Paul M. Architzel

+1 202 663 6240 (t)

+1 202 663 6363 (f)

paul.architzel@wilmerhale.com

April 29, 2022

Christopher J. Kirkpatick

Secretary

Commodity Futures Trading Commission 

1155 21 St., N. W.

Washington, D.C. 20581

Re: FMX Futures Exchange, L.P. Petition for Modification of Order of Designation 

Dear Secretary Kirkpatrick:

We submit the attached documents on behalf of our client, FMX Futures Exchange, L.P., 

(formerly CX Futures Exchange, L.P.)( the “Exchange”). Through these documents, the 

Exchange petitions the Commission to amend FMX Exchange’s designation Order to permit 

intermediated futures trading. Included in this submission in addition to this transmittal letter, is 

the Petition and selected Exhibits to Form DCM (certain of which are confidential) in support of 

the Petition. A Petition for Confidential Treatment is being submitted under separate cover to 

the Assistant Secretary for the Freedom of Information Act. The attached documents are as 

follows: 

Petition to Amend FMX Futures Exchange DCM Order

Confidential Exhibit E

Confidential Exhibit F

Confidential Exhibit H 

Confidential Exhibit I

Exhibit L

Exhibit M 

Confidential Exhibit N

Confidential Exhibit O

Exhibit Q

Confidential Exhibit S

Confidential Exhibit V 
April 29, 2022

Page 2

If you have any questions about this submission, please do not hesitate to contact me at 202-663-

6240 or by email at Paul.Architzel@wilmerhale.com. 

Respectfully submitted, 

Paul M. Architzel
- 1 - 

ACTIVEUS 189647681v.1 

UNITED STATES OF AMERICA 

Before the 

COMMODITY FUTURES TRADING COMMISSION 

================================ 

In the Matter of the Application of FMX Futures Exchange, L.P. 

(formerly CX Futures Exchange, L.P.) for Designation as a Contract Market; 

Petition for Modification of Order of Designation 

================================= 

 On April 20, 2010, the Commodity Futures Trading Commission issued an Order 

of Designation (“Designation Order”) to Cantor Futures Exchange, L.P. (the “Exchange”) 

as a Designated Contract Market (“DCM”). The Designation Order as issued included 

the following condition that limits its scope: 

IT IS FURTHER ORDERED that all contracts of sale of a commodity for future 

delivery (or options on such contracts or on a commodity) traded on Cantor must 

be cleared by a derivatives clearing organization ("DCO") registered under 

Section 5b of the Act, but such trading may not be intermediated. Any DCO with 

which Cantor desires to enter into a clearing services agreement must, in 

complying with Commission Regulation 39.4, also fulfill requirements of 

Commission Regulation 39.5 by providing the Commission with an explanation 

of how the financial resources available to the clearing DCO would be sufficient 

to cover defaults and adequately address any financial risk presented to the DCO 

in clearing the Cantor contracts under the clearing services agreement; [italics 

added] 

In addition, the Designation Order contains ten specified conditions related to operation 

of a non-intermediated DCM. This list of additional requirements is preceded by the 

following introductory text, 

IT IS FINALLY ORDERED, in consideration of Cantor's status as a nonintermediated market, that this designation as a contract market shall be subject to 

Cantor's compliance with representations it made to the Commission in its 

application: 

These representations relate to the Exchange performing functions for its participants that 

in an intermediated market are generally performed by a participant’s intermediary.1 

1

 The Designation Order is available at: 

https://www.cftc.gov/sites/default/files/stellent/groups/public/@otherif/documents/ifdocs/cantorfuturesexch

angeorder.pdf 
- 2 - 

ACTIVEUS 189647681v.1 

Accompanying the Designation Order, the Commission issued a Designation Letter that 

further detailed the scope and meaning of the Designation Order relating to nonintermediation. It provides as follows: 

The Commission notes that Cantor will operate as a non-intermediated market 

and that its members will also be members of the Cantor Clearinghouse. 

Ordinarily, clearing members are required to file large trader reports with the 

Commission under Regulation 17.00. But the Commission has accepted Cantor's 

undertaking that it will submit large trader reports to the Commission under 

Regulation 17.00. Likewise, as a non-intermediated market, Cantor is excepted 

from the clearing member report requirement of Regulation 16.00. 

