Via Portal Submission

September 22, 2023

MGEX Submission No. 23-52

Mr. Christopher Kirkpatrick

Secretary of the Commission

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street NW

Washington, DC 20581

RE: Rule Certification Submission Pursuant to Regulation 40.6(a); Amendments to MGEX Rules

Dear Mr. Kirkpatrick:

Pursuant to Commodity Exchange Act (“CEAct”) Section 5c and Commodity Futures Trading Commission 

(“CFTC” or “Commission”) Regulation 40.6(a), the Minneapolis Grain Exchange, LLC (“MGEX” or 

“Exchange”) hereby certifies that the amendments to MGEX Rules: 1225.00., 1226.00., 1227.00., 1228.00., 

1229.00., 1230.00., 1231.00., and the addition of MGEX Rule 1232.00. (the “Proposed Amendments”), as 

set forth in Exhibit A, comply with the CEAct and the Commission regulations promulgated thereunder. 

MGEX further certifies that the submission and pending changes to the MGEX Rules have been posted on 

the Exchange website at the following link: http://www.mgex.com/regulation.html.

Overview of Rule Amendments

The Proposed Amendments to the above-referenced Rules enhance MGEX’s authority and ability to 

enforce MGEX Rules though the issuance of summary fines.

DCM Core Principles

MGEX has reviewed the Core Principles for designated contract markets (“DCM Core Principles”) and 

identified that the Proposed Amendments may impact the following DCM Core Principles:

• DCM Core Principle 2 – Compliance with Rules: The Proposed Amendments enhance MGEX’s

authority and ability to enforce MGEX Rules through the issuance of summary fines.

• DCM Core Principle 7 – Availability of General Information: The Proposed Amendments have been 

disseminated on the MGEX website, and will be available in the MGEX Rulebook, which is 

accessible online.

• DCM Core Principle 12, Protection of Markets and Market Participants: The Proposed Amendments 

will protect the market and market participants through the enhanced authority and ability to enforce 

MGEX Rules through the issuance of summary fines.

• DCM Core Principle 13, Disciplinary Procedures: The Proposed Amendments enhance MGEX’s

authority to discipline market participants that violate certain rules through the issuance of summary 

fines.
MINNEAPOLIS GRAIN EXCHANGE, LLC

400 South 4th Street | 130 Grain Exchange Building | Minneapolis, MN 55415

612-321-7101

mgex.com

Pursuant to MGEX Bylaw 3.1., the Proposed Amendments were approved on September 18, 2023. There 

were no substantive opposing views expressed with respect to this filing. The Proposed Amendments are 

to be effective when incorporated into the MGEX Rulebook and posted on its website, which will be at least 

10 business days following the date of this submission. 

If there are any questions regarding this submission, please contact me at (612) 321-7188 or 

randerson@mgex.com. Thank you for your attention to this matter.

Sincerely,

Ryan Anderson

Associate Counsel

Enclosure
MINNEAPOLIS GRAIN EXCHANGE, LLC

400 South 4th Street | 130 Grain Exchange Building | Minneapolis, MN 55415

612-321-7101

mgex.com

EXHIBIT A

The following MGEX Bylaws and Rules are to be amended. Additions are underlined while deletions 

are marked through.

CHAPTER 12

DISCIPLINE RULES

1225.00. SUMMARY FINES: GENERALLY.

A. The Exchange shall have the authority and sole discretion to impose summary fines on Market 

Participants or other Persons approved as Regular, not to exceed $7,5005,000 per offense for individuals 

and not to exceed $15,00010,000 per offense for entities, for violations of the requirements set forth in the 

summary fine rulesschedules of the Exchange or failing to meet any other obligation of the Exchange. The 

imposition of summary fines shall be final. There is no appeal to the Board of Directors or any other MGEX 

authority. 

B Notwithstanding anything to the contrary, the Exchange Department of Audits and Investigations

may, at any time, take further disciplinary action including, but not limited to, referring violations to the 

Disciplinary Committee.

C. In the event a summary fine is imposed, the Exchange will issue a notice of the offense and fine 

amount to the offending party. Any fines must be paid within thirty (30) days of issuance unless otherwise 

stated by the Exchange.

