Appendix A to Part 38 — Form DCM

COMMODITY FUTURES TRADING COMMISSION

FORM DCM

CONTRACT MARKET

APPLICATION OR AMENDMENT TO APPLICATION FOR DESIGNATION

EXHIBITS INSTRUCTIONS

Intentional misstatements or omissions of material fact may constitute federal criminal 

violations (7 U.S.C. §13 and 18 U.S.C. § 1001) or grounds for disqualification from 

designation.

DEFINITIONS

Unless the context requires otherwise, all terms used in this Form DCM have the same 

meaning as in the Commodity Exchange Act, as amended (“CEA” or “Act’”), and in the 

General Rules and Regulations of the Commodity Futures Trading Commission 

(“Commission”) thereunder.

For the purposes of this Form DCM, the term “Applicant” shall include any board of 

trade applying for designation as a contract market, any board of trade amending a 

pending application, or any designated contract market that is applying for an 

amendment to its order of designation.

GENERAL INSTRUCTIONS

1. This Form DCM, which includes instructions, a Cover Sheet, and required 

Exhibits (together, “Form DCM”) is to be filed with the Commission by all 

Applicants, pursuant to Section 5 of the CEA and the Commission’s regulations 

thereunder. Applicants may prepare their own Form DCM but must follow the 

format prescribed herein. Upon the filing of an application for designation or a 

designation amendment in accordance with the instructions provided herein, the 

Commission will publish notice of the filing and afford interested persons an 

opportunity to submit written data, views and arguments concerning such 

application. No application for designation or designation amendment shall be 

effective unless the Commission, by order, grants such designation or amended 

designation.

2. Individuals’ names, except the executing signature, shall be given in full (Last 

Name, First Name, Middle Name).

3. Signatures on all copies of the Form DCM filed with the Commission can be 

executed electronically. If this Form DCM is filed by a corporation, it shall be 

signed in the name of the corporation by a principal officer duly authorized; if filed 

by a limited liability company, it shall be signed in the name of the limited liability 
company by a manager or member duly authorized to sign on the limited liability 

company’s behalf; if filed by a partnership, it shall be signed in the name of the 

partnership by a general partner duly authorized; if filed by an unincorporated 

organization or association which is not a partnership, it shall be signed in the 

name of such organization or association by the managing agent, i.e., a duly 

authorized person who directs or manages or who participates in the directing or 

managing of its affairs.

4. If this Form DCM is being filed as an application for designation, all applicable 

items must be answered in full. If any item is inapplicable, indicate by “none,” 

“not applicable,” or “N/A,” as appropriate.

5. Under Section 5 of the CEA and the Commission’s regulations thereunder, the 

Commission is authorized to solicit the information required to be supplied by this 

Form DCM from any Applicant seeking designation as a contract market and 

from any designated contract market. Disclosure by the Applicant of the 

information specified on this Form DCM is mandatory prior to the start of the 

processing of an application for, or an amendment to, designated as a contract 

market. The information provided in this Form DCM will be used for the principal 

purpose of determining whether the Commission should grant or deny 

designation to an Applicant. The Commission may determine that additional 

information is required from the Applicant in order to process its application. A 

Form DCM which is not prepared and executed in compliance with 

applicable requirements and instructions may be returned as not 

acceptable for filing. Acceptance of the Form DCM, however, shall not 

constitute a finding that the Form DCM has been filed as required or that 

the information submitted is true, current, or complete.

6. Except in cases where confidential treatment is requested by the Applicant and 

granted by the Commission pursuant to the Freedom of Information Act and the 

rules of the Commission thereunder, information supplied on this Form DCM will 

be included routinely in the public files of the Commission and will be available 

for inspection by any interested person.

APPLICATION AMENDMENTS

1. Part 38 of the Commission’s regulations requires that if any information 

contained in this application, or any supplement or amendment thereto, is or 

becomes inaccurate for any reason, an amendment to Form DCM, or a 

submission under Part 40 of the Commission’s regulations, in either case 

correcting such information must be filed promptly with the Commission.

2. Applicants, when filing this Form DCM for purposes of amending an application, 

must re-file the Cover Sheet, amended if necessary and including an executing 

signature, and attach thereto revised Exhibits or other materials marked to show 

changes, as applicable. The submission of an amendment represents that the 
remaining items and Exhibits that are not amended remain true, current, and 

complete as previously filed.

