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Cantor Futures Exchange, L.P. 

C.F.T.C. Rule 40.6 Submission

Certification of Rule Amendments

January 29, 2015

1. The text of the rule changes to the Cantor Futures Exchange, L.P. Rulebook is attached. 

Additions are underlined and deletions are stricken through. This rule has been approved by 

Cantor Futures Exchange, L.P. Capitalized terms, unless otherwise defined herein shall possess 

the meaning(s) ascribed in the Cantor Futures Exchange, L.P. Rulebook.

2. The proposed effective date is ten business days after receipt by the Commodity Futures 

Trading Commission of this submission. 

3. No opposing views were expressed with respect to the proposed rule changes by 

governing board or committee members or market participants.

___________________________________________________________________________________

EXPLANATION AND ANALYSIS OF THE OPERATION, PURPOSE AND EFFECT OF 

THE PROPOSED RULE AND ITS COMPLIANCE WITH APPLICABLE PROVISIONS 

OF THE ACT

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

as a Designated Contract Market,1each Participant trading on the Exchange trades for its own 

account and carries such positions in its own name (i.e., “self-clears”). CX is amending Chapters 

I and III in the Exchange’s Rulebook (also referred to herein as “Exchange Rules”) to address 

situations wherein a Participant on the Exchange opens an account or trades as a result of a

solicitation from another person. This referring relationship may include certain software, 

technical or other additional services. It is important to note that nothing in this rule amendment 

modifies the relationship between a Participant and the Exchange—the Exchange permits 

Participants to trade and clear only for the Participant’s own proprietary account. Accordingly, 

the functions of a person that refers a Participant to the Exchange do not alter the Exchange’s 

fundamental nature as a non-intermediated market and, for the reasons detailed below, are in 

accordance, and consistent, with the Exchange’s Designation Order. 

The purpose for these rule amendments is to clarify the functions that such referring persons may 

perform in connection with the non-intermediated nature of the Exchange and to make clear that 

the Exchange may exercise jurisdiction over such referring persons in connection with those 

 

1 Order of Designation Of Cantor Futures Exchange, L.P. as a Designated Contract Market, (April 20, 2010) , found 

at http://sirt.cftc.gov/SIRT/SIRT.aspx?Topic=TradingOrganizationsAD&Key=16669 (“Designation Order”).
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limited functions and thereby clarify the circumstances and requirements for such activity 

consistent with the Exchange’s Designation Order. 

Rule III-11 defines a new category of Participant, specifically a “Referring Participant.” The 

purpose of this rule amendment is to ensure that CX rules and jurisdiction apply to anyone that 

solicits another person to become a CX Participant. For the avoidance of doubt, the definition 

makes clear that the Referring Participant’s activities include solicitation of the Referred 

Participant but not entering orders into the Trading System on behalf of the Referred Participant. 

Referring Participants also may provide software, technical or other services to the referred 

Participant. These types of services--customized front-end trading screens, customized display 

of trading reports, such as risk alerts and enhanced market reports and analytics may be provided 

to Referred Participants on an on-going basis. These services may be provided as a package of 

services along with the solicitation to the Referred Participant. Solicitations may include a 

solicitation initially to become a Referred Participant as well as subsequent solicitations to trade. 

To become a Referring Participant a person must complete an application form and provide such 

additional information as may be required by the Exchange, including any additional information 

or materials to demonstrate the Person’s ability to operate as a Referring Participant. For 

example, Referring Participants that provide technical services are required to demonstrate 

technical and operational capabilities that are compatible with the electronic nature of CX.

Rule III-11 establishes the procedure whereby the Exchange may grant permission to an 

applicant to act as a Referring Participant. Such permission may be denied or conditioned for 

failure by the Referring Participant to meet any of the conditions or for a variety of other reasons 

specified in the Exchange Rules. The addition of the Referring Participant category to Exchange 

Rules is in accordance with Core Principle 2. All CX Participants expressly agree to be bound 

by the Exchange Rules in the documentation supporting their respective Participant Applications, 

and such obligation is expressly delineated in the Exchange’s Rulebook. Because Referring 

Participants under the rules of the Exchange will be required to become a Participant of the 

Exchange, they are subject to Exchange rules, jurisdiction, and discipline and thus all Exchange 

Rules apply to them. 

