SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 22-066

Organization: NEX SEF Limited ("NEX SEF")

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): 03/08/22 Filing Description: Amendments to NEX SEF Limited 

Form SEF Exhibits for Migration to the CME Globex Electronic Trading Platform 

and General NEX/CME Group Integration

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: See filing. 

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(c)

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: 
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

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Christopher Bowen

Managing Director and Chief Regulatory Counsel

Legal Department

March 8, 2022

VIA ELECTRONIC 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: CFTC Regulation 40.6(a) Certification. Amendments to the NEX SEF Limited 

Form SEF Exhibits for Migration to the CME Globex Electronic Trading 

Platform and General NEX/CME Group Integration.

NEX SEF Submission No. 22-066

Dear Mr. Kirkpatrick:

NEX SEF Limited (“NEX SEF”) is certifying to the Commodity Futures Trading Commission (“CFTC” or

“Commission”) amendments to the following NEX SEF Form SEF Exhibits and related Market Regulation 

Advisory Notices (“MRANs”) (collectively, the “Rule Amendments”) effective on April 4, 2022.

The Rule Amendments as more specifically described below are being made to reflect technology changes 

for NEX SEF migration to CME Globex, as well as miscellaneous general and operational changes due to 

NEX Group and CME Group integration:

1. Rulebook (Exhibit M):

• Updated Trade Practice and Enforcement rules in Chapters 4 and 5, respectfully, for 

consistency with CME rules

• Updated EBS functionality protocols in Chapter 9, as well as rules related to Audit Trail and 

Recordkeeping in Chapters 2 and 3, for EBS Migration to CME Globex

• Miscellaneous changes throughout the definitions and other chapters of the rulebook for 

consistency with the above-mentioned changes

2. Governance Policy (Exhibit G3):

• Updated to reflect changes made to the Chapter 5 Enforcement Rules, specifically removal of 

the Review Panel and Disciplinary Panels sections and clarification of Hearing Panel duties 

and authority

3. Fee Schedule (Exhibit K):

• Updated to include CME Globex access fees, as well as to combine all of the incentive and 

market maker programs into a single document 

4. Outsourcing Agreements (Exhibit N, N1-N16): This exhibit list out all of the NEX SEF outsourcing 

service agreements which aid in NEX SEF’s compliance with CFTC Core Principles. 

• Agreements retired: legacy service agreements with ICAP; legacy Regulatory Service 

agreement with NFA and related addendums; legacy software license agreement with EBS 

Dealing Resources Inc; legacy secondment certification
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

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• Agreements added: Trading Facility System License Agreement under which relevant CME 

Globex IP is sub-licensed to NEX SEF and Trading Facility Services Agreement and the 

supplemental Technology, Operations and Market Regulation SLDs previously approved by 

the Board; Secondment Certifications for Employees and Contractors; Market Making 

Agreement for NEX SEF Participants acting as Market Makers

• 5. Market Regulation Procedures (Exhibits O1-O3): Exhibits append the Compliance Manual 

(Exhibit O) and outline Market Regulation procedures for conducting surveillance, trade 

practice and audit trail reviews. Audit Trail Recordkeeping Program (Exhibit O1) updated to 

include audit trail validation label requirements for CME Globex.

• Surveillance Procedures (Exhibit O2) and Trade Practice Review Procedures (Exhibit O3) 

updated to include the transition from SMARTS surveillance tool to CME ARES, as well as 

administrative changes to staff titles. 

6. Trade Data Maintenance (Exhibits S, S1, S2)

• Updated to remove legacy NEX SEF policies and added CME Group Records Information 

Management Policy (Exhibit S1) and Confidentiality Policy (Exhibit S2)

7. MRANs:

• New Audit Trail related MRANs that outline updated audit trail requirements for Participants

o Operator ID

o Front End Audit Trail

• New CME Globex related MRAN outlining EBS user access. User Access requirements section 

in Chapter 9 of the Rulebook removed, to be consistent with other EBS market venues 

Rulebooks; however, this MRAN was created to ensure the Participants were aware of these 

specific requirements on SEF 

• Updated MRAN 2021-01 on Error Trade Review Process for minor changes around customer 

support contact 

• Updated MRAN 2021-05 on Operational Parameters Annex for CME Globex migration

Pursuant to Commission Regulation 37.3(b)(3), once a SEF is registered as such with the Commission, 

any amendments to Form SEF must be filed as a submission under part 40 of the Commission’s 

regulations or as otherwise specified by the Commission.1 The Rule Amendments serve to amend 

previous NEX SEF submissions. 

NEX SEF reviewed the Swap Execution Facility core principles (“Core Principles”) as set forth in the 

Commodity Exchange Act (“CEA” or “Act”) and identified that the Rule Amendments may have some 

bearing on Core Principles, see analysis with core principles analysis table below. As a result, NEX SEF 

is certifying the Rule Amendments to comply with the requirements set forth by the Commissions 

Regulation. 

Appendix A and Appendix B provide the Rulebook (Exhibit M), respectively in blackline and clean formats. 

