1

July 20, 2023

VIA CFTC PORTAL

Mr. Christopher Kirkpatrick

Secretary of the Commission

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

Re: Amendments to the ICE Clear U.S., Inc. Rules - Submission Pursuant to Section 

5c(c)(1) of the Commodity Exchange Act and Commission Regulation 40.6(a)

- Rule 806(b) (Default of the Corporation) and Miscellaneous Minor Changes

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 Clear U.S., Inc. 

(“ICUS”) is submitting this self-certification to amend the ICUS Rules.

1

ICUS intends to revise its 

Rules no sooner than the tenth business day following the filing of this submission with the 

Commission, or such later date as ICUS may determine. 

1. Overview

ICUS Rule 806(b) specifies the “cure period” that must elapse before a failure by ICUS “to comply 

with an undisputed obligation to pay money or deliver property to a Clearing Member that is due 

and owing in connection with a transaction cleared by” ICUS can become a Corporation Default.

ICUS is proposing to reduce that “cure period” from thirty calendar days to 3 Business Days. In 

addition, ICUS is proposing additional, minor amendments to clean-up some redundant or 

vestigial references, harmonize defined terms and/or otherwise clarify existing provisions.

2. Details of Rule Changes

The proposal to reduce the “cure period”2 would align ICUS more closely with affiliated clearing 

houses. It also addresses feedback from ICUS Clearing Members following routine consultations 

through which ICUS solicits both general and subject matter specific input from Clearing Members 

and other market participants. The remaining proposed amendments to the ICUS Rules clean1 Capitalized terms used and not defined in this submission have the meaning set forth in the ICUS Rules.

2 The “cure period” commences on the date that the impacted Clearing Member provides notice to ICUS in 

accordance with the ICUS Rules. 
2

up some redundant or vestigial references, harmonize defined terms and/or clarify existing 

provisions, without effecting material changes. 

3. Compliance with the Act and Regulations

ICUS reviewed the foregoing amendments and determined that they comply with the 

requirements of the Act and the rules and regulations promulgated by the Commission in 

implementing the Act. In this regard, ICUS reviewed the derivatives clearing organizations core 

principles (“Core Principles”) and determined that the amendments are potentially relevant to the 

following Core Principles and the applicable regulations of the Commission thereunder:

Governance Fitness Standards (Principle O): The proposed amendment to ICUS Rule 806(b) 

supports the public interest considerations and legitimate interests of Clearing Members and 

customers of Clearing Members, as such it is consistent with the requirements of Core Principle 

O and Commission Regulation 39.24.

Legal Risk (Principle R): The remaining amendments to the ICUS Rules enhance their 

transparency, as such they are consistent with the requirements of Core Principle R and 

Commission Regulation 39.27.

4. Certifications

ICUS certifies that these proposed amendments to the ICUS Rules comply with the Act and the 

rules and regulations promulgated by the Commission thereunder. A copy of the amendments is 

attached to this submission in Exhibit A. ICUS is not aware of any substantive opposing views 

expressed regarding the amendments. ICUS further certifies that, concurrent with this filing, a 

copy of the submission was posted on ICUS’s website and may be accessed at 

https://www.theice.com/clear-us/regulation. 

If you or your staff have any questions or require further information regarding this submission, 

please do not hesitate to contact the undersigned at (212) 748-3964 or 

Eamonn.Hahessy@ice.com.

Sincerely,

Eamonn Hahessy

General Counsel and Chief Compliance Officer 
ICE Clear U.S., Inc. Rules

EXHIBIT A

 

ICE CLEAR U.S., INC.

RULES

TABLE OF CONTENTS

Part 1 General Provisions .......................................................................................................... 1

Part 2 Clearing Membership....................................................................................................... 9

Part 3 Guaranty Fund................................................................................................................21

Part 4 Clearing Mechanism.......................................................................................................31

Part 5 Margin, Premiums and Other Payments .........................................................................35

Part 6 Deliveries........................................................................................................................42

Part 7 Miscellaneous.................................................................................................................48

Part 8 Defaults ..........................................................................................................................54

Part 9 Disciplinary Proceedings ................................................................................................67

April 12July XX, 20222023 [DRAFT]
ICE Clear U.S., Inc. Rules

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Part 1

General Provisions

Rule 101. Definitions

Unless the context otherwise clearly requires, all terms defined in the By-Laws shall have the 

same meanings when used in these Rules, and in addition the following terms shall have the 

following meanings when used in these Rules:

Act

The Commodity Exchange Act, as in effect from time to time.

Approved Financial Institution

A bank, trust company or other institution designated as such by the Board pursuant to Rule 106.

Approved Foreign Currency

Any currency other than the U.S. dollar which is deliverable under any Contract or which is 

approved by the Board for any purpose under the By-Laws or these Rules.

Assessment Amount

The meaning set forth in Rule 302. 

Bakkt Warehouse 

The digital currency warehouse operated by Bakkt Trust Company LLC (or any successor thereto) 

in connection with the settlement of Digital Currency Contracts.

Bank Holiday

Any day when banks in the State of New York generally are closed, as determined by the 

Corporation.

Business Day

A day other than a Saturday, Sunday or a Bank Holiday.

By-Laws

The by-laws of the Corporation, and the interpretations, resolutions, orders and directives of the 

Board thereunder, as in effect from time to time.

Capital

“Net capital” computed in accordance with Commission Regulation 1.17, except that unsecured 

receivables from any bank organized under the laws of the United States or of any state shall be 

included as current assets, so long as such receivables are outstanding no longer than 30 

calendar days from the date they are accrued. For purposes of Rule 301 and Rule 302, the Capital 

of any Clearing Member shall be computed as of the date of either (a) the most recent financial 

reports provided by such Clearing Member to the Corporation in accordance with the By-Laws 

and these Rules, or (b) such Clearing Member's latest audited financial statements, whichever is 

as of the more recent date.
ICE Clear U.S., Inc. Rules

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Clearing Day

A day on which the Corporation is open to accept Contracts for clearance.

Contract

A futures contract, option or other contract or instrument for which the Corporation acts as a

clearing organization.

Contribution Return Date

The meaning specified in Rule 212(b)(vii).

Corporation Default

The meaning set forth in Rule 806(b).

Cross Margining Clearing Organization

A clearing organization that has entered into a cross-margining agreement with the Corporation.

Cross Margining Program

Any program established under a cross margining agreement between the Corporation and one 

or more Cross Margining Clearing Organizations pursuant to which Clearing Members receive 

Cross Margining treatment.

Customer

The meaning set forth in Commission Regulation 1.3, as in effect from time to time.

Default Auction

The meaning set forth in Rule 803. 

Default Auction Priority

The meaning set forth in Rule 302.

Default Auction Procedures

The meaning set forth in Rule 803.

Defaulted Obligation

The meaning set forth in Rule 302.

Defaulting Clearing Member

The meaning set forth in Rule 302.

Deliverer

The Clearing Member, whether acting for itself or for any other Person, that is the seller under 

any futures contract.
ICE Clear U.S., Inc. Rules

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Designated Enforcement Staff

The enforcement staff of the Exchange to which the Corporation has referred the investigation or 

settlement of, or the prosecution of disciplinary proceedings in connection with, any potential 

violation of the By-Laws and Rules, pursuant to Part 9 of these Rules.

Director

A member of the Board of Directors of the Corporation.

Digital Currency 

Any type of digital unit that is used as a medium of exchange or a form of digitally stored value 

(including digital units of exchange that (i) have a centralized repository or administrator, (ii) are 

decentralized and have no centralized repository or administrator, and/or (iii) may be created or 

obtained by computing or manufacturing effort). 

Digital Currency Contract 

A Contract that is a physically settled futures or option contract relating to a Digital Currency.

Emergency

The meaning set forth in Rule 708.

Event of Default

The meaning set forth in Rule 801.

Exchange member

A member of, and any person enjoying membership privileges on, an Exchange.

Exchange rules, rules of the Listing Exchange and rules of an Exchange 

The certificate of incorporation, by-laws, rules, regulations, resolutions, orders, directives and 

procedures of such Exchange, and any interpretations thereof duly adopted by such Exchange, 

as in effect from time to time.

Financial Emergency

With respect to any Clearing Member, any situation in which the financial or operational condition 

of such Clearing Member is not adequate for such Clearing Member to meet its obligations 

(including without limitation its obligations to comply with the By-Laws or these Rules) or to 

engage in business, or is such that it would not be in the best interests of the Corporation or the 

marketplace for such Clearing Member to continue in business.

Government Security

A security which is a direct obligation of the United States government.

Guarantor

The meaning set forth in Rule 202.

Guaranty Fund

The meaning set forth in Rule 301.
ICE Clear U.S., Inc. Rules

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Guaranty Fund Deposit Requirement 

The meaning set forth in Rule 301.

Listing Exchange

With respect to any Contract, the Exchange on or subject to the rules of which such Contract is 

traded.

Monetary Default

The meaning set forth in Rule 302.

Order for Relief

The filing of a petition in bankruptcy in a voluntary case and the adjudication of bankruptcy in an 

involuntary case.

Partial Tear-Up

The meaning set forth in Rule 808.

Partial Tear-Up Notice

The meaning set forth in Rule 808.

Partial Tear-Up Price

The meaning set forth in Rule 808.

Partial Tear-Up Time

The meaning set forth in Rule 808.

Physical Emergency

The meaning set forth in Rule 708. 

Post-RGD Payments

The meaning set forth in Rule 807.

Qualified Financial Institution

A bank, trust company or other institution with access to the Fedwire system operated by the US 

Federal Reserve Bank that a Clearing Member may designate to the Corporation from time to 

time for the purposes of transmitting funds to the Corporation.

Receiver

The Clearing Member, whether acting for itself or for any other Person, that is the buyer under 

any futures contract.

Remaining Defaulted Positions

The meaning set forth in Rule 808.
ICE Clear U.S., Inc. Rules

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Settlement Premium

The settlement premium for any option determined in accordance with Rule 502A.

Settlement Price

For any trading day for any Contract shall mean the settlement price thereof determined as 

follows: (i) on such trading day, the relevant Listing Exchange, at such time and in such manner 

as the Listing Exchange and the Corporation shall agree, shall notify the Corporation of the 

settlement price as determined by such Listing Exchange (the “Exchange Settlement Price”); 

(ii) the Corporation shall adopt the Exchange Settlement Price as the basis for determining the 

Settlement Price, except if clause (iii) applies; and (iii) if the Corporation determines that the 

Exchange Settlement Price is manifestly erroneous or is inconsistent with these Rules or the 

Rules of the Exchange, or otherwise determines that the Exchange Settlement Price does not 

reasonably reflect the value or price of the Contract, the Corporation shall determine fair market 

value or price of the Contract, which shall be the Settlement Price for such day, using its best 

efforts to consult with the Listing Exchange. 

Standard Contract 

A Contract other than a Digital Currency Contract.

Tear-Up Position

The meaning set forth in Rule 808.

Termination Price

The meaning set forth in Rule 806.

Withdrawal Deposit

The meaning set forth in Rule 212.

Withdrawing Clearing Member

A Clearing Member that has notified the Corporation pursuant to these Rules of its intention to 

terminate its status as a Clearing Member or who has been notified by the Corporation pursuant 

to the By-Laws or these Rules of termination of its status as a Clearing Member.

Rule 102. Extension or Waiver of Rules

(a) The time fixed by these Rules for the doing of any act or acts may be extended, or the 

doing of any act or acts required by these Rules may be waived, by the Board whenever, in its 

judgment, such extension or waiver is necessary or in the best interests of the Corporation.

(b) The time fixed by these Rules for filing any report or other document, for submitting any 

information or for making deposits or payments of initial margin, variation margin, premiums or 

other payments or making deliveries may be extended by the Board or the President whenever, 

in their respective judgment, such extension is necessary or in the best interests of the 

Corporation. A written report of any such extension granted by the President, stating the pertinent 

facts and the reason such extension was deemed necessary or expedient, shall be presented to 

the Board at its next regular meeting. Any such extension may continue in effect after the event 

or events giving rise thereto; provided, however, that the time fixed for making deposits or 

payments of initial margin, variation margin, premiums or other payments or making deliveries 

shall not be extended beyond three Business Days after the time such deposit or payment is due, 
ICE Clear U.S., Inc. Rules

EXHIBIT A

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and no other extension shall continue in effect for more than sixty calendar days, unless in either 

case it is approved by the Board within such period.

Rule 103. Action by the Corporation

(a) Except as otherwise specifically provided in the By-Laws or Rules, any action permitted or 

required by the By-Laws or Rules to be taken by the Corporation may be taken by the Board, the 

President or any other officer to whom authority has been delegated by the Board or the President

following the applicable factors set forth in these Rules.

(b) Any action permitted or required by these Rules to be taken by the President may, in the 

absence or unavailability of the President, be taken by any other officer to whom authority has 

been delegated by the Board or the President following the applicable factors set forth in these 

Rules.

Rule 104. Headings

The headings of the various Rules appear for convenience only and shall not affect the meaning 

of the language contained in these Rules.

Rule 105. Notices to Clearing Members

The delivery by hand, electronic mail, electronic transmission or telephone of any notice, order or 

other communication to a Clearing Member at the address, electronic address, or telephone 

number last designated by it shall be good and sufficient delivery thereof to such Clearing 

Member, and such delivery shall be effective at the time of delivery (in the case of delivery by 

hand), at the time the relevant notice is sent (in the case of delivery by electronic mail or other 

electronic transmission) and at the time of the relevant communication (in the case of delivery by 

telephone).

Rule 106. Approved Financial Institutions

(a) A bank, trust company or other institution may be designated by the Board as an Approved 

Financial Institution for any or all of the following purposes: acting as a depository for margins and 

option premiums on behalf of Clearing Members or acting in such other capacity as the Board 

may approve. To become designated as an Approved Financial Institution, a bank, trust company 

or other institution must submit an application in such form and containing such information as 

the Corporation from time to time may require and must meet such financial and other 

requirements as the Board may establish from time to time. A bank, trust company or other 

institution which has been designated by the Board as an Approved Financial Institution for any 

purpose may act as such until such designation is suspended or terminated in accordance with 

paragraph (b) of this Rule 106.

(b) If a bank, trust company or other institution does not meet all the requirements established 

by the Corporation pursuant to this Rule 106, or if the Board determines, based on such facts or 

considerations as the Board deems relevant or appropriate, that it would be in the best interests 

of the Corporation or its Clearing Members, the Board may:

(i) deny the application of such bank, trust company or institution for designation as an

Approved Financial Institution,

(ii) suspend or terminate the status of such bank, trust company or institution as an

Approved Financial Institution for any or all purposes, or

(iii) approve the application or permit the bank, trust company or other institution to continue 

as an Approved Financial Institution, subject in either case to such terms, conditions and 

limitations as the Board, in its judgment, deems appropriate.
ICE Clear U.S., Inc. Rules

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(c) All wire transfers or other transfers of funds by Clearing Members to the order of or to make 

payments to the Corporation must be drawn on or made by an Approved Financial Institution or, 

if applicable, a Qualified Financial Institution.

Rule 107. Listing Exchanges

(a) Each Listing Exchange for which the Corporation determines to provide clearing services 

shall enter into a clearing services agreement in the form approved by the Corporation, which 

shall, among other matters, require the Listing Exchange to comply with the provisions of the ByLaws and Rules applicable to Listing Exchanges. The Corporation shall have no obligation to 

accept, or to provide clearing services to, any particular exchange or trading facility as a Listing 

Exchange, subject to any requirements of applicable law. 

(b) Each Listing Exchange shall provide to the Corporation, and maintain with the Corporation 

for so long as it is a Listing Exchange, a cash contribution of default resources to be applied 

pursuant to Rule 302(c)(v) (each, a “Listing Exchange Default Contribution”), plus an additional 

amount equal to 1% of the Listing Exchange Default Contribution (such additional amount, 

together with the Listing Exchange Default Contribution, the “Listing Exchange Contribution”). 

The Listing Exchange Default Contribution shall initially be in an amount equal to the greater of 

(i) $10 million and (ii) the arithmetic average of the Guaranty Fund Deposit Requirements of all 

Clearing Members as of the end of the most recent calendar year. The Corporation will 

recalculate the required Listing Exchange Default Contribution using the formula in the preceding 

sentence for each Listing Exchange as of the end of each calendar year, provided that the Listing 

Exchange Default Contribution will not be reduced as a result of any such recalculation. In the 

event of an increase in its required Listing Exchange Default Contribution as of any calendar yearend, the Listing Exchange shall be required to increase its Listing Exchange Contribution to the 

required level, within the timeframe and in the manner specified in the policies and procedures of 

the Corporation as in effect from time to time. The Corporation shall not be obligated to return 

the Listing Exchange Contribution (or any part thereof), except pursuant to Rule 107(d).

(c) In the event of any application of its Listing Exchange Default Contribution pursuant to Rule 

302(c)(v), the Listing Exchange shall restore its contribution to the required level on demand of 

the Corporation (a “Listing Exchange Replenishment”); provided that (i) a Listing Exchange 

Replenishment required as a result of the application of a Listing Exchange Default Contribution 

with respect to a particular Monetary Default shall not be applied to further losses from that 

Monetary Default; (ii) during an Exchange Cooling-off Period, a Listing Exchange shall not be 

required to provide Listing Exchange Replenishments in the aggregate in excess of 550% of its 

required Listing Exchange Default Contribution immediately prior to the Monetary Default or 

Monetary Defaults as a result of which the Exchange Cooling-off Period commenced, regardless 

of how many Monetary Defaults occur during such period; and (iii) the Listing Exchange shall not 

be required to restore its Listing Exchange Default Contribution following the return of its Listing 

Exchange Contribution in accordance with Rule 107(d)). 

(d) If an exchange or trading facility ceases to be Listing Exchange in accordance with its 

clearing services agreement, the Corporation shall return its Listing Exchange Contribution on the 

date that is 60 days following the expiration or termination of all Contacts resulting from 

transactions submitted by such Listing Exchange to the Corporation for clearing; provided that 

the Corporation will be entitled to retain and apply such Listing Exchange Contribution in 

accordance with the Rules with respect to any Monetary Default occurring prior to or upon such 

expiration or termination; provided that where a Listing Exchange provides notice that it will cease 

to be a Listing Exchange in accordance with its clearing services agreement during an Exchange 

Cooling-off Termination Period, the limitations in Rule 107(c)(ii) above shall remain in effect with 

respect to such Listing Exchange until such expiration or termination. 
ICE Clear U.S., Inc. Rules

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(e) Listing Exchange Contributions will be held in a bank approved for the purpose by the 

Corporation. The Corporation shall have the sole right to withdraw cash from such account or 

accounts. The Corporation may invest any Listing Exchange Contributions in securities which 

are Government Securities and other securities, and sell or dispose of any such investments, in 

accordance with the Corporation’s investment policies and applicable law, and may engage in 

repurchase transactions with any cash or securities on deposit. Any interest, capital gain or other 

income earned on any such investments in securities shall belong and be credited to the 

Corporation (but without prejudice to any rate of return paid by the Corporation on cash deposited 

as a Listing Exchange Contribution). Rules 301(j), (l), (m) and (n) shall apply to Listing Exchange 

Contributions as though they were contributions to the Guaranty Fund (with references therein to 

Clearing Members being deemed to refer to Listing Exchanges). 

(f) As used in this Rule 107: 

“Exchange Cooling-off Period” means the period commencing on the date of the Exchange 

Cooling-off Period Trigger Event and terminating 30 Business Days thereafter; provided that an 

Exchange Cooling-off Period shall be automatically extended if a subsequent Exchange Coolingoff Period Trigger Event occurs 30 or fewer Business Days after the previous Exchange Coolingoff Period Trigger Event, in which case the Exchange Cooling-off Period will be extended until the 

date falling 30 Business Days after such subsequent Exchange Cooling-off Period Trigger Event.

“Exchange Cooling-off Period Trigger Event” means (i) any full utilization of a Listing 

Exchange Default Contribution pursuant to Rule 302(c)(v) arising from a Monetary Default or 

Monetary Defaults; or (ii) the occurrence of circumstances in which there have been two or more 

utilizations of a Listing Exchange Default Contribution pursuant to Rule 302(c)(v) as a result of 

Monetary Defaults within a period of 30 or fewer Business Days, in which the total amount applied 

is at least equal to the required Listing Exchange Default Contribution prior to the first such 

Monetary Default.

“Exchange Cooling-off Termination Period” means the period commencing on the date of 

each Exchange Cooling-off Period Trigger Event and terminating 10 Business Days thereafter; 

provided that if one or more subsequent Exchange Cooling-off Period Trigger Events occur during 

an Exchange Cooling-off Termination Period, the Exchange Cooling-off Termination Period will 

be extended until the date that is 10 Business Days after the last such event.
ICE Clear U.S., Inc. Rules

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9

Part 2

Clearing Membership

Rule 201. Clearing Membership

(a) Only Clearing Members shall be entitled to clear Contracts with the Corporation, except 

that, if the Board so determines, the Corporation may clear contracts, options or other instruments 

for members of any other clearing organization (including in connection with the linkage of an 

Exchange with another board of trade, exchange or market which is not an Exchange). Each 

Clearing Member shall have the privilege of clearing with the Corporation all Contracts traded on 

or subject to the rules of each Exchange of which it is a member or member firm and any other 

Contracts authorized to be cleared by it by the Corporation, whether for a customer or house 

account.

(b) Each Clearing Member shall have the privileges, rights and obligations provided for in and 

pursuant to the By-Laws and these Rules. Such privileges, rights and obligations may be 

terminated or altered in any respect at any time as provided in the By-Laws or these Rules.

(c) Any power of attorney or other authorization to transact business with the Corporation 

given by a Clearing Member to any person shall remain in effect until a written notice of change 

has been received by the Corporation. 

Rule 202. Eligibility Requirements

To become and remain a Clearing Member and to have the privilege of clearing Contracts effected 

on or subject to the rules of one or more Exchanges, a Person must:

(a) Be an Entity that is a member firm of such Exchange or Exchanges.

(b) Have one person, satisfactory to the Corporation, who is: (i) a director, general partner, 

trustee or officer (or person occupying a similar status or performing similar functions); (ii) 

responsible for the clearing operations of such Person; and (iii) authorized and empowered to act 

on behalf of such Person in all transactions with or involving the Corporation including but not 

limited to satisfying margin calls, paying option premiums, issuing and receiving delivery notices 

and furnishing reports and information, and have a second person who meets the requirements 

of this subparagraph (b) and who is authorized to act on behalf of such Person in all transactions 

with or involving the Corporation in the event of unavailability, death, incompetence or other 

inability of the first person.

(c) Have Capital of at least $5,000,000.

(d) Have, in the judgment of the Board (and, if applicable, taking into account any guarantee 

provided by a Guarantor pursuant to Rule 202(e)), such qualities of financial responsibility, 

creditworthiness, operational capacity, experience, business integrity, reputation and competence 

as the Board, in its discretion, may consider necessary or appropriate to be a Clearing Member

and demonstrate that it has sufficient financial ability to make and maintain anticipated Guaranty 

Fund contributions and provide initial margin, variation margin and option premiums as required 

by these Rules.

(e) If an Entity which is subject to Control by any other Person or Persons and if so required 

by the Corporation at any time in its determination (including in light of the considerations in Rule 

202(d)), have on file with the Corporation a guarantee in such form as the Corporation may 

prescribe from such other Person or from one or more of such other Persons (as the Corporation 

may specify) (each, a “Guarantor”) unconditionally guaranteeing payment of all amounts owing 

by such Entity under or in connection with any account carried by the Corporation for such entity. 
ICE Clear U.S., Inc. Rules

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(f) At all times maintain an office to which all notices, orders and other communications from 

the Corporation may be transmitted or delivered. Such office shall be: (i) at a location satisfactory 

to the Corporation; (ii) kept open during normal business hours; (iii) staffed on a full time basis 

and under the direct supervision and responsibility of a person meeting the qualifications in 

subparagraph (b) of this Rule, such person need not be physically located at such office.

(g) File with the Corporation such information as the Corporation may require regarding its (i) 

shareholders, partners, members, officers, directors, management personnel and Affiliated 

Persons; and (ii) ownership, Control or management.

(h) Monitor its electronic communication facilities during the course of each Clearing Day for 

receipt of communications from the Corporation. Review every communication, whether 

electronic or otherwise, delivered by the Corporation and report to the Corporation any error in 

such communication.

(i) Establish and maintain accounts at an Approved Financial Institution for the deposit of funds 

(including without limitation Approved Foreign Currencies) and securities required to be 

transmitted to and from such Clearing Member pursuant to the By-Laws and these Rules, and to 

enter into arrangements with such Approved Financial Institution, and if applicable such Qualified

Financial Institution, satisfactory to the Corporation for the transfer by wire or other means of 

funds and securities into and out of such accounts (separately for any customer and house 

accounts) on the order of the Corporation and within timelines established by the Corporation.

