Regulatory compliance for IMAREX and NOS

Imarex intends to meet the regulatory requirements in all relevant jurisdictions of our members.

This enables IMAREX to secure the rights of Members, and to provide the necessary credibility as a professional futures market.

As an international derivatives exchange, IMAREX may be subject to different regulations in different various geographical markets.

Below are the main jurisdictions in which Imarex is authorised and regulated by the relevant authorities:

• Norway:

IMAREX operates from Oslo, and has an official license to operate as an Authorised Marketplace for freight futures under the Norwegian Stock Act of 2000 by the Norwegian Ministry of Finance. The exchange operates under supervision by the Banking, Insurance and Securities Commission (Kredittilsynet) in Norway.

• United States of America:

IMAREX

Imarex is accepted by the Commodity Futures Trading Commission (CFTC) to operate an electronic trading facility as an Excempted Commercial Market (ECM) in reliance on the exemption set forth in section 2(h)(3) of the Commodity Exchange Act as amended by the Commodity Futures Modernization Act of 2000.

Imarex operates as an Exempt Commercial Market pursuant to section 2(h)(3) of the US Commodity Exchange Act (the CEA). Participants are strictly limited to Eligible Commercial Entities as defined by section 1a (11) of the CEA.

NOS

The company is also approved by the American Commodity Futures Trading Commission (CFTC) to carry out clearing of trades on Imarex.

NOS is recognised by the US Commodity Futures Trading Commission (the CFTC) as a multilateral clearing organization (MCO) pursuant to the US Federal Deposit Insurance Corporation Improvement Act (FDICIA). Section 409 of FDICIA provides that a MCO for over-the-counter derivatives may operate in the US if, among other alternatives, the MCO is supervised by a foreign financial regulator that the CFTC, or one of several other US financial regulators, has determined satisfies appropriate standards.

See link to (Click here) CFTC:

• United Kingdom:

IMAREX is neither an authorised person nor an exempt person under the Financial Services and Markets Act ("FSMA").

Under the FSMA, IMAREX may, as an "overseas person", arrange trades in freight derivatives in accordance with paragraph 72 of the Regulated Activities Order 2001 without falling within the scope of the FSMA if it does not contravene section 21 of the FSMA, which broadly restricts IMAREX from engaging in financial promotion other than to investment professionals.

Accordingly, IMAREX will engage in marketing in the United Kingdom only in accordance with section 21 of the FSMA.

• Switzerland:

IMAREX is accepted by the Swiss Banking Commission to operate in Switzerland as a Foreign Stock Exchange. PDF

• Other countries:

IMAREX and NOS complies with requirements of other main markets. Specific regulatory notices may be required to be in official compliance in specific new countries outside those specified.

At present the following domiciles have been cleared for membership:

• Bahamas
• Belize
• Belgium
• Bermuda
• British Virgin Islands
• Cayman Islands
• Colombia
• Denmark
• Finland
• France
• Germany
• Italy
• Isle of Man
• Jersey
• Marshall Island
• Netherlands Antilles (Curacao)
• Norway
• Singapore
• South Africa
• South Korea
• Sweden
• Switzerland
• United Kingdom
• United States of America

Regulatory position of The Norwegian Futures and Options Clearinghouse:

NOS is a clearing house for maritime freight, power and seafood derivatives.

NOS is licensed by the Norwegian Ministry of Finance, and is supervised by the Norwegian Banking, Insurance and Securities Commission (Kredittilsynet). NOS will meet the regulatory requirements of the various markets where cross-border clearing is offered.

NOS has secured authorisation to operate in all jurisdictions relevant for providing clearing for IMAREX .

Please refer to www.nos.no for further details.