Furthermore, new Rule III-11 requires a Referring Participant, if so required by applicable law,

to be registered in an appropriate registration category. That registration category likely will be 

“introducing broker.” CX expects that most, if not all, Referring Participants will register as an 

“introducing broker.” In this regard, the category of IB is appropriate insofar as the Referring 

Participant may be conducting solicitation activities, but do not accept any customer funds. See

Section 1a(31) of the Commodity Exchange Act, 7 U.S.C. §1 et seq. However, CX rules do not 

foreclose persons from applying for Referring Participant status that are not so registered. For 
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example, a person that only offers technical access services may conclude that it is not required 

under applicable law to register as an IB to offer such services, but nevertheless may become a 

Referring Participant under Exchange Rule III-11.2 Whether or not the Referring Participant is 

required to be registered in some capacity, its functions in relation to the Exchange are limited by 

Exchange rule, and do not alter the essential nature of the Exchange as a non-intermediated

Exchange.

In order to comply with CX’s Order of Designation, the Exchange Rules do not permit a 

Referring Participant to accept orders on behalf of any Participant, including as the Authorized 

Trader3of a Referred Participant. Only Participants, including Referred Participants, may enter

orders into the Exchange.4That is, the Exchange retains a direct relationship to each Referred 

Participant irrespective of whether the Referred Participant, or his or her trade, has been solicited

by a Referring Participant.

The direct nature of the relationship between the Exchange and the Referred Participant is built 

into the Exchange’s trading architecture. With respect to a Referred Participant, like any 

Participant, access to the CX Trading System comes directly from the Referred Participant’s 

device, whether a mobile device, desktop computer or lap-top computer. The connection with 

CX is through the Referred Participant’s internet carrier. The Referring Participant, as a business 

matter, may provide a number of additional services that are unrelated to its solicitation 

activities, but which provide the Referred Participant with additional value. These possibly 

include a customized front- end computer screen, enhanced position and risk reports, additional 

market reports, data analytics and other services. 

Trade confirmations are sent directly from the Exchange to the Referred Participant’s device 

using the internet connection of the Referred Participant. In addition, the Exchange sends endof-day statements directly to the Referred Participant via email. Just as with the provision of a 

customized front-end provided by the Referring Participant to the Referred Participant, the 

presentation or look of confirmation information on the Referred Participant’s device may be 

altered by customized software that the Referring Participant has made available to the Referred 

Participant’s device. But there should be no doubt that the confirmation signals come directly to 

the Referred Participant’s device from the Exchange. 

 

2

See, e.g., CFTC Letter No. 08-12 (July 10, 2008). Although the facts of this, and similar letters, do not address the 

activities of a software company in the context of the Exchange, the Exchange recognizes the possibility that a 

person offering similar software services to a CX Participant as that discussed in Letter No. 08-12 may be included 

within Rule III-11. 

3 Under CX Rule III-2, each Participant that is an entity must appoint one or more natural person to act as its 

Authorized Trader and a natural person may act as his or her own Authorized Trader. 

4

They do so through their Authorized Traders.
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In addition, the Referring Participant, with the explicit consent and permission of the Referred 

Participant, may receive a drop copy of the Confirmation from CX. The Referring Participant is 

able to use the information from the drop copy to provide enhanced reports or analytics to the 

Referred Participant. As explained, these additional software and analytic services are in 

addition to the solicitation activities of the Referring Participant. In no event do any of these

services offered by the Referring Participant alter the fact that it is the Referred Participant that 

enters Orders directly into his or her own device (smart-phone, desk-top or lap-top computer) 

and that the Referred Participant’s order signal travels through the Referred Participant’s internet 

connection directly to CX. Accordingly, the Referring Participant never touches the Order nor 

does the Referring Participant transmit the Order to CX on behalf of the Referred Participant in 

any manner. 

Because a Referring Participant’s activities may involve solicitation of Referred Participants or 

their Orders, CX has included a requirement that Referring Participants must maintain funds on 

deposit with the Exchange at a level to be determined in the Exchange’s discretion. Such funds 

shall be available to the Exchange for the payment of any penalties or fines assessed by the 

Exchange and shall be returnable to the Referring Participant. Such a deposit serves the purpose 

of ensuring that there will be assets readily available to satisfy Exchange penalties or customer 

arbitration awards relating to a Referring Participant’s activities on the Exchange.

