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ICE Futures U.S.®, Inc.
DEFINITIONS
TABLE OF CONTENTS
AA Transactions Act Affiliated or Affiliated Firm Affiliated Person Allowable Claim Anchor Price Arbitrage Position Associated Brokers Board Business Day Call Option Carrying Member Cash Commodity Certified Public Accountant CFTC Chairman Claim Claimant Claim Notice Class Clearing Member Clearing Organization Clearing Organization Rules Clerk Closing Transaction Cocoa Coffee "C"® Commodity Commodity Contract Conversion Cotton No. 2® Credit Index Contract Cross Margining Participant Customer Customer Account Direct Access Disciplinary Rules eBadge eCOPS® EFP EFS Emergency Emergency Event Energy Contract Equity Exchange Exchange Futures Contract Exchange Holiday Exchange Option Exercise Notice Expiration Day FCOJ Financial Contracts Financial Emergency Firm Floor Broker Futures Commission Merchant or FCM Futures Contract Futures Equivalent Contract Governor Grantor ICE IFUS Guardian Delivery System IFUS Member IFUS Member Firm IFUS Membership Implied Matching Engine In-the-Money Option Index Contracts Last Trading Day Licensed Store Licensee Lot Margin Market Supervision Member Member Firm Merger Net Liquid Assets NFC No Cancellation Range Oil Contract Omnibus Account Option Option Buyer Option Month
Option Seller Order Routing Out-of-the-Money Option Person Physical Emergency Position Premium President Price/Time Matching Algorithm Principal Public Director Purchaser Put Option Required Shares Reasonability Limits Respondent Responsible Individual Reverse Conversion Rule or Rules Secured Loan Series Settlement Premium Settlement Price Straddle Striking Price Sugar No. 11® Sugar No. 16 Trade or Transaction Trade Committee Trading Floor Trading Session Uncrossing Algorithm Underlying Futures Contract
traded price of the front delivery or expiration month as determined by the Exchange. The Anchor Price of each successive expiration or delivery month is determined by applying spread differentials against the Anchor Price. Amended by the Board June 22, 2017; effective July 13, 2017. Arbitrage Position The term "Arbitrage Position" shall mean (i) an Exchange Futures Contract in one delivery month for an account which is offset by a Futures Contract for the same Commodity in the same or a different delivery month for such account which is executed on or subject to the rules of the London International Financial Futures and Options Exchange, and (ii) an Exchange Option, a Futures Contract to sell or purchase the same Commodity as the Underlying Futures Contract for such Exchange option, which is executed on or subject to the rules of the London International Financial and Options Exchange. Associated Brokers The term “Associated Brokers” or “Broker Association” shall have the meaning set forth in Rule 6.41. Board The term "Board" shall mean the Board of Directors of the Exchange. Any reference to “Board of Governors” in the Rules shall also mean the Board of Directors of the Exchange. Business Day The term "Business Day" shall mean, with respect to an Exchange Futures Contract or an Exchange Option, any day on which a Commodity Contract with the same underlying commodity as such Exchange Futures Contract or Exchange Option is available for trading on the electronic trading platform, unless otherwise determined and announced by the Exchange. Amended by the Board February 7, 2007; effective March 5, 2007. Amended by the Board October 10, 2007; effective January 7, 2008. Amended by the Board November 25, 2015; effective December 11, 2015. Call Option The term "Call Option" shall mean an Option whereby: (i) the Purchaser has the right, but not the obligation, to enter into an Underlying Futures Contract to buy a Commodity for delivery in the Option Month, at the Strike Price specified; and (ii) the Grantor has the obligation, upon exercise, to enter into an Underlying Futures Contract to sell a Commodity for delivery in such Option Month, at such Strike Price. Carrying Member The term "Carrying Member" shall mean a Futures Commission Merchant that carries one or more Customer Accounts. Cash Commodity The term "Cash Commodity" shall mean a physical or actual commodity. Certified Public Accountant The term "Certified Public Accountants" shall mean:
(i) Firms or individuals who submit statements as Certified Public Accountants and firms which are registered members of the American Institute of Certified Public Accountants (AICPA) and who are acceptable to the Membership Committee. (ii) Accountants or accountant firms registered under the laws of other countries where the requirements for registration are similar to the requirements for a CPA certificate in the United States and which accountants or accountant firms are acceptable to the Membership Committee. CFTC The term "CFTC" shall mean the Commodity Futures Trading Commission. Chairman The term "Chairman" shall mean Chairman of the Board, or one duly authorized to act with the authority of the Chairman of the Board. Claim The term "Claim" shall mean any right to payment whether or not any such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed or secured. Claimant The term "Claimant" shall mean a person who has either filed a Claim Notice or a Notice of Arbitration. Claim Notice The term "Claim Notice" shall mean a notice of claim against the proceeds of sale of a Trading Membership or Trading Permit as provided in the Rules. Class The