signatures ...........................................................................................................82

Rule 912. Governing Law; Legal Proceedings ...................................................................82

Rule 913. Emergencies .......................................................................................................82

Rule 914. Indemnification ..................................................................................................84

CHAPTER 10. CLEARING ......................................................................................................... 85

Rule 1001. Clearing Firm Requirements ..............................................................................85

Rule 1002. Submission of Contracts to Derivatives Clearing Organization ........................85

Rule 1003. Clearing Firm Representation ............................................................................85

Rule 1004. Responsibility of Participants and Authorized Traders .....................................85

Rule 1005. Rules of the Derivatives Clearing Organization ................................................85
Information Classification: General 

iv 

CHAPTER 11. CONTRACT SPECIFICATIONS ....................................................................... 86

Rule 1101. Non-Deliverable Foreign Exchange Forwards (USD Settlement Currency) 

(Uncleared) ........................................................................................................86

Rule 1102. Cross-Rate Non-Deliverable Foreign Exchange Forwards (Uncleared) ...........88

Rule 1103. Synthetic Non-Deliverable Foreign Exchange Forwards (Uncleared) ..............90

Rule 1104. LCH Clearnet Limited Cleared Non-Deliverable Foreign Exchange 

Forwards* ..........................................................................................................92
 

CHAPTER 1. DEFINITIONS 

Rule 101. General 

Unless the context otherwise requires, the terms defined in this Rule have the meanings 

specified below for all purposes under the Rules: 

“Affiliate” means, with respect to any Person, any Person who, directly or indirectly, 

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

“Appeal Panel” means the panel appointed in accordance with Rule 715 to consider an 

appeal from an order of a Hearing Panel pursuant to Rule 713 or a notice of summary action 

imposed pursuant to Rule 717 or appointed to consider an appeal from a summary imposition of a 

fine pursuant to Rule 716, and to affirm, modify or reverse all or any portion of such order, notice 

or fine. 

“Appeal Panel Member” means an individual who is appointed to, and serves as, a member 

of an Appeal Panel. 

“Applicable Law” means, with respect to any Person, any statute, or any rule, regulation 

or ordinance of any Government Agency, Derivatives Clearing Organization or Self-Regulatory 

Organization, in any case applicable to such Person. 

 “Audit Trail” has the meaning given that term in Rule 518(b). 

“Authorized Trader” means a Person (not an individual) who is authorized by a Participant 

to access the Trading System pursuant to Rule 304.

“Authorized User” means an individual who is employed by or is an agent of a Participant, 

an Authorized Trader or a Clearing Firm and who has been authorized to access the Trading 

System pursuant to Rule 305. When used in reference to a Participant, “Authorized User” means 

and includes (i) such Participant’s Authorized Users and (ii) employees and agents of the 

Participant’s Authorized Traders who have been designated by the Authorized Trader as 

Authorized Users. 

“Block Trade” means a publicly reportable swap transaction that: 

 (1) Involves a swap that is listed on a registered swap execution facility; 

 (2) Occurs away from the Company’s trading system and is executed 

 pursuant to Chapter 6 of the Rules; 

 (3) Has a notional or principal amount at or above the appropriate minimum block 

 size applicable to such swap; and 

 (4) Is reported subject to the Rules, including the appropriate time delay 

 requirements set forth in CFTC Regulation 43.5. 
 

 

Information Classification: General 

2 

“Board” means the Board of Directors of the Company. 

“Breakage Agreement” means any arrangement that provides for the assessment of liability 

or payment of damages between the parties to the Cleared Contract in the event the Cleared 

Contract is rejected from clearing, as such term is defined or interpreted by the CFTC from time 

to time. 

“Business Day” means a day on which the Company is open for trading. 

“CEA” means the Commodity Exchange Act. 

“CFTC” means the Commodity Futures Trading Commission. 

“CFTC Regulations” means the rules, regulations and orders promulgated by the CFTC. 

“Chairman” means the chairman of the Board. 

“Chief Compliance Officer” means the individual appointed by the Board as the 

Company’s chief compliance officer. 

“Chief Executive Officer” means the individual appointed by the Board as the Company’s 

chief executive officer. 

“Cleared Contracts” has the meaning given that term in Rule 1002. 

“Clearing Firm” means a Person, whether or not a Participant, that has been approved as a 

member or participant in one or more Derivatives Clearing Organizations and that is authorized 

pursuant to the rules of such a Derivatives Clearing Organization to clear Contracts for customers; 

provided that, the term “Clearing Firm” as used herein shall be deemed to refer to such Person 

solely in its capacity as a Clearing Firm and not, as applicable, in its capacity as a Participant.

“Committee” means a committee established by the Board. 

“Company” means SwapEx, LLC or any successor thereto. 

“Company Official” means any Director or Officer of, or individual employed directly by, 

the Company, or any individual rendering similar services to the Company under an administrative 

or similar agreement. 

“Company Proceeding” means any Disciplinary Proceeding or an appeal from a 

Disciplinary Proceeding. 

“Company Requirements” means (i) the Rules and other requirements implemented by the 

Company under the Rules, (ii) the applicable Contract Specifications, and (iii) the Participant 
 

 

Information Classification: General 

3 

Documentation and other contractual obligations between a Participant, Authorized Trader and/or 

Authorized User and the Company. 

“Contract” means a Swap and an Exempt Swap. 

“Contract Specifications” means, with respect to any Contract, the terms and conditions, 

rules or other trading protocols, as adopted, amended, supplemented or otherwise modified from 

time to time by the Company and published on the Company’s website in accordance with Part 40 

of the CFTC Regulations. 

“Control” means the possession, direct or indirect, of the power to direct or cause the 

direction of the management and policies of a Person, whether through the ownership of voting 

securities, by contract, or otherwise. The terms “Controlling” or “Controlled” shall have meanings 

correlative to the foregoing. 

“Covered Person” has the meaning given that term in Rule 903(b). 

“CTI” has the meaning given that term in Rule 518(d). 

“Customer” means (i) an Eligible Contract Participant that has authorized a Participant or 

Authorized Trader to cause transactions in Contracts to be made for its account, and (ii) a DMA 

Customer. 

“Customer Order” means, with respect to a Participant or Authorized Trader, an Order or 

Request for Quote that has been provided to such Participant or Authorized Trader, as applicable, 

by or on behalf of a Customer. 

“DMA Customer” means an Eligible Contract Participant who is authorized by a 

Participant to submit Customer Orders electronically on the Participant’s system or platform for 

onward transmission to the Trading System through the User ID assigned to an Authorized User 

of the Participant. 

“Derivatives Clearing Organization” has the meaning given that term in section 1a(9) of 

the CEA and, as used in these Rules, means a derivatives clearing organization that is registered 

or exempt from registration as such with the CFTC and that is engaged in the clearing of one or 

more Contracts. 

“Designated Representative” means an individual, designated by a Participant or an 

Authorized Trader pursuant to Rule 309, with authority to act on behalf of such Participant or 

Authorized Trader, as applicable. 

“Direct Losses” means any Losses other than those described in Rule 527(d). 

“Director” means any member of the Board. 

“Disciplinary Panel” means, as the context may require, either or both of a Review Panel 

and a Hearing Panel. 
 

 

Information Classification: General 

4 

“Disciplinary Panel Member” means an individual who is appointed to, and serves as, a 

member of a Disciplinary Panel. 

“Disciplinary Proceeding” means any inquiry, investigation, disciplinary proceeding, 

summary imposition of fines, summary suspension or other summary action conducted pursuant 

to Chapter 7 of the Rules. 

“Eligible Contract Participant” has the meaning given that term in section 1a(18) of the 

CEA and CFTC Regulations. 

“Emergency” means any occurrences or circumstance which, in the opinion of the Board, 

the Chairman or the Chief Executive Officer, requires immediate action, and threatens, or may 

threaten, such things as the fair and orderly trading in, or the liquidation of or delivery pursuant to, 

any Contract or the timely collection and payment of funds in connection with clearing and 

settlement of, any Contract, by a Derivatives Clearing Organization, including: 

(1) any manipulative or attempted manipulative activity; 

(2) any actual, attempted or threatened corner, squeeze, congestion or undue 

concentration of positions in a Contract; 

(3) any circumstance that may materially affect the performance of a Contract, 

including failure of the payment system or the bankruptcy or insolvency of a Participant; 

(4) any action taken by any United States or foreign regulatory, self-regulatory, 

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

thereof; or other Person exercising, or entitled to exercise any administrative, executive, 

judicial, legislative, police, regulatory or taxing authority or power; any Derivatives 

Clearing Organization, board of trade or other exchange (foreign or domestic) or facility 

that, in any such case, may have a direct impact on trading on the Trading System or the 

settlement and clearing of any Contract; 

(5) any circumstance that may have a severe, adverse effect upon the functions 

and facilities of the Company. 

“EMTA” means EMTA, Inc., the Emerging Markets Traders Association. 

“Error Trade” has the meaning given that term in Rule 526(a)(2). 

“Exempt Swap” means a swap, as defined under Section 1a(47) of the CEA and CFTC 

Regulations, that is listed for trading on the Trading System but that is not required to be cleared 

pursuant to Section 2(h)(2)(D) of the CEA and CFTC Regulation 39.5, without regard to whether 

such Exempt Swap is submitted to a Derivatives Clearing Organization for clearing. 
 

 

Information Classification: General 

5 

“Government Agency” means the CFTC and any other governmental agency or department 

that regulates the activities of the Company, a Participant, an Authorized Trader or Authorized 

User, as applicable. 

“Hearing Panel” means the panel appointed pursuant to Rule 710 to conduct hearings in 

connection with Disciplinary Proceedings (other than summary impositions of fines pursuant to 

Rule 716), to make findings, render decisions, and impose sanctions pursuant to Chapter 7 of the 

Rules. 

“Independent Director” has the meaning given that term in Rule 204(b). 

“Independent Software Vendor” or “ISV” means a Person that makes available to 

Participants and Authorized Traders a system or platform offering smart order routing, front-end 

trading applications, an aggregator platform or a combination of the foregoing but that does not 

provide the ability to effect the execution of Contracts other than through the Trading System. 

“Indication of Interest” means an indicative price level provided for a Contract which is 

not executable. 

“Insolvent” and “Insolvency” means the occurrence of any of the following events with 

respect to a Person: 

(1) the Person is determined to be insolvent by a Government Agency or SelfRegulatory Organization; 

(2) if the Person is a member of the Securities Investor Protection Corporation, 

a court of competent jurisdiction finds that the Person meets any one of the conditions 

set forth in clauses (A), (B), (C) or (D) of Section 5(b)(1) of the Securities Investor 

Protection Act of 1970; 

(3) in the event of the entry or the making of a decree or order by a court, 

Government Agency or other supervisory authority of competent jurisdiction (i) 

adjudging the Person as bankrupt or insolvent, (ii) approving as properly filed a petition 

seeking reorganization, arrangement, liquidation, dissolution, adjustment or composition 

of or in respect of the Person under the Bankruptcy Code or any other applicable federal, 

state or other U.S. or non-U.S. law, including any bankruptcy, insolvency, 

reorganization, liquidation, dissolution or similar law, (iii) appointing a receiver, 

custodian, liquidator, provisional liquidator, administrator, provisional administrator, 

assignee, trustee, sequestrator or other similar official for the Person or for any substantial 

part of its property, (iv) ordering the winding up or liquidation of the Person’s affairs or 

(v) consenting to the institution by the Person of proceedings to be adjudicated as a 

bankrupt or insolvent; or 

(4) the filing by the Person of a petition, or any case or proceeding, seeking 

reorganization or relief under the Bankruptcy Code or any other applicable federal, state 

or other U.S. or non-U.S. law, including any bankruptcy, insolvency, reorganization, 

liquidation, dissolution or similar law, or the consent by the Person to the filing of any 
 

 

Information Classification: General 

6 

such petition, case or proceeding or to the appointment of a receiver, custodian, 

liquidator, provisional liquidator, administrator, provisional administrator, assignee, 

trustee, sequestrator or other similar official for the Person or for any substantial part of 

its property, or the making by the Person of an assignment for the benefit of its creditors, 

or the admission by the Person in writing of its inability to pay its debts generally as they 

become due, or the taking of corporate or similar action by the Person in furtherance of 

the foregoing. 

“Interested Person” has the meaning given that term in Rule 206(a). 

“Investigation Report” has the meaning given that term in Rule 703(a).

“ISDA” means the International Swaps and Derivatives Association Inc. 

“LLC Agreement” means the Limited Liability Company Agreement of the Company, as 

it may be amended, amended and restated or otherwise modified from time to time. 

“Losses” means any losses, damages, costs or expenses (including attorneys’ fees) whether 

direct, indirect, special, incidental, consequential, punitive or otherwise of any kind, including any 

loss of revenue, loss of actual or anticipated profits, loss of contracts, loss of the use of money, 

loss of anticipated savings, loss of business, loss of opportunity, loss of goodwill, loss of reputation 

or loss of, damage to or corruption of data. 

“Maker” has the meaning given that term in Rule 524(b)(1). 

“Market Data” means: 

(1) all data and other information submitted for entry into the Trading System 

or relating in any way to a Contract, including the time at which such data or information 

was submitted to or generated by the Trading System; 

(2) any data or other information contained in, derived from or related to any 

of the foregoing, including the format, compilation and presentation thereof; and 

(3) any data or information transmitted, published or disseminated by the 

Company to Participants, Authorized Traders, Authorized Users or any publisher of such 

data or information with whom the Company has a written agreement relating thereto. 

“Market Order” means an order to buy or sell an instrument at the current market price. 

“Market Regulation Department” means all officers, employees and agents of the 

Company (including the Regulatory Services Provider) that assist the Company in the 

implementation, surveillance and enforcement of the Rules and other Company Requirements. 

“NFA” means the National Futures Association. 
 

 

Information Classification: General 

7 

“No-Bust Ranges” has the meaning given to that term in Rule 526(g). 

“Nominating Committee” means the Committee of the Board constituted pursuant to Rule 

204. 

“Non-Deliverable Component Pair” has the meaning given that term in Rule 1102. 

“Officer” has the meaning given that term in Rule 202. 

“Order” means either a bid or an offer for a Contract on the Trading System, and includes 

any modification to or cancellation of such a bid or offer, but does not include a Request for Quote 

or an Indication of Interest. 

“Order Book” has the meaning given that term in CFTC Regulation 37.3. 

“Participant” means a Person that has been authorized by the Company to have access to 

the Trading System pursuant to Rule 303 and to permit Authorized Traders and Authorized Users 

to have access to the Trading System pursuant to Rule 304 and Rule 305. 

“Participant Committee” means the committee of the Board constituted pursuant to 

Rule 204.

“Participant Documentation” means the agreements (together with any applicable 

schedules, exhibits or appendices thereto) that are required to be executed and delivered to the 

Company before a Person may have access to the Trading System, including the Participant 

Agreement, Appointment of Authorized Trader, Authorized User ID Request Form, and User 

License Agreement, as applicable. 

“Permitted Transaction” means any transaction involving a Contract that is not a Required 

Transaction. 

“Person” means an individual, sole proprietorship, partnership, limited liability company, 

association, firm, trust, corporation or other entity, as the context may require. 

“Proprietary Information” has the meaning given that term in Rule 904. 

“Public Director” has the meaning given that term in Rule 201(d).means (i) prior to the 

time at which the CFTC Regulations establish required qualifications for public directors, any 

Director, and (ii) from and after such time at which the CFTC Regulations establish required 

qualifications for public directors, a Director found by the Board to have satisfied such 

requirements. 

“Recipient” has the meaning given that term in Rule 524(b)(2). 

“Regulatory Oversight Committee” means the committee of the Board constituted pursuant 

to Rule 204. 
 

 

Information Classification: General 

8 

“Regulatory Services Provider” means NFA and such other organizations, if any, that 

provide regulatory services to the Company, in each case, together with those certain employees 

and agents of any such organization that provide regulatory services to the Company. 

“Relevant EMTA Template” means all of the template terms for the confirmation of a 

foreign exchange non-deliverable forward transaction in a currency pair that is subject of a 

particular Contract as recommended by EMTA or a recognized successor (such template terms in 

effect on the Effective Date of the Contract and published and available at www.emta.org or any 

successor website). 

“Reportable Swap Data” means both (i) Swap Transaction and Pricing Data; and (ii) 

Required Swap Creation Data. 

“Reporting Counterparty” means, for purposes of Part 45 of CFTC Regulations, the 

Participant or Authorized Trader that is designated as such pursuant to Rule 528(b). 

“Request for Quote” and “RFQ” have the meaning given those terms in Rule 524(b) and, 

unless the context otherwise requires, include both requests for quotes pursuant to Rule 524(b) and 

responses to any such requests. 

“Required Swap Creation Data” means any data required to be reported under CFTC 

Regulation 45 and Appendix 1 thereto. 

“Required Transaction” means any transaction involving a Contract that is subject to the 

trade execution mandate under section 2(h)(8) of the CEA and is not a Block Trade. 

“Reverse RFQ Review Period” has the meaning given that term in Rule 524(b)(2). 

“Review Panel” means the panel, if any, appointed pursuant to Rule 705 to review a 

completed Investigation Report and to determine whether a reasonable basis exists for finding a 

violation of the Rules and authorizing the issuance of a notice of charges pursuant to Rule 706. 

“Rule” or “Rules” means the rules of SwapEx as set forth in this Rulebook. 

“Self-Regulatory Organization” has the meaning given that term in CFTC 

Regulation 1.3(ee) and in section 3(a)(26) of the Securities Exchange Act of 1934. 

“Sender” has the meaning given that term in Rule 524(b)(2). 

“Significant Liquidity Provider” has the meaning given that term in Rule 408(b). 

“Standard RFQ Review Period” has the meaning given that term in 524(b)(1)(iii). 
 

 

Information Classification: General 

9 

“Stop Order” or “Stop Loss Order” means an order with a trigger price placed above the 

market (buy stop) or below the market (sell stop). A Stop Order becomes a Market Order when 

triggered. (Not offered on SwapEx currently) 

“Summary Proceeding” means a Disciplinary Proceeding conducted pursuant to Rule 716 

or Rule 717. 

“Swap” has the meaning given that term in section 1a(47) of the CEA and CFTC 

Regulations but does not include Exempt Swaps, and, as used in these Rules, refers solely to 

transactions in Swaps (including Orders and RFQs) that are listed for trading on the Trading 

System. 

“Swap Data Repository” has the meaning given that term in section 1a(48) of the CEA and 

in Part 49 of the CFTC Regulations, as used in these Rules, means a swap data repository that is 

registered or exempt from registration as such with the CFTC and that receives Reportable Swap 

Data in respect of one or more Contracts. 

“Swap Transaction and Pricing Data” means any data required to be reported under Part 

43 of the CFTC Regulations and Appendix A thereto. 

“Taker” has the meaning given that term in Rule 524(b)(1). 

“Terms Incorporated by Reference” has the meaning given that term in Rule 525(b). 

“Trade Communication” has the meaning given that term in Rule 525(b). 

“Trading Hours” means, for any Business Day, the hours during which the Trading System 

is scheduled to operate. 

“Trading Privileges” means the right, granted to a Participant, an Authorized Trader, a 

DMA Customer or an Authorized User to transmit Orders and originate and/or respond to Requests 

for Quotes through the Trading System. 

“Trading System” means the Company’s electronic trade execution system that is used for 

the trading of Contracts, including the associated hardware, software, systems and 

communications links. 

“User ID” means the unique identifier that is assigned by the Company to each Authorized 

User and to each automated trading system employed by a Participant or Authorized Trader and, 

in the case of such an automated trading system, linked to the User ID that is assigned to a single 

Authorized User. 

“User License Agreement” means the User License Agreement between the Company and 

a Person that the Company allows to access and use the Trading System. 
 

 

Information Classification: General 

10 

Rule 102. Rules of Construction 

In the Rules, unless the context otherwise requires: (i) headings are for convenience only 

and do not affect the construction of the Rules; (ii) words in the singular include the plural and 

words in the plural include the singular; (iii) references to the Rules and to a particular Rule are to 

the Rules and such Rule as they may be amended, amended and restated or otherwise modified 

from time to time; (iv) references to statutory provisions include those provisions, and any rules 

or regulations promulgated thereunder, as they may be amended, amended and restated or 

otherwise modified from time to time; (iv) any reference to a time means the time in New York 

City; and (v) all uses of the word “including” are to be construed to mean “including, but not 

limited to.” 
 

 

Information Classification: General 

11 

CHAPTER 2. GOVERNANCE 

Rule 201. Board 

(a) The Board shall have overall responsibility for the business and affairs of the 

Company. The Board has the power and authority to call for the review of, and to affirm, modify, 

suspend or overrule, any and all decisions and actions of any Committee or Officer of the 

Company. 

(b) The Board may act by the decision of a majority of the Directors present and voting 

at a meeting, by unanimous written consent without a meeting, or as otherwise set forth in the LLC 

Agreement. 

(c) At least 35%, but no fewer than two (2), of the Directors shall be Public Directors. 

Each Director (including Public Directors) shall be appointed in accordance with the LLC 

Agreement, and shall serve until his or her successor is duly appointed, or until his or her earlier 

resignation or removal, with or without cause. 

(d) To qualify as a Public Director, a Director must be found, by the Board on the 

record, to have no material relationship with the Company or any of its Affiliates. A “material 

relationship” is one that reasonably could affect the independent judgment or decision making of 

such individual as a Public Director. In addition, an individual shall not be considered a “Public 

Director” if any of the following circumstances exist, or existed during the one-year period 

immediately prior to such individual’s appointment as a Director:

(1) such Director is an Officer or employee of the Company, or an officer or 

employee of an Affiliate of the Company; 

(2) such Director is a Participant, Authorized Trader, or a director, officer or 

employee of a Participant or Authorized Trader; or 

(3) such Director, or an entity with which the Director is a partner, an officer, 

or a director, receives more than $100,000.00 in combined annual payments for legal, 

accounting or consulting services from the Company or any Affiliate of the Company. 

Compensation for services as a director of the Company or as a director of an Affiliate 

of the Company does not count toward the $100,000.00 payment limit, nor does deferred 

compensation for services rendered prior to becoming a director of the Company, so long 

as such compensation is in no way contingent, conditioned, or revocable. 

Any of the relationships set forth in subparagraphs (1), (2) and (3) of this Rule 201(d) apply to the 

“immediate family” of such Director (i.e., spouse, parents, children and siblings). 
 

 

Information Classification: General 

12 

Rule 202. Officers 

(a) The Board shall appoint a Chief Executive Officer, a Chief Compliance Officer, 

and such other officers of the Company (all of the foregoing, collectively, the “Officers”) as it may 

deem necessary or appropriate from time to time, in accordance with the LLC Agreement. 

(b) Any Officer may also be a director or employee of the Company or a director, 

officer or employee of any of its Affiliates. 

(c) The Officers shall have such powers and duties in the management of the Company 

as the Board may prescribe from time to time. 

Rule 203. Qualifications of Directors, Officers, Committee Members, 

Disciplinary Panel Members and Appeal Panel Members 

(a) No Person may serve as a Director or Officer, or serve on a Committee, a 

Disciplinary Panel or an Appeal Panel, or hold a 10% or greater ownership interest in the 

Company, if such Person: 

(1) within the prior three (3) years has been found, by a final decision in any 

action or proceeding brought in or by a court of competent jurisdiction, the CFTC, or any 

Self-Regulatory Organization or any Derivatives Clearing Organization, to have 

committed a disciplinary offense; 

(2) within the prior three (3) years has entered into a settlement agreement in 

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

included a disciplinary offense; 

(3) is currently suspended from trading on any contract market or swap 

execution facility, is suspended or expelled from membership in a Self-Regulatory 

Organization or Derivatives Clearing Organization, is serving any sentence or probation, 

or owes any portion of a fine or penalty related to either: 

(i) a finding of a disciplinary offense by a final decision in any action 

or proceeding brought in or by a court of competent jurisdiction, the CFTC, or any 

Self-Regulatory Organization or any Derivatives Clearing Organization; or 

(ii) a settlement agreement in which any of the findings or, in the 

absence of such findings, any of the acts charged included a disciplinary offense; 

(4) is currently subject to an agreement with the CFTC, a Self-Regulatory 

Organization or a Derivatives Clearing Organization not to apply for registration with the 

CFTC or for membership or participant status in the Self-Regulatory Organization or 

Derivatives Clearing Organization; 
 

 

Information Classification: General 

13 

(5) is currently, or within the past three (3) years has been, subject to a 

revocation or suspension of registration by the CFTC or has been convicted of a felony 

listed in sections 8a(2)(D)(i) through (iv) of the CEA; 

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

on a 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, as amended; or 

(7) is subject to a statutory disqualification pursuant to Section 8a(2) or 8a(3) 

of the CEA. 

