Appendix A

Rulebook

(additions underlined; deletions stricken-through)

LMX Labs, LLC

Coinbase Derivatives

Rulebook

JanuarySeptember 20243
CHAPTER 1: DEFINITIONS 1

RULE 101. DEFINITIONS 1

CHAPTER 2: EXCHANGE OWNERSHIP AND GOVERNANCE 10

RULE 201. Ownership 10

RULE 202. Board 10

RULE 203. Officers 11

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

Committee Members, Owners and Officers 11

RULE 205. Standing Committees 12

RULE 206. Nominating Committee 13

RULE 207. Exchange Participant Committee 13

RULE 208. Regulatory Oversight Committee 13

RULE 209. Chief Regulatory Officer 15

RULE 210. Exchange Practices Committee 15

RULE 211. Additional Board Committees and Exchange Panels 15

RULE 212. Emergency Rules 16

RULE 213. Conflicts of Interest and Misuse of Material, Non-Public Information 17

RULE 214. Maintenance of Books and Records by the Exchange 20

RULE 215. Information-Sharing Agreements 20

RULE 216. [RESERVED] 21

RULE 217. Services Agreement with a Technology Services Provider 21

CHAPTER 3: PARTICIPANTS 22

RULE 301. Criteria for Becoming a Participant Firm 22

RULE 302. Participant Firm Application Process 22

RULE 303. Trading Privileges of a Participant Firm, Clearing Firm, Broker Firm 24

RULE 304. Limitations on Access to the Exchange Trading System 24

RULE 305. Dues, Assessments and Fees 24

RULE 306. Authorized Traders and Authorized Brokers 25

RULE 307. Affiliated Participant 26

RULE 308. Recording of Communications 26

RULE 309. Notices to Participants, Information Available on the Exchange Website and Other

Communications 27

RULE 310. Communications between the Exchange and Participants 28

RULE 311. Application of Rules and Jurisdiction 28

RULE 312. Description of Participant’s or Broker Firm’s Status 29

RULE 313. Withdrawal of Participant 29

RULE 314. Consent to Exchange Jurisdiction 30

CHAPTER 4: OBLIGATIONS OF PARTICIPANTS 31

RULE 401. Duties and Responsibilities of Participants 31

RULE 402. Required Disclosures to the Exchange 33

RULE 403. Inspections by the Exchange 34

RULE 404. Minimum Financial and Related Reporting Requirements 34

RULE 405. Confidentiality of Financial and Other Information 34

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RULE 406. Authority to Impose Restrictions 35

RULE 407. Customers 35

RULE 408. Treatment of Customer Funds and Securities 35

RULE 409. Disclosure Requirements 35

RULE 410. Information Regarding Orders 36

CHAPTER 5: TRADING PRACTICES AND BUSINESS CONDUCT 37

RULE 501. Scope 37

RULE 502. Procedures 37

RULE 503. Business Days and Trading Hours 37

RULE 504. Rule Violations 37

RULE 505. Fraudulent Acts Prohibited 37

RULE 506. Fictitious, Wash or Non-Competitive Transactions Prohibited 38

RULE 507. Market Disruption Prohibited 38

RULE 508. Market Manipulation Prohibited 38

RULE 509. Disruptive Trading Practices Prohibited 38

RULE 510. Prohibition of Misstatements 38

RULE 511. Acts Detrimental to Welfare of Exchange Prohibited 38

RULE 512. Adherence to Law 39

RULE 513. Supervision 39

RULE 514. Orders of Other Clearing Firms 39

RULE 515. Misuse of the Exchange Trading System 39

RULE 516. Errors and Omissions in Handling Orders 39

RULE 517. Liquidity Provider and Market Maker Programs 40

RULE 518. Withholding Orders Prohibited 40

RULE 519. Priority of Customers’ Orders 40

RULE 520. Handling of Customer Orders 40

RULE 521. Disclosing Orders Prohibited 40

RULE 522. Simultaneous Buy And Sell Orders For Different Beneficial Owners 41

RULE 523. Wash Sales Prohibited 41

RULE 524. Recordkeeping Requirements for Entering Orders into the Exchange Trading

System 41

RULE 525. Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited 43

RULE 526. Responsibility For Customer Orders 44

RULE 527. Discretionary Orders 44

RULE 528. Priority of Execution 45

RULE 529. Average Price System 45

RULE 530. Position Limits And Exemptions 46

RULE 531. Position Accountability 50

RULE 532. Reports of Large Positions and Ownership and Control Reporting 50

RULE 533. Position Limit, Position Accountability, Reportable Level, and Volume Threshold

Level Table 51

RULE 534. The Exchange Trading System Access Restrictions 52

RULE 535. Identification of Authorized Traders and Authorized Brokers 52

RULE 536. LIMITATION OF LIABILITY, NO WARRANTIES 52

RULE 537. The Exchange Control Center 55

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RULE 538. The Exchange Trading System Algorithms 56

RULE 539. Trade Cancellations and Price Adjustments 56

CHAPTER 6: PRIVATELY NEGOTIATED TRANSACTIONS 60

RULE 601. Block Trades 60

RULE 602. Exchange of Derivatives for Related Positions 61

RULE 603. Recordkeeping Requirements for Privately Negotiated Trades 62

CHAPTER 7: DISCIPLINARY RULES 63

RULE 701. General 63

RULE 702. Inquiries and Investigation 64

RULE 703. Reports of Investigations 65

RULE 704. Opportunity to Respond 65

RULE 705. Review of Investigative Reports 66

RULE 706. Notice of Charges 67

RULE 707. Answer to Notice of Charges 67

RULE 708. Service of Notice of Charges 68

RULE 709. Settlements 68

RULE 710. Disciplinary Panel 69

RULE 711. Convening Hearings of Disciplinary Proceedings 70

RULE 712. Respondent Review of Evidence 71

RULE 713. Conducting Hearings of Disciplinary Proceedings 71

RULE 714. Decision of Hearing Panel 73

RULE 715. Sanctions 73

RULE 716. Appeal from Hearing Panel Decision, Summary Impositions of Fines and Other

Summary Actions 74

RULE 717. Summary Imposition of Fines 76

RULE 718. Summary Suspensions and Other Summary Actions 76

RULE 719. Rights and Responsibilities after Suspension or Termination 78

RULE 720. Notice to the Respondent and the Public 79

CHAPTER 8: ARBITRATION RULES 80

RULE 801. Disputes Subject to Arbitration 80

RULE 802. Initiating an Arbitration Claim 81

RULE 803. Certain Claims against the Exchange Involving Trading Systems or Services 81

RULE 804. Claims Relating to Trade Cancellations or Price Adjustments 82

CHAPTER 9: CLEARING 83

RULE 901. Clearing of Contracts 83

RULE 902. Criteria for Becoming a Clearing Firm 83

RULE 903. Clearing Firm Application Process and Obligations 83

RULE 904. Clearing House Rules 85

RULE 905. Other Clearing Organizations 85

RULE 906. Settlement Prices 85

RULE 907. Clearing Fees 87

RULE 908. Transfers of Trades 88

RULE 909. Concurrent Long and Short Transactions 88

RULE 910. Substitution 89

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CHAPTER 10: MISCELLANEOUS 90

RULE 1001. Exchange personnel – Trading and Misuse of Material, Non-Public Information 90

RULE 1002. Gifts and Gratuities 91

RULE 1003. Market Data 91

RULE 1004. Extension or Waiver of Rules 91

RULE 1005. Effect of Amendment, Repeal or New Rule 91

RULE 1006. Governing Law, Jurisdiction and Dispute Resolution 92

CHAPTER 11: CONTRACT SPECIFICATIONS 93

RULE 1101. Reserved 93

RULE 1102. Reserved 93

RULE 1106. Nano Bitcoin Futures 95

RULE 1107. Nano Ether Futures 97

RULE 1108. Bitcoin Futures 100

RULE 1109. Ether Futures 102

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CHAPTER 1: DEFINITIONS

RULE 101. DefinitionsEFINITIONS

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

“Affiliate” 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 (2) 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.

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

who is authorized to utilize the 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 to represent the Participant in Exchange matters pursuant to Rule 308.

“Authorized Trader” means a person who is either employed or is an agent of a Clearing Firm or

a Participant Firm and who is authorized to utilize the Exchange pursuant to the applicable User

ID Request Form.

“Block Trade” means a privately negotiated Ffutures or Ooptions Ttransaction in a Contract that

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

market pursuant to these Rules.

“Board” means the Board of DirectorsManagers of the 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 on which a settlement price is

determined.

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

executive officer.

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

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successor regulatory body.

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

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

regulatory officer.

“Clearing Firm” means an entity meeting the requirements of, and approved for, clearing

membership at the Clearing House that is authorized pursuant to the Clearing House Rules to

clear Ttrades in any or all of the Contracts and that meets the qualification of the Exchange

pursuant to Rule 902. A Clearing Firm may also be a Participant where it is authorized to

access the Exchange to effect Ttransactions. As a Participant, a Clearing Firm may Ttrade for

its own proprietary account or an account on behalf of its Customer (e.g., as a broker). As a

Participant, a Clearing Firm may Ttrade 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 the

applicable form to the Clearing Firm Agreement. The term “Clearing Firm” collectively refers to

all Authorized Traders of a Clearing Firm authorized to utilize the Exchange. A Clearing Firm

that carries Customer accounts must be a CFTC-registered FCM.

“Clearing House” means the clearing organization(s) as the Exchange may designate 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 in question.

“Clearing House Rules” means the Certificate of Incorporation, the By-laws and any rule,

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 contract, agreement, or Ttransaction approved for trading on the

Exchange and pursuant to the Rules.

“Contract Market” has the meaning set forth in CFTC Regulation 1.3.

“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

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

the foregoing.

“Customer” means a person who is a Customer as defined in CFTC Regulation 1.3., 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 behalf 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 at the close of the daily settlement cycle.

“Derivatives Clearing Organization” has the meaning attributed to such term by Section 1a(9) of

the CEA.

“Derivatives Command Center” or “DCC” means the Derivatives Command Center, a technical

support center established and maintained by the Exchange to provide technical support and

control over the operations of the Exchange Trading System.¶

“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.

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

amended.

“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:

(a) any circumstance that may materially affect the performance of a Contract, including

failure of the Clearing system;

(b) any action taken by any United States 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;

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

undue concentration of positions in a Contract;

(d) any circumstance that may have a severe, adverse effect upon the Functions 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 Exchange Trading System, or other system

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

systems or the Internet;

(e) the bankruptcy or insolvency of any Clearing Firm or the imposition of any injunction or

other restraint by any government agency, clearing house, court or arbitrator upon a

Clearing Firm which may affect the ability of a Clearing Firm to Ttrade in or perform on a

Contract;

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

Person:

(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 or Person cannot be permitted to continue in business without

jeopardizing the safety of Customer funds, Participants, other Clearing Firms,

the Exchange or the Clearing House; or

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

Exchange.

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

“Exchange” means LMX Labs, LLC, or any successor thereto.

“Exchange Activity” means business for which a Clearing Firm, FCM-Broker, Participant,

Participant-Broker, is subject to the Exchange Rules, which is purportedly conducted subject to

the Exchange Rules, or which should have been conducted subject to the 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 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).

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

by the Exchange, and the Clearing Firm Agreement, the Participant Firm Agreement, the Broker

Firm Access Agreement, interpretations, orders, resolutions, advisories, statements of policy,

decisions, manuals and directives of the Exchange, and all amendments thereto.

“Exchange Trading System” means the 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” means LMX Labs, LLC, or any

successor thereto.¶

“Final Settlement Price” means the official closing price of a Contract calculated for each

expiration day, as determined in accordance with Rule 906 and used for all open positions at the

close of such day.

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

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

CEA.

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

foreign government).

“Holdings” means the holding company of LMX Labs, LLC, the “Exchange” or any successor

thereto.

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

access to the Exchange Trading System. In order to provide access to the Exchange Trading

System the ISV must enter into a Participant Firm 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 a voluntary, cooperative organization comprised of

representatives of U.S. futures exchanges and 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 an information sharing organization whose members

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

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“Liquidity Provider” means a Participant that has entered into a Liquidity Provider Agreement.

“Lead Market Maker” means a Participant Firm that has entered into a Lead Market Maker

Agreement.

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

by the Exchange, and the Clearing Firm Agreement, the Participant Firm Agreement, the Broker

Firm Access Agreement, interpretations, orders, resolutions, advisories, statements of policy,

decisions, manuals and directives of the Exchange, and all amendments thereto.¶

¶

“Exchange Trading System” means the 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.

“Market Maker” means a Participant Firm that has entered into a Market Maker Agreement.

“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 Exchange

Rules and other Obligations.

“NFA” means the National Futures Association.

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

Participants as described in Rule 309.

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

including Notice to Participants, and other requirement implemented by the Exchange under the

Exchange Rules, including each term of a Contract, as well as any contractual obligations

between a Clearing Firm, Participant, Broker Firm, and the Exchange, including the Participant

Documentation.

“Officer” has the meaning attributed to such term in Rule 203.

“Other Trading Hours” or “OTH” means the times available for trading Bblock Ttrades and

EDRPs when the public auction market is closed.

“Operating Agreement of LMX” or “Operating Agreement” means the Amended and Restated

Limited Liability Company Agreement of LMX Labs LLC, dated as of February 26, 2020, as the

same may be amended from time to time.

“Option” means any Option to buy or sell any Contract Ttraded subject to the Exchange Rules.

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

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the Exchange Trading System and may be amended from time to time:

(i) Market means a simple order to buy or sell immediately executed at the best

price currently available in the system.

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

(iii) Stop means a market order whose activation is dependent upon a specific rate

being reached or surpassed (e.g., a stop order to buy becomes a market order in

the system when the market rate is at or above the stop price, while a stop order

to sell becomes a market order in the system when the market rate is at or below

the stop price).

(iv) 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 Exchange

Trading System. An Order eligible to be entered into the Exchange 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 (1) of the following duration qualifiers:

(i) “Day” means an Order that will remain in the market for the duration of the

session it is placed in. If a Day order is not fully executed, any remaining

quantity is cancelled at the end of the trading session;

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

executed or manually cancelled;.

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

executed or cancelled;.

(iv) “Fill or Kill” (FOK) means, upon entry, an Order that will either be executed in its

entirety or cancelled; or

(v) “Good Till Date” (GTD) type of order that is active until its specified date.

“Participant” means a Clearing Firm, Broker Firm, 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 Ttransaction on or subject to the Rules of the Exchange directly

or through an intermediary, or any person who is authorized to access or utilize the Exchange

pursuant to the applicable User ID.

“Participant Documentation” means the agreements (together with any applicable schedules,

exhibits or appendices thereto required by the Exchange) in form and substance acceptable to

the Exchange, that are required to be executed and delivered to the Exchange before a Person

may access the Exchange Trading System, including, but not limited to the Participant Firm

Agreement; Clearing Firm Agreement; the Broker Firm Access Agreement; and the User ID

Request Form, as applicable and amended from time to time by the Exchange.

“Participant Firm” means a person that is authorized under a Participant Firm Agreement (the

“Participant Firm Agreement”) to have access to the Exchange (e.g., a customer of a Clearing

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Firm enters orders directly into the Exchange’s Trading trade matching sSystem for execution

through the use of a user identification in the Participant Firm’s name). A Participant Firm may

Ttrade for its own proprietary account. In certain cases, a Participant Firm may Ttrade for an

account on behalf of its Customer. A Participant Firm may also Ttrade 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 Clearing

Firm Agreement. The term “Participant Firm” collectively refers to all Participants and Authorized

Traders of a Participant Firm authorized to utilize the Exchange.

“Person” means a natural person or an entity.

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

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 as determined by the Exchange from time to time.

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

with Rule 208.

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

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

Exchange.

“Self-Regulatory Organization” shall, unless otherwise provided, have the meaning attributed to

such term in CFTC Regulation § 1.3 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.

“Technology Services Agreement” means the agreement(s) between the Exchange and the

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

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

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services to the Exchange pursuant to a Technology Services Agreement

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

“Trading Hours” means, for any Business Day, the hours as may be published by the Exchange

in a Notice to Participants from time to time.

“Trading Privileges” means the right granted to a Participant to transmit Orders for certain or all

Contracts through the Exchange Trading System.

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

“User ID” means the credentials assigned to a Participant Firm or Clearing Firm, through the

User ID Request Form, for accessing and utilizing the Exchange.

“Write,” “Written” or “Writing” means printing, lithography, 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 Exchange Rules:

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

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 neuter forms; and

(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

The Exchange is a Delaware Limited Liability Company. The Operating Agreement governs the

management and operation of the Exchange. The equity interest in the Exchange is owned by

a holding company.

RULE 202. Board

(a) The Board, subject to the applicable provisions in the relevant LLC Agreements, shall

manage and control the day to day business and affairs 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 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 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 Operating Agreement with

respect to matters relating to the Exchange or otherwise relating to Holdings.

