1. All Contracts shall be cleared through the Clearinghouse in accordance with the Rules. The clearing services provided by the Clearinghouse with respect to any Contract, and the rights and obligations of purchasers and sellers under cleared Contracts (including rights and obligations in respect of clearing and settlement, Margin payments and performance at maturity), will be governed by the Rules.

2. Immediately upon execution of an Exchange Transaction as provided in Rule 504.8, such Transaction shall be discharged and novated in accordance with the Rules. Open positions in any Contract may only be offset by opposite Transactions in the same Contract that are executed on the Exchange.

3. The Clearinghouse shall have the right to reject Contracts that arise from Transactions and to suspend clearing of such Transactions without notice, in accordance with the rules of the Clearinghouse.

4. A Clearing Member may transfer a Contract to another Clearing Member only upon notice to the Exchange and in accordance with the Rules.

1. Each Participant must assist its Clearing Member, if any, and the Clearinghouse, in the clearing of its Transactions in Contracts. Without limiting the generality of the foregoing, each Participant must provide its Clearing Member, if any, with a telephone number so that such Participant may be reached at any time during the day in the event that there is a discrepancy in the clearing of a Transaction. If the Participant is not present at the time specified above, such Participant's Clearing Member, if any, will be authorized to resolve any discrepancy in the manner it deems appropriate, but such resolution will not be relevant to the determination of the liability of any party to the trade.

1. The Clearinghouse shall have one category of Clearing Membership: Clearing Members that are FCMs. The Clearinghouse may approve a firm to be a Clearing Member and the Clearinghouse may revoke Clearing Member approval at any time.

2. Clearing Membership may be approved and maintained only when the terms and conditions set forth below have been met and continue to be met as determined by the Clearinghouse:

   1. The Clearing Member is a corporation, limited liability company, partnership or other entity in good standing in its jurisdiction of formation;

   2. The Clearing Member is qualified to conduct business in the State of Illinois or have an agency agreement in place with an entity qualified in the State of Illinois that provides an agent for service of process and other communications from the Clearinghouse in connection with the business of the Clearing Member;

   3. The Clearing Member is in compliance with the Clearing Member Agreement.

   4. The Clearing Member is in compliance with the Rules;

   5. The Clearing Member is in good financial standing and meets the minimum financial requirements established by the Clearinghouse;

   6. The Clearing Member has the personnel and systems to effectively conduct its business with the Clearinghouse;

   7. The Clearing Member has established satisfactory relationships with, and designated to the Clearinghouse, a bank or trust company designated by the Board of the Clearinghouse for confirmation and payment of all Initial Margin, variation margin and other settlements with the Clearinghouse (an "Approved Financial Institution");

   8. The Clearing Member has adequate operational capabilities, including the ability to process expected peak volumes and values within required time frames, fulfill Collateral payment and delivery obligations imposed by the Clearinghouse and participate in Default management activities; and

   9. The Clearing Member is registered as a FCM with the CFTC, is a member of NFA, and meets all applicable requirements under the CEA and the CFTC's rules, including, but not limited to, risk management procedures, requirements relating to minimum net capital, financial reporting, and recordkeeping, as determined by the Clearinghouse.

3. The Clearing Member shall immediately notify the Clearinghouse if any of the foregoing requirements are not true and accurate.

4. The Board of the Clearinghouse may grant exemptions to the requirements for membership in Rule 803 if the Clearinghouse determines that an exemption would not jeopardize the financial integrity of the Clearinghouse.

1. Any Person desiring to become a Clearing Member shall execute a Clearing Member Agreement and submit an application in such form as shall be prescribed by the Clearinghouse, which shall include a certification that the applicant has received, reviewed and agrees to abide by the Rules and perform the duties and responsibilities of a Clearing Member.

2. Only Persons found to meet the qualifications set forth in Rule 803 will be permitted to be Clearing Members. For the purpose of determining whether any applicant or Clearing Member is so qualified, the Clearinghouse may examine the books and records of any applicant or Clearing Member and may take such other steps as it may deem necessary to assess the qualifications of an applicant or Clearing Member. An applicant for Clearing Member status shall be conclusively deemed to have agreed to have no recourse against the Clearinghouse in the event that its application to become a Clearing Member is rejected.

3. An applicant that fails to be approved for membership shall be informed by the Clearinghouse and shall have five (5) Business Days thereafter to file an appeal to the Board of the Clearinghouse seeking further consideration. The Board of the Clearinghouse may approve the applicant by a majority vote if it determines that the decision to deny the application was in error.

1. A Clearing Member may request to begin the withdrawal process as a Clearing Member upon written notice in a form and manner specified by the Clearinghouse. The Clearinghouse will process the formal withdrawal request within 30 days of receipt of the withdrawal form. Within or prior to the 30-day period, the Clearing Member will remain subject to all obligations of a Clearing Member under the Rules.

