SUBMISSION COVER SHEET 

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): ___________________________ Organization: ______________________________________________________________________ Filing as a: DCM SEF DCO SDR Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): ___________ Filing Description:

SPECIFY FILING TYPE Please note only ONE choice allowed per Submission. 

Organization Rules and Rule Amendments 

Certification § 40.6(a)

Approval § 40.5(a) 

Notification § 40.6(d) 

Advance Notice of SIDCO Rule Change § 40.10(a) 

SIDCO Emergency Rule Change § 40.10(h) 

Rule Numbers: ____________________________________________________________________ New Product Please note only ONE product per Submission. 

Certification § 40.2(a)

Certification Security Futures § 41.23(a) 

Certification Swap Class § 40.2(d) 

Approval § 40.3(a) 

Approval Security Futures § 41.23(b) 

Novel Derivative Product Notification § 40.12(a) 

Swap Submission § 39.5 

Official Product Name: _____________________________________________________________ 

Product Terms and Conditions (product related Rules and Rule Amendments) 

Certification § 40.6(a) 

Certification Made Available to Trade Determination § 40.6(a) 

Certification Security Futures § 41.24(a) 

Delisting (No Open Interest) § 40.6(a) 

Approval § 40.5(a) 

Approval Made Available to Trade Determination § 40.5(a) 

Approval Security Futures § 41.24(b) 

Approval Amendments to enumerated agricultural products § 40.4(a), § 40.5(a) 

“Non-Material Agricultural Rule Change” § 40.4(b)(5) 

Notification § 40.6(d) 

Official Name(s) of Product(s) Affected: ________________________________________________ Rule Numbers: ______________________________________________________________________

SpectrAxe LLC

In accordance with Commission Regulation 40.6(a), this is a submission by SpectrAxe LLC ("SpectrAxe") of amendments to 

its Rulebook for the reasons listed in Attachment A to this filing.

03/20/2023

Rules 502 and 503
March 20, 2023

Submitted via CFTC Portal 

Mr. Christopher J. Kirkpatrick 

Office of the Secretariat 

Commodity Futures Trading Commission 

Three Lafayette Centre 

1155 21st Street, N.W. 

Washington, D.C. 20581 

Re: SpectrAxe LLC – Amendment of Rulebook (Rules 502 and 503) 

Dear Mr. Kirkpatrick: 

Pursuant to Section 5c(c) of the Commodity Exchange Act (the “Act”) and Section 40.6(a) of the 

regulations of the Commodity Futures Trading Commission (the “Commission”), SpectrAxe LLC 

(“SpectrAxe”) hereby submits amendments to its Rulebook related to the above-captioned Rules 

(the “Amended Rules”). Specifically, the Rulebook has been amended as detailed in Attachment 

A. 

The amendments will become effective on April 3, 2023, no fewer than ten business days from 

the date hereof. 

In connection with this submission, SpectrAxe hereby notifies the Commission that: 

1. SpectrAxe certifies that it has posted a notice of this pending certification with the

Commission and a copy of this submission on SpectrAxe’s website, including redlines

of the Amended Rules, which are attached hereto as Attachment B, and a copy of the

Amended Rules, which are attached hereto as Attachment C;

2. SpectrAxe certifies that the Amended Rules comply with the Act and the Commission’s

regulations thereunder; and

3. No substantive opposing views with respect to the Amended Rules were expressed to

SpectrAxe by its governing board or committee members, members of SpectrAxe or

market participants.

* * *

Should you have questions regarding this submission, please do not hesitate to contact Cheryl L. 

Isaac, K&L Gates, LLP at +1-202-778-9089 or Cheryl.Isaac@klgates.com, or the undersigned at 

+1-212-651-3186 or bflaster@spectraxe.com.

