September 16, 2022

BY ELECTRONIC FILING

Mr. Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: Self Certification of Changes to Rulebook and Limited Liability Company

Agreement in Connection with Legal Entity Name Change (Eris Clearing, LLC Submission

#2022-02C)

Dear Mr. Kirkpatrick:

Eris Clearing, LLC (“Eris Clearing”or “Company”) hereby submits for self-certification to the

Commodity Futures Trading Commission (the “Commission”), under Commission regulation

40.6(a), amendments to its Rulebook, limited liability company agreement (“LLC Agreement”),

and Risk Management Committee Charter (“Committee Charter”) to update references to the

Company’s name in light of a legal name change, which is anticipated to occur on October 1,

2022.

Explanation and Description of Changes

By way of background, Cboe Digital Holdings, LLC acquired the ErisX group of companies on

May 2, 2022. Eris Clearing, a Delaware limited liability company, now intends to file with the

Delaware Division of Corporations, and in accordance with the Limited Liability Company Act

of the State of Delaware, a Certificate of Amendment for a Delaware Limited Liability Company

to change the Company’s legal name to “Cboe Clear Digital, LLC”, effective October 1, 2022.

The Company notes, too, that Eris Exchange, LLC (“Eris Exchange” or “Exchange”) will update

its legal name to “Cboe Digital Exchange, LLC” in the same manner, also effective October 1,

2022.

In light of the Company’s legal name change, the Company is filing this self-certification to

update all references to the Company’s name, as well as the Exchange’s name, in its Rulebook,

LLC Agreement and Committee Charter as follows, where applicable:

Former Reference to Legal Name New Reference to Legal Name

Eris Clearing, LLC Cboe Clear Digital, LLC
Eris Clearing Cboe Clear Digital

Eris Digital Holdings, LLC Cboe Digital Intermediate Holdings, LLC

Eris Holdings CDIH

Eris Clearing Holdings, LLC Cboe Clear Digital Holdings, LLC

ErisX or Eris Cboe Digital

Eris Exchange, LLC Cboe Digital Exchange, LLC

Eris Exchange Cboe Digital Exchange

The Company notes that the proposed amendments resulting from the change to the Company’s

name are non-substantive in nature and do not have any material impact on the operation or

substance of the Company’s Rules, LLC Agreement or Committee Charter.

Core Principle Compliance

The Company’s staff has assessed the amendments to the references to the Company’s and the

Exchange’s name in the Company’s Rulebook, LLC Agreement, and Committee Charter, and the

amendments’ compliance with applicable provisions of the Act. The Company has not identified

any Derivatives Clearing Organization Core Principles under Section 5b of the Act that may be

potentially impacted.

Further, the Company believes that updates to all references to the Company’s and Exchange’s

name in the Company’s Rulebook, LLC Agreement, Committee Charter is consistent with

Derivatives Clearing Organization Core Principle L (Public Information) under Section 5b of the

Act because the Company is updating its rules and governing documents to reflect its new legal

name, as well as the new legal name of the Exchange, thereby providing clarity to market

participants as to the legal name of a derivatives clearing organization and designated contract

market on which they may participate.

Public Information

A notice and copy of this submission has been concurrently posted on Eris Clearing’s website at

https://www.erisx.com/regulation/exchange-notices/ under “CFTC Submissions.”

Opposing Views

No opposing views were expressed by the Board or market participants to this Self-Certification.

Certification

Eris Clearing, LLC hereby certifies to the Commodity Futures Trading Commission, pursuant to

the procedures set forth in Commission regulation §40.6, that this submission complies with the

Commodity Exchange Act, as amended, and the regulations promulgated thereunder.
If you have any questions please feel free to contact the undersigned at the information below.

Sincerely,

/s/

Rebecca Tenuta

rebecca.tenuta@erisx.com

(773) 485-7926
EXHIBIT A

Redline Changes to the Eris Clearing, LLC Agreement
EXHIBIT B

Redline Changes to the Risk Management Committee Charter
EXHIBIT C

Redline Changes to the Eris Clearing, LLC Rulebook
276312795v.7

THIRD AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

ERIS CLEARINGCBOE CLEAR DIGITAL, LLC

This THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY 

AGREEMENT of ERIS CLEARINGCBOE CLEAR DIGITAL, LLC (such agreement, as 

amended from time to time, shall be referred to herein as this “Agreement”), effective as of May 

2, 2022 (the “Effective Date”), is entered into by Eris Clearing Cboe Clear Digital Holdings, LLC, 

a Delaware limited liability company (“Member”), and each of those other members executing 

this Agreement from time to time in accordance with the terms hereof.

EXPLANATORY STATEMENTS

A. The Company was formed pursuant to a Certificate of Formation (the 

“Certificate”) filed with the Secretary of State of Delaware on October 16, 2017 and has been 

operating pursuant to the provisions of the Company’s Second Amended and Restated Limited 

Liability Company Agreement dated as of April 8, 2019 (the “Second A&R LLC Agreement”).

B. The Member has determined to amend and restate the Second A&R LLC 

Agreement to, among other things, govern the management and operation of the Company and the 

relationship of the parties in accordance with the terms and subject to the conditions set forth in 

this Agreement.

AGREEMENT

For good and valuable consideration, the parties, intending legally to be bound, agree as 

follows:

Section I

Defined Terms

In addition to any terms that are defined in the text of this Agreement, capitalized terms 

shall have the meanings ascribed to them in Exhibit B of this Agreement.

Section II

Formation and Name; Office; Purpose; Term

The Company was formed upon the execution and filing of the Certificate with the 

Secretary on October 16, 2017. The name of the Company is “Eris ClearingCboe Clear Digital, 

LLC.” The Company may do business under that name and under any other name or names upon 

which the Member may determine. The purposes of the Company shall be to (i) operate a 

clearinghouse for the clearing of financial products, (ii) act as a custodian for funds, and (iii) 

engage in any other lawful act or activity for which limited liability companies may be organized 

under the Act as determined by the Member. The term of the Company began upon the filing of 

the Certificate and shall continue in perpetual existence until dissolved pursuant to this Agreement. 

The registered office of the Company in the State of Delaware shall be as set forth in the Certificate, 

or at such other place as the Member may designate from time to time. The principal office and 
11

276312795v.7

IN WITNESS WHEREOF, the undersigned has executed this Third Amended and Restated 

Limited Liability Company Agreement of Eris ClearingCboe Clear Digital, LLC as of the date 

first set forth above.

MEMBER

ERIS CLEARING CBOE CLEAR DIGITAL 

HOLDINGS, LLC, 

a Delaware limited liability company

By: Eris ExchangeCboe Digital Exchange, LLC, its 

manager

By: 

Name: 

Title: 
276312795v.7

EXHIBIT A

(effective as of May 2, 2022)

NAME, ADDRESS AND PERCENTAGE INTEREST

Address Percentage Interest

Eris Clearing Cboe Clear 

Digital Holdings, LLC

111 S. Wacker Drive, Suite 

4730, Chicago, IL 60606

100%
Exhibit B-1

276312795v.7

EXHIBIT B

Definitions

For purposes of this Agreement, the following terms shall have the meanings set forth 

below (such meanings to be equally applicable to both the singular and plural forms of the terms 

so defined).

“Act” means the Delaware Limited Liability Company Act, as amended from time to time.

“Board” shall have the meaning set forth in Section V of this Agreement.

“Business Day” means any day other than Saturday, Sunday, and a day on which either 

the Eris Cboe Digital Exchange or commercial banks are authorized or required to close in either 

of Chicago, Illinois or New York City, New York.

“Cash Flow” means the revenues and other cash receipts of the Company minus the 

expenditures of the Company. Cash Flow will not include reserves established by the Board from 

time to time except to the extent released from the reserves in question for distribution.

“CEA” means the U.S. Commodity Exchange Act, as amended.

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

“Code” means the Internal Revenue Code of 1986, as amended, or any corresponding 

provision of any succeeding law.

“Company” means the limited liability company formed in accordance with the 

Certificate.

“Disciplinary Panel” shall have the meaning set forth in Section V of this Agreement.

“Disciplinary Panel Member” shall have the meaning set forth in Section V of this 

Agreement.

“Interest” means a membership interest in the Company entitling the holder thereof to 

receive a share of the Profits and Losses of, and the right to receive distributions from, the 

Company in accordance with the terms of this Agreement.

“Membership Rights” means all of the rights of a member of the Company, including a 

member’s: (i) Interests; (ii) right to inspect the Company’s books and records; and (iii) right to 

vote on matters coming before the members, if any.

“Officer” means any individual from time to time authorized or appointed by the Board to 

act as an officer or representative of the Company on a general basis or for a specific purpose, 

which individual shall act for and bind the Company as authorized by the Board.

“Percentage Interest” means the percentage interest of the Member as set forth on Exhibit 

A.
Exhibit B-2

276312795v.7

“Person” means and includes an individual, corporation, partnership, association, limited 

liability company, trust, estate or other entity.

“Profit” and “Loss” mean, for each taxable year of the Company (or other period for which 

Profit or Loss must be computed), the Company’s taxable income or loss determined in accordance 

with the Code.

“Sale Transaction” shall mean any transaction or series of transactions involving (i) a sale 

or conveyance of all or substantially all of the Company’s assets to any Person, (ii) a sale or 

conveyance of at least 50% of the Interests or other equity interest in the Company to any Person, 

or (iii) a merger or consolidation of the Company with any Person pursuant to which the Member 

(and their affiliates) immediately prior to such merger or consolidation shall own, immediately 

after giving effect thereto, less than a majority of the equity interest of the surviving entity (or its 

parent) or the purchasing entity (or its parent), as the case may be.

“Transfer” means, when used as a noun, any direct or indirect sale, hypothecation, pledge, 

assignment, attachment, or other transfer, and, when used as a verb, means to, directly or indirectly, 

sell, hypothecate, pledge, assign, or otherwise transfer.
ERIS CLEARINGCBOE CLEAR DIGITAL, LLC 

RISK MANAGEMENT COMMITTEE CHARTER 

MARCH 2019 

Purpose 

The Risk Management Committee (“RiskCo”) is a committee of the Board of Directors (“Board”) 

of Eris Clearing Cboe Clear Digital, LLC (“Eris Cboe Clearing Digital”) established in accordance 

with the Commodity Exchange Act and the regulations promulgated thereunder (collectively 

referred to as “the CEA”). The RiskCo aids the Cboe Clear Digital Eris Clearing Board in 

managing the risk associated with the operation of a derivatives clearing organization by assessing 

and providing oversight of Eris Clearing Cboe Clear Digital’s risk management practices and to 

assist the Board in its oversight of the effectiveness of ErisCboe Clearing Digital’s policies and 

procedures to identify, manage, and plan for its financial, legal, market, operational, reputation 

and strategic risks. 

Reporting 

The RiskCo reports to the Board, and the Chairman (or his or her designee) shall make regular 

reports of the RiskCo’s activities to the Board. 

Composition 

The RiskCo shall include at least two members representing market participants and one member 

of Senior Management such as the Chief Operating Officer of ErisCboe Clearing Digital—

appointed in conformance with the Limited Liability Company Agreement of Cboe Clear 

DigitalEris Clearing, LLC. The RiskCo shall elect the Chairman of the RiskCo. Each member of 

the RiskCo and its Chairman shall serve until his or her successor is appointed or until the earlier 

of his or her resignation or removal. 

Meetings 

The RiskCo shall meet regularly each quarter and as often as it may deem necessary and 

appropriate in its judgment. A majority of the RiskCo members shall constitute a quorum for the 

transaction of business. Each RiskCo member not subject to a recusal (for reasons including, but 

not limited to, an actual or potential conflict of interest) shall have one (1) vote in all matters 

requiring a vote by the RiskCo. The act of a majority of the RiskCo members not subject to a 

recusal at any duly constituted meeting, if a quorum is present, shall be the act of the RiskCo. In 

the case of any tie vote, the Chairman of the RiskCo shall have the deciding vote. 
Duties of the Risk Management Committee 

The RiskCo will: 

1. Advise the Board on significant changes to Eris ClearingCboe Clear Digital’s risk model 

and default procedures; 

2. Recommend to the Board standards and requirements for initial and continuing clearing 

membership eligibility; 

3. Advise the Board regarding the eligibility of contracts for clearing and approve any new 

contract that presents fundamentally new risks to Cboe Clear DigitalEris Clearing, 

including the addition of a new commodity; 

4. Review the performance of the Chief Risk Officer and make recommendations with respect 

to such performance to the Board (with respect to such reviews the Chief Risk Officer, if a 

member of the RiskCo, shall not participate in his/her role as a RiskCo member); 

5. Review the performance of the Chief Compliance Officer and make recommendations 

with respect to such performance to the Board; and 

6. Review the performance of the Board and individual directors on a regular basis. 

Responsibilities and Authority Responsibilities 

The Risk Management Committee shall oversee the Cboe Clear DigitalEris Clearing risk program 

on behalf of the Board (in conformance with the Risk Policy approved by the Board) and with 

the authority to: 

1. monitor the risk program of Cboe Clear DigitalEris Clearing for sufficiency, effectiveness, 

and independence and 

2. oversee all facets of the risk program, including: 

a. assessment and approval of applications of FCM clearing members; 

b. major risk management policy issues, financial safeguards, and financial 

surveillance and membership issues; 

c. the Clearinghouse information security program, including reviewing the structure 

and staffing of the information security program; 

d. surveillance, audits, examinations, and other regulatory responsibilities with respect 

to FCM clearing members (including compliance with, if applicable, financial 

integrity, financial reporting, recordkeeping, and other requirements); and the 
conduct of investigations; 

e. reviewing the size and allocation of the risk and compliance budget and resources, 

and the number, hiring, termination, and compensation of risk and compliance

personnel; 

f. monitoring Eris ClearingCboe Clear Digital’s risk management resources and 

endeavoring to ensure that risk control personnel operate with sufficient 

independence, authority, resources and access to the Board; 

g. supervising the role of the Chief Risk Officer of Eris ClearingCboe Clear Digital, 

who will report directly to the Risk Management Committee in addition to the Chief 

Executive Officer; 

h. recommending changes that would ensure fair, vigorous, and effective regulation 

and risk management; 

i. recommending changes that would support the broader financial system or other 

relevant public interest considerations; 

j. reviewing all regulatory proposals that in the Chief Risk Officer and Chief 

Compliance Officer’s view pose a novel question or regulatory risk prior to 

implementation and advising the Board as to whether and how such changes may 

impact regulation; 

k. approving new contracts that present fundamentally new risks to Eris Clearing Cboe 

Clear Digital (see Duties of the Risk Management Committee, Item c above), and 

overseeing the approval of all other new contracts; 

l. maintaining minutes and records of its meetings; and 

m. reviewing such other matters and perform such additional activities, within the 

scope of its responsibilities, as the Board deems necessary or appropriate. 

Authority and Resources 

The Risk Management Committee shall take such actions required by Cboe Clear DigitalEris 

Clearing Rules or as otherwise delegated to it by the Board. The Risk Management Committee 

shall have the duties and powers as described and required under the CEA. 

The RiskCo shall have the authority, discretion, and necessary resources 

to: ● Conduct its own inquiries; 

● Consult directly with Cboe Clear Digital Eris Clearing staff; 
● Review all relevant documents; 

● Interview employees, officers, clearing members and their customers, and direct clearing 

members; 

● Establish such Risk Advisory Committees to meet as needed and to be chaired by the Chief 

Risk Officer as the RiskCo deems appropriate in order to provide recommendations to 

Cboe Clear Digital Eris Clearing and the Risk Management Committee upon request; 

● Otherwise exercise its independent analysis and judgment to fulfill its regulatory 

obligations; and 

● Ask members of management or others to attend meetings and provide information. 