term "Class" shall mean, with respect to any Option, a Put Option or a Call Option covering the same Underlying Futures Contract. Clearing Member The term "Clearing Member" shall mean any Person who is a member of a Clearing Organization. Clearing Organization The term "Clearing Organization" shall mean with respect to any Commodity Contract, the entity designated by the Board as being authorized to clear such Commodity Contract. Clearing Organization Rules The term "Clearing Organization Rules" shall mean the certificate of incorporation, by-laws, rules, regulations, resolutions, orders, directives and procedures of the Clearing Organization as adopted or amended from time to time. Clerk The term "Clerk" shall mean any individual employed by a Member and registered with the Exchange to work on the Trading Floor. Closing Transaction The term "Closing Transaction" shall mean any Transaction in which a Person (i) grants an Exchange Call Option or Exchange Put Option which is in the same Series as an Exchange Call Option or Exchange Put Option, respectively, which had been purchased by such Person; or (ii) purchases an Exchange Call Option or Exchange Put Option which is in the same Series as an
Adopted by the Board September 10, 2012; effective October 17, 2012. Amended by the Board September 30, 2015; effective January 1, 2016. Disciplinary Rules The term “Disciplinary Rules” shall mean the rules and procedures governing the investigation of rule violations and the disciplining of any Person in connection with such violations, as set forth in the Corporation’s Rules. Adopted by the Board July 22, 2013; effective August 26, 2013. eBadge “eBadge” shall mean, in the case of a Clearing Member or Direct Access Member, the number(s) assigned by the Exchange to a Clearing Member or Direct Access Member which identifies such Person, and in the case of a Person who is a Floor Broker shall be the same as the numeric of the Floor Trading badge issued to such Floor Broker. Amended by the Board June 22, 2017; effective July 13, 2017. eCOPS® The term “eCOPS” shall mean the electronic commodity operations system utilized by the Exchange. EFP The term “EFP” or “Exchange for Physical” shall mean a Transaction in which there is an exchange of Futures Contracts for the Cash Commodity. EFS The term “EFS” or “Exchange for Swap” shall mean a Transaction in which there is an exchange of Futures Contracts for a swap agreement for the Cash Commodity. Emergency The term “Emergency” shall have the meaning set forth in Rule 6.01(a). Emergency Event The term “Emergency Event’ shall have the meaning set forth in Rule 21.00(a). Energy Contract The term “Energy Contract” shall mean the Futures Contracts and Options identified in Chapter 18 of the Rules. Adopted by the Board June 23, 2011; effective October 15, 2012. Adopted by the Board September 10, 2012; effective October 15, 2012. Equity The term "Equity" shall include the following: Available Equity (i) The term "Available Equity" shall mean the amount, if any, by which Total Equity or the Net Liquidating Value, as the case may be, of any account exceeds the amount of Original Margin required for any Options or Futures Contracts carried in such account.
Open Trade Equity (ii) The term "Open Trade Equity" as applied to any account, shall mean any net unrealized gain or loss on Futures Contracts carried in such account. Total Equity (iii) The term "Total Equity" shall mean, with respect to any account, the Open Trade Equity, if any, in the account, the amount of money, if any, in the account, and the value of any securities or other property, if any, in the account, valued in accordance with the Rules. Net Liquidating Value (iv) The term "Net Liquidating Value", as applied to any account, shall mean the Total Equity in such account plus the value of any long and short options in such account. Exchange The term "Exchange" shall mean ICE Futures U.S.®, a corporation organized and existing under the Delaware General Corporation Law. Amended by the Board March 18, 2009; effective March 20, 2009. Exchange Futures Contract The term "Exchange Futures Contract" shall mean a Futures Contract traded on the Exchange or subject to the Rules. Exchange Holiday The term "Exchange Holiday" shall mean any day which is not a Business Day and on which the Exchange shall be closed. Amended by the Board March 24, 2016; effective April 13, 2016. Exchange Option The term "Exchange Option" shall mean any Option traded on the Exchange or subject to the Rules. Exercise Notice The term “Exercise Notice” shall mean a notice, in the form prescribed by the Clearing Organization, issued to the Clearing Organization by a Clearing Member that is, or that carries accounts for other Persons who are, holding long Positions in Options that are to be exercised. Expiration Day The term “Expiration Day” shall mean the day on which Options in any Option Month expire. FCOJ The term “FCOJ” shall mean frozen concentrated orange juice deliverable under the FCOJ Contracts of the Exchange. Financial Contracts The term “Financial Contracts” shall mean the U.S. Dollar Index®, the FINEX®^ EURO Index, the Euro Based Currency, the Pound Sterling Based Currency, the US Dollar Based Currency, the Australian and New Zealand Based Currency, the Japanese Based Currency, the Cash Settled Currency Futures and Options Contracts and any other instruments designated by the Board as Financial Contracts and traded at the Exchange.
