September 29, 2023 

Christopher J. Kirkpatrick

Secretary

Commodity Futures Trading Commission 

Three Lafayette Centre

1155 21st Street, N.W. 

Washington, D.C. 20581 

 

Re: Cboe Digital Exchange, LLC Rule Certification Submission Number CDE-2023-03E

Dear Mr. Kirkpatrick:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (“Act”), and §40.6(a) 

of the regulations promulgated by the Commodity Futures Trading Commission (“CFTC” or 

“Commission”) under the Act, Cboe Digital Exchange, LLC (“CDE” or “Exchange”) hereby submits a 

rule amendment (“Amendment”) to align and harmonize certain CDE Rules with that of its affiliated 

designated contract market (“DCM”), Cboe Futures Exchange, LLC (“CFE”). Exhibit A to this 

submission sets forth the rule changes included in the Amendment. The Amendment will become 

effective on October 16, 2023. 

By way of background, on May 2, 2022, Cboe Global Markets, Inc. (“CGM” or “Cboe”) acquired 

ErisX, and Eris Exchange, LLC was subsequently rebranded as Cboe Digital Exchange. Upon the 

acquisition, CDE’s regulatory program was restructured and subsumed into CGM’s Regulatory Division 

and structure. Notably, there has been and continues to be, post-acquisition integration of the CDE 

regulatory program with that of the regulatory program of its Cboe affiliated DCM, CFE, and the global 

Cboe Regulatory Division. This includes integrating trade practice and audit trail surveillances along with

reporting, investigative and other regulatory processes. The Amendment, therefore, harmonizes CDE 

Rules with CFE rules to the extent applicable to the regulatory alignment, and makes other rule updates to 

align various CDE Rules with that of CFE Rules. 

In addition to this, in early June 2023, the Exchange’s affiliated derivatives clearing organization 

(“DCO”), Cboe Clear Digital, LLC (“CCD” or the “Clearinghouse”), through which all Exchange 

products are settled and cleared, received Commission approval of an amended order of registration for 

CCD to clear digital asset futures on a margined basis for futures commission merchants (“FCMs”) 

clearing members of CCD. The Exchange intends to list digital asset futures on a margin basis sometime 

in Q4 2023,

1 which will be cleared through FCM clearing members of CCD. Products listed and traded 

on CFE are currently cleared through FCM members of the clearing organization that provides clearing 

services for CFE products. As such, CDE also intends to revise its membership structure to be consistent 

with CFE’s membership structure, particularly as it pertains to exchange members that are authorized to 

provide clearing services for CDE products. The Amendment updates CDE Rules in connection with 

membership, including membership related definitions, structure, and requirements to align, to the extent 

practicable, with that of CFE. 

1 The Exchange notes that it intends to delist its currently offering of fully-funded digital asset futures upon launch 

of margined digital asset futures. 
Rules Related to Membership and Member Requirements

The Amendment incorporates new defined terms and revised certain existing terms under Rule 

101 (Definitions) in connection with CDE’s revised membership structure, including the following: 

• Adopting the term “Trading Privilege Holder” to describe its members that hold Trading 

Privileges on the Exchange. This is the same term that CFE uses for its members that hold trading 

privileges on CFE. Currently, CDE Rules provide that “Participants” and “Participant Firms” are 

members of the Exchange that hold trading privileges2

. As amended, a Trading Privilege Holder 

(“TPH”) means any person holding Trading Privileges. To account for Cboe Digital’s digital 

asset spot market and spot market rules (housed in Chapter 12 of the CDE Rulebook, which 

incorporates certain CDE Rules by reference, including defined terms pursuant to CDE Rule 

101), the term TPH may include, as the context requires, a Digital Asset Trading Privilege Holder 

and/or a Futures Trading Privilege Holder. A Futures TPH is any Person holding a permit 

conferred by the Exchange in accordance with CDE Rule 302 to access the Cboe Digital System 

to trade in Futures Contracts and to enter into exchange for related derivative position (“ERDP”) 

transactions and Block Trades in Futures Contracts in accordance with the Rules of the Exchange 

(“Futures Trading Permit”). Futures TPHs are members of the Exchange for purposes of the CEA 

and Commission Regulations and the term “Futures Privilege Holder” collectively refers to all 

Futures Privilege Holders and Authorized Traders of a Futures Privilege Holder authorized to 

utilize Cboe Digital Exchange. Such definitions are consistent with the definition of Trading 

Privilege Holder and Trading Privileges on CFE. The Amendment replaces the term “Participant”

and “Participant Firm” throughout the Rulebook with “Trading Privilege Holder”; 

• Updating the current term “Supervised Persons” to instead reflect “Related Party”, which is the 

term that CFE uses in its rules to describe the same concept. The Amendment adopts CFE’s 

definition of Related Party, which just expands on the current definition of Supervised Person to 

also include control persons. The Amendment replaces the term “Supervised Person” throughout 

the Rulebook with “Related Party”. 

• Revising the definitions of “Authorized Trader”, “Customer”, “Clearing Member”, “Participant”, 

and “Person” to align with the definitions of the same terms in the CFE rules, and CDE notes 

that:

o Like for Trading Privilege Holders, the Amendment also defines a Futures Clearing 

Member and Digital Asset Clearing Member, and indicates that Clearing Member may be 

used to describe either or both as the context requires; and 

o The updated definition and use of the term “Participant” throughout the Rulebook aligns 

with CFE’s defined term for “Market Participant”. Revised CDE Rule 314(d) defines 

Participant in the same manner that CFE Rule 308(c) defines market participants on CFE. 

• Removing the terms “Authorized Brokers”, “Broker Firm”, and “Direct Members” from the 

Rulebook. The Exchange will not offer access to trade margin futures on digital assets to any 

direct members, which are persons or entities that are not customers of a Clearing Member. All 

participants that trade in the Exchange’s margin futures products (i.e., Trading Privilege Holders) 

will be required to be a customer of a Clearing Member (or be a Clearing Member). Additionally, 

any brokers authorized to trade on behalf of a TPH would qualify as an Authorized Trader and be 

subject to all requirements and Rules applicable to an Authorized Trader, and any broker firms 

2 See current CDE Rule 101, definition of “Trading Privileges”, which means the right granted to a Participant to

transmit Orders for certain or all Contracts through the Cboe Digital Trading System.
would fall under the definition of and will be required to become a TPH. CFE rules do not 

provide for the separate concepts of an Authorized Broker, Broker Firm or Direct Member.

The Exchange is also revising certain rules in Chapter 3 of the CDE Rulebook related to member 

and participant qualifications and application process to be consistent with the corresponding CFE rules in 

Chapter 3 of the CFE rulebook related to the same. Specifically, the Amendment updates the language in:

• CDE Rule 301(a) (Criteria for Becoming a Trading Privilege Holder, as amended) to be 

consistent with that of CFE Rule 304 (Eligibility for Trading Privileges, as amended);

• CDE Rule 302 (Trading Privilege Application Process, as amended) subparagraph (b) to be 

consistent with CFE Rule 305 (Application for Trading Privileges) subparagraph (a); and 

• CDE Rule 302(d) (new 302(f)) to be consistent with CFE Rule 304(a) and (c).

Such updates do not materially change any current requirement or process in connection with 

becoming a member of CDE. The Amendment also streamlines language in CDE Rule 302(c), removing 

language redundant of the existing requirements in CDE Rule 302(a) that all participants (TPHs, as 

amended) must be guaranteed by a Clearing Member, and therefore establish a relationship with a 

Clearing Member, as well as language redundant to the Exchange’s ability to terminate a TPH, which is 

already described in CDE Rule 302(d) (302(f), as amended). The Amendment relocates subparagraphs (b) 

and (c) of CDE Rule 303 (Participants, as amended), which are applicable to admission as a TPH, to new 

CDE Rule 302(d) and (e). 

CDE also updates CDE Rule 902 (Criteria for Becoming a Clearing Member, as amended) and 

CDE Rule 903 (Clearing Member Application Process and Obligations) related to Clearing Member 

qualifications and application process. By and large, the updates streamline the rule text in CDE Rules 

902 and 903 to remove redundancies between the qualifications and application process set forth in CDE 

Rules 902 and 903 and those set forth for TPHs in CDE Rules 301 and 302 (as all Clearing Members are 

TPHs).3 CDE Rule 902 specifically clarifies that each Clearing Member must complete the TPH 

application process pursuant to Rule 302 and, in addition to the TPH requirements in CDE Rule 302, a 

Clearing Member must meet the criteria in CDE Rule 902. Additionally, CDE adopts new Rule 912 

(Clearing Member Guarantees and Clearing House Restrictions), which governs Clearing 

Member guarantees and is the same as CFE Rule 1101 (Clearing Member Guarantees and 

Clearing Corporation Restrictions). While under the current CDE Rules, CDE members are 

required to obtain a clearing member guarantee in order to become and member and begin 

trading on the Exchange, CDE Rule 912 provides additional clarity and guidance regarding the 

process, form and manner, specific requirements, and Exchange ability to suspend, restrict or 

terminate TPHs and Clearing Members, as applicable, in connection with valid letters of 

guarantee. 

The Amendment adds subparagraph (a) to CDE Rule 304 (Limitations on Access to the Cboe 

Digital Trading System), which makes explicit that direct access is only available to TPHs and their 

Authorized Traders. Rule 304(a) specifies that Clearing Members are required to authorize their TPHs to 

directly access the Cboe Digital Trading System as well as how a Clearing Member may provide direct 

access to their TPHs (through a unique direct FIX session). 

In CDE Rule 306 (Authorized Traders, as amended), the Amendment consolidates the eligibility 

requirements for an Authorized Trader and Authorized Broker into one provision governing eligibility 

requirements for an Authorized Trader (and removes reference to Authorized Brokers).

3 The Exchange notes that CDE Rule 903(a)(9) is being removed as it is already governed by CDE Rule 401(a)(12).
The Amendment relocates all provisions under CDE Rule 311 (Application of Rules and 

Jurisdiction) to CDE Rule 314 (Application of Rules and Consent to Exchange Jurisdiction, as amended), 

to consolidate all provisions related to application of Exchange Rules and Exchange jurisdiction under a 

single Rule. The Amendment also adds new subparagraphs (e) and (f) to CDE Rule 314 to specify that a 

Participant (as proposed) is bound by and required to comply with certain CDE Rules, including CDE 

Rules that govern access to the Exchange (including order entry operator IDs), recording of 

communications, Exchange notices, transactions in contracts and trading on the Cboe Digital Trading 

System (including contract specifications, block trades, EDRP, and trade transfers), position limits, large 

trader reporting, business days and trading hours, emergencies, Exchange limitation of liability, disclosure 

requirement, trade practices and business conduct, the Exchange disciplinary and arbitration processes, 

the application of the Clearinghouse rules and applicable Exchange policies and procedures. The Rules 

applicable to Participants on the Exchange pursuant to CDE Rule 314(e) and (f) are consistent with the 

CFE rules applicable to market participants on CFE pursuant to CFE Rule 308(d) and (e). Proposed CDE 

Rule 314(g) maintains a TPH or Participant is responsible for compliance with CDE Rules, 

notwithstanding any use of or non-performance by third-party compliance. This aligns with CFE Rule 

308(f). 

The Amendment makes it explicit in CDE Rule 403 (Inspections by the Exchange) the 

maintenance time period for all books and records required to be maintained by a TPH, as is explicit in 

CFE Rule 502 (Inspection and Delivery). It also streamlines the current text in CDE Rule regarding 

Exchange authority to inspect a member’s books and records to be consistent with that of CFE Rule 502. 

The Amendment also updates Rule 409 (currently, Disclosure Requirements) to remove the provision that 

broadly requires all participants to comply with all disclosure requirements pursuant to Applicable Law. 

The Amendment adopts under CDE Rule 409 (Books and Records, as proposed) clear requirements 

regarding recordkeeping requirements applicable to TPHs (including Clearing Members) pursuant to 

Applicable Law and the Exchange Rules, and in connection with a TPH’s activity on the Exchange,4

including underlying transaction information and order information in connection with its Authorized 

Traders. Updated CDE Rule 409 reflects the same requirements as in CFE Rule 501 (Books and Records). 

The Amendment does not alter the authority that the Exchange currently has regarding requesting and 

inspecting members’ records, but provides additional clarity and specificity regarding recordkeeping 

requirements. 

The Amendment makes the current language in CDE Rule 404 (Minimum Financial and Related 

Reporting Requirements) consistent with corresponding CFE Rule 503 (Minimum Financial and Related 

Reporting Requirements for Registrants). The Amendment also adopts CDE Rules 404(d), (e) and (f), 

which align with CFE Rule 506 (Additional Minimum Financial Requirements) and provide that the 

Exchange may set additional minimum financial requirements, and that a TPH must notify the Exchange 

of any failure to satisfy minimum financial requirements and may not engage in transactions on the 

Exchange until compliance with applicable minimum financial requirements are met. 

The Amendment removes the current language in CDE Rule 407 (Customers) and replaces it with 

language consistent with CFE Rule 507 (Customer Protection – Registration). Rather than explicitly 

require a participant to enter into a written agreement with its customers, as the current rule language 

provides, the proposed rule language explicitly requires that a TPH (including Clearing Member and any 

affiliates) must be duly registered in a required capacity to solicit or accept orders on behalf of customers, 

comply with certain CFTC or Securities and Exchange Commission (“SEC”) regulations, as applicable,

related to customer protection if a TPH is an FCM, IB or broker-dealer, FCM, and National Futures 

Association (“NFA”) disclosure requirements if a TPH is registered with the NFA. 

4 The Amendment removes subparagraph (c) of CDE Rule 403, which broadly provides that a participant must 

provide to the Exchange its activity on the Exchange, as proposed CDE Rule 409 more clearly and specifically 

provides for the records a TPH must keep and provide to the Exchange in connection with its trading activity. 
Rules Related to Regulation 

The Amendment revises, in large part, Chapter 5 (Trading Practices and Business Conduct) of the 

CDE Rulebook to reflect the integration of the CDE regulatory program with that of the regulatory 

program of CFE, including rules related to trade practices, audit trail, and other reporting and audit 

requirements monitored and reviewed by the Cboe Regulatory Division. 

The Amendment harmonizes the language in: 

• CDE Rule 504 (Acts Detrimental; Acts Inconsistent with Just and Equitable Principles of 

Trade; Abusive Practices, as amended) to be consistent with CFE Rule 608 (Acts 

Detrimental to the Exchange; Acts Inconsistent with Just and Equitable Principles of 

Trade; Abusive Practices); 

• CDE Rule 505 (Fraudulent Acts Prohibited) to be consistent with CFE Rule 601 

(Fraudulent Acts); 

• CDE Rule 506 (Fictitious Transactions Prohibited, as amended)5 to be consistent with 

CFE Rule 602 (Fictitious Transactions); 

• CDE Rule 508 (Market Manipulation Prohibited) to be consistent with CFE Rule 603 

(Market Manipulation); 

• CDE Rule 509 (Disruptive Trading Practices Prohibited) to be consisted with CFE Rule 

620 (Disruptive Practices); 

• CDE Rule 510 (Prohibition of Misstatements) to be consistent with CFE Rule 606 

(Prohibition of Misstatements); 

• CDE Rule 512 (Adherence to Law) to be consistent with CFE Rule 604 (Adherence to 

Law); 

• CDE Rule 513 (Supervision) to be consistent with CFE Rule 609 (Supervision); 

• CDE Rule 518 (Withholding Orders Prohibited) to be consistent with CFE Rule 612 

(Withholding Orders); 

• CDE Rule 519 (Priority of Customers’ Orders) to be consistent with CFE Rule 610 

(Priority of Customers’ Orders); 

• CDE Rule 520 (Handling of Customer Orders) to be consistent with CFE Rule 611 

(Trading Against Customers’ Orders); 

• CDE Rule 521 (Disclosing Orders Prohibited) to be consistent with CFE Rule 613 

(Disclosing Orders); and 

• CDE Rule 522 (Simultaneous Buy and Sell Orders for Different Beneficial Owners) to be 

consistent with CFE Rule 615 (Simultaneous Buying and Selling Orders). 

5 CDE notes that the Amendment removes reference to wash trading under CDE Rule 506 as prohibition against 

wash trading is already included in CDE Rule 523.
The proposed rule changes to the aforementioned CDE Rules do not alter the substance or spirit 

of the rules, but merely makes the rule text consistent with corresponding CFE Rules and incorporates

additional provisions (in certain above-listed rules: CDE Rules 508(a) through (c); CDE Rules 509(b) 

through (g); CDE Rule 513(b); CDE Rules 519 (c); and (d); CDR Rule 521; and CDE Rule 522(a)) that 

provide greater specificity and clarity in the CDE Rules regarding abusive trading practices and TPH 

business conduct requirements (e.g., supervision). 

CDE adopts certain rules in connection with prohibited abusive trade practices that are consistent 

with corresponding CFE rules, including:

• CDE Rule 507 (Money Passes), which prohibits prearranged transactions on the Exchange for the 

purpose of passing money between accounts and requires all transactions executed on the 

Exchange be made in good faith for the purpose of executing bona fide transactions. Although 

this abusive trading practice is already prohibited by other CDE rules, this practice will now also 

be specifically addressed in CDE Rule 507; additionally, CDE Rule 507 is consistent with CFE 

Rule 617 (Money Passes). The Amendment removes the language currently in CDE Rule 507, 

which prohibits a participant from entering orders for the purpose of disrupting the orderly 

functioning of the market or creating a condition where prices do not reflect fair market value, 

because updated CDE Rules 508(b) and 509 prohibit such activity.

• CDE adopts new CDE Rule 511 (Sales Practice Rules), which provides that all TPHs must 

comply with all sales practice rules promulgated by the NFA. CDE Rule 511 is substantively 

identical to CFE Rule 605 (Sales Practice Rules). The Amendment removes the language 

currently in CDE Rule 511, which provides that a participant may not engage in any act 

detrimental to the Exchange or the Clearinghouse, as this prohibition is governed under proposed 

CDE Rule 504. 

• CDE adopts new CDE Rule 514 (Front Running), which prohibits TPHs (and Related Parties) 

and Participants from taking a position in a Contract based upon non-public information 

regarding an impending transaction by another Person in the same or a related Contract, or in the 

underlying. Acting on non-public order information is already prohibited by other CDE rules (see 

CDE Rule 521), however, new CDE Rule 514 will now also specifically address front-running. 

CDE Rule 514 is consistent with CFE Rule 619 (Front-Running). The Amendment removes the 

language currently in CDE Rule 514 that governs Clearing Member consent to the submission 

and acceptance of orders by another Clearing Member. Given the CDE’s membership structure 

requiring any Clearing Member of the Exchange to be a TPH, and that the CDE Rules require any 

TPH that acts on behalf of another person to be duly registered to do so and require all TPHs 

(including Clearing Members) to have in place a clearing member guarantee, CDE Rule 514 as 

currently written is already covered by other CDE Rules and requirements. 

CDE revises CDE Rule 524 (Recordkeeping Requirements for Entering Orders into the Cboe 

Digital Trading System) in a manner that aligns with CFE Rule 403 (Order Entry and Maintenance of 

Front-End Audit Trail Information), codifying existing best practices in relation to satisfying CDE audit 

trail recordkeeping requirements and assisting CDE in administering an efficient and effective audit trail 

program. The Amendment incorporates provisions to the Rule that: make explicit the Exchange’s 

obligations, TPH obligations (including that each TPH is obligated to comply with the provisions of 

CFTC Rule 1.35), and Clearing Member obligations regarding audit trail recordkeeping; provide detail 

and clarity regarding the information that will be required on each order or quote submitted and each 

order cancelled or modified; codify that the Exchange will reject order and quotes that do not contain the 

required information and the time period for which a TPH must maintain audit trail records; and 

streamline rule language, including removing certain text already explicit in amended CDE Rule 409 
(Books and Record). Additionally, the Amendment removes subparagraph (d) to CDE Rule 514, which 

provides for customer type indicator (“CTI”) codes. Like CFE, CDE will include this information in its 

membership applications provided to each TPH. 

CDE revises CDE Rule 530 (Position Limits) to be consistent with CFE Rule 412 (Position 

Limits). The Amendment makes explicit in CDE Rule 530 the Exchange’s authority in connection with 

establishing position limits and granting exemptions, as well as TPHs’ obligations in connection with 

established position limits and applying for exemptions. The Amendment also provides additional clarity

and guidance to regarding the information required in a position limit exemption application and the 

processes around granting exemptions. 

The Amendment updates CDE Rule 532 (Reports of Large Positions and Ownership and Control 

Reporting) to ensure that all TPHs, Clearing Members and other persons subject to the applicable CFTC 

regulations are required to submit large trader reports and ownership and control reports in connection 

with reportable positions to the Exchange. The revised Rule will assist CDE in meeting its self-regulatory 

obligations by allowing it to receive, and thus monitor, reportable positions and ownership information 

from all participants that may be subject to report such information to the Commission. 

CDE incorporates new CDE Rule 535 (Identification of Order Entry Operator) to require the use 

of an Order Entry Operator ID for each order submitted to the Exchange. Amended CDE Rule 535 is 

consistent with CFE Rule 303A (Order Entry Operator IDs) and conforms to the industry standard of 

requiring the use of Order Entry Operator (“OEO”) IDs instead of the user ID structure under existing 

CDE Rule 535. Specifically, new CDE Rule 535 requires the inclusion of an OEO ID with every order, 

quote, or other message submitted to the Cboe Digital Trading System; sets forth requirements relating to 

the issuance of OEO IDs for natural persons and Automated Trading Systems; and addresses the issuance, 

recordkeeping, and reporting obligations of Trading Privilege Holders in relation to OEO IDs. The 

Amendment also includes in CDE Rule 101 the definition of “Order Entry Operator ID”, which 

references CDE Rule 535 and is consistent with the CFE definition of the same term. 

While CDE currently implements and makes risk controls available to its participants, CDE adds 

Rule 540 (Risk Controls) to codify that the Exchange implements and makes available risk control 

mechanisms to its TPHs and Clearing Members in a manner and form determined by the Exchange. 

Additionally, the Amendment provides detail in the Rule regarding the level by which risk controls may 

be set (i.e., by Customer Account Reference (“CAR”), product, contract, and/or match capacity 

allocation, depending on the risk control), makes it explicit in the Rule that Clearing Members are 

required to utilize the Exchange’s risk controls and provides clarity that Clearing Members are able to set 

risk control parameters for their TPHs (the Exchange may also enable TPHs to set certain risk control 

parameters). The Exchange will continue to make available to its participants (i.e., TPHs and Clearing 

Members) the available risk control mechanisms and available settings and parameters. 

CDE also adopts CFE’s rules, requirements and processes for block trades and EDRPs. 

Specifically, the Amendment revises CDE Rules 601 (Block Trades), 602 (Exchange of Derivatives for 

Related Positions), and 603 (Timing and Reporting Requirements for Privately Negotiated Trades, as 

amended) to reflect CFE Rules 414 (Exchange of Contract for Related Position (“ECRP”)) and 415 

(Block Trades). 

• The updates to CDE Rule 601 (Block Trades) provide additional guidance, clarity, and 

specificity to the existing requirements regarding block trade quantity, aggregation, 

Eligible Contract Participant (“ECP”), fair and reasonable pricing, and recordings and 

recordkeeping (currently in CDE Rule 603). The Amendment incorporates rules that 

provide additional detail regarding block trade execution for Customer nondiscretionary 

accounts (Customer consent required), requirements for block trades between affiliated 
parties, prohibited and permissible disclosure of block trade information, and permissible 

pre-hedging and anticipatory hedging. All such block trade rules and requirements are 

consistent with and currently set forth in CFE Rule 415. 

• Likewise, the updates to CDE Rule 602 (EDRPs) provide additional guidance, clarity, 

and specificity regarding the three essential elements required for an EDRP (an onExchange contract and a related position, an actual transfer of ownership, separate 

parties) and eligibility requirements for participation in EDRP, including the requirement 

that executing parties must be TPHs, the prohibition against EDRPs contingent on other 

EDRPs or other position offset transactions, and recordings and recordkeeping for 

EDRPs. All such block trade rules and requirements are consistent with and currently set 

forth in CFE Rule 414. 

• CDE revises CDE Rule 603 (Timing and Reporting Requirements for Privately 

Negotiated Transactions, as amended) by removing the current language governing 

recordkeeping requirements for privately negotiated transactions (i.e., Block Trades and 

EDRPs), as recordkeeping requirements are detailed in amended Rules 601 and 602, and 

incorporating timing and reporting requirements for privately negotiated transactions. 

Specifically, CDE adopts the same timing and reporting requirements for block trades 

and EDRPs on the Exchange as for block trades and ECRPs on CFE pursuant to CFE 

Rules 414 and 415. As the timing and reporting requirements for block trades and ECRPs 

are identical between CFE Rules 414 and 415, the Amendment combines and adopts one 

timing and reporting rule applicable to privately negotiated transactions under CDE Rule 

603. Regarding timing, a privately negotiated transaction must satisfy three timing 

requirements: an agreement to a privately negotiated transaction may only occur during 

trading hours (and not during a halt); a block must be reported 10 minutes after the 

agreement and an EDRP 30 minutes after the agreement (“Reporting Deadlines”); and 

must be fully reported to the Exchange during trading hours (“Permissible Reporting 

Period”). The Rule also provides clarity on what an agreement to a privately negotiated 

transaction must include and how the Exchange measures Reporting Deadlines. The 

revised Rule requires compliance with the Rules for parties to a privately negotiated 

transaction, including TPH responsibility for their customers’ understanding of the 

requirements. It further provides that each TPH executing a privately negotiated 

transaction must designate an Authorized Reporter that is that is pre-authorized by a 

Clearing Member to report Block Trades and EDRPs on behalf of the TPH, and described 

the qualifications, authorization process and responsibilities of an Authorized Reporter. 

Further, the revised Rule describes in detail the reporting requirements and process in 

connection with privately negotiated transactions, including required notification to the 

Exchange by Authorized Reporters and when a transaction is deemed fully reported. The 

revised Rule permits the Exchange to modify or cancel privately negotiated transaction 

under unusual circumstances and the Cboe Digital Trading System to reject transactions 

that do not conform to requirements, and makes clear the permissible communication 

technologies (e.g., bi-lateral only) that parties may use in connection with requesting and 

executing privately negotiated transactions. Finally, the revised Rule is explicit that a 

violation of Rule 603, or Rules 601 and 602, will constitute conduct inconsistent with just 

and equitable principles of trade. 

Additional Updates 

The Amendment makes non-substantive updates to other CDE rules to clarify and streamline rule 

text throughout the CDE Rulebook, including but not limited to: 
• Updating certain defined terms in CDE Rule 101 to make definitions consistent with the same 

defined terms in the CFE rulebook, to streamline definitional language, provide additional clarity 

around defined terms, relocate some defined terms to be in alphabetical order, and remove certain 

terms that are redundant of other defined terms6 or that are not otherwise used as defined terms in 

the CDE Rules (nor are defined terms in the CFE rulebook);

7

• Adding language in Rule 309 (Exchange Notices, as amended) to make explicit that any failure 

by the Exchange to publish a notice does not impact the effectiveness of any Rules, which is 

consistent with language in CFE Rule 310(b) regarding CFE notices; 

• Updating subparagraph (a) of CDE Rule 410 (Information Regarding Orders) to be consistent 

with corresponding CFE Rule 408 (Market Data and Related Agreements) and clarify that the 

Exchange can require TPHs and other entities that receive market data from the Exchange (or an 

Exchange Affiliate) to execute market data, connectivity or similar agreements. The Amendment 

also revises CDE Rule 410(b) to make it clear that a Participant maintains rights in its own data as 

between the Participant and the Exchange.8 The revisions to CDE Rule 410(a) and (b) to not 

materially alter the substance of the current provisions; 

• Harmonizing the language in CDE Rule 503 (Business Days and Trading Hours) with that of 

CFE Rule 402 (Trading Hours). The Exchange currently has and will continue to have the 

authority to determine business days and trading hours; and 

 

• Removing subparagraphs (a) and (b) to Rule 537 (Order Status, as amended). The description of 

customer and operational support available under CDE Rule 537(a) is not a rule requirement, 

participant or Exchange obligation, related to trading activity, nor otherwise necessary to include 

in the CDE Rulebook; such information is publicly available on the Exchange’s website and/or 

provided to TPHs. The liability provisions currently described under CDE Rule 537(b) are 

already covered under CDE Rule 536 (Limitation of Liability, No Warranties). 

Core Principle Compliance

CDE believes that the Amendment is consistent with the DCM Core Principles under Section 5 of 

the Act. In particular, CDE believes that the Amendment is consistent with the following DCM Core 

Principles:

• DCM Core Principle 2 (Compliance with Rules) because the Amendment updates, clarifies, and 

augments the CDE Rules with respect to compliance with CDE Rules regarding member 

eligibility, direct access, order submission requirements (including audit trail, OEO IDs, block 

trade and EDRP requirements), recordkeeping requirements, business conduct requirements, and 

rules prohibiting abusive trading practices on CDE’s market by TPHs and Participants; 

• DCM Core Principle 4 (Prevention of Market Disruption) in that by updating, clarifying, and 

augmenting CDE Rules that prohibit abusive trading practices on CDE’s market by TPHs and 

Participants, govern business conduct, govern recording and recordkeeping requirements 

(including audit trail, block trades, and EDRP), larger trader and ownership reporting, and 

requirements and processes regarding position limits and risk control mechanisms available to 

participants, the Amendment contributes to the prevention of manipulation, price distortion, and 

6 The current term “Rule or Rules”.

7 The current terms “Trade”, “Transaction”, and “Write, Written or Writing”. 8 The proposed language in CDE Rule 410(b) is consistent with Rule 901 of the Exchange’s affiliated CFTCregistered Swap Execution Facility, Cboe SEF, LLC. 
disruption of settlement process and the ability of CDE to obtain information in connection with 

the regulation, surveillance and enforcement of CDE’s market; 

• DCM Core Principle 5 (Position Limitations and Accountability) in that it provides additional 

clarity and guidance to CDE TPHs with respect to CDE position limits, including in connection 

with TPH obligations in connection with Exchange-established position limits and applying for 

exemptions; 

• DCM Core Principle 7 (Availability of General Information) in that the Amendment further 

clarifies the applicability of CDE Rules, and enhances CDE Rules in a manner that provides 

additional clarity and specificity throughout to facilitate increased understanding of CDE Rules 

by market participants; 

• DCM Core Principle 9 (Execution of Transactions) in that the Amendment adopts clear recording 

and recordkeeping requirements and timing and reporting mechanisms for privately negotiated 

transactions (i.e., Block Trades and EDRPs), thus improving CDE’s market by enhancing the 

transaction requirements and reporting process for privately negotiated transactions, and 

increasing transparency of such requirements and process in the Rules; 

• DCM Core Principle 10 (Trade Information) in that the Amendment will help CFE to administer 

an efficient and effective audit trail program to prevent and detect customer and market abuse; 

incorporates industry best practices related to the use of OEO IDs; and facilitates the collection of 

trade, position and ownership information that CDE may utilize in its surveillances, reviews and 

monitoring of activity on CDE; 

• DCM Core Principle 11 (Financial Integrity of Transactions) because the Amendment facilitates 

FCMs’ management of financial risk, by making explicit in the Rules that the Exchange 

implements and makes available risk control mechanisms, provides clarity that Clearing Members 

are able to set risk control parameters for their TPHs, and enhances the Rules regarding TPH 

compliance with minimum financial requirements, all of which contributes to the management by 

Clearing Members of their financial risk in relation to the trading activity of the TPHs for which 

they act as a Clearing Member; 

• DCM Core Principle 12 (Protection of Markets and Market Participants) in that the Amendment 

updates, clarifies, and augments CDE Rules designed to promote fair and equitable trading and to 

protect the market and participants in the market from abusive practices including fraudulent, 

noncompetitive, and unfair actions.; and 

• DCM Core Principle 18 (Recordkeeping) in that the Amendment updates CDE Rules related to 

books and records and recordkeeping requirements to provide additional clarity and specificity 

throughout such rules, thereby assisting the Exchange in maintaining records of activities related 

its business, including trade records. 

Certification

CDE believes that the impact of the Amendment will be beneficial to the public and market 

participants. CDE is not aware of any substantive opposing views to the Amendment. CDE hereby 

certifies that the Amendment complies with the Act and the regulations thereunder. CDE further certifies 

that it has posted a notice of pending certification with the Commission and a copy of this submission on 

the Cboe Digital website (https://www.cboedigital.com/regulation/exchange-notices/) concurrent with the 
filing of this submission with the Commission. 

If you have any questions regarding this submission, please contact the undersigned at the 

information below. 

Sincerely, 

/s/ Rebecca Tenuta

Rebecca Tenuta

Senior Counsel 

rtenuta@cboe.com

(773) 485-7926 
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Exhibit B

Amendments to the Cboe Digital Exchange Rulebook

(All deletions are struck-through, all additions are 

underlined, and all relocated text double struck-through 

and double underlined)

* * * * *

CHAPTER 1: DEFINITIONS

RULE 101. Definitions 

When used in this Rulebook the following terms shall have the respective meanings as follows: 

“Affiliate” of, or a Person “Affiliated” with another Person means, with respect to any Person, any

Person who, directly or indirectly, Controls, is Controlled by, or is under common Control with, 

such other Person.

“Appeal Panel” means a panel comprised of a chair and two individuals appointed by the Board 

to consider appeals under Chapter 7. 

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

ordinance of any governmental or self-regulatory authority applicable to such Person, including 

the CEA and CFTC Regulations, and state regulations where applicable.

“Authorized Broker” means a person who is either employed or is an agent of a Broker Firm and 

who is authorized to utilize Cboe Digital Exchange pursuant to the applicable Authorized Broker 

User ID Request Form.

“Authorized Representative” means any natural person who is employed and authorized by a 

Participant Trading Privilege Holder to represent the Trading Privilege Holder Participant in 

Exchange matters pursuant to Rule 307.

“Authorized Reporter” has the meaning set forth in Rule 602 in relation to Exchange of Derivatives 

for Related Position transactions and has the meaning set forth in Rule 601 and Rule 1206, as 

applicable, in relation to Block Trades.

“Authorized Trader” means any natural person who is either a employed or is an agent of a 

Clearing Firm or a Participant Firm andTrading Privilege Holder or who is authorized by a Trading 

Privilege Holder to utilize access the Cboe Digital Exchange on behalf of a Trading Privilege 

Holderpursuant to the applicable User ID Request Form. 
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“Block Trade” has the meanings a privately negotiated futures or options transaction in a Contract 

that meets (i) certain quantity thresholds and (ii) is permitted to be executed off the centralized 

market pursuant to these set forth in Rules 601 and Rule 1206, as applicable. 

“Board” means the Board of Managers of Cboe Digital Exchange, which manages the Exchange 

and is constituted from time to time in accordance with the Operating Agreement. 

“Broker Firm” means a person who is acting as a broker or performing an equivalent agency 

function on behalf of another person. The Clearing Firm is responsible for approving Broker Firms 

for such person pursuant to the applicable User ID Request Form.

“Business Day” means, in a given commodity, any day the Exchange is open for business on 

which a settlement price is determined in any Contract.

“Cboe Clear Digital” means Cboe Clear Digital, LLC, or its successor.

“Cboe Digital Exchange” or “Exchange” means Cboe Digital Exchange, LLC, or any successor 

thereto.

“Cboe Digital Exchange Rules” or “Rulebook” means all rules adopted, all Notices to Participants 

published by the Exchange or Clearing House, and the terms of any agreements, terms of use, 

interpretations, orders, resolutions, advisories, statements of policy, decisions, manuals and 

directives of Cboe Digital Exchange or the Clearing House, and all amendments thereto.

“Cboe Digital Exchange User License Agreement” or “EULA” means the Cboe Digital Exchange 

User License Agreement that must be entered into by any user of the Cboe Digital Trading 

System.

“CDIH” means Cboe Digital Intermediate Holdings, LLC, or any successor thereto.

“Cboe Digital Trading System” means the Cboe Digital Exchange electronic trade execution 

system that is used for trading Contracts, including any licensed software that is a part thereof 

from time to time, and any successor electronic trading system thereto.

“Cboe Digital Workstation” means any computer connected directly to the Cboe Digital Trading 

System, including by means of an Exchange defined protocol, for the purpose of trading 

Contracts.

“CFTC” or “Commission” means the U.S. Commodity Futures Trading Commission or any 

successor regulatory body.

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

“Chief Executive OfficerPresident” means the individual appointed by the Board as the 

Exchange’s chief executive officerPresident.

“Chief Regulatory Officer” means the individual appointed by the Board as the Exchange’s chief 

regulatory officer.
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“Clearing Firm” or “Clearing Member” a member of the Clearing House that is a Trading Privilege 

Holder and that is authorized under the Rules of the Clearing House to clear trades in any or all 

Contracts. Clearing Member may includes, as the context requires, Futures Clearing Members 

and/or Digital Asset Clearing Members. The term “Clearing Member” collectively refers to all 

Authorized Traders of a Clearing Member authorized to utilize Cboe Digital Exchange. means an 

entity or individual meeting the requirements of, and approved for, clearing membership at the 

Clearing House that is authorized pursuant to the Clearing House Rules to clear trades in any or 

all of the Contracts and that meets the qualification of the Exchange pursuant to Rule 902. A 

Clearing Firm is authorized to access Cboe Digital Exchange to effect transactions. A Clearing 

Firm may trade for its own proprietary account or an account on behalf of its Customer (e.g., as 

a broker). A Clearing Firm may trade on behalf of a Customer with an account at a different 

Clearing Firm acting as a broker or performing an equivalent agency function. The different 

Clearing Firm is responsible for approving the Clearing Firm for such Customers pursuant to a 

Clearing Participant Letter of Guarantee. The term “Clearing Firm” collectively refers to all 

Authorized Traders of a Clearing Firm authorized to utilize Cboe Digital Exchange.

“Clearing House” means the Cboe Clear Digital, LLC (“Cboe Clear Digital”) or such other clearing 

organization(s) as the Exchange may designate in the future to provide clearing services with 

respect to any or all of its Contracts. To the extent that the Exchange designates multiple clearing 

organizations to provide clearing services at any given time, the term Clearing Houses shall refer 

to any clearing organization designated to provide such services with respect to the Contract or 

Clearing Firm Member in question.

“Clearing House Rules” means the Articles of Organization, operating agreement, rules, policies, 

interpretation, stated policy, or instrument corresponding to any of the foregoing, in each case as 

adopted or amended from time to time by the Clearing House.

“Commodity Exchange Act” or “CEA” means the Commodity Exchange Act, as amended from 

time to time.

“Contract” means any Future, Option, Swap or Digital Asset contract, agreement, or transaction 

approved for trading on the Exchange or through the Cboe Digital Trading System, and pursuant 

to the Rules.

“Contract Market” has the meaning set forth in CFTC Regulation § 1.3(h).

“Contract Specifications” means, with respect to any Contract, the rules or other trading protocols 

containing specifications for such Contract, as adopted, amended, supplemented or otherwise 

modified from time to time by the Exchange.

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

the management and policies of a Person, whether through the ownership of securities, by 

contract, or otherwise. The terms “controlling” or “controlled” shall have meanings correlative to 

the foregoing.

“Customer” means any Person for whom for whom a Trading Privilege Holder or Participant 

carries an account (other than such Trading Privilege Holder or Participant or any Affiliates of 

such Trading Privilege Holder or Participant) or from whom a Trading Privilege Holder or 
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Participant solicits or accepts an Order.means a person who is, but is not limited to, a customer 

of a Clearing Firm, Participant Firm, or Broker Firm. 

“Customer Account” means an account carried by a Clearing Firm on behalfthe account of a 

Participant or Customer.

“Daily Settlement Price” or “Settlement Price” means the official daily closing price for a Contract 

calculated each Business Day, as determined in accordance with Rule 906, and used for all open 

positions interest at the close of the daily settlement cycle. 

“Derivatives Clearing Organization” has the meaning set forth in Section 1a(15) of the CEA.

“Digital Asset Clearing Member” means a member of the Clearing House that is a Digital Asset 

Trading Privilege Holder and that is authorized by the Clearing House to clear trades in Digital 

Asset Contracts.

