ActiveUS 150102619v.7

BGC Derivative Markets, L.P.

RULES

BY ACCESSING, OR ENTERING ANY ORDER INTO, THE BGC DERIVATIVE 

MARKETS, L.P. FACILITY, AND WITHOUT ANY NEED FOR ANY FURTHER ACTION, 

UNDERTAKING OR AGREEMENT, A PARTICIPANT, AND ITS CUSTOMERS, 

INCLUDING ITS AUTHORIZED CUSTOMERS, EACH REPRESENT THAT IT IS AN 

ELIGIBLE CONTRACT PARTICIPANT AS DEFINED IN SECTION 1A(18) OF THE 

COMMODITY EXCHANGE ACT AND SUCH PERSONS, AND THEIR AUTHORIZED 

TRADERS, AGREE: 

(I) TO BE BOUND BY, AND COMPLY WITH, THE RULES OF BGC DERIVATIVE 

MARKETS, L.P., AND APPLICABLE LAW, IN EACH CASE TO THE EXTENT 

APPLICABLE TO IT OR THEM, AND 

(II) TO BECOME SUBJECT TO THE JURISDICTION OF BGC DERIVATIVE 

MARKETS, L.P. WITH RESPECT TO ANY AND ALL MATTERS ARISING FROM, 

RELATED TO, OR IN CONNECTION WITH, THE STATUS, ACTIONS OR 

OMISSIONS OF SUCH PARTICIPANT AND THE PARTICIPANT’S AUTHORIZED 

TRADERS, ITS CUSTOMERS AND THEIR AUTHORIZED TRADERS.

Copyright © 2013 by BGC Derivative Markets, L.P. All Rights Reserved.

Version effective as of December 13, 2016. 
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TABLE OF CONTENTS

PART 1. MEANING OF TERMS. .........................................................................................1

101. Definitions............................................................................................................................1

102. Time References. .................................................................................................................9

103. Conflicts with Governing Documents. ................................................................................9

PART 2. GOVERNANCE....................................................................................................10

201. Board of Directors..............................................................................................................10

202. Officers. .............................................................................................................................10

203. Regulatory Oversight Committee ......................................................................................10

204. Disciplinary Committee.....................................................................................................10

205. Compliance Department. ...................................................................................................11

206. Prohibition on Admission as Participant. ..........................................................................11

207. Restrictions on Directors, Officers, Committee Members, Employees and Consultants. .11

208. Reserved.............................................................................................................................16

209. Conflicts of Interest............................................................................................................16

210. Chief Compliance Officer..................................................................................................20

PART 3. PARTICIPANTS. ..................................................................................................22

301. Status of Participants..........................................................................................................22

302. Eligibility. ..........................................................................................................................23

303. Application Procedures......................................................................................................23

304. Denial of Admission. .........................................................................................................24

305. Admission as a Participant.................................................................................................26

306. Sponsored Participants, Brokers and Customers. ..............................................................26

307. Payment of Facility Fees....................................................................................................31

308. Surveillance........................................................................................................................31

309. Market Data .......................................................................................................................31

310. Recording of Conversations...............................................................................................32

311. Termination of Participation..............................................................................................32

312. Market Maker Program......................................................................................................33

313. Independent Software Vendor ...........................................................................................33

PART 4. OBLIGATIONS OF PARTICIPANTS. ................................................................34

401. Non-U.S. Participants. .......................................................................................................34

402. Notification. .......................................................................................................................34

403. Record-keeping and Reporting Requirements...................................................................36

404. Requirements for Persons Submitting Orders....................................................................39

405. Cooperation in Investigations. ...........................................................................................40

406. System Security. ................................................................................................................40

407. User IDs and Confidentiality. ............................................................................................41

408. Front-End User Interface. ..................................................................................................42

409. Responsibility for Orders...................................................................................................43
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410. Compliance by Participants. ..............................................................................................43

PART 5. TRADING..............................................................................................................43

501. Required Transactions. ......................................................................................................43

502. Permitted Transactions.......................................................................................................44

503. Trading Hours for Required and Permitted Transactions..................................................45

504. Information Regarding Orders...........................................................................................45

505. Pre-Execution Discussions and Cross Trades....................................................................46

506. Allocation and Priority of Orders; No Withholding of Orders..........................................47

507. Prohibited Bids and Offers.................................................................................................47

508. Orders Required to be Cleared...........................................................................................48

509. Limitation of Size of Orders. .............................................................................................48

510. Block Trades. .....................................................................................................................48

511. Public Disclosure of Data. .................................................................................................50

512. Off-facility Transactions by Brokers.................................................................................51

513. Package Transactions.........................................................................................................51

514. Trade Cancellations and Price Adjustments. .....................................................................54

515. Error Trades......................................................................................................................60

516. Trade Affirmation. .............................................................................................................61

PART 6. TRADING VIA ELECTRONIC ORDER BOOK.................................................62

601. Scope..................................................................................................................................62

602. Trade Execution via Electronic Order Book......................................................................62

603. Orders.................................................................................................................................68

604. Confirmations and Objections. ..........................................................................................71

605. Trade Invalidation upon Revocation of Clearing Authorization. ......................................72

606. Reserved.............................................................................................................................72

607. Assisted Order Entry..........................................................................................................72

PART 7. TRADING VIA VOICE FUNCTIONALITY.......................................................73

701. Scope..................................................................................................................................73

702. Trade Execution via Voice Functionality. .........................................................................73

703. Voice Trading Facility. ......................................................................................................73

704. Confirmation of Voice Transactions and Objections.........................................................78

705. Record-keeping and Reporting. .........................................................................................79

PART 7a TRADING VIA REQUEST FOR QUOTES (“RFQ”) FUNCTIONALITY.........80

701a. Scope......................................................................................................................80

702a. Trade Execution via RFQ Functionality................................................................80

PART 8. CLEARING AND FINANCIAL INTEGRITY OF CONTRACTS......................82

801. Scope..................................................................................................................................82
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802. Relation to Clearing Organization. ....................................................................................82

803. Clearing Authorization Required.......................................................................................83

804. Financial Integrity for Permitted Transactions. .................................................................84

805. Trades Not Accepted for Clearing. ....................................................................................85

806. Disputes related to Clearing...............................................................................................85

807. Establishment of Daily and Final Settlement Prices..........................................................85

PART 9. BUSINESS CONDUCT. .......................................................................................86

901. Violation of Law................................................................................................................86

902. Rule Violation....................................................................................................................86

903. No Transfers.......................................................................................................................86

904. False Information...............................................................................................................87

905. Manipulation Prohibited. ...................................................................................................87

906. Prohibition on Misstatements. ...........................................................................................87

907. Employees of the Facility. .................................................................................................87

908. Abusive Trading Practices Prohibited. ..............................................................................87

909. Detrimental Conduct..........................................................................................................87

910. Fraud Prohibited.................................................................................................................88

PART 10. DISCIPLINARY PROCEEDINGS. ......................................................................88

1001. Scope..................................................................................................................................88

1002. Investigations. ....................................................................................................................88

1003. Review of Investigation Report. ........................................................................................89

1004. Respondent.........................................................................................................................89

1005. Notice of Charges. .............................................................................................................89

1006. Service................................................................................................................................90

1007. Answer from Respondent. .................................................................................................90

1008. Right to Representation......................................................................................................91

1009. Hearings. ............................................................................................................................91

1010. Decision. ............................................................................................................................92

1011. Penalties. ............................................................................................................................93

1012. Predetermined Penalties.....................................................................................................94

1013. Settlement. .........................................................................................................................94

1014. Minor Penalties. .................................................................................................................95

1015. Participant Responsibility Actions.....................................................................................95

1016. Action Against Non-Participants. ......................................................................................96

1017. Conflicts of Interest or Bias. ..............................................................................................97

PART 11. CUSTOMER DISPUTES. .....................................................................................98

1101. Procedure for Resolution. ..................................................................................................98

PART 12. MISCELLANEOUS. .............................................................................................98

1201. Prohibition of Compensation to Facility Employees.........................................................98
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1202. Rule Adoption, Amendment, and Repeal. .........................................................................98

1203. Confidentiality of Information...........................................................................................99

1204. Emergency Powers...........................................................................................................100

1205. Limitation of Liability......................................................................................................103

1206. Dispute Resolution...........................................................................................................105

1207. Publication of Information...............................................................................................105

1208. Trading System. ...............................................................................................................105

1209. Enforceability...................................................................................................................106

1210. Audit Trail........................................................................................................................107

PART 13. PRODUCTS.........................................................................................................107

1301. Swaps Made Available to Trade. .....................................................................................107

1302. Position Limits or Position Accountability......................................................................107

1303. Reserved...........................................................................................................................107

1304. Reserved...........................................................................................................................107

1305. Risk Controls for Trading. ...............................................................................................107

1306. Swaps Listed for Trading.................................................................................................108
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RULES

PART 1. MEANING OF TERMS.

101. Definitions.

The definitions of terms herein shall apply equally to the singular and plural forms of the 

terms defined. Any pronoun shall include the corresponding masculine, feminine and 

neuter forms. The word “will” shall be construed to have the same meaning and effect as 

the word “shall.” The words “include”, “included”, “includes” or “including” shall be 

deemed, in each case, to be followed by the phrase “without limitation,” or the phrase 

“but not limited to”, if not expressly followed by such phrase.

Unless the context otherwise indicates, the following terms have the meanings set forth 

below:

“Act” means the same as Commodity Exchange Act. 

“Affiliate” means, with respect to a Person, any other Person which directly, or indirectly 

through one or more intermediaries, controls, is controlled by, or is under common 

control with, such Person.

“Applicable Law” means, with respect to any Person, any statute, law, regulation, rule 

or ordinance of any Regulatory Authority applicable to such Person, including the 

Commodity Exchange Act, Commission Regulations and, to the extent applicable to such 

Person, similar foreign laws or regulations which is applicable to such Person’s activities 

in respect of the Facility.

“Applicant” means a Person that has submitted an application to the Facility to be 

approved as a Participant.

“Authorized Customer” means a Person that enjoys Sponsored Access to the Facility 

“Authorized Trader” means any Person that is issued a User ID to trade for: (i) a 

Participant, including, but not limited to, an employee of a Participant, an employee of a 

Participant’s affiliate provided the Participant maintains supervisory authority over such 

employee, (ii) an employee of an Authorized Customer; (iii) a Broker.

“Automated Order Generator (“AOG”)” means a device also known as a “black box” 

or “automated trading machine” that is preprogrammed in accordance with a single 

trading strategy to independently initiate activity on the Trading System without active 

human input.

“Bespoke Swap” means a Swap that is customized as to tenor, roll dates, compounding 

and/or any other material term.
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“Bid” means an order to buy a Contract or pay fixed payments on a contract at a 

specified price or spread.

“Block Trade” shall have the same meaning as in Commission Rule 43.2, 17 C.F.R. 

§43.2. 

“Board” means the Board of Directors of the Facility.

“Broker” means a Person that is registered as a Futures Commission Merchant, 

Introducing Broker, commodity pool operator or commodity trading advisor that is 

registered as such under the Commodity Exchange Act, or is exempt from registration, 

that is not a Participant and that is permitted by a Participant to enter Bids, Offers or 

Orders into the Trading System, to assist in pre-discussion of trades as permitted under 

Rule 505, to assist in the conduct of Off-facility Transactions as permitted under Rule 

512, and to assist in in arranging Block Trades on behalf of a Participant. A Broker may 

enjoy direct access to the Trading System. A Broker is not an employee of the Facility.

“Business Day” means any day on which the Facility is open for trading. The Facility 

will publish the trading days for the Swaps on its website.

“Chief Compliance Officer” or “CCO” means the person with (i) the authority and 

resources to develop and enforce policies and procedures necessary to fulfill the duties 

set forth for chief compliance officers in the Commodity Exchange Act and Commission 

regulations; and (ii) supervisory authority over all staff acting in further of the Chief 

Compliance Officer’s statutory, regulatory, and self-regulatory obligations. 

“Clearing Organization” means a Derivatives Clearing Organization specified by the 

Facility to clear transactions effected on or subject to the Rules of the Facility.

“Clearing Participant” means any Person that has clearing and settlement privileges on 

a Clearing Organization.

“Clearing Participant ID” means the unique identifier code assigned by the Facility to 

each Clearing Participant.

“Commodity” means any commodity within the definition of that term contained in the 

Commodity Exchange Act. 

“Commodity Exchange Act” means the Commodity Exchange Act, as it may be 

amended from time to time.

“Commission” means the Commodity Futures Trading Commission.

“Commission Regulation or Commission Rule” means any rule, regulation, or order of 

the Commission, as in effect from time to time, and any interpretation thereof by the 

Commission or its staff.
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“Compliance Department” means the Department of the Facility responsible to oversee 

market activity and that the trading and other activities conducted on the Facility comply 

with the Applicable Law and Rules of the Facility. The Compliance Department includes 

the regulatory service provider and the Control Desk.

“Contract” means a Swap contract executed on or through the Facility. 

“Control” means the power, directly or indirectly, to direct the management or policies 

of a company, whether through ownership of securities, by contract, or otherwise. Any 

person that (i) is a director, general partner or officer exercising executive responsibility 

(or having similar status or functions); (ii) directly or indirectly has the right to vote 25% 

or more of a class of a voting security or has the power to sell or direct the sale of 25% or 

more of a class of voting securities; or (iii) in the case of a partnership, has the right to 

receive upon dissolution, or has contributed, 25% or more of the capital, is presumed to 

control that company. 

“Control Desk” means the designated group of employees that is responsible for Facility 

market operations, real-time market monitoring, customer support and surveillance. 

“Customer” means any Person who is a “customer” within the meaning set forth in 

Section 1.3(k) of Commission Regulations.

“Customer Match Trading Facility” means a Trading Facility which is an auction 

operated by the Facility pursuant to Rule 602(e) where prices are determined by the 

interaction of multiple Participants entering Orders into the Trading System.

“Delta hedge” means a trading strategy that aims to reduce (hedge) the risk associated 

with an option, swaption, variance Swap, tranche or other structured trade from price 

movements in the underlying asset.

“Designated Contact” means the person employed by any Participant that shall have 

the right to activate or deactivate the User ID of any of such Participant’s Authorized 

Traders or Authorized Customers.

“Electronic Order Book” means all open Orders entered into the Trading System 

displayed electronically. 

“Electronic Order Book Trading Session” means a Trading Session that remains open 

throughout the Business Day and in which the Trading System will receive and execute 

Orders in accordance with these Rules. 

“Electronic Trading System” means the means the electronic systems administered by 

or on behalf of the Facility for execution of Swap transactions.
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“Eligible Contract Participant or ECP” means any Person who is an “eligible contract 

participant” within the meaning set forth in section 1a(18) of the Commodity Exchange 

Act.

“Emergency” means those occurrences or events enumerated in Rule 1204 or any other 

occurrence or circumstance that, in the opinion of the Facility requires immediate action 

and threatens or may threaten fair and orderly trading in Swaps on the Facility.

“Entity” means any Person other than a natural person.

“Execution Specialist” means an employee of the Facility using telephonic or other 

means of electronic communication devices: 1) to assist Participants in the entry or 

withdrawal of Orders to be matched through the operation of the Trading System and the 

negotiation and execution of Block Trades provided under Rule 510, and 2) to facilitate 

Voice Trading. Execution Specialists also act in connection with the operation of 

various Trading Facility sessions of the Trading System

“Facility” means BGC Derivative Markets, L.P., a registered swaps execution facility.

“FINRA” means the Financial Industry Regulatory Authority.

“Futures Commission Merchant or FCM” shall have the same meaning as defined in 

section la(28) of the Commodity Exchange Act.

“Governmental Agency” means the Commission, the Securities and Exchange 

Commission and any other agency, federal or state, domestic or foreign authority, 

regulating trading in commodities, securities, futures contracts, options, currencies or

other financial instruments.

“Illiquid Swap” shall mean any Swap having an Average Daily Trading Volume of 

fewer than five transactions per week on the Facility over the preceding three month 

period, calculated on a rolling basis.

“Indicative Order” shall mean any Bid or Offer placed into the Trading System that is 

an Indicative Quote and which is not automatically executable by the Trading System. 

“Indicative Quote” shall mean a quote which provides pricing information but which is 

not automatically executable by the Trading System or other trading functionality. If 

present, Indicative Quotes entered by the Facility do not include quantity information; 

indicative quotes entered by a Participant include both price and quantity information. 

“Introducing Broker” shall have the same meaning as defined in section la(31) of the 

Commodity Exchange Act.
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“Last Sale Information” means, at any given time, the price and quantity data from any 

and all transactions executed on the Trading System including the times at which such 

transactions were executed on or submitted to the Trading System.