Very truly yours, 

Chief Compliance Officer 

SpectrAxe 

Bradley Flaster
Mr. Christopher J. Kirkpatrick 

Commodity Futures Trading Commission 

March 20, 2023 

2 

Attachment A

Explanation of Changes 

Rule Description of Change Explanation of Change 

502 (Required 

Notices) 

Sections (ii) through (viii) under 

Rule 502(b) were re-included. 

SpectrAxe received a request by the 

Commission to re-include these 

provisions in the Rulebook. 

This change does not directly implicate 

the Core Principles.

503 (Books 

and Records; 

Cooperation in 

Proceedings) 

References to Authorized Users 

and Client Accounts were reincluded. 

SpectrAxe received a request by the 

Commission to re-include references to 

Authorized Users and Client Accounts. 

This change does not directly implicate 

the Core Principles.
Mr. Christopher J. Kirkpatrick 

Commodity Futures Trading Commission 

March 20, 2023 

3 

Attachment B 

Redline Versions of the Amended Rules 

(Rules 502 and 503) 
313798107.13313798107.14

55

417. Message Traffic

The Company may at any time restrict or establish utilization fees in respect of Message

Traffic, either with respect to all or any Participants and Authorized Users in order to

safeguard the security or operations of the SEF, or to preserve market integrity, fair and

orderly trading, or if otherwise in the public interest.

418. Work-Up Protocol

The Company may adopt rules and implement trading protocols from time to time to

allow Participants to engage in work-up sessions following the execution of trades

pursuant to Rule 404 and as may be permitted by CFTC Regulations.

CHAPTER 5. OBLIGATIONS OF PARTICIPANTS, PFIs AND THEIR AUTHORIZED USERS

501. Duties and Responsibilities of Participants and their Authorized Users

(a) Each Participant and its Authorized Users, shall:

(i) use the SEF in a responsible manner and not for any improper purpose;

(ii) use the SEF only to conduct business that is subject to these Rules and

in a manner consistent with these Rules;

(iii) comply with these Rules, submit to the jurisdiction of the Company to

enforce these Rules and act in a manner consistent with these Rules;

(iv) observe high standards of market conduct, fair dealing, and just and

equitable principles of trade while conducting or seeking to conduct any

business connected with or concerning the Company;

(v) not knowingly mislead or conceal any material fact or matter required to

be disclosed in any dealings or filings with the Company or in connection

with a disciplinary proceeding; and

(vi) keep all User IDs, account numbers and passwords related to the SEF

confidential.

(b) Participants shall comply with all applicable anti-spoofing policies for Swaps

which the Company posts on the SEF or sets forth in Notices to Participants

from time to time.

502. Required Notices

(a) Each Participant shall promptly notify the CCO upon becoming aware of any of

the following events, in each case, with respect to the Participant’s status, and
313798107.13313798107.14

56

the status of its Authorized Users, which relates to or may affect its or their

participation or conduct on the SEF:

(i) any material changes to information provided to the Company in

connection with an application for Participant or Authorized User status;

(ii) any refusal of admission to any self-regulatory organization, or withdrawal

of an application for membership or participant status in a self-regulatory

organization, by the Participant or any of its Authorized Users;

(iii) any expulsion, suspension or fine in excess of $50,000 (whether through

an adverse determination, voluntary settlement or otherwise) imposed on

the Participant or any of its Authorized Users, by any self-regulatory

organization;

(iv) any denial or withdrawal of an application for registration or license with

respect to the Participant or any of its Authorized Users by or from any

government agency or self-regulatory organization, and any revocation,

suspension or conditioning of a registration or license granted by any

government agency or self-regulatory organization to the Participant or

any of its respective Authorized Users;

(v) the commencement of any judicial or administrative proceeding against

the Participant or any of its respective Authorized Users by a government

agency or the imposition of a fine in excess of $50,000, cease and desist

order, denial of trading privileges, censure or other sanction or remedy

(whether through an adverse determination, voluntary settlement or

otherwise) imposed by any government agency or self-regulatory

organization;

(vi) the indictment or conviction of, or any confession of guilt or plea of guilty

or nolo contendere by the Participant or any of its Authorized Users,

senior officers or principals for any felony or for any misdemeanor

involving, arising from, or related to, the purchase or sale of any Swap or

other financial instrument, or involving or arising from fraud or moral

turpitude;

(vii) the bankruptcy or insolvency of the Participant or any of its Affiliates; and

(viii) the failure of any Participant to be an Eligible Contract Participant.