The RiskCo may delegate its day-to-day authority over regulatory functions and personnel to 

Eris ClearingCboe Clear Digital’s Chief Risk Officer or Chief Compliance Officer as appropriate.
ERIS CLEARINGCBOE CLEAR DIGITAL, 

LLC

RULEBOOK

March October 2020
March October 2020 

1

TABLE OF CONTENTS

1. GENERAL 33

101. Definitions. 3

102. Interpretation. 6

103. Date and Time References. 6

104. Conflicts. 6

2. GOVERNANCE 66

201. Purpose, Powers and Authority. 6

202. Board 7

203. Committees 7

204. Officers 7

205. Eligibility of Officers and Board Members 8

206. Conflicts of Interest and Misuse of Material, Non-Public Information. 8

207. Emergencies. 12

208. Maintenance of Books and Records by the Clearinghouse 14

3. CLEARING MEMBERS 1415

301. General Eligibility Requirements of Clearing Members. 15

302. Application and Approval of Clearing Member Status. 17

303. Duties and Responsibilities of Clearing Members. 18

304. Authorized Representative. 19

305. Adequate Resources 20

306. Notices Required of Clearing Members. 20

307. Omnibus and Carrying Broker Accounts. 23

308. Financial Requirements of FCM Clearing Members. 23

309. Customer Accounts and Member Property Accounts. 24

310. General Recordkeeping and Reporting Requirements for Clearing Members. 25

311. Disaster Recovery and Business Continuity FCM Clearing Members 25

312. Fees. 26

313. Segregation of Customer Funds and Assets for FCM Clearing Members. 26

314. Access to Eris ClearingCboe Clear Digital. 26

315. Digital Asset Collateral. 26

4. CLEARING, SETTLEMENT, AND DELIVERY OF CONTRACTS 2728

401. Submission of Trades. 28

402. Clearance and Substitution. 28

403. Margin. 29

404. Offset and Settlement. 30
March October 2020 

2

405. Approved Depository Institutions. 30

406. Statement of Trades and Contracts. 30

407. Confirmation to Customers. 31

408. Transfer Trades. 31

409. Settlement Prices 31

410. Delivery. 31

411. Reporting. 32

5. OBLIGATIONS OF CBOE CLEAR DIGITALERIS CLEARING 3132

501. Limitation of Liability. 32

502. Clearing Member Default. 34

503. Investment of Customer Funds 36

6. SUSPENSION; DISCIPLINARY PROCEEDINGS 3636

601. Suspension. 36

602. Right of Appeal. 38

603. Sanctions from Disciplinary Proceedings. 39

604. Procedures for Disciplinary Proceedings. 39

605. Discipline by Other Self-Regulatory Organizations. 41

606. Restriction on or Termination of Clearing Privileges. 41

607. Just and Equitable Principles of Trade; Acts Detrimental to the Clearinghouse. 42

7. MISCELLANEOUS 4243

701. Force Majeure. 43

702. Suspension of Rules. 43

703. Confidentiality. 44

704. Information-Sharing Agreements 44

705. Trading by Officers and Employees Prohibited. 45

706. Forms; Facsimile Signatures. 46

707. Governing Law; Legal Proceedings. 46

708. Dispute Resolution 46

709. Contracts 4647
March October 2020 

3

1. GENERAL

101. Definitions.

Unless the context clearly requires otherwise, the following terms shall have the following 

meanings when used in these Rules:

(a) “Account” means a Customer Account or a Member Property Account, as context requires, 

used in conjunction with the trading or delivery of commodity products.

(b) “Appeal Panel” means a panel comprised of individuals appointed by the Board or the 

Chief Compliance Officer to consider appeals under Rule 602.

(c) “Applicable Law” means any statute, law, regulation, rule or ordinance of any 

governmental authority, including the CEA, CFTC Regulations, State Regulations, and the 

rules or regulations of any relevant Self-Regulatory Organization.

(d) “Approved Depository Institution” means a bank, trust company or other depository that 

has been approved by Eris ClearingCboe Clear Digital as an acceptable location for 

depositing Clearing Member funds or Collateral, as applicable.

(e) “Authorized Representative” means an individual designated by a Clearing Member and 

listed with Eris ClearingCboe Clear Digital as having authority to act on behalf of the 

Clearing Member.

(f) “Board” means the board of directors of Eris ClearingCboe Clear Digital, as set forth in 

the LLC Agreement.

(g) “Business Day” means any day on which the Clearinghouse is open for clearing. 

References in these Rules to a “day” or “Business Day” shall, unless the context otherwise 

requires, mean the “Business Day” corresponding to the trading day of the Exchange.

(h) “CEA” means the Commodity Exchange Act, as it may be amended from time to time.

(i) “CFTC” means the U.S. Commodity Futures Trading Commission.

(j) “CFTC Regulations” means the rules, regulations and interpretations promulgated by the 

CFTC pursuant to the CEA, as in effect from time to time.

(k) “Clearinghouse” means Eris ClearingCboe Clear Digital LLC.

(l) “Clearing Member” means an FCM Member or Direct Clearing Member who has 

executed a Clearing Member Agreement, and to whom the Clearinghouse has granted the 

right to clear contracts on the Clearinghouse.

(m) “Clearing Member Agreement” means the agreement for clearing privileges between 

Eris ClearingCboe Clear Digital and a Clearing Member.

(n) “Collateral” means digital assets or other assets deposited by a Clearing Member as from 

time to time determined by the Clearinghouse as acceptable in accordance with Rule 

403(b).
March October 2020 

4

(o) “Committee” means a committee established by the Board or otherwise, pursuant to the 

Rules.

(p) “Contract” means, as context requires, any futures contract, options contract, or spot 

contract, agreement, or transaction on a commodity (as such term is defined in the CEA or 

CFTC Regulations), which has been approved for clearing by Eris ClearingCboe Clear 

Digital pursuant to these Rules.

(q) “Customer” shall have the meaning set forth in CFTC Regulation 1.3(k).

(r) “Customer Account” means an account established by an FCM Clearing Member with 

Eris ClearingCboe Clear Digital in which the FCM Clearing Member maintains trades, 

positions and Margin solely for Customers.

(s) “Default” means, with respect to a Clearing Member, if such Clearing Member (a) fails to 

satisfy any of its Obligations, (b) fails to deliver funds within the time established therefor 

by Eris ClearingCboe Clear Digital, (c) is expelled or suspended from the Exchange, Eris 

ClearingCboe Clear Digital or any Self-Regulatory Organization, (d) fails to meet the 

minimum capital and other financial requirements of Eris ClearingCboe Clear Digital, or 

(e) is Insolvent.

(t) “Direct Clearing Member” means a Person that submits trades for clearing at Eris 

ClearingCboe Clear Digital on behalf of its own account(s), has completed a Clearing 

Member Agreement and has been granted clearing privileges by the Clearinghouse.

(u) “Directors” means members of the Board.

(v) “Disciplinary Panel” means a panel comprised of individuals appointed by the Board at 

the recommendation of the Chief Compliance Officer to act in an adjudicative role and 

fulfill various adjudicative responsibilities and duties described in Chapter 6.

(w) “Emergency” shall have the meaning set forth in Rule 207.

(x) “Eris ClearingCboe Clear Digital” means Eris ClearingCboe Clear Digital, LLC, a 

Delaware limited liability company.

(y) “ErisXCboe Digital” means Eris ClearingCboe Clear Digital and the Exchange 

collectively.

(z) “Exchange” means Eris ExchangeCboe Digital Exchange, LLC and its respective 

successors.

(aa) “Exchange Committee” includes the Regulatory Oversight, Exchange Member

Committee, Nomination, or Exchange Practices Committees of the Exchange, and any 

other future or successor committee of the Exchange.

(bb) “FCM Clearing Member” means a Person that is registered with the CFTC as a Futures 

Commission Merchant, has completed a Clearing Member Agreement and has been 

granted clearing privileges by the Clearinghouse.
March October 2020 

5

(cc) “Futures Commission Merchant” or “FCM” shall have the meaning set forth in CFTC 

Regulation 1.3(p).

(dd) “Government Agency” means the CFTC and/or any other governmental agency or 

department, including State agencies or departments for purposes of spot contracts

regulating the activities of a Clearing Member.

(ee) “Insolvent” and “Insolvency” means the Clearing Member has become the subject of a 

bankruptcy petition, receivership proceeding, or an equivalent proceeding.

(ff) “LLC Agreement” means the Limited Liability Company Agreement of Eris 

ClearingCboe Clear Digital, as amended or restated from time to time.

(gg) “Margin” means funds or the applicable amount of the deliverable asset required to 

collateralize Contracts as set forth in Rule 403.

(hh) “Member Property Account” means an account established by a Clearing Member with 

Eris ClearingCboe Clear Digital in which the Clearing Member maintains trades, positions 

and Margin solely on its own behalf.

(ii) “Obligations” means all financial obligations of a Clearing Member, however arising, 

whether absolute or contingent, direct or indirect, due or to become to be due, arising under 

these Rules or such Clearing Member’s agreements with Eris ClearingCboe Clear Digital.

(jj) “Officer” has the meaning set forth in Rule 204.

(kk) “Person” means an individual, sole proprietorship, partnership, limited liability company, 

association, firm, trust, corporation or other entity, as the context may require.

(ll) “Regulations” means rules, regulations, guidance, or advisories promulgated by the CFTC 

or any applicable State or Federal agency.

(mm) “Removal Event” means (a) the termination of the Clearing Member Agreement; (b) a 

materially false or misleading representation or warranty made by the Clearing Member to 

Eris ClearingCboe Clear Digital under or in connection with any agreement between Eris 

ClearingCboe Clear Digital and the Clearing Member; (c) the breach by the Clearing 

Member of the Rules or any of the terms or provisions of any agreement between Eris 

ClearingCboe Clear Digital and the Clearing Member which is not remedied promptly after 

notice from Eris ClearingCboe Clear Digital; (d) a material violation of the rules of the 

Exchange, or (e) a Default by the Clearing Member.

(nn) “Rule” means a Rule of Eris ClearingCboe Clear Digital either contained in this Rulebook 

or in guidance or notices from Eris ClearingCboe Clear Digital.

(oo) “Self-Regulatory Organization” shall mean any futures or securities exchange, 

derivatives clearing organization, securities clearing agency, or National Futures 

Association.

(pp) “Settlement Price” has the meaning set forth in Rule 410.
March October 2020 

6

(qq) “State Regulation” means, with respect to states in which Eris ClearingCboe Clear Digital

is licensed to operate as a money transmitter or otherwise permitted to engage in a virtual 

currency business, any regulation related thereto. 

(rr) “Transfer Trade” has the meaning set forth in Rule 408.

(ss) “UCC” means the Uniform Commercial Code as in effect in the State of Illinois.

102. Interpretation.

In these Rules, unless the context clearly requires otherwise, (a) words in the singular include the 

plural and words in the plural include the singular, (b) any gender includes each other gender, (c) 

references to statutory provisions include those provisions, and any rules or regulations 

promulgated thereunder, as amended, and (d) all uses of the word “including” should be construed 

to mean “including, but not limited to.” Headings included herein are for convenience purposes 

only and do not form a part of these Rules.

103. Date and Time References.

Unless otherwise specified, all references to dates, times or time periods shall refer to, or be 

measured in accordance with the time in Chicago, Illinois.

104. Conflicts.

In the event of a conflict between any Rules of general application and the Rules relating to 

particular types of transactions, the transaction-specific Rules will prevail.

2. GOVERNANCE

201. Purpose, Powers and Authority.

(a) Eris ClearingCboe Clear Digital is registered with the CFTC as a Derivatives Clearing 

Organization. Eris ClearingCboe Clear Digital operates to clear Contracts for its Clearing 

Members.

(b) Eris ClearingCboe Clear Digital has the power and authority to operate and regulate its 

clearing and settlement facilities to ensure that such facilities are not used for any improper 

purpose and to establish and enforce Rules and procedures to reduce systemic risk and 

facilitate the orderly clearing of Contracts through Eris ClearingCboe Clear Digital by 

Clearing Members.

(c) These Rules specify the process by which a Person may become a Clearing Member and 

the terms and conditions on which Eris ClearingCboe Clear Digital will clear Contracts. 

These Rules are binding on all Clearing Members.

202. Board

The Board shall have control and management of the affairs and business of Eris ClearingCboe 

Clear Digital and shall have the powers and duties set forth in the LLC Agreement. Without 

limiting the generality of the foregoing, the Board shall have the power to: (a) adopt, amend, 

implement and repeal such Rules, as will in its judgment best promote and safeguard the interests 
March October 2020 

7

of Eris ClearingCboe Clear Digital; and (b) render interpretations of the Rules, which shall be 

binding on all Persons having dealings with Eris ClearingCboe Clear Digital, including Direct 

Clearing Members, FCM Clearing Members, and their Customers.

203. Committees

(a) The Risk Management Committee is a permanent Committee of the Board.

(b) The Board may establish such additional Committee(s) as it may from time to time deem 

necessary or advisable and appoint Board members or other individuals to serve on such 

Committees and delegate powers to one or more Committees.

(c) A Committee shall operate in accordance with its charter or powers as otherwise delegated 

to it by the Board and shall take such actions as may be required by the Rules.

(d) All information and documents provided to a Committee and all deliberations and 

documents related thereto shall be treated as non-public and confidential and shall not be 

disclosed, except as required by Applicable Law or as necessary to further the business and 

affairs of Eris ClearingCboe Clear Digital or Eris ExchangeCboe Digital Exchange.

(e) The actions of each Committee shall be the subject to final review by the Board.

204. Officers

The Board shall appoint Officers of Eris ClearingCboe Clear Digital, as it may deem necessary or 

appropriate from time to time, and delegate to such Officers, subject to its oversight, the power 

and authority to manage the business and affairs of Eris ClearingCboe Clear Digital and to 

establish and enforce rules and procedures for the conduct of business by Eris ClearingCboe Clear 

Digital. Any Officer may also be a director, officer, partner or employee of Eris ClearingCboe 

Clear Digital or any of its affiliates.

At all times, Eris ClearingCboe Clear Digital shall have a Chief Risk Officer, Chief Compliance 

Officer, and a designated senior officer of the company (whether CEO, President, COO, or other).

205. Eligibility of Officers and Board Members

No Person may serve as an Officer or a member of the Board, or any other disciplinary committee, 

arbitration panel or oversight panel if such Person:

(a) Was found within the past three years by a final decision of a self-regulatory organization, 

an administrative law judge, a court of competent jurisdiction or the CFTC to have 

committed a substantive disciplinary offense;

(b) Entered into a settlement agreement within the past three years in which any of the findings 

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

(c) Is currently suspended from trading on any market subject to CEA regulation, is suspended 

or expelled from membership from any self-regulatory organization, is serving any 

sentence of probation or owes any portion of a fine imposed pursuant to either:
March October 2020 

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(i) A finding by a final decision of a self-regulatory organization, an administrative 

law judge, a court of competent jurisdiction or the CFTC that such Person 

committed a disciplinary offense; or

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

any of the acts charged included a disciplinary offense;

(d) Is currently subject to an agreement with the CFTC or any self-regulatory organization not 

to apply for registration with the CFTC or membership in any self-regulatory organization;

(e) Is currently subject to or has had imposed on him or her within the past three years a CFTC 

registration revocation or suspension in any capacity for any reason, or has been convicted 

within the past three years of any of the felonies listed in section 8a(2)(D)(ii) through (iv) 

of the CEA;

(f) Is currently subject to a denial, suspension or disqualification from serving on the 

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; or

(g) Otherwise fails to fulfil reasonable fitness standards of the Clearinghouse, as may be 

determined and modified at the discretion of the Clearinghouse.

Any Officer or member of the Board, disciplinary committee, arbitration panel or oversight panel, 

or holder of 10% or more ownership interest in Eris ClearingCboe Clear Digital, and any individual 

nominated to serve in any such role, shall immediately notify the Chief Compliance Officer if such 

individual meets one or more of the criteria in Rule 205(a)-(g).For purposes of this Rule 205, the 

terms “self-regulatory organization,” “disciplinary committee,” “arbitration panel,” “oversight 

panel,” “final decision,” “disciplinary offense,” and “settlement agreement” have the meanings set 

forth in CFTC Regulation 1.63(a), as amended from time to time.

206. Conflicts of Interest and Misuse of Material, Non-Public Information.

(a) No Officer, Director, or member of a Committee or “disciplinary committee” or “oversight 

panel” (each as defined in CFTC Regulation 1.69) shall knowingly participate in the 

relevant body’s deliberations or voting in any matter involving an inquiry, investigation, 

disciplinary proceeding or any appeal from a disciplinary proceeding, summary 

suspension, other summary action, or any other matter appropriately the subject of the 

Officer’s, Director’s or member’s authorization under Rules 202, 203 and 204, as 

applicable (each an “Action” and, collectively, “Actions”) or Emergency action taken 

pursuant to Rule 207 (each such Action or Emergency action, a “Self-Regulatory Action”) 

where such member has a “material conflict of interest” (each, an “Interested Person”), 

except as described in Rule 206(d).