“Digital Asset Trading Privileges” means a permit conferred by the Exchange on any Person in 

accordance with Rule 302 to access the Cboe Digital System to trade in Digital Asset Contracts 

and to enter into Block Trades in Digital Asset Contracts in accordance with the Rules of the 

Exchange.

“Digital Asset Trading Privilege Holder” means any Person holding Digital Asset Trading 

Privileges. The term “Digital Asset Privilege Holder” collectively refers to all Digital Asset Privilege 

Holders and Authorized Traders of a Digital Asset Privilege Holder authorized to utilize Cboe 

Digital Exchange.

“Digital CurrencyAsset” means a type of digital unit or asset that is used as a medium of exchange 

or form of digitally stored value. Examples of Digital Currency Assets include Bitcoin and Ether. 

“Direct Member” means a person or entity who accesses the services of the Exchange without 

being a Customer of a Clearing Firm.

“Director” means any member of the Board.

“Disciplinary Panel” means the panel appointed by the Board at the recommendation of the Chief 

Regulatory Officer to act in an adjudicative role and fulfill various adjudicative responsibilities and 

duties described in Chapter 7. 

“EEA Retail Investor” means any person or entity located in the European Economic Area that 

does not qualify as a “professional client” as defined in Directive 2014/65/EU of the European 

Parliament and of the Council of 15 May 2014 on markets in financial instruments, as such term 

may be amended, restated or superseded from time to time.

“Eligible Contract Participant” has the meaning set forth in Section 1a(18) of the CEA, as 

amended, and CFTC rules promulgated thereunder.

“Emergency” means the occurrences or circumstances which, in the opinion of the Board, require 

immediate action, and which threaten, or may threaten, the fair and orderly trading in, or the 

settlement or integrity of, any Contract, including, without limitation, the following:
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(i) any circumstance that may materially affect the performance of a Contract, including 

but not limited to failure of the Cboe Digital Trading System or the Clearing House 

system;

(ii) any action taken by any domestic or foreign regulatory, self-regulatory, judicial, 

arbitral, or governmental (whether national, state or municipal) or quasi-governmental 

authority, or any agency, department, instrumentality, or sub-division thereof; or other 

Person exercising, or entitled to exercise any administrative, executive, judicial, 

legislative, police, regulatory or taxing authority or power; or any other Contract 

Market, clearing house, board of trade, or other exchange or trade association (foreign 

or domestic) that may have a direct impact on trading on the Exchange or the

settlement legality or enforceability of any Contract;

(iii) any actual, attempted or threatened corner, squeeze, congestion, manipulative activity 

or undue concentration of positions in a Contract;

(iv) any circumstance that may have a severe, adverse effect upon the fFunctions and 

facilities of the Exchange, including, but not limited to, acts of God, fire, flood or other 

natural disasters, bomb threats, acts of terrorism or war, severely inclement weather, 

or failure or malfunction of all or a portion of the Cboe Digital Trading System, or other 

system breakdowns or interruptions such as power, computer, communication or 

transportation systems or the Internet;

(v) the bankruptcy or insolvency of any Clearing Firm Member or the imposition of any 

injunction or other restraint by any government agency, clearing house, court or 

arbitrator upon a Clearing Firm Member which may affect the ability of a Clearing 

MemberFirm to trade in or perform on a Contract;

(vi) any circumstance in which it appears to the Board that a Clearing Firm or any other 

PersonParticipant:

(A) has failed to perform on a Contract;

(B) is insolvent; or

(C) is in a financial or operational condition or is conducting business such that the 

Clearing Firm Member or Person cannot be permitted to continue in business 

without jeopardizing the safety of Customer funds, Trading Privilege Holders, 

Participants, other Clearing Firms, the Exchange or the Clearing House; 

(vii) Any circumstance which may have a material impact on the reliability or transparency 

of the underlying commodity market related to the Products; or 

(viii) any other unusual, unforeseeable or adverse circumstance as determined by the 

Exchange.

“Emergency Rules” has the meaning set forth in Rule 212(a).

“Cboe Clear Digital” means Cboe Clear Digital, LLC, or its successor.

“Cboe Digital Exchange” or “Exchange” means Cboe Digital Exchange, LLC, or any successor 

thereto.

“Cboe Digital Exchange Rules” or “Rulebook” means all rules adopted, all Notices to Participants 

published by the Exchange or Clearing House, and the terms of any agreements, terms of use, 
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interpretations, orders, resolutions, advisories, statements of policy, decisions, manuals and 

directives of Cboe Digital Exchange or the Clearing House, and all amendments thereto.

“Cboe Digital Exchange User License Agreement” or “EULA” means the Cboe Digital Exchange

User License Agreement that must be entered into by any user of the Cboe Digital Trading 

System.

“CDIH” means Cboe Digital Intermediate Holdings, LLC, or any successor thereto.

“Cboe Digital Market Operations” or “EMO” means the Cboe Digital Exchange Market Operations 

department, a technical support center established and maintained by Cboe Digital to provide 

technical support and control over the operations of the Cboe Digital Trading System.

“Cboe Digital Trading System” means the Cboe Digital Exchange electronic trade execution 

system that is used for trading Contracts, including any licensed software that is a part thereof 

from time to time, and any successor electronic trading system thereto.

“Exchange Activity” means business for which a Clearing FirmMember, FCM, Trading Privilege 

Holder, Participant, or other Ppersons, is subject to the Cboe Digital Exchange Rules, which is 

purportedly conducted subject to the Cboe Digital Exchange Rules, or which should have been 

conducted subject to the Cboe Digital Exchange Rules.

“Exchange of Derivatives for Related Positions” or “EDRP” or “Exchange of Futures for Related 

Positions” or “EFRP” has the meaning set forth in Rule 602.

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

Exchange or the Clearing House, or any individual rendering similar services to the Exchange 

under an administrative or similar agreement.

“Exchange Practices Committee” means the committee of the Board constituted in accordance 

with Rule 210.

“Exchange Proceeding” and “Exchange Proceedings” have the meanings attributed to such terms 

in Rule 213(a).

“Founding Owner” means a Participant that has made an equity investment in CDIH. 

“Future” means any Contract for the purchase or sale of any commodity for future delivery from 

time to time traded on or subject to the Rules of the Exchange.

“Futures Clearing Member” means a member of the Clearing House that is a Futures Asset 

Trading Privilege Holder and that is authorized by the Clearing House to clear trades in Futures 

Contracts.

“Futures Commission Merchant” or “FCM” has the meaning set forth in Section 1a(28) of the CEA.

“Futures Trading Privileges” means a permit conferred by the Exchange on any Person in 

accordance with Rule 302 to access the Cboe Digital System to trade in Futures Contracts and 

to enter into EDRP transactions and Block Trades in Futures Contracts in accordance with the 

Rules of the Exchange.
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“Futures Trading Privilege Holder” means any Person holding Futures Trading Privileges. Futures 

Trading Privilege Holders shall be deemed to be members of the Exchange for purposes of the 

CEA and Commission Regulations thereunder. The term “Futures Privilege Holder” collectively 

refers to all Futures Privilege Holders and Authorized Traders of a Futures Privilege Holder 

authorized to utilize Cboe Digital Exchange.

“Government Agency” means any governmental entity (including the United States, a State, or a 

foreign government).

“Independent Software Vendor” or “ISV” means any Person that offers services that provide 

access to the Cboe Digital Trading System. In order to provide access to the Cboe Digital Trading 

System the ISV must enter into a Third-Party Connectivity Agreement with the Exchange and be 

approved by the Exchange.

“Interested Person” has the meaning attributed to such term in Rule 213(a).

“Introducing Broker” or “IB” has the meaning set forth in Section 1a(31) of the CEA and includes 

a Broker Firm.

“Joint Audit Committee” means the voluntary, cooperative organization comprised of 

representatives of U.S. futures exchanges and self-regulatory organizations, including the 

Exchange. The Joint Audit Committee's primary responsibility is to oversee the implementation 

and functioning of all terms and conditions of the Joint Audit Agreement and to determine the 

practices and procedures to be followed by each Designated Self-Regulatory Organization in the 

conduct of audits and financial reviews of FCMs.

“Joint Compliance Committee” means the information sharing organization whose members 

include compliance officials from all U.S. Designated Contract Markets, including the Exchange.

“Liquidity Provider” means a Participant Trading Privilege Holder that has entered into a Liquidity 

Provider Agreement, which provides the Trading Privilege Holder Participant with certain 

incentives as a liquidity provider.

“Market Regulation Department” means all Exchange Officials and/or agents of the Exchange 

that assist the Exchange in the implementation, surveillance and enforcement of the Cboe Digital 

Exchange Rules and other Obligations.

“Exchange Notice to Participants” means a communication sent by or on behalf of the Exchange 

or the Clearing House to all Participants Trading Privilege Holders as described in Rule 309.

“Obligation” means each Rule of the Exchange, order or procedure issued by the Exchange, 

including Exchange Notices to Participants, and other requirements implemented by the 

Exchange under the Cboe Digital Exchange Rules, including each term of a Contract, as well as 

any contractual obligations between a Trading Privilege Holder or ParticipantClearing Firm, 

Participant, Broker Firm, and the Exchange, including the Participant Documentation.

“Officer” has the meaning attributed to such term in Rule 203.
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“Operating Agreement of Cboe Digital Exchange” or “Operating Agreement” means the Second 

Amended and Restated Limited Liability Company Agreement of Cboe Digital Exchange LLC, 

dated as of [*], as the same may be amended or otherwise modified from time to time.

“Option” means any Option to buy or sell any Contract traded subject to the Cboe Digital 

Exchange Rules.

“Order” means either a bid or an offer for a Contract. The following Order types are available on 

the Cboe Digital Trading System and may be amended from time to time:

(a) Limit means a simple order executed when a specific price is met. 

(b) Stop Limit means an order that is similar to Stop Loss order with a difference that it 

activates a Limit order when market rate condition of the stop price is met.

“Order Qualifiers” means the following order duration qualifiers supported by the Cboe Digital

Trading System. An Order eligible to be entered into the Cboe Digital Trading System that does 

not contain a duration qualifier will be cancelled if not filled during the trading day in which it was 

received or, if it was received between trading days, during the next trading day. An Order may 

specify one of the following duration qualifiers:

(a) “Good Till Cancel” (GTC) means an Order that will remain in the market until executed or 

manually cancelled.

(b) “Immediate or Cancel” (IOC) means an Order that will either be immediately executed or 

cancelled. 

(c) “Good Till Date” (GTD) means an Order that will remain in the market until the end of the 

trading session on a specified date.

(d) “Fill or Kill” (FOK) means an Order in which the full quantity of the Order will either be 

immediately executed or canceled.

“Other Trading Hours” or “OTH” means, if applicable, the times available for trading block trades 

and EDRPs when the public auction market is closed.

“Participant” has the meaning set forth in Rule 314(d)means a Clearing Firm, Broker Firm, Direct 

Member, or Participant Firm; any person who is either employed or is an agent of a Clearing Firm, 

Broker Firm, or Participant Firm; an ISV; or any Person initiating or executing a transaction on or 

subject to the Rules of the Exchange directly or through an intermediary, or any person who is 

authorized to access or utilize Cboe Digital Exchange pursuant to the applicable User ID.

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

applicable schedules, exhibits or appendices thereto required by the Exchange or Clearing 

House) in form and substance acceptable to the Exchange, that are required to be executed and 

delivered to the Exchange or Clearing House before a Person may access the Cboe Digital

Trading System.

“Participant Firm” means a person that is authorized under the Participant Documentation to have 

access to Cboe Digital Exchange (e.g., a customer of a Clearing Firm enters orders directly into 

the Exchange’s trade matching system for execution through the use of a user identification in 
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the Participant Firm’s name). A Participant Firm may trade for its own proprietary account. In 

certain cases, a Participant Firm may trade for an account on behalf of its Customer. A Participant 

Firm may also trade on behalf of a Customer with an account at a Clearing Firm other than the 

Participant Firm’s Clearing Firm acting as a broker or performing an equivalent agency function. 

The Clearing Firm is responsible for approving Participant Firms for such Customers pursuant to 

the applicable form to the Cboe Digital Exchange Clearing Firm Agreement. The term “Participant 

Firm” collectively refers to all Participants and Authorized Traders of a Participant Firm authorized 

to utilize Cboe Digital Exchange.

“Person” means any natural person, sole proprietorship, association, partnership, limited liability 

company, joint venture, trust, corporation or other type of entity or organization. means a natural 

person or entity.

“Privileges of Membership,” for purposes of NFA Bylaw 1301, shall be granted to any Participant 

that is a Founding Owner or Liquidity Provider as set forth in Rule 305. 

“Proprietary Account” has the meaning ascribed to it by CFTC Regulation § 1.3.

“Public Director” means an individual with the qualifications set forth in Rule 202(e).

“Public Individual” means an individual that is determined by the Board or Chief Regulatory 

Officer, as applicable, to have no “material relationship” with the Exchange, as such term is used 

in Rule 202(e).

“Regular Trading Hours” or “RTH” means those hours designated for public auction trading of the 

relevant product Contract as may be determined by the Exchange from time to time.

“Regulatory Oversight Committee” means the committee of the Board constituted in accordance 

with Rule 208.

“Related Party Means” means, with respect to any Trading Privilege Holder: any partner, director, 

officer, branch manager, employee or agent of such Trading Privilege Holder (or any Person 

occupying a similar status or performing similar functions); any Person directly or indirectly 

Controlling, Controlled by, or under common Control with, such Trading Privilege Holder; or any 

Authorized Trader of such Trading Privilege Holder.

“Rule” or “Rules” means the Participant Documentation, Rulebook, interpretations, orders, 

resolutions, advisories, notices, statements of policy, decisions, manuals, and directives of the 

Exchange or Clearing House.

“Self-Regulatory Organization” shall, unless otherwise provided, have the meaning set forth in 

CFTC Regulation § 1.3(ee) and, in addition, shall include a Contract Market, Derivatives Clearing 

Organization, and registered futures association.

“Supervised Persons” means any directors, officers, employees or agents of any Participant, 

including but not limited to Authorized Traders and Authorized Brokers.
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“Technology Services Agreement” means the agreement(s) between the Exchange and 

Technology Services Provider(s) whereby technology services are provided to the Exchange.

“Technology Services Provider” means an organization, if any, which provides technology 

services to the Exchange pursuant to a Technology Services Agreement

“Trade” means any purchase or sale of any Contract made on the Exchange or through the Cboe 

Digital Trading System.

“Trading Hours” means, for any Business Day, the hours that trading in any Contract may regularly 

be conducted. Trading Hours shall include any regular and other trading hours in a relevant 

Contract’s specifications under the Rules and published on the Exchange’s website. Except to 

the extent expressly permitted by the Rules of the Exchange, no Trading Privilege Holder 

(including its Authorized Traders) shall engage in any transaction in any Contract before or after 

such hoursas may be published by the Exchange in a Notice to Participants from time to time.

“Trading Privilege Holder” means any Person holding Trading Privileges. Trading Privilege Holder 

may include, as the context requires, Digital Asset Trading Privilege Holders and/or Futures 

Trading Privilege Holders. 

“Trading Privileges” means Futures Trading Privileges and Digital Asset Trading Privileges.the 

right granted to a Participant to transmit Orders for certain or all Contracts through the Cboe 

Digital Trading System.

“Transaction” means any purchase or sale of any Contract made on the Exchange or through the 

Cboe Digital Trading System.

“Write,” “Written” or “Writing” means printing, photography, and other modes of representing or 

reproducing words or data in a visible form, including electronic transmissions.

The following rules of construction shall apply to the Cboe Digital Exchange Rules:

(i) the headings are for convenience only and do not affect the construction of the Cboe 

Digital Exchange Rules;

(ii) all references to time are to local time in Chicago, Illinois except where expressly 

provided otherwise;

(iii) words denoting a singular number include the plural number where the context permits 

and vice versa;

(iv) where the context permits or requires, any pronoun shall include the corresponding 

masculine, feminine and gender neutral forms;

(v) references to statutory provisions include those provisions as amended, and any rules 

or regulations promulgated thereunder.
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CHAPTER 2: EXCHANGE OWNERSHIP AND GOVERNANCE

RULE 201. Ownership

Cboe Digital Exchange is a Delaware Limited Liability Company. The limited liability company 

agreement of Cboe Digital Exchange governs the management and operation of Cboe Digital 

Exchange (“Cboe Digital Exchange Operating Agreement”). CDIH owns the equity interest in 

Cboe Digital Exchange. 

RULE 202. Board

(a) The Board shall manage the day to day business operations of the Exchange. The Board has 

the power and authority to call for review, and to affirm, modify, suspend or overrule, any and 

all decisions and actions of standing committees or special committees of the Board or any 

panel of the Officers related to the day to day business operations of the Exchange.

(b) The Board may act only by the decision of an absolute majority in number of the Directors by 

vote at a meeting, by unanimous written consent without a meeting, or as otherwise set forth 

in the Cboe Digital Exchange Operating Agreement.

(c) At all times, at least 35% of the Directors shall be Public Directors. Each Director (including 

Public Directors) shall be appointed in accordance with the Cboe Digital Exchange Operating 

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

earlier resignation or removal, with or without cause.

(d) Each Director is entitled to indemnification pursuant to the Cboe Digital Exchange Operating 

Agreement with respect to matters relating to the Exchange or otherwise relating to CDIH.

(e) To qualify as a Public Director, an individual must be found, by action of the Board, to have 

no material relationship with the Exchange. The Board must make such finding upon the 

nomination or appointment of the Director and as often as necessary in light of all 

circumstances relevant to such Director, but in no case less than annually.

A “material relationship” is one that reasonably could affect the independent judgment or 

decision-making of the Director. In making the finding specified in this Rule, the Board need 

not consider previous service as a Director of the Exchange to constitute a “material 

relationship.” A Director shall be considered to have a “material relationship” with the 

Exchange if any of the following circumstances exist or have existed within the past year: 

(1) Such Director is an Officer or an employee of the Exchange, or an officer or an employee 

of an Affiliate of the Exchange;

(2) Such Director is a Participant Trading Privilege Holder or Owner of the Exchange;

(3) Such Director is a director, an officer, or an employee of a Participant Trading Privilege 

Holder or Owner of the Exchange;

(4) Such Director is an officer of another entity, which entity has a compensation committee 

(or similar body) on which any Officer of the Exchange serves;
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(5) Such Director, or an entity with which the Director is a partner, an officer, an employee, or 

a director, receives more than $100,000 in combined annual payments for legal, 

accounting, or consulting services from the Exchange or its Affiliate, any member of the 

Exchange, or any Affiliate of such member. Compensation for services as a Director of 

the Exchange or as a director of an Affiliate thereof does not count toward the $100,000 

payment limit, nor does deferred compensation for services rendered prior to becoming a 

Director, so long as such compensation is in no way contingent, conditioned, or revocable; 

or,

(6) Notwithstanding Rule 202(e)(5), in the case of a public director that is a member of the 

Regulatory Oversight Committee or the Exchange Participant Committee, such public 

director accepts, directly or indirectly, any consulting, advisory, or other compensatory fee 

from the Exchange or its Affiliate or any member of the Exchange or the member’s 

Affiliate, other than deferred compensation for services rendered prior to becoming a 

member of the Regulatory Oversight Committee or the Exchange Committee, provided 

that such compensation is in no way contingent, conditioned, or revocable. This Rule 

202(e)(6) does not apply to compensation received in the public director’s capacity as a 

member of the Regulatory Oversight Committee or Exchange Participant Committee.

(f) Any of the relationships set forth in Rule 202(e)(1) through Rule 202(e)(6) apply to the 

“immediate family” of such director, i.e., spouse, domestic partner, parents, children, and 

siblings, in each case, whether by blood, marriage, or adoption, or any person residing in the 

home of the director or that of his or her “immediate family.”

(g) A Public Director of any Exchange specified in Rule 202 may also serve as a public director 

of an Affiliate of the Exchange if he or she otherwise meets the requirements set forth in Rule 

202(e)(1) through Rule 202(e)(6).

RULE 203. Officers

(a) The Board shall appoint a Chief Executive Officer, a Chief Regulatory Officer, and such other 

officers of the Exchange (all of the foregoing, collectively, the “Officers”) as it may deem 

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

(b) Any Officer may also be a director, officer, partner or employee of the Exchange or any of its 

Affiliates. 

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

Board may prescribe from time to time. 

(d) Each Director and Officer is entitled to indemnification pursuant to the Operating Agreement 

with respect to matters relating to the Exchange or otherwise relating to CDIH.

RULE 204. Qualifications of Directors, Disciplinary Panel Members, Appeal 

Panel Members, Committee Members, Owners and Officers

(a) A Director or Officer must meet the qualifications set forth from time to time in the Operating 

Agreement.
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(b) An individual may not serve as a Director or an Officer, or serve on a committee established 

by the Board, a Disciplinary Panel or an Appeal Panel, or hold a 10% or more ownership 

interest in the Exchange, if the individual:

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

proceeding brought in a court of competent jurisdiction, the CFTC, or any Self-Regulatory 

Organization, to have committed a disciplinary offense;

(b) within the prior three (3) years has entered into a settlement agreement in which any of 

the findings or, in the absence of such findings, any of the acts charged, included a 

disciplinary offense;

(c) is currently suspended from trading on a Contract Market, is suspended or expelled from 

membership in a Self-Regulatory Organization, is serving any sentence or probation, or 

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

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

brought in a court of competent jurisdiction, the CFTC, or any Self-Regulatory 

Organization; or

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

any of the acts charged included a disciplinary offense;

(d) is currently subject to an agreement with the CFTC or any Self-Regulatory Organization 

to not apply for registration with the CFTC or for membership in the Self-Regulatory 

Organization;

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

suspension of registration by the CFTC or subject to any of the conditions set forth in 

section 8a(2) of the CEA;

(f) has been convicted of a felony listed in section 8a(2)(D)(ii) through (iv) of the CEA; or

(g) is currently subject to a denial, suspension or disqualification from serving on a disciplinary 

committee, arbitration panel or governing board of any self-regulatory organization as that 

term is defined in CFTC Regulation § 1.63 and section 3(a)(26) of the Securities Exchange 

Act of 1934.

(c) Any Director, Officer, member of a committee established by the Board, any member of a 

Disciplinary Panel, or Appeal Panel, any individual nominated to serve in any such role, or 

any individual authorized by the Market Regulation Department to take summary action shall 

immediately notify the Chief Executive Officer if such individual meets one or more of the 

criteria in Rule 204(b).

(d) For purposes of Rule 204(b), the terms “disciplinary offense,” “final decision,” and “settlement 

agreement” have the meanings set forth in CFTC Regulation § 1.63(a).
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RULE 205. Standing Committees

(a) The Board shall have three standing committees: the “Exchange Participant Committee,” the 

“Regulatory Oversight Committee,” and the “Exchange Practices Committee.” The Board may 

from time to time constitute and appoint in accordance with the Operating Agreement, such 

additional standing committees of the Board as it may from time to time deem necessary or 

advisable.

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

designate as the chairperson of each standing committee.

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

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

the Board.

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

and form in which its proceedings shall be conducted. Each standing committee may act only 

by the decision of an absolute majority in number of the members of such committee, by a 

vote at a meeting or by unanimous written consent without a meeting. The Board has the 

authority to overrule the decision of a standing committee.

RULE 206. [Reserved]

RULE 207. Exchange Participant Committee

(a) The Exchange Participant Committee of the Board shall consist of Directors appointed from 

time to time by the Board, of which at least 35% shall be Public Directors. 

(b) The Exchange Participant Committee shall:

(1) Determine the standards and requirements for initial and continuing Participant Trading 

Privilege Holder eligibility;

(2) Review appeals of staff denials of Trading Privilege Holder Participant applications; and

(3) Approve rules that would result in different categories or classes of Participants receiving 

disparate access to the Exchange.

(c) In reviewing appeals of staff denials of Trading Privilege Holder Participant applications, the 

Exchange Participation Committee shall not uphold any staff denial if the relevant application 

meets the standards and requirements that such Committee sets forth.

(d) The Exchange Participant Committee shall not, and shall not permit the Exchange to, restrict 

access or impose burdens on access in a discriminatory manner, within each category or 

class of Trading Privilege Holder Participants or between similarly-situated categories or 

classes of Trading Privilege Holder Participants. 
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(e) The Exchange Participant Committee reports to the Board.

RULE 208. Regulatory Oversight Committee

(a) The Regulatory Oversight Committee of the Board shall consist of Public Directors appointed 

from time to time by the Board (i.e. 100% Public Directors). 

(b) Each member of the Regulatory Oversight Committee shall serve for a term of two calendar 

years from the date of their appointment or for the remainder of their term as a Public Director, 

and until the due appointment of his or her successor, or until his or her earlier resignation or 

removal, with or without cause, as a member of the Regulatory Oversight Committee or as a 

Public Director. A member of the Regulatory Oversight Committee may serve multiple terms.

(c) The Regulatory Oversight Committee shall oversee the Exchange’s regulatory program on 

behalf of the Board. The Board shall delegate sufficient authority, dedicate sufficient 

resources, and allow sufficient time for the Regulatory Oversight Committee to fulfill its 

mandate. It shall make such recommendations to the Board as will, in its judgment, best 

promote the interests of the Exchange. The Regulatory Oversight Committee shall also have 

such other powers and perform such other duties as set forth in the Rules and as the Board 

may delegate to it from time to time.

(d) Without limiting the generality of the foregoing, the Regulatory Oversight Committee shall 

have authority to:

(1) Monitor the regulatory program of the Exchange for sufficiency, effectiveness, and 

independence;

(2) Oversee all facets of the regulatory program, including:

(i) Trade practice and market surveillance; audits, examinations, and other regulatory 

responsibilities with respect to Trading Privilege Holders Participants (including 

compliance with, if applicable, financial integrity, financial reporting, sales practice, 

recordkeeping, and other requirements); and the conduct of investigations;

(ii) Reviewing the size and allocation of the regulatory budget and resources, and the 

number, hiring, termination, and compensation of regulatory personnel;

(iii) Supervising the Chief Regulatory Officer of the Exchange, who will report directly to 

the Regulatory Oversight Committee;

(iv) Recommending changes that would ensure fair, vigorous, and effective regulation; 

and

(v) Reviewing all regulatory proposals prior to implementation and advising the Board as 

to whether and how such changes may impact regulation.

(e) The Regulatory Oversight Committee reports to the Board.

RULE 209. Chief Regulatory Officer

(a) It shall be the duty of the Chief Regulatory Officer to enforce the Rules.
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(b) The Chief Regulatory Officer shall have available to it at all times the resources of the Market 

Regulation Department and such other Exchange resources as may be necessary to conduct 

investigations of alleged rule violations and market conditions. 

(c) The Chief Regulatory Officer shall report to, and shall be supervised by, the Regulatory 

Oversight Committee. 

(d) The Chief Regulatory Officer shall have the authority to inspect the books and records of all 

Trading Privilege Holders Participants and the authority to require any Trading Privilege 

Holder Participant to appear before him or her and produce its books and records and answer 

questions regarding alleged violations of Cboe Digital Exchange Rules, at the time, place and 

in the manner it designates. The Chief Regulatory Officer may also delegate such authority 

to staff of the Market Regulation Department.

RULE 210. Exchange Practices Committee

(a) The Exchange Practices Committee of the Board shall consist of Directors appointed from 

time to time by the Board, of which at least 35% shall be Public Directors.

(b) The Exchange Practices Committee shall be responsible for:

(1) establishing and modifying from time to time Contract specifications and trading protocols 

and conventions for the Exchange,

(2) establishing and modifying position limits or accountability levels, 

(3) designating and modifying from time to time products eligible for listing on the Exchange 

and

(c) In addition, the Exchange Practices Committee shall have such other powers and perform 

such other duties as set forth in the Cboe Digital Exchange Rules and as the Board may 

delegate to it from time to time. 

RULE 211. Additional Board Committees and Exchange Panels

(a) In addition to the standing committees, the Board may from time to time constitute and 

appoint, in accordance with the Operating Agreement, special committees of the Board and 

designate their composition, responsibilities and powers. Each member of such special 

committees must be a Director and at least 35% of the members shall be Public Directors.

(b) The Exchange may create panels of the Exchange, for such purposes as may from time to 

time be necessary or advisable. Members of each such panel may be Directors, Trading 

Privilege HolderParticipants (if individuals) or any of a Participants Trading Privilege Holder’s 

Supervised Persons Related Parties (if an entity) or such other individuals as may be qualified 

to serve on such panel.
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(c) Except as otherwise specifically provided in the Rules, the members of any additional 

committee or panel shall be appointed as determined by the Board. The Board shall designate 

the chairperson of such additional committee or panel.

(d) Each additional committee or panel shall assist in the supervision, management and control 

of the affairs of the Exchange within its particular area of responsibility.

(e) Subject to the authority of the Board, each additional committee or panel shall determine the 

manner and form in which its proceedings shall be conducted. Each additional committee or 

panel may act only by the decision of an absolute majority in number of the members of such 

committee or panel, either by vote at a meeting or by unanimous written consent without a 

meeting.

RULE 212. Emergency Rules

(a) During an Emergency, the Board may implement temporary emergency procedures and rules 

(“Emergency Rules”), subject to the applicable provisions of the CEA and CFTC Regulations. 

Emergency Rules may require or authorize the Exchange, the Board, any committee of the 

Board, the Chief Executive OfficerPresident, or any other Officer to take actions necessary or 

appropriate to respond to the Emergency, including, but not limited to, the following actions:

(1) suspending or curtailing trading or limiting trading to liquidation only (in whole or in part);

(2) extending or shortening the last trading date for Contracts;

(3) providing alternative settlement mechanisms;

(4) ordering the liquidation of Contracts, the fixing of a Settlement Price, or the reduction of 

positions;

(5) extending, limiting or changing the Trading Hours;

(6) temporarily modifying or suspending any provision of the Cboe Digital Exchange Rules or 

Obligations;

(7) requiring Trading Privilege Holders Participants to meet special margin requirements;

(8) imposing or modifying price limits; and/or

(9) imposing or modifying position limits.

(b) Before any Emergency Rule may be adopted and enforced, a required vote of the Board must 

approve the enforcement of such Emergency Rule at a duly convened meeting. Directors 

may attend such a meeting by teleconference. If the Chief Executive Officer determines that 

Emergency Rules must be implemented with respect to an Emergency before a meeting of 

the Board can reasonably be convened, then the Chief Executive Officer shall have the 

authority, without Board action, to implement any Emergency Rules with respect to such 

Emergency that he or she deems necessary or appropriate to respond to such Emergency. 

In such circumstances, the Chief Executive Officer must convene a meeting as soon as 

practicable.
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(c) Whenever the Exchange, the Board, any committee of the Board, or the Chief Executive 

Officer takes actions necessary or appropriate to respond to an Emergency, a duly appointed 

representative of the Exchange, where possible, will post an announcement in an Exchange 

Notice to Participants. When the Board, any committee of the Board or the Chief Executive 

Officer determines that the Emergency has been reduced sufficiently to allow the Exchange 

to resume normal functioning, any such actions responding to an Emergency will be 

terminated.

(d) The Exchange will use reasonable efforts to notify the CFTC prior to implementing, modifying

or terminating an Emergency Rule. If such prior notification is not possible or practicable, the 

Exchange will notify the CFTC as soon as possible or reasonably practicable, but in all cases 

such notification will take place no later than twenty-four hours after the implementation, 

modification, or termination of an Emergency Rule. Notwithstanding the foregoing, the 

Exchange will certify any Emergency Rule to the Commission.

(e) Upon taking any action in response to an Emergency, the Exchange will document the 

decision-making process related to such action. Such documentation will be kept for at least 

five years following the date on which the Emergency ceases to exist or to affect the 

Exchange, and all such documentation will be provided to the CFTC upon request.

RULE 213. Conflicts of Interest and Misuse of Material Non-Public 

Information

(a) No Director, Officer, Disciplinary Panel member or other Person authorized to exercise the 

Exchange’s authority concerning any inquiry, investigation, disciplinary proceeding or any 

appeal from a disciplinary proceeding, summary suspension, other summary actions, 

“disciplinary committee” or “oversight panel” (both as defined in Commission Regulation § 

1.69) (any such action, an “Exchange Proceeding” and, collectively, “Exchange 

Proceedings”), significant action, or Emergency action taken pursuant to Rule 212 (each such 

Exchange Proceeding or Emergency action, a “Self-Regulatory Action”) will knowingly 

participate in such body’s deliberations or voting in any matter involving a Self-Regulatory 

Action where such member has a “material conflict of interest” (each, an “Interested Person”), 

except as described in Rule 213(d). For purposes of this Section 213(a), the term “significant 

action” means (1) any action or Rule change that addresses a specific Emergency or (1) any 

change in margin level that is designed to respond to extraordinary market conditions or that 

otherwise is likely to have a substantial effect on prices in any Contract.

(b) For purposes of Rule 213(a), a “material conflict of interest” means a Director, Officer, 

Disciplinary Panel Member or other Person:

(1) being named as a respondent or potential respondent in the Self-Regulatory Action;

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

respondent in the Self-Regulatory Action;

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

respondent in the Self-Regulatory Action, excluding relationships limited to executing 
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Contracts opposite each other or to clearing Contracts through the same Clearing 

FirmMember;

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

Action (including the individual’s spouse, domestic partner, cohabitator, former spouse, 

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

grandchild, uncle, aunt, nephew, niece, father-in-law, mother-in-law, brother-in-law or 

sister-in-law); 

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

based upon either exchange or non-exchange positions (as referenced in Section § 1.69 

of the CFTC Regulations), other than a direct or indirect equity or other interest in CDIH, 

that could reasonably be expected to be affected by the action, as determined pursuant 

to Rule 213(c)(2) below. A direct and substantial financial interest includes positions in 

Contracts in accounts of, controlled by, or affiliated with the Interested Person or in any 

other types of direct and substantial financial positions of the Interested Person that are 

reasonably expected to be affected by the deliberations or vote; and/or

(6) any other circumstance that gives rise to a conflict between the Director’s, Officer’s, 

Disciplinary Panel Member’s or Other Person’s exercise of authority concerning any SelfRegulatory Action and his or her personal interests.

(c) Disclosure, Procedure, and Determination

(1) Prior to consideration of any Self-Regulatory Action, each member of the deliberating body 

who chooses to participate in any deliberations or vote will disclose to the Chief Regulatory 

Officer whether such member has one of the relationships listed in Rule 213(b) above.

(2) In addition to the information set forth in Rule 213(c)(1) above, for any matter involving the 

relationship set forth in Rule 213(b)(5), each member of the deliberating body who 

chooses to participate in any deliberations or vote will disclose to the Chief Regulatory 

Officer position information (including information regarding positions held by such 

member, positions held by individuals of such member’s family and positions held by a 

firm with which such member is affiliated) that is known to such member with respect to 

any particular month or months that are under consideration, and any other positions 

which the deliberating body reasonably expects could be affected by the significant action, 

as follows:

i. gross positions held at the Exchange in such member’s personal accounts or 

“controlled accounts,” as defined in Commission Regulation § 1.3;

ii. gross positions held at the Exchange in proprietary accounts, as defined in 

Commission Regulation § 1.17(b)(3), at such member’s affiliated firm;

iii. gross positions held at the Exchange in accounts in which such member is a principal, 

as defined in Commission Regulation § 3.1(a);

iv. net positions held at the Exchange in Customer accounts, as defined in Commission 

Regulation § 1.17(b)(2), at such member’s affiliated firm; and

v. any other types of positions, whether maintained at the Exchange or elsewhere, held 

in such member’s personal accounts or the proprietary accounts of such member’s 
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affiliated firm, that the Exchange reasonably expects could be affected by the 

significant action.

(3) The Chief Regulatory Officer will determine whether any member of the relevant 

deliberating body who chooses to participate in any deliberations or vote in a SelfRegulatory Action is subject to a conflicts restriction under this Rule 213(a). 

a. For any matter involving the relationships listed in Rule 213(b) above, such 

determination will be based upon a review of the following information:

i. information provided by such member pursuant to Rule 213(c)(1); and

ii. any other source of information that is held by and reasonably available to 

the Exchange.

b. In addition to the review of the information set forth in Rule 213(c)(3) above, for any 

matter involving the relationship set forth in Rule 213(b)(5), such determination will be 

based upon a review of the following information:

i. the most recent large trader reports and clearing records available to the 

Exchange;

ii. information provided pursuant to Rule 213(c)(2); and,

iii. any other source of information that is held by and reasonably available to the 

Exchange taking into consideration the exigency of the significant action being 

contemplated.

(d) Any Interested Person who would be required otherwise to abstain from deliberations and 

voting pursuant to Rule 213(a) as a result of having a direct and substantial financial interest 

in the result of the deliberations and vote may participate in deliberations, prior to a vote on 

the matter, if the deliberating body, after considering the factors specified below, determines 

that such participation would be consistent with the public interest; provided however, that 

before reaching any such determination, the deliberating body will fully consider the position 

information specified in Rule 213(c)(2) above which is the basis of such member’s substantial 

financial interest in the Self-Regulatory Action that is being contemplated. In making its 

determination, the deliberating body will consider:

(1) whether such member’s participation in the deliberations is necessary to achieve a 

quorum; and;

(2) whether such member has unique or special expertise, knowledge or experience in the 

matter being considered.

(e) The minutes of any meeting to which the conflicts determination procedures set forth in this 

Rule 213 apply will reflect the following information:

(1) the names of all members of the relevant deliberating body who attended such meeting in 

person or who otherwise participated in such meeting
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(2) the name of any member of the relevant deliberating body who voluntarily recused himself 

or herself or was required to abstain from deliberations or voting on a matter and the 

reason for the recusal or abstention, if stated;

(3) information on the position information that was reviewed for each member of the relevant 

deliberating body; and

(4) any determination made in accordance with Rule 213(d) above.

(f) If a determination is made that all Directors are Interested Persons with respect to a matter 

subject to a vote by the Board, the Chief Executive Officer will appoint a panel of individuals 

who are not Interested Persons with respect to such matter, which will have the same authority 

and powers over such matter that the Board would have if the Directors were not Interested 

Persons with respect to such matter.

(g) No Director, Officer or member of any committee or panel established by the Board shall use 

or disclose for any purpose other than the performance of his or her official duties and 

responsibilities as a Director, Officer or committee or panel member any material, non-public 

information obtained as a result of the individual’s duties and responsibilities as a Director, 

Officer or committee or panel member. No Director, Officer or committee or panel member 

shall, directly or indirectly, disclose or use at any time, either during his or her association with 

the Exchange or thereafter, any confidential information of which the Board member or 

committee or panel member becomes aware. Each Director, Officer or committee or panel 

member in possession of confidential information shall take all appropriate steps to safeguard 

the information and to protect it against disclosure, misuse, espionage, loss and theft.

(h) Notwithstanding Rule 213(g), a Director, Officer or committee or panel member may disclose 

confidential information if required by law or a court order to be revealed to the United States 

Department of Justice or the CFTC.

(i) For the purposes of Rule 213(g), the terms “material information” and “nonpublic information” 

shall each have the meaning set forth in CFTC Regulation § 1.59(a).

RULE 214. Maintenance of Books and Records by the Exchange

(a) The Exchange shall keep, or cause to be kept, complete and accurate books and records of 

accounts of the Exchange, including, without limitation, all books and records required to be 

maintained pursuant to Applicable Law. 

(b) The Exchange shall retain all such books and records for at least five (5) years, and shall 

make such books and records readily accessible for inspection by the CFTC and the United 

States Department of Justice during the first two (2) years of such five-year period.

RULE 215. Information-Sharing Agreements

(a) The Exchange may enter into information-sharing agreements or other arrangements or 

procedures to coordinate surveillance with other markets on which financial instruments 
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related to the Contracts trade. As part of any information-sharing agreements or other 

arrangements or procedures adopted pursuant to this Rule, the Exchange may:

(1) provide market surveillance reports to other markets;

(2) share information and documents concerning current and former Trading Privilege 

Holders Participants with other markets;

(3) share information and documents concerning ongoing and completed investigations with 

other markets; and/or

(4) require its current or former Trading Privilege Holders Participants to provide information 

and documents to the Exchange at the request of other markets with which the Exchange 

has an information-sharing agreement or other arrangements or procedures.

