1. Regulatory Compliance. No Participant or any of its Authorized Users and no Clearing Member shall engage in conduct that is a violation of the CEA or CFTC Rules, the Rules of the Exchange or the rules of the Clearinghouse and will conduct its business in accordance with all applicable laws, regulations, tariffs and rules, and in good faith, with a commitment to honest dealing.

2. Fraud. No Participant or any of its Authorized Users and no Clearing Member shall engage or attempt to engage in any fraudulent act or engage or attempt to engage in any scheme to defraud, deceive, trick or mislead in connection with or related to any Exchange or Clearinghouse activity.

3. Good Faith. No Participant or any of its Authorized Users shall knowingly enter, or cause to be entered, bids or offers into the system other than in good faith for the purpose of executing bona fide transactions.

4. Transaction Integrity. Participants and their Authorized Users shall honor the terms and conditions of the Participant Agreement and will transact in Contracts only for legitimate business purposes, such as managing business risk or that otherwise have economic substance.

5. Antitrust. No Participant or any of its Authorized Users and no Clearing Member shall collude with other market participants to affect the price or supply of any commodity or Contracts, or otherwise unlawfully restrain competition.

6. Risk Management. Participants and Clearing Members shall adopt, adhere to and enforce risk management and other policies and structures that are designed to ensure that trading activities are conducted in accordance with the Rules.

1. Skills. Each Participant and Authorized User is responsible for understanding all factors that influence the markets in Contracts in order to maintain a high level of competence in its trading.

2. Rules. The Exchange will provide updates and amendments to these Rules and notices or advisories regarding the application and interpretation of these Rules. It is the obligation of each Participant and its Authorized User to ensure these documents are read and understood. It shall be prohibited for a Participant and its Authorized Users to violate any Rule or any agreement made with the Exchange, or to engage in fraud, dishonorable or dishonest conduct, or conduct which is inconsistent with just and equitable principles of trade, even where a Rule does not specifically reference "Participant" or "Authorized User."

3. Price Manipulation, Fictitious, Non-Competitive or Artificial Transactions. No Participant or Authorized User shall (1) effect or induce (or attempt to effect or induce) the purchase or sale of any Contract for the purpose of creating or inducing a false, misleading, or artificial appearance of activity in such Contract, or for the purpose of unduly or improperly influencing the market price of such Contract or for the purpose of making a price which does not reflect the true state of the market in such Contract, (2) effect or induce (or attempt to effect or induce) any conduct proscribed by CEA section 9(a)(2) in any Contract. No Participant or Authorized User shall arrange and execute simultaneous offsetting buy and sell Orders in a Contract with the intent to artificially affect reported revenues, trading volumes or prices.

4. Market Manipulation. No Participant or Authorized User shall (1) attempt to manipulate or manipulate the market in any Contract or (2) engage in any conduct proscribed by CEA section 9(a)(2). No Participant or Authorized User shall directly or indirectly participate in or have any interest in the profit of a manipulative operation or knowingly manage or finance a manipulative operation. This includes any pool, syndicate, or joint account, whether in corporate form or otherwise, organized or used intentionally for the purposes of unfairly influencing the market price of any Contract.

5. Market Disruption. Orders entered on the Exchange for the purpose of upsetting the equilibrium of the market in any Contract or creating a condition in which prices do not or will not reflect fair market values are prohibited, and any Participant or Authorized User who makes or assists in entering any such Order with knowledge of the purpose thereof or who, with such knowledge, in any way assists in carrying out any plan or scheme for the entering of any such Order, will be deemed to have engaged in an act detrimental to the Exchange.

6. Disruptive Trading Practices.

   1. No Participant or Authorized User shall knowingly enter, or cause to be entered, bids, or offers into the Trading Platform other than in good faith for the purpose of executing bona fide transactions.

   2. No Participant or Authorized User shall enter an Order or market message, or cause an Order or market message to be entered, with:

      1. The intent to cancel the Order before execution, or modify the Order to avoid execution;

      2. The intent to mislead other market participants;

      3. The intent to overload, delay, or disrupt the systems of the Exchange or other market participants;

      4. The intent to disrupt the orderly conduct of trading, or the fair execution of transactions; and/or

      5. Reckless disregard for the adverse impact of the Order or market message.

   3. No Participant or Authorized User shall knowingly enter any bid or offer for the purpose of making a market price which does not reflect the true state of the market, or knowingly enter, or cause to be entered bids or offers other than in good faith for the purpose of executing bona fide transactions.

