Financially Cleared Transactions

For a selected group of products, HMX participants have the option to execute financially cleared over-the-counter (OTC) transactions on the HMX platform. Participants can select their clearinghouse of choice for the appropriate and related products between the CME ClearPort© clearing system or ICE Clear. Listed products settle either financially in cash or with physical delivery of product at a designated pre-defined delivery point. Functionally, cleared transactions are executed on HMX in the same manner as a bilateral transaction. Additionally, block trades that are conducted off-exchange can be submitted to either of the above clearinghouses through the HMX system on behalf of clearing participants.

For execution of cleared transactions on HMX, participants must 1) register with either ClearPort© or ICE, 2) have an account in good standing with an approved FCM and 3) separately agree to the terms and conditions of the HMX Platform User Agreement.

Margin Requirements

The respective clearinghouse for the specific product or contract executed sets margin requirements for cleared transactions conducted through HMX.

Regulatory

HMX operates as an Exempt Commercial Market (ECM) pursuant to the Commodity Exchange Act Following Commodity Futures Trading Commission regulations with respect to ECM’s, HMX is subject to certain access, reporting and record-keeping requirements. Because HMX operates as an ECM, all participants on HMX must qualify as an Eligible Commercial Entity (ECE) pursuant to the Commodity Exchange Act.