Securities and Exchange Commission December 1, 2020 – Federal Register Recent Federal Regulation Documents

The Minneapolis Grain Exchange, Inc. (or any successor thereto) (``MGEX'') has expressed an interest in listing and trading contracts for sale for future delivery on the SPIKES\TM\ Index (``SPIKES'') (such futures contracts (and any options thereon) hereinafter referred to as the ``Product''). After careful consideration, the Securities and Exchange Commission (``SEC'' or ``Commission'') believes that the Product has the potential to offer competition with the only comparable incumbent volatility product in the market, and is therefore conditionally exempting the Product from the definition of ``security future'' for all purposes other than as follows: First, the anti-fraud and anti-manipulation provisions under the Exchange Act will continue to apply; second, MGEX will continue to be subject to the requirement to register with the Commission as a national securities exchange (which may be done pursuant to a notice filing) and comply with related amendment and supplemental filing requirements; and third, MGEX will continue to be required, in its capacity as a national securities exchange, to make available to the Commission (or its representatives) books and records relating to transactions in the Product, upon request, and to make itself available to inspection and examination by the Commission (or its representatives), upon request. However, because registration as a notice-registered national securities exchange is intended only as a means to facilitate the Commission's ability to exercise its books and records and examination authority over the Product, MGEX will be exempt from compliance with all other requirements applicable to national securities exchanges. Taken together, these actions will allow the Product to trade as a futures contract on MGEX, a designated contract market (``DCM'') and derivatives clearing organization (``DCO'') that is subject to the jurisdiction of the Commodity Futures Trading Commission (``CFTC''), consistent with the terms and conditions set forth below.