“Made Available to Trade” means the transactions listed or offered for trading on the 

Facility as defined in Rule 1301.

“Major Swap Participant” shall have the meaning in section 1a(33) of the Commodity 

Exchange Act. 

“Market Data” means any and all data and other information contained in, displayed on, 

generated by or derived from the Trading System or reported to the Facility including, 

without limitation, bids, offers, prices, executions and volumes, Last Sale Information 

and Quotation Information.

“Market Data Vendors” means publishers of electronic information with whom the 

Facility has a contractual relationship to disseminate Market Data.

“Named Party in Interest” means a “named party in interest” as defined in Rule 

209(a)(iv).

“NFA” means the National Futures Association.

“Non-U.S. Participant” means any person located outside the United States, its 

territories or possessions who is engaged in soliciting or in accepting orders for the 

purchase or sale of any Swap on or subject to the rules of the Facility from only persons 

located outside the United States, its territories or possessions.

“Off-facility Transaction” means a transaction arranged by a Broker between two 

Participants, Sponsored Participants or Customers that is to be executed pursuant to the 

Rules of the Facility. Such a transaction is reported to the Facility and is not considered 

as having been executed until its acceptance by the Facility. 

“Offer” means an order to sell a Contract or receive fixed payments on a contract at a 

specified price or spread.

“Opening Period” means the opening period of a specified Trading Session. 

“Order” means any Bid or Offer placed into the Trading System for purposes of buying

or selling a Swap on or subject to the rules of the Facility. 

“Participant” means any Person granted Trading Privileges by the Facility. 

“Participant Data” means any and all data and other information submitted to the 

Trading System by a Participant or on behalf of a Participant by its Sponsored 

Participants or Brokers. 
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“Participant ID” means the unique identifier code assigned by the Facility to each 

Participant.

“Partnership Agreement” means the corporate organizational document of BGC 

Derivative Markets, L.P.

“Permitted Transaction” means any transaction involving a Swap listed or offered for 

trading on or subject to the rules of the Facility for trading that is not a Required 

Transaction.

“Person” means an individual, corporation, limited liability company, partnership, trust, 

or other entity.

“Pre-execution Communication” means on or more communications between market 

participants for the purpose of discerning interest in the execution of a transaction prior to 

exposure of such market participants’ Orders (i.e., price, size and other terms) to the 

Facility.

“Proprietary Account” means a “proprietary account” as defined in Section 1.3(y) of 

the Commission Regulations.

“Proprietary Data or Personal Information” for the purpose of Rule 309(c) means 

information that would separately disclose business transactions, market positions, or the 

trade secrets of a Participant or Authorized Customer or provide non-public information 

about a natural person.”

“Quote” means a Bid or an Offer, or a Bid and an Offer. 

“Quotation Information” means, at any given time, the price and quantity data and all 

data derived from all Bids and Offers submitted for entry into the Trading System, 

including the times at which such Bids and Offers are entered.

“Regular Voice Trading Facility” means a Voice Trading Session that remains open 

throughout the Business Day and in which an Execution Specialist stands ready to 

facilitate the execution of Orders in accordance with these Rules. 

“Regulatory Authority” means any domestic or foreign government (or political 

subdivision), governmental or regulatory authority, agency, court, commission or other 

governmental or regulatory entity (including any Self-Regulatory Organization).

“Regulatory Services Agreement” means the agreement between the Facility and the 

NFA, pursuant to which the NFA has agreed to perform certain regulatory functions on 

behalf of the Facility. 

“Request for Quote (RFQ)” means a solicitation for Bids and Offers for a Swap or 

combination of Swaps.
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“Required Transaction” means any transaction involving a Swap Made Available to 

Trade on the Facility that is subject to the trade execution requirement of section 2(h)(8) 

of the Act.

“Respondent” has the meaning set forth in Rule 1004.

“Rules” means, with respect to any Entity, the rules of such Entity and the 

interpretations, resolutions, orders, directives and procedures of the Entity thereunder as 

in effect from time to time, and if no other Entity is specified, means the Rules of the 

Facility and the interpretations, resolutions, orders, directives and procedures of the 

Facility thereunder as in effect from time to time.

“SDR” means “Swap Data Repository” as defined in section 1a(48) of the Act.

“Securities Exchange Act” means the Securities Exchange Act of 1934, as it may be 

amended from time to time.

“Self-Regulatory Organization” has the meaning given that term in Commission 

Regulation 1.3(ee).

“Settlement Price” means the price established each day as the basis for settlement of 

Swaps.

“Significant Action” means a “significant action” as defined by Section 1.69(a)(8) of the 

Commission Regulations.

“Sponsored Access” means the practice by a Participant (“Sponsoring Participant”) of 

providing access to the Facility to another firm or customer (“Authorized Customer”). 

Sponsored Access takes multiple forms, including but not limited to: (a) direct market 

access, where the Authorized Customer’s orders pass through the Sponsoring Member’s 

systems prior to reaching the Trading System, (b) sponsored access, where the 

Authorized Customer enters orders directly into Trading System via a dedicated port 

provided by the Sponsoring Participant, and (c) direct access where a service bureau or 

other third party provides Authorized Customers with technology to access the Trading 

System under the auspices of and via an arrangement with the Sponsoring Member. 

Sponsored Access can also include the practice of permitting an Authorized Customer to 

trade on the Facility through Voice Functionality. 

“Sponsored Participant” means any Person that accesses the Facility through or under 

the Trading Privileges of a Participant and includes a Participant’s Authorized Traders, 

Authorized Customers, or an Authorized Customer’s Authorized Traders. Sponsored 

Participants may enjoy direct access to the Facility. 

“SRO” means “Self-Regulatory Organization.”
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“Supervised Persons” means any directors, officers, agents, or employees (including any 

Authorized Traders) of any Participant. 

“Swap” has the meaning set forth in section 1a(47) of the Commodity Exchange Act, and 

as further defined by the Commission, and includes, among others, options and 

swaptions, caps and floors, provided that for purposes of these Rules the term “Swap” 

shall pertain only in respect of activities on or subject to the Rules of the Facility.

“Swap Dealer” shall have the same meaning as defined in section la(49) of the 

Commodity Exchange Act.

“Technology-Assisted Voice Trading Facility” means a Voice Trading Session in 

which the Execution Specialist is assisted by an automated functionality.

“Tenor” means the time to maturity of the Swap.

“Third Party Sponsored Access” means direct access where a service bureau or other 

third party provides Authorized Customers with technology to access the Trading System 

under the auspices of and via an arrangement with the Sponsoring Member. 

“Trading Day” means with respect to any Swap the period of hours during a 24 hour 

period during which trading in that Swap is permitted to occur through, or subject to the 

rules of, the Facility.

“Trading Facility” shall have the same meaning as defined in section 1a(51) of the 

Commodity Exchange Act.

“Trading Hours” means, with respect to any Swap the hours during which the Facility is 

regularly open for the trading of such Swap.

“Trading Participant” means a Participant of the Facility that is not a Clearing 

Participant.

“Trading Privileges” means the right granted to a Participant, Sponsored Participants or 

Broker to access directly the Trading System for the purpose of transacting in Swaps 

subject to the Rules of the Facility. No person may exercise Trading Privileges during 

any suspension of such Person’s Trading Privileges ordered by the Facility. 

“Trading Session” means a specified period of time during which a particular trade 

matching functionality is available to market participants. 

“Trading System” means the electronic or other systems administered by or on behalf of 

the Facility for execution of Swap transactions. 
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“User ID” means a unique identifier code assigned by the Control Desk to each 

Authorized Trader that trades for such Participant or any Affiliate of such Participant or 

to any other Person with Trading Privileges. 

“Voice Functionality” means a physical Trading Facility, which provides a nonautomated method for trading facilitated by an Execution Specialist that enables multiple 

participants to offer Bids or Offers to multiple participants through the use of telephone, 

electronic messaging or other communications devices.

“Voice Trading” is one Voice Functionality whereby an Execution Specialist makes 

known to Participants the existence of trading interest in a Swap, facilitates the 

communication of Bids or Offers among Participants, and assists in orderly trading on the 

Facility.

“Voice Trading Facility” means a Trading Session during which a particular structured 

form of non-automated trade matching functionality is available to market participants.

“Volume Match Plus Trading Facility” means a Trading Session that is an auction 

separate from the Electronic Order Book Trading Session and is held periodically during 

the Business Day. The auction operates similar to the Volume Match Trading Session; 

however, as described in Rule 602, during the auction Participants are able, in response to 

changing market conditions, to submit Bids higher or Offers lower than the initial price 

originally determined by the Trading System thereby shifting the displayed execution 

price to another value for the duration of that auction. 

“Volume Match Trading Facility” means a Trading Session separate and distinct from 

the Electronic Order Book Trading Session. A Volume Match Trading Session is an 

auction operated by the Facility pursuant to Rule 602 where all transactions will be 

executed at a single price and in time order of priority. 

“Whiteboard Trading” shall mean a form of technology- assisted trading consisting of 

an electronic screen that can be viewed by Participants in which information is posted 

upon request.

102. Time References.

Except as may be otherwise expressly provided in these Rules, all references to times in 

these Rules shall be to the local time prevailing in New York, New York.

103. Conflicts with Governing Documents.

In the event of any conflict between any provision of these Rules and any provision of the 

governing documents of the Facility, the provision of the governing documents shall 

govern, except where the governing documents provide otherwise. 
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PART 2. GOVERNANCE.

201. Board of Directors.

The Board shall have all the powers and authority permitted by law, the Facility’s Rules 

and its formation Partnership Agreement. The Board of Directors shall be appointed by 

the general partner of BGC Derivative Markets, L.P. The Board shall be composed in 

accordance with the standards set forth in Commission Rule 1.64(b)(1) and (b)(3), which 

are incorporated herein by reference.

202. Officers.

The officers of the Facility shall have all the powers and authority provided in the 

formation Partnership Agreement and these Rules and such other additional duties and 

powers as the Board may confer on them or any of them. The officers of the Facility 

shall consist of the Chief Executive Officer, Chief Financial Officer, General Counsel, 

Chief Compliance Officer and such other officers as the Board may appoint.

203. Regulatory Oversight Committee 

(a) Establishment of Regulatory Oversight Committee. The Regulatory Oversight 

Committee (“ROC”) is a subcommittee of the Board of Directors of the Facility, and 

shall be composed of no fewer than three directors. The ROC shall be appointed by the 

Board of Directors.

(b) Role of the ROC. 

The Regulatory Oversight Committee shall:

(i) monitor the regulatory program of the registered entity for sufficiency, 

effectiveness, and independence;

(ii) oversee the regulatory program, including trade practice surveillance, market 

surveillance and regulatory responsibilities with respect to members;

(iii) review the size and allocation of the regulatory budget and the performance 

of the Chief Compliance Officer; and

(iv) review all regulatory proposals and recommend changes to the program.

204. Disciplinary Committee.

(a) Establishment of the Disciplinary Committee. The Disciplinary Committee is a 

committee of the Facility whose members shall consist of such members appointed by 

the Chief Executive Officer. The members of the Disciplinary Committee shall 

constitute the Facility’s Review Panel(s) and Hearing Panel(s). A member of a 
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Hearing Panel may not serve as a member of the Review Panel in the same matter and 

each Hearing Panel and each Review Panel must include a member that is not a 

Participant of the Facility. 

(b) Composition. At least one member of the Disciplinary Committee, who shall be chair, 

must be a Public Participant, a person that would not be disqualified from serving as a 

Public Director under Commission Rule 1.3(ccc)(3). The Disciplinary Committee may 

include as members Facility officers and employees. However, no employee of the 

Compliance Department of the Facility may serve on the Disciplinary Committee. 

(c) Role of the Disciplinary Committee. The Disciplinary Committee is authorized to 

determine whether violations of these Rules have been committed, to accept offers of 

settlement, to set and impose appropriate penalties, and to exercise such other powers 

and duties as provided in Part 10 of these Rules governing disciplinary proceedings. 

205. Compliance Department.

(a) The Facility has the power and authority to regulate its facilities to ensure that the 

facilities are not used for any improper purpose and to establish and enforce rules and 

procedures to ensure fair and equitable trading through its facilities.

(b) The Facility shall be authorized to conduct and to oversee surveillance, investigation 

and rule enforcement activities. The Chief Compliance Officer shall be in charge of the 

Compliance Department. The personnel of the Compliance Department may not 

operate under the direction or control of a Participant.

(c) The Facility has contracted with the NFA for the performance of market, trade practice, 

financial, audit trail surveillance and related investigations and disciplinary proceedings 

with respect to Participants. 

206. Prohibition on Admission as Participant.

No officer or employee of the Facility shall be admitted as a Participant; provided 

however, nothing in this rule limits or precludes an Execution Specialist from carrying 

out his or her functions.

207. Restrictions on Directors, Officers, Committee Members, Employees 

and Consultants.

Members of the Board of the Facility, officers of the Facility, members of committees of 

the Facility, employees of the Facility, members of the Board of Directors, officers, and 

employees of any corporate affiliate of the Facility performing functions for the Facility, 

and consultants and contractors to the Facility and their employees shall comply with the 

following restrictions and obligations:
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(a) Improper Use or Disclosure of Material Non-Public Information. No member of 

the Board of Directors or of any Board committee, no member of any other committee 

of the Facility, no officer of the Facility, no employee of the Facility, no member of the 

Board of Directors, officer or any employee of any corporate affiliate of the Facility 

performing functions for the Facility and no consultant to the Facility shall:

(i) trade for such person’s own account, or for or on behalf of any other account, 

in any commodity interest on the basis of any material, non-public 

information obtained through the performance of such person’s official 

duties; or

(ii) use or disclose, for any purpose other than the performance of such person’s 

official duties, any material, non-public information obtained by such person 

as a result of such person’s official duties, provided, however, that this 

Section shall not prohibit disclosures made by such person in the course of 

his or her official duties or disclosures made to any other self-regulatory 

organization, a court of competent jurisdiction or any agency or department 

of the federal or state government.

(b) Restrictions on Trading by Officers and Employees. No employee or officer of the 

Facility, or of any corporate affiliate, may trade, directly or indirectly in: 

(i) Any commodity interest traded on or cleared by the Facility; 

(ii) Any related commodity interest; 

(iii) A commodity interest traded on contract markets or swap executions 

facilities or cleared by derivative clearing organizations other than the 

Facility if the person has access to material, non-public information 

concerning such commodity interest; or

(iv) A commodity interest traded on or cleared by a linked exchanged if the 

person has access to material, non-public information concerning such 

commodity interest. 

(c) Eligibility for Service on Boards and Committees.

(i) A person shall be ineligible to serve on the Board of Directors, a disciplinary 

committee, arbitration panel or, oversight panel who:

(A) Was found within the prior three years by a final decision of a selfregulatory organization, an administrative law judge, a court of 

competent jurisdiction or the Commission to have committed a 

disciplinary offense;
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(B) Entered into a settlement agreement within the prior three years in 

which any of the findings or, in the absence of such findings, any 

of the acts charged included a disciplinary offense;

(C) Currently is suspended from trading on any contract market, is 

suspended or expelled from membership with any self-regulatory 

organization, is serving any sentence of probation or owes any 

portion of a fine imposed pursuant to either:

(1) A finding by a final decision of a self-regulatory 

organization, an administrative law judge, a court of 

competent jurisdiction or the Commission that such person 

committed a disciplinary offense; or,

(2) A settlement agreement in which any of the findings or, in 

the absence of such findings, any of the acts charged 

included a disciplinary offense.

(D) Currently is subject to an agreement with the Commission or any 

self-regulatory organization not to apply for registration with the 

Commission or membership in any self-regulatory organization;

(E) Currently is subject to or has had imposed on him within the prior 

three years a Commission registration revocation or suspension in 

any capacity for any reason, or has been convicted within the prior 

three years of any of the felonies listed in section 8a(2)(D) (ii) 

through (iv) of the Act;

(F) Currently is subject to a denial, suspension or disqualification from 

serving on the disciplinary committee, arbitration panel or 

governing board of any self-regulatory organization as that term is 

defined in section 3(a)(26) of the Securities Exchange Act of 1934.

(ii) Any person who is a member of the Board of the Facility or any committee 

of the Facility shall immediately notify the Chief Executive Officer of any 

information or occurrence which subjects such person to disqualification 

pursuant to paragraph (i) of this section.

(d) Restrictions on Participation on Board and Committees.

