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Cboe Futures Exchange, LLCRulebookBY ACCESSING, OR ENTERING ANY ORDER INTO, THE CFE SYSTEM, AND WITHOUT ANY NEED FORANY FURTHER ACTION, UNDERTAKING OR AGREEMENT, A TRADING PRIVILEGE HOLDER ORAUTHORIZED TRADER AGREES (I) TO BE BOUND BY, AND COMPLY WITH, THE RULES OF THEEXCHANGE, THE RULES OF THE CLEARING CORPORATION AND APPLICABLE LAW, IN EACH CASE TOTHE EXTENT APPLICABLE TO IT, AND (II) TO BECOME SUBJECT TO THE JURISDICTION OF THEEXCHANGE WITH RESPECT TO ANY AND ALL MATTERS ARISING FROM, RELATED TO, OR INCONNECTION WITH, THE STATUS, ACTIONS OR OMISSIONS OF SUCH TRADING PRIVILEGE HOLDER ORAUTHORIZED TRADER. SEE RULE 308(A) AND THE RELATED DEFINITIONS IN THIS RULEBOOK.ANY PERSON INITIATING OR EXECUTING A TRANSACTION ON OR SUBJECT TO THE RULES OF THEEXCHANGE DIRECTLY OR THROUGH AN INTERMEDIARY, AND ANY PERSON FOR WHOSE BENEFIT SUCHA TRANSACTION HAS BEEN INITIATED OR EXECUTED, EXPRESSLY CONSENTS TO THE JURISDICTION OFTHE EXCHANGE AND AGREES TO BE BOUND BY AND COMPLY WITH THE RULES OF THE EXCHANGE INRELATION TO SUCH TRANSACTIONS, INCLUDING, BUT NOT LIMITED TO, RULES REQUIRINGCOOPERATION AND PARTICIPATION IN INVESTIGATORY AND DISCIPLINARY PROCESSES. ANYFUTURES COMMISSION MERCHANT, BROKER-DEALER, INTRODUCING BROKER, ASSOCIATED PERSON,OR FOREIGN PERSON PERFORMING A SIMILAR ROLE, THAT CHARGES A COMMISSION OR FEE INCONNECTION WITH A TRANSACTION ON OR SUBJECT TO THE RULES OF THE EXCHANGE ALSOEXPRESSLY CONSENTS TO THE EXCHANGE’S JURISDICTION. ANY PERSON SUBJECT TO THISPARAGRAPH IS REFERRED TO AS A MARKET PARTICIPANT UNDER THE RULES OF THE EXCHANGE. SEERULE 308(D) FOR THE RULES OF THE EXCHANGE TO WHICH ANY MARKET PARTICIPANT THAT IS NOTA TRADING PRIVILEGE HOLDER OR RELATED PARTY IS BOUND AND REQUIRED TO COMPLY.Revised as of April 20, 2022
TABLE OF CONTENTSCBOE FUTURES EXCHANGE, LLCRULEBOOKPageCHAPTER 1 DEFINITIONS .1CHAPTER 2 GOVERNANCE OF THE EXCHANGE .213.214.215.216.217.218.219.220.Management by the Board .17Liability; Indemnification .20Effectiveness of Rules.22Eligibility .22Officers .23Standing Committees .23Executive Committee .25Regulatory Oversight Committee .25Business Conduct Committee .26Reserved .26Reserved .27Exchange Committees; Special Committees of the Board .27Power of the Board to Review Exchange Decisions .28Confidentiality and Conflicts of Interest.28Conflicts of Interest - Named Party in Interest or Financial Interest inSignificant Action .29Regulatory Cooperation and Information-Sharing Agreements .32Reserved .32Regulatory Services Provided by The Options Clearing Corporation .32Communications Regarding Regulatory Matters.32Minutes .33CHAPTER 3 MEMBERSHIP AND TRADING PRIVILEGES 309.LLC Members .34Trading Privilege Holders .34Authorized Traders .37Order Entry Operator IDs .37Eligibility for Trading Privileges .39Application for Trading Privileges .40Pooled Investment Vehicles .42Foreign Trading Privilege Holders .42Dues, Assessments and Fees .43Emergency Disciplinary Actions and Limitations of Trading Privileges .43Consent to Exchange Jurisdiction .44Recording of Conversations .46i
310.Notices .46CHAPTER 4 TRADING PROCEDURES AND STANDARDS 6.417.417A.418.419.420.Contracts Traded on Cboe Futures Exchange .48Trading Hours .48Order Entry and Maintenance of Front-End Audit Trail Information .48Acceptable Orders .50Trade at Settlement Transactions .56Modification and Cancellation of Orders .57Opening Process.57Execution of Orders by CFE System .68Trading of Spread Orders.72Match Trade Prevention .76Crossing Trades .77Market Data and Related Agreements .78Requirements for Average Price System Transactions .78Application and Closing Out of Offsetting Positions .79Reporting Open Interest Information to the Clearing Corporation .79Errors of Trading Privilege Holders .79Position Limits .80Position Accountability.85Ownership and Control Reports and Reportable Positions.89Price Limits; Final Settlement Prices .90Exchange of Contract for Related Position .90Block Trades .97Error Trades .105Regulatory Halts .105Market-Wide Trading Halts Due to Extraordinary Market Volatility .105Emergencies .107Limitation of Liability; Legal Proceedings .109Transfers of Positions .115CHAPTER 5 OBLIGATIONS OF TRADING PRIVILEGE HOLDERS .117501.502.503.Books and Records .117Inspection and Delivery .117Minimum Financial and Related Reporting Requirements forRegistrants.118503A. Reporting by Futures Commission Merchants and Introducing Brokers .118504. Authority of the Exchange to Impose Restrictions .119505. Treatment of Customer Funds and Securities .119506. Additional Minimum Financial Requirements .119507. Registration .119508. Confirmations .120509. Customer Statements .120510. Risk Disclosure Statement .120511. Fraudulent or Misleading Communications.120ii
