CME SEF Rulebook

1 I cme sef definitions .. 6. Chapter 1 Access .. 13. 101. ELIGIBILITY AND PARTICIPANT QUALIFICATION .. 102. CONTINUED ELIGIBILITY .. 103. AUTHORIZED BROKERS OR AUTHORIZED 104. AUTHORIZED TRADERS .. 105. PARTICIPANT APPLICATION 106. ACCESS PRIVILEGES OF A PARTICIPANT .. 107. CUSTOMERS .. 108. DUES, ASSESSMENTS AND FEES .. 109. NOTICES TO PARTICIPANTS .. 110. COMMUNICATIONS BETWEEN CME SEF AND PARTICIPANTS .. 111. DESCRIPTION OF PARTICIPANT'S STATUS .. 112. WITHDRAWAL OF A PARTICIPANT .. 113. ISVS .. 114. DISCLOSURES AND SUPERVISION.

2 115. ADDITIONAL DUTIES AND RESPONSIBILITIES OF SWAP DEALERS AND MAJOR SWAP PARTICIPANTS .. [RESERVED] . 123. COMPLIANCE WITH THE COMMODITY exchange ACT .. Chapter 2 Government .. 17. [RESERVED] .. BOARD OF DIRECTORS POWERS AND DUTIES .. 230. GENERAL .. 231. [RESERVED].. 232. CME SEF FACILITIES .. 233. [RESERVED].. 234. AVOIDING CONFLICTS OF INTEREST IN SIGNIFICANT ACTIONS .. [RESERVED].. CME SEF OFFICERS AND EMPLOYEES .. 256. INDEMNIFICATION OF CERTAIN PERSONS .. 257. CME SEF PHYSICAL EMERGENCIES .. Chapter 3 - CME SEF Committees.

3 20. 300. COMMITTEES .. Chapter 4 - Enforcement of Rules .. 22. 400. GENERAL PROVISIONS .. 401. THE CHIEF COMPLIANCE OFFICER .. 402. BUSINESS CONDUCT COMMITTEE .. 403. AUTHORIZED REPRESENTATIVES .. Copyright chicago mercantile exchange , Inc. All rights reserved. Page 1 of 63. 404. -05. [RESERVED].. 406. PROBABLE CAUSE COMMITTEE .. 407. INVESTIGATION, CHARGING MEMORANDUM AND NOTICE OF CHARGES .. 408. CONDUCT OF HEARINGS .. 409. LETTERS OF WARNING .. 410. [RESERVED].. 411. APPEAL TO A HEARING PANEL OF THE BOARD OF DIRECTORS.

4 412. 413. SUMMARY ACCESS DENIAL 414. INVESTIGATIONS BY OTHER SELF-REGULATORY ORGANIZATIONS .. 415. COOPERATION WITH OTHER EXCHANGES, SWAP EXECUTION FACILITIES AND CLEARING. ORGANIZATIONS AND INTERNATIONAL GOVERNMENT INFORMATION-SHARING AGREEMENTS .. 416. CONFLICTS OF INTEREST .. 417. PROHIBITED COMMUNICATIONS .. 418. CONSENT TO CME SEF JURISDICTION .. [RESERVED].. 432. GENERAL OFFENSES .. 433. STRICT LIABILITY FOR THE ACTS OF AGENTS .. 434. [RESERVED].. 435. EFFECT OF SUSPENSION OR EXPULSION .. 436. [RESERVED].. 437. NOTICE OF DISCIPLINE.

5 438. [RESERVED].. 439. PARTICIPANT'S INDEMNIFICATION LIABILITY .. 440. CLAIMS BY PARTICIPANTS .. 441. COMMUNICATIONS WITH THE PUBLIC AND PROMOTIONAL MATERIAL .. 442. NOTIFICATION OF SIGNIFICANT EVENTS .. 443. [RESERVED].. 444. PAYMENTS OF DISCIPLINARY FINES, DISGORGEMENT ORDERS AND RESTITUTION .. Chapter 5 - Qualifications for Execution and Trading Practices .. 36. 500. SCOPE .. 501. AUTHORIZED TRADERS .. 502. INFORMATION PROVIDED BY PARTICIPANTS . TRADING QUALIFICATIONS AND REGULATIONS .. 512. REPORTING INFRACTIONS .. 513.