(b) The Exchange may enter into any arrangement with any Person or body (including, without 

limitation, the CFTC, NFA, any Self-Regulatory Organization, any exchange, market, or 

clearing organization, foreign regulatory authority, the Joint Audit Committee, or the Joint 

Compliance Committee) if the Exchange considers such arrangement to be in furtherance of 

the Exchange’s purpose or duties under the Rules or any law or regulation.

(c) The Exchange may disclose to any Person or entity information concerning or associated with 

a Trading Privilege Holder Participant or other Person that the Exchange believes is 

necessary and appropriate in exercising a legal or regulatory function, whether or not a formal 

arrangement governing the disclosure exists or a request for information was made.

RULE 216. [Reserved]

RULE 217. Services Agreement with a Technology Services Provider

(a) The Exchange may contract with Technology Services Provider(s) to provide certain 

technology services to the Exchange pursuant to a Technology Services Agreement. In 

accordance with a Technology Services Agreement, a Technology Services Provider may 

perform certain functions under the Cboe Digital Exchange Rules and the Exchange may 

provide information to the Technology Services Provider in connection with the performance 

by the Technology Services Provider of those functions. The Exchange conducts reviews to 

verify that the Technology Services Provider is performing certain technology services to the 

Exchange pursuant to a Technology Services Agreement. 

(b) The Exchange shall retain ultimate decision-making authority with respect to any functions 

that are contracted to a Technology Services Provider.
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CHAPTER 3: PARTICIPANTS

RULE 301. Criteria for Becoming a Participant Trading Privilege Holder 

(a) To be eligible for admission as a ParticipantTrading Privilege Holder, an applicant must 

demonstrate to the satisfaction of the Exchange that it:

(1) is of good reputation and business integrity;

(2) maintains adequate financial resources and credit;

(3) is of the age of majority in the individual’s state of residence (if an individual);

(4) if the Participant Trading Privilege Holder is an entity, that it is validly organized, in 

good standing, and authorized by its governing body and, if relevant, documents of 

organization, to trade Contracts (if an entity);

(5) is not prohibited from using the services of the Exchange for any reason whatsoever;

(6) to the extent required by Applicable Law, be registered or otherwise permitted by the 

appropriate regulatory body or bodies to conduct business on the Exchange;holds all 

registrations, including any Introducing Broker, Futures Commission Merchant, 

Supervisory Person and/or Associated Person registration and

(7) meets the minimum financial standards required under Applicable Law, including, but 

not limited to the requirements set forth in CFTC Regulation § 1.17 for any Introducing 

Broker or , Futures Commission Merchant, Supervisory Person and/or Associated Person 

registration, as applicable if any;

(87) is not subject to statutory disqualification under Section 8a(2) of the CEA; and

(9) be guaranteed by a Clearing Member in the manner described in Rule 912; and

(108) satisfies any other criteria that the Exchange may require from a ParticipantTrading 

Privilege Holder.

(b) Once admitted, the Participant Trading Privilege Holder shall continue to comply with all 

applicable eligibility criteria in Rule 301(a). The Exchange evaluates and monitors a Trading 

Privilege Holder’s Participant’s compliance with the criteria set forth in this Rule 301.

(c) Each Participant must establish a clearing relationship with the Clearing House, or with a 

Clearing Firm and shall immediately notify Cboe Digital Exchange if it ceases to be a clearing 

customer of such Clearing Firm. Participant understands that it will be denied access to the Cboe 

Digital Trading System unless Participant has obtained and delivered to Cboe Digital the 

applicable documentation from an authorized signatory of such Clearing Firm. Further, 

Participant understands that Cboe Digital may restrict, suspend or terminate a Trading Privilege 

Holder’s Participant’s access to Cboe Digital or the Cboe Digital Trading System at the direction 

of the Clearing Firm Member or the Clearing House. Participant also understands that it may be 

permitted direct electronic access (i.e., a customer of a Clearing Firm enters orders directly into 

the Exchange’s trade matching system for execution through the use of a user identification in 

the Participant’s name) and Tthe Exchange will provides the a Clearing Firm Member with and 

requires the a Clearing Firm Member to use pre-trade controls that enable the Clearing Firm 

Member to implement appropriate financial risk limits for its non-Clearing Member Trading 

Privilege Holders. 
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RULE 302. Participant Trading Privilege Holder Application Process

(a) Any Person who desires to become a Participant Trading Privilege Holder shall:

(1) enter into all required Participant Documentation applicable to Trading Privilege Holders;

(2) establish a clearing relationship with a Clearing Firm, if applicable;

(3) ensure that a Clearing Firm has submitted such documentation as set forth in Rule 902, if 

applicable;

(24) enter into any and all required agreements, consent and representations required by the 

Clearing House, if applicable;

(35) agree in writing to abide by the Rules and Applicable Law; 

(6) provide such information and documentation as may be requested by the Exchange, and 

follow the procedures established by the Exchange for admission; and, 

(47) any in accordance with CFTC Regulation §15.05, the Exchange will serve as an agent 

of a foreign Futures Trading Privilege Holder, or a Customer of a foreign Futures Trading 

Privilege Holder for whom transactions were executed, for purposes of accepting delivery and 

service of any communication issued by or on behalf of the CFTC to the foreign Futures 

Trading Privilege Holder, or a Customer of the foreign Futures Trading Privilege Holder, in 

each case with respect to any transactions executed by the foreign Futures Trading Privilege 

Holder on the Exchange.Participant organized or located outside of the United States shall 

enter into a written agreement acceptable to the Exchange appointing a third party as its U.S. 

agent for service of process for purposes of CFTC Regulation § 15.05, and shall provide the 

Exchange with a copy of the agreement.

(b) In considering an application from a potential ParticipantTrading Privilege Holder, the 

Exchange may require additional information from the applicant, andor conduct an investigation

in a form and manner determined by the Exchange to verify information submitted by the 

applicant, including conducting an investigation into any applicant; any executive officers, 

authorized signatories or administrators of an applicant; and any executive officers, authorized 

signatories or administrators added by a Trading Privilege Holder subsequent to being approved 

as a Trading Privilege Holder, or both. Each applicant shall promptly update the application 

materials if any of the information provided therein becomes inaccurate or incomplete after the 

date of submission and prior to any approval of the application.

(c) If the Exchange decides to admit an applicant as a ParticipantTrading Privilege Holder, it 

shall promptly notify the applicant and state in such notice the date on which the applicant shall 

become a ParticipantTrading Privilege Holder.

(d) Admission as a Trading Privilege Holder only entitles the Trading Privilege Holder to applicable 

Trading Privileges and does not confer any right of ownership in, or right to attend or vote at 

meetings of the Exchange, or right to share in the profits of the Exchange. A Trading Privilege 

Holder may not transfer or assign its status as a Trading Privilege Holder without the prior written 

consent of the Exchange, and any purported transfer or assignment without the Exchange’s prior 

consent is not binding on the Exchange.
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(e) All rights and privileges of a Trading Privilege Holder terminate upon, and all obligations of a 

Trading Privilege Holder shall survive, the death or incapacity of the Trading Privilege Holder (if 

an individual) or the dissolution of the Trading Privilege Holder (if an entity).

(fd) In addition, the Exchange may deny, condition, or terminate the grant of Trading Privileges, 

or may prevent a Person from becoming associated (or may condition or terminate an association) 

with a Trading Privilege Holder as a Related Party for the same reasons for which the NFA may 

deny or revoke registration of a futures commission merchant or if such The Exchange may deny, 

condition or terminate Participant status of any Person: 

(1) If such Person is unable to satisfactorily demonstrate its ability to satisfy the eligibility 

criteria to become or remain a Trading Privilege HolderParticipant; 

(2) If such Person is unable to satisfactorily demonstrate its capacity to adhere to all 

applicable Rules, including those concerning record-keeping, reporting, finance and 

trading procedures;

(3) is subject to any statutory disqualification (unless an appropriate disqualification has 

been obtained thereto);

violates any agreement with the Exchange

(43) If such Person would bring the Exchange into disrepute as determined by the 

Exchange in its sole discretion; or,

(54) for such other cause as the Exchange may reasonably determine.

(e) If the Exchange decides to decline or condition an application for admission as a Trading 

Privilege HolderParticipant, or terminate a Person’s status as a Trading Privilege 

HolderParticipant, the Exchange shall promptly notify such Person (the “Affected Person”) thereof 

in a writing sent to the address provided by the applicant in the Exchange application form or 

maintained in the Exchange registry of Trading Privilege HolderParticipant. Such Affected Person 

may, within seven (7) calendar days, request in writing that the Exchange provide the reasons for 

the denial, conditioning or termination of Trading Privilege HolderParticipant status. Within 

fourteen (14) calendar days after receiving such written request, the Exchange shall send a 

written response to the Affected Person setting forth the reasons for the denial, conditioning or 

termination. Within fourteen (14) calendar days of receiving the Exchange’s written response, 

the Affected Person may request in writing that the Exchange Participant Committee reconsider 

the determination.

(f) Within twenty-eight (28) calendar days of receiving either the request for reconsideration, the 

Exchange Participant Committee shall either confirm, reverse or modify the denial, conditioning 

or termination of the Affected Person as a Trading Privilege Holder Participant, and shall promptly 

notify the Affected Person accordingly in writing. The Exchange Participant Committee may, 

within its discretion, schedule a hearing (in-person or by teleconference); request additional 

information from the Affected Person; or, establish any other process that it believes is necessary 

and appropriate to consider the request for reconsideration.

(g) The Exchange Participant Committee’s decision is the final action of the Exchange and is not 

subject to appeal within the Exchange.
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RULE 303. Trading Privileges of a Participants , Clearing Firm, or Direct 

Member

(a) A Participant must execute such any applicable Participant Documentation as required from 

time to time by the Exchange, and such Participant Documentation must remain in effect for the 

Participant to maintain its Trading Privilegesaccess to or relationship with (e.g., a customer 

account established through an intermediary) the Exchange.

(b) Admission as a Participant only entitles the Participant to the Trading Privileges and does not 

confer any right of ownership in, or right to attend or vote at meetings of the Exchange, or right to 

share in the profits of the Exchange. A Participant may not transfer or assign its status as a 

Participant without the prior written consent of the Exchange, and any purported transfer or 

assignment without the Exchange’s prior consent is not binding on the Exchange.

(c) All rights and privileges of a Participant terminate upon, and all obligations of a Participant 

shall survive, the death or incapacity of the Participant (if an individual) or the dissolution of the 

Participant (if an entity).

RULE 304. Limitations on Access to the Cboe Digital Trading System

(a) No Person other than a Trading Privilege Holder and its Authorized Traders may have direct 

electronic access to the Cboe Digital Trading System. A Clearing Member must authorize its 

Trading Privilege Holder clients to access the Exchange directly by assigning a unique FIX 

session to each of its Trading Privilege Holder clients. A Clearing Member may assign multiple 

unique FIX sessions to a Trading Privilege Holder client. A FIX session assigned to a Trading 

Privilege Holder may be linked to any or all of the Trading Permit Holder’s accounts at the Clearing 

Member. A unique FIX session may not be used by more than one Trading Privilege Holder and 

the Clearing Member is responsible for monitoring the use of the FIX sessions assigned to its 

Trading Privilege Holder clients. Pursuant to Exchange specifications, each unique FIX session 

will automatically provide on each message submitted through such FIX session a Clearing 

Member ID and Firm ID (of the Trading Privilege Holder).

(b) The Exchange may at any time revoke, suspend, limit, condition, restrict or qualify a Trading 

Privilege HolderParticipant’s Trading Privileges and/or a Participant’s ability to access the Cboe 

Digital Trading System, if in the sole discretion of the Exchange, such action is in the best interests 

of the Exchange. Specifically, the Exchange may revoke, suspend, limit, condition, restrict or 

qualify a Trading Privilege HolderParticipant’s Trading Privileges and/or a Participant’s ability to 

access the Cboe Digital Trading System, if the Participant fails to meet the applicable criteria set 

forth in this Chapter Rule 3 or the Participant Documentation01.

(cb) A Clearing Firm Member may at any time revoke the authorization of any Participant Trading 

Privilege Holder guaranteed by it with or without prior notice to such ParticipantTrading Privilege 

Holder. For purposes of the relationship between the relevant Clearing Firm Member and the 

Exchange, and the obligations of such Clearing Firm Member to the Exchange, any such 

revocation shall become effective upon the receipt of written notice thereof by the Exchange. 
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Upon such receipt, the Trading Privileges of the Participant Trading Privilege Holer subject thereto 

shall be automatically terminated, and such Participant Trading Privilege Holder must obtain 

another guarantee from a Clearing Firm Member before its Trading Privileges will be reinstated.

RULE 305. Dues, Assessments and Fees

(a) The Exchange shall have the authority to set the amounts and times of payment for any dues, 

assessments or fees (including Cboe Digital Trading System fees, clearing fees, brokerage 

and/or any transaction surcharges) to be paid by Trading Privilege HoldersParticipants. 

(b) Each Participant Trading Privilege Holder agrees to pay such dues, assessments, and fees 

as are published by the Exchange in an fee circular/notificationExchange Notice, on the 

Exchange’s website or as otherwise agreed between the Exchange and a ParticipantTrading 

Privilege Holder. Each Participant Trading Privilege Holder agrees to pay such dues, 

assessments, and fees when due. The Exchange may change fees charged to participants 

without notice.

(c) If a Participant Trading Privilege Holder fails to pay when due any such dues, assessments 

or fees levied on such Trading Privilege HolderParticipant, and such payment obligation 

remains unsatisfied for thirty days after its due date, the Exchange may suspend, revoke, limit, 

condition, restrict or qualify the Trading Privilege HolderParticipant’s Trading Privileges and/or 

ability to otherwise access the Cboe Digital Trading System as it deems necessary or 

appropriate.

(d) Any Participant that has been determined by the Exchange to be a Founding Owner or 

Liquidity Provider, is hereby granted the “Privileges of Membership,” for purposes of NFA 

Bylaw 1301. A Participant with the “Privileges of Membership” shall not be responsible for 

FCM Assessments to NFA as set forth in NFA Bylaw 1301(b).

RULE 306. Authorized Traders and Authorized Brokers

(a) Each Participant Trading Privilege Holder who is not a natural Person shall designate one or 

more Authorized Trader(s) or Authorized Broker (s), who will be responsible for Exchange Activity 

conducted on behalf of the ParticipantTrading Privilege Holder. An Authorized Trader may also 

be a Participant Trading Privilege Holder in his or her an individual capacity, but may not 

knowingly act as a counterparty in any capacity to any Order that he or she it has placed as an 

Authorized Trader or Authorized Broker on behalf of another Participant Trading Privilege Holder 

or in his or her its individual capacity.

(b) By agreeing to become an Authorized Trader, an individual agrees to be bound by the duties 

and responsibilities of an Authorized Trader and to be subject to, and comply with, the Cboe 

Digital Exchange Rules and Obligations. Among other duties and responsibilities that the 

Exchange may impose, an Authorized Trader must:

(1) enter into the applicable Participant Documentation;

(2) if applicable, agree to effect transactions for the account of a Customer in Contracts 

via the Cboe Digital Trading System
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(13) have the authority, at the Exchange’s request, to adjust or withdraw any Order 

submitted under any user ID assigned to him or herthe Authorized Trader; and

(24) ensure that any Exchange Activity conducted under any user ID assigned to him or 

her the Authorized Trader complies with all Cboe Digital Exchange Rules and Obligations;.

And

(5) must have and maintain during all necessary regulatory approvals and licenses to 

operate as an Authorized Trader on Cboe Digital Exchange, including any Introducing 

Broker, Futures Commission Merchant, or Associated Person registrations, and 

compliance with the minimum financial standards required under Applicable Law as 

applicable.

(c) To designate an Authorized Trader, a Participant Trading Privilege Holder must follow the 

procedures established by the Exchange. The Exchange may establish criteria that individuals 

must fulfill to become an Authorized Trader.

(d) By agreeing to become an Authorized Broker that person agrees to be bound by the duties 

and responsibilities of a Participant , agrees to be subject to, and comply with, the Cboe Digital 

Exchange Rules and Obligations, the Broker Firm agrees that it will obtain an agreement from 

each other Authorized Broker stating that the Authorized Brokerit will comply with and be subject 

to, the Cboe Digital Exchange Rules when accessing Cboe Digital Exchange, and the Participant 

Broker Firm shall be responsible to Cboe Digital Exchange for any failures to comply with Cboe 

Digital Exchange Rules by any Authorized Broker, to the same extent that Broker Firm would be 

liable. Among other duties and responsibilities that the Exchange may impose, a Broker Firm:

(1) must enter into the applicable Participant Documentation;

(2) must agree to effect transactions for the account of a Participant or Customer in 

Contracts via the Cboe Digital Trading System; 

(3) must have the authority, at the Exchange’s request, to adjust or withdraw any Order 

submitted under any user ID assigned to him or her; 

(4) must ensure that any Exchange Activity conducted under any user 

(5) ID assigned to him or her complies with all Cboe Digital Exchange Rules and 

Obligations;

(6) must have and maintain during all necessary regulatory approvals and/or licenses to 

operate as Broker Firm or as an Authorized Broker on Cboe Digital Exchange, including 

any Introducing Broker, Futures Commission Merchant, Supervisory Person and/or 

Associated Person registrations, and compliance with the minimum financial standards 

required under Applicable Law as applicable; and,

(7) agree to such other terms and conditions as may be established by Cboe Digital 

Exchange from time to time.

(de) The Exchange will promptly notify a Trading Privilege Holder Participant Firm or Clearing 

Firm in writing of the approval of designated Authorized Trader(s) or Authorized Broker(s) or if the 

Exchange declines to approve the nomination of an Authorized Trader or Authorized Broker.
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(ef) The Exchange will maintain a list of all designated Authorized Traders or Authorized Brokers 

for each ParticipantTrading Privilege Holder.

(fg) The Exchange may, in its sole discretion revoke or suspend the designation of an individual 

as Authorized Trader or Authorized Broker and shall promptly notify the Trading Privilege Holder 

Participant or Clearing Firm of such action.

(gh) To request the termination of the designation of an individual as Authorized Trader or 

Authorized Broker, the a Trading Privilege HolderParticipant must follow the procedures 

established by the Exchange. The Exchange may, in its sole discretion, refuse to accept a request 

to terminate the registration of an Authorized Trader or Authorized Broker or may postpone the 

effective date of the termination of registration if the Exchange considers it necessary for the 

protection of Participants or in the Exchange’s best interest. Based on the information provided 

to, and other information gathered by, the Exchange regarding the request to terminate the 

registration of an Authorized Trader or Authorized Broker, the Exchange will determine whether 

to:

(1) accept the request to terminate the designation

(2) postpone the effective date of termination of the designation, and/or

(3) impose any terms or conditions before or after the effective date of termination of the 

designation.

RULE 307. Authorized Representatives

(a) Each Participant Trading Privilege Holder shall designate an Authorized Representative(s) 

who will represent the Participant Trading Privilege Holder before the Exchange and its 

committees and receive notices on behalf of the ParticipantTrading Privilege Holder . 

(b) The Authorized Representative shall be empowered by the Trading Privilege 

HolderParticipant, to act on its behalf and the Exchange shall be entitled to rely on the actions 

of the Authorized Representative as binding on the Trading Privilege HolderParticipant, 

Authorized Trader or Authorized Broker. 

(c) Each Participant Trading Privilege Holder must provide the Exchange with current contact and 

other requested information for each of its Authorized Representatives so that the Exchange 

is able to immediately contact the Authorized Representatives.

RULE 308. Recording of Communications

The Exchange may record conversations and retain copies of electronic communications 

between Exchange Officials, and Trading Privilege HoldersParticipants, their Authorized Traders, 

Supervised PersonsRelated Parties, Authorized Brokers or other agents. Any such recordings 

may be retained by the Exchange in such manner and for such periods of time as the Exchange 

may deem necessary or appropriate. The Exchange will retain such recording in compliance with 

Applicable Law, including CFTC Regulations.
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RULE 309. Exchange Notices to Participants

(a) The Exchange shall publish a notice with respect to each addition amendmentto, modification

of, or clarification, or interpretation of, the Cboe Digital Exchange Rules or of any action to 

implement any Cboe Digital Exchange Rules on the Exchange’s website or via an electronic 

mail distribution to enable each Trading Privilege Holder and Participant, as applicable, to 

become aware of and familiar with, and to implement any necessary preparatory measures to 

be taken by it with respect to, such addition or modification, prior to the effective date thereof 

(each an “Exchange Notice to Participants”);. For purposes of publication in accordance with 

the first sentence of this Rule 309, it shall be sufficient (without limiting the discretion of the 

Exchange as to any other reasonable means of communication) if a Notice to Participants is 

published on the Exchange’s website. provided however that any failure by the Exchange to 

publish an Exchange Notice shall not affect the effectiveness of the amendment, modification, 

clarification or interpretation of Exchange Rules.

(b) Any Exchange Notice to Participants shall also be deemed to have been made to all 

Authorized Traders, Broker Firms, and Supervised PersonsRelated Parties.

RULE 310. Communications between the Exchange and 

ParticipantsTrading Privilege Holders

(a) Each Participant Trading Privilege Holder must provide the Exchange with its current 

electronic mail address and telephone number and the electronic mail address and telephone 

number of any of its Authorized Representative and Authorized Traders and immediately (and 

in any event within 24 hours) update this information whenever it changes.

(b) All communications between the Exchange and the Participant Trading Privilege Holder will 

be transmitted by electronic mail and/or posted on the Exchange’s website, except as 

otherwise specified by the Exchange. 

(c) The Participant Trading Privilege Holder shall be responsible for conveying such 

communications to all Authorized Traders and Supervised PersonsRelated Parties. 

 

(d) Each Trading Privilege Holder Participant will be responsible for promptly reviewing and, if 

necessary, responding to all electronic communications from the Exchange to the Participant 

Trading Privilege Holer or any of its Authorized Traders or its Related Partiesother Supervised 

Persons. 

(e) All communications made to Participants Trading Privilege Holders shall also be deemed to 

have been made to all Authorized Traders and Supervised PersonsRelated Parties.

RULE 311. [RESERVED]Application of Rules and Jurisdiction

(a) By becoming a Participant and by accessing, or entering any Order or submitting any Contract 

into the Cboe Digital Trading System, and without any need for any further action, undertaking 
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or agreement, a Participant, its Authorized Traders, Supervised Persons, and Authorized 

Broker agree:

(1) to be bound by, and comply with, the Cboe Digital Exchange Rules and obligations, the 

Clearing House Rules, and Applicable Law, in each case to the extent applicable to it; 

(2) to become subject to the jurisdiction of the Exchange and the Clearing House with respect 

to any and all matters arising from, related to, or in connection with, the status, actions or 

omissions of such Person; and 

(3) to assist the Exchange and Clearing House in complying with their legal and regulatory 

obligations, cooperate with the Exchange, Clearing House, and the CFTC in any inquiry, 

investigation, audit, examination or proceeding, and authorizes the Exchange and 

Clearing House to provide information regarding it to the CFTC or any other governmental 

or Self-Regulatory Organization.

(b) Any Participant whose Trading Privileges and/or ability to otherwise access the Cboe Digital 

Trading System are revoked or terminated shall remain bound by the Cboe Digital Exchange

Rules, the Clearing House Rules and Applicable Law, in each case to the extent applicable 

to it, and subject to the jurisdiction of the Exchange and the Clearing House with respect to 

any and all matters arising from, related to, or in connection with, the status, actions or 

omissions of such Participant prior to such revocation or termination.

(c) An Authorized Trader or Authorized Broker who is suspended for any period remains subject 

to the Cboe Digital Exchange Rules, the Obligations and the Exchange’s and Clearing 

House’s jurisdiction throughout the period of suspension. After revocation or termination of 

the designation of an Authorized Trader or Authorized Broker, the Authorized Trader or 

Authorized Broker remains subject to the Cboe Digital Exchange Rules, the Obligations and 

the jurisdiction of the Exchange for acts done and omissions made while registered as an 

Authorized Trader. Any Exchange Proceeding relating to an Authorized Trader or Authorized 

Broker shall occur as if the Authorized Trader or Authorized Broker were still registered as 

such.

RULE 312. Description of Participant’s or Broker Firm’sTrading Privilege 

Holder’s Status

A Participant Trading Privilege Holder shall ensure that the form, content and context of any 

description of the Participant’s Trading Privilege Holder’s status on the Exchange to Customers 

is not inconsistent with, and does not misrepresent, the Trading Privilege Holder’s Participant’s 

capacity on the Exchange under the Cboe Digital Exchange Rules or the Trading Privilege 

Holder’s Participant’s registration under any Applicable Law.

RULE 313. Withdrawal of Participanta Trading Privilege Holder

(a) To withdraw from the Exchange, a Participant Trading Privilege Holder must notify the 

Exchange and following the procedures that may be established by the Exchange.

(b) The Exchange may, in its reasonable discretion, refuse to accept a Participant’s Trading 

Privilege Holder’s withdrawal request or may postpone the effective date of withdrawal of a 
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Trading Privilege HolderParticipant if the Exchange considers it necessary for the protection 

of other Trading Privilege Holders Participants or otherwise in the interests of the Exchange.

(c) Based on the information provided to, and other information gathered by, the Exchange 

regarding a Trading Privilege HolderParticipant’s withdrawal request, the Exchange will 

determine whether to (i) accept the withdrawal request; (ii) postpone the effective date of the 

withdrawal; and/or (iii) impose any terms or conditions before or after the effective date of 

withdrawal.

(d) If the Exchange refuses to accept a Trading Privilege HolderParticipant’s withdrawal request 

or postpones the effective date of withdrawal of a Trading Privilege HolderParticipant, the 

Exchange may waive the obligation to pay some or all of the fees, costs and charges that the 

Exchange would have imposed during the period after the date on which the requested 

withdrawal would have otherwise taken effect.

(e) When the Exchange accepts the withdrawal of a Trading Privilege HolderParticipant, all rights 

and privileges of such Trading Privilege Holder Participant will terminate (including, without 

limitation, the Trading Privileges and ability to access the Cboe Digital Trading System). The 

accepted withdrawal of a Trading Privilege Holder Participant shall not affect the rights of the 

Exchange under the Cboe Digital Exchange Rules or relieve the former withdrawn Trading 

Privilege Holder Participant of its Obligations under the Cboe Digital Exchange Rules, to 

perform on all contracts involving any Contracts entered into by such Trading Privilege Holder, 

or to pay any Exchange fees, costs, or charges incurred, before the withdrawal. 

Notwithstanding the accepted withdrawal of a ParticipantTrading Privilege Holder, the 

withdrawn Participant Trading Privilege Holder remains subject to the Cboe Digital Exchange

Rules, the Obligations and the jurisdiction of the Exchange for acts done and omissions made 

while a ParticipantTrading Privilege Holder, and must cooperate in any Exchange Proceeding 

under Chapter 7 as if the withdrawn Participant Trading Privilege Holder were still a 

ParticipantTrading Privilege Holder.

RULE 314. ApplicationConsent Application of Rules and Consent to 

Exchange Jurisdiction

(a) By accessing, or entering any Order into the Cboe Digital Trading System, and without any 

need for any further action, undertaking or agreement, a Trading Privilege Holder, including 

any of its Authorized Traders and Related Parties agree:

(1) to be bound by, and comply with, the Cboe Digital Exchange Rules and Obligations, the 

Clearing House Rules, and Applicable Law, in each case to the extent applicable to it; 

(2) to become subject to the jurisdiction of the Exchange with respect to any and all matters 

arising from, related to, or in connection with, the status, actions or omissions of such 

Person; and 

(3) to assist the Exchange and Clearing House in complying with their legal and regulatory 

obligations, cooperate with the Exchange, Clearing House, and the CFTC in any inquiry, 

investigation, audit, examination or proceeding, and authorizes the Exchange and 
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Clearing House to provide information regarding it to the CFTC or any other governmental 

or Self-Regulatory Organization.

(b) Any Trading Privilege Holder whose Trading Privileges or ability to otherwise access the Cboe 

Digital Trading System are revoked or terminated shall remain bound by the Cboe Digital 

Exchange Rules, the Clearing House Rules, and Applicable Law, in each case to the extent 

applicable to it, and subject to the jurisdiction of the Exchange with respect to any and all 

matters arising from, related to, or in connection with, the status, actions or omissions of such 

Trading Privilege Holder prior to such revocation or termination.

(a)(c) An Authorized Trader who is suspended for any period remains subject to the Cboe Digital 

Exchange Rules, the Obligations and the Exchange’s jurisdiction throughout the period of 

suspension. After revocation or termination of the designation of an Authorized Trader, the 

Authorized Trader remains subject to the Cboe Digital Exchange Rules, the Obligations and 

the jurisdiction of the Exchange for acts done and omissions made while registered as an 

Authorized Trader. Any Exchange proceeding relating to an Authorized Trader shall occur as 

if the Authorized Trader were still registered as such.

(d) Any Person initiating or executing a transaction on or subject to the Rules of the Exchange 

directly or through an intermediary, and any Person for whose benefit such a transaction has 

been initiated or executed, expressly consents to the jurisdiction of the Exchange and agrees 

to be bound by and comply with the Rules of the Exchange in relation to such transactions, 

including, but not limited to, rules requiring cooperation and participation in investigatory and 

disciplinary processes. Any futures commission merchant, broker-dealer, introducing broker, 

associated person, or foreign Person performing a similar role, that charges a commission or 

fee in connection with a transaction on or subject to the rules of the Exchange also expressly 

consents to the Exchange’s jurisdiction. Any Person subject to this Rule 314(d) shall be 

referred to as a “Participant”.

(e) Any Participant that is not a Trading Privilege Holder or Related Party is bound by and required 

to comply with the following Rules of the Exchange for purposes of Rule 314(d) to the same 

extent that a Trading Privilege Holder or Related Party is bound by and required to comply 

with those Rules of the Exchange: Rules 535(d)(iii)-(iv), 305, 304, 314, 308, 309, 502, 503, , 

101 (Orders and Order Qualifiers), 534, 538, 1003, 516, 530, 531, 532, 601, 602, 603, 212, 

536, 908, 409(c), 505, 506, 508, 512, 510, 504, 513(b), 519, 520, 518, 5121, 525, 522, 523, 

507, 514, and 509, Chapter 7, Chapter 8, Chapter 11, Rule 904, any applicable Exchange 

Policy and Procedures and the Exchange Fee Schedule.

(f) For the avoidance of doubt:

(1) Every Authorized Reporter for EDRP transactions and Block Trades shall be deemed a 

Participant.

(2) A Participant is bound by and required to comply with the Rules of the Exchange set forth 

in Rule 314(e) to the same extent that a Trading Privilege Holder or Related Party is bound 

by and required to comply with those provisions regardless of whether or not those 

provisions reference Participants.
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(g) A Trading Privilege Holder or Participant remains obligated to comply with the Rules of the 

Exchange, the Rules of the Clearing House and Applicable Law, in each case to the extent 

applicable to that party, regardless of any use of a third party to assist the Trading Privilege 

Holder or Participant with that compliance and regardless of any non-performance by the third 

party in providing that assistance.

RULE 315. EEA Retail Investors

No Trading Privilege Holder Participant shall offer, sell or arrange a transaction in a Contract for, 

on behalf of, or with an EEA Retail Investor, or otherwise make a Contract available to an EEA 

Retail Investor, unless: (1) a key information document (“KID”) has been produced for the Contract 

by the Exchange in accordance with the requirements of Regulation (EU) No 1286/2014 of the 

European Parliament and of the Council of 26 November 2014 on key information documents for 

packaged retail and insurance-based investment products; and (2) the KID has been provided to 

the EEA Retail Investor by the intermediary accepting the order from, or clearing the transaction 

on behalf of, the EEA Retail Investor. 
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CHAPTER 4: OBLIGATIONS OF PARTICIPANTS TRADING 

PRIVILEGE HOLDERS 

RULE 401. Duties and Responsibilities of Participants Trading Privilege 

Holders 

(a) Each Participant Trading Privilege Holder (i.e., Participant Firm and Clearing Firm) shall (and 

shall cause all of its Authorized Traders, Authorized Brokers, and Supervised PersonsRelated 

Parties):

(1) use the Cboe Digital Trading System in a responsible manner and not for any improper 

purpose;

(2) use the Cboe Digital Trading System only to conduct Exchange Activity;

(3) conduct all Exchange Activity in a manner consistent with the Cboe Digital Exchange

Rules and Obligations, and Applicable Law;

(4) comply with all Cboe Digital Exchange Rules and Obligations and act in a manner 

consistent with the Cboe Digital Exchange Rules and Obligations;

(5) comply with all Clearing House Rules, to the extent applicable to it, and act in a manner 

consistent with the Clearing House Rules, to the extent applicable;

(6) comply with all NFA Rules, to the extent applicable to it, and act in a manner consistent 

with the NFA Rules, to the extent applicable;

(7) observe high standards of integrity, market conduct, commercial honor, fair dealing, and 

just and equitable principles of trade while conducting or attempting to conduct any 

Exchange Activity, or any aspect of any business connected with or concerning the 

Exchange;

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

with the Exchange or in response to any Exchange Proceeding;

(9) keep any User IDs, account numbers and passwords related to the Cboe Digital Trading 

System confidential;

(10) be fully liable for: all trading losses, all Orders, all transactions in Contracts effected by 

ParticipantTrading Privilege Holder, all transactions effected on Cboe Digital Exchange

and for any use of the Cboe Digital Trading System made by Trading Privilege Holder 

Participant or Trading Privilege HolderParticipant’s Authorized Traders, and all trades 

even if the Orders received via the Cboe Digital Trading System: (1) were entered as a 

result of a failure in the security controls and/or credit controls, other than due to the 

gross negligence of Cboe Digital Exchange, or (2) were entered by an unknown or 

unauthorized user;

(11) use the Exchange’s pre-trade controls that enable the Clearing Firm Member to 

implement appropriate risk limits for Trading Privilege Holders Participant Firms;

(12) employ practices to monitor and enforce compliance with risk limits; 

(13) be responsible for promptly informing the Exchange of any material changes to the 

information provided to the Exchange by the Trading Privilege Holder Participant 

pursuant to Rule 301; and,

(14) keep, or cause to be kept, complete and accurate books and records, including, without 

limitation, trading records in underlying commodity and derivatives markets related to 

the Cboe Digital Contract, records and documents related to data submitted by the 
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Market Participant Trading Privilege Holder or Affiliate to an instrument or index to which 

an Exchange contract settles, all books and records required to be maintained pursuant 

to the CEA, the CFTC Regulations or the Cboe Digital Exchange Rules, and Applicable 

Law, for at least five (5) years, and make such books and records readily accessible for 

inspection by a representative of the Exchange, the CFTC or the United States 

Department of Justice during the first two (2) years of such five-year period; and 

(15) prevent, detect, and mitigate market disruptions or system anomalies associated with 

the Trading Privilege Holder’s electronic trading on the Exchange.

(b) Each Broker Firm shall (and shall cause all of its Authorized Brokers to):

(1) use the Cboe Digital Trading System in a responsible manner and not for any improper 

purpose;

(2) use the Cboe Digital Trading System only to conduct Exchange Activity;

(3) conduct all Exchange Activity in a manner consistent with the Cboe Digital Exchange

Rules and Obligations;

(4) comply with all Cboe Digital Exchange Rules and Obligations and act in a manner 

consistent with each Rule of the Exchange and Obligation;

(5) comply with all Clearing House Rules, to the extent applicable to it, and act in a manner 

consistent with the Clearing House Rules, to the extent applicable;

(6) comply with all NFA Rules, to the extent applicable to it, and act in a manner consistent 

with the NFA Rules, to the extent applicable;

(7) observe high standards of integrity, market conduct, commercial honor, fair dealing, and 

just and equitable principles of trade while conducting or attempting to conduct any 

Exchange Activity, or any aspect of any business connected with or concerning the 

Exchange;

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

with the Exchange or in response to any Exchange Proceeding;

(9) keep any User IDs, account numbers and passwords related to the Cboe Digital Trading 

System confidential;

(10) be responsible for promptly informing the Exchange of any material changes to the 

information provided to the Exchange by the Participant pursuant to Rule 307; and,

(11) keep, or cause to be kept, complete and accurate books and records, including, without 

limitation, trading records in underlying commodity and derivatives markets related to 

the Cboe Digital Contract, records of and documents related to data submitted by the 

Market Participant or Affiliate to an instrument or index to which an Exchange contract 

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

Regulations or the Cboe Digital Exchange Rules, and Applicable Law, for at least five 

(5) years, and make such books and records readily accessible for inspection by a 

representative of the Exchange, the CFTC or the United States Department of Justice 

during the first two (2) years of such five-year period.

RULE 402. Required Disclosures to the Exchange

(a) Each Participant Trading Privilege Holder shall immediately notify the Market Regulation 

Department Exchange upon becoming aware of any of the following events:

(1) any material change to the contact information provided to the Exchange;
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(2) any damage to, or failure or inadequacy of, the systems, facilities or equipment of the 

Trading Privilege Holder Participant to effect transactions pursuant to the Cboe Digital 

Exchange Rules or to timely perform the Trading Privilege HolderParticipant’s financial 

obligations under or in connection with Contracts;

(3) any refusal of admission to, or withdrawal by the Trading Privilege Holder Participant 

of any application for membership in, any Self-Regulatory Organization, designated 

cContract mMarket or dDerivatives cClearing oOrganization;

(4) any expulsion, suspension or fine in excess of $5,000 (whether through an adverse 

determination, voluntary settlement or otherwise) imposed on the Trading Privilege 

Holder Participant by any Self-Regulatory Organization;

(5) any denial or withdrawal of any application for any registration or license by or from any 

Governmental Agency, and any revocation, suspension or conditioning of any 

registration or license granted by any Governmental Agency;

(6) the commencement of any judicial or administrative proceeding against the Trading 

Privilege Holder Participant or the imposition of any fine, cease and desist order, denial 

of trading privileges, censure or other sanction or remedy (whether through an adverse 

determination, voluntary settlement or otherwise) imposed by any Governmental 

Agency;

(7) any indictment or conviction of, or any confession of guilt or plea of guilty or nolo 

contendere by the Trading Privilege Holder Participant (or, if the Trading Privilege 

Holder Participant is an entity, by any of its principals or senior officers) for any felony 

or misdemeanor involving, arising from, or related to, the purchase or sale of any 

commodity, Futures contract, Option, security, securities futures product or other 

financial instrument, or involving or arising from fraud or moral turpitude; and

(8) the Trading Privilege Holder Participant becoming the subject of a petition for 

bankruptcy;

(9) the appointment of a receiver, trustee or administrator for the Trading Privilege 

HolderParticipant;

(10) the presentment of a petition, or the passing of a resolution, for the winding-up of 

Trading Privilege HolderParticipant;

(11) the commencement of proceedings for the dissolution of Trading Privilege 

HolderParticipant; or

(12) the occurrence of an event of insolvency with respect to the Trading Privilege 

HolderParticipant.

RULE 403. Inspections by the Exchange

(a) The Exchange or other appointed representatives, if any, shall have the right, in connection 

with determining whether all Cboe Digital Exchange Rules and Obligations are being, will be, or 

have been complied with by the ParticipantTrading Privilege Holder, to:

(1) inspect systems, equipment and software operated by the Trading Privilege Holder

Participant in connection with Exchange Activity, wherever located;

(2) access the systems, equipment, software, and the premises on which the systems, 

equipment, and software are located, any data stored in any of the systems or 

equipment, during the regular business hours and the Trading Hours of the Exchange, 

without prior Exchange Nnotice to Participants; and/or
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(3) copy or reproduce any data to which the Exchange has access under this Rule.

(b) Each Trading Privilege Holder and Clearing Member shall keep all books and records required 

to be kept by it pursuant to the Rules of the Exchange for a period of five years from the date on 

which they are first prepared, unless otherwise provided in the Rules of the Exchange or required 

by law. Any such books and records exclusively created and maintained on paper shall be readily 

accessible during the first two years of that five-year period and any such electronic books and 

records shall be readily accessible during that entire five-year period. During such five-year 

period, all such books and records shall be made available for inspection by, and copies thereof 

shall be delivered to, the Exchange and its authorized representatives upon request in a form and 

manner prescribed by the Exchange and within the time frame designated by the Exchange and 

its authorized representatives.Each Participant shall provide the Exchange‘s appointed 

representative with the same access to their books and records and offices as they are required 

to provide the Exchange under the Cboe Digital Exchange Rules and Applicable Law.