2. A Clearing Member that has provided the Clearinghouse with notice that it seeks to withdraw its status is subject to the following requirements, obligations and provisions:

   1. the Clearing Member must use all reasonable efforts to close-out all of house and customer open positions;

   2. after notifying the Clearinghouse, the Clearing Member shall only be entitled to submit transactions for clearing which can be demonstrated to have the overall effect of reducing open positions in any Contract or risks to the Clearinghouse, whether by hedging, novating, transferring, terminating, liquidating or otherwise closing out such positions;

   3. the Clearinghouse may call for additional initial Margin until such time as all of such Clearing Member's open positions have been terminated, and such Clearing Member shall provide such additional initial Margin to the Clearinghouse as is requested in a timely manner;

   4. the withdrawing Clearing Member may be obligated to participate in Default auctions; and

   5. if there is a Default, the withdrawing Clearing Member in question shall remain liable for any unapplied assessments.

3. Any withdrawal notice issued by a Clearing Member shall be irrevocable by the Clearing Member and membership may only be reinstated pursuant to a new application for membership following the close-out of all house and customer open positions.

Each Clearing Member shall, and where applicable, shall cause all of its employees and agents to:

1. ensure that all funds deposited with the Clearinghouse on behalf of customers of a Clearing Member shall be held in an account identifiable as "customer segregated" in accordance with the CEA and CFTC Rule 1.20, as amended.

2. ensure that the investment all funds deposited with the Clearinghouse on behalf of customers of a Clearing Member comply with the investment standards of the CEA and CFTC Rule 1.25, as amended, including, but not limited to, concentration limits and permitted investments;

3. comply with and act in a manner consistent with the Rules and any rules of or agreement with a settlement facility, as applicable;

4. ensure that all clearing activity conducted by the Clearing Member is performed in a manner that is consistent with the Rules;

5. ensure that only the Clearinghouse's facilities are used to conduct clearing business pursuant to the Rules or which is required to be conducted pursuant to the Rules;

6. ensure that the Clearinghouse's facilities are used in a responsible manner and are not used for any improper or wrongful purpose;

7. meet all financial requirements required under the Rules;

8. guarantee and assume complete responsibility for all Contracts submitted by it or which it has authorized another Person to submit for clearing in its name;

9. observe high standards of integrity, market conduct, commercial honor, fair dealing and just and equitable principles of trade in the conduct of its clearing business with the Clearinghouse in the conduct of its business as a Clearing Member or any aspect of any business connected with or concerning the Clearinghouse;

10. immediately inform the Clearinghouse of any changes to the account information provided by the Clearing Member;

11. keep User IDs and passwords confidential;

12. promptly review and, as necessary, respond to all communications issued by the Clearinghouse;

13. keep, or cause to be kept, complete and accurate books and records as required to be maintained pursuant to the CEA and CFTC Rules for the time and in the manner specified by CFTC Rules; and make such books and records available for inspection by a representative of the Clearinghouse, the CFTC and other Governmental Authority of competent jurisdiction;

14. not knowingly mislead or conceal any material fact or matter in any dealings or filings with the Clearinghouse or in connection with a disciplinary action;

15. be responsible, even after it has withdrawn as a Clearing Member, for any violations of Rules committed by it while it was a Clearing Member;

16. cooperate with the Clearinghouse and any Governmental Authority in any inquiry, investigation, audit, examination or proceeding;

17. adopt, adhere to and enforce risk management and other policies and procedures that are designed to address the risks that the Clearing Member poses to the Clearinghouse and promptly provide, upon request by the Clearinghouse or the CFTC, information related to the risk management policies, procedures and practices of the Clearing Member;

18. coordinate with the Clearinghouse to develop and test business continuity and disaster recovery plans that enable effective resumption of daily processing, clearing and settlement following a disruption; and

19. develop and implement a written compliance program approved in writing by senior management of such Clearing Member that is reasonably designed to achieve and monitor the Clearing Member’s compliance with all applicable requirements of the Bank Secrecy Act (31 U.S.C. § 5311 et seq.), the International Emergency Economic Powers Act (50 U.S.C. § 1701 et seq.) (“IEEPA”), the Trading with the Enemy Act (50 U.S.C. App. § 1 et seq.) (“TWEA”), and the Executive Orders and Rules issued pursuant thereto, including the Rules issued by the U.S. Department of the Treasury and, as applicable, the CFTC. The compliance program shall, at a minimum:

    1. establish and implement policies, procedures and controls reasonably designed to assure compliance with all applicable provisions of the Bank Secrecy Act, IEEPA, TWEA, and all applicable Executive Orders and Rules issued pursuant thereto;
    2. provide for independent testing for compliance to be conducted by Clearing Member personnel or by a qualified outside party;
    3. designate an individual or individuals responsible for implementing and monitoring the day-to-day operations and internal controls of the program;
    4. and provide ongoing training for appropriate personnel.