(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 or Owner of the Exchange;

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

(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.

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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 Ppublic Ddirector that is a

member of the Regulatory Oversight Committee or the Exchange Participant

Committee, such Ppublic Ddirector 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 service 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 Ppublic Ddirector’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 Ddirector, i.e., spouse, parents, children, and siblings, in each

case, whether by blood, marriage, or adoption, or any person residing in the home of the

Ddirector 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 Oofficers 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 Ddirector, Oofficer, 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

Holdings.

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

Members, Committee Members, Owners and Officers

(a) This rule sets out the required qualifications of Directors, Disciplinary Panel Members,

Appeal Panel Members, Committee Members, Owners and Officers.

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

Operating Agreement.

(c) 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

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January December2023
more ownership interest in the Exchange, if the individual:

(1) 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;

(2) 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;

(3) 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:

(4) 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

(5) 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;

(6) is currently subject to an agreement with the CFTC or Self-Regulatory

Organization not to apply for registration with the CFTC or for membership in

the Self-Regulatory Organization;

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

or suspension of registration by the CFTC;

(8) is subject to any of the conditions set forth in section 8a(2) of the CEA;

(9) has been convicted of a felony listed in section 8a(2)(D)(ii) through (iv) of the

CEA; or

(10) 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 section 3(a)(26) of the

Securities Exchange Act of 1934.

(d) 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 (1) or more of the criteria in Rule 204(b).

(e) 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).

RULE 205. Standing Committees

(a) The Board shall initially have four (4) standing committees: the “Nominating

Committee,” the “Exchange Participant Committee,” “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 (1) of whom the

Board shall designate as the chairperson of each standing committee.

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January December2023
(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 vote at a meeting or by unanimous written consent

without a meeting. The Board has the authority to overrule the decisions of a standing

committee.

RULE 206. Nominating Committee

(a) The Nominating Committee of the Board shall consist of three (3) Directors appointed

from time to time by the Board, two (2) of which shall be Public Directors (i.e., at least

51% Public Directors). The Nominating Committee shall be chaired by a Public

Director.

(b) The Nominating Committee shall have the authority to:

(1) Identify individuals qualified to serve on the Board, consistent with the criteria

that the Board require and any composition requirement that the Commission

promulgates; and

(2) Administer a process for the nomination of individuals to the Board.

(c) The Nominating Committee reports to the Board.

RULE 207. Exchange Participant Committee

(a) The Exchange Participant Committee of the Board shall consist of three (3) Directors

appointed from time to time by the Board, two (2) of which shall be Public Directors (i.e.

at least 35% Public Directors).

(b) The Exchange Participant Committee shall:

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

eligibility;

(2) Review appeals of staff denials of 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 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 Participants or between similarly-situated categories or classes of

Participants.

(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 two (2) Public

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

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January December2023
(b) Each member of the Regulatory Oversight Committee shall serve for a term of two (2)

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 for 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 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;.

(vi) Require the preparation of an annual report assessing the Exchange’s

self-regulatory program for the Board and the Commission, which sets

forth the regulatory program’s expenses, describes its staffing and

structure, catalogues disciplinary actions taken during the year, and

reviews the performance of disciplinary committees and panels, and

incorporates the responses to the technology questionnaire and an

assessment of the policies and procedures for internal audits, among

other areas; and.

(vii) Prepare an annual report assessing the contract market's self-regulatory

program for the Bboard of directors and the Commission, which sets

forth the regulatory program's expenses, describes its staffing and

structure, catalogues disciplinary actions taken during the year, and

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January December2023
reviews the performance of disciplinary committees and panels.

(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.

(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 Participants and the authority to require any Participant to appear before him or

her and produce its books and records and answer questions regarding alleged

violations of 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 four (4) Directors

appointed from time to time by the Board, two (2) of which shall be Public Directors (i.e.

at least 35%).

(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; and,

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

Exchange.

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

perform such other duties as set forth in the 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,

Participants (if individuals) or any of a Participants Supervised Persons (if an entity) or

such other individuals as may be qualified to serve on such panel.

(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.

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January December2023
(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 Officer, 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 Exchange Rules or

Obligations;

(7) requiring Participants to meet special margin requirements;

(8) imposing or modifying price limits;

(9) imposing or modifying position limits;

(10) ordering the transfer of open positions and margin of any Contract;

(11) altering any Contract’s settlement terms or conditions; and/or

(12) carrying out any Emergency actions through the Exchange’s agreements with

its third-party provider of clearing.

(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.

(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

authorized representative of the Exchange, where possible, will post an announcement

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January December2023
in a 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 (24)

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, including how any conflicts of interest

were managed and minimized, including the extent to which the DCM considered the

effect of its Eemergency action on the underlying markets and on markets that are linked

or referenced to the contract market and similar markets on other trading venues. Such

documentation will be kept for at least five (5) 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 Contracts opposite each other or to clearing Contracts

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January December2023
through the same Clearing Firm;

(4) having a family relationship with a respondent or potential respondent in a SelfRegulatory Action (including the individual’s spouse, co-habitator, 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 Holdings, 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 Self-Regulatory 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 (1) 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(j);

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

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January December2023
accounts of such member’s 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

Self-Regulatory Action is subject to a conflicts restriction under this Rule 213(a).

i. For any matter involving the relationships listed in Rule 213(b) above,

such determination will be based upon a review of the following

information:

a. information provided by such member pursuant to Rule

213(c)(1); and

b. any other source of information that is held by and reasonably

available to the Exchange.

(4) 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;

(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.

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January December2023
(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 the CEA, and the CFTC Regulations.

(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 (5)

-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

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 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 Participants to provide information and documents

to the Exchange at the request of other markets with which the Exchange has

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January December2023
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, the 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 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 a Technology Services Provider 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 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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January December2023
CHAPTER 3: PARTICIPANTS

RULE 301. Criteria for Becoming a Participant Firm

(a) To be eligible for admission as a Participant Firm (and as a Participant), 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) is validly organized, in good standing, and authorized by its governing body and,

if relevant, documents of organization, to Ttrade Contracts (if an entity);

(5) has not filed for bankruptcy;

(6) is not prohibited from using the services of the Exchange for any reason

whatsoever;

(7) holds all registrations, including any Introducing Broker, Futures Commission

Merchant, Supervisory Person and/or Associated Person registration and meets

the minimum financial standards required under Applicable Law, including, but

not limited to the requirements set forth in CFTC Regulation 1.17 any

Introducing Broker, Futures Commission Merchant, Supervisory Person and/or

Associated Person registration, as applicable if any;

(8) is not subject to statutory disqualification under Section 8a(2) of the CEA; and

(9) satisfies any other criteria that the Exchange may require from a Participant.

(b) Once admitted, the Participant Firm shall continue to comply with all applicable eligibility

criteria in Rule 301(a). The Exchange evaluates and monitors a Participant Firm’s

compliance with the criteria set forth in this Rule 301.

(c) To the extent a Participant Firm is a Participant on the Exchange that is or was an

Exempt Board of Trade subject to the CFTC’s jurisdiction, then such Participant Firm

shall be a Participant Firm on the Exchange, as long as such Participant Firm complies

with Rule 301(b).

(d) Each Participant Firm must establish a clearing relationship with a Clearing Firm and

shall immediately notify the Exchange if it ceases to be a clearing customer of such

Clearing Firm. Participant understands that it will be denied access to the Exchange

Trading System unless Participant has obtained and delivered to the Exchange the

applicable documentation from an authorized signatory of such Clearing Firm.

Participant Firm also understands that the Exchange may restrict, suspend or terminate

Participant Firm’s access to the Exchange or the Exchange Trading System at the

direction of the Clearing Firm. Participant Firm 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 Ttradinge matching sSystem for execution through the use of a user

identification in the Participant Firm’s name) and the Exchange provides the Clearing

Firm with and requires the Clearing Firm to use pre-Ttrade controls that enable the

Clearing Firm to implement appropriate financial risk limits.

RULE 302. Participant Firm Application Process

(a) Any Person who desires to become a Participant Firm shall:

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January December2023
(1) enter into a Participant Firm Agreement;

(2) establish a clearing relationship with a Clearing Firm;

(3) ensure that a Clearing Firm has submitted such documentation as set forth in

Rule 902;

(4) agree to abide by the Rules and Applicable Law;

(5) provide such information and documentation as may be requested by the

Exchange, and follow the procedures established by the Exchange for

admission; and,

(6) any Participant 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.

(b) In considering an application from a potential Participant Firm, the Exchange may

require additional information from the applicant, or conduct an investigation to verify

information submitted by the applicant, or both.

(c) If the Exchange decides to admit an applicant as a Participant Firm, it shall promptly

notify the applicant and state in such notice the date on which the applicant shall

become a Participant Firm.

(d) The Exchange may deny, condition or terminate Participant Firm 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 Participant Firm;

(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) Ffor such other causes as the Exchange may reasonably determine.

(e) If the Exchange decides to decline or condition an application for admission as a

Participant Firm, or terminate a Person’s status as a Participant 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 Participant Firms. 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 Participant 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

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January December2023
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.

RULE 303. Trading Privileges of a Participant Firm, Clearing Firm, Broker Firm

(a) A Participant (i.e., a Participant Firm, Clearing Firm, and Broker Firm) must execute such

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 Privileges.

(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 Exchange Trading System

(a) The Exchange may, at any time revoke, suspend, limit, condition, restrict or qualify a

Participant’s Trading Privileges and/or ability to access the Exchange 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 Participant’s Trading Privileges and/or ability to access the Exchange Trading

System, if the Participant fails to meet the criteria set forth in Rule 301.

(b) A Clearing Firm may, at any time, revoke the authorization of any Participant guaranteed

by it with or without prior notice to such Participant. Provided, however, that the Clearing

Firm’s guarantee will remain in effect until the Participant has liquidated its positions or

transferred its positions and funds to another Clearing Member. For purposes of the

relationship between the relevant Clearing Firm and the Exchange, and the obligations

of such Clearing Firm to the Exchange, any such revocation shall become effective upon

the receipt of written notice thereof by the Exchange. Upon such receipt, the Trading

Privileges of the Participant subject thereto shall be automatically terminated, and such

Participant must obtain another guarantee from a Clearing Firm 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 the Exchange Trading System fees, clearing fees,

brokerage and/or any Ttransaction surcharges) to be paid by Participants.

(b) Each Participant agrees to pay such dues, assessments, and fees as are published by

the Exchange in a Fee Circular, on the Exchange’s website or as otherwise agreed

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January December2023
between the Exchange and a Participant. Each Participant agrees to pay such dues,

assessments, and fees when due. The Exchange may change fees charged to

Participants without notice.

(c) If a Participant fails to pay when due any such dues, assessments or fees levied on such

Participant, and such payment obligation remains unsatisfied for thirty days after its due

date, the Exchange may suspend, revoke, limit, condition, restrict or qualify the

Participant’s Trading Privileges and/or ability to otherwise access the Exchange Trading

System as it deems necessary or appropriate.

(d) Participants are 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 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 Participant. An Authorized Trader may also be a Participant

in his or her individual capacity, but may not knowingly act as a counterparty in any

capacity to any Order that he or she has placed as an Authorized Trader or Authorized

Broker on behalf of another Participant or in his or her 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 Exchange Rules and Obligations. Among other duties and responsibilities that the

Exchange may impose, an Authorized Trader must:

(1) have the authority, at the Exchange’s request, to adjust or withdraw any Order

submitted under any user ID assigned to him or her; and

(2) ensure that any Exchange Activity conducted under any user ID assigned to him

or hershe complies with all Exchange Rules and Obligations.

(c) To designate an Authorized Trader or Authorized Broker, a Participant 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 a Broker Firm, that person agrees to be bound by the duties and

responsibilities of a Broker Firm, agrees to be subject to, and comply with, the Exchange

Rules and Obligations, agrees that it will obtain an agreement from each other

Authorized Broker that it will comply with, and be subject to, the Exchange Rules when

accessing the Exchange, and Broker Firm shall be responsible to the Exchange for any

failures to comply with 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 Ttransactions for the account of a Participant or Customer

in Contracts via the Exchange 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 ID assigned

to him or her complies with all Exchange Rules and Obligations;

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January December2023
(5) must have and maintain during all necessary regulatory approvals and/or

licenses to operate as Broker Firm or as an Authorized Broker on the 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,

(6) agree to such other terms and conditions as may be established by the

Exchange from time to time.

(e) The Exchange will promptly notify a 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.]

(f) The Exchange will maintain a list of all designated Authorized Traders, Broker Firms or

Authorized Brokers for each Participant.

(g) The Exchange may, in its sole discretion revoke or suspend the designation of an

individual as Authorized Trader, Authorized Broker, or Broker Firm and shall promptly

notify the Participant or Clearing Firm of such action.

(h) To request the termination of the designation of an individual as Authorized Trader or,

Authorized Broker, or Broker Firm, the Participant 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 , Authorized Broker, or

Broker Firm, or may postpone the effective date of the termination of registration if the

Exchange considers it necessary for the protection of Participant’s 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

, Authorized Broker, or Broker Firm, 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. Affiliated Participant

(a) The Exchange permits Coinbase Financial Markets, Inc. (“CFM”), a CFTC-registered

Futures Commission Merchant and an affiliate of the Exchange, to be a Participant, or

customer of a Participant, for the purpose of trading Exchange products.

(b) CFM shall neither receive preferential pricing from the Exchange nor shall it have an

inherent advantage over any other Participant with respect to the Exchange’s Ttradinge

Systemmatching engine or procedures.

(c) CFM shall not have access to the Exchange’s material nonpublic information, and the

Exchange shall ensure CFM’s access to information is limited to public information

available to all Participants.

(d) CFM shall be subject to the same access criteria and must abide by the same Rules as

all other Participants.

RULE 308. Recording of Communications

The Exchange may record conversations and retain copies of electronic communications

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January December2023
between Exchange Officials, on one hand, and Participants, their Authorized Traders,

Supervised Persons, Authorized Brokers or other agents, on the other hand. 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 CFTC Regulations.

RULE 309. Notices to Participants, Information Available on the Exchange Website and

Other Communications

(a) The Exchange shall publish a notice with respect to each addition to, modification of, or

clarification of, the Exchange Rules or of any action to implement any Exchange Rules

on the Exchange’s website or via an electronic mail distribution to enable each

Participant 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 a “Notice to Participants”). For purposes of

publication in accordance with the first sentence of this Rule 310, 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.

(b) Any Notice to Participants shall also be deemed to have been made to all Authorized

Traders, Broker Firms, and Supervised Persons.

(c) For the avoidance of doubt, the following information will be made available on the

Exchange website: (1) the rules, regulations and mechanisms for executing

Ttransactions on or through the facilities of the DCM, and the rules, regulations and

mechanisms for executing Ttransactions on or through the facilities of the DCM; (2)

Rule amendments or other changes to previously-disclosed information; (3) the Rules

and specifications describing the operation of the Exchange’s: (i) electronic matching

platform or (ii) Ttrade execution facility; and (4) regulatory submissions.

(d) Any communication with the CFTC and any information required to be transmitted or

made available to Participants and the public, including information on the Exchange’s

wWebsite or otherwise, will to the best of the belief and knowledge of the Exchange be

accurate and complete and will not omit material information.

(e) The Exchange will confirm that the Rulebook posted on its wWebsite is accurate,

complete, current and readily accessible to the public. In addition, the Exchange will

publish or post in its Rulebook, all new or amended rules, both substantive and

non-substantive, on the date of implementation of such new or amended rule, on the

date a new product is listed, or on the date any changes to previously-disclosed

information take effect.

(f) The Exchange, in making available on its websiteWeb site information pertaining to

new product listings, new rules, rule amendments or other changes to

previously-disclosed information, must place such information and submissions on its

websiteWeb site concurrent with the filing of such information or submissions with the

Secretary of the Commission.

(g) To the extent that the Exchange requests confidential treatment of any information filed

with the Secretary of the Commission, the Exchange will post on its websiteWeb site

the public version of such filing or submission.

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January December2023
RULE 310. Communications between the Exchange and Participants

(a) Each Participant 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 Traders and immediately (and in any event within 24 hours) update this

information whenever it changes.

(b) Each Broker Firm 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 Traders and immediately (and in any event within 24 hours) update this

information whenever it changes.

(c) All communications between the Exchange and the Participant or Broker Firm will be

transmitted by electronic mail and/or posted on the Exchange’s website, except as

otherwise specified by the Exchange.

(d) The Participant shall be responsible for conveying such communications to all

Authorized Traders, Supervised Persons, and Broker Firms.

(e) The Broker Firm shall be responsible for conveying such communications to all

Authorized Brokers.

(f) Each Participant will be responsible for promptly reviewing and, if necessary, responding

to all electronic communications from the Exchange to the Participant or any of its

Authorized Traders, its other Supervised Persons, or Broker Firm.

(g) Each Broker Firm will be responsible for promptly reviewing and, if necessary,

responding to all electronic communications from the Exchange to the Broker Firm or

any of its Authorized Broker.