(b) Any Director, Officer, member of a Committee, Disciplinary Panel or Appeal 

Panel, any individual nominated to serve in any such role, or any individual authorized by the 

Market Regulation Department to take summary action shall immediately notify the Chief 

Compliance Officer if such individual meets one or more of the criteria in Rule 203(a). 

(c) For purposes of Rule 203(a), the terms “disciplinary offense,” “final decision,” and 

“settlement agreement” have the meanings given those terms in CFTC Regulation 1.63(a). 

Rule 204. Standing Committees 

(a) The Board shall initially have three (3) standing Committees: the Nominating 

Committee, the Participant Committee and the Regulatory Oversight Committee. 

(b) Each member of such Committees must be a Director, one of whom the Board shall 

designate as the chairperson of such Committee. A temporary member of any such Committee 

may be appointed, using the same process required for regular appointments to a Committee, 

during the absence or inability to act of a regular member, and such temporary appointee shall 

have all the rights, power, authority, duties and obligations of the regular Committee member until 

the latter is again present and able to act. In addition, the Regulatory Oversight Committee shall 

consist of two (2) Public Directors, one (1) of whom shall serve as the chair of the Regulatory 

Oversight Committee and who must be found, by the Board on the record, to be an Independent 

Director. In the event that there is a tie vote between the members of the Regulatory Oversight 

Committee with respect to any matter requiring a vote of the Regulatory Oversight Committee, 

the member who is an Independent Directorthe chair of the Regulatory Oversight Committee shall 

cast the deciding vote. For these purposes, an “Independent Director” is a Director who is not: 

(0) an Officer or employee of the Company, or an officer or employee of an 

Affiliate of the Company; or 

(0) a Participant, Authorized Trader, or a director, officer or employee of a 

Participant or Authorized Trader. 

Any of the relationships set forth in subparagraphs (1) and (2) of this Rule 204(b) apply to the 

“immediate family” of such Director (i.e., spouse, parents, children and siblings). 
 

 

Information Classification: General 

14 

(f)(c) Each standing Committee shall assist in the supervision, management and control 

of the affairs of the Company within its particular area of responsibility, subject to the authority of 

the Board. 

(g)(d) Subject to the authority of the Board, each standing Committee shall determine the 

manner and form in which its proceedings shall be conducted. Each standing Committee may act 

only by the decision of a majority of the members of such Committee present and voting at a 

meeting or by unanimous written consent without a meeting. The Board has the authority to 

overrule the decisions of a standing Committee. 

(h)(e) If the Board rejects a recommendation or supersedes an action of the Regulatory 

Oversight Committee or the Participant Committee, the Company shall submit a written report to 

the CFTC detailing: (i) the recommendation of or action proposed to be taken by the Regulatory 

Oversight Committee or the Participant Committee; (ii) the rationale for such recommendation or 

action; (iii) the rationale of the Board for rejecting such recommendation or superseding such 

action; and (iv) the course of action that the Board decided to take contrary to such 

recommendation or action. 

Rule 205. Additional Committees 

(a) In addition to the standing Committees of the Board, the Board may from time to 

time constitute and appoint Committees and designate their composition, responsibilities and 

powers. The members of such Committees may be Directors, Participants, Authorized Traders, 

Authorized Users or such other individuals as may be qualified to serve on such Committee. The 

Board shall designate the chairperson of each such additional Committee. 

(b) Each such additional Committee shall assist the Board in the management and 

control of the affairs of the Company within its particular area of responsibility. 

(c) Subject to the authority of the Board, each such Committee shall determine the 

manner and form in which its proceedings shall be conducted. Each such Committee may act only 

by the decision of a majority of the members of such Committee present and voting at a meeting 

or by unanimous written consent without a meeting. 

Rule 206. Conflicts of Interest 

(a) A Director, Officer, member of any Committee, Disciplinary Panel Member or 

Appeal Panel Member who, in respect of a Company Proceeding or an Emergency, is subject to a 

“material conflict of interest” between his or her position as a Director, Officer, member of a 

Committee, Disciplinary Panel Member or Appeal Panel Member and his or her personal interests 

(any such Director, Officer, member of any Committee, Disciplinary Panel Member or Appeal 

Panel Member, an “Interested Person”) may not participate in deliberations or votes of the Board, 

a Committee, Disciplinary Panel or Appeal Panel in respect of such Company Proceeding or an 
 

 

Information Classification: General 

15 

Emergency, or otherwise exercise any authority with respect to such Company Proceeding or 

Emergency that involves his or her personal interest, except as described in Rule 206(d). 

(b) For purposes of Rule 206(a), a “material conflict of interest” in respect of a 

Company Proceeding or an Emergency means a Director, Officer, member of a Committee, 

Disciplinary Panel Member or Appeal Panel Member: 

(1) being named as a respondent or potential respondent in such Company 

Proceeding; 

(2) being an employer, employee, fellow employee or an Affiliate of a 

respondent or potential respondent in such Company Proceeding; 

(3) having any significant, ongoing business relationship with a respondent or 

potential respondent in such Company Proceeding; 

(4) having a family relationship with a respondent or potential respondent in 

such Company Proceeding (including the individual’s spouse, co-habitator, former 

spouse, parent, step-parent, child, step-child, sibling, step-brother, step-sister, 

grandparent, grandchild, uncle, aunt, nephew, niece, father-in-law, mother-in-law, 

brother-in-law or sister-in-law); 

(5) having a direct and substantial financial interest in the result of the 

deliberations or vote based upon trades or positions that could reasonably be expected to 

be affected by such Company Proceeding or Emergency. A direct and substantial 

financial interest includes (but is not limited to) trades and positions in accounts of, 

controlled by, or affiliated with the Interested Person or in any other types of direct and 

substantial financial positions of the Interested Person that could reasonably be expected 

to be affected by such deliberations or vote; and/or 

(6) any other circumstance that gives rise to a conflict between the exercise of 

authority by the Director, Officer, member of any Committee, Disciplinary Panel 

Member or Appeal Panel Member concerning such Company Proceeding or Emergency 

and his or her personal interests. 

(c) Before considering a Company Proceeding or Emergency, an Interested Person 

must disclose in writing to the Chief Compliance Officer, and where appropriate, the Board, 

Committee, Disciplinary Panel or Appeal Panel, the material facts concerning his or her 

relationship or interest therein. 

(d) An Interested Person who would be required otherwise to abstain from 

deliberations and voting pursuant to Rule 206(a) as a result of having a direct and substantial 

financial interest in the result of the deliberations and vote within the meaning of Rule 206(b)(5) 

may participate in deliberations, prior to a vote on the Company Proceeding or Emergency, if: 
 

 

Information Classification: General 

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(1) the material facts about the Interested Person’s financial interest in the 

matter are disclosed or known to the Board, Committee, Disciplinary Panel or Appeal 

Panel (as applicable); 

(2) the Board, Committee, Disciplinary Panel or Appeal Panel determines that 

the participation by the Interested Person would be consistent with the public interest and 

the interests of the Company; and 

(3) a majority of the members of the Board, Committee, Disciplinary Panel or 

Appeal Panel (as applicable), excluding any Interested Persons, vote to allow the 

Interested Person to participate in deliberations on the Company Proceeding or 

Emergency. 

(e) If a determination is made pursuant to Rule 206(d) that an Interested Person may 

participate in deliberations prior to a vote, the minutes of the meeting of the Board, Committee, 

Disciplinary Panel or Appeal Panel will reflect the fact thereof and the reasons therefor. 

(f) If a determination is made that all Committee members, Disciplinary Panel 

Members or Appeal Panel Members are Interested Persons with respect to a matter relating to a 

Company Proceeding or Emergency that is subject to a vote by such Committee, such Disciplinary 

Panel or the Appeal Panel (as applicable), the Board shall be authorized to appoint a panel of 

individuals who are not Interested Persons with respect to such matter. This panel shall have the 

same authority and powers over such matter that the Committee, Disciplinary Panel or Appeal 

Panel (as applicable) would have if the Committee members, Disciplinary Panel Members or 

Appeal Panel Members were not Interested Persons with respect to such matter. The Board shall 

have the same power to appoint individuals who are not Interested Persons if necessary to permit 

a Committee, Disciplinary Panel or Appeal Panel to satisfy quorum requirements. 

Rule 207. Maintenance of Books and Records by the Company; Provision 

of Information to the CFTC 

The Company shall keep, or cause to be kept, all books and records required to be 

maintained pursuant to CFTC Regulation 45.2(c) throughout the life of a Swap and for a period of 

five (5) years following the final termination of a Swap. The Company shall keep, or cause to be 

kept, all other books and records required to be maintained pursuant to the CEA and CFTC 

Regulations for at least five (5) years following the date of creation. All of the foregoing books 

and records shall be accessible by the Company for the duration of the required record keeping 

period in accordance with Core Principle 10 and CFTC Regulations 37.1001. All of the foregoing 

books and records shall be open to inspection upon request by any representative of the CFTC, the 

United States Department of Justice, or the Securities and Exchange Commission, or by any 

representative of a prudential regulator as authorized by the CFTC. Upon request from the CFTC, 

the Company shall, at the Company’s expense, provide information in its possession requested by 

the CFTC in a form and manner that the CFTC approves. 
 

 

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17 

CHAPTER 3. TRADING SYSTEM 

Rule 301. Access to the Trading System 

(a) A Participant will be granted Trading Privileges if it has been authorized by the 

Company pursuant to Rule 303. 

(b) A Participant shall designate at least one (1) of its employees, agents or authorized 

contractors who are individuals as an Authorized User and may designate other employees, agents 

and authorized contractors who are individuals as Authorized Users pursuant to Rule 305. 

Authorized Users may access and use the Trading System on behalf of such Participant and, to the 

extent permitted by Applicable Law, on behalf of, such Participant’s Customers or the Customers 

of Authorized Traders. 

(c) A Participant may designate one or more customers, investment managers or other 

third parties that are not individuals as Authorized Traders pursuant to Rule 304. An Authorized 

Trader will be given access to the Trading System and shall designate at least one (1) of its 

employees, agents or authorized contractors who are individuals as an Authorized User and may 

designate other employees, agents and authorized contractors as Authorized Users pursuant to Rule 

305. Authorized Users may access and use the Trading System on behalf of such Authorized 

Trader and, to the extent permitted by Applicable Law, Customers of the Authorized Trader. 

(d) A Participant must establish and maintain appropriate credit and/or risk controls for 

its Authorized Traders and Authorized Users. 

(e) A Participant may be held accountable by the Company for the actions and 

omissions of its Authorized Traders and its and their Authorized Users. 

(f) An Independent Software Vendor will be granted access to the Company if it has 

been authorized by the Company pursuant to Rule 306. 

(g) The Company will provide any Person who is an Eligible Contract Participant and 

any Independent Software Vendor with impartial access to the Trading System in accordance with 

CFTC Regulation 37.202, including any indicative quote screens or any similar pricing data 

displays (if applicable). 

Rule 302. Participant Eligibility Requirements 

(a) To be eligible for admission as a Participant, an applicant must be able to 

demonstrate to the satisfaction of the Company that it: 

(1) is an Eligible Contract Participant, and, if applicable, is in compliance with 

CFTC Regulation 1.17; 

(2) is located in, and will access and use the Trading System and permit its 

Authorized Users to access and use the Trading System solely from, the United States or 

a jurisdiction in which the Company is permitted by Applicable Law to offer the Trading 

System and, if the applicant or any of its Authorized Traders is organized or established 
 

 

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18 

under the laws of a country other than the United States or intends to access and use the 

Trading System or permits their respective Authorized Users to access and use the 

Trading System from a jurisdiction other than the United States, the applicant shall 

submit, upon request by the Company, an opinion of appropriately qualified and 

reputable outside counsel on home country law and, if applicable, other relevant nondomestic law, in form and substance acceptable to the Company; 

(3) is, if such Participant or its Authorized User accesses the Trading System 

from Singapore, an accredited investor, an expert investor or an institutional investor as 

these terms are defined in the Securities and Futures Act of Singapore; 

(4) has all registrations, licenses and consents required by its constituent 

documents and by Applicable Law to trade Contracts on the Trading System and is not 

subject to any trading ban, prohibition or suspension issued by the CFTC or by any SelfRegulatory Organization that is subject to the CFTC’s oversight, including the NFA; 

(5) with respect to Contracts that are to be cleared by a Derivatives Clearing 

Organization, (i) is a member of a Derivatives Clearing Organization that is authorized 

to clear Contracts for its own account and, if applicable, for the account(s) of its 

Customers, Authorized Traders and its and their Customers or (ii) has delivered to the 

Company evidence satisfactory to the Company, in its sole discretion, that at least one 

Clearing Firm has agreed to accept Contracts for clearing into the account of such 

Participant and/or, if applicable, its Authorized Traders and its and/or their Customers; 

and 

(6) is of good reputation and business integrity, maintains adequate financial 

resources and credit, and satisfies such other criteria as the Company may establish from 

time to time. 

(b) Once admitted, a Participant shall continue to comply with all applicable eligibility 

criteria in Rule 302(a) and shall provide the Company with such information in relation thereto as 

the Company may require. 

(c) Each Participant shall immediately notify the Company in writing if it ceases to 

meet any of the requirements of Rule 302(a). 

Rule 303. Participant Application Procedure 

(a) A Person that desires to become a Participant shall: 

(1) complete and submit the Participant Documentation;

(2) provide such information and documentation as may be requested by the 

Company, and comply with the procedures established by the Company for admission; 
 

 

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19 

(3) distribute the Rules to its Authorized Traders, Authorized Users, and if 

applicable, DMA Customers, or cause the Rules to be so distributed; and 

(4) if such Person is organized or established under the laws of a country other 

than the United States: 

(i) maintain a presence in the United States, either directly or through 

a suitable agent, whose personnel are fluent in English, are knowledgeable about 

the applicant’s business, and can assist representatives of the Company as 

necessary; 

(ii) pursuant to CFTC Regulation 15.05, enter into a written agreement 

acceptable to the Company appointing a third party as its agent for service of 

process in the United States and shall, upon request by the Company, provide the 

Company with a copy of such agreement; 

(iii) make such other representations as the Company deems necessary; 

and

(iv) upon request by the Company, submit an opinion of outside counsel 

on home country law and, if applicable, other relevant non-domestic law, in form 

and substance acceptable to the Company.

(b) The Company may require additional information from an applicant in order to 

establish the applicant’s eligibility to access the Trading System and may conduct an investigation 

to verify information submitted by the applicant. 

(c) If the Company decides to admit an applicant as a Participant, it shall promptly 

notify the applicant in writing. Admission as a Participant does not confer any right of ownership 

in, right to attend or vote at meetings of, or right to share in the profits of, the Company or 

ownership of any of the Company’s Market Data, software supporting the Trading System and 

other intellectual property. The Company may pay a referral fee, based on a Participant’s use of 

the Trading System, to any third party consultant who is deemed to have introduced the Participant 

to the Company. 

(d) The Company may deny or condition an application for admission as a Participant: 

(1) if the applicant is unable to satisfactorily demonstrate its ability to satisfy 

the eligibility criteria to become or remain a Participant; 

(2) if the applicant is unable to satisfactorily demonstrate its capacity to adhere 

to the Rules and Applicable Law; 

(3) for such other cause as the Company may reasonably determine. 

(e) If the Company decides to deny or condition an application for admission as a 

Participant, the Company shall promptly notify the applicant in writing, setting forth the reasons 

for the denial or conditioning of Participant status. The applicant may, within fourteen (14) days 
 

 

Information Classification: General 

20 

of the date of such notice, request in writing that the Participant Committee reconsider that 

determination. The Participant Committee may request additional information from the applicant 

or establish any other process that it believes is necessary and appropriate to consider the request 

for reconsideration. Unless extended with the consent of the applicant, the Participant Committee 

shall confirm, reverse or modify the denial or conditioning of the application within thirty (30) 

days of receiving the request for reconsideration or such longer period as may be agreed by the 

applicant. The Participant Committee shall promptly notify the applicant of its decision in writing. 

The decision of the Participant Committee shall be final and not subject to appeal. 

Rule 304. Authorized Traders 

(a) A Participant may grant permission to one or more Authorized Traders to enter 

Orders and Indications of Interest, originate and respond to Requests for Quotes, and otherwise 

access the Trading System in accordance with the criteria and procedures established by the 

Company. 

(b) By agreeing to act as an Authorized Trader, such Person agrees to be bound by the 

duties and responsibilities of an Authorized Trader under the Rules and other Company 

Requirements and to be subject to, and comply with, the Rules. 

(c) An Authorized Trader must at all times: 

(1) be an Eligible Contract Participant; 

(2) if applicable, be in compliance with CFTC Regulation 1.17; 

(3) be located in and access and use the Trading System, and permit its 

Authorized Users to access and use the Trading System, solely from within the United 

States or a jurisdiction in which the Company is permitted by Applicable Law to offer 

the Trading System; 

(4) be, to the extent such Authorized Trader or its Authorized Users accesses 

the Trading System from Singapore, an accredited investor, an expert investor or an 

institutional investor as these terms are defined in the Securities and Futures Act of 

Singapore; 

(5) ensure that activity conducted under the User IDs assigned to it and its 

Authorized Users complies with the Rules; 

(6) have the authority, at the Company’s request, to adjust or withdraw any 

Order or Request for Quote submitted under such User IDs; 

(7) have and maintain all necessary regulatory approvals and/or licenses to 

operate as an Authorized Trader and not be subject to any trading ban, prohibition or 
 

 

Information Classification: General 

21 

suspension issued by the CFTC or by any Self-Regulatory Organization that is subject to 

CFTC oversight, including the NFA; and 

(8) agree to such other terms and conditions as may be established by the 

Company from time to time. 

(d) The Company will promptly notify a Participant in writing of its approval, or 

refusal to approve, the designation of an Authorized Trader. The Company may, in its sole 

discretion, revoke or suspend the designation of an Authorized Trader, and shall promptly notify 

the Participant in writing of such action in accordance with procedures established by the 

Company. 

(e) Each Authorized Trader shall immediately notify the Company in writing if it 

ceases to meet any of the requirements of Rule 304(c). Participant shall notify the Company in 

writing if it becomes aware that any of its Authorized Traders ceases to meet any of the 

requirements of Rule 304(c). 

(f) A Participant that seeks to terminate the designation of an Authorized Trader shall 

notify the Company in writing, providing such information as the Company may require. The 

Company shall terminate the Trading Privileges of such Authorized Trader and its Authorized 

Users in accordance with procedures established by the Company.

Rule 305. Authorized Users 

(a) A Participant, an Authorized Trader or a Clearing Firm shall designate one or more 

Authorized Users in accordance with the criteria and procedures established by the Company. 

Each Authorized User shall be identified to the Company, in the manner prescribed by the 

Company, and shall be subject to the Rules. Any Authorized User designated by a Clearing Firm 

shall only be permitted to access and use administrative, credit control functionality on the Trading 

System and shall have no Trading Privileges. 

(b) By agreeing to act as an Authorized User, an individual agrees to be bound by the 

duties and responsibilities of an Authorized User under the Rules and other Company 

Requirements and to be subject to, and comply with, the Rules. 

(c) Each Authorized User must have and use a unique User ID to access the Trading 

System. It shall be the responsibility of an Authorized User and its sponsoring Participant, its 

sponsoring Authorized Trader or its sponsoring Clearing Firm, as applicable, to ensure that each 

such User ID is registered with the Company, and that such registration is accurate at all times. In 

no event may a Person other than the Authorized User to whom a User ID has been assigned 

exercise Trading Privileges or otherwise access the Trading System using such User ID. 

(d) An Authorized User must at all times: 

(1) ensure that activity conducted under the User ID assigned to such 

Authorized User, or any automated trading system for which the User ID is linked to 

such Authorized User, complies with the Rules; 
 

 

Information Classification: General 

22 

(2) if such Authorized User was designated by a Participant or an Authorized 

Trader, have the authority, at the Company’s request, to adjust or withdraw any Order, 

Indication of Interest or Request for Quote submitted to the Trading System under any 

User ID assigned or linked to such Authorized User; 

(3) have and maintain all necessary regulatory approvals and/or licenses to act 

as an Authorized User; and 

(4) agree to such other terms and conditions as may be established by the 

Company from time to time. 

(e) The Company will promptly notify, in writing, the Participant, the Authorized 

Trader or the Clearing Firm, as applicable, of its approval, or refusal to approve, the designation 

of an Authorized User. The Company may, in its sole discretion, revoke or suspend the designation 

of an individual as an Authorized User, and shall promptly notify, in writing, the Participant, the 

Authorized Trader or the Clearing Firm of such action. 

(f) Each Authorized User shall immediately notify the Company in writing if it ceases 

to meet any of the requirements of Rule 305(d). A Participant, Authorized Trader or Clearing 

Firm, as applicable, shall notify the Company in writing if it becomes aware that any of its 

Authorized Users ceases to meet any of the requirements of Rule 305(d). 

(g) A Participant, Authorized Trader or Clearing Firm that seeks to terminate the 

designation of an individual as an Authorized User shall notify the Company in writing in 

accordance with procedures established by the Company. The Company shall act to terminate 

such Authorized User’s Trading Privileges or other use of and access to the Trading System in 

accordance with procedures established by the Company.

Rule 306. Independent Software Vendors 

A Person seeking to act as an ISV must satisfy the Company’s technological integrity 

requirements and not adversely affect the Company’s ability to comply with the CEA and CFTC 

Regulations. 

Rule 307. Limitations on Access to the Trading System 

(a) The Company may at any time revoke, suspend, limit, restrict or qualify a 

Participant’s Trading Privileges, and those of its Authorized Traders and its and their Authorized 

Users, in accordance with the procedures set forth in Chapter 7. 

(b) Subject to the terms of any agreement between a Participant, Authorized Trader 

and/or its or their Customers and a Clearing Firm, the Clearing Firm may at any time revoke the 

authorization of the Participant, Authorized Trader and/or its or their Customers, as applicable, to 

submit Contracts to a Derivatives Clearing Organization for clearing by such Clearing Firm. Any 
 

 

Information Classification: General 

23 

such revocation shall become effective as soon as practicable after the receipt of written notice 

thereof by the Company or at such later date as may be specified in the written notice from the 

Clearing Firm, at which time the Trading Privileges of the Participant, its Authorized Traders and 

its Authorized Users with respect to its Cleared Contracts intended to be cleared by the Clearing 

Firm shall be terminated, unless, prior to such termination such Participant has designated, in the 

form and in a manner satisfactory to the Company, another Clearing Firm to clear such Contracts. 

For the avoidance of doubt, such revocation shall not be effective with respect to any transaction 

executed prior to such termination of Trading Privileges. 

(c) A Participant shall suspend or terminate the ability of a DMA Customer to submit 

any Customer Order on its system or platform for onward transmission to the Trading System if 

the Company determines in accordance with the procedures set forth in Chapter 7 that the actions 

of the DMA Customer threaten the integrity of the Trading System or violate any Rule. 

Rule 308. Notices and Other Communications 

The Company shall publish on the Company’s website and transmit to each Designated 

Representative by electronic mail each addition to or modification of the Company Requirements 

in accordance with CFTC Regulations, as applicable; provided that publication on the Company’s 

website shall constitute notice to all Participants, Authorized Traders and Authorized Users. 

Rule 309. Designated Representatives 

(a) Each Participant shall designate in writing one or more Designated Representatives 

who are authorized to represent the Participant before the Company and its committees and receive 

notices on behalf of the Participant and its Authorized Users. The Company shall be entitled to 

rely on the actions of the Designated Representative as binding on the Participant and its 

Authorized Users. Each Participant must provide the Company with the telephone number, 

mailing and electronic mail address of its Designated Representatives and shall promptly update 

this information by written notice whenever it changes. 