(b) For purposes of Rule 206(a), a “material conflict of interest” means an Officer, Director, 

or member of a Committee or disciplinary committee or oversight panel:

(i) 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 CFTC 
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Regulation 1.69), other than a direct or indirect equity or other interest in Eris 

ClearingCboe Clear Digital, that could reasonably be expected to be affected by the 

Self-Regulatory Action, as determined pursuant to Rule 206(c)(i) 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;

(ii) being named as a respondent or potential respondent in the Self-Regulatory Action;

(iii) being an employer, employee, fellow employee or an Affiliate of a respondent or 

potential respondent in the Self-Regulatory Action;

(iv) 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 through the same 

Clearing Firm;

(v) 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-inlaw or sister-in-law); and/or

(vi) any other circumstance that gives rise to a conflict between the Officer’s, Director’s 

or member’s exercise of authority concerning any Self-Regulatory Action and his 

or her personal interests.

(c) Disclosure and Determination of Conflicts. 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 Compliance Officer if such member has one 

of the relationships listed in Rule 206(b) above.

(i) For any matter involving the relationship set forth in Rule 206(b)(i), each member 

of the deliberating body who chooses to participate in any deliberations or vote will 

disclose to the Chief Compliance 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:

1. gross positions held at the Clearinghouse in such member’s personal 

accounts or “controlled accounts,” as defined in CFTC Regulation 1.3(j);

2. gross positions held at the Clearinghouse in proprietary accounts, as defined 

in CFTC Regulation 1.17(b)(3), at such member’s affiliated firm;
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3. gross positions held at the Clearinghouse in accounts in which such member

is a principal, as defined in CFTC Regulation 3.1(a);

4. net positions held at the Clearinghouse in Customer accounts, as defined in 

CFTC Regulation 1.17(b)(2), at such member’s affiliated firm; and

5. any other types of positions, whether maintained at the Clearinghouse or 

elsewhere, held in such member’s personal accounts or the proprietary 

accounts of such member’s affiliated firm, that the Clearinghouse 

reasonably expects could be affected by the significant action.

(d) Procedure. The Chief Compliance Officer will determine whether any member of the 

relevant deliberating body who chooses to participate in any deliberations or vote in a SelfRegulatory Action is subject to a conflict restriction under this Rule 206(a).

(i) For any matter involving the relationships listed in Rule 206(b) above, such 

determination will be based upon a review of the following information:

1. information provided by such member pursuant to Rule 206(c); and

2. any other source of information that is held by and reasonably available to 

the Clearinghouse.

(ii) In addition to the review of the information set forth in Rule 206(c)(i) above, for 

any matter involving the relationship set forth in Rule 206(b)(i), such determination 

will be based upon a review of the following information:

1. Information provided to Eris ClearingCboe Clear Digital by the Exchange, 

or information related to trading and clearing records from the Exchange;

2. information provided pursuant to Rule 206(c)(i); and,

3. any other source of information that is held by and reasonably available to 

Eris ClearingCboe Clear Digital taking into consideration the exigency of 

the significant action being contemplated.

(e) Any Interested Person who would be required otherwise to abstain from deliberations and 

voting pursuant to Rule 206(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 206(c)(i) 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:

(i) whether such member’s participation in the deliberations is necessary to achieve a 

quorum; and;
March October 2020 

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(ii) whether such member has unique or special expertise, knowledge or experience in 

the matter being considered.

(f) The minutes of any meeting to which the conflicts determination procedures set forth in 

this Rule 206 apply will reflect the following information:

(i) the names of all members of the relevant deliberating body who attended such 

meeting in person or who otherwise participated in such meeting

(ii) 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;

(iii) information on the position information that was reviewed for each member of the 

relevant deliberating body; and

(iv) any determination made in accordance with Rule 206(d) and (e) above.

(g) If a determination is made that all members of the relevant deliberating body are Interested 

Persons with respect to a matter subject to a vote by the Board, the Chief Compliance 

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 

Committee would have if the members were not Interested Persons with respect to such 

matter.

(h) 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 an Officer or committee or panel member any material, non-public 

information obtained as a result of the individual’s duties and responsibilities as an 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 

Eris ClearingCboe Clear Digital, 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, 

loss and theft.

(i) Notwithstanding Rule 206(h), 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.

(j) For the purposes of Rule 206(h), the terms “material information” and “nonpublic 

information” shall each have the meaning set forth in CFTC Regulation 1.59(a).

207. Emergencies.

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

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

Regulations. If an Officer of the Clearinghouse determines that Emergency Rules must be 
March October 2020 

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implemented with respect to an Emergency before a meeting of the Board can reasonably 

be convened, then the Officer, in consultation and with the approval of the Chief 

Compliance 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.

(b) Pursuant to this Rule 207, Emergency Rules may require or authorize Eris ClearingCboe 

Clear Digital, the Board, any Committee, or the Officers of Eris ClearingCboe Clear Digital

to take actions necessary or appropriate to respond to the Emergency, including, but not 

limited to, the following:

(i) Suspending or curtailing clearing or limiting clearing to liquidation only (in whole 

or in part);

(ii) Extending or shortening the expiration date and/or the last settlement date for 

Contracts;

(iii) Providing alternative settlement mechanisms;

(iv) Ordering the liquidation of Contracts, the fixing of a Settlement Price, or the 

reduction of positions;

(v) Extending, limiting or changing the hours of operation of Eris ClearingCboe Clear 

Digital;

(vi) Temporarily modifying or suspending any provision of the Rules;

(vii) Changing the amount of money to be paid in connection with a Contract, whether 

previously or thereafter delivered; and/or

(viii) Requiring Clearing Members to meet special Margin requirements.

(c) For the purposes of this Rule 207, “Emergency” is defined as any occurrence or 

circumstances which, in the opinion of the Board, an Officer, or a Committee or Exchange 

Committee, requires immediate action, and that threatens, or may threaten, the fair and 

orderly settlement or integrity of any Contract, including, without limitation, the following:

(i) Any circumstance that may materially affect the performance of a Contract;

(ii) Any action taken by the United States government, a foreign government, 

Government Agency, Self-Regulatory Organization, state or local governmental 

body, or market or exchange (foreign or domestic) that may have a material adverse 

effect on the clearing of Contracts through Eris ClearingCboe Clear Digital or the 

settlement, legality or enforceability of any Contract;

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

activity or undue concentration of positions in a Contract;

(iv) Any circumstance that may have a severe, adverse effect upon the functions and 

facilities of Eris ClearingCboe Clear Digital, including, but not limited to, acts of 
March October 2020 

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God, pandemics, fire 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 

clearing systems of Eris ClearingCboe Clear Digital, or other system breakdowns 

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

or the Internet;

(v) The Insolvency of any Clearing Member or the imposition of any injunction or 

other restraint by any Government Agency, court or arbitrator upon a Clearing 

Member which may affect the ability of a Clearing Member to satisfy its 

Obligations;

(vi) Any circumstance in which it appears to the Board that a Clearing Member:

1. Has failed to perform on a Contract;

2. Is Insolvent;

3. Is otherwise in Default;

4. Is in such financial or operational condition or is conducting business such 

that the Clearing Member cannot be permitted to continue in business 

without jeopardizing the safety of funds of Eris ClearingCboe Clear Digital, 

Clearing Members or the funds of Customers; or

(vii) Any other unusual, unforeseeable or adverse circumstance as determined by the 

Board or the Officers of the Clearinghouse. When Eris ClearingCboe Clear Digital

determines that the Emergency has been reduced sufficiently to allow Eris 

ClearingCboe Clear Digital to resume normal functioning, any such actions will be 

terminated.

(d) Whenever Eris ClearingCboe Clear Digital takes action to respond to an Emergency 

(including, without limitation, the actions set forth in paragraph (b) above), it will, where 

possible, ensure that notice is timely given to Clearing Members

(e) Eris ClearingCboe Clear Digital 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, Eris ClearingCboe Clear Digital will notify the CFTC as soon 

as reasonably practicable, but in all circumstances within twenty-four hours of the 

implementation, modification or termination of such Emergency Rule. In all cases, Eris 

ClearingCboe Clear Digital will act in accordance with CFTC rules on Emergency rule 

certifications under CFTC Regulation 40.6.

(f) Upon taking any action in response to an Emergency, Eris ClearingCboe Clear Digital will 

document the decisions and deliberations related to such action. Such documentation will 

be kept for at least five years, consistent with the Clearinghouse Recordkeeping Policy, 

following the date on which the Emergency ceases to exist or to affect Eris ClearingCboe 

Clear Digital, and all such documentation will be provided to the CFTC upon request.
March October 2020 

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208. Maintenance of Books and Records by the Clearinghouse

(a) Eris ClearingCboe Clear Digital shall keep, or cause to be kept, complete and accurate 

books and records of accounts of the Clearinghouse, including, without limitation, all 

books and records required to be maintained pursuant to the CEA, CFTC Regulations, and 

State Regulations.

(b) Eris ClearingCboe Clear Digital shall retain all such books and records for at least five (5) 

years, or such longer period as may be required under Applicable Law, and shall make 

such books and records readily accessible for inspection by the CFTC, the United States 

Department of Justice or such other governmental or regulatory authority, as required under 

Applicable Law.

3. CLEARING MEMBERS

301. General Eligibility Requirements of Clearing Members.

(a) The Clearinghouse imposes eligibility requirements for Clearing Members, and may 

modify these requirements in order to maintain an orderly clearing process and mitigate 

risk to the Clearinghouse and other Clearing Members.

(b) All Clearing Members and prospective Clearing Members who wish to enter into a 

Clearing Member Agreement will be subject to Clearinghouse Anti-Money Laundering 

policies and procedures, designed to achieve and monitor compliance with the 

requirements of the Bank Secrecy Act and the regulations promulgated thereunder, or 

otherwise, by the Department of the Treasury or other federal agencies and bureaus.

(c) All Clearing Members are subject to all Rules, as well as all rules of the Exchange, whether 

contained in the Exchange Rulebook, or in Exchange guidance or notices.

(d) Each applicant for qualification as a Clearing Member must satisfy the following 

requirements at the time of application, and at all times as a Clearing Member:

(i) Applicant must not be subject to any economic or trade sanctions programs 

administered by OFAC or other relevant U.S. or non-U.S. authority and must not 

be listed on OFAC’s List of Specially-Designated Nationals and Blocked Persons;

(ii) It shall enter into a Clearing Member Agreement with Eris ClearingCboe Clear 

Digital, pursuant to which it shall agree, among other things, to: (1) abide by all 

Eris ClearingCboe Clear Digital Rules and to cooperate in their enforcement; (2) 

be responsible, even after it has withdrawn as a Clearing Member, for any violations 

of Eris ClearingCboe Clear Digital Rules committed by it while it was a Clearing 

Member; and (3) continue to meet all requirements applicable to Clearing 

Members, including all financial requirements provided by these Rules;

(iii) It shall have received all necessary approvals and consents from all applicable 

regulatory authorities and Government Agencies to permit it to conduct the 

business of a Clearing Member;
March October 2020 

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(iv) Applicant must have one or more accounts that has been approved by Eris 

ClearingCboe Clear Digital for purposes of depositing and withdrawing funds or 

Collateral at Eris ClearingCboe Clear Digital;

(v) It shall be engaged in or demonstrate immediate capacity to engage in the conduct 

of the business of a Clearing Member;

(vi) Applicant must not be prohibited from using the services of the Exchange for any 

reason whatsoever;

(vii) It shall continuously satisfy any minimum commercial, integrity, financial, credit, 

operational capability and competence standards, as may be established by Eris 

ClearingCboe Clear Digital from time to time;

(viii) Applicant must maintain adequate financial resources and credit as may be 

determined by the Clearinghouse from time to time and published on the Eris 

ClearingCboe Clear Digital website; and

(ix) Applicant must not have filed for bankruptcy, and not be subject to a current 

bankruptcy proceeding.

(e) In addition to the requirements set forth in paragraph (d), each applicant for qualification 

as an FCM Clearing Member must satisfy the following requirements at the time of 

application, and at all times as an FCM Clearing Member:

(i) It shall be a corporation, limited liability company, partnership or other entity 

approved by Eris ClearingCboe Clear Digital, duly organized and in good standing 

in its state of organization;

(ii) It shall maintain back-office facilities staffed with experienced and competent 

personnel or have entered into a facilities management agreement in form and 

substance acceptable to Eris ClearingCboe Clear Digital; and

(iii) It shall maintain minimum regulatory capital in excess of the greater of (1) 

$5,000,000 and (2) any applicable capital requirements imposed on applicant by 

the CFTC, another Government Agency or Self- Regulatory Organization.

(f) In addition to the requirements set forth in paragraph (d), each applicant for qualification 

as a Direct Clearing Member must satisfy the following requirements at the time of 

application, and at all times as a Direct Clearing Member:

(i) Have the ability to make and take delivery of any Contract in which it trades;

(ii) Have banking relationships sufficient to deposit U.S. dollars with the 

Clearinghouse settlement bank;

(iii) On a daily basis reconcile its records against those of the Clearinghouse;

(iv) Provide updated positions each business day by the time established by the 

Clearinghouse;
March October 2020 

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(v) Identify an Authorized Representative to be contacted in the event of any issues 

related to clearing.

(g) The Board may, in its sole discretion, grant exemptions or guidance to the requirements set 

forth in this Rule 301 for Clearing Members if it determines that such an exemption will 

not jeopardize the financial integrity of Eris ClearingCboe Clear Digital. Additionally, the 

Board or Risk Committee may require applicants meet additional requirements, provide 

additional information for evaluation, or refuse to admit any Person as a Clearing Member 

if, at their sole and absolute discretion, they determine that admission of such Person would 

undermine the financial integrity or reputation of the Clearinghouse.

302. Application and Approval of Clearing Member Status.

(a) Applicants for Clearing Member status shall submit an application in the form prescribed 

by Eris ClearingCboe Clear Digital, financial statements and any other documentation as 

Eris ClearingCboe Clear Digital shall require and shall enter into a Clearing Member 

Agreement with Eris ClearingCboe Clear Digital.

(b) Eris ClearingCboe Clear Digital may review the books and records of any applicant or 

Clearing Member and take such other action as it may deem appropriate to investigate an 

applicant’s or Clearing Member’s qualifications. FCM Clearing Members shall, at time of 

application and thereafter as required by Eris ClearingCboe Clear Digital, submit 

statements of its financial condition and other financial records as shall be prescribed from 

time to time.

(c) Eris ClearingCboe Clear Digital shall have the sole discretion to determine whether any 

applicant, or any existing Clearing Member, meets its clearing privileges qualifications. 

The Clearinghouse shall have no liability to any applicant or Clearing Member who is 

denied or loses Clearing Member status.

(d) The Board, or if such responsibility is delegated, then the Chief Compliance Officer or 

other Officer of the Clearinghouse shall have final authority to grant or deny an application 

to become a Clearing Member and shall deny the application of any Person which does not 

meet the eligibility requirements established pursuant to Rules 301, 302 and 303.

(e) If the Board or delegated Officer grants an application to become a Clearing Member, Eris 

ClearingCboe Clear Digital shall promptly give the applicant written notice thereof. The 

applicant shall thereafter become a Clearing Member at such time as the applicant has filed 

with Eris ClearingCboe Clear Digital such agreements and documents, and performed such 

undertakings as Eris ClearingCboe Clear Digital may require; provided, however, that if 

such applicant has not complied with the foregoing provisions within 30 days after the 

applicant was given written notice of approval of its application, the application shall be 

deemed to have been withdrawn.

(f) If, in accordance with paragraph (d) of this Rule 302, Eris ClearingCboe Clear Digital

denies an application to become a Clearing Member, Eris ClearingCboe Clear Digital shall 

give the applicant notice of the Board’s decision, setting forth the grounds therefor, and 

such decision shall be the final action of Eris ClearingCboe Clear Digital.
March October 2020 

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(g) By virtue of obtaining clearing privileges, a Clearing Member shall not obtain any equity 

or other interest in Eris ClearingCboe Clear Digital, including voting rights or rights to 

receive any dividends or other distributions, whether arising from a dissolution, merger, 

consolidation involving Eris ClearingCboe Clear Digital or otherwise. All such rights shall 

be owned exclusively by the members of Eris ClearingCboe Clear Digital, as specified in 

the LLC Agreement.