(i) no person shall vote, participate in deliberations or take any action involving 

the regulatory functions of the Facility as a member of the Board of Directors 

of the Facility or any committee of the Facility on any matter involving a 

Named Party in Interest if such member:

(A) is a Named Party in Interest as defined in Rule 209(a)(iv);
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(B) is associated with a named party in interest through a “broker 

association” as defined in Commission Rule 156.1;

(C) is an employer, employee, or fellow employee of a Named Party in 

Interest;

(D) has any other significant, ongoing business relationship with a 

Named Party in Interest; including but not limited to, employment 

with or acting as a Director of an entity that either: 

(1) employs, directly or indirectly through ownership or 

control, the Named Party in Interest, or 

(2) is owned or controlled, directly or indirectly, by the Named 

Party in Interest; or

(E) has a family relationship as defined in Rule 209(a) with a Named 

Party in Interest.

(ii) prior to the consideration of any matter involving a Named Party in Interest, 

each member of the Board of Directors of the Facility or a committee (as the 

case may be) must disclose to the Chief Compliance Officer of the Facility, 

whether he or she has one of the relationships listed in paragraph (d)(i) of this 

section with a Named Party in Interest. The Chief Compliance Officer shall 

determine whether any such member of the Board of Directors or the 

committee is subject to the restrictions set forth in paragraph (d)(i) in any 

matter involving a Named Party in Interest, which determination, taking into 

consideration the exigency of the action to be taken, shall be based upon:

(A) information provided by such member pursuant to this paragraph 

(d)(ii); and

(B) any other source of information that is held by and reasonably 

available to the Facility.

(iii) no person shall vote or participate in deliberations on any Significant Action 

as a member of the Board of Directors of the Facility or any committee of the 

Facility if such member knowingly has a material conflict of interest, 

including but not limited to having a direct and substantial financial interest 

in the result of the vote based upon positions maintained at the Facility or 

elsewhere that could reasonably be expected to be affected by the action .

(iv) prior to the consideration of any Significant Action, each member of the 

Board of Directors of the Facility or a committee of the Facility (as the case 

may be) must disclose to the Chief Compliance Officer, the following 
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information that is known to him or her, unless such member chooses to 

abstain from deliberations and voting on the Significant Action in question:

(A) gross positions, if any, held at the Facility in such member’s 

personal accounts or “controlled accounts,” as defined in Section 

1.30(j) of the regulations of the Commission;

(B) gross positions, if any, held at the Facility in “proprietary 

accounts,” as defined in Section 1.17(b)(3) of the regulations of the 

Commodity Futures Trading Commission, at such member’s 

affiliated firm;

(C) gross positions, if any, held at the Facility in accounts in which 

such member is a “principal,” as defined in Section 3.1(a) of the 

regulations of the Commodity Futures Trading Commission;

(D) net positions held at the Facility in “customer” accounts, as defined 

in Section 1.17(b)(2) of the regulations of the Commodity Futures 

Trading Commission, at such member’s affiliated firm; and

(E) any other types of positions, whether maintained at the Facility or 

elsewhere, held in such member’s personal accounts or the 

proprietary accounts of such member’s affiliated firm that the 

Facility reasonably expects could be affected by the Significant 

Action.

(v) the Chief Compliance Officer shall determine whether a member of the 

Board of Directors or a committee is subject to the restrictions contained in 

this paragraph (d) in any Significant Action after a review of the information 

described in paragraph (d)(iv) above. Taking into consideration the exigency 

of the Significant Action, such determination should be based upon:

(A) the most recent large trader reports and clearing records available 

to the Facility;

(B) information provided by the member pursuant to paragraph (d)(ii) 

above; and

(C) any other source of information that is held by and is reasonably 

available to the Facility.

(vi) any member of the Board of Directors of the Facility or any committee who 

would otherwise be required to abstain from deliberations pursuant to this 

paragraph (i) of this subsection may participate in deliberations, prior to a 

vote on a Significant Action for which he or she otherwise would be required 

to abstain pursuant to paragraph (iii) of this subsection, if in the judgment of 
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the deliberating body such participation would be consistent with the public 

interest and if such member recues himself or herself from voting on such 

action. In making a determination as to whether to permit such member to 

participate in such deliberations, the deliberating body shall consider whether 

the member’s participation in deliberations is necessary for the deliberating 

body to achieve a quorum and whether the member has unique or special 

expertise, knowledge or experience in the matter under consideration. Prior 

to making any such determination, the deliberating body must fully consider 

the position information which is the basis for the member’s direct and 

substantial financial interest in the result of a vote on a Significant Action.

(vii) the Board of Directors of the Facility and each committee of the Facility 

must reflect in their minutes or otherwise document that the conflicts 

determination procedures required by paragraphs (ii) and (iv) of this section 

have been followed. Such records also must include:

(A) the names of all members who attended the meeting in person or 

who otherwise were present by electronic means;

(B) the name of any member who voluntarily recused himself or 

herself or was required to abstain from deliberations and/or voting 

on a matter and the reason for the recusal or abstention, if stated; 

and

(C) information on the position information that was reviewed for each 

member.

(e) Seconded personnel. An employee seconded to the Facility shall cooperate with any 

request for information or documents in any investigation or inquiry by a Governmental 

Agency relating to the business or operation of the Facility.

208. Reserved.

209. Conflicts of Interest. 

(a) Definitions. For purposes of this Rule 209, the following definitions shall apply:

(i) the term “family relationship of a Person” shall mean such Person’s spouse, 

former spouse, parent, stepparent, child, stepchild, sibling, stepbrother, 

stepsister, grandparent, grandchild, uncle, aunt, nephew, niece or in-law.

(ii) the term “Board” shall mean the Board, and any committee thereof duly 

authorized to take action or to recommend the taking of action on behalf of 

the Facility.
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(iii) the term “member’s affiliated firm” shall mean a firm in which a member of 

the relevant deliberating body is an employee or a “principal”, as defined in 

Commission Regulation 3.1(a).

(iv) the term “named party in interest” shall mean a “named party in interest” as 

defined in Section 1.69 of the Commission Regulations..

(v) the term “significant action” shall mean any of the following types of actions 

or rule changes that are implemented without the Commission’s prior 

approval:

(A) Any actions or Rule of the Facility changes which address an 

“Emergency”, as defined in Rule 1204; and

(B) Any changes in margin levels that are (i) designed to respond to 

extraordinary market conditions, such as an actual or attempted 

squeeze or corner or congestion due to undue position 

concentration or (ii) otherwise likely to have a substantial effect on 

prices in any Swap.

(b) Named Party in Interest Conflict.

(i) Prohibition. No Officer, Chief Compliance Officer or member of the Board 

or any standing committee shall participate in such body’s deliberations or 

voting in any matter involving a named party in interest where such person 

(A) is a named party in interest, (B) is an employer, employee or fellow 

employee of a named party in interest, (C) is associated with a named party 

in interest through a broker association, (D) has a family relationship with a 

named party in interest or (E) has any other significant, ongoing business 

relationship with a named party in interest, excluding relationships limited to 

executing Swaps opposite each other or to clearing Swaps through the same 

Clearing Participant.

(ii) Recusal. Where the Chief Compliance Officer has or believes that he or she 

may have one of the relationships listed in this Rule with a named party in 

interest, or where the Chief Compliance Officer has or believes that he or she 

may have any personal, professional or familial relationships with respect to 

any person or entity, who is likely to be materially affected by any significant 

action on which the Chief Compliance Officer would participate in 

deliberations or decision making, the Chief Compliance Officer shall recuse 

himself or herself from the matter giving rise to the conflict and the Board 

shall appoint an individual meeting all the requirements of a Chief 

Compliance Officer to serve as Chief Compliance Officer for the specific 

matter giving rise to the conflict.
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(iii) Disclosure. Prior to consideration of any matter involving a named party in 

interest, each member of the deliberating body shall disclose to the Chief 

Executive Officer, or his or her designee, whether such member has or 

believes that he or she may have one of the relationships listed in paragraph 

(b)(i) of this Rule 209 with a named party in interest.

(iv) Procedure and Determination. The Chief Executive Officer, or his or her 

designee, shall determine whether any member of the relevant deliberating 

body is subject to a conflicts restriction under this paragraph (b). Such 

determination shall be based upon a review of the following information:

(A) information provided by such member pursuant to clause (iii) 

above and any additional information requested by the Chief 

Executive Officer or his or her designee; and

(B) any other source of information that is held by and reasonably 

available to the self-regulatory organization. 

(c) Financial Interest in a Significant Action Conflict.

(i) Prohibition. No Officer, Chief Compliance Officer or member of the Board 

or any standing committee shall participate in such body’s deliberations and 

voting on any significant action if such person knows or reasonably should 

know that he or she has a direct or indirect substantial financial interest in the 

result of the vote based upon either Facility or non-Facility positions that 

could reasonably be expected to be affected by the significant action under 

consideration, as determined pursuant to this paragraph (c).

(ii) Procedure for Determination. The Facility shall follow the following 

procedure for determining whether any member of its governing board, 

disciplinary committees or oversight committees is subject to a conflicts 

restriction under this section in any significant action. Such a member shall 

seek the review of the Chief Compliance Officer, whose determination must 

include a review of:

(A) Gross positions held at the Facility in the member’s personal 

accounts or “controlled accounts,” as defined in Commission Rule 

1.3(j);

(B) Gross positions held at the Facility in proprietary accounts, as 

defined in Commission Rule 1.17(b)(3), at the member’s affiliated 

firm;

(C) Gross positions held at the Facility in accounts in which the 

member is a principal, as defined in Commission Rule 3.1(a);
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(D) Net positions held at the Facility in “customer” accounts, as 

defined in Commission Rule 1.17(b)(2), at the member’s affiliated 

firm; and, 

(E) Any other types of positions, whether maintained at the Facility or 

elsewhere, held in the member’s personal accounts or the 

proprietary accounts of the member’s affiliated firm that the 

Facility reasonably expects could be affected by the significant 

action. 

(iii) Procedure and Determination. The Chief Compliance Officer shall 

determine whether any member of the relevant deliberating body is subject to 

a conflicts restriction under this paragraph (c) based upon a review of the 

most recent large trader reports and clearing records available to the Facility, 

information provided by such member with respect to positions pursuant to 

clause (ii) above and any other source of information that is held by and 

reasonably available to the Facility, taking into consideration the exigency of 

the significant action being contemplated. 

(iv) Deliberation Exemption. Any Officer, member of the Board, a “disciplinary 

committee” or “oversight panel” (both as defined in Commission Regulation 

1.69) who would otherwise be required to abstain from deliberations and 

voting pursuant to this paragraph (c) (excluding the Chief Compliance 

Officer) may participate in deliberations, but not voting, if the deliberating 

body, after considering the factors specified below, determines that such 

participation would be consistent with the public interest, provided, however, 

that before reaching any such determination, the deliberating body shall fully 

consider the position information specified in clause (ii) above which is the 

basis for such member’s substantial financial interest in the significant action 

that is being contemplated. In making its determination, the deliberating 

body shall consider:

(A) whether such member’s participation in deliberations is necessary 

to achieve a quorum; and

(B) whether such member has unique or special expertise, knowledge 

or experience in the matter being considered.

(d) Documentation. The minutes of any meeting to which the conflicts determination 

procedures set forth in this Rule apply shall reflect the following information:

(i) the names of all members of the relevant deliberating body who attended 

such meeting in person or who otherwise were present by electronic means;
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(ii) the name of any member of the relevant deliberating body who voluntarily 

recused himself or herself or was required to abstain from deliberations or 

voting on a matter and the reason for the recusal or abstention, if stated; and

(iii) information on the position information that was reviewed for each member 

of the relevant deliberating body.

210. Chief Compliance Officer

(a) The Chief Executive Officer shall appoint the Chief Compliance Officer to whom the 

Chief Compliance Office shall report. The Chief Compliance Officer shall meet with 

the Board of Directors at least annually and with the Regulatory Oversight Committee 

at least quarterly. The Chief Compliance Officer may only be removed by the vote of a 

majority of the Board of Directors. 

(b) The Chief Compliance Officer shall carry out the following duties:

(i) Oversee and review the Facility’s compliance with section 5h of the Act and 

Commission Rules thereunder;

(ii) resolve any conflicts of interest that may arise, in consultation with the Board 

of Directors or the Senior Executive Officer, including:

(A) conflicts between business considerations and compliance 

requirements; 

(B) conflicts between business considerations and the requirement that 

the Facility provide fair, open, and impartial access as provided in 

Commission Rule 37.202; and

(C) conflicts between the Facility’s management and members of the 

Board of Directors;

(iii) establish and administer written policies and procedures reasonably designed 

to prevent violations of the Act and Commission Rules;

(iv) take reasonable steps to ensure compliance with the Act and Commission 

Rules;

(v) establish procedures for the remediation of noncompliance issues identified 

by the Chief Compliance Officer through a compliance office review, lookback, internal or external audit finding, self-reported error, or validated 

complaint;

(vi) establish and follow appropriate procedures for the handling, management 

response, remediation, retesting, and closing of noncompliance issues;
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(vii) establish and administer a compliance manual designed to promote 

compliance with Applicable Laws, rules, and regulations and a written code 

of ethics designed to prevent ethical violations and to promote honesty and 

ethical conduct;

(viii) supervise the Facility’s self-regulatory program with respect to trade practice 

surveillance, market surveillance, real-time market monitoring, compliance 

with audit trail requirements, disciplinary proceedings, audits, examinations, 

and other regulatory responsibilities with respect to Participants (including 

ensuring compliance with, if applicable, financial integrity, financial 

reporting, sales practice, recordkeeping, and other requirements), the 

effectiveness and sufficiency of services provided by the Regulatory Services 

Provider; and 

(ix) prepare and sign an annual compliance report. 

(A) Such annual compliance report for the year since the end of the 

previous review period must contain the following information: 

(1) description of the swap execution facility’s written policies 

and procedures, including the code of ethics and conflict of 

interest policies;

(2) review of applicable Commission regulations and each 

subsection and core principle of section 5h of the Act, that, 

with respect to each identifies the policies and procedures 

that are designed to ensure compliance, provides a selfassessment as to the effectiveness of these policies and 

procedures, and discusses areas for improvement and 

recommends potential or prospective changes or 

improvements to its compliance program and resources;

(3) a list of any material changes to compliance policies and 

procedures since the last annual compliance report;

(4) a description of the financial, managerial, and operational 

resources set aside for compliance including a description 

of the Facility’s self-regulatory program’s staffing and 

structure, a catalogue of investigations and disciplinary 

actions taken since the last annual compliance report, and a 

review of the performance of disciplinary committees and 

panels; and

(5) a description of any material compliance matters, including 

noncompliance issues identified through a compliance 

office review, look-back, internal or external audit finding, 
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self-reported error, or validated complaint, and an 

explanation of how they were resolved.

(B) The Chief Compliance Officer shall sign a certification that that, to 

the best of his or her knowledge and reasonable belief, and under 

penalty of law, the annual compliance report is accurate and 

complete. 

(C) The Chief Compliance Officer shall submit the annual compliance 

report to the Board of Directors for its review and to the 

Commission within the time and manner specified by the 

Commission. 

PART 3. PARTICIPANTS.

301. Status of Participants.

(a) Participants shall have the privileges, rights and obligations set forth in, or established 

pursuant to, these Rules.

(b) Subject to the requirements and procedures set forth in this Part 3, Trading Privileges 

shall be offered to all Applicants from time to time approved by the Facility as eligible 

to be Participants, subject to any limitation, restriction or revocation from time to time 

imposed by the Facility. Trading Privileges are non-transferable, non-assignable and 

may not be sold or leased.

(c) Any Person that is currently accepted as a customer of, and with trading privileges 

with, BGC Partners, Inc. or any of its wholly owned subsidiaries is admitted as a 

Participant of the Facility on the same basis as an Applicant under Rule 303, upon such 

Person:

(i) submitting a completed current customer Application;

(ii) representing to the Facility that it is an Eligible Contract Participant,

(iii) representing to the Facility that it is a current customer of BGC Partners, Inc. 

or any of its wholly-owned subsidiaries;

(iv) acknowledging to the Facility that it understands that by accessing, or 

entering any order into the Facility the Applicant agrees, 

(A) to be bound by, and comply with, the rules of the Facility, and

(B) to be subject to the jurisdiction of the Facility with respect to all 

matters arising from its status, actions or omissions as a Participant 

of the Facility; 
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(v) informing the Facility of any change in the Applicant’s traders, which, in the 

absence of any such notice, shall be deemed to be Authorized Traders under 

Rule 306; and 

(vi) providing any additional information and documents that the Facility may 

request.