sponsibility for Customer Orders .121Denial of Access .121System Security and Integrity .121Risk Controls .122Business Continuity Preparations .133Technical and Systems Specifications and Systems TestingRequirements .134Market Maker Programs .135DPMs .135Customer Margin Requirements for Contracts other than SecurityFutures.139Customer Margin Requirements for Contracts that are Security Futures .142Compliance with Minimum Financial Requirements, FinancialReporting Requirements, and Requirements Relating to Protection ofCustomer Funds .152CHAPTER 6 BUSINESS CONDUCT 2.613.614.615.616.617.618.619.620.Fraudulent Acts .155Fictitious Transactions .155Market Manipulation .155Adherence to Law .156Sales Practice Rules .156Prohibition of Misstatements .156Use of Trading Privileges .156Acts Detrimental to the Exchange; Acts Inconsistent with Just andEquitable Principles of Trade; Abusive Practices .156Supervision .156Priority of Customers’ Orders .157Trading Against Customers’ Orders .158Withholding Orders .159Disclosing Orders.159Pre-Arranged Trades .159Simultaneous Buying and Selling Orders .159Wash Trades.160Money Passes .160Accommodation Trading .160Front-Running .160Disruptive Practices .161CHAPTER 7 DISCIPLINE AND ENFORCEMENT .162701.702.703.704.705.706.Disciplinary Jurisdiction .162Complaint and Investigation .162Expedited Proceeding .164Charges .165Answer .166Hearing .166iii
707.708.709.710.711.712.713.714.715.Summary Proceedings .167Offers of Settlement .167Decision .169Reserved .169Sanctions .170Service of Notice.170Extension of Time Limits .171Imposition of Fines for Minor Rule Violations .171Warning Letters .178CHAPTER 8 ARBITRATION .179801.802.Matters Subject to Arbitration; Incorporation by Reference .179Failure to Honor Award or Settlement.180CHAPTER 9 RESERVED .181CHAPTER 10 CONTRACTS .1821001. Contract Specifications .1821002. Contract Modifications .182CHAPTER 11 CLEARING .1831101.1102.1103.1104.1105.Clearing Member Guarantees and Clearing Corporation Restrictions .183Responsibility of Trading Privilege Holders .185Clearing Services .185Rules of the Clearing Corporation .185Notice of Arbitration .185CHAPTER 12 CBOE VOLATILITY INDEX FUTURES CONTRACT SPECIFICATIONS.1861201. Scope of Chapter .1861202. Contract Specifications .1861203. Settlement .199CHAPTER 13 RESERVED .200CHAPTER 14 CBOE AMERIBOR TERM-30 FUTURES CONTRACTSPECIFICATIONS.2011401. Scope of Chapter .2011402. Contract Specifications .2011403. Settlement .213CHAPTER 15 CBOE iBOXX iSHARES BOND INDEX FUTURES CONTRACTSPECIFICATIONS.2141501. Scope of Chapter .2141502. Contract Specifications .214iv
1503. Settlement .218CHAPTER 16 INDIVIDUAL STOCK BASED AND EXCHANGE-TRADED FUNDBASED VOLATILITY INDEX SECURITY FUTURES CONTRACT SPECIFICATIONS.2191601.1602.1603.1604.Scope of Chapter .219Contract Specifications .219Settlement .224Eligibility and Maintenance Criteria for Volatility Index Futures.224CHAPTER 17 MINI CBOE VOLATILITY INDEX FUTURES CONTRACTSPECIFICATIONS.2251701. Scope of Chapter .2251702. Contract Specifications .2251703. Settlement .234CHAPTER 18 SINGLE STOCK FUTURES .2361801.1802.1803.1804.1805.1806.Scope of Chapter .236Contract Specifications .236Delivery.239Emergencies, Acts of God and Acts of Government .239DPM Provisions .239Form of Specifications Supplement .240CHAPTER 19 NARROW-BASED STOCK INDEX FUTURES .2411901.1902.1903.1904.1905.1906.Scope of Chapter .241Contract Specifications .241Delivery.247Emergencies, Acts of God and Act of Government .247DPM Provisions .248Form of Specifications Supplement .248CHAPTER 20 CBOE THREE-MONTH AMERIBOR FUTURES CONTRACTSPECIFICATIONS.2492001. Scope of Chapter .2492002. Contract Specifications .2492003. Settlement .261CHAPTER 21 CBOE AMERIBOR TERM-90 FUTURES e of Chapter .262Contract Specifications .262Settlement .274Reserved .274v
CHAPTER 22 CBOE ONE-MONTH AMERIBOR FUTURES CONTRACTSPECIFICATIONS.2752201. Scope of Chapter .2752202. Contract Specifications .2752203. Settlement .287CHAPTER 23 S&P 500 VARIANCE FUTURES CONTRACT SPECIFICATIONS .2882301.2302.2303.2304.Scope of Chapter .288Contract Specifications .288Settlement .293DPM Provisions .294CHAPTER 24 RESERVED .295CHAPTER 25 CBOE 7-DAY AMERIBOR FUTURES CONTRACT SPECIFICATIONS.2962501. Scope of Chapter .2962502. Contract Specifications .2962503. Settlement .308vi