Typically, IBs are compensated by their customer. However, futures exchanges have 

traditionally provided fee rebates and other incentives to customers that have flowed through 

third parties such as FCMs. Recognizing that CX is a non-intermediated exchange, Rule III-11 

provides that CX may compensate Referring Participants for their referral activities. The written 

disclosure of such payments is provided by the Exchange to all referred Participants. Consent by 

a referred Participant to the referral relationship is also duly obtained by the Exchange. Rule III11 further requires that the Referring Participant identify to the Exchange that it has referred a

Participant. 

Taken in their entirety, the amended rules above are intended to clarify that no person may be 

compensated for soliciting accounts or orders unless that person is a Referring Participant of the 

Exchange and properly registered or exempt from registration with the NFA.

No other change in the Exchange Rules or its operations is implicated by these amendments.

The Role of Referring Participant is In Accordance with CX’s Order of Designation 

The inclusion of Referring Participants as a separate class of Participant does not alter the 

fundamental, non-intermediated nature of the Exchange and is in accordance with CX’s Order of 

Designation, both generally and with respect to each of its specific provisions. The 

Commission’s Order of Designation states that,
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IT IS FINALLY ORDERED, in consideration of Cantor's status as a non-intermediated market, 

that this designation as a contract market shall be subject to Cantor's compliance with 

representations it made to the Commission in its application:5

This statement is followed by ten specific undertakings of the Exchange. The Commission’s 

Designation Letter stated similarly that the Exchange “will operate as a non-intermediated 

market and that its members will also be members of the Cantor Clearinghouse.”6 

A “Referring Participant” does not intermediate trading

In providing for Referring Participants, CX will continue to operate in accordance with the 

requirements of the Commission’s Designation Order and with the Designation Letter’s 

requirement that the Exchange operate as a “non-intermediated market.” Nothing in the rules 

providing for a Referring Participant alters CX’s continuing adherence to the requirements of its 

Designation Order that it operate as a “non-intermediated market.” As prior to the amendments, 

CX maintains a direct relationship with each Participant and each Participant trades (and clears) 

on CX as a principal, regardless of whether such Participant has been referred to the Exchange. 

“Intermediation” is undefined in the Commodity Exchange Act or Commission rules. However, 

in common usage, “intermediation” is thought to refer to the carrying of a customer account. 

This may be a firm acting as an agent of its customer with respect to trade execution or to 

clearing the customer’s position as agent and guarantor. In either case, the intermediated

customer does not have a direct relationship with the exchange or the clearinghouse; instead the 

customer gains access to the exchange or clearinghouse through its intermediary agent. Thus, an 

intermediated market is one where a customer’s position on the exchange and at the 

clearinghouse is carried by another, its intermediary. 

In contrast, no such “intermediated” relationship exists on CX. CX maintains a direct 

relationship with each and every trader on CX, who, in order to execute and clear transactions, 

must become a Participant of the Exchange and the clearinghouse. In its application for contract 

market designation, CX stated that the “Exchange will be a direct access Exchange only, and 

Participants will therefore not execute or clear transactions as agent for others.”7 Nothing in the 

amended rules would change this relationship. 

 

5 Designation Order at page 4 (emphasis added).

6

Id. at p. 3 (emphasis added). 

7 Cantor Designated Contract Market Regulatory Compliance Chart at 9, found at: 

http://sirt.cftc.gov/SIRT/SIRT.aspx?Topic=TradingOrganizationsAD&Key=16669
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Thus, regardless of the existence and operation of a Referring Participant, each Participant must 

maintain a proprietary account with CX, trading and clearing for its own account and each such 

Participant carries its own positions in its own name with both the Exchange and its 

clearinghouse. Because nothing in the amended rules affects the structure of the Exchange, 

which does not permit intermediaries to enter orders or carry the accounts of non-member 

customers, the essential relationship between a Participant and the Exchange is unchanged by the 

rule amendments. 

