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612-321-7101

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Via Portal Submission

October 13, 2022

 MGEX Submission No. 22-46

Mr. Christopher J. Kirkpatrick

Secretary of the Commission

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street NW

Washington, DC 20581

RE: CFTC Regulation 40.6(a) Certification: Delisting of Tax Products

Dear Mr. Kirkpatrick:

Pursuant to Commodity Exchange Act Section 5c and Commodity Futures Trading Commission Regulation 

40.6(a), the Minneapolis Grain Exchange, LLC (“MGEX”) hereby certifies the delisting of Corporate Tax 

Futures and Capital Gains Tax Futures (collectively, the “Tax Products”). There is no open interest for the 

Tax Products. In conjunction with the delisting, the Tax Products rules will be stricken and removed from 

the MGEX Rulebook. See Attachment A. 

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

that delisting the Tax Products may impact the following DCM Core Principles:

• DCM Core Principle 6, Emergency Authority: Because there was no open interest in the Tax

Products, there will not be any resulting market disruption.

• DCM Core Principle 7, Availability of General Information: The Exchange has publicly made 

available a memo detailing the delisting of the Tax Products, which is located on the MGEX website 

at http://www.mgex.com.

Pursuant to MGEX Bylaw 2.4., the Exchange has the authority to suspend trading and delist the Tax

Products. There were no substantive opposing views expressed, nor is the Exchange aware of any 

substantive opposing views with respect to this filing.

The delisting of the Tax Products is effective after the close of trading on October 14, 2022. Removal of 

the Tax Products rules from the Rulebook will become effective as soon as practical. MGEX certifies that 

the delisting of Tax Products complies with the CEAct and CFTC Regulations promulgated thereunder. 

MGEX further certifies that this submission has been posted on the MGEX website at the following link: 

http://www.mgex.com/regulation.html. 
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400 South 4th Street | 130 Grain Exchange Building | Minneapolis, MN 55415

612-321-7101

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If there are any questions regarding this submission, please contact me at (612) 321-7128 or 

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

Sincerely,

Peter D. Sparby

Corporate Counsel

Enclosure
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Attachment A

CHAPTER 85

CORPORATE TAX FUTURES

85.1. AUTHORITY.

Trading in Corporate Tax Futures (base symbol ‘TAX’) may be conducted under such 

terms and conditions as the Board of Directors and/or the Exchange will determine, 

subject to the Commodity Exchange Act, as amended, and CFTC regulations 

promulgated thereunder. 

85.2. SCOPE OF CHAPTER.

This Chapter is limited in its application to Futures trading on the Corporate Tax Rate 

Index. Electronic trading, clearing, daily settlement, delivery of cash settlement, and any 

other matters not specifically covered in this Chapter will be governed by the MGEX 

Rules, or otherwise delegated to the Exchange to establish policies and procedures that 

implement the MGEX Rules. In the event the provisions of this Chapter conflict with any 

other MGEX Rules, those listed within this Chapter and as applicable to the TAX Futures 

Contract supersede such MGEX Rules outside of this Chapter.

85.3. CORPORATE TAX RATE INDEX: DEFINITION.

The Corporate Tax Rate Index (the “Tax Index”) tracks the tax imposed for each taxable 

year by the U.S. federal government on the taxable income of corporations. The Tax 

Index is calculated based on the highest marginal U.S. corporate tax rate as published in 

Section 11(b) of the Internal Revenue Code of 1986 (as amended and as it may be further 

amended from time to time, and any successor statutes thereto). The Tax Index value is 

calculated by subtracting the corporate tax rate percent in effect on a Business Day from 

100% and then multiplied by 100; the sole corporate tax rate used as an input in this 

calculation is the highest marginal U.S. corporate tax rate. The Tax Index is calculated 

and distributed each Business Day at 8:00 a.m. Central Time.
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85.4. CONTRACT TRADING UNIT.

The unit of trading will be the value of the TAX Futures Contract multiplied by two 

hundred-fifty U.S. dollars ($250).

85.5. MINIMUM PRICE INCREMENT.

Except as provided in this Rule, the minimum price increment in the TAX Futures Contract 

will be 0.10 index points, which has a value of $25. All prices are quoted in U.S. dollars.