(j) Maintain such operational capability, including without limitation having such equipment, 

facilities and personnel, as in the judgment of the Corporation are necessary and desirable in 

order to properly perform the function of clearing Contracts with the Corporation and to comply 

with all of the obligations of the Clearing Member pursuant to the By-Laws and these Rules. In 

particular, the applicant must have the ability to: (i) process expected volumes and values of 

transactions within required time frames, including at peak times and on peak days; and (ii) fulfill 

collateral, payment and delivery obligations of the Corporation.

(k) Maintain as appropriate for the nature of its business, risk management policies, 

procedures, practices and systems reasonably sufficient in the judgment of the Corporation to 

monitor and control financial and operational risks from accounts cleared by it. Without limiting 

the foregoing, in order to comply with CFTC Commission Regulation 39.13(g)(8)(ii), the risk 

management policies, procedures and practices shall identify categories of customers with 

heightened risk profiles and collect initial margin for each account, at a level that exceeds the 

clearing initial margin requirement determined by the Corporation, by an amount commensurate 

with the risk presented by each account. Such written risk management policies, procedures, 

practices and systems shall be made available to the Corporation upon request.

(l) Maintain OrganizationBe organized in (and, if it has a Guarantor that provides a guarantee 

pursuant to Rule 202(e), such Guarantor maintains Organizationmust be organized in) in a 

jurisdiction whose insolvency laws are acceptable to the Corporation.

(m) Have in place business continuity procedures that satisfy the Corporation’s requirements.

(n) Participate in default management simulations, new technology testing and other 

exercises, as notified by the Corporation from time to time.

(o) If intending to clear customer business, Clearing Members must be registered as a futures 

commission merchant under the Act and maintain regulatory authorization in its home jurisdiction 

in order to be able to provide relevant clearing services, as appropriate. Clearing Members 

organized outside of the U.S. must have in place all necessary regulatory authorizations, licenses, 

permissions and approvals in their home jurisdiction and provide evidence of same.

(p) Timely comply with all provisions of any Cross Margining Program.
ICE Clear U.S., Inc. Rules

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Rule 203. Procedures for Becoming a Clearing Member

(a) Any Person desiring to become a Clearing Member must file an application with the 

Corporation in such form as the Corporation may prescribe, shall furnish such documents and 

information as the Corporation may request and shall pay such application fee as the Corporation

may prescribe. The filing of any such application, documents and information, and the action by 

the Corporation with respect thereto, shall be as provided in these Rules.

(b) The Board shall have final authority to grant or deny an application to become a Clearing 

Member and shall deny the application of any Person which does not meet the eligibility 

requirements set forth in Rule 202; provided, however, that if the Board proposes to deny any 

such application, it shall so notify the applicant in writing, setting forth the grounds upon which the 

Board proposes to deny such application, and the applicant, upon written request made within 

ten calendar days after the date of receipt of such notification, shall be entitled to a hearing before 

the Board. Any such hearing shall be conducted pursuant to rules and procedures adopted by the 

Board which, in the judgment of the Board, are sufficient to give such applicant an opportunity 

fully and fairly to present to the Board the applicant's reasons why the application should be 

granted.

(c) If the Board grants an application to become a Clearing Member, the Corporation shall 

promptly give the applicant written notice thereof, specifying each Exchange whose Contracts the 

applicant is entitled to clear. Such applicant shall become a Clearing Member at such time as the 

Applicant has (i) deposited such amount in the Guaranty Fund as may be required pursuant to 

Rule 301; and (ii) filed with the Corporation such agreements, undertakings and documents as 

the Corporation may require; provided, however, that if such applicant has not complied with the 

foregoing provisions within 60 calendar days after the applicant was given written notice of 

approval of its application, the application shall be deemed to have been withdrawn unless the 

Corporation, in its discretion, decides that the application shall not be deemed to have been 

withdrawn, subject to such conditions as the Corporation may prescribe.

Rule 204. Reporting and Notice Requirements

(a) Each Clearing Member shall file with the Corporation:

(i) monthly and fiscal year-end financial statements in the form and timeframes prescribed 

in paragraph (b) of this Rule; and

(ii) a copy of each financial statement, financial report, or notice pursuant to Commission 

Regulation 1.12, Securities and Exchange Commission Rule 17a-11, FINRA Rule 

4530(a)(1)(A), (C), (E) and 4530(b) or similar rules, which it files with the Commission, any 

Self-Regulatory Organization, any national securities exchange or any clearing organization of 

which it is a member or member firm, or any other federal regulatory organization having 

jurisdiction over such Clearing Member, at the same time it files such statement or report with 

any such body, and if such statement or report is other than a routine periodic statement or 

report required under the by-laws, rules or regulations of such entity, such copy shall be 

accompanied by a written statement setting forth (to the extent known) the reasons why such 

Clearing Member is filing such statement or report. 

(b) The financial statements required by subparagraph (a)(i) of this Rule shall be in the form 

adopted by the Commission for use by futures commission merchants (currently Commission 

Form 1-FR) or FOCUS Report Part II. Monthly financial statements must be filed within 17 

Business Days after the end of each month. Fiscal year-end statements must be filed: (i) within 

90 calendar days if submitting Form 1-FR; or (ii) within 60 calendar days if submitting a FOCUS 

Report Part II.

The financial statement for the fiscal year of a Clearing Member which is an Entity shall be certified 

by an independent public accountant, and the monthly financial statements shall be certified by 
ICE Clear U.S., Inc. Rules

EXHIBIT A

12

the president, the chief financial officer or a general partner of the Clearing Member. The financial 

statements of a Clearing Member which is an individual shall be certified by such Person or 

Persons, in such manner, as the Board may prescribe.

A Clearing Member which elects to file a FOCUS Report Part II pursuant to this Rule or in 

response to a request pursuant to paragraph (d) of this Rule may not thereafter file a financial 

statement in the form adopted by the Commission for use by a futures commission merchant 

unless it obtains the prior consent of the Corporation.

A Clearing Member which elects to file a financial statement in the form adopted by the 

Commission for use by a futures commission merchant may subsequently elect to file a FOCUS 

Report Part II, provided that the first FOCUS Report Part II filed by such Clearing Member shall 

be accompanied by a statement reconciling the Clearing Member's adjusted net capital as shown 

on the FOCUS Report Part II with the adjusted net capital which would have been shown had it 

filed a financial statement for the same period in the form adopted by the Commission for use by 

a futures commission merchant.

(c) Each Clearing Member shall immediately notify the Corporation in writing:

(i) If not registered with the Securities and Exchange Commission as a Broker-Dealer, when

(A) its Capital declines from that shown on the latest financial statement filed by it with 

the Corporation for any reason by 20% or more, or by an amount which reduces its Permitted 

Position Risk. Such notification shall be given not later than two (2) Business Days following 

the event requiring such notification; and

(B) any payment, loan or distribution to, or redemption of any outstanding shares of stock 

or other equity interest held by, any shareholder, partner, member, beneficiary or other 

holder of any equity interest of the Clearing Member will have the effect of reducing the 

Capital of such Clearing Member by more than 30% from that shown on the latest financial 

statement filed by it with the Corporation for any reason. Such notification shall be given at 

least two (2) Business Days prior to any such payment, loan, distribution or redemption and 

shall include the amount thereof, a balance sheet of the Clearing Member as of the last 

Business Day of the month prior to the month in which the same is to be made (certified by 

the president, the chief financial officer or a general partner of the Clearing Member) and a 

description of the effect that the same will have on the Capital of the Clearing Member.

(ii) If registered with the Securities and Exchange Commission as a Broker-Dealer, when

(A) its tentative net capital (as defined in the rules of the Securities and Exchange 

Commission) declines from that shown on the latest financial statement filed by it with the 

Corporation for any reason by 20% or more, or by an amount which reduces its Permitted 

Position Risk. Such notification shall be given not later than two (2) Business Days following 

the event requiring such notification.

(B) any payment, loan or distribution to, or redemption of any outstanding shares of stock 

or other equity interest held by, any shareholder, partner, member, beneficiary or other 

holder of any equity interest of the Clearing Member will have the effect of reducing the 

tentative net capital (as defined in the rules of the Securities and Exchange Commission) of

such Clearing Member by more than 30% from that shown on the latest financial statement 

filed by it with the Corporation for any reason. Such notification shall be given at least two 

(2) Business Days prior to any such payment, loan, distribution or redemption and shall 

include the amount thereof, a balance sheet of the Clearing Member as of the last Business 

Day of the month prior to the month in which the same is to be made (certified by the 

president, the chief financial officer or a general partner of the Clearing Member) and a 

description of the effect that the same will have on the Capital of the Clearing Member.
ICE Clear U.S., Inc. Rules

EXHIBIT A

13

(iii) Upon the occurrence of any financial or business development that could materially 

affect the ability of the Clearing Member to comply with its obligations as a Clearing Member.

(iv) Without limiting the foregoing subpart (iii), of

(A) any suspension, expulsion, bar, fine, censure, denial of membership, refusal of 

admission, registration or license, cease and desist order, temporary or permanent 

injunction, denial of trading privileges, or, to the extent detrimental to the ability of the 

Clearing Member to fulfill its duties and obligations as a Clearing Member, any other 

sanction or discipline through an adverse determination, voluntary settlement or otherwise, 

by the Commission, or any other regulatory, self-regulatory or other entity or organization 

with regulatory authority, whether U.S. or non-U.S., governmental or otherwise, having 

jurisdiction over the Clearing Member, or the withdrawal of any application for membership 

of, registration with or admission to any such entity or organization.

(B) the imposition of any restriction or limitation on the business conducted by the 

Clearing Member on or with any securities, futures or swap clearing organization or 

exchange (including, without limitation, any contract market, securities exchange, swap 

execution facility, security-based swap execution facility or other trading facility), other than 

restrictions or limitations imposed generally on all members of or participants in such 

clearing organization or exchange.

(d) Each Clearing Member shall file with the Corporation such documents, financial and/or 

other information, in addition to what is explicitly required by this Rule, as may be requested by 

the Corporation from time to time.

(e) The qualifications and reports of accountants for Clearing Members must meet the 

requirements set forth in Commission Regulations and must be satisfactory to the Corporation.

(f) In the event that any Clearing Member (i) fails to meet any obligation to deposit or pay any 

margin or option premium when and as required by any clearing organization of which it is a 

member, (ii) fails to be in compliance with any applicable financial requirements of the 

Commission, any Self-Regulatory Organization, any securities exchange or clearing organization, 

(iii) becomes the subject of a bankruptcy petition, receivership proceeding or the equivalent, or 

(iv) becomes subject to statutory disqualification under Section 8a(2) or (3) of the Act or other 

applicable Commission regulations, such Clearing Member shall immediately so advise the 

Corporation both telephonically and in writing.

(g) Each Clearing Member shall provide the Corporation ample notice in writing prior to any

change to the information provided under Rule 202(g).

(h) Each Clearing Member shall notify the Corporation promptly in writing of any change (other 

than a change subject to paragraph (g)) which would cause a statement furnished pursuant to 

these Rules to be inaccurate or incomplete.

Rule 205. Documents, Communications and Payments Submitted to the Corporation

(a) All reports, documents, papers, statements, notices, checks, and other communications or 

other materials required or permitted by these Rules to be submitted to the Corporation, except 

as may otherwise be specifically prescribed by these Rules, shall be delivered to the Corporation 

or its designated agent at such times, in such form and in such manner as the Corporation shall 

require. Each item delivered to the Corporation shall specify the identity of the Clearing Member 

making such delivery.

(b) The Corporation shall have the right to instruct each Approved Financial Institution to debit 

a house margin account maintained by each Clearing Member, and/or any other non-customer 

account designated by such Clearing Member for purposes of this Rule, for any payment of fees, 

charges or other amounts (other than fines or penalties) due to the Corporation or due to any 
ICE Clear U.S., Inc. Rules

EXHIBIT A

14

Exchange (if and to the extent the Corporation shall be acting as a collection agent for the 

Exchange).

(c) When a check tendered to the Corporation, by or on behalf of a Clearing Member, has 

been certified, or is presented by the Corporation to the bank upon which it is drawn for 

certification, or is deposited, the Clearing Member shall not be released of its obligation to the 

Corporation thereby, any statute or rule of law to the contrary notwithstanding; and in the event 

that such check shall not be collected in full by the Corporation upon presentation thereof in due 

course, the Clearing Member by or on whose behalf the same was given to the Corporation shall 

continue to be liable for the amount thereof.

(d) If a wire transfer to the Corporation made by or on behalf of a Clearing Member is reversed 

or revoked, then, any statute or rule of law to the contrary notwithstanding, the Clearing Member 

which made such transfer or on whose behalf such transfer was made shall continue to be liable 

for the amount thereof.

(e) No Clearing Member shall furnish any false, inaccurate or misleading information to the 

Corporation or accept any money or securities on the basis of any report or other information 

known by the Clearing Member to be incorrect.

Rule 206. Records and Information

(a) Each Clearing Member shall keep accurate records showing the details of each Contract 

offered for clearing by or on behalf of such Clearing Member and such other information, in such 

form, as shall be required by the Corporation from time to time.

(b) All records required under these Rules shall be retained for the time, and in the manner, 

specified by Commission Regulations with respect to records required to be kept by the Act and 

Commission Regulations.

(c) Each Clearing Member shall permit representatives of the Corporation to inspect or take 

temporary possession of such Clearing Member's books and records at any time upon demand, 

and shall furnish the Corporation with all information requested at any time in respect of the 

Clearing Member's business and Contracts as the Corporation or its officers may require, 

including without limitation, information regarding all accounts or any specific account carried by 

such Clearing Member.

Rule 207. Obligations of Suspended Clearing Member

A Clearing Member which has been suspended shall, during the term of such suspension and 

thereafter, remain and continue to be:

(a) subject to and bound by the By-Laws, these Rules and any agreements between such 

Clearing Member and the Corporation;

(b) obligated to pay all fees, fines, assessments or other charges imposed by the Corporation; 

and

(c) liable to the Corporation and to all other Clearing Members for all other obligations arising 

under Contracts cleared and all obligations incurred before, during or after such suspension, 

including but not limited to obligations to deposit and pay initial margin, variation margin and option 

premiums.

Rule 208. Position Risk 

(a) The Corporation will be entitled at its discretion to establish, amend or revoke limits on 

position risk for Clearing Members or in respect of particular accounts. The position risk of any 

Clearing Member shall mean the amount of initial margin, required from such Clearing Member, 

exclusive of Option liquidating value, as calculated by the Corporation.
ICE Clear U.S., Inc. Rules

EXHIBIT A

15

(b) The limit on position risk for each Clearing Member and account will be determined at the 

Corporation’s discretion and may take into account the Corporation’s evaluation of the financial 

and operational capacity of the Clearing Member and such other factors as the Corporation at its 

discretion deems appropriate.

(c) Breach of Limits on Position Risk

(i) If a Clearing Member exceeds its limits on position risk, the Corporation may, at its 

discretion: (A) require a Clearing Member to provide information to the Corporation in respect 

of any of its positions; (B) require a Clearing Member to allocate, transfer or terminate such 

Contracts or close out its open position in any affected account to the extent necessary to 

reduce its open position so as to meet its limit on position risk within such time as the 

Corporation may prescribe; (C) make an additional call for such Margin as the Corporation in 

its discretion determines; and/or (D) impose such additional Capital requirements on the 

Clearing Member as the Corporation in its discretion determines.

(ii) If the Clearing Member fails to comply with any requirement imposed on it pursuant to 

Rule 208(a), the Clearing Member shall be in breach of these Rules and, without limitation, 

the Corporation may, at its discretion, in respect of the Clearing Member concerned: (A) 

declare an Event of Default; (B) terminate or suspend membership of the Clearing Member; 

(C) terminate such Contracts as the Corporation at its discretion selects on behalf of the 

Clearing Member; (D) instigate an investigation or disciplinary proceeding under Part 9 of 

these Rules; and/or (E) impose such other requirements on the Clearing Member as it sees 

fit.

Rule 209. Indemnification by Clearing Members

(a) If any action or proceeding is brought or threatened against the Corporation or any person 

entitled to be indemnified by the Corporation pursuant to Section 6.1 or Section 6.2 of the ByLaws (such persons being collectively referred to as “Officials”), claiming, directly or indirectly, in 

whole or in part, that the Corporation or such Official has failed, neglected or omitted to prevent, 

detect or require any conduct by a Clearing Member or by an Affiliated Person of a Clearing 

Member, which conduct or lack thereof is alleged to constitute a violation of the Act, any other 

federal or state law, any Commission Regulation, any rule of any Self-Regulatory Organization, 

or any Corporation By-Law or Rule, such Clearing Member shall indemnify and hold harmless the 

Corporation and each such Official from and against all loss, liability, damage and expense 

(including but not limited to attorneys' fees, expenses of investigating such claim, judgments and 

amounts paid in settlement) incurred by or asserted against the Corporation or any such Official 

in or in connection with any such legal proceeding.

(b) If any action or proceeding is brought against the Corporation or an Official which could 

result in indemnification by a Clearing Member pursuant to subsection (a) of this Rule:

(i) Such party shall promptly give such Clearing Member notice thereof in writing.

(ii) Neither the Corporation nor any such Official may settle a claim to the extent it seeks 

the recovery of money damages without the prior consent of such Clearing Member; provided 

that if such Clearing Member does not consent to any proposed settlement within ten (10) 

calendar days following the date it receives written notice of the terms of such settlement, the 

Corporation or such Official may require such Clearing Member to post such security for the 

payment of its indemnification obligations to the Corporation or such Official as the Corporation 

or such Official deems necessary, but not in excess of the money damages claimed plus 

interest and anticipated expenses.
ICE Clear U.S., Inc. Rules

EXHIBIT A

16

Rule 210. RESERVED

Rule 211. RESERVED

Rule 212. Withdrawal of Clearing Members

(a) The following terms will have the indicated meanings:

Withdrawal Close-Out Deadline Date

(i) Unless clause (ii) applies, in respect of the termination of Clearing Member status of a 

Clearing Member, the date falling 30 Business Days after the Withdrawal Notice Time (or, if 

the Corporation has terminated the Clearing Member’s status, the date so designated by the 

Corporation); (ii) in respect of termination of clearing membership during a Cooling-off 

Termination Period, the date falling 20+x Business Days after the Withdrawal Notice Time 

where x= the total number of unexpired Business Days in the Cooling-off Termination Period; 

or (iii) notwithstanding (i) and (ii), in any case, such later date as the Corporation may at its 

discretion permit and notify in writing to the affected Clearing Member.

Withdrawal Date

In respect of the termination of Clearing Member status for a Withdrawing Clearing 

Member, the later of (i) where applicable, the Withdrawal Close-Out Deadline Date and (ii) the 

date as of which all of the Withdrawing Clearing Member’s open positions in respect of its 

house and customer accounts have been terminated or closed out in full and all obligations 

of the Withdrawing Clearing Member in respect thereof have been satisfied and performed in 

full. 

Withdrawal Notice Time

The time of service by a Clearing Member of a Withdrawal Notice.

Withdrawal Notice

A notice served by the Clearing Member on the Corporation under these Rules indicating 

that such Clearing Member intends to withdraw from being a Clearing Member (and thereby 

becomes a Withdrawing Clearing Member).

(b) A Clearing Member that has delivered a Withdrawal Notice (including during a Cooling-off 

Termination Period) or (if so designated by the Corporation) that is otherwise terminated is subject 

to the following requirements, obligations and provisions:

(i) it must use all reasonable endeavors, unless and until such time as a Corporation Default 

occurs, to close out all of its open positions prior to the Withdrawal Close-Out Deadline Date;

(ii) if it provided its Withdrawal Notice during a Cooling-off Termination Period and it closes 

out all of its open positions prior to the Withdrawal Close-Out Deadline Date and complies with 

the other requirements of this Rule 212, it shall maintain the benefit of the protections set out 

in paragraph (c) of Rule 303 following the end of the Cooling-off Period;

(iii) after the Withdrawal Notice Time, it shall only be entitled to submit transactions for 

clearing which it can demonstrate have the overall effect of reducing open positions in any 

Contracts or risks to the Corporation associated with the Contracts, whether by hedging, 

novating, transferring, terminating, liquidating or otherwise closing out such Contracts;

(iv) the Corporation may call for additional initial margin until such time as all of such 

Clearing Member’s open positions have been terminated, and such Clearing Member shall 

provide such additional initial margin to the Corporation as is requested in a timely manner;
ICE Clear U.S., Inc. Rules

EXHIBIT A

17

(v) it shall be obligated to participate in Default Auctions (if any) in the same manner as any 

other Clearing Member that is not a Defaulting Clearing Member and subject to the provisions 

of these Rules in respect of all Monetary Defaults occurring prior to or during the Cooling-off 

Period during which it served its Withdrawal Notice (or, if Rule 303(e) does not apply, all 

Monetary Defaults occurring prior to the Withdrawal Notice Time). For the avoidance of doubt, 

failure to participate in such Default Auctions shall have the consequences (if any) set forth in 

the applicable Default Auction Procedures, and will not otherwise constitute an Event of Default 

by the Withdrawing Clearing Member or failure to perform its obligations under this Rule 212; 

(vi) if it has any open positions with the Corporation (whether customer or house positions) 

after the Withdrawal Close-Out Deadline Date (and notwithstanding any provision in this Part 

2 of these Rules to the contrary), the Clearing Member shall as from the Withdrawal Close-Out 

Deadline Date until its Withdrawal Date:

(A) become liable to make any Replenishments or Assessments that would have fallen 

due but has not been paid and become liable to have applied any contribution to the 

Guaranty Fund that would have been applied but was not so applied, in each case to the 

extent that the same would have been payable or applied but for its service of a Withdrawal 

Notice and in each case in respect of any Monetary Default affecting a Clearing Member 

that has occurred subsequent to the Withdrawal Notice Time; 

(B) become liable for further obligations to have any contributions to the Guaranty Fund 

applied or pay Assessments in the same way as any other Clearing Member in respect of 

any Monetary Default occurring prior to the Withdrawal Date; and 

(C) be subject to the Corporation exercising rights under Part 8 of these Rules to liquidate 

or transfer the open positions of the Clearing Member and otherwise deal with the Clearing 

Member's Contracts and property in the same way as if the Clearing Member were a 

Defaulting Clearing Member. 

(vii) following termination, or transfer to another Clearing Member in accordance with these 

Rules, of all open positions to which a Withdrawing Clearing Member was party in relation to 

its house and customer accounts and satisfaction in full by such Withdrawing Clearing Member 

of all obligations in respect thereof, the Corporation shall return the Withdrawing Clearing 

Member’s unused contributions to the Guaranty Fund and any unused Withdrawal Deposit, as 

well as any other assets of the Withdrawing Clearing Member not previously returned on the 

date (the “Contribution Return Date”) that is 60 calendar days after the Withdrawing Clearing 

Member’s Withdrawal Date, or such earlier date as is determined by the Corporation. 

Notwithstanding anything in these Rules or the By-Laws:

(1) the Corporation may at its discretion return amounts due to the Withdrawing Clearing 

Member in different currencies or by way of transfer or return of non-cash margin to the 

Withdrawing Clearing Member; 

(2) the Corporation may further pay any net amount payable to the Withdrawing Clearing 

Member in different amounts denominated in different currencies and is not required to pay 

a single sum in one currency; and

(3) the Corporation may make partial payment of any amounts due excluding the 

Guaranty Fund contribution prior to the time specified in this Rule 212; and 

(c) If: 

(i) a Clearing Member has served a Withdrawal Notice during a Cooling-off Termination 

Period; and
ICE Clear U.S., Inc. Rules

EXHIBIT A

18

(ii) there is a Monetary Default or are Monetary Defaults before the relevant Withdrawal 

Date as well as any additional Monetary Default described in Rule 302(i)(iii), then the Clearing 

Member in question shall remain liable for the application of any then unapplied Guaranty Fund 

contributions and unapplied Assessments (including those paid or which the Clearing Member 

is liable to pay) for all such Monetary Defaults (as if all such Monetary Defaults had been 

declared by the Corporation prior to the Withdrawal Notice Time), subject to the general limits 

relating to particular Monetary Defaults and all Monetary Defaults referred to in Rule 302, Rule 

303 and Rule 212. 

(d) Except as otherwise agreed by the Corporation in its discretion, any Withdrawal Notice 

issued by a Clearing Member shall be irrevocable by the Clearing Member and membership may 

only be reinstated pursuant to a new application for membership following the close-out of all its 

open Contracts.

(e) A Clearing Member whose membership has terminated shall, following the Withdrawal 

Date, cease to be liable for Replenishments or Assessments under Rule 301 or Rule 302 in 

respect of Monetary Defaults that occur after the Withdrawal Date. Upon the return of its unused 

contribution to the Guaranty Fund under Rule 212(b)(vii), a Withdrawing Clearing Member shall 

have no further obligation to make contributions to the Guaranty Fund (including Assessments).

(f) This Rule 212 shall not apply to a Defaulting Clearing Member. 

