Contratos No Laborales (Valdovinos Pichardo, 2014)

TRADING PROCEDURES AND STANDARDS General

401. Contracts Traded on CBOE Futures Exchange

The Exchange shall determine which Contracts are available for trading subject to the Rules of the Exchange from time to time, and approve rules containing the specifications for such Contracts; provided that certifications or applications with respect to such rules shall be submitted to the Commission as required by the CEA and the Commission Regulations thereunder.

402. Trading Hours

(a) The Exchange shall from time to time determine (i) on which days the Exchange shall be regularly open for business in any Contract ("Business Days") and (ii) during which hours trading in any Contract may regularly be conducted on such days ("Trading Hours"). Trading Hours shall include any regular and extended trading hours under the rules governing the relevant Contract. Except to the extent expressly permitted by the Rules of the Exchange, no Trading Privilege Holder (including its Authorized Traders) shall engage in any transaction in any Contract before or after such hours.

(b) The Exchange may modify its regular Business Days and Trading Hours to not be open for business or to have shortened trading hours in connection with a holiday or a period of mourning.

(c) The Exchange may from time to time adopt procedures for the opening or closing of trading in any Contract.

Amended July 26, 2005 (05-20); April 6, 2011 (11-09); October 17, 2012 (12-26); August 13, 2013 (13-30). Entry and Execution of Orders

403. Order Entry and Maintenance of Front-End Audit Trail Information

(a) All Orders shall be entered into the CBOE System by electronic transmission through a CBOE Workstation, and the Exchange shall maintain an electronic record of those entries. Each Trading Privilege Holder (including its Authorized Traders) shall be responsible in every respect for any and all Orders entered by it (including its Related Parties) and for compliance by its Related Parties with this Rule 403. Prior to entering any Order, the relevant Related Party shall sign onto the CBOE System by inputting the user identification assigned for such purpose by the Exchange. Each Order must contain the following information: (i) whether such Order is a buy or sell Order; (ii) Order type; (iii) commodity; (iv) contract expiration; (v) price; (vi) quantity; (vii) account type; (viii) account designation (the number

assigned by a Trading Privilege Holder to each of its accounts); (ix) in the case of Orders for Options, strike price, type of option (put or call) and expiration month; and (x) such additional information as may be prescribed from time to time by the Exchange.

(b) With respect to orders received by a Trading Privilege Holder (including its Authorized Traders) which are immediately entered into the CBOE System, no record needs to be kept by such Trading Privilege Holder, except as may be required pursuant to Rule 501 and Applicable Law. However, if a Trading Privilege Holder (including its Authorized Traders) receives orders which cannot be immediately entered into the CBOE System, such Trading Privilege Holder must prepare an order form in a non-alterable written medium, which shall be time-stamped and include the account designation, date and other required information. Each such form must be retained by the Trading Privilege Holder for at least five years from the time it is prepared. Any such Orders must be entered into the CBOE System, in the order they were received, as soon as they can be entered into the CBOE System.

(c) Each Clearing Member and each Trading Privilege Holder that is a Futures Commission Merchant or Introducing Broker shall maintain front-end audit trail information for all electronic orders and quotes entered by that party into the CBOE System, including all related modifications and cancellations. Each Clearing Member shall also maintain, or cause to be maintained, front- end audit trail information for all electronic orders and quotes entered into the CBOE System by any Trading Privilege Holder for which the Clearing Member is identified in the order or quote submission as the Clearing Member for the execution of the order or quote, including all related modifications and cancellations. This audit trail must contain all order entry, modification, cancellation and response receipt time(s) as well as all Financial Information Exchange interface (FIX) tag information and fields or CBOE Market Interface (CMi) order structure, as applicable. Notwithstanding any of the provisions of this Rule 403(c), each Trading Privilege Holder is obligated to comply with the provisions of Commission Regulation §1.35 as applicable to that Trading Privilege Holder.

Amended February 17, 2004 (04-04); July 20, 2011 (11-18); October 17, 2012 (12-26); December 15, 2014 (14-17); September 1, 2015 (15-014).