1. Each Clearing Member shall file with the Clearinghouse:

   1. A financial statement in the form prescribed by the Clearinghouse within sixty (60) days after the end of such Clearing Member's fiscal year, together with a summary description in reasonable detail of the risk management, policies, procedures and systems that were maintained by such Clearing Member during such fiscal year and a financial statement in the form prescribed by the Clearinghouse within seventeen (17) days after the end of each month; and

   2. A copy of each financial statement, financial report, or notice pursuant to CFTC Rule 1.12, which it files with any Governmental Authority or Self-Regulatory Organization of which it is a member or participant at the same time it files such statement, report, or notice with any such Governmental Authority or Self-Regulatory Organization, and if such statement, report, or notice is other than a routine periodic statement, report, or notice required under the bylaws, rules or Rules of such entity, such copy shall be accompanied by a written statement, pursuant to CFTC Rule 1.12, setting forth (to the extent known) the reasons why such Clearing Member is filing such statement, report, or notice.

2. The financial statements required by this Rule shall be submitted on Form 1-FR-FCM or FOCUS Report Part II, provided that if the Clearing Member is not required to submit Form 1-FR-FCM or a FOCUS Report it must provide financial information in the form and manner prescribed by the Clearinghouse. The financial statement for the fiscal year of a Clearing Member shall be certified by an independent public accountant, and the monthly financial statements shall be certified by the president, the chief financial officer or a general partner of the Clearing Member.

3. Each Clearing Member shall file with the Clearinghouse such financial or other information, in addition to that which is explicitly required by this Rule, as may be requested by the Clearinghouse from time to time.

4. In the event that a Clearing Member: (1) fails to meet any obligation to deposit or pay any Margin or option premium when and as required by any clearing organization of which it is a member; (2) fails to be in compliance with any applicable financial requirements of any Governmental Authority or Self-Regulatory Organization; or (3) becomes the subject of a bankruptcy petition, receivership proceeding or the equivalent, such Clearing Member shall immediately so advise the Clearinghouse both telephonically and in writing.

1. A Clearing Member shall provide immediate notice to the Clearinghouse, orally and in writing, if the Clearing Member:

   1. gives notice to the CFTC pursuant to CFTC Rule 1.12 or to the Securities and Exchange Commission pursuant to Securities Exchange Act Rule 17a-11;

   2. changes its public accountants;

   3. fails to comply with additional accounting, reporting, financial and/or operational requirements prescribed by the Clearinghouse or Settlement Facility;

   4. an Initial Margin or Variation Margin call in any account exceeds the Clearing Member's excess adjusted net capital;

   5. is subject to any financial or business development that could materially affect the ability of the Clearing Member to comply with its obligations as a Clearing Member;

   6. any material damage to, or failure or inadequacy of, the systems, facilities or equipment of the Clearing Member to effect transactions pursuant to the Rules or to timely perform the Clearing Member's financial obligations under or in connection with Contracts;

   7. any failure by such Clearing Member, or any guarantor or commonly owned or controlled Clearing Member to perform on any of its material contracts, obligations or agreements;

   8. any determination that it, or any guarantor, will be unable to perform on any of its material contracts, guarantees, obligations or agreements;

   9. the Insolvency of such Clearing Member or of any guarantor thereof;

   10. the institution of any proceeding by or against the Clearing Member, any affiliate of the Clearing Member, or any Person with a beneficial ownership of greater than 5% in the Clearing Member, under any provision of the bankruptcy laws of the United States, or under the Securities Investor Protection Act of 1970, any other statute or equitable power of a court of like nature or purpose, in which such Clearing Member or Person is designated as bankrupt, debtor or equivalent, or if a receiver, trustee or similar official is appointed for the Clearing Member, such Person, or its or their property;

   11. the receipt by such Clearing Member, or the filing by such Clearing Member with a Self-Regulatory Organization, of a notice of material inadequacy; or

   12. the receipt by such Clearing Member from its independent auditors of an audit opinion that is qualified.

2. A Clearing Member must provide prompt written notice (but in no event, later than five (5) business days) to the Clearinghouse of:

   1. any change in its name, business address, telephone or facsimile number, electronic mail address, or any number or access code for any electronic communication device used by it to communicate with the Clearinghouse;

   2. any refusal of admission to, withdrawal of any application for membership in, any suspension, expulsion, bar, material fine, censure, denial of membership, registration or license, withdrawal of any application for registration, cease and desist order, temporary or permanent injunction, denial of trading privileges, or any other material sanction or discipline through an adverse determination, voluntary settlement or otherwise, by any Governmental Authority, Self-Regulatory Organization, Settlement Facility, or other business or professional association;

   3. the imposition of any restriction or limitation on the business conducted by the Clearing Member on or with any Self-Regulatory Organization other than restrictions or limitations imposed generally on all members of or participants in such Self-Regulatory Organization);

   4. any proposed change in the organizational or ownership structure or management of a Clearing Member, including any merger, combination or consolidation between the Clearing Member and another Person;

   5. the assumption or guaranty by the Clearing Member of all or substantially all of the liabilities of another Person in connection with a direct or indirect acquisition of all or substantially all of that Person's assets; or

   6. the sale of more than 20% of the Clearing Member's business or assets to another Person.