The Exchange remains in compliance with its Order of Designation

As noted above, the Commission’s Order of Designation provides that CX shall be subject to ten 

specific representations that it made in its application for designation “in consideration of 

Cantor’s status as a non-intermediated market.” It is reasonable, in light of the absence of a 

definition of “non-intermediated market” that these specific requirements describe how CX shall 

operate as a non-intermediated exchange under its Designation Order. As detailed below, the 

amended rules in no way affect the Exchange’s continued ability to comply with these specific 

requirements attendant upon a “non-intermediated” market. We assume that it is reasonable to 

conclude that the Commission included these requirements that a non-intermediated market must 

undertake either because there is not a traditional intermediary to carry out these responsibilities 

or they are protections that are necessary because the market is acting in place of an 

intermediary. Conversely, because Referring Participants have not altered the essential nature of 

the Exchange as a non-intermediated market, they cannot fulfill any of these requirements for the 

Exchange or relieve it of any of these obligations. The specific provisions are as follows:8

Cantor will provide Participants on the Cantor Exchange with order 

confirmations of each executed transaction and with monthly account statements;

Under the amended rules, CX continues to provide Participants with the official order 

confirmations of each executed transaction and with monthly account statements. The Exchange 

issues these statements directly to all of its Participants, regardless of whether the Participant has 

been referred to the Exchange. Nothing in the Exchange rules or procedures provides that a 

Referring Participant may provide confirmations or account statements to a Participant on behalf 

of the Exchange. We note that Referring Participants are not prohibited from using such 

Exchange confirmations and account statements to provide referred Participants with customized 

reports.

 Cantor will provide large trader reports to the Commission in accordance with 

Commission regulation;

 

8

See Designation Order at p. 4.
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The Exchange continues to provide large trader reports to the Commission. There is no 

intermediary to supply such reports. Accordingly, they are provided by the Exchange. Please 

note that this undertaking is in accordance with Commission Rule 17.00(i) which provides that 

“reporting markets that list exclusively self-cleared contracts shall meet the requirements of . . . 

[the rule] as they apply to trading in such contracts by all clearing members, on behalf of all 

clearing members.” 

Cantor will maintain funds of Participants in bank accounts that will be 

segregated at all times in accordance with the Commission’s regulations;

The Exchange undertakes to segregate funds for its Participants because there is no intermediary 

to hold segregated customer funds; the Exchange and its clearinghouse fulfills this function. 

This continues under the amended rules. Moreover, Referring Participants do not have any 

involvement with CX Participant funds. 

Cantor will not cheat, defraud or deceive, or attempt to cheat, defraud or 

deceive, any Participant of the Cantor Exchange or Cantor Clearinghouse;

The duty not to cheat another is a universal duty, and does not raise a particular issue in 

defining whether the market is non-intermediated. 

Cantor will not bucket a Participant’s order or engage in a business that is of the 

nature of a bucket shop;

The prohibition on bucketing is grounded in the prohibition of an intermediary failing to 

execute its customer’s trades on the exchange. The Exchange, because there is no 

intermediary, is therefore required to ensure that orders submitted to CX are actually 

executed on the Trading System and not matched outside of the exchange facility. On the 

other hand, this provision cannot be applicable to a Referring Participant because each 

Participant enters its own orders and the Referring Participant is prohibited from entering 

an order on behalf of a Referred Participant. Accordingly, a Referring Participant never 

touches an order on behalf of a Referred Participant and therefore would never be in a 

position to be able to bucket a transaction. 

Cantor will not willfully make or cause to be made to a Participant a false 

report, or willfully enter or cause to be entered for a Participant a false record, in 

or in connection with any contract traded on the Cantor Exchange or cleared 

through Cantor Clearinghouse;

This undertaking acknowledges that the Exchange is acting in the stead of a market 

intermediary; accordingly, it is the Exchange—a non-intermediated market—which 
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makes reports and records on behalf of its Participants. Nothing in the amended rules 

alters that relationship. 

Cantor will not disseminate, or cause to be disseminated, false or misleading 

information, or a knowingly inaccurate report, that affects or tends to affect the 

price of any contract;

Cantor will not engage in manipulative acts or practices regarding the price of a 

contract;

Cantor will not willfully submit false or misleading information to the 

Commission, Cantor regulatory services provider, or their respective agents;

The foregoing undertakings generally apply to any entity in the market. 

Cantor will not embezzle, steal, purloin or knowingly convert any money, 

securities or other property received from or accruing to a Participant in 

connection with contracts traded or cleared by such participant.

As discussed above, all Participant funds are held by the Exchange and its clearinghouse. 

Accordingly, they are prohibited from abusing the funds deposited by Participants. 

Referring Participants are prohibited from having any role with respect to the funds of 

CX Participants and thus could not be subject to this undertaking.