For spread trades, the individual legs and net prices in the TAX Futures Contract may be 

in increments of 0.10 index points, which has a value of $25.

85.6. TRADING MONTHS.

The months available for trading in TAX Futures Contracts and the number of months 

available for trade at one time will be determined by the Exchange.

85.7. TRADING DAYS AND HOURS.

A trading day is a Business Day on which trading of TAX Futures Contracts is permitted. 

Trading days are determined by the Exchange. The Hours of Trading for TAX Futures 

Contracts will constitute a single trading session for a Business Day. 

Unless otherwise specified by the Exchange in relation to Exchange holidays, the Hours 

of Trading for TAX Futures will be 8:30 a.m. – 3:00 p.m. Monday – Friday Central Time.

85.8. LAST TRADING DAY.

The last trading day for the TAX Futures Contract ends at 3:00 p.m. Central Time on the 

trading day immediately before the final settlement date, generally the Thursday 

preceding the third Friday of a calendar month. Should the last trading day be a holiday, 

the last trading day will be moved one day prior to Wednesday.

85.9. FINAL SETTLEMENT DATE.
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The final settlement date for the TAX Futures Contract is the third Friday of a calendar 

month. Should the third Friday of the month be a holiday, the final settlement date will be 

moved one day prior to Thursday, and the last trading day will be moved to Wednesday.

85.10. CASH SETTLEMENT.

TAX Futures Contracts will be cash settled to the final settlement date’s Tax Index value, 

and delivery of the cash settled amount will occur on the Business Day immediately 

following the final settlement date. The final settlement price of the TAX Futures Contract 

will be rounded to the nearest $.01. If the settlement price is not available or the normal 

settlement procedure cannot be utilized due to a trading disruption or other unusual 

circumstance, the settlement price will be determined in accordance with Exchange 

procedures. 

The Exchange makes no warranty, express or implied, as to the results of the final Tax 

Index settlement price. Information included in, or used in the calculation of, such index 

is obtained from sources believed to be reliable, but the Exchange makes no guarantee 

as to its accuracy or completeness and will have no liability for any damages, claims, 

losses (including any indirect or consequential losses), expenses, or delays, whether 

direct or indirect, foreseen or unforeseen, suffered by any person arising out of any 

circumstance or occurrence relating to the index or its calculation, or arising out of any 

errors or delays in calculating or disseminating such index.

85.11. OFFICIAL CLOSING PERIOD.

The official closing period of the TAX Futures Contract will be from 2:59:00 p.m. to 2:59:59 

p.m. Central Time.

85.12. DAILY SETTLEMENT PRICE.

The Exchange will calculate the daily settlement price for each TAX Futures Contract in 

the following manner for each Business Day. The settlement price will be consistent with 

the minimum fluctuations of the contract.
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A. The settlement price for the lead month will be determined by the volumeweighted average of outright trades and applicable bids and offers made in 

the closing period on the Electronic Trading System. For purposes of this 

Rule, the lead month will be determined by the Exchange and is generally 

the most active month. The lead month will change at the time when the 

daily volume and open interest in the contract month following the current 

lead month is greater than the daily volume and open interest in the lead 

month for two (2) consecutive Business Days. If there is no volumeweighted average of the outright, then the last trade price is compared to 

the current bid/ask. If the last trade price is outside of the bid/ask spread, 

then the contract settles to the nearest bid/ask price. If the last trade price 

is within the bid/ask spread or if a bid/ask is not available, then the contract 

settles to the last trade price. If there is no last trade price available, then 

the prior settlement is compared to the current bid/ask. If the prior 

settlement is outside of the bid/ask spread, then the contract settles to the 

nearest bid/ask price. If the prior settlement is within the bid/ask spread or 

if a bid/ask is not available, then the contract settles to the prior settlement 

price.

B. All non-lead months are deferred contract months and settle based upon 

the volume-weighted average of calendar spread transactions made in the 

closing period on the Electronic Trading System. If there are no relevant 

calendar spreads, bids and offers in those calendar spreads will be used in 

conjunction with settlements from any months where a settlement price has 

been determined to form an implied market in the contract to be settled. 

These implied markets, along with the outright bid/ask market for the 

contract, will be used to derive the best possible bid and best possible ask, 

and the contract will settle at the midpoint of the bid/ask spread.