(g) In the event of a Financial Emergency, or otherwise at the discretion of the Board, a 

Clearing Member that gives a Withdrawal Notice (other than during a Cooling-off Termination 

Period) may be required by the Corporation by the opening of business on the Business Day 

following delivery of the Withdrawal Notice to provide Assessments in an amount not to exceed 

550% of its Guaranty Fund Deposit Requirement (as in effect immediately prior to the Withdrawal 

Notice Time), such amounts to be held by the Corporation until the Withdrawal Date and applied 

only as permitted in accordance with Part 2 or 3 of these Rules (“Withdrawal Deposit”). Any 

references in these Rules or the By-Laws to Assessments being called or to Guaranty Fund 

Deposit Requirements to the Guaranty Fund being replenished or applied, in respect of a Clearing 

Member which has provided such a Withdrawal Deposit, shall be interpreted as a reference to 

such Withdrawal Deposit being applied in satisfaction of such requirements, and a Clearing 

Member that has served a Withdrawal Notice and made such Withdrawal Deposit shall not be 

liable for any further Assessments, regardless of how many Monetary Defaults take place (subject 

to the proviso to paragraph (c) of Rule 303).

Rule 213. Termination of Clearing Membership

(a) A Clearing Member shall cease to be a Clearing Member:

(i) Upon the termination of its status as a Clearing Member pursuant to Part 9 of these 

Rules; or

(ii) If it submits a Withdrawal Notice in accordance with Rule 212, upon the satisfaction of 

its obligations and occurrence of its Withdrawal Date under Rule 212. 

(b) Reserved.

(c) Reserved.

(d) A Person which is a Clearing Member of more than one Exchange may, subject to the 

satisfaction of the conditions set forth in this Rule 213, withdraw as a Clearing Member of one or 

more such Exchanges while remaining as a Clearing Member of any other Exchange.

(e) A Person which for any reason ceases to be a Clearing Member shall remain and continue 

to be:
ICE Clear U.S., Inc. Rules

EXHIBIT A

19

(i) subject to any investigations or proceedings pursuant to Part 9 of these Rules of which 

the Clearing Member receives notice within six months after ceasing to be a Clearing Member;

(ii) obligated to pay all fees, fines or other charges imposed on such Clearing Member by 

the Corporation, as a result of Contracts cleared or other obligations entered into or incurred 

prior to the termination of such membership;

(iii) subject to claims against its Guaranty Fund deposit until the Corporation returns such 

deposit as provided in paragraph (i) of Rule 301 subject to Rule 303 and Rule 212;

(iv) obligated to pay any assessment for which it is responsible, as provided in Rule 302; 

and

(v) obligated to the Corporation and other Clearing Members for all Contracts cleared and 

all obligations entered into or incurred prior to the termination of such membership.

Rule 214. Requirements for Subordinated Loan Agreements

Each subordinated loan agreement which, when executed, is to be included in determining the 

Capital of a Clearing Member, shall be in the form of either a cash subordinated loan agreement 

or a secured demand note and collateral agreement (“Subordination Agreement”) and:

(a) shall contain provisions to the effect that:

(i) all obligations of the Clearing Member with respect to the payment of principal and 

interest under the Subordination Agreement shall be subordinated to the payment in full of all 

obligations to other present and future creditors of the Clearing Member arising out of any 

matter occurring prior to the maturity of the Subordination Agreement, other than obligations 

which are the subject of subordination agreements which rank on the same priority as or junior 

to the Subordination Agreement;

(ii) the Subordination Agreement has a minimum term of one year, except for temporary 

subordination agreements permitted by Commission Regulation 1.17(h)(3)(v) as in effect from 

time to time;

(iii) immediate written notice will be given to the Corporation if the collateral pledged to 

secure a secured demand note is less than the unpaid principal amount of and interest accrued 

under the note;

(iv) prior consent of the Corporation is required for prepayment and for any cancellation, 

revocation, termination or modification of the Subordination Agreement; provided, however, 

that a Clearing Member which is a futures commission merchant registered as such with the 

Commission, in lieu of obtaining prior written Corporation consent, may provide to the 

Corporation a copy of the written consent thereto by the designated self-regulatory 

organization for such Clearing Member; and

(v) prior written notice will be given to the Corporation no sooner than six (6) months after 

the effective date of the Subordination Agreement if the maturity of payment (in whole or in 

part) under the Subordination Agreement is accelerated;

(b) shall be submitted to the Corporation at least ten days prior to the proposed effective date 

thereof; and

(c) if such Subordination Agreement is for a Clearing Member which is a futures commission 

merchant, shall have been approved by the designated self-regulatory organization for such 

Clearing Member as being in compliance with Commission Regulation 1.17 as in effect at the 

time.
ICE Clear U.S., Inc. Rules

EXHIBIT A

20

Rule 215. AML Compliance

(a) As of each Clearing Day, regardless of whether it submits Contracts to be cleared by the 

Corporation, each Clearing Member that is subject to the Bank Secrecy Act (31 U.S.C. 5311, et 

seq.), the USA PATRIOT Act, and the regulations promulgated thereunder hereby represents and 

warrants that it has developed and implemented a written anti-money laundering program, which 

has been approved in writing by senior management of Clearing Member, and is reasonably 

designed to promote and monitor Clearing Member’s compliance with the applicable requirements 

of the Bank Secrecy Act (31 U.S.C. 5311, et seq.), the USA PATRIOT Act, and the regulations 

promulgated thereunder. Such anti-money laundering program shall, at a minimum:

(i) establish and implement policies, procedures and internal controls reasonably designed

to promote compliance with the applicable provisions of the Bank Secrecy Act and the

implementing regulations thereunder;

(ii) establish policies, procedures and internal controls reasonably designed to detect and

report circumstances where Clearing Member may be used as a vehicle for money laundering, 

including the monitoring of Clearing Member’s customers for suspicious activity;

(iii) require Clearing Member to take appropriate action once suspicious activity is detected

and make reports to government authorities in accordance with applicable laws;

(iv) require the performance of due diligence on Clearing Member’s customers and, where

appropriate, performance of enhanced due diligence on customers using a risk-based

approach;

(v) require screening of customers for compliance with U.S. sanctions administered by the

U.S. Treasury’s Office of Foreign Assets Control (“OFAC”), including screening customer

names against OFAC’s List of Specially Designated Nationals and Blocked Persons (“SDN

List”);

(vi) designate an anti-money-laundering compliance officer;

(vii) provide for independent testing for compliance to be conducted by the Clearing

Member’s personnel or by a qualified outside party; and

(viii) provide periodic training for appropriate personnel.

(b) If a Clearing Member becomes aware that its customer and/or the beneficial owner of a

Contract is prohibited pursuant to an economic or trade sanctions program administered and

enforced by OFAC or is listed on the SDN List, such Clearing Member will notify the Corporation’s 

legal and/or compliance department as soon as is reasonably practicable or as may otherwise be 

required by law.
ICE Clear U.S., Inc. Rules

EXHIBIT A

21

Part 3

Guaranty Fund

Rule 301. Guaranty Fund

The Corporation shall establish and maintain a Guaranty Fund.

(a) For the purposes of this Rule 301, the following terms shall have the following meanings:

(i) “Base Guaranty Fund Amount” shall mean the base amount as established by the Board 

from time to time for the calculation of the Guaranty Fund Deposit Requirements of the 

Clearing Members.

(ii) “Base Margin Amount” shall mean that portion of each Clearing Member’s Guaranty 

Fund Deposit Requirement which is based upon its margin requirement, as determined 

pursuant to the Corporation’s risk policies.

(iii) “Base Volume Amount” shall mean that portion of each Clearing Member’s Guaranty 

Fund Deposit Requirement which is based upon the volume of Contracts cleared by it, as 

determined pursuant to the Corporation’s risk policies.

(iv) “Base Uncollateralized Stress Loss Amount” shall mean the portion of each Clearing 

Member’s Guaranty Fund Deposit Requirement which is based upon the uncollateralized 

stress loss, as determined pursuant to the Corporation’s risk policies.

(b) Each Clearing Member, shall deposit and maintain in the Guaranty Fund an amount (the 

“Guaranty Fund Deposit Requirement”) equal to the sum of the Clearing Member’s Base 

Margin Amount, Base Volume Amount and Base Uncollateralized Stress Loss Amount, as 

established by the Corporation in light of the Base Guaranty Fund Amount, provided that:

(i) Reserved.

(ii) each Clearing Member shall be required to deposit and maintain in the Guaranty Fund 

at least two million dollars ($2,000,000), or such other amount as the Board may fix from time 

to time;

(iii) Reserved.

(iv) each new Clearing Member shall be required to deposit such amount as determined 

by the Corporation provided, however, that in no event shall the amount of the deposit be less 

than the amount set forth in or determined by the Board pursuant to subsection (b)(ii) of this 

Rule 301. Each new Clearing Member must be a Clearing Member for one calendar month 

before its Guaranty Fund requirement is calculated as described in this Rule 301(b) (exclusive 

of this clause (iv)).

Subject to Rule 303 and Rule 212, the Board shall have the authority to cause the Base Margin 

Amount, Base Volume Amount and Base Uncollateralized Stress Loss Amount of all Clearing 

Members to be recalculated at any time, and to require the Clearing Members to immediately 

deposit in the Guaranty Fund any amounts required to meet the recalculated Guaranty Fund 

Deposit Requirements, taking into account the minimum deposit requirements set forth in 

subsection (b)(ii) of this Rule 301. The Corporation shall establish the Base Guaranty Fund 

Amount such that at a minimum the Corporation will maintain pre-funded financial resources 

sufficient to enable it to meet its financial obligations to Clearing Members notwithstanding a 

default by the two Clearing Members (including any of their affiliated Clearing Members) creating 
ICE Clear U.S., Inc. Rules

EXHIBIT A

22

the largest combined loss to the Corporation in extreme but plausible market conditions, 

consistent with the requirements of CFTC Commission Rules 39.11 and 39.33. 

(c) Except as provided in paragraph (b) of this Rule 301, deposits in the Guaranty Fund may 

be made by any Clearing Member in the form of cash or securities approved by the Board for this 

purpose and subject to the limitations and minimum cash deposits, if any, adopted by the Board, 

in each case as published by the Corporation in its website from time to time. Any permitted 

securities shall be valued in accordance with such methodology as may be adopted by the Board. 

The Board may place limits on the portion of any Clearing Member’s deposit that may be satisfied 

by the use of any category of permitted securities. Deposits of securities shall be made by such 

means and subject to such agreements and undertakings as may be prescribed by the 

Corporation. To the extent that any Clearing Member deposits any securities in the Guaranty 

Fund, such Clearing Member thereby represents and warrants that such securities are owned by 

it free and clear of any security interests, liens, encumbrances, charges or adverse claims of any 

kind.

(d) Guaranty Fund deposits shall be held in a bank approved for the purpose by the 

Corporation. The Corporation shall have the sole right to withdraw cash or securities from, or to 

authorize the sale or other disposition of any securities held in, such account or accounts subject 

to the rights of any assignee, pledgee or holder of a security interest in the Guaranty Fund or any 

cash or securities therein.

(e) So long as any Person is a Clearing Member and thereafter for the period until the 

Corporation returns such person's Guaranty Fund deposits as provided in paragraph (i) of this 

Rule 301, the Guaranty Fund deposits of such person may be applied by the Corporation:

(i) against any amounts that become due from such Person to the Corporation for any 

reason (including but not limited to initial margin, variation margin, option premiums, dues, 

assessment, fines and reimbursement of any amounts paid by the Corporation to a Cross 

Margining Clearing Organization under any Cross Margining Program) at any time it was a 

Clearing Member and for the period until the Corporation returns such Person’s Guaranty Fund 

deposits as provided in paragraph (i) of this Rule 301;

(ii) against any amounts that are charged as provided in or pursuant to Rule 302 against 

the Guaranty Fund deposits of all Clearing Members at any time that such Person was a 

Clearing Member and for the period until the Corporation returns such Person’s Guaranty Fund 

deposits as provided in paragraph (i) of this Rule 301; and

(iii) to provide such funds, on such terms and conditions, as the Board in its discretion, 

acting by a vote of not less than three-fourths of all Directors eligible to vote, may deem 

necessary or appropriate to facilitate the transfer of customer accounts from a Clearing 

Member experiencing financial difficulty to another Clearing Member, if the Board shall 

determine by such vote that to do so is in the best interests of the Corporation.

(f) The Corporation may at any time and from time to time assign, transfer, pledge, repledge 

or otherwise create a lien on or security interest in, the Guaranty Fund and/or the cash, securities 

and other property held in the Guaranty Fund to secure the repayment of funds borrowed by the 

Corporation (plus interest, fees and other amounts payable in connection therewith) or pursuant 

to a repurchase agreement or similar transaction. Any such borrowing or repurchase agreement 

or similar transaction shall be on terms and conditions deemed necessary or advisable by the 

Corporation (including the collateralization thereof) in its sole discretion, and may be in amounts 

greater, and extend for periods of time longer, than the obligations, if any, of any Clearing Member 

to the Corporation for which such cash, securities or other property was pledged to or deposited 

with the Corporation. Any funds so borrowed or obtained in repurchase agreements or similar 

transactions shall be used and applied by the Corporation solely for the purposes for which cash, 
ICE Clear U.S., Inc. Rules

EXHIBIT A

23

securities and other property held in the Guaranty Fund are authorized to be used pursuant to the 

By-Laws and these Rules; provided that the failure of the Corporation to use such funds in 

accordance with this subsection shall not impair any of the rights or remedies of any assignee, 

pledgee or holder of any such lien or security interest or repurchase transaction counterparty. 

Cash, securities and other property held in the Guaranty Fund, subject to the rights and powers 

of the Corporation with respect thereto as set forth in the By-Laws, these Rules and any 

agreements between any Clearing Member and the Corporation, and subject to the rights and 

powers of any person to which the Guaranty Fund or any cash, securities or other property held 

therein shall have been assigned, transferred, pledged, repledged or otherwise subjected to a 

lien or security interest, shall remain the property of the respective Clearing Members depositing 

such cash securities and other property.

(g) Subject to the rights of any assignee, transferee, pledgee or holder of a lien or security 

interest as provided in subsection (f) of this Section Rule 301, if at any time the amount of any 

cash, plus the value of any securities, on deposit in the Guaranty Fund for any Clearing Member

(i) shall exceed the amount required to be on deposit for such Clearing Member by more 

than such amount as the Board may prescribe, the Corporation will return the excess to such 

Clearing Member upon its written request.

(ii) shall be less than the amount required to be on deposit for such Clearing Member, such 

Clearing Member shall restore the deficiency (including, without limitation, a deficiency caused 

by the application of such Clearing Member's deposits in the Guaranty Fund as described in 

paragraph (e) of this Rule 301) on demand (“Replenishment”); provided, however, that a 

Clearing Member that has withdrawn as a Clearing Member shall not be required to restore a 

deficiency occurring after its Withdrawal Date, subject to any limitations in Rule 303 and Rule 

212.

(h) Any interest earned on any securities deposited in the Guaranty Fund by a Clearing 

Member shall belong and be credited to such Clearing Member, subject to any fees or charges in 

respect thereof owed by the Clearing Member in accordance with the Corporation’s policies and 

procedures. The Corporation may invest any cash deposited in the Guaranty Fund in securities 

which are Government Securities and other securities in accordance with the Corporation’s 

investment policies and applicable law, and may engage in repurchase transactions with any cash 

or securities on deposit. Any interest, capital gain or other income earned on any such 

investments in securities shall belong and be credited to the Corporation (but without prejudice to 

any rate of return paid by the Corporation on cash deposited in the Guaranty Fund).

(i) Subject to the rights of any assignee, transferee, pledgee or holder of a lien or security 

interest as provided in subsection (f) of this Rule 301, whenever a Person ceases to be a Clearing 

Member, the Corporation shall return to such Person the amount of cash and securities on deposit 

in the Guaranty Fund for such Person, to the extent not charged to or applied against pursuant to 

this Section or otherwise under the By-Laws and these Rules, in accordance with Rule 212.

(j) If the Guaranty Fund or any part thereof is lost as a result of the insolvency of any bank or 

other depository, embezzlement, defalcation or any reason other than use pursuant to Rule 302, 

such loss may, in the discretion of the Board, be restored by application of the following sources 

of funds in the order listed (each such source to be fully utilized before the next following source 

is applied):

(i) such portion, if any, of the surplus of the Corporation as the Board determines to be 

available for such purpose; and

(ii) assessments levied by the Corporation upon the Clearing Members, which assessments 

shall be paid to the Corporation at such time and in such manner as the Board may specify, 

which shall be no later than the normal end of day settlement time for the Business Day on 
ICE Clear U.S., Inc. Rules

EXHIBIT A

24

which such assessment is levied. The amount of a Clearing Member's assessment shall be 

the amount derived by multiplying the loss by a fraction, the numerator of which shall be such 

Clearing Member’s Guaranty Fund Deposit Requirement on the day preceding the loss and 

the denominator of which shall be the total amount of the Guaranty Fund Deposit 

Requirements on such day of all Clearing Members other than Defaulting Clearing Members.

(k) In the event that the Corporation accepts a transfer of cash or securities from a guaranty 

fund of any other clearing organization of which a Clearing Member is or was a member to satisfy 

in whole or in part the obligations of such Clearing Member to deposit and maintain funds in the 

Guaranty Fund, the Corporation shall (to the extent of the amount of the cash and the value of 

the securities so transferred) guaranty payment by such Clearing Member to such clearing 

organization of any amount, the payment of which would have been secured by such Clearing 

Member's deposit in the guaranty fund of such other clearing organization. If the Corporation is 

required to make any payment pursuant to such guaranty as to any Clearing Member, the 

Corporation may withdraw the amount thereof out of the Guaranty Fund, and such Clearing 

Member will restore the amount so withdrawn on demand.

(l) In the event that the Guaranty Fund or any part thereof shall have been applied as described 

in paragraph (e) of this Rule 301 or shall have been lost as described in paragraph (j) of this Rule 

301, and the Corporation shall thereafter recover any amount so applied or lost from any Person 

liable therefor, the amount of such recovery (after deducting any expenses (including without 

limitation legal fees and expenses incurred in connection therewith) shall be credited to the 

Guaranty Fund deposits of each Clearing Member in that proportion which the amount required 

to be on deposit by such Clearing Member bears to the amount required to be on deposit by all 

Clearing Members as of the date upon which such application took place or such loss was 

incurred.

(m) Any expense (including without limitation legal fees and expenses) incurred by the 

Corporation in connection with the deposit by a Clearing Member of assets into the Guaranty 

Fund, or the return thereof to such Clearing Member, may at the option of the Corporation be 

charged to such Clearing Member.

(n) Notwithstanding anything to the contrary herein (but subject to subsection (j)(i) of this Rule 

301 above), the Corporation shall not be liable if (1) the Guaranty Fund or any part thereof and/or 

(2) any margin (whether for the house or customer account) or other assets provided by or held 

for the account of a Clearing Member are lost or decrease in value as a result of the (A) insolvency 

or failure of any bank or other depository or third party settlement system, (B) embezzlement, 

defalcation or theft by any person (other than the Corporation or its Directors, officers, employees 

or representatives) or (C) any other reason other than use pursuant to the By-Laws or Rules. 

Nothing in this paragraph (n) of Rule 301 will limit any liability of the Corporation for its own 

gross negligence or willful misconduct. 

Rule 302. Monetary Defaults; Use of Guaranty Fund; Assessments

(a) If any Clearing Member fails to deposit with, or pay to, the Corporation in full any initial 

margin, variation margin, option premium, Guaranty Fund contribution, Assessment or other sum 

(not including any dues or fines) under or in connection with any Contract, or fails to satisfy any 

reimbursement obligation to the Corporation in full under or in connection with any Cross 

Margining Program, when and as required by or pursuant to the rules of the Listing Exchange, 

the Rules of the Corporation or the terms of any Cross Margining Program, the Corporation may 

determine that such failure shall constitute a “Monetary Default.” All amounts owing by the 

Defaulting Clearing Member (as defined below), as well as any amounts owing by the Corporation 

arising out of or in any way relating to the Defaulting Clearing Member’s Monetary Default shall 

constitute the “Defaulted Obligation” in respect of such Clearing Member. The Defaulted 
ICE Clear U.S., Inc. Rules

EXHIBIT A

25

Obligation of a Clearing Member shall be determined separately in respect of Digital Currency 

Contracts and Standard Contracts. If and at such times as the Corporation has in effect a 

procedure whereby deposits or payments of sums with or to the Corporation are effected by 

having the Corporation instruct the Clearing Members' banks to wire transfer funds from their 

accounts with such banks directly to the accounts of the Corporation, a Clearing Member shall be 

deemed to have failed to deposit or pay any sum when and as required if such Clearing Member's 

bank fails so to wire transfer funds when and as instructed by the Corporation. For the avoidance 

of doubt, failure by a Clearing Member to perform a physical settlement obligation in respect of a 

combined contract pursuant to Rule 602(c) will not itself constitute a Monetary Default, and the 

Defaulted Obligation does not include obligations owing by the Defaulting Clearing Member in 

respect of a physical settlement for which the Corporation is not responsible under Rule 602.

(b) In the event that at any time a Monetary Default occurs on the part of any Clearing Member 

(the “Defaulting Clearing Member”), then the following assets shall be applied to the Defaulted 

Obligation in respect of Standard Contracts and Digital Currency Contracts, in the following order 

of priority:

(i) If and to the extent a Monetary Default relates to a Contract carried in any customer 

account carried by the Corporation for a Defaulting Clearing Member, the Guaranty Fund 

deposit, margin and other assets held by the Corporation for all house accounts of the 

Defaulting Clearing Member shall be applied, and if the President, with the concurrence of the 

Chair, or, in the absence of the Chair, three (3) Directors, at least one (1) of whom is not an 

employee of the Corporation or an employee of any Affiliated Person of the Corporation, so 

determines, the margin held by the Corporation for all customer accounts of the Defaulting 

Clearing Member may be applied, to pay the Defaulted Obligation. 

(ii) If and to the extent a Monetary Default relates to a Contract carried in any house account 

carried by the Corporation for a Defaulting Clearing Member, the Guaranty Fund deposit, 

margin and such other assets as are held for the same or any other house account of the 

Defaulting Clearing Member, shall be applied to pay the Defaulted Obligation. 

(iii) The Defaulting Clearing Member shall immediately restore any deficiencies in its margin 

and Guaranty Fund deposits resulting from any such application pursuant to paragraph (i) or 

(ii).

Where there are Defaulted Obligations in respect of both Standard Contracts and Digital 

Currency Contracts, the resources of the Defaulting Clearing Member described in this clause (b) 

shall be applied to such obligations in accordance with the Corporation’s procedures.

(c) If, after the application of funds in accordance with paragraph (b) of this Rule 302, the 

Defaulted Obligation in respect of Standard Contracts and/or Digital Currency Contracts has not 

been satisfied, and if the Defaulting Clearing Member fails to pay the Corporation the amount of 

the deficiency on demand, such Defaulting Clearing Member shall continue to be liable therefor, 

but the amount of the deficiency, until collected from the Defaulting Clearing Member, shall be 

met from the following sources of funds, provided, however, that (A) the sources identified in 

subparagraphs (i), (ii), (iii), (iv) and (v) shall be fully utilized before the sources identified in 

subparagraphs (vi), (vii) and (viii) may be utilized; (B) the sources identified in subparagraphs (vi), 

(vii) and (viii) must be applied in the order listed (each such source to be fully utilized before the 

next following source is applied); and (C) notwithstanding clause (B), that the Corporation may, 

in its discretion, use sources identified in subparagraph (vii) and (viii) (in such order) prior to 

receipt of proceeds due pursuant to subparagraph (vi), provided that any proceeds subsequently 

received pursuant to subparagraph (vi) will be used to reimburse the sources of such assets used 

under subparagraph (vii) and (viii) (in the reverse order in which such assets were applied):
ICE Clear U.S., Inc. Rules

EXHIBIT A

26

(i) such portion, if any, of the surplus of the Corporation as the Board determines to be 

available for such purpose;

(ii) if the President, with the concurrence of the Chair, or, in the absence of the Chair, any 

Director, so determines, a loan or repurchase agreement or similar transaction on such terms 

and conditions as they may determine to be necessary or appropriate (including without 

limitation granting an assignment, pledge or other lien on or security interest in the Guaranty 

Fund or the cash, securities and other property held in the Guaranty Fund or transferring such 

cash, securities or other property as provided in paragraph (f) of Rule 301);

(iii) if, and to the extent that, a Monetary Default relates to any Contract carried in any 

customer account carried by the Corporation for the Defaulting Clearing Member, the initial 

margin on deposit with the Corporation in all such customer accounts of the Defaulting Clearing 

Member to the extent that such deposits have not been applied pursuant to paragraph (b)(i) 

hereof (which margin shall be allocated between the Defaulted Obligation in respect of 

Standard Contracts and Digital Currency Contract in accordance with the Corporation’s 

procedures);

(iv) only if, after the application of assets available for such purpose in accordance with 

subparagraphs (i)-(iii), the Defaulted Obligation in respect of Digital Currency Contracts has 

not been satisfied, the DC ICUS Contribution (but only to the extent of the unsatisfied Defaulted 

Obligation in respect of Digital Currency Contracts).