7. Prohibition on the Use or Attempted use of Manipulative and Deceptive Devices. No Participant, Authorized User or Clearing Member shall:

   1. use or employ, or attempt to use or employ, any manipulative device, scheme, or artifice to defraud;

   2. make, or attempt to make, any untrue or misleading statement of a material fact or to omit to state a material fact necessary in order to make the statements made not untrue or misleading;

   3. engage, or attempt to engage, in any act, practice, or course of business, which operates or would operate as a fraud or deceit upon any Person; or

   4. deliver or cause to be delivered, or attempt to deliver or cause to be delivered a false or misleading or inaccurate report concerning market information or conditions that affect or tend to affect the price of any commodity in interstate commerce, knowing, or acting in reckless disregard of the fact that such report is false, misleading or inaccurate. Notwithstanding the foregoing, no violation of this subsection shall exist where the Person mistakenly transmits, in good faith, false or misleading or inaccurate information to a price reporting service.

8. Gratuities. Except with the prior written approval of the Chief Regulatory Officer, no Participant, Authorized User or Clearing Member shall, directly or indirectly, give or permit to be given anything of value, including gifts and gratuities, to an Official in an amount that exceeds the maximum value permitted by the Exchange and the Clearinghouse gifts and entertainment policy.

9. Rumors. No Participant, Authorized User or Clearing Member shall knowingly circulate, in any manner, rumors of a character which might affect market conditions in any Contract; provided, however, that this shall not prohibit discussion of unsubstantiated information, so long as its source and unverified nature are disclosed.

10. False Reports. No Participant, Authorized User or Clearing Member shall make any knowing misstatement of a material fact to the Exchange, the Clearinghouse, any Official, or any Board committee or panel.

11. Wash Sales. No Participant or Authorized User shall place or accept buy and sell Orders in the same Contract and expiration month, where known or reasonably should know that the purpose of the Orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell Orders by Participants or Authorized Users that are entered with the intent to negate market risk or price competition shall be deemed to violate the prohibition on wash trades. Additionally, no Participant or Authorized User shall knowingly execute or accommodate the execution of such Orders by direct or indirect means.

12. Financial Condition. No trading will be conducted for the purpose of misrepresenting the financial condition of a Participant or Authorized User.

13. Acts Detrimental to the Exchange or the Clearinghouse. No Participant, Authorized User or Clearing Member shall engage in any act that is detrimental to the Exchange or the Clearinghouse.

14. Misuse of the Exchange or the Clearinghouse. No Participant, Authorized User or Clearing Member shall permit the unauthorized use of the Exchange or the Clearinghouse, to assist any Person in obtaining unauthorized access to the Exchange or the Clearinghouse, to trade on the Exchange without an agreement and an established account with a Clearing Member, to alter the equipment associated with the Exchange or the Clearinghouse (except with the Exchange or the Clearinghouse written consent), to interfere with the operation of the Exchange or the Clearinghouse, to intercept or interfere with information provided thereby, or in any way to use the Exchange or the Clearinghouse in a manner contrary to the Rules.

15. Supervision. A Participant shall establish, maintain and administer reasonable supervisory procedures to monitor the compliance of Authorized Users and supervised persons with the Rules and any applicable provisions of the CEA and CFTC Rules and such Participant may be held accountable for the actions of such Authorized Users or supervised persons.

16. Disclosing Order Information. No Participant or Authorized User shall disclose an Order to buy or sell, except to a designated Exchange Official or the CFTC or as necessary to efficiently execute the Order nor shall any Participant solicit or induce another Participant or Authorized User to disclose Order information. No Person shall take action or direct another to take action based on non-public Order information, however acquired. The mere statement of opinions or indications of the price at which a market may open or resume trading does not constitute a violation of this rule.

1. No Person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any Transaction, except as provided in Rule 403.2.

2. Participants and Authorized Users may engage in pre-execution communications with regard to transactions executed or to be executed on the Exchange if one party (the first party) wishes to be assured that a contra party (the second party) will take the opposite side of the first party's Order, subject to the following restrictions:

   1. A party may not engage in pre-execution communications with other market participants on behalf of another party unless the party for whose benefit the trade is being made has previously consented to permit such communications.

   2. Parties to pre-execution communications shall not disclose to a non-party the details of such communications or enter an Order to take advantage of information conveyed during such communications except in accordance with this rule.

   3. The first party's Order must be entered into the Exchange first, and the second party's Order may not be entered into the Exchange until a period of fifteen (15) seconds has elapsed from the time entry of the first Order.

3. Each Participant and Clearing Member shall not engage in any conduct that has the intent or effect of creating a false or misleading appearance of market activity or market depth.

4. Each Participant and Clearing Member shall not engage in any conduct that has the intent or effect of manipulating the market or the price of any Contract.

5. Each Participant and Clearing Member shall not engage in any conduct that has the intent or effect of disrupting the market or the price of any Contract.

1. All access denials, suspensions, expulsions, and other restrictions imposed upon a Participant or any of its Authorized Users or a Clearing Member by the Exchange or the Clearinghouse pursuant to a Disciplinary Action shall restrict with equal force and effect, access to, and use of, the Exchange or the Clearinghouse.