1. The Clearinghouse shall have authority, in its sole discretion, to take such action against any Clearing Member, including but not limited to terminating the Clearing Member Agreement and requiring the withdrawal of a Clearing Member, imposing enhanced capital requirements, imposing enhanced Margin requirements, prohibiting an increase or requiring a reduction in positions, and liquidating or transferring positions when, in the sole discretion of the Clearinghouse, such action is appropriate or necessary to manage one or more risks posed to the Clearinghouse by a Clearing Member.

2. If at any time the Clearinghouse, in its sole discretion, determines that there is a question as to a Clearing Member's good standing or financial condition, the Clearinghouse may suspend or take any other action to protect the best interests of the marketplace, other Clearing Members, the Exchange, and/or the Clearinghouse.

3. In the event the Clearinghouse is unable to obtain sufficient funds and liquidity to promptly meet same day settlement and payment through such means, the Clearinghouse may declare the occurrence of a liquidity event (each, a "Liquidity Event").

In the event the Clearinghouse requires liquidity to enable it to promptly meet all of its payment obligations to Clearing Members, the Clearinghouse will first attempt to obtain liquidity through the sale of any pledged securities, followed by the application of any uncommitted funding arrangements, and then through the use of its committed lines of credit, if any. In the event the Clearinghouse is unable to obtain sufficient funds and liquidity to promptly effect settlement and payment through such means, the Clearinghouse may declare the occurrence of a Liquidity Event. In such an event, the Clearinghouse shall have the authority in its sole discretion to take the following actions, in the order listed, to secure same day liquidity:

1. The Clearinghouse may substitute the cash deposited by one or more Clearing Members as Initial Margin with United States Treasury bills, Treasury notes and Treasury bonds ("Treasury Securities") held as Collateral by the Clearinghouse. The amount of cash substituted shall be equivalent to the market value of such Treasury Securities (determined by the Clearinghouse as of the latest mark, using a recognized third-party source, after the application of haircuts). Any Treasury Securities transferred pursuant to this paragraph (b) shall be applied as an Initial Margin deposit on behalf of any such Clearing Member whose cash was substituted and will be allocated pro rata among Clearing Members with cash deposits. For any substitution of Treasury Securities for cash as Initial Margin, the Clearinghouse will replace the cash within twenty-nine (29) Business Days of the date of the substitution.

2. The Clearinghouse may satisfy Variation Margin obligations to any Clearing Member that is a primary dealer (or that has an Affiliate that is a primary dealer) with Treasury Securities held as Collateral by the Clearinghouse at market value (determined by the Clearinghouse as of the latest mark, using a recognized third-party source, after the application of haircuts). To the extent that the Clearinghouse pays its Variation Margin obligations in Treasury Securities, if the receiving Clearing Member notifies the Clearinghouse the same day of the settlement that it will return the securities to the Clearinghouse on the next Business Day, then the Clearinghouse will pay on the next Business Day cash equal to the original value of the Clearinghouse's Variation Margin obligation.

3. In lieu of satisfying a payment owed from any auction, sale, or transfer of an Insolvent, Defaulted, or suspended Clearing Member's house account or customer account in cash to an auction winner, purchaser, or transferee, the Clearinghouse may satisfy such payment owed by transferring Treasury Securities at market value (determined by the Clearinghouse as of the latest mark, using a recognized third-party source, after the application of haircuts), equal to the amount of such obligation.

1. The Clearinghouse will coordinate with the Exchange and Clearing Members to accept or reject Contracts for clearing as quickly after execution as technologically practicable. The Clearinghouse will accept Contracts for clearing when such Contracts have been received by the Clearing System if the parties to such Contracts have clearing arrangements in place and have satisfied any applicable risk limits imposed by the Clearing Member, the Exchange or the Clearinghouse. Subject to the foregoing, the Clearinghouse shall accept for clearing any Contract that has been executed pursuant to the Rules and submitted by the Exchange to the Clearinghouse for clearance, and shall not accept for clearing any Exchange Contract submitted to it by any Person other than the Exchange. All Contracts accepted for clearing by the Clearinghouse shall be subject to these Rules.

2. The Clearinghouse, by accepting a Contract offered to it for clearing, shall assume, in the place of each Clearing Member that is a party to such Exchange Contract, all liabilities and obligations imposed by such Exchange Contract to the Clearing Member that is the other party thereto and shall succeed to and become vested with all rights and benefits accruing therefrom. Such assumption by the Clearinghouse shall terminate all liabilities and obligations of the Clearing Member whose Contract is so accepted to the other Clearing Member which was a party to such Contract.

