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(b) a Financially Settled Futures Transaction as the Floating Price Payer under that
Transaction;

ARTICLE 3 - GENERAL

3.2. Agreements of the Contracting Party

n. Fees — The Contracting Party will pay the fees to Exchange in such amounts as are set
forth in the Fee Schedule or as otherwise agreed to by the Contracting Party with
Exchange, and as required by any cerrect-Invoice.

ARTICLE 4 - PHYSICALLY SETTLED FUTURES TRANSACTIONS AND PHYSICALLY
SETTLED FUTURES PRODUCTS

44 Physically Settled Gas Futures Products - General

h. Settlement and-Netting-of Invoice Amounts — All amounts payable by a Contracting Party
under any Physically Settled Gas Futures Transaction are due and are payable and are
to be settled pursuant to Article 7 and the terms of this Agreement. tn dolornining ene

I wire transfer fi

Contracting Party-On the Physical “Settlement Date, Exchange will not remit any amounts
payable from Exchange to the Contracting Party until all amounts payable from the
Contracting Party to Exchange have been received by Exchange.

ICE NGX Canada Inc.

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(iii) with respect to a Contracting Party that does not transact in either Option Products
or Financial Power Products or Physical Power Products, $500,000.

“Previous Month Accounts Net Payable” means, for a Contracting Party,
(i) in respect of Physically Settled Futures Transactions, the accounts payable owing

by Exchange to such Contracting Party less the accounts receivable owing by such
Contracting Party to Exchange for

gas delivered or taken to date during the previous calendar month pursuant
to all Physically Settled Gas Futures Transactions: and—Mhysical

(B) _the Physical Power scheduled for delivery or take during the previous
calendar _month pursuant _to_all_Physically Settled Power Futures
Transactions;

“Variation Margin” means, in respect of every Product for each trading day, the mark-to-
market gains or losses of a portfolio of trades resulting from price movements areasonable

estimate of the market value-of such Product-as determined by Exchange, in its sole
discretion; idering—th bl i f§_thi + g

2. Jnitial Determination of Margin and Margin Rates

a. Initial Margin Rate — Exchange may determine the Initial Margin Rate applicable to each
Product, from time-to-time, and such Initial Margin Rates will be determined at the sole
discretion of Exchange.

b. Variation Margin — In determining Variation Margin, Exchange will consider the reasonable
estimation of the current market value using internal and external sources for each
Product. Upon request or dispute by a Contracting Party, Exchange will investigate and
determine, in its sole discretion, whether Variation Margin should be recalculated and will
advise the Contracting Party of its determination as soon as reasonably practicable.

ICE NGX Canada Inc.

Suite 2610, 225 — 6 Avenue SW
Calgary, AB

Canada T2P 1N2

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APPENDIX
AMENDMENTS TO THE ICE NGX CONTRACTING PARTY AGREEMENT
TERMS AND CONDITIONS

[Note: Insertions are underscored; deletions are struck through.]

1.2

ICE NGX
Suite 261

ARTICLE 1 - INTERPRETATION

Definitions

“Buyer” means a Contracting Party or Exchange, as applicable, that has entered into

(a) a Physically Settled Futures Transaction and is obligated to take delivery of the
applicable Contract Quantity pursuant to the terms of that Transaction and this

Agreement; or

(b) a Financially Settled Futures Transaction as the Fixed Price Payer under that
Transaction,

“Failure Quantity’ means the difference between the Contract Quantity (or any portion
thereof) to be delivered or received in accordance with a Physically Settled Futures
Transaction and the quantity of the applicable commodity: gas actually delivered or taken,
in accordance with

such “Physically Settled Futures Transaction:

“Purchase Amount” means the aggregate price agreed to be paid for the Contract Quantity
by the Buyer and to be received by the Seller for

of gas-or Physical Power, as_ applicable,
the Contract Quantity of gas-or Physical Power,as-applicable—pursuant to a Physically

Settled Futures Transaction;

“Seller” means a Contracting Party or Exchange that has entered into
a) a Physically Settled Futures Transaction and is obligated to make delivery of the

applicable Contract Quantity pursuant to the terms of that Transaction and this
Agreement; or

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4.2——Reserved

4.3—Reserved

4.24.4

7.1

Physically Settled Power Futures Products - General

Settlement and-Netting-of Invoice Amounts — All amounts payable by a Contracting Party
under any Physically Settled Power Futures Transaction are due and are payable and are

payable-by the-Gontracting ~On the Physical Settlement Date, Exchange will not

remit any amounts payable ‘in Exchange to the Contracting Party until all amounts
payable from the Contracting Party to Exchange have been received by Exchange.

ARTICLE 7 - INVOICES AND TAXES
Invoices

Netting of Invoice Amounts — In determining the net amounts payable or receivable on

each Invoice by the Contracting Party, Exchange will Set-off the amounts payable or
receivable in the same currency on account of

(i) for_a Physical Settlement Invoice or a Physical Environmental Invoice, the
Purchase Amount of the relevant commodity, and

(ii) for a Financial Settlement Invoice, the Cash Settlement Amount, MTM Settlement
Amount and Daily Financially Settled Futures Settlement Amount, as applicable

and the fees and applicable taxes, if any, for the Contracting Party. The Contracting Party
will be obligated to pay or entitled to receive only such net amounts.

[Note: Subsequent paragraphs of section 7.1 will be renumbered to reflect the insertion shown

above.]

ICE NGX Canada Inc.

Suite 2610, 225 — 6" Avenue SW
Calgary, AB

Canada T2P 1N2

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June 21, 2023
VIA CFTC PORTAL

Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21st St., N.W.