302. Eligibility.

(a) Unless otherwise prohibited by these Rules, any Person is eligible to become a 

Participant, provided that such Person meets the following standards:

(i) the Applicant satisfies the definition of Eligible Contract Participant; 

(ii) if a natural person, the Applicant shall have attained the age of majority and 

shall be of good character;

(iii) if an Entity, the Applicant shall be duly organized, existing and in good 

standing under the laws of its jurisdiction of organization;

(iv) the Applicant shall have good commercial standing and business experience;

(v) the Applicant shall have adequate financial resources and credit as 

reasonably determined by the Facility;

(vi) the Applicant shall, where relevant, be registered, licensed or otherwise 

permitted by the appropriate Governmental Agency to conduct business on 

the Trading System or subject to the rules of the Facility;

(vii) the Applicant shall have such operational capabilities (including without 

limitation such hardware, software, communications systems and staffing) as 

the Facility may from time to time determine is appropriate in view of such 

Person’s anticipated type and level of activity on the Trading System or 

subject to the rules of the Facility;

(viii) the Applicant shall meet any other criteria that the Facility may from time to 

time prescribe.

303. Application Procedures.

(a) Except as provided under Rule 301(c), every Person applying to become a Participant 

shall complete an application on a form prescribed by the Facility and shall file it with 

the Facility with any documents that the Facility requires.

(b) An Applicant must name in its application for admission a natural person who will be 

authorized to represent it. An Applicant must name at least one natural person who, if 
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approved by the Facility, will be an Authorized Trader. An Applicant who is a natural 

person shall be considered by the Facility to be both the representative and the 

Authorized Trader. 

(c) The Applicant must designate at least one senior officer who is responsible for 

supervising all activities of its employees relating to transactions effected on the 

Trading System or subject to the Facility’s Rules and advise the Facility of the name, 

title, and address for the senior officer, phone number, fax number and e-mail address 

of each such officer;

(d) An Applicant shall:

(i) agree to abide by the Rules of the Facility and adhere to Applicable Law; and

(ii) consent to the jurisdiction of the Facility in all matters arising under the 

Rules.

(e) Every Applicant and all Persons associated with the Applicant may be investigated by 

the Facility. The Applicant shall file with the Facility any additional information and 

documents as the Facility, or any individual, corporation, Facility or association 

authorized by the Facility to act on its behalf, may request.

(f) Upon completion of the application process, the Facility shall consider and then 

approve or reject the application for admission, unless there is just cause for delay. 

Applicants who are natural persons as well as holders of a significant interest in and/or 

senior management of Applicant Entities may be required to appear in person before 

the Facility. The Facility may also require any Participant, significant shareholder or 

manager associated with a Participant who may possess information relevant to the 

Applicant’s suitability for membership to provide additional information.

(g) The Facility shall approve an application for admission if it finds that the Applicant 

meets all of the qualifications to become a Participant. The Facility shall reject an 

application for admission if it does not make such a finding or if it finds that, if the 

application were approved, the Participant would be subject to suspension or expulsion 

under the provisions of these Rules or Applicable Law, including, without limitation, 

the Commodity Exchange Act.

(h) Written notice of the action of the Facility, specifying in the case of rejection of an 

application the grounds therefore, shall be given promptly to the Applicant.

304. Denial of Admission.

(a) The Facility may deny the application of any Person (or a Person associated with the 

Applicant) to become a Participant if the Person:
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(i) does not meet one or more of the standards of eligibility set forth in Rule 302 

or does not follow the procedures to apply for admission set forth in these 

Rules or established by the Facility;

(ii) has been convicted of any felony or misdemeanor involving, arising from, or 

related to, the purchase or sale of any Commodity, security, futures contract, 

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

moral turpitude, or is permanently or temporarily enjoined by order, 

judgment or decree of any court of competent jurisdiction or any 

Governmental Agency from engaging in or continuing any conduct or 

practice in connection with the purchase or sale of any Commodity, security, 

futures contract, option or other financial instrument, or is or has been subject 

to an order of the Commission denying the Person trading privileges on or 

subject to the rules of any registered entity;

(iii) has had any fine, cease and desist order, denial of trading privileges, censure 

or other discipline (whether through an adverse determination, voluntary 

settlement or otherwise) imposed on such Person by any Governmental 

Agency;

(iv) has ever been expelled from, suspended by or subject to any other 

disciplinary action (whether through an adverse determination, voluntary 

settlement or otherwise) imposed on such person by any SRO;

(v) is subject to any material unsatisfied judgments, the enforcement of which 

has not been stayed by a court of competent jurisdiction;

(vi) has made any false or misleading statement in or in connection with any 

application filed with the Facility;

(vii) is subject to a statutory disqualification as defined in Section 8(a)(2) of the 

Commodity Exchange Act; 

(viii) is subject to a statutory disqualification as defined in the Securities Exchange 

Act; or

(ix) if, under all of the circumstances, the Facility in its discretion determines that 

admitting the Person as a Participant would not be in the best interests of the 

Facility and the denial is otherwise consistent with the Facility’s obligations 

under the Act.

(b) In the event that an application for membership is denied by the Facility, the Applicant 

shall have an opportunity to be heard upon the specific grounds for the denial. An 

Applicant denied membership may challenge the denial by filing with the Secretary a 

petition for review of the denial by the Facility’s Appeals Committee. The petition 

shall be filed within thirty calendar days of the date upon which the Facility’s decision 
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was mailed to the Applicant. Hearings shall be conducted in a manner that will give the 

Person an opportunity to present fully and fairly to the Facility the Person’s reasons 

why the application should be granted.

305. Admission as a Participant.

(a) In the event that the Facility grants the application for admission of any Person to 

become a Participant (or at any time prior thereto), the Person shall, within such time as 

the Facility may specify, take the following actions:

(i) unless the Applicant is itself a Clearing Participant, declare on a form 

prescribed by the Facility that it has in effect an agreement with a Clearing 

Participant to clear the Applicant’s transactions; 

(ii) file such other documents and take such other actions as the Facility may 

prescribe; and

(iii) establish and maintain a working connection with the Trading System in 

accordance with such procedures and protocols as the Facility may have in 

effect from time to time.

(b) Upon completing such actions, such Person shall become a Participant, with all of the 

rights, privileges and obligations set forth in, or established pursuant to the Rules; and

(i) the Facility shall notify the Person of the effective date and time of becoming 

a Participant and of the Participant ID and, in the case of a Clearing 

Participant, the Clearing Participant ID;

(ii) if the Person does not complete the actions specified in paragraph (a) within 

the time specified by the Facility, then unless the Facility extends the time, 

the Person shall be deemed to have withdrawn the application to become a 

Participant.

306. Sponsored Participants, Brokers and Customers.

(a) Authorized Traders.

(i) Each Participant, Authorized Customer or Broker that is not a natural Person 

shall appoint one or more persons to act as an Authorized Trader, and any 

such Authorized Trader shall be entitled to exercise Trading Privileges on 

behalf of the Participant, Authorized Customer or Broker subject to the terms 

and conditions of these Rules. 

(ii) A Participant, Authorized Customer or Broker wishing to appoint an 

Authorized Trader shall notify the Facility and each Authorized Trader will 

consent to abide by the Rules of the Facility and Applicable Law prior to 
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accessing the Trading System. Each Authorized Trader must satisfy such 

requirements as may be prescribed by the Facility from time to time and shall 

be subject to the disciplinary authority of the Facility, including possible 

restriction or revocation of Trading Privileges.

(iii) A Participant admitted under Rule 301(c), unless notifying the Facility 

otherwise, shall be deemed to appoint as its Authorized Traders on the 

Facility those Persons that were authorized to exercise Trading Privileges on 

BGC Broker, Inc. or its wholly-owned subsidiaries on its behalf. 

(b) Brokers.

(i) A Broker may exercise Trading Privileges on the Facility subject to the 

terms and conditions of these Rules by:

(A) completing and filing an application on a form prescribed by the 

Facility with any documents that the Facility requires;

(B) consenting to abide by the Rules of the Facility and Applicable 

Law prior to accessing the Trading System, and

(C) satisfying such requirements as may be prescribed by the Facility 

from time to time.

(D) Trading Privileges shall be offered to all Brokers whose 

application has been accepted by the Facility, and the Facility shall 

issue such a Broker a User ID and password or identifiers. A 

Broker that exercises Trading Privileges shall be subject to the 

disciplinary authority of the Facility, including possible restriction 

or revocation of Trading Privileges.

(ii) A Broker shall not submit Orders, report Off-facility Transactions, or submit 

Block Trades to the Facility, except with approval from the relevant 

Participant’s Authorized Trader on an Order-by-Order or transaction-bytransaction basis.

(iii) A Participant may designate one or more Brokers to:

(A) conduct Off-facility Transactions; 

(B) enter Bids, Offers or Orders into the Trading System on the 

Participant’s behalf; 

(C) assist in pre-discussion of trades as permitted under Rule 505; or

(D) assist in arranging Block Trades. 
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(iv) A Participant shall designate one or more Brokers as authorized to act on the 

Participant’s behalf by notifying the Facility in writing, or verbally with a 

writing to follow, that the Participant has authorized the Broker to act on the 

Participant’s behalf. A Participant shall have no supervisory responsibility 

for the actions of a Broker in connection with the Broker’s conduct relating 

to Off-facility Transactions or trading on or subject to the Rules of the 

Facility. 

(v) Notwithstanding subparagraph (b)(iv) of this Rule, a Broker that is a 

corporate affiliate of the Facility, in each case such affiliated Broker having 

consented to abide by the Rules of the Facility and Applicable Law, shall be 

deemed by the Facility to be designated as the Participant’s Broker upon the 

Participant’s submission of Bids or Offers to the Facility or, as applicable, an 

Off-facility Transaction, via such affiliated Broker. A Broker acting as such 

for a Participant under this subparagraph (b)(v) need not be designated to act 

on behalf of the Participant through a separate writing as required in 

subparagraph (b)(iv).

(c) Authorized Customers.

(i) Each Participant may from time to time elect to sponsor access to the Facility 

by a Customer by providing a User ID to one or more of its Customers to 

enable any such Customer to access the Facility, including the Trading 

System directly, and any such Customer will become an “Authorized 

Customer” for purposes of these Rules, and shall be entitled to exercise 

Trading Privileges and to directly access the Facility, including the Trading 

System, subject to the following conditions. 

(ii) Any Participant wishing to designate an Authorized Customer shall notify the 

Facility (and must satisfy the requirements listed below) and must obtain 

from each Authorized Customer an agreement, in the form specified by the 

Facility, pursuant to which, among other things, the Authorized Customer 

agrees to comply with the Rules of the Facility and Applicable Law. Each 

Authorized Customer must satisfy such requirements as may be prescribed 

by the Facility from time to time and shall be subject to the disciplinary 

authority of the Facility and possible restriction or revocation of Trading 

Privileges. 

(iii) An Authorized Customer Account shall be carried in the name of the 

Participant.

(iv) An Authorized Customer must assure the clearing of all trades and positions 

for that account by providing to the Facility, in a form acceptable to the 

Facility, a representation that the Authorized Customer is a Clearing 

Participant or has a relationship with a Clearing Participant.
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(v) The Participant shall provide, or cause the Authorized Customer to provide, 

to the Control Desk such information as shall be requested pertaining to the 

Authorized Customer for which Trading System access is sought, including 

but not limited to, name, address, account number, birth date (or other 

acceptable identifier) or tax identification number for Persons other than 

individuals, any give-up information, email address and telephone numbers. 

(vi) The Control Desk, once it is satisfied that all requested information has been 

provided, shall issue a User ID and password or identifiers for such 

Authorized Customer. The User ID shall not be authorized for trading 

through the Trading System until the Clearing Participant enters in the 

Facility risk administration terminal all required risk controls for such 

Authorized Customer or provides the Control desk with such data as 

required. The Facility will enable the User ID when it is satisfied in its sole 

discretion that all requirements have been met and risk controls have been 

utilized. Notwithstanding the foregoing, the Participant shall remain 

responsible in accordance with these Rules for the acts and omissions of any 

of its Authorized Customers, regardless of the level of risk controls set by the 

Clearing Participant and the approval of such risk controls by the Facility.

(d) Customers. 

(i) Any Participant may enter a Swap under its own Participant ID for a 

Customer if the Participant:

(A) complies with any registration requirement that applies under 

Applicable Law, including all Customer on-boarding requirements 

and any applicable Commission Rules relating to the conduct of 

business by such Participant with a Customer;

(B) ensures that its Customer is an Eligible Contract Participant;

(C) assures the financial performance of all trades and positions for its 

account by providing to the Facility, in a form acceptable to the 

Facility, a representation that the Customer’s positions are 

guaranteed by a Clearing Participant; and 

(D) provides the Facility with any information necessary for reporting 

purposes. 

(e) Each Participant may at any time revoke an authorization granted by it to a Sponsored 

Participant or Broker by providing either written notice of such revocation, or verbal 

notice with written notice to follow, to the Facility and to the Sponsored Participant ’s 

Clearing Participant, if applicable. A Participant after such revocation shall take

immediate measures: 
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(i) to withdraw all resting Orders of the Sponsored Participant from the Trading 

System, or to request that the Facility delete such Orders; 

(ii) to ensure that the revoked Sponsored Participant , where applicable, shall not 

have access to the Trading System or to Order execution subject to the rules 

of the Facility; and

(iii) to ensure that the revoked Sponsored Participant , where applicable, shall not 

utilize its User ID. 

(f) All trading-related provisions of these Rules shall apply to each Sponsored Participant

(and their Authorized Traders), Brokers (and their Authorized Traders) and other 

Supervised Persons, and each Participant shall be responsible for the actions and 

omissions of each of its Authorized Traders, other Supervised Persons and Authorized 

Customers (who shall be responsible for the actions and omissions of their Authorized 

Traders). Each Participant will ensure on an ongoing basis that none of its Authorized 

Traders, other Supervised Persons and Authorized Customers is subject to statutory 

disqualification as defined by the Commodity Exchange Act (unless an appropriate 

exemption has been obtained with respect thereto). 

(g) Each Participant will ensure that each of its Authorized Traders, other Supervised 

Persons (as applicable) and Authorized Customers will be technically proficient in 

respect of the use of the Trading System. Each Participant shall have procedures for 

performing day-to-day monitoring of its Authorized Traders, other Supervised Persons 

and Authorized Customers to ensure that each will conduct its business in a fair and 

equitable manner and in accordance with the Rules of the Facility.

(h) For purposes of these Rules, any reference to the Trading Privileges of a Participant 

shall also be deemed to refer and apply to the exercise of Trading Privileges by any of 

such Participant’s Sponsored Participant s and Trading Privileges of a Broker whether 

designated or deemed designated, shall be deemed to refer and to apply to the exercise 

of Trading Privileges by a Broker’s Authorized Traders. 

(i) For purposes of these Rules, any reference to a Participant submitting or receiving 

Orders, Bids, Offers or Message Traffic into or from the Trading System or Facility or 

engaging in transactions in Swaps matched through the Trading System or an Offfacility Transaction reported to the Facility and executed subject to the Rules of the 

Facility, shall be deemed to also refer and apply to any such actions engaged in by any 

of such Participant’s Sponsored Participant s and the knowledge of, or matters known 

to, any Participant shall be deemed to also refer to and include the knowledge of, or 

matters known to, its Authorized Traders other Supervised Persons and Authorized 

Customers.
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307. Payment of Facility Fees.

The Facility, in its discretion and with reasonable written notice, may impose fees, 

charges and assessments upon Participants and Brokers. Participants, or as applicable, a 

Broker registered with the Commission, trading for a Participant, shall pay any fees, 

charges and assessments in a manner prescribed by the Facility on a timely basis. The 

Facility may suspend any Participant or impose other penalties pursuant to Part 10 for 

failure to pay any such fee, charge, or assessment on a timely basis.

308. Surveillance.

The Facility has contracted with the NFA for the performance of market, trade practice, 

financial, and audit trail surveillance and related investigations and disciplinary 

proceedings with respect to Participants. The failure by any Person subject to the 

Facility’s Rules to furnish any information requested by the entity that are related to the 

performance of these functions, as authorized by the Facility and acting on behalf of the 

Facility with respect to these functions, shall constitute a violation of these Rules. The 

Facility retains ultimate responsibility for the oversight of each Participant.

309. Market Data

(a) Subject to each Participant’s rights in its Participant Data, the Facility owns all 

rights, title and interest in and to all intellectual property and other proprietary 

rights (including, without limitation, all copyright, patent, trademark or trade 

secret rights) in Market Data, and all derivative works based thereon. No Person 

including but not limited to Participants, Sponsored Participant s, Brokers, 

employees, agents, vendors and other Persons affiliated with any of the foregoing 

may use (except that each Participant, Sponsored Participant and Broker may use 

solely internally for the purposes of the Participant executing Swap transactions

on the Trading System), or distribute, sell or retransmit Market Data to any third 

party without the consent of the Facility, nor take any action contrary or 

detrimental to Facility’s interest in the Market Data. Facility may at any time 

further restrict use of or access to or establish utilization fees in respect of Market 

Data. 