3. The Clearinghouse shall be entitled to rely conclusively on the accuracy and authenticity of any information regarding any Contract submitted to the Clearinghouse by the Exchange on behalf of a Clearing Member, whether or not the Clearing Member in fact authorized the submission of such Contract for clearing.

4. Where, as the result of novation under this Rule, a Clearing Member has bought and sold Contracts for the same account with the same expiry or a put or call option with the same strike price and expiry, such purchase and sale will be offset by the Clearinghouse. Such a Clearing Member shall be required to pay the loss or entitled to collect the profit, as the case may be, upon such offsetting transactions, and shall have no further rights or be under any further obligation with respect thereto. For purposes of this Rule, the first Contract made shall be deemed the first Contract offset.

The Clearinghouse shall have a first lien and perfected security interest in, and right of setoff against, all Initial Margin, Variation Margin, Collateral and other property (including Contracts), and all proceeds of any of the foregoing, held in or for the accounts of a Clearing Member in connection with the financial obligations of such Clearing Member, however created, arising or evidenced, whether direct or indirect, absolute or contingent, existing, due or to become due.

1. All Settlement Prices will be determined solely by the Exchange.

2. In the absence of a clerical error, payments of funds or transfer of funds to and from the Clearinghouse, including, but not limited to, intraday and end of day Margin payments, delivery payments, and security deposits, are final and unconditional when effected and cannot be reversed.

3. Delivery failures are subject to the Exchange specific delivery rules for the respective Contract and are assigned by the Clearinghouse in a manner to minimize the number of Participants impacted and assigns failures by newest to oldest positions.

4. Clearing Members must use Approved Financial Institutions and Settlement Facilities approved for use by the Clearinghouse.

5. Clearing Members must pay Margin calls by the deadline set by the Clearinghouse. An extension of time for such payments may be granted in writing by the President of the Clearinghouse.

6. In the event a Clearing Member fails to perform its delivery obligations to the Clearinghouse, for the avoidance of doubt, Clearing Members will not, under any circumstances, be required to own, hold, or control the underlying asset under these Rules unless the Clearing Member holds positions requiring delivery in its own proprietary account, but Clearing Members are responsible for ensuring their customers, as Participants, are able to satisfy or satisfy their obligations regarding delivery and acceptance thereof under the applicable Rules.

7. In a Clearing Member default that involves a delivery failure, the Clearinghouse will ensure the financial performance to the Clearing Member whose actions or omissions did not cause or contribute to the delivery failure (the "Affected Clearing Member"). The Clearinghouse powers will include, but are not limited to, the right to sell or liquidate the underlying asset subject to delivery and to distribute the proceeds as appropriate and access the funds and collateral available in a default in accordance with Rule 817. For purposes of this Rule, "financial performance" means payment of commercially reasonable costs of the Affected Clearing Member related to replacing the failed delivery but does not include physical performance or legal fees. For the avoidance of doubt, payment of reasonable costs will be based on the price of the underlying asset when delivery should have been made, and the Clearinghouse is not obligated to make or accept delivery of the actual Digital Asset. Neither the Exchange nor the Clearinghouse will have any responsibility or liability to any Person for the use of, or any failure, error, action or omission of, the Settlement Facility.

8. An Affected Clearing Member seeking financial performance must provide prompt notice to the Clearinghouse of the delivery failure and a good faith estimate of any financial performance being sought within one (1) hour of the delivery deadline for the product. This deadline may be extended by the Exchange for extenuating circumstances in its sole discretion. An Affected Clearing Member seeking financial performance must provide the Clearinghouse with a detailed statement with supporting documentation of the amount sought, as well as any other documentation requested by the Clearinghouse.

9. Settlement Timelines:

   Final Physical Settlement Timeline

   Day	Time	Event
   T-3	9:00 a.m.	Settlement Facility opens to delivering market participants.
   T	10:00 a.m.	Trading terminates and final settlement prices are reported by the Exchange to the Clearinghouse. Clearing Members are responsible for ensuring all market participants making delivery deliver underlying assets through the Settlement Facility. All remaining open positions serve as a binding Delivery Notice to the Clearinghouse.
   	12:00 p.m.	Clearinghouse finalizes delivery assignments, releases delivery payments by instruction to the Settlement Bank, and releases underlying assets by instruction to the Settlement Facility. Delivery is complete and margins are released.
   	1:00 p.m.	The Settlement Facility and Settlement Bank process pays and collects.