The Commission reminds Cantor that it has undertaken to implement an antimoney Laundering (" AML") for its customers and has provided the Commission 

with its AML procedures and policies. The Commission notes that an appropriate 

time to update the Commission on Cantor's implementation of the AML program 

would be during its periodic reviews of Cantor's compliance with the Core 

Principles of the Act.2

The Requested Modification 

Together, the conditions of the Designation Order and the Designation Letter limit the 

Exchange to operating solely using a non-intermediated trading model (“direct trading 

model”).3 The Exchange’s business plan following designation as a contract market, was 

to concentrate on offering innovative derivatives products.4 These included, in particular, 

binary options on various types of innovative underlying commodities, such as named 

Atlantic storms, snow fall and crypto currency.5 All of these innovative contracts used 

the direct trading model, which was in accordance with the small size of the contracts and 

the potential of these derivatives to be of interest to non-traditional traders. The Exchange 

plans to continue to list binary options on the CX Division of the Exchange and to 

continue to clear such contracts through CX Clearinghouse, L.P. 

The Exchange is now planning also to list for trading traditional futures contracts and 

options on futures on the FMX Division of the FMX Exchange. These products will be 

2

 The Designation Letter is available at: 

https://www.cftc.gov/sites/default/files/stellent/groups/public/@otherif/documents/ifdocs/GilbertLetter.pdf 

3

 In addition, the Registration Order for CX Clearinghouse, L.P. limits the clearinghouse to a fully 

collateralized, direct clearing model. CX is not requesting an amendment with respect to the DCO 

Registration Order. 

4

 CX originally planned to list futures contracts on motion picture box office receipts. However, Section 

721 of the Dodd-Frank Wall Street Transparency and Accountability Act, which was enacted subsequent to 

the issuance of the Designation Order, excludes motion picture receipts (along with onions) from the 

definition of “commodity” under section 1a of the Commodity Exchange Act. As a result, the Exchange 

was required to alter its plans. 

5

 Although CX certified a bounded futures contract in crypto currency to the Commission in December 

2017, under Commission Rule 40.2, CX never listed the contract. 
- 3 - 

ACTIVEUS 189647681v.1 

cleared by a DCO other than CX Clearinghouse. These products will be larger sized 

contracts, subject to traditional-style margining, and likely to be of interest to market 

participants familiar with an intermediated trading model. Accordingly, these products 

are likely to be better suited for an intermediated trading model. Before it is able to 

certify such contracts under Commission Rule 40.2 and list such contracts for trading, the 

Exchange’s Designation Order must be modified. 

Accordingly, the Exchange is petitioning the Commission to modify its Order of 

Designation to modify the words “such trading may not be intermediated” in order to 

permit intermediation of futures and options listed on the FMX Division of the Exchange 

and to amend the Designation Order by revising the following text to read as follows 

(additions are underscored, deletions struck through): 

IT IS FURTHER ORDERED that all contracts of sale of a commodity for future 

delivery (or options on such contracts or on a commodity) traded must be cleared 

by a derivatives clearing organization ("DCO") registered under Section 5b of the 

Act.- but tTrading of such contracts listed on the CX Division of the FMX 

Exchange Cantor may not be intermediated, but contracts listed on the FMX 

Division of the Exchange are not subject to this condition. 

IT IS FINALLY ORDERED, in consideration of the Exchange’s CX Division 

listing contracts for status as a non-intermediated trading on its market, that this 

designation as a contract market shall be subject to the Exchange’s Cantor's 

compliance with representations it made to the Commission in its application in 

connection with such non-intermediated trading on its CX Division market. For 

the avoidance of doubt, these conditions do not apply to contracts listed for 

intermediated trading on the Exchange’s FMX Division market. 

The Requested Modification is Appropriate and in the Public Interest

The modification of the Designation Order being requested is limited in scope and will 

permit CX to list products to be traded under an intermediated trading model. The 

modification would enable FMX to offer both types of trading experience on its market. 

This will enable CX to offer the benefits of futures and option trading to the widest 

possible number of market participants and enable FMX to continue to innovate. 