(h) All communications made to Participants shall also be deemed to have been made to all

Authorized Traders and Supervised Persons.

(i) All communications made to Broker Firms shall also be deemed to have been made to

all Authorized Brokers.

RULE 311. Application of Rules and Jurisdiction

(a) By becoming a Participant and by accessing,, or entering any Order or submitting any

Contract into the Exchange Trading System, and without any need for any further action,

undertaking or agreement, a Participant, its Authorized Traders, Supervised Persons,

Broker Firms , and Authorized Broker agree:

(1) to be bound by, and comply with, the 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 in complying with its legal and regulatory obligations,

cooperate with the Exchange and the CFTC in any inquiry, investigation, audit,

examination or proceeding, and authorizes the Exchange to provide information

regarding it to the CFTC or any Self-Regulatory Organization.

(b) Any Participant whose Trading Privileges and/or ability to otherwise access the

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January December2023
Exchange Trading System are revoked or terminated shall remain bound by the

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 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 or Authorized Broker, the Authorized Trader or Authorized Broker

remains subject to the 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’s Status

A Participant shall ensure that the form, content and context of any description of the

Participant’s status on the Exchange to Customers is not inconsistent with, and does not

misrepresent, the Participant’s capacity on the Exchange under the Exchange Rules or the

Participant’s registration, if any, under the CEA, or under any other Applicable Law.

RULE 313. Withdrawal of Participant

(a) To withdraw from the Exchange, a Participant must notify the Exchange following the

procedures established by the Exchange.

(b) The Exchange may, in its reasonable discretion, refuse to accept a Participant’s

withdrawal request or may postpone the effective date of withdrawal of a Participant if

the Exchange considers it necessary for the protection of other 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 Participant’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 Participant’s withdrawal request or postpones the

effective date of withdrawal of a Participant, 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 Participant, all rights and privileges of

such Participant terminate (including, without limitation, the Trading Privileges and ability

to access the Exchange Trading System). The accepted withdrawal of a Participant shall

not affect the rights of the Exchange under the Exchange Rules or relieve the former

Participant of its Obligations under the Exchange Rules, to perform all contracts

involving any Contracts entered into by such, or to pay any Exchange fees, costs, or

charges incurred, before the withdrawal. Notwithstanding the accepted withdrawal of a

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January December2023
Participant, the withdrawn Participant remains subject to the Exchange Rules, the

Obligations and the jurisdiction of the Exchange for acts done and omissions made while

a Participant, and must cooperate in any Exchange Proceeding under Chapter 7 as if the

withdrawn Participant were still a Participant.

RULE 314. Consent to Exchange Jurisdiction

Any Person initiating or executing a Ttransaction on or subject to the Rules of the Exchange,

directly or through an intermediary, and any Person for whose benefit such a Ttransaction 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 Ttransactions,

including, but not limited to, rules requiring cooperation and participation in investigatory and

disciplinary processes.

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January December2023
CHAPTER 4: OBLIGATIONS OF PARTICIPANTS

RULE 401. Duties and Responsibilities of Participants

(a) Each Participant (i.e., Participant Firm and Clearing Firm) shall (and shall cause all of

its Authorized Traders, Authorized Brokers, and Supervised Persons):

(1) use the Exchange Trading System in a responsible manner and not for any

improper purpose;

(2) use the Exchange Trading System only to conduct Exchange Activity;

(3) conduct all Exchange Activity in a manner consistent with the Exchange Rules

and Obligations;

(4) comply with all 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 Exchange

Trading System confidential;

(10) be fully liable for: all trading losses, all Orders, all Ttransactions in Contracts

aeffected by Participant, all Ttransactions effected on the Exchange and for any

use of the Exchange Trading System made by Participant or Participant’s

Authorized Traders, and all Ttrades even if the Orders received via the

Exchange 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 the Exchange;, or (2) were entered by an unknown or unauthorized user;

(11) use the Exchange’s pre-Ttrade controls that enable the Clearing Firm to

implement appropriate financial risk limits for 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 Participant pursuant to Rule

301;

(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 Exchange 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 Exchange Rules,

for at least five (5) years, and make such books and records readily accessible

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January December2023
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 (5) -year

period; and

(15) operate any electronic trading system and conduct any activity on the Exchange

through an electronic trading system in a manner that is reasonably intended to

prevent, detect, and mitigate market disruptions or system anomalies

associated with such electronic trading.

(b) Each Broker Firm shall (and shall cause all of its Authorized Brokers to):

(1) use the Exchange Trading System in a responsible manner and not for any

improper purpose;

(2) use the Exchange Trading System only to conduct Exchange Activity;

(3) conduct all Exchange Activity in a manner consistent with the Exchange Rules

and Obligations;

(4) comply with all 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¶

(8) any Exchange Activity, or any aspect of any business connected with or

concerning the Exchange;

(9) 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;

(10) keep any User IDs, account numbers and passwords related to the Exchange

Trading System confidential;

(11) 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,

(12) 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 Exchange 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 Exchange Rules,

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 (5) -year

period.

(c) The Exchange will conduct annual reviews of compliance with the Exchange’s audit

trail and recordkeeping requirements set forth in the Rules by all Participants that are

responsible for, or in control of, the creation of audit trail records.

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January December2023
(1) Such Participants will be subject to investigation for possible disciplinary action

pursuant to the Rules, including sanctions for audit trail violations.

(2) Annual reviews will be conducted by the Market Regulation Department in

accordance with Commission Regulations and will include, but will not be limited

to, reviews of randomly-selected samples of front end audit trail data for order

routing systems; a review of the process by which user identifications are

assigned and user identification records are maintained; a review of usage

patterns associated with user identifications to monitor for violations of user

identification rules; and reviews of account numbers and customer type

indicator codes in Ttrade records to test for accuracy and improper use.

RULE 402. Required Disclosures to the Exchange

(a) Each Participant that is not registered with the CFTC as an FCM or IB that have

obligations pursuant to Rule 404 shall immediately notify the Market Regulation

Department upon becoming aware of any of the following events:

(1) any material change to the contact information provided to the Exchange;

(2) any damage to, or failure or inadequacy of, the systems, facilities or equipment

of the Participant to effect Ttransactions pursuant to the Exchange Rules or to

timely perform the Participant’s financial obligations under or in connection with

Contracts;

(3) any refusal of admission to, or withdrawal by the Participant of any application

for membership in, any Self-Regulatory Organization, Contract Market or

Derivatives Clearing Organization;

(4) any expulsion, suspension or fine in excess of $5,000 (whether through an

adverse determination, voluntary settlement or otherwise) imposed on the

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

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 Participant or (or, if the 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, fFutures contract,

oOption, security, securities futures product or other financial instrument, or

involving or arising from fraud or moral turpitude;

(8) the Participant becoming the subject of a petition for bankruptcy;

(9) the appointment of a receiver, trustee or administrator for the Participant;

(10) the presentment of a petition, or the passing of a resolution, for the winding-up

of Participant;

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January December2023
(11) the commencement of proceedings for the dissolution of Participant; or

(12) the occurrence of an event of insolvency with respect to the Participant.

RULE 403. Inspections by the Exchange

(a) The Exchange ( or other authorized representatives), shall have the right, in connection

with determining whether all Exchange Rules and Obligations are being, will be, or have

been complied with by the Participant, to:

(1) inspect systems, equipment and software operated by the 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 notice to Participants; and/or

(3) copy or reproduce any data to which the Exchange has access under this Rule.

(b) [RESERVED].

(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 Participant, which includes an FCM, IB or any Clearing Firm, 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 Applicable Law, including but not

limited to the rules and regulations such Government Agency imposes on a Participant,

which includes an FCM, IB or any Clearing Firm, relating to minimum financial and

related reporting and recordkeeping requirements.

(b) Each Participant who is registered with the CFTC as an FCM must comply with CFTC

Regulation 1.11.

(c) A copy of any notice or written report that a Participant, 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.

(d) The Exchange conducts surveillance related to Rule 404.

(e) Upon request by the Exchange, Participant shall produce such records related to this

Rule 404(a).

(f) A Participant that violates any provision of Applicable Law (including CFTC Regulations)

referenced in this Rule 404 shall be deemed to have violated this Rule 404.

RULE 405. Confidentiality of Financial and Other Information

All information and data obtained or received by the Market Regulation Department 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

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January December2023
process or law.

RULE 406. Authority to Impose Restrictions

Whenever a Participant 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 or as the Exchange may deem necessary or appropriate for

the protection of Customers, other Participants, 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 Exchange Rules insofar as they are applicable to that

Contract.

(c) No Person shall engage in soliciting or accepting an Order for the Contract for a

Participant or Customer unless they havethe has entered into a written agreement with

the Participant or Customer, obtaining such terms as may, from time to time, be

prescribed in these Rules.

RULE 408. Treatment of Customer Funds and Securities

Each Participant that is required to be registered with any Government Agency, including the

CFTC and the U.S. Securities and Exchange Commission, or Self-Regulatory Organization shall

comply with the provisions of Applicable Law, including but not limited to the rules and

regulations such Government Agency imposes on a Participant relating to the treatment of

Customer funds and the maintenance of books and records with respect thereto. Specifically,

each Clearing Firm 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 through 1.32. This Rule 408 shall apply to non-carrying or non-clearing firm FCMs to the

extent that such FCMs hold Customer funds related to Contractsproducts traded on the

Exchange. The Exchange conducts surveillance related to this Rule 408, including through its

membership in the Joint Audit Committee. Any Participant that violates any of the

aforementioned CFTC Regulations, Clearing House Rules, and other Applicable Law shall be

deemed to have violated this Rule 408.

RULE 409. Disclosure Requirements

Each Participant must comply with all disclosure requirements set forth in applicable CFTC and

NFA Rules and Regulations. 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.

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January December2023
RULE 410. Information Regarding Orders

(a) The Exchange will make information regarding Orders (including prices bid or offered),

trades and any other matters it may deem appropriate available to Participants and other

Persons at such times and in such manner (whether through the Exchange Trading

System, a ticker, financial information services or otherwise) as it may consider

necessary or advisable from time to time.

(b) Each Participant or other Person receiving any such information through the Exchange

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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January December2023
CHAPTER 5: TRADING PRACTICES AND BUSINESS CONDUCT

RULE 501. Scope

This Chapter 5 applies to all Ttransactions in Contracts, except as otherwise specifically

provided in Chapter 6.

RULE 502. Procedures

(a) With respect to trading on or though the Exchange Trading System, the Exchange may

adopt, without limitation, procedures relating to Ttransactions in Contracts and trading on

the Exchange Trading System, including procedures to:

(1) determine the Daily Settlement Price of a Contract;

(2) disseminate the prices of bids and offers on, and Ttrades in, Contracts;

(3) record, and account for, Contracts and Exchange Activity;

(4) perform market and Trade 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 through the Exchange Trading System;

(6) establish limits on the number of Contracts that may be held by a 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 Participant, or a Participant with restricted

trading rights, to have Contracts executed for the Participant to reduce or

eliminate any open position or exposure to future price changes for the

Participant 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 a 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 hHolidays of the Exchange and

the Trading Hours for each Contract.

RULE 504. Rule Violations

It shall be a violation for a Participant (or any of its Authorized Traders, Authorized Brokers, 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 (or any of its Authorized Traders, Authorized Brokers, or Supervised Persons)

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

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January December2023
House.

RULE 506. Fictitious, Wash or Non-Competitive Transactions Prohibited

No Participant (or any of its Authorized Traders, Authorized Brokers, or Supervised Persons)

shall create fictitious Ttransactions, wash Ttransactions, or non-competitive Ttransactions

except, in the case of noncompetitive Ttransactions, as otherwise authorized by the Exchange

Rules, or execute any such Order with knowledge of its nature as a fictitious Ttransaction, wash

Ttransaction, or non-competitive Ttransaction.

RULE 507. Market Disruption Prohibited

Orders entered into the Exchange Trading System for the purpose of upsetting the equilibrium

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 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.

RULE 508. Market Manipulation Prohibited

No Participant (or any of its Authorized Traders, Authorized Brokers, or Supervised Persons)

shall attempt to manipulate or manipulate the market in any Contract. The Exchange prohibits

any other manipulative or disruptive trading practices prohibited by the Act or by

the Commission pursuant to CFTC Regulations.

RULE 509. Disruptive Trading Practices Prohibited

No Participant (or any of its Authorized Traders, Authorized Brokers, or Supervised Persons)

shall engage in any trading, practice, or conduct that constitutes a “disruptive practice,” as such

term is defined by the CEA or CFTC Regulations.

No Participant (or any of its Authorized Traders Authorized Brokers or Supervised Persons)

shall engage in: front-running, wash trading, pre-arranged trading (except for certain

Ttransactions specifically permitted under part 38 of the CFTC Regulations), fraudulent trading,

money passes, spoofing, accommodation trading, conduct that violates bids or offers or

demonstrates intentional or reckless disregard for order execution during the closing period, and

any other trading practices that the Exchange deems to be abusive or disruptive.

RULE 510. Prohibition of Misstatements

No Participant (or any of its Authorized Traders, Authorized Brokers, or Supervised Persons)

shall make any knowing misstatement of a material fact to the Exchange, any Exchange Official,

or any Board committee or Exchange panel.

RULE 511. Acts Detrimental to Welfare of Exchange Prohibited

No Participant (or any of its Authorized Traders, Authorized Brokers, or Supervised Persons)

shall engage in any act that is detrimental to the Exchange.

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January December2023
RULE 512. Adherence to Law

No Participant (or any of its Authorized Traders, Authorized Brokers, or Supervised Persons)

shall engage in conduct that is a violation of the Act or CFTC Regulations.

RULE 513. Supervision

A Participant shall establish, maintain and administer reasonable supervisory procedures to

monitor the compliance of Authorized Traders, Authorized Brokers, and Supervised Persons

with the Exchange Rules and any applicable provisions of the Act or CFTC and such Participant

may be held accountable for the actions of such Authorized Traders or Supervised Persons.

RULE 514. Orders of Other Clearing Firms

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

Ttransaction, the Clearing Firm accepting the Order must send promptly a duplicate

confirmation of the Ttransaction to the Clearing Firm from whom the prior written consent is

required pursuant to this Rule.

RULE 515. Misuse of the Exchange Trading System

Misuse of the Exchange Trading System is strictly prohibited. It shall be deemed an act

detrimental to the Exchange to permit unauthorized use of the Exchange Trading System, to

assist any Person in obtaining unauthorized access to the Exchange Trading System, to Ttrade

on the Exchange Trading System without an agreement and an established account with a

Clearing Firm, to alter the equipment associated with the Exchange Trading System (except

with the Exchange’s consent), to interfere with the operation of the Exchange Trading System,

to intercept or interfere with information provided thereby, or in any way to use the Exchange

Trading System in a manner contrary to the Exchange Rules.

RULE 516. Errors and Omissions in Handling Orders

(a) A Participant who inadvertently, through error or omission, fails to execute an Order 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 receiving such 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 and make the same monetary adjustment for the account of such

Customer. Full details of all Ttransactions consummated hereunder shall be promptly

provided to the Market Regulation Department upon request.

(c) This Rule 516 shall not be construed to contravene any instructions received from a

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January December2023
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 and Market Maker Programs

(a) The Exchange may, from time to time, establish programs that provide Participants with

financial incentives for meeting trading volume or liquidity thresholds as may be

established by the Exchange.

(b) All Participants are eligible to become Liquidity Providers or Market Makers, provided the

Participant can meet the program obligations.

RULE 518. Withholding Orders Prohibited

Any Participant entering Orders on the Exchange 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 Customer for whom the Participant is placing the Order.

RULE 519. Priority of Customers’ Orders

No Participant shall enter an Order into the Exchange Trading System for his own account, an

account in which he has a direct or indirect financial interest or an account over which he has

discretionary trading authority, including, without limitation, an Order allowing discretion as to

time and price, when such Participant is in possession of any unsubmitted Customer Order that

the Exchange Trading System is capable of accepting.

RULE 520. Handling of Customer Orders

(a) General Prohibition - No 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; or

(2) On the Exchange Trading System, a Participant may knowingly Ttrade 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 the Customer Order

has been entered immediately upon receipt and has first been exposed on the

Exchange Trading System for a minimum of five (5) seconds in the case of

Futures Orders or for a minimum of fifteen (15) seconds in the case of Options

Orders.

RULE 521. Disclosing Orders Prohibited

No Participant shall disclose another Customer’s Order to buy or sell except to a designated

Exchange Official or the CFTC, and no Participant shall solicit or induce another Participant to

disclose Order information. No Person shall take action or direct another to take action based

on non-public Order information, however acquired. The mere statement of opinions or

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January December2023
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

On the Exchange Trading System, opposite Orders for different beneficial owners that are

simultaneously placed by a Participant with discretion over both accounts may be entered into

the Exchange Trading System, provided that one (1) Order is exposed for a minimum of five (5)

seconds in the case of Futures Orders or a minimum of fifteen (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

this other Order has been entered immediately upon receipt and has been exposed on the

Exchange Trading System for a minimum of five (5) seconds for Futures Orders or a minimum

of fifteen (15) seconds for Options Orders.

