Spot Trading

Spot Contracts Offered.

1. Authorization and Treatment. The Exchange is authorized to designate for listing and trading commodity spot contracts ("Spot Contracts"), including where applicable, those Spot Contracts that constitute retail commodity transactions, as defined in CEA Section 2(c)(2)(D), 7 U.S.C. 2(c)(2)(D). Subject to the rules herein, all Spot Contracts shall be treated by the Exchange as if they are futures contracts.

2. Actual Delivery Exemption. The Exchange shall treat all Spot Contracts as retail commodity transactions regardless of whether any individual transaction may ultimately qualify for the actual delivery exemption under CEA Section 2(c)(2)(D)(ii)(III)(aa), 7 U.S.C. 2(c)(2)(D)(ii)(III)(aa).

Financing.

1. Availability. Financing may be offered to Customers and Participants specifically for the purpose of funding trading and settlement activity related to Exchange Spot Contracts. Such financing shall be contractual, documented in writing, and subject to inspection by the Exchange.

2. Lenders. Financing provided by a third-party lender, affiliate of an FCM, or other market participant shall constitute activity by a Person acting in concert with the Exchange so long as such financing is specifically for the purpose of funding trading and settlement activity related to Spot Contracts offered on the Exchange.

Clearing. Spot Contract transactions designated hereunder shall be subject to the mandatory clearing requirements set forth in CFTC Rule 38.601, 17 CFR § 38.601, and shall be cleared by the Clearinghouse as set forth in Chapter 8. Consistent with CEA Section 2(c)(2)(D), 7 U.S.C. 2(c)(2)(D), cleared Spot Contract customer collateral shall not be treated as segregated customer funds under CEA Section 4d, 7 U.S.C. 6d.

Settlement and Delivery. Spot Contracts shall be subject to the settlement and delivery procedures set forth in Chapter 11.