Skip to content

/* Attribution-NonCommercial-NoDerivs 2.5 * https://spdx.org/licenses/CC-BY-NC-ND-2.5.html * © 2020 FreightTrust and Clearing Corporation */ = Definitions & Morphemes :idprefix: :idseparator: - :!example-caption: :!table-caption: :page-pagination:

Definitions

Unless the context clearly requires otherwise, the following terms shall have the following meanings when used in these Rules:

Words used in the singular form in the rules and regulations in this chapter shall be deemed to import the plural and vice versa, as the context may require. The following terms, as used in the "Rulebook", or in the rules and regulations in this chapter, shall have the meanings hereby assigned to them, unless the context otherwise requires:

Unless the context clearly requires otherwise, the following terms shall have the following meanings when used in these Rules:

“Account” means a Customer Account or a Member Property Account, as context requires, used in conjunction with the trading or delivery of commodity products. “Appeal Panel” means a panel comprised of individuals appointed by the Board or the Chief Compliance Officer to consider appeals under Rule 602.

“Applicable Law” means with respect to any Person, any statute, law, regulation, rule or ordinance of any governmental authority applicable to such Person, including the CEA, CFTC Regulations, and the rules or regulations of any relevant Self-Regulatory Organization.

“Approved Depository Institution” means a bank, trust company or other depository that has been approved by FreightTrust Clearing as an acceptable location for depositing Clearing Participant funds or Collateral, as applicable.

“Authorized Representative” means an individual designated by a Clearing Participant and registered with FreightTrust Clearing with authority to act on behalf of the Clearing Participant.

“Board” means the board of directors of FreightTrust Clearing, as set forth in the LLC Agreement.

“Business Day” means any day on which the Clearinghouse is open for clearing. References in these Rules to a “day” or “Business Day” shall, unless the context otherwise requires, mean the “Business Day” corresponding to the trading day of the Exchange.

“CEA” means the Commodity Exchange Act, as it may be amended from time to time. “CFTC” means the U.S. Commodity Futures Trading Commission.

“CFTC Regulations” means the rules, regulations and interpretations promulgated by the CFTC pursuant to the CEA, as in effect from time to time.

“Clearinghouse” means FreightTrust Clearing LLC

“Clearing Participant” means an FCM Participant or Direct Clearing Participant who has executed a Clearing Participant Agreement, and to whom the Clearinghouse has granted the right to clear contracts on the Clearinghouse.

“Clearing Participant Agreement” means the agreement for clearing privileges between FreightTrust Clearing and a Clearing Participant.

“Collateral” means digital assets or other assets deposited by a Clearing Participant as from time to time determined by the Clearinghouse as acceptable in accordance with

“Committee” means a committee established by the Board or otherwise, pursuant to the Rules.

“Contract” means, as context requires, any forward contracts, futures contract, options contract or spot contract, agreement, or transaction on a commodity (as such term is defined in the CEA or CFTC Regulations), which has been approved for clearing by Freight Trust & Clearing pursuant to these Rules.

“Customer” shall have the meaning set forth in CFTC Regulation 1.3(k).

“Customer Account” means an account established by an FCM Clearing Participant with FreightTrust Clearing in which the FCM Clearing Participant maintains trades, positions and Margin solely for Customers.

“Default” means, with respect to a Clearing Participant, if such Clearing Participant (a) fails to satisfy any of its Obligations, (b) fails to deliver funds within the time established therefor by Freight Trust & Clearing, © is expelled or suspended from the Exchange, FreightTrust Clearing or any Self-Regulatory Organization, (d) fails to meet the minimum capital and other financial requirements of FreightTrust Clearing, or (e) is Insolvent.

“Direct Clearing Participant” means a Person that submits trades for clearing at FreightTrust Clearing on behalf of its own account(s), has completed a Clearing Participant Agreement and has been granted clearing privileges by the Clearinghouse.

“Directors” means members of the Board.

“Disciplinary Panel” means a panel comprised of individuals appointed by the Board at the recommendation of the Chief Compliance Officer to act in an adjudicative role and fulfill various adjudicative responsibilities and duties described in Chapter 6. “Emergency” shall have the meaning set forth in Rule 207.

“FreightTrust” means Freight Trust & Clearing Corporation a Delaware C-Corporation.

“Exchange” means (TBD). and its respective successors.

“Exchange Committee” includes the Regulatory Oversight, Exchange Participant Committee, Nomination, or Exchange Practices Committees of the Exchange, and any other future or successor committee of the Exchange.

“FCM Clearing Participant” means a Person that is registered with the CFTC as a Futures Commission Merchant, has completed a Clearing Participant Agreement and has been granted clearing privileges by the Clearinghouse.

