Clearing Member Financial Reporting Requirements

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.

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.

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.

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.