C. Notwithstanding the above, if such settlement price is not consistent with 

the settlements in other months or with market information, or if the 

settlement was inaccurately determined, a new settlement price may be 

established at a level consistent with such other settlement prices or market 

information and a written record setting forth the basis for any modification 

of such settlement price will be prepared.

D. The Exchange may in its sole discretion modify the settlement price prior to 

the start of the day’s final clearing process if the settlement price arose from 

data entry errors made by or on behalf of the Exchange, and modification 
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of the settlement price is necessary to prevent market distortion. A written 

record will be prepared setting forth the basis for any modification. In 

addition, the Exchange reserves the right to change which contract month 

is the lead month when, in its discretion, doing so is in the best interest of 

the marketplace. If any such change to the lead month is made pursuant to 

this Rule, the Exchange shall provide notification to the public via the MGEX 

website or other means it deems effective.

85.13. TRADING HALTS.

If a decline in the S&P 500 Index triggers a market wide circuit breaker, a TAX Futures 

Contract trading halt will occur.

85.14. OFFSETS AND TRANSFER TRADES.

Positions reported as offsets and/or position change data must be reported to the 

Clearing House each day by the established deadlines and in a manner that meets the 

provisions of MGEX Resolution 2101.00.C. Positions that have been offset at the 

Exchange may not subsequently be re-opened at the Exchange. 

Except by same day trade activity, existing TAX Futures positions in an expiring TAX 

Futures Contract month may not be offset during the period beginning two (2) Business

Daysprior tothe first Business Day of the expiring monthandcontinuingthrough the end 

of the settlement date of the expiring TAX Futures Contract (“Prohibition Period”). 

Clearing Members will be responsible for compliance with this requirement by their

omnibus accounts. This prohibition also applies to transfer trades where no change in 

ownership is involved when the date of execution or exercise of the position being 

transferred is not the same as the transfer date. Such positions are required tobe offsetby 

trading. If such positions are carried on the books of different Clearing Members, the

receiving Clearing Member is responsible for compliance with this Rule.

At its sole discretion, the Department of Audits and Investigations may permit an offset 

during the Prohibition Period via netting, transfer, or position adjustment. Such

adjustments are permissible to correct a bona fide clerical or operational error for an 

amount less than five percent (5.0%) of the published open interest reported the same

morning for which the offset will be reported by the Clearing Member’s morning position

reporting deadline. Moreover, such adjustments are only permissible if the Department of 

Audits and Investigations reasonably believes the offset will not adversely impact the 

market. Such permission does not prohibit the Department of Audits and Investigations 

from investigating or taking disciplinary action for any alleged violation of the Rulebook.
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85.15. BLOCK TRADES

For purposes of this Rule, Block Trades are defined as large transactions that are 

privately negotiated off the Exchange’s Electronic Trading System and can only be 

entered into by Eligible Contract Participants, as defined in Section 1a(18) of the 

Commodity Exchange Act.

Block Trades are permitted to be executed in the TAX Futures Contract, provided they 

are in accordance with the following provisions:

A. A Block Trade must be for a quantity that is at or in excess of the applicable 

minimum threshold. Orders for different accounts may not be aggregated in 

order to achieve the minimum transaction size. The Block Trade minimum 

threshold in the TAX Futures Contract is 500 contracts.

B. A Party shall not execute any order as a Block Trade for a customer unless 

such customer has specified that the order be executed as a Block Trade.

C. The Block Trade is executed competitively at a price that is fair and 

reasonable with consideration to the prevailing market price of the TAX 

Futures Contract. The minimum price increment for a Block Trade in the 

TAX Futures Contract is 0.10 index points.

D. Block Trades will not trigger conditional orders or otherwise affect orders in 

the underlying TAX Futures Contract traded on the Electronic Trading 

System.

E. Clearing Members must ensure that each side of the Block Trade is 

reported to the Exchange within fifteen (15) minutes (but in no case later 

than 3:15 p.m. Central Time) and in the manner specified by the Exchange. 

The reporting of each side of the Block Trade must include the: contract, 

contract month, price, quantity of the transaction including quantities for 

each leg, buy/sell side, CTI and Regular (House) or Segregated (Customer) 

indicators, account number, the respective Clearing Members, the time of 

execution, and any other information required in accordance with MGEX 

Rules.