   Daily Settlement Timeline

   Day	Time	Event
   T	3:15 p.m.	The Exchange reports daily settlement prices and the Clearinghouse snapshots positions to calculate margin requirements.
   	6:00 p.m.	The Clearinghouse submits initial and variation margin amounts to Clearing Members and the Settlement Bank system.
   T+1	9:30 a.m.	The Settlement Bank processes pays and collects.

   Intraday Settlement Timeline

   Intraday Settlements are performed on an as-needed basis and may not occur every trading day.

   Day	Time	Event
   T	11:30 a.m.	The Exchange reports daily settlement prices and the Clearinghouse snapshots positions to calculate margin requirements.
   	12:00 p.m.	The Clearinghouse submits initial and variation margin amounts to Clearing Members and the Settlement Bank system.
   	1:00 p.m.	The Settlement Bank processes pays and collects.

If any of the following events occurs with respect to a Clearing Member (each, a "Default"), the Clearing Member shall be in Default if the Clearing Member:

1. fails to fulfill any financial or other obligation to the Clearinghouse or the Exchange;

2. fails to pay when due any amount owing to the Clearinghouse or the Exchange;

3. fails to maintain its registration as a FCM;

4. fails to be a member of NFA;

5. is suspended from membership of, or participation in, any exchange, clearinghouse or Self-Regulatory Organization, or is suspended from dealings in Contracts by any Government Authority or Self-Regulatory Organization, or by act of any judicial authority;

6. makes a materially false misrepresentation, statement, or omission to the Clearinghouse or the Exchange;

7. files for bankruptcy or is deemed to be bankrupt under U.S. federal or state bankruptcy laws, or any comparable non-U.S. laws;

8. is Insolvent; or

9. becomes the subject of receivership proceedings, then such Clearing Member, in addition to any other remedy available to the Clearinghouse at law or equity, shall:

   1. be liable to the Clearinghouse as set forth in Rule 819; and

   2. be automatically and without further action suspended by the Clearinghouse as a Clearing Member, except that such suspension may be temporarily postponed by the President if the President determines that such suspension would not be in the best interests of the Clearinghouse.

In the event of a Clearing Member Default, all such Clearing Member's segregated customer accounts shall be auctioned according to Clearinghouse procedures. The financial amounts, if any, resulting from such auction shall be applied as follows to reduce or any eliminate any financial shortfall:

1. Defaulting Clearing Member. First, the financial amounts generated from the auction shall be applied to cover the shortfall. The Clearinghouse may make immediate demand upon any guarantor of the defaulting Clearing Member.

2. Clearinghouse. Second, the Clearinghouse Guaranty Fund contribution shall be applied to cover any remaining shortfall.

3. Non-Defaulting Clearing Members. Third, each non-Defaulting Clearing Member's guaranty fund contribution, if any, shall be assessed up to a maximum of $1,000,000 of the remaining shortfall and Guaranty Fund replenishment based on each Clearing Member's pro rata share of Margin requirements in relation to the Clearinghouse's aggregate Margin requirements. A Clearing Member that does not satisfy any such assessment shall be in Default.

4. Contract Extinguishment. Fourth, the Clearinghouse may partially or fully extinguish of Contracts.

If a Clearing Member is in Default, has been suspended by the Clearinghouse, or ceases to be a Clearing Member, then such Person shall be prohibited from establishing new positions and all open Contracts carried by the Clearinghouse for such Person shall be closed-out as expeditiously as practicable such that:

1. Open Contracts are transferred by the Clearing Member and accepted by one or more other Clearing Members, with the prior consent of the Clearinghouse, or transferred by the Clearinghouse to one or more other Clearing Members pursuant to an auction of the Contracts or other procedure instituted by the Clearinghouse;

2. Contracts subject to outstanding delivery obligations are Physically Settled or transferred by the Clearinghouse to one or more other Clearing Members pursuant to an auction of the Contracts or other procedure instituted by the Clearinghouse;

3. The President, or in the absence of the President, any Director, may determine that, in his or her opinion, liquidation be deferred for the protection of the financial integrity of the Clearinghouse; or

4. Open Contracts are liquidated in the manner set forth in Rule 817 to the extent that paragraphs (a), (b), or (c) do not apply.

The open Contracts of a Clearing Member that are required to be liquidated shall be liquidated in such manner as the Clearinghouse, in its sole discretion, may direct. Without limiting the generality of the foregoing:

1. Any such liquidation may be effected by executing block trades with one or more Clearing Members or Participants or by directly entering orders into the Exchange's trading platform for the purchase or sale of Contracts. The President may designate and authorize an individual, and may engage a third party, to be responsible for implementing such liquidation.

2. Notwithstanding any other provision herein, any such liquidation may be effected without placing orders for execution, by making appropriate book entries on the records of the Clearinghouse (including, without limitation, by pairing and canceling offsetting long and short positions in the Contracts carried by the Clearing Member) at a price equal to the Settlement Price on the day such liquidation is ordered or at such other price as the Board of the Clearinghouse may establish; provided, however, if an order for relief has been entered with respect to such Person and its property is thereby subject to the control of a bankruptcy court, the Clearinghouse will not effect any such liquidation by book entry except as may be permitted by CFTC Rules.