RULE 523. Wash Sales Prohibited

No Person 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 salestrades. Additionally, no Person shall knowingly execute or accommodate the

execution of such Orders by direct or indirect means.

RULE 524. Recordkeeping Requirements for Entering Orders into the Exchange Trading

System

(a) General Requirements.

(1) Each Authorized Trader or Authorized Broker entering Orders into the

Exchange Trading System shall input for each Order:

i. the Uuser 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; and.

iii. The Authorized Trader’s or Authorized Broker’s user ID must be present

on each Order entered.

(2) With respect to Orders received by an Authorized Trader or Authorized Broker

that are capable of being immediately entered into tThe Exchange Trading

System, no record other than that set forth above need be made. However, if

an Authorized Trader or Authorized Broker receives an Order that cannot be

immediately entered into The Exchange Trading System, the Authorized Trader

must prepare a written Order and include the account designation, date, an

electronic timestamp reflecting the time of receipt and other information required

pursuant to section (a) above. The Order must be entered into The Exchange

Trading System when it becomes executable.

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January December2023
(b) Electronic Audit Trail Requirements for Electronic Order Routing/Front-End Systems.

(1) Clearing Firms guaranteeing a connection to tThe Exchange Trading System

are responsible for maintaining or causing to be maintained the Order

routing/front-end audit trail for all electronic Orders, including Order entry,

modification, cancellation and responses to such messages (referred to as the

“Electronic Audit Trail”), entered into the Exchange Trading System through any

gateway to the Exchange Trading System.

(2) The Electronic Audit Trail must be maintained for a minimum of five (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 Audit

Trail 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 all Fix Tag information and fields which should include, but is

not limited to the following: A record of all fields relating to Order entry, including

Ttransaction date, product, Exchange code, expiration month, quantity, Order

Type, Order Qualifier, price, buy/sell indicator, stop/trigger price, Order number,

unique Ttransaction number, account number, session ID, operator ID, host

Order number, Ttrader 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 Ttrade along with all

fill information.

(3) In the case where the guaranteeing Clearing Firm has a direct connect

Customer that is another Clearing Firm, the Clearing Firm may notify the

Customer Clearing Firm in writing that it is their obligation to maintain the

Electronic Audit Trail. It shall be the duty of the Customer Clearing Firm to

maintain an Electronic Audit Trail pursuant to this rule.

(c) Bunched Orders and Orders Eligible for Post Execution Allocation.

(1) Bunched Orders must be allocated and recorded in accordance with CFTC

Regulation 1.35(ba-1)(5) and the NFA’s Interpretative Notice related to

Compliance Rule 2-10.

(2) 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, pre-determined allocation scheme that defines the series has

been provided to the FCMfutures 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 FCMfutures

commission merchant prior to the time of Order entry, each specific

account number must be entered into the Exchange Trading System.

Additionally, for all such bunched Orders executed on the Exchange

Trading System, the final account specific allocations must be submitted

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January December2023
to the Exchange Trading System no later than the end of each trading

day.

(3) Bunched Orders for non-discretionary accounts may be entered through the

Exchange 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 Exchange 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 (a)(1) above;

ii. Allocation of the executions for the bunched Orders must be fair and

equitable in accordance with the NFA’s Interpretative Notice related to

Compliance Rule 2-10; and

iii. In circumstances where the Order is bunched, the Participant accepting

the Order must, contemporaneously with the Order placement, transmit

the individual account numbers and quantities associated with the

bunched Order to the Clearing Firm. Such transmission shall be

maintained by the Clearing Firm along with the bunched Order.

(d) Customer Type Indicator (CTI) Codes.

Each Clearing Firm must identify each Ttransaction executed on the Exchange Trading

System on the record of Ttransactions 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/her own

account, for an account he/she controls or for an account in which he/she has

ownership or financial interest. CTI 1 is not applicable to the 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

non-Clearing Participant 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 Aauthorized Ttrader

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 ownership or financial interest.

(4) CTI 4- Any Ttransaction not meeting the definition of CTI 1, 2 or 3.

RULE 525. Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited

(a) No Person shall prearrange or pre-negotiate any purchase or sale or noncompetitively

execute any Ttransaction, except in accordance with Sections (b) and (c) below.

(b) The foregoing restriction shall not apply to Bblock Ttrades affected pursuant to Rule 601

and EDRP affected pursuant to Rule 602.

(c) Pre-Execution cCommunications rRegarding the Exchange Trading System Trades.

Parties may engage in pre-execution communications with regard to Ttransactions

executed on the Exchange 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:

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January December2023
(1) A party may not engage in pre-execution communications with other market

Pparticipants on behalf of another party unless the party for whose benefit the

Ttrade 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 Orderto take advantage of information conveyed during such

communications, except in accordance with this Rrule.

(3) The first party’s Order must be entered into the Exchange Trading System first

and the second party’s Order may not be entered into the Exchange Trading

System platform until a period of five (5) seconds has elapsed from the time of

entry of the first Futures Order or a period of fifteen (15) seconds for Options

Orders.

RULE 526. Responsibility For Customer Orders

(a) Standard of Responsibility.

(1) A Participant 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 has exercised due diligence,

the appropriate arbitration or disciplinary panelcommittee is authorized to

determine whether the Participant was negligent and, if so, whether an

adjustment is due to the Customer.

(2) A Participant is 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 Exchange Trading

System or has been executed under Chapter 6. This Rule 5267(a) shall not be

construed to prevent a Participant from assuming or sharing in the losses

resulting from an error or the mishandling of an Order.

(b) Liability for Negligence. A Participant 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

Participant was negligent or is settling a bona-fide dispute regarding negligence. A

Participant may not compel an adjustment from another Participant in the absence of a

bona-fide dispute regarding negligence. Participants and Clearing Firms shall document

all adjustments. Participants and Clearing Firms shall make and retain a record which

contains the date the adjustment was received, the name of the 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 upon request.

RULE 527. Discretionary Orders

No Participant shall submit a dDiscretionary Order to the Exchange Trading System for any

account of another Person, without the prior specific written consent of such other Person to the

exercise of such discretion, provided, however, that the restrictions set forth in this

subparagraph shall not apply to a dDiscretionary Order for: (i) an account of that Person’s

spouse, parent, parent of a spouse, brother, sister, child, or spouse of a child; or (ii) a

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January December2023
Proprietary Account of the Participant.

RULE 528. Priority of Execution

Non-discretionary Customer Orders received by a Participant, an Authorized Trader or

Authorized Broker shall be entered into tThe Exchange Trading System in the sequence

received. Non-discretionary Orders that cannot be immediately entered into tThe Exchange

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 or Clearing Firm allows a Participant or Clearing Firm to confirm 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 (1) 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 Ttransactions.

(1) The Customer must have requested average price reporting;.

(2) Each individual Ttrade must be submitted to the Exchange at the executed

price;.

(3) A Participant or Clearing Firm must compute and confirm the weighted

mathematical average price, as set forth in Section (c);.

(4) A Participant or Clearing Firm must possess the records to support the

calculations and allocations to Customer Accounts and must maintain these

records pursuant to CFTC regulations; and.

(5) A Participant or Clearing Firm must ensure that its proprietary Ttrades are not

averaged with Customer APS Ttrades.

(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 or Clearing Firm

confirms the rounded average price, the Participant or Clearing Firm 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 ($0.01) may be retained by the Participant

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January December2023
or Clearing Firm.

(d) Disclosure. Each Participant or Clearing Firm 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 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) A Person seeking an exemption from position limits must apply to the Market Regulation

Department on forms provided by the Exchange. In order to obtain an exemption from

position limits, a Person must:

(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) Provide a complete and accurate explanation of the underlying exposure related

to the exemption request;

(3) Agree to promptly provide, upon request by the Market Regulation Department,

information or documentation regarding the Person’s financial condition;

(4) Agree to comply with all terms, conditions or limitations imposed by the Market

Regulation Department with respect to the exemption;

(5) Agree that the Market Regulation Department may modify or revoke the

exemption at any time;

(6) Agree to initiate and liquidate positions in an orderly manner; and,

(7) Agree to promptly submit a supplemental statement to the Market Regulation

Department whenever there is a material change to the information provided in

the most recent application.

(c) 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 532 provided the filing occurs within one (1)

Business Day after assuming the position.

(d) In the event the positions in excess of the limits are not deemed to be

exemption-eligible, the applicant will be in violation of speculative limits for the period of

time in which the excess positions remained open.

(e) The Market Regulation Department 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 Department may approve, deny, condition

or limit any exemption request based on factors deemed by the Market Regulation

Department to be relevant, including, but not limited to, the applicant’s business needs

and financial status, as well as whether the positions can be established and liquidated

in an orderly manner.

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January December2023
(f) Nothing in this Rule 530 shall in any way limit:

(1) the authority of the Exchange to take Eemergency 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 position limit provided for in Rule 532.

(g) A Person who has received written authorization from the Market Regulation Department

for an exemption from position limits must annually file an updated application on the

date which is one (1) 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.

(i) 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 (2) 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 Rule 530(j) below, any Person

holding positions in more than one (1) 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

47

January December2023
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.

(j) 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 FCMFutures 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.

(k) 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 Exchange Rules regarding position limits.

(3) 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 (1) 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.

(4) A Clearing Firm 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 to exceed one (1) Business Day, as the Clearing Firm may

require to investigate and liquidate the excess Customer positions.

(5) A Customer who exceeds the position limits as a result of maintaining positions

at more than one (1) Clearing Firm shall be deemed to have waived

confidentiality regarding theirhis positions and the identity of the Clearing Firms

at which they are maintained. A Clearing Firm carrying such positions shall not

be in violation of this Rule if, upon notification by the Market Regulation

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January December2023
Department, 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 (1) Business Day.

(6) Violations, Sanctions and Appeals.

i. First Violation. The first position limit violation by a Participant will result

in a warning letter issued by the Market Regulation Department, with a

copy provided to the carrying Clearing Firm(s). In circumstances where

the carrying Clearing Firm 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 Firm(s).

ii. Second Violation, Sanctions and Appeals.

(a) A second position limit violation by a Participant within twenty

four (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 Participant as set forth below and the

issuance of a cease and desist order.

(b) The automatic fine for a position exceeding the applicable limit by

up to 25% shall be $5,000.

(c) The automatic fine for a position exceeding the applicable limit by

more than 25% shall be $15,000.

iii. Referral to the Chief Regulatory Officer.

(a) Any third or subsequent position limit violation within twenty four

(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) Notwithstanding Rule 532(k)(5)(iv)(a), 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.

iv. Appeal. Parties may, within ten (10) Business Days of being provided

notice of sanctions issued pursuant to this section, request an appeal to

the Exchange Practices Committee.

(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 (1) of the

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.

49

January December2023
(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) Arbitrary, capricious, or an abuse of the Market

Regulation Department’s discretion;

(ii) In excess of the Market Regulation Department’s

authority or jurisdiction; or,

(iii) Based on a clearly erroneous application or interpretation

of Exchange Rules.

(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 who holds or controls, or a Participant Firm or Clearing Firm 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 Department,

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 Rrule, all positions in accounts for which a Participant, by power of

attorney or otherwise, directly or indirectly controls trading shall be included with the

positions held by such Participant. The provisions of this Rrule shall apply to positions

held by two (2) or more Participants 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 Participant.

RULE 532. Reports of Large Positions and Ownershipand Control Reporting

(a) Large Trader Reporting.

(1) Clearing Firms and/or Participant Firms 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”).

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January December2023
(2) Positions at or above the Reportable Futures Level in a discrete cCommodity

cCode trigger reportable status. For a person in reportable status in a discrete

cCommodity cCode, all positions, regardless of size, in the same discrete

cCommodity cCode must be reported.

(3) All Large Trader Reports shall be submitted in a form acceptable to the Market

Regulation Department. The Exchange may require that more than one (1)

Large Trader Report be submitted daily. The Regulatory Oversight Committee

or the Market Regulation Department may require reports from any Clearing

Firm or Participant Firm on a lesser number of positions than reflected in the

Table in Rule 533.

(b) Ownership and Control Reporting.

(1) Clearing Firms and/or Participant Firms must provide the Market Regulation

Department with the required CFTC Form 102A and/or Form 102B identifying

the owner, any controlling parties and any additional required information for

each reportable account. A reportable account for the purposes of this Rule

532(b)(1) is an account at or above the Reportable Futures Level and/or the

Volume Threshold Reportable Level as identified in the table in Rule 533.

(2) The applicable Form 102A and/or Form 102B must be submitted to the Market

Regulation Department no later than 9:00 AMam Eastern Time on the Business

Day following the date on which the account becomes reportable. Additionally,

Clearing Firms and/or Participant Firms must submit a revised form reflecting

any material changes to the information previously provided to the Market

Regulation Department within three (3) 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 covering Position Limit, Position Accountability,

Reportable Level, and Volume Thresholds will be made available to Market Participants.

Product CDE Code Contract

Size

Aggregate

Into Futures

Aggregate

Ratio

CFTC

Reporting

Limit

Exchange

Reporting

LevelLimit

Position Limit

Nano Bitcoin Futures BIT 0.01 BTI 100 BIT = 1

BTI

25 25

20,000 (BTI Aggregate)

Bitcoin Futures BTI 1 BTI N/A 25 25

Nano Ether Futures ET 0.1 ETI 100 ET = 1

ETI

25 25

40,000 (ETI Aggregate)

Ether Futures ETI 10 ETI N/A 25 25

Micro Crude Oil Futures OIL 100 OIL N/A 350 350 5,000 three (3) days prior

to the end of trading in the

spot month

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January December2023
RULE 534. The Exchange Trading System Access Restrictions

(a) All Participants permissioned to connect to the Exchange Trading System, including

direct connections of Participants, to the extent permitted by the Exchange, must be

guaranteed by a Clearing Firm that assumes financial responsibility for the Participant.

With respect to Ttransactions given up to other Clearing Firms, such guarantee is

effective only until such time that the other Clearing Firm accepts the Ttrade. A Ttrade

given up to another Clearing Firm will be deemed to have been accepted by such

Clearing Firm if the Ttrade is not rejected by the close of business on the Bbusiness

Dday following the Ttrade date. The acceptance of a Ttrade by a Clearing Firm shall not

relieve any Participant, Authorized Trader, or Clearing Firm of the duty to act in

accordance with the Rules.

(b) All individuals entering Customer Orders in other than in a clerical capacity must have

appropriate industry registration. Customer Orders may be entered only from the

premises of an entity registered to conduct Customer business.

(c) Clearing Firms shall assist the Exchange in any investigation into potential violations of

the Exchange Rules or the CEA which occur through or with respect to an Exchange

Trading System connection guaranteed by the Clearing Firm. Such assistance must be

timely and may include, but not be limited to, requiring any 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 shall

suspend or terminate a Participant’s or Customer’s access if the Exchange determines

that the actions of the Participant or Customer threaten the integrity or liquidity of any

Contract or violate any Exchange Rule or the CEA, or if the Customer fails to cooperate

in an investigation.

(d) If a Clearing Firm has actual or constructive notice of a violation of Exchange Rules in

connection with the use of the Exchange Trading System by a Participant or Customer

for which it has authorized a direct connection and the Clearing Firm fails to take

appropriate action within a reasonable length of time, the Clearing Firm may be found to

have committed an act detrimental the Exchange.

RULE 535. Identification of Authorized Traders and Authorized Brokers

Each Authorized Trader, Authorized Broker, and Customer (including, if the Ccustomer is an

entity, the individual who is authorized to utilize the Exchange on behalf of the Customer) shall

be identified to the Exchange by a unique identifier, in the manner prescribed by the Exchange,

and shall be subject to Exchange Rules. It is the duty of the Clearing Firm and Participant Firm

to ensure that each Authorized Trader, Authorized Boker, or Customer of the firm has been

assigned and uses a unique identifier to access the Exchange Trading System. In no event

may a Person enter an Order or permit the entry of an Order by an individual using a unique

identifier other than the individual’s own unique identifier.

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

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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,

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:

(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 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 (DCC); 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.

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January December2023
(b) NOTWITHSTANDING SUBSECTION (a), (c), (e), ORor (f) Of THIS RULE 536, IN NO

EVENT SHALL THE PLATFORM TECHNOLOGY SERVICES PROVIDER 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 PROVIDER

REFERS TO THE SPECIFIC TECHNOLOGY SERVICES PROVIDER PROVIDING

SERVICES AT THE INCEPTION OF THE EXCHANGE AS A DESIGNATED

CONTRACT MARKET.

(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

EXCHANGE 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 (2) YEARS FROM THE TIME THAT A CAUSE OF ACTION

HAS ACCRUED. THIS PARAGRAPH ( d) 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 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 EXCHANGE.