(b) Each Authorized Trader shall designate in writing one or more Designated 

Representatives who are authorized to represent the Authorized Trader before the Company and 

its committees and receive notices on behalf of the Authorized Trader and its Authorized Users. 

The Company shall be entitled to rely on the actions of the Designated Representative as binding 

on the Authorized Trader and its Authorized Users. Each Authorized Trader must provide the 

Company with the telephone number, mailing and electronic mail address of its Designated 

Representatives and shall promptly update this information by written notice whenever it changes. 

Rule 310. Application of Rules; Jurisdiction of the Company 

(a) By becoming a Participant, Authorized Trader or Authorized User, as applicable, 

and without any need for any further action, undertaking or agreement, such Participant, 

Authorized Trader or Authorized User agrees: 

(1) to be bound by, and comply with the Rules, Company Requirements and 

Applicable Law, in each case to the extent applicable to it; 
 

 

Information Classification: General 

24 

(2) to be bound by the acts and omissions of its Authorized Traders and/or 

Authorized Users, as applicable; 

(3) to assist the Company in complying with the Company’s legal and 

regulatory obligations and to cooperate with the Company in any inquiry, investigation, 

audit, examination or proceeding; and 

(4) to authorize the Company to provide information regarding such 

Participant, Authorized Trader or Authorized User as provided in Rule 905. 

(b) A Participant, Authorized Trader or Authorized User whose Trading Privileges 

and/or ability to otherwise access the Trading System are suspended, revoked or terminated shall 

remain bound by the Rules, Company Requirements and Applicable Law, in each case to the extent 

applicable to it, her or him during the period of any suspension and with respect to any acts or 

omissions occurring during or prior to the suspension, revocation or termination. 

(c) Any Person initiating or executing a transaction on the Trading System or subject 

to the Rules directly or through an intermediary, and any Person for whose benefit such transaction 

has been initiated or executed, consents to the jurisdiction of the Company with respect to all 

matters arising from or related to such activity and such transactions. 

Rule 311. Withdrawal of Participant 

(a) To withdraw from the Company, a Participant must notify the Company in writing 

in accordance with procedures established by the Company for such purpose. Except as otherwise 

required by law or regulation or by request or order of a Government Agency, such withdrawal 

will be effective immediately upon receipt of the withdrawal by the Company. 

(b) Upon the effective date of the withdrawal of a Participant, all rights and privileges 

of such Participant, its Authorized Traders and its and their Authorized Users shall terminate 

(including such Participant’s Trading Privileges and ability to access the Trading System). The 

withdrawal of a Participant shall not affect the rights of the Company under the Rules or relieve 

the former Participant of its obligation under the terms of any Contract entered into or otherwise 

arising under the Rules before the effective date of such withdrawal. A Participant that has 

withdrawn remains subject to the Rules, the Company Requirements and the jurisdiction of the 

Company for acts done and omissions made while a Participant, and must cooperate in any 

Company Proceeding under Chapter 7 as if the withdrawn Participant were still a Participant. 

Rule 312. Dues, Assessments and Fees 

Each Participant, Authorized Trader and ISV shall pay when due all dues, assessments and 

fees as may be established by the Company and published on the Company’s website or otherwise 

agreed between the Company and such Participant, Authorized Trader or ISV. The Company shall 

charge comparable dues, assessments and fees to Persons that receive comparable access to the 
 

 

Information Classification: General 

25 

Trading System. The Company may suspend, revoke, limit, condition, restrict or qualify the 

Trading Privileges of a Participant, Authorized Trader or ISV and its ability to otherwise access 

the Trading System if such Participant, Authorized Trader or ISV fails to pay such amounts when 

due. The provisions of Chapter 7 (other than Rule 716) shall not apply to any such suspension, 

revocation, limitation, condition, restriction or qualification. 
 

 

Information Classification: General 

26 

CHAPTER 4. BUSINESS CONDUCT 

Rule 401. Duties and Responsibilities of Participants and Authorized 

Traders 

(a) Each Participant and Authorized Trader shall, and shall cause its Authorized Users 

to: 

(1) use the Company’s Trading System in a responsible manner and not for any 

improper purpose; 

(2) use the Company’s Trading System only to conduct business that is subject 

to the Rules and in a manner consistent with the Rules and Company Requirements; 

(3) comply with the Rules and Company Requirements and act in a manner 

consistent with the Rules and Company Requirements; 

(4) comply with the rules of a Derivatives Clearing Organization that accepts 

for clearing a Contract traded by the Participant, Authorized Trader or Authorized User 

on the Trading System, to the extent applicable to such Participant, Authorized Trader or 

Authorized User and such Contract; 

(5) observe high standards of commercial honor and just and equitable 

principles of trade while conducting or seeking to conduct any business connected with 

or concerning the Company; 

(6) not knowingly mislead or conceal any material fact or matter in any dealings 

or filings with the Company or in connection with a Company Proceeding; 

(7) keep all User IDs, account numbers and passwords related to the 

Company’s Trading System confidential; and 

(8) keep complete and accurate books and records relating to Participant’s or 

its Authorized Traders’ use of the Trading System as required by Applicable Law, 

including records of their activity in the index or instrument used as a reference price, 

the underlying instrument and related derivatives markets with respect to Swaps, and 

make such books and records available, upon request, for inspection by a representative 

of the Company, the Regulatory Services Provider and/or the CFTC in accordance with 

Rule 403 and otherwise as required by Applicable Law. 

(b) In addition to the requirements of Rule 401(a), each Participant shall be responsible 

for all Orders, RFQs, Indications of Interest and transactions effected on the Trading System by or 

for the account of such Participant, its Authorized Traders and Authorized Users or by any Person 

using its or their User IDs or, at the election and sole discretion of Participant, cause its Customer 
 

 

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27 

to be fully responsible for all trading losses and bear all financial responsibility for Orders, RFQs, 

Indications of Interest and transactions effected on the Trading System for the account of or on the 

behalf of such Customer. 

(c) Each Participant and Authorized Trader that is registered, or required to be 

registered, with the CFTC as a swap dealer or a major swap participant is responsible for 

compliance with the mandatory trading requirement of Section 2(h)(8) of the CEA when such 

Participant or Authorized Trader enters into, or facilitates entry into, a Swap. 

Rule 402. Required Notices 

Each Participant, Authorized Trader or ISV shall immediately notify the Market 

Regulation Department in writing upon becoming aware of any of the following events: 

(a) any material changes to the information provided to the Company by the Participant 

pursuant to Rule 302, 303, 304, 305, 306 or 309; 

(b) any refusal of admission to any Self-Regulatory Organization by the Participant or 

any of its Authorized Traders; 

(c) any expulsion, suspension or fine in excess of $25,000 in the case of an individual 

or $50,000 in the case of a firm (whether through an adverse determination, voluntary settlement 

or otherwise) imposed on the Participant, Authorized Trader or ISV or any of their Authorized 

Users by any Self-Regulatory Organization; 

(d) any revocation, suspension or conditioning of a registration or license granted by 

the Securities and Exchange Commission, the Commodity Futures Trading Commission or the 

securities commission or equivalent authority of any state, territory, the District of Columbia or 

foreign country, the National Futures Association or the Financial Industry Regulatory Authority, 

Inc. to the Participant, Authorized Trader or ISV or any of their Authorized Users; 

(e) the commencement of any judicial or administrative proceeding against the 

Participant, Authorized Trader or ISV or any of their Authorized Users by any commodity or 

securities exchange or related clearing organization, the Securities and Exchange Commission, the 

Commodity Futures Trading Commission or the securities commission or equivalent authority of 

any state, territory, the District of Columbia or foreign country, the National Futures Association, 

the Financial Industry Regulatory Authority, Inc. or any Self-Regulatory Organization or the 

imposition of a fine in excess of $25,000 in the case of an individual or $50,000 in the case of a 

firm, cease and desist order, denial of trading privileges, censure or other sanction or remedy 

(whether through an adverse determination, voluntary settlement or otherwise) imposed by any 

commodity or securities exchange or related clearing organization, the Securities and Exchange 

Commission, the Commodity Futures Trading Commission or the securities commission or 

equivalent authority of any state, territory, the District of Columbia or foreign country, the National 

Futures Association, the Financial Industry Regulatory Authority, Inc., any Self-Regulatory 

Organization or, with respect to activity subject to the Rules, any court; 
 

 

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28 

(f) the indictment or conviction of, or any confession of guilt or plea of guilty or nolo 

contendere by, the Participant, Authorized Trader or ISV or any of their Authorized Users, senior 

officers or principals for any felony or for any misdemeanor involving, arising from, or related to, 

the purchase or sale of any Contract or other financial instrument, or involving or arising from 

fraud or moral turpitude; and 

(g) the Insolvency of the Participant, any of its Authorized Traders, or any of its or 

their Affiliates. 

Rule 403. Inspections by the Company 

The Company and the Regulatory Services Provider shall have the right with such prior 

reasonable advance notice as is practicable under the circumstances, in connection with 

determining whether the Rules and Company Requirements are being, will be or have been 

complied with by the Participant or Authorized Trader or DMA Customer, to: (a) inspect the books 

and records of the Participant or Authorized Trader or DMA Customer relating to the Participant’s 

or Authorized Trader’s or DMA Customer’s business which is subject to the Rules (including, 

without limitation, Permitted Transactions and Block Trades), (b) inspect systems, equipment and 

software, wherever located, operated by a Participant or Authorized Trader in connection with the 

Participant’s or Authorized Trader’s business which is subject to the Rules (including, without 

limitation, Permitted Transactions and Block Trades) (c) access the systems, equipment, software, 

and the premises on which the Participant’s or Authorized Trader’s systems, equipment, and 

software are located, data stored in such systems or equipment, in each case, related to the 

Participant’s or Authorized Trader’s business which is subject to the Rules (including, without 

limitation, Permitted Transactions and Block Trades), during the regular business hours and 

Trading Hours of Company and (d) copy and/or reproduce such data as may be necessary to 

monitor such Participant or Authorized Trader or DMA Customer for compliance with the 

requirements of Rule 518. 

Rule 404. Financial and Related Reporting Requirements 

(a) Each Participant and Authorized Trader that is registered with or authorized or 

supervised by a Government Agency shall comply with the provisions of Applicable Law relating 

to minimum financial and related reporting and recordkeeping requirements. 

(b) Each Participant and Authorized Trader must notify the Company and the 

Regulatory Services Provider immediately when it ceases to be an Eligible Contract Participant, 

and if the Participant or Authorized Trader is registered with the CFTC as a futures commission 

merchant, when it ceases to satisfy the minimum financial requirements set out in CFTC Regulation 

1.17. Each Participant and Authorized Trader that is registered with the CFTC as a futures 

commission merchant that is unable to demonstrate that it is in compliance with the minimum 

financial requirements of CFTC Regulation 1.17 shall not effect transactions in Contracts except 

for the purpose of closing open positions to the extent not prohibited by Applicable Law. 
 

 

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Rule 405. Restrictions on Activity 

If the Company determines that the financial or operational condition of a Participant, one 

of its Affiliates or an Authorized Trader is such that to allow that Participant to continue to have 

access to the Trading System would adversely affect the Company or the financial markets 

(including, but not limited to, such Participant or Authorized Trader being subject to the 

notification requirements of CFTC Regulation 1.12 or similar requirements of another 

Government Agency to which such Participant or Authorized Trader is subject), the Company may 

limit or restrict the number, type or market direction of Contracts that may be traded by a 

Participant or its Authorized Traders on the Trading System or terminate the Trading Privileges of 

such Participant, its Authorized Traders and/or its and their Authorized Users. 

Rule 406. Customers 

(a) The Participant or Authorized Trader shall have arrangements in place with each of 

its Customers such that every Contract executed for, or other activity engaged in by the Participant 

or Authorized Trader on the Trading System on behalf of, its Customer (including without 

limitation any Customer Order transmitted by the Participant to the Trading System for a DMA 

Customer) is subject to the terms of the Rules insofar as they are applicable to that Contract or 

activity. Additionally, a Participant or Authorized Trader, as applicable, will be deemed to have 

made the following representations and warranties each time it makes use of, or if applicable, 

facilitates the transmission of a Customer Order to, the Trading System for or on behalf of a 

Customer: 

(1) such Customer is an Eligible Contract Participant; and 

(2) such Customer consents to the jurisdiction of the Company with respect to 

all matters arising from or related to any Customer Order submitted on, or transmitted to, 

the Trading System on such Customer’s behalf or for such Customer’s benefit; 

(3) with respect to Contracts that are to be cleared by a Derivatives Clearing 

Organization, either (i) such Participant or the Participant who designated such 

Authorized Trader, as applicable, is a member of the Derivatives Clearing Organization 

that is authorized to clear such Contracts for the account(s) of such Customer, or (ii) such 

Participant or the Participant who designated such Authorized Trader, as applicable, has 

delivered to the Company evidence satisfactory to the Company, in its sole discretion, 

that at least one Clearing Firm has agreed to accept Contracts for clearing into the account 

of such Customer; and 

(4) to the extent that a DMA Customer submits any Customer Order on the 

Participant’s system or platform for onward transmission to the Trading System, such 

DMA Customer is located in, and will access and use the Participant’s system or platform 

solely from, the United States or another jurisdiction in which the Company is permitted 

by Applicable Law to offer the Trading System. 

(b) Each Customer shall keep, or shall arrange for the Participant or Authorized Trader 

engaging in activity on behalf of such Customer on the Trading System to keep, as agent for the 
 

 

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30 

Customer, complete and accurate books and records relating to Contracts executed for, or other 

trading activities engaged in by the Participant or Authorized Trader on the Trading System on 

behalf of, such Customer as required by CFTC Regulation 37.404(b) and, solely with respect to 

DMA Customers, CFTC Regulations 1.31 and 1.35, and shall, or shall arrange for the Participant 

or Authorized Trader engaging in activity on behalf of such Customer on the Trading System to 

make, as agent for the Customer, such books and records available, upon request, to the Company, 

the Regulatory Services Provider and/or the CFTC. 

Rule 407. Publication of Trade Information 

The Company shall daily publish on its website information regarding volume, price ranges 

(based on non-cancelled bids, non-cancelled offers, and sales) subject to such prices accurately 

reflecting market conditions within the discretion of the Company, and opening and closing prices 

and settlement prices. The Company shall also publish on its website, on a daily basis, the total 

quantity of Block Trades if any, which are included in the total volume of trading. 

Rule 408. Disaster Recovery; Business Continuity 

Each Participant shall have written disaster recovery and business continuity policies and 

procedures in place to ensure it is able to resume operations in a timely manner in the event of a 

significant internal or external interruption to its operations. 

Rule 409. Anti-Money Laundering Obligations 

Each Participant or Authorized Trader represents and warrants that it maintains policies 

and has implemented procedures and controls, including, without limitation, policies and 

procedures for sanctions screening, reasonably designed to ensure compliance with all laws, rules 

and regulations applicable to it pertaining to anti-money laundering and anti-terrorism, including 

those related to customer identification and verification and those administered by the Office of 

Foreign Assets Control (“OFAC”). Each Participant or Authorized Trader shall provide to the 

Company, upon request, so long as permitted by Applicable Law, including those pertaining to 

data privacy, any documents and other information reasonably requested by the Company in order 

to satisfy any anti-money laundering, anti-terrorism or other customer identification and 

verification laws, rules and regulations applicable to the Company. The foregoing representations, 

warranties and covenants shall be deemed to be made by the Participant or Authorized Trader each 

time it makes use of the Trading System. 
 

 

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31 

CHAPTER 5. TRADING PRACTICES 

Rule 501. Scope 

This Chapter 5 applies to all transactions in Contracts, except as otherwise specifically 

provided in Chapter 6. 

Rule 502. Rule Violations 

It shall be a violation for any Person subject to the Company’s jurisdiction to violate any 

Rule or any Company Requirement. 

Rule 503. Just and Equitable Principles of Trade; Acts Detrimental 

It shall be a violation of these Rules for any Person subject to the Company’s jurisdiction 

to engage in conduct inconsistent with just and equitable principles of trade or that is detrimental 

to the interest or welfare of the Company. A Participant that has actual or constructive notice of a 

violation of the Rules involving the use of or access to (whether direct or indirect) the Trading 

System by any of its Authorized Traders or any of their respective Authorized Users or Customers 

may be found to have committed an act detrimental to the Company. 

Rule 504. Fraudulent Acts Prohibited 

No Person subject to the Company’s jurisdiction shall engage, or attempt to engage, in any 

fraudulent act or engage in any manipulative device, scheme or artifice to defraud, deceive or 

mislead another Person (including the Company and the Regulatory Services Provider) in 

connection with or relating to any Contract.

Rule 505. Fictitious or Noncompetitive Transactions Prohibited 

No Person subject to the Company’s jurisdiction shall engage in fictitious or 

noncompetitive transactions or enter an Order, or originate or respond to a Request for Quote or 

Indication of Interest for such a purpose. This prohibition on non-competitive transactions shall 

not apply to transactions contemplated in Rules 512(b) and (c) and 515(b) and Chapter 6, or to 

Permitted Transactions executed via the RFQ functionality of the Trading System. 

Rule 506. Market Manipulation Prohibited 

(a) No Person subject to the Company’s jurisdiction shall attempt to manipulate or 

manipulate the price in any Contract, including, without limitation, engaging in activity in 

violation of CEA sections 9(a)(2) and 4c(a)(5) and CFTC Regulations 180.1(a) and 180.2. 

(b) Without limiting the generality of the foregoing, parties involved in the solicitation 

or negotiation of a Block Trade and parties that are privy to nonpublic information regarding a 

consummated Block Trade may not disclose such information to any other party prior to the 

reporting of the Block Trade by the Company except with the permission of the client and where 
 

 

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32 

it would be required to facilitate execution of the Block Trade, and may not trade in the same 

product or closely-related product for the purpose of taking advantage of such information. 

Rule 507. Disruptive Trading Practices Prohibited 

No Person subject to the Company’s jurisdiction shall engage in any trading practice or 

conduct that constitutes a “disruptive trading practice,” as such term is described either in 

Section 4c(a)(5) of the CEA or in interpretive guidance issued by the CFTC, in relation to the 

trading of any Contract. Conduct prohibited under this Rule 507 includes: violating bids or offers; 

demonstrating intentional or reckless disregard for the orderly execution of transactions during the 

closing period; activity that is, or 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); and the 

entry of data or other information into the Trading System, including Orders, Requests for Quote 

and Indications of Interest, 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. 

Rule 508. Prohibition of Misstatements 

No Person subject to the Company’s jurisdiction shall make a misstatement of a material 

fact to the Company, including any Committee, Disciplinary Panel or Appeal Panel, or to the 

Regulatory Services Provider, or knowingly omit to state a material fact necessary in order to make 

the statements made, in the light of the circumstances under which they were made, not misleading. 

Rule 509. Misuse of the Trading System 

Misuse of the Trading System is strictly prohibited. No Person subject to the Company’s 

jurisdiction shall (i) permit unauthorized use of the Trading System; (ii) assist any Person in 

obtaining unauthorized access to the Trading System; (iii) trade in any Swap on the Trading 

System without an agreement and an established account in good standing with a Clearing Firm; 

(iv) interfere with the operation of the Trading System; (v) intercept or interfere with information 

provided by or to the Trading System; or (vi) in any way use the Trading System in a manner 

contrary to the Rules. 

Rule 510. Financial or Other Incentive Programs 

The Company may from time to time establish programs that provide Participants with 

financial or other incentives for meeting trading volume, liquidity or other thresholds as may be 

established by the Company. 

Rule 511. Withholding of Customer Orders Prohibited; Priority of 

Customer Orders 

(a) Customer Orders (other than a Customer Order allowing discretion as to time and 

price) must be entered into the Trading System as soon as practicable following receipt and in the 
 

 

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33 

sequence in which they were received by a Participant or Authorized Trader, as applicable. A 

Person that receives a Customer Order shall electronically record the time when such Customer 

Order was received. 

(b) No Person shall withhold or withdraw from the market any Customer Order, or any 

part of a Customer Order, for the benefit of any Person other than the Customer for whom such 

Person is placing the Customer Order. No Person shall knowingly enter an Order or submit a 

Request for Quote into the Trading System for its own account, an account in which it has a direct 

or indirect financial interest, or an account over which it has discretionary trading authority (other 

than an Order allowing discretion as to time and price) when such Person is in possession of a 

Customer Order for the same Contract that can be but has not been submitted to the Trading 

System. 

(c) Nothing in this Rule 511 shall limit the ability of an “eligible account manager” to 

bunch Orders in accordance with CFTC Regulation 1.35(b)(5). 

Rule 512. Handling of Customer Orders 

(a) Except as provided in paragraphs (b) and (c), no Person in possession of a Customer 

Order shall knowingly take, directly or indirectly, the opposite side of such Customer Order on the 

Trading System’s Order Book for its own account, an account in which it has a direct or indirect 

financial interest, or an account over which it has discretionary trading authority. 

(b) A Person may knowingly trade on the Trading System’s Order Book against a 

Customer Order for its own account, an account in which it has a direct or indirect financial 

interest, or an account over which it has discretionary trading authority, if the Customer Order has 

been entered into the Trading System’s Order Book as promptly as practicable after receipt of the 

Customer Order and has been exposed on the Trading System’s Order Book for a minimum of 

fifteen (15) seconds. 

(c) Except as provided in paragraph (d), opposite Orders for different beneficial owners 

may not knowingly be simultaneously entered into the Trading System’s Order Book by an 

Authorized User on behalf of a Participant or Authorized Trader with discretion over both accounts 

unless one Order is exposed to the marketplace for a minimum of fifteen (15) seconds. 

(d) A Customer Order allowing for price and/or time discretion may be knowingly 

entered into the Trading System’s Order Book opposite another Order for a different beneficial 

owner, entered by the same Person only if it is entered immediately upon receipt and one of the 

orders has been exposed to the market for a minimum of fifteen (15) seconds. 

(e) The Company may adjust the fifteen (15) second time delay required under Rule 

512(c) for a given Contract, based upon such Contract’s liquidity and other product-specific 

considerations, provided however that any amended time delay shall provide Participants, 

Authorized Traders and Authorized Users sufficient time to have a meaningful opportunity to 

execute against such Order. 
 

 

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34 

Rule 513. Disclosing Orders and Requests for Quotes Prohibited; PostTrade Anonymity 

(a) No Person subject to the Company’s jurisdiction shall disclose the terms of an 

Order, Request for Quote or Indication of Interest prior to its entry into the Trading System, except 

to a Company Official, the Regulatory Services Provider or a Government Agency, and no Person 

subject to the Company’s jurisdiction shall solicit or induce another Person to disclose such 

information. 

(b) The foregoing shall not apply to pre-execution communications conducted in 

accordance with Rule 515(b), to Permitted Transactions executed via RFQ, to Block Trades, to 

statements of opinion, or to indications of the price at which a market may open or trade. 

(c) No Person shall disclose, directly or indirectly, including through a third-party 

service provider, the identity of a counterparty for Swaps that are intended to be cleared and are 

executed, pre-arranged or pre-negotiated anonymously on or pursuant Rules. 

Rule 514. Wash Sales Prohibited 

No Person subject to the Company’s jurisdiction shall buy and sell a Contract, place or 

accept buy and sell Orders or initiate RFQs in the same Contract, or knowingly execute or 

accommodate the execution of such Orders or RFQs by direct or indirect means, if the Person 

knows or reasonably should know that the purpose of the transactions is to avoid taking a bona 

fide market position exposed to market risk. Buy and sell Orders for different accounts with 

common beneficial ownership that are entered with the intent to negate market risk or price 

competition shall also be deemed to violate this Rule. 

Rule 515. “Moneypassing,” Prearranged, Pre-Negotiated and 

Noncompetitive Transactions Prohibited 

(a) No Person subject to the Company’s jurisdiction may enter Orders or Requests for 

Quote the purpose of which is to enter into Contracts with a resulting profit to one account and a 

loss to the other account but no net change in the open positions in either account, commonly 

known as a “money pass.” 

(b) No Person subject to the Company’s jurisdiction shall prearrange or pre-negotiate 

any purchase or sale or noncompetitively execute any Required Transaction on the Trading 

System. Notwithstanding the foregoing, a Person may engage in pre-execution communications 

with regard to Required Transactions executed or to be executed on the Trading System if one 

party (the first party) wishes to be assured that a contra party (the second party) will take the 

opposite side of the first party’s Order, subject to the following restrictions: 
 

 

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35 

(1) A party may not engage in pre-execution communications with other market 

participants on behalf of another party unless the party for whose benefit the trade is 

being made has previously agreed to permit such communications. 