(c) The Market Regulation Department may require a Participant to furnish (periodically or on a 

particular occasion) information concerning the Participant’s Exchange Activity. For a Participant, 

such information includes but is not limited to, the Participant’s open trading positions or Contracts 

to which the Participant is a party.

RULE 404. Minimum Financial and Related Reporting Requirements

(a) Each ParticipantTrading Privilege Holder, which includes each Clearing FirmMember, that is 

registered with any Government Agency, including the CFTC and the U.S. Securities and 

Exchange Commission, or a Self-Regulatory Organization shall comply with CFTC Regulation 

§1.17, applicable Clearing House Rules and other the provisions of Applicable Law, including but 

not limited to the rules and regulations such Government Agency imposes on a Participant, which 

includes each Clearing Firm, relating to minimum financial and related reporting and 

recordkeeping requirements. Upon request by the Exchange, Participant a Trading Privilege 

Holder shall produce such records related to this Rule 404(a).

(b) A copy of any notice or written report that a ParticipantTrading Privilege Holder, which includes 

an FCM, IB or any Clearing Firm, is required to file with the CFTC pursuant to CFTC Regulations 

§1.10 and §1.12 shall be concurrently provided to the Exchange. A Trading Privilege Holder that 

violates any of the aforementioned Commission Regulations shall be deemed to have violated 

this Rule 404.

(c) The Exchange conducts surveillance related Rule 404(a), including through its membership in 

the Joint Audit Committee.

(d) A Participant that violates any provision of Applicable Law, including CFTC Regulations, shall 

be deemed to have violated this Rule 404. In addition to the minimum financial requirements that 

a Trading Privilege Holder or Clearing Member must satisfy in accordance with Applicable Law, 

each Trading Privilege Holder and Clearing Member shall be required to satisfy such minimum 

financial requirements, and comply with such obligations related thereto, as may be established 

from time to time by the Exchange.
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(e) Each Trading Privilege Holder and Clearing Member must notify the Exchange immediately 

upon becoming aware that it fails to satisfy the minimum financial requirements applicable to it.

(f) Unless and until a Trading Privilege Holder or Clearing Member, as the case may be, is able 

to demonstrate to the Exchange that it is in compliance with the minimum financial requirements 

applicable to it, such Trading Privilege Holder or Clearing Member may not engage in any 

transactions subject to the Rules of the Exchange, except for the purpose of closing open 

positions.

RULE 405. Confidentiality of Financial and Other Information

All information and data obtained or received by the Market Regulation Department Exchange 

from inspections of accounting and other records, quarterly balance sheets and declarations or 

reports on financial condition will be treated as confidential by the Exchange; however, this Rule 

does not supplant Rule 213 and the Rules in Chapter 7, or any other requirement of legal process 

or law.

RULE 406. Authority to Impose Restrictions

Whenever a Participant Trading Privilege Holder is subject to the early warning requirements set 

forth in CFTC Regulation §1.12, the Exchange may impose such conditions or restrictions on the 

business and operations of such Participant Trading Privilege Holder or as the Exchange may 

deem necessary or appropriate for the protection of Customers, other Trading Privilege 

HolderParticipants, or the Exchange.

RULE 407. Customers

(a) No Participant shall carry an account for a Customer unless the Participant has entered into 

a written agreement with the Customer containing such terms as may from time to time be 

prescribed in these Rules.

(b) Without prejudice to the generality of paragraph (a) of this Rule 407, each written agreement 

with a Customer must incorporate into every Contract carried for the Customer all the terms 

of the Cboe Digital Exchange Rules insofar as they are applicable to that Contract. 

(c) No Participant shall engage in soliciting or accepting an Order for a Contract for a Participant 

or Customer unless the Participant has entered into a written agreement with the Customer 

that meets the requirements of this Rule.

(a) No Trading Privilege Holder or Clearing Member (including any Person that is affiliated with 

such Trading Privilege Holder or Clearing Member), may solicit or accept from any other Person 

an Order for the purchase or sale of a Contract, unless such Trading Privilege Holder or Clearing 

Member, or its respective affiliated Person, as the case may be, is registered in any required 

capacity in accordance with Applicable Law.
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(b) Any Trading Privilege Holder or Clearing Member that is required to be registered as a futures 

commission merchant, an introducing broker, a broker or a dealer shall comply with the provisions 

of Commission Regulations § 155.3, § 155.4 or § 41.42(a) or Exchange Act Regulation § 15c3-

3, as applicable.

(c) In accordance with applicable requirements of the NFA (in the case of any Trading Privilege 

Holder or Clearing Member that is registered with the NFA), each Trading Privilege Holder or 

Clearing Member, as the case may be, shall provide its Customers with a written disclosure 

statement in the form approved by the Exchange for purposes of Commission Regulation § 1.55, 

§ 33.7 or § 41.41(b), as applicable, and any other disclosure statement from time to time required 

by the Exchange.

RULE 408. Treatment of Customer Funds and Securities

Each Participant Trading Privilege Holder that is required to be registered with any Government 

Agency, including the CFTC and the U.S. Securities and Exchange Commission, or SelfRegulatory Organization shall comply with the provisions of Applicable Law, including but not 

limited to the rules and regulations such Government Agency imposes on a Trading Privilege 

Holder Participant relating to the treatment of Customer funds and the maintenance of books and 

records with respect thereto. Specifically, Eeach Clearing Firm Member must comply with the

regulations of the applicable Government Agency and the rules of the Clearing House, including, 

but not limited to rules related to the protection of Ccustomer funds, including the segregation of 

Ccustomer and proprietary funds, the custody of Ccustomer funds, the investment standards for 

Ccustomer funds, intermediary default procedures and related recordkeeping. This includes, but 

is not limited to CFTC Regulations §§ 1.20 and 1.25. Any Participant Trading Privilege Holder 

that violates any of the aforementioned Clearing House Rules or other Applicable Law relating to 

the treatment of Customer funds and the maintenance of books and records with respect thereto 

shall be deemed to have violated this Rule 408.

RULE 409. Disclosure RequirementsBooks and Records

Each Participant must comply with all disclosure requirements set forth in Applicable Laws Any 

such disclosure may be combined with a disclosure regarding the existence of financial interests 

held by the Participant in the Exchange or any other exchange.

(a) Each Trading Privilege Holder and Clearing Member shall prepare and keep current all books, 

ledgers and other similar records required to be kept by it pursuant to the CEA, Commission 

Regulations, other Applicable Law and the Rules of the Exchange, and shall prepare and keep 

current such other books and records and adopt such forms as the Exchange may from time to 

time prescribe. Such books and records shall include, without limitation, records of the activity, 

positions and transactions of each Trading Privilege Holder and Clearing Member in the 

underlying commodity or reference market and related derivatives markets in relation to a 

Contract. Such books and records shall be made available to the Exchange upon request in a 

form and manner prescribed by the Exchange and within the time frame designated by the 

Exchange.
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(b) With respect to each Order, bid, offer or other message transmitted to the Cboe Digital Trading 

System by an Authorized Trader of a Trading Privilege Holder, the Trading Privilege Holder shall 

keep a record of which Authorized Trader of the Trading Privilege Holder caused that Order, bid, 

offer or other message to be transmitted to the Cboe Digital Trading System.

(c) If a Contract listed on the Exchange is settled by reference to the price of a contract or 

commodity traded in another venue, including a price or index derived from prices on another 

designated contract market, Trading Privilege Holders shall make available to the Exchange upon 

request in a form and manner prescribed by the Exchange and within the time frame designated 

by the Exchange information and their books and records regarding their activities in the reference 

market.

RULE 410. Information Regarding Orders

(a) The Exchange will make information regarding Orders (including prices bid or offered), trades 

completed on the Exchange, and any other matters it may deem appropriate (collectively, “Market 

Data”) available to Participants and other Persons at such times and in such manner (whether 

through the Cboe Digital Trading System, a ticker, financial information services or otherwise) as 

it may consider necessary or advisable appropriate from time to time. The Exchange may require 

Trading Privilege Holders, financial information vendors, ISVs, extranet service providers, and 

other Persons that receive Market Data from the Exchange or an Exchange Affiliate to execute 

one or more market data, connectivity or similar agreements with the Exchange or Exchange 

Affiliate in a form and manner prescribed by the Exchange or Exchange Affiliate.

(b) Subject to a Participant’s rights in its own data and information as between the Exchange and 

such Participant and except as otherwise permitted by the Exchange Rules or other agreement 

with the Exchange, Participants shall not sell, distribute, re-transmit, transfer, license or otherwise 

provide Market Data to any third party.Each Participant or other Person receiving any such 

information through the Cboe Digital Trading System may redistribute such information only to 

such extent and in such manner as may be permitted by the Exchange from time to time.
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CHAPTER 5: TRADING PRACTICES AND BUSINESS CONDUCT

RULE 501. Scope

Except as set forth in Chapter 6 (Privately Negotiated Transactions) or as otherwise provided in 

the Cboe Digital Exchange Rules, this Chapter 5 applies to all transactions in Contracts.

RULE 502. Procedures

(a) With respect to trading on or though the Cboe Digital Trading System, the Exchange may 

adopt, without limitation, procedures relating to transactions in Contracts and trading on the 

Cboe Digital Trading System, including procedures to:

(1) determine the Daily Settlement Price of a Contract;

(2) disseminate the prices of bids and offers on, and trades in, Contracts;

(3) record, and account for, Contracts and Exchange Activity;

(4) perform market surveillance and regulation on matters affecting Contracts and Exchange 

Activity;

(5) establish limits on the number and/or size of Orders that may be submitted by a Participant 

Trading Privilege Holder through the Cboe Digital Trading System; 

(6) establish limits on the number of Contracts that may be held by a Trading Privilege Holder 

or Customer or Participant;

(7) establish a limit on the maximum daily price fluctuations for any Contract and provide for 

any related restriction or suspension of trading in the Contract; and,

(8) require a suspended or expelled ParticipantTrading Privilege Holder, or a Trading 

Privilege Holder Participant with restricted trading rights, to have Contracts executed for 

the Trading Privilege HolderParticipant to reduce or eliminate any open position or 

exposure to future price changes for the Trading Privilege HolderParticipant in any 

Contract.

(b) The Exchange may, in its discretion and at any time, amend any procedures adopted pursuant 

to Rule 502(a), and will publish the amendments in an Exchange Notice to Participant or in 

any other manner determined appropriate by the Exchange.

RULE 503. Business Days and Trading Hours

Except as provided in Rule 212 with respect to Emergencies, the Exchange shall determine and 

publish a Notice to Participants listing the Business Days and Holidays of the Exchange and the 

Trading Hours and Block Trading Hours for each Contract.

(a) The Exchange shall from time to time determine Business Days and Trading Hours. Trading 

Hours shall include any regular and other trading hours under the rules governing the relevant 

Contract and published on the Exchange website. Except to the extent expressly permitted by 

the Rules of the Exchange, no Trading Privilege Holder (including its Authorized Traders) shall 

engage in any transaction in any Contract before or after such hours.
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(b) The Exchange may modify its regular Business Days and Trading Hours to not be open for 

business or to have shortened trading hours in connection with a holiday or a period of mourning.

(c) The Exchange may from time to time adopt procedures for the opening or closing of trading in 

any Contract.

RULE 504. Rule Violations Acts Detrimental to the Exchange; Acts 

Inconsistent with Just and Equitable Principles of Trade; Abusive Practices

It shall be a violation to engage in any act detrimental to the Exchange, in conduct inconsistent 

with just and equitable principles of trade or in abusive practices, including without limitation, 

fraudulent, noncompetitive, dishonorable, dishonest or unfair actionsIt shall be a violation for a 

Participant (or any of its Authorized Traders, Authorized Brokers, Authorized Representatives, or 

Supervised Persons) to violate any Rule or any agreement made with the Exchange, or to engage 

in fraud, dishonorable or dishonest conduct, or in conduct which is inconsistent with just and 

equitable principles of trade.

RULE 505. Fraudulent Acts Prohibited

No Participant Trading Permit Holder (or any of its Authorized Traders, Authorized Brokers, 

Authorized Representatives, or Supervised PersonsRelated Parties) shall engage or attempt to 

engage in any fraudulent act or engage or attempt to engage in any scheme to defraud, deceive 

or trick, in connection with or related to any trade on or other activity related to the Exchange or 

the Clearing House. Prohibited activity encompassed by this Rule in relation to any Contract may 

occur either directly through activity in the market for that Contract, or indirectly through activity in 

the market of any commodity, security, index or benchmark underlying that Contract, regardless 

of the exchange on or market in which the underlying is transacted. shall engage in any fraudulent 

act, or engage in any scheme to defraud, deceive, trick or mislead in connection with or related 

to any Exchange Activity or other activity related to the Clearing House.

RULE 506. Fictitious, Wash or Non-Competitive Transactions Prohibited

No Participant Trading Privilege Holder (or any of its Authorized Traders, Authorized Brokers, or 

Supervised PersonsRelated Parties) shall create fictitious transactions or execute any Order for 

a fictitious transaction with knowledge of its nature.shall create fictitious transactions, wash 

transactions, or non-competitive transactions except, in the case of noncompetitive transactions, 

as otherwise authorized by the Cboe Digital Exchange Rules, or execute any such Order with 

knowledge of its nature as a fictitious transaction, wash transaction, or non-competitive 

transaction.

RULE 507. Money Pass Market Disruption Prohibited

Orders entered into the Cboe Digital Trading System for the purpose of disrupting the orderly 

functioning of the market in any Contract or creating a condition in which prices do not or will not 

reflect fair market values are prohibited, and any Participant (or any of its Authorized Traders, 

Authorized Brokers, or Supervised Persons) who makes or assists in entering any such Order 
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with knowledge of the purpose thereof or who, with such knowledge, in any way assists in carrying 

out any plan or scheme for the entering of any such Order, will be deemed to have engaged in 

an act detrimental to the Exchange.

No Trading Privilege Holder, Related Party or Participant shall prearrange the execution of 

transactions on the Exchange for the purpose of passing money between accounts. All 

transactions executed on the Exchange must be made in good faith for the purpose of executing 

bona fide transactions, and prearranged trades intended to effectuate a transfer of funds from 

one account to another are prohibited

RULE 508. Market Manipulation Prohibited

No Participant Trading Privilege Holder, (or any of its Authorized Traders, Authorized Brokers, 

Related Party or Participant Supervised Persons) shall:

(a) attempt to manipulate or manipulate the price ofmarket in any Contract, either directly 

by engaging in activity in the market for that Contract, or indirectly by engaging in activity 

in the market of any commodity, security, index or benchmark underlying that Contract, 

regardless of the exchange on or market in which the underlying is transacted;

(b) purchase or sell, or offer to purchase or sell, any Contract, or any underlying asset of 

any Contract, regardless of the exchange on or market in which the underlying is 

transacted, for the purpose of creating a condition in which prices of the Contract do not 

or will not reflect fair market values; or

(c) intentionally or recklessly use or employ, or attempt to use or employ, any manipulative 

device, scheme or artifice to defraud, relating to any Contract either directly by engaging 

in activity in the market for that Contract, or indirectly by engaging in activity in the market 

of any commodity, security, index or benchmark underlying that Contract, regardless of 

the exchange on or market in which the underlying is transacted.

RULE 509. Disruptive Trading Practices Prohibited

(a) All Oorders entered in the Cboe Digital Trading System must be entered for the purpose 

of executing bona fide transactions, and all non-actionable messages must be entered or for other 

in good faith, for legitimate purposes. No Trading Privilege Holder, Authorized Trader Related 

Party, or Participant (or any of its Authorized Traders, Authorized Brokers, or Supervised Persons) 

shall engage in any trading, practice, or conduct that: 

(a)(1) violates bids or offers; 

(b)(2) demonstrates intentional or reckless disregard for the orderly execution of 

transactions;

(c)(3) is, or is of the character commonly known as, “spoofing;” (bidding or offering with 

the intent to cancel the bid or offer before execution); 

(d)(4) constitutes any other disruptive trading practice under the CEA or CFTC 

Regulations, including Section 4c(a)(5) of the CEA.

(b) No Person shall enter or cause to be entered an Order with the intent, at the time of entry, to 

cancel the Order before execution or to modify the Order to avoid execution.
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(c) No Person shall enter or cause to be entered an Order with the intent, at the time of entry, to 

cancel the Order before execution or to modify the Order to avoid execution.

(d) No Person shall enter or cause to be entered an actionable or non-actionable message(s) with 

intent to mislead other market participants.

(e) No Person shall enter or cause to be entered an actionable or non-actionable message(s) with 

intent to overload or delay the systems of the Exchange or other market participants.

(f) No Person shall intentionally or recklessly submit or cause to be submitted an actionable or 

non-actionable message(s) that has the potential to disrupt the systems of the Exchange or other 

market participants.

(g) No Person shall enter or cause to be entered an actionable or non-actionable message(s) with 

intent to disrupt, or with reckless disregard for the adverse impact on, the orderly conduct of 

trading or the fair execution of transactions. 

The provisions of this Rule apply to all market states, including the pre-opening period, the closing 

period, and all trading sessions.

RULE 510. Prohibition of Misstatements

No Participant (or any of its Authorized Traders, Authorized Brokers, Authorized Representatives, 

or Supervised Persons) shallIt shall be an offense to make any knowing misstatement or omission

of a material fact to the Exchange, any Exchange Official, the Board or any Board committee 

thereof, or an Exchange panel, or or any director, officer or employee of the Exchange.

RULE 511. Sales Practice RulesActs Detrimental to the Welfare of Exchange 

Prohibited

No Participant (or any of its Authorized Traders, Authorized Brokers, Authorized Representatives, 

or Supervised Persons) shall engage in any act that is detrimental to the Exchange or the Clearing 

House.

Without limiting the generality of Rule 512, each Futures Trading Privilege Holder (including its 

Related Parties) shall comply with any and all sales practice rules (including those relating to 

bunched orders, opening and approval of accounts, suitability, use of discretion, supervision of 

accounts, risk disclosure document delivery, communications, monthly statements and 

confirmations, registration, qualification and continuing education, customer complaints, 

prohibition against guarantees and profit sharing and money laundering) from time to time 

promulgated by the NFA which rules are hereby incorporated by reference into this Rule 511.

RULE 512. Adherence to Law

No Participant Trading Privilege Holder (or any of its Authorized Traders, Authorized Brokers, or 

Supervised PersonsRelated Parties) shall engage in conduct that is a violation of Applicable Law, 
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the Rules of the Exchange, the Rules of the Clearing House (insofar as the Rules of the Clearing 

House relate to reporting or clearance of any transaction in Contracts) or any agreement with the 

Exchange..

RULE 513. Supervision

(a) Each Participant Trading Privilege Holder shall be responsible for establishing, maintaining

and administering reasonable supervisory procedures to monitor the compliance of Authorized 

Traders, Authorized Brokers, and Supervised Persons ensure that its Related Parties, automated 

trading systems and Customers comply with Applicable Law, the Cboe Digital Exchange Rules

and the Clearing House Rules. and any applicable provisions of the Act or CFTC Each Trading 

Privilege Holder shall be responsible for supervising its Related Parties and automated trading 

systems and such Participant may be held accountable for the actions of such Authorized 

Traders, Authorized Brokers, or Supervised Personsits Related Parties and automated trading 

systems.

(b) Each Participant shall supervise that Participant’s activities and automated trading systems to 

ensure that they comply with Applicable Law, the Rules of the Exchange and the Rules of the 

Clearing House, in each case to the extent those provisions are applicable to Participants.

RULE 514. Orders of Other Clearing FirmsFront-Running

No Clearing Firm shall accept or submit any Order for or on behalf of another Clearing Firm, 

without the prior written consent of such other Clearing Firm. If such Order results in a transaction, 

the Clearing Firm accepting the Order must send promptly a duplicate confirmation of the 

transaction to the Clearing Firm from whom the prior written consent is required pursuant to this 

Rule.

No Trading Privilege Holder, Related Party or Participant shall take a position in a Contract based 

upon non-public information regarding an impending transaction by another Person in the same 

or a related Contract, or in any commodity, security, index or benchmark underlying that Contract 

regardless of the exchange on or market in which the underlying is transacted, unless expressly 

permitted by Exchange Rules.

RULE 515. Misuse of the Cboe Digital Trading System

Misuse of the Cboe Digital Trading System is strictly prohibited. It shall be deemed an act 

detrimental to the Exchange to permit unauthorized use of the Cboe Digital Trading System, to 

assist any Person in obtaining unauthorized access to the Cboe Digital Trading System, to trade 

on the Cboe Digital Trading System without an agreement and an established account with a 

Clearing FirmMember, to alter the equipment associated with the Cboe Digital Trading System 

(except with the Exchange’s consent), to interfere with the operation of the Cboe Digital Trading 

System, to intercept or interfere with information provided thereby, or in any way to use the Cboe 

Digital Trading System in a manner contrary to the Cboe Digital Exchange Rules.
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RULE 516. Errors and Omissions in Handling Orders

(a) A Participant Trading Privilege Holder who inadvertently, through error or omission, fails to 

execute an Order for a Customer at the time it should have been executed may, upon 

discovery of such error or omission, execute such Order at the best obtainable price. Such 

Order shall be competitively executed and should be executed in the next available trading 

session for the applicable listed Contract, but in any event must be executed no later than the 

close of the next trading day and shall be reported to the Customer at the price at which it was 

actually executed. If such price is to the advantage of the Customer, the Customer shall 

receive the benefit thereof; if not, the Customer shall receive such monetary adjustment as 

will afford the Customer the equivalent of the price at which such Order should and could have 

been executed. 

(b) Any Clearing Firm Member receiving such a report and adjustment with respect to an Order 

of a Customer shall report to such Customer the execution at the price reported to such 

Clearing Firm Member and make the same monetary adjustment for the account of such 

Customer. Full details of all transactions consummated hereunder shall be promptly provided 

to the Market Regulation Department Exchange upon request.

(c) This Rule shall not be construed to contravene any instructions received from a Customer 

respecting any Order prior to its execution, but shall be construed to permit execution of 

Orders under the conditions prescribed without prior instructions from the Customer.

RULE 517. Liquidity Provider Programs

(a) The Exchange may from time to time establish programs that provide Participants Trading 

Privilege Holders with financial incentives for meeting trading volume or liquidity thresholds 

as may be established by the Exchange.

(b) All Participants Trading Privilege Holders are eligible to become Liquidity Providers, provided 

the a Participant Trading Privilege Holder can meets the Liquidity Provider obligations.

RULE 518. Withholding Orders Prohibited

Any No Trading Privilege Holder, Related Party or Participant entering Orders on the Cboe Digital

Trading System shall not withhold or withdraw from the market any Order, or any part of an Order, 

for the benefit of any Person other than for the placed by any Customer for whom the Participant 

is placing the Order unless expressly authorized to do so by such Customer.

RULE 519. Priority of Customers’ Orders

(a) No Trading Privilege Holder, Related Party or Participant shall enter an buy (sell) a Order 

Contract into the Cboe Digital Trading System for his its own a personal or proprietary account,

or for an account in which he it has a direct or indirect financial proprietary interest when such 

Trading Privilege Holder, Related Party or Participant has in hand an Orders to buy (sell) the 

same Contract for any other Person at the same price or at the market price.
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(b) No Trading Privilege Holder, Related Party or Participant shall execute a discretionary Order 

for any Contractor an account over which he has discretionary trading authority, including, without 

limitation, an Order allowing discretion as to time and price, for an immediate family member or 

for a personal or proprietary account of any other Trading Privilege Holder, Related Party or 

Participant, when such Trading Privilege Holder, Related Party or Participant is in possession of 

any unsubmitted Customer Order for the same Contract open as to time and pricethat the Cboe 

Digital Trading System is capable of accepting.

(c) An Authorized Trader entering Orders into the Cboe Digital Trading System must enter all 

Customer Orders that the Cboe Digital Trading System is capable of accepting before entering 

an Order for a personal or proprietary account of such Authorized Trader or the related Trading 

Privilege Holder, an account in which such Authorized Trader or Trading Privilege Holder has a 

proprietary interest or an Order for a discretionary account, including an Order allowing such 

Authorized Trader or Trading Privilege Holder discretion as to time and price, for an immediate 

family member or for a personal or proprietary account of any other Trading Privilege Holder or 

Related Party.

(d) For purposes of this Rule 519, no Trading Privilege Holder or Participant that consists of more 

than one individual, shall be deemed to buy (sell) a Contract or execute a discretionary Order if 

(i) such Trading Privilege Holder or Participant has in place appropriate “firewall” or separation of 

function procedures and (ii) the individual buying (selling) the Contract or executing the 

discretionary Order in question has no direct knowledge of the Order to buy or sell the same 

Contract for any other Person at the same price or at the market price or of the Customer Order 

for the same Contract, as the case may be. Nothing in this Rule 519 shall limit the ability of an 

“eligible account manager” to bunch Orders in accordance with Commission Regulation § 

1.35(b)(5).

RULE 520. Handling of Customer Orders

(a) General Prohibition - No Trading Privilege Holder, Related Party or Participant in possession 

of a Customer Order shall knowingly take, directly or indirectly, the opposite side of such Order 

for its own account, an account in which it has a direct or indirect financial interest, or an account 

over which it has discretionary trading authority.

(b) Exceptions - The foregoing restriction shall not apply to the following:

(1) Transactions executed pursuant to Rules 601 and 602;

(2) On the Cboe Digital Trading System, a Trading Privilege Holder, Related Party or 

Participant may knowingly trade against a Customer Order for its own account, an account 

in which it has a direct or indirect financial interest, an account over which it has 

discretionary trading authority, or a Proprietary Account of its employer, only if:

(A) the Customer Order has been entered immediately upon receipt and has first 

been exposed on the Cboe Digital Trading System for a minimum of 5 seconds in 

the case of Futures Orders or for a minimum of 15 seconds in the case of Options 

Orders.; and

(B3) Transactions where the Customer has previously consented in writing no more 

than 12 months prior to the transaction to waive the application of Rule 520, and 
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such consent has not been revoked as long as the Participant has clearly notified 

the Customer that the Participant will take, directly or indirectly, the opposite side 

of such Order for its own account, an account in which it has a direct or indirect 

financial interest, or an account over which it has discretionary trading authority.

RULE 521. Disclosing Orders Prohibited

Except in accordance with any policies or procedures for pre-execution discussions from time to 

time adopted by the Exchange, nNo Trading Privilege Holder, Related Party or Participant shall 

disclose to any Person a Customer’sny Order placed by any other Person other than as necessary 

to execute the order except to the Exchange or the Commission, to a designated Exchange 

Official, the CFTC, NFA or other governmental or self-regulatory organization. No Trading 

Privilege Holder, Related Party or Participant shall solicit or induce another Participant Person to 

disclose Order information. No Person Trading Privilege Holder, Related Party or Participant shall 

take action or direct another to take action based on non-public Order information, however 

acquired. The mere statement of opinions or indications of the price at which a market may open 

or resume trading does not constitute a violation of this rule.

RULE 522. Simultaneous Buy And Sell Orders For Different Beneficial 

Owners

(a) No Trading Privilege Holder, Related Party or Participant shall accept simultaneous buy and 

sell Orders from the same beneficial owner for the same expiration of a particular Contract that 

could potentially execute against each other.

(b) On the Cboe Digital Trading System, Oopposite Orders for different beneficial owners that are 

simultaneously placed by a Trading Privilege Holder, Related Party or Participant with discretion 

over both accounts may be entered into the Cboe Digital Trading System, provided that one Order 

is exposed for a minimum of 5 seconds in the case of Futures Orders or a minimum of 15 seconds 

in the case of Options Orders. An Order allowing for price and/or time discretion, if not entered 

immediately upon receipt, may be knowingly entered opposite another Order entered by the same 

firm only if the Order has been entered immediately upon receipt and has been exposed on the 

Cboe Digital Trading System for a minimum of 5 seconds for Futures Orders or a minimum of 15 

seconds for Options Orders.

RULE 523. Wash Sales Prohibited

No Person Trading Privilege Holder, Related Party or Participant shall place or accept buy and 

sell Orders in the same product and expiration month, and, for a put or call Option, the same strike 

price, where the person knows or reasonably should know that the purpose of the orders is to 

avoid taking a bona fide market position exposed to market risk (transactions commonly known 

or referred to as wash sales). Buy and sell Orders for different accounts with common beneficial 

ownership that are entered with the intent to negate market risk or price competition shall also be 

deemed to violate the prohibition on wash trades. Additionally, no Person shall knowingly execute 

or accommodate the execution of such Orders by direct or indirect means.
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RULE 524. Recordkeeping Requirements for Entering Orders into the Cboe

Digital Trading System

(a) All Orders shall be entered into the Cboe Digital Trading System by electronic transmission 

through a Cboe Digital Workstation, and the Exchange shall maintain an electronic record of those 

entries. Each Trading Privilege Holder (including its Authorized Traders) shall be responsible in 

every respect for any and all Orders entered by it (including its Related Parties) and for 

compliance by its Related Parties with this Rule 524. Prior to entering any Order, the relevant 

Related Party shall connect to the Cboe Digital Trading System in a form and manner prescribed 

by the Exchange.

(b) Each single Order other than a Cancel Order or Cancel Replace/Modify Order must contain 

the following information: (i) whether such Order is a buy or sell Order; (ii) Order type; (iii) price 

or premium (if the Order is not a Market Order); (iv) quantity; (v) in the case of Orders for Futures, 

Contract identifier or product and contract expiration(s); (vi) in the case of Orders for Options, 

either Contract identifier or each of strike price(s), type(s) of option(s) (put or call), expiration(s) 

and underlying Futures Contract(s); (vii) Client Order ID; (viii) FIRM code (i.e., Clearing FIRM 

code and Trading Privilege Holder FIRM code); (ix) Order Entry Operator ID; (x) Clearing House

origin code (C for Customer or F for Firm); (xi) Customer Type Indicator code; (xii) manual Order 

indicator; (xiii) account designation (which shall be the account number of the account of the party 

for which the Order was placed, except that a different account designation may be included in 

the case of a bunched Order processed in accordance with Rule 524(h) and 511 or in the case of 

an Order for which there will be a post-trade allocation of the resulting trade(s) to a different 

clearing member); and (xiv) such additional information as may be prescribed from time to time 

by the Exchange.

General Requirements. 

(1) Each Authorized Trader or Authorized Broker entering Orders into the Cboe Digital 

Trading System shall input for each Order: 

i. the user ID assigned him by the Exchange, 

ii. the price or yield, quantity, product, maturity or expiration month or date, CTI code and 

account number (except as provided in Section (d)), and, for Options, put or call and 

strike price. 

iii. The Authorized Trader’s or Authorized Broker’s user ID must be present on each Order 

entered.

(c) Each Cancel Order must contain the following information: (i) Client Order ID of Order to be 

canceled; (ii) FIRM code (i.e., Clearing FIRM code and Trading Privilege Holder FIRM code); (iii) 

Order Entry Operator ID; (iv) manual Order indicator; and (v) such additional information as may 

be prescribed from time to time by the Exchange.

(d) Each Cancel Replace/Modify Order must contain the following information: (i) Client Order 

ID; (ii) Client Order ID of Order to be canceled; (iii) FIRM code (i.e., Clearing FIRM code and 

Trading Privilege Holder FIRM code); (iv) Order Entry Operator ID; (v) manual Order indicator; 

(vi) Order type; (vii) price or premium; (viii) quantity; and (ix) such additional information as may

be prescribed from time to time by the Exchange.
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(e) Each Quote must contain the following information: (i) whether the Quote is to buy or sell; (ii) 

price or premium; (iii) quantity; (iv) Contract identifier; and (v) such additional information as may 

be prescribed from time to time by the Exchange.

(f) In the event that any single Order or Quote does not contain required or permitted information 

in a form and manner prescribed by the Exchange the single Order or Quote will be rejected or 

canceled back to the sender by the Cboe Digital Trading System.

(f2) With respect to Orders received by an Trading Privilege Holder (including its Authorized 

Traders) or Authorized Broker that are capable of being immediately entered into the Cboe Digital

Trading System, no record other than that set forth above need be madekept by such Trading 

Privilege Holder, except as may be required pursuant to Rule 409 and Applicable Law. However, 

if an Trading Privilege Holder (including its Authorized Traders) or Authorized Broker receives an 

Order that cannot be immediately entered into the Cboe Digital Trading System, the Authorized 

Trader Trading Privilege Holder must prepare an written Order form in a non-alterable written 

medium, and which shall include the account designation, date, an electronic timestamp reflecting 

the time of receipt and other information required pursuant to section (ba) Each such form must 

be retained by the Trading Privilege Holder for at least five years from the time it is prepared. 

above. The Order must be entered into the Cboe Digital Trading System, in the order it was 

received, when as soon as it becomes executable.

(gb) Electronic Audit Trail Requirements for Electronic Order Routing/Front-End Systems. 

(1) Each Clearing Firms Member and each Trading Privilege Holder that is an FCM or an 

IB guaranteeing a connection to the Cboe Digital Trading System are responsible for 

maintaining or causing to be maintained the Order routing/ shall maintain front-end 

(including order routing) audit trail information for all electronic Orders entered by that 

party into the Cboe Digital Trading System, including Order entry, all related modifications,

and cancellations and responses to such messages (referred to as the “Electronic Audit 

Trail”), entered into the Cboe Digital Trading System through any gateway to the Cboe 

Digital Trading System. 

(2) Each Clearing Member shall also maintain, or cause to be maintained, front-end audit 

trail information for all electronic Orders entered into the Cboe Digital Trading System by 

any Trading Privilege Holder for which the Clearing Member is identified in the Order 

submission as the Clearing Member for the execution of the Order, including all related 

modifications and cancellations. This audit trail must contain all Order entry, modification, 

cancellation and response receipt time(s) as well as all Financial Information Exchange 

interface (“FIX”) tag information. The Electronic Audit Trail must be maintained for a 

minimum of 5 years, and Clearing Firms must have the ability to produce this data in a 

standard format upon request of the Market Regulation Department. This Electronic 

aAudit tTrail must contain all Order receipt, Order entry, Order modification, and response

/receipt times to the highest level of precision achievable by the operating system, but at 

least to the hundredth of a second. The times captured must not be able to be modified 

by the Person entering the Order. The data must also contain as well as all Financial 

Information Exchange interface (“FIX”ix) Tag information and fields as applicablewhich 

should include, but is not limited to the following: A record of all fields relating to Order 

entry, including transaction date, product, Exchange code, expiration month, quantity, 

Order Type, Order Qualifier, price, buy/sell indicator, stop/trigger price, Order number, 
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unique transaction number, account number, session ID, operator ID, host Order number, 

trader Order number, Clearing Firm, type of action, action status code, customer type 

indicator, origin, and timestamps. For executed Orders the audit trail must record the 

execution time of the trade along with all fill information.

(3) Notwithstanding any of the provisions of this Rule 524, each Trading Privilege Holder 

is obligated to comply with the provisions of CFTC Regulation 1.35 as applicable to that 

Trading Privilege Holder.

(4) In the case where the guaranteeing Clearing Firm Member has a direct connect 

Customer that is another Clearing FirmMember, the Clearing Firm Member may notify the 

Customer Clearing Firm Member in writing that it is their obligation to maintain the 

Electronic Audit Trail. It shall be the duty of the Customer Clearing Firm Member to 

maintain an eElectronic Aaudit tTrail pursuant to this rule.

(hc) Bunched Orders and Orders Eligible for Post Execution Allocation. 

Bunched Orders must be allocated and recorded in accordance with CFTC Regulation 

1.35(b)(5) and NFA’s Interpretive Notice 9029 - NFA Compliance Rule 2-10: The Allocation of 

Bunched Orders for Multiple Accounts.

(1) Bunched Orders may be entered using a series designation or suspense account 

number provided that:

(i) the Order is being placed by an account manager for multiple accounts eligible for 

post execution allocation or 

(ii) a written, predetermined allocation scheme that defines the series has been 

provided to the futures commission merchant accepting or clearing the Order prior to 

the time that such Order is entered. In the latter case, if such information has not been 

provided to the futures commission merchant prior to the time of Order entry, each 

specific account number must be entered into the Cboe Digital Trading System. 

Additionally, for all such bunched Orders executed on the Cboe Digital Trading 

System, the final account specific allocations must be submitted to the Cboe Digital

Trading System no later than the end of each trading day.

(2) Bunched Orders for non-discretionary accounts may be entered through the Cboe 

Digital Trading System; however, only the following Order Types may be bunched: same 

priced limit Orders, same priced stop Orders and market Orders received prior to the 

opening of the Cboe Digital Trading System trading session. Such non-discretionary 

Orders may only be bunched in the following instances:

(i) Each Order underlying the bunched Order must be reduced to writing and include 

the information required pursuant to Section (ba)(1) above;

(ii) Allocation of the executions for the bunched Orders must be fair and equitable in 

accordance with the NFA’s Interpretive Notice related to Compliance Rule 2-10; and

(iii) In circumstances where the Order is bunched the Participant Trading Privilege 

Holder accepting the Order must, contemporaneously with the Order placement, 

transmit the individual account numbers and quantities associated with the bunched 

Order to the Clearing FirmMember. Such transmission shall be maintained by the 

Clearing Firm Member along with the bunched Order.

(d) Customer Type Indicator (CTI) Codes. 
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Each Clearing Firm must identify each transaction executed on the Cboe Digital Trading 

System on the record of transactions submitted to the Exchange with the correct customer 

type indicator (CTI) code. The CTI codes are as follows:

(1) CTI 1- Transactions initiated and executed by a member for his own account, for an 

account he controls or for an account in which he has ownership or financial interest. 

CTI 1 is not applicable to Cboe Digital Exchange because the Exchange does not have 

members or a trading floor.

(2) CTI 2- Transactions executed for the proprietary account of a Clearing Firm or nonClearing member firm (i.e., a Participant Firm trading for its own account held at a 

Clearing Firm).

(3) CTI 3- Transactions where an individual member or authorized trader executes for the 

personal account of another individual member, for an account the other individual 

member controls or for an account in which the other individual member has an 

ownership or financial interest.

(4) CTI 4- Any transaction not meeting the definition of CTI 1, 2 or 3.

RULE 525. Prearranged, Pre-Negotiated and Noncompetitive Trades 

Prohibited

(a) Except as set forth in Chapter 6 or as in accordance with subparagraph (b) below, no Person 

Trading Privilege Holder, Related Party or Participant enter any Order into the Cboe Digital 

Trading System shall which has been prearranged or pre-negotiate any purchase or sale or 

noncompetitively execute any transaction, except in accordance with Sections (b) below.

(b) Pre-Execution Communications Regarding the Cboe Digital Trading System Trades. Parties 

may engage in pre-execution communications with regard to transactions executed on the 

Cboe Digital Trading System where one party (the first party) wishes to be assured that a 

contra party (the second party) will take the opposite side of the Order subject to the following 

restrictions:

(1) A party may not engage in pre-execution communications with other market participants 

on behalf of another party unless the party for whose benefit the trade is being made has 

previously consented to permit such communications.

(2) Parties to pre-execution communications shall not:

i. disclose to a nonparty the details of such communications or 

ii. enter an Order to take advantage of information conveyed during such 

communications except in accordance with this rule.

(3) The first party’s Order must be entered into the Cboe Digital Trading System first and the 

second party’s Order may not be entered into the Cboe Digital Trading System platform 

until a period of 5 seconds has elapsed from the time of entry of the first Futures Order or 

a period of 15 seconds for Options Orders.

RULE 526. Responsibility For Customer Orders

(a) Standard of Responsibility.

 
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(1) A Participant Trading Privilege Holders handling Orders for Customers shall exercise due 

diligence in the handling and execution of Customer Orders. Failure to act with due diligence 

shall constitute negligence. In the case of a dispute as to whether a Participant Trading 

Privilege Holder has exercised due diligence, the appropriate arbitration or disciplinary 

committee is authorized to determine whether the Participant Trading Privilege Holder was 

negligent and, if so, whether an adjustment is due to the Customer.