(f) MARKET OPERATIONS OR OTHER EXCHANGE STAFF AND/OR ORDER STATUS

ERRORS PROVIDED BY EXCHANGE MARKET OPERATIONS 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

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January December2023
DISPUTED CLAIM PURSUANT TO THIS PARAGRAPH ( e) MUST BE ARBITRATED

PURSUANT TO CHAPTER 8.

(g) 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. 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. 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. The Derivatives CommandExchange Control Center

(a) Customer Support.

(1) The DerivativesExchange CommandControl Center (“DCC”) provides tThe

Exchange Trading System customer support and problem management only to

Clearing Firms, Participants and Authorized Traders.

(2) In order to be eligible for DCC support, such Persons must be identified on a

Participant as an authorized contact with the DCC (“Authorized Contacts”). The

DCC provides customer support via a specified telephone number and during

specified hours.

(3) DCC employees may not always be available to assist Authorized Contacts.

(4) Persons other than Authorized Contacts must contact their Clearing Firms to

make support requests.

(b) DCC Communications.

(1) As provided in Rule 537, the Exchange shall not be liable for any loss resulting

from any inability to communicate with the DCC.

(2) The liability of the Exchange for the negligent acts of DCC staff shall be subject

to the limitations and conditions of Rule 537.

(3) In no event, however, shall the Exchange be liable for the negligence of the

DCC if the Person claiming to have suffered a loss could have secured the

support it sought from DCC 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

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January December2023
the time the DCC took action.

(c) Order Status.

(1) A Person who believes he has received an incorrect Order status or does not

receive an appropriate status shall immediately notify the DCC. 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 537.

(2) 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 the DCC 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 the DCC. Any liability of the Exchange shall be subject to the

liability caps and conditions of Rule 537.

RULE 538. The Exchange Trading System Algorithms

The Exchange Ttrading Ssystem and matching algorithm is designed to provide a fair,

transparent, and efficient market for Participants. The Exchange will uses a price-time priority

matching algorithm for its Central Limit Order Book (“CLOB”), providing a fully inclusive,

real-time, and accurate market data to all Participants. To match Orders, the Exchange uses an

anonymous, FIFO (first in, first out) execution algorithm using the Order’s price-time priority. All

Orders received are prioritized in accordance with Order’s effective limit price. Orders with the

same effective limit price are prioritized in accordance with the time they were received by the

Exchange Trading System. The first Order received at the Contract's best price level (the

highest bid or lowest offer) is the first Order to match with an opposite side Order.The Exchange

trading system will allocate an incoming aggressor order among the Lead Market Maker’s

resting orders at the best price using the price-time priority matching algorithm with any

remaining quantity allocated to all other Oorders at the best price using the price-time priority

matching algorithm.

RULE 539. Trade Cancellations and Price Adjustments

(a) DCCExchange Control Center Authority Regarding Trade Cancellations and Price

Adjustments.

(1) The EXchange Control Center (“DCC”) has authority to adjust Ttrade prices or

cancel (bust) trades when such action is necessary to mitigate market disrupting

events caused by the improper or erroneous use of the Exchange Trading

System or by system defects.

(2) Notwithstanding any other provisions of this Rule, the DCC may adjust Ttrade

prices or bust any Ttrade if the DCC determines that allowing the Ttrade to

56

January December2023
stand as executed may have a material, adverse effect on the integrity of the

market.

(3) All decisions of the DCC shall be final.

(b) Review of Trades.

(1) The DCC may determine to review a Ttrade based on its independent analysis

of market activity or upon request for review by a Participant or Customeruser of

the Exchange Trading System. A request for review must be made to the DCC

via phone within ten (10) minutes of the execution of the Ttrade.

(2) The DCC shall determine whether or not a Ttrade 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 the

DCC deems it to be appropriate, the DCC may determine, in its sole discretion,

that a Ttrade shall not be subject to review.

(3) Upon deciding to review a Ttrade, the DCC will promptly issue an alert to all

Participants via the Exchange Trading System or electronic mail indicating that

the Ttrade is under review.

(c) Price Adjustments and Cancellations.

(1) In reviewing a Ttrade, the DCC will first determine whether the Ttrade price is

within the nNon-rReviewable rRange for Ffutures or within the bBid/aAsk

rReasonability aAllowance for options, as described in Rule 539(g). The

bBid/aAsk rReasonability aAllowance for an Ooption is the maximum width of

the bid/ask range which will be considered reasonable for use in applying the

parameters necessary to establish the nNon-rReviewable rRange for the

Ooption.

(2) In applying the nNon-rReviewable rRange, the DCC shall determine the fair

value market price for that Ccontract at the time the Ttrade under review

occurred. The DCC may consider any relevant information, including, but not

limited to, the last Ttrade price in the Ccontract or a better bid or offer price on

the Exchange Trading System, a more recent price for a different maturity date,

the price of the same or related Ccontract established in another venue or

another market, the market conditions at the time of the Ttrade, and the

theoretical value of an Ooption based on the most recent implied volatility.

(3) Trade Price Inside the Non-Reviewable Range. If the DCC determines that the

price of the Ttrade is inside the nNon-rReviewable rRange, the DCC will issue

an alert indicating that the Ttrade shall stand.

(4) Trade Price Outside the Non-Reviewable Range.

i. Futures Contracts

If the DCC determines that a Ttrade price is outside the

nNon-rReviewable rRange for a Ffutures Ccontract, the Ttrade price shall

be adjusted to a price that equals the fair value market price for that

Ccontract at the time the Ttrade under review occurred, plus or minus the

nNon-rReviewable rRange. If the Ttrade at issue involves multiple parties,

prices and/or Ccontracts, the DCC has the authority, but not the

obligation, to bust or price adjust such Ttransactions. The DCC will issue

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January December2023
an alert regarding its decision.

ii. Option Contracts.

If the DCC determines that a Ttrade price is outside the applicable

nNon-rReviewable rRange for an Ooption Ccontract, the Ttrade 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 BBid/aAsk

rReasonability aAllowance in Section G plus (minus) the

nNon-rReviewable rRange. If the Ttrade in questionat issue involves

multiple parties, prices and/or Ccontracts, the DCC has the authority, but

not the obligation, to bust or price adjust such Ttransactions. The DCC

will issue an alert regarding its decision.

iii. Busted or adjusted Ttrades 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 Ttrade price.

(d) Alternative Resolution by Agreement of Parties.

(1) With the approval of the DCC, parties to a Ttrade that is price adjusted may

instead mutually agree to cancel the Ttrade.

(2) With the approval of the DCC, parties to a Ttrade that is busted may instead

mutually agree to price adjust the Ttrade to a price consistent with the

adjustment provisions of Rule 539(c).

(3) Subject to section (d)(1) and (d)(2), parties to a Ttrade that is cancelled or price

adjusted may mutually agree to a cash adjustment provided that such

adjustments are reported to the DCC and the parties maintain a record of the

adjustment.

(4) An executed Ttrade may not be reversed via transfer except where such Ttrade

is determined by DCC to be outside of the nNon-RReviewable RRange but not

reported timely, subject to agreement of the parties and approval of the DCC.

Any such transfer must occur at the original Ttrade 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 Oorder that results in a price adjustment or Ttrade bust shall

be responsible for demonstrated claims of realized losses incurred by persons

whose Ttrade 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 (1) Bbusiness Dday 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 Oorder(s) that resulted in a Ttrade

bust or a price adjustment and to the Clearing Firm through which the Ttrade

was placed. Such party, or the Clearing Firm on behalf of the party, shall, within

ten (10) Bbusiness Ddays of receipt of the claim, admit or deny responsibility in

whole or in part. Failure to respond to the claim within ten (10) Bbusiness Ddays

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January December2023
shall be considered a denial of liability.

(3) To the extent that liability is admitted, payment shall be made within ten (10)

Bbusiness Ddays. Unless otherwise agreed upon in writing by the parties,

failure to make the payment within ten (10) Bbusiness Ddays 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 DCC within ten (10) Bbusiness Ddays of the date the party was

issued notification that liability was denied.

(f) Schedule of Administrative Fees.

When DCC busts or price adjusts a Ttrade, the party responsible for entering the Oorder

into the Exchange Trading System that gave rise to the Ttrade bust or price adjustment

shall pay an administrative fee to the Exchange in the amount of $500 for each such

occurrence.

(g) Exchange Entity Non-Reviewable Ranges will be made available on the Exchange

website, https://www.coinbase.com/derivatives. https://www.lmxlabs.com.

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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 Ttransactions.

(b) Products designated for Block Trades.

(1) Bitcoin Futures (BTI Contract)

(2) Ether Futures (ETI Contract)

(c) The following shall govern Bblock Ttrades:

(1) A Bblock Ttrade must be for a quantity that is at or in excess of the applicable

minimum threshold. Orders may not be aggregated in order to achieve the

minimum Ttransaction size, except by those entities described in Sections (9)

and (10) below and as provided in Rule 601(c)(2).

(2) Each Person to a Bblock Ttrade must be an Eligible Contract Participant, as

defined in Section 1a(18) of the Commodity Exchange Act.

(3) A broker for a Person shall not execute any Oorder by means of a Bblock Ttrade

for a Person unless such Person has specified that the Oorder be executed as a

Bblock Ttrade.

(4) The price at which a Bblock Ttrade is executed must be fair and reasonable in

light of (i) the size of the Bblock Ttrade;, (ii) the prices and sizes of other

Ttransactions in the same Ccontract at the relevant time;, (iii) the prices and

sizes of Ttransactions in other relevant markets, including without limitation the

underlying cash market or related futures markets, at the relevant time;, and (iv)

the circumstances of the markets or the Participants to the Bblock Ttrade.

(5) Block Ttrades shall not set off conditional Oorders (e.g., Stop Orders and MIT

Orders) or otherwise affect Oorders in the regular market.

(6) One of the Persons or the broker of one of the Persons to the Bblock Ttrade

must ensure that each Bblock Ttrade is reported to the Exchange within fifteen

(15) minutes of the Ttransaction. The Exchange shall promptly publish such

information separately from the reports of Ttransactions in the regular market.

(7) Reporting Method and Information.

i. Block Ttrades must be reported to the Exchange by emailingcalling the

DCCExchange Control Center or in accordance with another approved

reporting method.

ii. The Bblock Ttrade report must include the information related to the

Bblock Ttrade specified in the Exchange’s approved reporting method,

including: the identification of parties to the Bblock Ttrade; product details;

Ttrade quantity, price, and time; and, Clearing Firm.

(8) Clearing Firms, Participants, Participant Firms, and Broker Firms involved in the

execution of Bblock Ttrades must maintain a record of the Ttransaction in

accordance with Rules 401.

(9) 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 Advisors Act of 1940, or principal thereof,

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January December2023
shall be the applicable entity for purposes of Sections (1), (2), (3), and (4) and

(5), provided such advisors have total assets under management exceeding $25

million and the Bblock Ttrade is suitable for the Ccustomers of such advisors.

(10) A foreign Person performing a similar role or function to a CTA or investment

advisor as described in (9)Section 10, or principal thereof, and subject as such to

foreign regulation, shall be the applicable entity for purposes of Sections (1), (2)

(3), and (4) and (5), provided such Persons have total assets under management

exceeding $25 million and the Bblock Ttrade is suitable for the Ccustomers of

such Persons.

RULE 602. Exchange of Derivatives for Related Positions

(a) The Exchange shall designate the products in which Exchange of Derivatives for

Related Position (“EDRP”) are permitted.

(b) EDRPs Permitted

None.

(c) Nature of an EDRP

(1) An EDRP consists of two (2) discrete but related simultaneous transactions.

One (1) 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) 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.

(d) Related Positions

The related position (cash, OTC swap, OTC option, or other OTC derivative) must be a

derivative or related product of such Contract that has a reasonable degree of price

correlation and quantitative equivalence to the Contract.

(e) Quantity

The quantity covered by the related position must be approximately equivalent to the

quantity covered by the Exchange Contracts.

(f) 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 rules governing the pertinent

Contracts, at such prices as are mutually agreed upon by the two (2) parties to the

transaction.

(g) 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.

(h) Termination of Trading in Exchange Contracts

EDRP transactions may be permitted after termination of trading in expiring Contracts,

as prescribed in the applicable rules governing such Contracts. Such transactions shall

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January December2023
not establish new positions.

(i) Identification and Submission to the Exchange

Each EDRP transaction shall be designated as such and shall be cleared through the

Clearing House. Each such transaction shall be submitted to the Exchange within the

time period and in the manner specified by the Exchange. Participant Firms are

responsible for exercising due diligence as to the bona fide nature of EDRP

transactions submitted on behalf of Customers.

(j) Documentation

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

submitting Participant Firm to provide such requested documentation on a timely basis.

(k) 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.

(l) Large Trader Requirements for EDRP Transactions

Each Clearing Firm, Participant Firm, 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 Ccontract

month, and additionally for exchange of options for optionsEOOs, by put and call strike.

The information must be included in the daily Large Trader report to the Exchange.

RULE 603. 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.

(b) Such record shall also include an electronic timestamp reflecting the date and time

such Order was executed or cancelled.

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CHAPTER 7: DISCIPLINARY RULES

RULE 701. General

(a) All Participants shall be subject to the Exchange’s jurisdiction. All Participants are

subject to this Chapter 7 if they, or with respect to a Participant, 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 Exchange Rules with respect to a proceeding in which the Director is a member of

the relevant Appeal Panel.

(d) Any Participant may be represented by counsel during any Disciplinary Action pursuant

to this Chapter 7.

(e) Participant Liability – Individual and Joint Liability/Controlling Person Liability

(1) The Exchange may hold a Participant liable for, and impose sanctions against

such Participant, for such Participant’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 Participant, (B) other Supervised Person

of such Participant, (C) other Person using a User ID of such Participant or (D)

other agent or representative of such Participant, in each case, that constitute a

violation as if such violation were that of the Participant.

(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 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

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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 Rrule 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 Iinvestigative Rreports and make recommendations concerning

initiating disciplinary proceedings;

(3) prosecute alleged violations within the Exchange’s disciplinary jurisdiction; and,

(4) represent the Exchange on appeal from any disciplinary proceeding, summary

imposition of fines, summary suspension or other summary action.

(c) Each Participant:

(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 Exchange Rule;

ii. any inquiry or investigation; or

iii. any preparation by 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 Exchange Rule;

ii. any inquiry or investigation; or

iii. any preparation by and presentation during a Disciplinary Action; and

(3) may not impede or delay any Disciplinary Action.

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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 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 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 (1) warning letter for the same potential violation may be issued to the

same Participant during a rolling twelve (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 Investigativeinvestigation Rreport, 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 (1) 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.

(c) If the respondent has requested a hearing, a copy of the hearing must be made and

must become a part of the record of the proceeding. The record must be one that is

capable of being accurately transcribed; however, it need not be transcribed unless the

transcript is requested by Commission staff or the respondent, the decision is appealed

pursuant to the rules of the designated contract market, or is reviewed by the

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Commission pursuant to section 8c of the Act or part 9 of this chapter. In all other

instances a summary record of a hearing is permitted.

RULE 705. Review of Investigative Reports

(a) Review of Investigative Reports by the Chief Regulatory Officer

(1) Within thirty (30) days of the receipt of a completed Investigative Report, the

Chief Regulatory Officer will review the completed InvestigativeInvestigation

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 in which

case the Chief Regulatory Officer shall provide a written explanation ; 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 in which case the Chief

Regulatory Officer shall provide a written explanation ; 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.

(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 thirty (30) days of

such receipt, must take one (1) 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 and the Chief Regulatory Officer shall

provide the written statement; or .

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.

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(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 7053(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 Exchange 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 or she has the right to be represented by legal

counsel or any other representative of its choosing in all succeeding stages of

the disciplinary process; provided, however, that the respondent may not be

represented by any member of the Exchange’s Board or Disciplinary Panel, any

employee of the Exchange, or any person substantially related to the underlying

investigations, such as material witness or other respondents;

(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 twenty (20) days after service

of the notice of charges;

(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 twenty (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

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(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 (1) 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.

(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 twenty (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 Ccustomer restitution where Ccustomer

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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 Rrule 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

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.

(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 (1) -year, subject to reappointment by the Board, as

potential participants on the Disciplinary Panels. The Chief Regulatory Officer shall

recommend at least three (3) individuals that will satisfy the conditions of a Public

Individuals and at least three (3) 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 (1) 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

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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 ten (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 Chief Regulatory Officer 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 Pperson shall serve on a Disciplinary Panel unless that Pperson 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 Pperson or any other information which

may come to theirhis attention in theirhis official capacity as a member of the

Disciplinary Panel, except when reporting to the Board, or to a committee or the

Market Regulation Department 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.

(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.

(i) The Disciplinary Panel must not include any members of the Exchange’s Market

Regulation Department or any person involved in adjudicating any other stage of the

same proceeding.

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

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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 Chief

Regulatory Officer of the Exchange, or theirits 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.