Appendix C through QQ are provided under separate cover (confidential treatment requested).

Pursuant to Section 5c(c) of the Commodity Exchange Act (the “Act”) and Regulations 37.3(b)3 and 40.6(a), 

NEX SEF hereby certifies that the Rule Amendments comply with the Act, as amended, and the 

Commission’s regulations thereunder. There were no substantive opposing views to this proposal.

NEX SEF certifies that this submission has been concurrently posted on its website at 

http://www.cmegroup.com/market-regulation/rule-filings.html.

1 See 78 Fed. Reg. 33476, at 33485 (June 4, 2013).
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

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If you require any additional information regarding this submission, please contact the undersigned at 212-

299-2200 or via email at CMEGSubmissionInquiry@cmegroup.com.

Sincerely,

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachments: 

 Appendix A: NEX SEF Rulebook (Form SEF Exhibit M) clean version

Appendix B: NEX SEF Rulebook (Form SEF Exhibit M) redlined version

Appendix C: Governance Policy (Exhibit G3) redlined version

Appendix D: Governance Policy (Exhibit G3) clean version

Appendix E: NEX SEF Fee Schedule (Exhibit K) redlined version

Appendix F: NEX SEF Fee Schedule (Exhibit K) clean version

Appendix G: Outsourcing Agreements Listing (Exhibit N) redline version (confidential treatment 

requested)

Appendix H: Outsourcing Agreements Listing (Exhibit N) clean version (confidential treatment 

requested)

Appendix I: Exhibit N1 – TFS License Agreement (confidential treatment requested)

Appendix J: Exhibit N2 – License Agreement with Reset (confidential treatment requested)

Appendix K: Exhibit N3 – Services Agreement between NEX SEF and Reset (confidential 

treatment requested)

Appendix L: Exhibit N4 – Trading Facility Services Agreement (confidential treatment requested)

Appendix M: Exhibit N5(A) – NEX SEF Technology SLD (confidential treatment requested)

Appendix N: Exhibit N5(B) – NEX SEF Market Operations SLD (confidential treatment requested)

Appendix O: Exhibit N5(C) – NEX SEF Market Regulation SLD (confidential treatment requested)

Appendix P: Exhibit N6 – Regulatory Services Agreement (confidential treatment requested)

Appendix Q: Exhibit N6(A) – Regulatory Services Agreement Amended and Restated (confidential 

treatment requested)

Appendix R: Exhibit N7 – SEF TPHA (confidential treatment requested)

Appendix S: Exhibit N8(A) – MarkitWire NEX SEF Broker Terms (confidential treatment 

requested)

Appendix T: Exhibit N8(B) – MarkitWire NEX SEF Broker Terms Addendum (confidential 

treatment requested)

Appendix U: Exhibit N9 – DTCC and NEX SEF Agreement (confidential treatment requested)

Appendix V: Exhibit N10 – CME Clearing Services Agreement (confidential treatment requested)

Appendix W: Exhibit N11 – LCH Clearing Services Agreement (confidential treatment requested)

Appendix X: Exhibit N12 – ASX Clearing Services Agreement (confidential treatment requested)

Appendix Y: Exhibit N13 – Eurex Clearing Services Agreement (confidential treatment requested)

Appendix Z: Exhibit N14(A) – Secondment Agreement for contractors (confidential treatment 

requested)

Appendix AA: Exhibit N14(B) – Secondment Agreement for employees (confidential treatment 

requested)

Appendix BB: Exhibit N15 – ISV Agreement (confidential treatment requested)

Appendix CC: Exhibit N16 – NEX SEF Market Maker Agreement (confidential treatment 

requested)

Appendix DD: Audit Trail Recordkeeping Program (Exhibit O1) redline (confidential treatment 

requested)

Appendix EE: Surveillance Procedures (Exhibit O2) redline (confidential treatment requested)

Appendix FF: Trade Practice Review Procedures (Exhibit O3) redline (confidential treatment 

requested)

Appendix GG: Trade Data Maintenance (Exhibit S) redline (confidential treatment requested)
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Appendix HH: Trade Data Maintenance (Exhibit S) clean (confidential treatment requested)

Appendix II: Records Information Management Policy (Exhibit S1) (confidential treatment 

requested)

Appendix JJ: Confidentiality Policy (Exhibit S2) (confidential treatment requested)

Appendix KK: 2022-01 MRAN Operator ID

Appendix LL: 2022-02 MRAN Front End Audit Trail

Appendix MM: 2022-03 MRAN EBS User Access

Appendix NN: 2022-04 MRAN Error Trade Review Process redline

Appendix OO: 2022-04 MRAN Error Trade Review Process clean

Appendix PP: 2022-05 MRAN Operational Parameters Annex redline

Appendix QQ: 2022-05 MRAN Operational Parameters Annex clean

Table: Analysis with Core Principles:

Form SEF 

Exhibit and 

Section/Rule

Description of Revision

Reason and/or

Supporting Rule or Core

Principle

Rulebook -

Definitions,

Chapters 2 

through 5, 9

• Updated Trade Practice and Enforcement rules in 

Chapters 4 and 5, respectfully, for consistency 

with CME rules

• Updated EBS functionality protocols in Chapter 9, 

as well as rules related to Audit Trail and 

Recordkeeping in Chapters 2 and 3, for EBS 

Migration to CME Globex

• Miscellaneous changes throughout the 

definitions and other chapters of the rulebook for 

consistency with the above-mentioned changes

• Changes related to 

NEX SEF migration to 

CME Globex as well as 

integration with CME 

Group Inc.