303. Duties and Responsibilities of Clearing Members.

(a) Any Person initiating or executing a transaction in Contracts to be cleared by Eris 

ClearingCboe Clear Digital, and any Person for whose benefit such a transaction has been 

initiated or executed, expressly consents to the jurisdiction of the Clearinghouse and agrees 

to be bound by and comply with the Rules of the Eris ClearingCboe Clear Digital in relation 

to such transactions and Contracts, including, but not limited to, rules requiring cooperation 

and participation in investigatory and disciplinary processes. Each Clearing Member shall:

(i) Comply with and act in a manner consistent with, and cause its Authorized 

Representatives and employees to comply with an act in a manner consistent with, 

the Rules;

(ii) Guarantee and assume responsibility for all Contracts submitted by it or for which 

it authorizes another Person to submit in its name for clearing;

(iii) Keep the passwords assigned by Eris ClearingCboe Clear Digital confidential;

(iv) At all times maintain one or more accounts that has been approved by Eris 

ClearingCboe Clear Digital for purposes of depositing and withdrawing funds or 

Collateral at Eris ClearingCboe Clear Digital, and promptly inform Eris 

ClearingCboe Clear Digital of any changes to any of the foregoing account(s)

(v) Promptly review and, if necessary, respond to all communications sent by Eris 

ClearingCboe Clear Digital;

(vi) Be responsible for violations of the Rules committed by it, its Authorized 

Representative or employees;

(vii) Not knowingly mislead or conceal any material fact or matter in any dealings or 

filings with Eris ClearingCboe Clear Digital or in response to any proceeding;

(viii) Cooperate with Eris ClearingCboe Clear Digital and any Government Agency in 

any inquiry, investigation, audit, examination or proceeding;

(ix) Observe high standards of integrity, commercial honor, fair dealing, and just and 

equitable principles of trade in relation to any aspect of its business connected with 

or concerning Eris ClearingCboe Clear Digital.

(b) In addition to the requirements in 303(a) , each FCM Clearing Member shall also:

(i) Provide appropriate staff in its offices during specified hours, on Business Days 

and otherwise, when such is deemed necessary by Eris ClearingCboe Clear Digital
March October 2020 

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to ensure the integrity of its systems or as otherwise deemed necessary for the 

protection of the Eris ClearingCboe Clear Digital;

(ii) Have written risk management policies and procedures in place to ensure it is able 

to perform certain basic risk and operational functions at all times and to make 

information regarding its risk management policies, procedures and practices 

available to Eris ClearingCboe Clear Digital or the CFTC upon request. At a 

minimum, the following areas must be addressed in the Clearing Member’s policies 

and procedures, taking into account the Clearing Member’s business and products 

offered for clearing

(iii) Monitoring the credit risks of accepting trades, including give-up trades, of its 

Customers;

(iv) Monitoring the risks associated with proprietary trading;

(v) Limiting the impact of significant market moves through the use of tools such as 

stress testing or position limits;

(vi) Maintaining the ability to monitor account activity on an intraday and overnight 

basis;

(vii) Ensuring order entry systems, including third party systems connected to any 

exchange, include the ability to set automated credit controls or position limits or 

requiring a firm employee to enter orders; and Defining sources of liquidity for 

increased settlement obligations;

(viii) Ensuring that all trades placed by Customers of the FCM Clearing Member are fully 

collateralized.

(ix) Prior to the last day of trading in any contract that is physically delivered, assess 

the ability of any owner of an account on its books with open positions in the 

expiring contract to make or take delivery. Absent evidence of receiving 

satisfactory information from the account owner or controller, the FCM Clearing 

Member is responsible for ensuring that the open positions are liquidated in an 

orderly manner prior to the expiration of trading. 

304. Authorized Representative.

(a) Each Clearing Member shall designate one or more Authorized Representatives to sign all 

instruments, correct errors, perform such other duties as may be required under the Rules 

and transact all business in connection with the operations of Eris ClearingCboe Clear 

Digital. Each Clearing Member must provide Eris ClearingCboe Clear Digital with current 

contact and other requested information for each of its Authorized Representatives.

(b) To designate an Authorized Representative, a Clearing Member must provide the 

information requested and conform to the procedures and requirements established by Eris 

ClearingCboe Clear Digital. By agreeing to become an Authorized Representative, an 

individual agrees to be bound by the duties and responsibilities of an Authorized 
March October 2020 

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Representative and to be subject to, and comply with, the Rules and Obligations to the 

extent applicable.

(c) Eris ClearingCboe Clear Digital will promptly notify a Clearing Member of the approval 

of nominated Authorized Representatives and will maintain a list of all approved 

Authorized Representatives for each Clearing Member. Eris ClearingCboe Clear Digital

shall promptly notify the Clearing Member if Eris ClearingCboe Clear Digital (i) declines 

to approve the designation, (ii) revokes the designation, or (iii) suspends the designation of 

an Authorized Representative.

(d) An Authorized Representative who is suspended remains subject to the Rules and Eris 

ClearingCboe Clear Digital’s jurisdiction throughout the period of suspension.

(e) To request the termination of the designation of an Authorized Representative, the Clearing 

Member or the Authorized Representative must notify Eris ClearingCboe Clear Digital

providing the information and complying with the procedures and requirements established 

by Eris ClearingCboe Clear Digital.

(f) An Authorized Representative remains subject to the Rules and the jurisdiction of Eris 

ClearingCboe Clear Digital for acts done and omissions made while registered as such, and 

a proceeding relating to an individual whose designation as an Authorized Representative 

has been terminated or suspended shall occur as if the Authorized Representative were still 

registered as such.

305. Adequate Resources

If Eris ClearingCboe Clear Digital has reason to believe that a Clearing Member may fail to comply 

with any of the Rules, it may require the Clearing Member to provide it, within such time frame, 

in such detail, and in such manner as Eris ClearingCboe Clear Digital shall determine, with 

adequate assurances that the Clearing Member shall not violate any of the Rules.

306. Notices Required of Clearing Members.

(a) Each Clearing Member, if applicable, shall immediately notify Eris ClearingCboe Clear 

Digital, orally and in writing, of:

(i) Any Default of the Clearing Member or any failure or inability of the Clearing 

Member to meet its Obligations;

(ii) Any failure to maintain current books and records;

(iii) Any refusal of admission to, withdrawal of any application for membership in, any 

suspension, expulsion, bar, fine, censure, denial of membership, registration or 

license, withdrawal of any application for registration, cease and desist order, 

temporary or permanent injunction, denial of trading privileges or clearing 

privileges, or any other sanction or discipline through an adverse determination, 

voluntary settlement or otherwise, by the CFTC, the SEC, any commodity or 

securities exchange, clearing organization, any Self-Regulatory Organization or 

other business or professional association;
March October 2020 

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(iv) The imposition of any restriction or limitation on the business conducted by the 

Clearing Member on or with any securities or futures clearing organization or 

exchange (including, without limitation, any contract market, swap execution 

facility or other trading facility), other than restrictions or limitations imposed 

generally on all Clearing Members of or Clearing Members of such clearing 

organization or exchange;

(v) Any failure by such Clearing Member, or any guarantor or commonly owned or 

controlled Clearing Member, to perform any of its material contracts, obligations 

or agreements;

(vi) Any determination that it, or any guarantor or commonly owned or controlled 

Clearing Member, will be unable to perform any of its material contracts, 

obligations or agreements;

(vii) The insolvency, bankruptcy or receivership of such Clearing Member, or of any

guarantor or commonly owned or controlled Clearing Member;

(viii) The institution of any proceeding by or against the Clearing Member, any affiliate 

of the Clearing Member, or any 5% direct owner of the Clearing Member, under 

any provision of the bankruptcy laws of the United States, or under the Securities 

Investor Protection Act of 1970, any other statute or equitable power of a court of 

like nature or purpose, in which such Clearing Member or Person is designated as 

the bankrupt, debtor or equivalent, or a receiver is appointed, or if a receiver, trustee 

or similar official is appointed for the Clearing Member, such Person, or its or their 

property;

(ix) The receipt by such Clearing Member, or the filing by such Clearing Member with 

a Self-Regulatory Organization, of a notice of material inadequacy, including as 

provided in CFTC Regulation 1.16(d)(2) or SEC Rule 17a-5(g)(3), in each case as 

applicable to such Clearing Member;

(x) The receipt by such Clearing Member from its independent auditors of an audit 

opinion that is not unqualified;

(xi) The cessation by such Clearing Member of its clearing of trades for a trading 

privilege holder of the Exchange; or

(xii) Any default by a Customer of the FCM Clearing Member.

(b) In addition to the requirements above, an FCM Clearing Member shall promptly provide 

written notice to Eris ClearingCboe Clear Digital of:

(i) Any reduction in adjusted net capital of 20 percent or more as reported on its Form 

1-FR or net capital as reported on its FOCUS Report from the most recent filing of 

such report;
March October 2020 

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(ii) Any failure of the Clearing Member to remain in compliance with the minimum 

capital or “early warning” requirements of any Government Agency or SelfRegulatory Organization

(iii) such Clearing Member knows or has reason to believe that its adjusted net capital 

has fallen below Eris ClearingCboe Clear Digital’s minimum capital requirements;

(iv) Any damage to, or failure or inadequacy of, the systems, facilities or equipment of 

the Clearing Member used to perform the Clearing Member’s obligations under or 

in connection with Contracts or Customer Accounts that is not promptly remedied;

(v) If such Clearing Member fails to comply with additional accounting, reporting, 

financial and/or operation requirements prescribed by Eris ClearingCboe Clear 

Digital;

(vi) Any failure to maintain funds in any Customer Account sufficient to comply with 

applicable CFTC Regulations;

(vii) Any planned material reduction in equity capital (and, in all cases, any planned 

reduction in equity capital that would cause a reduction in excess adjusted net 

capital, excess net capital or excess liquid capital of 30% or more), including the 

incurrence of a contingent liability which would materially affect the Clearing 

Member’s capital or other representations contained in the latest financial statement 

submitted to Eris ClearingCboe Clear Digital should such liability become fixed; 

provided that no such notice shall be required in the case of a reduction in capital 

resulting from (1) the repayment or prepayment of subordinated liabilities for which 

notice has been given pursuant to applicable CFTC or SEC requirements, or (2) any 

futures or securities transaction in the ordinary course of business between a 

Clearing Member and any affiliate where the Clearing Member makes payment to 

or on behalf of such affiliate for such transaction and then receives payment from 

such affiliate for such transaction within two Business Days from the date of the 

transaction;

(viii) Any change in the FCM Clearing Member’s fiscal year or its public accountants;

(ix) If any Person directly or indirectly becomes a 5% direct owner of the FCM Clearing 

Member;

(x) Any changes in its name, business address, its telephone or facsimile number, 

electronic mail address, or any number or access code for any electronic 

communication device used by it to communicate with Eris ClearingCboe Clear 

Digital; or

(xi) Any external audit findings (including reviews by the Clearing Member’s 

designated Self-Regulatory Organization).

(c) An FCM Clearing Member shall, unless it is impractical to do so (in which case it shall 

provide written notice to Eris ClearingCboe Clear Digital as promptly as possible), provide 
March October 2020 

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at least thirty days prior written notice to Eris ClearingCboe Clear Digital, where 

applicable, of:

(i) Any proposed change in the organizational or ownership structure or management 

of the FCM Clearing Member, including any merger, combination or consolidation 

between the FCM Clearing Member and another Person;

(ii) The assumption or guaranty by the FCM Clearing Member of all or substantially 

all of the liabilities of another Person in connection with a direct or indirect 

acquisition of all or substantially all of that Person’s assets;

(iii) The sale of all or a significant portion of the FCM Clearing Member’s business or 

assets to another Person;

(iv) A change in the direct or indirect beneficial ownership of 20% or more of the FCM 

Clearing Member;

(v) Any change in the FCM Clearing Member’s systems provider or facilities manager 

used by the FCM Clearing Member to process transactions in Contracts; or

(vi) Any planned changes to the FCM Clearing Member’s risk management processes 

or systems.

(d) Upon the receipt of a notice of the type set forth in paragraphs (a) - (c) above, Eris 

ClearingCboe Clear Digital shall review the continuing eligibility of the Clearing Member 

for clearing eligibility. Where such notice constitutes notice of a Default, Eris 

ClearingCboe Clear Digital may take any or all of the actions as permitted by these Rules, 

including Rules 502 and 601.

307. Omnibus and Carrying Broker Accounts.

(a) Each FCM Clearing Member shall maintain a complete list of all omnibus and carrying 

broker accounts maintained on its books. Such list shall be promptly provided to Eris 

ClearingCboe Clear Digital upon request. Information for each such account must include 

account name, number and address, and classification of the account as either Customer or 

house.

(b) Each FCM Clearing Member carrying an omnibus account shall at all times reflect in its 

records the gross long and short positions held in such omnibus account.

(c) Each FCM Clearing Member that maintains an omnibus account with another FCM 

Clearing Member shall also bear financial responsibility to Eris ClearingCboe Clear Digital

for that omnibus account.

308. Financial Requirements of FCM Clearing Members.

(a) FCM Clearing Members must at all times maintain minimum regulatory capital in excess 

of the greater of (i) $5,000,000, and (ii) the capital requirements imposed by any 

Government Agency, Self-Regulatory Organization or other examining authority or 

regulator to which it is subject by statute, regulation or agreement. Eris ClearingCboe Clear 
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Digital may prescribe additional capital requirements with respect to any FCM Clearing 

Member.

(b) FCM Clearing Members shall:

(i) Submit a monthly Form 1-FR-FCM or a FOCUS Report and supplementary 

information schedule, in the form prescribed by the CFTC, including an unaudited 

monthly Form 1-FR-FCM or FOCUS Report as of the FCM Clearing Member’s 

fiscal year-end, within the time set forth in CFTC Regulation 1.10. A FCM Clearing 

Member must include with its Form 1-FR-FCM or FOCUS Report a Statement of 

Income (Loss) for the period between the date of the most recent 1-FR-FCM or 

FOCUS or, at the option of the FCM Clearing Member, the most recent certified 1-

FR- FCM or FOCUS filed with Eris ClearingCboe Clear Digital and the date for 

which the report is made;

(ii) Submit a certified Form 1-FR-FCM or FOCUS Report as of the Clearing Member’s 

fiscal year-end within the time requirements set forth in CFTC Regulation 1.10. A 

FCM Clearing Member must include with its certified Form 1-FR-FCM or FOCUS 

Report, a reconciliation from the certified Form 1-FR-FCM or FOCUS Report to 

the monthly Form 1-FR-FCM or FOCUS Report as of the same date or a statement 

that no material differences were noted.

(c) Eris ClearingCboe Clear Digital may prescribe additional accounting, reporting, and other 

financial and/or operational requirements, and FCM Clearing Members must comply with 

such requirements.

(d) Financial statement filing requirements under this Rule must be met through Eris 

ClearingCboe Clear Digital-approved electronic transmission, except for certified Form 1-

FR-FCMs or FOCUS Reports, which shall be submitted in physical form. FCM Clearing 

Members must provide any reports or information pertaining to their financial resources to

the CFTC upon request.

(e) Exceptions to the financial and reporting requirements of this Rule 308 may be granted by 

the Board, in consultation with the Chief Compliance Officer, for good cause if it is 

determined that such exceptions will not jeopardize the financial integrity of Eris 

ClearingCboe Clear Digital.

309. Customer Accounts and Member Property Accounts.

(a) All Customer funds deposited by an FCM Clearing Member with Eris ClearingCboe Clear 

Digital on behalf of Customers protected by CFTC Regulation 1.20 shall be held in 

accordance with the CEA and CFTC Regulation 1.20 in an account identified as “Customer 

Segregated.” Such Customer funds shall be segregated by Eris ClearingCboe Clear Digital

and treated as belonging to the Customers of the FCM Clearing Member. Pursuant to this 

Rule, a Clearing Member shall satisfy the segregation acknowledgment letter requirements 

of the CEA and CFTC Regulation 1.20 for Customer deposits held at Eris ClearingCboe 

Clear Digital.
March October 2020 

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(b) All funds deposited by a Clearing Member with Eris ClearingCboe Clear Digital on behalf 

of the Clearing Member’s own account shall be held in a Member Property Account. Such 

Clearing Member funds shall be segregated by Eris ClearingCboe Clear Digital and treated 

as belonging to Clearing Members.