(b) For the avoidance of doubt and notwithstanding any provisions of Rule 309 or 

Rule 1208: (1) each Participant retains such proprietary interest in its Participant 

Data and no restrictions herein shall apply to Participant’s use of such Participant 

Data or resulting executions by the Participant; and (2) no restrictions herein shall 

apply to Facility’s use or disclosure either for the purpose of fulfilling the 

Facility’s regulatory obligations or as may be required by Applicable Law of any 

Participant Data or any data or information that has been collected or received 
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from any Participant or from its Sponsored Participant s, Broker, employees, 

agents, vendors or other Persons affiliated with any of the foregoing. 

(c) Unless a Participant provides written, notice to the General Counsel of the 

Facility, such writing may be electronic, the Facility may not use for business or 

marketing purposes Proprietary Data or Personal Information that has been 

collected or received from such Participant or from any of its Sponsored 

Participant s, Brokers, employees, agents, vendors and their Affiliates and other 

Persons affiliated with any of the foregoing for the purpose of fulfilling the 

Facility’s regulatory obligations. Provided however, the Facility may share such 

Proprietary Data or Personal Information with one or more registered entities (as 

such term is defined in Commission Regulations) where necessary for regulatory 

purposes. Access to the Facility will not be conditioned upon the consent to use 

such Proprietary Data or Personal Information for business or marketing purposes 

and no Person shall be denied access to the Facility as a consequence of refusal to 

submitting such notice to the Facility.

(d) For the avoidance of doubt, nothing herein restricts use, distribution, sublicense, 

disclosure or sale, in any manner, media or jurisdiction and each Participant, 

Sponsored Participant and Broker on behalf of itself and its Affiliates and other 

Persons affiliated with any of the foregoing hereby grants the Facility a nonexclusive, perpetual, freely transferable, irrevocable, worldwide and royalty-free 

license to use, distribute, sublicense, disclose and sell, in any manner, media and 

jurisdiction (in each case, for the benefit of the Facility and/or its Affiliates) 

Participant Data on an aggregated basis without directly or indirectly identifying 

any Participant.

310. Recording of Conversations.

Participants, Sponsored Participant s and Brokers acknowledge and consent to the 

Facility’s right and power to record conversations between employees, officers and 

agents of the Facility and Participants, Sponsored Participant s and Brokers and, their 

employees, officers and agents, to the extent permitted by Applicable Law. Participants, 

Sponsored Participant s and Brokers shall inform their employees and agents of the 

Facility’s right and power to record conversations and shall obtain their consent thereto. 

The Facility shall retain any such recordings under the terms and conditions the Facility 

may prescribe from time to time.

311. Termination of Participation.

(a) The participation of any Person may be terminated at any time by the Facility pursuant 

to Part 10 of the Rules; or the participation of a Participant may be terminated if the 

Facility shall determine, after reasonable notice and an opportunity to be heard, that 
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such Participant no longer meets any one or more of the eligibility standards set forth in 

Rule 302; provided however, nothing in this section shall limit the Facility’s right to 

summarily suspend any Person having Trading Privileges under Rule 1015(a).

(b) A Participant may terminate voluntarily its status upon written notice to the Facility, 

specifying the effective date of termination, which shall be (A) not less than 30 days 

following the date of giving of such notice or (B) such other date as may be approved 

by the Facility. Notwithstanding the 30 day notification period, a Participant may 

voluntarily suspend its Participant status immediately upon notice to the Facility and 

cessation of trading activities. The Participant shall incur no new liability during the 

period of its voluntary suspension. 

(c) Notwithstanding any termination of its membership, a Participant shall remain subject 

to the jurisdiction of the Facility after the effective date of termination with respect to 

any investigation or proceeding against the Person pursuant to Part 10 of the Rules or 

any claim in arbitration filed against the Person pursuant to Part 11 of the Rules that is 

commenced by the Facility within two years of the effective date of termination.

(d) Any Participant whose participation has been terminated shall immediately notify the 

Facility of any change in its address as most recently reported to the Facility for a 

period of one year following the effective date of termination.

312. Market Maker Program.

The Facility, in order to provide liquidity and orderliness in a market, may adopt a 

program granting one or more Participants, designated as Liquidity Providers, benefits in 

return for assuming and adequately performing obligations. Any such program may 

contain:

(a) The qualifications to become a Liquidity Provider, including without limitation any 

minimum net capital requirements;

(b) The procedure by which a Participant may seek and receive designation as a Liquidity 

Provider;

(c) The obligations of a Liquidity Provider, including without limitation, maximum 

Bid/Offer spread and minimum quote size; and/or

(d) The benefits accruing to a Liquidity Provider, including without limitation, reduced 

transaction fees and or the receipt of compensatory payments from the Facility. 

313. Independent Software Vendor

(a) An independent software vendor (“ISV”) may apply to connect to the Facility, and shall 

be permitted to do so by the Facility, provided that the ISV meets the following criteria 

initially and on a continuing basis: 
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(i) the ISV applies for connection privileges on a form prescribed by the Facility 

and provides such supporting documentation as required by the Facility; 

(ii) the ISV satisfies the definition of Eligible Contract Participant; 

(iii) the ISV shall be duly organized, existing and in good standing under the laws

of its jurisdiction of organization;

(iv) the ISV shall have good commercial standing and business experience;

(v) the ISV shall have adequate financial resources and credit as reasonably 

determined by the Facility;

(vi) the ISV shall, where relevant, be registered, licensed or otherwise permitted 

to do business as an ISV;

(vii) the ISV shall have such operational capabilities (including without limitation 

such hardware, software, communications systems and staffing) as the 

Facility may from time to time determine is appropriate in view of such 

ISV’s anticipated activities;

(viii) the ISV shall meet any other criteria that the Facility may from time to time 

prescribe.

(b) An ISV that is connected to the Facility must pay fees as provided under the conditions 

set forth in Rule 307. Comparable fees shall be set forth for comparable access to, or 

services from, the Facility.

(c) For the avoidance of doubt, any Person directly accessing the Facility through an ISV 

must have been granted Trading Privileges on the Facility under Rule 305 or Rule 306. 

PART 4. OBLIGATIONS OF PARTICIPANTS.

401. Non-U.S. Participants. 

Any non-U.S. Participant that is not registered with the Commission as a Swap Dealer, 

Futures Commission Merchant or Introducing Broker must provide the Facility in the 

form and manner specified the true name, address and occupation of any Customer 

executing Swaps through the non-U.S. Participant; provided, however, this requirement 

shall not apply if the positions of the non-U.S. Participant’s customers are maintained in 

or carried by a Broker on a fully-disclosed basis.

402. Notification. 

Each Participant shall notify the Facility in writing as soon as reasonably practical (but in 

no event later than 21 days) after becoming aware of any of the following events:
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(a) Any refusal of admission to, or involuntary withdrawal of any membership or Clearing 

membership in any SRO;

(b) Any expulsion, suspension or fine in excess of $100,000 (whether through an adverse 

determination, voluntary settlement or otherwise) imposed by any SRO related to 

trading activities on the Facility or to products listed for trading on the Facility;

(c) Any denial or withdrawal of any application for any registration or license by or from 

any Governmental Agency and any revocation, suspension, or conditioning of any 

registration or license granted by any Governmental Agency which is related to trading 

activities on the Facility or to products listed for trading on the Facility to trading 

activities or to products listed for trading on the Facility;

(d) Any fine, in excess of $100,000, significant cease and desist order, denial of trading 

privileges, censure or other significant sanction or discipline (whether through an 

adverse determination, voluntary settlement or otherwise) imposed by any 

Governmental Agency or SRO with respect to activity subject to the rules of any swap 

execution facility;

(e) Any indictment of the Participant or any of its senior officers for any conviction of the 

Participant or any of its senior officers of, any confession of guilt or plea of guilty or 

nolo contendere by the Participant or any of its senior officers to any felony or 

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

Commodity, security, futures contract, option or other financial instrument or involving 

or arising from fraud or moral turpitude; 

(f) Commencement of any judicial or administrative proceeding against the Participant by 

any Governmental Agency related to trading activities on the Facility or to products 

listed for trading on the Facility which could reasonably be expected to result in the 

disqualification of a Participant;

(g) Commencement by or against the Participant of a case in bankruptcy or of any other 

action or proceeding to liquidate, reorganize or restructure the Participant pursuant to 

any applicable provision of law, federal or state, domestic or foreign;

(h) Any damage to or failure or inadequacy of the systems, facilities or equipment of the 

Participant which might materially and adversely affect the ability of the Participant to 

effect transactions on the Facility or subject to the Rules; to comply with the Rules; in 

the case of a Clearing Participant, to clear transactions effected on the Facility or 

subject to the Rules; or to timely perform its regulatory or financial obligations under or 

in connection with transactions effected on the Facility or subject to the Rules;

(i) Any other material change in any information contained in the application for 

admission as a Participant, and
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(j) Any failure to maintain segregated funds as required by the Commission where the 

Participant is a Clearing Participant or a Futures Commission Merchant.

403. Record-keeping and Reporting Requirements. 

Each Participant shall make and file reports relating to the Facility in accordance with 

(and in the manner and form and at such times as may be prescribed by) Commission 

Regulations.

(a) Commission Reporting Requirement for Swaps. The Facility will report each 

Transaction to a swap data repository chosen by the Facility as soon as technologically 

practicable after execution. The Reporting Party for each Swap executed on or subject 

to the Rules shall be established pursuant to CFTC Regulation 45.8. If both 

counterparties to a Swap executed pursuant to the Rules are equal in the hierarchy (for 

example, both are swap dealers), the Reporting Party for such Swap shall be determined 

as follows: 

(i) For Credit Default Swaps, the Floating Rate Payer (the “seller”) and for 

swaptions, the seller of the underlying Swap;

(ii) For Interest Rate Swaps, the Fixed Rate Payer when a single Fixed Rate 

Payer exists, otherwise the party with the first swap identifier when sorted in 

reverse ASCII sort order, using the LEI identifier, DTCC ID, AVOX ID, 

and no identifier, ranked in that order, and for swaptions, the option buyer; 

(iii) For Equity Swaps and for swaptions, the seller;

(iv) For Commodity Swaps the seller and for swaptions, the premium receiver; or

(v) For FX Swaps, the seller of the currency that occurs first in the English 

alphabet; for options, the seller. 

(b) Reporting of Errors. Any errors or omissions in swap transaction and pricing data 

(except for the cancellation of trades and price adjustments made under the provisions 

of and subject to the procedures of Rule 606) that were publicly disseminated in realtime shall be corrected as follows. 

(i) If a party to the Swap becomes aware of an error or omission in the Swap 

transaction and pricing data reported with respect to such swap, such party 

shall promptly notify the other party of the error and/or correction. 

(ii) If a Reporting Party to a swap itself becomes aware of an error or omission in 

the swap transaction or pricing data which the Facility reported to a SDR, or 

such error is reported to it by the other party, the Reporting Party shall 

promptly submit corrected data to the Facility in writing, such writing may 

be electronic, in the form and manner specified by the Facility.
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(iii) The Facility shall promptly submit corrected data to the SDR to which the 

transaction and pricing data was first reported for those errors of which the 

Facility becomes aware or that are reported to it.

(iv) No Participant shall submit or agree to submit a cancellation or correction to 

the Facility for the purpose of re-reporting Swap transaction and pricing data 

in order to gain or extend a delay in public dissemination of accurate swap 

transaction or pricing data or to otherwise evade this reporting requirement.

(c) Commission Record-keeping Requirements. Each Participant, Sponsored Participant 

or Customer shall keep all records relating to the Facility that are required by the 

Commission and Applicable Law to be kept, in such form and manner and for such 

period, as required by Commission Rule and Applicable Law, including but not limited 

to records by a Participant, Sponsored Participant or Customer of its trading, including 

records of its activity in the index or instrument used as a reference price, the 

underlying commodity, and related derivatives markets, and make such records 

available, upon request, to the Facility or, if applicable, its Regulatory Services 

Provider, and the Commission. 

(d) Facility Reporting Requirements. Each Participant shall make and file reports with 

the Facility at the times, in the form, and containing such information relating to the 

Facility as the Facility may prescribe from time to time.

(e) Facility Record-keeping Requirements. (i) Each Participant and as applicable, 

Broker, shall make such records relating to orders received, transactions effected and 

positions carried relating to the Facility, and shall maintain such records in such form 

and manner and for such time, as required by Commission Rule and Applicable Law. 

Such records shall at all times be open to inspection by the Facility upon reasonable 

prior notice and subject to Participant’s reasonable security policies. Such reasonable 

security policies may include a requirement that inspections be conducted by authorized 

personnel acting within the scope of their authority, that inspection be carried out on 

premise, that the inspection be on systems provided by the Participant, and that the 

inspecting personnel keep a record of all documents inspected and provide such record 

to Participant. 

(ii) Audit trail Records. Each Participant and as applicable, Broker, shall make and 

retain all audit trail records. Such records shall include, but are not be limited to, user 

IDs, records of customer order information (whether filled, unfilled or cancelled), 

account identifiers that relate the account to the account owner, time of Order entry, all 

Orders, indications of interest, or request for quotes and customer-type-indicator codes. 

(f) Responding to Information Requests. (i) Each Participant, and as applicable, 

Broker, shall timely furnish the information relating to the Facility as may from time to 

time be requested by any representative of the Facility acting within the scope of the 

jurisdiction of the Facility and in the course of its, his or her duties, including the NFA 
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acting in its capacity as a regulatory services provider, except to the extent prohibited 

by Applicable Law. Any representative of the Facility, and the NFA, when engaged in 

the examination of any subject within the Facility’s jurisdiction, has the power to 

summon and examine any Participant or Broker and any employee, officer, partner, or 

agent thereof in order to carry out the Facility’s functions, except to the extent 

prohibited by Applicable Law. The representative of the Facility may require such 

individual to submit a sworn statement of his or her information.

(ii) The NFA, acting in its capacity as regulatory services provider to the Facility, from 

time-to-time shall review each Participant’s and each Broker’s compliance with the 

applicable recordkeeping and audit trail requirements of the Facility, including, but not 

limited to the requirements of this Rule 403, Rule 407, Rule 510, Rule 512 and Rule 603.

(g) Employee Supervision and Training. Each Participant shall reasonably supervise all 

activities of its employees relating to transactions effected on the Trading System or 

subject to these Rules. Without limiting the generality of the foregoing:

(i) each Participant shall continue to have at all times at least one senior officer 

who is responsible for such supervision and shall promptly advise the 

Facility of any change in the name, title, address, phone number, fax number 

or e-mail address of each such officer;

(ii) each Participant shall be responsible for training its employees regarding the 

requirements of these Rules, the Commodity Exchange Act, and Commission 

Regulations; 

(iii) each Participant shall furnish the Facility with the name, location, birth date 

(or other acceptable identifier) and User ID of each Authorized Trader; 

(iv) each Participant is responsible for ensuring that each of its Authorized 

Traders receives training regarding these Rules and in the operation and 

propose use of the Trading System. 

(v) The Facility reserves the right to refuse or revoke access to the Trading 

System of any Authorized Trader when such action would serve the best 

interests of the Facility, and to the extent practicable under the 

circumstances, will provide notice to the Participant prior to taking such 

action.

(h) Rules Violations by Employees. Any violation of the Rules by any employee of a 

Participant shall constitute a violation of the Rules by such Participant.

(i) Responsibility for Swaps Entered Under Participant ID. Each Participant shall be 

fully responsible for timely performance of all obligations under or in connection with 

any Swap or contract resulting from the entry of any order into the Trading System with 
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such Participant’s Participant ID and any Swap otherwise resulting and reported to the 

Trading System with such ID. 

(j) Order Entry Under Participant ID. Each Participant shall be responsible for 

assigning and reporting of any message input mnemonic indicator that may be required 

by the Facility to be included with orders submitted to the Trading System for the entry 

of any order into the Trading System under such Participant’s Participant ID.

(k) Maintenance of Eligibility for Trading. Each Participant shall at all times continue to 

meet the standards of eligibility set forth in Rule 302 and not be subject to any of the 

grounds for denial of an application for admission as a Participant set forth in Rule 304.