(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 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

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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) appear personally at the hearing;

(3) call and examine witnesses; and

(4) 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)(3) above will be given reasonable notice, confirmed in

writing, specifying the date, time and place of the hearing, and the caption of the

disciplinary proceedings. All Participants (that are individuals), Authorized Traders and

other Supervised Persons 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, specifically the Exchange requires persons within its jurisdiction,

who are called as witnesses, to participate in the hearing and to produce evidence.

(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 Participant, Authorized

Trader or 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

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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 InvestigativeInvestigation Report;

(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 twenty (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 Exchange Rules, the

Exchange will impose sanctions if any Participant, Authorized Trader, other Supervised

Person or other Person using any of the Participant’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. All sanctions imposed by the Exchange or

the Disciplinary Panels must be commensurate with the violations committed and must

be clearly sufficient to deter recidivism or similar violations by other Participants. In the

event of demonstrated Ccustomer harm, any sanction must also include full Ccustomer

restitution.

(b) The Exchange may impose one (1) or more of the following sanctions or remedies:

(1) a warning letter, provided, however, no more than one (1) warning letter may be

issued per rolling twelve (12) -month period for the same violation;

(2) censure;

(3) limitation on Trading Privileges, ability to otherwise access the Exchange

Trading System, and/or other activities, functions or operations;

(4) suspension of Trading Privileges and/or ability to otherwise access the

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Exchange Trading System;

(5) fine (subject to paragraph (cb) below);

(6) restitution or disgorgement;

(7) termination of Trading Privileges and/or ability to otherwise access the

Exchange Trading System; and/or

(8) any other sanction or remedy deemed to be appropriate.

(c) 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

thirty (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 (3%).

The Exchange has sole discretion to select the bank on whose quotations to base the

prime rate. The Participant will be responsible for paying any fine or other amount

imposed on, but not paid by, any of its Authorized Traders or Supervised Persons.

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

Participant, whose Authorized Trader, Supervised Person 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

twenty (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 718 (a)01(f) with

respect to any denial or limit on Trading Privileges or ability to otherwise access the

Exchange 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 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) The Chief Regulatory Officer will forward copies of any notice of appeal received by it to

all parties ofto the disciplinary proceeding or summary action, as the case may be,

except the appellant. On or before the twenty (20)th days after filing a notice of appeal,

the appellant must file with the Chief Regulatory Officer, and serve on the Market

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Regulation Department, a brief supporting the notice of appeal and documents

supporting the brief. On or before the twenty (20)th days after the date on which the

appellant serves supporting brief, the appellee must file and serve its brief in opposition

with the Market Regulation Department. On or before the ten (10)th days 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 thirty (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 Panel for a term of one (1) 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 ten (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 Chief

Regulatory Officer 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.

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(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 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 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 (on

behalf of itself or any of its Authorized Traders, other Supervised Persons 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, costs, 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 Exchange Rules; and

(3) to keep any books and records required by the 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 Participant or

Authorized Trader subject thereto. The notice will specify:

(1) the violations of the 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 twenty (20) days of serving the notice of fine, the 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 twenty (20) days after the notice of

fine is served on the 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 Participant (or any of its Authorized Traders or other Supervised Persons)

or Authorized Trader, as the case may be.

RULE 718. Summary Suspensions and Other Summary Actions

(a) Notwithstanding anything in the Exchange Rules to the contrary, the Chief Regulatory

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Officer may, after consultation with the Regulatory Oversight Committee, if practicable,

summarily suspend, revoke, limit, condition, restrict or qualify a Participant’s

Trading Privileges and/or ability to otherwise access the Exchange Trading System,

and may take other summary action against any Participant or any of its Authorized

Traders or Supervised Persons in accordance with the Exchange Rules; provided,

however, that the Chief Regulatory Officer must reasonably believe that the business,

conduct or activities of the Participant or any of its Authorized Traders or Supervised

Person 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.

Should the Chief Regulatory Officer be unavailable or unable to take summary action

against a Participant, then the Chief Regulatory Officer designee, after consultation with

the Regulatory Oversight Committee and Exchange Officers and after notification to the

Chief Regulatory Officer, is authorized to take such summary action.

(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 twenty (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

Exchange 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 Participant, Authorized

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Trader or other Supervised Person to appear as witnesses and produce evidence if

the Appeals Panel determines that the evidence is relevant.

(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 Exchange

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

7148(b) above. The Appeals Panel’s order may not be appealed.

RULE 719. Rights and Responsibilities after Suspension or Termination

(a) When a Participant’s or Authorized Trader’s Trading Privileges and/or ability to

otherwise access the Exchange Trading System are suspended for a period of twelve

(12) months or less, none of its rights (including the right to hold oneself out to the

public as a Participant or Authorized Trader, enter Orders into the Exchange Trading

System and receive Participant rates for fees, costs, and charges and deposit margin at

Participant levels) will apply during the period of the suspension, except for the right of

the Participant or Authorized Trader in question to assert claims against others as

provided in the Exchange Rules. Any such suspension will not affect the rights of

creditors under the Exchange Rules or relieve the Participant or Authorized Trader in

question of its, his or her obligations under the 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

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 Participant or Authorized

Trader before, during or after the suspension.

(b) When a Participant’s or Authorized Trader’s Trading Privileges and/or ability to

otherwise access the Exchange Trading System are terminated, all of its related rights

will terminate, except for the right of the Participant or Authorized Trader in question to

assert claims against others, as provided in the Exchange Rules. Any such termination

will not affect the rights of creditors under the Exchange Rules. A terminated Participant

or Authorized Trader may only seek to be reinstated by applying for Trading Privileges

pursuant to Rule 302.

(c) The Exchange will not consider the application of a terminated Participant or Authorized

Trader if such Participant 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 Participant or Authorized Trader remains subject to the

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, disciplinary

proceeding, appeal of disciplinary proceedings, summary suspension or other summary

action as if the suspended or terminated Participant or Authorized Trader still had

Trading Privileges or ability to otherwise access the Exchange Trading System.

(e) In the event of the suspension or revocation of a Participant’s Trading Privileges and/or

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ability to otherwise access the Exchange Trading System, the Exchange shall seek to

facilitate the transfer of any Customer Accounts held by such Participant to other

Participants with Trading Privileges and/or ability to otherwise access the Exchange

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 Participants.

(1) It is contrary to the objectives and policy of the Exchange for Participants to

litigate Exchange-related disputes. Participants must arbitrate all disputes

between or among themselves that relate to or arise out of any Ttransaction on

or subject to the Exchange Rules that are based upon facts and circumstances

that occurred at a time when the parties were Participants, through the National

Futures Association Arbitration Program. Such arbitration shall be conducted

pursuant to the Rules and the rules of the National Futures Association

Arbitration Program. The Code of Arbitration is located at: and the Member

Arbitration Rules are located at:

http://www.nfa.futures.org/nfamanual/NFAManualTOC.aspx?Section=6.

(2) Notwithstanding the foregoing, this Rule 801 does not require an employee of a

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.

Claims against the Exchange pursuant to the provisions of Rules 536, 537 and/or Rule

539 can be submitted to arbitration through the National Futures Association Arbitration

Program or another arbitration program permitted by the CFTC Regulations. Such

arbitration shall be conducted pursuant to the Rules and the rules of the arbitration

pProgram.

(c) Permissive Arbitrations.

The following may be submitted for arbitration through the National Futures Association

Arbitration Pprogram and, in the event such a claim is submitted against a Participant,

that Participant is required to arbitrate the dispute under these Rules, unless otherwise

provided:

(1) claims of a Customer that is not a Participant against a Participant that relate to

or arise out of any Ttransaction on or subject to the Exchange Rules;

(2) claims against a Participant pursuant to Rule 539;

(3) claims of a Customer that is not a Participant against a Clearing Firm

responsible for the performance of a Contract on or subject to the Exchange

Rules and/or against a Participant in connection with such a Ttransaction; and

(4) at the discretion of the Chief Regulatory Officer, any claim involving the interests

of the Exchange, its Participants, 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 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 National Futures Association to hear and determine the claim or appeal.

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(e) Referral to the National Futures Association Arbitration Program.

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

NFA Arbitration Program.

(f) The Exchange is adopting the NFA Code of Arbitration and Arbitration Rules as set

forth in the Rule 801. Any violation of the NFA Code of Arbitration or the Arbitration

Rules or related 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

National Futures Association Arbitration Program.

(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 DFCC Personnel or any other Exchange staff.

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 Rrule.

(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 National Futures Association Arbitration Program within ten (10) Bbusiness

Ddays 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 chair of the Hearing Panelchairman, be

consolidated for a single hearing.

(d) Award.

(1) Any award by the National Futures Association Arbitration Panel 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 National Futures Association Arbitration Panel

shall be final and binding, and there shall be no appeal to a Hhearing Panel or

Appeal Panelcommittee of the Exchange. A party may move, within three (3)

Bbusiness Ddays 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 Participant directed to pay an award shall submit payment of the amount due

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directly to the Participant receiving the award. An arbitration award must be

satisfied within fifteen (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 fifteen (15) days of receipt of the corrected notice of decision.

(4) A Participant making payment must submit proof of payment to the Market

Regulation Department no later than the Bbusiness Dday following payment.

(5) Any 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 Rrules respecting proration among claimants where

damages allowed for a defined period of time exceed any limit imposed by

Exchange Rules.

(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 Ttrade 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.

RULE 902. Criteria for Becoming a Clearing Firm

(a) Any entity meeting the requirements of, and approved for, clearing membership at the

Clearing House may be approved as a Clearing Firm.

(b) Applicants wanting to become a Clearing Firm to be approved as a Clearing Firm must

satisfy the following criteria:

(1) be an entity meeting the requirements of, and approved for, clearing

membership at the Clearing House and in good standing;,

(2) meet the minimum capital requirement as determined by the Clearing House;,

and

(3) satisfy the Clearing Firm provisions set forth in Rule 903.

(c) A Clearing Firm that seeks to effect Ttransactions on the Exchange Trading System for

its own account or the account of its Customer as a Participant, must satisfy the

provisions set forth in Rule 903, in addition to those set forth in Chapter 4 and Rule

902(b).

(d) The Exchange evaluates and monitors a Clearing Firm’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 Firm’s compliance with the criteria set

forth in this Rule 902.

(e) By becoming a Clearing Firm, a Clearing Firm and its Supervised Persons agree to

cooperate with the Exchange in any such monitoring.

(f) Clearing Firms shall have the right to clear Contracts subject to Clearing House Rules.

RULE 903. Clearing Firm Application Process and Obligations

(a) A Clearing Firm applicant shall apply using the Exchange application form, providing

the information, and following the procedures established by the Exchange.

(b) A Clearing Firm that clears Contracts on behalf of a Participant(s) and that effects

Ttransactions for the Clearing Firm account and/or the Customer(s) of the Clearing

Firm must:

(1) Register with the Exchange by submitting a Clearing Firm Agreement;

(2) Be approved as a clearing member of the Clearing House;

(3) Agree in writing to abide by the Rules of the Exchange and Applicable Law;

(4) Agree to act as a Clearing Firm for such Participant(s);

(5) Agrees that it will be financially responsible for: (i) any Ttransactions effected on

the Exchange and for any use of the Exchange Trading System made by

Clearing Firm, Clearing Firm’s Authorized Traders, Participant Firm or

Participant Firm’s Authorized Traders; and (ii) all Participant orders that are

entered using User IDs assigned by the Exchange to the Clearing Firm and for

clearing any Ttrades that are matched as a result of such orders.

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January December2023
(6) Clearing Firm will be responsible to clear such Ttrades even if the Oorders

received via the Exchange Trading System: (a) exceeded Clearing Firm’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 the Exchange;

and, (c) were entered by an unknown or unauthorized user;.

(7) Agree that it will accept full responsibility for any Ttransactions effected on the

Exchange and for any use of the Exchange Trading System made by Clearing

Firm or Clearing Firm’s Authorized Traders;.

(8) Maintain all required and necessary regulatory approvals and/or licenses to

operate as a Clearing Firm or Authorized Trader on the 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; and,

(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.

(c) If 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 Firm.

(d) The Exchange may deny, condition or terminate the Clearing Firm 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 Firm;

(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) Ffor 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

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January December2023
Affected Person may request in writing that the Exchange Participant Committee

reconsider the determination.

(f) Within twenty-eight (28) calendar days of receiving 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, 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.

(h) In the event of a default that occurs or has occurred in relation to a Clearing Firm with

open positions in any Contract in a proprietary or Ccustomer Aaccount, each other

Clearing Firm shall cooperate with the Clearing House 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.

(b) The Clearing House provides clearing services for the Contracts. The Exchange

conducts surveillance related to this Rule 904.

(c) The Clearing House Rules shall prevail in the event of any conflict or inconsistency

between the Exchange Rules and the Clearing House Rules with respect to any

Clearing Firm responsibilities or obligations under the Clearing House Rules. All

Clearing Firms are bound by the Clearing House Rules.

RULE 905. Other Clearing Organizations

Should the Exchange designates a different clearing organization other than the current

Clearing House for the clearance of Contracts with respect to which there are open positions

due to the termination of the agreement between the Exchange and the current Clearing House,

each Clearing Firm shall, as of the close of business on the second (2nd) Business Day prior to

the effective date of such designation (notice of such effective date to be provided at least sixty

(60) days in advance of the effective date), either become a Clearing Firm of such successor

clearing organization, or cause any such open Contracts carried by it either to be transferred to

a Clearing Firm of such successor clearing organization or to be liquidated.

RULE 906. Daily and Final Settlement Prices

The Exchange will determine the Daily and Final Settlement Price for Contracts. For each

Contract, the Exchange shall publish a Ddaily Ssettlement Pprice, and on the Contract’s

expiration, a Final Settlement Price, and information regarding volume, open interest and

opening and closing ranges. Any settlement valueprice shall be determined by the Exchange in

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January December2023
accordance with its procedure except where the Clearing House believes that such settlement

valueprice does not reasonably reflect the value or price of the Contract, in which case the

Clearing House will determine the settlement valueprice in accordance with the Clearing House

Rules. All Contracts are cash settled at expiration.

(a) Definitions of the lead and non-lead month. The lead month is the Contract nearest to

expiration for a particular Exchange product. The lead month is the anchor leg for

settlements with the expectation of having the most activity. All other Contracts not the

lead month are the non-lead month.

(b) Daily Settlement Price

(i) For all Exchange energy Futures Contracts, the following applies, unless

otherwise indicated.

(1) Lead Month

a) If a Trade occurs in the sixty (60) seconds prior to 1:30 PM CT, the

Daily Settlement will be calculated using the VWAP of such

Trades, rounded to the nearest tradable tick.

b) If there are no Trades during this time, the Exchange will use the

TWAP of the Futures Contract’s midpoint of the bid/ask from the

sixty (60) seconds prior to 1:30 PM CT, rounded to the nearest

tradable tick.

c) If a two-sided market is not available, the last Traded price of the

current trade day will be used. If there are not any Trades for that

day, the Contract will use the prior day’s settlement price.

(2) Non-Lead Month

a) If a Trade occurs in the sixty (60) seconds prior to 1:30 PM CT, the

Daily Settlement will be calculated using the VWAP of such

Trades, rounded to the nearest tradable tick.

b) If there are no Trades during this time, but the spread trades

between 1:29 PM - 13:30 PM CT, then the spread VWAP is

calculated, rounded to the spread’s nearest tradable tick, and then

applied to the lead month’s settlement to derive the Future

Contract’s Daily Settlement Price.

c) In the absence of this, the Exchange will use the TWAP of the

Futures Contract’s midpoint of the bid/ask from the sixty (60)

seconds prior to 13:30 PM CT, rounded to the nearest tradable

tick.

d) If a two-sided market is not available during this time, the last

spread Trade price is applied to the lead month settlement to

derive the Daily Settlement Price.

e) If this can not be calculated, the Exchange will use the lead

month’s Settlement Price +/- the previous day’s calendar spread.

(ii) For all Exchange Futures Contracts based on cryptocurrency, the following

applies, unless otherwise indicated.

(1) Lead Month

a) If a Trade occurs in the sixty (60) seconds prior to 3:00 PM CT, the

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January December2023
Daily Settlement will be calculated using the VWAP of such

Trades, rounded to the nearest tradable tick.

b) If there are no Trades during this time, the Exchange will use the

TWAP of the Futures Contract’s midpoint of the bid/ask from the

sixty (60) seconds prior to 3:00 PM CT, rounded to the nearest

tradable tick.

c) If a two-sided market is not available during the sixty (60) seconds

prior to 3:00 PM CT, the Daily Settlement Price will be the Index

value - (difference between the previous day’s Index value and the

previous day’s relevant Futures Contract’s Settlement Price).

