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Referral Incentive Program FAQ
Thank you for your interest in becoming a Referring Participant for the Cantor Exchange. Below we have compiled a list of frequently asked questions regarding the Cantor Exchange Referral Incentive program.

Frequently Asked Questions


What does it mean to be a Cantor Exchange Referring Participant?

Anyone who solicits or refers another person to become a Participant of Cantor Exchange or who solicits another Participant’s Orders must become a Cantor Exchange Referring Participant. Examples of such activities include, but are not limited to, anyone who solicits another person to become a Participant at Cantor Exchange, or who advises another person that he or she should trade binary options on Cantor Exchange, or who solicits another person in respect of the entry of Orders on Cantor Exchange.

Who may become a Cantor Exchange Referring Participant?
Anyone may become a Cantor Exchange Referring Participant by simply agreeing to the Cantor Exchange Participant Agreement and the Cantor Exchange Referring Participant Supplement, and by referring Participants to Cantor Exchange. Individuals, independent software vendors (ISVs), Commodity Trading Advisors and Introducing Brokers are eligible to become Referring Participants. Please see the remaining FAQs with important information about becoming a Referring Participant and registration with the National Futures Association (“NFA”).

Is there any cost to become a Cantor Exchange Referring Participant?
No, there is no cost to become a Referring Participant.

Must a Referring Participant be registered with the NFA?
Cantor Exchange rules require that if applicable, a Referring Participant be registered or exempt from registration in accordance with the Commodity Exchange Act and rules thereunder. Under the U.S. Commodity Exchange Act and the rules thereunder, many solicitation and/or advisory activities, including those that might be engaged in by Referring Participants, require registration with the NFA. There are also certain exemptions from NFA registration that may apply. Applicants to be Referring Participants are urged to consult with their counsel about these requirements.
Cantor Exchange has developed the 2015 Referring Participant Incentive Program in recognition of the obligations of a Referring Participant to Cantor Exchange and the benefits to Cantor Exchange of increased liquidity associated with the activities of Referring Participants.
Cantor Exchange will monitor Referring Participants for compliance with the rules of the exchange and adherence to the terms of the respective Programs.

My firm is an NFA registered Introducing Broker. How does the Cantor Exchange Incentive Program work in this case?
As posted on the exchange website, you will receive a payment from the fees collected by Cantor Exchange for the number of round turns traded by any Cantor Exchange Participant for whom you are a Referring Participant. In this regard, a Participant identifies you as having referred the Participant to the exchange or as otherwise acting as their Referring Participant. The relationship between that Participant and you may be determined at the time that the Participant first registers, uses a trading interface provided by you, or otherwise lets Cantor Exchange know that the referring relationship exists. Please note, Cantor Exchange is a non-intermediated exchange and therefore the Participant does all trading exclusively and directly with Cantor Exchange. Introducing Brokers may not place Orders for their clients into Cantor Exchange at any time.

My firm is an NFA-registered Commodity Trading Advisor. How does the Program work in this case?
Similar to Introducing Brokers, if you solicit or are providing trading advice or other similar services directly to Participants who are natural persons trading on Cantor Exchange, you will receive a Program payment from the fees collected by Cantor Exchange for the number of round turns traded by any Cantor Exchange Participant that identifies you as the Referring Participant. The relationship between that Participant and you may be determined at the time that the Participant registers, uses a trading interface provided by you, or otherwise lets Cantor Exchange know that the relationship exists.
Please note, Cantor Exchange is a non-intermediated exchange and therefore the Participant does all trading exclusively and directly with Cantor Exchange. Commodity Trading Advisors may not place orders for their clients into Cantor Exchange at any time. Moreover, Commodity Trading Advisors are permitted to qualify as Referring Participants only with respect to Participants that are natural persons; Participants that are entities, such as commodity pools, are not permitted to be referred by a Referring Participant.

My firm is an independent software vendor (ISV) and we are not registered with the NFA in one of the categories above. How does the Program work in this case?
Independent Software Vendors that connect to Cantor Exchange are required to sign the exchange’s Vendor Connectivity Agreement (VCA) and typically will not also be a Referring Participant. In this case, the ISV contracts directly with the Cantor Exchange Participant with respect to its services.
However, ISVs who have signed Cantor Exchange’s VCA and who additionally offer services as a Referring Participant and have signed an agreement with Cantor Exchange to act in this capacity (as a Referring Participant) will qualify for the Program.
Please note that an ISV should confirm with its counsel that the activities in which it is engaging do not require registration with NFA. Payments made to ISV/Referring Participants will be made as provided under the Program payment schedule and will not be made on a per-trade basis.

I am an individual Participant and wish to become a Referring Participant. May I participate in the Program and are there any limitations on my participation?
Yes, individuals may become Referring Participants and participate in the Program. When you register as a Referring Participant you will receive an ID that should be given to those referred by you and provided by them to the exchange when they apply to become a Cantor Exchange Participant.
However, you should be aware that you are responsible for ascertaining whether your activities require registration with the NFA. Unless you are registered with the NFA as an Introducing Broker or Commodity Trading Advisor, Cantor Exchange will permit you to refer no more than 15 Participants in any 12-month period. However, please note that even with this exchange limitation other aspects of your business activities may require that you register. You should consult with your counsel on registration requirements.

I run a newsletter. May I become a Referring Participant and participate in the Program?
Please note that you should confirm with your counsel whether the activities in which you are engaging require registration with NFA. If you are not registered with NFA, please see the above response for individuals acting as Referring Participants. If you are registered with the NFA, please see the response applicable to registered IBs or CTAs.

Is the Program payment structure posted on the Cantor Exchange website the only one, or may my firm negotiate different terms reflecting the different nature of our referrals?
Consistent with CFTC regulations, Cantor Exchange provides impartial access to its markets and services including comparable fee structures for all Participants and comparable benefits to all those eligible for the Program. The Program posted on the exchange’s website is the only incentive program currently offered by the exchange; no bespoke terms or conditions are permitted.

May a Participant identify with more than one Referring Participant?
Yes. A Participant may identify more than one Referring Participant; however each round turn traded will be identified with a single Referring Participant for purposes of the Program payments.

May a Participant be his or her own Referring Participant?
No, a Participant may not self-refer.

May a Participant cancel his or her referred relationship at any time?
Yes, a Participant should simply notify Cantor Exchange at any time that he or she wishes to change or cancel a Referring Participant relationship that the Participant previously identified.

What is the amount of the Incentives?
Upon meeting all obligations of the program, participants in the program will be eligible to receive predetermined incentives as follows.
Schedule of Incentive Payments to Referring Participants

Payments are made per round turn according to the following schedule:
  • For Referring Participants (other than Independent Software Vendors):
    • $1.00 per 100 round turns if Cantor Direct front-end connection is via API interface.
    • $0.75 per 100 round turns if Cantor Direct front-end connection is via ISV interface

Should you have any other questions or for more information about becoming a Referring Participant, please contact:
Rod Drown
+1 877-300-4555
customerservice@cantorexchange.com
Participant Support participants@cantorexchange.com +1 212-829-5440
                               For trade and market support. Available 24x5.
Customer Service customerservice@cantorexchange.com +1 877-300-4555
                    For general inquiries and new applicants. M-F 9am-5pm ET.