Washington, D.C. 20581

Re: Amendment to ICE NGX Canada Inc. Rules - Submission Pursuant to Section
5c(c)(1) of the Commodity Exchange Act and CFTC Regulation § 40.6(a): Omnibus
Amendments

Dear Mr. Kirkpatrick:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended, (“Act”) and
Commodity Futures Trading Commission (“Commission”) Regulation 40.6(a), ICE NGX Canada
Inc. (“ICE NGX”) is submitting this self-certification relating to changes (the “Amendments’) to the
ICE NGX Contracting Party Agreement (“CPA”). The CPA functions as the rulebook for ICE NGX’s
exchange and clearinghouse operations and is a “rule” as that term is defined under Commission
Regulation 40.1(i).

1. Overview

The Amendments are intended to update certain definitions and concepts in the CPA to reflect
current practices and understanding, and to clarify and streamline the drafting of a number of CPA
provisions.

ICE NGxX intends to implement the Amendments on August 1, 2023 or on such later date as ICE
NGX may designate.

Note: All capitalized terms not otherwise defined herein have the meaning given to them in the
CPA.

2. Details of Rule Changes
The Amendments

¢ update and clarify the definitions of “Buyer”, “Seller”, “Failure Quantity’ and “Purchase
Amount’;

e clarify that a Contracting Party is required to pay the Fees as invoiced by ICE NGX;

ICE NGX Canada Inc.

Suite 2610, 225 — 6 Avenue SW
Calgary, AB

Canada T2P 1N2

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AMENDMENTS TO THE ICE NGX CONTRACTING PARTY AGREEMENT

SCHEDULE “C” - RISK MANAGEMENT POLICY

[Note: Insertions are underlined, deletions are struck through.]

1. Definitions

Words and phrases capitalized in this Risk Management Policy and not defined herein have the
same meaning as in this Agreement.

In this Schedule "C", the following terms and phrases mean as follows:

“Current Month Accounts Net Payable” means, for a Contracting Party, the sum of

(i)

(ii)

f Gontracting-Party-enteringinte-in respect of Physically Settled Gas-Futures
Transactions, the accounts payable owing by Exchange to such Contracting Party
less the accounts. receivable owing by such Contracting Party to Exchange for

(A) gas delivered or taken to date during that current month pursuant to all

Physically Settled Gas Futures Transactions, other than Physically Settled
Gas Futures Transactions with assigned delivery:-and/orPhysically Settled
Power Futures Transactions, as applicable, delivered to date during that
current month. including, with respect to Physically Setiled Gas Futures

B the Physical Power scheduled for delivery or take to date during that
current_month_pursuant_to_all_ Physically Settled Power Futures
Transactions; and

f Contracting Party entering inte-in respect of Physically Settled Gas Futures
Transactions with assigned delivery (as set out in Schedule “J”), up to 100% of the
Discretionary Delivery Credit, as applicable;

“Minimum Available Margin Requirement” means,

(i)
(ii)

with respect to a Contracting Party that transacts in Option Products, $2,000,000;

with respect to a Contracting Party that does not transact in Option Products, but
transacts in Financial Power Products and/or Physical Power Products,
$1,000,000;~oF

ICE NGX Canada Inc.
Suite 2610, 225 — 6" Avenue SW

Calgary, AB

Canada T2P 1N2

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¢ streamline the provisions relating to settlement of invoice amounts for Physically Settled
Gas Futures Transactions and Physically Settled Power Futures Transactions;

e consolidate the provisions relating to netting of invoice amounts for Physically Settled Gas
Futures Transactions and Physically Settled Power Futures Transactions; and

e refine the definitions of “Current Month Accounts Net Payable” and “Previous Month
Accounts Net Payable”.

The Amendments also clarify and streamline the definition of “Variation Margin” with the
corresponding definition in the ICE NGX Margin Methodology Guide and clarify that a
recalculation of Variation Margin in response to dispute or request from a Contracting Party is at
ICE NGX’s discretion.

3. Compliance with Core Principles

ICE NGX reviewed the Amendments and determined that they comply with the rules and
regulations of the Commission. In this regard, ICE NGX reviewed the derivatives clearing
organization (“DCO”) core principles (each a “Core Principle”) and determined that the
Amendments are potentially relevant to the following Core Principles and applicable regulations
of the Commission thereunder.

Compliance (Core Principle A): The Amendments are consistent with Core Principle A -
Compliance and Commission Regulation 39.10, as the Amendments clarify and enhance ICE
NGX’s policies and procedures for complying with Commission regulations and internal policies.

Risk Management (Core Principle D): The Amendments are consistent with Core Principle D -
Risk Management and Commission Regulations § 39.13(g) generally, as the Amendments clarify
the clearinghouse’s discretion over calculation and any recalculation of Variation Margin.

Settlement Procedures (Core Principle E): The Amendments are consistent with Core Principle E
- Settlement Procedures and Commission Regulation § 39.14 generally, as the Amendments
streamline certain provisions relating netting and invoice settlement processes.

4. Certifications

ICE NGX certifies that the proposed Amendments discussed in this submission comply with the
Commodity Exchange Act, including the Core Principles and the Regulations of the Commission
thereunder. ICE NGX is not aware of opposing views expressed regarding the Amendments. ICE

ICE NGX Canada Inc.

Suite 2610, 225 — 6" Avenue SW
Calgary, AB

Canada T2P 1N2

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NGxX further certifies that, concurrent with this filing, a copy of this submission was posted to ICE
NGX’s website.

Yours truly,
By: Greg Abbott

Title: President & COO
Date: June 21, 2023

ICE NGX Canada Inc.
Suite 2610, 225 — 6 Avenue SW
Calgary, AB

Canada T2P 1N2

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ice.com