(2) A Participant Trading Privilege Holders areis prohibited from directly or indirectly 

guaranteeing the execution of an Order or any of its terms such as the quantity or price;. A 

Participant may only report an execution that has been effected through the Cboe Digital 

Trading System or has been executed under Chapter 6. provided that nNothing herein shall 

be construed to prevent a Participant Trading Privilege Holder from assuming or sharing in 

the losses resulting from an error or the mishandling of an Order. A Trading Privilege Holder 

may only report an execution that has been effected through the Cboe Digital Trading System 

or has been executed pursuant to Chapter 6. 

(b) Liability for Negligence. A Participant Trading Privilege Holder may not adjust the price at 

which an Order was executed or be held responsible for executing or failing to execute an Order 

unless such Trading Privilege Holder Participant was negligent or is settling a bona-fide dispute 

regarding negligence. A Trading Privilege Holder Participant may not compel an adjustment from 

another Participant Trading Privilege Holder in the absence of a bona-fide dispute regarding 

negligence. Trading Privilege Holder Participants and Clearing Firms Members shall document 

all adjustments. Trading Privilege Holder Participants and Clearing Firms Members shall make 

and retain a record which contains the date the adjustment was received, the name of the Trading 

Privilege Holder Participant making the adjustment, the account to which the adjustment was 

credited, the amount of the adjustment, the Order number and the reason for the adjustment. 

Such records must be provided to the Market Regulation Department Exchange upon request.

RULE 527. Discretionary Orders

No Participant Trading Privilege Holder shall submit a dDiscretionary Order to the Cboe Digital

Trading System for any account of another Person, without the prior specific written consent of 

such other Person to exercise such discretion. 

RULE 528. Priority of Execution

Non-discretionary Customer Orders received by a ParticipantTrading Privilege Holder, an 

Authorized Trader, or Authorized Broker shall be entered into the Cboe Digital Trading System in 

the sequence received. Non-discretionary Orders that cannot be immediately entered into the 

Cboe Digital Trading System must be entered when the Orders become executable in the 

sequence in which the Orders were received.

RULE 529. Average Price System

(a) Application of Average Prices. A proprietary average price system (“APS”) developed by a 

Participant Trading Privilege Holder allows a Trading Privilege Holder Participant to confirm 
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to Customers an average price when multiple execution prices are received on an Order or 

series of Orders for the same instrument. An Order or series of Orders executed for the same 

instrument during the same trading day at more than one price may be averaged pursuant to 

APS only if each Order is for the same account or group of accounts and for the same 

instrument, or for the same instrument, maturity, put/call and strike price for Options.

(b) Requirements for APS Trades. The requirements enumerated below must be met for APS 

transactions.

(1) The Customer must have requested average price reporting.

(2) Each individual trade must be submitted to the Exchange and cleared by the Clearing 

House at the executed price.

(3) A Participant Trading Privilege Holder must compute and confirm the weighted 

mathematical average price, as set forth in Section (c).

(4) A Trading Privilege HolderParticipant must possess the records to support the calculations 

and allocations to Customer Accounts and must maintain these records pursuant to CFTC 

regulations.

(5) A Trading Privilege Holder Participant must ensure that its proprietary trades are not 

averaged with Customer APS trades.

(c) Computation of Average Price. Upon receipt of an execution or match at multiple prices for 

an APS Order, the weighted mathematical average must be computed by: 

(1) multiplying the number of instruments purchased or sold at each execution price by that 

price;

(2) adding the results together; and, 

(3) dividing by the total number of instruments. 

An average price for a series of Orders will be computed based on the average prices of 

each Order in that series. The actual average price or the average price rounded to the next 

price increment may be confirmed to Customers. If a Participant Trading Privilege Holder 

confirms the rounded average price, the Trading Privilege Holder Participant must round the 

average price up to the next price increment for a buy Order or down to the next price 

increment for a sell Order. The residual created by the rounding process must be paid to the 

Customer. APS may produce prices that do not conform to whole cent increments. In such 

cases, any amounts less than one cent may be retained by the Trading Privilege 

HolderParticipant.

(d) Disclosure. Each Participant Trading Privilege Holder that confirms an average price to a 

Customer must indicate on the confirmation and monthly statement that the price represents 

an average price.

RULE 530. Position Limits And Exemptions

(a) The Exchange shall designate for each Contract whether it is subject to position limits or to 

position accountability. This Rule 530 governs Contracts that are subject to position limits. The 
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position limit levels applicable to those Contracts with position limits are set forth in the Position 

Limit, Position Accountability and Reportable Level Table in Rule 533. 

(b) Position limits shall be as established by the Exchange from time to time as permitted by CFTC

Regulation 38.300, Part 150 of the CFTC Regulations, and CFTC Regulation 41.25, as applicable. 

Except as specified in paragraphs (c) and (d) below, Trading Privilege Holders shall not control, 

or trade in, any number of Contracts that exceed any position limits so established by the 

Exchange. Once established, any such position limits shall be deemed to constitute a part of 

each Trading Privilege Holder’s account and clearing agreement. Except as specified in 

paragraphs (c) and (d) below, no Trading Privilege Holder shall be permitted to enter, or place an 

Order to enter, into any transaction on the Exchange that would cause such Trading Privilege 

Holder to exceed any position limits.

(c) On the basis of an application to the Exchange in accordance with paragraph (d) below, and 

such supplemental information as the Exchange may request, the Exchange will determine 

whether to grant a position limit exemption. To the extent that a Contract is subject to federal 

position limits or otherwise subject to the provisions Part 150 of the Commission Regulations, the 

Exchange shall adhere to the applicable provisions Part 150 of the Commission Regulations, 

including any applicable definitions and requirements, in relation to any position limit exemption 

requests relating to that Contract. Eligible exemptions include:

(1) Bona Fide Hedging Positions. The Exchange may grant exemptions from position limits 

for bona fide hedge positions as defined by CFTC Regulation §1.3(z)(1) or any other 

applicable CFTC Regulation. Approved bona fide hedgers may be exempted from 

Emergency Rules that reduce position limits or restrict trading.

(2) Risk Management Positions. The Exchange may grant exemptions from the position 

limits for risk management positions. For the purposes of this Rule, risk management 

positions are defined as Futures and Options positions which are held by or on behalf of 

an entity or an affiliate of an entity which typically buys, sells or holds positions in the 

underlying cash market, a related cash market, or a related over-the-counter market and 

for which the underlying market has a high degree of demonstrated liquidity relative to the 

size of the positions and where there exist opportunities for arbitrage which provide a close 

linkage between the Futures or Options market and the underlying market in question. 

Exemptions related to indexed positions in the over-the-counter market may include 

corresponding commodity index-based Futures and Options and/or individual commodity 

Futures and Options used as components in replicating an index.

(3) Arbitrage and Spread Positions. The Exchange may grant exemptions from the 

position limits for arbitrage, intracommodity spread, intercommodity spread, and eligible 

Option/Option or Option/Futures spread positions.

(d) A Person Trading Privilege Holder seeking an position limit exemption from position limits 

must apply to the Market Regulation Department Exchange in a form and manner prescribed by 

the Exchange. In order to obtain an exemption from position limits, a Person Trading Privilege 

Holder must include the following in any such application:
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(1) Provide a description of the exemption sought, including whether the exemption is for 

bona fide hedging positions as defined in CFTC Regulation §1.3 or any other applicable 

CFTC Regulation, risk management positions or arbitrage/spread positions;

(2) If a qualified bona fide hedge transaction or position, a representation that describes 

how the transaction qualifies as a bona fide hedge transaction or position;

(3) Provide a complete and accurate explanation of the underlying exposure related to the 

exemption request, including exposure the underlying commodity;

(A) If a risk management transaction, a representation that the position held by a 

Trading Privilege Holder that typically buys, sells or holds positions in the 

underlying market, a related market or a related over-the-counter market for which 

the underlying market has a high degree of demonstrated liquidity relative to the 

size of the positions and where there exist opportunities for arbitrage which provide 

a close linkage between the futures or options market and the underlying market.

(B) If an arbitrage or spread transaction, an undertaking that the prospective 

arbitrageur or spreader will specify the extent of the Trading Privilege Holder’s 

current or planned activity in the cash market underlying the Contract for which 

such exemption is requested.

(4) A representation that the bona fide hedge, risk management, arbitrage or spread 

transaction will not be used in an attempt to violate or avoid any Rule of the Exchange;

(53) An aAgreement to promptly provide, upon request by the Market Regulation 

DepartmentExchange, information or documentation regarding the Person’s Trading 

Privilege Holder’s financial condition or supplemental statement explaining any change in 

circumstances that may affect the nature of its positions;

(64) Agree to comply with all terms, conditions or limitations imposed by the Market 

Regulation Department Exchange with respect to the exemption;

(7) A schedule of the maximum number of Contracts, long and short, that such Trading 

Privilege Holder intends to enter into for bona fide hedging, risk management, arbitrage 

or spread transaction purposes;

(5) An aAgreement that the Market Regulation Department Exchange may modify or 

revoke the exemption at any time;

(6) A representation that the positions Agree involved shall beto initiated and liquidated

positions in an orderly manner based upon the characteristics of the market for which the 

exemption is sought; and,
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(7) An aAgreement to promptly submit a supplemental statement to the Market Regulation 

Department Exchange whenever there is a material change to the information provided in 

the most recent application.

(e) A Person intending to exceed position limits, including limits established pursuant to a 

previously approved exemption, must file the required application and receive approval from the 

Market Regulation Department prior to exceeding such limits. Notwithstanding the foregoing, a 

Person who establishes an exemption-eligible position in excess of position limits and files the 

required application with the Market Regulation Department shall not be in violation of this Rule 

provided the filing occurs within one (1) Business Day after assuming the position. The application 

for a position limit exemption must be submitted to and approved by the Exchange before 

execution of any transaction for which the exemption is requested.

(f) Any position limit exemption granted by the Exchange for a bona fide hedge transaction, risk 

management transaction or arbitrage or spread transaction shall remain in effect for the time 

period designated by the Exchange, unless the exemption is earlier rescinded by the Exchange. 

The time period for which a position limit exemption may be granted by the Exchange may be up 

to two years. The Exchange shall have the authority, at any time and in its sole discretion, to 

review and rescind, limit or condition any position limit exemption granted by it. 

(g) A Trading Privilege Holder shall promptly submit to the Exchange upon request such 

supplemental information requested by the Exchange in connection with the review of a position 

limit exemption granted to the Trading Privilege Holder. 

(hd) In the event the positions in excess of the limits are not deemed to be exemption-eligible, the 

applicant and Clearing Firm Member will be in violation of speculative limits for the period of time 

in which the excess positions remained open. 

(ie) The Market Regulation DepartmentExchange shall, on the basis of the application and any 

requested supplemental information, determine whether an exemption from position limits shall 

be granted. The Market Regulation DepartmentExchange may approve, deny, condition or limit 

any exemption request as it may deem necessary or appropriate based on factors deemed by the 

Market Regulation Department to be relevant, including, but not limited to, the liquidity of the 

markets involved, sound commercial practices, the applicant's business needs and financial 

status, as well as whether the positions can be established and liquidated in an orderly manner.

(jf) Nothing in this Rule shall in any way limit:

(1) the authority of the Exchange to take emergency action; or 

(2) the authority of the Market Regulation Department to review at any time the positions 

owned or controlled by any Person and to direct that such position be reduced to the 

accountability level or position limit provided for in this Chapter.

(kg) A Person Trading Privilege Holder who that has received written authorization from the 

Market Regulation Department Exchange for an exemption from position limits must annually file 
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an updated application on the date which is one year following the approval date of the most 

recent application. Failure to file an updated application will result in expiration of the exemption.

(h) Eligible Exemptions

(1) Bona Fide Hedging Positions. 

The Market Regulation Department may grant exemptions from position limits for bona fide 

hedge positions as defined by CFTC Regulation §1.3(z)(1) or any other applicable CFTC 

Regulation. Approved bona fide hedgers may be exempted from Emergency Rules that 

reduce position limits or restrict trading.

(2) Risk Management Positions. 

The Market Regulation Department may grant exemptions from the position limits for risk 

management positions. For the purposes of this Rule, risk management positions are defined 

as Futures and Options positions which are held by or on behalf of an entity or an affiliate of 

an entity which typically buys, sells or holds positions in the underlying cash market, a related 

cash market, or a related over-the-counter market and for which the underlying market has a 

high degree of demonstrated liquidity relative to the size of the positions and where there exist 

opportunities for arbitrage which provide a close linkage between the Futures or Options 

market and the underlying market in question. Exemptions related to indexed positions in the 

over-the-counter market may include corresponding commodity index-based Futures and 

Options and/or individual commodity Futures and Options used as components in replicating 

an index.

(3) Arbitrage and Spread Positions. The Market Regulation Department may grant 

exemptions from the position limits for arbitrage, intracommodity spread, intercommodity 

spread, and eligible Option/Option or Option/Futures spread positions.

(li) Aggregation of Positions.

(1) Positions to be Aggregated. The position limits in Rule 533 shall apply to all positions in 

accounts for which a Person by power of attorney or otherwise directly or indirectly owns the 

positions or controls the trading of the positions. The position limits in Rule 533 shall also 

apply to positions held by two or more Persons acting pursuant to an expressed or implied 

agreement or understanding, the same as if the positions were held by, or the trading of the 

positions was done by, a single Person.

(2) Ownership of Accounts. Except as set forth in subparagraph Rule 530(mj) below, any 

Person holding positions in more than one account, or holding accounts or positions in which 

the Person by power of attorney or otherwise directly or indirectly has a 10% or greater 

ownership or equity interest, must aggregate all such accounts or positions, unless such 

Person is a pool participant in a commodity pool. The foregoing exception for pool participants 

shall not apply if the Person is a commodity pool operator, controls the commodity pool’s 

trading decisions, or has an ownership or equity interest of 25% or more in a commodity pool 

whose operator is exempt from registration with the CFTC.
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(mj) Limited Exceptions to Aggregation for Independently Controlled Positions. 

(1) Positions carried for an eligible entity as defined in CFTC Regulation §150.1(d) in the 

separate account or accounts of independent account controllers as defined in CFTC 

Regulation §150.1(e) shall not be aggregated for position limit purposes provided that the 

positions are not held in the spot month during such time that a spot month position limit is 

applicable. If an independent account controller is affiliated with the eligible entity or another 

independent account controller, each of the affiliated entities must comply with the 

requirements set forth in CFTC Regulation §150.3(4)(i)(A-D).

(2) Positions held by Futures Commission Merchants or their separately organized Affiliates 

in Customer discretionary accounts or in guided account programs shall not be aggregated 

for position limit purposes provided that the accounts are controlled by independent traders 

and meet the standards set forth in CFTC Regulation §150.4(d).

(3) Any Person claiming an exemption from position limits under this Rule 532 must, upon 

request by the Market Regulation Department, provide any information deemed necessary to 

support the exemption.

(nk) Violations. 

(1)No Person shall exceed the position limits set forth in the Rules, unless an exemption 

is granted by the Market Regulation Department.

(2) The Market Regulation Department and the Exchange Practices Committee shall have 

the authority to enforce the Cboe Digital Exchange Rules regarding position limits

(3) Any Person making a bid or offer that would, if accepted, cause such Person to exceed 

the applicable position limits shall be in violation of this Rule 530.

(4) If a position exceeds position limits as a result of an Option assignment, the Person 

who owns or controls such position shall be allowed one Business Day to liquidate the 

excess position without being considered in violation of the limits. Additionally, if, at the 

close of trading, a position that includes Options exceeds position limits when evaluated 

using the delta factors as of that day’s close of trading, but does not exceed the limits 

when evaluated using the previous day’s delta factors, then the position shall not 

constitute a position limit violation.

(5) A Clearing Firm Member shall not be in violation of this Rule if it carries positions for a 

Customer in excess of the applicable position limits for such reasonable period of time, 

generally not exceed one Business Day, as the Clearing Firm Member may require to 

investigate and liquidate the excess Customer positions. 

(6) A Customer who exceeds the position limits as a result of maintaining positions at more 

than one Clearing Firm Member shall be deemed to have waived confidentiality regarding 

his positions and the identity of the Clearing Firms Members at which they are maintained. 
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A Clearing Firm Member carrying such positions shall not be in violation of this Rule if, 

upon notification by the Market Regulation DepartmentExchange, it liquidates its pro-rata 

share of the position in excess of the limits or otherwise ensures the Customer is in 

compliance with the limits within a reasonable period of time, generally not exceed one 

Business Day.

(o7) Violations, Sanctions and Appeals.

i.(1) First Violation. The first position limit violation by a Trading Privilege Holder

Participant will result in a warning letter issued by the Market Regulation Department, with 

a copy provided to the carrying Clearing FirmMember(s), if applicable. In circumstances 

where the carrying Clearing Firm Member has also committed a position limit violation as 

set forth in this Rule 530 by carrying such positions, a warning letter will be issued to the 

Clearing MemberFirm(s).

(2)ii. Second Violation, Sanctions and Appeals. 

(A)a. A second position limit violation by a Trading Privilege Holder Participant 

within 24 months of the issuance of a warning letter will result in the imposition of 

an automatic fine by the Market Regulation Department to the Trading Privilege 

Holder Participant as set forth below and the issuance of a cease and desist order.

(B)b. The automatic fine for a position exceeding the applicable limit by up to 25% 

shall be $5,000.

(C)c. The automatic fine for a position exceeding the applicable limit by more than 

25% shall be $15,000.

(3)iii. Referral to the Chief Regulatory Officer.

(A)a. Any third or subsequent position limit violation within 24 months of the 

issuance of a warning letter shall be referred by the Market Regulation Department 

to the Chief Regulatory Officer for consideration of the issuance of charges. 

(B)b. Notwithstanding anything to the contrary contained herein, the Market 

Regulation Department, in its sole discretion, may refer any position limit violation 

it deems egregious to the Chief Regulatory Officer for consideration of the 

issuance of charges.

(4)iv. Appeal. Parties may, within 10 Business Days of being provided notice of sanctions 

issued pursuant to this section, request an appeal to the Exchange Practices Committee.

(A)a. Upon receiving a written request for appeal, the Chair of the Exchange 

Practices Committee shall determine solely upon the written request for appeal 

and any written response of the Market Regulation Department, whether there is 

a reasonable basis to conclude that the appellant might be able to meet one of the 
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standards identified in subsection (b) below that would permit the Exchange 

Practices Committee to set aside, modify or amend the appealed decision. If the 

Chair determines that such a reasonable basis exists, a hearing will be held. The 

Exchange Practices Committee Chair’s determination of whether to hold a hearing 

on an appeal shall be final. If a hearing is held the Chair shall allow the filing of 

briefs in connection with the appeal. 

(B)b. The Exchange Practices Committee shall not set aside, modify or amend the 

appealed decision unless it determines by a majority vote that the decision was:

(i)I. Arbitrary, capricious, or an abuse of the Market Regulation 

Department’s discretion;

(ii)II. In excess of the Market Regulation Department’s authority or 

jurisdiction; or,

(iii)III. Based on a clearly erroneous application or interpretation of Cboe 

Digital Exchange Rules.

(C)c. If a hearing is held, the Exchange Practices Committee shall issue a written 

decision which shall include a statement of findings with respect to the decision 

from which the appeal was taken and the Exchange Practices Committee’s 

determination that such initial decision is affirmed, set aside, modified or amended 

in whole or in part and, with respect to any initial decision that is not affirmed in 

whole, the Exchange Practices Committee’s determination of the order or penalty 

to be imposed, if any, and the effective date. The decision of the Exchange 

Practices Committee shall be final and may not be appealed.

RULE 531. Position Accountability

(a) A Participant Trading Privilege Holder who holds or controls, or a Participant Trading Privilege 

Holder or Clearing Firm Member that carries for another Person, aggregate positions in excess 

of those specified in the Position Accountability column in the Table in Rule 533, shall:

(1) Provide, in a timely manner upon request by the Market Regulation DepartmentExchange, 

information regarding the nature of the position, trading strategy, and hedging information, if 

applicable.

(2) Be deemed to have consented, when so ordered by the Exchange, not to further increase 

the positions which exceed the levels specified in the Position Accountability column in the 

Table in Rule 533.

(3) Initiate and/or liquidate such positions in an orderly manner.

(b) For purposes of this rule, all positions in accounts for which a ParticipantTrading Privilege 

Holder, by power of attorney or otherwise, directly or indirectly controls trading shall be included 
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with the positions held by such ParticipantTrading Privilege Holder. The provisions of this rule 

shall apply to positions held by two or more Participants Trading Privilege Holder acting pursuant 

to an expressed or implied agreement or understanding, the same as if the positions were held 

by or the trading of the positions was controlled by a single ParticipantTrading Privilege Holder.

RULE 532. Reports of Large Positions and Ownership and Control 

Reporting

(a) Large Trader Reporting

(1) Each Trading Privilege Holder, including Clearing FirmsMembers, shall submit to the 

Exchange a daily report of all positions at or above the Reportable Futures Level as set forth 

in the Table in Rule 533 (“Large Trader Report”). (2) Positions at or above the Reportable 

Futures Level in a discrete Commodity Code (pursuant to the Table in Rule 533) trigger 

reportable status. For a person in reportable status in a discrete Commodity Code, all 

positions, regardless of size, in the same discrete Commodity Code must be reported. 

(23) All Large Trader Reports shall be submitted in a manner and form acceptable to the 

Market Regulation DepartmentExchange. The Exchange may require that more than one 

Large Trader Report be submitted daily. The Regulatory Oversight Committee or the Market 

Regulation Department Exchange may require reports from any Trading Privilege Holder, 

including any Clearing Firm Member, on a lesser number of positions than reflected in the 

Table in Rule 533.

(b) Ownership and Control Reporting

(1) Clearing Firms Members, and any Trading Privilege Holder and other 

ParticipantsPerson required pursuant to CFTC regulations to submit to the CFTC Form 

102 (including CFTC Form 102A and CFTC Form 102B), and as applicable, must provide 

the Market Regulation Department Exchange with the required Form 102 (including CFTC 

Form 102A and/or CFTC Form 102B) identifying the owner, any controlling parties and 

any additional required information for each reportable account. 

(2) Each Trading Privilege Holder that is not a Clearing Member must report to the 

Exchange the same information regarding the identification and reporting of special 

accounts relating to Exchange Contracts that each a Clearing Member is required to report 

to the CFTC pursuant to CFTC regulations for reportable accounts.

(3) A reportable account for the purposes of this Rule 532(b)(1) and (b)(2) is an account 

at or above the Reportable Futures Level and/or the Volume Threshold Reportable Level 

as identified in the Ttable in Rule 533. 

(2) The applicable Form 102A and/or Form 102B must be submitted to the Market 

Regulation Department Exchange no later than 9:00 am Eastern Time on the Business 

Day following the date on which the account becomes reportable. Additionally, Trading 

Privilege Holders Clearing Firms must submit a revised form reflecting any material 
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changes to the information previously provided to the Market Regulation Department 

Exchange within three Business Days of such changes becoming effective. In the 

absence of any material changes, the Exchange may require electronic submission of a 

new Form 102A and/or Form 102B on an annual basis for the maintenance of accurate 

records. 

RULE 533. Position Limit, Position Accountability, Reportable Level, and 

Volume Threshold Level Table

The reportable levels for all Contracts are set forth in the Position Limit, Position Accountability, 

Reportable Level, and Volume Threshold Level Table below. For purposes of the Large Trader 

Report, Contracts shall be reported according to discrete Commodity Code. The reportable level 

is the net long position or the net short position for each discrete Commodity Code. Pursuant to 

Rule 909, concurrent long and short positions must be reported to the Exchange for both sides 

as open positions (i.e., net long positions or net short positions).

Position Limit, Position Accountability, Reportable Level, and Volume Threshold Level 

Table:

Contract Name Commodity 

Code

Reportable 

Futures Level 

for each 

discrete 

Commodity 

Code (Large 

Trader Report 

and Form 

102A)

Position 

Accountability 

for each 

discrete 

Commodity 

Code

Position Limit for 

each discrete 

Commodity Code

Volume Threshold 

Reportable Level for 

each discrete 

Commodity Code (Form 

102B)

Bitcoin Futures BTC 25 contracts N/A 200,000 250 contracts

Ether Futures ETH 25 contracts N/A 75,000 250 contracts

Ether Bitcoin Futures ETBT 25 contracts N/A 75,000 250 contracts

RULE 534. The Cboe Digital Trading System Access Restrictions

(a) A trade given up to another Clearing MemberFirm will be deemed to have been accepted by 

such Clearing MemberFirm if the trade is not rejected by the close of business on the business 

day following the trade date. The acceptance of a trade by a Clearing MemberFirm shall not 

relieve any ParticipantTrading Privilege Holder, Authorized Trader, or Clearing Firm Member of 

the duty to act in accordance with the Rules.

(b) All individuals Persons entering Customer Orders in other than a clerical capacity must have 

appropriate industry registration and meet all applicable regulatory requirements. Customer 

Orders must be entered from the premises of an entity registered to conduct Customer business.
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(c) Clearing MembersFirms shall assist the Exchange in any investigation into potential violations 

of the Cboe Digital Exchange Rules or the CEA which occur through or with respect to a Cboe 

Digital Trading System connection guaranteed by the Clearing FirmMember. Such assistance 

must be timely and may include, but not be limited to, requiring any Trading Privilege Holder

Participant or Customer to produce documents, to answer questions from the Exchange, and/or 

to appear in connection with an investigation. Upon request by the Exchange, Clearing Firms 

Members shall suspend or terminate a Trading Privilege HolderParticipant’s or Customer’s 

access if the Exchange determines that the actions of the Trading Privilege Holder Participant or 

Customer threaten the integrity or liquidity of any Contract or violate any Cboe Digital Rule or the 

CEA, or if the Customer fails to cooperate in an investigation.

(d) If a Clearing Firm Member has actual or constructive notice of a violation of Cboe Digital 

Exchange Rules in connection with the use of the Cboe Digital Trading System by a Participant 

or Customer Trading Privilege Holder for which it has authorized a direct connection and the 

Clearing Firm Member fails to terminate the connection, the Clearing Firm Member may be found 

to have committed an act detrimental to the Exchange.

RULE 535. Identification of Order Entry OperatorAuthorized Traders and 

Authorized Brokers

Each Authorized Trader or Authorized Broker shall be identified to the Exchange, in the manner 

prescribed by the Exchange, and shall be subject to Cboe Digital Exchange Rules. If user IDs 

are required to be registered with the Exchange, it is the duty of the Clearing Firm to ensure that 

registration is current and accurate at all times. Each individual must use a unique user ID to 

access the Cboe Digital Trading System. In no event may a Person enter an Order or permit the 

entry of an Order by an individual using a user ID other than the individual’s own unique user ID.

(a) Each Trading Privilege Holder, in a form and manner prescribed by the Exchange, shall include 

an Order Entry Operator ID with every Order (including, without limitation, every Cancel Order 

and Cancel Replace/Modify Order) from that Trading Privilege Holder that is submitted to the 

Cboe Digital Trading System. Any Order submitted to the Cboe Digital Trading System that does 

not contain an Order Entry Operator ID in a form and manner prescribed by the Exchange will be 

rejected or canceled back to the sender by the Cboe Digital Trading System.

(b) Natural Persons. Order Entry Operator IDs are subject to the following requirements in relation 

to a natural person:

(1) Each Order Entry Operator ID shall represent (A) the natural person physically 

responsible for entering the Order into the Cboe Digital Trading System (if a natural person 

entered the Order into the Cboe Digital Trading System); or (B) the natural person 

physically responsible for entering the Order directly or indirectly into a system of or used 

by a Trading Privilege Holder that interfaces with the Cboe Digital Trading System (if no 

natural person entered the Order into the Cboe Digital Trading System and instead a 

natural person entered the Order directly or indirectly into a system of or used by a Trading 

Privilege Holder that interfaces with the Cboe Digital Trading System).
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(2) An Order Entry Operator ID issued for a natural person may only be used by that 

natural person. An Order Entry Operator ID issued for a natural person may not be used 

by any other natural person or entity and may not be used as the Order Entry Operator ID 

for an Automated Trading System.

(c) Automated Trading Systems. Order Entry Operator IDs are subject to the following 

requirements in relation to Automated Trading Systems. For purposes of this Rule 535, an 

Automated Trading System is a system that automates the generation and routing of Orders:

(1) Each Order originating from an Automated Trading System that is submitted to the 

Cboe Digital Trading System shall include an Order Entry Operator ID for that Automated 

Trading System. 

(2) An Order Entry Operator ID issued for an Automated Trading System may only be 

used for that Automated Trading System. An Order Entry Operator ID issued for an 

Automated Trading System may not be used for any other Automated Trading System 

and may not be used as the Order Entry Operator ID for any natural person or entity. 

(3) If a natural person utilizes a front-end trading system with automated functionality (such 

as spreading functionality) and the use of that functionality is ancillary to the natural 

person’s manual trading, an Order Entry Operator ID is not required to be used for that 

front-end trading system. In that event, the natural person’s Order Entry Operator ID may 

be used for the submission of Orders originating from that front-end trading system. If, 

however, the automated functionality of the front-end trading system generates a majority 

of the natural person’s Orders, that front-end trading system shall be treated as an 

Automated Trading System for purposes of this Rule 535 and an Order Entry Operator ID 

for the frontend trading system must be included in each Order generated by the frontend 

trading system in order to differentiate those Orders from manual Orders submitted by the 

natural person.

(d) Records and Reporting. Each Trading Privilege Holder shall comply with the following 

issuance, recordkeeping, and reporting requirements related to Order Entry Operator IDs: 

(1) Each Order Entry Operator ID issued for a natural person or Automated Trading 

System for inclusion with any Order from the Trading Privilege Holder that is submitted to 

the Cboe Digital Trading System shall be unique, and shall not be associated with more 

than one natural person or Automated Trading System, at the Clearing Member level. 

Each Trading Privilege Holder and any Clearing Member utilized by the Trading Privilege 

Holder shall coordinate as necessary in order to ensure that this requirement is satisfied. 

(2) Each Trading Privilege Holder shall collect and maintain accurate, complete, and upto-date records with the following information for each Order Entry Operator ID issued for 

a natural person or Automated Trading System for inclusion with any Order from the 

Trading Privilege Holder that is submitted to the Cboe Digital Trading System: 
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(A) a clear identification of whether the Order Entry Operator ID is issued for a 

natural person or Automated Trading System;

(B) if the Order Entry Operator ID is issued for a natural person, the name, address, 

telephone and e-mail contact information, and position or relationship to the 

Trading Privilege Holder of the natural person; 

(C) if the Order Entry Operator ID is issued for an Automated Trading System, the 

name, address, telephone and email contact information, and position or 

relationship to the Trading Privilege Holder of the head operator of the Automated 

Trading System; and

(D) any other related information as may be prescribed by the Exchange.

(3) Each Trading Privilege Holder shall provide to the Exchange in a form and manner 

prescribed by the Exchange information requested by the Exchange regarding any Order 

Entry Operator IDs and the natural persons and Automated Trading Systems for which 

they have been issued for inclusion with any Order from the Trading Privilege Holder that 

is submitted to the Cboe Digital Trading System. The information requested relating to an 

Automated Trading System may include, among other things, information regarding the 

head operator and other individuals that operate the Automated Trading System and the 

type of models, algorithms, programs, and systems utilized by the Automated Trading 

System. 

(4) Each Trading Privilege Holder shall promptly report to the Exchange in a form and 

manner prescribed by the Exchange any new or changed information regarding Order 

Entry Operator IDs that are identified to the Trading Privilege Holder by the Exchange as 

being subject to this reporting requirement.

RULE 536. LIMITATION OF LIABILITY, NO WARRANTIES

(a) EXCEPT AS PROVIDED BELOW, AND EXCEPT IN INSTANCES WHERE A PARTY HAS 

BEEN FINALLY ADJUDICATED TO HAVE ENGAGED IN WILLFUL OR WANTON 

MISCONDUCT, IN WHICH CASE THE PARTY FOUND TO HAVE ENGAGED IN SUCH 

CONDUCT CANNOT AVAIL ITSELF OF THE PROTECTIONS IN THIS RULE 536, NEITHER 

THE EXCHANGE (INCLUDING ITS SUBSIDIARIES AND AFFILIATES, CLEARING HOUSE, 

AND ANY TECHNOLOGY SERVICES PROVIDER AND CONTRACTORS PROVIDING 

SERVICES TO THE EXCHANGE), NOR ANY OF THEIR RESPECTIVE DIRECTORS, 

OFFICERS, EMPLOYEES, AGENTS, CONSULTANTS, AND LICENSORS (THE 

“DISCLAIMING PARTY” OR “DISCLAIMING PARTIES”) SHALL BE LIABLE TO ANY 

PERSON FOR ANY LOSSES, DAMAGES, COSTS OR EXPENSES (INCLUDING, BUT NOT 

LIMITED TO, LOSS OF PROFITS, LOSS OF USE, AND DIRECT, INDIRECT, INCIDENTAL, 

CONSEQUENTIAL OR PUNITIVE DAMAGES), ARISING FROM:
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(1) ANY FAILURE, MALFUNCTION, FAULT IN DELIVERY, DELAY, OMISSION, 

SUSPENSION, INACCURACY, INTERRUPTION, TERMINATION, OR ANY OTHER 

EVENT, IN CONNECTION WITH THE FURNISHING, PERFORMANCE, OPERATION, 

MAINTENANCE, USE OF OR INABILITY TO USE ALL OR ANY PART OF ANY OF THE 

SYSTEMS AND SERVICES OF THE EXCHANGE, OR SERVICES, EQUIPMENT OR 

FACILITIES USED TO SUPPORT SUCH SYSTEMS AND SERVICES, INCLUDING 

WITHOUT LIMITATION ELECTRONIC ORDER ENTRY/DELIVERY, TRADING 

THROUGH ANY ELECTRONIC MEANS, ELECTRONIC COMMUNICATION OF 

MARKET DATA OR INFORMATION, WORKSTATIONS USED BY PARTICIPANTS 

TRADING PRIVILEGE HOLDERS AND AUTHORIZED TRADERS, PRICE REPORTING 

SYSTEMS AND ANY AND ALL TERMINALS, COMMUNICATIONS NETWORKS, 

CENTRAL COMPUTERS, SOFTWARE, HARDWARE, AND FIRMWARE RELATING 

THERETO; OR

(2) ANY FAILURE OR MALFUNCTION, FAULT IN DELIVERY, DELAY, OMISSION, 

SUSPENSION, INACCURACY, INTERRUPTION OR TERMINATION, OR ANY OTHER 

EVENT, OF ANY SYSTEM OR SERVICE OF THE EXCHANGE, OR SERVICES, 

EQUIPMENT OR FACILITIES USED TO SUPPORT SUCH SYSTEMS OR SERVICES, 

CAUSED BY ANY THIRD PARTIES INCLUDING, BUT NOT LIMITED TO, 

INDEPENDENT SOFTWARE VENDORS AND NETWORK PROVIDERS; OR

(3) ANY ERRORS OR INACCURACIES IN INFORMATION PROVIDED BY THE 

EXCHANGE OR ANY OR ANY OF THE EXCHANGE’S SYSTEMS, SERVICES OR 

FACILITIES; EXCEPT FOR INCORRECT ORDER STATUSING INFORMATION AS 

PROVIDED IN RULE 539; OR

(4) ANY UNAUTHORIZED ACCESS TO OR UNAUTHORIZED USE OF ANY OF THE 

EXCHANGE’S SYSTEMS, SERVICES, EQUIPMENT OR FACILITIES BY ANY PERSON.

THE FOREGOING LIMITATION OF LIABILITY SHALL APPLY WHETHER A CLAIM ARISES 

IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, CONTRIBUTION OR 

OTHERWISE AND WHETHER THE CLAIM IS BROUGHT DIRECTLY OR AS A THIRD 

PARTY CLAIM.

THE FOREGOING LIMITATION OF LIABILITY SHALL BE SUBJECT TO THE CEA AND 

REGULATIONS THEREUNDER. 

(b) NOTWITHSTANDING SUBSECTION (a), (b),(e), or (f) OF THIS RULE 536, IN NO EVENT 

SHALL PLATFORM TECHNOLOGY SERVICES PROVIDERS BE LIABLE TO ANY PERSON 

NOR SHALL ANY PERSON BRING ANY LEGAL ACTION (WHETHER IN TORT, 

NEGLIGENCE, OR BREACH OF CONTRACT) FOR ANY LOSSES, DAMAGES, COSTS OR 

EXPENSES INCLUDING, BUT NOT LIMITED TO LOSS OF PROFITS, LOSS OF USE, 

DIRECT, SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL 

DAMAGES, ARISING FROM THE USE OF THE PLATFORM. THE TERM PLATFORM 

TECHNOLOGY SERVICES PROVIDERS REFERS TO THE TECHNOLOGY SERVICES 

PROVIDERS PROVIDING SERVICES TO THE EXCHANGE.
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(c) THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS 

(INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY AND 

FITNESS FOR A PARTICULAR PURPOSE OR USE) PROVIDED BY THE DISCLAIMING 

PARTY OR DISCLAIMING PARTIES RELATING TO ANY SYSTEMS OR SERVICES OF 

THE EXCHANGE OR SERVICES, EQUIPMENT OR FACILITIES USED TO SUPPORT 

SUCH SYSTEMS OR SERVICES, INCLUDING THE CBOE DIGITAL TRADING SYSTEM.

(d) ANY DISPUTE ARISING OUT OF THE USE OF SYSTEMS OR SERVICES OF THE 

EXCHANGE OR SERVICES, EQUIPMENT, OR FACILITIES USED TO SUPPORT SUCH 

SYSTEMS OR SERVICES IN WHICH THE DISCLAIMING PARTY OR DISCLAIMING 

PARTIES IS A PARTY SHALL BE ARBITRATED PURSUANT TO CHAPTER 8. ANY 

ARBITRATION SHALL BE BROUGHT WITHIN THE PERIOD PRESCRIBED BY CHAPTER 

8. ANY OTHER ACTIONS, SUITS OR PROCEEDINGS AGAINST THE DISCLAIMING 

PARTY OR DISCLAIMING PARTIES MUST BE BROUGHT WITHIN TWO YEARS FROM 

THE TIME THAT A CAUSE OF ACTION HAS ACCRUED. THIS PARAGRAPH (c) SHALL IN 

NO WAY BE CONSTRUED TO LIMIT A PARTY’S OBLIGATION TO ARBITRATE ITS CLAIM 

OR TO CREATE A CAUSE OF ACTION AND SHALL NOT AUTHORIZE AN ACTION THAT 

WOULD OTHERWISE BE PROHIBITED BY CBOE DIGITAL EXCHANGE RULES. IF FOR 

ANY REASON, A COURT OF COMPETENT JURISDICTION FINDS THAT A DISPUTE IS 

NOT ARBITRABLE, SUCH DISPUTE MAY ONLY BE LITIGATED IN THE COUNTY OF 

COOK IN THE STATE OF ILLINOIS AND WILL BE GOVERNED BY THE LAWS OF THE 

STATE OF ILLINOIS WITHOUT REGARD TO ANY PROVISIONS OF ILLINOIS LAW THAT 

WOULD APPLY THE SUBSTANTIVE LAW OF A DIFFERENT JURISDICTION.

(e) THE DISCLAIMING PARTY OR DISCLAIMING PARTIES, MAY, IN ITS SOLE DISCRETION, 

ASSUME RESPONSIBILITY FOR DIRECT, OUT-OF-POCKET LOSSES DIRECTLY 

CAUSED BY THE GROSS NEGLIGENCE OF CBOE DIGITAL MARKET OPERATIONS OR 

OTHER EXCHANGE STAFF AND/OR ORDER STATUS ERRORS PROVIDED BY CBOE 

DIGITAL MARKET OPERATIONSTHE EXCHANGE OR AN EXCHANGE SYSTEM, 

EQUIPMENT, SERVICE OR FACILITY. NOTWITHSTANDING THE ABOVE, i) THE 

EXCHANGE’S TOTAL COMBINED AGGREGATE OBLIGATIONS SHALL NOT EXCEED 

$1,000 FOR ANY SINGLE CLAIM, AND $10,000 FOR ALL CLAIMS. ANY DISPUTED CLAIM 

PURSUANT TO THIS PARAGRAPH (d) MUST BE ARBITRATED PURSUANT TO 

CHAPTER 8.