2. The Exchange, at its sole discretion, shall have the right to summarily terminate the connection of any Participant or the access of any Trading Account or User ID to the Exchange. Additionally, the Exchange, at its sole discretion, shall have the right to direct a Participant to immediately terminate access to the Exchange any of such Participant's Authorized Users.

1. The Exchange may adopt and require Participants to adhere to position limits for Contracts. If so adopted, the Exchange may, in its sole discretion, grant exemptions from position limits for bona fide hedging transactions and positions in accordance with CFTC Rules. A Person seeking an exemption from position limits must apply to the Compliance Department in the form and manner required by the Exchange.

2. The CFTC may also from time to time establish position limits for Contracts traded pursuant to these Rules. For any such Contract subject to a position limit set by the CFTC, the Exchange shall not set its position limit at a level higher than the CFTC's limit.

3. For purposes of aggregation, no market participant shall own or control any combination of futures and options contracts that exceeds the contract specification's net long or short in any single contract month. In determining whether any market participant has exceeded the position limits, all positions in accounts for which such market participant by power of attorney or otherwise directly or indirectly holds positions or controls trading will be included with the positions held by such market participant. Position limits will apply to positions held by two 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.

4. The position limit levels for those Contracts with position limits are set forth in the product rules.

A Person who holds or controls aggregate positions in a Contract in excess of the position accountability levels relating to that Contract set out in the product rules shall be subject to the following provisions:

1. Such Person shall provide, in a timely manner upon request by the Compliance Department, information regarding the nature of the position, trading strategy, and hedging information if applicable.

2. Such Person shall, if so ordered by the Compliance Department, acting in its discretion, liquidate or not increase further the positions which exceed such levels.

3. Such positions must be initiated and liquidated in an orderly manner.

4. This Rule shall not limit the jurisdiction of the Exchange or the Clearinghouse to take action that it determines necessary or appropriate in respect of any positions on the Exchange or the Clearinghouse.

1. Upon request, Clearing Members must provide the Compliance Department with information, in a form and manner acceptable to the Compliance Department, identifying the owner, any controlling parties and any additional required information for each reportable account.

2. Each Clearing Member shall submit to the Exchange (i) a daily report of all positions that exceed the reportable position levels set forth in the product rules and (ii) a copy of the CFTC Form 102 filed by the Participant or Clearing Member with the CFTC for such Participant's or Clearing Member's Customers' reportable accounts. The Form 102 shall be submitted to the Exchange no later than the Business Day following the date on which the account becomes reportable.

3. Positions in Exchange products at or above the reportable level set forth in the product rules trigger reportable status. For a Participant in reportable status, all positions, regardless of size, in relevant Exchange products must be reported to the Exchange, in addition to any regulatory obligations a Participant may have separate and apart from these Rules.

For purposes of Rule 405, Rule 406 and Rule 407, positions in Contracts shall be aggregated in accordance with CFTC Rules.

The reporting levels, position accountability levels and position limits for Contracts are found in the product rules.

Markets depend on trust in the accuracy of market information provided by Participants and Clearing Members and in the transparency of market behavior of all market participants.

Participants and Clearing Members will act in accordance with these practices for information disclosure and documentation with regard to its Exchange or Clearinghouse activity:

1. Provide information relating to Contracts to regulators in compliance with all applicable rules and requirements and continue to cooperate with regulators as reasonably necessary to assist in their understanding of the markets.

2. Ensure that any information disclosed to the Exchange or the Clearinghouse is accurate and consistent. No existing or prospective Participant or Clearing Member shall make any false statements or misrepresentations in any application, report or other communication to the Exchange or the Clearinghouse.

Each Participant will have a compliance program commensurate with the size and scope of its trading activities on the Exchange and designed to ensure appropriate, timely and ongoing review of trading practices and compliance with the Rules.

Participants and Clearing Members will act in accordance with these practices for compliance and monitoring with regard to its Exchange and Clearinghouse activity:

1. Provide for proper training of personnel on the provisions of the Rules.

2. Maintain internal policies and procedures to promote compliance with the Rules.

3. Promptly disclose to the Exchange the details of any violations of the Rules involving Participant's activities on the Exchange or provision of market information to the Exchange or any of its Affiliates.

4. Provide an environment that encourages employees within the Participant's or Clearing Member's organization to engage in safe and confidential discussions and to disclose to senior management any trading practices that might violate the Rules.

5. Require any consultant, contractor and/or subcontractor to disclose all financial affiliations and conflict of interests with Participants, Clearing Members, the Exchange, the Clearinghouse and its affiliates. Ensure that consultants, contractors or subcontractors do not cause any disclosure of information in violation of any Rule and that confidentiality agreements are in effect where appropriate.

6. Establish clear lines of accountability for the Participant's or Clearing Member's trading practices, including provisions relating to the responsibilities of corporate officers, with appropriate oversight by the Participant's or Clearing Member's board of directors or other senior corporate management committee.