As used in this clause (iv), the “DC ICUS Contribution” shall be a commitment of the 

Corporation to provide $15 million in the aggregate as resources to be applied in respect of the 

Defaulted Obligation for Digital Currency Contracts pursuant to Rule 302(c)(iv). If the DC ICUS 

Contribution is so applied, the Corporation may in its discretion replenish the DC ICUS 

Contribution (but will have no obligation to do so)

(v) on a pro rata basis, the Corporation Priority Contribution and all Listing Exchange Default 

Contributions.

As used in this clause (v), the “Corporation Priority Contribution” shall be a commitment 

of the Corporation to provide $50 million in the aggregate as resources to be applied pursuant 

to this subsection (c)(v) of Rule 302. If the Corporation Priority Contribution is applied, the 

Corporation will have no obligation to provide additional funds to replenish such contribution 

or otherwise provide additional funds in respect thereof;

(vi) insurance proceeds, if any, received by the Corporation in connection with the Monetary 

Default giving rise to the Defaulted Obligation (it being understood that the Corporation shall 

not be obligated to obtain or maintain any insurance policy with respect to Monetary Defaults 

by Clearing Members);

(vii) subject to subsection (g)(ii) of Rule 301, paragraph (d) of Rule 302 and any applicable 

default auction priority set forth in any Default Auction Procedures adopted under these Rules 

(“Default Auction Priority”), the Guaranty Fund; and

(viii) assessments levied by the Corporation upon all the Clearing Members (other than the 

Defaulting Clearing Member) as hereafter provided in this Rule 302 (“Assessments”), subject 

to any applicable Default Auction Priority.
ICE Clear U.S., Inc. Rules

EXHIBIT A

27

The total amount to be assessed at any one time pursuant to clause (viii) of this paragraph (c) is 

hereinafter called an “Assessment Amount.” For the avoidance of doubt, the Corporation may 

at any time following the occurrence of a Monetary Default and in anticipation of any charge 

against the Guaranty Fund make Assessments upon Clearing Members to post Assessments, 

subject to the limitations set forth in these Rules in respect of such Assessments.

For the avoidance of doubt, the resources described in the above subparagraphs of this Rule 

302(c) (other than subparagraph (iv)) will be applied to the Defaulted Obligation in respect of both 

Standard Contracts and Digital Currency Contracts.

(d) The amount of a Replenishment that each Clearing Member must deposit in the Guaranty 

Fund to satisfy its obligation, pursuant to subsection (g)(ii) of Rule 301, to restore the Guaranty 

Fund deficiency in the event of the application of some part or all of the Guaranty Fund pursuant 

to subsection (c)(vii) of this Rule 302 (the total Guaranty Fund amount so applied referred to 

herein as the “Aggregate Guaranty Fund Deficiency”), shall be determined by multiplying the 

Aggregate Guaranty Fund Deficiency by a fraction, the numerator of which shall be the amount 

of the Clearing Member’s Guaranty Fund Deposit Requirement as of the time immediately prior 

to the Monetary Default that resulted in the Replenishment, and the denominator of which shall 

be the total of the Guaranty Fund Deposit Requirements as of such time for all Clearing Members 

(other than defaulting Clearing Members). The resulting product shall constitute the amount of 

the Replenishment that each Clearing Member must restore to the Guaranty Fund pursuant to 

paragraph (g) of Rule 301 as a result of the application of the Guaranty Fund pursuant to 

subsection (c)(vii) of this Rule 302. 

(e) The amount of any Assessment pursuant to Rule 302 shall be computed by multiplying the 

Assessment Amount by a fraction, the numerator of which shall be the amount of the Clearing 

Member’s Guaranty Fund Deposit Requirement as of the time immediately prior to the Monetary 

Default that resulted in the Assessment, and the denominator of which shall be the total of the 

Guaranty Fund Deposit Requirements as of such time for all Clearing Members (other than 

Defaulting Clearing Members) being assessed. The resulting product shall constitute the amount 

of the Assessment to be levied on such Clearing Member pursuant to this paragraph (e). 

(f) If the Assessment as determined pursuant to paragraph (e) of this Rule 302 would exceed 

the maximum set forth in paragraph (g) of this Rule 302, or if the amount assessed against any 

Clearing Member shall exceed the amount paid by such Clearing Member, the excess shall be 

assessed against the other Clearing Members (other than the Defaulting Clearing Member and 

any Clearing Member that shall have been assessed the maximum permitted by paragraph (g)) 

in accordance with such subparagraph (e), as if the excess were the Assessment Amount. 

Assessments pursuant to this paragraph (f) shall be repeated until the entire Assessment Amount 

shall have been assessed, subject to the maximum limitations on Assessments set forth herein. 

(g) Notwithstanding anything to the contrary herein, no Clearing Member (other than a 

Defaulting Clearing Member) shall be liable to provide Assessments as a result of charges or 

applications against the Guaranty Fund in respect of a single Monetary Default of another 

Clearing Member in an amount exceeding 200% of its Guaranty Fund Deposit Requirement. 

(h) If in any case, because of the limitations contained in paragraph (g) of this Rule 302 or Rule 

303, the maximum permitted Assessments are less than the Assessment Amount, the Board shall 

determine what if any further action to take, provided that under no circumstances may the Board 

levy Assessments on any Clearing Member that would exceed such limitations.

(i) Subject to the conditions set forth in Rule 303, a Person which withdraws as a Clearing 

Member shall be subject only to assessments imposed to meet:
ICE Clear U.S., Inc. Rules

EXHIBIT A

28

(i) Monetary Defaults occurring prior to the Clearing Member’s Withdrawal Date, subject to 

the limitations contained in paragraph (g) of this Rule 302; 

(ii) assessments levied under paragraph (j) of Rule 301 prior to the Clearing Member’s 

Withdrawal Date; and

(iii) the first Monetary Default, if any, occurring during the period from and after the Clearing 

Member’s Withdrawal Date and prior to the Contribution Return Date, subject to the limitations 

contained in paragraph (g) of this Rule 302.

(j) All Assessments shall be due and payable within such time as the Corporation may 

prescribe, which shall be no later than the normal end of day settlement time for the Business 

Day on which such assessment is levied. If any Person shall not pay any Assessment when due, 

such Person shall continue to be liable therefor, but the Corporation may assess the Clearing 

Members (other than such Person, the Defaulting Clearing Member and any Clearing Member 

that shall have been assessed the maximum amount permitted by paragraph (g)) for the unpaid 

amount in accordance with paragraphs (e) and (f) of this Rule 302, subject to the limitations set 

forth herein.

(k) If, after applying any amounts pursuant to paragraph (c) to meet any Defaulted Obligation 

in respect of a Defaulting Clearing Member as referred to in paragraph (c), or applying any 

Assessments to meet any Assessment not paid as referred to in paragraph (j), the Corporation 

collects the amount of such Defaulted Obligation or such unpaid Assessment in whole or in part 

from the Person or Persons liable therefor, the Corporation shall apply the amount so collected 

(net of any expenses, including without limitation any legal fees incurred in connection therewith) 

to reimburse the Clearing Members and/or the Corporation whose resources were so applied, in 

each case in the reverse order from the order in which such resources were applied under 

paragraph (c) or (j), as applicable, and in proportion to the amount applied. To the extent 

necessary for this purpose, each Clearing Member authorizes and appoints the Corporation to 

pursue any collections or recoveries on its own behalf and on behalf of the Clearing Members.

(l) The Corporation shall exercise the same degree of care in the administration, enforcement 

and collection of any claims against a Defaulting Clearing Member, any related guarantor, or its 

or their insolvency estate with respect to any Defaulted Obligation, unpaid Assessment or other 

deficiency of the Defaulting Clearing Member to the Corporation (such claims, “Defaulting 

Clearing Member Claims”) as it exercises with respect to its own assets that are not subject to 

allocation pursuant to paragraph (k) above. In furtherance of the foregoing, the Corporation may 

determine, in its reasonable discretion, whether or not to commence, continue, maintain, sell, 

dispose of or settle or compromise any litigation, arbitration or other action with respect to any 

Defaulting Clearing Member Claim, without the consent of any Clearing Member or other person.

The Corporation shall not be liable for losses arising from any error in judgment or for any action 

taken or omitted to be taken by it with respect to Defaulting Clearing Member Claims, except for 

such losses that result from the Corporation’s gross negligence or willful misconduct. The 

Corporation may, in its discretion, assign to Clearing Members any Defaulting Clearing Member 

Claim, in whole or in part, and such assignment shall satisfy in full the Corporation’s obligations 

under Rule 302(k) and (l) with respect to any such claim (or portion thereof) or recoveries 

therefrom.

Rule 303. Cooling-off Periods

(a) The following terms shall have the following meanings:

Cooling-off Period

The period commencing on the date of the Cooling-off Period Trigger Event and terminating 

30 Business Days thereafter. A Cooling-off Period shall be automatically extended if a 
ICE Clear U.S., Inc. Rules

EXHIBIT A

29

subsequent Cooling-off Period Trigger Event occurs 30 or fewer Business Days after the 

previous Cooling-off Period Trigger Event, in which case the Cooling-off Period will be 

extended until the date falling 30 Business Days after such subsequent Cooling-off Period 

Trigger Event.

Cooling-off Period Trigger Event

(i) Any call for an Assessment to be made pursuant to paragraph (e) of Rule 302 arising 

from a Monetary Default or Monetary Defaults; or (ii) the occurrence of a Sequential Guaranty 

Fund Depletion.

Cooling-off Termination Period

The period commencing on the date of each Cooling-off Period Trigger Event and 

terminating 10 Business Days thereafter; provided that if one or more subsequent Cooling-off 

Period Trigger Events occur during a Cooling-off Termination Period, the Cooling-off 

Termination Period will be extended until the date that is 10 Business Days after the last such 

event. 

Sequential Guaranty Fund Depletion

In respect of a particular Clearing Member that is not a Defaulting Clearing Member, the 

occurrence of circumstances in which: (i) there have been two or more Monetary Defaults 

relating to different Clearing Members within a period of 30 or fewer Business Days; (ii) 

contributions to the Guaranty Fund from non-Defaulting Clearing Members have been applied 

in respect of at least two such Monetary Defaults; and (iii) the total amount of Replenishments 

that the Clearing Member has as a result paid to the Corporation to replenish its contributions 

to the Guaranty Fund exceeds its Guaranty Fund Deposit Requirement prior to the first such 

Monetary Default. 

(b) Upon the occurrence of any Cooling-off Period Trigger Event, the Corporation shall issue 

a notice to Clearing Members of the commencement of the Cooling-off Period, setting out the 

date on which such period is scheduled to end (and the date on which the Cooling-off Termination 

Period is scheduled to end).

(c) From the commencement of, and solely for the duration of, the Cooling-off Period: 

(i) The obligation to provide Replenishments under subsection (g)(ii) of Rule 301 and 

paragraph (d) of Rule 302 shall continue to apply to a Clearing Member during the Coolingoff Period, subject to Rule 303(c)(ii); 

(ii) The aggregate of all Assessments due under paragraph (e) of Rule 302 from a Clearing 

Member for all Monetary Defaults occurring or declared during the Cooling-off Period (or 

resulting in the Cooling-off Period) and all Replenishments due under subsection (g)(ii) of Rule 

301 and paragraph (d) of Rule 302 shall not exceed 550% of the amount of the Clearing 

Member's Guaranty Fund Deposit Requirement immediately prior to the occurrence of the 

Monetary Default or Monetary Defaults as a result of which the Cooling-off Period commenced 

(with any Assessments or Replenishments levied in respect of the Monetary Default or 

Monetary Defaults as a result of which the Cooling-off Period commenced being counted 

towards such maximum amount) (the “Maximum Aggregate Cooling-off Period 

Contribution”). A Clearing Member that has provided Assessments and/or Replenishments 

in such maximum amount in respect of a Cooling-off Period shall not be liable for any further 

Replenishments of its contributions to the Guaranty Fund or Assessments in respect of any 

Monetary Default or Monetary Defaults occurring or declared during such Cooling-off Period, 

regardless of how many additional Monetary Defaults take place in such period; 
ICE Clear U.S., Inc. Rules

EXHIBIT A

30

(iii) For the avoidance of doubt, the per Monetary Default cap on Assessments set forth in 

paragraph (g) of Rule 302 shall apply in respect of each Monetary Default occurring or declared 

during the Cooling-off Period; and

(iv) During the Cooling-off Period, the Corporation may rebalance, re-set or recalculate 

Guaranty Fund Deposit Requirements to the Guaranty Fund or the total required contribution 

amount for purposes of determining liability for Replenishments or Assessments during the 

Cooling-off Period; provided that such adjustments will not affect the Maximum Aggregate 

Cooling-off Period Contribution or the other limitations provided in Rule 303(c)(ii);

provided, further, that the limits set out in this paragraph (c) of Rule 303 shall only apply with 

respect to a Clearing Member if such Clearing Member continues during the Cooling-off Period 

to pay the Corporation all other amounts when owed by it in all material respects (subject to 

the limitations set out in this paragraph (c) of Rule 303). 

(d) Intentionally omitted.

(e) At the end of the Cooling-off Period (but subject to Rule 212 for Clearing Members that 

have served a Withdrawal Notice during or prior to the Cooling-off Termination Period), the 

restrictions and requirements of paragraph (c) of this Rule 303 shall cease to apply (other than 

the limitation on Assessments for Monetary Defaults occurring or declared during the Cooling-off 

Period).

(f) (i) Nothing in this Rule 303 shall alter the Corporation’s right to call for margin from any 

Clearing Member. 

(ii) In addition to any margin otherwise required by the Corporation under the Rules, if during 

the Cooling-off Period a Clearing Member has provided Replenishments and/or Assessments in 

the aggregate equal to its Maximum Aggregate Cooling-off Period Contribution, then if such 

Clearing Member would, but for the provisions of Rule 303(c), at any time be required to provide 

a Replenishment, such Clearing Member shall provide to the Corporation, by the open of business 

on the Business Day following request by the Corporation and maintain with the Corporation 

during the remainder of the Cooling-off Period, additional initial margin (in addition to the initial 

margin otherwise required with respect to its open positions) in an amount determined by the 

Corporation based on the amount of additional initial margin needed for the Corporation to 

maintain compliance with applicable minimum regulatory financial resources requirements during 

the remainder of the Cooling-off Period. Such additional initial margin shall be calculated 

separately with respect to each of the house account and the customer account, on a net basis 

in each case, but in both cases shall be charged to the house account.
ICE Clear U.S., Inc. Rules

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Part 4

Clearing Mechanism

Rule 401. Acceptance for Clearance

(a) The Corporation, by accepting a Contract offered to it for clearance by or on behalf of a 

Clearing Member, shall assume, in the place of each Clearing Member that is a party to such 

Contract, all liabilities and obligations imposed thereby to the Clearing Member that is the other 

party thereto, to the extent provided in Rule 401(b), and shall succeed to and become vested with 

all rights and benefits accruing therefrom. Such assumption by the Corporation shall terminate all 

liabilities and obligations of the Clearing Member whose Contract is so accepted to the other 

Clearing Member which was a party to such Contract.

(b) THE LIABILITIES AND OBLIGATIONS OF THE CORPORATION ARISING PURSUANT 

TO RULE 401(a) SHALL BE SUBJECT TO THE FOLLOWING LIMITATIONS:

(i) SUCH LIABILITIES AND OBLIGATIONS SHALL EXTEND ONLY TO CLEARING 

MEMBERS. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE 

CORPORATION SHALL NOT HAVE ANY LIABILITY OR OBLIGATION ARISING OUT OF OR 

WITH RESPECT TO ANY CONTRACT TO ANY CUSTOMER OF A CLEARING MEMBER OR 

ANY EXCHANGE MEMBER WHICH ACTED AS A BROKER FOR A CUSTOMER OR A 

CLEARING MEMBER; AND

(ii) THE OBLIGATIONS OF THE CORPORATION IN RESPECT OF DELIVERY OR 

RECEIPT OF ANY COMMODITY SHALL BE LIMITED TO THOSE SET FORTH IN CHAPTER 

6 OF THESE RULES. 

(c) For the avoidance of doubt, where a Clearing Member clears a Contract for a customer, 

such Clearing Member becomes liable to the Corporation and the Corporation liable to such 

Clearing Member as if the Contract were for the house account of the Clearing member, subject 

in all cases to the provisions of these Rules applicable to customer positions.

Rule 402. Trade Data Submission

(a) The Corporation shall accept for clearance any Contract which has been matched by the 

Listing Exchange and has been submitted for clearance by or for such Exchange on behalf of the 

Clearing Members that are the parties thereto. The Corporation shall not accept for clearance any 

Contract or any transaction submitted to it by any person other than the Listing Exchange or its 

designated agent, except for transfers of Contracts and mechanical adjustments effected in 

accordance with any rules of the Listing Exchange, these Rules or the procedures of the 

Corporation permitting the submission thereof by persons other than the Listing Exchange.

(b) A Contract which has been matched by the Listing Exchange and has been submitted for 

clearance by or on behalf of any Clearing Member shall be deemed accepted by the Corporation 

for clearance when both Clearing Members have accepted the Contract for clearing. The 

Corporation shall have no liability or obligation to any Clearing Member or other person with 

respect to any Contract which has not been accepted by it for clearance. Notwithstanding the 

foregoing, the Corporation shall not be deemed to have accepted a Contract that is the subject of 

an exchange of futures for related position or block trace (as permitted under the rules of the 

Listing Exchange), mechanical adjustment or a transfer unless and until each Clearing Member 

shall have met the initial and variation margin obligations applicable to such Contract.

(c) The Corporation shall be entitled to rely conclusively on the accuracy and authenticity of 

any information regarding any Contract submitted to the Corporation by the Listing Exchange on 
ICE Clear U.S., Inc. Rules

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behalf of any Clearing Member, whether or not the Clearing Member in fact authorized the 

submission of such Contract for clearance.

(d) All Contracts accepted for clearance by the Corporation shall be subject in all respects to 

the By-Laws and these Rules.

(e) Except as otherwise provided in the rules or procedures of the Corporation, any trade in a 

Contract which, on any day, is matched by the Listing Exchange but not accepted for clearance 

by the Clearing Member designated to clear such Contract, shall be automatically cleared to the 

account of the Clearing Member which has guaranteed the Listing Exchange member or 

electronic user with direct access who executed such trade on the day the trade was matched, 

provided that such guarantee has not been terminated in accordance with the rules of such Listing 

Exchange.

Rule 403. Daily Reporting of Open Contracts

(a) Each Clearing Member shall report its open interest to the Corporation as follows:

(i) By 7:30 p.m. (or by such other time as may be prescribed by the President) of each 

Clearing Day, it shall report to the Corporation its open interest in all Contracts, except that 

during the notice period for any delivery month under any futures contract, any Clearing 

Member carrying futures contracts for delivery in that delivery month shall report its open 

interest in such futures contracts at such time on each Business Day as may be prescribed 

by the President; and

(ii) By 9:00 a.m. (or at such other time as the President may prescribe) of each Clearing

Day, it shall report to the Corporation any adjustments to be made in the open interest reported 

on the previous Clearing Day.

(iii) The Corporation shall use the open interest reported pursuant to subparagraph (i) for all 

purposes, and shall use the adjustments reported pursuant to subparagraph (ii) solely for the 

purpose of enabling the Listing Exchange to publish the open interest in all outstanding 

Contracts.

(b) If the account of any customer carried by any Clearing Member (other than on an omnibus 

basis) has a long and short position in the same delivery month, the Clearing Member must 

determine, in accordance with applicable law, whether such positions should be reported on a net 

or gross basis. If the account of any customer carried by any Clearing Member (other than on an 

omnibus basis) or if any house account of any Clearing Member has a long and short position in 

the same delivery month in Contracts which are identical except for the size of the unit of trading 

and which are identified by the Corporation as fungible, the Clearing Member may cause the 

positions to be offset and report as open interest only the net position of such customer or house 

account for the contract in which a position remains. Positions which have been reported on a net 

basis may not be re-opened other than by trading, unless authorized by the Corporation in writing.

(c) If a Clearing Member discovers an error in any report made pursuant to this Rule 403, 

such Clearing Member shall as soon as practicable submit to the Corporation and the Listing 

Exchange a correction and a written statement as to how the error occurred.

Rule 404. Reporting of Exchange Positions Carried by Other Firms

(a) Upon request of the Corporation, if a Clearing Member has customer or house positions in 

any Contract carried for it by another Clearing Member or by a futures commission merchant 

which is not a Clearing Member, the Clearing Member first referred to shall:

(i) Give written notice to the Corporation of the name of such other Clearing Member or 

futures commission merchant not later than the close of business on the first day any such 

position is carried by such other Clearing Member or futures commission merchant; and
ICE Clear U.S., Inc. Rules

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(ii) If any such position is being carried or maintained by a futures commission merchant 

which is not a Clearing Member, provide to the Corporation, on each Clearing Day, by the time 

specified by the Corporation for the purpose, the information specified in Rule 404(b) 

concerning any such position.

(b) Upon request of the Corporation, each Clearing Member shall report to the Corporation, on 

each Clearing Day, by the time specified by the Corporation for the purpose, in such manner as 

may be prescribed by the Corporation, the number of long and short open positions in each 

Contract for each expiration month which such Clearing Member is carrying for any other Clearing 

Member as of the close of business on the preceding Clearing Day. Each such report shall 

separately specify positions carried for such other Clearing Member's house account and 

customer account.

Rule 405. Transfers of Open Positions

Any transfer of a Contract shall be subject to the following:

(a) if the transferor shall have been declared to be in default, transfers may only be effected at 

the current day's settlement price unless the Corporation in its discretion determines that, because 

of excess margin on deposit or for other sufficient reason, accepting the transfer at other prices 

permitted by Exchange rules would not jeopardize the Corporation;

(b) if, in any case, the Corporation in its discretion determines that it would be contrary to the 

best interests of the Corporation to accept a transfer at a price other than the current day's 

settlement price, it may, notwithstanding any provision to the contrary in the Exchange rules, 

require such transfer to be effected at such settlement price; and

(c) subject to the limitations of Exchange Rule 4.37, after receipt of a valid instruction from a 

Clearing Member issued at the request of a customer that is not currently in default to it (the 

“Carrying Clearing Member”) to transfer all or a portion of the customer’s account to another 

Clearing Member (the “Receiving Clearing Member”), and provided that such instruction 

contains such information as is required by the Corporation concerning the customer and the 

Contracts to be transferred, the Corporation shall effect such transfer without requiring the prior 

close-out and re-booking of the Contracts so long as (i) the Receiving Clearing Member agrees 

to accept the transfer, (ii) the transferred Contracts will have appropriate margin at the Receiving 

Clearing Member and (iii) any remaining Contracts in the customer’s account at the Carrying 

Clearing Member will have appropriate margin.

Rule 406. RESERVED

Rule 407. Exercise of Options

(a) Any exercise of any option which is a Contract shall be made in accordance with these 

Rules and the rules of the Listing Exchange for such option.

(b) Any Clearing Member which has, or carries an account which has, an open long option 

position may issue an exercise notice with respect to each open long option in such form and by 

such time as the Corporation may prescribe.

(c) After the close on the last day of trading in any option, the Corporation will automatically 

exercise any open long option that has a striking price below (in the case of a call option) or above 

(in the case of a put option) the Settlement Price of the underlying futures contract or spread as 

determined by the Listing Exchange (without regard to whether the Corporation may use any 

other Settlement Price for any other purpose) on that day by an amount which equals or exceeds 

the minimum price increment permitted under the rules of the Listing Exchange for such option or 

such other differential as may from time to time be established by the Corporation for such option, 

unless, by such time as may be specified by the Corporation, the Clearing Member carrying any 
ICE Clear U.S., Inc. Rules

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34

such option gives the Corporation instructions by electronic communication that any such option 

is to expire unexercised.

(d) The Corporation will assign exercise notices among Clearing Members which have, or carry 

accounts which have, open short positions in the option series being exercised, in such manner 

as the Corporation shall prescribe in proportion to their gross short positions in such options, 

separately for customer and house accounts.

(e) Upon exercise of any option on a futures contract, the Corporation shall make the entries 

on its books to convert each such exercised option into the underlying futures contract or futures 

contracts, or to effect cash settlement of such exercised option, as may be provided herein or by 

the Listing Exchange for such option.

(f) Any Clearing Member that is assigned an exercise notice pursuant to any option on a futures 

contract must deposit and pay any initial margin and variation margin required for the underlying 

futures contract on the next Business Day at or before the time prescribed by the Corporation.

(g) EXCEPT AS PROVIDED IN THIS RULE 407, THE CORPORATION SHALL NOT HAVE 

ANY OBLIGATIONS WITH RESPECT TO ANY EXCHANGE OPTION THAT IS EXERCISED.
ICE Clear U.S., Inc. Rules

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35

Part 5

Margins, Premiums and Other Payments

Rule 501. RESERVED

Rule 502. Margin and Premium Requirement; Additional Margin

(a) Each Clearing Member shall deposit with or pay to the Corporation initial margin, variation 

margin and option premiums for each cleared Contract in such amounts, in such forms, at such 

times and in accordance with such systems as may be prescribed by or pursuant to these Rules

or the Corporation’s policies in respect thereof. 