(l) Maintenance of Financial Requirements. Participants shall at all times maintain their 

financial resources at or in excess of the amount reasonably prescribed by the Facility 

from time to time in respect of the Participant’s capacity at the Facility. Any 

Participant registered with the Commission or with the SEC must comply with the 

applicable financial requirements set forth by the Commission or SEC, respectively.

(m) Due Diligence in Handling Customer Orders. Each Participant shall use due 

diligence in receiving and handling orders from their customers, entering such orders 

into the Trading System, responding to inquiries from customers about their orders and 

reporting back to customers the execution of such orders.

(n) Priority of Customer Order Entry. Each Participant shall establish and enforce 

internal rules, procedures and controls to ensure, to the extent possible, that each order 

received from a customer which is executable at or near the market price is entered into 

the Trading System before any order having the same Tenor in the same Swap for:

(i) any Proprietary Account,

(ii) any other account in which any Affiliate of the Participant has an interest, or

(iii) any account for which the Participant, Affiliate, or an employee thereof may 

originate orders without the specific prior consent of the owner of the 

account, if such Participant, Affiliate or employee has gained knowledge of 

the customer’s order prior to the entry of the orders specified in paragraphs 

(i)-(iii) above.

404. Requirements for Persons Submitting Orders.

(a) Each Order submitted to the Trading System shall be submitted under the applicable 

User ID, and shall indicate the Clearing Organization to be used upon trading the order 

as provided under Part 8 of these Rules, along with clearing account numbers for the 

Futures Commission Merchant that has agreed to clear their trades, along with account 

numbers for allocation of accounts as permitted by the Trading System. 
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(b) To qualify to receive one or more User IDs, the Person must be a Participant, 

Authorized Trader, Authorized Customer, or Broker and such Person shall meet all 

Facility mandated eligibility standards of Rule 302 and other requirements under the 

Rules. Each Participant, Authorized Customer or Broker shall be responsible for 

granting and/or authorizing the use of any User ID for Orders that are submitted using 

that Participant’s or Authorized Customer’s User ID and shall be responsible for all 

Orders entered, or other actions taken, through the use of its User IDs. 

(c) Each Participant, Authorized Trader, Authorized Customer, or Broker as applicable, 

shall provide in writing to the Facility, and keep current such information as the Facility 

may require concerning (i) itself, and (ii) in the case of a Participant, each of its 

Authorized Traders and Authorized Customers.

(d) Each Participant or Authorized Customer, as applicable, shall provide in writing to the 

Facility upon request, such information as the Facility may reasonably require 

concerning each of its Supervised Persons, including but not limited to the identity of 

each such Supervised Person.

(e) Any request that the Facility activate or deactivate a User ID shall be submitted in 

writing by a Designated Contact or Contacts of the relevant Person in the manner 

provided for by the Facility; provided that the consent of the Designated Contact of a 

Participant shall be required for the activation of the User ID of any of such 

Participant’s Authorized Traders and Authorized Customers. The Designated Contact 

of any Participant shall have the right to activate or deactivate the User ID of any of 

such Participant’s Authorized Traders or Authorized Customers. The Facility shall 

have no liability for any action or inaction due to its good faith reliance upon a written 

request or for any communication system failure.

(f) The Participant, Authorized Customer or Customer will be responsible for each Order 

that it enters on the Facility for itself or which is entered on its behalf. All Orders that 

have been entered on the Facility are subject to acceptance by other Participants, 

Sponsored Participants or Customers.

405. Cooperation in Investigations.

Each Participant, Clearing Participant, Authorized Trader, Authorized Customer, 

Customer and Broker shall cooperate with any investigation of the Facility, its designee, 

the Commission, the NFA or the SEC.

406. System Security.

Each Participant shall (i) be solely responsible for controlling and monitoring the use of 

all User IDs issued to it, its Authorized Customers and Authorized Traders by the 

Facility, (ii) ensure that each Person accessing the Trading System using such User IDs is 

assigned a unique password and that each password is used only by the Person to whom it 

is assigned, and (iii) shall notify the Facility promptly upon becoming aware of any 
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unauthorized disclosure or use of such User IDs or passwords or access to the Facility or 

of any other reason for deactivating User IDs or passwords. Each Participant shall be 

bound by any actions taken through the use of such User IDs or passwords (other than 

any such actions resulting from the fault or negligence of the Facility), including the 

execution of transactions, whether or not such actions were authorized by such 

Participant or any of its Supervised Persons or executed by anyone other than an 

Authorized Trader or Authorized Customer of such Participant.

407. User IDs and Confidentiality.

(a) No Person may use a User ID to place any Order except as permitted by these Rules; 

nor may any Person knowingly permit or assist the unauthorized use of a User ID. 

Each Participant and Authorized Customer on behalf of itself and each of its Supervised 

Persons and Customers shall ensure that no User ID is used by any Person not 

authorized by these Rules.

(b) Participants and Authorized Customers must identify to the Facility User IDs that are 

assigned to an AOG.

(c) Participants and Authorized Customers, in each case as applicable, that are not 

individuals, must:

(i) restrict access through password protection to any system capable of 

submitting Orders to the Facility to individual users authorized by the 

relevant Participant (including its Authorized Traders, Supervised Persons 

and Customers) or Authorized Customer (including its Supervised Persons); 

(ii) require creation, maintenance and record keeping of accurate and complete 

records regarding each individual that is issued or authorized to use a unique 

User ID; 

(iii) require, in the case of a Participant, such Participant’s Authorized Customers, 

to create, maintain and record keep accurate and complete records regarding 

the individuals that are issued or authorized to use a unique User ID; and

(iv) require that individuals protect and maintain the security of any User ID and 

prohibit the use of such User ID, except as permitted in this section, by any 

other Person, including subsidiaries, affiliates, divisions or business units of 

Participants or Authorized Customers. Participants and Authorized 

Customers may be issued, and may utilize, multiple User IDs solely for the 

purpose of identifying their subsidiaries, affiliates, divisions or business 

units, which make separate trading decisions. Multiple individuals trading in 

the name of a single Participant or the Participant’s customers under the same 

User ID are permitted to trade through the use of that User ID.
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(d) Confidentiality of Trading System. 

(i) Without limiting anything set forth in in these Rules, and in addition thereto, 

any and all non-public information in any form obtained by a Participant, its 

Sponsored Participant s or Brokers arising out of or related to the provision 

or use of the Trading System, including but not limited to trade secrets, 

processes, computer software and other proprietary data, research, 

information or documentation related thereto (“Confidential Information”), 

shall be deemed to be confidential and proprietary information of the 

Facility. Participant, its Sponsored Participant s and Brokers are required to 

hold such Confidential Information in strict confidence and the disclosure of 

such Confidential Information to third parties (other than to its employees, its 

affiliates and their employees, its agents or professional advisors) or the use 

of such Confidential Information for any purpose whatsoever other than as 

contemplated by the Rules shall be a violation of this Rule.

(ii) Confidential Information shall not include information which is: 

(A) in or becomes part of the public domain ; 

(B) known to or obtained by such party previously without an 

obligation of confidentiality; 

(C) independently developed by such party outside of this Agreement; 

(D) required to be disclosed by Applicable Law, or pursuant to a 

subpoena or order of a court or regulatory, self-regulatory or 

legislative body of competent jurisdiction, or in connection with 

any regulatory or self-regulatory request for information, or that 

the Facility otherwise deems advisable, in its discretion, to disclose 

to a governmental, self-regulatory or legislative organization.; or

(E) information submitted by Participant, Sponsored Participant s or 

Brokers that is displayed by the Facility on the Trading System or 

otherwise distributed or sold by the Facility regarding Bids, Offers, 

or executed transactions, provided that such displays and 

distributed or resold information shall not identify Participant by 

name, unless the Facility is explicitly directed to do so by 

Participant and only then for the express purposes set forth in and 

under conditions in compliance with the Rules.

408. Front-End User Interface.

Each Participant shall be solely responsible for ensuring that any front-end interface or 

computer program for automated order entry connecting to the Electronic Trading 

System that is not provided by the Facility, and that is used by the Participant, its 
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Authorized Traders or Authorized Customers, is in compliance, in design and operation, 

with Applicable Law and these Rules.

409. Responsibility for Orders.

Except as otherwise provided by these Rules, each Participant and Authorized Customer 

shall be responsible for (i) all Orders placed by it, and by any of its Supervised Persons 

or customers (in the case of a Participant) and (ii) use of any of the User IDs assigned to 

it and any of its Authorized Traders or Authorized Customers (in the case of a 

Participant). 

410. Compliance by Participants. 

Each Participant, Authorized Trader, Authorized Customer, Customer or Broker shall, by 

making application for a User ID or by placing any Order directly or indirectly, shall 

have agreed to (i) be bound by the Rules of the Facility, (ii) be subject to the jurisdiction 

of the Facility, (iii) comply with all applicable Rules of Facility and (iv) comply with 

Applicable Law.

PART 5. TRADING.

501. Required Transactions.

(a) Execution. Required Transactions, except for Block Trades which shall be traded in 

accordance with Rule 510, shall be matched via the Electronic Order Book in 

accordance with the provisions of Rule 602, through Voice Functionality in accordance 

with Rule 702, or through the Request for Quote System in accordance with the 

provisions of Rule 702a. Each Required Transaction may be executed through any of 

the foregoing functionalities.

(b) Clearing. All Swaps that are Required Transactions shall be settled in accordance with 

the rules of the Clearing Organization.

(c) Mandatory trading. A Participant that is a Swap Dealer or Major Swap Participant 

that enters into or facilitates a Swap transaction on the Facility that is subject to 

mandatory clearing pursuant to Section 2(h) of the Commodity Exchange Act shall be 

responsible for compliance with the mandatory trading requirement under Section 

2(h)(8) of the Commodity Exchange Act. 

(d) Facilitation of Straight-through Processing of Required Transactions. Required 

Transactions are required to be cleared. The following requirements shall facilitate the 

straight-through-processing of such transactions to the applicable Clearing Organization:

(i) No Order for a Required Transaction may be submitted unless a Clearing 

Participant has been identified in advance for each party to the transaction;
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(ii) Each Clearing Participant as required by Commission Regulation 1.73 shall 

establish risk-based limits in the proprietary account and in each customer 

account based on position size, order size, margin requirements, or similar 

factors, and 

(A) When an Order is to be matched via the Electronic Order Book in 

accordance with the provisions of Rule 602 or through the RFQ 

Functionality in accordance with the provisions of Rule 702a(a)(i), 

the Clearing Participant shall, as facilitated by the Facility, screen 

each Order for compliance with the limits established by the 

Clearing Participant through an automated system; or

(B) When an Order is to be matched via Voice Functionality in 

accordance with Rule 702 or through the RFQ Functionality in 

accordance with the provisions of Rule 702a(a)(ii), the Clearing 

Participant shall, as facilitated by the Facility, screen each Order 

for compliance with the limits established by the Clearing 

Participant through an automated system or through a nonautomated system of risk controls reasonably designed to ensure 

compliance with the limits established by the Clearing Participant. 

502. Permitted Transactions.

(a) Execution. 

(i) Permitted Transactions shall be matched via the Electronic Order Book in 

accordance with the provisions of Rule 602, through Voice Functionality in 

accordance with Rule 702, or through the Request for Quote System in 

accordance with the provisions of Rule 702a. Each cleared Permitted 

Transaction may be executed through any of the foregoing functionalities. 

(ii) Permitted Transactions that are not matched by the Facility, having been 

entered into or confirmed and reported to the Facility subject to the 

provisions of Rule 512, shall be recorded as a transaction executed subject to 

the rules of the Facility. Each cleared or uncleared Permitted Transaction 

may be executed under the provisions of Rule 512. 

(b) Credit Approval for Uncleared Transactions.

(i) Permitted Transactions that are not required to be cleared will be subject to 

the credit approval of each counterparty to the transaction before the matched 

transaction is confirmed. Swaps that have not been submitted for clearing 

shall be settled in accordance with the terms agreed to by the parties. 

(ii) Upon notice by Participants that are parties to an executed transaction that 

they wish voluntarily to submit an executed transaction to a clearinghouse 
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that offers clearing of the Swap and to which both are a Clearing Member or 

have established a relationship with a Clearing Member, the Facility, on their 

behalf, will submit the transaction to the Clearing Organization where 

designated either directly or via an STP hub. Prior to such designated 

voluntary submission of such Swaps to a Clearing Organization, the 

transaction will be subject to the risk-based credit limit screening applicable 

to an Order as provided in Rule 501(d). Swaps that have been voluntarily 

submitted for clearing shall be settled in accordance with the rules of the 

Clearing Organization.

503. Trading Hours for Required and Permitted Transactions.

(a) All time references shall be based on local time prevailing in New York, New York, 

unless otherwise expressly set forth in the Rules. 

(b) Trading in Required Transactions and Permitted Transactions shall occur on such days 

and during such hours as the Facility shall determine. The Control Desk will be staffed 

and operate at all times during the Trading Hours of any Required Transaction Swap. 

(c) Trading hours in Required Transactions and Permitted Transactions may vary 

according to the Swaps traded. No Person may make any bid or offer for, or engage in 

any transaction in, any Swap before or after such hour outside of Trading Hours for that 

Swap.

(d) The Facility is operational 24 hours a day, Sunday 17:50 to Friday 18:00, except for 

holidays as notified by the Facility. Trading via the Electronic Trading Order Book 

under Part 6 of these Rules (including electronic Request for Quotes) and trading under 

Rule 512 is available during those times. Trading via Voice Functionality shall be 

available from 6:00 to 18:00 Monday through Friday, 364 days a year. Each Business 

Day begins at 17:50 Sunday to Thursday and ends at 17:50 Monday to Friday. 

504. Information Regarding Orders. 

(a) The Facility will make information regarding Orders (including prices bid or offered), 

trades and any other matters it may deem appropriate available to Participants, 

Authorized Traders, other Supervised Persons and Authorized Customers at such times 

and in such manner (whether through the Trading System, a ticker, financial 

information services or otherwise) as it may consider necessary or advisable from time 

to time. 

(b) Each Participant, Authorized Trader, other Supervised Person or Authorized Customer 

receiving any such information through the Trading System may redistribute such 

information only to such extent and in such manner as may be permitted by the Facility 

from time to time. Employees and agents of the Facility on reasonable notice under the 

circumstances shall have access to the offices of any Participant, Authorized Trader, 

other Supervised Person or Authorized Customer during regular business hours upon 
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reasonable prior notice to such Person and subject to such Person’s reasonable security 

policies in order to observe the compliance by such Person with the immediately 

preceding sentence.

505. Pre-Execution Discussions and Cross Trades. 

(a) No Person shall enter a pre-discussed Required Transaction through the Electronic 

Trading System or through Voice Functionality for illegal or improper purposes 

(including, without limitation, any conduct prohibited by Part 9 of these Rules) or for a 

Required Transaction knowingly assume on its own behalf or on behalf of a Customer 

Account the opposite side of its own Order or its Customer’s Order (a “Cross Trade”), 

except where the Person is entering into both sides of a Customer Order on a nondiscretionary, pre-arranged basis, unless:

(i) Prior written blanket or transaction specific consent has been obtained in 

respect of any relevant Customer Account; 

(ii) the Person waits for at least 15 seconds (or such other time as the Facility 

may publish from time to time for particular contracts based upon liquidity or 

such other product-specific considerations as may be permitted under 

Commission Rule 37.9(b)(2)) after the initial Order is submitted to the 

Trading System or Execution Specialist before submitting the opposite side; 

and

(iii) As applicable, the trade is recognized as a qualifying block trade size in 

accordance with Rule 510. 

(b) Notwithstanding the foregoing, a Participant shall not be in violation of this rule due to 

Cross Trades executed by two Participants trading for the same account, or for separate 

accounts of the same Beneficial Ownership, where neither Participant has knowledge of 

the other’s Order and there is no coordination or prearrangement of the Cross Trade, 

provided that the relevant Participant shall be responsible, upon the request of the 

Facility, to demonstrate to the reasonable satisfaction of the Facility, that neither 

Participant had knowledge of the other’s Order.

(c) For the avoidance of doubt, no delay in entering both sides of a pre-discussed Permitted 

Transaction or of a Cross Trade of a Permitted Transaction through the Electronic 

Trading System or through Voice Functionality is required. No Person shall enter a 

pre-discussed Permitted Transaction or Cross Trade in a Permitted Transaction for 

illegal or improper purposes (including, without limitation, any conduct prohibited by 

Part 9 of these Rules). 
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506. Allocation and Priority of Orders; No Withholding of Orders

(a) Each Participant shall ensure that Orders are allocated to the appropriate accounts. 

Orders subject to allocation may be submitted through the Facility and allocated by a 

Participant in a manner permitted under Applicable Law. 