(f) IN NO EVENT SHALL THE DISCLAIMING PARTY OR DISCLAIMING PARTIES TOTAL 

COMBINED AGGREGATE LIABILITY FOR ALL CLAIMS ARISING OUT OF ANY FAILURES, 

MALFUNCTIONS, FAULTS IN DELIVERY, DELAYS, OMISSIONS, SUSPENSIONS, 

INACCURACIES, INTERRUPTIONS, TERMINATIONS, OR ANY OTHER CAUSES, IN 

CONNECTION WITH THE FURNISHING, PERFORMANCE, OPERATION, MAINTENANCE, 

USE OF OR INABILITY TO USE ALL OR ANY PART OF ANY OF THE EXCHANGE’S 

SYSTEMS OR SERVICES, OR SERVICES, EQUIPMENT OR FACILITIES USED TO 

SUPPORT SUCH SYSTEMS AND SERVICES, OR THE NEGLIGENCE OF EXCHANGE 

STAFF EXCEED $50,000 IN ANY GIVEN CALENDAR YEAR. 
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IF THE NUMBER OF ALLOWED CLAIMS ARISING OUT OF ANY FAILURES OR 

MALFUNCTIONS ON A SINGLE DAY OR SINGLE MONTH CANNOT BE FULLY SATISFIED 

BECAUSE OF THE ABOVE DOLLAR LIMITATIONS, ALL SUCH CLAIMS SHALL BE 

LIMITED TO A PRO RATA SHARE OF THE MAXIMUM AMOUNT FOR THE RESPECTIVE 

PERIOD.

(g) NOTWITHSTANDING ANY OF THE FOREGOING PROVISIONS, THIS RULE 536 WILL IN 

NO WAY LIMIT THE LIABILITY OF ANY PERSON ARISING FROM ANY VIOLATION BY 

SUCH PERSON OF THE CEA OR THE COMMISSION REGULATIONS THEREUNDER.

RULE 537. Cboe Digital Market OperationsOrder Status

(a) Customer Support.

(1) EMO provides the Cboe Digital Trading System customer support and problem 

management only to Clearing Firms, Participants and Authorized Traders. 

(2) In order to be eligible for EMO support, such Persons must be identified by a Participant 

as an authorized contact with EMO (“Authorized Contacts”). EMO provides customer 

support via a specified telephone number and during specified hours. 

(3) EMO employees may not always be available to assist Authorized Contacts. 

(4) Persons other than Authorized Contacts must contact their Clearing Firms or the 

Participant with whom they’re affiliated to make support requests.

(b) EMO Communications. 

(1) As provided in Rule 536, the Exchange shall not be liable for any loss resulting from any 

inability to communicate with EMO. 

(2) The liability of the Exchange for the negligent acts of EMO staff shall be subject to the 

limitations and conditions of Rule 536. 

(3) In no event, however, shall the Exchange be liable for the negligence of EMO if the Person 

claiming to have suffered a loss could have secured the support it sought from EMO 

through its own administrative terminal, its Clearing Firm’s terminal or an Independent 

Software Vendor’s (“ISV”) terminal. 

(4) For purposes of this rule, a Person is deemed able to take action through its own

administrative terminal, a Clearing Firm’s terminal or an ISV’s terminal unless such 

terminal was inoperative or such terminal service was interrupted at the time EMO took 

action.

(c) Order Status

(a1) A Person who believes he has received an incorrect Order status or does not receive an 

appropriate status shall immediately notify the ExchangeEMO. Additionally, such Person shall 

take any necessary and appropriate market action to mitigate any potential losses arising from 

the incorrect Order status or lack of appropriate Order status immediately after the Person knew 

or should have known that the Order status information was incorrect or should have been 

received. Any liability of the Exchange for incorrect Order status shall be subject to the limitations 

and conditions of Rule 536.
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(b2) Notwithstanding the above, the Exchange shall not be liable for losses related to incorrect 

Order status information if the Exchange provides prior notification that an Exchange system, 

service or facility may produce such incorrect information and also provides notification of a 

means to obtain correct Order status information from such system, service or facility. In the 

event that EMO the Exchange and an Exchange system, service or facility provide conflicting 

information relating to an Order status, a Customer may only reasonably rely on the information 

received from EMOthe Exchange. Any liability of the Exchange shall be subject to the liability 

caps and conditions of Rule 536.

RULE 538. The Cboe Digital Trading System Algorithms

(a) The Cboe Digital Trading System Central Limit Order Book (“CLOB”) uses a Price/Time 

algorithm (also known as the First In, First Out or FIFO method). Under the Price/Time 

algorithm, orders will be matched with the earliest bid or offer to arrive in the Cboe Digital

Trading System at the best price. If there are multiple bids and offers that have the same 

price, the earliest to arrive in the Cboe Digital Trading System will be the bid or offer to which 

the order is matched. If the order exceeds the quantity of the bid or offer, the Participant Order 

will be filled at the next, best bid or offer for their Oorder up to their its limit order price.

(b) Additionally, the Exchange may employ an auction methodology in the pre-open period, 

during which the order book is not in a tradable state, but Trading Privilege Holders

Participants can submit orders (including bids and offers which would cross under normal 

market conditions). Upon opening, an algorithm calculates the price at which the highest 

volume of resting bids and offers can be matched, and matches them at that price.

(c) Additional information on the operation of the matching algorithms is available at www.

cboedigital.com

RULE 539. Trade Cancellations and Price Adjustments

(a) Cboe Digital Exchange Market Operations Authority Regarding Trade Cancellations and Price 

Adjustments

(1) The ExchangeMO has authority to adjust trade prices or cancel (bust) trades when such 

action is necessary to mitigate market disrupting events caused by the improper or 

erroneous use of the Cboe Digital Trading System or by system defects. 

(2) Notwithstanding any other provisions of this Rule, the ExchangeMO may adjust trade 

prices or bust any trade if the ExchangeMO determines that allowing the trade to stand as 

executed may have a material, adverse effect on the integrity of the market. 

(3) All decisions of the ExchangeMO shall be final.

(b) Review of Trades

(1) The ExchangeMO may determine to review a trade based on its independent analysis of 

market activity or upon request for review by a user of the Cboe Digital Trading System. 

A request for review must be made within 15 minutes of the execution of the trade. 
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(2) EMO The Exchange shall determine whether or not a trade will be subject to review. In 

the absence of a timely request for review, during volatile market conditions, upon the 

release of significant news, or in any other circumstance in which EMO the Exchange 

deems it to be appropriate, the ExchangeEMO may determine, in its sole discretion, that 

a trade shall not be subject to review. 

(3) Upon deciding to review a trade, the ExchangeMO will promptly issue an alert to all 

Trading Privilege Holders Participants via the Cboe Digital Trading System or electronic 

mail indicating that the trade is under review.

(c) Price Adjustments and Cancellations

(1) In reviewing a trade, the ExchangeMO will first determine whether the trade price is within 

the No Bust Range for futures or within the Bid/Ask Reasonability Allowance for options, 

as described in Rule 539subparagraph(g). The Bid/Ask Reasonability Allowance for an 

option is the maximum width of the bid/ask range which will be considered reasonable for 

use in applying the parameters necessary to establish the No Bust Range for the option. 

(2) In applying the No Bust Range, EMO the Exchange shall determine the fair value market 

price for that contract at the time the trade under review occurred. the Exchange EMO 

may consider any relevant information, including, but not limited to, the last trade price in 

the contract or a better bid or offer price on the Cboe Digital Trading System, a more 

recent price for a different maturity date, the price of the same or related contract 

established in another venue or another market, the market conditions at the time of the 

trade, and the theoretical value of an option based on the most recent implied volatility. 

(3) Trade Price Inside the No Bust Range.

If the Exchange EMO determines that the price of the trade is inside the No Bust Range, 

the Exchange EMO will issue an alert indicating that the trade shall stand. 

(4) Trade Price Outside the No Bust Range 

i. Futures Contracts 

If the Exchange EMO determines that a trade price is outside the No Bust Range for 

a futures contract, the trade price shall be adjusted to a price that equals the fair value 

market price for that contract at the time the trade under review occurred, plus or minus 

the No Bust Range. In the event there are multiple parties, prices and/or contracts 

involved in the transactions at issue, the Exchange EMO has the authority, but not the 

obligation, to bust rather than price adjust such transactions. the Exchange EMO will 

issue an alert regarding its decision. 

ii. Option Contracts 

If the Exchange EMO determines that a trade price is outside the applicable No Bust 

Range for an option contract, the trade price shall be adjusted. In the case of a buy 

(sell) error, the price will be adjusted to the determined ask (bid) price set forth in the 

Bid/Ask Reasonability Allowance in Section G plus (minus) the No Bust Range. In the 

event there are multiple parties, prices and/or contracts involved in the transactions at 

issue, the Exchange EMO has the authority, but not the obligation, to bust rather than 

price adjust such transactions. the Exchange EMO will issue an alert regarding its 

decision. 
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iii. Busted trade prices and any prices that have been adjusted shall be cancelled in the 

Exchange’s official record of time and sales. Trades that are price adjusted shall be 

inserted in the time and sales record at the adjusted trade price.

(d) Alternative Resolution by Agreement of Parties

(1) With the approval of the ExchangeEMO, parties to a trade that is price adjusted may 

instead mutually agree to cancel the trade. 

(2) With the approval of the ExchangeEMO, parties to a trade that is busted may instead 

mutually agree to price adjust the trade to a price consistent with the adjustment provisions 

of subparagraph Rule 539(c). 

(3) Subject to subparagraphsection (d)(1) and (d)(2), parties to a trade that is cancelled or 

price adjusted may mutually agree to a cash adjustment provided that such adjustments 

are reported to the Exchange EMO and the parties maintain a record of the adjustment.

(4) An executed trade may not be reversed via transfer except where such trade is determined 

by the Exchange EMO to be outside of the No Bust Range but not reported timely, subject 

to agreement of the parties, and approval of the ExchangeEMO. Any such transfer must 

occur at the original trade price and quantity; however, the parties may mutually agree to 

a cash adjustment. 

(e) Liability for Losses Resulting from Price Adjustments or Cancellations

(1) A party entering an order that results in a price adjustment or trade bust shall be 

responsible for demonstrated claims of realized losses incurred by persons whose trade 

prices were adjusted or busted provided, however, that a claimant shall not be entitled to 

compensation for losses incurred as a result of the claimant’s failure to take reasonable 

actions to mitigate the loss. 

(2) A claim for a loss pursuant to this section must be submitted to the Exchange on an 

Exchange claim form within one business day of the event giving rise to the claim. The 

Exchange will reject any claim that is not filed in a timely manner and such decisions shall 

be final. Eligible claims shall be forwarded by the Exchange to the party responsible for 

the order(s) that resulted in a trade bust or a price adjustment and to the Clearing Firm 

Member through which the trade was placed. Such party, or the Clearing Firm Member 

on behalf of the party, shall, within ten business days of receipt of the claim, admit or deny 

responsibility in whole or in part. Failure to respond to the claim within ten business days 

shall be considered a denial of liability. 

(3) To the extent that liability is admitted, payment shall be made within ten business days. 

Unless otherwise agreed upon in writing by the parties, failure to make the payment within 

ten business days shall be considered a denial of liability for purposes of this rule. A copy 

of any such written agreement must be provided to the Exchange. 

(4) To the extent that liability is denied, the party making the claim may submit the claim for 

arbitration pursuant to Chapter 8 of the Rules. Such claims must be submitted to the 

Exchange EMO within ten business days of the date the party was issued notification that 

liability was denied.

(f) Schedule of Administrative Fees
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(1) When the Exchange EMO busts or price adjusts a trade, the party responsible for entering 

the order into the Cboe Digital Trading System that gave rise to the trade bust or price 

adjustment shall pay an administrative fee to the Exchange in the amount of $500 for each 

such occurrence. 

(g) Cboe Digital Exchange No Bust Ranges

Futures Contract No Bust Range

Bitcoin Futures

The price equivalent of one percentage point 

(1%) from the ExchangeMO’s determination 

of fair market value.

RULE 540. Risk Controls

(a) Exchange shall implement, and make available to Clearing Members and Trading Privilege 

Holders, risk control mechanisms in a form and manner prescribed and provided by the 

Exchange.

(b) Risk control mechanisms may be set by FIRM code, Contract and/or match capacity 

allocation depending upon the applicable risk control. Risk control settings applicable to a 

Contract apply to all expirations or series, as applicable. 

(c) The risk control mechanisms made available to Clearing Members shall enable a Clearing 

Member to set risk control parameters for Trading Privilege Holders in relation to Orders 

submitted to the Cboe Digital Trading System with FIRM codes that are linked to a clearing 

number for that Clearing Member.
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CHAPTER 6: PRIVATELY NEGOTIATED TRANSACTIONS

RULE 601. Block Trades

(a) The Exchange shall designate the products in which Bblock Ttrades shall be permitted and 

determine the minimum quantity thresholds for such transactions. If and to the extent permitted 

by the specifications governing the applicable Contract, transactions that satisfy a designated 

minimum size requirement may be entered into off of the Exchange in that Contract, at prices 

mutually agreed, provided all of the requirements and conditions set forth in this Rule 601 and 

Rule 603 are satisfied (“Block Trade”).

(b) The following requirements shall govern block trades: 

(1) Each buy or sell order underlying a Block Trade must (A) state explicitly that it is to be, 

or may be, executed by means of a Block Trade; and (B) aA block trade must be for a 

quantity that is at or in excess of the applicable minimum threshold as specified in the 

relevant Contract specifications. 

(2) Orders may not be aggregated in order to achieve the minimum transaction size, 

except by: those entities described in Sections(10) and (11) below and as provided in 

Rule 601(b)(2). (A) a commodity trading advisor ("CTA") commodity trading advisor 

registered under the CEA; (B) an investment adviser registered as such with the 

Securities and Exchange Commission that is exempt from regulation under the CEA and 

Commission Regulations thereunder; and (C) any Person authorized to perform 

functions similar or equivalent to those of a commodity trading advisor in any jurisdiction 

outside the United States of America, in each case with total assets under management 

exceeding US$25 million, may satisfy this requirement by aggregating orders for 

different accounts that are under management or control by such commodity trading 

advisor, investment adviser, or other Person.

(32) Multi-legged block trades transactions may be executed as block trades, provided 

that the sum of the legs of the block trade meets the mMinimum Block sSize requirement 

for the Contract with the highest Minimum Block Size among the legs.

(43) Each Person to a block trade must be an Eligible Contract Participant (as such term 

is defined in Section 1a(18) of the CEA); provided that, if the Block Trade is entered into 

on behalf of Customers by (A) a commodity trading advisor registered under the Act, (B) 

an investment adviser registered as such with the Securities and Exchange Commission 

that is exempt from regulation under the Act and Commission Regulations thereunder or 

(C) any Person authorized to perform functions similar or equivalent to those of a 

commodity trading advisor in any jurisdiction outside the United States of America, in each 

case with total assets under management exceeding US$25 million, then only such 

commodity trading advisor or investment adviser, as the case may be, but not the 

individual Customers, need to so qualify. 
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(5) Only Trading Privilege Holders can be the executing parties to a Block Trade reported 

to the Exchange.

(A) In order for a party that satisfies the requirements of paragraph (a)(2) above 

and is not a Trading Privilege Holder to effectuate a Block Trade, that party must 

utilize a Trading Privilege Holder eligible to act in an agency capacity for that party 

to execute the Block Trade on behalf of that party in an agency capacity

(4B) A Trading Privilege Holder that acts as a broker for a Customer which satisfies 

the requirements of paragraph (a)(2) above may authorize the Customer to directly 

negotiate Block Trades for which the Trading Privilege Holder is the executing 

party in its agency capacity as broker for that Customer, provided that the other 

requirements of this Rule 601 are satisfied. broker for a Person shall not execute 

any order by means of a block trade for a Person unless such Person has specified 

that the order be executed as a block trade.

(c5) The price at which a block trade is executed must be fair and reasonable in light of:

(Ai) the size of the block trade;,

(Bii) the prices and sizes, at the time of the agreement to the Block Trade, of Orders in the 

CLOB for the same Contract, other transactions in the same contract on other marketsat 

the relevant time including without limitation the underlying cash market or related futures 

markets;,

(Biii) the prices and sizes, at the time of the agreement to the Block Trade, of transactions 

in the same Contract, the same contract oin other relevant markets, and similar or related 

contracts on the Exchange and other markets, including without limitation the underlying 

cash market or related futures markets, at the relevant time;, and

(Civ) the circumstances of the markets or the Participants parties to the block trade; and

(D) whether the Block Trade is executed as a multi-legged Order. 

The guidelines in this paragraph shall apply in determining whether the execution price of 

a Block Trade is “fair and reasonable.” These guidelines are general and may not be 

applicable in each instance. Whether the execution price of a Block Trade is “fair and 

reasonable” depends upon the particular facts and circumstances. In the event the 

quantity present in the Order book is greater or equal to the quantity needed to fill an Order 

of the size of the Block Trade, it would generally be expected 106 that the Block Trade 

price would be better than the price present in the Order book. In the event the quantity 

present in the Order book is less than the quantity needed to fill an Order of the size of 

the Block Trade, it would generally be expected that the Block Trade price would be 

relatively close to the price present in the Order book and that the amount of the differential 

between the two prices would be smaller to the extent that the differential between the 

quantity present in the Order book and the Block Trade quantity is smaller.

(d) Block Trade Records.

(1) Each Trading Privilege Holder that acts as agent for a Block Trade shall record the 

following details on its order ticket: (i) the Contract (including the expiration); (ii) the 
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number of contracts traded; (iii) the price of execution or premium; (iv) the time of 

execution (i.e., the time at which the parties agreed to the Block Trade); (v) the 

arrangement time, if any (i.e., the time at which the parties agreed to enter into the Block 

Trade at a later time); (vi) the identity of the counterparty; (vii) that the transaction is a 

Block Trade; (viii) if applicable, the account number of the Customer for which the Block 

Trade was executed; and (ix) if applicable, the expiration, strike price and type of option 

(put or call) in the case of an option.

(2) Every Trading Privilege Holder handling, executing, clearing or carrying Block Trades 

or positions shall identify and mark as such by appropriate symbol or designation all Block 

Trades or positions and all orders or records pertaining thereto.

(3) Each Trading Privilege Holder involved in any Block Trade shall either maintain records 

evidencing compliance with the criteria set forth in this Rule 601 or be able to obtain such 

records from its Customer involved in the Block Trade. Upon request by the Exchange 

and within the time frame designated by the Exchange, any such Trading Privilege Holder 

shall produce satisfactory evidence, including any required order ticket, that the Block 

Trade meets the requirements set forth in this Rule 601. Each Clearing Member carrying 

a Customer account for which a Block Trade is executed shall be responsible for obtaining 

and submitting to the Exchange in a timely and complete manner the records of its 

Customer regarding the Block Trade.

(e) A Trading Privilege Holder may execute an Order placed for a nondiscretionary Customer 

account by means of a Block Trade only if the Customer has previously consented thereto. This 

consent may be obtained on either a trade-by-trade basis or for all such Orders. 

(f) Block Trades between affiliated parties are permitted only if the following three conditions are 

satisfied: 

(1) the Block Trade is priced on a competitive market price, either by falling within the 

contemporaneous bid-ask spread on the Order book or calculated based on a 

contemporaneous market price in a related cash market;

(2) each party to the Block Trade has a separate and independent legal bona fide business 

purpose for engaging in the Block Trade; and

(3) each party’s decision to enter into the Block Trade is made by a separate and 

independent decision-maker. 

An affiliated party for this purpose is a party that directly or indirectly through one or more Persons 

controls, is controlled by or is under common control with another party. 

(g) Parties involved in the solicitation or negotiation of a Block Trade may not disclose the details 

of those communications to any other party for any purpose other than to facilitate the execution 

of the Block Trade. Parties privy to non-public information regarding a consummated Block Trade 

may not disclose such information to any other party prior to the public report of the Block Trade 
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by the Exchange. A broker negotiating a Block Trade on behalf of a Customer may disclose the 

identity of the Customer to potential counterparties, including the counterparty with which the 

Block Trade is consummated, only with the permission of the Customer. 

(1) Parties to a potential Block Trade may engage in pre-hedging or anticipatory hedging 

of the position that they believe in good faith will result from consummation of the Block 

Trade, except for an intermediary that takes the opposite side of its own Customer order. 

In such instances, prior to the consummation of the Block Trade, the intermediary is 

prohibited from offsetting the position established by the Block Trade in any account which 

is owned or controlled by the intermediary, in which an ownership interest is held by the 

intermediary, or which is a proprietary account of the employer of the intermediary. The 

intermediary may enter into transactions to offset the position only after the Block Trade 

has been consummated.

(2) The Exchange may proceed with an enforcement action when the facts and 

circumstances of pre-hedging suggest deceptive or manipulative conduct by any of the 

involved parties, including when an intermediary handling a customer order acts against 

its customer’s best interests. The guidance in this paragraph (m) applies only in the 

context of pre-hedging of Block Trades. This guidance does not affect any requirement 

under the CEA or CFTC Regulation.

(3) Parties solicited to provide a two-sided Block Trade market are not deemed to be in 

possession of non-public information provided that side of market is not disclosed in the 

context of the solicitation. 

(h) It shall be a violation of this Rule for a Person to engage in the front running of a Block Trade 

when acting on material non-public information regarding an impending transaction by another 

Person, acting on non-public information obtained through a confidential employee/employer 

relationship, broker/customer relationship or in breach of a pre-existing duty.

(6) Block trades shall not set off conditional orders (e.g., Stop Orders and MIT Orders) or 

otherwise affect orders in the regular market. 

(7) One of the Persons or the broker of one of the Persons to the block trade must ensure that 

each block trade is reported to the Exchange within the time limit set forth below:

(a) All block trades must be executed and reported to the Exchange on the same trade date; and

(b) All block trades executed during OTH must be reported within fifteen minutes after the opening 

of the CLOB;

(c) All block trades executed during RTH must be submitted within fifteen (15) minutes, or prior to 

the end of the trade date, whichever is sooner

The Exchange shall promptly publish such information separately from the reports of 

transactions in the regular market.

(8) Reporting Method and Information 
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a. Block trades must be reported to the Exchange in accordance with an approved 

reporting method.

b. The block trade report must include the information related to the block trade 

specified in the Exchange’s approved reporting method, including: the 

identification of parties to the block trade; product details; trade quantity, price, and 

time; and, account number or Clearing Firm, if applicable.

(9) Clearing Firms, Participants, Participant Firms, and Broker Firms involved in the execution of 

block trades must maintain a record of the transaction in accordance with Rule 401. 

(2) A commodity trading advisor ("CTA") registered or exempt from registration under the 

Act, including, without limitation, any investment advisor registered or exempt from 

registration under the Investment Advisers Act of 1940, or principal thereof, shall be

the applicable entity for purposes of Sections (1), (3), (4) and (5), provided such 

advisors have total assets under management exceeding $25 million and the block 

trade is suitable for the customers of such advisors. 

(3) A foreign Person performing a similar role or function to a CTA or investment advisor 

as described in Section 10, or principal thereof, and subject as such to foreign 

regulation, shall be the applicable entity for purposes of Sections (1), (3), (4) and (5), 

provided such Persons have total assets under management exceeding $25 million 

and the block trade is suitable for the customers of such Persons.

(b) Products designated for Block Trades.

The following products are designated for block trades:

Contract Minimum Block Size Minimum Price Increment

Bitcoin Futures (BTC) 10 contracts $0.01 per Bitcoin ($0.0010 

per contract)

Ether Futures (ETH) 50 Contracts $0.01 per Ether ($0.01 per 

contract)

Ether/Bitcoin (ETBTC) 50 Contracts 0.00001 Bitcoin per Ether 

(0.00001 per contract)

RULE 602. Exchange of Derivatives for Related Positions

(a) The following transactions shall be permitted by arrangement between parties in accordance 

with the requirements of this Rule:

(1) Exchange for Risk (“EFR”). A privately negotiated and simultaneous exchange of an

Exchange futures position in a Contract for a corresponding OTC swap or other OTC 

instrument.
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(2) Exchange of Options for Options (“EOO”). A privately negotiated and simultaneous 

exchange of an Exchange option position in a Contract for a corresponding OTC option 

position or other OTC instrument with similar characteristics.

(3) Exchange for Physical (“EFP”). A privately negotiated and simultaneous exchange of 

an Exchange futures position in a Contract for a corresponding cash position.

(4) For purposes of this rule, an EFR, EOO, EFP shall be referred to as an Exchange of 

Derivatives for Related Position (“EDRP”).

(b) Nature of an EDRP.

(1) If and to the extent permitted by the rules governing the applicable Contract, a bona fide EDRP 

may be entered into off of the Exchange with respect to a Contract at a price mutually agreed 

upon by the parties to such transaction. An EDRP transaction must conform to the applicable 

requirements set forth in this Rule 602. Each EDRP must contain the following three essential 

elements: 

(A) a transaction in a Contract that is listed on the Exchange and a transaction in a related 

position or an option on the related position (known as the “Related Position”); 

(B) an actual transfer of ownership, which must include (i) an ability to perform the EDRP 

and ii) a transfer of title of the Contract and Related Position upon consummation of the 

exchange; and 

(C) separate parties, such that the accounts involved on each side of the EDRP have 

different beneficial ownership or are under separate control, provided that separate profit 

centers of a futures commission merchant operating under separate control are deemed 

to be separate parties for purposes of this Rule 602.

(c) Parties to an EDRP.

(1) An EDRP consists of two discrete but related simultaneous transactions. One party to 

the EDRP must be the buyer of (or the holder of the long market exposure associated 

with) the related position and the seller of the corresponding Contract. The other party to 

the EDRP must be the seller of (or the holder of the short market exposure associated 

with) the related position and the buyer of the corresponding Contract. (2) Each party to 

an EDRP transaction must satisfy any applicable Commission requirements regarding 

eligibility to participate in the transaction. Further, the quantity of the Related Position 

traded in an EDRP must correlate to the quantity represented by the Contract portion of 

the transaction.However, a Participant may facilitate, as principal, the related position on 

behalf of a Customer, provided that the Participant can demonstrate that the related 

position was passed through to the Customer who received the Exchange Contract

position as part of the EDRP.
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(2) Only Trading Privilege Holders can be the executing parties to an EDRP transaction 

reported to the Exchange. In order for a party that satisfies the requirements of the 

preceding paragraph and is not a Trading Privilege Holder to effectuate an EDRP

transaction, that party must utilize a Trading Privilege Holder eligible to act in an agency 

capacity for that party to execute the EDRP transaction on behalf of that party in an agency 

capacity. A Trading Privilege Holder that acts as a broker for a Customer which satisfies 

the requirements of the preceding paragraph may authorize the Customer to directly 

negotiate EDRP transactions for which the Trading Privilege Holder is the executing party 

in its agency capacity as broker for that Customer, provided that the other requirements 

of this Rule 602 are satisfied.

(dc) Related Positions. The related position (in the cash commodity) must be a derivative or 

related product of such Contract that has a reasonable degree of price correlation and quantitative 

equivalence to the Contract.

(ed) Quantity. The quantity covered by the related position must be approximately equivalent to 

the quantity covered by the Exchange Contracts.

(fe) Prices and Price Increments. An EDRP transaction may be entered into in accordance with 

the applicable price increments or option premium increments set forth in the Rrules governing 

the pertinent Contracts, at such prices as are mutually agreed upon by the two parties to the 

transaction. 

(f) Date and Time of Transaction The date and the time of execution of all EDRP transactions 

must be denoted on the record of the transaction required to be created pursuant to Rule 401. 

(g) Reserved The execution of an EDRP transaction may not be contingent upon the execution 

of another EDRP or related position transaction between the parties where the transactions result 

in the offset of the related position without the incurrence of market risk that is material in the 

context of the related position transactions.

(h) Identification and Submission to the Clearing HouseEach EDRP transaction shall be 

designated as such and shall be cleared through the Clearing House. Each such transaction shall 

be submitted to the Clearing House within the time period and in the manner specified by the 

Exchange. Clearing Members are responsible for exercising due diligence as to the bona fide 

nature of EDRP transactions submitted on behalf of Customers. 

(i) EDRP RecordsDocumentation.

(1) Each Trading Privilege Holder that acts as agent for an EDRP shall record the following 

details with respect to the Contract leg of the EDRP on its order ticket: (i) the Contract 

(including the expiration); (ii) the number of contracts traded; (iii) the price of execution or 

premium; (iv) the time of execution (i.e., the time at which the parties agreed to EDRP); 

(v) the arrangement time, if any (i.e., the time at which the parties agreed to enter into the 

transaction at a later time); (vi) the identity of the counterparty; (vii) that the transaction is 

an EDRP; (viii) the account number of the Customer for which the EDRP was executed; 
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and (ix) the identity, quantity and price or premium of the Related Position (including the 

expiration, strike price, type of option (put or call) and delta in the case of an option). Every 

Trading Privilege Holder handling, executing, clearing or carrying EDRP transactions or 

positions shall identify and mark as such by appropriate symbol or designation all EDRP 

transactions or positions and all orders and records pertaining thereto.

(2) Each Trading Privilege Holder involved in any EDRP transaction shall either maintain 

records evidencing compliance with the criteria set forth in this Rule 602 or be able to 

obtain such records from its Customer involved in the EDRP transaction. Such records 

shall include, without limitation, those Parties to any EDRP transaction must maintain all 

documents relevant to the Exchange Contract and the cash, OTC swap, OTC option, or 

other OTC derivative, including all documents customarily generated in accordance with 

relevant market practices and any documents reflecting payment and transfer of title. Any 

such documents must be provided to the Exchange upon request, and it shall be the 

responsibility of the carrying Clearing Member to provide such requested documentation 

on a timely basis. 

(j) Account Requirements. The accounts involved in the execution of an EDRP transaction must 

be:

(1) independently controlled accounts with different beneficial ownership; or 

(2) independently controlled accounts of separate legal entities with the same beneficial 

ownership, provided that the account controllers operate in separate business units; or 

(3) independently controlled accounts within the same legal entity, provided that the 

account controllers operate in separate business units; or 

(4) commonly controlled accounts of separate legal entities, provided that the separate 

legal entities have different beneficial ownership. 

(k) Large Trader Requirements for EDRP Transactions. Each Clearing Member, Trading Privilege 

Holder, omnibus account and foreign broker submitting large trader positions in accordance with 

Rule 532 must submit for each reportable account the EDRP volume bought and sold in the 

reportable instrument, by contract month, and additionally for EOOs, by put and call strike. The 

information must be included in the daily Large Trader report to the Exchange.

RULE 603. Timing and Reporting Recordkeeping Requirements for Privately 

Negotiated Trades

All Orders executed in accordance with Rule 601 and 602, unless otherwise exempted by Rule, 

are subject to the following recordation requirements.

(a) At the time of execution, every Order received from a Customer must be in the form of a written 

or electronic record and include an electronic timestamp reflecting the date and time such Order 

was received and must identify the specific account(s) for which the Order was placed. 
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(b)Such record shall also include an electronic timestamp reflecting the date and time such Order 

was executed or cancelled.

(a) Timing. The timing of a Block Trade or an EDRP (each a “Privately Negotiated Trade”) must 

satisfy all of the following three requirements:

(1) The agreement to a Privately Negotiated Trade may only occur during the Trading 

Hours for that Contract, when that Contract is not halted or suspended (“Permissible 

Agreement Period”). An agreement to a Privately Negotiated Transaction includes, without 

limitation, agreement to the quantity and actual price or premium of the Block Trade or the 

Contract leg of the EDRP transaction, as applicable.

(2) Unless otherwise specified in the relevant Contract specifications, a Block Trade must 

be fully reported to the Exchange without delay and by no later than ten minutes after the 

transaction is agreed upon (“Block Trade Reporting Deadline”) and an EDRP transaction 

must be fully reported to the Exchange without delay and by no later than thirty minutes 

after the transaction is agreed upon (“EDRP Reporting Deadline”). The Reporting 

Deadlines are measured from the time the transaction is agreed upon to the time that the 

full report of the transaction is received by the Cboe Digital Trading System matching 

engine. 

(3) A Privately Negotiated Trade must be fully reported to the Exchange during the Trading 

Hours, or a queuing period, for that Contract, when that Contract is not suspended 

(“Permissible Reporting Period”).

Accordingly, in order to satisfy the requirements of this subparagraph (d), the time periods in 

which a Privately Negotiated Trade may occur are limited to those time periods in which: (i) the 

transaction is agreed to within a Permissible Agreement Period; and (ii) the transaction is able to 

be fully reported to the Exchange within a Permissible Reporting Period by no later than the 

applicable Reporting Deadline. 

Privately Negotiated Trades in an expiring Contract on the last trading day for that Contract may 

not be agreed to or reported to the Exchange after the termination of Trading Hours in the expiring 

Contract on that trading day.

(b) Each party to a Privately Negotiated Trade shall comply with all applicable Rules of the 

Exchange other than those which by their terms only apply to trading through the Cboe Digital 

Trading System on the CLOB. Trading Privilege Holders that execute or clear Privately Negotiated 

Trades on behalf of Customers are responsible for ensuring that their Customers that engage in 

Privately Negotiated Trades in Contracts traded on the Exchange are fully informed regarding 

Exchange requirements relating to Privately Negotiated Trades. Each Privately Negotiated Trade 

shall be designated as a Block Trade or EDRP, as applicable, in Exchange Market Data and be 

cleared through the Clearing House as if it were a transaction executed through the Cboe Digital 

Trading System on the CLOB. 
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(c) Authorized Reporter. Each Trading Privilege Holder executing a Privately Negotiated Trade 

must have at least one designated individual that is pre-authorized by a Clearing Member to report 

Block Trades and EDRPs on behalf of the Trading Privilege Holder (“Authorized Reporter”). To 

the extent required by Applicable Law, an Authorized Reporter must be registered or otherwise 

permitted by the appropriate regulatory body or bodies to act in the capacity of an Authorized 

Reporter and to conduct related activities. Only an Authorized Reporter of a Trading Privilege 

Holder will be allowed to report a Privately Negotiated Trade on behalf of that Trading Privilege 

Holder. A Clearing Member that authorizes an Authorized Reporter to report Privately Negotiated 

Trades on behalf of a Trading Privilege Holder accepts responsibility for all such transactions 

reported to the Exchange by that Authorized Reporter on behalf of the Trading Privilege Holder. 

Any designation of an Authorized Reporter or revocation of a previous designation of an 

Authorized Reporter, including any termination of the guarantee provided for in the preceding 

sentence, must be made in a form and manner prescribed by the Exchange and shall become 

effective as soon as the Exchange is able to process the designation or revocation. Both the 

parties to and Authorized Reporters for a Privately Negotiated Trade are obligated to comply with 

the requirements set forth in Rule 601 and Rule 602, as applicable, and Rule 603, and any of 

these parties or Authorized Reporters may be held responsible by the Exchange for 

noncompliance with those requirements.

(d) Reporting.

(1) Each party to a Privately Negotiated Trade is obligated to have an Authorized Reporter 

notify the Exchange of the terms of the Privately Negotiated Trade after the applicable 

transaction is agreed upon. This notification must be made in accordance with 

subparagraph (d)(3) below within a Permissible Reporting Period by no later than the 

applicable Reporting Deadline. All Privately Negotiated Trades will be submitted for 

clearing on the Business Day during which the transaction is fully reported to the 

Exchange.

(2) The notification to the Exchange of a Privately Negotiated Trade shall include (i) 

whether the Block Trade or the component of the EDRP transaction in a Contract is a 

single leg transaction or a transaction in a multi-leg transaction; (ii) the Contract identifier 

(or product and contract expiration for a future or product, expiration, strike price and type 

of option (put or call) in the case of an option), price (or premium for an option) and quantity 

of the Block Trade or the Contract leg of an EDRP, as applicable, and whether the Block 

Trade or the Contract leg of an EDRP, as applicable, is buy or sell; (iii) the time of 

execution (i.e., the time at which the parties agreed to the transaction); (iv) the 

arrangement time, if any (i.e., the time at which the parties agreed to enter into the 

transaction at a later time); (v) Order Entry Operator ID; (vi) FIRM code (i.e., Clearing 

FIRM code and Trading Privilege Holder FIRM code); (vii) account; (viii) Customer Type 

Indicator code; and (ix) any other information required by the Exchange.

(3) Authorized Reporters shall provide notification to the Exchange of Privately Negotiated 

Trades by reporting them to the Cboe Digital Trading System in a form and manner 

prescribed by the Exchange. The Cboe Digital System includes a mechanism, in a form 
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and manner provided by the Exchange, for Authorized Reporters to enter required 

information regarding a Privately Negotiated Trade as further described below.

(A) If the parties to a Privately Negotiated Trade are each utilizing a different 

Authorized Reporter to notify the Exchange of the terms of the transaction:

(i) The Authorized Reporter that is the initiator of the notification of the 

transaction is able to enter information into the Cboe Digital Trading

System regarding the transaction.

(ii) The Authorized Reporter for the contra side of the transaction is able to 

accept within the Cboe Digital Trading System the notification to the 

Exchange of the transaction as entered by the initiating Authorized 

Reporter and to enter contra side information for the transaction into the 

Cboe Digital Trading System.

(iii) The Authorized Reporter that is the initiator of the notification of the 

transaction may not cancel or revise the notification after it has been 

entered into the Cboe Digital Trading System while it awaits acceptance by 

the Authorized Reporter for the contra side of the transaction.

(iv) The Authorized Reporter that is the initiator of the notification of the 

transaction must enter the required information for the transaction into the 

Cboe Digital Trading System and provide the reference ID generated by 

the Cboe Digital Trading System to the Authorized Reporter for the contra 

side of the transaction promptly enough to allow a reasonable amount of 

time for the contra side Authorized Reporter to accept the notification to the 

Exchange of the transaction as entered by the initiating Authorized 

Reporter and enter contra side information for the transaction within a 

Permissible Reporting Period by no later than the applicable Reporting 

Deadline.

(B) If the parties to a Privately Negotiated Trade are each utilizing the same 

Authorized Reporter to notify the Exchange of the terms of the Privately Negotiated 

Trade, the Authorized Reporter is able to enter all of the required information 

regarding both sides of the transaction into the Cboe Digital Trading System and 

to fully report the transaction to the Exchange.

(4) A Privately Negotiated Trade may not be changed or canceled after it has been fully 

reported to the Exchange, except to the extent that the transaction may be busted by the 

Exchange in accordance with Rule 539.

(5) For timing purposes in connection with measuring adherence to Permissible Reporting 

Periods and the applicable Reporting Deadline, a Privately Negotiated Trade shall be 

deemed to have been fully reported to the Exchange when the full report of the transaction 

has been received by the Cboe Digital Trading System matching engine following either:
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(A) notification to the Cboe Digital Trading System of required information relating 

to the transaction by an initiating Authorized Reporter and acceptance and 

notification to the Cboe Digital Trading System of required information relating to 

the transaction by the contra side Authorized Reporter; or 

(B) notification to the Cboe Digital Trading System of required information relating 

to the transaction by a single Authorized Reporter for both parties to the 

transaction.

(e) The Exchange may modify a Permissible Agreement Period, Reporting Deadline, Permissible 

Reporting Period, and/or permissible manner of notification to the Exchange of a Privately 

Negotiated Trade in the event of unusual circumstances. 

(f) The Exchange or Cboe Digital Trading System may reject the submission of a Privately 

Negotiated Trade or bust a Block Trade or Contract leg of an EDRP that does not conform, or 

that is reported to the Exchange in a manner that does not conform, to the requirements of this 

Rule, Rule 601 or Rule 602, as applicable. The acceptance by the Exchange or Cboe Digital 

Trading System of the submission of a Privately Negotiated Trade does not constitute a 

determination by the Exchange that the transaction was effected or reported in conformity with 

the requirements of the Rule, Rule 601 or Rule 602, as applicable. A Privately Negotiated Trade 

that is accepted and not busted or rejected by the Exchange or Cboe Digital Trading System shall 

be processed and given effect, but will be subject to appropriate disciplinary action in accordance 

with the Rules of the Exchange if it was not effected or reported in conformity with the 

requirements of this Rule.