(2) Parties to pre-execution communications shall not disclose to a non-party 

the details of such communications or enter an Order to take advantage of information 

conveyed during such communications except in accordance with this Rule. 

(3) With regard to transactions to be executed on the Order Book, the first 

party’s Order must be entered into the Order Book first, and the second party’s Order 

may not be entered into the Trading System until a period of fifteen (15) seconds has 

elapsed from the time of entry of the first Order. 

(4) Each such Order crossed on the Order Book will be processed and matched 

separately and the Company does not guarantee that the first and second party’s Orders 

will be matched with each other or that both Orders will be executed. 

Rule 516. Responsibility for Customer Orders 

A Participant, Authorized Trader or Authorized User may not directly or indirectly 

guarantee the execution of a Customer Order or any of its terms such as the quantity or price and 

may only report an execution that has been effected through the Trading System or has been 

executed pursuant to Chapter 6. This Rule shall not be construed to prevent a Participant or 

Authorized Trader from assuming or sharing in the losses resulting from an error or the 

mishandling of a Customer Order. 

Rule 517. Discretionary Customer Orders 

No Person shall submit a discretionary Customer Order to the Trading System without the 

prior written consent of such Customer to the exercise of such discretion. A Customer Order that 

solely gives a Participant, Authorized Trader or Authorized User time and price discretion shall 

not be subject to this Rule. 

Rule 518. Recordkeeping; Audit Trail 

(a) Each Person entering an Order or Indication of Interest into the Trading System or 

originating or responding to a Request for Quote shall include with such Order, Indication of 

Interest or Request for Quote such information as may be required by the Company, including, to 

the extent applicable, the legal entity identifier assigned to each party to a Contract and to each 

party for whom an Order or Indication of Interest is submitted or Request for Quote is originated 

or responded to. If a Person receives a Customer Order that cannot be immediately entered into 

the Trading System or as to which such Person has been given time and price discretion, such 

Person shall create an electronic record that identifies the Customer from whom the Customer 

Order has been received, including an electronic timestamp reflecting the date and time (to the 

nearest second) of receipt. 
 

 

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36 

(b) Participants that provide connectivity to the Trading System to Authorized Traders, 

DMA Customers or other third parties are responsible for maintaining or causing such Authorized 

Traders, DMA Customers or other third parties to maintain a routing/front-end audit trail for all 

Orders, Indications of Interest and Requests for Quotes, including entry, modification, cancellation 

and responses to such messages, entered into or transmitted to the Trading System through any 

gateway to the Trading System, including the times thereof to the highest level of precision 

achievable by the Participant’s operating system, but at least to the nearest second (“Audit Trail”). 

The Audit Trail must be retained in a form and manner that ensures the authenticity and reliability 

of these records. 

(1) Participants shall maintain, or shall cause Authorized Traders, DMA 

Customers and other third parties to whom they have provided connectivity to the 

Trading System to maintain, Audit Trail data in the form and manner required by CFTC 

Regulations and in accordance with such additional requirements as may be established 

by the Company. Participants must have the ability to produce such data, or cause such 

data to be produced, in a reasonable form and medium to be specified in any request of 

the Market Regulation Department. 

(2) A Participant whose Customer is itself a Participant may agree with such 

Customer that it is the Customer’s obligation to maintain the Audit Trail for such 

Customer’s Orders, Indications of Interest and Requests for Quotes. Any such agreement 

shall be in writing, a copy of which shall be provided to the Market Regulation 

Department upon request. 

(c) A suspense account may be used at the time of entry of an Order or Request for 

Quote provided that a contemporaneous electronic or written record of the Order or Request for 

Quote with the account designation is made, time-stamped and maintained in accordance with this 

Rule 518, and provided that the correct account designation is provided to the Clearing Firm prior 

to the end of the trading day. A suspense account may also be used at the time of entry for bunched 

Orders or Requests for Quote that are eligible for post-trade allocation and that are executed and 

allocated in accordance with CFTC Regulation 1.35(b)(5). 

(d) A Person must include the customer type indicator (“CTI”) code with each Order 

and Request for Quote. The CTI codes are as follows: 

(1) CTI 1 - Transactions initiated and executed by a Participant or Authorized 

Trader for its own account, for an account it controls or for an account in which it has an 

ownership or financial interest. 

(2) CTI 2 - Transactions executed for the proprietary account (as such term is 

defined in CFTC Regulation 1.3(y)) of a Participant, Authorized Trader or Clearing Firm. 

(3) CTI 3 - Transactions in which a Participant, Authorized Trader or Authorized User 

is trading (i) for the personal account of another Participant, Authorized Trader or Authorized 
 

 

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37 

User, (ii) for an account that is controlled by such other Participant, Authorized Trader or 

Authorized User, or (iii) for an account in which such other Participant, Authorized Trader or 

Authorized User has an ownership or financial interest. 

(4) CTI 4 - Any transaction which is not characterized by CTIs 1, 2 or 3. 

(e) The Company will enforce the audit trail and recordkeeping requirements set forth 

in this Rule 518 through at least annual reviews of all Participants subject to the requirements of 

this Rule 518 to verify such Participants’ compliance with the applicable requirements of this Rule 

518. 

Rule 519. Position Accountability 

A Person who holds or controls aggregate positions in any Swap in excess of the applicable 

position accountability levels, if any, set forth in Rule 523(c) shall: 

(a) upon request by the Market Regulation Department, provide in a timely manner 

information regarding the nature of the position, trading strategy, and hedging information, if 

applicable; and 

(b) if so ordered by the Market Regulation Department, not further increase positions 

that exceed the position accountability levels specified in Rule 523(c). 

Rule 520. Position Limits 

The Company may, pursuant to Rule 523(a), establish position limits for one or more 

Contracts, which, if and when established will be set forth in Rule 523(c), and grant exemptions 

from position limits, in accordance with CFTC Regulations. For any Contract that is subject to a 

position limit established by the CFTC pursuant to section 4a(a) of the CEA, the Company shall: 

(a) set its position limitation at a level no higher than the CFTC limitation and (b) monitor positions 

established on the Trading System for compliance with the limit set by the CFTC and the limit, if 

any, set by the Company. A Person seeking an exemption from position limits must apply to the 

Market Regulation Department in the form and manner required by the Company. 

Rule 521. Position Information 

Without limiting any other rights of the Company under these Rules or otherwise, the 

Company shall have the right to request position and trading information in respect of a given 

Contract from any Participant, Authorized Trader or Authorized User that has a position in such 

Contract, or whose Customer has a position in such Contract, at or above the applicable position 

accountability level. 

Rule 522. Aggregation of Positions 

For purposes of Rules 519, 520 and 521, positions in Contracts shall be aggregated in 

accordance with CFTC Regulations. 
 

 

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38 

Rule 523. Position Limits and Position Accountability Levels 

(a) To reduce the potential threat of market manipulation or congestion, the Company 

shall adopt for each Contract, as necessary and appropriate, position limitations or position 

accountability levels for speculators. 

(b) The position limits and position accountability levels for Swaps will be calculated 

on a net basis. SwapEx will enforce position limits and position accountability levels only for 

Contracts executed on the Trading System and Block Trades executed pursuant to Chapter 6 of the 

Rules. 

(c) [Reserved.] 

Rule 524. Operation of the Trading System 

The following is a summary of the execution methods and credit and risk limit functionality 

available on the Trading System. It is not intended to provide a comprehensive description of the 

operation of the Trading System or the execution methods and/or credit and risk functionality 

available thereon. Certain execution methods may not be available for certain Contracts (e.g., 

Contracts that are not cleared, Contracts in certain product types, etc.). Additional information 

with respect to the operation of the Trading System, the execution methods and credit and risk 

functionality is provided in the applicable user guide and other specific information that the 

Company may make available to Participants, Authorized Traders and Authorized Users. 

(a) Execution Methods for Required Transactions: 

(1) Order Book. The Trading System’s Central Limit Order Book functionality 

uses a price/time algorithm to match Orders that are eligible to be matched. Whether an 

Order is eligible to be matched depends on a number of factors including, the order type 

and expiry type and, if applicable, credit and/or risk limits established for transactions 

effected through the Trading System. 

(b) Execution Methods for Permitted Transactions. For Permitted Transactions, the 

Trading System will provide the execution method as described in paragraph (a)(1) above and, for 

certain Permitted Transactions, will also provide two request for quote (“Request for Quote” or 

“RFQ”) execution styles: Standard RFQ and Reverse RFQ, as described in in paragraphs (b)(1) and 

(b)(2), respectively, below. In addition, the Trading System may provide various other execution 

methods for Permitted Transactions as notified by the Company to Participants and Authorized 

Traders from time to time. A Permitted Transaction will be deemed executed on the Trading System 

upon the Company providing a record of the terms of an executed transaction to each counterparty 

as provided in Rule 525. 
 

 

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39 

(1) Standard RFQ. Through the Standard RFQ functionality, a Person (the 

“Taker”) may submit an RFQ to certain other Persons (each a “Maker”) to which all such 

Makers may respond. 

(i) A Taker may submit a Request for Quote for a Permitted 

Transaction that is a Cleared Contract through the Standard RFQ functionality to 

any or all Participants and/or Authorized Traders who have indicated to the 

Company in writing that they intend to act as “RFQ Makers” on the Standard RFQ 

functionality; provided that the Taker and each such Participant or Authorized 

Trader have clearing arrangements at the same Derivatives Clearing Organization 

and have available credit. 

(ii) A Taker may submit a Request for Quote for a Permitted 

Transaction that is not a Cleared Contract through the Standard RFQ functionality 

to any or all Participants and/or Authorized Traders, provided that both the Taker 

and each such Participant or Authorized Trader have indicated to the Company in 

writing that they are willing to transact with each other via the Standard RFQ 

functionality and, if a credit relationship has been established between the Taker 

and a Participant or Authorized Trader pursuant to paragraph (c) below, there is 

available credit. Through the Standard RFQ functionality, the Taker may submit a 

Request for Quote composed of two Contracts (that are not Cleared Contracts) for 

the same currency pair but with different fixing dates and maturity/valuation dates. 

(iii) Makers may choose to submit firm or indicative quotes via the 

Standard RFQ functionality. A Maker who provides an indicative quote in response 

to an RFQ in the Standard RFQ functionality is provided the opportunity, during a 

set period of time (the “Standard RFQ Review Period”), after a Taker has accepted 

such indicative price quote, to confirm that it remains willing to execute a 

transaction at that quoted rate. During the Standard RFQ Review Period, (1) the 

RFQ status will be set to “pending” and the Taker can no longer make any edits to 

it and (2) the Maker is not permitted to send the same price quote to any other 

market participant on the Trading System. If the quote provided is confirmed by 

the Maker prior to expiration of the applicable Standard RFQ Review Period, the 

status of the RFQ will be updated to reflect completion of the transaction at the 

quoted rate. If the Maker rejects or otherwise does not confirm acceptance of the 

transaction within the applicable Standard RFQ Review Period noted above, (1) the 

Trading System will not execute a transaction between the Maker and Taker and 

(2) the RFQ will resume and the Taker can select another quoted rate to accept. 

(2) Reverse RFQ. Through the Reverse RFQ functionality, a Person (the 

“Sender”) may stream quotes for certain Permitted Transactions that are not Cleared 

Contracts to any or all Participants and/or Authorized Traders (each a “Recipient”) 

provided that both the Sender and each such Participant or Authorized Trader have 

indicated to the Company in writing that they are willing to transact with each other via 

the Reverse RFQ functionality and, if a credit relationship has been established between 

the Sender and a Participant or Authorized Trader pursuant to paragraph (c) below, there 

is available credit. The Recipient of such quote may indicate its desire to accept a quote 
 

 

Information Classification: General 

40 

from the Sender, and such acceptance will be communicated to the Sender, who then will 

have the opportunity, during a set period of time (the “Reverse RFQ Review Period”) to 

confirm that it remains willing to execute a transaction at that quoted rate. During the 

Reverse RFQ Review Period, (1) the RFQ status will be set to “pending” and the 

Recipient can no longer make any edits to it and (2) the Sender is not permitted to stream 

the same price quote to any other market participant on the Trading Platform. If the quote 

provided is confirmed by the Sender prior to expiration of the applicable Reverse RFQ 

Review Period, the status of the RFQ will be updated to reflect completion of the 

transaction at the quoted rate. If the Sender rejects or otherwise does not confirm 

acceptance of the transaction within the applicable Reverse RFQ Review Period noted 

above, the Trading System will not execute a transaction between the Sender and the 

Recipient of the quote. 

(c) Credit and Risk Limits. The Trading System permits Participants, Authorized 

Traders and Clearing Firms to input and establish credit and/or risk limits on the Trading System. 

The Company may also require Participants, Authorized Traders and/or Clearing Firms to input 

and establish credit and/or risk limits on the Trading System. A Person establishing credit and/or 

risk limits on the Trading System shall be solely responsible for evaluating the creditworthiness of 

each Person for whom it establishes such limit and for determining whether such Person is in 

compliance with any such limits with respect to its activity on the Trading System. The Company 

shall not have any responsibility for compliance with credit limits by a Participant, Authorized 

Trader or Authorized User, notwithstanding that such credit limits may have been input into the 

Trading System, or for monitoring, maintaining or enforcing any such credit limits. 

Rule 525. Confirmation of Transactions 

(a) The Company will provide each counterparty to a transaction that is entered into 

on or pursuant to the rules of the Company with a written record of all of the terms of the transaction 

(a “Confirmation”) which shall legally supersede any previous agreement and serve as a 

confirmation of the transaction and the Trade Communication will state the same. The confirmation 

of all terms of the transaction shall take place at the same time as execution. 

(b) With respect to a transaction in a Contract that is not a Cleared Contract, a 

Confirmation shall, for purposes of CFTC Regulation 37.6(b), consist of the Trade Communication 

and, in accordance with and to the extent permitted by CFTC No-Action Letter 17-17 (expiring on 

the effective date of any changes in the CFTC Regulation) and for so long as the applicable relief 

provided therein is effective, the Terms Incorporated by Reference. In the event of any conflict 

between the Trade Communication and the Terms Incorporated by Reference, the Trade 

Communication shall prevail to the extent of any inconsistency. “Trade Communication” means 

the written communication containing the economic terms specific to a transaction provided by the 

Company to the Participant(s) and/or Authorized Trader(s) who executed such transaction on the 

Trading System and shall be deemed to include the applicable Contract Specifications. “Terms 

Incorporated by Reference” means the documents and agreements between the counterparties to 
 

 

Information Classification: General 

41 

the transaction (including, without limitation, ISDA master agreements, other master agreements, 

terms supplements, master confirmation agreements and incorporated industry definitions) 

governing such transactions existing at the time of execution of the transaction. The Participant(s) 

and/or Authorized Trader(s) must, as applicable, maintain in accordance with Rule 401(a)(8) copies 

of all Terms Incorporated by Reference and, for purposes of compliance with these Rules and CFTC 

Regulations shall provide the Company with copies of such Terms Incorporated by Reference 

promptly upon request by the Company. 

Rule 526. Trade Cancellations, Error Correction and Price Adjustments 

(a) Trade Cancellations and Error Corrections 

(1) Except as provided in Rule 526(a)(2) below, if a transaction is submitted to, 

but not accepted for clearing by, a Derivatives Clearing Organization, such transaction 

shall be deemed to be void ab initio following receipt of a clearing rejection notice from 

the Derivatives Clearing Organization and neither of the parties thereto nor the Company 

shall have any further responsibility for such transaction under these Rules. 

(2) A Participant shall promptly notify the Company, by sending an e-mail to 

support@swapex.com, of any trade executed on or subject to the Rules that contains an 

operational or clerical error (an “Error Trade”), and, as applicable, any offsetting and 

correcting trades. The Participants that are counterparties to the Error Trade shall be 

permitted to enter into an offsetting or correcting trade subject to the following: 

(i) If the Error Trade is not a Cleared Contract, the Company shall 

permit (x) the original counterparties to the Error Trade (or, if the wrong legal entity 

was assigned as a counterparty to the original transaction, the intended 

counterparties) to enter into a prearranged transaction that corrects the errors in the 

Error Trade or (y) the original counterparties to the Error Trade to enter into a 

prearranged transaction that offsets the Error Trade, in each case, using any 

applicable execution method described in Rule 524 above. 

(ii) If the Error Trade is a Cleared Contract rejected from clearing by a 

Derivatives Clearing Organization , the Company shall permit the original 

counterparties to the Error Trade to enter into a new transaction, with terms and 

conditions that match the terms and conditions of the original transaction, other 

than any such error or omission and time of execution using any applicable 

execution method as described in Rule 524 above and submit such new transaction 

for clearing. Execution of a new trade and resubmission of such trade to clearing 

pursuant to this Rule 526(a)(2)(ii) must occur as quickly as technologically 

practicable after the relevant Clearing Firm(s) receipt of notice of the rejection by 

the Derivatives Clearing Organization, but, in any event, no later than sixty (60) 

minutes from issuance of such notice. If the resubmitted transaction is rejected 

from clearing, such transaction will be void ab initio and shall be cancelled by the 

Company. The counterparties may not resubmit a new transaction a second time. 

The procedure set forth in this Rule 526(a)(2)(ii) is not available with respect to 

transactions that are rejected from clearing for credit reasons. 
 

 

Information Classification: General 

42 

(iii) If the Error Trade is a Cleared Contract that has been cleared, the 

Company shall permit the original counterparties to the Error Trade to enter into a 

prearranged transaction that offsets the transaction carried on the books of the 

relevant Derivatives Clearing Organization using any applicable execution method 

as described in Rule 524 above. The Company shall also permit the original 

counterparties (or, if the wrong legal entity was assigned as a counterparty to the 

original transaction, the intended counterparties) to enter into a prearranged 

transaction that corrects the errors in the Error Trade using any applicable execution 

method as described in Rule 524 above. Any offsetting or correcting transaction 

executed pursuant to this Rule 526(a)(2)(iii) must be executed and submitted for 

clearing not later than three days after the three days after the relevant Derivatives 

Clearing Organization accepted the Error Trade for clearing. If the offsetting or 

correcting transaction is rejected from clearing, such transaction will be void ab 

initio and shall be cancelled by the Company. The counterparties may not resubmit 

a new transaction a second time. 

(iv) Except as otherwise required under the CEA or CFTC Regulation, 

the Company shall not directly or indirectly, including through a third-party service 

provider, disclose the identity of any counterparty to a Cleared Contract that has 

been executed anonymously. Participants shall not directly or indirectly, including 

through a third-party service provider, disclose the identity of any counterparty to 

a Cleared Contract that has been executed anonymously. 

(3) No Participant, Authorized Trader or Customer or prospective Participant, 

Authorized Trader or Customer may enforce a Breakage Agreement with another 

Participant, Authorized Trader or Customer, or require such an agreement as a condition 

to trading with such other Participant, Authorized Trader or Customer on or pursuant to 

the Rules in respect of a Cleared Contract. 

(b) Company Authority 

(1) The Company has authority to adjust trade prices or cancel (bust) trades 

when such action is necessary to mitigate market-disrupting events caused by the 

improper or erroneous use of the Trading System or by a malfunction or other 

technological error in the Trading System. 

(2) Notwithstanding any other provision of this Rule 526, the Company may 

adjust trade prices or cancel any trade if the Company determines that allowing the trade 

to stand as executed may have a material, adverse effect on the integrity of the market. 

(c) Review of Trades 
 

 

Information Classification: General 

43 

(1) The Company may determine to review a trade based on its independent 

analysis of market activity or upon request for review by a Participant. A request for 

review must be made within fifteen (15) minutes of the execution of the trade. 

(2) The Company shall determine whether or not a trade will be subject to 

review. In the absence of a timely request for review, during volatile market conditions, 

upon the release of significant news, or in any other circumstance in which the Company 

deems it to be appropriate, the Company may determine, in its sole discretion, that a trade 

shall not be subject to review. In addition, notwithstanding anything to the contrary 

herein, any trade that is entered into pursuant to a Market Order or a Stop Loss Order or 

that has been accepted for clearing by a Derivatives Clearing Organization shall not be 

subject to review under this Rule 526(c) or adjustment or cancellation under Rule 526(d) 

or Rule 526(e). 

(3) Upon deciding to review a trade, the Company shall promptly issue an alert 

to all Participants via the Trading System or electronic mail indicating that the trade is 

under review. 

(d) Price Adjustments and Trade Cancellation 

(1) Company Review Procedures. In reviewing a trade, the Company shall first 

determine whether the trade price is within the relevant No-Bust Range for the contract, 

as set forth in paragraph (g). 

(2) Trade Price Inside the No-Bust Range. If the Company determines that the 

price of the trade is inside the No-Bust Range, the Company shall issue an alert indicating 

that the trade shall stand. 

(3) Trade Price Outside the No-Bust Range. If the Company determines that a 

trade price is outside the No-Bust Range, the Company may cancel the trade if the 

Company determines (i) that the trade was the result of an error, (ii) that allowing the 

trade to stand as executed may have a material, adverse effect on the integrity of the 

market or (iii) that cancellation is necessary to mitigate market-disrupting events caused 

by the improper or erroneous use of the Trading System or by a malfunction or other 

technological error in the Trading System. The Company shall issue an alert regarding 

such cancellation. 

(4) Trade Cancellations and Adjustments. Busted trade prices and any prices 

that have been adjusted shall be cancelled in the Company’s official record of time and 

sales. Trades that are price-adjusted shall be inserted in the time and sales record at the 

adjusted trade price. 

(e) Alternative Resolution by Agreement of Parties. 

(1) With the approval of the Company, parties to an uncleared trade that is 

price-adjusted may instead mutually agree to cancel the trade. 
 

 

Information Classification: General 

44 

(2) With the approval of the Company, parties to an uncleared trade that is 

busted may instead mutually agree to price adjust the trade by cancelling the trade and 

reporting a new trade at the adjusted price. 

(f) [Reserved.] 

(g) No-Bust Ranges 

Contracts No-Bust Ranges 

Non-deliverable 

Foreign Exchange 

Forwards

An exchange rate off by a set number of “pips” (as such 

term is commonly understood in the foreign exchange 

marketplace) from the determination of fair market value 

by the Company. The number of pips for the currency pairs 

available for trading on the Trading System are set forth in 

the table below:

Currency Pair Pips

USD/ARS 100

USD/BRL 100

USD/CLP 150

USD/CNY 100

USD/COP 50

USD/IDR 200

 
 

 

Information Classification: General 

45 

Contracts No-Bust Ranges 

Non-deliverable 

Foreign Exchange 

Forwards

An exchange rate off by a set number of “pips” (as such 

term is commonly understood in the foreign exchange 

marketplace) from the determination of fair market value 

by the Company. The number of pips for the currency pairs 

available for trading on the Trading System are set forth in 

the table below:

Currency Pair Pips

USD/INR 30

USD/KRW 5

USD/MYR 150

USD/PEN 200

USD/PHP 20

USD/RUB 10

USD/TWD 10

AUD/USD 20

USD/CAD 20

USD/CHF 30

USD/CZK 150

USD/DKK 100

EUR/USD 20

GBP/USD 20

USD/HKD 60

USD/JPY 20

USD/MXN 300

USD/NOK 200

NZD/USD 60

USD/SEK 200

USD/SGD 50

USD/THB 20

USD/TRY 50
 

 

Information Classification: General 

46 

Contracts No-Bust Ranges 

Non-deliverable 

Foreign Exchange 

Forwards (continued) Currency Pair Pips

USD/ZAR 200

AUD/ARS 100

AUD/BRL 100

AUD/CLP 150

AUD/CNY 100

AUD/COP 50

AUD/IDR 200

AUD/INR 30

AUD/KRW 5

AUD/MYR 150

AUD/PEN 200

AUD/PHP 20

AUD/RUB 10

AUD/TWD 10

CAD/ARS 100

CAD/BRL 100

CAD /CLP 150

CAD/CNY 100

CAD/COP 50

CAD/IDR 200

CAD/INR 30

CAD/KRW 5

CAD/MYR 150

CAD/PEN 200

 
 

 

Information Classification: General 

47 

Contracts No-Bust Ranges 

Non-deliverable 

Foreign Exchange 

Forwards (continued) Currency Pair Pips

CAD/PHP 20

CAD/RUB 10

CAD/TWD 10

EUR/ARS 100

EUR/BRL 100

EUR/CLP 150

EUR/CNY 100

EUR/COP 50

EUR/IDR 200

EUR/INR 30

EUR/KRW 5

EUR/MYR 150

EUR/PEN 200

EUR/PHP 20

EUR/RUB 10

EUR/TWD 10

GBP/ARS 100

GBP/BRL 100

GBP/CLP 150

GBP/CNY 100

GBP/COP 50

GBP/IDR 200

GBP/INR 30

GBP/KRW 5

GBP/MYR 150

GBP/PEN 200

 
 

 

Information Classification: General 

48 

Contracts No-Bust Ranges 

Non-deliverable 

Foreign Exchange 

Forwards (continued) Currency Pair Pips

GBP/PHP 20

GBP/RUB 10

GBP/TWD 10

JPY/ARS 10,000

JPY/BRL 10,000

JPY/CLP 15,000

JPY/CNY 10,000

JPY/COP 5,000

JPY/IDR 20,000

JPY/INR 3,000

JPY/KRW 500

JPY/MYR 15,000

JPY/PEN 20,000

JPY/PHP 2,000

JPY/RUB 1,000

JPY/TWD 1,000

 
 

 

Information Classification: General 

49 

(h) Company Determinations Final 

All determinations and decisions of the Company with respect to the foregoing 

matters shall be final. 