(b) Clearing initial margin requirements shall be as determined by the staff of the Corporation 

from time to time. In order to comply with CommissionCFTC Regulation 39.13(g)(8)(ii), Clearing 

Members shall identify categories of customers with heightened risk profiles and collect initial 

margin for each account, at a level that exceeds the clearing initial margin requirement determined 

by the Corporation, by an amount commensurate with the risk presented by each account. Unless 

otherwise determined by the Board at any time, initial margin requirements shall be determined 

in accordance with the applicable margin policies of the Corporation as implemented from time to 

time.

(c) Whenever the President concludes that unstable conditions relating to one or more 

Contracts exist, or that the maintenance of an orderly market or the preservation of the fiscal 

integrity of the Corporation requires additional initial margin, or that any Clearing Member is 

carrying Contracts or incurring risks in its house, customer and/or cross-margining account(s) that 

are larger than is justified by the financial and/or operational condition of the Clearing Member, 

the President may require additional initial margin to be deposited with the Corporation within 

such time as may be specified by the President, or limit withdrawals of excess initial margin on 

deposit from such Clearing Member for such time as may be specified by the President. Such 

additional margin may be for one or more Contracts from one or more Clearing Members and for 

long, short or both positions.

(d) The Corporation shall retain the amount of initial margin deposited with respect to any 

Contract for which a delivery notice has been issued until such time as provided for in the 

applicable Exchange Rules or Part 6 of these Rules (or if not so provided, until all delivery and 

payment obligations in respect of such contract have been satisfied in full).

(e) The methodology for determining initial margin shall incorporate, among other relevant 

factors, and as more fully specified by the Corporation from time to time:

(i) a minimum 2-day time horizon for the liquidation period with respect to the house

account of each Clearing Member, calculated on a net basis, and 

(ii) one or more measures designed to limit procyclicality, including by mitigating when 

possible disruptive or big step changes in margin requirements and by establishing 

procedures for computing margin requirements that include measures designed to limit 

procyclicality, as more fully specified by the Corporation from time to time. These will 

include measures that are equivalent to at least one of the following: (A) measures 

applying a margin buffer at least equal to 25% of the calculated margins, which the 

Corporation allows to be temporarily exhausted in periods where calculated margin 

requirements are rising significantly; (B) measures assigning at least 25% weight to 

stressed observations in the look-back period; or (C) measures ensuring that margin 

requirements are not lower than those that would be calculated using volatility 

estimated over a 10-year historical look-back period. Further, the Corporation’s 
ICE Clear U.S., Inc. Rules

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36

procyclicality measures shall be designed to deliver forward looking, stable and prudent 

margin requirements that limit procyclicality to the extent that the soundness and 

financial security of the Corporation is not negatively affected.

This Rule 502(e) shall not apply to initial margin with respect to Contracts that are qualifying 

futures contracts (or options) on agricultural commodities as designated by the Corporation from 

time to time. 

(f) The amount of variation margin on any Business Day for each account of a Clearing Member 

for any day shall be the net gain or loss, as the case may be, on all futures contracts in such 

account, represented by the difference between (i) the Settlement Price on such day of each 

futures contract in the account and (ii) the price at which each such futures contract was bought 

or sold on such day or the Settlement Price for each such futures contract in the account on the 

previous Business Day, as the case may be; provided, however, that in the case of any futures 

contract on an index, the amount of the final variation margin payment shall be determined as 

specified in the rules of the Listing Exchange (if so specified).

(g) Without limitation of the Corporation’s other rights to use or apply a Clearing Member’s 

initial margin as permitted in these Rules, under applicable law or otherwise, the Corporation (i) 

may invest initial margin in the form of cash in accordance with the Corporation’s investment 

policies and applicable law and (ii) may use a Clearing Member’s cash, securities or other property 

constituting initial margin in its house account from time to time to meet temporary liquidity needs 

of the Corporation (whether or not such Clearing Member is in default), in a manner consistent 

with the Corporation’s liquidity policies and applicable law, including by way of assignment, 

transfer, pledge, repledge or creation of a lien on or security interest in such initial margin in 

connection with borrowing, repurchase transactions or other liquidity arrangements to support 

payment obligations of the Corporation in respect of Contracts. The Corporation will restore any 

such initial margin so used as soon as practicable following the conclusion of the event requiring 

the use of a Clearing Member’s initial margin for liquidity purposes. Prior to the occurrence of a 

Default with respect to a Clearing Member, the Corporation may use, invest or apply the initial 

margin of such Clearing Member only as set forth in this Rule 502(g). This Rule 502(g) shall not 

be deemed to limit the Corporation’s rights to use or apply a Clearing Member’s initial margin as 

permitted in the Rules, under applicable law or otherwise following the occurrence of a default of 

that Clearing Member.

Rule 502A. Settlement Premium

(a) With respect to such Options as the President may from time to time determine, the amount 

of initial margin required to be on deposit by each Clearing Member with the Corporation shall be 

calculated with reference to the settlement premium for such Options established as hereinafter 

provided (the “Settlement Premium”). Promptly after the close of trading in such Options, the 

Corporation staff shall establish a Settlement Premium for each Strike Price of each Option Month 

of each Option that has open interest, and may establish a Settlement Premium for any Strike 

Price of any Option Month of any Option that has no open interest. The Settlement Premium for 

each Option shall be established by the Corporation staff in accordance with such procedures as 

the Board may approve from time to time.

(b) Any capitalized term used in this Rule 502A which is not defined in the By-Laws or Rules 

of the Corporation shall have the meaning set forth in the definitions contained in the rules of the 

Listing Exchange.

Rule 502B. Cross Margining

(a) The Corporation may establish Cross Margining Programs with one or more Cross 

Margining Clearing Organizations permitting Clearing Members to subject eligible positions to 

cross-margining treatment. Each such Cross Margining Program shall be conducted in 
ICE Clear U.S., Inc. Rules

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accordance with a cross margin agreement between the Corporation and one or more Cross 

Margining Clearing Organizations. The Corporation shall determine which Contracts are eligible 

for cross margining. In order to participate in any such Cross Margining Program, a Clearing 

Member must execute and deliver such instruments and documents as the Board may prescribe 

and take such other actions as the Corporation may require in connection therewith. The 

provisions of such instruments and documents shall be deemed to constitute Rules.

(b) Each Clearing Member shall be entitled to participate in the Cross Margining Program and, 

unless the Corporation determines otherwise, no Clearing Member shall be required to establish 

a separate cross margining account in order to receive cross margining treatment.

Rule 503. Cash Margin Deposits and Other Payments

Each Clearing Member shall establish and maintain margin accounts (which shall include 

separate house and customer accounts) at an Approved Financial Institution of its choice with 

which the Corporation has entered into a cash settlement agreement containing bank holiday 

settlement procedures. A Clearing Member may use such accounts for the payment of variation 

margin, initial margin, option premiums and other payments due to the Corporation. With the 

exception of payments governed by Rule 205(b), the Corporation shall have the right to instruct 

each Approved Financial Institution to debit each margin account maintained by a Clearing 

Member for any deposits of variation margin, initial margin, option premiums or any other 

payments due to the Corporation pursuant to these Rules or the rules of any Exchange.

Rule 504. Mechanics for Margins and Premium Payments

(a) The Corporation shall advise each Clearing Member of the amount of initial margin, 

variation margin and option premiums owing to or from such Clearing Member after the close of 

trading on each Business Day, Transfer of initial margin, variation margin and option premiums 

shall be made between a Clearing Member (through its Approved Financial Institution or Qualified 

Financial Institution) and the Corporation in accordance with the Corporation’s policies and 

procedures as in effect from time to time.

Variation margin under any Contract shall be paid in the currency in which such Contract is settled 

under its contract terms.

(b) Notwithstanding any other provision of the By-Laws or Rules, if the President determines 

(i) that unstable conditions relating to one or more Contracts exist, or that the maintenance of an 

orderly market or the preservation of the fiscal integrity of the Corporation so requires, or (ii) that 

any Clearing Member is carrying Contracts or incurring risks in its house, customer and/or crossmargining account(s) that are larger than is justified by the financial and/or operational condition 

of the Clearing Member, the Corporation may issue an intra-day call requiring the advance deposit 

of initial margin, variation margin and/or option premiums with the Corporation by such time as 

the Corporation shall specify. An intra-day call based on a determination as to the conditions 

specified in clause (i) above may be issued to any or all Clearing Members; an intra-day called 

based on a determination as to the conditions specified in clause (ii) above may be issued to any 

Clearing Member with respect to which such determination is made. If the Corporation determines 

to make an intra-day call for either initial margin, variation margin and/or option premiums, the 

Corporation shall:

(i) Give notice to each Clearing Member which is required to make payment to the 

Corporation of the amount payable by such Clearing Member; and

(ii) Immediately after giving or making reasonable efforts to give the notice described in 

subparagraph (i), the Corporation shall instruct the Approved Financial Institution at which 

each such Clearing Member maintains margin accounts or the Clearing Member may instruct 

its Qualified Financial Institution to wire transfer funds from the appropriate account of each 
ICE Clear U.S., Inc. Rules

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such Clearing Member into the appropriate account of the Corporation in the amount due to 

the Corporation as determined by the Corporation.

(c) Initial margin shall initially be deposited in cash by each Clearing Member with the 

Corporation as provided in Rule 504(a). Thereafter, a Clearing Member may substitute for cash 

on deposit as initial margin securities, Approved Foreign Currencies and such other instruments 

as may be permitted by the Board. Such substitution shall be subject to Rule 505 in all respects 

effected by delivering to the Corporation, by the time specified by the Corporation on the day on 

which the Clearing Member wishes to make the substitution:

(i) the securities, Approved Foreign Currencies and/or other instruments; and

(ii) a request for the release of the cash initial margin for which the securities, Approved 

Foreign Currencies or other instruments will be substituted.

(d) Subject to Rule 504(e), the Corporation shall return to a Clearing Member the amount of 

any excess initial margin on deposit from such Clearing Member, provided that the Corporation 

receives a request for such a release from such Clearing Member by such time as may be 

specified by the Corporation on the day such release is to be made.

(e) (i) Excess initial margins shall not be released pursuant to Rule 504(d) on any day if the 

excess margin is due to any house account of Clearing Member unless the Clearing Member has 

deposited and paid all margins, premiums and other amounts required from such Clearing 

Member for all its house accounts and customer accounts or otherwise pursuant to these Rules; 

or, if the excess margin is due to any customer account of the Clearing Member, unless the 

Clearing Member has deposited and paid all margins and premiums required from all of its 

customer accounts pursuant to these Rules for such accounts. Notwithstanding any provision to 

the contrary in these Rules, the Corporation may refuse to release the amount of excess initial 

margin on deposit in the house account of a Clearing Member which has requested such release 

if the President concludes that the financial or operational condition of the Clearing Member is 

such that the release of excess initial margin would be contrary to the fiscal integrity of the 

Corporation; and may refuse to release the amount of excess initial margin on deposit in the 

customer account of a Clearing Member as to which the President has made such a conclusion, 

unless the Clearing Member substantiates to the satisfaction of the Corporation that the amount 

to be released will be returned to one or more customers in accordance with applicable law.

(ii) A Clearing Member shall not permit any withdrawal from the account of a customer that 

would cause the net liquidating value plus the margin deposits that would remain in such account 

following the withdrawal to be less than the then prevailing initial margin requirement.

(f) Upon notice from the Corporation that a transfer of funds from a Clearing Member's account 

pursuant to Rule 504(a) was not effected as instructed by the Corporation for any reason, the 

Clearing Member shall deliver to the Corporation the amount required at such time and in such 

form as the Corporation may prescribe.

(g) Net income, if any, generated by any securities, Approved Foreign Currencies or other 

instruments held by the Corporation as initial margin for any Clearing Member shall belong and 

be credited to such Clearing Member, subject to any fees or charges in respect thereof owed by 

the Clearing Member in accordance with the Corporation’s policies and procedures.

(h) Each transfer of funds or securities in respect of initial margin, variation margin or option 

premiums shall constitute a settlement (within the meaning of Commission RegulationCFTC Rule

39.14) and shall be final as of the time the Corporation’s accounts are debited or credited with the

relevant payment.
ICE Clear U.S., Inc. Rules

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Rule 505. Deposit of Securities and Approved Foreign Currencies as Initial Margin

(a) A Clearing Member may substitute securities for all or part of the cash it has on deposit 

with the Corporation as initial margin, in accordance with Rule 504(c) and this Rule 505(a), 

provided, however, that the Board may prescribe limitations regarding the extent to which 

interests in any category of permitted securities may be substituted for cash initial margin.

(i) The only Securities eligible for deposit as initial margin are those securities approved 

by the Board for this purpose (subject to the limitations and minimum cash deposits, if any, 

as are adopted by the Board), in each case as published on the Corporation’s website from 

time to time.

(ii) Securities shall be valued in accordance with such methodology as may be adopted by 

the Board.

(iii) Every deposit of securities shall be made by transfer to an account of the Corporation 

pursuant to such procedures and requirements as may be prescribed by the Corporation.

(iv) Any securities deposited as initial margin may be sold or redeemed at any time by the 

Corporation, with or without notice to the Clearing Member depositing the same, at public or 

private sale, without demand of any kind, or in accordance with any applicable provisions of 

law or of the governing documents relevant to such securities, all as the Corporation may in 

its discretion determine.

(v) Deposits of securities shall be made by such means and subject to such agreements 

and undertakings as may be prescribed by the Corporation.

(b) Reserved.

(c) A Clearing Member may substitute Approved Foreign Currencies for all or part of the cash 

it has on deposit with the Corporation as initial margin, in accordance with Rule 504(c) and this 

Rule 505(c).

(i) The Approved Foreign Currencies must be deposited in an initial margin account of the 

Corporation either in a United States bank in the United States that is an Approved Financial 

Institution, or in a branch (not separately incorporated) of a United States bank that is an 

Approved Financial Institution located in a country which has been approved for the purpose 

by the Commission.

(ii) If the Approved Foreign Currencies are being substituted for cash that is customer funds, 

such customer funds shall remain subject to all provisions of the Commodity Exchange Act (as 

amended) and Commission Regulations governing the accounting for and segregation of 

customer funds.

(iii) The Corporation may convert any Approved Foreign Currencies deposited as initial 

margin by any Clearing Member into U.S. Dollars at any time and at such exchange rate as 

the Corporation in its discretion may determine.

(d) If any securities deposited by any Clearing Member pursuant to this Rule 505 are sold by 

the Corporation, or if any Approved Foreign Currencies deposited by any Clearing Member 

pursuant to this Rule 505 are converted into US Dollars, the net proceeds thereof shall be 

deposited into one or more initial margin accounts maintained by the Corporation and shall be 

credited to the appropriate customer account or house account of such Clearing Member, as the 

case may be.

Rule 506. RESERVED

Rule 507. Bank Holidays

If an Exchange is open for trading on any Bank Holiday, the following procedures will apply:
ICE Clear U.S., Inc. Rules

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(a) On the Business Day preceding such Bank Holiday, each Clearing Member shall deposit 

or pay such initial margin, variation margin and option premium as may be required by the 

Corporation. Such deposit or payment shall be made without offset or reduction by reason of 

excess initial margin held by the Corporation for the account of any Clearing Member.

(b) On the Business Day following such Bank Holiday, deposits and payments of initial 

margin, variation margin and option premiums shall be made to and by the Corporation in 

accordance with these Rules, except that such deposits and payments shall be made with 

respect to transactions made both on such Bank Holiday and the Business Day preceding 

such Bank Holiday.

Rule 508. Segregation of Customer Funds

All customer funds received by the Corporation from a Clearing Member to purchase, margin, 

guarantee, secure or settle the trades, contracts or commodity options of the Clearing Member’s 

commodity or option customers, and all money accruing to such commodity or option customers 

as a result of such trades, contracts or commodity options so carried, shall be segregated as 

customer funds in accordance with all relevant provisions of the Commodity Exchange Act and 

the rules and orders promulgated thereunder. This Rule satisfies the requirement in 

CommissionCFTC Regulation 1.20 that a Clearing Member must obtain a written 

acknowledgement from the Corporation that such customer funds are being held in accordance 

with such provisions.

Rule 509. Foreign Currency Exchange for Variation Settlement

(a) Notwithstanding anything to the contrary in the By-Laws or Rules, if a Clearing Member 

fails to make a variation margin settlement, in whole or in part, on any date (the “Variation 

Settlement Date”) that is denominated in a currency other than U.S. dollars (the “Foreign 

Currency”), the Corporation shall evaluate whether same-day liquidity sufficient to cover any 

corresponding variation margin payment(s) owed by the Corporation on such date in such 

currency to one or more other Clearing Members is available to the Corporation from FX market 

transactions and other resources. If the President determines, in his or her sole discretion, that 

sufficient such resources may not be readily available, the Corporation will be entitled to enter 

into an FX Variation Settlement Transaction with each such other Clearing Member to the extent 

of the insufficiency (and each such other Clearing Member hereby agrees that it will be deemed 

to enter into such transaction upon such determination by the Corporation without further action 

by either party). The Corporation’s variation margin settlement obligation in the Foreign Currency 

to a Clearing Member shall be netted against the Foreign Currency payment obligation of the 

Clearing Member pursuant to the FX Variation Settlement Transaction. 

An “FX Variation Settlement Transaction” shall be a foreign exchange spot transaction 

pursuant to which, on the Variation Settlement Date, the Clearing Member shall be obligated 

to pay to the Corporation the amount of the insufficiency in the Foreign Currency (the “Foreign 

Currency Payment”) and the Corporation shall be obligated to pay to the Clearing Member 

an equivalent amount in U.S. dollars (or in U.S. treasury securities), calculated by reference to 

exchange rates in the relevant market as determined by the Corporation (the “USD Equivalent 

Payment”). 

(b) Unless otherwise elected by the Clearing Member by written notice to the Corporation no 

later than the close of business on the Business Day following the Variation Settlement Date, the 

Corporation and the Clearing Member shall enter into a reversing foreign exchange spot 

transaction (the “Reversing FX Transaction”) pursuant to which the Corporation shall pay to the 

Clearing Member an amount in the Foreign Currency equal to the Foreign Currency Payment and 

the Clearing Member shall pay to the Corporation an amount in U.S. dollars equal to the USD 

Equivalent Payment, adjusted appropriately by the Corporation to reflect relevant interest rates in 
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the two currencies for the period between the FX Variation Settlement Transaction and the 

Reversing FX Transaction. Settlement of the Reversing FX Transaction (if entered into) shall 

occur on the third Business Day following Variation Settlement Date; provided that if there is a 

Currency Market Disruption on such date, settlement will be delayed until the Currency Market 

Disruption has ceased; provided, further, that if the Currency Market Disruption is still continuing 

after 10 Business Days, either party may cancel the Reversing FX Transaction, in which case 

neither party shall have any further obligation in respect thereof. 

“Currency Market Disruption” means the occurrence or existence on any date, as 

determined by the Corporation, of (i) any event or circumstance that makes it unlawful or 

infeasible for the Corporation or its Clearing Members to convert U.S. dollars into the Foreign 

Currency or vice versa through customary foreign exchange market transactions or to transfer 

the Foreign Currency through customary payment systems and channels; (ii) any event or 

circumstance as a result of which firm quotations for a spot FX transaction between USD and 

the Foreign Currency are unavailable on customary market terms; (iii) the actual or anticipated 

imposition by any relevant governmental authority of any sanctions, prohibition, transaction 

block, asset freeze, moratorium, standstill, repudiation, expropriation, requisition, 

nationalization or similar action applying to transactions in the relevant Foreign Currency or 

the relevant foreign exchange market, or (iv) any event or circumstance with similar effect to 

any of the foregoing. 

(c) The Corporation’s liability for any shortfall, loss, cost, liability, damage or expense incurred 

or suffered by any Clearing Member or any other person in converting any USD Equivalent 

Payment into another currency or otherwise resulting from the settlement of the Corporation’s 

variation margin obligation through an FX Variation Settlement Transaction shall be limited to 

entering into a Reversing FX Transaction on the terms provided in this Rule 509, and the 

Corporation shall not otherwise be responsible for any such shortfall, loss, cost, liability, damage 

or expense. 

(d) The Corporation’s exercise of any powers under this Rule 509 shall be without prejudice 

to the exercise of any other rights or remedies of the Corporation with respect to the Clearing 

Member that failed to make a variation margin settlement.

Rule 510. Currency Market Disruption 

If a Currency Market Disruption occurs, the Corporation, in its discretion, may require all 

variation margin, delivery, final settlement, and any other obligations denominated in the 

applicable Foreign Currency (“Impacted Obligations”) to be settled, by the Corporation and each 

Clearing Member, in U.S. dollars. The foregoing requirement to settle Impacted Obligations in 

U.S. dollars shall be effective, and terminate, upon notice from the Corporation. Settlement in 

U.S. dollars pursuant to this Rule 510 shall fully discharge the applicable Impacted Obligation. 

The U.S. dollar equivalent settlement amount for an Impacted Obligation shall be calculated by 

reference to exchange rates in the relevant market, as determined by the Corporation. The 

exchange rate shall be published on the Corporation’s website. Nothing in this Rule 510 shall 

in any way limit Rule 708.

 For the purposes of this Rule 510, the terms “Currency Market Disruption” and “Foreign 

Currency” shall have the meanings provided in Rule 509.
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Part 6

Deliveries

Rule 601. Delivery Rules

Any delivery of commodities under any Contract shall be made in accordance with these Rules 

and the rules of the Listing Exchange for such Contract. Each Clearing Member that carries an 

account which is required to make, accept or otherwise facilitate the physical delivery of a 

commodity pursuant to a futures contract shall notify the Corporation if and when delivery or 

payment has been made, as applicable, at such time and as otherwise required by the rules of 

the Listing Exchange.

Rule 602. Responsibility for Delivery; Margin.

(a) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THESE RULES OR THE BYLAWS OR THE RULES OF ANY LISTING EXCHANGE, EXCEPT AS EXPRESSLY SET FORTH 

IN THIS CHAPTER 6 OF THESE RULES, THE CORPORATION SHALL HAVE NO OBLIGATION 

TO MAKE OR ACCEPT DELIVERY OF ANY COMMODITY IN FULFILLMENT OF A CONTRACT, 

AND SHALL HAVE NO LIABILITY ARISING OUT OF A FAILURE OF A CLEARING MEMBER 

OR ANY OTHER PERSON TO MAKE OR ACCEPT SUCH DELIVERY.

(b) Each Clearing Member which issues or receives a delivery notice for a commodity under 

any Contract (i) shall maintain initial margin on each such Contract and (ii) deposit with the 

Corporation variation margin for each such Contract in accordance with Rule 602(c).

(c) When a delivery notice or multiple delivery notices with respect to a futures contract of a 

Deliverer to sell a commodity are issued by the Corporation to a Receiver holding a futures 

contract to buy such commodity:

(i) such futures contracts shall be combined into a single contract between the Deliverer and

the Receiver, whereby the Deliverer agrees to sell such commodity to the Receiver and the 

Receiver agrees to buy such commodity from the Deliverer, all on the terms and conditions 

specified in the futures contract being combined in the applicable rules of the Listing 

Exchange; and

(ii) the Corporation shall have no further rights or obligations under any such contracts.

Notwithstanding the foregoing, the Corporation shall, as a convenience to the parties, (1) continue 

to collect and pay variation margin from and to the Receiver and the Deliverer with respect to the 

combined contract in the same manner as it collects and pays variation margin on open futures 

contracts, in accordance with the Corporation’s procedures, and (2) continue to hold initial margin 

with respect to such combined contract until settlement under the combined contract is completed, 

in the case of both (1) and (2) subject to and as provided in these Rules and, if specified therein, 

the rules of the Listing Exchange. In the event that either the Deliverer or the Receiver shall default 

in paying any such variation margin when and as due with respect to such combined contract:

(A) the Corporation may apply the amount of initial margin on deposit with the 

Corporation from such Clearing Member with respect to such contract against such 

payment, it being expressly understood that the Corporation shall have no obligation to 

collect and pay variation margin in such circumstances to the extent that the amount of initial 

margin on deposit with the Corporation is insufficient for such purpose;

(B) the Corporation shall thereafter have no further obligation to collect or pay 

variation margin with respect to such contract; and
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(C) the Corporation shall not have any other obligation or liability with respect to such 

default, including, without limitation, any obligation to make any payments from the Guaranty 

Funds or any other asset it holds on behalf of the defaulting party, or to make any 

assessments on Clearing Members with respect to such default.

Upon completion of settlement under the combined contract, (1) the Corporation will release 

initial margin held by the Corporation with respect to such contract, and (2) the net amount 

of any variation margin that has been paid to the Deliverer or Receiver in respect of such 

combined contract pursuant to this Rule 602(c) shall be collected from such party by the 

Corporation and paid to the other party, in each case as and when provided in the 

Corporation’s procedures, and subject to any applicable rules of the Listing Exchange.