“Futures Commission Merchant” or “FCM” shall have the meaning set forth in CFTC Regulation 1.3(p).

“Government Agency” means the CFTC and/or any other governmental agency or department regulating the activities of a Clearing Participant.

“Insolvent” and “Insolvency” means the Clearing Participant has become the subject of a bankruptcy petition, receivership proceeding, or an equivalent proceeding.

“LLC Agreement” means the Limited Liability Company Agreement of FreightTrust Clearing, as amended or restated from time to time.

“Margin” means funds or the applicable amount of the deliverable asset required to fully collateralize Contracts as set forth in Rule 403.

“Member Property Account” means an account established by a Clearing Participant with FreightTrust Clearing in which the Clearing Participant maintains trades, positions and Margin solely on its own behalf.

“Obligations” means all financial obligations of a Clearing Participant, however arising, whether absolute or contingent, direct or indirect, due or to become to be due, arising under these Rules or such Clearing Participant’s agreements with FreightTrust Clearing. “Officer” has the meaning set forth in Rule 204.

“Person” means an individual, sole proprietorship, partnership, limited liability company, association, firm, trust, corporation or other entity, as the context may require. “Regulations” means rules, regulations, guidance, or advisories promulgated by the CFTC.

“Removal Event” means (a) the termination of the Clearing Participant Agreement; (b) a materially false or misleading representation or warranty made by the Clearing Participant to FreightTrust Clearing under or in connection with any agreement between FreightTrust Clearing and the Clearing Participant; © the breach by the Clearing Participant of the Rules or any of the terms or provisions of any agreement between FreightTrust Clearing and the Clearing Participant which is not remedied promptly after notice from FreightTrust Clearing; (d) a material violation of the rules of the Exchange, or (e) a Default by the Clearing Participant.

“Rule” means a Rule of FreightTrust Clearing either contained in this Rulebook or in guidance or notices from FreightTrust Clearing.

“Self-Regulatory Organization” shall mean any futures or securities exchange, derivatives clearing organization, securities clearing agency, or National Futures Association.

“Settlement Price” has the meaning set forth in Rule 410. “Transfer Trade” has the meaning set forth in Rule 408.

“UCC” means the Uniform Commercial Code as in effect in the State of Illinois or the State of Delaware.

Business day This term means any day other than a Sunday or holiday that is federally recognized.

Cancellation of insurance means the withdrawal of insurance coverage by either the insurer or the insured. Endorsement means an amendment to an insurance policy. Environmental restoration means restitution for the loss, damage, or destruction of natural resources arising out of the accidental discharge, dispersal, release or escape into or upon the land, atmosphere, watercourse, or body of water of any commodity transported by a motor carrier. This shall include the cost of removal and the cost of necessary measure taken to minimize or mitigate damage to human health, the natural environment, fish, shellfish, and wildlife.

Evidence of security means a surety bond or a policy of insurance with the appropriate endorsement attached.

Financial responsibility **means the financial reserves (e.g., insurance policies or surety bonds) sufficient to satisfy liability amounts set forth in this subpart covering public liability.

For-hire carriage means the business of transporting, for compensation, the goods or property of another. In bulk means the transportation, as cargo, of property, except Division 1.1, 1.2, or 1.3 materials, and Division 2.3, Hazard Zone A gases, in containment systems with capacities in excess of 3500 water gallons. In bulk (Division 1.1, 1.2, and 1.3 explosives) means the transportation, as cargo, of any Division 1.1, 1.2, or 1.3 materials in any quantity. In bulk (Division 2.3, Hazard Zone A or Division 6.1, Packing Group I, Hazard Zone A materials) means the transportation, as cargo, of any Division 2.3, Hazard Zone A, or Division 6.1, packing Group I, Hazard Zone A material, in any quantity. Insured and principal means the motor carrier named in the policy of insurance, surety bond, endorsement, or notice of cancellation, and also the fiduciary of such motor carrier.

Insurance premium means the monetary sum an insured pays an insurer for acceptance of liability for public liability claims made against the insured.

Motor carrier means a for-hire motor carrier or a private motor carrier. The term includes, but is not limited to, a motor carrier’s agent, officer, or representative; an employee responsible for hiring, supervising, training, assigning, or dispatching a driver; or an employee concerned with the installation, inspection, and maintenance of motor vehicle equipment and/or accessories.

Property damage means damage to or loss of use of tangible property. Public liability means liability for bodily injury or property damage and includes liability for environmental restoration.

State means a State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Northern Mariana Islands.Cancellation of insurance means the withdrawal of insurance coverage by either the insurer or the insured.