(i) Reporting 

The Company shall report to the Swap Data Repository any cancellation and/or 

new trade entered into pursuant to this Rule 526. 

Rule 527. Limitation of Liability; No Warranties 

(a) EXCEPT IN INSTANCES IN WHICH THE DISCLAIMING PARTY (DEFINED BELOW) HAS 

BEEN FINALLY ADJUDICATED BY A COURT OF COMPETENT JURISDICTION TO HAVE ENGAGED IN 

FRAUD, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, IN WHICH CASE THE DISCLAIMING PARTY 

FOUND TO HAVE ENGAGED IN SUCH CONDUCT CANNOT AVAIL ITSELF OF THE PROTECTIONS IN THIS 

RULE 527 AND WITHOUT LIMITING THE COMPANY’S INDEMNIFICATION OBLIGATIONS UNDER RULE 

914, NEITHER THE COMPANY, NOR ANY AFFILIATE OF THE COMPANY, NOR ANY OF THEIR RESPECTIVE 

MANAGERS, OFFICERS, DIRECTORS, EMPLOYEES, EQUITYHOLDERS, AGENTS, CONSULTANTS OR 

SERVICE PROVIDERS (INCLUDING ANY REGULATORY SERVICES PROVIDER), NOR ANY MEMBER OF 

ANY COMMITTEE OR OTHER GOVERNING BODY OF ANY AFFILIATE OF THE COMPANY (EACH OF THE 

FOREGOING, AS APPLICABLE, THE “DISCLAIMING PARTY” AND, COLLECTIVELY, “DISCLAIMING 

PARTIES”), SHALL BE LIABLE TO ANY PERSON FOR ANY LOSSES ARISING OUT OF OR IN CONNECTION 

WITH: 

(1) ANY FAILURE, MALFUNCTION, FAULT IN DELIVERY, DELAY, OMISSION,

SUSPENSION, INACCURACY, INTERRUPTION, TERMINATION, OR ANY OTHER EVENT, IN 

CONNECTION WITH THE FURNISHING, PERFORMANCE, OPERATION, MAINTENANCE, USE OF 

OR INABILITY TO USE ALL OR ANY PART OF THE TRADING SYSTEM OR ANY OTHER SYSTEMS 

AND SERVICES OF THE COMPANY, OR SERVICES, EQUIPMENT OR FACILITIES USED TO 

SUPPORT SUCH SYSTEMS AND SERVICES, INCLUDING ELECTRONIC ORDER ENTRY AND 

DELIVERY, TRADING THROUGH ANY ELECTRONIC MEANS, ELECTRONIC COMMUNICATION 

OF MARKET DATA OR INFORMATION, WORKSTATIONS USED BY CLEARING FIRMS,

PARTICIPANTS, AUTHORIZED TRADERS, AND AUTHORIZED USERS, PRICE REPORTING 

SYSTEMS AND ANY AND ALL TERMINALS, COMMUNICATIONS NETWORKS, CENTRAL 

COMPUTERS, SOFTWARE, HARDWARE AND FIRMWARE RELATING THERETO; OR

(2) ANY FAILURE OR MALFUNCTION, FAULT IN DELIVERY, DELAY, OMISSION,

SUSPENSION, INACCURACY, INTERRUPTION OR TERMINATION, OR ANY OTHER EVENT, OF 

ANY SYSTEM OR SERVICE OF THE COMPANY, OR SERVICES, EQUIPMENT OR FACILITIES USED 

TO SUPPORT SUCH SYSTEMS OR SERVICES, CAUSED BY ANY THIRD PARTIES INCLUDING, BUT 

NOT LIMITED TO, INDEPENDENT SOFTWARE VENDORS AND NETWORK PROVIDERS; OR

(3) ANY ERRORS OR INACCURACIES IN INFORMATION PROVIDED BY THE 

COMPANY OR ANY OF THE COMPANY’S SYSTEMS, SERVICES OR FACILITIES; OR
 

 

Information Classification: General 

50 

(4) ANY UNAUTHORIZED ACCESS TO OR UNAUTHORIZED USE OF ANY OF THE 

COMPANY’S SYSTEMS, SERVICES, EQUIPMENT OR FACILITIES BY ANY PERSON. 

THE FOREGOING LIMITATION OF LIABILITY SHALL APPLY WHETHER A CLAIM IS BASED ON 

BREACH OF CONTRACT, TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY, NEGLIGENT 

MISREPRESENTATION, RESTITUTION, BREACH OF STATUTORY DUTY, BREACH OF WARRANTY OR 

OTHERWISE AND WHETHER THE CLAIM IS BROUGHT DIRECTLY OR AS A THIRD PARTY CLAIM. 

(b) THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS PROVIDED 

BY THE COMPANY OR ANY OTHER DISCLAIMING PARTIES, RELATING TO ANY SYSTEMS OR SERVICES 

OF THE COMPANY OR SERVICES, EQUIPMENT OR FACILITIES USED TO SUPPORT SUCH SYSTEMS OR 

SERVICES, INCLUDING THE TRADING SYSTEM AND THE COMPANY HEREBY SPECIFICALLY DISCLAIMS,

OVERRIDES AND EXCLUDES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL IMPLIED WARRANTIES 

OF MERCHANTABILITY, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE AND ALL 

OTHER WARRANTIES, CONDITIONS AND REPRESENTATIONS WITH RESPECT TO THE SERVICES,

WHETHER EXPRESS, IMPLIED OR STATUTORY, ARISING BY LAW, CUSTOM, PRIOR ORAL OR WRITTEN 

STATEMENTS BY THE COMPANY OR ANY OTHER DISCLAIMING PARTY OR OTHERWISE (INCLUDING BUT 

NOT LIMITED TO, AS TO TITLE, SATISFACTORY QUALITY, ACCURACY, COMPLETENESS,

UNINTERRUPTED USE, NON-INFRINGEMENT, TIMELINESS, TRUTHFULNESS, SEQUENCE AND ANY 

IMPLIED WARRANTIES, CONDITIONS AND OTHER CONTRACTUAL TERMS ARISING FROM TRANSACTION 

USAGE, COURSE OF DEALING OR COURSE OF PERFORMANCE) RELATING TO ANY SYSTEMS OR 

SERVICES OF THE COMPANY OR SERVICES, EQUIPMENT OR FACILITIES USED TO SUPPORT SUCH 

SYSTEMS OR SERVICES, INCLUDING THE TRADING SYSTEM. 

(c) THE COMPANY’S TOTAL COMBINED AGGREGATE LIABILITIES SHALL NOT EXCEED 

$100,000 FOR ALL LOSSES FROM ALL CAUSES SUFFERED BY ALL PERSONS ON A SINGLE DAY;

$200,000 FOR ALL LOSSES SUFFERED BY ALL PERSONS FROM ALL CAUSES IN A SINGLE CALENDAR 

MONTH; AND $2,000,000 FOR ALL LOSSES FROM ALL CAUSES SUFFERED BY ALL PERSONS IN A SINGLE 

CALENDAR YEAR. If the number of allowed claims arising out of any failures or malfunctions on a 

single day or single month cannot be fully satisfied because of the above dollar limitations, all 

such claims shall be limited to a pro rata share of the maximum amount for the respective period. 

In no event shall the total combined aggregate liability of the Disclaiming Parties for all claims 

arising out of any failures, malfunctions, faults in delivery, delays, omissions, suspensions, 

inaccuracies, interruptions, terminations or any other causes in connection with the furnishing, 

performance, operation, maintenance, use of or inability to use all or any part of any of the 

Company’s systems or services, or services, equipment or facilities used to support such systems 

or services, including the Trading System, or the negligence of the Company or any Disclaiming 

Party exceed $2,000,000 in any given calendar year. The limitations of liability in this Rule 527(c) 

shall not apply to the Company’s indemnification obligations under Rule 914. 

(d) Under no circumstances shall the Company be liable to a Participant or any other 

Person for any indirect, special, incidental, consequential, exemplary loss or punitive damages of 

any kind, regardless of whether such liability is based on breach of contract, tort, strict liability, 
 

 

Information Classification: General 

51 

breach of warranties or otherwise, including any loss of revenue, loss of actual or anticipated 

profits, loss of contracts, loss of the use of money, loss of anticipated savings, loss of business, 

loss of opportunity, loss of market share, loss of goodwill, loss of reputation or loss of, damage to 

or corruption of data, however suffered or incurred, regardless of whether the Company has been 

advised of the possibility of such damages or whether such damages otherwise could have been 

foreseen or prevented. 

(e) Under no circumstances shall the Company be liable for the acts, errors or 

omissions of any third party, including any data communication service, Swap Data Repository or 

Derivatives Clearing Organization. 

(f) Any dispute arising out of the use of the systems or services of the Company or 

services, equipment, or facilities used to support such systems or services, including the Trading 

System, in which one or more Disclaiming Parties is a party shall be arbitrated pursuant to the 

Rules in Chapter 8, and references in Chapter 8 to a “Participant” shall, to the extent relevant, be 

deemed for such purpose to mean and include the Disclaiming Parties. Any such claim against a 

Disclaiming Party shall be brought within two (2) years from the time that a cause of action has 

accrued. This paragraph (f) shall in no way be construed to create a cause of action and shall not 

authorize an action that would otherwise be prohibited by the Rules. If for any reason, a court of 

competent jurisdiction finds that a dispute is not arbitrable, such dispute may be litigated only in 

accordance with Rule 912. 

(g) For the avoidance of doubt, the limitations on liability in this Rule 527 do not 

change the Company’s obligations under the CEA or CFTC Regulations. 

Rule 528. Swap Data Reporting 

(a) The Company will report Reportable Swap Data (which Data shall include, but 

shall not be limited to, the actual notional or principal amount for a Swap) to a Swap Data 

Repository for each Contract executed on the Trading System or pursuant to the Rules as soon as 

technologically practicable following execution. The Company may provide Swap Transaction 

and Pricing Data to Participants and Authorized Traders no earlier than the time it transmits such 

information to a Swap Data Repository and in a form that does not disclose the identities, or 

otherwise facilitate identification, of the parties to the Contract. 

(b) The Reporting Counterparty for each Contract executed on the Trading System 

shall be established pursuant to CFTC Regulation 45.8. If both counterparties are equal in the 

hierarchy set out in CFTC Regulation 45.8 (for example, both are swap dealers), the Reporting 

Counterparty for such Contract shall be, with respect to foreign exchange Contracts, the seller of 

the currency that is higher in alphabetical order determined based on currency code (for example, 

in a USD/BRL trade, the seller of BRL would be the Reporting Counterparty because B is 

alphabetically higher than U). 

(c) The Company has designated DTCC Data Repository (U.S.) LLC as the Swap Data 

Repository, to which it will report Reportable Swap Data in accordance with CFTC Regulations. 

(d) Each Participant and Authorized Trader: 
 

 

Information Classification: General 

52 

(1) authorizes the Company to send Reportable Swap Data on its behalf and, if 

applicable, on behalf of its Customers to the relevant Swap Data Repository designated 

in accordance with Rule 528(c) and further agrees to take all such actions as are deemed 

necessary or required by such Swap Data Repository to facilitate or confirm such 

authorization; and 

(2) consents to the maintenance of such Reportable Swap Data by the relevant 

Swap Data Repository designated in accordance with Rule 528(c). 

(e) Each Participant, Authorized Trader and Authorized User that enters an Order, an 

Indication of Interest or a Request for Quote into the Trading System shall include with each such 

Order, an Indication of Interest or a Request for Quote the following information (to the extent 

such information is not provided by the Trading System): 

(1) the legal entity identifier of such Participant or Authorized Trader; 

(2) a yes/no indication of whether such Participant or Authorized Trader is a 

swap dealer with respect to the asset class of the Contract for which the Order, Indication 

of Interest or Request for Quote is placed; 

(3) a yes/no indication of whether such Participant or Authorized Trader is a 

major swap participant with respect to the Contract for which the Order, Indication of 

Interest or Request for Quote is placed; 

(4) a yes/no indication of whether such Participant or Authorized Trader is a 

financial entity as such term has been defined by the CFTC; 

(5) a yes/no indication of whether such Participant or Authorized Trader is a 

U.S. person as such term has been defined by the CFTC; and 

(6) if the Contract is a pre-allocation Swap: 

(A) an indication that the Contract will be allocated; 

(B) the legal entity identifier of the agent; 

if the Contract is a pre-allocation Swap, the Company shall transmit the unique 

swap identifier for such Contract to the Reporting Counterparty and to the agent. 

(7) if the Contract is a post-allocation Swap: 

(A) the legal entity identifier of the agent; 

(B) an indication of whether the Contract is a post-allocation swap; and 
 

 

Information Classification: General 

53 

(C) the unique swap identifier of the original transaction between the 

Reporting Counterparty and the agent. 

Post-allocation Contracts shall be respectively effected and reported in 

accordance with the rules of the Derivatives Clearing Organization and Swap 

Data Repository and in accordance with CFTC Regulations. 

(f) If the Company lists any multi-asset Swap for trading on the Trading Facility, the 

Company shall report Reportable Swap Data for such Swap to a single Swap Data Repository that 

accepts Swaps in the asset class treated as the primary asset class involved in the Swap. Without 

limiting the foregoing, the Company shall report all primary economic terms (as defined in CFTC 

Regulation 45.1) for each asset class involved in the Swap. 

Rule 529. Updating Reportable Swap Data 

Any Participant, Authorized Trader or Customer that discovers any error, omission or 

required amendment to Reportable Swap Data for a Contract submitted on its behalf shall promptly 

submit corrected data to the Company and, if the error or omission relates to a Block Trade, the 

counterparty to such Block Trade. The Company shall report any errors or omissions in any data 

that it previously reported to a Swap Data Repository as soon as technologically practicable after 

the discovery thereof. 
 

Information Classification: General 

54 

CHAPTER 6. BLOCK TRADES 

Rule 601. Block Trades 

(a) Block Trades shall be permitted to the extent consistent with CFTC Regulations, 

these Rules and any advisory notice or other rule (as defined in CFTC Regulation 40.1) 

implemented by the Company in accordance with Part 40 of the CFTC Regulations. The ability 

to transact via Block Trades is subject to the Company’s support of the relevant functionality. 

(b) The following shall govern Block Trades: 

(1) The parties to a Block Trade must be Eligible Contract Participants, and a 

Block Trade must be in a notional or principal amount that is equal to or in excess of the 

appropriate minimum block size for such Swap as set forth in CFTC Regulation 43.6 

(including, as applicable, any currency conversion in accordance with CFTC Regulation 

43.6(h)(4) and Appendix F to Part 43 of CFTC Regulations). Orders for different 

accounts may not be aggregated to achieve the minimum block size, except that 

aggregation is permitted if done by a person who (x)(i) is registered as a commodity 

trading advisor under Section 4n of the CEA, or exempt from registration under the CEA, 

or a principal thereof, who has discretionary trading authority or directs client accounts, 

(ii) is an investment adviser who has discretionary trading authority or directs client 

accounts and satisfies the requirements set forth in CFTC Regulation 4.7(a)(2)(v); or (iii) 

is a foreign person who performs a similar role or has a similar function as the foregoing 

persons and is subject as such to foreign regulation; and (y) has more than $25 million in 

total assets under management. 

(2) Spread trades may be executed as Block Trades, provided that the quantity 

of each leg of the spread meets the appropriate minimum block size for such Swap. 

(3) A Participant or Authorized Trader must receive instructions from a 

Customer or obtain the Customer’s prior consent before entering into a Block Trade on 

behalf of that Customer. 

(4) A Block Trade may only be executed pursuant to the Rules and Company 

Requirements and submitted to the Company if both counterparties to the trade are 

Participants, Authorized Traders or Customers of Participants or Authorized Traders and 

the Company offers the relevant functionality to support such submission. 

(5) Both parties to a transaction that is intended to be treated as a Block Trade 

under CFTC Regulation 43.6 must notify the Company of their election to treat the 

transaction as a Block Trade. Both such parties shall report the actual notional or 

principal amount of the Block Trade and any other required information to the Company 

as soon as technologically practicable following the execution of the Block Trade, but in 

no event later than ten (10) minutes after the execution thereof. Such report must include 

the information required by the Company. 
Information Classification: General 

55 

(6) The Company shall transmit all Reportable Swap Data (including a 

notification of Block Trade election) to a Swap Data Repository as soon as 

technologically practicable following receipt of such data by the Company. 

Rule 602. Time-Stamp Requirements for Block Trades 

All Block Trades executed in accordance with Chapter 6 are subject to the following 

requirements. 

(a) The record of each Block Trade maintained by the parties to the Block Trade 

pursuant to Rule 401(a)(8) shall include an electronic time-stamp reflecting the date and time of 

execution. 

(b) The Company shall time-stamp the transaction and pricing data with the date and 

time (to the nearest second) that the Company receives such data from the party reporting the 

Block Trade and the date and time when the Company transmits such data to a Swap Data 

Repository. 
 

Information Classification: General 

56 

CHAPTER 7. DISCIPLINARY RULES 

Rule 701. General 

(a) A Person subject to the Company’s jurisdiction shall be subject to this Chapter 7 if 

such Person is alleged to have violated, to have aided and abetted a violation of, to be violating, or 

to be about to violate, any Rule. 

(b) The Company, through the Market Regulation Department and the Disciplinary 

Panel, will conduct Disciplinary Proceedings. The Market Regulation Department will maintain 

an enforcement staff that will prosecute violations in accordance with this Chapter 7. The 

enforcement staff shall not include Participants, Authorized Traders, Authorized Users, Customers 

or Persons whose interests conflict with their enforcement duties. Members of the enforcement 

staff shall not operate under the direct control of any person with Trading Privileges. No member 

of the Market Regulation Department may be a Disciplinary Panel Member or Appeal Panel 

Member. Any reference to the Market Regulation Department in this Chapter 7 shall also be a 

reference to the enforcement staff. 

(c) No Company Official, Director or Officer will interfere with or attempt to influence 

the process or resolution of any Disciplinary Proceeding, except to the extent provided under the 

Rules with respect to a Disciplinary Proceeding in which an Officer or Company Official is a 

member of the enforcement staff or a Director is a member of the relevant Disciplinary Panel or 

Appeal Panel. 

(d) No Person subject to the Company’s jurisdiction may knowingly or intentionally 

impede or delay any Disciplinary Proceeding or any inquiry or investigation by the Market 

Regulation Department. 

(e) A Person who acts in violation of Rule 701(d) may be subject to summary 

suspension or other summary action in accordance with Rule 717. 

(f) Any Person subject to the Company’s jurisdiction may be represented in a 

Disciplinary Proceeding by legal counsel or any other representative of its choosing at its own 

expense. 

(g) Liability. 

(1) The Company may hold a Participant liable for, and impose sanctions 

against such Participant, for such Participant’s own acts and omissions that constitute a 

violation of these Rules as well as for the acts and omissions of (i) such Participant’s 

Authorized Traders, Authorized Users and DMA Customers or (ii) a Person using the 

User ID of any of such Participant’s Authorized Users, in each case, that constitute a 

violation as if such violation were that of the Participant. 

(2) The Company may hold an Authorized Trader liable for, and impose 

sanctions against such Authorized Trader, for such Authorized Trader’s own acts and 
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57 

omissions that constitute a violation of these Rules as well as or for the acts and omissions 

of (i) such Authorized Trader’s Authorized Users or (ii) a Person using the User ID of 

any of such Authorized Trader’s Authorized Users, in each case, that constitute a 

violation as if such violation were that of the Authorized Trader. 

(3) The Company may hold an Authorized User liable for, and impose 

sanctions against such Authorized User, for such Authorized User’s own acts and 

omissions that constitute a violation of these Rules, as well as or for the acts and 

omissions of a Person using such Authorized User’s User ID that constitute a violation 

as if such violation were that of the Authorized User. 

(4) The Company may hold any Person subject to the Company’s jurisdiction 

liable for, and impose sanctions against such Person, for such Person’s own acts and 

omissions that constitute a violation of these Rules. 

(h) Ex Parte Communications. 

(1) A Person subject to a Disciplinary Proceeding (and any legal counsel or 

other representative of such Person) and the Market Regulation Department (and any 

legal counsel or other representative of the Market Regulation Department) shall not 

knowingly make or cause to be made an ex parte communication relevant to the merits 

of a Disciplinary Proceeding to any member of the Disciplinary Panel or the Appeal Panel 

hearing such proceeding or appeal, as applicable. 

(2) Members of the Disciplinary Panel or the Appeal Panel, as applicable, shall 

not knowingly make or cause to be made an ex parte communication relevant to the 

merits of a Disciplinary Proceeding to any Person subject to such proceeding, the Market 

Regulation Department or any legal counsel or other representative of such Person or the 

Market Regulation Department. 

(3) Any Person who receives makes or learns of any communication that is 

prohibited by this Rule shall promptly give written notice of such communication and 

any response thereto to the Market Regulation Department and all parties to the 

Disciplinary Proceeding to which the communication relates. 

(4) A Person shall not be deemed to have violated this Rule if the Person refuses 

an attempted communication concerning the merits of a Disciplinary Proceeding as soon 

as it becomes apparent the communication concerns the merits. 

Rule 702. Inquiries and Investigation 

(a) The Market Regulation Department shall make such inquires as it deems necessary 

or appropriate to monitor Participants’ and other Persons’ compliance with the Rules. The Market 

Regulation Department shall commence an investigation, as provided in paragraph (b), if it has 

reason to believe that the Rules have been or may be violated or upon the receipt of a request from 

the CFTC. Any member of the Market Regulation Department must promptly recuse himself or 
 

Information Classification: General 

58 

herself and notify the Chief Compliance Officer if such member has a material conflict of interest 

with respect to any potential respondent in an Investigation Report. 

(b) Persons subject to the Company’s jurisdiction shall assist the Company and the 

Regulatory Services Provider in any investigation into potential violations of the Rules and the 

Company or the Regulatory Services Provider may require such Person to furnish such information 

concerning such Person’s business that is subject to the Rules and Company Requirements as the 

Company may deem necessary to enable the Company to perform its obligations under Applicable 

Law, including information relating to Contracts and related financial instruments, and information 

requested by a Government Agency, Self-Regulatory Organization, Derivatives Clearing 

Organization or service provider or licensor relating to the Company’s business as a swap 

execution facility and/or the Company’s compliance with Applicable Law. The Company or the 

Regulatory Services Provider may require such Person to produce documents, to answer questions 

from the Company, and/or to appear in connection with an investigation. 

(c) The Market Regulation Department will investigate apparent violations of the 

Rules of which it becomes aware. The Market Regulation Department will commence an 

investigation upon the receipt of a request from CFTC staff or upon the discovery or receipt of 

information by the Company that, in the judgment of the Market Regulation Department, indicates 

a reasonable basis for finding that a violation has occurred or will occur. The Market Regulation 

Department will determine the nature and scope of its inquiries and investigations in its sole 

discretion and will function independently of the commercial interests of the Company. 

