BGC Derivative Markets, L.P

Rule Implementation Submission 2021-01 

February 16, 2021

1. The texts of the amended Rules are appended as Attachment A. Any additions are 

underlined and any deletions are struck through.

2. The date of intended implementation for these February 16, 2021.

3. Attached, please find a certification that: (1) these rules comply with the Commodity 

Exchange Act (“Act”), and the Commission’s regulations thereunder.

4. A concise explanation and analysis of the operation, purpose, and effect of each of the 

amended rules appears below.

5. There were no opposing views expressed regarding these amended rules.

6. Confidential treatment is not requested.

CONCISE EXPLANATION AND ANALYSIS OF THE OPERATION, PURPOSE, AND 

EFFECT OF THE RULE AMENDMENT AND ITS COMPLIANCE WITH APPLICABLE 

PROVISIONS OF THE ACT, INCLUDING CORE PRINCIPLES AND THE 

COMMISSION’S REGULATIONS THEREUNDER

Pursuant to Commission Rule 40.6(d)(2)(i), the following is a concise explanation and analysis 

of the operation, purpose, and effect of the amended rules. The attached amendments are 

cumulative and in response to suggestions and guidance from the staff during the course of the 

staff review of the BGCDMLP application for registration as a Swap Execution Facility. These 

amendments are either:

(1) technical corrections to align the rules more closely with the language of Commission 

Rules; and/or

(2) amendments made in response to guidance of Commission staff.

The following chart identifies the changed rules and notes the effect of the change and an 

explanation of the operation, purpose, and effect of the change.
2

CONCISE EXPLANATION AND ANALYSIS OF THE OPERATION, PURPOSE, AND 

EFFECT OF THE RULE AMENDMENT AND ITS COMPLIANCE WITH APPLICABLE 

PROVISIONS OF THE ACT

Rule Rule Title Effect

513(d) Package Transactions To reflect codification of rule.

513(e) Package Transactions To reflect codification of rule.

 513(f) Package Transactions To update rule with MAT/Futures and 

reflect relief reference to 20-31.

 513(g) Package Transactions To update rule with MAT/Non-CFTC 

Swap and reflect codification of rule.

 515(a) Error Trades To reflect codification of rule.

 515(d) Error Trades To make rule more concise on notification 

to the Facility.
3

CERTIFICATIONS PURSUANT TO SECTION 5c OF THE COMMODITY EXCHANGE 

ACT, 7 U.S.C. §7A-2 AND COMMODITY FUTURES TRADING COMMISSION RULE 40.6, 

17 C.F.R. §40.6

I hereby certify that:

(1) the amended Rules above comply with the Commodity Exchange Act, and the 

Commodity Futures Trading Commission’s regulations thereunder; and

(2) concurrent with this submission, BGC Derivative Markets, L.P. posted on its website:

a copy of this submission.

By: Michael C. Sulfaro

Title: Chief Compliance Officer 

Date: February 16, 2021
4

BGC Derivative Markets, L.P. Rules

PART 5. TRADING.

513. Package Transactions.

(d) MAT/Non-MAT (Uncleared). Until November 15, 2022, or such later time as the 

relief in CFTC Letter No. 20-31 may be extendedAs permitted under Commission 

Rules 37.9(d) and 37.9(a)(2) and as pursuant to 37.9(c)(2), a package transaction

consisting of one ormore Swaps that include both a Required Transaction and an 

uncleared Permitted Transaction shall be subject to the procedures of Rule 512.

513. Package Transactions.

(e) MAT/Non-Swap Instruments. As permitted under Commission Rules 37.9(d) and 

37.9(a)(2) and as pursuant to 37.9(c)(2)Until November 15, 2022, or such later 

time as the relief in CFTC Letter No. 20-31 may be extended, the Required 

Transaction leg or legs of a package transaction that consists of one or more

Required Transaction and one or morenon-Swap instrument, shall be subject to 

the procedures of Rule 512; provided however, this provision shall not apply to

U.S. Dollar Spreads which shall be subject tothe procedures of paragraph (a).

513. Package Transactions.

(f) MAT/Futures. Until November 15, 2022, or such later time as the reliefin 

CFTC Letter No. 20-31 may be extended, the Required Transaction leg or legs 

of a package transaction that consists of one or more Required Transaction and

one or moreare contracts for the purchase or sale of a commodity for future 

delivery, shall be subject to the procedures of Rule 512.

513. Package Transactions.

(g)

MAT/Non-CFTC Swap. As permitted under Commission Rules 37.9(d) and 37.9(a)(2) and 

as pursuant to 37.9(c)(2), the Required Transaction leg or legs of a package transaction 

that consists of one or more Required Transaction and one or more of the components is a 

swap over which the CFTC does not have exclusive jurisdiction, shall be subject to the 

procedures of Rule 512.
5

515. Error Trades.

(a) Scope. In accordance with Commission Rules 37.9(e)(1)(ii) and 37.9(e)2(i) Until 

the effective date of any changes in the regulations, as relief is provided in CFTC 

Letter No. 20-01, Rule 515 shall apply where an operational or clerical erroror 

omission made by the Facility, one of the counterparties, or an agent of the

counterparty, causes a trade to be rejected from clearing, where one leg of a 

Package Transaction is rejected from clearing due to the sequencing of the 

submission of the legs (“Rejected Error Trade”), or is identified after the trade has

been cleared (“Cleared Error Trade”)(together “Error Trades”). Legs of a Package 

Transaction that have beenaccepted for clearing are not within the scope of this

Rule.

515. Error Trades.

(d) Consent to correction of Error Trades. In the event that an error comes to the

attention of the Facility, the Facility may correct obvious errors under the

procedures of paragraph (b) or (c) of this Rule 515 without the consent or 

knowledge of the counterparties to the transaction. In the event that the Facility is 

unable to determine how to correct an Error Trade on its face, the Facility shall

inform the counterparties tothe trade and request their assistance in determining the

nature and the substance of theerror. The Facility may not correct such nonobvious errors unless the parties shall agree.

i. Alternatively, for cleared swaps, the Facility may use an ex post facto

review process in which the counterparties determine that an error has

occurred and correct the error. The offsetting trade and the correct

transaction must be executed and submitted for clearing as quickly as

technologically practicable, but no later than 24 hours after the

erroneouscleared swap was executed.

The Participant must notify the Facility in writing, using the Facility 

contact email addresses located in www.bgcsef.com, no later than 24 hours 

after the error trade was executed. The Facility shall conduct an ex post 

facto review of the error trade, offsetting trade, and correct trade on a T+1 

basis. Such review will considerwhether a transaction cancellation or price

adjustment will adversely impact market integrity, facilitate market

manipulation or other illegitimate activity,or otherwise violate the CEA,

Commission regulations, or the SEF’s rules.

The SEF must make an affirmative finding that there was an error as part of

its ex post facto review.