Notices Required of Clearing Members

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.

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.