(d) The Market Regulation Department has the authority to: 

(1) initiate and conduct inquiries and investigations; 

(2) prepare Investigation Reports and make recommendations concerning 

initiating Disciplinary Proceedings; and 

(3) prosecute alleged violations within the Company’s disciplinary jurisdiction. 

(e) Each Person subject to the Company’s jurisdiction is obligated to appear and testify 

and respond in writing to requests for information from the Market Regulation Department and to 

produce books, records, papers, documents or other tangible evidence in such Person’s possession, 

custody or control within the time period required by the Market Regulation Department. 

Rule 703. Reports of Investigations 

(a) The Market Regulation Department will maintain a log of all investigations and 

their disposition. The Market Regulation Department will prepare a written report of each 

investigation (the “Investigation Report”), regardless of whether the evidence gathered during an 

investigation forms a reasonable basis to believe that a violation within the Company’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. 
Information Classification: General 

59 

(b) The Investigation Report shall include the reasons for initiating the investigation 

(including a summary of the complaint, if any), all relevant facts and evidence gathered, Market 

Regulation Department staff’s analysis and conclusions and the recommendation of the Market 

Regulation Department. For each potential respondent, the Market Regulation Department will 

recommend either: 

(1) closing the investigation without further action; 

(2) resolving the investigation through an informal disposition, including the 

issuance of a warning letter. An informal disposition (including the issuance of a warning 

letter) shall not constitute a finding of a violation or a sanction; 

(3) summary action; 

(4) the preparation and service of a notice of charges for instituting a 

Disciplinary Proceeding and recommended sanctions if a violation is found to have 

occurred by a Hearing Panel; or 

(5) a negotiated settlement. 

(c) The Investigation Report shall be provided to the Chief Compliance Officer for a 

determination as to whether the Investigation Report is complete. 

(d) Each Market Regulation Department investigation shall be completed in a timely 

manner and, absent mitigating factors, no later than twelve (12) months after the date that an 

investigation is opened. Mitigating factors that may justify an investigation taking longer than 

twelve (12) months to complete include the complexity of the investigation, the number of 

potential wrongdoers, the number of potential violations to be investigated and the volume of 

documents and data to be examined and analyzed. 

Rule 704. Opportunity to Respond 

(a) After completing its Investigation Report, the Market Regulation Department shall, 

where applicable and with the authorization of the Chief Compliance Officer, notify each potential 

respondent that the Market Regulation Department has recommended formal disciplinary charges 

against the potential respondent. 

(b) The Market Regulation Department shall allow a potential respondent to submit a 

written statement explaining why a Disciplinary Proceeding should not be instituted and/or one or 

more of the potential charges should not be brought. The potential respondent shall submit any 

written statement within the time limit established by the Market Regulation Department. 

Rule 705. Review of Investigation Reports 

(a) After the completion of the Investigation Report and the receipt of any submission 

made by the proposed respondent pursuant to Rule 704(b), the Chief Compliance Officer shall 

decide whether to refer the Investigation Report to the Market Regulation Department for further 
 

Information Classification: General 

60 

review or to establish a Review Panel. The Market Regulation Department or Review Panel, as 

appropriate, shall, within thirty (30) days, take one of the following actions: 

(1) If the Market Regulation Department or Review Panel, as appropriate, 

determines that additional investigation or evidence is needed, it shall promptly conduct 

such further investigation; 

(2) If the Market Regulation Department or Review Panel, as appropriate, 

determines that no reasonable basis exists for finding a violation or that prosecution is 

otherwise unwarranted, it shall direct that no further action be taken. Such determination 

shall be in writing, and shall include a written statement setting forth the facts and 

analysis supporting the decision; or 

(3) If the Market Regulation Department or Review Panel, as appropriate, 

determines that a reasonable basis exists for finding a violation and adjudication is 

warranted, it shall direct that the Person alleged to have committed the violation be served 

with a notice of charges and proceed in accordance with this Chapter 7 or to be issued a 

warning letter meeting the requirements set forth in Rule 714(b)(1). 

(b) A failure of the Market Regulation Department or Review Panel, as appropriate, to 

act within the time prescribed in paragraph (a) shall not prevent the Chief Compliance Officer 

from issuing a warning letter if he or she deems it appropriate to do so. The Chief Compliance 

Officer shall inform the Regulatory Oversight Committee of any such failure of the Market 

Regulation Department or Review Panel, as appropriate, to act. 

Rule 706. Notice of Charges 

(a) If the Market Regulation Department or Review Panel, as appropriate, authorizes 

Disciplinary Proceedings pursuant to Rule 705(a)(3), it will prepare, and serve in accordance with 

Rule 707, a notice of charges. 

(b) A notice of charges shall: 

(1) state the acts, practices or conduct that the respondent is alleged to have 

engaged in; 

(2) state each specific Rule alleged to have been violated or about to be 

violated; 

(3) advise the respondent of its right to a hearing; 

(4) advise the respondent that it has the right to be represented by legal counsel 

or any other representative of its choosing in all succeeding stages of the disciplinary 

process (other than a Director, Officer or employee of the Company, any member of the 

Disciplinary Panel or any person substantially related to the Disciplinary Proceedings 

such as a material witness or other respondent); 
Information Classification: General 

61 

(5) state the period of time within which the respondent may file an answer to, 

and request a hearing on, the notice of charges, which will, except for good cause, not be 

less than twenty (20) days after service of the notice of charges; 

(6) 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 

(7) advise the respondent that any allegation in the notice of charges that is not 

expressly denied will be deemed to be admitted. 

Rule 707. Service of Notice 

Any notice of charges or other documents to be served pursuant to this Chapter 7 may be 

served upon the respondent, and service shall be deemed complete, upon: (i) deposit in the United 

States mail, postage prepaid, via registered or certified mail; (ii) delivery of the same to a 

recognized courier service, addressed to the respondent at the respondent’s last known place of 

business or residence; or (iii) transmittal by electronic mail to the electronic mail address as it 

appears on the books and records of the Company, if followed by a hard copy of the document 

sent promptly thereafter by United States mail, postage prepaid, via registered or certified mail. 

Rule 708. Answer to Notice of Charges 

(a) If the respondent determines to answer a notice of charges, the respondent shall file 

its answer within twenty (20) days after being served with such notice, or within such other 

reasonable time period as may be determined by the Chief Compliance Officer. 

(b) To answer a notice of charges, the respondent must in writing: 

(1) specify the allegations that the respondent denies or admits; 

(2) specify the allegations that the respondent does not have sufficient 

information to either deny or admit; 

(3) specify any specific facts that contradict the notice of charges; 

(4) specify any affirmative defenses to the notice of charges; 

(5) sign and serve the answer on the Chief Compliance Officer; and 

(6) if applicable, request a hearing before a Hearing Panel. 

(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 and a waiver of any right to a 

hearing before a Hearing Panel and to appeal any sanction that may be imposed. 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 allegation or those allegations. Any allegation in a notice of charges that the 
 

Information Classification: General 

62 

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). 

(d) If a respondent admits or fails to specifically deny any of the allegations in the 

notice of charges, the Hearing Panel shall find that the violations set forth in such allegations have 

been committed and shall impose a sanction for such violations. The Hearing Panel shall promptly 

notify the respondent in writing of any sanction imposed pursuant to this Rule 708 and advise the 

respondent that the respondent may request, in writing, a hearing on such sanction within twenty 

(20) days of respondent being served with such notice. Any failure by the respondent to timely 

request a hearing with respect to a notice of sanctions will be deemed to be an acceptance of the 

sanctions in such notice and a waiver of any right to appeal such sanctions. 

Rule 709. Settlements 

(a) A respondent or potential respondent may at any time propose in writing an offer 

of settlement related to anticipated or instituted Disciplinary Proceedings. All offers of settlement 

shall be submitted to the Chief Compliance Officer. 

(b) 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 Company over it and over the subject matter of the 

proceedings, consent to the entry of the findings and sanctions imposed and waive its right to 

notice, opportunity for a hearing and any and all right to review and appeal under Applicable Law. 

(c) If a respondent or potential respondent submits an offer of settlement in accordance 

with paragraph (a) above, the Chief Compliance Officer will forward the offer, together with his 

or her recommendation on whether to accept or reject the offer, to the Disciplinary Panel. The 

respondent or potential respondent may withdraw such offer of settlement at any time before 

acceptance by the Disciplinary Panel, but may not withdraw such offer at any time after acceptance 

by the Disciplinary Panel. 

(d) If an offer of settlement is accepted by the Disciplinary Panel, it shall issue a written 

decision specifying: 

(1) the Rule violations it has reason to believe were committed, including the 

basis or reasons for its conclusions; 

(2) any sanction to be imposed, which must include full customer restitution 

where customer harm is demonstrated; and 

(3) if applicable, that the respondent has accepted the sanctions imposed 

without either admitting or denying the Rule violations. 

(e) In the event that the Disciplinary Panel accepts an offer of settlement without the 

agreement of the Market Regulation Department, the decision must adequately support such 

acceptance. Upon issuance of the written decision in accordance with paragraph (d), the 
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63 

respondent’s submission of the offer will be deemed to constitute a waiver of any right to notice, 

the opportunity for a hearing and review and appeal under the Rules. 

(f) If the offer of settlement of a respondent or potential respondent is not accepted by 

the Disciplinary Panel or for any other reason fails to become final, 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 that is made available to a subsequent Disciplinary Panel or Appeal Panel but may be 

retained by the Company in its records. Neither a respondent or potential respondent nor the 

Market Regulation Department may use an unaccepted offer of settlement in any manner at a 

hearing of, or appeal from, Disciplinary Proceedings. 

Rule 710. Disciplinary Panel 

(a) A Review Panel, if established pursuant to Rule 705(a), is responsible for reviewing 

a completed Investigation Report and for determining whether a reasonable basis exists for finding 

a violation of the Rules and authorizing the issuance of a notice of charges. A Hearing Panel shall 

conduct hearings in connection with any Disciplinary Proceedings (except for summary 

impositions of fines pursuant to Rule 716), to make findings, render decisions, and impose 

sanctions pursuant to this Chapter 7. 

(b) A Disciplinary Panel for a Disciplinary Proceeding other than a Summary 

Proceeding shall be composed of three (3) individuals that have been appointed by the Chief 

Compliance Officer. To the greatest extent practicable, the members shall be from diverse industry 

participant groups so that no group or class of industry participants dominates or exercises a 

disproportionate influence on the Disciplinary Panel and shall include sufficient different 

membership interests so as to ensure fairness and prevent special treatment or preference for any 

Person in the conduct of the Disciplinary Panel’s responsibilities. No employee of the Company 

may serve on a Disciplinary Panel. Subject to paragraphs (c) and (d), the appointment of a member 

of a Disciplinary Panel will not expire until the relevant Disciplinary Proceedings are completed. 

(c) If an individual selected is an Interested Person or if a member of a Disciplinary 

Panel later becomes an Interested Person, a replacement for such individual shall be selected by 

the Chief Compliance Officer. Except as may otherwise be provided in the Rules, the Board may 

at any time remove any member of a Disciplinary Panel for cause. 

(d) Within ten (10) days of being notified of the appointment of a Disciplinary Panel, 

a respondent may seek to disqualify any individual named to the Disciplinary Panel for the reasons 

identified in Rule 206 by serving written notice on the Chief Compliance Officer. 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 Chair of the Regulatory Oversight Committee will 

decide the merits of any request for disqualification within his or her sole discretion. Any such 

decision shall be final and not subject to appeal. 

(e) All information, records, materials and documents provided to a Disciplinary Panel 

and all deliberations, testimony, information, records, materials and documents related thereto 

shall be treated as non-public and confidential and shall not be disclosed, except as necessary to 

further a Company investigation, respond to a request from the CFTC or as otherwise required by 
 

Information Classification: General 

64 

law. No individual shall serve on a Disciplinary Panel unless that individual has agreed in writing 

that he or she will not publish, divulge, or make known in any manner facts or information 

regarding the business of any Person or other information which may come to his attention in his 

official capacity as a member of the Disciplinary Panel, except when reporting to the Board or to 

a Committee concerned with such information or to the Market Regulation Department, when 

requested by the CFTC or other Government Agency, or when compelled to testify in any judicial 

or administrative proceeding. 

Rule 711. Respondent’s Review of Evidence 

(a) Prior to the commencement of a hearing, each respondent will be given the 

opportunity, subject to paragraphs (b) and (c), to review all books, records, documents, papers, 

transcripts of testimony and other tangible evidence in the possession or under the control of the 

Company that the Market Regulation Department will use to support the allegations and proposed 

sanctions in the notice of charges or which the chair of the Hearing Panel otherwise deems relevant 

to the Disciplinary Proceedings. Unless determined otherwise by the chair of the Hearing Panel, 

all such requests for access to information must be made not less than ten (10) days prior to the 

scheduled hearing date. Notwithstanding the foregoing, a respondent shall not have the right to 

review, and the Company shall have no obligation to disclose, information that (i) is protected by 

attorney-client privilege or attorney work product; (ii) was prepared by an employee of the 

Company but will not be offered in evidence in the Disciplinary Proceedings; (iii) may disclose a 

technique or guideline used in examinations, investigations or enforcement proceedings; or (iv) 

discloses the identity of a confidential source. 

(b) The Market Regulation Department may redact, edit or code data and information 

before furnishing it to the respondent if books, records, documents, papers, transcripts of testimony 

or other tangible evidence that would otherwise be required to be provided to a respondent contain 

data or information that could adversely affect the competitive position of the Person providing 

such data or information or if such data or information might compromise other investigations 

being conducted by the Market Regulation Department. For purposes of this Rule 711, data and 

information that could adversely affect a Person’s competitive position include positions in 

Contracts, trading strategies, the identity of any Participant, Authorized Trader, Authorized User 

or Customer and the finances of the Person providing the information. Notwithstanding the 

foregoing, the Market Regulation Department shall not redact, edit or code competitive or 

investigative data or information contained in documents in a manner that materially impairs the 

respondent’s ability to defend against the allegations or proposed sanctions in the notices of 

charges and shall provide the respondent with reasonable access to the information and portions 

of the documents that the Market Regulation Department intends to rely on to support the 

allegations or proposed sanctions in the notice of charges. 

(c) The respondent shall treat as confidential all data and information provided to it 

pursuant to this Rule 711, and shall not disclose any such data or information, except as necessary 

to the respondent’s defense of notice of charges and any appeal of the decision of the Hearing 

Panel. 
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65 

Rule 712. Hearings 

(a) All Disciplinary Proceedings (except for summary impositions of fines pursuant to 

Rule 716) will be conducted at a hearing before a Hearing Panel, such hearing shall be fair and 

shall be convened promptly after reasonable notice to each respondent. Parties to a Disciplinary 

Proceeding shall include each respondent and the Market Regulation Department. 

(b) At a hearing conducted in connection with any Disciplinary Proceeding, the Market 

Regulation Department will present its case supporting the allegations and proposed sanctions in 

the notice of charges to the Hearing Panel. If a respondent has timely filed an answer to the notice 

of charges in accordance with Rule 708, the respondent shall be entitled to attend and participate 

in the hearing. All hearings will be conducted privately and confidentially. 

(c) At a hearing conducted in connection with Disciplinary Proceedings, the Market 

Regulation Department and each respondent entitled to participate in such hearing may: 

(1) present evidence and facts determined relevant and admissible by the chair 

of the Hearing Panel; 

(2) call and examine witnesses; and 

(3) cross-examine witnesses called by other parties. 

(d) 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 

chair of the Hearing Panel may limit evidence concerning any allegations not expressly denied in 

determining the sanctions to impose. If, in such a case, the respondent appears at the hearing, the 

respondent may not participate in the hearing with respect to such allegations that the respondent 

failed to properly deny (unless such hearing is a hearing conducted pursuant to Rule 708(d)) by 

calling or cross-examining witnesses, testifying in defense, presenting evidence concerning the 

notice of charges or otherwise, unless the respondent’s failure to properly deny the allegations was 

solely the result of respondent’s failure to timely file an answer and the Hearing Panel determines 

that the respondent had a compelling reason for failing to timely file an answer. If the Hearing 

Panel determines that the respondent had a compelling reason for failing to timely file an answer, 

the Hearing Panel shall adjourn the hearing and direct the respondent to promptly file a written 

answer in accordance with Rule 708. 

(e) Any Person entitled, or required or called upon, to attend a hearing before a Hearing 

Panel pursuant to paragraph (c) above shall be given reasonable notice, confirmed in writing, 

specifying the date, time and place of the hearing. All Participants, Authorized Traders and 

Authorized Users who are called as witnesses are required to appear at the hearing and, where 

applicable, produce evidence. The Company shall make reasonable efforts to secure the presence 

of other Persons called as witnesses whose testimony would be relevant (as determined by the 

chair of the Hearing Panel). A Hearing Panel may appoint an expert to attend any hearing and 

assist in deliberations if such expert is made subject to appropriate confidentiality requirements. 
 

Information Classification: General 

66 

(f) The Company will arrange for any hearing conducted in connection with 

Disciplinary Proceedings to be recorded verbatim, or substantially verbatim, in a manner capable 

of accurate transcription and a copy of such recording shall become part of the record of the 

applicable Disciplinary Proceeding. If the respondent requests a copy of all or portions of the 

record, the chair of the Hearing Panel may require the respondent to pay the costs of preparing 

such transcript. Additionally, the Company will prepare a transcript of the hearing (i) if a transcript 

of the hearing is requested by CFTC staff, (ii) the decision of the Hearing Panel or an Appeal Panel 

is reviewed by the CFTC pursuant to section 8c of the CEA or part 9 of the CFTC Regulations or 

(iii) pursuant to Rule 715(e). 

(g) The chair of the Hearing Panel may continue, adjourn or otherwise conduct the 

hearing as he or she may deem appropriate. The chair of the Hearing Panel will determine all 

procedural and evidentiary matters, including the admissibility and relevance of any evidence 

proffered. In determining procedural and evidentiary matters, the chair of the Hearing Panel may 

be counseled by the Company’s legal advisors and shall not be bound by evidentiary or procedural 

rules of law. Once admitted during the hearing, the Hearing Panel may consider, and attach the 

weight it believes appropriate to, evidence or other materials. 

(h) Except for procedural and evidentiary matters decided by the chair of the Hearing 

Panel pursuant to paragraph (g) and Rule 711, unless each respondent otherwise consents, the 

entire Hearing Panel must be present in person during the entire hearing and must be present, in 

person or by telephone, during any related deliberations. 

(i) The Hearing Panel may summarily impose sanctions on any Person subject to the 

Company’s jurisdiction who impedes, delays or substantially disrupts the progress of a hearing. 

Rule 713. Decision of Hearing Panel 

(a) As promptly as reasonable following a hearing, the Hearing Panel will issue a 

written 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 Hearing Panel will constitute the 

decision of the Hearing Panel. 

(b) The Company will provide a copy of the order of the Hearing Panel to the 

respondent and the Market Regulation Department. The order will include: 

(1) the notice of charges or summary of the allegations; 

(2) the answer, if any, or a summary of the answer filed by the respondent; 

(3) a brief summary of the evidence introduced at the hearing or, where 

appropriate, incorporation by reference of the Investigation Report; 

(4) findings of fact and conclusions concerning each allegation, including a 

complete explanation of the evidentiary and other basis for such findings and conclusions 

with respect to each allegation; 
Information Classification: General 

67 

(5) each specific Rule that the respondent is found to have violated; and 

(6) the imposition of sanctions, if any, pursuant to Rule 714, including the basis 

for such sanctions and the effective date of each sanction. 

(c) A Hearing Panel shall be dissolved automatically when it has decided the matter 

for which it was appointed and has notified the respondent and the Chief Compliance Officer in 

writing of its decision. 

(d) Unless a timely notice of appeal is filed pursuant to Rule 715, the order of the 

Hearing Panel will become final upon the expiration of twenty (20) days after the order is served 

on the respondent and the Market Regulation Department. 

Rule 714. Sanctions 

(a) In the event that a respondent is found in accordance with this Chapter 7 to have 

violated or to have attempted to violate a Rule or if sanctions are imposed pursuant to an accepted 

settlement offer, the Hearing Panel shall impose such sanctions as it deems appropriate, 

commensurate with the violations committed and sufficient to deter recidivism or similar 

violations by other Persons subject to the Company’s jurisdiction. Any such sanctions shall take 

into account the respondent’s disciplinary history (if any) and, in the event of demonstrated 

customer harm, shall include full customer restitution, except where the amount of restitution or 

to whom such restitution should be provided cannot be reasonably determined. 

(b) The Company may impose one or more of the following sanctions or remedies: 

(1) a warning letter, provided that no more than one (1) warning letter may be 

issued to the same respondent found to have committed the same rule violation within a 

rolling twelve (12) month period; 

(2) censure; 

(3) limitation, restriction or qualification of Trading Privileges, ability to 

otherwise access the Trading System, and/or other activities, functions or operations; 

(4) suspension, for a period not to exceed twelve (12) months, of Trading 

Privileges and/or ability to otherwise access the Trading System; 

(5) termination of Trading Privileges and/or ability to otherwise access the 

Trading System; 

(6) expulsion; 

(7) a fine; 

(8) restitution or disgorgement; or 

(9) any other sanction or remedy deemed to be appropriate. 
 

Information Classification: General 

68 

(c) The Company may impose a fine of up to $100,000 for each violation of a Rule. A 

Participant will be responsible for paying any fine or other amount imposed on, but not paid by, 

any of its Authorized Traders or Authorized Users. 

(d) A Hearing Panel may order a respondent to pay some or all of the costs associated 

with the Disciplinary Proceedings, including costs that the Hearing Panel believes were 

unnecessarily caused by the respondent. Costs may include costs associated with the inquiry or 

investigation, the prosecution by the Market Regulation Department or Regulatory Services 

Provider, legal and professional assistance, the conduct of the hearing, and administrative and 

other expenses incurred by the Hearing Panel. 

Rule 715. Appeal from Hearing Panel Decisions and Summary Actions 

(Other than Summary Impositions of Fines) 

(a) In the event that a respondent is found, pursuant to Rule 713, to have violated or to 

have attempted to violate a Rule: 

(1) such respondent may appeal the decision within twenty (20) days of 

receiving the order of the Hearing Panel by filing a written notice of appeal with the Chief 

Compliance Officer; 

(2) the Market Regulation Department may appeal all or any part of a decision 

of the Hearing Panel, including any sanctions that may or may not have been imposed by 

the Hearing Panel, within twenty (20) days of receiving the order of the Hearing Panel 

by filing a notice of appeal with the Chief Compliance Officer; and/or 

(3) the Appeal Panel may, on its own initiative, order a review of any aspect of 

a decision by the Hearing Panel within twenty (20) days of the order of the Hearing Panel 

by filing a notice of appeal with the Chief Compliance Officer. 

(b) While an appeal is pending, the effect of the order of the Hearing Panel (including 

any sanctions, remedies or costs imposed thereby) shall be suspended, except with respect to any 

denial or limit on Trading Privileges or ability to otherwise access the Company’s Trading System 

(c) 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. A respondent may 

appeal the order of the Hearing Panel on the grounds that: 

(1) the order was arbitrary, capricious, an abuse of discretion or not in 

accordance with the Rules; or 

(2) the order exceeded the authority or jurisdiction of the Hearing Panel, the 

Chief Compliance Officer or the Company. 

(d) The Company will forward copies of any notice of appeal received by it to all 

parties to the hearing before the Hearing Panel except the appellant. On or before the twentieth 
Information Classification: General 

69 

(20th) day after filing a notice of appeal, the appellant must file with the Chief Compliance Officer 

and serve on all other parties a brief supporting the notice of appeal and documents supporting the 

brief. On or before the twentieth (20th) day after the date on which the appellant serves supporting 

brief, the appellee must file and serve its brief in opposition with the Market Regulation 

Department. On or before the tenth (10th) day after the date on which the appellee serves its brief 

in opposition, the appellant must file and serve a brief in reply with the Market Regulation 

Department. 

(e) In connection with any appeal, the Company will furnish to the Chief Compliance 

Officer 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. 