1226.00. SUMMARY FINES: GENERAL INFORMATION REQUESTSGENERAL REQUESTS.

Data, records and other information requested by the Exchange must be accurate, complete and timely 

submitted. Such requests include, but are not limited to, the following documents:

▪ Tag 50 Information Forms

▪ EFR/EFP Document Requests

▪ Audit Trail Requests

▪ Trading Cards and Orders

▪ Account Statements

Failure to submit accurate, complete and timely information requested by the Exchange is subject to a 

warning letter or up to a $15,000 fine per offense.a fine. The fine schedule is as follows:

1

st Offense: Warning Letter

2

nd Offense: $1,000 fine

3

rd Offense: $2,500 fine

4

th Offense: $5,000 fine

Submissions received after their designated deadlines are subject to an additional $250200 fine for every 

one (1) day late.
MINNEAPOLIS GRAIN EXCHANGE, LLC

400 South 4th Street | 130 Grain Exchange Building | Minneapolis, MN 55415

612-321-7101

mgex.com

The 5th offense and every subsequent offense will be referred to the Disciplinary Committee. Unless 

otherwise stated, oOffenses and summary fines shall be based upon events occurring within a rolling 

twenty-fourtwelve (2412) month period. The Exchange may determine whether a warning letter or summary

fine is warranted based on the facts and circumstances, and may take further disciplinary action, increase 

the fine amount, or present the matter to the Disciplinary Committee. The Exchange may also grant an 

extension for any given document request.

In the event a fine is imposed, the Exchange will issue a notice of the offense and fine amount to the 

offending party. Any fines must be paid within thirty (30) days of issuance unless otherwise stated by the 

Exchange.

1227.00. SUMMARY FINES: TRADING SESSION SUBMISSIONS.

Trading session submissions must be submitted accurately and in accordance with the deadlines set forth 

in Resolution 2101.00.C.

All submissions received after the respective deadlines are subject to a warning letter or up to a $15,000

fine per offense.a fine. The schedule is as follows:

1

st Offense: Warning Letter

2

nd Offense: $1,000 fine

3

rd Offense: $2,500 fine

4

th Offense: $5,000 fine

The 5

th offense and every subsequent offense will be referred to the Disciplinary Committee. Offenses and

summary fines shall be based upon events occurring within a rolling twenty-fourtwelve (2412) month period. 

The Exchange may determine whether a warning letter or a summary fine is warranted based on the facts 

and circumstances, and may take further disciplinary action, increase the fine amount, or present the matter 

to the Disciplinary Committee. 

In the event a fine is imposed, the Exchange will issue a notice of the offense and fine amount to the 

offending party. Any fines must be paid within thirty (30) days of issuance unless otherwise stated by the 

Exchange.

1228.00. SUMMARY FINES: FINANCIAL STATEMENTS.

All FCMs, Clearing Members, non-FCMs with cash trading privileges, and Regular facilities are required to 

submit accurate financial statements by their designated deadline.

All submissions received after their designated deadlines are subject to a warning letter or up to a $7,500

fine per offensea fine plus an additional $250200 fine for every one (1) day late. The fine schedule is as 

follows:

1

st Offense: Warning Letter

2

nd Offense: $1,000 fine

3

rd Offense: $2,500 fine

4

th Offense: $5,000 fine
MINNEAPOLIS GRAIN EXCHANGE, LLC

400 South 4th Street | 130 Grain Exchange Building | Minneapolis, MN 55415

612-321-7101

mgex.com

The 5

th offense and every subsequent offense will be referred to the Disciplinary Committee. Offenses and 

summary fines shall be based upon events occurring within a rolling twenty-four (24) month period. The 

Exchange may determine whether a warning letter or a summary fine is warranted based on the facts and 

circumstances, and may take further disciplinary action, increase the fine amount, or present the matter to 

the Disciplinary Committee. The Exchange may also grant an extension for any required statement.

In the event a fine is imposed, the Exchange will issue a notice of the offense and fine amount to the 

offending party. Any fines must be paid within thirty (30) days of issuance unless otherwise stated by the 

Exchange.

1229.00. SUMMARY FINES: FINANCIAL OBLIGATIONS.

Settlement, margin, and intraday variation payments must be submitted accurately and in accordance with 

the deadlines set forth in Resolution 2101.00.C.