WHERE TO FILE

This Form DCM must be filed electronically with the Secretary of the Commission in a 

format specified by the Secretary of the Commission.

COMMODITY FUTURES TRADING COMISSION

FORM DCM

CONTRACT MARKET

APPLICATION OR AMENDMENT TO APPLICATION FOR DESIGNATION

COVER SHEET

___________________________________________________________________

Exact name of Applicant as specified in charter

___________________________________________________________________

Address of principal executive offices

[ ] If this is an APPLICATION for designation, complete in full and check here.

[ ] If this is an AMENDMENT to an application, or to an existing designation, list all 

items that are amended and check here.

___________________________ ___________________________

___________________________ ___________________________

___________________________ ___________________________

___________________________ ___________________________

GENERAL INFORMATION

1. Name under which the business of the designated contract market is or will be 

conducted, if different than name specified above (include acronyms, if any):

___________________________________________________________________

2. If name of designated contract market is being amended, state previous designated 

contract market name:

___________________________________________________________________
3. Contact information, including mailing address if different than address specified 

above:

___________________________________________________________________

Number and Street

___________________________________________________________________

City State Country Zip Code

___________________________________________________________________

Main Phone number Fax

___________________________________________________________________

Website URL E-mail Address

4. List of principal office(s) and address(es) where designated contract market activities 

are/will be conducted:

Office Address

______________ ________________________________________________

______________ ________________________________________________

______________ ________________________________________________

5. If Applicant is a successor to a previously designated contract market, please 

complete the following:

a. Date of succession:

________________

b. Full name and address of predecessor designee

___________________________________________________________________

Name

___________________________________________________________________

City State Country Zip Code

___________________________________________________________________

Main Phone Number Website URL

BUSINESS ORGANIZATION

6. Applicant is a:

[ ] Corporation
[ ] Partnership

[ ] Limited Liability Company

[ ] Other form of organization (specify) ______________________________________

7. Date of incorporation or formation: _______________________________________

8. State of incorporation or jurisdiction of organization: _________________________

9. Applicant agrees and consents that the notice of any proceeding before the 

Commission in connection with this application may be given by sending such notice 

by certified mail to the person named below at the address given.

___________________________________________________________________

Print Name and Title

___________________________________________________________________

Name of Applicant

___________________________________________________________________

Number and Street

___________________________________________________________________

City State Zip Code

SIGNATURES

10. The Applicant has duly caused this application or amendment to be signed on its 

behalf by the undersigned, hereunto duly authorized, this _______________day of, 

20___. The Applicant and the undersigned represent hereby that all information 

contained herein is true, current, and complete. It is understood that all required items 

and Exhibits are considered integral parts of this Form DCM and that the submission of 

any amendment represents that all un-amended items and Exhibits remain true, current, 

and complete as previously filed.

___________________________________________________________________

Name of Applicant

___________________________________________________________________

Signature of Duly Authorized Person

___________________________________________________________________

Print Name and Title of Signatory
COMMODITY FULURES PFRADING COMMISSION

FORM DCM

CONTRACT MARKET

APPLICATION OR AMENDMENT TO APPLICATION FOR DESIGNATION

EXHIBITS INSTRUCTIONS

The following Exhibits must be filed with the Commission by each Applicant applying for 

designation as a contract market, or by a designated contract market amending its 

designation, pursuant to Section 5 of the CEA and the Commission’s regulations 

thereunder. The Exhibits must be labeled according to the items specified in this Form 

DCM.

The application must include a Table of Contents listing each Exhibit required by this 

Form DCM and indicating which, if any, Exhibits are inapplicable. For any Exhibit that is 

inapplicable, next to the Exhibit letter specify “none,” “not applicable,” or “N/A,” as 

appropriate.

LIST OF EXHIBITS

EXHIBITS — BUSINESS ORGANIZATION

1. Attach as Exhibit A, the name of any person(s) who own(s) ten percent (10%) or 

more of the Applicant’s stock or who, either directly or indirectly, through agreement 

or otherwise, in any other manner, may control or direct the management or policies 

of Applicant.

Provide as part of Exhibit A the full name and address of each such person and 

attach a copy of the agreement or, if there is none written, describe the agreement 

or basis upon which such person exercises or may exercise such control or 

direction.