Any default by the Deliverer or Receiver with respect to such combined contract shall be 

subject to any applicable rules of the Listing Exchange, but shall not be the responsibility of 

the Corporation. Determinations as to whether delivery has been properly and timely made 

(including as to the adequacy or conformance of any delivered commodities) will be made 

in accordance with the rules of the Listing Exchange, and will not be the responsibility of the 

Corporation. Without prejudice to the foregoing, in the case of any such default by the 

Deliverer or Receiver with respect to such combined contract, the Corporation may (but will 

not be obligated to) apply the amount of initial margin on deposit with the Corporation from 

such party with respect to the combined contract against any unsatisfied liability of such 

party to the other with respect to such combined contract, as determined in accordance with 

the rules of the Listing Exchange. Subject to the rules of the Listing Exchange, any initial 

margin provided by the non-defaulting party in respect of such combined contract will be 

released, as and when provided in the Corporation’s procedures.

(d) If any Clearing Member shall not have deposited or paid any initial margin, variation margin 

or option premiums due from it at the time it tenders a delivery notice to the Corporation, the 

Corporation may decline to accept such delivery notice.

Rule 603. Deliveries in Bankruptcy Situations

(a) For the purposes of this Rule 603:

(i) Notwithstanding Rule 101, the term “Customer” shall mean any person for whom a 

Clearing Member carries a Contract, except a non-public customer as that term is defined in 

Commission Regulation 190.01(b).

(ii) The term “Debtor” shall mean any Clearing Member with respect to which an Order for 

Relief is entered.

(b) This Rule 603 shall apply if a Clearing Member carrying a Contract traded on or subject to 

the rules of any Exchange for any Customer becomes a Debtor, and if the rules of any such 

Exchange provide for physical delivery of a commodity to be made directly between such a 

Customer and an opposite Clearing Member which either issued a delivery notice that was 

assigned to such Customer or received a delivery notice that was issued by or on behalf of such 

Customer.

(c) By not later than 12:00 Noon on the second Business Day following the date of the entry of 

the Order for Relief with respect to the Debtor, or on the date payment and delivery are required 

under the rules of the Listing Exchange for any Contract, whichever is sooner, each Customer of 

the Debtor shall notify the Corporation in writing if such Customer is seeking to make or take 

delivery pursuant to the applicable rules of such Exchange, giving the name and address of such 

Customer. Upon the giving of such notice, such Customer shall assume all the obligations of the 

Debtor to the Corporation and the opposite Clearing Member with respect to such Contract (but 

not including the obligation to deposit with or pay to the Corporation any initial margin or variation 

margin with respect thereto, unless required by the rules of such Exchange). If, pursuant to the 
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preceding sentence, any such Customer is not obligated to make payments of variation margin 

with respect to such Contract, the opposite Clearing Member and the Corporation shall likewise 

not be obligated to make payments of variation margin with respect thereto.

(i) If the Customer is seeking to make delivery, such notice shall be accompanied by

(A) evidence, satisfactory to the Corporation, that the Debtor presented delivery notice 

to the Corporation on behalf of the customer;

(B) a document of title as required by the rules of such Exchange for delivery of the 

commodity which is the subject of the delivery notice, duly endorsed, for such commodity; 

and

(C) such other documents as are required pursuant to these Rules and the rules of such 

Exchange to make delivery in fulfillment of a Contract for such commodity.

(ii) If the Customer is seeking to take delivery, such notice shall be accompanied by

(A) the delivery notice which had been assigned by the Corporation to the Debtor and 

allocated by the Debtor to the Customer; and

(B) a certified, cashier's or official bank check, drawn on or issued by an Approved 

Financial Institution and payable to the order of the Clearing Member which presented the 

delivery notice, in an amount equal to such percentage of the full amount payable on 

delivery of the commodity as may be prescribed in or pursuant to the rules of the Listing 

Exchange, subject to final adjustment based on the quantity and quality of the commodity 

actually delivered.

(d) A Customer who gives notice pursuant to Rule 603(c) shall be deemed to agree:

(i) To perform all obligations of the Debtor under these Rules and under the rules of the 

Listing Exchange with respect to each Contract described in said notice (other than the 

obligation to deposit with or pay to the Corporation any initial margin or variation margin with 

respect thereto, except as may be provided under the rules of such Exchange);

(ii) To be sued in any federal or state court located in the City and State of New York in any 

action or proceeding on or in connection with such Contract, the provisions of these Rules or 

of the rules of the Listing Exchange applicable thereto or performance thereunder;

(iii) To accept service of process in any such action or proceeding by United States certified 

mail directed to such Customer at the address set forth in such notice or by such other means 

provided for by law or by the rules of the court in which such action or proceeding is brought; 

and

(iv) That the Corporation and the opposite Clearing Member shall be discharged from their 

obligations and liabilities as provided in paragraph (h) of this Rule 603.

The Corporation, as a condition to permitting the Customer to make or take delivery pursuant to 

this Rule 603, may require such Customer to execute and deliver to the Corporation a written 

agreement, in form and substance satisfactory to the Corporation, embodying the substance of 

the preceding provisions of this Rule 603(d).

(e) If a Customer fully complies with paragraphs (c) and (d) of this Rule 603, the Corporation 

shall deliver to the opposite Clearing Member the documents and/or checks received by it 

pursuant to paragraph (c), upon receipt from such opposite Clearing Member of such documents 

and/or checks as may be necessary to effect delivery or payment, and shall transmit the same to 

the Customer, whereupon the Corporation shall be relieved of any and all liability to the Customer, 

to such opposite Clearing Member and to the Debtor with respect to such Contract.
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(f) THE CORPORATION SHALL HAVE NO RESPONSIBILITY TO ANY PERSON TO 

INVESTIGATE OR OTHERWISE VERIFY THE ACCURACY, GENUINENESS OR 

COMPLETENESS OF ANY DOCUMENT OR CHECK DELIVERED TO OR BY THE 

CORPORATION PURSUANT TO THIS RULE 603, AND SHALL HAVE NO LIABILITY TO ANY 

PERSON FOR THE QUANTITY OR QUALITY OF THE COMMODITY DELIVERED.

(g) Nothing contained in this Rule shall prevent a Customer and a Clearing Member from 

making mutually agreeable arrangements to settle delivery on terms other than those set forth in 

this Rule 603.

(h) The making or taking of delivery or payment or other settlement with respect to any Contract 

in accordance with this Rule 603, shall discharge in full the obligations and liabilities of the 

Customer, the opposite Clearing Member and the Corporation with respect thereto; provided, 

however, that nothing contained in this Rule 603 shall relieve or discharge a Debtor from any 

obligation or liability it may have to the Corporation, any Clearing Member or any Customer.

Rule 604. Deliveries Involving Electronic Warehouse Receipts or Foreign Exchange

WHEN, UNDER THE RULES OF THE LISTING EXCHANGE, THE CORPORATION 

BECOMES THE TITLE HOLDER OF AN ELECTRONIC WAREHOUSE RECEIPT (“EWR”) OR 

HOLDER OF CURRENCIES IN THE CORPORATION’S BANK ACCOUNT IN CONNECTION 

WITH THE DELIVERY OF COMMODITIES OR CURRENCIES UNDER A CONTRACT, THE 

CORPORATION SHALL HOLD TITLE TO SUCH EWR OR CURRENCIES SOLELY AS AN 

ESCROW AGENT ON BEHALF OF THE CLEARING MEMBER WHICH ISSUED THE 

DELIVERY NOTICE OR DEPOSITED THE CURRENCIES INTO, OR OTHERWISE MADE THE 

CURRENCY AVAILABLE FOR TRANSFER TO, THE CORPORATION’S BANK ACCOUNT 

WITH RESPECT TO THE COMMODITIES OR CURRENCIES. AS ESCROW AGENT, THE 

CORPORATION SHALL ACT SOLELY AS A STAKEHOLDER FOR THE CONVENIENCE OF 

THE CLEARING MEMBER. NEITHER THE CORPORATION, NOR ANY DIRECTOR, 

COMMITTEE MEMBER, OFFICER, AGENT OR EMPLOYEE OF THE CORPORATION 

(“OFFICIALS”) SHALL BE LIABLE TO ANY PARTY FOR ANY DAMAGES ARISING OUT OF 

OR IN CONNECTION WITH ANY ACT OR OMISSION WITH RESPECT TO THE EWR OR 

CURRENCIES DURING THE PERIOD THE CORPORATION IS THE TITLE HOLDER, EXCEPT 

TO THE EXTENT THE DAMAGE IS THE RESULT OF WILLFUL OR WANTON CONDUCT OR 

BAD FAITH. THE CLEARING MEMBER ON BEHALF OF WHICH THE CORPORATION IS 

HOLDING TITLE TO THE EWR OR CURRENCIES AS ESCROW AGENT SHALL INDEMNIFY 

AND HOLD HARMLESS THE CORPORATION AND ITS OFFICIALS AGAINST ANY CLAIMS, 

DAMAGES, LOSSES, COSTS, FEES, TAXES, OR EXPENSES RELATING IN ANY WAY TO 

THE EWR, THE CURRENCIES OR THE DISPOSITION THEREOF (INCLUDING WITHOUT 

LIMITATION, ATTORNEYS’ FEES, EXPENSES OF INVESTIGATION, JUDGMENTS AND 

AMOUNTS PAID IN SETTLEMENT), EXCEPT TO THE EXTENT OF CLAIMS, DAMAGES OR 

LOSSES ARISING SOLELY FROM THE CORPORATION’S WILLFUL OR WANTON CONDUCT 

OR BAD FAITH.

Rule 605. Deliveries Involving Gold and Silver Daily Futures Contracts 

(a) In connection with the ICE Futures U.S. Gold and Silver Daily Futures Contracts, delivery 

of gold or silver, as applicable will be made by transfer of ownership of the right to receive the 

relevant amount of unallocated gold or silver in LBMA Vaults satisfying the LBMA Good Delivery 

Rules (as such terms are defined in the relevant Exchange Rules) (“Gold or Silver Vault 

Interests”), through the AURUM electronic clearing system (or successor system) operated by 

London Precious Metals Clearing Limited (or its successor). Neither the Corporation nor the 

Listing Exchange will have any responsibility or liability to any person for the use of, or any failure, 

error, action or omission of, such system or any LBMA Vault. Settlement will occur in accordance 
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with the procedures and timetables specified in the Exchange Rules, subject to the provisions of 

this Rule. 

(b) For purposes of Rule 602(c), the Corporation shall issue Notices of Intention to Deliver 

involving the ICE Futures U.S. Gold and Silver Daily Futures Contracts received from Clearing 

Members (each, a “Gold or Silver Delivering Clearing Member”) to specific Clearing Members that 

have delivered a Notice of Intention to Receive in accordance with its procedures. 

(c) Each Gold or Silver Delivering Clearing Member shall provide to the Corporation, in the 

form and by the deadline specified by the Corporation, confirmation from the relevant LBMA Vault 

that its account contains sufficient Gold or Silver Vault Interests to satisfy its delivery obligation in 

full.

(d) Rule 604 shall apply to the transfer of Gold or Silver Vault Interests to the Corporation or 

its account under the Exchange Rules as though such Gold or Silver Vault Interests were EWRs. 

(e) A failure by a Clearing Member to timely deliver or pay for Gold or Silver Vault Interests in 

whole or in part as required by the rules of the Corporation or Listing Exchange may be reported 

to the Vice President of Market Regulation of the Listing Exchange by a Clearing Member who 

has failed to receive full performance of its contract, which Clearing Member may also make 

formal application for arbitration of the matter pursuant to the Arbitration Rules of the Listing 

Exchange as then in effect. A Clearing Member that failed to receive full performance of its 

contract because of a failure by another Clearing Member to timely deliver or pay for Gold or 

Silver Vault Interests in whole or in part will not have any claim against the Corporation with 

respect thereto.

(f) The Corporation may, in its discretion, provide a service to Clearing Members (the “Gold

or Silver Facility”) pursuant to which the Corporation may, upon request or upon its own initiative, 

obtain, procure or otherwise make gold or silver available to or on behalf of a Clearing Member 

which has issued a Notice of Intention to Deliver, in order to settle such Clearing Member’s 

obligation to deliver Gold or Silver Vault Interests. A Clearing Member which seeks to use the 

Gold or Silver Facility shall make a written request to the Corporation in the form and by the 

deadline specified by the Corporation. The Corporation (i) shall have no obligation to provide the 

Gold or Silver Facility, whether in full or partial settlement of a Clearing Member’s delivery 

obligation, in response to a request from a Clearing Member or otherwise at any time, (ii) may 

determine to withdraw the Gold or Silver Facility at any time, and (iii) shall not have any liability to 

any Clearing Member or any other Person as a result of any unavailability of, or any decision not 

to make available, the Gold or Silver Facility. 

(g) A Clearing Member to which the Corporation provides the Gold or Silver Facility shall on 

demand reimburse and indemnify the Corporation and the Listing Exchange for any and all losses, 

costs, liabilities or expenses incurred in connection therewith. Without limiting the foregoing, the 

Clearing Member shall, on demand by the Corporation, (i) deliver to the Corporation the gold or 

silver that was the subject of the delivery obligation covered by the Gold or Silver Facility or, at 

the election of the Corporation, pay to the Corporation the value thereof as determined by the 

Corporation, and (ii) pay any costs and expenses incurred by the Corporation in connection with 

any borrowing or overdraft of gold or silver by the Corporation in connection therewith. Failure by 

the Clearing Member to satisfy any obligation under this Rule 605(g) shall constitute a “Monetary 

Default” as such term is defined in these Rules.

(h) In the event that the Corporation, upon the request of a Clearing Member or upon its own 

determination, utilizes its Gold or Silver Facility to procure gold with respect to a Gold or Silver 

Daily Futures Contract for which a Clearing Member has issued a Notice of Intention to Deliver, 

the Clearing Member shall not be deemed in default with respect to its delivery obligations under 
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Rule 801 or under the Exchange Rules on the basis of the Gold or Silver Facility having been 

utilized to satisfy the Clearing Member’s gold or silver delivery obligation.

Rule 606. Deliveries Involving Digital Currency Contracts 

(a) In connection with any Digital Currency Contracts, delivery of the underlying Digital 

Currency will be made by book-entry transfer from the account(s) designated by the Deliverer to 

the account(s) designated by the Receiver through the facilities of the Bakkt Warehouse. Neither 

the Corporation nor the Listing Exchange will have any responsibility or liability to any person for 

the use of, or any failure, error, action or omission of, the Bakkt Warehouse. Settlement will occur 

in accordance with the procedures and timetables specified in the Exchange Rules, subject to the 

provisions of this Rule. The Corporation shall be entitled to rely on confirmations of settlement 

and other information provided by the Bakkt Warehouse relating to Digital Currency held at the 

Bakkt Warehouse.

(b) For purposes of Rule 602(c) for Digital Currency Contracts, the Corporation shall issue 

Notices of Intention to Deliver that are received or deemed received from Clearing Members under 

Exchange Rules to specific Clearing Members that have delivered or been deemed to deliver a 

Notice of Intention to Receive under Exchange Rules, in accordance with the Corporation’s 

procedures.

(c) Each Deliverer shall authorize the Bakkt Warehouse to provide to the Corporation, in the 

form and by the deadline specified by the Corporation, confirmation from the Bakkt Warehouse 

that the relevant account(s) designated by the Deliverer for delivery under the Exchange Rules 

contain sufficient Digital Currency to satisfy its delivery obligation in full.

(d) As provided in the Exchange Rules, the Corporation shall instruct the Bakkt Warehouse to 

transfer the appropriate quantity of Digital Currency by book entry from the account(s) designated 

by the Deliverer to the account(s) designated by the Receiver in settlement of the Deliverer’s 

obligations under the combined contract between the Deliverer and the Receiver.
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Part 7

Miscellaneous

Rule 701. Confidential Treatment of Information and Personal Data

(a) All information received by the Corporation concerning past or current positions carried by 

the Corporation or any other clearing organization for a Clearing Member or an Affiliated Person 

of such Clearing Member, or concerning margin payments between the Corporation or any other 

clearing organization and a Clearing Member or an Affiliated Person of such Clearing Member, 

or concerning deliveries made by or to a Clearing Member or an Affiliated Person of such Clearing 

Member, and any financial statements filed with the Corporation by any Clearing Member 

(collectively, “Member Trade Information”), shall be held in confidence by the Corporation and 

shall not be made known to any other person except as follows:

(i) With the written consent of the Clearing Member involved;

(ii) To the Commission or the United States Department of Justice pursuant to the 

requirements of the Act or any Commission Regulation;

(iii) Pursuant to a subpoena issued by or on behalf of any person, or in the Corporation's 

discretion, pursuant to a written request from the Congress of the United States, any committee 

or subcommittee thereof, the General Accounting Office, or any department or agency of the 

United States, the State of New York or the City of New York;

(iv) Pursuant to an order issued by a court having jurisdiction over the Corporation;

(v) To an Exchange of which such Clearing Member is a member for audit, compliance or 

market surveillance purposes; provided that the information so furnished to any Exchange shall 

be limited to positions, margin payments and deliveries relating to Contracts on that Exchange; 

and provided further that the furnishing of any such information shall be subject to such terms 

and conditions as the Board, from time to time, may deem appropriate;

(vi) To another clearing organization, exchange or other trading facility or trade repository 

with which the Corporation has an information sharing agreement which provides restrictions 

on the use and disclosure of the information, as deemed appropriate by the Corporation;

(vii) To any person in the business of providing data processing or similar services for the 

purpose of performing computations or analysis, or of preparing reports or records, for the 

Corporation, subject to such terms and conditions as the Board, from time to time, may deem 

appropriate;

(viii) To counsel for the Corporation; 

(ix) To the regulatory authority of any foreign jurisdiction in which the Corporation has been 

approved to conduct business, to the extent that the consent of the Corporation to make such 

disclosure was a condition of such approval; 

(x) To any other person, if, to the extent and pursuant to such terms and conditions as the 

Board, from time to time, may deem appropriate.

If information concerning one or more named Clearing Members or an Affiliated Person of such 

Clearing Member is requested pursuant to subparagraphs (iii) or (iv) above, the Corporation shall 

so notify each such Clearing Member prior to furnishing such information, unless in the judgment 

of the Corporation it would be contrary to the best interests of the Corporation to do so.

The Corporation may, to the extent permitted by law, require reimbursement from the person 

seeking such information for any out-of-pocket expenses incurred by the Corporation (including, 
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but not limited to, compensation of Corporation personnel) in obtaining and making available 

information pursuant to this Rule 701.

(b) With respect to any Confidential Information, such information shall be held in confidence 

by the Recipient, and the Recipient agrees that such Confidential Information shall be used solely 

for its business purposes, acting in its capacity as a Clearing Member or as Corporation, and may 

not be disclosed to any other person or used for any other purpose except as set forth in this 

paragraph (b). As used herein, “Confidential Information” means all business, financial, 

strategic and technical information and materials (including, without limitation, transaction data, 

position data, risk models and risk model outputs (or any components thereof), the identity of 

actual or potential business partners or investors, e-business opportunities and each party's 

potential interest therein, designs, analyses, reports, business methods and processes, business 

models and plans, customer and market information, and computer hardware and software 

systems, applications, program listings, licenses, manuals and documentation) owned by or in 

possession of a Clearing Member (or an Affiliated Person of a Clearing Member) or the 

Corporation, as applicable, on the one hand (the “Disclosing Party”), and communicated or 

delivered to the Corporation or a Clearing Member (or an Affiliated Person of a Clearing Member), 

respectively, on the other hand (the “Recipient”). Notwithstanding the foregoing, “Confidential 

Information” does not include information which (i) was or becomes generally available to the 

public other than as a result of a disclosure by the Recipient, (ii) was or becomes available to the 

Recipient on a non-confidential basis from a source that (to the best of the Recipient’s knowledge) 

is not and was not prohibited from disclosing such information to the Recipient by a contractual, 

legal or fiduciary obligation, (iii) was known to the Recipient on a non-confidential basis prior to 

its disclosure by the Disclosing Party, or (iv) is developed by the Recipient or on its behalf without 

reliance on information furnished to the Recipient by the Disclosing Party. In addition, this 

paragraph (b) shall not apply to Member Trade Information, which shall instead be subject to 

paragraph (a) above. Where an Affiliated Person of a Clearing Member is the Recipient, such 

Clearing Member shall cause such Affiliated Person to comply with the same confidentiality 

obligations that apply to it under this Rule 701(b).

Notwithstanding the foregoing, a Recipient may disclose Confidential Information that is 

subject to this paragraph (b) as follows:

(i) With the written consent of the Disclosing Party;

(ii) To the Commission or the United States Department of Justice pursuant to the 

requirements of the Act or any Commission Regulation, or as otherwise required by law;

(iii) Pursuant to a subpoena issued by or on behalf of any person, or as otherwise required 

by or pursuant to a written request from the Congress of the United States, any committee or 

subcommittee thereof, the General Accounting Office, or any department or agency of the 

United States, the State of New York or the City of New York, or any other U.S. federal or state 

or foreign regulatory authority having jurisdiction over the Disclosing Party or the Recipient;

(iv) Pursuant to an order issued by a court having jurisdiction over the Disclosing Party or 

the Recipient;

(v) To counsel, third party professional advisers and/or service providers (including but not 

limited to any person in the business of providing data processing or similar services) for the 

Recipient ("Professional Advisers"); provided that the Recipient shall cause each such 

Professional Adviser to comply with the same confidentiality obligations that apply to Recipient

under this Rule 701(b) and, for the avoidance of doubt, shall ensure that each such 

Professional Adviser shall not use such Confidential Information for any other purpose, 

whether for its own benefit, or the benefit of any person, other than for the benefit of Recipient.
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(c) Treatment of Personal Data relating to Individuals in the European Union

(i) For the purpose of this Rule 701(c), the terms "Process" (and derivations thereof), 

"Personal Data" and "Controller" shall have the meaning given to such terms in the 

General Data Protection Regulation (EU) 2016/679 (including any relevant implementing 

measure or successor legislation thereto) and the term “Member” includes market 

participants, whether or not they have become Clearing Members. 

(ii) The Corporation is a Controller with respect to Personal Data provided to it by 

Members, their clients and representatives and may collect and use Personal Data for 

the purposes of fulfilling contractual obligations and operating in accordance with these 

Rules, CommissionCFTC regulations and the Act. 

(iii) Each Member shall ensure that in respect of any Personal Data that it provides to the 

Corporation it has a lawful basis for processing the relevant Personal Data in this manner. 

(iv) Each Member and the Corporation: 

(A) acknowledges that the recording of conversations between the trading, 

clearing and other relevant personnel of the Member and/or its affiliates and the 

Corporation in connection with the Rules and any Contract, potential Contract, or 

transaction will take place to the extent permitted or required under applicable 

laws; 

(B) agrees, to the extent permitted by applicable law, that recordings may be 

submitted as evidence in any dispute; 

(C) acknowledges that the other provisions of this Rule 701(c) shall apply to 

any such recordings made by the Corporation; and

(D) consents to such disclosures being made in accordance with these Rules 

and as required under applicable laws including, without limitation, 

CommissionCFTC regulations and the Act.

Rule 702. RESERVED

Rule 703. RESERVED

Rule 704. RESERVED

Rule 705. Consent to Disclosure of Certain Information

A person, by becoming a member of the Board or a member of a committee established by the 

Board, shall be deemed irrevocably to authorize and direct each futures commission merchant at 

which such person maintains an account to furnish the Corporation with such documents and 

information relating to such person's trading in futures contracts, securities or options as the 

Corporation may from time to time request for the purpose of monitoring compliance with the 

Rules and the Corporation’s conflict of interest and other policies, and to agree to furnish the 

Corporation with such information relating to any such trading as the Corporation may from time 

to time request.
ICE Clear U.S., Inc. Rules

EXHIBIT A

51

Rule 706. RESERVED

Rule 707. Exculpation and Reimbursement of Corporation

(a) NEITHER THE CORPORATION, ICE FUTURES U.S., NOR ANY DIRECTOR, 

COMMITTEE MEMBER, OFFICER, AGENT OR EMPLOYEE OF THE CORPORATION OR ICE 

FUTURES U.S. SHALL BE LIABLE TO ANY CLEARING MEMBER FOR ANY DAMAGES 

ARISING OUT OF OR IN CONNECTION WITH ANY ERROR, ACT OR OMISSION ON THE 

PART OF THE CORPORATION, OR ON THE PART OF ANY PERSON IN THE CAPACITY OF 

DIRECTOR, COMMITTEE MEMBER, OFFICER, AGENT OR EMPLOYEE OF THE 

CORPORATION, WHETHER OR NOT SUCH DAMAGES ARE DUE TO NEGLIGENCE, 

UNLESS SUCH ERROR, ACT OR OMISSION WAS THE RESULT OF WILLFUL OR WANTON 

CONDUCT OR WAS IN BAD FAITH.