The foregoing representations place on CX prohibitions normally placed on intermediaries in 

dealing with customers. Because CX operates as a non-intermediated market and has a direct 

relationship with each and every Participant, the Exchange undertook, and the Commission 

placed such prohibitions directly on, the Exchange. Nothing in the amended rules modifies the

effectiveness or the requirement that the Exchange abide by these undertakings.

For these reasons, the amended rules are fully consistent with the requirements of a “nonintermediated market” defined by the Commission in CX’s Designation Order and in no way

affect the fundamental non-intermediated nature of the Exchange. The direct relationship 

between a Participant and the Exchange, whereby Exchange members may trade and clear only 

for a Participant’s own account, is unchanged. Accordingly, the Exchange remains in full 

compliance with the requirements of a non-intermediated market as described by the 

Commission in CX’s Designation Order.
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CERTIFICATIONS PURSUANT TO SECTION 5c OF THE COMMODITY 

EXCHANGE ACT, 7 U.S.C. §7a-2 AND COMMODITY FUTURES TRADING 

COMMISSION RULE 40.6, 17 C.F.R. §40.6

I hereby certify that the foregoing rule amendments comply with the Commodity Exchange 

Act, 7 U.S.C. §1 et seq. and regulations thereunder.

_______________________

By: Manavinder S. Bains

Title: Counsel and Chief Regulatory Officer

Dated: January 29, 2015

I hereby certify that a copy of this filing was posted on the Cantor Futures Exchange, L.P.

website the day of its submission to the Commission.

_______________________

By: Manavinder S. Bains

Title: Counsel and Chief Regulatory Officer

Dated: January 29, 2015
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Cantor Futures Exchange, L.P. Rules

CHAPTER I

DEFINITIONS; INTERPRETATION; AMENDMENTS

Referred Participant

The term “Referred Participant” means a Person that has been referred or solicited 

by a Referring Participant to become a Participant of the Exchange or whose Orders have 

been solicited by a Referring Participant.

Referring Participant 

The term “Referring Participant” means a Participant that has been 

approved by the Exchange to solicit or refer another Person to become a Participant (the 

Referred Participant) or to solicit a Referred Participant’s Orders, but not to enter such

Referred Participant’s Orders into the Trading System on behalf of that Referred 

Participant.

CHAPTER III

OWNERSHIP AND TRADING PRIVILEGES

* * *

III-3 Eligibility

(b) Notwithstanding anything to the contrary in Rule III-3(a), the 

Exchange shall have the right to establish more than one class of Participants, which 

shall include Referring Participants as a separate class, in connection with the trading 

of particular Contracts, subject to and in accordance with the applicable Exchange

Contract Rules. All Rules that apply to Participants also apply to Referring 

Participants except where the context requires otherwise. All rules that refer to 

Referring Participants shall apply only to such Persons.

(c) * * *

(e) Notwithstanding anything in the foregoing paragraphs (c) or (d) to 

the contrary:

(i) in considering any applicant for status as a Participant, or as an 

Authorized Trader of a Participant, or a Referring Participant, the 
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Exchange may request additional information, or employ such other 

means that it deems desirable or appropriate, to ascertain relevant facts

bearing on the applicant’s qualifications; and 

(ii) The Exchange may limit trading in particular Contracts to specific 

Participants based upon financial, regulatory or other criteria established 

by the Exchange or the Exchange may limit a Referring Participant to 

acting in the capacity of Referring Participant for specific Contracts 

based upon regulatory or other criteria established by the Exchange. 

(f) * * *

(i) No Participant may refer or solicit another Person to become a 

Participant of the Exchange or to solicit another Participant to enter an Order on the 

Exchange, including providing related software, technical or other associated services,

except in accordance with the provisions of Rule III-11. 

 

III-5. Fees and Payments

 (a) The Board of Directors shall have the sole authority to set the times and 

amounts of any fees to be paid by Participants or any payments to be paid, by the 

Exchange to Referring Participants which fees or payments shall be paid when due. The 

Exchange shall disclose to referred Participants whether it makes payments for referrals 

to Referring Participants. 

 (b) If a Participant fails to pay when due any Exchange fees or other 

amounts due on such Participant, and such payment obligation remains unsatisfied for 

30 Business Days after its due date, the Exchange as it deems necessary or appropriate

may suspend, revoke, limit, condition, restrict or qualify the Trading Privileges of such 

Participant and its Authorized Traders.