2. Attach as Exhibit B, a list of the present officers, directors, governors (and, in the 

case of an Applicant that is not a corporation, the members of all standing 

committees grouped by committee), or persons performing functions similar to any 

of the foregoing, of the designated contract market or of any entity that performs the 

regulatory activities of the Applicant, indicating for each:

1. Name

2. Title

3. Dates of commencement and termination of present term of office or position

4. Length of time each present officer, director, or governor has held the same office or

position

5. Brief account of the business experience of each officer and director over the last 

five (5) years

6. Any other business affiliations in the derivatives and securities industry
7. For directors, list any committees on which they serve and any compensation 

received by virtue of their directorship

8. A description of:

1) Any order of the Commission with respect to such person pursuant to Section 5e 

of

2) the CEA;

3) Any conviction or injunction against such person within the past ten (10) years;

4) Any disciplinary action with respect to such person within the last five (5) years;

5) Any disqualification under Sections 8b and 8d of the CEA;

6) Any disciplinary action under Section 8c of the CEA; and

7) Any violation pursuant to Section 9 of the CEA.

3. Attach as Exhibit C, a narrative that sets forth the fitness standards for the Board of 

Directors and its composition including the number and percentage of public 

directors.

4. Attach as Exhibit D, a narrative or graphic description of the organizational structure 

of the Applicant. Include a list of all affiliates of the Applicant and indicate the 

general nature of the affiliation. Note: If the designated contract market activities of 

the Applicant are or will be conducted primarily by a division, subdivision, or other 

separate entity, corporation or organization, describe the relationship of such entity 

within the overall organizational structure and attach as Exhibit D a description only 

as it applies to the division, subdivision or separate entity, as applicable. 

Additionally, provide any relevant jurisdictional information, including any and all 

jurisdictions in which you or any affiliated entity are doing business, and registration 

status, including pending applications (e.g., country, regulator, registration category, 

date of registration). Provide the address for legal service of process for each 

jurisdiction, which cannot be a post office box.

5. Attach as Exhibit E, a description of the personnel qualifications for each category 

of professional employees employed by the Applicant or the division, subdivision, or 

other separate entity within the Applicant as described in Item 4.

6. Attach as Exhibit F, an analysis of staffing requirements necessary to carry out 

operations of the Applicant as a designated contract market and the name and 

qualifications of each key staff person.

7. Attach as Exhibit G, a copy of the constitution, articles of incorporation, formation or

association with all amendments thereto, partnership or limited liability agreements, 

and existing by-laws, operating agreement, rules or instruments corresponding 

thereto, of the Applicant. Include any additional governance fitness information not 

included in Exhibit C. Provide a certificate of good standing dated within one week of 

the date of this Form DCM.

8. Attach as Exhibit H, a brief description of any material pending legal proceeding(s), 

other than ordinary and routine litigation incidental to the business, to which the 

Applicant or any of its affiliates is a party or to which any of its or their property is the 
subject. Include the name of the court or agency where the proceeding(s) are 

pending, the date(s) instituted, the principal parties involved, a description of the 

factual basis alleged to underlie the proceeding(s), and the relief sought. Include

similar information as to any proceeding(s) known to be contemplated by the 

governmental agencies.

EXHIBITS — FINANCIAL INFORMATION

9. Attach as Exhibit I:

1. (i) Balance sheet, (ii) Statement of income and expenses, (iii) Statement of cash 

flows, and (iv) Statement of sources and application of revenues and all notes or 

schedules thereto, as of the most recent fiscal year of the Applicant, or of its 

parent company, if applicable. If a balance sheet and any statement(s) certified 

by an independent public accountant are available, that balance sheet and 

statement(s) should be submitted as Exhibit I.

2. Provide a narrative of how the value of the financial resources of the Applicant is 

at least equal to a total amount that would enable the Applicant to cover its 

operating costs for a period of at least one year, calculated on a rolling basis, and 

whether such financial resources include unencumbered, liquid financial assets 

(i.e. cash and/or highly liquid securities) equal to at least six months’ operating 

costs.

3. Attach copies of any agreements establishing or amending a credit facility, 

insurance coverage, or other arrangement evidencing or otherwise supporting 

the Applicant’s conclusions regarding the liquidity of its financial assets.