404. Acceptable Orders

At the discretion of the Exchange, any of the following types of Orders, as well as any other types that may be approved from time to time, may be entered into the CBOE System with respect to any Contract:

(a) Market Order. A “Market Order” is an order to buy or sell a stated number of Contracts at the best price available on the Exchange.

(b) Limit Order. A “Limit Order” is an order to buy or sell a stated number of Contracts at a specified price, or at a better price.

(c) Cancel Order. A “Cancel Order” is an order that cancels, partially or fully, an existing buy or sell order.

(d) Cancel Replace Order. A “Cancel Replace Order” is an order to cancel an existing buy or sell order and replace it with a new order for a different quantity or price.

(e) Day Order. A “Day Order” is an order for any Contract that, unless executed, remains as an executable Order in the CBOE System until the end of the Business Day for such Contract on which it is entered.

(f) Good-’til-Canceled Order. A “Good-’til-Canceled Order” is an order that, unless executed, remains in the CBOE System until it is withdrawn by the Trading Privilege Holder (including its Authorized Traders) who placed it or the Expiration Date of the Contract to which it relates, whichever occurs first. (g) Spread Order. A “Spread Order” is an order to simultaneously purchase, sell or purchase and sell at least two Contracts in a form accommodated by the CBOE System. A “strip” is a type of Spread Order that is exclusively for the purchase or exclusively for the sale of at least two Contracts in a form accommodated by the CBOE System.

(h) Contingency Orders. A “Contingency Order” is an order that is contingent upon a condition being satisfied while the order remains in the CBOE System, and may be one of the following order types:

(i) Fill or Kill Order. A “Fill or Kill Order” is an order which is automatically cancelled unless executed in its entirety within a short period of time after its receipt.

(ii) Immediate or Cancel Order. An “Immediate or Cancel Order” is a Market Order or Limit Order which is automatically cancelled unless executed in whole or in part within a short period of time after its receipt.

(iii) Stop Limit Order. A “Stop Limit Order” is an order to buy or sell when the market for a particular Contract reaches a specified price. A Stop Limit Order to buy becomes a Limit Order when the relevant Contract trades or is bid at or above the stop limit price. A Stop Limit Order to sell becomes a Limit Order when the relevant Contract trades or is offered at or below the stop limit price.

404A. Trade at Settlement Transactions

(a) A Trade at Settlement ("TAS") transaction is a transaction in a Contract at a price or premium equal to the daily settlement price, or a specified differential above or below the daily settlement price, for the Contract on a trading day. The actual amount of a TAS transaction price or premium is determined subsequent to the transaction based upon the daily settlement price of the Contract.

(b) The rules governing a Contract shall specify if TAS transactions are permitted in that Contract. If TAS transactions are permitted in a Contract, the rules governing the Contract shall set forth the extent to which TAS transactions in that Contract may occur on the CBOE System, as spread transactions, as Block Trades and/or as Exchange of Contract for Related Position transactions; the trading hours for TAS transactions in that Contract; the permissible price range from the daily settlement price for each of the permitted types of TAS transactions in that Contract; and the permissible minimum increment for each of the permitted types of TAS transactions in that Contract.

(c) During the time period between Exchange Business Days for a Contract, the entry into the CBOE System of a TAS order or quote in that Contract prior to the time at which the CBOE System disseminates the Pre-Opening Notice for that Contract under Rule 405B(a) is prohibited.

(d) TAS orders and quotes in a Contract will interact only with other TAS orders and quotes in the Contract and will not interact with non-TAS orders and quotes in the Contract. The same execution priorities that are applicable to non- TAS orders and quotes in a Contract shall also apply with respect to TAS orders and quotes in the Contract, unless otherwise specified in the rules governing the Contract.

(e) All TAS orders are required to be Day Orders. TAS market orders are not permitted.