 (c) If a Referring Participant fails to pay when due any Exchange fees or 

other amounts due on such Referring Participant, and such payment obligation remains 

unsatisfied for 30 Business Days after its due date, the Exchange as it deems necessary or 

appropriate may suspend, revoke, limit, condition, restrict or qualify the permission of a 

Referring Participant to act in the capacity of a Referring Participant. 
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III-11. Referral and Solicitation of Participants and Orders

(a) Notwithstanding anything to the contrary in these Rules, a Referring 

Participant may refer or solicit another Person to become a Referred Participant or 

may solicit a Referred Participant’s Orders, and may provide software, technical or 

other associated services, upon being notified by the Exchange under the procedures 

specified in paragraph (b) that the Referring Participant satisfies, and remains in 

compliance with, the following conditions and is being permitted by the Exchange to 

act in the capacity of Referring Participant. The Referring Participant must:

(i) be a Participant in good standing with the Exchange;

(ii) if applicable, be registered with the National Futures Association 

in an appropriate registration category, or exempt from registration; 

(iii) submit to the Exchange such additional forms and agreements as 

the Exchange shall require and promptly update any information provided 

therein that becomes inaccurate or incomplete;

(iv) maintain an amount of funds on deposit (the level of such 

amount(s) to be determined by the Exchange in the Exchange’s sole discretion) 

for as long as the person remains a Referring Participant of the Exchange. Such 

amount, minus any financial obligations payable to the Exchange, shall be 

returned to the Referred Participant upon the Referring Participant’s withdrawal 

from the Exchange or revocation of such Person’s status as a Referring 

Participant; provided however, that in establishing the level of such deposits, the 

Exchange may implement a tiered structure with the level of deposit 

corresponding to a particular category of Participant; 

(v) provide a means acceptable to the Exchange of identifying to the 

Exchange those Participants which it refers or solicits, and the referred 

Participant’s acknowledgment that it has been referred;

(vi) demonstrate sufficient technical and operational capabilities to 

meet Exchange technical specifications and requirements as specified by the 

Exchange from time to time; 

(vii) solicit or refer Persons to become a Participant or solicit their 

Orders to the Exchange via: 

(A) electronic media of the Referring Participant approved by the 

Exchange;

(B) electronic media made available to the Referring Participant by 

the Exchange; or 
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(C) such other method as the Exchange may accept from time to 

time.

(viii) Satisfy such other requirements or criteria as may from time to 

time be adopted by the Exchange under these Rules.

(ix) For the avoidance of doubt, a Referring Participant shall not enter 

Orders into the Cantor Direct System on behalf of a Referred Participant as the 

Authorized Trader of a Referred Participant or in any other capacity.

(b) Following a request by a Participant for a determination by the 

Exchange that the Participant meets the conditions of paragraph (a) to act as a 

Referring Participant, the Exchange shall notify such Participant without 

unreasonable delay whether such Participant is permitted by the Exchange to refer or 

solicit Participants or their Orders. Provided, however, the Exchange may limit its 

permission to particular Contracts. 

(c) The Exchange in its sole discretion may deny, condition or revoke its 

permission to a Referring Participant to act as a Referring Participant. Any such 

action may be appealed by the Referring Participant in accordance with the 

procedures under the provisions of Chapter VII, provided, however, that such 

sanction shall continue in effect during the appeal. The Exchange may take such 

action to deny, condition or revoke its permission, if:

(i) upon request, the Referring Participant is unable satisfactorily to 

demonstrate a capacity to adhere to all applicable Rules of the Exchange, Rules 

of the Clearinghouse, CFTC Regulations and Applicable Law; 

(ii) at any time the Referring Participant fails to meet any of the 

conditions in paragraph (a); 

(iii) the Referring Participant fails to meet any limitation placed by the 

Exchange on its permission to the Referring Participant under paragraph (b); 

(iv) the Referring Participant violates any agreement with the 

Exchange;

(v) the actions or activities of the Referring Participant would bring 

the Exchange into disrepute;
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(vi) in the discretion of the Exchange, such action is in the best 

interests of the Exchange or for such other causes as the Exchange may

determine from time to time.

(d) Upon granting permission to a Referring Participant to act in that 

capacity, the Exchange shall record the referral relationship between a Referred 

Participant and the Referring Participant in its account records and shall make 

available daily reports and information about the referred account activity in such 

form and manner as the Exchange shall from time to time determine.