(g) It is not permissible to facilitate the execution of a Privately Negotiated Trade in an Exchange 

product on a system or facility accessible to multiple parties that allows for the electronic matching 

or electronic acceptance of bids and offers. Parties may use communication technologies to 

bilaterally request Privately Negotiated Trade quotes from one or more parties and to conduct 

Privately Negotiated Trades. Parties may also utilize technologies supported by third parties 

which allow for the electronic posting of indicative Privately Negotiated Trade markets displayed 

to multiple parties. However, Privately Negotiated Trade executed between parties based on 

such electronically displayed indicative markets may be transacted only through direct bilateral 

communications involving a broker, where applicable, and the parties to a Privately Negotiated 

Trade. To demonstrate that a Privately Negotiated Trade based on such technologies was 

privately negotiated, the broker(s) or parties involved in the Block Trade must maintain and 

provide to the Exchange, when requested, documentation or correspondence that clearly 

evidences direct bilateral communications between the broker(s) and the parties to the Privately 

Negotiated Trade. Failure to provide such documentation or communication would render the 

Privately Negotiated Trade in violation of the private negotiation standard of this subparagraph 

(g).

(p) Any Privately Negotiated Trade in violation of the requirements of this Rule, Rule 601 or Rule 

602, as applicable, shall constitute conduct which is inconsistent with just and equitable principles 

of trade.
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CHAPTER 7: DISCIPLINARY RULES

RULE 701. General

(a) All Participants Trading Privilege Holders and any Related Party shall be subject to the 

Exchange’s disciplinary jurisdiction. All Participants Trading Privilege Holders and any 

Related Party are subject to this Chapter 7 if they, or with respect to a ParticipantTrading 

Privilege Holder, any other Person using any of its User IDs, are alleged to have violated, to 

have aided and abetted a violation, to be violating, or to be about to violate, any Rule of the 

Exchange or any provision of Applicable Law for which the Exchange possesses disciplinary 

jurisdiction.

(b) The Exchange, through the Market Regulation Department and the Disciplinary Panel, will 

conduct inquiries, investigations, disciplinary proceedings and appeals from disciplinary 

proceedings, summary impositions of fines, summary suspensions or other summary actions

in accordance with this Chapter 7.

(c) No Exchange Official, Director, or Officer will interfere with or attempt to influence the process 

or resolution of any inquiry, investigation, disciplinary proceeding, appeal from a disciplinary 

proceeding, summary imposition of fines, summary suspension or other summary action 

(collectively “Disciplinary Action”), except to the extent provided under the Cboe Digital 

Exchange Rules with respect to a proceeding in which the Director is a member of the relevant 

Appeal Panel.

(d) Any Trading Privilege Holder Participant may be represented by counsel during any 

Disciplinary Action pursuant to this Chapter 7.

(e) Trading Privilege Holder Participant Liability – Individual and Joint Liability/Controlling Person 

Liability

(1) The Exchange may hold a Participant Trading Privilege Holder liable for, and impose 

sanctions against such Trading Privilege HolderParticipant, for such Participant’s Trading 

Privilege Holder’s own acts and omissions that constitute a violation as well as for the acts 

and omissions of each (A) Authorized Trader or Authorized Broker authorized by such 

ParticipantTrading Privilege Holder, (B) other Supervised Person Related Party of such 

ParticipantTrading Privilege Holder, (C) other Person using a User ID of such Participant 

Trading Privilege Holder or (D) other agent or representative of such Trading Privilege 

HolderParticipant, in each case, that constitute a violation as if such violation were that of 

the ParticipantTrading Privilege Holder.

(2) The Exchange may hold an Authorized Trader or Authorized Broker liable for, and impose 

sanctions against such Authorized Trader or Authorized Broker, for such Authorized 

Trader’s or Authorized Broker’s own acts and omissions that constitute a violation as well 

as or for the acts and omissions of any other agent or representative of such Authorized 
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Trader or Authorized Broker that constitute a violation as if such violation were that of the 

Authorized Trader or Authorized Broker.

(f) Ex Parte Communications.

(1) A Person subject to a disciplinary proceeding or an appeal from a disciplinary proceeding 

(and any counsel or representative of such Person) and the Market Regulation 

Department (and any counsel or representative of the Market Regulation Department) 

shall not knowingly make or cause to be made an ex parte communication relevant to the 

merits of a disciplinary proceeding or an appeal from a disciplinary proceeding to any 

member of the Disciplinary Panel or the Appeal Panel hearing such proceeding. 

(2) Members of a Disciplinary Panel or Appeal Panel shall not knowingly make or cause to be 

made an ex parte communication relevant to the merits of a disciplinary proceeding or an 

appeal from a disciplinary proceeding to any Person subject to such proceeding (and any 

counsel or representative of such Person) and the Market Regulation Department (and 

any counsel or representative of the Market Regulation Department). 

(3) Any Person who receives, makes or learns of any communication that is prohibited by this 

rule shall promptly give notice of such communication and any response thereto to the 

Market Regulation Department and all parties to the proceeding to which the 

communication relates. 

(4) A Person shall not be deemed to have violated this rule if the Person refuses an attempted 

communication concerning the merits of a proceeding as soon as it becomes apparent the 

communication concerns the merits.

RULE 702. Inquiries and Investigation

(a) The Market Regulation Department will investigate any matter within the Exchange’s 

jurisdiction of which it becomes aware. The Market Regulation Department will commence 

an investigation upon the receipt of a request from Commission staff or upon the discovery or 

receipt of information by the Exchange that, in the judgment of the Market Regulation 

Department indicates a possible basis for finding that a violation has occurred or will occur. 

The Market Regulation Department will determine the nature and scope of its inquiries and 

investigations in its sole discretion and will function independently of any commercial interests 

of the Exchange.

(b) The Market Regulation Department has the authority to:

(1) initiate and conduct inquiries and investigations;

(2) prepare investigative reports and make recommendations concerning initiating 

disciplinary proceedings;

(3) prosecute alleged violations within the Exchange’s disciplinary jurisdiction; and,
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(4) represent the Exchange on appeal from any disciplinary proceeding, summary imposition 

of fines, summary suspension or other summary action.

(c) Each ParticipantTrading Privilege Holder and any Related Party:

(1) is obligated to appear and testify and respond in writing to interrogatories within the time 

period required by the Market Regulation Department in connection with: 

i. any Cboe Digital Rule; 

ii. any inquiry or investigation; or 

iii. any preparation and presentation during a Disciplinary Action;

(2) is obligated to produce books, records, papers, documents or other tangible evidence in 

its, his or her possession, custody or control within the time period required by the Market 

Regulation Department in connection with:

i. any Cboe Digital Rule; 

ii. any inquiry or investigation; or 

iii. any preparation and presentation during a Disciplinary Action; and

(3) may not impede or delay any Disciplinary Action.

RULE 703. Reports of Investigations

(a) The Market Regulation Department will maintain a log of all investigations and their 

disposition. The Market Regulation Department will prepare a written report of each 

investigation, regardless of whether the evidence gathered during any inquiry or investigation 

forms a reasonable basis to believe that a violation within the Exchange’s jurisdiction has 

occurred or is about to occur or whether the evidence gathered results in closing the matter 

without further action or through summary action.

(b) Any written report of investigation (“Investigative Report”) will include the reasons for initiating 

the investigation (including a summary of the complaint, if any), all relevant facts and evidence 

gathered, Market Regulation Department staff’s analysis and conclusions, the Participant’s 

Trading Privilege Holder’s or Related Party’s disciplinary history at the Exchange, and the 

recommendation of the Market Regulation Department. For each potential respondent, the 

Market Regulation Department will recommend either:

(1) closing the investigation without further action; 

(2) settlement;

(3) summary action;

(4) the preparation and service of a notice of charges for instituting a disciplinary proceeding; 

or, 

(5) resolving the investigation through an informal disposition, including the issuance of a 

warning letter. An informal disposition (including the issuance of a warning letter) will not 
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constitute a finding of a violation or a sanction, however, the investigative report must 

include a copy of any warning letter and no more than one warning letter for the same 

potential violation may be issued to the same Participant Trading Privilege Holder or 

Related Party during a rolling 12-month period.

(c) The Investigative Report will be provided to the Chief Regulatory Officer for a determination 

as to whether the Investigative Report is complete. The Chief Regulatory Officer will then 

provide the completed Investigative Report to the Review Panel of the Disciplinary Panel.

RULE 704. Opportunity to Respond

(a) After completing its investigation report, the Market Regulation Department may, upon 

approval of the Chief Regulatory Officer, notify each potential respondent that the Market 

Regulation Department has recommended formal disciplinary charges against the potential 

respondent.

(b) The Market Regulation Department may allow a potential respondent to propose a settlement 

of the matter or to submit a written statement explaining why a disciplinary proceeding should 

not be instituted or one or more of the potential charges should not be brought. The potential 

respondent shall submit such written statement within the time limit established by the Market 

Regulation Department.

RULE 705. Review of Investigative Reports

(a) Review of Investigative Reports by the Chief Regulatory Officer

(1) Within 30 days of the receipt of a completed Investigative Report, the Chief Regulatory 

Officer will review the completed Investigation Report to determine whether a reasonable 

basis exists to believe that a violation within the Exchange’s jurisdiction has occurred or 

is about to occur.

(2) If the Chief Regulatory Officer determines that additional investigation or evidence is 

needed to decide whether a reasonable basis exists to believe that a violation within the 

Exchange’s jurisdiction has occurred or is about to occur, the Chief Regulatory Officer will 

direct the Market Regulation Department to conduct further investigation.

(3) Upon receiving the completed Investigative Report or after receiving additional information 

upon the completion of an investigation, the Chief Regulatory Officer will determine for 

each potential respondent whether to authorize:

i. the informal disposition of the investigation (by issuing a warning letter or otherwise) 

because disciplinary proceedings are unwarranted; or

ii. the closing of the investigation without any action because no reasonable basis exists 

to believe that a violation within the Exchange’s jurisdiction has occurred or is about 

to occur; or,

iii. the commencement of disciplinary proceedings because a reasonable basis exists to 

believe that a violation within the Exchange’s jurisdiction has occurred or is about to 

occur.
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(b) Review of Investigative Reports by the Review Panel of the Disciplinary Panel.

(1) After receiving a completed Investigation Report pursuant to Rule 703, a Review Panel 

must promptly review the report and, within 30 days of such receipt, must take one of the 

following actions:

i. If the Review Panel determines that additional investigation or evidence is needed, it 

must promptly direct the Market Regulation Department to conduct further 

investigation.

ii. If the Review Panel determines that no reasonable basis exists for finding a violation 

or that prosecution is otherwise unwarranted, it may direct that no further action be 

taken. Such determination must be in writing, and must include a written statement 

setting forth the facts and analysis supporting the decision.

iii. If the Review Panel determines that a reasonable basis exists for finding a violation 

and adjudication is warranted, it must direct that the person or entity alleged to have 

committed the violation be served with a notice of charges and proceed in accordance 

with the rules of Chapter 7.

(2) A failure of the Disciplinary Panel to act within the time prescribed in Rule 705(b) shall not 

prevent the Chief Regulatory Officer from acting pursuant to Rule 705(a). The Chief 

Regulatory Officer shall inform the Regulatory Oversight Committee of any such failure of 

the Disciplinary Panel to act.

(3) Any conflict between the actions of the Chief Regulatory Officer pursuant to Rule 705(a) 

and the Disciplinary Panel pursuant to Rule 705(b) shall be resolved by the Regulatory 

Oversight Committee.

RULE 706. Notice of Charges

(a) If the Chief Regulatory Officer or Review Panel authorizes disciplinary proceedings pursuant 

to Rule 705(a)(3)(iii) or 703(b)(1)(iii), the Market Regulation Department will prepare, and 

serve in accordance with Rule 708, a notice of charges.

(b) A notice of charges will:

(1) state the acts, practices or conduct that the respondent is alleged to have engaged in;

(2) state the Cboe Digital Rule or provision of Applicable Law alleged to have been violated 

or about to be violated;

(3) state the proposed sanctions;

(4) advise the respondent of its right to a hearing;

(5) advise the respondent that he has the right to be represented by legal counsel or any other 

representative of its choosing in all succeeding stages of the disciplinary process;

(6) state the period of time within which the respondent can request a hearing on the notice 

of charges, which will not be less than 20 days after service of the notice of charges;
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(7) advise the respondent that any failure to request a hearing within the period stated, except 

for good cause, will be deemed to constitute a waiver of the right to a hearing; and

(8) advise the respondent that any allegation in the notice of charges that is not expressly 

denied will be deemed to be admitted.

RULE 707. Answer to Notice of Charges

(a) If the respondent determines to answer a notice of charges, the respondent must file answers 

within 20 days after being served with such notice, or within such other time period determined 

by the Chief Regulatory Officer.

(b) To answer a notice of charges, the respondent must in writing:

(1) specify the allegations that the respondent denies or admits;

(2) specify the allegations that the respondent does not have sufficient information to either 

deny or admit;

(3) specify any specific facts that contradict the notice of charges;

(4) specify any affirmative defenses to the notice of charges; and

(5) sign and serve the answer on the Chief Regulatory Officer.

(c) Any failure by the respondent to timely serve an answer to a notice of charges will be deemed 

to be an admission to the allegations in such notice. Any failure by the respondent to answer 

one or more allegations in a notice of charges will be deemed to be an admission of that 

allegation or those allegations. Any allegation in a notice of charges that the respondent fails 

to expressly deny will be deemed to be admitted. A general denial by the respondent, without 

more, will not satisfy the requirements of paragraph (b) above.

RULE 708. Service of Notice of Charges

(a) Any notice of charges or other documents to be served pursuant to this Chapter 7 may be 

served upon the respondent and service shall be deemed complete either personally or by 

leaving the same at his or her place of business; by deposit in the United States mail, postage 

prepaid, via registered or certified mail addressed to the respondent at the address as it 

appears on the books and records of the Exchange.

(b) Any notice of charges or other documents contemplated to be served pursuant to this Chapter 

7 may be served upon the respondent and service shall be deemed complete via electronic 

mail to the electronic mail address as it appears on the books and records of the Exchange.

RULE 709. Settlements

(a) A respondent or potential respondent may at any time propose in writing an offer of settlement 

related to anticipated or instituted disciplinary proceedings. 

(b) Any offer of settlement should contain proposed findings and sanctions and be signed by the 

respondent or potential respondent and submitted to the Market Regulation Department. 
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(c) A respondent or potential respondent may offer to settle disciplinary proceedings without 

admitting or denying the findings contained in the order of the disciplinary proceedings but 

must accept the jurisdiction of the Exchange over it and over the subject matter of the 

proceedings and consent to the entry of the findings and sanctions imposed.

(d) If a respondent or potential respondent submits an offer of settlement in accordance with 

paragraph (a) above, the Market Regulation Department will forward the offer to the Chief 

Regulatory Officer with a recommendation on whether to accept or reject the offer. Any 

preliminary determination by the Chief Regulatory Officer to accept the offer shall be submitted 

for review by the Disciplinary Panel. If the Disciplinary Panel agrees, then the Chief 

Regulatory Officer shall conditionally accept an offer of settlement, and that the settlement will 

become final upon the expiration of 20 days after an order of the disciplinary proceedings 

consistent with the terms of the offer of settlement is served on the respondent.

(e) If an offer of settlement is accepted by the Disciplinary Panel, the panel accepting the offer 

must issue a written decision specifying the rule violations it has reason to believe were 

committed, including the basis or reasons for the panel’s conclusions, and any sanction to be 

imposed, which must include full customer restitution where customer harm is demonstrated. 

If an offer of settlement is accepted without the agreement of the Market Regulation 

Department or Chief Regulatory Officer, the decision must adequately support the Hearing 

Panel’s acceptance of the settlement. If applicable, the decision must also include a 

statement that the respondent has accepted the sanctions imposed without either admitting 

or denying the rule violations.

(f) If an offer of settlement is accepted and the related order of disciplinary proceedings becomes 

final, the respondent’s submission of the offer will be deemed to constitute a waiver of the 

right to notice, opportunity for a hearing and review and appeal under the Cboe Digital 

Exchange Rules.

(g) If the offer of settlement of a respondent or potential respondent is not accepted by agreement 

between the Chief Regulatory Officer and the Disciplinary Panel, fails to become final or is 

withdrawn by the respondent or potential respondent, the matter will proceed as if the offer 

had not been made and the offer and all documents relating to it will not become part of the 

record. Neither a respondent or potential respondent nor the Market Regulation Department 

may use an unaccepted offer of settlement as an admission or in any other manner at a 

hearing of, or appeal from, disciplinary proceedings.

RULE 710. Disciplinary Panel

(a) The Disciplinary Panel shall function as a Review Panel and Hearing Panel.

(1) The Review Panel shall review completed Investigative Reports in order to determine 

whether a reasonable basis exists for finding a violation of the Exchange’s rules and for 

authorizing the issuance of notices of charges against persons.
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(2) The Hearing Panel shall conduct hearings in connection with any disciplinary proceedings 

(except for summary impositions of fines pursuant to Rule 717), to make findings, render 

decisions, and impose sanctions pursuant to this Chapter 7. 

(b) The Board shall appoint individuals at the recommendation of the Chief Regulatory Officer to 

serve for a term of one-year, subject to reappointment by the Board, as potential participants 

on the Disciplinary Panels. The Chief Regulatory Officer shall recommend at least three 

individuals that will satisfy the conditions of a Public Individuals and at least three individuals 

who represent the diversity of market participants’ interests. The term of an individual that 

has been selected as a member of a Disciplinary Panel will not expire until the related 

proceedings are completed. Exchange staff are prohibited from serving on a Disciplinary 

Panel.

(c) The chair of any Review Panel or Hearing Panel shall be a Public Individual.

(d) The Chief Regulatory Officer shall select a separate Review Panel and Hearing Panel prior to 

the commencement of each investigative or disciplinary matter by randomly selecting at least 

one Public Individual and the remaining individuals from the industry participant pools so that 

any group or class of industry participants is precluded from dominating or exercising 

disproportionate influence on the Disciplinary Panel being formed. 

(e) If an individual selected is an Interested Person or if a member of the Disciplinary Panel later 

becomes an Interested Person, a replacement for such individual shall be randomly selected 

by the Chief Regulatory Officer. Individuals are prohibited from participating as a member of 

a Disciplinary Panel if such individual participated on a prior Disciplinary Panel proceeding in 

the same matter.

(f) Within 10 days of being notified of the appointment of the Disciplinary Panel, a respondent 

may seek to disqualify any individual named to the Disciplinary Panel for the reasons identified 

in Rule 213 or for any other reasonable grounds, including that such individual has a financial 

interest in the matter or that such individual participated on a prior Disciplinary Panel or Appeal 

Panel proceeding in the same matter, by serving written notice on the Chief Regulatory 

Officer. By not timely filing a request for disqualification, the respondent will be deemed to 

have waived any objection to the composition of a Disciplinary Panel. The General Counsel 

of the Exchange will decide the merits of any request for disqualification within his or her sole 

discretion. Any such decision will be final and not subject to appeal.

(g) No person shall serve on a Disciplinary Panel unless that person has agreed in writing that 

he or she will not publish, divulge, or make known in any manner, any facts or information 

regarding the business of any person or any other information which may come to his attention 

in his official capacity as a member of the Disciplinary Panel, except when reporting to the 

Board or to a committee concerned with such information or to the Market Regulation 

Department, when requested by the CFTC or other governmental agency or when compelled 

to testify in any judicial or administrative proceeding.
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(h) All information, records, materials and documents provided to the Disciplinary Panel and all 

deliberations, testimony, information, records, materials and documents related thereto shall 

be treated as non-public and confidential and shall not be disclosed, except as necessary to 

further an Exchange investigation or as required by law.

RULE 711. Convening Hearings of Disciplinary Proceedings

(a) A hearing will be conducted privately and confidentially. Notwithstanding the confidentiality 

of hearings, the Hearing Panel may appoint an expert to attend any hearing and assist in 

deliberations if such expert agrees to be subject to an appropriate confidentiality agreement.

(b) After reasonable notice to each respondent, the Hearing Panel will promptly convene a 

hearing to conduct the disciplinary proceedings with respect to such respondent. Parties to a 

disciplinary proceeding include each respondent and the Market Regulation Department.

(c) The chair of the Hearing Panel may continue, adjourn or otherwise conduct the hearing, as 

he or she may deem appropriate. The chair of the Hearing Panel will determine all procedural 

and evidentiary matters, including the admissibility and relevance of any evidence proffered. 

In determining procedural and evidentiary matters, the chair of the Hearing Panel will not be 

bound by any evidentiary or procedural rules or law. Once admitted during the hearing, the 

Hearing Panel may consider, and attach the weight it believes appropriate to, evidence or 

other materials. The General Counsel of the Exchange, or its designee, will provide guidance 

to the chair of the Hearing Panel on the conduct of the hearing.

(d) Except for procedural and evidentiary matters decided by the chair of the Hearing Panel 

pursuant to paragraph (c) above and Rule 712, unless each respondent otherwise consents, 

the entire Hearing Panel must be present during the entire hearing and any related 

deliberations.

RULE 712. Respondent Review of Evidence

(a) Prior to the commencement of a hearing, each respondent will be given the opportunity to 

review all books, records, documents, papers, transcripts of testimony and other tangible 

evidence in the possession or under the control of the Exchange that the Market Regulation 

Department will use to support the allegations and proposed sanctions in the notice of charges 

or which the chair of the Hearing Panel deems relevant to the disciplinary proceedings. 

Notwithstanding the foregoing, no respondent will have the right to review, and the Exchange 

will have no obligation to disclose, any information protected by attorney-client privilege.

(b) If any books, records, documents, papers, transcripts of testimony, or other tangible evidence 

contain information that could adversely affect the competitive position of the Person providing 

the information or if such information might compromise other investigations being conducted 

by the Market Regulation Department, the Market Regulation Department may redact, edit or 

code such information before furnishing it to the respondent.
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(c) Notwithstanding anything in paragraph (b) above to the contrary, the Market Regulation 

Department:

(1) will not redact, edit or code competitive or investigative information contained in 

documents in a manner that would impair the respondent’s ability to defend against the 

allegations or proposed sanctions in the notices of charges, and 

(2) will provide the respondent with access to the information and portions of the documents 

that the Market Regulation Department intends to rely on to support the allegations or 

proposed sanctions in the notice of charges.

(d) For purposes of this Rule 712, information that could adversely affect competitive positions 

include positions in Contracts currently held, trading strategies employed in establishing or 

liquidating positions, the identity of any Trading Privilege Holder, Related Party Participant or 

Authorized Trader and the personal finances of the Person providing the information.

RULE 713. Conducting Hearings of Disciplinary Proceedings

(a) At a hearing conducted in connection with any disciplinary proceedings, the Market Regulation 

Department will present its case supporting the allegations and proposed sanctions in the 

notice of charges to the Hearing Panel. If a respondent has timely filed an answer to the notice 

of charges in accordance with Rule 707, the respondent is entitled to attend and participate 

in the hearing.

(b) At a hearing conducted in connection with any disciplinary proceedings, the Hearing Panel or 

the Market Regulation Department and each respondent may:

(1) present evidence and facts determined relevant and admissible by the chair of the Hearing 

Panel;

(2) call and examine witnesses; and

(3) cross-examine witnesses called by other parties.

(c) If the respondent fails to file an answer, has filed a general denial, or if any or all of the 

allegations in the notice of charges are not expressly denied in the respondent’s answer, the 

chair of the Hearing Panel may limit evidence concerning any allegations not expressly denied 

in determining the sanctions to impose. If a respondent fails to file an answer but appears at 

the hearing, the respondent may not participate in the hearing (by calling or cross-examining 

witnesses, testifying in defense, presenting evidence concerning the notice of charges, or 

otherwise) unless the Hearing Panel determines that the respondent had a compelling reason 

for failing to timely file an answer. If the Hearing Panel determines that the respondent had a 

compelling reason for failing to timely file an answer, the Hearing Panel will adjourn the 

hearing and direct the respondent to promptly file a written answer in accordance with Rule 

707.

(d) Any Person entitled, or required or called upon, to attend a hearing before a Hearing Panel 

pursuant to paragraph (b)(2) above will be given reasonable notice, confirmed in writing, 
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specifying the date, time and place of the hearing, and the caption of the disciplinary 

proceedings. All Trading Privilege Holders Participants (that are individuals), Authorized 

Traders and other Supervised Persons Related Parties that are called as witnesses are 

required to appear at the hearing and, where applicable, produce evidence. The Exchange 

will make reasonable efforts to secure the presence of all other Persons called as witnesses 

whose testimony would be relevant.

(e) If during any disciplinary proceedings the Hearing Panel determines that a reasonable basis 

exists to believe that the respondent violated or is about to violate a Rule of the Exchange or 

a provision of Applicable Law other than the violations alleged in the notice of charges, the 

Hearing Panel may consider those apparent violations after providing the respondent with an 

opportunity to answer the additional allegations in accordance with Rule 707. In connection 

with considering apparent violations pursuant to this paragraph (e), the Hearing Panel may 

request that the Market Regulation Department provide the Hearing Panel with any additional 

information related to the violations at issue.

(f) The Hearing Panel may summarily impose sanctions on any Trading Privilege Holder 

Participant, Authorized Trader or Related Party other Supervised Person that impedes or 

delays the progress of a hearing.

(g) The Exchange will arrange for any hearing conducted in connection with disciplinary 

proceedings to be recorded verbatim, or substantially verbatim, in a manner capable of 

accurate transcription. If the respondent requests a copy of all or portions of the recording of 

a hearing, the chair of the Hearing Panel may within his or her sole discretion require the 

respondent to pay the costs for transcribing the recording of the hearing.

(h) No interlocutory appeals of rulings of any Hearing Panel or chair of the Hearing Panel are 

permitted.

RULE 714. Decision of Hearing Panel

(a) As promptly as reasonable following a hearing, the Hearing Panel will issue a written order 

rendering its decision based on the weight of the evidence contained in the record of the 

disciplinary proceedings. A decision by a majority of the Hearing Panel will constitute the 

decision of the Hearing Panel.

(b) The Exchange will serve a copy of the order of the disciplinary proceedings on the respondent 

and the Market Regulation Department. The order will include:

(1) the notice of charges or summary of the allegations;

(2) the answer, if any, or a summary of the answer;

(3) a brief summary of the evidence introduced at the hearing or, where appropriate, 

incorporation by reference of the Investigation Report;
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(4) findings of fact and conclusions concerning each allegation, including a complete 

explanation of the evidentiary and other basis for such findings and conclusions with 

respect to each allegation;

(5) each specific Rule of the Exchange and provision of Applicable Law that the respondent 

is found to have violated

(6) the imposition of sanctions, if any, including the basis for such sanctions and the effective 

date of each sanction; and, 

(7) notice of the respondent’s right to appeal pursuant to Rule 716.

(c) Unless a timely notice of appeal is filed pursuant to Rule 716, the order of the disciplinary 

proceedings will become final upon the expiration of 20 days after the order is served on the 

respondent and provided to the Market Regulation Department.

RULE 715. Sanctions

(a) After notice and opportunity for hearing in accordance with the Cboe Digital Exchange Rules, 

the Exchange will impose sanctions if any Trading Privilege HolderParticipant, Authorized 

Trader, other Supervised Person Related Party or other Person using any of the Participant’s 

Trading Privilege Holder’s User IDs is found to have violated or to have attempted to violate 

a Rule of the Exchange or provision of Applicable Law for which the Exchange possesses 

disciplinary jurisdiction. All sanctions must take into account the respondent’s disciplinary 

history. In the event of demonstrated customer harm, any sanction must also include full 

customer restitution. 

The Exchange may impose one or more of the following sanctions or remedies:

(1) censure; 

(2) limitation on Trading Privileges, ability to otherwise access the Cboe Digital Trading 

System, and/or other activities, functions or operations;

(3) suspension of Trading Privileges and/or ability to otherwise access the Cboe Digital 

Trading System;

(4) fine (subject to paragraph (b) below); 

(5) restitution or disgorgement; 

(6) termination of Trading Privileges and/or ability to otherwise access the Cboe Digital

Trading System; or 

(7) any other sanction or remedy deemed to be appropriate.

(b) The Exchange may impose a fine of up to $1,000,000 for each violation of a Rule of the 

Exchange or a provision of Applicable Law. If a fine or other amount is not paid within 30 days 

of the date that it becomes payable, then interest will accrue on the sum from the date that it 

became payable at the quoted prime rate plus three percent. The Exchange has sole 

discretion to select the bank on whose quotations to base the prime rate. Participant Trading 

Privilege Holder will be responsible for paying any fine or other amount imposed on, but not 

paid by, any of its Authorized Traders or Supervised PersonsRelated Parties.
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RULE 716. Appeal from Hearing Panel Decision, Summary Impositions of 

Fines and Other Summary Actions

(a) A respondent found by the Hearing Panel to have violated (or, in the case of a 

ParticipantTrading Privilege Holder, whose Authorized Trader, Supervised Person or Related 

Party or other Person using its User ID was found to have violated) a Rule of the Exchange 

or a provision of Applicable Law or who is subject to any summary fine imposed pursuant to 

Rule 717 or any summary action imposed pursuant to Rule 718 may appeal the decision 

within 20 days of receiving the order of the disciplinary proceedings or the notice of summary 

action, as the case may be, by filing a notice of appeal with the Chief Regulatory Officer. 

While an appeal is pending, the effect of the order of disciplinary proceedings or the summary 

action (including any sanctions, remedies or costs imposed thereby) shall be suspended, 

except as provided in Rule 701(f) with respect to any denial or limit on Trading Privileges or 

ability to otherwise access the Cboe Digital Trading System.

(b) The notice of appeal must state in writing the grounds for appeal, including the findings of fact, 

conclusions or sanctions to which the respondent objects. A respondent may appeal the order 

of disciplinary proceedings or any summary decision on the grounds that:

(1) the order or decision was arbitrary, capricious, an abuse of discretion, or not in accordance 

with the Cboe Digital Exchange Rules;

(2) the order or decision exceeded the authority or jurisdiction of the Hearing Panel, the Chief 

Regulatory Officer or the Exchange;

(3) the order or decision failed to observe required procedures;

(4) the order or decision was unsupported by the facts or evidence; or

(5) the imposed sanctions, remedies or costs are inappropriate or unsupported by the record.

(c) Upon receipt of a notice of appeal, the Chief Regulatory Officer will forward copies to the nonappealing party to the disciplinary proceeding or summary action. On or before the 20th day 

after filing a notice of appeal, the appellant must file with the Chief Regulatory Officer and 

serve on the Market Regulation Department a brief supporting the notice of appeal and 

documents supporting the brief. On or before the 20th day after the date on which the 

appellant serves a supporting brief, the appellee must file and serve its brief in opposition with 

the Market Regulation Department. On or before the 10th day after the date on which the 

appellee serves its brief in opposition, the appellant must file and serve a brief in reply with 

the Market Regulation Department.

(d) In connection with any appeal, the Market Regulation Department will furnish to the Chief 

Regulatory Officer and to the respondent/appellant a transcript of the hearing, any exhibits 

introduced at the hearing, the notice of appeal and briefs filed to support and oppose the 

appeal.

(e) Within 30 days after the last submission filed pursuant to paragraph (c) above, the Board will 

appoint an Appeal Panel to consider and determine the appeal. The Board shall appoint 

individuals at the recommendation of the Chief Regulatory Officer to serve on the Appeal 
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Panel for a term of one year, subject to reappointment by the Board, as potential participants 

on Appeal Panels. The Chief Regulatory Officer’s recommendation shall include Public 

Individuals. The term of an individual that has been selected as a member of an Appeal Panel 

will not expire until the related proceedings are completed. Individuals are prohibited from 

participating as a member of an Appeal Panel if such individual participated on a prior 

Disciplinary Panel or Appeal Panel proceeding in the same matter. Exchange staff are 

prohibited from serving on an Appeal Panel.

(f) The chair of the Appeal Panel shall be a Public Individual, meaning an individual that satisfies 

the conditions of a Public Director.

(g) Within 10 days of being notified of the appointment of the Appeal Panel, an appellant may 

seek to disqualify any individual named to the Appeal Panel for the reasons identified in Rule 

213 or for any other reasonable grounds, including, but not limited that such individual 

participated on a prior Disciplinary Panel or Appeal Panel proceeding in the same matter, by 

serving written notice on the Chief Regulatory Officer. By not timely filing a request for 

disqualification, the appellant will be deemed to have waived any objection to the composition 

of an Appeal Panel. The General Counsel of the Exchange will decide the merits of any 

request for disqualification within his or her sole discretion.

(h) The Appeal Panel will hold a hearing to allow parties to present oral arguments. Any hearing 

will be conducted privately and confidentially. Notwithstanding the confidentiality of hearings, 

the Appeal Panel may appoint an expert to attend any hearing and assist in the deliberations 

if such individuals agree to be subject to appropriate confidentiality agreements. In 

determining procedural and evidentiary matters, the Appeal Panel will not be bound by 

evidentiary or procedural rules or law.

(i) The Appeal Panel will only consider on appeal the record before the Hearing Panel or, in the 

case of a summary action, the record considered by the Chief Regulatory Officer, the notice 

of appeal, the briefs filed in support and opposition of the appeal, and any oral arguments of 

the parties. The Appeal Panel may only consider new evidence when the Appeals Panel 

determines that good cause exists as to why the evidence was not introduced during the 

disciplinary proceeding or when imposing the summary action.

(j) After completing its review, the Appeal Panel may affirm, modify or reverse any order of the 

disciplinary proceedings or summary action under appeal, in whole or in part, including 

increasing, decreasing or eliminating any sanction or remedy imposed, imposing any other 

sanction or remedy authorized by the Cboe Digital Exchange Rules, remanding the matter to 

the same or a different Hearing Panel for further disciplinary proceedings, or ordering a new 

hearing.

(k) As promptly as reasonably possible following its review, the Appeal Panel will issue a written 

decision based on the weight of the evidence before the Appeal Panel. The decision of the 

Appeal Panel will include a statement of findings of fact and conclusions for each finding, 

sanction, remedy and cost reviewed on appeal, including each specific Rule of the Exchange 
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and provision of Applicable Law that the respondent is found to have violated, if any, and the 

imposition of sanctions, remedies and costs, if any, and the effective date of each sanction, 

remedy or cost.

(l) The Appeal Panel’s written order will be the final action of the Exchange and will not be subject 

to appeal within the Exchange.

RULE 717. Summary Imposition of Fines

(a) The Chief Regulatory Officer may summarily impose a fine against a Participant Trading 

Privilege Holder (on behalf of itself or any of its Authorized Traders, other Supervised Persons 

Related Parties or other Persons using any of its User IDs) or Authorized Trader for failing:

(1) to make timely payments of original or variation margin, Options premiums, fees, cost, 

charges or fines to the Exchange or the Clearing House;

(2) to make timely and accurate submissions to the Exchange of notices, reports or other 

information required by the Cboe Digital Exchange Rules; and

(3) to keep any books and records required by the Cboe Digital Exchange Rules.

(b) The Market Regulation Department, acting on behalf of the Chief Regulatory Officer, will give 

notice of any fine imposed pursuant to this Rule 717 to each Trading Privilege Holder 

Participant or Authorized Trader subject thereto. The notice will specify:

(1) the violations of the Cboe Digital Exchange Rules for which the fine is being imposed;

(2) the date of the violation for which the fine is being imposed; and,

(3) the amount of the fine. 

Within 20 days of serving the notice of fine, the Trading Privilege Holder Participant or 

Authorized Trader, as the case may be, must either pay or cause the payment of the fine or 

file notice of an appeal pursuant to Rule 716. Unless timely notice of appeal is filed pursuant 

to Rule 716, the fine will become final upon the expiration of 20 days after the notice of fine is 

served on the Trading Privilege Holder Participant or Authorized Trader, as the case may be.

(c) The Exchange will set the amount of any fines imposed pursuant to this Rule 717, with the 

maximum fine for each violation not to exceed $5,000. Summary imposition of fines pursuant 

to this Rule 717 will not preclude the Exchange from bringing any other action against the 

Trading Privilege Holder Participant (or any of its Authorized Traders or other Supervised 

PersonsRelated Parties) or Authorized Trader, as the case may be.

RULE 718. Summary Suspensions and Other Summary Actions

(a) Notwithstanding anything in the Cboe Digital Exchange Rules to the contrary, the Chief 

Regulatory Officer may, after consultation with the Regulatory Oversight Committee, if 

practicable, summarily suspend, revoke, limit, condition, restrict or qualify a Trading Privilege 
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Holder's Participant’s Trading Privileges and/or ability to otherwise access the Cboe Digital 

Trading System, and may take other summary action against any Trading Privilege Holder 

Participant or any of its Authorized Traders or Supervised Persons Related Parties in 

accordance with the Cboe Digital Exchange Rules; provided, however, that the Chief 

Regulatory Officer must reasonably believe that the business, conduct or activities of the 

Trading Privilege Holder Participant or any of its Authorized Traders or Supervised Person 

Related Party in question is not in the best interests of the Exchange or the marketplace, 

including based on any of the following:

(1) statutory disqualification from registration as provided in CEA Section 8a(2) or (3); 

(2) nonpayment of fees, costs, charges, fines or arbitration awards; or 

(3) the reasonable belief that immediate action is necessary to protect the public or the best 

interests of the Exchange.

(b) Whenever practicable, the Exchange shall provide prior written notice to the party against 

whom any action in accordance with paragraph (a) shall be taken. If prior notice is not 

practicable, the Exchange will give notice at the earliest possible opportunity to the respondent 

against whom the action is brought. 

(c) Unless timely notice of appeal is filed pursuant to Rule 716, the summary action will become 

final upon the expiration of 20 days after the notice of action is served on the respondent.

(d) At the request of the Exchange, a respondent against whom a summary action is brought 

pursuant to this Rule 718 must provide books and records over which the respondent has 

access or control and must furnish information to, or appear or testify before, the Exchange 

in connection with the enforcement of any Rule of the Exchange.

(e) A respondent whose Trading Privileges and/or ability to otherwise access the Cboe Digital

Trading System are suspended, revoked, limited, conditioned, restricted or qualified pursuant 

to this Rule 718 may apply for reinstatement by filing with the Market Regulation Department 

a written request stating the applicant’s reasons for seeking reinstatement. The Exchange 

will not consider a respondent’s request for reinstatement if the respondent (i) owes any fines, 

fees, charges or costs to the Exchange, (ii) continues to fail to appear at disciplinary 

proceedings without good cause or (iii) continues to impede the progress of disciplinary 

proceedings.

(f) Within a reasonable period after the filing of a request for reinstatement, the Appeals Panel 

will conduct a hearing to consider the request. At the hearing for reinstatement, the 

respondent will present its, his or her case supporting the reinstatement and the Market 

Regulation Department, acting on behalf of the Chief Regulatory Officer may, in its discretion, 

present its case opposing or supporting the reinstatement and each may present evidence 

and facts and call, examine and cross-examine witnesses. At the hearing for reinstatement, 

the Exchange may require any Trading Privilege HolderParticipant, Authorized Trader or other 

Supervised Person Related Party to appear as witnesses and produce evidence if the Appeals 

Panel determines that the evidence is relevant.
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(g) As promptly as reasonably possible after a reinstatement hearing, the Appeals Panel will issue 

an order reinstating, denying the reinstatement, or placing conditions on the reinstatement of 

the Trading Privileges and/or ability to otherwise access the Cboe Digital Trading System of 

the respondent. The order will include a brief summary of the evidence introduced at the 

reinstatement hearing; and, if applicable, findings of fact and conclusions not contained in the 

notice of summary action issued pursuant to Rule 718(b) above. The Appeals Panel’s order 

may not be appealed.