F. Each counterparty to a Block Trade must have a separate and independent 

bona-fide legal or business purpose for entering into the Block Trade.
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G. Parties involved in the solicitation or negotiation of a Block Trade may not 

disclose the details of such communication to any other party for any 

purpose other than to facilitate the execution of the Block Trade.

85.16. POSITION ACCOUNTABILITY.

The position accountability levels for TAX Futures Contracts is ownership or control at 

any time of more than 50,000 contracts net long or net short in all TAX Futures Contracts 

combined. 

85.17. AGGREGATION OF POSITIONS.

In determining whether any person has exceeded the position accountability levels, all 

positions in accounts for which such person by power of attorney or otherwise directly or 

indirectly holds positions or controls trading must be included with the positions held by 

such person. Such positions accountability levels will apply to positions held by two (2) or 

more persons acting pursuant to an expressed or implied agreement or understanding, 

the same as if the positions were held by a single person. The Exchange will follow the 

CFTC definition of aggregation and the procedures for aggregating positions as described 

in CFTC regulations as applicable.

85.18. REPORTABLE POSITION AND TRADING VOLUME.

A. Pursuant to CFTC Regulation 15.03 and Part 17, any open position level in 

the TAX Futures Contract at the close of trading on any trading day equal 

to, or in excess of, 25 contracts on either side of the market is required to 

be reported to the CFTC. All such positions will be reported in a manner 

and form as designated by the CFTC or the Exchange. 

B. Pursuant to CFTC Regulation 15.04 and Part 17, a volume threshold 

account that has trading volume in the TAX Futures Contract during a single 

trading day equal to, or in excess of, 50 contracts is required to be reported 

to the CFTC. All such positions must be reported in a manner and form as 

designated by the CFTC or the Exchange. 
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85.19. CONTRACT MODIFICATIONS.

Specifications are fixed for the duration of the contract month upon the first trade in that 

contract month. However, a change in any Federal law, regulation, ruling, directive, or 

order that conflicts with these Rules or specifications will become effective upon notice 

by the Exchange. Additionally, the Board of Directors and/or the Exchange are granted 

the authority to change contract specifications as it deems appropriate or necessary, or 

to conform to any other applicable law, rule, or regulation that conflicts with these Rules 

or specifications, for any unopened contract month, as well as to change contract 

specifications for any contract month with open interest upon approval by the CFTC.

To maintain the purpose and viability of the TAX Futures Contract, the Board of Directors 

and/or the Exchange are granted the authority to change the MGEX Rules not directly 

affecting contract specifications at any time and implement such change as may be 

determined.

85.20. EMERGENCIES. 

In the event of an emergency, as determined by the Exchange, the Board of Directors will 

have the authority and power to follow the procedures described in MGEX Bylaw 2.4.

The Board of Directors may delegate such powers as it deems necessary to the Executive 

Committee, Exchange Officer(s), or other Exchange employees. 

An emergency may include, but is not limited to, events of Force Majeure, interference, 

interruptions, breakage of communication, accident, or any event or occurrence that is 

causing or may cause disruption in the marketplace.

Additionally, in the event of an emergency, the Board of Directors or its delegate(s) will 

have the authority and power to utilize such sources, means, or methods that it 

determines to be in the best interest of the Exchange and the market. 

The decision of the Board of Directors, Executive Committee, Exchange Officer(s), or 

other Exchange employees as delegated, will be final and binding upon all parties. The 

Exchange will not be liable to any party because of actions and decisions taken in good 

faith.
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U.S. CORPORATE TAX RATE INDEX FUTURES CONTRACTS RISK DISCLOSURE 

AND DISCLAIMER

The risk of loss in trading commodity futures contracts can be substantial. You should carefully consider 

the risks of trading commodity futures contracts generally and the unique risks of trading U.S. Corporate 

Tax Rate Index futures contracts (“TAX Futures Contracts”) in particular before entering into any trade. 