Adopted by the Board September 10, 2012; effective October 15, 2012. Amended by the Board April 9, 2014; effective May 31, 2014. IFUS Membership The term “IFUS Membership” shall mean a membership issued pursuant to Section 5.1of the Bylaws and Rule 2.02. Adopted by the Board September 10, 2012; effective October 15, 2012. Amended by the Board April 9, 2014; effective May 31, 2014. Amended by the Board September 30, 2015; effective January 1, 2016. Implied Matching Engine “Implied Matching Engine” means the system functionality which derives futures and options spread and outright prices, respectively, from outright and spread orders entered onto the ETS for the purpose of matching outright orders and legs of spread orders against each other. Amended by the Board June 22, 2017; effective July 13, 2017. In-the-Money Option The term "In-the-Money Option" shall mean an Option that has a Strike Price that is lower (in the case of a Call Option) or higher (in the case of a Put Option) than the price of the Underlying Futures Contract for such Option. Index Contracts The term “Index Contracts” shall mean the Russell Complex, MSCI Index Futures, the NYSE ARCA Gold Miners Index Futures and any other Commodity Contracts based on an index. Amended by the Board September 30, 2015; effective October 29, 2015. Last Trading Day The term "Last Trading Day" shall mean, with respect to any futures or Option Month, the last day on which trading is permitted for such futures or Option Month in accordance with the Rules. Licensed Store The term "Licensed Store" shall mean that portion of a licensed warehouse which has been approved by the Exchange as suitable for the storage of an Exchange Commodity. Whenever the word "store" is used in the Rules, "Licensed Store" is intended, except when the context clearly indicates a contrary intent. Amendment by the Board December 4, 2019; effective December 19, 2019. Licensee The term "Licensee" shall mean a Person licensed by the Exchange as a chemist, grader, master sampler, tank facility, warehouse or weighmaster. Lot The term "Lot" shall mean the par quantity of the Commodity deliverable under a particular Commodity Contract. Margin The term "Margin" shall include the following:
Maintenance Level (i) The term "Maintenance Level" shall mean the minimum amount of Original Margin and Option Margins a Carrying Member is required to maintain in a Customer Account at all times, as provided in the Rules. Maintenance Margin (ii) The term "Maintenance Margin" shall mean the minimum amount of Original Margin and Option Margin a Carrying Member is required to maintain in a Customer Account at all times, as provided in the Rules. Option Margin (iii) The term "Option Margin" shall mean the amount of money, securities or other property required as security for the performance of Options carried in a Customer Account as provided in the Rules. Original Margin (iv) The term "Original Margin" shall mean the amount of money, securities or other property required as security for the performance of Futures Contracts carried in a Customer Account, as provided in the Rules. Market Supervision “Market Supervision” shall mean the Department of the Exchange responsible for overseeing electronic trading. Amended by the Board June 22, 2017; effective July 13, 2017. Member The term “Member” shall mean and include an IFUS Member, IFUS Member Firm, and a Cross Margining Participant (to the extent that such Person engages in transactions in Commodity Contracts that are the subject of a Cross Margining Program implemented by the Clearing Organization). Amended by the Board November 14, 2007; effective March 7, 2008. Amended by the Board June 13, 2012; effective July 6, 2012. Amended by the Board September 10, 2012; effective October 15, 2012. Amended by the Board April 9, 2014; effective May 31, 2014. Amended by the Board September 30, 2015; effective January 1, 2016. Member Firm The term “Member Firm” shall mean any partnership, corporation, limited liability company, sole proprietorship or other entity which is an IFUS Member Firm. Amended by the Board September 10, 2012; effective October 15, 2012. Amended by the Board September 30, 2015; effective January 1, 2016. Net Liquid Assets The term "Net Liquid Assets" shall mean current assets less current liabilities.