(c) Eris ClearingCboe Clear Digital will, upon request by a Customer, promptly transfer, from 

the Customer Account of one FCM Clearing Member to the Customer Account of another 

FCM Clearing Member, all or a portion of such Customer’s Contracts, in accordance with 

Rule 408(a)(i).

310. General Recordkeeping and Reporting Requirements for Clearing Members.

(a) Each Clearing Member shall prepare, maintain and keep current those books and records 

required by these Rules, the CEA, CFTC Regulations, and any applicable State 

Regulations. Such books and records shall be open to inspection and promptly provided to 

Eris ClearingCboe Clear Digital, the CFTC or other Government Agency upon request.

(b) Without limiting the foregoing, each Clearing Members shall make and retain records with 

respect to each trade showing the Contract, quantity, date, price, delivery month, the name 

or account identifier of any Customer for whom the trade was made and such other 

information as may be required by law, regulation, or by Eris ClearingCboe Clear Digital. 

Such records shall be retained for at least five years, either in original form or in such other 

form as Eris ClearingCboe Clear Digital may from time to time authorize.

(c) Each FCM Clearing Member shall maintain an adequate accounting system, internal 

accounting controls, and procedures for safeguarding Customer and firm assets, where 

applicable. This includes, but is not limited to, the following:

(i) Preparation and maintenance of complete and accurate reconciliations for all

accounts; and

(ii) Resolution of reconciling items in a timely manner; and

(iii) Prevention of a material inadequacy as defined in CFTC Regulation 1.16(d)(2).

(d) An FCM Clearing Member shall file any information requested by Eris ClearingCboe Clear 

Digital within the time period specified in the request and shall, at all times have the ability 

to provide to Eris ClearingCboe Clear Digital in an acceptable form a complete set of backoffice system reports (including, at a minimum, the equity run, open position listing, day 

trade listing, cash adjustments listing and debit equity listing, if applicable). Such reports 

shall be available to Eris ClearingCboe Clear Digital no later than 8:00 a.m. Chicago time 

on the Business Day following the report date.

(e) Each FCM Clearing Member shall at all times have the ability to provide promptly to Eris 

ClearingCboe Clear Digital upon request a listing of each of its Customers’ method of 

access to the Exchange, including front end applications and network connections.
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311. Disaster Recovery and Business Continuity FCM Clearing Members

(a) Each FCM Clearing Member shall have written disaster recovery and business continuity 

policies and procedures reasonably designed to ensure it is able to perform certain basic 

operational functions in the event of a significant internal or external interruption to its 

operations. At a minimum, the following areas must be considered in the FCM Clearing 

Member’s policies and procedures:

(i) The FCM Clearing Member must have procedures in place to allow it to continue 

to operate during periods of stress with minimal disruption to either Eris 

ClearingCboe Clear Digital or its Customers. The FCM Clearing Members must 

perform periodic testing, including testing with Eris ClearingCboe Clear Digital

when so requested, of disaster recovery and business continuity plans, duplication 

of critical systems at back up sites and periodic backup of critical information; and

(ii) The FCM Clearing Member must maintain and, at the request of Eris ClearingCboe 

Clear Digital, provide accurate and complete information for its key personnel. An 

FCM Clearing Member must inform Eris ClearingCboe Clear Digital in a timely 

manner whenever a change to its key personnel is made.

(b) Eris ClearingCboe Clear Digital may prescribe additional and/or alternative requirements 

for FCM Clearing Members’ compliance with this Rule.

(c) FCM Clearing Members must participate in coordinated testing of their disaster recovery 

and business continuity policies and procedures at least annually. An FCM Clearing 

Member can fulfill this requirement by participating in an industry-wide testing event in 

which Eris ClearingCboe Clear Digital or the Exchange also participates.

312. Fees.

Eris ClearingCboe Clear Digital shall have the right to invoice clients and accept payment via 

check, wire, or money transfer, or to offset any fees, charges or other amounts (other than fines or 

penalties) due to Eris ClearingCboe Clear Digital or due to the Exchange against a Clearing 

Member’s Margin balance, and shall have the right to instruct an Approved Depository Institution, 

if applicable, to debit the Account maintained by an Clearing Member to offset any amounts due 

the Clearinghouse.

313. Segregation of Customer Funds and Assets for FCM Clearing Members.

(a) Each FCM Clearing Member must comply with the requirements of the CEA and CFTC 

Regulations regarding segregation of customer funds from the FCM Clearing Member’s 

own funds or assets, including, but not limited to, CFTC Regulations 1.20 through 1.30, 

1.32, and 30.7.

(b) Eris ClearingCboe Clear Digital shall comply with the applicable segregation requirements 

of Section 4d of the CEA and CFTC Regulations with respect to customer funds held by 

Eris ClearingCboe Clear Digital.
March October 2020 

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(c) As used in this Rule 315, “customer funds” has the same meaning as in CFTC Regulation 

1.3.

314. Access to Eris ClearingCboe Clear Digital.

A Customer entering orders by electronic access must access Eris ClearingCboe Clear Digital

through the systems owned or sponsored by such Customer’s FCM Clearing Member.

315. Digital Asset Collateral.

(a) With respect to any digital asset Collateral, including, but not limited to, Bitcoin, which is 

or may be credited to any Clearing Member’s Member Property Account, the following 

terms and conditions shall apply:

(i) For purposes of creating a “security entitlement” as such term is defined in Section 

8-102(a)(17) of the UCC, the Clearinghouse and the Clearing Member agree that: 

(1) the digital asset Collateral shall be treated as a “financial asset” as such term is 

defined in Section 8-102(a)(9) of the UCC; and (2) each Clearing Member shall be 

treated as an “entitlement holder” as such term is defined in Section 8-102(a)(7) of 

the UCC.

(ii) Each Clearing Member acknowledges that the Clearinghouse is a “securities 

intermediary” as such term is defined in Section 8-102(a)(14) of the UCC.

(iii) Any digital asset Collateral which a Clearing Member desires be credited to such 

Clearing Member’s Member Property Account shall be transferred to a digital asset 

wallet designated by the Clearinghouse and upon such transfer the Clearinghouse 

shall indicate by book entry that such digital asset Collateral, less applicable 

transfer costs and fees, has been credited to such Member Property Account.

(b) With respect to any digital asset Collateral, including, but not limited to, Bitcoin, which is 

or may be credited to any Customer Account, the following terms and conditions shall 

apply:

(i) For purposes of creating a “security entitlement” as such term is defined in Section 

8-102(a)(17) of the UCC, the Clearinghouse and the Customer and the relevant 

FCM Clearing Member all agree that: (1) the digital asset Collateral shall be treated 

as a “financial asset” as such term is defined in Section 8-102(a)(9) of the UCC; 

and (2) each FCM Clearing Member shall be treated as an “entitlement holder” as 

such term is defined in Section 8-102(a)(7) of the UCC.

(ii) Each Customer and each FCM Clearing Member acknowledges that the 

Clearinghouse is a “securities intermediary” as such term is defined in Section 8-

102(a)(14) of the UCC.

(iii) Any digital asset Collateral which an FCM Clearing Member desires be credited to 

any of such FCM Clearing Member’s Customer Accounts shall be transferred to a 

digital asset wallet designated by the Clearinghouse and upon such transfer the 

Clearinghouse shall indicate by book entry that such digital asset Collateral, less 
March October 2020 

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applicable transfer costs and fees, has been credited to any of such Customer 

Accounts.

(c) The Clearinghouse shall have only such duties and obligations with respect to each 

Member Property Account and Customer Account as are set forth in Article 8 of the UCC 

or otherwise mandated by Applicable Law. Each Clearing Member, including each FCM 

Clearing Member, and each Customer acknowledges and agrees that the Clearinghouse is 

not a fiduciary for any Clearing Member, including any FCM Clearing Member, or 

Customer.

(d) The State of Illinois is the “securities intermediary’s jurisdiction” within the meaning of 

Section 8-110(e) of the UCC for all purposes of the UCC.

4. CLEARING, SETTLEMENT, AND DELIVERY OF CONTRACTS

401. Submission of Trades.

(a) Upon matching of a trade effected on or pursuant to the rules of the Exchange, the 

Exchange shall promptly submit to Eris ClearingCboe Clear Digital a trade report 

generated by the electronic trading system of the Exchange. The report shall show for each 

trade (i) the identity of each Clearing Member, (ii) whether bought or sold, (iii) quantity, 

(iv) delivery month, (v) the price, (vi) whether for house, Customer, or non-Customer 

account, and (vii) such other information as may be required by Eris ClearingCboe Clear 

Digital.

(b) If Eris ClearingCboe Clear Digital determines that any trade report submitted pursuant to 

this Rule 401 contains a material error or is otherwise not eligible for clearing by Eris 

ClearingCboe Clear Digital, Eris ClearingCboe Clear Digital may reject such trade and 

notify the Exchange of such rejection, setting forth the basis of such objection.

402. Clearance and Substitution.

(a) The submission of a Contract to Eris ClearingCboe Clear Digital by or on behalf of the 

buying and selling Clearing Members shall constitute a request, by such Clearing 

Members, for the clearing of such Contract by Eris ClearingCboe Clear Digital. Upon the 

acceptance thereof by Eris ClearingCboe Clear Digital, which ordinarily shall be deemed 

to occur upon the receipt of matched trade data from the Exchange, the Contract shall be 

novated and Eris ClearingCboe Clear Digital shall be substituted as, and assume the 

position of, seller to the Clearing Member buying such Contract and buyer from the 

Clearing Member selling such Contract. Upon such substitution, such buying and selling 

Clearing Members shall be released from their obligations to each other, and Eris 

ClearingCboe Clear Digital shall be deemed to have succeeded to all the rights, and to have 

assumed all the Obligations, of the Clearing Members that were party to such Contract, in 

each case as provided in the Rules.

(b) Where an FCM Clearing Member acts to clear a Contract made for the account of a 

Customer, the FCM Clearing Member becomes obligated to Eris ClearingCboe Clear 

Digital, and Eris ClearingCboe Clear Digital becomes obligated to the FCM Clearing 
March October 2020 

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Member, with respect to such Contract in the same manner and to the same extent as if the 

Contract were for the account of the FCM Clearing Member.

(c) Notwithstanding the provisions of paragraph (a), a trade shall not be accepted for clearing, 

and Eris ClearingCboe Clear Digital shall not be substituted for a given Contract, unless 

the Margin for such Contract is made available to Eris ClearingCboe Clear Digital, by or 

for both Clearing Members, pursuant to Rule 403.

403. Margin.

(a) (i) Each Clearing Member shall deposit funds or Collateral in the form of the applicable 

quantity of the deliverable underlying commodity required to fully collateralize orders 

pursuant to the contract specifications contained in the Exchange rulebook, including 

payment of premiums, payment in exchange for delivery or to fulfill delivery obligations, 

as applicable, prior to submission of such orders to the Exchange. Fund and Collateral 

transfers made by a Clearing Member to the Clearinghouse or by the Clearinghouse to a 

Clearing Member are irrevocable and unconditional when effected. The Clearing Member 

shall be responsible for all fees associated with wires or transfers of Collateral to the 

Clearinghouse.

(b) (ii) An FCM Clearing Member may not permit the withdrawal of funds or Collateral from 

a Customer Account if such withdrawal will result in the account having less than the 

margin required under Rule 403(a)(i).

(c) Subject to the terms and conditions of the Clearinghouse, Clearing Members may deposit 

the following as Margin: (1) cash; (2) the underlying commodity; and (3) any other form 

of Collateral deemed acceptable by the Risk Management Committee upon the Risk 

Management Committee’s approval of such Collateral as communicated through 

Clearinghouse notices. The Clearinghouse will value margin Collateral as it deems 

appropriate.

(d) Funds and Collateral must be and remain unencumbered. Except as otherwise provided 

herein, each Clearing Member posting funds or Collateral hereby grants to the 

Clearinghouse a first priority security interest in and unencumbered lien against any 

Margin, Contracts, positions and other funds, property and any other Collateral deposited 

with the Clearinghouse by the Clearing Member, including without limitation such 

Clearing Member’s Member Property Accounts, the Customer Accounts of such Clearing 

Member’s Customers, and all securities entitlements held therein. A Clearing Member shall 

execute any documents required by Eris ClearingCboe Clear Digital to create, perfect and 

enforce such lien. Each Clearing Member hereby agrees that with respect to any funds or 

Collateral which is or may be credited to the Clearing Member’s Member Property Account 

or Customer Account, as applicable, the Clearinghouse shall have control pursuant to 

Section 9-106(a) and 8-106(e) of the UCC and a perfected security interest pursuant to 

Section 9-314(a) of the UCC.

(e) Eris ClearingCboe Clear Digital may assign, pledge, repledge or otherwise create a lien on 

or security interest in, and enter into repurchase agreements involving, Margin, Contracts, 

positions and other funds, property and any other Collateral deposited with the 
March October 2020 

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Clearinghouse by the Clearing Member, as permitted by CFTC Regulations and applicable 

State Regulations, held in or for such Clearing Member’s Member Property Accounts or 

the Customer Accounts of such Clearing Member’s Customers to secure the repayment of 

funds that may be borrowed by Eris ClearingCboe Clear Digital.

(f) Clearing Member must transfer the funds and Collateral to the Clearinghouse which will 

hold funds and Collateral on behalf of the Clearing Member. Eris ClearingCboe Clear 

Digital will credit to the Clearing Member the funds and Collateral that such Clearing 

Member deposits. Funds and Collateral shall be held by the Clearinghouse until a Clearing 

Member submits a withdrawal notification, unless otherwise stipulated by these Rules. Eris 

ClearingCboe Clear Digital will not be responsible for any diminution in value of funds or 

Collateral that a Clearing Member deposits with the Clearinghouse, except, in the case of 

cash, the diminution of value is as a direct result of investment activity of the 

Clearinghouse, such activity having been conducted in full compliance with CFTC 

Regulations and applicable State Regulations. Any fluctuation in markets is the risk of each 

Clearing Member. Any interest earned on Clearing Member funds or Collateral may be 

retained by the Clearinghouse.

(g) If a Clearing Member is in Default, Eris ClearingCboe Clear Digital may foreclose on and 

sell any of the Margin deposited by such Clearing Member without notice.

(h) Eris ClearingCboe Clear Digital shall be empowered to invest and reinvest all or part of 

the funds constituting Margin. Such investments shall be for the account and risk of Eris 

ClearingCboe Clear Digital, and any income and gains on such investments and interest on 

such deposits shall belong to Eris ClearingCboe Clear Digital and may be withdrawn from 

the account holding the Margin and deposited with the general funds of Eris ClearingCboe 

Clear Digital.

404. Offset and Settlement.

(a) Where, as the result of novation under Rule 402, a Clearing Member has bought and sold 

a Contract on or subject to the Rules of the Exchange with the same expiration, or otherwise 

deemed equivalent by the Clearinghouse, the purchase and sale will be offset by Eris 

ClearingCboe Clear Digital through the timely submission of instructions by the Clearing 

Member containing such information as Eris ClearingCboe Clear Digital may require in 

accordance with its procedures. A Clearing Member shall be required to pay the loss or 

entitled to collect the profit, as the case may be, upon such offsetting transactions, and shall 

have no further rights or be under any further obligation with respect thereto. For purposes 

of this Rule 404, the first Contracts made shall be deemed the first Contracts offset.

(b) Contracts made and designated by the Clearing Member as for the Clearing Member’s 

Customer Account shall not be offset under this Rule 405 against Contracts designated by 

the Clearing Member as for the Clearing Member’s own Member Property Account.

405. Approved Depository Institutions.

A bank, trust company or other depository that meets such financial and other requirements of Eris 

ClearingCboe Clear Digital may be designated by Eris ClearingCboe Clear Digital as an Approved 

Depository Institution.
March October 2020 

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406. Statement of Trades and Contracts.

Eris ClearingCboe Clear Digital shall in the manner and at the time that it determines from time to 

time make available to a Clearing Member an accounting of trades and Contracts for each Business 

Day on which such Clearing Member has trades to be cleared or Contracts open with Eris 

ClearingCboe Clear Digital. Any amounts the Clearing Member has posted to Eris ClearingCboe 

Clear Digital under Rule 403 shall be indicated on this statement.

407. Confirmation to Customers.

An FCM Clearing Member servicing Customer Accounts shall confirm to the Customer every 

transaction made for the Customer no later than the following Business Day. Such confirmation 

shall be in electronic or written form and shall show the Contract bought or sold, the quantity, the 

price, and delivery month.