Because there are no comparable products like TAX Futures Contracts which reference and settle to a 

federal tax rate, there are unknown tax implications and tax treatments associated with trading these 

contracts. No federal guidance has been issued as to whether this product will qualify for treatment as a 

hedging transaction. Furthermore, no federal law or guidance exists on the deductibility of the costs 

incurred in trading TAX Futures Contracts, whether for speculative or hedging purposes. Likewise, the tax 

treatment related to Tax Futures Contracts for realizing, recognizing or offsetting gains or losses, whether 

capital or ordinary, is not known. Any of the above risks may result in adverse consequences, including 

non-deductibility of expenses or losses, and non-favorable tax treatment of gains or losses. EACH 

MARKET PARTICIPANT WHO CHOOSES TO TRADE TAX FUTURES CONTRACTS DOES SO AT 

THEIR OWN RISK, AND IS RESPONSIBLE FOR ANY TAX CONSEQUENCES AND REPORTING OF 

THEIR TRADE ACTIVITY UNDER RELEVANT GOVERNMENT AUTHORITIES AND JURISDICTIONS. 

THEREFORE, IT IS HIGHLY RECOMMENDED THAT EACH MARKET PARTICIPANT CONSULT THEIR 

PROFESSIONAL TAX ACCOUNTANT OR ATTORNEY BEFORE TRADING TAX FUTURES 

CONTRACTS.
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CHAPTER 90

CAPITAL GAINS TAX FUTURES

90.1. AUTHORITY.

Trading in Capital Gains Tax Futures (base symbol ‘CGT’) may be conducted under such terms 

and conditions as the Board of Directors and/or the Exchange will determine, subject to the 

Commodity Exchange Act, as amended, and CFTC regulations promulgated thereunder. 

90.2. SCOPE OF CHAPTER.

This Chapter is limited in its application to Futures trading on the Capital Gains Tax Rate Index 

(“TAX Futures Contract”). Electronic trading, clearing, daily settlement, delivery of cash 

settlement, and any other matters not specifically covered in this Chapter will be governed by the 

MGEX Rules, or otherwise delegated to the Exchange to establish policies and procedures that 

implement the MGEX Rules. In the event the provisions of this Chapter conflict with any other 

MGEX Rules, those listed within this Chapter and as applicable to the TAX Futures Contract 

supersede such MGEX Rules outside of this Chapter.

90.3. CAPITAL GAINS TAX RATE INDEX: DEFINITION.

The Capital Gains Tax Rate Index (the “Tax Index”) tracks the highest capital gains tax rate 

imposed by the United States federal government on capital gains of individuals, as published in 

Section 1(h)(1)(D) of the Internal Revenue Code of 1986 (as amended and as it may be further 

amended from time to time, and any successor statutes thereto). The Tax Index value is 

calculated by multiplying the capital gains tax rate percent specified above, by 100. The Tax Index 

is calculated and distributed each Business Day at 8:00 a.m. Central Time.

90.4. CONTRACT TRADING UNIT.

The unit of trading will be the value of the TAX Futures Contract multiplied by one hundred U.S. 

dollars ($100).

90.5. MINIMUM PRICE INCREMENT.

Except as provided in this Rule, the minimum price increment in the TAX Futures Contract will be 

0.10 index points, which has a value of $10. All prices are quoted in U.S. dollars.
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For spread trades, the individual legs and net prices in the TAX Futures Contract may be in 

increments of 0.10 index points, which has a value of $10.

90.6. TRADING MONTHS.

The months available for trading in TAX Futures Contracts and the number of months available 

for trade at one time will be determined by the Exchange.

90.7. TRADING DAYS AND HOURS.

A trading day is a Business Day on which trading of TAX Futures Contracts is permitted. Trading 

days are determined by the Exchange. The Hours of Trading for TAX Futures Contracts will 

constitute a single trading session for a Business Day. 

Unless otherwise specified by the Exchange in relation to Exchange holidays, the Hours of 

Trading for TAX Futures will be 8:30 a.m. – 3:00 p.m. Monday – Friday Central Time.

90.8. LAST TRADING DAY.

The last trading day for the TAX Futures Contract ends at 3:00 p.m. Central Time on the trading 

day immediately before the final settlement date, generally the Thursday preceding the third 

Friday of a calendar month. Should the last trading day be a holiday, the last trading day will be 

moved one day prior to Wednesday.

90.9. FINAL SETTLEMENT DATE.

The final settlement date for the TAX Futures Contract is the third Friday of a calendar month. 