(b) A Participant shall not withhold, cancel or withdraw from the Trading System any 

Order, or any part of an Order, for the benefit of any other Customer. 

(c) No Participant shall enter an Order into the Trading System or submit an Order to an 

Execution Specialist for its own account, an account in which it has a direct or indirect 

financial interest or a Discretionary Account, including, without limitation, an Order 

allowing discretion as to time and price, when such Participant is in possession of any 

Order for the benefit of a Customer that the Trading System is capable of accepting or 

which is capable of being traded in a Voice Trading Session, as applicable.

(d) Post-trade allocations may be permitted under the rules of the applicable Clearing 

Organization and shall comply with the requirements of Commission Rule 1.35(b)(5). 

The following persons shall qualify as eligible to allocate trades after execution on the 

Facility:

(i) a commodity trading advisor registered with the Commission pursuant to the 

Act or excluded or exempt from registration under the Act or the 

Commission’s rules, except for entities exempt under Commission Rule 

4.14(a)(3);

(ii) an investment adviser registered with the Securities and Exchange 

Commission pursuant to the Investment Advisers Act of 1940 or with a state 

pursuant to applicable state law or excluded or exempt from registration 

under such Act or applicable state law or rule;

(iii) a bank, insurance company, trust company, or savings and loan association 

subject to federal or state regulation; 

(iv) a foreign adviser that exercises discretionary trading authority solely over the 

accounts of non-U.S. persons, as defined in Commission Rule 4.7(a)(1)(iv);

(v) a registered Futures Commission Merchant; or 

(vi) a registered Introducing Broker registered with the Commission pursuant to 

the Act.

507. Prohibited Bids and Offers. 

It shall be prohibited for any Participant or Authorized Customer:
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(a) To enter, report or confirm any Bids, Offers or transactions to the Facility when such 

Participant or Authorized Customer knows or should have known that it is insolvent, 

within the meaning of any applicable bankruptcy or insolvency laws, federal or state, 

domestic or foreign, without the prior written approval of the Facility;

(b) To enter, report or confirm Bids, Offers or transactions to the Facility other than in 

good faith for the purpose of executing transactions, or to make any Bid or offer that is 

not for a true and bona fide price or that is for the purpose of establishing a market 

price which does not reflect the true state of the market, or

(c) Except in the case of a Block Trade conducted under the procedures of Rule 510 or an 

RFQ conducted under the procedures of Rule 702a, to buy a Swap at a higher price on 

the Trading System than the lowest available Offer price on the Trading System or to 

sell a cleared Swap at a price on the Trading System that is lower than the highest 

available Bid price on the Trading System for Swaps cleared at the same Clearing 

Organization, or assist in the execution of such a transaction on behalf of another on the 

Facility.

508. Orders Required to be Cleared.

It shall be prohibited for any Participant or Authorized Customer to place any orders for 

Swaps that are required to be cleared with or execute any transaction in Swaps through 

any Clearing Participant without the prior written consent of the Participant’s Clearing 

Participant.

509. Limitation of Size of Orders.

In order to avoid error, the Electronic Trading System will prevent a Participant, an 

Authorized Customer, and their respective Authorized Traders from trading over a 

specified size, per side, per transaction and per Swap. Such size controls are not 

cumulative and may be exceed through the entry of multiple Orders. No size limitation 

exists for voice transactions, Requests for Quotes under Part 702a of these Rules, or 

Block Trades under Rule 510. 

510. Block Trades.

(a) The Facility may designate any Swap as eligible for privately negotiated transactions, 

or “Block Trades,” under this Rule and has determined the appropriate minimum block 

size for the Swaps in which Block Trades are permitted to be the same level as 

provided in 17 C.F.R. Appendix F to Part 43. 

(b) The price at which a Block Trade is executed shall not affect any Order in the Trading 

System.

(c) Participants, Authorized Traders and Authorized Customers may elect to trade a Swap 

that has been designated by the Facility as eligible for Block Trades as a Block Trade 
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by entering the trade details into the trade entry window or by reporting such 

transaction to an Execution Specialist for trade entry. Block Trades shall comply with 

the following conditions:

(i) each Block Trade transaction must be at least for the minimum transaction 

size as determined by the Facility for that Swap. Orders may not be 

aggregated in order to achieve the minimum transaction size.

(ii) the mutually agreed price at which a Block Trade is executed must be fair 

and reasonable in light of: 

(A) the size of such Block Trade; and

(B) the price and size of other trades in the same Swap at the relevant 

time and other related Swaps, any underlying cash market and/or 

related futures markets, at the relevant time. 

(iii) the price must be reasonable based upon market conditions, prices in other 

tenors or for related Swap contracts or based upon an established model for 

relating the relative prices between Swaps. 

(iv) each party to a Block Trade must qualify as an “eligible contract participant,” 

as that term is defined in Section 1a(18) of the Act.

(v) the aggregation of orders for different accounts in order to satisfy the 

minimum block trade size is prohibited; provided however, that such 

aggregation is permitted for a Block Trade entered into on behalf of 

Customers by a commodity trading advisor registered (or exempt from 

registration) under the Commodity Exchange Act, including any investment 

advisor registered (or exempt from registration) under the Investment 

Advisors Act of 1940, or a foreign person performing a similar role or 

function subject as such to foreign regulation, with total assets under 

management exceeding $25 million.

(d) Each Block Trade must be reported by the seller to the Facility as soon as 

technologically practicable after execution but in no event later than 10 minutes 

following execution of such Block Trade. The Facility will publicize information 

identifying the trade as a Block Trade and identifying the relevant Swap immediately 

after such information has been reported to the Facility or at such time as is deemed 

appropriate by applicable regulations to that Swap. 

(e) Each party to a Block Trade shall record the following details of the transaction: 

(i) the Swap to which such Block Trade relates; 

(ii) the nominal size of the Block Trade; and 
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(iii) the price and time of execution, and the beneficial owners of the transaction.

(f) Upon request by the Facility, such party shall produce satisfactory evidence, including 

the order ticket referred to in the preceding sentence that the Block Trade meets the 

requirements set forth in this Rule.

(g) Notwithstanding anything to the contrary in this Rule 510, until December 15, 2015, or 

such later time as the relief in CFTC Letter No. 14-118 shall be extended, the Facility 

may facilitate the execution of Block Trades within the scope of this Rule 510 that are 

intended to be cleared by enabling the applicable Clearing Participants to complete the 

pre-execution credit check required under Commission Rule 1.73 pursuant to the 

procedures of Rules 501(d) and Rule 502(b)(ii) at the time a Block Trade is identified 

to the Facility. Execution of the Block Trade shall not occur until completion of the 

pre-execution credit check. Block Trades which are rejected on the basis of credit at 

the time that they are identified to the Facility shall be void ab initio. 

511. Public Disclosure of Data.

(a) If a registered SDR accepts data for an asset class, the Facility will report or cause to be 

reported to an SDR, such price and transaction data as required by Commission 

Regulations for all Swap transactions executed on or subject to the Rules of the 

Facility. The Facility reports such information to the following SDRs:

Swap SDR

Credit Default Swap Indices DTCC

Interest Rate Swaps DTCC

Other DTCC

(b) The Facility shall disclose to all Participants on the Facility data regarding price, size 

and side of a Swap transaction executed via the Electronic Order Book, and may 

disclose such information for a transaction executed via Voice Functionality, upon 

transmittal of, or causing transmittal of, such information to the SDR. 

(c) Nothing in this rule 511 shall prohibit the Facility from disclosing:

(i) to all Participants on the Facility Orders, including price and side 

information, prior to a trade being executed; or, 

(ii) to the counterparties to an executed trade, price, size or any other material 

terms of their executed transaction prior to transmittal of the information to 

an SDR and its public disclosure by the Facility.
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512. Off-facility Transactions by Brokers 

The Facility may record a Permitted Transaction arranged as an Off-facility Transaction 

by one or more Broker as being executed subject to the rules of the Facility, if the 

following conditions are met:

(a) The Participants have provided blanket or transaction-specific consent to entering into a 

Permitted Transaction arranged by a Broker(s);

(b) All of the terms of the Permitted Transactions are agreed by the Participants prior to 

the Broker reporting the Permitted Transaction to the Facility; provided however, the 

transaction shall not be considered to be executed until accepted by the Facility;

(c) The Broker reports the terms of the Permitted Transaction in the form and manner 

specified by the Facility as soon as practicable, but in no event more than 15 minutes, 

following agreement of the Participants to the terms of the transaction;

(d) If the transaction is to be cleared, it complies with Part 8 of the rules insofar as 

applicable to the transaction;

(e) If the transaction is to be cleared, each applicable Clearing Participant, in accordance 

with Commission Regulation 1.73, shall establish and apply risk-based limits in respect 

of such Participant and, as facilitated by the Facility, shall screen such Off-facility 

Transaction for compliance with the limits through an automated or non-automated 

system of risk controls reasonably designed to ensure compliance with the limits;

(f) The transaction may not be entered into for illegal or improper purposes (including, 

without limitation, any conduct prohibited by Part 9 of these Rules);

(g) The Broker must keep full, complete and systematic records of the transaction as 

required by Commission Rule 1.35

(h) The Broker(s) arranging the transaction shall be responsible, upon the request of the 

Facility or its Regulatory Services Provider, to demonstrate to the reasonable 

satisfaction of the Facility that the transaction complies with the conditions of the Act, 

Commission Rules and the conditions of this Rule 512, including making available to 

the Facility or the NFA acting in its capacity as a Regulatory Services Provider, upon 

request access to the Broker’s records relating to the transaction.

513. Package Transactions.

A package transaction is a multi-leg transaction priced or quoted as one economic 

transaction, involving at least one Swap. For all package transactions, the Facility’s audit 

trail records shall identify the Swap transaction(s) as being priced under the procedures of 

this Rule. The Swap leg or legs of a package transaction may be executed by the Facility 

subject to the following conditions.
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(a) U.S. Dollar Swap Spread. 

(i) A U.S. Dollar Swap Spread is a transaction in a U.S. Dollar Swap traded as a 

spread price between a U.S. Treasury security transaction and the Swap. 

U.S. Dollar Swaps are available for trading as a spread transaction via:

(A) the Electronic Order Book under Rule 602(a) of the Rules, 

including but not limited to Electronic Order Book Trading 

Session (Rule 602(a)), Volume Clear Trading (Rule 602(b)), 

Volume Match Trading Facility (Rule 602(c), and Assisted Order 

Entry (Rule 607);

(B) Voice Functionality under Part 7, including but not limited to 

Regular Voice Trading Facility (Rule 703(a)), Voice Work-up 

(Rule 703(a)(v), Technology-Assisted Voice Trading Facility 

(703(b)), Volume Match Voice Trading Facility (Rule 703(c)(ii)) 

of the Rules; 

(C) Pre-execution discussed and crossed trades under Rule 505, and

(D) Request for Quotes under Part 7a of the Rules. 

(ii) In a U.S. Dollar Swap Spread, a buyer (seller) enter Bids (Offers) for a U.S. 

Dollar Swap based upon a spread value and transaction size. When entering 

a Bid (Offer) such Orders shall be subject to the pre-trade credit check under 

Rule 501(d). Upon a buyer and seller being matched by the Facility, the 

Facility notifies them of the prevailing cash market price for the indicated 

Treasury security, identifies each to the other (if not already so identified), 

and executes a U.S. Dollar Interest Rate Swap between the Participants at a 

price calculated by the Facility derived from the prevailing cash market price 

for the Treasury security which has been communicated to the parties and the 

matched spread value. The parties to the Swap subsequently enter into a 

separate cash market transaction bilaterally for the Treasury security at the 

prevailing cash market price. 

(iii) For the avoidance of doubt, the Facility takes no part in facilitating cash 

market Treasury security transactions. However, nothing in these Rules 

prohibits parties to the Swap from using the Facility’s affiliated broker-dealer 

to assist in arranging the cash market transaction in Treasury securities 

related to their U.S. Dollar Swap Spread transaction. In this regard, the 

Facility’s affiliated broker-dealer stands ready to enter into a cash market 

Treasury security transaction with each of the original parties to the Dollar 

Swap Spread where the parties do not enter into a transaction for the offer or 

sale of the Treasury security with each other.. 
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(b) MAT/MAT. A MAT/MAT package consists of two (or more) Required Transaction 

legs of the same Swap but of different tenors, traded based upon the spread value of the 

defined relationship of the legs. When entering a Bid (Offer) such Orders shall be 

subject to the pre-trade credit check under Rule 501(d). A MAT/MAT package can be 

traded via any of the functionalities or facilities provided in paragraph (a)(i)(A),(B) and 

(C) of this Rule. Upon being matched based upon the spread value, the Facility 

executes the two legs of the transaction at a price calculated by the Facility derived 

from the prevailing price for the shorter tenor leg. 

(c) MAT/Non-MAT (Cleared). A MAT/Non-MAT (Cleared) package consists of at least 

one Required Transaction and one (or more) cleared Permitted Transaction based upon 

the spread value of the defined relationship of the legs. When entering a Bid (Offer) 

such Orders shall be subject to the pre-trade credit check under Rule 501(d). A 

MAT/Non-MAT (Cleared) package can be traded via any of the functionalities or 

facilities provided in paragraph (a)(i)(A),(B) and (C) of this Rule. Upon being matched 

based upon the spread value, the Facility executes the two legs of the transaction at a 

price calculated by the Facility derived from the prevailing price for the Required 

Transaction leg. 

(d) MAT/Non-MAT (Uncleared). Until February 12, 2016, or such later time as the relief in 

CFTC Letter No. 14-137 may be extended, a package transaction consisting of one or 

more Swaps that include both a Required Transaction and an uncleared Permitted 

Transaction shall be subject to the procedures of Rule 512. 

(e) MAT/Non-Swap Instruments. Until February 12, 2016, or such later time as the relief in 

CFTC Letter No. 14-137 may be extended, the Required Transaction leg or legs of a 

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

non-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 to 

the procedures of paragraph (a). 

(i) The Broker, when reporting the Swap leg of the package to the Facility for 

execution shall also include the trade details of the non-Swap leg or legs of 

the package. 

(f) Non-MAT(uncleared)/Non-MAT(uncleared). A Non-MAT(uncleared)/NonMAT(uncleared) package consists of two or more uncleared Permitted Transactions 

and shall be subject to the procedures of Rule 512. 

(g) Non-MAT(uncleared)/Non-MAT(cleared). A Non-MAT(uncleared)/NonMAT(cleared) package consists of two or more Permitted Transactions and shall be 

subject to the procedures of Rule 512.

(h) For all package transactions, the Facility’s audit trail records shall identify the Swap 

transaction(s) as being priced under the procedures of this Rule 513.
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514. Trade Cancellations and Price Adjustments.

(a) Trade Cancellation, Amendment or Adjustment Authority. The Facility’s trade 

cancellation policy authorizes the Board, through its designee the Chief Compliance 

Officer (or the Chief Compliance Officer’s delegate) (the “Designee”), to amend trade 

prices, cancel (bust) trades or to make such other adjustments when such action is 

necessary to mitigate market disrupting events; to mitigate instances where market 

integrity has been compromised caused by the improper or erroneous use of the 

Facility; or to address manifest unfairness caused by a material error of the Execution 

Specialist in Order handling or other material error by the Facility such as the incorrect 

display of a Bid or Offer, erroneous execution or erroneous reporting of a Swap 

transaction. 

(b) Notwithstanding any other provision of this Rule, the Designee may adjust trade prices,

cancel any trade executed through the Facility, execute a new or off-setting swap on 

behalf of the parties to a disputed transaction on the Facility or another SEF, or require 

the parties to execute a new or off-setting swap transaction on the Facility or another 

SEF, if the Designee determines that allowing the trade to stand as executed may have 

a material, adverse effect on the integrity of the market or is otherwise necessary or 

appropriate to address manifest unfairness caused by a material error of the Execution 

Specialist or other material error by the Facility; provided, however, that any such 

determination by the Designee (if other than the Chief Compliance Officer) will be 

subject to review by the Chief Compliance Officer if the Designee determines such 

review to be necessary or appropriate. Subject to the immediately preceding sentence, 

the decision of the Designee shall be final. 

(c) Any trade price amendment, trade cancellation or other trade adjustment shall be made 

subject to the standards of this Rule 514, such standards being clear, fair, and publicly 

available. Any determination made under this Rule 514 to adjust any trade price, 

cancel any trade or make any other adjustment shall be made subject to the procedures 

of Rule 514(d), (e), (f) and (g) and announced to the market by a message from the 

Control Desk or such other method as the Facility shall provide.