Endorsement means an amendment to an insurance policy.

Environmental restoration means restitution for the loss, damage, or destruction of natural resources arising out of the accidental discharge, dispersal, release or escape into or upon the land, atmosphere, watercourse, or body of water of any commodity transported by a motor carrier. This shall include the cost of removal and the cost of necessary measure taken to minimize or mitigate damage to human health, the natural environment, fish, shellfish, and wildlife.

Evidence of security means a surety bond or a policy of insurance with the appropriate endorsement attached.

Financial responsibility means the financial reserves (e.g., insurance policies or surety bonds) sufficient to satisfy liability amounts set forth in this subpart covering public liability.

For-hire carriage means the business of transporting, for compensation, the goods or property of another.

In bulk means the transportation, as cargo, of property, except Division 1.1, 1.2, or 1.3 materials, and Division 2.3, Hazard Zone A gases, in containment systems with capacities in excess of 3500 water gallons. In bulk (Division 1.1, 1.2, and 1.3 explosives) means the transportation, as cargo, of any Division 1.1, 1.2, or 1.3 materials in any quantity. In bulk (Division 2.3, Hazard Zone A or Division 6.1, Packing Group I, Hazard Zone A materials) means the transportation, as cargo, of any Division 2.3, Hazard Zone A, or Division 6.1, packing Group I, Hazard Zone A material, in any quantity. Insured and principal means the motor carrier named in the policy of insurance, surety bond, endorsement, or notice of cancellation, and also the fiduciary of such motor carrier. Insurance premium means the monetary sum an insured pays an insurer for acceptance of liability for public liability claims made against the insured.

Motor carrier means a for-hire motor carrier or a private motor carrier. The term includes, but is not limited to, a motor carrier’s agent, officer, or representative; an employee responsible for hiring, supervising, training, assigning, or dispatching a driver; or an employee concerned with the installation, inspection, and maintenance of motor vehicle equipment and/or accessories.

Account means a Customer Account or a Member Property Account, as context requires, used in conjunction with the trading or delivery of commodity products or smart contracts. Appeal Panel means a panel comprised of individuals appointed by the Board or the Chief Compliance Officer to consider appeals under Rule 602.

Applicable Law means with respect to any Person, any statute, law, regulation, rule or ordinance of any governmental authority applicable to such Person, including the CEA, CFTC Regulations, and the rules or regulations of any relevant Self-Regulatory Organization.

Approved Depository Institution means a bank, trust company or other depository that has been approved by FreightTrust Clearing as an acceptable location for depositing Clearing Participant funds or Collateral, as applicable.

Authorized Representative means an individual designated by a Clearing Participant and registered with FreightTrust Clearing with authority to act on behalf of the Clearing Participant.

Board means the board of directors of FreightTrust Clearing, as set forth in the LLC Agreement.

Business Day means any day on which the Clearinghouse is open for clearing. References in these Rules to a day or Business Day shall, unless the context otherwise requires, mean the "`Business Day** corresponding to the trading day of the Platform/Network.

CEA means the Commodity Exchange Act, as it may be amended from time to time. CFTC means the U.S. Commodity Futures Trading Commission.

CFTC Regulations means the rules, regulations and interpretations promulgated by the CFTC pursuant to the CEA, as in effect from time to time.

Chain means the Freight Trust Network, see Network

Clearinghouse means FreightTrust Clearing LLC.

Clearing Participant means an FCM Participant or Direct Clearing Participant who has executed a Clearing Participant Agreement, and to whom the Clearinghouse has granted the right to clear contracts on the Network/Platform.

Clearing Participant Agreement means the agreement for clearing privileges between FreightTrust Clearing and a Clearing Participant.

Collateral means digital assets or other assets deposited by a Clearing Participant as from time to time determined by the Clearinghouse as acceptable in accordance with Rule 403(b).

Committee means a committee established by the Board or otherwise, pursuant to the Rules.

Contract means, as context requires, any forward contracts, futures contract, options contract or spot contract, agreement, or transaction on a commodity (as such term is defined in the CEA or CFTC Regulations), which has been approved for clearing by Freight Trust & Clearing pursuant to these Rules.

Cryptocurrency means any Digital Asset

Customer shall have the meaning set forth in CFTC Regulation 1.3(k).

Customer Account means an account established by an FCM Clearing Participant with FreightTrust Clearing in which the FCM Clearing Participant maintains trades, positions and Margin solely for Customers.

Default means, with respect to a Clearing Participant, if such Clearing Participant (a) fails to satisfy any of its Obligations, (b) fails to deliver funds within the time established therefor by Freight Trust & Clearing, © is expelled or suspended from the Exchange, FreightTrust Clearing or any Self-Regulatory Organization, (d) fails to meet the minimum capital and other financial requirements of FreightTrust Clearing, or (e) is Insolvent.