(f) If TAS spread transactions are permitted in a Contract, (i) the provisions of Exchange Policy and Procedure II relating to spread order processing shall be applicable to those transactions, except that (A) any TAS spreads are required to be two-legged spreads for different expirations of the same Exchange product where the ratio of the number of contracts in one leg to the number of contracts in the other leg is 1:1 and (B) paragraphs (a), (e) and (h)(iii) of Exchange Policy and Procedure II shall not apply to TAS spread transactions and (ii) any TAS Block Trade spread transactions are required to be two-legged spreads where the ratio of the number of contracts in one leg to the number of contracts in the other leg is 1:1.

(g) A Threshold Width is always deemed to exist and deemed not exceeded for TAS transactions because TAS transactions may only occur within a permissible price range.

Adopted November 4, 2011 (11-23). Amended October 17, 2012 (12-26); December 15, 2014 (14-17); May 24, 2015 (15-12); August 6, 2015 (15-021).

405. Modification and Cancellation of Orders

Any Order that has been entered into the CBOE System may be modified or cancelled unless and until it has been executed. Any such modification or cancellation requires that a Cancel Replace Order or Cancel Order, as the case may be, with respect to the original Order be entered into the CBOE System.

405B. Opening Process

(a) Pre-Opening Period. The CBOE System disseminates a notice of the commencement of the pre-opening period (“Pre-Opening Notice”). The pre- opening period is a period of time determined by the Exchange before the opening of trading in a Contract during which the CBOE System accepts quotes, Orders, Order cancellations and Order modifications in that Contract, subject to the limitations set forth in paragraph (g) below. Quotes and Orders accepted by the CBOE System are not executable during the pre-opening period.

(b) Opening Rotation Notice. Unless unusual circumstances exist, the CBOE System initiates an opening rotation procedure at the opening time for a Contract and disseminates an opening rotation notice (“Rotation Notice”) at that time.

(c) Opening Rotation Period.

(i) After the CBOE System initiates the opening rotation procedure and disseminates the Rotation Notice, the CBOE System enters into an opening rotation period.

(ii) During the opening rotation period, the CBOE System calculates and disseminates the expected opening price and size for each Contract at specified intervals of time determined by the Exchange (referred to “EOP Messages”) if the order book for the Contract is crossed (the highest bid is higher than the lowest offer) or locked (the highest bid equals the lowest offer).

(iii) During a time frame determined by the Exchange following the opening time, the CBOE System processes the Contracts for each Exchange product to determine the opening price and opening trade(s), if any, in each of these Contracts. The processing of the Contracts for each Exchange product during this time frame occurs in a random order at fixed time intervals determined by the Exchange.

(iv) The CBOE System will continue to accept quotes, Orders, Order cancellations, and Order modifications for a Contract for inclusion in the opening rotation procedure and continue to calculate and

disseminate EOP Messages for a Contract until the opening price and opening trade(s), if any, in that Contract are determined.

(d) Opening Price.

(i) The opening price of a Contract is the “market-clearing” price that will leave bids and offers which cannot trade with each other.

(A) If there are multiple prices at which the same number of contracts can trade, the opening price will be at a price that is closest to the mid-point of the resulting bid-ask.

(B) If there will be no resulting bid-ask, the opening price will be the limit price of the highest priced sell Order or quote that is participating in the opening trade(s).

(C) If there will only be a resulting bid, with no resulting ask, the opening price will be the limit price of the lowest priced buy Order or quote that is participating in the opening trade(s).

(D) If there will only be a resulting ask, with no resulting bid, the opening price will be the limit price of the highest priced sell Order or quote that is participating in the opening trade(s). A resulting bid and/or ask refers to the bid and/or ask that remains following the completion of the opening trade(s), if any, through the opening rotation procedure.

(ii) As the opening price is determined by Contract, the CBOE System disseminates the opening trade price, if any, and the opening bid and ask prices for that Contract.

(e) Open Trading. The opening rotation period for a Contract ends when the process to determine the opening price and opening trade(s), if any, for that Contract is completed. The CBOE System then disseminates a notice of the commencement of open trading in the contract (“Open Trading Notice”) and the Contract moves into an open state for trading.