Should the third Friday of the month be a holiday, the final settlement date will be moved one day 

prior to Thursday, and the last trading day will be moved to Wednesday.

90.10. CASH SETTLEMENT.

TAX Futures Contracts will be cash settled to the final settlement date’s Tax Index value, and 

delivery of the cash settled amount will occur on the Business Day immediately following the final 

settlement date. The final settlement price of the TAX Futures Contract will be rounded to the 

nearest $.01. If the settlement price is not available or the normal settlement procedure cannot 
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be utilized due to a trading disruption or other unusual circumstance, the settlement price will be 

determined in accordance with Exchange procedures. 

The Exchange makes no warranty, express or implied, as to the results of the final Tax Index 

settlement price. Information included in, or used in the calculation of, such index is obtained from 

sources believed to be reliable, but the Exchange makes no guarantee as to its accuracy or 

completeness and will have no liability for any damages, claims, losses (including any indirect or 

consequential losses), expenses, or delays, whether direct or indirect, foreseen or unforeseen, 

suffered by any person arising out of any circumstance or occurrence relating to the index or its 

calculation, or arising out of any errors or delays in calculating or disseminating such index.

90.11. OFFICIAL CLOSING PERIOD.

The official closing period of the TAX Futures Contract will be from 2:59:00 p.m. to 2:59:59 p.m. 

Central Time.

90.12. DAILY SETTLEMENT PRICE.

The Exchange will calculate the daily settlement price for each TAX Futures Contract in the 

following manner for each Business Day. The settlement price will be consistent with the minimum 

fluctuations of the contract.

A. The settlement price for the lead month will be determined by the volume-weighted 

average of outright trades and applicable bids and offers made in the closing period on 

the Electronic Trading System. For purposes of this Rule, the lead month will be 

determined by the Exchange and is generally the most active month. The lead month will 

change at the time when the daily volume and open interest in the contract month following 

the current lead month is greater than the daily volume and open interest in the lead month 

for two (2) consecutive Business Days. If there is no volume-weighted average of the 

outright, then the last trade price is compared to the current bid/ask. If the last trade price 

is outside of the bid/ask spread, then the contract settles to the nearest bid/ask price. If 

the last trade price is within the bid/ask spread or if a bid/ask is not available, then the 

contract settles to the last trade price. If there is no last trade price available, then the prior 

settlement is compared to the current bid/ask. If the prior settlement is outside of the 

bid/ask spread, then the contract settles to the nearest bid/ask price. If the prior settlement 

is within the bid/ask spread or if a bid/ask is not available, then the contract settles to the 

prior settlement price.

B. All non-lead months are deferred contract months and settle based upon the volumeweighted average of calendar spread transactions made in the closing period on the 
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Electronic Trading System. If there are no relevant calendar spreads, bids and offers in 

those calendar spreads will be used in conjunction with settlements from any months 

where a settlement price has been determined to form an implied market in the contract 

to be settled. These implied markets, along with the outright bid/ask market for the 

contract, will be used to derive the best possible bid and best possible ask, and the 

contract will settle at the midpoint of the bid/ask spread.

C. Notwithstanding the above, if such settlement price is not consistent with the settlements 

in other months or with market information, or if the settlement was inaccurately 

determined, a new settlement price may be established at a level consistent with such 

other settlement prices or market information and a written record setting forth the basis 

for any modification of such settlement price will be prepared.

D. The Exchange may in its sole discretion modify the settlement price prior to the start of 

the day’s final clearing process if the settlement price arose from data entry errors made 

by or on behalf of the Exchange, and modification of the settlement price is necessary to 

prevent market distortion. A written record will be prepared setting forth the basis for any 

modification. In addition, the Exchange reserves the right to change which contract month 

is the lead month when, in its discretion, doing so is in the best interest of the marketplace. 

If any such change to the lead month is made pursuant to this Rule, the Exchange shall 

provide notification to the public via the MGEX website or other means it deems effective

90.13. TRADING HALTS.

If a decline in the S&P 500 Index triggers a market wide circuit breaker, a TAX Futures Contract 

trading halt will occur.

