Clearing Members

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.

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.

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

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.