(b) Each PFI shall promptly notify the CCO upon becoming aware of any of the

following events, in each case, with respect to the PFI’s status, and the status of

its Authorized Users, which relates to or may affect its or their participation or

conduct on the SEF:
313798107.13313798107.14

57

(i) any material changes to the information provided to the Company in

connection with the information provided to the Company in the PFI

Facilitation Agreement.;

(ii) any refusal of admission to any self-regulatory organization, or withdrawal

of an application for membership or participant status in a self-regulatory

organization, by the PFI or any of its Authorized Users;

(iii) any expulsion, suspension or fine in excess of $250,000 (whether

through an adverse determination, voluntary settlement or otherwise)

imposed on the PFI or any of its Authorized Users, by any self-regulatory

organization;

(iv) any denial or withdrawal of an application for registration or license with

respect to the PFI or any of its Authorized Users by or from any

government agency or self-regulatory organization, and any revocation,

suspension or conditioning of a registration or license granted by any

government agency or self-regulatory organization to the PFI or any of its

respective Authorized Users;

(v) the commencement of any judicial or administrative proceeding against

the PFI or any of its respective Authorized Users by a government

agency or the imposition of a fine in excess of $250,000, denial of

Trading Privileges, cease and desist order, censure or other sanction or

remedy (whether through an adverse determination, voluntary settlement

or otherwise) imposed by any government agency or self-regulatory

organization;

(vi) the indictment or conviction of, or any confession of guilt or plea of guilty

or nolo contendere by the PFI or any of its Authorized Users, senior

officers or principals for any felony or for any misdemeanor involving,

arising from, or related to, the purchase or sale of any Swap or other

financial instrument, or involving or arising from fraud or moral turpitude;

(vii) the bankruptcy or insolvency of the PFI or any of its Affiliates; and

(viii) the failure of any PFI to be an Eligible Contract Participant.

(c) Each Participant and PFI shall promptly notify the Company upon becoming

aware of an error or omission in swap transaction and pricing data, including

Required Swap Creation Data, for a Trade by contacting the Company pursuant

to Rule 407. Participants must promptly notify their PFI of the error or omission if

they become aware of the error or omission first. PFIs must promptly notify their

Participants of the error or omission if they become aware of the error or

omission first.
313798107.13313798107.14

58

Participants and PFIs must correct the error or omission by submitting the

corrected or completed data to the SEF as required by CFTC Regulation 43.3(e)

(Method and Timing for Real-Time Public Reporting) or applicable no-action

relief issued by the CFTC.

503. Books and Records; Cooperation in Proceedings

(a) Each Participant and, PFI, Authorized User, and Client Account shall prepare

and keep current all books, ledgers and other similar records (including, but not

limited to, records of any such Person’s activity in the index or instrument used

as a reference price, the underlying commodity, and related derivatives

markets), in the manner prescribed by the CEA, CFTC Regulations and these

Rules and shall prepare and keep current such other books and records and

adopt such forms as the Company may from time to time prescribe. Such books

and records shall be made available to the Company and its authorized

representatives, upon request during regular business hours, and the Company

agrees to adhere to reasonable logical and physical access and security

procedures of such Participant or, PFI, Authorized User, and Client Account and,

with respect to the CFTC, the Department of Justice and their respective

authorized representatives, upon request in accordance with Applicable Law

including CFTC Regulations 37.203 (Rule Enforcement Program) and 37.404

(Ability to Obtain Information).