(f) Rotation Allocation Method. The allocation method for a Contract that applies during the opening rotation procedure is the same as the allocation method that otherwise applies to the Contract.

(g) Order Submission Limitations Around Opening. The CBOE System will not accept Market Orders in a Contract before the opening time for that Contract or during the thirty second time period following the opening time for that Contract. The CBOE System will not accept Fill or Kill Orders or Immediate or Cancel Orders in a Contract until the Contract is in an open state

(h) Re-openings and Delayed Openings.

(i) The opening process set forth in this Rule 405B shall also be utilized whenever the Exchange reopens trading in a Contact within the same trading session or has a delayed opening. For purposes of this Rule 405B, a delayed opening during which the opening process is completed more than thirty seconds following the opening time is referred to as a “Delayed Opening”.

(ii) Since Market Orders may be present during the pre-opening period and opening rotation period for re-openings within a trading session or for Delayed Openings, the following additional provisions apply in relation to re-openings and Delayed Openings during the opening rotation procedure with respect to Market Orders:

(A) In determining the priority of Orders and quotes to be traded, the CBOE System gives priority to Market Orders first ahead of limit Orders and quotes.

(B) The CBOE System will not open a Contract if all or a portion of any Market Order is not able to execute against one or more opposite side quotes at or within the applicable Threshold Width at the time that the CBOE System attempts to process the Contract to determine the opening price and opening trade(s), if any, in the Contract. If this condition occurs, the CBOE System will:

(1) disseminate a request for quote (“RFQ”) if the size of the opposite side quote(s) is smaller than the size of the market order(s); and

(2) not move the Contract into an open state for trading until the condition is no longer present or a determination is made to open the Contract pursuant to paragraph (i) below.

If the above condition occurs and a determination is made to open the Contract pursuant to paragraph (i) below, any Market Order that causes this condition will not be executed during the opening process. The Market Order will be executable during open trading once any Order or quote for the Contract has been received by the CBOE System during open trading and if a Threshold Width exists in the Contract. Policy and Procedure I will not be applicable with respect to the execution of the Market Order.

(i) Opening Conditions. If a condition is present within the CBOE System that prevents a Contract from moving into an open state for trading, the senior person in charge of the Help Desk may authorize moving the Contract into an

open state for trading in the interest of a fair and orderly market or in the event of unusual market conditions.

(j) Dissemination of Messages. The dissemination of Pre-Opening Notices, Rotation Notices, EOP Messages, RFQs, and Open Trading Notices pursuant to this Rule 405B are made to market participants that have elected to receive this information.

(k) Spreads. The provisions of paragraphs (a) through (j) above do not apply to spreads.

Adopted May 24, 2015 (15-12). Amended June 30, 2015 (15-17).

406. Execution of Orders by CBOE System

(a) General. At the discretion of the Exchange, any of the following base allocation methods shall apply to the execution of Orders for any Contract by the CBOE System:

(i) Price-Time Priority. Under this method, Orders for any Contract are prioritized according to price and time. If at any time there are two or more such Orders at the best price then available, such Orders are executed in the order in which they were received by the CBOE System.

(ii) Pro Rata Priority. Under this method, Orders for any Contract are prioritized according to price. If at any time there are two or more such Orders at the best price then available, the executable quantity of Contracts is allocated to such Orders on a pro rata basis, taking into account the relative sizes of such Orders; provided that if such pro rata

method would result in a fraction of a Contract being allocated to any Order, such fraction shall be rounded up (if such fraction is equal to or greater than one-half) or down (if such fraction is less than one-half);

provided, further, that if rounding in accordance with the immediately preceding proviso would result in a number of Contracts in excess of the executable quantity, the quantity allocated to the Order that was last received by the CBOE System shall be reduced accordingly.

(b) Priority Overlays. In addition to the base allocation methods set forth in paragraph (a) above, the Exchange may determine that any or all of the following priority overlays shall apply, in a sequence determined by the