Direct Clearing Participant means a Person that submits trades for clearing at FreightTrust Clearing on behalf of its own account(s), has completed a Clearing Participant Agreement and has been granted clearing privileges by the Clearinghouse Proper.

Directors means members of the Board.

Digital Asset refers to but is not limited to Bitcoin (XBT) Ethereum (ETH), $BOL, or any Smart-Contract dervied Asset or UTXO asset.

Disciplinary Panel means a panel comprised of individuals appointed by the Board at the recommendation of the Chief Compliance Officer to act in an adjudicative role and fulfill various adjudicative responsibilities and duties described in Chapter 6. Emergency shall have the meaning set forth in Rule 207.

Freight Trust means FreightTrust & Clearing Corporation a Delaware C-Corporation.

Exchange means (TBD). and its respective successors.

Exchange Committee includes the Regulatory Oversight, Exchange Participant Committee, Nomination, or Exchange Practices Committees of the Exchange, and any other future or successor committee of the Exchange.

EVM refers to the Ethereum Virtual Machine

FCM Clearing Participant means a Person that is registered with the CFTC as a Futures Commission Merchant, has completed a Clearing Participant Agreement and has been granted clearing privileges by the Network/Clearinghouse.

Fungible Tokens

Futures Commission Merchant or FCM shall have the meaning set forth in CFTC Regulation 1.3(p).

Genesis File refers to the genesis.json file. This file determines the Network Protocol

Government Agency means the CFTC and/or any other governmental agency or department regulating the activities of a Clearing Participant.

Insolvent and Insolvency means the Clearing Participant has become the subject of a bankruptcy petition, receivership proceeding, or an equivalent proceeding.

Margin means funds or the applicable amount of the deliverable asset required to fully collateralize Contracts as set forth in Rule 403.

Member Property Account means an account established by a Clearing Participant with FreightTrust Clearing in which the Clearing Participant maintains trades, positions and Margin solely on its own behalf.

Network refers to the Blockchain Network generated through the genisis file

Network Participant means any user and/or service provider that transacts, provides services including but not limited to connectivity, block generation, concensus, API access, RPC access, or otherwises participates on-chain.

Network Protocol means the protocol initalized and specificed in the genesis file

Node means a service provider that provides, signs, validates or otherwise propergates blocks generated on the network.

Non-Fungible Tokens

Obligations means all financial obligations of a Clearing Participant, however arising, whether absolute or contingent, direct or indirect, due or to become to be due, arising under these Rules or such Clearing Participant’s agreements with FreightTrust Clearing.

Officer has the meaning set forth in Rule 204.

Person means an individual, sole proprietorship, partnership, limited liability company, association, firm, trust, corporation or other entity, as the context may require.

Protocol can refer to the Network Protocol or a Regime

Regulations means rules, regulations, guidance, or advisories promulgated by the CFTC.

Removal Event means (a) the termination of the Clearing Participant Agreement; (b) a materially false or misleading representation or warranty made by the Clearing Participant to FreightTrust Clearing under or in connection with any agreement between FreightTrust Clearing and the Clearing Participant; © the breach by the Clearing Participant of the Rules or any of the terms or provisions of any agreement between FreightTrust Clearing and the Clearing Participant which is not remedied promptly after notice from FreightTrust Clearing; (d) a material violation of the rules of the Exchange, or (e) a Default by the Clearing Participant.

Rule means a Rule of FreightTrust Clearing either contained in this Rulebook or in guidance or notices from FreightTrust Clearing.

Self-Regulatory Organization shall mean any futures or securities exchange, derivatives clearing organization, securities clearing agency, or National Futures Association.

Settlement Price has the meaning set forth in Rule 410.

Smart Contract means an executable program that runs on the network through the EVM.

Transfer Trade has the meaning set forth in Rule 408.

UCC means the Uniform Commercial Code as in effect in the State of Illinois, California, New York, and Delaware. Interpretation deteremined by parties.

In these Rules, unless the context clearly requires otherwise,

(a) words in the singular include the plural and words in the plural include the singular,
(b) any gender includes each other gender,
(c) references to statutory provisions include those provisions, and any rules or regulations promulgated thereunder, as amended, and
(d) all uses of the word including should be construed to mean including, but not limited to.

Headings included herein are for convenience purposes only and do not form a part of these Rules.

Date and Time References Unless otherwise specified, all references to dates, times or time periods shall refer to, or be measured in accordance with the time in New York City, New York.


Last update: June 27, 2020