Trades mean any transaction occuring between trading partners within a trading channel

The exchange is also referenced as the combinator - it is the protocol implementation that interfaces directly with different message queue brokers hence the name exchange

Submission of Trades.

(A). Upon matching of a trade effected on or pursuant to the rules of
the Exchange, the Exchange shall promptly submit to FreightTrust
Clearing a trade report generated by the electronic trading system of
the Exchange. The report shall show for each trade

(i) the identity of each Clearing Participant and/or Network Participant,
(ii) whether bought or sold,
(iii) quantity,
(iv) delivery month,
(v) the price,
(vi) whether for house, Customer, or non- Customer account, and
(vii) such other information as may be required by FreightTrust Clearing.

(B). If FreightTrust Clearing determines that any trade report submitted
pursuant to this Rule 401 contains a material error or is otherwise not
eligible for clearing by FreightTrust Clearing, FreightTrust Clearing
may reject such trade and notify the Exchange of such rejection, setting
forth the basis of such objection.

402. Clearance and Substitution.

(a) The submission of a Contract (Smart Contract or a Normal Contract)
to FreightTrust Clearing by or on behalf of the buying and selling
Clearing Participants shall constitute a request, by such Clearing
Participants, for the clearing of such Contract by FreightTrust
Clearing. Upon the acceptance thereof by FreightTrust Clearing, which
ordinarily shall be deemed to occur upon the receipt of matched trade
data from the Exchange, the Contract shall be novated and FreightTrust
Clearing shall be substituted as, and assume the position of, seller to
the Clearing Participant buying such Contract and buyer from the
Clearing Participant selling such Contract. Upon such substitution, such
buying and selling Clearing Participants shall be released from their
obligations to each other, and FreightTrust Clearing shall be deemed to
have succeeded to all the rights, and to have assumed all the
Obligations, of the Clearing Participants that were party to such
Contract, in each case as provided in the Rules.

(b) Where an FCM Clearing Participant and/or Network Participant acts to
clear a Contract made for the account of a Customer, the FCM Clearing
Participant becomes obligated to FreightTrust Clearing, and FreightTrust
Clearing becomes obligated to the FCM Clearing Participant, with respect
to such Contract in the same manner and to the same extent as if the
Contract were for the account of the FCM Clearing Participant.

(c) Notwithstanding the provisions of paragraph (a), a trade shall not
be accepted for clearing, and FreightTrust Clearing shall not be
substituted for a given Contract, unless the Margin for such Contract is
made available to FreightTrust Clearing, by or for both Clearing
Participants, pursuant to Rule 403.

403. Margin

(a) Each Network and Clearing Participant SHALL deposit funds or
Collateral in the form of the applicable quantity of the deliverable
underlying commodity and/or deliverable asset required to fully
collateralize orders pursuant to the contract specifications contained
in the Rulebook, including payment of premiums, payment in exchange for
delivery or to fulfill delivery obligations, as applicable, prior to
submission of such orders to the Exchange. Fund and Collateral transfers
made by a Clearing Participant to the Clearinghouse or by the
Clearinghouse to a Clearing Participant are irrevocable and
unconditional when effected. The Clearing Participant shall be
responsible for all fees associated with wires or transfers of
Collateral to the Clearinghouse.

(b) Subject to the terms and conditions of the Clearinghouse, Clearing
Participants may deposit the following as Margin:

(1) cash;
(2) the underlying commodity; and
(3) any other form of Collateral deemed acceptable by the Risk Management Committee upon the Risk Management Committee’s approval of such Collateral as communicated through Clearinghouse notices. The Clearinghouse will value margin Collateral as it deems appropriate.

(c) Funds and Collateral must be and remain unencumbered. Except as
otherwise provided herein, each Clearing Participant posting funds or
Collateral hereby grants to the Clearinghouse a first priority security
interest in and unencumbered lien against any Margin, Contracts,
positions and other funds, property and any other Collateral deposited
with the Clearinghouse by the Clearing Participant, including without
limitation such Clearing Participant’s Member Property Accounts, the
Customer Accounts of such Clearing Participant’s Customers, and all
securities entitlements held therein. A Clearing Participant shall
execute any documents required by FreightTrust Clearing to create,
perfect and enforce such lien. Each Clearing Participant hereby agrees
that with respect to any funds or Collateral which is or may be credited
to the Clearing Participant’s Member Property Account or Customer
Account, as applicable, the Clearinghouse shall have control pursuant to
Section 9-106(a) and 8-106(e) of the UCC and a perfected security
interest pursuant to Section 9-314(a) of the UCC.

(d) FreightTrust Clearing may assign, pledge, repledge or otherwise
create a lien on or security interest in, and enter into repurchase
agreements involving, Margin, Contracts, positions and other funds,
property and any other Collateral deposited with the Clearinghouse by
the Clearing Participant, as permitted by CFTC Regulations, held in or
for such Clearing Participant’s Member Property Accounts or the Customer
Accounts of such Clearing Participant’s Customers to secure the
repayment of funds that may be borrowed by FreightTrust Clearing.