(b) EXCEPT IN INSTANCES WHERE THERE HAS BEEN A FINDING OF WILLFUL 

MISCONDUCT OR BAD FAITH, IN WHICH CASE THE PARTY FOUND TO HAVE ENGAGED 

IN SUCH CONDUCT CANNOT AVAIL ITSELF OF THE PROTECTIONS IN THIS PARAGRAPH 

(b), NEITHER THE CORPORATION, ICE FUTURES U.S., NOR ANY DIRECTOR, COMMITTEE 

MEMBER, OFFICER, AGENT OR EMPLOYEE OF THE CORPORATION OR ICE FUTURES 

U.S. SHALL BE LIABLE TO ANY PERSON, INCLUDING BUT NOT LIMITED TO A CUSTOMER, 

FOR ANY LOSSES, DAMAGES, COSTS OR EXPENSES (INCLUDING, BUT NOT LIMITED TO, 

LOSS OF PROFITS, LOSS OF USE, DIRECT, INDIRECT, INCIDENTAL OR CONSEQUENTIAL 

DAMAGES), ARISING FROM (i) ANY FAILURE OR MALFUNCTION OF ANY SYSTEM 

UTILIZED BY THE CORPORATION OR ANY OF THE CORPORATION’S SERVICES OR 

FACILITIES USED TO SUPPORT ANY SUCH SYSTEM, OR (ii) ANY FAULT IN DELIVERY, 

DELAY, OMISSION, SUSPENSION, INACCURACY OR TERMINATION, OR ANY OTHER 

CAUSE, IN CONNECTION WITH THE FURNISHING, PERFORMANCE, MAINTENANCE, USE 

OF OR INABILITY TO USE ALL OR ANY PART OF ANY SYSTEM UTILIZED BY THE 

CORPORATION OR ANY OF THE CORPORATION’S SERVICES OR FACILITIES USED TO 

SUPPORT ANY SUCH SYSTEM. 

(c) THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS 

PROVIDED BY THE CORPORATION OR ICE FUTURES U.S. TO ANY PERSON RELATING 

TO ANY SYSTEM, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY 

AND WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE OR USE.

(d) ANY ACTIONS, SUITS OR PROCEEDINGS AGAINST THE CORPORATION, ICE 

FUTURES U.S., OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS OR EMPLOYEES 

MUST BE BROUGHT WITHIN TWO (2) YEARS FROM THE TIME THAT A CAUSE OF ACTION, 

SUIT OR PROCEEDING HAS ACCRUED. ANY PARTY BRINGING ANY SUCH ACTION, SUIT 

OR PROCEEDING CONSENTS TO JURISDICTION IN THE U.S. DISTRICT COURT FOR THE 

SOUTHERN DISTRICT OF NEW YORK AND THE SUPREME COURT OF NEW YORK 

COUNTY, NEW YORK, AND WAIVES ANY OBJECTION TO VENUE THEREIN. THIS 

PROVISION SHALL IN NO WAY CREATE A CAUSE OF ACTION AND SHALL NOT 

AUTHORIZE AN ACTION THAT WOULD OTHERWISE BE PROHIBITED BY THIS PROVISION 

OR THE RULES OF THE CORPORATION OR ICE FUTURES U.S. 

(e) IN ANY ACTION, SUIT OR PROCEEDING AGAINST THE CORPORATION, ICE 

FUTURES U.S. OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES OR 

AGENTS, EACH PARTY WAIVES ANY RIGHT IT MIGHT HAVE TO A TRIAL BY JURY.

(f) Any Clearing Member which institutes an action or proceeding against the Corporation, or 

any of the officers, directors, committee members, agents or employees of the Corporation, and 

which fails to prevail in such action or proceeding, shall reimburse the Corporation and such 

officer, director, committee member, agent or employee, for any and all costs or expenses 

(including but not limited to attorneys' fees, expenses of investigation and amounts paid by way 
ICE Clear U.S., Inc. Rules

EXHIBIT A

52

of indemnifying any officers, directors, employees or other persons by the Corporation) incurred 

in connection with the defense of such action or proceeding.

(g) For purposes of this Rule 707, the terms: (i) “the Corporation” shall include any legal 

successor to the Corporation, including any corporation or other entity which acquires all or 

substantially all of the assets of the Corporation in one or more transactions; and (ii) “person” shall 

include the personal representative of an individual described in this Rule 707 who is deceased 

or under a disability.

Rule 708. Emergencies

(a) If the Exchange determines that there is an Emergency, the Corporation shall take such 

action as may be ordered by, or as may be necessary or appropriate to implement emergency

action ordered by, that Exchange with respect to (i) Contracts traded on or subject to the rules of 

the Exchange and cleared by the Corporation, and (ii) Clearing Members of the Exchange.

(b) If the Board, by a two-thirds vote of the members of the Board present and voting at any 

meeting, at which there is a quorum, determines that there is an Emergency, it may place into 

immediate effect a rule, or authorize other action to be taken by the Corporation as it deems 

necessary or appropriate to meet the Emergency. In the extraordinary event that the Board cannot 

be convened under the circumstances then existing, the President may determine whether there 

is an Emergency and may place into effect a rule, or order such other actions to be taken, as the 

President deems necessary or appropriate to meet the Emergency. Any such determination and 

action ordered by the President shall be reported to, and reviewed by, the Board as soon as 

practicable thereafter. Any actions taken pursuant to this Rule 708(b) shall be subject to the 

Corporation’s conflict of interest policies and shall be reported to the Commission no later than 

twenty-four (24) hours after the action is taken.

(c) In the event of an inconsistency between a determination made by an Exchange as referred 

to in Section 708(a) and a determination made by the Corporation pursuant to Section 708(b), the 

determination so made by the Exchange shall govern.

(d) If, in the judgment of the persons specified below, the physical functioning of the 

Corporation is, or is threatened to be, severely and adversely affected by a Physical Emergency, 

such persons are authorized to take such action as they deem necessary or appropriate to deal 

with such Physical Emergency. The persons authorized to take action pursuant to this Section 

708(d) are any one of the following, in the order of their availability to take such action: (i) the 

President; (ii) any Vice President; (iii) the Chair; and (iv) any other officer of the Corporation.

(e) For purposes of this Rule 708, the following terms shall have the following meanings:

(i) The term “Emergency” means (A) any occurrence or circumstance which the Exchange 

determines constitutes an emergency or physical emergency in accordance with the by-laws 

or rules of the Exchange, (B) any Physical Emergency, or (C) any occurrence or circumstance 

which the Board or President, pursuant to this Rule 708, determines 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 agreements, contracts or transactions cleared by the 

Corporation, including manipulative or attempted manipulative activity; any actual, attempted 

or threatened corner, squeeze, congestion or undue concentration of Positions; any 

circumstances which may materially affect the performance of agreements, contracts or 

transactions cleared by the Corporation, including failure of the payment system, any banking 

moratorium declared by applicable governmental authorities, or the bankruptcy or insolvency 

of any Clearing Member; any action taken by any governmental body or any other board of 

trade, market or facility which may have a direct impact on trading on the Exchange or clearing 

by the Corporation; any outbreak or escalation of hostilities, declaration of a national 

emergency or war, cyberattack or similar systems intrusion or disruption, or other calamity or 
ICE Clear U.S., Inc. Rules

EXHIBIT A

53

crisis, national or international, this effect of which on financial markets makes it impractical, in

the judgment of the Board or President for the Corporation to continue normal operations, and 

any other circumstances which may have a severe, adverse effect upon the functioning of the 

Corporation. 

(ii) The term “Physical Emergency” means any circumstance which has, or threatens to 

have, a severe, adverse effect upon the physical functions of the Corporation including, but 

not limited to, fire or other casualty, flood, bomb threats, substantial inclement weather, power 

failures, communication breakdowns, transportation breakdowns and computer malfunctions, 

backlog or delay in clearing or in the processing of data related to clearing, trading system 

breakdown or any other similar events.

Rule 709. Force Majeure

Notwithstanding any other provision of these Rules, the Corporation shall not be obligated to 

perform its obligations under these Rules or any agreement with a Clearing Member, or to

compensate any person for losses occasioned by any delay or failure of performance, to the

extent such delay or failure is the result of acts of God, lightning, earthquake, fire, epidemic,

landslide, drought, hurricane, tornado, storm, explosion, flood, nuclear radiation, act of a public 

enemy or blockade, insurrection, riot or civil disturbance, strike or labor disturbance, cyberattack 

or similar systems intrusion or disruption, or any other cause beyond the Corporation’s reasonable 

control (whether or not similar to any of the foregoing).

If the Corporation shall, as a result of any of the above-described events, fail to perform any of its 

obligations, such failure shall be excused for a period equal to the period of delay caused by such 

event. In such an event, the Corporation shall give written notice thereof to the affected market or 

such Clearing Member, as the case may be, as soon as it is reasonably practicable and attempt 

diligently to remove such condition.
ICE Clear U.S., Inc. Rules

EXHIBIT A

54

Part 8

Defaults

Rule 801. Defaults

If any of the following events shall occur with respect to any Clearing Member (regardless of 

whether any such event is cured by any Guarantor or other third party on behalf of such Clearing 

Member or otherwise):

(a) If such Clearing Member fails to meet any of its obligations under its Contracts with the 

Corporation;

(b) If such Clearing Member fails to pay any assessments levied upon it by the Corporation 

when and as provided in these Rules;

(c) If any Monetary Default occurs with respect to such Clearing Member;

(d) If such Clearing Member fails to make any required deposit in the Guaranty Fund when 

and as required pursuant to these Rules;

(e) If the Corporation shall determine that such Clearing Member is not in compliance with 

the provisions of Rule 202 or Rule 203;

(f) If such Clearing Member commences a voluntary or a joint case in bankruptcy or files a 

voluntary petition or an answer seeking liquidation, reorganization, arrangement, readjustment 

of its debts or any other relief for the benefit of creditors under any bankruptcy or insolvency 

act or law of any jurisdiction, now or hereafter existing, or if such Clearing Member applies for 

or consents to the appointment of a custodian, liquidator, conservator, receiver or trustee (or 

other similar official) for all or a substantial part of its property; or if such Clearing Member 

makes an assignment for the benefit of creditors; or if such Clearing Member becomes or 

admits that it is insolvent;

(g) If an involuntary case is commenced against such Clearing Member in bankruptcy or an 

involuntary petition is filed seeking liquidation, reorganization, arrangement, readjustment of 

its debts or any relief for the benefit of creditors under any bankruptcy or insolvency act or law 

of any jurisdiction, now or hereafter existing; or if a custodian, liquidator, receiver or trustee (or 

other similar official) is appointed of the Clearing Member for all or a substantial part of its 

property;

(h) If a warrant of attachment, execution or similar process is issued against any substantial 

part of the property of the Clearing Member;

(i) If the Securities Investor Protection Corporation files an application for a protective 

decree with respect to such Clearing Member;

(j) If such Clearing Member holds a short futures contract position and does not tender a 

delivery notice on or before the time specified by the rules of the Listing Exchange on the last 

day on which such notices are permitted to be tendered, or fails to make delivery by the time 

specified in the rules of the Listing Exchange; 

(k) If such Clearing Member holds a long futures contract position and does not accept 

delivery or does not make full payment when due as specified in the rules of the Listing 

Exchange; or

(l) If a default, event of default, or other similar event or condition, is declared with respect 

to such Clearing Member, or an Affiliated Person of such Clearing Member, including a 

Guarantor for such Clearing Member, by another derivatives clearing organization, clearing 
ICE Clear U.S., Inc. Rules

EXHIBIT A

55

agency or financial market utility (whether an Affiliated Person of the Corporation or not), as 

“default,” “event of default,” or other similar event or condition, is defined by such entity.

then, and in any such event, the Corporation may declare that an “Event of Default” has occurred 

and may determine that such Clearing Member shall be suspended as a Clearing Member.

Rule 802. Liquidation on Termination or Suspension of Clearing Member

(a) When a Person ceases to be a Clearing Member of the Exchange or is suspended as a 

Clearing Member of the Exchange, all open Contracts carried by the Corporation for such Clearing 

Member shall be liquidated in the manner set forth in Rule 803 as expeditiously as is practicable 

unless and to the extent that:

(i) Such open Contracts are transferred by the Clearing Member and accepted by one or 

more other Clearing Members, with the prior consent of the Corporation, or transferred by the 

Corporation to one or more other Clearing Members pursuant to an auction of the Contracts 

or other procedure instituted by the Corporation;

(ii) The President and the Chair, or in the absence of the Chair, any Director, determine 

that, in their opinion, the protection of the financial integrity of the Corporation does not require 

such a liquidation; or

(iii) Such liquidation is delayed because of the cessation or curtailment of trading on the 

Exchange for such Contracts.

(b) If it is determined pursuant to paragraph (a)(ii) of this Rule 802 not to liquidate any open 

Contracts of a Person, or if the Corporation is unable for any reason to liquidate such open 

Contracts in a prompt and orderly fashion, if the Corporation determines to delay such liquidation, 

or if the Corporation otherwise determines it is appropriate to do so for the protection of the 

Corporation or its Clearing Members, the President or the President’s designee may authorize 

the execution from time to time for the account of the Corporation, solely for the purpose of 

reducing the risk to the Corporation resulting from the continued maintenance of such open 

Contracts, hedging transactions, including, without limitation, the purchase, grant or sale of 

Contracts or other agreements or instruments (and the modification or termination of such 

transactions from time to time). Such officers may delegate to one or more persons the authority 

to determine, within such guidelines as such officers shall prescribe, the nature and timing of such 

hedging transactions. Any costs or expenses, including losses, sustained by the Corporation in 

connection with transactions effected for its account pursuant to this paragraph shall be charged 

to such Person (which amounts, if such Person is a Defaulting Clearing Member, shall constitute 

part of the Defaulted Obligation), and any gains, net of any costs and expenses, shall be credited 

to such Person.

Rule 803. Method of Closing Out

(a) The open Contracts of any Person which, pursuant to Rule 802, are required to be 

liquidated pursuant to this Rule 803, shall be liquidated in such manner as the Corporation, in its 

discretion, may direct. Without limiting the generality of the foregoing:

(i) Any such liquidation may be effected by placing, with one or more Exchange members 

chosen at the discretion of the President by directly entering to the Exchange’s trading 

platform, orders for the purchase, grant, exercise, or sale of Contracts. The President may 

designate and authorize an individual, and may hire a third party, to be responsible for the 

placement of such orders.

(ii) Contracts on opposite sides of the market, having different expiration months, may be 

liquidated by spread or straddle transactions (regardless of whether they are held for different 

accounts or different beneficial owners).
ICE Clear U.S., Inc. Rules

EXHIBIT A

56

(iii) Options may be liquidated by closing transactions or by exercise, in the discretion of the 

President, and in any case where an option is exercised, the Corporation may liquidate the 

underlying futures contract, if any, resulting from such exercise in accordance with this Rule.

(iv) The Person whose Contracts are liquidated shall be liable to the Corporation for any 

commissions or other expenses incurred in liquidating such Contracts.

(v) Notwithstanding any other provisions of this Rule 803(a), any such liquidation may be 

effected without placing orders for execution, by making appropriate book entries on the 

records of the Corporation (including, without limitation, by pairing and canceling offsetting long 

and short positions in the same delivery months of a futures contract or in the same option 

series carried by a Clearing Member) at a price equal to the settlement price or settlement 

premium on the day such liquidation is ordered or at such other price as the Board may 

establish; provided, however, if an Order for Relief has been entered with respect to such 

Person, the Corporation will not affect any such liquidation by book entry except as may be 

permitted by Commission Regulations.

(b) If, as a result of the rules of the Listing Exchange limiting fluctuations in price or other 

circumstances, it is not possible to liquidate all net open Contracts pursuant to Rule 803(a)(i), the 

Corporation may liquidate such Contracts by taking opposite positions in a different expiration 

month and liquidating the resultant offset positions by a spread or straddle.

(c) If the Corporation determines that it is not practicable or advisable under the circumstances 

in light of liquidity, open interest, market conditions and other relevant factors to liquidate or 

attempt to liquidate some or all net open Contracts pursuant to Rule 803(a), the Corporation may 

determine to liquidate such net open Contracts pursuant to one or more default auctions (each a 

“Default Auction”) to be conducted by the Corporation pursuant to the default auction procedures 

of the Corporation as in effect at the relevant time (“Default Auction Procedures”). In connection 

with a Default Auction, the Corporation may require that each Clearing Member (or specified 

categories of Clearing Members) participate in such auction in a minimum amount, and may 

provide in the Default Auction Procedures for consequences of a failure to so participate or for 

uncompetitive participation (as defined therein) and for a Default Auction Priority for the 

application of Guaranty Fund contributions and Assessments in payment of liquidation costs 

incurred through such Default Auction(s). The Default Auction Procedures may also specify the 

terms on which customers of Clearing Members may participate (directly or indirectly) in a Default 

Auction.

(d) The Corporation may also determine to liquidate some or all net open Contracts pursuant 

to one or more auctions not conducted under Default Auction Procedures in which participation 

by Clearing Members or others will be voluntary and without using a Default Auction Priority 

(“Alternative Auctions”), on such other terms and conditions consistent with these Rules as are 

determined by the Corporation with the goal of facilitating a successful auction in light of the 

particular Contracts and positions to be auctioned, the prevailing market conditions for such 

Contracts and positions (including the depth, scope and nature of participation in such markets), 

and such other factors as the Corporation determines appropriate. The Corporation shall provide 

reasonable advance notice to Clearing Members of an Alternative Auction and the terms and 

conditions on which it is to be conducted.

(e) All liquidations made pursuant to this Rule 803 shall be for the account and risk of the

Person which ceases to be a Clearing Member or which is suspended as a Clearing Member (and 

all amounts owed by the Corporation in respect thereof shall, if such Person is a Defaulting

Clearing Member, constitute part of the Defaulted Obligation). NEITHER SUCH PERSON NOR 

ANY OTHER PERSON SHALL HAVE ANY CLAIM OR RIGHT AGAINST THE CORPORATION 

REGARDING THE TIMING OF LIQUIDATION OR THE MANNER IN WHICH OR THE PRICE AT 

WHICH CONTRACTS HAVE BEEN LIQUIDATED PURSUANT TO THIS RULE 803.
ICE Clear U.S., Inc. Rules

EXHIBIT A

57

(f) References in this Rule 803 to the liquidation of Contracts shall include liquidation,

termination or adjustment of any related hedging transactions entered into pursuant to Rule

802(b).

Rule 804. Amounts Payable to the Corporation

Upon completion of the liquidation or transfer of the positions of a Person pursuant to Rule 

803, the Corporation shall be entitled on demand to recover from such Person all amounts due to 

the Corporation for all losses, liabilities and expenses (including without limitation legal fees and 

disbursements and costs and expenses incurred by the Corporation in liquidity, borrowing or 

similar arrangements under Rules 301(f) or 502(g)) incurred by the Corporation in connection with 

such liquidation or transfer.

Rule 805. Reinstatement of Suspended Member

Any Clearing Member suspended pursuant to Rule 801 may apply for reinstatement as 

provided in Rule 903.

Rule 806. Close-Out Netting

(a) Insolvency of the Corporation. If at any time the Corporation: (i) institutes or has instituted 

against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under 

any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is 

presented for its winding up or liquidation, and, in the case of any such proceeding or petition 

presented against it, such proceeding or petition results in a judgment of insolvency or bankruptcy 

or the entry of an Order for Relief or the making of an order for the Corporation’s winding-up or 

liquidation, or (ii) approves resolutions authorizing any proceeding or petition described in clause 

(i) above (collectively, a “Bankruptcy Event”), all open positions in the Corporation shall be 

closed promptly in accordance with subsection (d).

(b) Default of the Corporation. If at any time the Corporation fails to comply with an undisputed 

obligation to pay money or deliver property to a Clearing Member that is due and owing in 

connection with a transaction cleared by the Corporation, for a period of thirty calendar days3 

Business Days from the date that the Corporation receives notice from the Clearing Member of 

the past due obligation (any such event or a Bankruptcy Event, a “Corporation Default”), all open 

positions of the Corporation shall be closed promptly in accordance with subsection (d).

(c) Wind-Up of Contracts. If at any time the Board determines, by virtue of the number of 

Withdrawing Clearing Members or otherwise, that a winding up (offset) of all outstanding positions 

at the Corporation is prudent or desirable or that the Corporation’s clearing service should be 

terminated, then all open positions at the Corporation shall be closed promptly in accordance with 

subsection (d).

(d) Close-Out Time. (i) In the event of the close-out of open positions pursuant to this Rule 

806, the Corporation shall issue a notice (a “Termination Notice”) specifying the applicable 

paragraph of this Rule under which close-out will occur, the Termination Time (as defined below) 

and such other matters as the Corporation determines appropriate.

(ii) The date and time of close out under this Rule (the “Termination Time”) shall be as 

follows:

(A) in the case of close-out as a result of a Bankruptcy Event, at 5 p.m., New York time 

on the second Business Day following the date of the Bankruptcy Event;

(B) in the case of close-out as a result of a Corporation Default under subsection (b), at 

5 p.m., New York time, on the second Business Day following the 30th day after the date 

the Corporation received notice of the relevant past due obligation under such subsection;
ICE Clear U.S., Inc. Rules

EXHIBIT A

58

(C) in the case of close-out pursuant to Rule 806(c), the time specified in the Termination 

Notice, which shall be within one Business Day after issuance of such notice (and if no time 

is specified, 5 p.m. New York time on the Business Day following issuance of such notice).

(iii) Upon and with effect immediately as from the Termination Time, each open position 

subject to termination under this rule shall be automatically terminated at the Termination Price 

(as defined below), without the need for any further step by any party to such position. All 

positions open immediately prior to the close-out shall be valued in accordance with the 

procedures of subparagraphs (e) and (f) of this Rule 806.

(e) Netting and Close-Out. At such time as a Clearing Member’s positions are closed pursuant 

to this Rule 806, the obligations of the Corporation to a Clearing Member in respect of all of its 

house positions, accounts, collateral and deposits to the Guaranty Fund shall be netted, in 

accordance with the Bankruptcy Code, the Act and the regulations adopted thereunder in each 

case, against the obligations of that Clearing Member in respect of both its house and its 

customers’ positions, accounts, collateral and its obligations to the Corporation. All obligations of 

the Corporation to a Clearing Member in respect of its customer positions, accounts, and collateral 

shall be separately netted against the positions, accounts and collateral of its customers in 

accordance with the requirements of the Bankruptcy Code, the Act and the regulations adopted 

thereunder in each case. As of the Termination Time for a Clearing Member’s positions, the 

authority of the Corporation, pursuant to Rule 302, to make new assessments and/or require a 

Clearing Member to cure a deficiency in its Guaranty Fund deposit shall terminate, but without 

limiting the obligations of Clearing Members to make such contributions or assessments for which 

the obligation arose prior to the Termination Time.

(f) Valuation. As of the Termination Time, the Corporation shall fix a U.S. dollar amount (the 

“Close-Out Amount”) to be paid to or received from the Corporation by each Clearing Member, 

after taking into account all applicable netting and offsetting pursuant to paragraph (e) of this Rule. 

The Corporation shall value open positions subject to close-out at a price (the “Termination 

Price”) that is the market price for the relevant market (including without limitation any over-thecounter markets) at the Termination Time, assuming the relevant markets were operating 

normally at such time. If the relevant markets were not operating normally at such moment, the 

Corporation shall determine the Termination Price by exercising its discretion, acting in good faith 

and in a commercially reasonable manner, in adopting methods of valuation expected to produce 

reasonably accurate substitutes for the values that would have been obtained from the relevant 

market if it were operating normally. In determining a Close-Out Amount, the Corporation may 

consider any information that it deems relevant, including, but not limited to, any of the following:

(i) prices for underlying interests in recent transactions, as reported by the market or 

markets for such interests;

(ii) quotations from leading dealers in the underlying interest, setting forth the price (which 

may be a dealing price or an indicative price) that the quoting dealer would charge or pay for 

a specified quantity of the underlying interest;

(iii) relevant historical and current market data for the relevant market, provided by reputable 

outside sources or generated internally; and

(iv) values derived from theoretical pricing models using available prices for the underlying 

interest or a related interest and other relevant data.

Amounts stated in a currency other than U.S. dollars shall be converted to U.S. dollars at the 

prevailing market rate of exchange, as reasonably determined by the Corporation (using a third 
ICE Clear U.S., Inc. Rules

EXHIBIT A

59

party source, if practicable). If a Clearing Member owes the Close-Out Amount, it shall promptly 

pay that amount to the Corporation upon demand.

(g) Interpretation in Relation to FDICIA. The Corporation intends that certain provisions of this 

Rule be interpreted in relation to certain terms (identified by quotation marks) that are defined in 

the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”), as amended, as 

follows:

(i) The Corporation is a “clearing organization.”

(ii) An obligation of a Clearing Member to make a payment to the Corporation, or of the 

Corporation to make a payment to a Clearing Member, subject to a netting agreement, is a 

“covered clearing obligation” and a “covered contractual payment obligation.”