6 [RESERVED].. 514. RECORDING OF COMMUNICATIONS .. 515. DIRECT ACCESS BY CUSTOMERS, NON-PARTICIPANTS PROHIBITED .. [RESERVED] .. TRADING PRACTICES .. Copyright chicago mercantile exchange , Inc. All rights reserved. Page 2 of 63. 520. TRADING CONFINED TO CME SEF FACILITIES .. 521. REQUIRED TRANSACTIONS .. 522. [RESERVED].. 523. PERMITTED TRANSACTIONS .. 524. 525. PRE-EXECUTION CREDIT CHECKS.. 526. BLOCK TRADES .. 527. ERRORS AND MISHANDLING OF CUSTOMER ORDERS .. 528. SWAP DATA REPOSITORY AND COMMISSION REPORTING .. 529. WITHHOLDING ORDERS PROHIBITED.

7 530. PRIORITY OF CUSTOMERS' ORDERS .. 531. TRADING AGAINST CUSTOMERS' ORDERS PROHIBITED .. 532. DISCLOSING ORDERS PROHIBITED .. 533. SIMULTANEOUS BUY AND SELL ORDERS FOR DIFFERENT BENEFICIAL OWNERS .. 534. WASH TRADES PROHIBITED .. 535. [RESERVED].. 536. RECORDKEEPING REQUIREMENTS FOR GLOBEX OR CME DIRECT, AND NEGOTIATED TRADES .. 537. DATA SUBMITTED TO CME SEF .. 538. [RESERVED].. 539. PREARRANGED, PRE-NEGOTIATED AND NONCOMPETITIVE TRADES PROHIBITED .. 540. RESPONSIBILITY FOR CUSTOMER ORDERS .. [RESERVED].. 543. RESTRICTIONS ON ACCESS FOR SANCTIONED PARTIES AND JURISDICTIONS.

8 [RESERVED]. 547. DISCRETIONARY ORDERS .. 548. PRIORITY OF EXECUTION .. [RESERVED].. 553. AVERAGE PRICE SYSTEM .. [RESERVED].. 559. POSITION LIMITS AND EXEMPTIONS .. 560. POSITION ACCOUNTABILITY .. 561. REPORTS OF LARGE POSITIONS .. 562. POSITION LIMIT [RESERVED].. GLOBEX OR CME DIRECT ELECTRONIC TRADING SYSTEM RULES .. 574. GLOBEX OR CME DIRECT ACCESS RESTRICTIONS .. 575. DISRUPTIVE PRACTICES 576. IDENTIFICATION OF GLOBEX OR CME DIRECT TERMINAL OPERATORS .. 577. [RESERVED].. Copyright chicago mercantile exchange , Inc. All rights reserved.

9 Page 3 of 63. 578. LIMITATION OF LIABILITY, NO WARRANTIES .. 579. GLOBAL COMMAND CENTER ( GCC ) .. 580. CME GLOBEX OR CME DIRECT TRADE MATCHING ALGORITHMS .. [RESERVED].. 588. TRADE CANCELLATIONS AND PRICE ADJUSTMENTS .. 589. REGULATORY SERVICES PROVIDER .. Chapter 6 - 52. JURISDICTION .. 600. DISPUTES SUBJECT TO CME ARBITRATION .. 601. CLAIMS .. FILING PROCEDURES .. 602. INITIATING AN ARBITRATION CLAIM .. 603. ANSWERING AN ARBITRATION CLAIM .. 604. FAILURE TO 605. COUNTERCLAIMS, CROSS-CLAIMS AND THIRD-PARTY CLAIMS .. 606.

10 REVIEW OF ARBITRABILITY .. 607. CONSOLIDATION OF ARBITRATION DISPUTES .. 608. WITHDRAWAL OF CLAIMS .. 609. PERIOD OF ELIGIBILITY FOR ARBITRATION .. 610. PARALLEL PROCEEDINGS .. PRE-HEARING PROCEDURES .. 611. REQUESTS FOR DOCUMENTS, INFORMATION OR TESTIMONY .. 612. DOCUMENTS AND WITNESSES TO BE PRESENTED AT HEARING .. 613. ADDITIONAL PROCEDURES .. HEARINGS .. 614. ARBITRATION 615. HEARING PROCEDURES .. DECISIONS .. 616. 617. CORRECTION OF AWARD .. 618. SATISFACTION OF AWARD1 .. APPEALS .. 619. APPEALS .. 620. STANDARDS AND PROCEDURES FOR REVIEW UPON APPEAL.