(a)           Trading Against Customer Orders – During an e-cbot trading session, a member or Registered User shall not knowingly cause to be entered or knowingly enter into a transaction in which he takes the opposite side of an order entered on behalf of a customer, for the member’s or Registered User’s own account or his employer’s proprietary account unless the customer order has been entered immediately upon receipt and has first been exposed on the e-cbot platform for a minimum 5 seconds for futures contracts and a minimum of 15 seconds for options contracts. Such transactions that are unknowingly consummated shall not be considered to have violated this regulation.

(b)           Crossing Orders – Independently initiated orders on opposite sides of the market for different beneficial account owners that are immediately executable against each other may be entered without delay provided that the orders did not involve pre-execution communications.

                Opposite orders for different beneficial accounts that are simultaneously placed by a party with discretion over both accounts may be entered provided that one order is exposed on the e-cbot platform for a minimum of 5 seconds for futures contracts and a minimum of 15 seconds for options contracts.

                An order allowing for price and/or time discretion, if not entered immediately upon receipt, may be knowingly entered opposite a second order entered by the same firm only if the second order has been entered immediately upon receipt and has been exposed on the e-cbot platform for a minimum of 5 seconds for futures contracts and a minimum of 15 seconds for options contracts.

(c)           Pre-Execution Communications Prohibited

                          (i)         Pre-execution communications are communications between two market participants for the purpose of discerning interest in the execution of a transaction prior to the entry of an order on the e-cbot platform.

                   (ii)      Pre-execution communications and transactions arising from such communications are prohibited in all products during all hours except with respect to block trades pursuant to Rule 526 or Exchange of Futures for Related Position transactions pursuant to Rule 538. Violations of this regulation shall be considered an act detrimental to the interest and welfare of the Exchange. (11/29/07)