90.14. OFFSETS AND TRANSFER TRADES.

Positions reported as offsets and/or position change data must be reported to the Clearing 

House each day by the established deadlines and in a manner that meets the provisions of 

MGEX Resolution 2101.00.C. Positions that have been offset at the Exchange may not 

subsequently be re-opened at the Exchange. 

Except by same day trade activity, existing TAX Futures positions in an expiring TAX Futures 

Contract month may not be offset during the period beginning two (2)Business Days prior to the 

first Business Day of the expiring monthandcontinuingthrough the end of the settlement date of 

the expiring TAX Futures Contract (“Prohibition Period”). Clearing Members will be responsible 

for compliance with this requirement by their omnibus accounts. This prohibition also applies to

transfertrades where no change in ownership is involved when the date of execution or exercise 

of the position being transferred is not the same as the transfer date. Such positions are required

to be offsetby trading. If such positions are carried on the books of different Clearing Members,

the receiving Clearing Member is responsible for compliance with this Rule.
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At its sole discretion, the Department of Audits and Investigations may permit an offset during the 

Prohibition Period via netting, transfer, or position adjustment. Such adjustments are permissible

to correct a bona fide clerical or operational error for an amount less than five percent (5.0%) of 

the published open interest reported the same morning for which the offset will be reported by the

Clearing Member’s morning position reporting deadline. Moreover, such adjustments are only

permissibleif theDepartment of Audits and Investigations reasonably believes the offset will not 

adversely impact the market. Such permission does not prohibit the Department of Audits and 

Investigations from investigating or taking disciplinary action for any alleged violation of the

Rulebook.

90.15. BLOCK TRADES.

For purposes of this Rule, Block Trades are defined as large transactions that are privately 

negotiated off the Exchange’s Electronic Trading System and can only be entered into by Eligible 

Contract Participants, as defined in Section 1a(18) of the Commodity Exchange Act.

Block Trades are permitted to be executed in the TAX Futures Contract, provided they are in 

accordance with the following provisions:

A. A Block Trade must be for a quantity that is at or in excess of the applicable minimum 

threshold. Orders for different accounts may not be aggregated in order to achieve the 

minimum transaction size. The Block Trade minimum threshold in the TAX Futures 

Contract is 500 contracts.

B. A Party shall not execute any order as a Block Trade for a customer unless such customer 

has specified that the order be executed as a Block Trade.

C. The Block Trade is executed competitively at a price that is fair and reasonable with 

consideration to the prevailing market price of the TAX Futures Contract. The minimum 

price increment for a Block Trade in the TAX Futures Contract is 0.10 index points.

D. Block Trades will not trigger conditional orders or otherwise affect orders in the underlying 

TAX Futures Contract traded on the Electronic Trading System.

E. Clearing Members must ensure that each side of the Block Trade is reported to the 

Exchange within fifteen (15) minutes (but in no case later than 3:15 p.m. Central Time) 

and in the manner specified by the Exchange. The reporting of each side of the Block 

Trade must include the: contract, contract month, price, quantity of the transaction 

including quantities for each leg, buy/sell side, CTI and Regular (House) or Segregated 

(Customer) indicators, account number, the respective Clearing Members, the time of 

execution, and any other information required in accordance with MGEX Rules.
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F. Each counterparty to a Block Trade must have a separate and independent bona-fide 

legal or business purpose for entering into the Block Trade.

G. Parties involved in the solicitation or negotiation of a Block Trade may not disclose the 

details of such communication to any other party for any purpose other than to facilitate 

the execution of the Block Trade.

90.16. POSITION ACCOUNTABILITY.

The position accountability levels for TAX Futures Contracts is ownership or control at any time 

of more than 50,000 contracts net long or net short in all TAX Futures Contracts combined. 

90.17. AGGREGATION OF POSITIONS.

In determining whether any Market Participant has exceeded the position accountability levels, 

all positions in accounts for which such Market Participant, by power of attorney or otherwise 

directly or indirectly holds positions or controls trading or holds a ten percent (10%) or great 

ownership or equity interest will be included with the positions held by such Market Participant. 

Such limits upon positions accountability levels will apply to positions held by two (2) or more 

Market Participants acting pursuant to an expressed or implied agreement or understanding, the 

same as if the positions were held by a single Market Participant. The Exchange will follow the 

CFTC definition of aggregation and the procedures for aggregating positions as described in 

CFTC regulations as applicable.

