55 East 52nd Street

New York, NY 10055

BY ELECTRONIC TRANSMISSION

Submission No. 23-134

October 10, 2023

Mr. Christopher J. Kirkpatrick

Secretary of the Commission

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

Re: Amendments to Exchange Rule 6.20(c) - Submission Pursuant to Section 5c(c)(1) of 

the Act and Regulation 40.6(a)

Dear Mr. Kirkpatrick:

Pursuant to Commodity Futures Trading Commission (“CFTC” or “Commission”) 

Regulation 40.6(a), ICE Futures U.S., Inc. (“Exchange”) hereby certifies amendments to Exchange

Rule 6.20(c), “Position Limits, Conditional Limits and Position Accountability for Energy 

Contracts and Oil Contracts,” of the Exchange’s Rulebook, as set forth in Exhibit A.

As background, a market participant may request a Conditional Limit, which allows such 

participant to hold a position in excess of the spot month position limit in the Henry LD1 Fixed 

Price Future (“H”). A Conditional Limit-holder currently agrees: 

(i) not to establish, hold, or control a position in the corresponding CME/NYMEX 

(NG) contract during the last three days of trading of a contract month while 

holding a position in H in excess of the contract’s spot month position limit;

(ii) upon request of the Exchange, to provide information on all positions related to 

Henry Hub Contracts, and such other information as may be requested by the 

Exchange; and

(iii) to report to the Exchange any positions established, whether by trading or 

otherwise, in the spot month CME/NYMEX NG contract during the last three days 

of trading of a contract month.
The amendments to Exchange Rule 6.20(c) provide clarity regarding the terms of the 

Exchange’s Conditional Limit. The amendments make clear that a market participant need only 

self-report to the Exchange when a position in the applicable spot month CME/NYMEX Henry 

Hub Natural Gas Futures (“NG”) contract has been established, held, or controlled if the 

Conditional Limit-holder concurrently holds a position in excess of the spot month position limit 

of the ICE Henry LD1 Fixed Price Future (“H”) contract. All other aspects of Rule 6.20(c) remain 

unchanged.

The Exchange will apply the amendments to Exchange Rule 6.20(c) beginning November 

1, 2023.

Certifications

The Exchange certifies that the amendments to Exchange Rule 6.20(c) comply with the 

requirements of the Act and the rules and regulations promulgated thereunder. The Exchange is 

not aware of any opposing views with respect to the amendments. The Exchange has reviewed 

the designated contract market core principles (“Core Principles”) as set forth in the Act and has 

determined that the amendments comply with the following relevant Core Principles:

COMPLIANCE WITH RULES

The amendments are set forth in the Exchange Rulebook and will be enforced by the 

Exchange. In addition, trading of the applicable contracts is subject to all relevant 

Exchange rules which are enforced by the Market Regulation Department.

CONTRACTS NOT READILY SUBJECT TO MANIPULATION

The Exchange’s futures and option on futures contracts are not readily subject to 

manipulation as they are based on established and liquid underlying cash markets and/or

derivative contracts traded at other designated contract markets. In addition, trading of the 

contracts will be monitored by the Market Regulation Department.

POSITION LIMITS OR ACCOUNTABILITY

Positions in the Exchange’s futures and option on futures contracts will continue to be 

subject to position limits and accountability levels set by the Exchange. Such position 

limits are based upon the deliverable supply in the cash market, the position limit at another 

designated contract market, and/or have been deemed appropriate by the Commission in 

its rulemakings. All positions held in options on futures contracts are aggregated with the 

relevant futures contracts underlying the option on futures for purposes of spot month 

position limits and single and all-months-combined accountability.

FINANCIAL INTEGRITY OF CONTRACTS

The Exchange’s energy futures and option on futures contracts will continue to be cleared 

by ICE Clear Europe, a registered derivatives clearing organization subject to Commission 

regulation, and carried by registered futures commission merchants qualified to handle 

customer business.

The Exchange further certifies that, concurrent with this filing, a copy of this submission 

was posted on the Exchange’s website. It may be accessed at: https://www.theice.com/futures-
us/regulation. If you have any questions or need further information, please contact the 

undersigned at 312-836-6745 or at patrick.swartzer@ice.com. 

Sincerely,

Patrick Swartzer

Director

Market Regulation

Enc.

cc: Division of Market Oversight

New York Regional Office
EXHIBIT A

(In the text of the amendments below, additions are shown underscored and deletions are lined through.)