408. Transfer Trades.

(a) Trades and positions may be transferred on the books of a Clearing Member or from one 

Clearing Member to another Clearing Member provided that:

(i) the transfer constitutes a change from one account to another account where the 

underlying beneficial ownership in such accounts remains the same;

(ii) an error has occurred in the clearing of a trade and a transfer to correct such error 

is undertaken and is completed within two Business Days after the trade date;

(iii) the transfer is in connection with, or as a result of, a merger, asset purchase, 

consolidation or similar non-recurring transaction between two or more entities 

where one or more entities become the successor in interest to one or more other 

entities; or

(iv) if, in the judgment of Eris ClearingCboe Clear Digital, the situation so requires and 

such transfer is in the best interest of Eris ClearingCboe Clear Digital.

(b) Unless otherwise permitted by Eris ClearingCboe Clear Digital, a transfer that is permitted 

pursuant to this Rule 408 (a “Transfer Trade”) shall be recorded and carried on the books 

of the receiving Clearing Member at the original trade dates and prices.

409. Settlement Prices

As used in the Rules, the term “Settlement Price” means the settlement price for a Contract for 

which positions remain open, as determined, intra-day and at the close of regular trading hours, by 

the Exchange in accordance with its rules, except in the case of manifest error or where Eris 

ClearingCboe Clear Digital believes that such settlement price does not reasonably reflect the 

value or price of the Contract, in which case Eris ClearingCboe Clear Digital, using its best efforts 

to consult with the Exchange, shall determine the official Settlement Price; provided, that Eris 

ClearingCboe Clear Digital shall in such circumstances promptly notify the Exchange and 

Clearing Members, and the reasons for that determination and the basis for the Settlement Price 

determined by Eris ClearingCboe Clear Digital shall be published in a notice to the Exchange and 

Clearing Members.
March October 2020 

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410. Delivery.

After trading ceases for a Contract that is physically settled, the Clearinghouse shall 

transfer the underlying to the Account of the Clearing Member that is required to 

accept delivery, from the Account of the Clearing Member obligated to make 

delivery, such full collateralization having been transferred to the Clearinghouse’s 

custody at the inception of the trade. Deliveries will occur on the Clearinghouse’s 

books and records unless otherwise specified in the Exchange contract 

specifications.

(a) If, due to any party’s error, omission or outtrade discovered on or after the last 

day of trading, a Clearing Member carries a position in a physically delivered 

contract that has expired, the Clearing Member may, with the consent of the 

account owners or the persons authorized to control trading in the relevant 

account(s), transfer such position to an account with different beneficial 

ownership; provided, however, that the parties to an error or outtrade must 

exercise the utmost diligence to resolve the error or outtrade. Notice of delivery 

obligation transfers must be made to the Clearinghouse the same day. Such 

transfers require that the Clearinghouse receive acceptance from an account(s) 

with different beneficial ownership and confirmation of the agreed upon transfer 

by the initiating party. Such confirmation must be submitted in writing on the 

form specified by the Clearing House. All positions transferred pursuant to this 

Rule shall take place at the original trade price of the contract; however this 

requirement does not prohibit cash adjustments between the parties to the transfer. 

In the event a delivery obligation transfer notification does not result in a trade 

transfer, delivery shall take place as required by the Exchange and the 

Clearinghouse Rules. This Rule does not relieve an FCM Clearing Member of its 

obligations regarding open positions in an expiring contract month as set forth in 

Rule 303(b)(ix).

411. Reporting.

Clearing Members shall make such reports in respect of trades, Contracts, settlements and 

deliveries as may be as prescribed by Eris ClearingCboe Clear Digital.

5. OBLIGATIONS OF ERIS CLEARINGCBOE CLEAR DIGITAL

501. Limitation of Liability.

(a) THE LIABILITY OF CBOE CLEAR DIGITAL ERIS CLEARING RELATING TO OR 

ARISING OUT OF CONTRACTS SHALL BE LIMITED TO LOSSES RESULTING 

FROM THE NOVATION OF THE CONTRACTS IN ACCORDANCE WITH THE 

RULES. SUBJECT TO THE FOREGOING, NEITHER THE CLEARINGHOUSE, NOR 

ANY AFFILIATE OF THE CLEARINGHOUSE, NOR ANY OF THEIR RESPECTIVE 

MANAGERS, OFFICERS, DIRECTORS, EMPLOYEES, EQUITY HOLDERS, 
March October 2020 

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AGENTS, CONSULTANTS OR SERVICE PROVIDERS (INCLUDING, WITHOUT 

LIMITATION, ANY REGULATORY SERVICES PROVIDER), NOR ANY MEMBER 

OF ANY COMMITTEE OR OTHER GOVERNING BODY OF ANY AFFILIATE OF 

THE CLEARINGHOUSE (EACH OF THE FOREGOING, AS APPLICABLE, THE 

“DISCLAIMING PARTY” AND, COLLECTIVELY, “DISCLAIMING PARTIES”) 

SHALL BE RESPONSIBLE FOR ANY ACTION TAKEN, OR ANY DELAY OR 

FAILURE TO TAKE ANY ACTION, HEREUNDER OR OTHERWISE TO FULFILL A 

DISCLAIMING PARTY’S OBLIGATIONS TO CLEARING MEMBERS, OTHER 

THAN FOR LOSSES CAUSED DIRECTLY BY A DISCLAIMING PARTY’S GROSS 

NEGLIGENCE OR WILLFUL MISCONDUCT AND SHALL NOT BE LIABLE FOR 

ANY OTHER OBLIGATIONS, INCLUDING BUT NOT LIMITED TO OBLIGATIONS 

OF A CLEARING MEMBER, OBLIGATIONS OF A CLEARING MEMBER TO A 

CUSTOMER OR OTHER NON-CLEARING MEMBER OR OBLIGATIONS OF A 

CLEARING MEMBER TO ANOTHER CLEARING MEMBER THAT IS ACTING FOR 

IT AS BROKER; NOR SHALL A DISCLAIMING PARTY BECOME LIABLE TO 

MAKE DELIVERIES TO OR ACCEPT DELIVERIES FROM CLEARING MEMBERS 

OR CUSTOMERS. UNDER NO CIRCUMSTANCES WILL A DISCLAIMING PARTY 

BE LIABLE FOR (1) THE ACTS, DELAYS, OMISSIONS, BANKRUPTCY, OR 

INSOLVENCY, OF ANY THIRD PARTY, INCLUDING, WITHOUT LIMITATION, 

ANY DEPOSITORY, CUSTODIAN, SUBCUSTODIAN, CLEARING OR 

SETTLEMENT SYSTEM UNLESS THE DISCLAIMING PARTY WAS GROSSLY 

NEGLIGENT OR ENGAGED IN WILLFUL MISCONDUCT OR (2) THE 

PERFORMANCE OR OPERATION (OR NON-PERFORMANCE OR NONOPERATION) OF ANY DIGITAL ASSET OR RELATED DISTRIBUTED LEDGER 

(“ANCILLARY DL”) ATTRIBUTABLE DIRECTLY OR INDIRECTLY TO THE 

DESIGN OF THE DIGITAL ASSET OR ANCILLARY DL. UNDER NO 

CIRCUMSTANCES WILL A DISCLAIMING PARTY BE LIABLE FOR ANY 

INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE OR 

EXEMPLARY LOSS OR DAMAGE (INCLUDING, BUT NOT LIMITED TO, LOSS OF 

BUSINESS, LOSS OF PROFITS, TRADING LOSSES, LOSS OF OPPORTUNITY AND 

LOSS OF USE) HOWSOEVER SUFFERED OR INCURRED, REGARDLESS OF 

WHETHER THE DISCLAIMING PARTY HAS BEEN ADVISED OF THE 

POSSIBILITY OF SUCH DAMAGES OR WHETHER SUCH DAMAGES 

OTHERWISE COULD HAVE BEEN FORESEEN OR PREVENTED. THE 

FOREGOING LIMITATIONS OF LIABILITY SHALL APPLY REGARDLESS OF 

WHETHER A CLAIM IS BASED ON BREACH OF CONTRACT, TORT, INCLUDING,

WITHOUT LIMITATION, NEGLIGENCE (OTHER THAN GROSS NEGLIGENCE), 

STRICT LIABILITY, NEGLIGENT MISREPRESENTATION, RESTITUTION, 

BREACH OF STATUTORY DUTY, BREACH OF WARRANTY OR OTHERWISE, 

AND WHETHER THE CLAIM IS BROUGHT DIRECTLY OR AS A THIRD-PARTY 

CLAIM.

(b) THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS 

PROVIDED BY THE CLEARINGHOUSE OR ANY OTHER DISCLAIMING PARTY 

RELATING TO ANY SYSTEMS OR SERVICES OF THE CLEARINGHOUSE OR 

SERVICES, EQUIPMENT OR FACILITIES USED TO SUPPORT SUCH SYSTEMS 

OR SERVICES, AND THE CLEARINGHOUSE HEREBY SPECIFICALLY 
March October 2020 

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DISCLAIMS, OVERRIDES AND EXCLUDES, TO THE FULLEST EXTENT 

PERMITTED BY LAW, ALL IMPLIED WARRANTIES OF MERCHANTABILITY, 

SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE AND ALL 

OTHER WARRANTIES, CONDITIONS, OTHER CONTRACTUAL TERMS, 

REPRESENTATIONS, INDEMNITIES AND GUARANTEES WITH RESPECT TO 

THE SERVICES, WHETHER EXPRESS, IMPLIED OR STATUTORY, ARISING BY 

LAW, CUSTOM, PRIOR ORAL OR WRITTEN STATEMENTS BY THE 

CLEARINGHOUSE OR ANY OTHER DISCLAIMING PARTY OR OTHERWISE

(INCLUDING BUT NOT LIMITED TO, AS TO TITLE, SATISFACTORY QUALITY, 

ACCURACY, COMPLETENESS, UNINTERRUPTED USE, NON-INFRINGEMENT, 

TIMELINESS, TRUTHFULNESS, SEQUENCE AND ANY IMPLIED WARRANTIES, 

CONDITIONS AND OTHER CONTRACTUAL TERMS ARISING FROM 

TRANSACTION USAGE, COURSE OF DEALING OR COURSE OF 

PERFORMANCE) RELATING TO ANY SYSTEMS OR SERVICES OF THE 

CLEARINGHOUSE OR SERVICES, EQUIPMENT OR FACILITIES USED TO 

SUPPORT SUCH SYSTEMS OR SERVICES.

(c) CBOE CLEAR DIGITALERIS CLEARING MAY ACCEPT AND RELY UPON ANY 

INFORMATION OR INSTRUCTION GIVEN TO CBOE CLEAR DIGITAL ERIS 

CLEARING BY A CLEARING MEMBER OR ITS OFFICERS OR AUTHORIZED 

REPRESENTATIVES, WHICH REASONABLY IS UNDERSTOOD BY CBOE CLEAR 

DIGITALERIS CLEARING TO HAVE BEEN DELIVERED TO CBOE CLEAR 

DIGITAL ERIS CLEARING BY THE CLEARING MEMBER AND SUCH CLEARING 

MEMBER SHALL INDEMNIFY THE DISCLAIMING PARTIES AND CLEARING 

MEMBERS AGAINST ANY LOSS, LIABILITY OR EXPENSE AS A RESULT OF 

ANY ACT DONE IN RELIANCE UPON THE AUTHENTICITY OF ANY 

INFORMATION OR INSTRUCTION RECEIVED BY CBOE CLEAR DIGITALERIS 

CLEARING, THE INACCURACY OF THE INFORMATION CONTAINED THEREIN 

OR EFFECTING TRANSACTIONS IN RELIANCE UPON SUCH INFORMATION OR 

INSTRUCTION.

(d) A CLEARING MEMBER SHALL REIMBURSE CBOE CLEAR DIGITAL ERIS 

CLEARING FOR ALL FEES, EXPENSES, CHARGES AND COSTS ASSESSED BY A 

DEPOSITORY AGAINST CBOE CLEAR DIGITAL ERIS CLEARING WITH 

RESPECT TO MARGIN MAINTAINED IN SUCH CLEARING MEMBER’S 

ACCOUNT, AND CBOE CLEAR DIGITAL ERIS CLEARING SHALL NOT HAVE 

ANY OBLIGATION OR RESPONSIBILITY TO PRESERVE, PROTECT, COLLECT 

OR REALIZE UPON, AND EXCEPT AS PROVIDED IN RULE 403(D), CBOE CLEAR 

DIGITAL ERIS CLEARING SHALL NOT BE LIABLE FOR, ANY LOSS OR 

DIMINUTION IN VALUE OR DEPRECIATION IN MARGIN DEPOSITED BY 

CLEARING MEMBERS. CLEARING MEMBERS THAT DEPOSIT MARGIN WITH 

AN APPROVED DEPOSITORY INSTITUTION PURSUANT TO THE RULES SHALL 

HOLD CBOE CLEAR DIGITAL ERIS CLEARING HARMLESS FROM ALL 

LIABILITY, LOSSES AND DAMAGES WHICH MAY RESULT FROM OR ARISE 

WITH RESPECT TO THE CARE AND SALE OF SUCH MARGIN.
March October 2020 

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(e) ANY OBLIGATION OF CBOE CLEAR DIGITAL ERIS CLEARING TO A CLEARING 

MEMBER ARISING FROM A CONTRACT OR FROM ANY PROVISION OF THE 

RULES SHALL BE SUBJECT TO ALL THE TERMS OF THE RULES, INCLUDING 

THE SETOFF AND OTHER RIGHTS SET FORTH HEREIN.

(f) EXCEPT IN ANY CASE WHERE A DISCLAIMING PARTY HAS BEEN FINALLY 

ADJUDICATED TO HAVE ENGAGED IN FRAUD OR WILLFUL OR WANTON 

MISCONDUCT, IN NO EVENT SHALL THE DISCLAIMING PARTIES’ TOTAL 

COMBINED AGGREGATE LIABILITY FOR ALL CLAIMS, OTHER THAN THOSE 

ARISING UNDER RULE 501(F), EXCEED $100,000 FOR ALL LOSSES SUFFERED 

FROM ALL CAUSES ON A SINGLE CALENDAR DAY; $200,000 FOR ALL LOSSES 

SUFFERED FROM ALL CAUSES IN A SINGLE CALENDAR MONTH; AND 

$1,000,000 FOR ALL LOSSES SUFFERED FROM ALL CAUSES IN A SINGLE 

CALENDAR YEAR. IF THE NUMBER OF ALLOWED CLAIMS ARISING OUT OF

ANY FAILURES OR MALFUNCTIONS ON A SINGLE DAY, SINGLE MONTH OR 

SINGLE YEAR CANNOT BE FULLY SATISFIED BECAUSE OF THE ABOVE 

DOLLAR LIMITATIONS, ALL SUCH CLAIMS SHALL BE LIMITED TO A PRO 

RATA SHARE OF THE MAXIMUM AMOUNT FOR THE RESPECTIVE PERIOD.

(g) THE RIGHTS OF CBOE CLEAR DIGITAL ERIS CLEARING SET FORTH HEREIN 

SHALL BE IN ADDITION TO OTHER RIGHTS THAT CBOE CLEAR DIGITAL ERIS 

CLEARING MAY HAVE UNDER APPLICABLE LAW AND GOVERNMENTAL 

REGULATIONS, OTHER PROVISIONS OF THE RULES, ADDITIONAL 

AGREEMENTS WITH THE CLEARING MEMBER OR ANY OTHER SOURCE.

502. Clearing Member Default.

(a) If a Clearing Member is in Default, Margin held with respect to such Clearing Member’s 

Member Property Accounts, and any other of such Clearing Member’s assets held by, 

pledged to or otherwise available to Eris ClearingCboe Clear Digital, may be applied by 

Eris ClearingCboe Clear Digital to discharge the Obligations of such Clearing Member to 

Eris ClearingCboe Clear Digital (including any costs and expenses associated with the 

liquidation, transfer or management of Contracts held in or for the Member Property 

Accounts of such Clearing Member, and any fees, assessments or fines imposed by Eris 

ClearingCboe Clear Digital on such Clearing Member), and Eris ClearingCboe Clear 

Digital may cause all Contracts of such Clearing Member (whether or not carried in a 

Customer Account) to be closed or offset, transferred to any other Clearing Member, or 

otherwise resolved as provided in these Rules.