All payments received after the respective deadlines are subject to a warning letter or up to a $15,000 fine 

per offense.a fine. The schedule is as follows:

1

st Offense: Warning Letter

2

nd Offense: $2,500 fine

3

rd Offense: $5,000 fine

4

th Offense: $10,000 fine

The 5

th offense and every subsequent offense will be referred to the Disciplinary Committee. Offenses and 

summary fines shall be based upon events occurring within a rolling twenty-fourtwelve (2412) month period. 

The Exchange may determine whether a warning letter or summary fine is warranted based on the facts 

and circumstances, and may take further disciplinary action, increase the fine amount, or present the matter 

to the Disciplinary Committee. 

In the event a fine is imposed, the Exchange will issue a notice of the offense and fine amount to the 

offending party. Any fines must be paid within thirty (30) days of issuance unless otherwise stated by the 

Exchange.

1230.00. SUMMARY FINES: REGULAR FACILITIES.

All Regular facilities must submit their renewal applications by their designated deadlines.

All renewal applications received after the scheduled deadlines are subject to a warning letter or up to a 

$2,500 fine per offensea fine plus an additional $250200 fine for every one (1) day late. The fine schedule 

is as follows:

1

st Offense Warning Letter

2

nd Offense $1,000 fine

The 3rd offense and every subsequent offense will be referred to the Disciplinary Committee. Offenses and

summary fines shall be based upon events occurring within a rolling thirty-six (36) month period. The 
MINNEAPOLIS GRAIN EXCHANGE, LLC

400 South 4th Street | 130 Grain Exchange Building | Minneapolis, MN 55415

612-321-7101

mgex.com

Exchange may determine whether a warning letter or a summary fine is warranted based on the facts and 

circumstances, and may take further disciplinary action, increase the fine amount, or present the matter to 

the Disciplinary Committee. The Exchange may also grant an extension for any application.

In the event a fine is imposed, the Exchange will issue a notice of the offense and fine amount to the 

offending party. Any fines must be paid within thirty (30) days of issuance unless otherwise stated by the 

Exchange.

1231.00. SUMMARY FINES: STOCKS REPORTING FACILITIES.

All Hard Red Spring Wheat Regular facilities must submit accurate stocks reports to the Exchange pursuant 

to the deadlines below.

Daily Stocks Reports (Form SRM): 1:00 p.m. (Central Time)

All stocks reports received after the scheduled deadlines are subject to a warning letter or up to a $7,500

fine per offense.fines as follows:

1st Offense: Warning Letter

2nd Offense: $1,000 fine

3rd Offense: $2,000 fine

4th Offense $3,000 fine

The 5th offense and every subsequent offense will be referred to the Disciplinary Committee. Offenses 

and summary fines shall be based upon events occurring within a rolling twelve (12) month period. The 

Exchange may determine whether a warning letter or a summary fine is warranted based on facts and 

circumstances, and may take further disciplinary action, increase the fine amount, or present the matter to 

the Disciplinary Committee. 

In the event a fine is imposed, the Exchange will issue a notice of the offense and fine amount to the 

offending party. Any fines must be paid within thirty (30) days of issuance unless otherwise stated by the 

Exchange.

1232.00. SUMMARY FINES: BLOCK TRADES.

All block trades must comply with the Exchange Rule on block trades for each respective product.

All block trades that do not comply with the Exchange Rule on block trades for the product in question are

subject to a warning letter or up to a $7,500 fine per offense.

Offenses and summary fines shall be based upon events occurring within a rolling twenty-four (24) month 

period. The Exchange may determine whether a warning letter or a summary fine is warranted based on 

facts and circumstances, and may take further disciplinary action, increase the fine amount, or present the 

matter to the Disciplinary Committee.
MINNEAPOLIS GRAIN EXCHANGE, LLC

400 South 4th Street | 130 Grain Exchange Building | Minneapolis, MN 55415

612-321-7101

mgex.com

In the event a fine is imposed, the Exchange will issue a notice of the offense and fine amount to the 

offending party. Any fines must be paid within thirty (30) days of issuance unless otherwise stated by the 

Exchange.