Position The term "Position" with respect to any Person shall mean all the Commodity Contracts held by such Person. Premium The term "Premium" shall mean the amount agreed upon between the Purchaser and Grantor for the purchase or grant of an Exchange Option, which amount shall be the quoted Premium multiplied by the number of units of the Underlying Futures Contract for each Option. President The term "President" shall mean the President of the Exchange, or one duly authorized to act with the authority of the President. Price/Time Matching Algorithm “Price/Time Matching Algorithm” is generally used during an ETS trading session. When used, it matches orders on the basis of a price and time priority algorithm. The “best” price order always has the highest priority, for buy orders that means those orders that have the highest price and for sell orders that means those orders that have the lowest price. If more than one order is in the market at a specific price, the highest priority is given to the order that arrived at ETS first. Amended by the Board June 22, 2017; effective July 13, 2017. Principal The term "Principal" shall mean with respect to any Firm, any Person who is an executive officer, general partner, director or other person, who, in each case, exercises a controlling influence over the Exchange-related business of such Firm, and any Person who owns ten percent (10%) or more of the outstanding shares of stock of, or has contributed ten percent (10%) or more of the capital to, such Firm. Public Director The term “Public Director” shall mean any person who qualifies as a “public” director within the meaning of the regulations and interpretations issued by the CFTC from time to time for determining qualifications of public directors. Amended by the Board September 8, 2010; effective September 14, 2010. Purchaser The term "Purchaser" shall mean, with respect to any Option, the Floor Broker purchasing such Option on the Trading Floor (either as agent or principal), until the time such Option is accepted by the Clearing Organization. Thereafter, the term "Purchaser" shall mean the Clearing Member which cleared such Option for the Customer purchasing it. Put Option The term "Put Option" shall mean an Option whereby: (i) the Purchaser has the right, but not the obligation, to enter into an Underlying Futures Contract to sell a Commodity for delivery in the Option Month at the Strike Price specified; and (ii) the Grantor has the obligation, upon exercise, to enter into an Underlying Futures Contract to buy a Commodity for delivery in such Option Month at such Strike Price.
Reasonability Limits “Reasonability Limits” shall mean the amount by which the price of an Exchange Commodity Contract may increase or decrease in one trading sequence from the last traded price of that delivery or expiration month or the amount the price may change from a price determined by an ETS algorithm. Market Orders will not be permitted to result in Trades at prices that are outside of the Reasonability Limits, and Limit Orders to sell at prices below the lower Reasonability Limit and Limit Orders to buy at prices above the upper Reasonability Limit at the time the order is entered will be rejected. Amended by the Board June 22, 2017; effective July 13, 2017. Required Shares The term “Required Shares” shall mean the shares of ICE common stock that each IFUS Member Firm seeing to clear Commodity Contracts as a Clearing Member of ICE Clear U.S., shall own and pledge to the Exchange in accordance with Chapter 2 of the Rules. Amended by the Board September 30, 2015; effective January 1, 2016. Respondent The term "Respondent" shall mean any Person who is charged with a Rule violation. Responsible Individual “Responsible Individual” shall mean an individual who is registered with the Exchange as the individual with authority to modify or withdraw any order submitted under any of the eBadge(s) with respect to which such individual is registered, and who is able to immediately identify the source of any order submitted under such eBadge. Amended by the Board June 22, 2017; effective July 13, 2017. Reverse Conversion The term "Reverse Conversion" shall mean a Transaction comprised of three (3) Commodity Contracts, including a short Futures Contract, a short Put Option and a long Call Option. The delivery month must be the same for all three (3) Commodity Contracts and the Strike Price must be the same for the two (2) Option components. Rule or Rules The term "Rule" or "Rules" shall mean the Charter, Certificate of Incorporation, By-Laws, rules, resolutions, interpretations, statements of policy, decisions, directives and orders of the Exchange. Secured Loan The term "Secured Loan" shall mean a loan, advance or any other form of receivable which is secured within the meaning of CFTC Regulation 1.17(c)(3) by readily marketable collateral that is: (i) money or securities that may be deposited as Original Margin or Option Margin pursuant to Rule 5.04; (ii) negotiable warehouse receipts issued by a warehouse or depository licensed or otherwise approved by any contract market; or (iii) any security that has a loan value for general accounts carried by securities brokers or dealers under Regulation T issued by the Board of Governors of the Federal Reserve System.
Uncrossing Algorithm “Uncrossing Algorithm” is generally used during the Pre-Trading Session in accordance with Rules 4.22 and 4.23. It cycles through all orders submitted during the Pre-Trading Session identifying the best bid and best offer and produces matches where there is price crossing. All orders that are traded, whether fully or partially, as part of the Uncrossing Algorithm, trade at the same trade price. Underlying Futures Contract The term "Underlying Futures Contract" shall mean the Futures Contract which is the subject of an Option.