(b) If the Margin held with respect to such Clearing Member’s Member Property Accounts, 

and other of such Clearing Member’s assets held by, pledged to or otherwise available to 

Eris ClearingCboe Clear Digital, including any guarantee issued pursuant to these Rules, 

are insufficient to satisfy the defaulting Clearing Member’s Obligations to Eris 

ClearingCboe Clear Digital after giving effect to the application of such amounts pursuant 

to paragraph (a), such defaulting Clearing Member shall continue to be liable therefor.
March October 2020 

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(c) In closing, offsetting, transferring or otherwise resolving the Contracts of a Clearing 

Member as provided herein and in Rule 601, Eris ClearingCboe Clear Digital shall have 

the right:

(i) With respect to Contracts in a Customer Account of such FCM Clearing Member, 

to set off (x) any proceeds received by Eris ClearingCboe Clear Digital from the 

disposition of such Contracts and any property or proceeds thereof deposited with 

or held by Eris ClearingCboe Clear Digital as Margin for such account against (y) 

any amounts paid by Eris ClearingCboe Clear Digital in the disposition of such 

Contracts, including any commissions or other losses or expenses incurred in 

connection therewith or in connection with the liquidation of Margin deposits in 

such Customer Account and any other amounts owed to Eris ClearingCboe Clear 

Digital as a result of transactions in the Customer Account or otherwise lawfully 

chargeable against such Customer Account;

(ii) With respect to the Contracts in any Member Property Accounts of such Clearing 

Member, to set off (x) any proceeds received by Eris ClearingCboe Clear Digital

from the disposition of such Contracts, any property or proceeds thereof deposited 

with or held by Eris ClearingCboe Clear Digital as Margin for such Member 

Property Accounts and any other property of the Clearing Member within the 

possession or control of Eris ClearingCboe Clear Digital other than property that 

has been identified by such Clearing Member as required to be segregated pursuant 

to the CEA and CFTC Regulations, against (y) any amounts paid by Eris 

ClearingCboe Clear Digital in the disposition of such Contracts, including any

commissions or other losses or expenses incurred in connection therewith or in 

connection with the liquidation of Margin deposits in such Member Property 

Accounts, and any other Obligations of the Clearing Member to Eris ClearingCboe 

Clear Digital, including Obligations of the Clearing Member to Eris ClearingCboe 

Clear Digital remaining after the setoffs referred to in paragraph (i) above, and any 

Obligations arising from any other Member Property Accounts maintained by the 

Clearing Member with Eris ClearingCboe Clear Digital; and

(iii) To defer closing or otherwise settling such trades and Contracts if, in its discretion, 

it determines that the closing out of some or all of the suspended Clearing 

Member’s trades or Contracts would not be in the best interests of Eris 

ClearingCboe Clear Digital or other Clearing Members, taking into account the size 

and nature of the positions in question, market conditions prevailing at the time, the 

potential market effects of such liquidating transactions as might be directed by Eris 

ClearingCboe Clear Digital, and such other circumstances as it deems relevant; or

(iv) take any action the Clearinghouse deems proper or in the best interest of the 

Clearinghouse or its Clearing Members.

(d) For purposes of this Rule, each Default by a Clearing Member will be considered a separate 

Default.
March October 2020 

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(e) A Clearing Member shall take no action, including but not limited to attempting to obtain 

a court order, that would interfere with the ability of Eris ClearingCboe Clear Digital to 

exercise its rights under the Rules and its agreements with such Clearing Member.

503. Investment of Customer Funds

Funds and assets belonging to Customers that are invested by Eris ClearingCboe Clear Digital

shall be held in instruments that comply with CFTC Regulations 1.25 and 39.15(e), and in 

accordance with any applicable State Regulations. Non-Customer funds and assets belonging to 

Clearing Members that are invested by Eris ClearingCboe Clear Digital shall be held in 

instruments that comply with CFTC Regulation 39.15(e).

6. SUSPENSION; DISCIPLINARY PROCEEDINGS

601. Suspension.

(a) General. The Board, Risk Management Committee, or any Exchange Committee may 

summarily suspend any Clearing Member (i) if the Clearing Member is in Default, (ii) 

upon the discovery of a materially false or misleading representation or warranty made by 

the Clearing Member to Eris ClearingCboe Clear Digital under or in connection with any 

agreement between Eris ClearingCboe Clear Digital and the Clearing Member, (iii) if a 

breach by the Clearing Member of the Rules or any of the terms or provisions of any 

agreement between Eris ClearingCboe Clear Digital and the Clearing Member is not 

remedied promptly after notice from Eris ClearingCboe Clear Digital, (iv) in the event of 

a material violation of the Rules of the Exchange or of the Clearinghouse, or (v) if the 

Board or the Risk Management Committee determines that suspension is necessary for the 

protection of Eris ClearingCboe Clear Digital, other Clearing Members, or the general 

public (whether or not such Clearing Member continues to meet the required minimum 

financial requirements pursuant to the Rules).

(b) Notice of Suspension to Clearing Members. Upon the suspension of a Clearing Member, 

Eris ClearingCboe Clear Digital shall as soon as possible notify all Clearing Members of 

the suspension. Such notice shall state to the extent practicable in general terms how 

pending transactions, open positions and other pending matters will be affected and what 

steps are to be taken in connection therewith.

(c) Pending Transactions. Notwithstanding any other provision of the Rules, Eris 

ClearingCboe Clear Digital shall have no obligation to accept any transaction of a 

suspended Clearing Member that was effected after the time at which the Clearing Member

was suspended. In the event a transaction of a suspended Clearing Member is rejected by 

Eris ClearingCboe Clear Digital, Eris ClearingCboe Clear Digital shall provide notice of 

such rejection to the other party thereto and such transaction shall be closed by the other 

party thereto in accordance with the rules of the Exchange.

(d) Open Positions. Eris ClearingCboe Clear Digital shall have the right to cause open 

positions in Contracts in any of the accounts of a suspended Clearing Member:

(i) To be closed in such manner as deemed practicable by Eris ClearingCboe Clear 

Digital, in its sole discretion;
March October 2020 

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(ii) To be transferred to the account of one or more other Clearing Members;

(iii) To be offset against each other and, to the extent of any remaining imbalance, 

against the Contracts of other Clearing Members; or

(iv) To be settled at the Settlement Price for such Contracts, or at such other price or 

prices as Eris ClearingCboe Clear Digital may deem fair and reasonable under the 

circumstances, in which event Eris ClearingCboe Clear Digital may cause 

Contracts in the accounts of other Clearing Members to be settled at such price or 

prices; or

(v) Take any other action with respect to open positions it deems in the best interest of 

the Clearinghouse or Clearing Members.

(vi) In connection with any action undertaken by Eris ClearingCboe Clear Digital

pursuant to subparagraphs (i) through (v) above, Eris ClearingCboe Clear Digital

shall have the right to apply the Margin of the applicable Clearing Member and any 

other assets of such Clearing Member held by, pledged to or otherwise available to 

Eris ClearingCboe Clear Digital, including any guarantee issued pursuant to these 

Rules, to discharge the Obligations of such Clearing Member to Eris ClearingCboe 

Clear Digital (including any costs and expenses associated with the liquidation, 

transfer or management of Contracts held in or for the accounts of such Clearing 

Member, and any fees, assessments or fines imposed by Eris ClearingCboe Clear 

Digital on such Clearing Member).

(e) Eris ClearingCboe Clear Digital may delegate to specified Officers or agents of Eris 

ClearingCboe Clear Digital the authority to determine, within such guidelines, if any, as 

Eris ClearingCboe Clear Digital shall prescribe, the nature and timing of transactions of 

the type described in subparagraph (d). If Eris ClearingCboe Clear Digital shall determine, 

taking into account the size and nature of a suspended Clearing Member’s positions, market 

conditions prevailing at the time, the potential market effects of liquidating transactions 

that might be directed by Eris ClearingCboe Clear Digital, and such other circumstances 

as Eris ClearingCboe Clear Digital deems relevant, that the closing out of some or all of 

the suspended Clearing Member’s positions would not be in the best interests of Eris 

ClearingCboe Clear Digital, other Clearing Members, or the general public, such positions 

need not be closed out.

(f) Protective Action. If Eris ClearingCboe Clear Digital (i) is unable, for any reason, to close 

out in a prompt and orderly manner any positions or to convert to cash any Margin deposits 

of a suspended Clearing Member, or (ii) elects pursuant to paragraph (d) of this Rule not 

to close out any such positions, Eris ClearingCboe Clear Digital may authorize the 

execution of hedging transactions from time to time for the account of Eris ClearingCboe 

Clear Digital, solely for the purpose of reducing the risk to Eris ClearingCboe Clear Digital

resulting from the continued maintenance of such positions or the continued holding of 

such Margin deposits. Eris ClearingCboe Clear Digital may delegate to specified Officers 

or agents of Eris ClearingCboe Clear Digital the authority to determine, within such 

guidelines, if any, as Eris ClearingCboe Clear Digital shall prescribe, the nature and timing 

of such hedging transactions.
March October 2020 

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(g) Reimbursement of Costs and Expenses. Any costs or expenses, including losses, sustained 

by Eris ClearingCboe Clear Digital in connection with transactions effected for its account 

pursuant to this Rule shall be charged to the suspended Clearing Member, and any gains 

realized on such transactions shall be credited to such Clearing Member; provided, 

however, that costs, expenses, and gains allocable to the hedging of positions in a Customer 

Account shall be charged or credited, as the case may be, to the Customer Account, and 

only the excess, if any, of such costs and expenses over the funds available in that account 

shall be charged to the Clearing Member. Reasonable allocations of costs, expenses, and 

gains among accounts made by Eris ClearingCboe Clear Digital for the purpose of 

implementing the proviso to the preceding sentence shall be binding on the Clearing 

Member and any persons claiming through the Clearing Member and their respective 

successors and assigns.

602. Right of Appeal.

(a) A Clearing Member suspended pursuant to Rule 601 shall be entitled, upon request within 

five Business Days after the date of its suspension, to a written statement of the grounds 

for its suspension and shall have the right to appeal its suspension in accordance with the 

following procedure:

(i) A suspended Clearing Member may appeal its suspension by filing a written notice 

of appeal within five Business Days after the date of its receipt of a written 

statement of the grounds for its suspension.

(ii) Appeals shall be considered and decided by the Appeal Panel. Appeals shall be 

heard as promptly as possible, and in no event more than five Business Days after 

the filing of the notice of appeal. The appellant shall be notified of the time, place 

and date of the hearing not less than three Business Days in advance of such date. 

At the hearing, the appellant shall be afforded an opportunity to be heard and to 

present evidence in its own behalf, and may, if it so desires, be represented by 

counsel. As promptly as possible after the hearing, the Appeal Panel shall, by the 

vote of a majority of its members, affirm or reverse the suspension or modify the 

terms thereof. The appellant shall be notified in writing of the Appeal Panel’s 

decision; and if the decision shall have been to affirm or modify the suspension, the 

appellant shall be given a written statement of the grounds therefor.

(iii) Any decision by the Appeal Panel to affirm or modify a suspension shall be 

reviewable by the Board on its own motion or on written demand by the appellant 

filed with Eris ClearingCboe Clear Digital within three Business Days after receipt 

of notice of the Appeal Panel’s decision. The Board may afford the appellant a 

further opportunity to be heard or to present evidence. The appellant shall be 

notified in writing of the decision of the Board; and if the decision shall have been 

to affirm or modify the suspension, the appellant shall be given a written statement 

of the grounds therefor.

(iv) The filing of an appeal pursuant to this Rule shall not impair the validity or stay the 

effect of the suspension appealed from. The reversal or modification of a 

suspension shall not invalidate any acts of Eris ClearingCboe Clear Digital taken 
March October 2020 

39

pursuant to such suspension prior to such reversal or modification, and the rights 

of any person which may arise out of any such acts shall not be affected by such 

reversal or modification.

(v) A record shall be kept of any hearing held pursuant hereto. The cost of the transcript 

may, in the discretion of the body holding the hearing, be charged in whole or in 

part to the suspended Clearing Member in the event that the suspension is finally 

affirmed.

603. Sanctions from Disciplinary Proceedings.

(a) Eris ClearingCboe Clear Digital may censure, suspend, expel or limit the activities, 

functions or operations of, and/or impose a fine on (each a “sanction”), a Clearing Member 

for (i) a violation of the Rules or its agreements with Eris ClearingCboe Clear Digital or 

the Exchange, (ii) any neglect or refusal by such Clearing Member to comply with any 

applicable order or direction of Eris ClearingCboe Clear Digital or the Exchange, (iii) any 

error, delay or other conduct that materially and adversely affects the operations of Eris 

ClearingCboe Clear Digital or Eris ExchangeCboe Digital Exchange, (iv) a violation of the 

rules of the Exchange, or (v) a failure to provide adequate personnel or facilities, where 

applicable, for its transactions with Eris ClearingCboe Clear Digital.

(b) Eris ClearingCboe Clear Digital shall provide prompt notice to the CFTC of any action 

taken in accordance with this Rule 603.

604. Procedures for Disciplinary Proceedings.

(a) Before any sanction is imposed pursuant to Rule 603, Eris ClearingCboe Clear Digital shall 

furnish the person against whom the sanction is sought to be imposed (“Respondent”) with 

a concise written statement of the charges against the Respondent. The Respondent shall 

have ten Business Days after the service of such statement to file with Eris ClearingCboe 

Clear Digital a written answer thereto. The answer shall admit or deny each allegation 

contained in the statement of charges and may also contain any defense which the 

Respondent wishes to submit. Allegations contained in the statement of charges which are 

not denied in the answer shall be deemed to have been admitted, and any defense not raised 

in the answer shall be deemed to have been waived. If an answer is not filed within the 

time prescribed above or any extension thereof granted pursuant to paragraph (d) of this 

Rule, the allegations contained in the statement of charges shall be deemed to have been 

admitted, and the sanction specified in the final request shall be imposed without further 

proceedings and the Respondent shall be notified thereof in writing. If an answer is timely 

filed, Eris ClearingCboe Clear Digital shall (unless the Respondent and Eris ClearingCboe 

Clear Digital shall have stipulated to the imposition of an agreed sanction) schedule a 

hearing before the Disciplinary Panel. The Respondent shall be given not less than three 

Business Days advance notice of the place and time of such hearing. At the hearing, the 

Respondent shall be afforded the opportunity to be heard and to present evidence in its 

behalf and may be represented by counsel. A record of the hearing shall be prepared and 

the cost of the transcript may, in the discretion of the Disciplinary Panel, be charged in 

whole or in part to the Respondent in the event any sanction is imposed on the Respondent. 

As soon as practicable after the conclusion of the hearing, the Disciplinary Panel shall 
March October 2020 

40

furnish the Respondent and the Board with a written statement of its decision. If the 

decision shall have been to impose a disciplinary sanction, the written statement shall set 

forth (i) any act or practice in which the Respondent has been found to have engaged, or 

which the Respondent has been found to have omitted; (ii) the specific provisions of the 

Rules which any such act, practice or omission has been deemed to violate; and (iii) the 

sanction imposed and the reasons therefor.

(b) In the event that (i) the Disciplinary Panel censures, fines, suspends, expels or limits the 

activities, functions or operations of a Respondent, or (ii) determines not to impose any 

disciplinary measures on a Respondent, the Respondent, in the case of (i) above, or the 

President, in the case of (ii) above, may apply for review to the Board, by written motion 

filed with Eris ClearingCboe Clear Digital within five Business Days after issuance of the 

Disciplinary Panel’s written statement of its decision.

(c) The granting of any such motion shall be within the discretion of the Board. In addition, 

the Board may determine to review any such action by the Disciplinary Panel on its own 

motion. Review by the Board shall be on the basis of the written record of the proceedings 

in which the sanction was imposed, but the Board may, in its discretion, afford the 

Respondent a further opportunity to be heard or to present evidence. A record shall be kept 

of any such further proceedings. Based upon such review, the Board may affirm, reverse 

or modify, in whole or in part, the decision of the Disciplinary Panel. The Respondent shall 

be notified in writing of the decision of the Board and if the decision shall have been to 

affirm or modify the imposition of any disciplinary sanction, the Respondent shall be given 

a written statement setting forth (i) any act or practice in which the Respondent has been 

found to have engaged, or which the Respondent has been found to have omitted; (ii) the 

Rules which any such act, practice or omission has been deemed to violate; and (iii) the 

sanction imposed and the reasons therefor.

