9.16 Regulatory Functions

a. Where the Directors consider that circumstances have arisen, or are reasonably likely to arise, in which it would be desirable for any of the Contract Rules and Administration Procedures to be varied in the interests of ensuring the orderly operation and evolution of the Market or pursuant to any of the Exchange’s other regulatory functions, the Directors shall have the power (without prejudice to their powers under any other provision of the Rules) to vary any of the Contract Rules and/or Administration Procedures in any way they deem appropriate to respond to such circumstances in accordance with the Exchange’s regulatory functions. Such circumstances may include, without limitation:

i. where the provisions for the specification, pricing, settlement or other aspects of a Contract are no longer representative of practices in the underlying market to which a Contract relates;

ii. where, without changes to the provisions for the specification, pricing, settlement or other aspects of a Contract, there is a risk of material detriment being caused to the market for that Contract, whether in terms of liquidity, reputation or otherwise;

iii. where a Contract may, without variation, cease to be a viable hedging tool; or

iv. where any aspect of the current business on the Market in respect of any Contract is, in light of any other current or anticipated circumstances, at risk of being conducted otherwise than in an orderly manner and/or so as to afford proper protection to participants in the Market and such risk may be addressed by changes to the Contract Rules and/or Administration Procedures.

b. Such variation may be made notwithstanding that it may affect the performance or value of existing Contracts (or such existing Contracts as may be specified by the Directors). Without limiting their powers hereunder, the Directors will use their reasonable endeavours to keep any such variation to the minimum that they consider reasonably necessary to respond to the circumstances in question.

c. The Directors’ powers under this Rule shall be exercisable by notice posted on the Market. Any variation made under this provision shall take effect at such time and for such period as the Directors shall prescribe, but (without prejudice to the preceding paragraph) shall not take effect earlier than the posting of the notice on the Market. The Directors shall seek to give Members prior notice but, where necessary, changes may take effect immediately upon the posting of such notice or at such other time as the Directors prescribe.

d. Every Contract affected by a variation under this Rule shall remain in full force and effect subject to such variation and shall not be treated as terminated or frustrated or repudiated except so far as may be allowed in the Directors’ notice.

e. Any notice published by the Directors under this Rule may be varied or revoked by a subsequent notice.

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