Clearing of the intermediated contracts will be by a registered DCO that is experienced 

with clearance and settlement using intermediaries. Direct traded contracts will continue 

to be cleared by CX Clearinghouse, L.P., which is experienced in clearing using the 

direct clearing model. 

FMX believes that the offer of futures contracts and options on futures by an additional 

intermediated U.S. contract market will benefit market participants by increasing their 

choice of markets and increasing competition in the market. 
- 4 - 

ACTIVEUS 189647681v.1 

Conclusion 

Based upon above facts and analysis and the supporting documents incorporated herein, 

FMX Futures Exchange, L.P. Petitions the Commodity Futures Trading Commission to 

modify the Order of Designation of CX Futures Exchange, L.P., issued April 20, 2010, 

by amending the language as discussed above, and requests that the Commission make 

conforming changes to the language of the Designation Letter. 

Respectfully submitted, 

FMX Futures Exchange, L.P. 

__________________________ 

By: Robert Allen 

Title: President 

Dated: April 29. 2022 
Appendix A to Part 38 — Form DCM

COMMODITY FUTURES TRADING COMMISSION

FORM DCM

CONTRACT MARKET

APPLICATION OR AMENDMENT TO APPLICATION FOR DESIGNATION

EXHIBITS INSTRUCTIONS

Intentional misstatements or omissions of material fact may constitute federal criminal 

violations (7 U.S.C. §13 and 18 U.S.C. § 1001) or grounds for disqualification from 

designation.

DEFINITIONS

Unless the context requires otherwise, all terms used in this Form DCM have the same 

meaning as in the Commodity Exchange Act, as amended (“CEA” or “Act’”), and in the 

General Rules and Regulations of the Commodity Futures Trading Commission 

(“Commission”) thereunder.

For the purposes of this Form DCM, the term “Applicant” shall include any board of 

trade applying for designation as a contract market, any board of trade amending a 

pending application, or any designated contract market that is applying for an 

amendment to its order of designation.

GENERAL INSTRUCTIONS

1. This Form DCM, which includes instructions, a Cover Sheet, and required 

Exhibits (together, “Form DCM”) is to be filed with the Commission by all 

Applicants, pursuant to Section 5 of the CEA and the Commission’s regulations 

thereunder. Applicants may prepare their own Form DCM but must follow the 

format prescribed herein. Upon the filing of an application for designation or a 

designation amendment in accordance with the instructions provided herein, the 

Commission will publish notice of the filing and afford interested persons an 

opportunity to submit written data, views and arguments concerning such 

application. No application for designation or designation amendment shall be 

effective unless the Commission, by order, grants such designation or amended 

designation.

2. Individuals’ names, except the executing signature, shall be given in full (Last 

Name, First Name, Middle Name).

3. Signatures on all copies of the Form DCM filed with the Commission can be 

executed electronically. If this Form DCM is filed by a corporation, it shall be 

signed in the name of the corporation by a principal officer duly authorized; if filed 

by a limited liability company, it shall be signed in the name of the limited liability 
company by a manager or member duly authorized to sign on the limited liability 

company’s behalf; if filed by a partnership, it shall be signed in the name of the 

partnership by a general partner duly authorized; if filed by an unincorporated 

organization or association which is not a partnership, it shall be signed in the 

name of such organization or association by the managing agent, i.e., a duly 

authorized person who directs or manages or who participates in the directing or 

managing of its affairs.

4. If this Form DCM is being filed as an application for designation, all applicable 

items must be answered in full. If any item is inapplicable, indicate by “none,” 

“not applicable,” or “N/A,” as appropriate.

5. Under Section 5 of the CEA and the Commission’s regulations thereunder, the 

Commission is authorized to solicit the information required to be supplied by this 

Form DCM from any Applicant seeking designation as a contract market and 

from any designated contract market. Disclosure by the Applicant of the 

information specified on this Form DCM is mandatory prior to the start of the 

processing of an application for, or an amendment to, designated as a contract 

market. The information provided in this Form DCM will be used for the principal 

purpose of determining whether the Commission should grant or deny 

designation to an Applicant. The Commission may determine that additional 

information is required from the Applicant in order to process its application. A

Form DCM which is not prepared and executed in compliance with 

applicable requirements and instructions may be returned as not 

acceptable for filing. Acceptance of the Form DCM, however, shall not 

constitute a finding that the Form DCM has been filed as required or that 

the information submitted is true, current, or complete.