(2) Non-Lead Month

a) If a Trade occurs in the sixty (60) seconds prior to 3:00 PM CT, the

Daily Settlement will be calculated using the VWAP of such

Trades, rounded to the nearest tradable tick.

b) If there are no Trades during this time, but the spread trades

between 2:59 PM - 3:00 PM CT, then the spread VWAP is

calculated, rounded to the spread’s nearest tradable tick, and then

applied to the lead month’s settlement to derive the Future

Contract’s Daily Settlement Price.

c) In the absence of this, the Exchange will use the TWAP of the

Futures Contract’s midpoint of the bid/ask from the sixty (60)

seconds prior to 3:00 PM CT, rounded to the nearest tradable tick.

d) If a two-sided market is not available during this time, the last

spread Trade price is applied to the lead month settlement to

derive the Daily Settlement Price.

e) If this can not be calculated, the Exchange will use the lead

month’s Settlement Price +/- the previous day’s calendar spread.

(c) Final Settlement Price

(i) For all Exchange energy Futures Contracts, the following applies, unless

otherwise indicated. On the day of expiration, the final Settlement Price shall be

the set to the publicly available daily settlement value of the NYMEX WTI Future

(CL) at the termination of trading.

(ii) For all Exchange Futures Contracts based on a cryptocurrency, the following

applies, unless otherwise indicated. On the day of expiration, the Final

Settlement Price of the Futures Contract shall be the value of the relevant Index

as of the Termination of Trading as specified in the relevant Rule, and as

calculated and disseminated by the Index Provider.

RULE 907. Clearing Fees

Clearing fees shall be assessed against a Clearing Firm for each side of a Ttransaction Ttraded

on, cleared by or processed through the Clearing House as the Clearing House may from time

to time prescribe. Such Clearing Fees may be incorporated into the Exchange Fees assessed

pursuant to Rule 305.

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January December2023
RULE 908. Transfers of Trades

(a) Existing Ttrades may be transferred either on the books of a Clearing Firm or from one

(1) Clearing Firm to another Clearing Firm provided:

(1) the transfer merely constitutes a change from one (1) account to another

account, provided the underlying beneficial ownership of the assets in said

accounts remains the same; or

(2) an error has been made in the clearing of a Ttrade and the error is discovered

and the transfer is completed within two (2) Bbusiness Ddays after the Ttrade

date.

(b) Exchange Officials may, upon request by the Clearing Firm(s), approve a transfer of

existing Ttrades either on the books of the same Clearing Firm, or from the books of

one Clearing Firm to the books of another Clearing Firm if the transfer is in connection

with, or as a result of, a merger, asset purchase, consolidation or similar non-recurring

Ttransaction between two (2) or more entities where one (1) or more entities become

the successor in interest to one (1) or more other entities.

(c) Exchange Officials may, with the consent of the Clearing Firm(s) involved, permit the

transfer of existing Ttrades if, in the opinion of 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

Ttransactions must be recorded and carried on the books of the receiving Clearing Firm

at the original Ttrade dates. Futures Ttransactions may be transferred using either the

original Ttrade price or the most recent Ssettlement Pprice; Options Ttransactions may

be transferred using either the original Ttrade price or a Ttrade price of zero.

(e) All transfers shall be reported to the Exchange in a form acceptable to the Exchange for

the type of Ttransactions involved. The proper indicator must be included in the transfer

such that the Ttransactions, including the Ttransaction(s) to reverse an error, clear as

transfers. The Clearing Firms involved shall maintain a full and complete record of all

Ttransactions together with all pertinent memoranda. For submission to the Clearing

House, all transfers of Contracts shall be subject to the Clearing House Rules.

RULE 909. Concurrent Long and Short Transactions

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 at the direction of a Customer or on behalf of an omnibus account;

however it shall be the duty of the Clearing Firm 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 which, pursuant to this Rrule, 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 which, for the convenience of a Participant or Customer, may “hold

open” a position only on their books. However, the Clearing Firm must accurately report

to the Exchange and the Clearing House, as appropriate, large trader positions, long

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January December2023
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 will, 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.

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January December2023
CHAPTER 10: MISCELLANEOUS

RULE 1001. Exchange personnel – Trading and Misuse of Material, Non-Public

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, Ttraded on the

Exchange, as well as any Contracts, or products substantially similar to the Contracts,

Ttraded 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 .

(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 Ttraded 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.

(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).

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January December2023
RULE 1002. Gifts and Gratuities

Except as permitted in writing by the Chief Executive Officer, no 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 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 tTransaction executed on the

Exchange Trading System, including the time at which the Ttransaction was

executed by, or submitted to, the Exchange Trading System;

(2) the price and quantity data for each and every bid and offer submitted for entry

into tThe Exchange Trading System, including the time at which the bid and

offer was entered into the Exchange Trading System;

(3) the Daily Settlement Price of each Contract;

(4) any data and information derived from (1i), (2ii) and (3iii) and the format and

presentation thereof; and

(5) the transmissions and dissemination of the data and information to Participants,

any publisher of the data or information with whom the Exchange has a written

agreement, and any other Persons.

(b) Participants may not distribute, sell or retransmit information displayed on the

Exchange Trading System to any third party. Notwithstanding the foregoing,

Participants 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 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 an Exchange Rule or adoption of a new Exchange 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 an

Exchange Rule or adoption of a new Exchange 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 an Exchange Rule or adoption of a new Exchange Rule

materially changes the terms or conditions of a Contract or affects the value of open

Contracts, then the amendment, repeal or new Exchange 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

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January December2023
provided by the Board.

RULE 1006. Governing Law, Jurisdiction and Dispute Resolution

(a) The law of the State of Illinois governs the Exchange Rules.

(b) Any dispute between the Exchange and a Clearing Firm or Participant arising from or in

connection with the Exchange Rules must be brought to arbitration through by the

National Futures Association 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 Exchange Rules.

(c) Any dispute between the Exchange and a Participant arising from or in connection with

the Exchange Rules will be settled by arbitration administered through the National

Futures Association 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 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 Firms or Participants unconditionally and irrevocably waive any and all right to

trial by jury in connection with any such dispute.

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January December2023
CHAPTER 11: CONTRACT SPECIFICATIONS

RULE 1101. Reserved

RULE 1102. Reserved

Rule 1103. Reserved

Rule 1104. Reserved

Rule 1105. Micro Crude Oil Futures

(a) Scope. Rule 1105 is limited in application to the trading of the Micro Crude Oil Ffutures

(“OIL Contract”). In addition to Rule 1105, the OIL Contract is subject to all Rules of the

Exchange, as applicable. Unless otherwise stated, all times referred to herein are

Central Time Zone.

(b) Trading Schedule. The OIL Contract shall be offered for monthly trading in the front two

(2)all delivery months during such hours as the Exchange shall determine from

time-to-time.

(c) Contrat SizeTrading Unit. The Contract sizetrading unit is equal to 100 times the WTI

Crude Oil price.

(d) Price Increments. The minimum price increment shall be 0.01 per barrel ($1.00 per OIL

Ccontract).

(e) Position Limits, Position Accountability, and Reportable Levels. Pursuant to Rules 530

to 533 and subject to the requirements and exceptions therein, the OIL Contract is

subject to the following:

(1) Position Limit. 5,000 OIL Contracts net long or net short commencing three (3)

days prior to the end of trading in the spot month.

(2) Reportable Level. 350 OIL Contracts

(f) Price Fluctuation Limits. Trading in the OIL Contract shall be subject to the following

price fluctuation limits. If a price fluctuation limit is reached on the lead month OIL

Contract, all related instruments will be halted. If a price fluctuation limit is reached on

the non-lead month OIL Contracts, only the specific instrument which reached the price

fluctuation limit will be halted. of

(1) 10% of the Hourly Calculated Reference Price at the top of eEach hour, a

Reference Price is calculated for each Contract using the Lead Month settlement

procedures outlined in Rule 906(b)(ii)(1) (the “Reference Price”).

(2) Reference Price is calculated by using the settlement calculation from the last 60

seconds of each hour. A 10% up and down pPrice fluctuation lLimit will be

applied to the Reference Price.

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January December2023
(3) The market will enter a hHalt state for two (2) minutes if a pPrice fluctuation lLimit

is reached. Orders can be submitted, canceled, and amended during this state

but no matching will occur.

(4) If a price fluctuation limit is reached, tThe new Reference Price will be thatthe last

pPrice fluctuation lLimit for the remainder of that hourreached.

If Price Limits are hit on the Lead Month contract, all related instruments will be

Halted. ¶

(5) If Price Limits are hit on non-Lead Month contracts, only the specific instrument

which reached the Price Limit will be Halted.

(g) Termination of Trading. Termination in expiring OIL Contracts shall terminate at 1:30

PMpm CT four (4) Bbusiness ddays prior to the 25th calendar day of the month prior to

the Ccontract month. If the 25th calendar day is not a Bbusiness dday, trading

terminates five (5) Bbusiness Ddays prior to the 25th calendar day of the month prior to

the Ccontract month.

(h) Settlement. The OIL Contract is cash settled

(1) Daily Settlement Price of the Contract, which is an Exchange energy Futures

Contract, will be determined pursuant to the process set forth in Exchange Rule

906(b)(ii).shall be determined as follows:

Volume-weighted average price of all trades occurring in the sixty (60)

seconds prior to 1:30 pm CT on the relevant Business Day;¶

(i) If no trades occur during the sixty (60) seconds prior to 1:30 pm CT, then

the Settlement Price will be the time-weighted average midpoint between

the bid and ask during the sixty (60) seconds prior to 1:30 pm CT; or ¶

(ii) If a two-sided market is not available during the sixty (60) seconds prior to

1:30 pm CT, then the Settlement Price will be determined using the latest

traded price of the current trade date¶

(iii) If the contract has not traded on the current trade date, the contract will

settle to the prior settlement price.

(2) On the day of expiration, the Final Settlement of the Contract, which is an

Exchange energy Futures Contract, will be determined pursuant to the process

set forth in Exchange Rule 906(c)(ii).Final Settlement Price shall be the set to the

publicly available daily settlement value of the NYMEX WTI Future (CL) at the

termination of trading.

(3) Final Settlement. Clearing Firms holding open positions in an expiring OIL

Contract at the termination of trading shall make or receive payment in

accordance with the rules of the Clearing House.

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January December2023
(i) Disclaimer.

All product and company names are trademarksTM or registered® trademarks of their

respective holders. Use of them does not imply any affiliation with or endorsement of or

by LMX Labs LLC. NYMEX® is a registered trademark of the New York Mercantile

Exchange, Inc.

RULE 1106. Nano Bitcoin Futures

(a) Scope. Rule 1106 is limited in application to the trading of the Nano Bitcoin futures (“BIT

Contract”). In addition to Rule 1105, the BIT Contract is subject to all Rules of the

Exchange as applicable. Unless otherwise stated, all times referred to herein are

Central Time Zone. The relevant index for the BIT Contract is the MarketVectorTM

Coinbase Bitcoin Benchmark Rate (“Index”), as calculated and disseminated by

MarketVector Indexes GmbH as the index provider and calculation agent (the “Index

Provider”).

(b) Trading Schedule. The BIT Contract shall be offered for monthly trading in the front

three (3) months during such hours as the Exchange shall determine from time-to-time.

(c) Contract sizeTrading Unit. The Contract sizetrading unit is equal to 1/100 ofthe Bitcoin

price.

(d) Price Increments. The minimum price increment shall be 5 Iindex points ($0.05 per BIT

Contract).

(e) Position Limits, Position Accountability, and Reportable Levels. Pursuant to Rules 530

to 533 and subject to the requirements and exceptions therein, the BIT Contract is

subject to the following:

(1) Position Limit. 20,000 BTI aggregate

(2) Reportable Level. 25 BIT Contracts

(f) Price Fluctuation Limits. Trading in the BIT Contract shall be subject to the following

price fluctuation limits. If a price fluctuation limit is reached on the lead month BIT

Contract, all related instruments will be halted. If a price fluctuation limit is reached on

the non-lead month BIT Contracts, only the specific instrument which reached the price

fluctuation limit will be halted. of

(1) 10% of the hHourly Calculated Reference Price at the top of eEach hour, a

Reference Price is calculated for each Contract using the Lead Month settlement

procedures outlined in Rule 906(b)(iii)(1) (the “Reference Price”).

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January December2023
(2) Reference Price is calculated by using the settlement calculation from the last

60) seconds of each hour. A 10% up and down pPrice fluctuation lLimit will be

applied to that Contract’sthe Reference Price.

(3) The market will enter a hHalt state for two (2) minutes if a pPrice fluctuation

lLimit is reached. Orders can be submitted, canceled, and amended during this

state but no matching will occur.

(4) If a price fluctuation limit is reached, Tthe new Reference Price will be thatthe

last pPrice fluctuation lLimit for the remainder of that hour reached.

If Price Limits are hit on the Lead Month Contract, all related instruments will be

Halted. ¶

(5) If Price Limits are hit on non-lLead Month Contracts, only the specific instrument

which reached the Price Limit will be Halted.

(g) Daily Price Limits. Trading in the BIT Contract shall be subject to the following dDaily

pPrice lLimits: of

(1) 30% dDaily pPrice lLimits usingwill be applied from the previous day’s

Ssettlement Pprice will beand applied to the next trading session.

(2) If dDaily pPrice lLimits are reached the market will remain open but will not trade

beyond the dDaily pPrice lLimit.

(h) Termination of Trading. Trading terminates at 4:00 PMpm London time on the last Friday

of the Ccontract month. If that day is not a U.S. bBusiness Dday, trading terminates on

the preceding day that is a U.S. bBusiness Dday (“Termination of Trading”).

(i) Settlement. The BIT Contract is cash settled

(1) Daily Settlement Price of the Contract, which an Exchange Futures Contract

based on a cryptocurrency, will be determined pursuant to the process set forth

in Exchange Rule 906(b)(iii)

(2) On the day of expiration, the Final Settlement of the Contract, which is based on

an Exchange equity index, will be determined pursuant to the process set forth in

Exchange Rule 906(c)(iii).

(3) Final Settlement. Clearing Firms holding open positions in an expiring BIT

Contract at the termination of trading shall make or receive payment in

accordance with the rules of the Clearing House.at 3:00 PM CT shall be

determined as follows:¶

(4) 1-min VWAP of futures contract rounded to the nearest tradable tick¶

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January December2023
(i) 1-min TWAP of futures contract midpoint of the Bid/Ask rounded to the

nearest tradable tick¶

(5) If a two-sided market is not available during the sixty (60) seconds prior to 3:00

PM CT, then the Settlement Price will be Market Vector CBBR index value -

(difference between previous day’s CBBR index value and previous day’s futures

settlement)¶

¶

(6) Final Settlement Price shall be the value of the underlying index at 4 p.m.

London Time on the day of expiration, calculated and disseminated by MVIS as

the Index Provider and calculation agent.¶

(7) Final Settlement. Clearing Firms holding open positions in an expiring BIT

Contract at the termination of trading shall make or receive payment in

accordance with the rules of the Clearing House.

(j) Forks. ¶

(k) In the event of a hard fork, the BITNano Ether Futures Ccontract will settle to the

IndexMarket Vector Coinbase Ether Benchmark Rate. The Exchange may, in its sole discretion,

take alternative action with respect to hard forks in consultation with its Iindex Pprovider, its

Cclearing Hhouse and its market Pparticipants.

(l) Disclaimer.

The MarketVectorTM Index Solutions Coinbase Bitcoin Benchmark Rrate is a trademark

of MarketVector Indexes GmbHSolutions and its affiliates (collectively

“MarketVectorMVIS”). MarketVectorMVIS or MarketVectorMVIS’s licensors own all

proprietary rights in the MarketVectorTM Coinbase Bitcoin Benchmark RateIndices.

MarketVectorMVIS is NOT affiliated with LMX Labs, LLC, and neither approves,

endorses, reviews or recommends the BIT ContractNano Bitcoin Futures.

MarketVectorMVIS does not guarantee the timeliness, accurateness or completeness of

any data or information relating to the MarketVectorTM Coinbase Bitcoin Benchmark Rate

Index, and neither shall be liable in any way to LMX Labs, LLC, investors in the Nano

Bitcoin (BIT) Contractfutures or other third parties in respect of the use or accuracy of

the MarketVectorTM Coinbase Bitcoin Benchmark Rate Index or any data included

therein.

RULE 1107. Nano Ether Futures

(a) Scope. Rule 1107 is limited in application to the trading of the Nano Ether futures (“ET

Contract”). In addition to Rule 1107, the ET Contract is subject to all Rules of the

Exchange as applicable. Unless otherwise stated, all times referred to herein are

Central Time Zone. The relevant index for the ET Contract is the MarketVectorTM

Coinbase Ethereum Benchmark Rate (“Index”), as calculated and disseminated by

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January December2023
MarketVector Indexes GmbH as the index provider and calculation agent (the “Index

Provider”)

(b) Trading Schedule. The ET Contract shall be offered for monthly trading in the front three

(3) months during such hours as the Exchange shall determine from time-to-time.

(c) Contract SizeTrading Unit. The Contract sizetrading unit is equal to the price of one(1)

Ether.

(d) Price Increments. The minimum price increment shall be 0.5 Iindex points ($0.05 per ET

Ccontract).