(e) Clearing Participant must transfer the funds and Collateral to the
Clearinghouse which will hold funds and Collateral on behalf of the
Clearing Participant. FreightTrust Clearing will credit to the Clearing
Participant the funds and Collateral that such Clearing Participant
deposits. Funds and Collateral shall be held by the Clearinghouse until
a Clearing Participant submits a withdrawal notification, unless
otherwise stipulated by these Rules. FreightTrust Clearing will not be
responsible for any diminution in value of funds or Collateral that a
Clearing Participant deposits with the Clearinghouse, except, in the
case of cash, the diminution of value is as a direct result of
investment activity of the Clearinghouse, such activity having been
conducted in full compliance with CFTC Regulations. Any fluctuation in
markets is the risk of each Clearing Participant. Any interest earned on
Clearing Participant funds or Collateral may be retained by the
Clearinghouse.

(f) If a Clearing Participant is in Default, FreightTrust Clearing may
foreclose on and sell any of the Margin deposited by such Clearing
Participant without notice.

(g) FreightTrust Clearing shall be empowered to invest and reinvest all
or part of the funds constituting Margin. Such investments shall be for
the account and risk of FreightTrust Clearing, and any income and gains
on such investments and interest on such deposits shall belong to
FreightTrust Clearing and may be withdrawn from the account holding the
Margin and deposited with the general funds of FreightTrust Clearing.

404. Offset and Settlement.

(a) Where, as the result of novation under Rule 402, a Clearing
Participant has bought and sold a Contract on or subject to the Rules of
the Exchange with the same expiration, or otherwise deemed equivalent by
the Clearinghouse, the purchase and sale will be offset by FreightTrust
Clearing through the timely submission of instructions by the Clearing
Participant containing such information as FreightTrust Clearing may
require in accordance with its procedures. A Clearing Participant shall
be required to pay the loss or entitled to collect the profit, as the
case may be, upon such offsetting transactions, and shall have no
further rights or be under any further obligation with respect thereto.
For purposes of this Rule 404, the first Contracts made shall be deemed
the first Contracts offset.

(b) Contracts made and designated by the Network or Clearing Participant
as for the Network and/or Clearing Participant’s Customer Account shall
not be offset under this Rule 405 against Contracts designated by the
Clearing Participant as for the Clearing Participant’s own Member
Property Account.

405. Approved Depository Institutions.

A bank, trust company or other depository that meets such financial and
other requirements of FreightTrust Clearing may be designated by
FreightTrust Clearing as an Approved Depository Institution.

406. Statement of Trades and Contracts.

FreightTrust Clearing shall in the manner and at the time that it
determines from time to time make available to a Clearing Participant an
accounting of trades and Contracts for each Business Day on which such
Clearing Participant has trades to be cleared or Contracts open with
FreightTrust Clearing. Any amounts the Clearing Participant has posted
to FreightTrust Clearing under Rule 403 shall be indicated on this
statement

409. Settlement Prices.

As used in the Rules, the term “Settlement Price” means the settlement
price for a Contract for which positions remain open, as determined,
intra-day and at the close of regular trading hours, by the Exchange in
accordance with its rules, except in the case of manifest error or where
FreightTrust Clearing believes that such settlement price does not
reasonably reflect the value or price of the Contract, in which case
FreightTrust Clearing, using its best efforts to consult with the
Exchange, shall determine the official Settlement Price; provided, that
FreightTrust Clearing shall in such circumstances promptly notify the
Exchange and Clearing Participants, and the reasons for that
determination and the basis for the Settlement Price determined by
FreightTrust Clearing shall be published in a notice to the Exchange and
Clearing Participants.

410. Delivery

After trading ceases for a Smart Contract and/or Normal Contract that is
physically settled, the Clearinghouse shall transfer the underlying to
the Account of the Clearing Participant that is required to accept
delivery, from the Account of the Clearing Participant obligated to make
delivery, such full collateralization having been transferred to the
Clearinghouse’s custody at the inception of the trade. Deliveries will
occur on the Clearinghouse’s books and records unless otherwise
specified in the Exchange contract specifications.

411. Reporting.

Network and Clearing Participants shall make such reports in respect of
trades, Smart Contracts, Normal Contracts settlements and deliveries as
may be as prescribed by FreightTrust Clearing.

412. Recieved

Subject to the rates, classifications and rules that have been
established by the Carrier and are available on request to the Shipper
(Shipper defined in 49 U.S.C.A. § 13102(13)(c)), and to all applicable
state and federal regulations. Shipper 1) warrants it has read all
applicable contract(s) or Carrier’s applicable tariff(s) and the
limitation of liability provisions set forth therein; and 2) has actual
knowledge of and accepts the applicable contract or tariff terms,
including the limits on carrier liability. Carriers’ tariff(s),
including OD Rules 100, take precedence in the event of any terms or
conditions conflicts.