6. Except in cases where confidential treatment is requested by the Applicant and 

granted by the Commission pursuant to the Freedom of Information Act and the 

rules of the Commission thereunder, information supplied on this Form DCM will 

be included routinely in the public files of the Commission and will be available 

for inspection by any interested person.

APPLICATION AMENDMENTS

1. Part 38 of the Commission’s regulations requires that if any information 

contained in this application, or any supplement or amendment thereto, is or 

becomes inaccurate for any reason, an amendment to Form DCM, or a

submission under Part 40 of the Commission’s regulations, in either case 

correcting such information must be filed promptly with the Commission.

2. Applicants, when filing this Form DCM for purposes of amending an application, 

must re-file the Cover Sheet, amended if necessary and including an executing 

signature, and attach thereto revised Exhibits or other materials marked to show 

changes, as applicable. The submission of an amendment represents that the 
remaining items and Exhibits that are not amended remain true, current, and 

complete as previously filed.

WHERE TO FILE

This Form DCM must be filed electronically with the Secretary of the Commission in a 

format specified by the Secretary of the Commission.

COMMODITY FUTURES TRADING COMISSION

FORM DCM

CONTRACT MARKET

APPLICATION OR AMENDMENT TO APPLICATION FOR DESIGNATION

COVER SHEET

___________________________________________________________________

Exact name of Applicant as specified in charter

___________________________________________________________________

Address of principal executive offices

[ ] If this is an APPLICATION for designation, complete in full and check here.

[ ] If this is an AMENDMENT to an application, or to an existing designation, list all 

items that are amended and check here.

___________________________ ___________________________

___________________________ ___________________________

___________________________ ___________________________

___________________________ ___________________________

GENERAL INFORMATION

1. Name under which the business of the designated contract market is or will be

conducted, if different than name specified above (include acronyms, if any):

___________________________________________________________________

2. If name of designated contract market is being amended, state previous designated

contract market name:

___________________________________________________________________

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3. Contact information, including mailing address if different than address specified

above:

___________________________________________________________________

Number and Street

___________________________________________________________________

City State Country Zip Code

___________________________________________________________________

Main Phone number Fax

___________________________________________________________________

Website URL E-mail Address

4. List of principal office(s) and address(es) where designated contract market activities

are/will be conducted:

Office Address

______________ ________________________________________________

______________ ________________________________________________

______________ ________________________________________________

5. If Applicant is a successor to a previously designated contract market, please

complete the following:

a. Date of succession:

________________

b. Full name and address of predecessor designee

___________________________________________________________________

Name

___________________________________________________________________

City State Country Zip Code

___________________________________________________________________

Main Phone Number Website URL

BUSINESS ORGANIZATION

6. Applicant is a:

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[ ] Other form of organization (specify) ______________________________________

7. Date of incorporation or formation: _______________________________________

8. State of incorporation or jurisdiction of organization: _________________________

9. Applicant agrees and consents that the notice of any proceeding before the

Commission in connection with this application may be given by sending such notice

by certified mail to the person named below at the address given.

___________________________________________________________________

Print Name and Title

___________________________________________________________________

Name of Applicant

___________________________________________________________________

Number and Street

___________________________________________________________________

City State Zip Code

SIGNATURES

10. The Applicant has duly caused this application or amendment to be signed on its

behalf by the undersigned, hereunto duly authorized, this _______________day of,

20___. The Applicant and the undersigned represent hereby that all information

contained herein is true, current, and complete. It is understood that all required items

and Exhibits are considered integral parts of this Form DCM and that the submission of

any amendment represents that all un-amended items and Exhibits remain true, current,

and complete as previously filed.

___________________________________________________________________

Name of Applicant

___________________________________________________________________

Signature of Duly Authorized Person

___________________________________________________________________

Print Name and Title of Signatory

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Name of Applicant

__________________

Signature of Duly Auth