90.18. REPORTABLE POSITION AND TRADING VOLUME.

A. Pursuant to CFTC Regulation 15.03 and Part 17, any open position level in the TAX 

Futures Contract at the close of trading on any trading day equal to, or in excess of, 25 

contracts on either side of the market is required to be reported to the CFTC. All such 

positions will be reported in a manner and form as designated by the CFTC or the 

Exchange. 

B. Pursuant to CFTC Regulation 15.04 and Part 17, a volume threshold account that has 

trading volume in the TAX Futures Contract during a single trading day equal to, or in 

excess of, 50 contracts is required to be reported to the CFTC. All such positions must be 

reported in a manner and form as designated by the CFTC or the Exchange. 

90.19. CONTRACT MODIFICATIONS.

Specifications are fixed for the duration of the contract month upon the first trade in that contract 

month. However, a change in any Federal law, regulation, ruling, directive, or order that conflicts 
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with these Rules or specifications will become effective upon notice by the Exchange. Additionally, 

the Board of Directors and/or the Exchange are granted the authority to change contract 

specifications as it deems appropriate or necessary, or to conform to any other applicable law, 

rule, or regulation that conflicts with these Rules or specifications, for any unopened contract 

month, as well as to change contract specifications for any contract month with open interest upon 

approval by the CFTC.

To maintain the purpose and viability of the TAX Futures Contract, the Board of Directors and/or 

the Exchange are granted the authority to change the MGEX Rules not directly affecting contract 

specifications at any time and implement such change as may be determined.

90.20. EMERGENCIES. 

In the event of an emergency, as determined by the Exchange, the Board of Directors will have 

the authority and power to follow the procedures described in MGEX Bylaw 2.4. The Board of 

Directors may delegate such powers as it deems necessary to the Executive Committee, 

Exchange Officer(s), or other Exchange employees. 

An emergency may include, but is not limited to, events of Force Majeure, interference, 

interruptions, breakage of communication, accident, or any event or occurrence that is causing or 

may cause disruption in the marketplace.

Additionally, in the event of an emergency, the Board of Directors or its delegate(s) will have the 

authority and power to utilize such sources, means, or methods that it determines to be in the 

best interest of the Exchange and the market. 

The decision of the Board of Directors, Executive Committee, Exchange Officer(s), or other 

Exchange employees as delegated, will be final and binding upon all parties. The Exchange will 

not be liable to any party because of actions and decisions taken in good faith.

U.S. CAPITAL GAINS TAX RATE INDEX FUTURES CONTRACTS RISK DISCLOSURE AND 

DISCLAIMER

The risk of loss in trading commodity futures contracts can be substantial. You should carefully 

consider the risks of trading commodity futures contracts generally and the unique risks of trading 

U.S. Capital Gains Tax Rate Index futures contracts (“TAX Futures Contracts”) in particular before 

entering into any trade. There are unknown tax implications and tax treatments associated with 

trading these contracts. No federal guidance has been issued as to whether this product will 

qualify for treatment as a hedging transaction. Furthermore, no federal law or guidance exists on 
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the deductibility of the costs incurred in trading TAX Futures Contracts, whether for speculative 

or hedging purposes. Likewise, the tax treatment related to TAX Futures Contracts for realizing, 

recognizing or offsetting gains or losses, whether capital or ordinary, is not known. Any of the 

above risks may result in adverse consequences, including non-deductibility of expenses or 

losses, and non-favorable tax treatment of gains or losses. EACH MARKET PARTICIPANT WHO 

CHOOSES TO TRADE TAX FUTURES CONTRACTS DOES SO AT THEIR OWN RISK, AND IS 

RESPONSIBLE FOR ANY TAX CONSEQUENCES AND REPORTING OF THEIR TRADE 

ACTIVITY UNDER RELEVANT GOVERNMENT AUTHORITIES AND JURISDICTIONS. 

THEREFORE, IT IS HIGHLY RECOMMENDED THAT EACH MARKET PARTICIPANT 

CONSULT THEIR PROFESSIONAL TAX ACCOUNTANT OR ATTORNEY BEFORE TRADING 

TAX FUTURES CONTRACTS.