CHAPTER 1DEFINITIONSScope of DefinitionsUnless otherwise specifically provided in the Rules of the Exchange or thecontext otherwise requires, the terms defined in this Chapter shall for all purposes of theRules of the Exchange have the meanings specified below.AdministratorThe term “administrator” has the meaning set forth in Rule 513(a).Adopted April 25, 2018 (18-005).AffiliateAn “Affiliate” of, or a Person “Affiliated” with, another Person is a Personwho, directly or indirectly, Controls, is Controlled by, or is under common Control with,such other Person.AMERIBOR FuturesThe term “AMERIBOR Futures” means collectively Cboe AMERIBORTerm-30 futures, Cboe AMERIBOR Term-90 futures, Cboe Three-Month AMERIBORfutures, Cboe One-Month AMERIBOR futures, and Cboe 7-Day AMERIBOR futures.Adopted August 16, 2019 (19-011). Amended October 17, 2012 (12-26); May 15, 2020 (20-011); September 3, 2021(21-023); December 20, 2021 (21-032).Applicable LawThe term “Applicable Law” includes, but is not limited to, the CEA,Commission Regulations, margin rules adopted by the Board of Governors of the FederalReserve System (as amended from time to time) and, to the extent applicable, the ExchangeAct and Exchange Act Regulations.Authorized ReporterThe term “Authorized Reporter” has the meaning set forth in Rule 414(i) inrelation to Exchange of Contract for Related Position transactions and has the meaning setforth in Rule 415(f) in relation to Block Trades.Adopted February 25, 2018 (17-017).Authorized TraderThe term “Authorized Trader” means any natural person who is a TradingPrivilege Holder or who is authorized by a Trading Privilege Holder to access the CFESystem on behalf of the Trading Privilege Holder.1
Amended October 17, 2012 (12-26); February 25, 2018 (17-017).Average Price SystemThe term “Average Price System” means any system used by a TradingPrivilege Holder that is a registered futures commission merchant to calculate and confirmto its Customers an average price for any Contract when multiple execution prices arereceived on any Order or series of Orders for such Contract.Bankruptcy CodeThe term “Bankruptcy Code” means Title 11 of the United States Code, asamended from time to time.BCC PanelThe term “BCC Panel” has the meaning set forth in Rule 209.Amended October 17, 2012 (12-26).BOEThe term “BOE” means the Binary Order Entry protocol for interfacing withthe CFE System.Adopted February 25, 2018 (17-017).Block TradeThe term “Block Trade” has the meaning set forth in Rule 415(a).BoardThe term “Board” means the board of directors of the Exchange constitutedin accordance with the Constitutive Documents.Business Conduct CommitteeThe term “Business Conduct Committee” means the business conductcommittee of the Exchange constituted in accordance with, and with the authority andrights set forth or referred to in, Rule 209.Amended October 17, 2012 (12-26).Bulk MessageThe term “Bulk Message” has the meaning set forth in Rule 404.Adopted May 4, 2020 (20-002).Business Day2
The term “Business Day” has the meaning set forth in Rule 402(a).Cboe Global MarketsThe term “Cboe Global Markets” means Cboe Global Markets, Inc., aDelaware Corporation (including its successors).Adopted June 18, 2010 (10-05); amended October 31, 2017 (17-016).Cboe OptionsThe term “Cboe Options” means Cboe Exchange, Inc., a Delawarecorporation (including its successors).Amended October 31, 2017 (17-016).CFE SystemThe term “CFE System” means (i) the electronic systems administered byor on behalf of the Exchange which perform the functions set out in the Rules of theExchange, including controlling, monitoring and recording trading on the Exchange and(ii) any connectivity to the foregoing electronic systems that is administered by or on behalfof the Exchange, such as a communications hub in a foreign jurisdiction.Amended February 1, 2013 (13-03); February 25, 2018 (17-017).CFE WorkstationThe term “CFE Workstation” mea
The term "Authorized Reporter" has the meaning set forth in Rule 414(i) in relation to Exchange of Contract for Related Position transactions and has the meaning set forth in Rule 415(f) in relation to Block Trades. Adopted February 25, 2018 (17-017). Authorized Trader The term "Authorized Trader" means any natural person who is a Trading