(f) An Appeal Panel shall be composed of three (3) individuals that have been 

appointed by the Chief Compliance Officer. To the greatest extent practicable, the members shall 

be from diverse industry participant groups so that no group or class of industry participants 

dominates or exercises a disproportionate influence on the Appeal Panel. No individual shall be 

selected to serve on the Appeal Panel for any Disciplinary Proceeding if such individual has served 

on the Hearing Panel for such Disciplinary Proceeding. 

(g) If an individual selected is an Interested Person or if a member of the Appeal Panel 

later becomes an Interested Person, a replacement for such individual shall be selected by the Chief 

Compliance Officer. Except as may be otherwise provided in the Rules, the Board may at any 

time remove any member of an Appeal Panel for cause. 

(h) All information, records, materials and documents provided to the Appeal Panel 

and all deliberations, testimony, information, records, materials and documents related thereto 

shall be treated as non-public and confidential and shall not be disclosed, except as necessary to 

further a Company investigation or as otherwise required by law. No individual shall serve on an 

Appeal Panel unless that individual has agreed in writing that he or she will not publish, divulge, 

or make known in any manner facts or information regarding the business of any Person or other 

information which may come to his attention in his official capacity as a member of the Appeal 

Panel, except when reporting to the Board or to a Committee concerned with such information or 

to the Market Regulation Department, when requested by the CFTC or other Government Agency, 

or when compelled to testify in any judicial or administrative proceeding. 

(i) Within ten (10) days of being notified of the appointment of the Appeal Panel, 

either party may seek to disqualify any individual named to the Appeal Panel for the reasons 

identified in Rule 206 by serving written notice on the Chief Compliance Officer. By not timely 

filing a request for disqualification, the parties will be deemed to have waived any objection to the 

composition of an Appeal Panel. The Chair of the Regulatory Oversight Committee will decide 

the merits of any request for disqualification within his or her sole discretion. Any such decision 

shall be final and not subject to appeal. 

(j) The Appeal Panel may hold a hearing to allow parties to present oral arguments. 

Any hearing will be conducted privately and confidentially. Notwithstanding the confidentiality 

of hearings, the Appeal Panel may appoint an expert to attend any hearing and assist in the 

deliberations if such individuals agree to be subject to appropriate confidentiality agreements. In 
 

Information Classification: General 

70 

determining procedural and evidentiary matters, the Appeal Panel will not be bound by evidentiary 

or procedural rules or law. 

(k) Except for procedural and evidentiary matters decided by the Appeal Panel 

pursuant to paragraph (j), unless such appellant otherwise consents, the entire Appeal Panel must 

be present in person during the entire appeal hearing and must be present, in person or by 

telephone, during any related deliberations. 

(l) The Appeal Panel will only consider on appeal the record before the Hearing Panel, 

the notice of appeal, the briefs filed in support and opposition of the appeal, and any oral arguments 

of the parties. The Appeal Panel may only consider new evidence when the Appeals Panel 

determines that good cause exists as to why the evidence was not introduced during the 

Disciplinary Proceeding. 

(m) After completing its review, the Appeal Panel may affirm, modify or reverse any 

order of the Hearing Panel 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, remanding the matter to the same or a different Hearing Panel for further Disciplinary 

Proceedings, or ordering a new hearing. 

(n) As promptly as reasonably possible following its review, the Appeal Panel will 

issue a written decision based on the weight of the evidence before the Appeal Panel. The decision 

of the Appeal Panel shall meet the same informational requirements as set forth in Rule 713(b). 

(o) The Appeal Panel’s written order will be the final action of the Company and will 

not be subject to appeal within the Company. 

Rule 716. Summary Imposition of Fines 

(a) The Chief Compliance Officer may summarily fine a Participant, Authorized 

Trader or Authorized User for failing to make timely and accurate submissions to the Company of 

notices, reports or other information required by the Rules or to keep books and records required 

by the Rules. 

(b) The Market Regulation Department, acting on behalf of the Chief Compliance 

Officer, will give notice of any fine imposed pursuant to this Rule 716 to each Participant, 

Authorized Trader or Authorized User subject thereto. The notice will specify the violations of 

the Rules for which the fine is being imposed and the amount of the fine. The Participant, 

Authorized Trader or Authorized User, as the case may be, shall pay or cause the payment of the 

fine within twenty (20) days of the date of notice. 

(c) The Company shall establish, and from time to time revise, schedules of fines to be 

imposed pursuant to this Rule 716. Such schedules of fines shall provide for progressively larger 

fines for recurring violations, with the maximum fine not to exceed $5,000. Summary imposition 

of fines pursuant to this Rule 716 will not preclude the Company from bringing any other action 

against the Participant, Authorized Trader or Authorized User, as the case may be. 
Information Classification: General 

71 

(d) Appeals of the summary imposition of fines imposed pursuant to this Rule 716 shall 

be heard by the Appeal Panel. The appellant shall be advised of its right to a prompt hearing before 

the Appeal Panel and its right to be represented, at its own cost, by legal counsel or any other 

representative at such hearing. The appellant may present evidence in support of its appeal. The 

Appeal Panel’s decision shall be final. The Appeal Panel shall not set aside, modify or amend the 

summary fines imposed unless the Appeal Panel determines by a majority vote that the decision 

to impose the fine was either: 

(1) arbitrary, capricious, or an abuse of the Chief Compliance Officer’s 

discretion; or

(2) in excess of the Chief Compliance Officer’s authority or jurisdiction.

Rule 717. Summary Suspensions and Other Summary Actions 

(a) Notwithstanding anything in the Rules to the contrary, the Chief Compliance 

Officer may, after consultation with the Regulatory Oversight Committee if practicable, summarily 

suspend, revoke, limit, condition, restrict or qualify a Participant’s Trading Privileges and/or a 

Participant’s or any other Person’s ability to otherwise access the Trading System, and may take 

other summary action against any Person subject to the Company’s jurisdiction in accordance with 

the Rules (including any imposition of a fine under Rule 716) if the Chief Compliance Officer 

reasonably believes that immediate action is necessary to protect the best interests of the public or 

the Company. 

(b) Where practicable, the Company shall provide prior written notice to the party 

against whom action in accordance with paragraph (a) is to be taken. If prior notice is not 

practicable, the Company will give notice at the earliest possible opportunity. Any such notice 

shall describe the action taken or to be taken by the Company, the reasons therefor, the effective 

date, time and duration thereof, and advise the recipient of the notice of its right to a prompt hearing 

before a Hearing Panel and its right to be represented by legal counsel or other representative at 

such hearing. A request by a Participant or other person for such a hearing shall not delay the 

effectiveness of the summary action. 

(c) At the request of the Company, a respondent against whom a summary action is 

brought pursuant to this Rule 717 shall provide books and records over which the respondent has 

access or control and shall furnish information to, or appear or testify before, the Market 

Regulation Department and a Disciplinary Panel in connection with the enforcement of any Rule. 

(d) If a hearing is requested pursuant to paragraph (b), the Hearing Panel will promptly 

convene a hearing to be conducted in accordance with Rule 712. 

(e) As promptly as reasonably possible after the hearing, the Hearing Panel will issue 

to the respondent a written order based on the weight of the evidence affirming, modifying, or 

reversing the summary action. The order will include a description of the summary action taken, 

a summary of the evidence introduced at the hearing, a statement of findings of fact and 

conclusions, a description of any action taken or to be taken by the Company, and the effective 

date, time and duration thereof. 
 

Information Classification: General 

72 

Rule 718. Rights and Responsibilities After Suspension or Termination 

(a) With respect to any Person whose Trading Privileges and/or ability to otherwise 

access the Trading System (whether directly or indirectly) have been suspended, none of its rights 

(including the right to hold oneself out to the public as a Participant, Authorized Trader or 

Authorized User, enter Orders and Indications of Interest into the Trading System and originate or 

respond to Requests for Quotes) will apply during the period of the suspension, except for the right 

of such Person to assert a claim as provided in Chapter 8. Any suspension of any Person’s Trading 

Privileges and/or ability to otherwise access the Trading System will not relieve such Person of 

its, his or her obligations under the Rules to perform any obligation incurred prior to the 

suspension, or for any Company fees, costs, or charges incurred during the suspension. The 

Company may discipline a suspended Person under this Chapter 7 for any violation of a Rule 

committed by such Person before, during or after the suspension. 

(b) When a Person’s Trading Privileges and/or ability to otherwise access the Trading 

System are terminated, all of its, his or her related rights will terminate, except for the right of such 

Person to assert a claim as provided in Chapter 8. 

(c) A Person whose Trading Privilege and/or ability to otherwise access the Trading 

System is suspended or terminated remains subject to the Rules and the jurisdiction of the 

Company for acts and omissions prior to the suspension or termination, and must cooperate in any 

Disciplinary Proceeding or appeal of Disciplinary Proceedings as if the suspended or terminated 

Participant, Authorized Trader or Authorized User still had Trading Privileges or ability to 

otherwise access the Trading System. 

Rule 719. Notice of Disciplinary Proceedings 

The Company will provide written notice of final decisions in Disciplinary Proceedings to 

the parties to the Disciplinary Proceeding consistent with applicable CFTC Regulations and the 

Rules. Whenever the Company suspends, expels, fines or otherwise disciplines or denies any 

Person access to the Trading System, the Company will make any public disclosures required by 

CFTC Regulations. 

Rule 720. Regulatory Services Provider 

(a) Any of the functions of the Company under Chapter 4 and Chapter 5 or this Chapter 

7 may be performed by a Regulatory Service Provider pursuant to a delegation of such functions 

by the Company to such Regulatory Services Provider, and references to the Market Regulation 

Department shall in such circumstances be deemed to be references to such Regulatory Service 

Provider. The Company may provide information regarding any Person that is subject to the 

Company’s jurisdiction to the Regulatory Services Provider in connection with the performance 

by the Regulatory Services Provider of those functions. A failure to comply with a request or 

direction from the Regulatory Services Provider shall be deemed to be a failure to comply with a 

request or direction from the Market Regulation Department. 
Information Classification: General 

73 

(b) The Company shall retain exclusive authority over all substantive decisions made 

by the Regulatory Service Provider (including decisions involving the cancellation of trades, the 

issuance of disciplinary charges, suspensions or terminations of Trading Privileges and/or ability 

to otherwise access the Trading System) and will document instances where its actions differ in 

any material respect from those recommended by the Regulatory Service Provider. 

(c) The Company shall retain ultimate decision-making authority with respect to any 

functions that are performed by a Regulatory Services Provider, including the reasons for the 

course of action recommended by the Regulatory Services Provider and the reasons why the 

Company chose a different course of action. 
 

Information Classification: General 

74 

CHAPTER 8. ARBITRATION RULES 

Rule 801. General 

(a) Any Person subject to the Company’s jurisdiction shall arbitrate through NFA’s 

arbitration program all disputes, controversies or claims between or among themselves that relate 

to or arise out of any Contract or otherwise arise out of one or more transactions made or alleged 

to have been made on the Trading System or subject to the Rules and that are based upon facts and 

circumstances that occurred at a time when the parties were subject to the Company’s jurisdiction. 

(b) Notwithstanding the foregoing, this Chapter 8 does not apply to disputes between 

any Persons subject to the Company’s jurisdiction that: (i) such Persons are required by the rules 

of a Self-Regulatory Organization to submit to the dispute resolution procedures of that SelfRegulatory Organization; or (ii) that such Persons have, by valid and binding agreement, 

committed to negotiate or litigate in a forum other than NFA. 

(c) Notwithstanding the foregoing, this Chapter 8 does not require arbitration of claims 

alleging employment discrimination (including sexual harassment) in violation of Applicable Law. 

Rule 802. Forum and Arbitration Rules 

NFA will conduct arbitrations described in this Chapter 8 pursuant to NFA’s Member 

Arbitration Rules, as if each party to such arbitration was an “NFA Member,” and references in 

the Member Arbitration Rules to an “Associate” of an “NFA Member” shall mean and include an 

Authorized User. 

Rule 803. Initiating an Arbitration Claim 

(a) Any Person subject to the Company’s jurisdiction may initiate an arbitration claim 

by submitting the required documents and fees to the NFA. 

(b) Any Person submitting an arbitration claim shall provide written notice of such 

claim to the Company. 

Rule 804. Claims Relating to Trade Cancellations or Price Adjustments 

All claims relating to trade cancellations or price adjustments pursuant to Rule 526 shall 

be arbitrated in accordance with this Chapter 8. 

Rule 805. Penalties 

(a) Any failure by any Person subject to the Company’s jurisdiction to arbitrate a 

dispute subject to this Chapter 8, or the commencement by such a Person of a suit in any court 

prior to arbitrating a case subject to this Chapter 8, shall constitute a violation of these Rules and 

shall subject such Person to Disciplinary Proceedings pursuant to Chapter 7. Any Person subject 

to the Company’s jurisdiction that does not arbitrate a dispute through the NFA’s arbitration 
Information Classification: General 

75 

program as provided in Rule 801(b) or Rule 801(c) shall not be deemed to have violated these 

Rules. 

(b) The Company may summarily suspend, pursuant to Rule 717, any Person subject 

to the Company’s jurisdiction that fails to timely satisfy an arbitration award rendered in any 

arbitration conducted pursuant to this Chapter 8. 
 

Information Classification: General 

76 

CHAPTER 9. MISCELLANEOUS 

Rule 901. Contract Specifications 

(a) Notwithstanding any provision of these Rules, the Contract Specification with 

respect to a particular Contract shall govern the applicability of the Rules to trading in such 

Contract and, in the event of any conflict between the Rules and the Contract Specification with 

respect to trading in such Contract, the Contract Specification shall govern. 

(b) The Contract Specification for each individual Contract may specify: (i) whether 

such Contract may be settled via cash settlement, physical delivery of the underlying commodity, 

or by any other means, as applicable; (ii) the method for determining settlement prices; and (iii) 

such other terms as are determined by the Company to be relevant. 

(c) The Contract Specifications for each Contract are set forth in Chapter 11 to these 

Rules and are published by the Company on its website. 

Rule 902. Legal Certainty 

A transaction entered into on the Trading System or pursuant to the Rules and Company 

Requirements shall not be void, voidable, subject to rescission or otherwise invalidated or rendered 

unenforceable as a result of either: (1) any violation by the Company of any of the provisions of 

section 5h of the CEA or Part 37 of the CFTC Regulations; (2) any CFTC proceeding to alter or 

supplement a rule, term or condition under section 8a(7) of the CEA or to declare an emergency 

under section 8a(9) of the CEA; or (3) any other proceeding the effect of which is to: (i) alter or 

supplement a specific term or condition or trading rule or procedure, (ii) require a swap execution 

facility to adopt a specific term or condition, trading rule or procedure, or to take or refrain from 

taking any specific action. 

Rule 903. Trading by Company Officials Prohibited; Misuse of Material, 

Non-Public Information 

(a) No Company Official may trade, directly or indirectly any Contract or any 

commodity interest related thereto. 

(b) No member of the Board, member of any Committee, Disciplinary Panel Member 

or Appeal Panel Member (each, a “Covered Person”) and no Company Official may trade, directly 

or indirectly any Contract, any swap traded on another swap execution facility or other market, or 

any commodity interest related thereto where such Covered Person or Company Official has access 

to material non-public information concerning such Contract or commodity interest that was 

obtained as a result of the individual’s duties and responsibilities as a Covered Person or Company 

Official, as applicable. Participation by a Company Official in a retirement plan sponsored by the 

Company shall not be deemed to constitute trading directly or indirectly in a Contract or 

commodity interest, notwithstanding such plan’s trading of swaps or commodity interests. 
Information Classification: General 

77 

(c) The Chief Compliance Officer (or, in the case of the Chief Compliance Officer, the 

Board) may grant exemptions from the provisions of paragraph (a) to Company Officials on a 

case-by-case basis under circumstances that are not contrary to the purposes of this Rule and CFTC 

Regulation 1.59. Such circumstances may include, but are not necessarily limited to: 

(1) participation in pooled investment vehicles where such Company Official 

has no direct or indirect control over transactions effected by or for the account of the 

pool; 

(2) service by such Company Official as an executor or administrator of an 

estate; 

(3) service by such Company Official in any other fiduciary capacity, such as 

an officer of a charitable organization, in which such Company Official receives no 

pecuniary benefit from the trading of Contracts or other commodity interests; and 

(4) such other circumstances as the Chief Compliance Officer (or, in the case 

of the Chief Compliance Officer, the Board) may determine. 

(d) Any Company Official that has received an exemption under paragraph (c) must: 

(1) furnish to the Company (or, in the case of the Chief Compliance Officer, to 

the Board) account statements and other documents relevant to the trading activities that 

are so exempted; and 

(2) inform the Chief Compliance Officer (or, in the case of the Chief 

Compliance Officer, the Board) within one business day of any material change of 

information that may affect such Company Official’s qualification for such exemption. 

(e) Covered Persons and Company Officials are prohibited from using or disclosing 

for any purpose other than the performance of their official duties and responsibilities material 

non-public information obtained as a result of their employment, agency relationship or 

engagement with the Company where the Covered Person or Company Official expected or should 

have reasonably expected that the information disclosed may assist a Person in trading any 

Contract, any swap traded on another swap execution facility or other market, or any commodity 

interest related thereto. Notwithstanding the foregoing, Covered Persons and Company Officials 

may disclose material, non-public information if required by law or a court order. 

(f) Terms used in this Rule 903 and not otherwise defined in the Rules shall have the 

meaning set forth in CFTC Regulations 1.3 and 1.59. 

Rule 904. Proprietary Information; Use of Market Data 

(a) By accessing or otherwise using the Trading System, each Participant, Authorized 

Trader, Authorized User, ISV, Customer or other Person subject to the Company’s jurisdiction 

hereby acknowledges and agrees that the Company owns and shall retain all right, title and interest 

in and to the Trading System, all components thereof, including all related applications, all 
 

Information Classification: General 

78 

application programming interfaces, user interface designs, software and source code and any and 

all intellectual property rights therein, including all registered or unregistered, as applicable (i) 

copyright, (ii) trade mark, (iii) service mark, (iv) trade secret, (v) trade name, (vi) data or database 

rights, (vii) design rights, (viii) moral rights, (ix) inventions, whether or not capable or protection 

by patent or registration, (x) rights in commercial information or technical information, including 

know-how, research and development data and manufacturing methods, (xi) patent, and (xii) other 

intellectual property and ownership rights, including applications for the grant of any of the same, 

in or to the Trading System and all other related proprietary rights of the Company and/or any of 

its affiliates (together, with any and all enhancements, corrections, bug fixes, updates and other 

modifications to any of the foregoing and any and all data or information of any kind transmitted 

by means of any of the foregoing, including the Market Data, “Proprietary Information”). Each 

Participant, Authorized Trader, Authorized User, ISV, Customer and other Person subject to the 

Company’s jurisdiction further acknowledges and agrees that the Proprietary Information is the 

exclusive, valuable and confidential property of the Company. Each Participant, Authorized 

Trader, Authorized User, ISV, Customer and other Person subject to the Company’s jurisdiction 

acknowledges and agrees that it shall not and shall not permit other Persons affiliated it to, reverse 

engineer, copy, bug fix, correct, update, transfer, reproduce, republish, broadcast, create derivative 

works based on or otherwise modify, in any manner, all or any part of the Trading System or the 

Proprietary Information. Each Participant, Authorized Trader, Authorized User, ISV, Customer 

and other Person subject to the Company’s jurisdiction further agrees to keep, and to cause each of 

its employees and agents to keep, Proprietary Information confidential and not to transfer, lease, 

loan, sell or distribute, directly or indirectly, all or any portion of the Trading System or any 

Proprietary Information except as may be expressly permitted in writing by the Company. 

(b) Each Participant and each Authorized Trader retains such rights as it may enjoy 

under Applicable Law with respect to Market Data solely in the form such Market Data was 

submitted to the Trading System by such Participant or Authorized Trader or their respective 

Authorized Users. Subject to the foregoing, the Company shall own all rights, title and interest, 

database rights and trade secret rights in and to all Market Data. Participants and Authorized 

Traders shall not, and shall cause their Customers not to, distribute, sell or retransmit Market Data 

or other information obtained via the Trading System, provided that any such restrictions shall not 

apply to Participant’s own data (and the data of its Authorized Traders and Customers). The 

Company may make Market Data and other information it may deem appropriate available to 

Participants and other Persons at such times and in such manner (whether through the Trading 

System, a ticker, financial information services or otherwise) as it may consider necessary or 

advisable from time to time; provided that, except as may otherwise be permitted by any written 

agreement between the Company and a Participant or Authorized Trader and, in the case of the 

following clause (ii), as may otherwise be permitted by Rule 905, the Company shall not (i) use 

Market Data to compete directly with, as applicable, the Participant, Authorized Trader or the 

Customer (but only if Market Data submitted to the Trading System identifies such Customer), or 

(ii) attribute Market Data to a Participant, Authorized Trader or Customer. Each Participant or 

other Person receiving any such information through the Trading System operated by the Company 

may redistribute such information only to such extent and in such manner as may be permitted by 

the Company from time to time. 
Information Classification: General 

79 

(c) Notwithstanding any other provision of this Rule 904, each Person subject to the 

jurisdiction of the Company hereby grants the Company a non-exclusive, perpetual, freely 

transferable, world-wide and royalty-free license to use, distribute, sub-license and disclose Market 

Data in any manner, media and jurisdiction as may be necessary for the operation of the Trading 

System or as may be required by CFTC Regulations. 

(d) The Company shall not use for business or marketing purposes any proprietary data 

or personal information it collects or receives, from or on behalf of any Person, for the purpose of 

fulfilling its regulatory obligations; provided, however, that the Company may use such data or 

information for business or marketing purposes if the Person from whom it collects or receives such 

data or information clearly consents in writing to the Company’s use of such data or information in 

such manner. The Company shall not condition access to its market(s) or market services on a 

Person’s consent to the Company’s use of proprietary data or personal information for business or 

marketing purposes. 

(e) Each Person subject to the jurisdiction of the Company acknowledges and agrees 

that the Company may disclose and disseminate swap transaction and pricing data relating to 

Contracts executed on the Trading System or reported to the Company in accordance with Chapter 

6 (in a manner designed to prevent attribution to or identification of such data with the applicable 

Participant, Authorized Trader or Customer) to other Persons with access to the Trading System

simultaneous with or subsequent to the Company’s transmittal of such data to a Swap Data 

Repository. 

(f) Each Participant and Authorized Trader represents and warrants that, to the extent 

it provides personal information to SwapEx the use and/or transfer of which is subject to regulation 

under the laws and/or regulations of the jurisdiction(s) from which such Participant or Authorized 

Trader or its Authorized Users, or if applicable, such Participant’s DMA Customers, are accessing 

SwapEx (whether directly or indirectly), it has obtained any and all consents and disseminated any 

and all disclosures, in each case as required under such laws and regulations, in order to provide 

SwapEx with such information. 

Rule 905. Confidentiality 

Except as provided in Rule 904, all non-public information provided to the Company by a 

Participant, Authorized Trader or Authorized User shall be held in confidence and shall not be 

made known to any other Person except as follows: 

(a) with the consent of the Participant, Authorized Trader or Authorized User 

providing such information; 

(b) to a Government Agency or the regulatory authority of any foreign jurisdiction, if 

the Company is requested or legally required to do so by such Government Agency or regulatory 

authority; 

(c) pursuant to legal process; 
 

Information Classification: General 

80 

(d) to a Derivatives Clearing Organization of which such Participant is a member or in 

connection with the clearing of a Contract; 

(e) to a Swap Data Repository or other registered entity (as such term is defined in 

CFTC Regulations); 

(f) subject to appropriate confidentiality requirements, to any Person providing 

services to the Company, including the Regulatory Services Provider; 

(g) with respect to Market Data, in accordance with Rule 904(c); 

(h) pursuant to an information-sharing agreement or other arrangement or procedures 

in accordance with Rule 907; and 

(i) subject to appropriate confidentiality requirements, to the Board, any Committee, 

Company Officials, attorneys and auditors, and to agents and independent contractors that have 

been engaged by the Company who require such information in connection with the discharge of 

their duties to the Company; and 

(j) as otherwise permitted under the Rules. 