(b) Upon reasonable prior notice, the Company may require a Participant or, PFI, Authorized User, or Client Account to furnish anysuch information previously not

provided to the Company concerning the Participant’s or, PFI’s, Authorized

User’s, and Client Account’s business that is subject to these Rules as the

Company deems necessary to enable it to perform its obligations under

Applicable Law, including CFTC Regulations 37.203 (Rule Enforcement

Program) and 37.404 (Ability to Obtain Information), including information

relating to (i) Trades entered into pursuant to the rules of the SEF, including the

information required under CFTC Regulation 37.404(b); and (ii) information

requested by a government agency relating to the Company and/or the

Company’s compliance with Applicable Law that the Company believes is

maintained by, or otherwise in the possession of, a Participant or, PFI, Authorized User, or Client Account. (c) All data and information provided to or obtained by the Company pursuant to this

Rule 503 shall be subject to the confidentiality provisions in Rule 1106.

504. System Security

Each Participant and PFI shall (a) be solely responsible for controlling and monitoring

the use of all User IDs issued to it and its Authorized Users by the Company, (b) ensure

that each Person accessing the SEF using such User IDs is assigned a unique
Mr. Christopher J. Kirkpatrick 

Commodity Futures Trading Commission 

March 20, 2023 

4 

Attachment C 

Copy of the Amended Rules 

(Rules 502 and 503) 

Rule 502. Required Notices 

(a) Each Participant shall promptly notify the CCO upon becoming aware of any of the

following events, in each case, with respect to the Participant’s status, and the status of

its Authorized Users, which relates to or may affect its or their participation or conduct on

the SEF:

(i) any material changes to information provided to the Company in connection with

an application for Participant or Authorized User status;

(ii) any refusal of admission to any self-regulatory organization, or withdrawal of an

application for membership or participant status in a self-regulatory organization,

by the Participant or any of its Authorized Users;

(iii) any expulsion, suspension or fine in excess of $50,000 (whether through an

adverse determination, voluntary settlement or otherwise) imposed on the

Participant or any of its Authorized Users, by any self-regulatory organization;

(iv) any denial or withdrawal of an application for registration or license with respect to

the Participant or any of its Authorized Users by or from any government agency

or self-regulatory organization, and any revocation, suspension or conditioning of

a registration or license granted by any government agency or self-regulatory

organization to the Participant or any of its respective Authorized Users;

(v) the commencement of any judicial or administrative proceeding against the

Participant or any of its respective Authorized Users by a government agency or

the imposition of a fine in excess of $50,000, cease and desist order, denial of

trading privileges, censure or other sanction or remedy (whether through an

adverse determination, voluntary settlement or otherwise) imposed by any

government agency or self-regulatory organization;

(vi) the indictment or conviction of, or any confession of guilt or plea of guilty or nolo

contendere by the Participant or any of its Authorized Users, senior officers or

principals for any felony or for any misdemeanor involving, arising from, or related

to, the purchase or sale of any Swap or other financial instrument, or involving or

arising from fraud or moral turpitude;

(vii) the bankruptcy or insolvency of the Participant or any of its Affiliates; and

(viii) the failure of any Participant to be an Eligible Contract Participant.
Mr. Christopher J. Kirkpatrick 

Commodity Futures Trading Commission 

March 20, 2023 

5 

(b) Each PFI shall promptly notify the CCO upon becoming aware of any of the following

events, in each case, with respect to the PFI’s status, and the status of its Authorized

Users, which relates to or may affect its or their participation or conduct on the SEF:

(i) any material changes to information provided to the Company in connection with

the information provided to the Company in the PFI Facilitation Agreement;

(ii) any refusal of admission to any self-regulatory organization, or withdrawal of an

application for membership or participant status in a self-regulatory organization,

by the PFI or any of its Authorized Users;