RULE 719. Rights and Responsibilities after Suspension or Termination

(a) When a Trading Privilege HolderParticipant’s or Authorized Trader’s Trading Privileges and/or 

its ability or the ability of an Authorized Trader to otherwise access the Cboe Digital Trading 

System are suspended for a period of 12 months or less, none of its rights (including the right to 

hold oneself out to the public as a Trading Privilege Holder Participant or Authorized Trader, enter 

Orders into the Cboe Digital Trading System and receive Trading Privilege Holder Participant 

rates for fees, costs, and charges and deposit margin at Trading Privilege Holder Participant 

levels) will apply during the period of the suspension, except for the right of the Trading Privilege 

Holder Participant or Authorized Trader in question to assert claims against others as provided in 

the Cboe Digital Exchange Rules. Any such suspension will not affect the rights of creditors under 

the Cboe Digital Exchange Rules or relieve the Trading Privilege Holder Participant or Authorized 

Trader in question of its, his or her obligations under the Cboe Digital Exchange Rules to perform 

any Contracts entered into before the suspension, or for any Exchange fees, costs, or charges 

incurred during the suspension. The Exchange may discipline a suspended Trading Privilege 

Holder Participant or Authorized Trader under this Chapter 7 for any violation of a Rule of the 

Exchange or provision of Applicable Law committed by the Trading Privilege Holder Participant 

or Authorized Trader before, during or after the suspension.

(b) When a Trading Privilege Holder's Participant’s or Authorized Trader’s Trading Privileges 

and/or its ability or the ability of an Authorized Trader to otherwise access the Cboe Digital Trading 

System are terminated, all of its related rights will terminate, except for the right of the Trading 

Privilege Holder Participant or Authorized Trader in question to assert claims against others, as 

provided in the Cboe Digital Exchange Rules. Any such termination will not affect the rights of 

creditors under the Cboe Digital Exchange Rules. A terminated Trading Privilege Holder 

Participant or Authorized Trader may only seek to be reinstated by applying for Trading Privileges 

pursuant to Rule 302 and a terminated Authorized Trader may seek to be re-designated pursuant 

to Rule 306. 

(c) The Exchange will not consider the application or re-designation of a terminated Participant 

Trading Privilege Holder or Authorized Trader if such Participant Trading Privilege Holder or 

Authorized Trader, as the case may be, continues to fail to appear at disciplinary proceedings 

without good cause or continues to impede the progress of disciplinary proceedings.

(d) A suspended or terminated Trading Privilege Holder Participant or Authorized Trader remains 

subject to the Cboe Digital Exchange Rules and the jurisdiction of the Exchange for acts and 

omissions prior to the suspension of termination, and must cooperate in any inquiry, investigation, 
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disciplinary proceeding, appeal of disciplinary proceedings, summary suspension or other 

summary action as if the suspended or terminated Trading Privilege Holder Participant or 

Authorized Trader still had Trading Privileges or ability to otherwise access the Cboe Digital 

Trading System.

(e) In the event of the suspension or revocation of a Participant’s Trading Privilege Holder’s 

Trading Privileges and/or ability to otherwise access the Cboe Digital Trading System, the 

Exchange shall seek to facilitate the transfer of any Customer Accounts held by such Participant 

Trading Privilege Holder to other Participants Trading Privilege Holderswith Trading Privileges 

and/or ability to otherwise access the Cboe Digital Trading System.

RULE 720. Notice to the Respondent and the Public

The Exchange will provide written notice of disciplinary proceedings to the parties consistent with 

applicable CFTC Regulations. Whenever the Exchange suspends, expels, fines or otherwise 

disciplines, or denies any Person access to the Exchange, the Exchange will make the public 

disclosures required by CFTC Regulations.
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CHAPTER 8: ARBITRATION RULES

RULE 801. Disputes Subject to Arbitration

(a) Mandatory Arbitration of Disputes Among Trading Privilege HoldersParticipants.

(1) It is contrary to the objectives and policy of the Exchange for Trading Privilege Holders

Participants to litigate Exchange-related disputes. Trading Privilege Holders Participants 

must arbitrate all disputes that relate to or arise out of any transaction on or subject to the 

Cboe Digital Exchange Rules and based upon facts and circumstances that occurred at 

a time when the parties were Trading Privilege Holders Participants through the American 

Arbitration Association (“AAA”) in accordance with its Commercial Arbitration Rules. In 

the event of a conflict between the Rulebook and the AAA’s Commercial Arbitration Rules, 

the terms of the Rulebook shall control. 

(2) Notwithstanding the foregoing, this Rule 801 does not require an employee of a Trading 

Privilege Holder Participant to submit to arbitration any claim that includes allegations of 

a violation of federal, state or local employment discrimination, sexual harassment, wage 

payment or benefits laws.

(b) Claims Against the Exchange or Clearing House.

(1) Claims Against the Exchange

Claims against the Exchange pursuant to the provisions of Rules 537 and/or Rule 539 can be 

submitted to arbitration through the American Arbitration Association or another 

arbitration program permitted by the CFTC Regulations. Such arbitration shall be 

conducted pursuant to the Rules and the rules of the arbitration Program.

(2) Claims Against the Clearing House

Claims against the Clearing House must be pursued pursuant to the rules of the Clearing 

House.

(c) Permissive Arbitrations.

The following may be submitted for arbitration through the American Arbitration Association

and, in the event such a claim is submitted against a Trading Privilege HolderParticipant, that 

Trading Privilege Holder Participant is required to arbitrate the dispute under these Rules, 

unless otherwise provided:

(1) claims of a Customer that is not a Trading Privilege Holder Participant against a Trading 

Privilege Holder Participant that relate to or arise out of any transaction on or subject to 

the Cboe Digital Exchange Rules;

(2) claims against a Trading Privilege Holder Participant pursuant to Rule 539;
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(3) claims of a Customer that is not a Trading Privilege Holder Participant against a Clearing 

Firm Member responsible for the performance of a Contract on or subject to the Cboe 

Digital Exchange Rules and/or against a Trading Privilege Holder Participant in connection 

with such a transaction; and

(4) at the discretion of the Chief Regulatory Officer, any claim involving the interests of the 

Exchange, its Trading Privilege HoldersParticipants, their business relations or commodity 

futures trading in general not otherwise arbitrable under these rules, provided the parties 

have consented to such arbitration.

(d) Waiver of Any Objection to Jurisdiction

Any Person who is not a Trading Privilege Holder Participant who submits a claim or grievance 

to arbitration or any Person who appeals any arbitration decision, or who takes any steps 

therein, shall be conclusively presumed to have voluntarily recognized and agreed to the 

jurisdiction of the American Arbitration Association to hear and determine the claim or appeal.

(e) Referral to the American Arbitration Association.

In the event that a complaint is received by the Exchange from a Customer, it shall be referred 

to the Market Regulation Department, which shall inform the Customer of the AAA’s arbitration 

program.

(f) Cboe Digital Exchange is adopting the AAA Commercial Arbitration Rules as set forth in the 

Rule 801. Any violation of the AAA Commercial Arbitration Rules shall be a violation of this 

Rule 801. 

RULE 802. Initiating an Arbitration Claim

(a) A claimant may initiate a claim by submitting the required documents and fees to the American 

Arbitration Association.

(b) A claimant shall provide notice of such arbitration claim to the Exchange. 

RULE 803. Certain Claims against the Exchange Involving Trading Systems 

or Services

(a) General. All claims arising out of or relating to the following matters shall be arbitrated in 

accordance with the rules of this Chapter:

(1) receipt of an incorrect Order status or the failure to have received an appropriate Order 

status; or

(2) the negligence of EMO Personnel or any other Exchange staff.
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Nothing in this Rule 803 or Rule 804 shall be construed to create a claim against the 

Exchange, to limit a defense available to the Exchange, or to obviate or modify any limitation 

of Exchange liability imposed by any other rule.

(b) Initial Liability Claim and Demand for Arbitration.

The initial claim of loss, including a detailed description of any loss suffered, must be made to 

the American Arbitration Association within ten business days of the date of the incident that 

caused the loss. 

(c) Related Claims. 

All claims arising out of the same system failure, event or alleged negligent act shall, to the 

extent practicable in the determination of the chairman, be consolidated for a single hearing.

(d) Award. 

(1) Any award by the American Arbitration Association shall be limited to the lesser of the 

actual loss or the loss that would have been incurred if the claimant had used its best 

efforts to mitigate the loss. Punitive damages, loss of profits, loss of use, and indirect, 

incidental or consequential damages shall not be awarded.

(2) The decision of a majority of the Arbitration Panel shall be final and binding, and there 

shall be no appeal to a hearing committee of the Exchange. A party may move, within 

three business days of the award, that the award be corrected to remedy any 

miscalculation or misdescription or where the award is otherwise imperfect in a matter of 

form not affecting the merits of the award.

(3) A Trading Privilege Holder Participant directed to pay an award shall submit payment of 

the amount due directly to the Trading Privilege Holder Participant receiving the award. 

An arbitration award must be satisfied within 15 days of receipt of the notice of decision. 

If a request is made to correct an award pursuant to Rule 803(d)(2), the award must be 

satisfied within 15 days of receipt of the corrected notice of decision.

(4) A Trading Privilege Holder Participant making payment must submit proof of payment to 

the Market Regulation Department no later than the business day following payment. 

(5) Any Trading Privilege Holder Participant that fails to pay an arbitration award or submit 

proof of payment to the Exchange within the time prescribed may be subject to Rule 304 

and to sanctions pursuant to Chapter 7.

(e) Satisfaction of Award by Exchange

(1) The Exchange shall satisfy any award against it subject to its limitation of liability rules and 

the rules respecting proration among claimants where damages allowed for a defined 

period of time exceed any limit imposed by Cboe Digital Exchange Rules. 
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(2) The Exchange may delay paying any award until such time as any applicable proration or 

limitation can be finally calculated.

RULE 804. Claims Relating to Trade Cancellations or Price Adjustments

All claims relating to price adjustments or trade busts pursuant to Rule 539 shall be arbitrated in 

accordance with this Chapter.
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CHAPTER 9: CLEARING

RULE 901. Clearing of Contracts

All Contracts shall be cleared through the Clearing House in accordance with the Clearing House 

Rules and in conformity with the Exchange rules specifically provided in this Chapter 9.

RULE 902. Criteria for Becoming a Clearing Firm Member

(a) Any Clearing Firm Member of the Clearing House authorized by the Clearing House under the 

Clearing House Rules may apply as a Clearing Firm Member Trading Privilege Holder of the 

Exchange. 

(b) Applicants for Clearing Firms Member of the Exchange must, in addition to the criteria set for 

in Rule 301, satisfy the following criteria: 

(1) be a Clearing Firm Member of the Clearing House in good standing 

(2) meet the minimum capital requirement as determined by the Clearing House and

(3) satisfy the Clearing Firm Member provisions set forth in Rule 903. 

(c) A Clearing Firm that seeks to effect transactions on the Cboe Digital Trading System for its 

own account or the account of its Customer must satisfy the provisions set forth in Rule 903(b), 

in addition to those set forth in Rule 902(b):

(d) The Exchange evaluates and monitors a Clearing MemberFirm’s compliance with the criteria 

set forth in this Rule 902. The Exchange, through its membership in the Joint Audit Committee 

evaluates and monitors a Clearing MemberFirm’s compliance with the criteria set forth in this Rule 

902.

(e) The Clearing House may assist the Exchange in evaluating and monitoring a Clearing 

MembersFirm’s compliance with these criteria. By becoming a Clearing FirmMember, a Clearing 

Firm Member and its Supervised Persons Related Parties agree to cooperate with the Exchange 

in any such monitoring.

(f) Authorized Clearing MemberFirms shall have the right to clear Contracts in accordance with 

the Clearing House Rules and the Cboe Digital Exchange Rules, as applicable. 

RULE 903. Clearing MemberFirm Application Process and Obligations

(a) A Clearing Firm Member of the Clearing House that desires to become a Clearing Firm 

Member Trading Privilege Holder shall complete the Trading Privilege Holder application process 

pursuant to Rule 302apply using the Exchange application form, providing the information, and 

following the procedures established by the Exchange. (b) In addition to the Trading Privilege 

Holder applicant requirements set forth in Rule 302, A a Clearing Firm Member that clears 

Contracts on behalf of a ParticipantTrading Privilege Holder(s) and that effects transactions for 

the Clearing Firm Member account and/or the Customer(s) of the Clearing Firm Member must:

(1) Register with the Exchange by submitting a Clearing Firm Agreement;

(2) Enter into an Cboe Digital Exchange User License Agreement;

(3) Enter into a User License Agreement with the Clearing House, if applicable;
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(4) Agree in writing to abide by the Rules of Cboe Digital Exchange and Applicable Law; 

(15) Agree to act as a Clearing MemberFirm for such ParticipantTrading Privilege 

Holder(s);

(26) Agrees that it will be financially responsible for (i) any transactions effected on Cboe 

Digital and for any use of the Cboe Digital Trading System made by Clearing FirmMember, 

Clearing Firm’s Member’s Authorized Traders, Participant Firm Trading Privilege Holder 

or Participant FirmTrading Privilege Holder’s Authorized Traders (ii) all Participant Trading 

Privilege Holder Oorders that are entered using User Firm IDs assigned by Cboe Digital 

Exchange and for clearing any trades that are matched as a result of such Oorders. 

Clearing Firm Member will be responsible to clear such trades even if the Oorders received 

via the Cboe Digital Trading System: (a) exceeded Clearing Firm’s Member’s credit 

parameters, (b) were entered as a result of a failure in the security controls and/or credit 

controls, other than due to the gross negligence of ErisCboe Digital, (c) were entered by 

an unknown or unauthorized user.

(37) Agree that it will accept full responsibility for any transactions effected on Cboe Digital 

Exchange and for any use of the Cboe Digital Trading System made by Clearing Firm 

Member or Clearing MemberFirm’s Authorized Traders.

(8) Maintain all required and necessary regulatory approvals and/or licenses to operate 

as a Clearing Firm or Authorized Trader on Cboe Digital Exchange, including any 

Introducing Broker, Futures Commission Merchant, Supervisory Person and/or 

Associated Person registrations and compliance with the minimum financial standards 

required under Applicable Law, as applicable.

(9) Employ practices to monitor and enforce compliance with risk limits for Participants;

(10) Provide such information and documentation as may be requested by the Exchange, 

and follow the procedures established by the Exchange, including any requirements set 

forth in Chapter 9. Additionally, any Clearing Firm organized or located outside of the 

United States shall enter into a written agreement acceptable to the Exchange appointing 

a third party as its U.S. agent for service of process for purposes of CFTC Regulation 

15.05, and shall provide the Exchange with a copy of the agreement; and

(411) If the Clearing MemberFirm is an FCM Clearing FirmMember, it must comply with 

the requirements set forth in CFTC Regulation 1.11 (Risk Management Program for 

futures commission merchants

(c) the Exchange decides to admit an applicant as a Clearing Firm, it shall promptly notify the 

applicant and state in such notice the date on which the applicant shall become a Clearing 

FirmMember(.

(cd) In addition to the reasons set forth in Rule 302(f), tThe Exchange may deny, condition or 

terminate the Clearing Firm Member status of any Person: 

(1) If such Person is unable to satisfactorily demonstrate its ability to satisfy the eligibility 

criteria to become or remain a Clearing FirmMember; or
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(2) If such Person is unable to satisfactorily demonstrate its capacity to adhere to all 

applicable Rules;

(3) If such Person would bring the Exchange into disrepute as determined by the 

Exchange in its sole discretion; or,

(4) for such other cause as the Exchange may reasonably determine.

(e) If the Exchange decides to decline or condition an application for admission as a Clearing 

Firm, or terminate a Person’s status as a Clearing Firm, the Exchange shall promptly notify such 

Person (the “Affected Person”) thereof in a writing sent to the address provided by the applicant 

in the Exchange application form or maintained in the Exchange registry of Clearing Firm. Such 

Affected Person may, within seven (7) calendar days, request in writing that the Exchange 

provide the reasons for the denial, conditioning or termination of Clearing Firm status. Within 

fourteen (14) calendar days after receiving such written request, the Exchange shall send a 

written response to the Affected Person setting forth the reasons for the denial, conditioning or 

termination. Within fourteen (14) calendar days of receiving the Exchange’s written response, 

the Affected Person may request in writing that the Exchange Participant Committee reconsider 

the determination.

(f) Within twenty-eight (28) calendar days of receiving either the request for reconsideration, the 

Exchange Participant Committee shall either confirm, reverse or modify the denial, conditioning 

or termination of the Affected Person as a Participant Firm, and shall promptly notify the 

Affected Person accordingly in writing. The Exchange Participant Committee may, within its 

discretion, schedule a hearing (in-person or by teleconference); request additional information 

from the Affected Person; or, establish any other process that it believes is necessary and 

appropriate to consider the request for reconsideration.

(g) The Exchange Participant Committee’s decision is the final action of the Exchange and is not 

subject to appeal within the Exchange.

(dh) the event of a default that occurs or has occurred in relation to a Clearing Firm Member 

with open positions in any Contract in a proprietary or customer account, each other Clearing 

Firm Member shall cooperate with the Clearing House, on a best-efforts basis, to accept the 

transfer of positions in such Contracts.

RULE 904. Clearing House Rules

(a) The clearing services provided by the Clearing House with respect to any Contract, and the 

rights and obligations of purchasers and sellers under cleared Contracts (including without 

limitation rights and obligations in respect of clearing and settlement, variation payments and 

performance at maturity), shall be governed by the Clearing House Rules, as applicable.
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(b) The Clearing House provides clearing and settlement services for the Contracts, including the 

risk management infrastructure. The Exchange conducts surveillance related to this Rule 

904.

(c) The Exchange may establish performance bond requirements from time as published by the 

Exchange in an Exchange Notice to Participants. Trading Privilege Holder Participants must 

call for Performance Bonds from their Customers and post performance bond with the 

Clearing House as set forth in the Clearing House Rules. All performance bond collateral 

must be in a form acceptable to the Clearing House pursuant to Clearing House Rules. 

(d) The Clearing House Rules shall prevail in the event of any conflict or inconsistency between 

the Rules and the Clearing House Rules with respect to any Clearing Member responsibilities 

or obligations under the Clearing House Rules. All Clearing Members are bound by the 

Clearing House Rules.

RULE 905. Other Clearing Organizations

Whenever the Exchange designates a clearing organization other than the Clearing House for 

the clearance of Contracts with respect to which there are open positions, each Clearing Firm 

Member shall, as of the close of business on the second Business Day prior to the effective date 

of such designation, either become a Clearing Firm Member of such successor clearing 

organization, or cause any such open Contracts carried by it either to be transferred to a Clearing 

Firm Member of such successor clearing organization or to be liquidated.

RULE 906. Settlement Prices

(a) The Exchange, in conjunction with the Clearing House, will determine the Settlement Price for 

Contracts. For each Contract, the Exchange shall publish a daily settlement price and 

information regarding volume, open interest and opening and closing ranges. 

(b) Unless specified in the terms of a Contract, the settlement price for all Exchange Futures 

Contracts based on Digital Currency Assets will be determined as follows:

(1) Based on the volume weighted average price of executed trades for the contract during 

the last ten (10) minutes of trading on each trading day, where the closing period will be 

broken down into two (2) distinct five (5) minute periods for which the volume weighted 

average price will be calculated and the average of the two (2) value weighted average 

prices will be the settlement price;

(2) If no trades occur during the last ten (10) minutes of trading, the last trade in the 

Exchange’s spot market during the same period for the relevant underlying Digital 

Currency Asset will be used and adjusted by the difference between the previous day spot 

closing price and the previous day futures closing price; or

(3) If no trade has occurred in the Exchange’s spot market during this period or in the event 

that the Exchange concludes that the settlement price determined in accordance with the 

foregoing does not fairly represent the market value of the period, the Exchange may 

determine an alternative settlement price. Such determination may be based upon, 

among other things, a third party or combination of third party index or reference prices.
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(c) Notwithstanding the foregoing, the Clearing House may modify Settlement Prices in its 

discretion in accordance with Clearing House Rules..

RULE 907. Clearing Fees

Clearing fees shall be assessed against a Clearing Firm Member or Participant Trading Privilege 

Holder for each side of a transaction traded on, cleared by or processed through the Clearing 

House or by the Participant Trading Privilege Holder as the Clearing House may from time to time 

prescribe. Such Clearing Fees may be separate from or incorporated into the Exchange Fees 

assessed pursuant to Rule 305.

RULE 908. Transfers of Trades

(a) Subject to the limitations of Rule 909, existing trades may be transferred either on the books 

of a Clearing Firm Member or from one Clearing Firm Member to another Clearing Firm 

Member provided: 

(1) the transfer merely constitutes a change from one account to another account, provided 

the underlying beneficial ownership in said accounts remains the same; or 

(2) an error has been made in the clearing of a trade and the error is discovered and the 

transfer is completed within two business days after the trade date.

(b) Subject to the limitations of Rule 909, the Exchange Officials may, upon request by the 

Clearing FirmMember(s), approve a transfer of existing trades either on the books of the same 

Clearing FirmMember, or from the books of one Clearing Firm Member to the books of another 

Clearing Firm Member if the transfer is in connection with, or as a result of, a merger, asset 

purchase, consolidation or similar non-recurring transaction between two or more entities 

where one or more entities become the successor in interest to one or more other entities.

(c) The Exchange Officials may, with the consent of the Clearing FirmMember(s) involved, permit 

the transfer of existing trades if, in the opinion of the Exchange Officials, the situation so 

requires and such transfer is in the best interests of the Exchange.

(d) Provided that the transfer is permitted pursuant to Sections (a), (b) or (c) above, the 

transactions must be recorded and carried on the books of the receiving Clearing Firm 

Member at the original trade dates. Futures transactions may be transferred using either the 

original trade price or the most recent settlement price; Options transactions may be 

transferred using either the original trade price or a trade price of zero.

(e) All transfers shall be reported to the Clearing House in a form acceptable to the Exchange for 

the type of transactions involved. The proper indicator must be included in the transfer such 

that the transactions, including the transaction(s) to reverse an error, clear as transfers. The 

Clearing Firms Members involved shall maintain a full and complete record of all transactions 

together with all pertinent memoranda.

RULE 909. Concurrent Long and Short Transactions
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Set forth below are the procedures that must be followed for concurrent long and short positions 

and hold-open accounts.

(a) Concurrent long and short positions in the same commodity and month may be held by a 

Clearing Firm Member at the direction of a Customer or on behalf of an omnibus account; 

however it shall be the duty of the Clearing Firm Member to ascertain whether such positions 

are intended for offset or to be held open prior to final transmission of position data to the 

Clearing House.

(b) Clearing Firms Members which, pursuant to this rule, carry concurrent long and short 

positions, must report to the Exchange both sides as open positions. 

(c) The Exchange takes no position regarding the internal bookkeeping procedures of its Clearing 

Firms Members which, for the convenience of a Participant Trading Privilege Holder or 

Customer, may “hold open” a position only on their books. However, the Clearing Firm 

Member must accurately report to the Exchange and the Clearing House, as appropriate, 

large trader positions, long positions eligible for delivery and open interest.

RULE 910. Substitution

For a Transaction that is both executed and submitted to the Clearing House in accordance with 

the rules governing such Transaction, the Clearing House shall, through the process of novation, 

be substituted as, and assume the position of, seller to the buyer and buyer to the seller of the 

relevant number of Contracts once the Transaction is accepted at the Clearing House pursuant 

to the Clearing House Rules and the Clearing House Manual of Operations; provided, however, 

that the timing of the clearing guarantee for tTransactions pursuant to Rule 601 (Block Trades), 

Rule 6023 (Exchange of Derivatives for Related Positions), and Rule 908 (Transfers of Trades) 

shall be subject to terms for privately negotiated trades pursuant to the Clearing House rules.

Upon such substitution, each Clearing Firm Member shall be deemed to have bought the 

contracts from or sold the contracts to the Clearing House, as the case may be, and the Clearing 

House shall have all the rights and be subject to all the liabilities of such Clearing Firm Member 

with respect to such transaction. Such substitution shall be effective in law for all purposes.

RULE 911. Policy on Division or Similar Events Involving Digital 

CurrencyAssets

In the event that there is, or there is expected to be, a change to the relevant operating rules, 

protocols, processes, or standards applicable to a Digital Currency Asset underlying a Contract 

offered by the Exchange, including a so-called hard fork, user activated soft fork, or other event 

that results in split or division of the Digital Currency Asset into multiple assets, a substitution, 

replacement, conversion or exchange of the Digital Currency Asset into or for another asset, a 

restriction on the transfer of the Digital Currency Asset (e.g.; a lock-up or freeze), or a distribution 

of any asset to existing holders of the Digital Currency Asset (including a so-called airdrop), the 

Exchange shall have the discretion to take action in consultation with Trading Privilege Holders

Participants to align the exposures of Persons having positions in the relevant Digital Currency 
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Asset Contracts with the cash market exposures or to otherwise address such events, as 

appropriate. Appropriate action may include revising delivery obligations under the Contract, 

providing for cash adjustments, and/or assigning newly listed Contract positions to such Persons. 

Among other things, the Exchange will take into consideration whether any resulting asset, 

substitution, replacement, conversion or exchange described in this paragraph continues to be a 

commodity subject to the Commodity Exchange Act, or is subject to the Securities Act of 1933 or 

any other law or regulation.

RULE 912. Clearing Member Guarantees and Clearing Corporation Restrictions

(a) Each Trading Privilege Holder shall provide to the Exchange a letter of guarantee from a 

Clearing Member, in a form and manner prescribed by the Exchange, for the Trading 

Privilege Holder’s trading activities in Exchange Contracts and access to the Exchange. 

This requirement shall be applicable to all Trading Privilege Holders, including all Clearing 

Members. Accordingly, each Clearing Member must provide to the Exchange a letter of 

guarantee from that Clearing Member, in a form and manner prescribed by the Exchange, 

for the Clearing Member’s trading activities in Exchange Contracts and access to the 

Exchange. A Clearing Member shall guarantee and assume financial responsibility for all 

Exchange Contracts of each Trading Privilege Holder guaranteed by it, and shall be liable 

for all transactions of that Trading Privilege Holder in Exchange Contracts, in accordance 

with the applicable letter of guarantee. 

(b) A Trading Privilege Holder may not engage in any trading activities in Exchange Contracts 

or access the Exchange if an effective letter of guarantee required to engage in those 

activities or to receive that access is not on file with the Exchange. If a Trading Privilege 

Holder does not have an effective letter of guarantee on file with the Exchange, the 

Exchange may prevent access and connectivity to the Exchange by that Trading Privilege 

Holder.

(c) Letters of guarantee filed with the Exchange shall remain in effect until a written notice of 

revocation has been filed with Cboe Digital Membership Services in a form and manner 

prescribed by the Exchange and the revocation becomes effective or until such time that 

the letter of guarantee otherwise becomes invalid pursuant to the Rules of the Exchange. 

A written notice of revocation shall become effective as soon as the Exchange is able to 

process the revocation. A revocation shall in no way relieve a Clearing Member of 

responsibility for transactions guaranteed prior to the effectiveness of the revocation.

(d) If the Clearing House restricts the activities of a Clearing Member or suspends a Clearing 

Member as a Clearing Member of the Clearing House, the Exchange may take action as 

necessary to give effect to the restriction or suspension. For example, if the Clearing 

House restricts transactions cleared by a Clearing Member to “closing only” transactions, 

the Exchange may similarly restrict transactions on the Exchange for clearance by that 

Clearing Member as a Clearing Member of the Clearing House to “closing only” 

transactions. Similarly, if the Clearing House suspends a Clearing Member, the Exchange 

may prevent access and connectivity to the Exchange by the suspended Clearing 

Member.
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(e) If requested to do so by the Clearing House, the Exchange may cancel all Orders in 

relation to a Clearing Member and all Orders of any Trading Privilege Holder submitted 

with a FIRM code that is linked to that Clearing Member.

(f) If a Clearing Member’s status as a Clearing Member of the Clearing House or as a Trading 

Privilege Holder is terminated, all letters of guarantee on file with the Exchange from that 

Clearing Member shall no longer be valid, effective as soon as the Exchange is able to 

process the invalidation of these letters of guarantee.

(g) If a Clearing Member has been suspended as a Clearing Member of the Clearing House 

or as a Trading Privilege Holder, all existing letters of guarantee and authorization from 

that Clearing Member shall be invalid during the period of the suspension, effective as 

soon as the Exchange is able to process the invalidation of those letters of guarantee. 

(h) The invalidation of a letter of guarantee shall in no way relieve the Clearing Member that 

issued the letter of guarantee of responsibility with respect to transactions guaranteed 

prior to the effectiveness of the invalidation. 

(i) If a Trading Privilege Holder does not have a required letter of guarantee for a period of 

ninety consecutive days, the Trading Privilege Holder’s Trading Privileges and status as 

a Trading Privilege Holder shall automatically be terminated. 
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CHAPTER 10: MISCELLANEOUS

RULE 1001. Exchange personnel – Trading and Misuse of Material NonPublic Information

(a) Except as provided by Rules 1001(c) and 1001(d), Officers and Exchange employees are 

prohibited from buying or selling, directly or indirectly, any Contracts traded on or cleared by 

a Contract Market, swap execution facility or Derivatives Clearing Organization, or on any 

non-U.S. derivatives exchange or board of trade listing products substantially similar to the 

Contracts.

(b) The Chief Executive Officer may exempt, in whole or in part, an Officer and Exchange 

employee from the prohibitions of Rule 1001(a), if such Officer and Exchange employee 

applies in writing for an exemption and demonstrates to the satisfaction of the Chief Executive 

Officer that the Officer and Exchange employee meets all of the following criteria:

(1) the Officer and Exchange employee does not have access to material, non-public 

information in the course of his or her employment;

(2) the Officer and Exchange employee agrees to provide the Exchange with account 

statements and other documents relevant to the Exchange Official’s buying and selling of 

Futures Contracts directly or indirectly; and,

(3) the Officer and Exchange employee agrees to inform the Chief Executive Officer in writing 

of any material change that may affect the Exchange Official’s qualification for an 

exemption within one (1) Business Day of the change.

(c) With the Chief Executive Officer’s written approval, Rule 1001(a) does not prohibit an Officer 

and Exchange employee from participating in a pooled investment vehicle or other investment 

vehicle whose investments are directed by a third-party advisor if the Exchange Official has 

no direct or indirect control over transactions executed by the investment vehicles.

(d) Exchange Officials, agents and independent contractors of the Exchange are prohibited from 

disclosing material, non-public information obtained as a result of his or her employment, 

agency relationship or engagement with the Exchange where the Exchange Official, agent or 

independent contractor expected or should have reasonably expected that the information 

disclosed may assist a Person in trading any Contract, any Contract traded on another 

exchange, or any related underlying commodity or security.

(e) Rule 1001(d) shall not prohibit an Exchange Official, agent or independent contractor of the 

Exchange from disclosing material, non-public information while discharging his or her official 

duties and responsibilities, including disclosures to another Self-Regulatory Organization, 

linked exchange, court of competent jurisdiction, or a representative of any agency or 

department of the federal or state government.
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(f) For the purposes of this Rule 1001, the terms “material information,” “non-public information,” 

“linked exchange,” and “pooled investment vehicle” each shall have the meaning set forth in 

CFTC Regulation 1.59(a).

RULE 1002. Gifts and Gratuities

Except as permitted in writing by the Chief Executive Officer, no Trading Privilege Holder

Participant shall, directly or indirectly, give or permit to be given anything of value, including gifts 

and gratuities, in excess of one hundred dollars ($100) per individual per year to an Exchange 

Official. 

RULE 1003. Market Data

(a) All Trading Privilege Holders Participants and all employees, agents, vendors, and other 

Persons affiliated with the foregoing understand and acknowledge that the Exchange has a 

proprietary interest in:

(1) the price and quantity data from each and every transaction executed on the Cboe Digital

Trading System, including the time at which the transaction was executed by, or submitted 

to, the Cboe Digital Trading System;

(2) the price and quantity data for each and every bid and offer submitted for entry into the 

Cboe Digital Trading System, including the time at which the bid and offer was entered 

into the Cboe Digital Trading System;

(3) the Daily Settlement Price of each Contract;

(4) any data and information derived from (i), (ii) and (iii) and the format and presentation 

thereof; and

(5) the transmissions and dissemination of the data and information to Trading Privilege 

Holders Participants any publisher of the data or information with whom the Exchange has 

a written agreement, and any other Persons.

(b) Trading Privilege Holders Participants may not distribute, sell or retransmit information 

displayed on the Cboe Digital Trading System to any third party. Notwithstanding the 

foregoing, Trading Privilege HoldersParticipants may distribute, sell or retransmit market data 

pursuant to a duly executed market data agreement.

RULE 1004. Extension or Waiver of Rules

If necessary and expedient, the Exchange may, in its sole discretion, waive, or extend the time 

period for performing, any act or acts designated by the Cboe Digital Exchange Rules, but only 

to the extent such waiver or extension is not inconsistent with the CEA or the CFTC Regulations.

RULE 1005. Effect of Amendment, Repeal or New Rule

(a) If an amendment or repeal of a Cboe Digital Rule or adoption of a new Cboe Digital Rule does 

not materially change the terms or conditions of a Contract and does not affect the value of 

open Contracts, then the effective date of any amendment or repeal of a Cboe Digital Rule or 
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adoption of a new Cboe Digital Rule relating to Contracts is binding on all Contracts entered 

into before and after the effective date of such amendment, repeal or adoption.

(b) If an amendment or repeal of a Cboe Digital Rule or adoption of a new Cboe Digital Rule 

materially changes the terms or conditions of a Contract or affects the value of open Contracts, 

then the amendment, repeal or new Cboe Digital Rule is binding only on Contracts listed for 

trading after the effective date of such amendment, repeal or adoption, and Contracts listed 

as of the effective date of such amendment, repeal or adoption with no open positions then in 

existence, unless otherwise specifically provided by the Board.

RULE 1006. Governing Law, Jurisdiction and Dispute Resolution

(a) The law of the State of Illinois governs the Cboe Digital Exchange Rules.

(b) Any dispute between the Exchange and a Trading Privilege Holder Participant arising from or 

in connection with the Cboe Digital Exchange Rules must be brought to arbitration through 

the AAA arbitration program or another arbitration program permitted by the CFTC 

Regulations within two (2) years from the occurrence of the event giving rise to the dispute. 

This Rule shall in no way create a cause of action nor authorize an action that would otherwise 

be prohibited by the Cboe Digital Exchange Rules.

(c) Any dispute between the Exchange and a Trading Privilege Holder Participant arising from or 

in connection with the Cboe Digital Exchange Rules will be settled by arbitration administered 

through the AAA arbitration program or another arbitration program permitted by the CFTC 

Regulations. Each party to the dispute will bear its own costs and expenses in connection 

with any arbitration hereunder, as well as an equal share of the administrative fees and the 

fees of the arbitrator; provided, however, that the arbitrator will be entitled to include in any 

award a full reimbursement for the prevailing party’s costs and expenses, such party’s share 

of the administrative fees and the fees of the arbitrator, or any combination of any or all of the 

above. In the event that this Rule 1006(c) is held to be unenforceable in connection with any 

dispute, (i) exclusive jurisdiction for any such dispute will reside in any state or federal court 

sitting in the Chicago, IL metropolitan area, (ii) the Exchange and the Trading Privilege Holder

Participant involved in the dispute will be presumed to have submitted to the personal 

jurisdiction of any such court, and (iii) an action to enforce any judgment or decision of such 

court may be brought in the same court or in any other court with jurisdiction or venue. Finally, 

all Clearing MemberFirms or Trading Privilege Holders Participants unconditionally and 

irrevocably waive any and all right to trial by jury in connection with any such dispute.
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CHAPTER 11: CONTRACT SPECIFICATIONS

RULE 1101. Bitcoin Futures

Bitcoin Futures

Description A fully funded physically settled futures contract for Bitcoin

Contract 

Symbol BTC

Contract Size 0.1 Coin

Price 

Quotation USD per 1 coin

Minimum 

Price 

Increment

$1.00 per Bitcoin ($0.10 per contract)

Listed 

Contracts

Up to 5 Daily expirations, 4 Weekly expirations, nearest 2 serial months and 

nearest 2 quarterly months.

Settlement Physical Delivery

Trading Hours Regular Trading Hours as determined by the Exchange from time to time.

Daily Closing 

Time 16:00 (CT)

Last Trading 

Day/Time

Daily - 10:00 (CT) of the expiry day

Weekly - 10:00 (CT) Friday* of the expiry Week

Monthly - 10:00 (CT) Last Friday* of the contract month

* Preceding business day if day falls on a non-business day

Block Trade 

Minimum 10 Contracts

Position Limit 200,000 Contracts

Large Trader 

Reporting 25 Contracts

Collateral 

Withheld

Buyer: No. of Contracts * Contract Size * Trade Price

Seller: No. of Contracts * Contract Size

Delivery

Pursuant to the Cboe Clear Digital rulebook, purchase price of the future and 

the underlying deliverable commodity are deposited with the Clearinghouse 

(in accordance with Cboe Clear Digital Rules 403 and 315) by the buyer and 

seller, respectively, prior to the futures trade. Therefore, delivery is made 

through the Clearinghouse to the buyer’s account. Further information about 

delivery can be found in Cboe Clear Digital Rule 410. 

Forks Support for forks in the underlying product will be evaluated in accordance 

with the Cboe Digital Fork Policy 
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RULE 1102. Ether Futures

Description A fully funded physically settled futures contract for Ether

Contract Symbol ETH

Contract Size 1 Coin

Price Quotation USD per 1 coin

Minimum Price Increment $0.10 per Ether ($0.10 per contract)

Listed Contracts Up to 5 Daily expirations, 3 Weekly expirations, nearest 2 serial 

months and nearest 2 quarterly months.

Settlement Physical Delivery

Trading Hours Sunday - Friday, 17:00 – 16:00 (CT)

Daily Closing Time 16:00 (CT)

Last Trading Day/Time

Daily - 10:00 (CT) of the expiry day

Weekly - 10:00 (CT) Friday* of the expiry Week

Monthly - 10:00 (CT) Last Friday* of the contract month

* Preceding business day if day falls on a non-business day

Position Limit 75,000

Large Trade Reporting 25 Contracts

Collateral Withheld Buyer: No. of Contracts * Contract Size * Trade Price

Seller: No. of Contracts * Contract Size

Delivery

Pursuant to the Cboe Clear Digital rulebook, purchase price of 

the future and the underlying deliverable commodity are 

deposited with the Clearinghouse (in accordance with Cboe Clear 

Digital Rules 403 and 315) by the buyer and seller prior to the 

futures trade. Therefore, delivery is made through the 

Clearinghouse to the buyer’s account. Further information about 

delivery can be found in Cboe Clear Digital Rule 410.

Forks Any forks in the underlying blockchain for the digital asset will be 

evaluated in accordance with Exchange Rule 911.
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RULE 1103. Ether Bitcoin Futures

Description A fully funded physically settled futures contract for the Ether Bitcoin 

Pair

Contract Symbol ETBT

Contract Size 1 ETH

Price Quotation BTC equivalent of 1 ETH

Minimum Price Increment 0.00001 Bitcoin

Listed Contracts Up to 5 Daily expirations, 3 Weekly expirations, nearest 2 serial 

months and nearest 2 quarterly months.

Settlement Physical Delivery

Trading Hours Sunday 17:00 – Friday 16:00 (CT)

Daily Closing Time 16:00 (CT)

Last Trading Day/Time

Daily - 10:00 (CT) of the expiry day

Weekly - 10:00 (CT) Friday* of the expiry Week

Monthly - 10:00 (CT) Last Friday* of the contract month

* Preceding business day if day falls on a non-business day

Position Limit 75,000

Large Trade Reporting 25 Contracts

Collateral Withheld Buyer: No. of Contracts * Contract Size * Trade Price

Seller: No. of Contracts * Contract Size

Delivery

Pursuant to the Cboe Clear Digital rulebook, purchase price of 

the future and the underlying deliverable commodity are 

deposited with the Clearinghouse (in accordance with Cboe 

Clear Digital Rules 403 and 315) by the buyer and seller prior to 

the futures trade. Therefore, delivery is made through the 

Clearinghouse to the buyer’s account. Further information 

about delivery can be found in Cboe Clear Digital Rule 410.

Forks Any forks in the underlying blockchain for the digital asset will 

be evaluated in accordance with Exchange Rule 911.