• Core Principles 2, 4, 5, 

7, 8, 10, 12, 15

Exhibit G3 • Updated to reflect changes made to the Chapter 

5 Enforcement Rules, specifically removal of the 

Review Panel and Disciplinary Panels sections 

and clarification of Hearing Panel duties and 

authority

• Core Principles 2, 8, 15

Exhibit K • Updated to include CME Globex access fees, as 

well as to combine all of the incentive and market 

maker programs into a single document 

• Core Principle 2

Exhibits N, N1

through N16

• Agreements retired: legacy service agreements 

with ICAP; legacy Regulatory Service agreement 

with NFA and related addendums; legacy 

software license agreement with EBS Dealing 

Resources Inc; legacy secondment certification

• Agreements added: Trading Facility System 

License Agreement under which relevant CME 

Globex IP is sub-licensed to NEX SEF and 

Trading Facility Services Agreement and the 

supplemental Technology, Operations and Market 

• Core Principles 1, 2, 3, 

4, 5, 7, 9, 10, 14, 15
5

Form SEF 

Exhibit and 

Section/Rule

Description of Revision

Reason and/or

Supporting Rule or Core

Principle

Regulation SLDs previously approved by the 

Board; Secondment Certifications for Employees 

and Contractors; Market Making Agreement for 

NEX SEF Participants acting as Market Makers

Exhibits O1, 

O2, O3

Exhibits append the Compliance Manual (Exhibit O) and 

outline Market Regulation procedures for conducting 

surveillance, trade practice and audit trail reviews.

Audit Trail Recordkeeping Program (Exhibit O1) updated 

to include audit trail validation label requirements for CME 

Globex. Surveillance Procedures (Exhibit O2) and Trade 

Practice Review Procedures (Exhibit O3) updated to 

include the transition from SMARTS surveillance tool to 

CME ARES, as well as administrative changes to staff 

titles

• Core Principles 1, 2, 4, 

5, 15

Exhibits S, 

S1, S2

• Updated to remove legacy NEX SEF policies and 

added CME Group Records Information 

Management Policy (Exhibit S1) and 

Confidentiality Policy (Exhibit S2)

• Core Principle 14

MRANs 2022-

01 and 2022-

02

• New Audit Trail related MRANs that outline 

updated audit trail requirements for Participants

regarding Operator ID and Front End Audit Trail. 

These MRANs mirror the current CME audit trail 

requirements for the F&O business and reflect 

NEX SEF migration to Globex.

• Core Principles 2, 4, 5, 

8, 10

MRAN 2022-

03

• New CME Globex related MRAN outlining EBS 

user access. User Access requirements section in 

Chapter 9 of the Rulebook removed, to be 

consistent with other EBS market venues 

Rulebooks; however, this MRAN was created to 

ensure the Participants were aware of these 

specific requirements on SEF.

• Core Principle 2

MRAN 2022-

04

• superseded MRAN 2021-01 on Error Trade 

Review Process for minor changes around 

customer support contact 

• Core Principles 2, 4, 7

MRAN 2022-

05

• superseded MRAN 2021-05 on Operational 

Parameters Annex for CME Globex migration

• Core Principles 2, 4, 5, 

14
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Appendix A

NEX SEF Rulebook

(provided under separate cover)

Appendix B

NEX SEF Rulebook

(blacklined, provided under separate cover)

Appendix C

Governance Policy (Exhibit G3) 

(blacklined, provided under separate cover)

Appendix D

Governance Policy (Exhibit G3) 

(provided under separate cover)

Appendix E

NEX SEF Fee Schedule (Exhibit K) 

(blacklined, provided under separate cover)

Appendix F

NEX SEF Fee Schedule (Exhibit K) 

(provided under separate cover)

Appendix G – JJ

CONFIDENTIAL TREATMENT REQUESTED BY NEX SEF

(provided under a separate cover)

Appendix KK

2022-01 MRAN Operator ID

(provided under a separate cover)
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Appendix LL

2022-02 MRAN Front End Audit Trail

(provided under a separate cover)

Appendix MM

2022-03 MRAN EBS User Access

(provided under a separate cover)

Appendix NN

2022-04 MRAN Error Trade Review Process redline

(provided under a separate cover)

Appendix OO

2022-04 MRAN Error Trade Review Process clean

(provided under a separate cover)

Appendix PP

2022-05 MRAN Operational Parameters Annex redline

(provided under a separate cover)

Appendix QQ

2022-05 MRAN Operational Parameters Annex clean

(provided under a separate cover)