(iii) any expulsion, suspension or fine in excess of $250,000 (whether through an

adverse determination, voluntary settlement or otherwise) imposed on the PFI or

any of its Authorized Users, by any self-regulatory organization;

(iv) any denial or withdrawal of an application for registration or license with respect to

the PFI or any of its Authorized Users by or from any government agency or selfregulatory organization, and any revocation, suspension or conditioning of a

registration or license granted by any government agency or self-regulatory

organization to the PFI or any of its respective Authorized Users;

(v) the commencement of any judicial or administrative proceeding against the PFI or

any of its respective Authorized Users by a government agency or the imposition

of a fine in excess of $250,000, denial of Trading Privileges, cease and desist

order, censure or other sanction or remedy (whether through an adverse

determination, voluntary settlement or otherwise) imposed by any government

agency or self-regulatory organization;

(vi) the indictment or conviction of, or any confession of guilt or plea of guilty or nolo

contendere by the PFI or any of its Authorized Users, senior officers or principals

for any felony or for any misdemeanor involving, arising from, or related to, the

purchase or sale of any Swap or other financial instrument, or involving or arising

from fraud or moral turpitude;

(vii) the bankruptcy or insolvency of the PFI or any of its Affiliates; and

(viii) the failure of any PFI to be an Eligible Contract Participant.

(c) Each Participant and PFI shall promptly notify the Company upon becoming aware of an

error or omission in swap transaction and pricing data, including Required Swap Creation

Data, for a Trade by contacting the Company pursuant to Rule 407. Participants must

promptly notify their PFI of the error or omission if they become aware of the error or

omission first. PFIs must promptly notify their Participants of the error or omission if they

become aware of the error or omission first.
Mr. Christopher J. Kirkpatrick 

Commodity Futures Trading Commission 

March 20, 2023 

6 

Participants and PFIs must correct the error or omission by submitting the corrected or 

completed data to the SEF as required by CFTC Regulation 43.3(e) (Method and Timing 

for Real-Time Public Reporting) or applicable no-action relief issued by the CFTC. 
Mr. Christopher J. Kirkpatrick 

Commodity Futures Trading Commission 

March 20, 2023 

7 

Rule 503. Books and Records; Cooperation in Proceedings 

(a) Each Participant, PFI, Authorized User, and Client Account shall prepare and keep current

all books, ledgers and other similar records (including, but not limited to, records of any

such Person’s activity in the index or instrument used as a reference price, the underlying

commodity, and related derivatives markets), in the manner prescribed by the CEA, CFTC

Regulations and these Rules and shall prepare and keep current such other books and

records and adopt such forms as the Company may from time to time prescribe. Such

books and records shall be made available to the Company and its authorized

representatives, upon request during regular business hours, and the Company agrees to

adhere to reasonable logical and physical access and security procedures of such

Participant, PFI, Authorized User, and Client Account and, with respect to the CFTC, the

Department of Justice and their respective authorized representatives, upon request in

accordance with Applicable Law including CFTC Regulations 37.203 (Rule Enforcement

Program) and 37.404 (Ability to Obtain Information).

(b) Upon reasonable prior notice, the Company may require a Participant, PFI, Authorized

User, or Client Account to furnish such information concerning the Participant’s, PFI’s,

Authorized User’s, and Client Account’s business that is subject to these Rules as the

Company deems necessary to enable it to perform its obligations under Applicable Law,

including CFTC Regulations 37.203 (Rule Enforcement Program) and 37.404 (Ability to

Obtain Information), including information relating to (i) Trades entered into pursuant to

the rules of the SEF, including the information required under CFTC Regulation 37.404(b);

and (ii) information requested by a government agency relating to the Company and/or

the Company’s compliance with Applicable Law that the Company believes is maintained

by, or otherwise in the possession of, a Participant, PFI, Authorized User, or Client

Account.

(c) All data and information provided to or obtained by the Company pursuant to this Rule

503 shall be subject to the confidentiality provisions in Rule 1106.