4. Representations regarding sources and estimates for future ongoing operational 

resources.

10.Attach as Exhibit J, a balance sheet and an income and expense statement for 

each affiliate of the designated contract market that also engages in designated 

contract market activities as of the end of the most recent fiscal year of each such 

affiliate, and each affiliate of the designated contract market that engages in swap 

execution facility activities.

11.Attach as Exhibit K, the following:

1. A complete list of all dues, fees and other charges imposed, or to be Imposed, by 

or on behalf of Applicant for its designated contract market services that are 

provided on an exclusive basis and identify the service or services provided for 

each such due, fee, or other charge.

2. A description of the basis and methods used in determining the level and 

structure of the dues, fees and other charges listed in paragraph (a) of this item.

3. If the Applicant differentiates, or proposes to differentiate, among its customers, 

or classes of customers in the amount of any dues, fees, or other charges 

imposed for the same or similar exclusive services, so state and indicate the 
amount of each differential. In addition, identify and describe any differences in 

the cost of providing such services, and any other factors, that account for such 

differentiations.

EXHIBITS — COMPLIANCE

12.Attach as Exhibit L, a narrative and any other form of documentation that may be 

provided under other Exhibits herein that describe the manner in which the Applicant 

is able to comply with each core principle. Such documentation must include a 

regulatory compliance chart setting forth each core principle and providing citations 

to the Applicant’s relevant rules, policies, and procedures that address each core 

principle. To the extent that the application raises issues that are novel, or for which

compliance with a core principle is not self-evident, include an explanation of how 

that item and the application satisfy the core principles. Applicant must include a 

description of how it meets the definition of “Board of Trade” as defined in §1a(2) of 

the CEA.

13.Attach as Exhibit M, a copy of the Applicant’s rules (as defined in § 40.1 of the

Commission’s regulations) and any technical manuals, other guides or instructions 

for users of, or participants in, the market, including minimum financial standards for 

members or market participants. Include rules citing applicable federal position 

limits and aggregation standards in Part 150 or 151, as applicable, of the 

Commission’s regulations and any exchange set position limit rules. Include rules on

publication of daily trading information with regards to the requirements of Part 16 of 

the Commission’s regulations. The Applicant should include an explanation, and 

any other forms of documentation the Applicant thinks will be helpful to its 

explanation, demonstrating how its rules, technical manuals, other guides or 

instructions for users of, or participants in, the market, or minimum financial 

standards for members or market participants as provided in this Exhibit M help 

support the designated contract market’s compliance with the core principles.

14.Attach as Exhibit N, executed or executable copies of any agreements or contracts 

entered into or to be entered into by the Applicant, including third party regulatory 

service provider or member or user agreements that enable or empower the 

Applicant to comply with applicable core principles. Identify: (1) the services that will 

be provided; and (2) the core principles addressed by such agreement.

15.Attach as Exhibit O, a copy of any compliance manual, and any other documents, 

that describe with specificity the manner in which the Applicant will conduct trade 

practice, market and financial surveillance.

16.Attach as Exhibit P, a description of the Applicant’s disciplinary and enforcement 

protocols, tools, and procedures and the arrangements for alternative dispute 

resolution.
17.Attach as Exhibit Q, a description of the Applicant’s trading system and trade 

matching algorithm, and examples of how that algorithm works in various trading 

scenarios involving various types of orders.

18.Attach as Exhibit R, a list of rules prohibiting specific trade practice violations.

19.Attach as Exhibit S, a discussion of how trading data will be maintained by the 

designated contract market.

20.Attach as Exhibit T, a list of the name of the clearing organization(s) that will be 

clearing the Applicant’s trades, and a representation that clearing members of that 

organization will be guaranteeing such trades.

21.Attach as Exhibit U, any information (described with particularity) included in the 

application that will be subject to a request for confidential treatment pursuant to § 

145.9 of the Commission’s regulations.

EXHIBITS -OPERATIONAL CAPABILITY

22.Attach as Exhibit V, information responsive to the Technology Questionnaire (link). 

This questionnaire focuses on information pertaining to the Applicant’s program of 

risk analysis and oversight. Main topic areas include: information security; business 

continuity-disaster recovery planning and resources; capacity and performance 

planning; systems operations; systems development and quality assurance; and 

physical security and environmental controls.