(d) Any time limit set forth in this Rule may be extended by the body having jurisdiction over 

the matter in respect of which the time limit is imposed.

(e) Any action taken by the Disciplinary Panel hereunder shall be deemed to be final upon (i) 

expiration of the time provided for the filing of a motion for review, or any extension 

thereof granted pursuant to paragraph (d) hereof; or (ii) if a motion for review is timely 

filed, when the Respondent is notified of the denial of the motion or the decision of the 

Board on review, as the case may be; or (iii) if the Board shall determine on its own motion 

to review the action by the Disciplinary Panel, when the Respondent is notified of the 

decision of the Board on review.

(f) The summary suspension of a Clearing Member pursuant to Rule 601 shall not be deemed 

to be a “sanction” within the meaning of this Rule, and the provisions of this Rule shall be 

inapplicable to any such summary suspension.

605. Discipline by Other Self-Regulatory Organizations.

(a) At the discretion of the Clearinghouse, any suspected violation of these Rules may be 

referred to the enforcement staff of the Exchange.
March October 2020 

41

(b) Any inquiry, investigation or disciplinary action resulting from a suspected violation of 

these Rules may be handled by Clearinghouse personnel, Exchange personnel, or personnel 

that serve in roles at both the Clearinghouse and the Exchange.

(c) Nothing in this Chapter 6 shall affect the right of any Self-Regulatory Organization to 

discipline its members pursuant to the provisions of its rules for a violation of the Rules of 

Eris ClearingCboe Clear Digital.

606. Restriction on or Termination of Clearing Privileges.

(a) If (x) a Removal Event occurs with respect to a Clearing Member, or (y) Eris ClearingCboe 

Clear Digital determines that the financial or operational condition of a Clearing Member 

or one of its affiliates is such that to allow the Clearing Member to continue its operation 

as a Clearing Member could adversely affect Eris ClearingCboe Clear Digital or cleared 

markets (whether or not such Clearing Member continues to meet the required minimum 

financial requirements, if applicable), Eris ClearingCboe Clear Digital may:

(i) Allow such Clearing Member (in the case of an FCM Clearing Member handling 

Customer Accounts) to submit Contracts for clearing solely for its Member 

Property Account;

(ii) Limit or restrict the type of Contracts that may be cleared by such Clearing Member 

in any of its Accounts with Eris ClearingCboe Clear Digital;

(iii) Limit or restrict the number of Contracts that are permitted to be maintained by 

such Clearing Member in any of its Accounts with Eris ClearingCboe Clear Digital;

(iv) Decline to accept new trades or positions in Contracts for the Accounts of the 

Clearing Member;

(v) Increase such Clearing Member’s Margin requirements and/or require such 

Clearing Member to deposit the same in cash or Eligible Securities in proportions 

different than those that are applicable to Clearing Members generally;

(vi) Allow such Clearing Member to submit Contracts for liquidation only;

(vii) Prohibit such Clearing Member from withdrawing excess Original Margin;

(viii) Cause open Contracts in the Member Property Account or Customer Account of 

the Clearing Member to be transferred to another Clearing Member;

(ix) Cause open Contracts to be settled in cash or liquidated;

(x) Impose such additional capital, Margin, financial reporting or other requirements 

as Eris ClearingCboe Clear Digital shall deem appropriate for the protection of Eris 

ClearingCboe Clear Digital and its Clearing Members; 

(xi) Terminate the Clearing Member’s membership in Eris ClearingCboe Clear Digital; 

or
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(xii) Take any other actions it deems proper or in the best interest of the Clearinghouse 

or its Clearing Members.

(b) Eris ClearingCboe Clear Digital has no obligation to clear trades made on the Exchange or 

any other trading facility where such Clearing Member does not have trading privileges or 

is not approved for the clearing privileges by the relevant facility.

(c) A Person once qualified as a Clearing Member may voluntarily withdraw from Clearing 

Member status and terminate its clearing privileges upon the approval of Eris ClearingCboe 

Clear Digital, which approval shall be granted not later than 30 days following (i) the 

liquidation or, with the approval of Eris ClearingCboe Clear Digital, transfer to another 

Clearing Member of all open positions in the Clearing Member’s Accounts at Eris 

ClearingCboe Clear Digital, and (ii) the satisfaction of all Obligations of the withdrawing 

Clearing Member; provided, however that such Person shall remain subject to, and 

responsible for any violation of, the Rules, interpretations and policies of Eris 

ClearingCboe Clear Digital committed by such Person while a Clearing Member, 

notwithstanding any termination of clearing privileges and Clearing Member status.

(d) When a Clearing Member voluntarily withdraws from membership or its membership is 

terminated, all Obligations of the Clearing Member to Eris ClearingCboe Clear Digital, of 

whatever nature or kind, shall be accelerated and become due and payable upon the 

effective date of such withdrawal or termination. The Clearing Member’s funds, Collateral 

and other deposits will not be released until Eris ClearingCboe Clear Digital determines 

that all such Clearing Member’s Obligations have been settled and all sums owing to Eris 

ClearingCboe Clear Digital have been paid.

(e) Any disputes which arise while a Clearing Member which relate to or arise out of any 

transaction with Eris ClearingCboe Clear Digital or status of a Clearing Member in Eris 

ClearingCboe Clear Digital shall be resolved in accordance with the Rules.

607. Just and Equitable Principles of Trade; Acts Detrimental to the Clearinghouse.

(a) Eris ClearingCboe Clear Digital shall have the authority to take any actions it deems in the 

best interest of the Clearinghouse or the Clearing Members.

(b) Eris ClearingCboe Clear Digital shall have the power to suspend or revoke clearing 

privileges or authorize the assessment of fines or charges against Clearing Members for 

engaging in conduct inconsistent with just and equitable principles of trade.

(c) Eris ClearingCboe Clear Digital shall have the power to suspend or revoke clearing 

privileges or authorize the assessment of fines or charges against Clearing Members for 

engaging in acts detrimental to the interest or welfare of Eris ClearingCboe Clear Digital.

7. MISCELLANEOUS

701. Force Majeure.

Notwithstanding any other provision of these Rules, Eris ClearingCboe Clear Digital shall not be 

obligated to perform its obligations under these Rules or any agreement with a Clearing Member
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relating to Contracts, or to compensate any Person for losses occasioned by any delay or failure of 

performance, to the extent such delay or failure is the result of acts of God, lightning, earthquake, 

fire, epidemic, landslide, drought, storm, explosion, flood, nuclear radiation, act of a public enemy, 

terrorist activity, act of state or blockade, insurrection, riot or civil disturbance, strike or labor 

disturbance, power or communications failure, performance or operation (or non-performance or 

non-operation) of any digital asset or Ancillary DL in a manner adverse to the Clearinghouse or 

more than one Clearing Member attributable directly or indirectly to the design of the digital asset 

or Ancillary DL (as determined by Eris ClearingCboe Clear Digital) or any other cause beyond 

Eris ClearingCboe Clear Digital’s reasonable control (whether or not similar to any of the 

foregoing). If Eris ClearingCboe Clear Digital shall, as a result of any of the above-described 

events, fail to perform any of its obligations, such failure shall be excused for a period equal to the 

period of delay caused by such event. In such an event, Eris ClearingCboe Clear Digital shall give 

written notice thereof to the Exchange or such Clearing Member, as the case may be, as soon as it 

is reasonably practicable and attempt diligently to remove such condition. Eris ClearingCboe Clear 

Digital complies with CFTC rules requiring systems and procedures be in place to meet a recovery 

time objective of no later than the next business day following a disruption.

702. Suspension of Rules.

The time frames fixed by these Rules, interpretations or policies of Eris ClearingCboe Clear Digital

for the doing of any act or acts may be extended, or the doing of any act or acts required by these 

Rules or any interpretations or policies of Eris ClearingCboe Clear Digital may be waived, and 

any provision of these Rules or any interpretations or policies of Eris ClearingCboe Clear Digital

may be suspended by Eris ClearingCboe Clear Digital whenever, in the judgment of the Board or 

the Officers, such extension, waiver or suspension is necessary or in the best interest of Eris 

ClearingCboe Clear Digital. Any such extension or waiver may continue in effect after the event 

or events giving rise thereto but shall not continue in effect for more than thirty calendar days after 

the date thereof unless it shall be approved by the Board within such period of 30 calendar days. 

A written report of any such extension or waiver, stating the pertinent facts and the reason such 

extension or waiver was deemed necessary or in the best interest of Eris ClearingCboe Clear 

Digital shall be presented to the Board at its next regular meeting.

703. Confidentiality.

(a) All information received by Eris ClearingCboe Clear Digital concerning positions carried 

by Eris ClearingCboe Clear Digital or any other clearing organization for a Clearing 

Member or deliveries made by or to a Clearing Member, and any other information 

provided by a Clearing Member to Eris ClearingCboe Clear Digital, including, without 

limitation, financial statements filed with Eris ClearingCboe Clear Digital by a Clearing 

Member, shall be held in confidence by Eris ClearingCboe Clear Digital and shall not be 

made known to any other Person except as follows:

(i) With the consent of the Clearing Member;

(ii) To a Government Agency or the regulatory authority of any foreign jurisdiction, if 

Eris ClearingCboe Clear Digital is requested or legally required to do so by such 

Government Agency;
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(iii) Pursuant to legal process;

(iv) To an exchange (including, without limitation, any contract market, swap execution 

facility or other trading facility) of which such Clearing Member is a member, 

provided that information relating to positions, margin payments and deliveries that 

is furnished to an exchange shall relate solely to contracts traded on that exchange;

(v) To a Self-Regulatory Organization of which such Clearing Member is a member;

(vi) To any Person providing services to Eris ClearingCboe Clear Digital, subject to 

appropriate confidentiality requirements;

(vii) To the Board, any Committee, Eris ClearingCboe Clear Digital or the Exchange’s 

Officers, employees, attorneys and auditors, and to agents and independent 

contractors that have been engaged by Eris ClearingCboe Clear Digital or the 

Exchange who require such information in connection with the discharge of their 

duties to Eris ClearingCboe Clear Digital; and

(viii) As otherwise permitted under the Rules.

704. Information-Sharing Agreements

(a) Eris ClearingCboe Clear Digital may enter into information-sharing agreements or other 

arrangements or procedures to coordinate surveillance with the Exchange and with other 

markets or clearing organizations on which Contracts or financial instruments related to 

Contracts trade or are cleared. As part of any information sharing agreements or other 

arrangements or procedures adopted pursuant to this Rule, Eris ClearingCboe Clear Digital

may, among other things:

(i) provide market surveillance reports to other markets and clearing organizations;

(ii) share information and documents concerning current and former Clearing Members 

with other markets and clearing organizations;

(iii) share information and documents concerning ongoing and completed investigations 

with other markets and clearing organizations; and/or

(iv) require its Clearing Members to provide information and documents to Eris 

ClearingCboe Clear Digital at the request of other markets or clearing organizations 

with which Eris ClearingCboe Clear Digital has an information-sharing agreement 

or other arrangements or procedures.

(b) Eris ClearingCboe Clear Digital may enter into an information-sharing arrangement with 

any Person or body (including, without limitation, any Government Authority or any SelfRegulatory Organization) if Eris ClearingCboe Clear Digital (i) believes that such Person 

or body exercises a legal or regulatory function under any law or regulation, or a function 

comprising or associated with the enforcement of a legal or regulatory function, or (ii) 

considers such arrangement to be in furtherance of Eris ClearingCboe Clear Digital’s 

purpose or duties under applicable law. Eris ClearingCboe Clear Digital may disclose to 

any Person or body information concerning or associated with a Clearing Member or other 
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Person that Eris ClearingCboe Clear Digital believes is necessary and appropriate in 

exercising a legal or regulatory function (including, without limitation, information 

concerning any aspect of the business of Eris ClearingCboe Clear Digital) whether or not 

a formal arrangement governing the disclosure exists or a request for information was 

made.

705. Trading by Officers and Employees Prohibited.

(a) No Officer or employee of Eris ClearingCboe Clear Digital shall trade or participate 

directly or indirectly in any transaction in any futures, option, or swap traded on any U.S. 

designated contract market, that are closely related to the Contracts cleared by the 

Clearinghouse, except to the extent necessary to carry out the provisions of the Rules or as 

otherwise permitted pursuant to an exemption granted in accordance with this Rule; or

(b) No Officer, Director, or employee of Eris ClearingCboe Clear Digital shall disclose any 

material, non-public information obtained as a result of such Person’s employment with 

Eris ClearingCboe Clear Digital where the Officer or employee has or should have a 

reasonable expectation that the information disclosed may assist another Person in trading 

any commodity interest; provided, that an employee is not prohibited from making 

disclosures in the course of the employee’s duties, or to another Self-Regulatory 

Organization, court of competent jurisdiction or representative of any agency or 

department of the federal or state government acting in his or her official capacity.

(c) Eris ClearingCboe Clear Digital may adopt certain exemptions from the trading prohibition 

contained in paragraph (a)(i), provided that any such exemptions shall be consistent with 

CFTC Regulations and applicable State Regulations.

(d) All terms used in this Rule shall be construed consistently with the definitions appearing 

in CFTC Regulation 1.59.

706. Forms; Facsimile Signatures.

(a) Eris ClearingCboe Clear Digital shall prescribe the form, method and time of delivery of 

any application, list, notice or other document required pursuant to these Rules or the 

policies or practices of Eris ClearingCboe Clear Digital.

(b) A Clearing Member or a Clearing Member’s representative may execute any document to 

be delivered to Eris ClearingCboe Clear Digital or to any other Clearing Member pursuant 

to these Rules or any policy or practice of Eris ClearingCboe Clear Digital by means of a 

mechanically or electronically reproduced facsimile signature if it otherwise satisfies any 

requirements of Eris ClearingCboe Clear Digital for use of such facsimile signatures.

707. Governing Law; Legal Proceedings.

(a) These Rules, the Clearing Member Agreement and all rights and obligations under the 

foregoing (including the creation of security interests in margin and guaranty fund 

deposits), shall be governed by and construed in accordance with the internal laws of the 

State of Illinois, without giving effect to the conflict of law provisions thereof.
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(b) Any action, suit or proceeding against Eris ClearingCboe Clear Digital, its Officers, 

directors, limited liability company members, employees, or agents, must be brought 

within one (1) year from the time that a cause of action has accrued. Any such action, suit 

or proceeding shall be brought in the State or Federal courts located within Chicago, 

Illinois. Each Clearing Member expressly consents, for itself and its Authorized 

Representatives, to the jurisdiction of any such court, waives any objection to venue 

therein, and waives any right it may have to a trial by jury.

(c) In the event that a Clearing Member or an affiliate of such Clearing Member fails to prevail 

in a lawsuit or other legal proceeding instituted by such Clearing Member against (i) Eris 

ClearingCboe Clear Digital or (ii) any affiliate of Eris ClearingCboe Clear Digital or any 

of their respective officers, directors, equity holders, employees, agents, or any member of 

any Committee, and related to the business of Eris ClearingCboe Clear Digital, such 

Clearing Member shall pay to Eris ClearingCboe Clear Digital all reasonable expenses, 

including attorneys’ fees, incurred by Eris ClearingCboe Clear Digital in the defense of 

such proceeding. This paragraph (c) shall not apply to Eris ClearingCboe Clear Digital

disciplinary actions, appeals thereof, or an instance in which the Board or the Officers have 

granted a waiver of the provisions hereof.

708. Dispute Resolution

(a) All Clearing Members shall be required to arbitrate all disputes between or among 

themselves that relate to or arise out of any transaction submitted for clearing to Eris 

ClearingCboe Clear Digital in accordance with Exchange Rule 801. For these purposes, 

each Clearing Member shall be deemed a “Member” for purposes of Exchange Rule 801.

(b) Disputes involving Customers may be arbitrated in accordance with Exchange Rule 801(c).

709. Contracts

Eris ClearingCboe Clear Digital may approve as eligible for clearing contracts with terms and 

conditions matching the terms and conditions in the Exchange rulebook for such contracts and to 

the extent permissible under Applicable Law. Any new contract that Eris ClearingCboe Clear 

Digital has approved as eligible for clearing shall be posted on Eris ClearingCboe Clear Digital’s 

website and certified with or otherwise approved by the CFTC in accordance with CFTC 

Regulations, as necessary.