Rule 906. Recording of Communications 

The Company and/or the Regulatory Services Provider may record conversations and 

retain copies of electronic communications between Company Officials and Participants, 

Authorized Traders, Authorized Users and Clearing Firms. Any such recordings may be retained 

by the Company and/or the Regulatory Services Provider in such manner and for such periods of 

time as the Company may deem necessary or appropriate, including as may be required by 

Applicable Law, but the Company assumes no obligation to Participants, Authorized Traders, 

Authorized Users or Clearing Firms to retain any such recordings. The Company and/or the 

Regulatory Services Provider may disclose such recordings as required by Applicable Law or 

regulation or upon the request of any Government Agency. This Rule 906 shall be deemed to 

constitute the consent of each Participant, Authorized Trader, Authorized User and Clearing Firm 

to such recording and a waiver of any tone or other notice requirement in the State or country of 

such Person’s residence, place of organization or place of business. 

Rule 907. Information-Sharing Agreements 

(a) The Company may enter into information-sharing agreements or other 

arrangements or procedures to coordinate surveillance with other markets. As part of any such 

information-sharing agreements or other arrangements or procedures adopted pursuant to this 

Rule, the Company may: 

(1) provide market surveillance reports to other markets; 
Information Classification: General 

81 

(2) share information and documents concerning current and former 

Participants, Authorized Traders and Authorized Users with other markets; 

(3) share information and documents concerning ongoing and completed 

Disciplinary Proceedings with other markets; and/or 

(4) require Participants and Authorized Traders to provide information and 

documents to the Company at the request of other markets with which the Company has 

an information-sharing agreement or other arrangements or procedures. 

(b) The Company may enter into any information-sharing agreement or arrangement 

with any Person or body (including the NFA, any Self-Regulatory Organization, any exchange, 

market, clearing organization, foreign regulatory authority, data repository or third-party reporting 

service) if the Company considers such information-sharing agreement or arrangement to be in 

furtherance of the Company’s purpose or duties under the Rules or any law or regulation applicable 

to the Company’s operation of swap execution facility. The Company will carry out such 

international information-sharing agreements as may be required by the CFTC. 

(c) The Company will not disclose any non-public information of any Participant, 

Authorized Trader, Authorized User or Customer pursuant to any information-sharing agreement 

or arrangement entered into in accordance with Rule 907(a) and (b) without a corresponding 

confidentiality agreement, unless the Person requesting the information is a Government Agency 

or the regulatory authority of any foreign jurisdiction or such disclosure is otherwise required by 

Applicable Law. 

Rule 908. Force Majeure 

Notwithstanding any other provision of the Rules, any delay in or failure by the Company 

to perform its obligations under the Rules or any agreement with a Participant (including exhibits 

and schedules thereto) will not be considered a breach and will be excused to the extent that such 

delay or failure is caused by any event beyond the reasonable control of the Company, including, 

without limitation, acts of God, acts of civil or military authorities, strikes or other labor disputes, 

fire or other natural disasters, interruption in telecommunications or internet or network provider 

services, acts or omission of a third party hardware or software supplier or a third party 

communications provider, power outages and governmental restrictions. 

Rule 909. Extension or Waiver of Rules 

The Company may, in its sole discretion, waive, or extend the time period for performing, 

any act or acts designated by the Rules, but only to the extent such waiver or extension is not 

inconsistent with the CEA or CFTC Regulations. 

Rule 910. Effect of Amendment, Repeal or New Rule 

(a) The Company may, in compliance with the CEA and CFTC Regulations, amend or 

repeal any Rule and/or adopt new Rules. The Company shall, in accordance with Rule 308 and to 

the extent required by CFTC Regulations, provide Participants with notice of any amendment or 
 

Information Classification: General 

82 

repeal of any Rule or adoption of any new Rule prior to such amendment, repeal or adoption 

becoming effective. 

(b) Except as provided in Rule 910(c), any such amendment or repeal of a Rule or 

adoption of a new Rule, shall, as of the effective date of such amendment, repeal or adoption, as 

applicable, be binding on all Persons subject to the jurisdiction of the Company and all Contracts. 

(c) If an amendment or repeal of a Rule or adoption of a new Rule materially changes 

the terms or conditions of a Contract or affects the value of open Contracts, then the amendment 

or repeal of a Rule or adoption of a new Rule will be binding only on Contracts entered into on or 

after the effective date of such amendment, repeal or adoption, unless otherwise specifically 

approved by the Board or required by the CFTC. 

Rule 911. Signatures 

Rather than rely on an original signature, the Company may elect to rely on a signature that 

is transmitted, recorded or stored by any electronic, optical, or similar means (including telecopy, 

imaging, photocopying, electronic mail, electronic data interchange, telegram or telex) as if it were 

(and the signature shall be considered and have the same effect as) a valid and binding original. 

Rule 912. Governing Law; Legal Proceedings 

(a) The Rules, and the rights and obligations of the Company, Participants, Authorized 

Traders and Authorized Users under the Rules, shall be governed by, and construed in accordance 

with, the laws of the State of New York applicable to contracts executed and performed wholly 

within the State of New York, without regard to any provisions of New York law that would apply 

the substantive law of a different jurisdiction. 

(b) Subject to Rule 527, any action, suit or proceeding against the Company, its 

officers, directors, limited liability company members, employees, agents, or any member of any 

Committee must be brought with in one (1) year from the time that a cause of action has accrued. 

Any such action, suit or proceeding shall be brought in the State or Federal courts located within 

Borough of Manhattan in the City of New York. Each Participant and Authorized Trader expressly 

consents, for itself and its Authorized Users, to the jurisdiction of any such court, waives any 

objection to venue therein, and waives any right it may have to a trial by jury. 

Rule 913. Emergencies 

(a) During an Emergency, the Board may implement temporary emergency procedures 

and rules (“Emergency Rules”), subject to applicable provisions of the CEA and CFTC 

Regulations (including Core Principle 8 and Part 40). If the Chief Executive Officer (or, in the 

event that the Chief Executive Officer is unavailable, the Chairman) determines that Emergency 

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

reasonably be convened, the Chief Executive Officer (or, if applicable, the Chairman) shall have 

the authority, without Board action, to implement Emergency Rules with respect to such 

Emergency as he or she deems necessary or appropriate to respond to such Emergency. The 
Information Classification: General 

83 

Company may take such other action as may be directed by the CFTC in response to an 

Emergency. 

(b) Emergency Rules may require or authorize the Company, the Board, any 

Committee, the Chief Executive Officer (or, if the Chief Executive Officer is unavailable, the 

Chairman) or any other Officer to take actions necessary or appropriate to respond to the 

Emergency, including: 

(1) suspending or curtailing trading or limiting trading to liquidation only (in 

whole or in part); 

(2) extending, limiting or changing expiration dates or Trading Hours for one 

or more Contracts; 

(3) in coordination with applicable Derivatives Clearing Organizations, 

ordering the liquidation or transfer of Contracts or the reduction of positions; 

(4) ordering the fixing of a settlement price (which, for Cleared Contracts shall 

be done in coordination with applicable Derivatives Clearing Organizations); 

(5) temporarily modifying or suspending any provision of the Rules; 

(6) in coordination with applicable Derivatives Clearing Organizations, 

requiring additional Margin to be collected from Customers; 

(7) imposing or modifying price limits, position limits or intraday market 

restrictions; 

(8) in coordination with applicable Derivatives Clearing Organizations, 

transferring Customer contracts and related Margin and/or altering any Contract’s 

settlement terms or conditions; and/or 

(9) providing for the carrying out of any actions under this Rule 913(b) by the 

Regulatory Services Provider. 

(c) The Company will use reasonable efforts to notify the CFTC prior to implementing, 

modifying or terminating an Emergency Rule. If such prior notification is not practicable, the 

Company will notify the CFTC as soon as reasonably practicable, but in all circumstances within 

twenty-four (24) hours of the implementation, modification or termination of such Emergency 

Rule. 

(d) Whenever the Company takes action to respond to an Emergency it will, where 

practicable, ensure that prompt notice is given to Participants. 

(e) When the Company determines that the Emergency has been reduced sufficiently 

to allow the Company to resume normal functioning, any such actions will be modified or 

terminated, as appropriate. 
 

Information Classification: General 

84 

(f) Upon taking any action in response to an Emergency, the Company shall document 

the decisions and deliberations related to such action. Such documentation will be maintained for 

at least five (5) years following the date on which the Emergency ceases to exist or to affect the 

Company, and all such documentation will be provided to the CFTC upon request. 

Rule 914. Indemnification 

The Company will indemnify, defend and hold harmless each Participant from and against 

Direct Losses to the extent arising out of any claim, action or allegation brought against such 

Participant under the laws of the United States of America by any third party that the use of the 

Trading System by such Participant violates the copyright, patent or other intellectual property 

rights of such third party, provided, however, that such Participant (a) gives prompt written notice 

to the Company of any such claims, actions or allegations against it, (b) allows the Company to 

take control of the defense and settlement thereof at the sole expense of the Company and (c) does 

not agree to any settlement without the prior written consent of the Company. The obligation of 

the Company to provide the foregoing indemnity will not apply to the extent that (i) any software 

or hardware supplied to such Participant in respect of the Trading System is modified by persons 

or entities other than the Company and the alleged violation relates, directly or indirectly, to such 

modification, (ii) any such software or hardware is combined with other products, processes or 

materials not supplied or recommended in writing by the Company and such alleged violation 

would not have arisen but for such combination, (iii) any such software or hardware is modified 

by the Company in compliance with the directions of such Participant and the alleged violation 

relates to such modification, (iv) such Participant continues to use such software or hardware after 

the Company has made available a non-infringing alternative to such Participant or (v) the Direct 

Losses arise as a result of the fraud or willful misconduct of such Participant or any of its 

Authorized Traders or any of its Authorized Users or a breach of the terms of the Participant 

Agreement or the Rules by such Participant, any of its Authorized Traders or its Authorized Users. 
Information Classification: General 

85 

CHAPTER 10. CLEARING 

Rule 1001. Clearing Firm Requirements 

Except as otherwise provided in Rule 1005, a Clearing Firm that seeks to effect transactions 

on the Trading System for its own account or the account of any other Person must be a Participant. 

Rule 1002. Submission of Contracts to Derivatives Clearing Organization 

Contracts executed on or through the Trading System that are required to be cleared under 

Section 2(h) of the CEA or that are eligible for clearing at a Derivatives Clearing Organization and 

that are intended by the counterparties to such Contract to be submitted to a Derivatives Clearing 

Organization for clearing contemporaneously with execution on the Trading System (“Cleared 

Contracts”) shall be submitted for clearing through a Derivatives Clearing Organization. The 

Company shall submit Cleared Contracts entered into on or pursuant to the Rules to a Derivatives 

Clearing Organization on behalf of the parties to such Cleared Contracts. 

Rule 1003. Clearing Firm Representation 

Each Participant that is not a Clearing Firm must ensure and, upon request from the 

Company, provide evidence satisfactory to the Company that a Clearing Firm has, subject to such 

Clearing Firm’s credit limits and/or risk controls, guaranteed to the relevant Derivatives Clearing 

Organization the transactions in Cleared Contracts executed for the account(s) of the Participant, 

its Authorized Trader(s) and/or its or their Customer(s), as applicable. 

Rule 1004. Responsibility of Participants and Authorized Traders 

Participants and Authorized Traders must, if requested, assist their respective Clearing 

Firms and the relevant Derivatives Clearing Organization in the clearing of its transactions in 

Cleared Contracts. 

Rule 1005. Rules of the Derivatives Clearing Organization 

The clearing services provided by the Derivatives Clearing Organization with respect to 

any Contract, and the rights and obligations of purchasers and sellers under Cleared Contracts 

(including rights and obligations in respect of clearing and settlement, variation payments and 

performance at maturity), will be governed by the rules of the Derivatives Clearing Organization. 
 

Information Classification: General 

86 

CHAPTER 11. CONTRACT SPECIFICATIONS 

Rule 1101. Non-Deliverable Foreign Exchange Forwards (USD Settlement 

Currency) (Uncleared) 

Contract Structure Notional amounts down to single currency units traded 

against deliverable counter currencies for a custom or 

standard maturity using a default or custom fixing date. 

Trading Hours From 5:00 p.m. ET on Sunday to 5:00 p.m. ET on 

Friday. At 5:00 p.m. ET each day, the Company rolls 

the trade date to the next Business Day. 

Reference Currency (i.e., Non-deliverable 

currency) 

ARS – Argentine Peso 

BRL – Brazilian Real 

CLP – Chilean Peso 

CNY – Chinese Renminbi 

COP – Colombian Peso 

IDR – Indonesian Rupiah 

INR – Indian Rupee 

KRW – South Korean Won 

MYR – Malaysian Ringgit 

PEN – Peruvian Nuevo Sol 

PHP – Philippine Peso 

RUB – Russian Ruble 

TWD – Taiwan Dollar 

Settlement Currency USD 

Underlying Swap Tenor The duration of time from the Effective Date to the 

Fixing Date. Subject to specific end date defined by 

user or the Company 

Forward Rate Currency exchange rate expressed as the amount of 

Reference Currency per unit of Settlement Currency. 

Rate negotiated at the time of execution 

Contract Size Minimum Contract size is $1. 

Effective Date The date on which the parties enter into the Contract. 

Maturity / Valuation Date The date specified in the Contract when the trade will 

be cash settled; it needs to be later than Effective Date. 
Information Classification: General 

87 

Fixing Dates The date at which the difference between the prevailing 

market exchange rate and the agreed upon exchange 

rate is calculated. 

The Fixing Date is defined by the counterparties at the 

time of entering into the Contract; it needs to be earlier 

than Maturity / Valuation Date. 

Last Trading Day for Defined (Fixed) 

Tenors 

The last day on which the Contract can be traded is the 

New York business day preceding the Maturity Date 

Settlement Procedure Bilateral settlement performed in settlement currency 

Quoting Convention A currency pair is the quotation of the relative value of 

a currency unit against the unit of another currency in 

the foreign exchange market. The Company follows 

market convention with regards to quoting, but allows 

users the flexibility with regards to whether the quantity 

traded is expressed in base or terms notional. Foreign 

exchange non-deliverable forwards can be quoted up to 

6 decimal places. 

In addition to the above, for a Non-Deliverable Foreign Exchange Forward (USD Settlement 

Currency) (Uncleared) Contract, all of the template terms of the Relevant EMTA Template in the 

currency pair that is the subject of such Contract shall apply to such Contract. For the avoidance 

of doubt, if the Relevant EMTA template becomes effective after the Effective Date of a Contract, 

such Relevant EMTA Template shall not apply to or amend the terms of such Contract. 
 

Information Classification: General 

88 

Rule 1102. Cross-Rate Non-Deliverable Foreign Exchange Forwards 

(Uncleared) 

Contract Structure Notional amounts down to single currency units traded 

against counter currencies for a custom or standard 

maturity using a standard or custom fixing date. 

Trading Hours From 5:00 p.m. ET on Sunday to 5:00 p.m. ET on 

Friday. At 5:00 p.m. ET each day, the Company rolls 

the trade date to the next Business Day. 

Reference Currency (i.e., Non-deliverable 

currency) 

ARS – Argentine Peso 

BRL – Brazilian Real 

CLP – Chilean Peso 

CNY – Chinese Renminbi 

COP – Colombian Peso 

IDR – Indonesian Rupiah 

INR – Indian Rupee 

KRW – South Korean Won 

MYR – Malaysian Ringgit 

PEN – Peruvian Nuevo Sol 

PHP – Philippine Peso 

RUB – Russian Ruble 

TWD – Taiwan Dollar 

Settlement Currency AUD – Australian Dollar 

CAD – Canadian Dollar 

EUR – Euro 

GBP – British Pound 

JPY – Japanese Yen 

Underlying Swap Tenor The duration of time from the Effective Date to the 

Fixing Date. Subject to specific end date defined by 

user or the Company. 

Forward Rate Currency exchange rate expressed as the amount of 

Reference Currency per unit of Settlement Currency. 

Rate negotiated at the time of execution. 

Contract Size Minimum Contract size is 1 unit of settlement currency 

unit. 

Effective Date The date on which the parties enter into the Contract. 

Maturity / Valuation Date The date specified in the Contract when the trade will 

be cash settled; it needs to be greater than Effective 

Date.
Information Classification: General 

89 

Fixing Dates The date at which the difference between the prevailing 

market exchange rate and the agreed upon exchange 

rate is calculated. 

The Fixing Date is defined by the counterparties at the 

time of entering into the Contract; it needs to be earlier 

than Maturity / Valuation Date. 

Last Trading Day for Defined (Fixed) 

Tenors 

The last day on which the Contract can be traded is the 

New York business day preceding the Maturity Date 

Settlement Procedure Bilateral settlement performed in settlement currency 

Quoting Convention A currency pair is the quotation of the relative value of 

a currency unit against the unit of another currency in 

the foreign exchange market the Company follows 

market convention with regards to quoting, but allows 

users the flexibility with regards to whether the quantity 

traded is expressed in base or terms notional. Foreign 

exchange non-deliverable forwards can be quoted up to 

6 decimal places. 

For the Cross-Rate Non-Deliverable Foreign Exchange Forwards (uncleared), the cash settlement 

price will be derived from a combination of (1) the Spot Rate identified in the relevant EMTA 

Template for a foreign exchange non-deliverable forward comprised of the applicable Reference 

Currency assuming USD as Settlement Currency (the “Non-Deliverable Component Pair”) and (2) 

the WM/Reuters 4pm Closing Spot Rate for the applicable Settlement Currency against USD. 

Therefore, in addition to the above, for a Cross-Rate Non-Deliverable Foreign Exchange Forward 

(Uncleared) Contract, all of the template terms of the Relevant EMTA Template in the currency 

pair that represents the Non-Deliverable Component Pair of a particular Contract shall apply to 

such Contract. For the avoidance of doubt, if the Relevant EMTA template becomes effective after 

the Effective Date of a Contract, such Relevant EMTA Template shall not apply to or amend the 

terms of such Contract. 

The WM/Reuters benchmark Closing Spot Rates are administered by Thomson Reuters Benchmark 

Services Ltd. which uses data from independent third parties to calculate and validate its benchmark 

rates. Currenex, Inc., is an affiliate of the Company that offers a foreign exchange trading platform for 

the trading of instruments that are not regulated as swaps under the Commodity Exchange Act, as 

amended, and currently serves as a secondary source of data for validation purposes on three currency 

pairs: USD/CHF, EUR/USD and USD/JPY. 
 

Information Classification: General 

90 

Rule 1103. Synthetic Non-Deliverable Foreign Exchange Forwards 

(Uncleared) 

Contract Structure Notional amounts down to single currency units traded 

against counter currencies for a custom or standard 

maturity using a standard or custom fixing date. 

Trading Hours From 5:00 p.m. ET on Sunday to 5:00 p.m. ET on 

Friday. At 5:00 p.m. ET each day, the Company rolls 

the trade date to the next Business Day. 

Reference Currency (i.e., Non-deliverable 

currency) 

AUD – Australian Dollar 

CAD – Canadian Dollar 

CHF – Swiss Franc 

CZK – Czech Republic Koruna 

DKK – Danish Krone 

EUR - Euro 

GBP – British Pound Sterling 

HKD – Hong Kong Dollar 

JPY – Japanese Yen 

MXN – Mexican Peso 

NOK – Norwegian Krone 

NZD – New Zealand Dollar 

SEK – Swedish Krona 

SGD – Singapore Dollar 

THB – Thai Baht 

TRY – Turkish Lira 

ZAR – South African Rand 

Settlement Currency 

USD – US Dollar 

Underlying Swap Tenor The duration of time from the Effective Date to the 

Fixing Date. Subject to specific end date defined by 

user or the Company. 

Forward Rate Currency exchange rate expressed as the amount of 

Reference Currency per unit of Settlement Currency. 

Rate negotiated at the time of execution. 

Contract Size Minimum Contract size is 1 unit of settlement currency 

unit. 

Effective Date The date on which the parties enter into the Contract. 
Information Classification: General 

91 

Maturity / Valuation Date The date specified in the Contract when the trade will 

be cash settled; it needs to be greater than Effective 

Date. 

Fixing Dates The date at which the difference between the prevailing 

market exchange rate and the agreed upon exchange 

rate is calculated. 

The Fixing Date is defined by the counterparties at the 

time of entering into the Contract; it needs to be earlier 

than Maturity / Valuation Date. 

Fixing Source WM/Reuters 4pm Closing Spot Rate for the applicable 

Reference Currency against 

 USD for AUD, CAD, EUR, GBP, HKD, JPY, 

MXN, NZD, SGD, THB, TRY and ZAR 

 USD derived from the EUR closing spot rate 

for CHF, CZK, DKK, NOK, SEK and the 

EURUSD closing spot rate

Last Trading Day for Defined (Fixed) 

Tenors 

The last day on which the Contract can be traded is the 

New York business day preceding the Maturity Date 

Settlement Procedure Bilateral settlement performed in settlement currency 

Quoting Convention A currency pair is the quotation of the relative value of 

a currency unit against the unit of another currency in 

the foreign exchange market. The Company follows 

market convention with regards to quoting, but allows 

users the flexibility with regards to whether the quantity 

traded is expressed in base or terms notional. Foreign 

exchange non-deliverable forwards can be quoted up to 

6 decimal places. 

The WM/Reuters benchmark Closing Spot Rates are administered by Thomson Reuters Benchmark 

Services Ltd. which uses data from independent third parties to calculate and validate its benchmark 

rates. Currenex, Inc is an affiliate of the Company that offers a foreign exchange trading platform 

for the trading of instruments that are not regulated as swaps under the Commodity Exchange Act, 

as amended, and currently serves as a secondary source of data for validation purposes on three 

currency pairs: USD/CHF, EUR/USD and USD/JPY. 
 

Information Classification: General 

92 

Rule 1104. LCH Clearnet Limited Cleared Non-Deliverable Foreign 

Exchange Forwards*

Contract Structure Notional amounts down to single currency units traded 

against deliverable counter currencies for a custom or 

standard maturity using a default or custom fixing date. 

Trading Hours From 5:00 p.m. ET on Sunday to 5:00 p.m. ET on 

Friday. At 5:00 p.m. ET each day, the Company rolls 

the trade date to the next Business Day. 

Reference Currency (i.e., Non-deliverable 

currency) 

BRL – Brazilian Real 

CLP – Chilean Peso 

CNY – Chinese Renminbi 

COP – Colombian Peso 

IDR – Indonesian Rupiah 

INR – Indian Rupee 

KRW – South Korean Won 

MYR – Malaysian Ringgit 

PEN – Peruvian Nuevo Sol 

PHP – Philippine Peso 

RUB – Russian Ruble 

TWD – Taiwan Dollar 

Settlement Currency USD 

Underlying Swap Tenor The duration of time from the Effective Date to the 

Fixing Date. Subject to specific end date defined by 

user within the requirements set by LCH Clearnet 

Limited. 

Forward Rate Currency exchange rate expressed as the amount of 

Reference Currency per unit of Settlement Currency. 

Rate negotiated at the time of execution 

Contract Size Minimum Contract size is $1. 

Effective Date The date on which the parties enter into the Contract. 

Maturity / Valuation Date The date specified in the Contract when the trade will 

be cash settled; it needs to be later than Effective Date 

within the requirements set by LCH Clearnet Limited. 
Information Classification: General 

93 

Fixing Dates The date at which the difference between the prevailing 

market exchange rate and the agreed upon exchange 

rate is calculated. 

The Fixing Date is defined by the counterparties at the 

time of entering into the Contract; it needs to be earlier 

than Maturity / Valuation Date. 

Last Trading Day for Defined (Fixed) 

Tenors 

The last day on which the Contract can be traded is the 

New York business day preceding the Maturity Date 

Settlement Procedure Centrally cleared by LCH Clearnet Limited. 

Quoting Convention A currency pair is the quotation of the relative value of 

a currency unit against the unit of another currency in 

the foreign exchange market. The Company follows 

market convention with regards to quoting, but allows 

users flexibility with regards to whether the quantity 

traded is expressed in base or terms notional. Foreign 

exchange non-deliverable forwards can be quoted up to 

6 decimal places. 

Derivatives Clearing Organization LCH Clearnet Limited 

*The terms and conditions of the swap also include the product eligibility criteria, as established 

by LCH Clearnet Limited in its rules or bylaws, which are incorporated by reference herein as 

terms and conditions of the swap.