(iii) An entitlement of a Clearing Member to receive a payment from the Corporation, or of 

the Corporation to receive a payment from a Clearing Member, subject to a netting contract, is 

a “covered contractual payment entitlement.”

(iv) The Corporation is a “member,” and each Clearing Member is a “member.”

(v) The amount by which the covered contractual payment entitlements of a Clearing 

Member or the Corporation exceed the covered contractual payment obligations of such 

Clearing Member or the Corporation after netting under a netting contract is its “net 

entitlement.”

(vi) The amount by which the covered contractual payment obligations of a Clearing 

Member or the Corporation exceed the covered contractual payment entitlements of such 

Clearing Member or the Corporation after netting under a netting contract is its “net obligation.”

(vii) The By-Laws and Rules of the Corporation, including this Rule 806, are a “netting 

contract.”

(h) Cross-Margining Agreement. If a Termination Notice is issued under this Rule 806, the 

Corporation shall immediately seek to exercise its authority under the Cross-Margining Program 

to cause the immediate liquidation of all assets and liabilities in all cross-margining accounts of 

Clearing Members and to reduce all such accounts to a single net obligation to or from the 

Clearing Member to be settled in accordance with the terms of the cross-margining agreement.

Rule 807. Reduced Gains Distribution 

(a) Definitions. The following terms shall have the indicated meanings:

Account

The house account or customer account, as applicable.

Aggregate Cash Gains or ACG

In respect of any Business Day, the sum of the Cash Gain in respect of all Cash Gainers 

on such Business Day.

Cash Gain

In respect of any Cash Gainer and any Loss Distribution Day, the amount of Pre-Haircut 

Gains, Losses and Realized Cash Flows for such Account in respect of such Cash Gainer in 

respect of such Loss Distribution Day, if positive.
ICE Clear U.S., Inc. Rules

EXHIBIT A

60

Cash Gainer

In respect of each Contributing Clearing Member and any Loss Distribution Day, each 

Account in respect of which the Pre-Haircut Gains, Losses and Realized Cash Flows for such 

Account in respect of such Loss Distribution Day is greater than zero.

Cash Gainer Adjustment

The meaning set out in Rule 807(f).

Cash Loser

In respect of each Contributing Clearing Member and any Loss Distribution Day, each 

Account in respect of which the Pre-Haircut Gains, Losses and Realized Cash Flows for such 

Account in respect of such Loss Distribution Day is equal to or less than zero.

Contractual Payments

In respect of each Account and any Business Day, any settlement or other payments (other 

than VM) owed with respect to a Contract in such Account on such Business Day.

Notwithstanding the foregoing, amounts payable in respect of a delivery under a contract in 

accordance with Part 6 of these Rules will not constitute Contractual Payments.

Contributing Clearing Member

A Clearing Member (other than a Defaulting Clearing Member).

Distribution Haircut or DH

On each Loss Distribution Day, the fraction determined by the Corporation in accordance 

with the following formula:

DH(t) = UL(t) / ACG(t)

where:

UL means the Uncovered Loss for that day; and

ACG means the Aggregate Cash Gains for that day.

Last Successful Call

The most recent Business Day in respect of which all Outward VM Payments and 

Contractual Payments owed by the Corporation to Clearing Members were paid in full under 

the Rules (and, for the avoidance of doubt, prior to implementation of Reduced Gains 

Distributions under this Rule 807).

Loss Distribution Day

A Business Day in the Loss Distribution Period. For the avoidance of doubt, the Loss 

Distribution Day shall be the date in respect of which a Cash Gainer Adjustment is determined, 

even though settlement of the related payments occurs on the following Business Day.

Loss Distribution Period

The period commencing from and including the date specified by the Corporation in a notice 

following an RGD Determination and ending as determined in Rule 807(d).
ICE Clear U.S., Inc. Rules

EXHIBIT A

61

Outward VM Payments

On any Business Day, amounts in respect of VM that the Corporation has calculated which 

would, but for this Rule 807, be payable in full by the Corporation to Contributing Clearing 

Members (whether relating to their House Account or Client Origin Account) following the 

determination of Settlement Prices for Contracts.

Post Default Period

The period starting at the time of declaration of a Default of a Clearing Member and ending 

at the time the Corporation completes the default management process in respect of each 

Account of the Defaulting Clearing Member.

Pre-Haircut Gains, Losses and Realized Cash Flows

In respect of each Account of each Contributing Clearing Member and any Business Day, 

the net amount which would be payable by the Corporation to such Clearing Member 

(expressed as a positive number) or by such Clearing Member to the Corporation (expressed 

as a negative number) by way of Contractual Payments or VM in respect of such Account on 

such Business Day in the absence of the application of the Distribution Haircut.

Received VM

On a particular Business Day following a Default, the amount (expressed as a positive 

number) that the Corporation has actually received in immediately available funds from 

Clearing Members who are party to Contracts in respect of VM and Contractual Payments for 

such day.

Reduced Gains Distributions

The implementation of reduced gains distributions through the adjustments provided in this 

Rule 807.

RGD Continuation Conditions

The meaning set out in Rule 807(d).

RGD Determination

The meaning set out in Rule 807(b).

t

In respect of any determination made in relation to a Business Day, such Business Day.

t-1

In respect of any determination made in relation to a Business Day, the Business Day 

immediately prior to such Business Day.

Total Outbound Pre-Haircut Amount or TPHA

In respect of any Business Day, the sum of all positive Pre-Haircut Gains, Losses and 

Realized Cash Flows in respect of all Accounts of all Contributing Clearing Members on such 

Business Day (without offset for any negative Pre-Haircut Gains, Losses and Realized Cash 

Flows).
ICE Clear U.S., Inc. Rules

EXHIBIT A

62

Uncovered Loss or UL

In respect of the Corporation on any Loss Distribution Day, an amount calculated in 

accordance with the following formula:

Uncovered Loss(t) = TPHA(t) – RM(t)

where:

TPHA means the Total Outbound Pre-Haircut Amount; and

RM means the Received VM;

provided that (i) the Uncovered Loss as at the Last Successful Call shall be zero, and (ii) if 

the Uncovered Loss would be less than zero, it shall be deemed to be equal to zero;

provided, further, that, where there is more than one Default with overlapping Post Default 

Periods, the Uncovered Loss may be calculated with regard to Received VM for all relevant 

Defaulting Clearing Members and Defaults at that time.

VM

Variation margin as provided in Rule 502. References in this Rule 807 to the payment of 

VM shall be construed as including obligations to transfer cash or other eligible margin as a 

result of changes in Settlement Prices (as the difference between Settlement Prices on 

different Business Days) following a recalculation of the Settlement Price and not to the total 

amount of VM that may have been paid by any Clearing Member or the Corporation at any 

time. VM shall not include variation margin in respect of a contract subject to a delivery notice 

under Rule 602.

(b) RGD Determination. This Rule 807 shall only apply if so determined by the Board, (any 

such determination, an “RGD Determination”), where the following conditions are all satisfied:

(i) a Monetary Default or Monetary Defaults have occurred or been declared;

(ii) the Corporation has exhausted all available default resources under Rule 302 in respect 

of such Monetary Default or Monetary Defaults (and for this purpose, amounts described in Rule 

302(c)(vi) that have been claimed but not yet received shall not be deemed available);

(iii) the Corporation determines that Reduced Gains Distribution under this Rule 807 is 

appropriate in connection with a Default Auction or Partial Tear-Up under Rule 808;

(iv) no Termination Notice has been issued; and

(v) there has been no Corporation Default.

(c) Notice. If there is an RGD Determination, the Corporation shall issue a notice to Clearing 

Members to that effect specifying:

(i) the date of commencement of any Loss Distribution Period; and

(ii) such other matters as the Corporation considers are relevant.

The Corporation shall issue such notice in accordance with its customary procedure for 

distribution of notices to Clearing Members by 7:30 p.m., New York time, on the date the RGD 

Determination is made (or as soon thereafter as is practicable under the circumstances). The 

Corporation will notify the staff of the Commission of an RGD Determination. 
ICE Clear U.S., Inc. Rules

EXHIBIT A

63

(d) RGD Continuation. Following the close of business on the Business Day following a Loss 

Distribution Day (a “Potential Loss Distribution Day”), the Corporation shall determine whether 

the RGD Continuation Conditions are satisfied and if so, whether such day should constitute an 

additional Loss Distribution Day. Notwithstanding anything to the contrary herein, the Loss 

Distribution Period for any Default (or series of Defaults subject to a Cooling-off Period) shall not 

extend more than five consecutive Business Days (such fifth Business Day, the “Final Possible 

Loss Distribution Day”).

The “RGD Continuation Conditions” shall be satisfied on any Potential Loss Distribution Day if 

the Corporation determines that favorable conditions for conducting a successful Default Auction 

of all remaining open positions of the Defaulting Clearing Member at a cost within any remaining 

default resources of the Corporation under Rule 302 are likely to be realized by the end of the 

maximum Loss Distribution Period.

(e) Termination of RGD. If, as of the close of business on a Potential Loss Distribution Day, 

the Corporation does not determine that the RGD Continuation Conditions are satisfied, or 

otherwise determines to terminate the Loss Distribution Period, then the Corporation may 

determine that either (i) that day shall not be a Loss Distribution Day and the Loss Distribution 

Period shall have terminated as of the last Loss Distribution Day or (ii) that day shall be the final 

Loss Distribution Day. In addition, a Loss Distribution Period shall end with immediate effect and 

without the need for any action on the part of any Clearing Member or the Corporation upon any 

Corporation Default or other determination to terminate all Contracts under Rule 806. If the 

Corporation conducts a successful Default Auction on any Potential Loss Distribution Day, that 

day (or, if the Corporation so determines, the preceding Business Day) shall be the final Loss 

Distribution Day. If the Corporation has not conducted a successful Default Auction on the Final 

Possible Loss Distribution Day, the Corporation will conduct a Partial Tear-Up as of the close of 

business on such day in accordance with Rule 808.

(f) Adjustment of VM payments for Cash Gainers. For each Loss Distribution Day for each 

Account of each Contributing Clearing Member that is deemed to be a Cash Gainer, the amount 

payable by the Corporation in respect of the Pre-Haircut Gains, Losses and Realized Cash Flows 

for such Account for such day shall be reduced by an amount equal to any positive amount 

determined in accordance with the following formula separately for such Account (in each case, 

such amount the “Cash Gainer Adjustment”):

Cash Gainer Adjustment (t) = DH(t) x PHG(t) where:

PHG means the Pre-Haircut Gains, Losses and Realized Cash Flows; and

DH means the Distribution Haircut, expressed as a decimal provided that it shall be no greater 

than 1.

(g) No Adjustment for Cash Losers. Nothing in this Rule 807 shall reduce or offset the 

obligation of a Cash Loser to pay any VM or Contractual Payments owed by it in respect of a Loss 

Distribution Day.

(h) Application of Cash Gainer Adjustments. For each Loss Distribution Day, the Corporation 

shall apply any Cash Gainer Adjustment as set forth above as an offset against any payments 

receivable by the relevant Clearing Member or aggregate it with any required payment to the 

Corporation for the relevant Account. VM obligations and related adjustments pursuant to this 

Rule 807 of Contributing Clearing Members shall then be paid and collected following such netting 

with other payment obligations.

(i) Notwithstanding the effects of this Rule 807 during a Loss Distribution Period:
ICE Clear U.S., Inc. Rules

EXHIBIT A

64

(i) Clearing Members shall remain liable to pay, and shall continue to make timely payment 

of, all amounts falling due to, and shall remain liable to deliver, and shall continue to make 

timely delivery of, all property falling due for delivery to, the Corporation in accordance with the 

Rules and Procedures, including obligations to pay initial margin, variation margin, Guaranty 

Fund contributions and Assessments (subject always to the relevant limits set out in the Rules), 

Contractual Payments and amounts owed in respect of deliveries.

(ii) the Corporation will remain liable to pay or release initial margin to Clearing Members in 

the usual way, subject to netting to take account of any applicable Cash Gainer Adjustment

with respect to variation margin and Contractual Payments. For the avoidance of doubt, the 

Corporation’s obligation to pay or release initial margin shall not be subject to reduction under 

this Rule 807 as a result of any Distribution Haircut.

(iii) All such other Clearing Members’ payments shall be made without regard to whether 

any payment which would have fallen due (were it not for the RGD Determination) has been 

made and without any offsetting or withholding of amounts under any other right of or to netting, 

set-off, lien, recouping, property, combination of accounts or other basis.

(j) Intentionally omitted. 

(k) Action by the Corporation under and in accordance with this Rule 807 shall not constitute 

a Corporation Default.

(l) Implementation of Reduced Gains Distributions shall not affect the determination of the 

Settlement Price on any Business Day. After the end of the Loss Distribution Period, the 

Corporation shall not determine further Cash Gainer Adjustments with respect to VM or 

Contractual Payments and shall calculate, collect and pay VM payments and Contractual 

Payments in the ordinary course, without adjustment to take into account any Cash Gainer 

Adjustments during the Loss Distribution Period except as provided in Rule 807(m) below.

(m) The Corporation shall pay to each Contributing Clearing Member an amount equal to the 

aggregate of Cash Gainer Adjustments made with respect to such Contributing Clearing Member 

during the Loss Distribution Period (“Post-RGD Payments”), on a pro rata basis to the extent of 

available funds remaining under Rule 302(b) or (c) (including any such funds obtained from 

recoveries pursuant to Rule 302(k) or any proceeds of insurance received under Rule 302(c)(vi)), 

promptly after settlement of all obligations with respect to the relevant Monetary Default (including 

any Default Auction or Partial Tear-Up). For such purpose, Post-RGD Payments will constitute a 

Defaulted Obligation for purposes of Rule 302.

(n) Except as expressly provided in this Rule 807, this Rule is without prejudice to the 

Corporation’s rights to set off or net any sum owed by a Clearing Member to the Corporation 

against any sum payable by the Corporation to a Clearing Member or to any other powers of the 

Corporation under the Rules.

(o) In carrying out any calculations or making any determinations pursuant to this Rule 807, 

the Corporation may convert any amounts denominated in one currency into another currency 

chosen by the Corporation in its discretion and at a prevailing market rate of exchange reasonably 

determined by the Corporation (using a third party source, if practicable).

(p) For the avoidance of doubt, all calculations under this Rule 807 in respect of the customer 

account shall be determined separately in respect of the house account and customer account.

All calculations under this Rule 807 in respect of the customer account shall be made on a net 

basis across all positions in such account. All calculation under this Rule 807 in respect of the 

house account shall be determined a net basis for all positions within such account (regardless 

of any desk or other subaccounts maintained thereunder for administrative purposes).
ICE Clear U.S., Inc. Rules

EXHIBIT A

65

(q) For the avoidance of doubt, this Rule 807 shall not affect the obligations of Clearing 

Members to make or receive delivery, or to pay or receive amounts in respect thereof, in respect 

of any Contract in accordance with Part 6 of these Rules.

Rule 808. Partial Tear-Up 

(a) The provisions of this Rule 808 shall apply only if partial tear-up of open positions (“Partial 

Tear-Up”) is to occur, as determined by the Board. Notwithstanding anything to the contrary 

herein, Partial Tear-Up will not apply unless the Corporation has previously attempted one or 

more Default Auctions with respect to the open positions of the Defaulting Clearing Member. The 

Corporation will notify the staff of the Commission of a determination that Partial Tear-Up will 

apply.

(b) If Partial Tear-Up applies, the Corporation will issue a notice (a “Partial Tear-Up Notice”) 

stating:

(i) the remaining open positions of the Defaulting Clearing Member that have not otherwise 

been replaced or terminated through the default management process (the “Remaining 

Defaulted Positions”);

(ii) with respect to each other Clearing Member, the open positions of such Clearing Member 

that will be subject to Partial Tear-Up (the “Tear-Up Positions”);

(iii) the termination price (the “Partial Tear-Up Price”) for each Tear-Up Position; and

(iv) the date and time as of which Partial Tear-Up will occur, which will be 5 p.m. New York 

time on the Final Possible Loss Distribution Day (or 5 p.m. New York time on any earlier Business 

Day as of which the Corporation has determined that the final Default Auction has failed and/or 

that a Loss Distribution Period will not continue) (the “Partial Tear-Up Time”).

(c) The Corporation will determine and designate the Tear-Up Positions of Clearing Members 

pursuant to the following methodology: the Corporation will only designate Tear-Up Positions in 

the identical Contracts (on the opposite side of the market) and in an aggregate amount equal to 

that of the Remaining Defaulted Positions. The Corporation will designate Tear-Up Positions in a 

particular Contract only for Clearing Members that have an open position in such Contract, 

whether for their house account and/or customer account, as follows: the Corporation shall 

designate Tear-Up Positions in the house and customer accounts of all Clearing Members with 

open positions in the relevant Contracts in such accounts, on a pro rata basis (provided that solely 

to the extent such pro rata determination would result in creation of a Tear-Up Position with a 

fractional contract, the Corporation will round positions to whole contracts to avoid such result).

With respect to a Tear-Up Position designated in a customer account of a Clearing Member, the 

Tear-Up Position shall be allocated by the Clearing Member on a pro rata basis across any 

customers that have open positions in such Contract in such account. Where the Corporation has 

in effect one or more hedging transactions related to the Remaining Default Positions which 

hedging transactions will not themselves be subject to Partial Tear-Up, the Corporation may offer 

to assign or transfer such hedging transactions to Clearing Members with related Tear-Up 

Positions, on such basis as the Corporation may reasonably determine.

(d) Upon and with effect from the Partial Tear-Up Time, every Tear-Up Position shall be 

automatically terminated at the Partial Tear-Up Price, without the need for any further step by any 

party to such Contract. Upon such termination, either the Corporation or the relevant Clearing 

Member, as the case may be, shall be obligated to pay to the other the applicable Partial TearUp Price (which, in either case, shall be satisfied only through applicable variation margin for such 

Tear-Up Position, determined for this purpose as though all variation margin payments had been 

made in any relevant Loss Distribution Period without regard to any Cash Gainer Adjustments).
ICE Clear U.S., Inc. Rules

EXHIBIT A

66

Upon the termination of a Tear-Up Position, the corresponding Remaining Defaulted Position of 

the Defaulting Clearing Member shall be deemed terminated at the Partial Tear-Up Price.

(e) The Partial Tear-Up Price for each Tear-Up Position shall equal the Settlement Price 

established for such position as of the Partial Tear-Up Time. Such Partial Tear-Up Price shall be 

determined without regard to any Adjustment Amounts applied pursuant to Reduced Gains 

Distributions under Rule 807.

(f) No action or omission by the Corporation pursuant to and in accordance with this Rule 808

shall constitute a Corporation Default.

Rule 809. Certain Decisions Concerning Default Matters

Notwithstanding anything to the contrary herein, any decision by the Corporation (A) that a Default 

Auction has failed because of insufficient resources; (B) to make an RGD Determination or 

continue a Loss Distribution Period, (C) to implement a Partial Tear-Up or (D) to issue a 

Termination Notice in respect of all outstanding Contracts shall be made by the Board and shall 

not be delegable to any officer or any other Person.
ICE Clear U.S., Inc. Rules

EXHIBIT A

67

Part 9

Disciplinary Proceedings

Rule 901. Rule Violations

(a) Except as provided in paragraph (b) of this Rule 901, the Corporation shall refer any 

suspected violation of the By-Laws or these Rules by any Clearing Member to the Designated 

enforcement Enforcement staff Staff of ICE Futures U.S. for appropriate action, in accordance 

with the rules of ICE Futures U.S.

(b) The President may summarily impose a fine against any Clearing Member:

(i) for failing to make timely payments to the Corporation of initial or variation margin, option 

premiums, dues, fees, fines, assessments or other charges, and

(ii) for failing to make timely and accurate submissions to the Corporation of notices, reports, 

or other information required under any provision of the By-Laws or these Rules; and

(iii) for failing to timely make or accept delivery of any commodity or currency in settlement 

of any Contact.

The amounts of the fines for any category of violations which may be summarily imposed pursuant 

to this Rule 901(b) shall not exceed $10,000. The imposition of a fine pursuant to this Rule 901(b) 

shall be the final action of the Corporation. 

Nothing contained in this Rule 901(b) shall preclude any other action against a Clearing Member 

pursuant to Rule 901(a) or otherwise with respect to conduct described in this Rule 901(b).

Rule 902. Clearing Member Financial Emergencies

(a) If at any time the Board, in its sole discretion, determines that a Financial Emergency exists, 

or there is a substantial question as to whether a Financial Emergency exists, with respect to any 

Clearing Member, the Board may suspend, or take any other action against, involving or with 

respect to such Clearing Member and/or any Affiliated Person of such Clearing Member which is 

also a Clearing Member as the Board may deem necessary or appropriate including, but not 

limited to, order the Clearing Member to deposit such additional margin with the Corporation as 

deemed appropriate; prescribe such additional capital requirements as deemed appropriate; 

order special or advance variation margin payments to be made by such Clearing Member; 

prescribe such limitations on Position Risk as deemed appropriate; or transfer Contracts to 

another Clearing Member through an auction of such Contracts or otherwise.

(b) Any action taken against, involving or with respect to any Clearing Member pursuant to this 

Rule shall be taken after notice and an opportunity to be heard, unless (i) such Clearing Member 

shall have waived the right to such notice and opportunity, or (ii) the President in his or her sole 

discretion shall determine that (A) giving such notice or opportunity to be heard before taking such 

action is not practicable under the circumstances, and (B) there is reason to believe that 

immediate action is necessary to protect the best interests of the marketplace. Any such notice 

shall be given not later than one hour before the hearing.

(c) In any case in which action is taken against, involving or with respect to a Clearing Member 

without prior notice and opportunity to be heard, the Corporation shall give such member notice 

and an opportunity to be heard promptly thereafter. Every such notice shall (i) state the action 

taken, (ii) briefly state the reasons for the action and (iii) state the effective time, date and duration 

of the action.
ICE Clear U.S., Inc. Rules

EXHIBIT A

68

(d) In any hearing pursuant to this Rule the Board shall not be bound by formal rules of 

evidence or by technical considerations and shall follow such procedures as it deems best 

calculated to ascertain material information and otherwise to insure a fair and impartial hearing.

(e) At the hearing, the President shall present such evidence and considerations as may tend 

to show that a Financial Emergency exists or that there is a substantial question as to whether a 

Financial Emergency exists with respect to such Clearing Member, and the Clearing Member may 

present such evidence and considerations as may tend to show that no such Financial Emergency 

or substantial question exists. The Clearing Member may be represented by legal counsel or any 

other representative of its choosing at such hearing. A substantially verbatim record of the hearing 

shall be made, but need not be transcribed unless the Clearing Member so requests or the 

Corporation so determines.

(f) The Board shall issue a written decision and shall provide a copy of such decision to the 

President and the Clearing Member, together with a copy of any transcript that may have been 

made of the hearing and copies of any documents that may have been presented at the hearing. 

The decision shall include a statement of the Board's determination as to whether a Financial 

Emergency exists or there is a substantial question as to whether a Financial Emergency exists 

with respect to such Clearing Member and, if so, a description of any action taken, including the 

affirmance, modification or reversal of any action theretofore taken, and the effective date and 

duration of the action. Such decision shall be the final action of the Corporation and shall not be 

subject to appeal within the Corporation.

Rule 903. Reinstatement of Suspended Member; Revocation or Modification of Other 

Actions; Termination of Status

A Clearing Member which has been suspended pursuant to Rule 801 or 902, or which has 

been the subject of any other action pursuant to Rule 902, may seek reinstatement or revocation 

or modification of such action by submitting an application therefore in such form and 

accompanied by such information as the Corporation may prescribe. Such application may be 

rejected or granted in whole or in part by the Board in its discretion. If a Clearing Member which 

has been so suspended does not so apply for reinstatement within thirty (30) calendar days after 

the commencement of such suspension, or if such Clearing Member shall have so applied and 

the Board shall have rejected the application, the Board may terminate such Clearing Member’s 

status as a Clearing Member after giving such Clearing Member notice and an opportunity to be 

heard in accordance with the procedures set forth in paragraph (b) of Rule 203 for denying an 

application to become a Clearing Member.

Rule 904. Conflicts of Interest

A member of the Board may not participate in any proceedings conducted pursuant to this Part 

9 if such member is precluded from participating in deliberations or voting on the matter pursuant 

to the Corporation’s conflict of interest policies and procedures as in effect from time to time.

Rule 905. Liability for Expenses

Any Clearing Member which, after notice and opportunity for hearing pursuant to these Rules, 

has been found by final action of the Corporation to have violated any By-Law or Rule, or has 

been the subject of action taken pursuant to Rule 902, may, in the discretion of the Corporation, 

be required to pay to the Corporation an amount equal to any and all expenses incurred by the 

Corporation (including without limitation legal and accounting fees and expenses and the costs of 

liquidating or transferring Contracts) incurred in investigating the matter, preparing the matter for 

referral to the Exchange or for submission to the Board, or otherwise in connection with such 

violation or action, as the case may be, in addition to any fine or other penalty which may be 

imposed on such Clearing Member.