3. All liquidations made pursuant to this Rule shall be for the account and risk of the Person which ceases to be a Clearing Member or which is suspended as a Clearing Member. The Clearing Member shall be liable to the Clearinghouse for any commissions or other expenses incurred in liquidating such Contracts.

If at any time the Clearinghouse (i) institutes or has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding up or liquidation, and, in the case of any such proceeding or petition presented against it, such proceeding or petition results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for the Exchange's or Clearinghouse's winding-up or liquidation, or (ii) approves resolutions authorizing any proceeding or petition described in clause (i) above (collectively, a "Bankruptcy Event"), all open positions in the Clearinghouse shall be closed promptly.

If at any time the Clearinghouse fails to comply with an undisputed obligation to pay money or deliver property to a Clearing Member that is due and owing in connection with a transaction cleared by the or Clearinghouse, for a period of five (5) Business Days from the date that the or Clearinghouse receives notice from the Clearing Member of the past due obligation, the Clearing Member's open proprietary and customer positions at the Clearinghouse shall, at the election of that Clearing Member, be closed promptly.

If at any time the Board of the Clearinghouse determines, by virtue of the number of withdrawing Clearing Members or otherwise, that a winding up (offset) of all outstanding positions at the Clearinghouse is prudent, then all open positions at the Clearinghouse shall be closed promptly.

At such time as a Clearing Member's positions are closed:

1. The obligations of the Clearinghouse to a Clearing Member in respect of such Clearing Member's House Account, all Collateral and positions therein and deposits to the Guaranty Fund shall be netted, in accordance with the Bankruptcy Code, the CEA and CFTC Rules against the obligations of that Clearing Member in respect of its House Account, all Collateral and positions therein, its obligations as guarantor of the performance of its Customers and its then-matured obligations, if any, to the Guaranty Fund, to the Clearinghouse. For the avoidance of doubt, all of the property in a Clearing Member's House Account on deposit with the Clearinghouse shall be deemed to be subject to a single master netting agreement with the result that any excess which is on deposit with the Clearinghouse shall be applied to reduce any deficiency or obligation of the Clearing Member; and

2. All obligations of the Clearinghouse to a Clearing Member in respect of such Clearing Member's Customer Account and all positions and Collateral therein shall be separately netted against the positions, accounts and Collateral of such Clearing Member's customers in accordance with the requirements of the Bankruptcy Code, the CEA and CFTC Rules.

All positions that are open immediately before being closed in accordance with this Rule shall be valued in accordance with the following procedures:

1. As promptly as reasonably practicable, but in any event within 30 days of:

   1. the Bankruptcy Event,
   2. if a Clearing Member elects to have its open positions closed as described above, the date of the election, or
   3. the determination by the Board of Clearinghouse to wind-up all outstanding positions as described above, the Clearinghouse shall fix a U.S. dollar amount (the "Close-out Value") to be paid to or received from the Clearinghouse by each Clearing Member, after taking into account all applicable netting and offsetting pursuant to the provisions of this Rule.

2. The Clearinghouse shall value open positions subject to close-out by using the market prices at the moment that the positions were closed-out, assuming the markets were operating normally at such moment. If the markets were not operating normally at such moment, the Clearinghouse shall exercise its discretion, acting in good faith and in a commercially reasonable manner, in adopting methods of valuation to produce reasonably accurate substitutes for the values that would have been obtained from the market if it had been operating normally at the moment that the positions were closed-out.

3. In determining a Close-out Value, Clearinghouse may consider any information that it deems relevant, including but not limited to:

   1. prices for underlying interests in recent transactions, as reported by the market or markets for such interests,
   2. quotations from leading dealers in the underlying interest, setting forth the price (which may be a dealing price or an indicative price) that the quoting dealer would charge or pay for a specified quantity of the underlying interest,
   3. relevant historical and current market data for the relevant market, provided by reputable outside sources or generated internally, and
   4. values derived from theoretical pricing models using available prices for the underlying interest or a related interest and other relevant data.

4. Amounts stated in a currency other than U.S. dollars shall be converted to U.S. dollars at the current rate of exchange, as determined by the Clearinghouse.

5. If a Clearing Member has a negative Close-out Value, it shall promptly pay that amount to the Clearinghouse.

The Clearinghouse intends that certain provisions of this Rule be interpreted in relation to certain terms (identified by quotation marks) that are defined in the Federal Deposit Insurance Corporation Improvement Act of 1991 ("FDICIA"), as amended, as follows:

1. The Clearinghouse is a "clearing organization."

2. An obligation of a Clearing Member to make a payment to the Clearinghouse, or of the Clearinghouse to make a payment to a Clearing Member, subject to a netting agreement, is a "covered clearing obligation" and a "covered contractual payment obligation."