(e) Position Limits, Position Accountability, and Reportable Levels. Pursuant to Rules 530

to 533 and subject to the requirements and exceptions therein, the ETCETBR Contract

is subject to the following:

(1) Position Limit. 40,000 ETI aggregate

(2) Reportable Level. 25 ET Contracts

(f) Price Fluctuation Limits. Trading in the ET Contract shall be subject to the following price

fluctuation limits. If a price fluctuation limit is reached on the lead month ET Contract, all

related instruments will be halted. If a price fluctuation limit is reached on the non-lead

month ET Contracts, only the specific instrument which reached the price fluctuation limit

will be halted. of

(1) E10% of the Hourly Calculated Reference Price at the top of each hour, a

Reference Price is calculated for each Contract using the Lead Month settlement

procedures outlined in Rule 906(b)(iii)(1) (the “Reference Price”).

(2) Reference Price is calculated by using the settlement calculation from the last

60) seconds of each hour. A 10% up and down pPrice lLimit will be applied to

that Contract’sthe Reference Price.

(3) The market will enter a hHalt state for two (2) minutes if a pPrice fluctuation lLimit

is reached. Orders can be submitted, canceled, and amended during this state

but no matching will occur.

(4) If a price fluctuation limit is reached, tThe new Reference Price will be the last

pPrice fluctuation lLimit for the remainder of that hourreached.

If Price Limits are reachedhit on the Lead Month contract, all related instruments

will be Halted. ¶

(5) If Price Limits are hit on non-Lead Month contracts, only the specific instrument

which reached the Price Limit will be Halted.

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(g) Daily Price Limits. Trading in the ET Contract shall be subject to the following dDaily

pPrice lLimits of

(1) 30% dDaily pPrice lLimits usingwill be applied from the previous day’s

Ssettlement Pprice will beand applied to the next trading session.

(2) If dDaily pPrice lLimits are reached the market will remain oOpen but will not

trade beyond the dDaily pPrice lLimit.

(h) Termination of Trading. Trading terminates at 4:00 PMpm London time on the last Friday

of the Ccontract month. If that day is not a U.S. bBusiness Dday, trading terminates on

the preceding day that is a U.S. bBusiness Dday (“Termination of Trading”).

(i) Settlement. The ET Contract is cash settled

(1) Daily Settlement Price of the Contract, which an Exchange Futures Contract

based on a cryptocurrency, will be determined pursuant to the process set forth in

Exchange Rule 906(b)(iii).shall be determined as follows:

Volume-weighted average price of all trades occurring in the sixty (60)

seconds prior to 3:00 pm CT on the relevant Business Day;¶

(i) If no trades occur during the sixty (60) seconds prior to 3:00 pm CT, then

the Settlement Price will be the time-weighted average midpoint between

the bid and ask during the sixty (60) seconds prior to 3:00 pm CT; or ¶

(ii) If a two-sided market is not available during the sixty (60) seconds prior to

10:00 am CT, then the Settlement Price will be determined using the

latest price provided by MVI + (Previous Day Settlement - MVI ET spread)

(2) On the day of expiration, the Final Settlement of the Contract, which is based on

an Exchange equity index, will be determined pursuant to the process set forth in

Exchange Rule 906(c)(iii).Final Settlement Price shall be the value of the

underlying index at 4 p.m. London Time on the day of expiration, calculated and

disseminated by MVI as the index provider and calculation agent.

(3) Final Settlement. Clearing Firms holding open positions in an expiring ET

Contract at the termination of trading shall make or receive payment in

accordance with the rules of the Clearing House.

(j) Forks. ¶

(k) In the event of a hard fork, the ET Nano Ether Futures cContract will settle to the

IndexMarket Vector Coinbase Ether Benchmark Rate. The Exchange may, in its sole

discretion, take alternative action with respect to hard forks in consultation with its Iindex

Pprovider, its Cclearing Hhouse and its market Pparticipants.

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January December2023
(l) Disclaimer.

The MarketVectorTMMarket Vector Coinbase Ethereum Benchmark Rate is a trademark

mark of Market Vector Indexes GmbH and its affiliates (collectively “MarketVectorMVI”).

MarketVectorMVI or MarketVectorMVI’s licensors own all proprietary rights in the

MarketVectorTM Coinbase Ethereum Benchmark Rate Indices. MarketVectorMVI is NOT

affiliated with LMX Labs, LLC,Coinbase Derivatives, and neither approves, endorses,

reviews or recommends the ET ContractNano Ether futures. MarketVectorMVI does not

guarantee the timeliness, accurateness or completeness of any data or information

relating to the MarketVectorTM Coinbase Ethereum Benchmark Rate, and neither shall

be liable in any way to LMX Labs, LLC,Coinbase Derivatives, investors in the Nano

Ether (ET) Contractfutures or other third parties in respect of the use or accuracy of the

MarketVectorTM Coinbase Ethereum Benchmark Rate Index (ET) or any data included

therein.

RULE 1108. Bitcoin Futures

(a) Scope. Rule 1108 is limited in application to the trading of the Bitcoin futures (“BTI

Contract”). In addition to Rule 1108, the BTI Contract is subject to all Rules of the

Exchange as applicable. Unless otherwise stated, all times referred to herein are

Central Time Zone. The relevant index for the BTI Contract is the MarketVectorTM

Coinbase Bitcoin Benchmark Rate (“Index”), as calculated and disseminated by

MarketVector Indexes GmbH as the index provider and calculation agent (the “Index

Provider”).

(b) Trading Schedule. The BTI Contract shall be offered for monthly trading in the front four

(4) months and following December contract month during such hours as the Exchange

shall determine from time-to-time.

(c) Contract SizeTrading Unit. The Contract sizetrading unit is equal to one (1) Bitcoin.

(d) Price Increments. The minimum price increment shall be 5 index points ($5 per BTI

Contract).

(e) Position Limits, Position Accountability, and Reportable Levels. Pursuant to Rules 530

to 533 and subject to the requirements and exceptions therein, the BTI Contract is

subject to the following:

(1) Position Limit. 20,000 BTI aggregate.

(2) Reportable Level. 25 BTI Contracts

(f) Price Fluctuation Limits. Trading in the BTI Contract shall be subject to the following

price fluctuation limits. If a price fluctuation limit is reached on the lead month BTI

Contract, all related instruments will be halted. If a price fluctuation limit is reached on

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January December2023
the non-lead month BTI Contracts, only the specific instrument which reached the price

fluctuation limit will be halted. of

(1) 10% of the Hourly Calculated Reference Price at the top of eEach hour, a

Reference Price is calculated for each Contract using the Lead Month settlement

procedures outlined in Rule 906(b)(iii)(1) (the “Reference Price”).

(2) Reference Price is calculated by using the settlement calculation from the last 60

seconds of each hour. A 10% up and down pPrice fluctuation lLimit will be

applied to that Contract’sthe Reference Price.

(3) The market will enter a hHalt state for two (2) minutes if a pPrice fluctuation

lLimit is reached. Orders can be submitted, canceled and amended during this

state but no matching will occur.

(4) If a price fluctuation limit is reached, tThe new Reference Price will be thatthe

last pPrice fluctuation lLimit for the remainder of that hourreached.

If Price Limits are hit on the Lead Month Contract, all related instruments will be

Halted. ¶

(5) If Price Limits are hit on non-Lead Month Contracts, only the specific instrument

which reached the Price Limit will be Halted.

(g) Daily Price Limits. Trading in the BTI Contract shall be subject to the following dDaily

pPrice lLimits: of

(1) 30% dDaily pPrice lLimits usingwill be applied from the previous day’s settlement

Pprice will beand applied to the next trading session.

(2) If dDaily pPrice lLimits are reached the market will remain open but will not trade

beyond the dDaily pPrice lLimit.

(h) Termination of Trading. Trading terminates at 4:00 PMpm London time on the last Friday

of the Ccontract month. If that day is not a U.S. bBusiness Dday, trading terminates on

the preceding day that is a U.S. bBusiness Dday (“Termination of Trading”).

(i) Settlement. The BTI Contract is cash settled

(1) Daily Settlement Price of the Contract, which an Exchange Futures Contract

based on a cryptocurrency, will be determined pursuant to the process set forth

in Exchange Rule 906(b)(iii).at 3:00 PM CT shall be determined as follows:

1-min VWAP of futures contract rounded to the nearest tradable tick¶

(i) 1-min TWAP of futures contract midpoint of the Bid/Ask rounded to the

nearest tradable tick¶

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January December2023
(ii) If a two-sided market is not available during the sixty (60) seconds prior

to 3:00 PM CT, then the Settlement Price will be Market Vector CBBR

index value - (difference between previous day’s CBBR index value and

previous day’s futures settlement)

(2) On the day of expiration, the Final Settlement of the Contract, which is based on

an Exchange equity index, will be determined pursuant to the process set forth in

Exchange Rule 906(c)(iii).Final Settlement Price shall be the value of the

underlying index at 4 p.m. London Time on the day of expiration, calculated and

disseminated by MVIS as the Index Provider and calculation agent.

(3) Final Settlement. Clearing Firms holding open positions in an expiring BTI

Contract at the termination of trading shall make or receive payment in

accordance with the rules of the Clearing House.

(j) Forks. In the event of a hard fork, the BTI Contact will settle to the Index. The Exchange

may, in its sole discretion, take alternative action with respect to hard forks in

consultation with its Index Provider, its Clearing Hours, and its market Participants.

(k) Disclaimer.

The MarketVectorTM Index Solutions Coinbase Bitcoin Benchmark Rrate is a trademark

of MarketVector Indexes GmbH Solutions and its affiliates (collectively

“MarketVectorMVIS”). MarketVectorMVIS or MarketVectorMVIS’s licensors own all

proprietary rights in the MarketVectorTM Coinbase Bitcoin Benchmark RateIndices.

MarketVectorMVIS is NOT affiliated with LMX Labs, LLC, and neither approves,

endorses, reviews or recommends the BTI ContractBitcoin Futures. MarketVectorMVIS

does not guarantee the timeliness, accurateness or completeness of any data or

information relating to the MarketVectorTMCoinbase Bitcoin Benchmark Rate Index, and

neither shall be liable in any way to LMX Labs, LLC, investors in the Bitcoin (BTI

Contract) futures or other third parties in respect of the use or accuracy of the

MarketVectorTM Coinbase Bitcoin Benchmark Rate Index or any data included therein.

RULE 1109. Ether Futures

(a) Scope. Rule 1109 is limited in application to the trading of the Ethereum futures (“ETI

Contract”). In addition to Rule 1109, the ETI Contract is subject to all Rules of the

Exchange as applicable. Unless otherwise stated, all times referred to herein are

Central Time Zone. The relevant index for the ETI Contract is the MarketVectorTM

Coinbase Ethereum Benchmark Rate (“Index”), as calculated and disseminated by

MarketVector Indexes GmbH as the index provider and calculation agent (the “Index

Provider”).

102

January December2023
(b) Trading Schedule. The ETI Contract shall be offered for monthly trading in the front four

(4) months and the following December contract month during such hours as the

Exchange shall determine from time-to-time.

(c) Trading Unit. The trading unit is equal to ten (10) Ether.

(d) Price Increments. The minimum price increment shall be 0.5 Iindex points ($5 per ETI

Contract).

(e) Position Limits, Position Accountability, and Reportable Levels. Pursuant to Rules 530

to 533 and subject to the requirements and exceptions therein, the ETI Contract is

subject to the following:

(1) Position Limit. 40,000 ETI aggregate

(2) Reportable Level. 25 ETI Contracts

(f) Price Fluctuation Limits. Trading in the ETI Contract shall be subject to the following

price fluctuation limits. If a price fluctuation limit is reached on the lead month ETI

Contract, all related instruments will be halted. If a price fluctuation limit is reached on

the non-lead month ETI Contracts, only the specific instrument which reached the price

fluctuation limit will be halted. of

(1) 10% of the Hourly Calculated Reference Price at the top of eEach hour, a

Reference Price is calculated for each Contract using the Lead Month settlement

procedures outlined in Rule 906(b)(iii)(1) (the “Reference Price”).

(2) Reference Price is calculated by using the settlement calculation from the last 60

seconds of each hour. A 10% up and down pPrice fluctuation lLimit will be

applied to that Contract’sthe Reference Price.

(3) The market will enter a hHalt state for two (2) minutes if a pPrice fluctuation

lLimit is reached. Orders can be submitted, canceled and amended during this

state but no matching will occur.

(4) If a price fluctuation limit is reached, tThe new Reference Price will be thatthe

last pPrice fluctuation lLimit for the remainder of that hourreached.

If Price Limits are hit on the Lead Month Contract, all related instruments will be

Halted. ¶

(5) If Price Limits are hit on non-Lead Month Contracts, only the specific instrument

which reached the Price Limit will be Halted.

(g) Daily Price Limits. Trading in the ETI Contract shall be subject to the following dDaily

pPrice lLimits: of

(1) 30% dDaily pPrice lLimits usingwill be applied from the previous day’s

Ssettlement Pprice will beand applied to the next trading session.

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January December2023
(2) If dDaily pPrice lLimits are reached the market will remain open but will not trade

beyond the dDaily pPrice lLimit.

(h) Termination of Trading. Trading terminates at 4:00 PMpm London time on the last Friday

of the Ccontract month. If that day is not a U.S. bBusiness Dday, trading terminates on

the preceding day that is a U.S. bBusiness Dday (“Termination of Trading”).

(i) Settlement. The ETI Contract is cash settled

(1) Daily Settlement Price of the Contract, which an Exchange Futures Contract

based on a cryptocurrency, will be determined pursuant to the process set forth

in Exchange Rule 906(b)(iii).at 3:00 PM CT shall be determined as follows:

1-min VWAP of futures contract rounded to the nearest tradable tick¶

(i) 1-min TWAP of futures contract midpoint of the Bid/Ask rounded to the

nearest tradable tick¶

(ii) If a two-sided market is not available during the sixty (60) seconds prior

to 3:00 PM CT, then the Settlement Price will be Market Vector CBBR

index value - (difference between previous day’s CBBR index value and

previous day’s futures settlement)

(2) On the day of expiration, the Final Settlement of the Contract, which is based on

an Exchange equity index, will be determined pursuant to the process set forth in

Exchange Rule 906(c)(iii).Final Settlement Price shall be the value of the

underlying index at 4 p.m. London Time on the day of expiration, calculated and

disseminated by MVIS as the Index Provider and calculation agent.

(3) Final Settlement. Clearing Firms holding open positions in an expiring ETI

Contract at the termination of trading shall make or receive payment in

accordance with the rules of the Clearing House.

(j) Forks. In the event of a hard fork, the ETI Contract will settle to the Index. The

Exchange may, in its sole discretion, take alternative action with respect to hard forks in

consultation with its Index Provider, its Clearing Hours, and its market Participants.

(k) Disclaimer.

The MarketVectorTM Index Solutions Coinbase Ethereum Benchmark Rrate is a

trademark of MarketVector Indexes GmbH Solutions and its affiliates (collectively

“MarketVectorMVIS”). MarketVectorMVIS or MarketVectorMVIS’s licensors own all

proprietary rights in the MarketVectorTM Coinbase Ethereum Benchmark RateIndices.

MarketVectorMVIS is NOT affiliated with LMX Labs, LLC, and neither approves,

endorses, reviews or recommends the ETI ContractEther Futures. MarketVectorMVIS

does not guarantee the timeliness, accurateness or completeness of any data or

104

January December2023
information relating to the MarketVectorTM Coinbase Ethereum Benchmark Rate Index,

and neither shall be liable in any way to LMX Labs, LLC, investors in the Ether (ETI

Contract ) futures or other third parties in respect of the use or accuracy of the

MarketVectorTM Coinbase Ethereum Benchmark Rate Index or any data included

therein.

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January December2023
LMX Labs – Legal Notice

Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a

leveraged investment, and because only a percentage of a contract’s value is required to

trade, it is possible to lose more than the amount of money deposited for a futures

position. Therefore, traders should only use funds that they can afford to lose without

affecting their lifestyles. And only a portion of those funds should be devoted to any one

trade because they cannot expect to profit on every trade. All references to options refer

to options on futures.

Notice to individuals located in the United Kingdom. The materials contained in this

communication are directed only at persons with investment experience (i.e., “investment

professionals”). Persons who do not have professional experience in matters relating to

investments should not rely on any of the information herein. The investment activities to

which these materials relate are only available to persons with investment experience. Any

request to engage in the investment activities to which these materials relate, by persons

other than those with investment experience, shall be denied.

The information within this document has been compiled by LMX Labs for general

purposes only. LMX Labs assumes no responsibility for any errors or omissions.

Additionally, all examples in this document are hypothetical situations, used for explanation

purposes only, and should not be considered investment advice, legal advice, or the results

of actual market experience. The information contained within this document does not

constitute legal or investment advice.

Copyright© 20242 LMX Labs, LLC. All rights reserved.

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January December2023