docker-compose gives SSL verification

Question

TLS based docker daemon is running on EC2 host.

docker client local to the docker daemon works fine, but docker-compose gives below error:

$ export DOCKER_HOST=tcp://172.31.3.2:2376 DOCKER_TLS_VERIFY=1
ubuntu@ip-172-31-3-2:~$ docker --tls image ls
REPOSITORY          TAG                 IMAGE ID            CREATED             SIZE
hello-world         latest              fce289e99eb9        8 months ago        1.84kB

ubuntu@ip-172-31-3-2:~$ docker image ls
REPOSITORY          TAG                 IMAGE ID            CREATED             SIZE
hello-world         latest              fce289e99eb9        8 months ago        1.84kB

ubuntu@ip-172-31-3-2:~$ docker-compose -f jenkinsDocker/docker-compose.yml  -p jenkins build
Building slavedotnet
ERROR: SSL error: HTTPSConnectionPool(host='172.31.3.2', port=2376): Max retries exceeded with url: /v1.21/build?q=False&pull=False&t=jenkins_slavedotnet&nocache=False&forcerm=False&rm=True (Caused by SSLError(SSLError(1, u'[SSL: TLSV1_ALERT_PROTOCOL_VERSION] tlsv1 alert protocol version (_ssl.c:727)'),))
ubuntu@ip-172-31-3-2:~$ 

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Below is the configuration file used before creating server certs.

{
   "CN":"ec2-35-18x-xxx-xxx.ca-central-1.compute.amazonaws.com",
   "hosts": [
         "ec2-35-1xx-xxx-xxx.ca-central-1.compute.amazonaws.com",
         "ip-172-31-3-2.ca-central-1.compute.internal",
         "35.18x.xxx.xxx",
         "172.31.3.2"
   ],
   "Key": {
        "algo": "rsa",
        "size": 4096
   },
   "names":  [
       {
            "C":  "Canada",
            "ST": "Saskatchewan",
            "L": "Regina",
            "O": "100000 Canada Inc.",
            "OU": "Engineering"
       }
   ]
}

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here is yml file for docker-compose tool.

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Why docker-compose does not connect to docker daemon? using TLS...