3. An entitlement of a Clearing Member to receive a payment from the Clearinghouse, or of the Clearinghouse to receive a payment from a Clearing Member, subject to a netting contract, is a "covered contractual payment entitlement."

4. The Clearinghouse is a "member," and each Clearing Member is a "member."

5. The amount by which the covered contractual payment entitlements of a Clearing Member or the Clearinghouse exceed the covered contractual payment obligations of such Clearing Member or the Clearinghouse after netting under a netting contract is its "net entitlement."

6. The amount by which the covered contractual payment obligations of a Clearing Member or the Clearinghouse exceed the covered contractual payment entitlements of such Clearing Member or the Clearinghouse after netting under a netting contract is its "net obligation."

7. The Rules of the Clearinghouse, including this Rule, are a "netting contract."

1. The Clearinghouse shall establish and maintain a Guaranty Fund.

2. The Clearinghouse is solely responsible for the capitalization of the Guaranty Fund.

3. Clearing Members are not required to make a contribution to the Guaranty Fund.

1. The Clearinghouse shall establish minimum Margin requirements and Clearing Members shall collect Margins for Customer Accounts at or in addition to such minimum Margins in accordance with CFTC Rule 39.13(g)(8)(ii).

2. The Clearinghouse may change Margin requirements at any time superseding previous Margin requirements and post in accordance with CFTC Rule 39.13(g)(8).

3. The Clearinghouse shall accept US Dollars as Margin in a manner acceptable to the Clearinghouse and Approved Financial Institutions, such as wire transfer.

4. The Clearinghouse, at its sole discretion, may make a Margin call at any time for any Participant based on the Participant's open interest.

5. The Clearinghouse may direct a Participant or Clearing Member to liquidate positions or transfer positions to another Clearing Member if the Clearing Member fails to deposit Margin as required by the Clearinghouse. If transfer or liquidation instructions are not satisfied within one (1) hour, the Clearinghouse will originate orders to take such action directly.

6. Liquidation costs incurred with actions taken in accordance with the Rules will be included in the failed Participants losses and any financial obligations owed by a Clearing Member to the Clearinghouse after such liquidations or transfers may be assessed to that Clearing Member's financial resources available under Rule 907.

Any transfer of a Contract shall be subject to the following:

1. Trades and positions in Contracts may be transferred on the books of one Clearing Member or between Clearing Members provided that:

   1. The transfer constitutes a change from one account to another where the underlying ownership in the accounts remains the same;

   2. The transfer was made to correct an error in the clearing of a trade and is completed within two business days from the trade date;

   3. The transfer is in connection with, or is the result of, a merger, asset purchase, consolidation or similar non-recurring transaction between two or more entities where one or more entities become the successor in interest to one or more other entities; or

   4. if, in the judgment of the Clearinghouse, the situation so requires and such interest is necessary to maintain market stability.

2. Any transfer permitted by the Clearinghouse shall be recorded and carried on the books of the receiving Clearing Member at the original prices and trade dates.

In the event of a Clearing Member Default, and upon completion of the liquidation and/or transfer of the positions of a Clearing Member (whether in Default or not) pursuant to the Rules, the Clearinghouse shall be entitled on demand to recover from such Clearing Member all amounts due to the Clearinghouse for all losses, liabilities, damages, costs and expenses (including without limitation legal fees and disbursements) incurred by the Clearinghouse in connection with such Default, liquidation and/or transfer, and such Clearing Member's Collateral, together with any other assets held by, pledged to or otherwise available to the Clearinghouse, including any guarantee, shall be applied by the Clearinghouse to discharge the obligations of such Clearing Member to the Clearinghouse (including any amounts, and costs and expenses associated with the liquidation, transfer or management of Contracts held in or for the accounts of such Clearing Member, and any fees, assessments or fines imposed by the Clearinghouse on such Clearing Member). The foregoing is in addition to any other remedy available to the Clearinghouse at law or equity.

The Clearinghouse shall have the right to instruct each Approved Financial Institution to debit the house or proprietary account maintained by each Clearing Member, and/or any other account designated by such Clearing Member for purposes of this Rule, for any payment of fees, charges or other amounts (other than fines or penalties) due to the Clearinghouse or due to the Exchange (if and to the extent the Clearinghouse shall be acting as a collection agent for the Exchange).

The Clearinghouse shall make public the terms and conditions of each Contract, all fees charged by the Clearinghouse, the Margin-setting methodology used by the Clearinghouse, the size and composition of the Guaranty Fund, and Settlement Prices, volume and open interest for each Contract. The Clearinghouse will also make its Rulebook, list of Clearing Members and daily trading information available on the Clearinghouse Website. The Clearinghouse will provide public notice of a Default on the Clearinghouse Website.