Rule 6.20. Position Limits, Conditional Limits and Position Accountability for Energy 

Contracts and Oil Contracts

(a) Position limit and position accountability levels for Energy Contracts and for Oil Contracts 

are specified in the Tables contained in Resolutions 2 contained in Chapters 18 and 19 (the “Position 

Limit Tables”). A Person holding or controlling Exchange Futures Contracts and Futures Equivalent 

Contracts, net long or net short (calculated as specified in the Position Limit Table), in an amount 

equal to or greater than the accountability levels specified in such Table, (i) automatically consents 

not to increase further and automatically consents to decrease those positions when so ordered by 

the Exchange acting in its own discretion and (ii) shall provide, in a timely manner, information on 

the nature of that Person’s related cash position, Exchange Futures and Options position, trading 

strategy and/or hedging strategy and such other relevant information as the Exchange may require. 

Nothing in this Rule shall limit the authority of the Exchange to take action under Rules 6.11, 6.12 

and 6.13 or to request and collect information regarding such Person’s related cash and Exchange 

Futures and Options positions.

(b) No Person may exceed the position limits specified in the Position Limit Tables for any Oil 

Contract or any Energy Contract unless an exemption has been granted by the Exchange in 

accordance with these Rules.

(c) A Conditional Limit in the Henry Hub LD1 Fixed Price Future of up to 40,000 contracts net 

long or short may be granted for the period that spot month position limits are in effect. To be eligible 

for a Conditional Limit under this Rule, a Person must submit an application, in the form specified 

by the Exchange, in which the applicant agrees: 

(i) not to establish, hold or control a position in the corresponding CME/NYMEX Natural Gas 

Futures contract (CME/NYMEX contract code NG) during the last three days of trading of a 

contract month while holding a position in the Henry LD1 Fixed Price Future in excess of the 

contract’s spot month position limit; 

(ii) upon request of the Exchange, to provide information on all positions related to Henry 

Hub Contracts, and such other information as the Exchange may request; and 

(iii) to report to the Exchange any position established, whether by trading or otherwise, in the 

spot month CME/NYMEX Henry Hub Natural Gas Futures contract during the last three days 

of trading of a contact month, while holding a position in the Henry LD1 Fixed Price Future in 

excess of such contract’s spot month position limit.

An application for a Conditional Limit shall be effective upon receipt by the Exchange. A 

Conditional Limit will be effective each spot month until the expiration date specified in the 

application for such limit, which shall be no later than one year following the submission date. 

Nothing in this Rule shall in any way limit the Exchange from altering or revoking a Conditional 

Limit.

(d) The spot month position limits for the Henry LD1 Fixed Price Futures Contract shall be 

effective on the Last Trading Day and the two Business Days preceding the Last Trading Day of the 

Contract Period, as such term is defined in Chapter 18 of the Rules, or as otherwise determined by 

the Exchange to account for holidays. 

(e) The spot month position limits for Natural Gas contracts (excluding the Henry LD1 Fixed 

Price Future and the EIA Index Futures) shall be effective during the last five Business Days of the 

calendar month that precedes the Contract Period, as such term is defined in Chapter 18 of the Rules, 

or as otherwise determined by the Exchange to account for holidays. 
2

(f) The spot month position limit for the EIA Index Futures shall be effective on the Last Trading 

Day and the four Business Days preceding the Last Trading Day of the Contract Period, as such 

term is defined in Chapter 18 of the Rules, or as otherwise determined by the Exchange to account 

for holidays.

(g) The spot month position limits for Power and Physical Environmental contracts shall be 

effective on the first Business Day of the Contract Period (as such term is defined in Chapter 18 of 

the Rules) through the Last Trading Day.

(h) The spot month position limits for LNG contracts shall be effective at the close of business 

on the Business Day preceding the Last Trading Day of the Contract Period, as such term is defined 

in Chapter 18 of the Rules.

(i) The spot month position limits for Oil Contracts shall be effective on the Last Trading Day 

and the two Business Days preceding the Last Trading Day of the expiring contract, or as otherwise 

determined by the Exchange to account for holidays. Any Clearing Member which holds, controls 

or carries for any Customer a ‘reportable position’ (as such term is used in Rule 6.15) in any Oil 

Contract shall submit a report to the Exchange upon request, identifying positions which such 

Clearing Member or its Customer holds or controls in the corresponding contract month of any 

physically delivered futures contract to which the Exchange contract is linked, as of the open of 

trading and the close of trading on such Last Trading Day, and shall provide such other information 

as may be requested by the Exchange regarding transactions effected on such day by such Person in 

the linked contract, in such form and manner as may be specified by the Exchange.

[REMAINDER OF RULEBOOK UNCHANGED]