(d) Procedure—Review of Trades Made in Erroneous Use of Facility or Resulting 

from Error of the Facility. The Designee’s decision on whether to cancel or amend a 

trade claimed to be made through erroneous use of the Facility or as a result of an error

by the Execution Specialist or the Facility shall be made under the following procedure:

(i) Review of Trades. The Designee may review a trade based on its analysis 

of market conditions or a request for review by a user of the Facility.

(ii) Request for Review. A request for review must be made within 20 minutes 

from the execution of the trade. The request may be verbal, with a writing 

(which may be electronic) to follow within one hour from the execution of 

the trade. The request must specify the trade details, the time of its 
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occurrence, the desired outcome (amend, cancel or other action) and the 

reason for such a request, including whether due to erroneous trading or a 

material error by the Execution Specialist in Order handling or other material

error by the Facility such as the incorrect display of a Bid or Offer, erroneous 

execution or erroneous reporting of a Swap transaction. 

(iii) The Designee shall promptly determine whether the trade will be subject to 

review, and upon deciding to review a trade, the Designee will promptly 

notify the counterparties and issue an alert to all Participants and Sponsored 

Participants on the Facility indicating that the trade is under review. The 

Designee, in his or her discretion, may also notify the Compliance 

department of the requestor.

In the course of its review of any trade, the Designee may, but is not 

obligated to, inform any of the parties to the trade of the identity and contact 

information of any other party to the trade.

(e) Procedure—Review of Improper Trades. The Designee’s decision on whether to 

cancel or amend a trade claimed to be improper shall be made under the following 

procedure:

(i) Review of Trades. The Designee may review a trade based on its analysis 

of market conditions or a request for review by a user of the Facility.

(ii) Request for Review. For trades claimed to be improper, a request for

review must be made within 20 minutes from the execution of the trade. The 

request may be verbal, with a writing (which may be electronic) to follow 

within one hour from the execution of the trade. The request must specify 

the trade details, the time of its occurrence, the desired outcome (amend or 

cancel) and detail the basis on which the trade should be considered improper 

and the reason supporting the cancellation or amendment of such a trade. 

The written request must be countersigned by the customer desk head or a 

business individual with supervisory authority for the requestor. The Facility 

will make its determination based upon the request for review.

(iii) Upon receiving a written request to cancel or amend an improper trade, the 

Designee, in the Designee’s discretion, may offer the counterparty an 

opportunity to respond to the reasons cited in the written request that the 

trade was improper and to provide an explanation why the trade should not 

be considered to be improper; provided however, the counterparty shall not 

have a right to view the written request if the Designee shall in his or her 

discretion determine that the contents or identity of the requestor should not 

be disclosed.
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(iv) The Designee, upon reviewing the written request for cancellation or 

amendment of an improper trade and any statement of the counterparty to the 

requestor will determine whether the trade on its face violated Applicable 

Law or these Rules and whether the trade affected the integrity of the market, 

including but not limited to whether the trade had a material adverse effect 

on market prices or orderly trading in the market.

(f) Designee’s Determination. 

(i) The Designee shall communicate his or her determination to the parties 

whether to cancel the trade, amend or adjust the trade, to order such other 

actions as within the Facility’s authority or to let the trade stand, and shall 

communicate his determination to the market. 

(ii) Upon a determination by the Designee that a trade shall be cancelled or 

amended the Facility shall implement the decision including as necessary or 

appropriate entering into new or off-setting Swap transactions on behalf of 

the parties or ordering the parties to do so. 

(iii) Issues of liability in cases where reasonable out-of-pocket losses have been 

incurred by Persons whose trades were cancelled or amended will be 

determined by the Designee based upon all relevant facts and circumstances, 

including the conduct of the respective parties. A party whose erroneous, or 

improper Order handling was the cause of the cancelled, amended or adjusted 

trade shall be liable for reasonable out-of-pocket losses of the counterparty to 

the transaction. Parties that know a transaction to be erroneous, improper or 

executed in error have an obligation to mitigate the loss. 

(A) A claim for a loss pursuant to this Rule must be submitted to the 

Facility, on a Facility claim form, within five Business Days of the 

cancelled, amended or adjusted trade giving rise to the claim. The 

Facility shall reject any claim that is not permitted by this Rule and 

such decision shall be final. All claims which are not rejected by 

the Facility shall be forwarded to the party responsible for the 

Order(s) that resulted in the cancelled, amended or adjusted trade 

and that party shall, within ten Business Days of receipt of the 

claim, admit or deny responsibility in whole or in part. 

(B) To the extent that liability is admitted, payment shall be made 

within ten Business Days. To the extent liability is denied, the 

claim shall be resolved by and pursuant to the arbitration rules of 

the NFA or such other self-regulatory organization as the parties 

may agree in accordance with the procedures of Part 11 of the 

Rules. 
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(C) In the event that the error causing the loss was made by, or is the 

responsibility of, the Facility, the Facility in its sole discretion may 

take such steps as it deems necessary and appropriate to 

recompense the party or parties for their out-of-pocket loss.

(g) Trade Price Adjustment and Cancellation Process—Other Erroneous Trades. The 

Designee will first determine whether the trade price is within the “No Review Range.” 

During fast market conditions, upon the release of significant news, or in other 

circumstances in which the Designee determines it is appropriate, and upon 

consultation with the Chief Compliance Officer, may without prior notice, temporarily 

increase the published No Review Range, up to an amount that is double the published 

range. 

(i) Information considered. In applying the No Review Range, the Designee 

shall determine the market price for that Swap immediately before the trade 

under review (the “Market Price”). The Designee may consider any relevant 

information, including the existing market conditions, the volatility of the 

market, the prices of related instruments in other markets, the last trade price 

on the Facility of the same or a related Swap, a better bid or offer price, a 

more recent price in a related Swap or related Swap tenor, and any other 

factors that the Designee deems relevant.

(ii) Trade Price Inside the No Review Range. If the Designee determines that the 

price of the trade was inside the No Review Range, the Designee will 

promptly issue an alert to all Participants, Authorized Traders and 

Authorized Customers on the Electronic Trading System indicating that the 

trade shall stand.

(iii) Trade Price Outside the No Review Range. If the Designee determines that a 

trade price is outside the applicable No Review Range, the trade price shall 

be adjusted to a price agreed upon in a reasonable time by a Person not 

responsible for an Order that results in a trade price adjustment that is within 

the No Review Range or in the absence of such agreement to a price that 

equals the Market Price for that Swap at the time of the questioned trade, 

plus or minus the standard or adjusted No Review Range, provided, however, 

that in the event that such adjusted price would be outside the trading range 

of the day at the time of the questioned trade, then such adjustment shall be 

limited to the trading range as applicable. In the event there are multiple 

parties, prices and/or Swaps involved in the transactions at issue, the 

Designee has the authority, but not the obligation, to bust rather than price 

adjust such transactions. The Designee will promptly issue an alert to all 

Participants, Authorized Traders and Authorized Customers on the Electronic 

Trading System indicating that the prices of the trades outside the No Review 

Range have been adjusted to the No Review Range limit or have been 

cancelled.
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(h) No Review Range. The No Review Range shall be as follows:

Swap Contract No Review Range (where a % is used, it is 

expressed as a % from the mid-market price)

CDS Indices

CDS Single names

For all Credit Default Swap Index outrights, rolls 

and spreads, a price which is of a certain 

percentage of mid-market spread price:

CDX

High Yield = 5%

Investment Grade = 2.50%

iTraxx

X-over = 5%

HiVol = 5% 

EUR Main = 2.5%...for a Swap above 

or below the prevailing mid-market price at the 

time will generally be considered to be a price 

within the no review range

EUR Interest Rate Swap outrights, spreads and 

butterfly strategies

A price 1 basis point in yield above or below the 

prevailing mid-market price

USD Interest Rate Swap outrights, spreads and 

butterfly strategies

A price 1 basis point in yield above or below the 

prevailing mid-market price

GBP Interest Rate Swap outrights A price 1.5 basis points in yield above or below the 

prevailing mid-market price

GBP Interest rate Swap basis swaps A price 1.5 basis points in yield above or below the 

prevailing mid-market price

GBP Interest Rate Swap spreads and butterfly 

strategies

A price 1 basis point in yield above or below the 

prevailing mid-market price

(i) Liability for Losses Resulting from a Price Adjustment or Cancelled Trade.

(i) Price-Adjusted Trades. A Person responsible for an Order that results in a 

trade price adjustment shall generally not be liable for losses, other than the 

price adjustment, incurred by Persons whose trade prices were adjusted.

(ii) Cancelled Trades. Issues of liability in cases where reasonable out-of-pocket 

losses have been incurred by Persons whose trades were cancelled will be 

determined by the Control Desk based upon all relevant facts and 

circumstances, including the conduct of the respective parties.
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(j) Claim Process. A claim for a loss pursuant to this Rule must be submitted to the 

Facility, on a Facility claim form, within five Business Days of the price-adjusted trade 

giving rise to the claim. The Facility shall reject any claim that is not permitted by this 

Rule and such decision shall be final. All claims which are not rejected by the Facility 

shall be forwarded to the party responsible for the Order(s) that resulted in a price 

adjustment. Such party shall, within ten Business Days of receipt of the claim, admit or 

deny responsibility in whole or in part. 

To the extent that liability is admitted, payment shall be made within ten Business Days. 

To the extent liability is denied, the claim shall be resolved by and pursuant to the 

arbitration rules of the NFA or such other self-regulatory organization as the parties may 

agree in accordance with the procedures of Part 11 of the Rules. 

(k) Trade Cancellation or Offset Procedures. Upon a determination by the Designee 

that a trade shall be cancelled or that trade prices shall be adjusted, that decision will be 

implemented The cancelled trade price and any price quotes that have been adjusted 

will be reflected as cancelled in the Facility’s official record of time and sales. 

(l) Adjustment Trades. Positions that result from a trade determined by the Designee to 

be outside the No Review Range that cannot be cancelled shall be adjusted at the 

direction of the Facility, by entry of the Facility into new or off-setting trades as 

appropriate on behalf of the parties to the cancelled or adjusted trade or ordering such 

parties to enter into new or off-setting trades as directed by the Facility. The adjusting 

trades must use the original trade price and quantity. Any party may, but is not 

required to, include a cash adjustment to another party to the trade. Trades determined 

by the Designee to be inside the No Review Range may not be reversed in this manner.

(m) Arbitration of Disputes Regarding Adjustment Trade. If a party does not agree to 

transfer a position pursuant to Rule 514(j), any other party to the trade may file an 

arbitration claim in accordance with the procedures of Part 11 of the Rules against the 

Person representing the other side of the trade. Written notice of such claim must be 

provided to the Facility within five Business Days of the execution of the trade. Failure 

to file the claim within five Business Days shall be deemed a waiver of all claims. The 

arbitration claim will be conducted in accordance with the procedures of Part 11 of the 

Rules.

(n) Voluntary Adjustment of Trade Price. When a trade outside of the No Review 

Range is cancelled in accordance with this Rule, the parties to the trade may agree 

voluntarily to reestablish the trade but to adjust its price and make a cash adjustment 

provided that all of the following conditions are met:

(i) the Designee approves the adjustment.

(ii) the trade adjustment must be within the range of the high and low of the 

previous day’s price range.
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(iii) the quantity of the position being reestablished is the same as the quantity of 

the trade that was cancelled.

(iv) in the case of a trade below the Market Price, the adjusted price must be the 

lowest price that traded at or about the time of the trade without being 

cancelled. In the case of a trade above the Market Price, the adjusted price 

must be the highest price that traded at or about the time of the trade without 

being cancelled.

(v) the parties to the adjusted trade must report it to the Facility using a Transfer 

Trade not later than the close of business on the Business Day after the trade 

occurred.

515. Error Trades

(a) Scope. Until June 15, 2016, or such later time as the relief in CFTC Letter No. 15-24 

shall be extended, this Rule 515 shall apply where an operational or clerical error or 

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 been 

accepted for clearing are not within the scope of this Rule. 

(b) Rejected Error Trades. Upon an affirmative finding by the Facility that a trade has 

been rejected due to an error or an erroneous term other than for reasons of credit, the 

Rejected Error Trade shall be considered to be void ab initio and the Facility may 

execute a new trade with the original terms but for the correction of the erroneous terms 

and submit the new trade to the applicable DCO as quickly as technologically 

practicable, but in no event in more than 1 hour from the notice of rejection from 

clearing. The new trade shall be subject to the procedures of Rule 501(d) or Rule 

502(b), as applicable. Any new trade which is also rejected is considered to be void ab 

initio and may not be submitted again. 

(c) Cleared Error Trades. Upon an affirmative finding by the Facility that a trade is 

being carried on the books of a DCO in error, in order to “reverse and resubmit” the 

trade in error, a trade to offset the Swaps carried in error on the books of the DCO shall 

be executed by the Facility and a new transaction shall be executed by the Facility with 

the original terms of the Cleared Error Trade but for the correction of the erroneous 

terms. Such correcting trades must be executed and submitted for clearing no later than 

three days from the execution of the Cleared Error Trade. The new trade shall be 

subject to the procedures of Rule 501(d) or Rule 502(b), as applicable. 

(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 
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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 to 

the trade and request their assistance in determining the nature and the substance of the 

error. The Facility may not correct such non-obvious errors unless the parties shall 

agree. 

(e) Reporting. The Facility shall report the following to an SDR as soon as 

technologically practicable after the original trade is rejected by the DCO:

(i) Cancellation of the original trade under part 43 of the Commission’s rules;

(ii) A part 45 termination indicating that the original trade is void ab initio; and

(iii) Swap transaction data pursuant to Parts 43 and 45 for the newly executed 

trade(s).

516. Trade Affirmation.

(a) When the Facility under Rule 802(b) or Rule 804(a) submits a trade to a StraightThrough-Processing (STP) hub following execution and prior to forwarding the trade to 

a DCO for clearing, each Participant, Sponsored Participant or Customer, as applicable, 

that is a counterparty to the trade shall affirm, or notify the Facility of an error in, the 

trade details as soon technologically practicable, but in no event later than 10 minutes 

from the time of execution of the trade.

(b) Failure by the Participant, Sponsored Participant or Customer to affirm the trade

details no later than 10 minutes from the time of execution shall constitute a violation 

of this Rule 516 except:

(i) When the Participant, Sponsored Participant or Customer has notified the 

Facility of an error within 10 minutes of execution; or

(ii) When the delay in affirming, or reporting an error in the trade details is 

caused by the Facility, the STP hub, an ISV or any event (such as loss of 

internet connectivity, power, or other force majeure) beyond the reasonable 

control of the Participant, Sponsored Participant or Customer used in the 

post-trade processing of trades.

(c) Notwithstanding anything to the contrary in these Rules, the Facility in its discretion 

may initiate an investigation for violations of this rule by a Participant, Sponsored 

Participant or Customer in accordance with BGC Rulebook Part 10: Disciplinary 

Proceedings. 
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PART 6. TRADING VIA ELECTRONIC ORDER 

BOOK.

601. Scope.

The Facility shall determine the Swaps to be listed or offered for trading through the 

Electronic Order Book under this Chapter 6 and decide upon changes thereto.

602. Trade Execution via Electronic Order Book. 

Transactions executed via the Electronic Order Book may be matched on the Trading 

System through any of Trading Sessions provided under paragraphs (a), (b), (c), or (d) of 

this Rule. 

(a) Electronic Order Book Trading Session. The Electronic Order Book Trading Session is 

a trading session that remains open throughout the Business Day. Except as expressly 

provided for by these Rules, all Orders are matched by the action of one Participant 

hitting (lifting) a displayed Bid (Offer) or by the Electronic Order Book matching 

electronically two passive orders that occur at the same price. The Electronic Order 

Book will display Orders anonymously based upon price/time priority, so that an Order 

at a better price will always have priority over Orders at inferior prices and resting 

Orders at the same price will be displayed on a time priority basis. Transactions in the 

Electronic Order Book Trading Session are based upon executable and indicative 

Orders.

(i) Executable Orders. Orders for Bids and Offers entered during Trading 

Hours shall be displayed by the Electronic Order Book in the priority of 

best price and earliest time entered. A trade is executed when a 

Participant electronically directs the Electronic Order Book to hit a Bid or 

lift an Offer that is not indicative. All Orders for Required Transactions 

are firm, i.e., executable, Orders. 

(ii) Indicative Orders. Non-executable orders are labeled as Indicative Orders. 

Where present, Indicative Orders entered by the Facility do not include 

quantity. Indicative Orders entered by Participants or their Authorized 

Customers include quantity. An Indicative Order can be executed only 

following an expression of interest and the subsequent agreement of the 

Participant or its Authorized Customer to execute the transaction. 

(b) Volume Clear Trading (“Fully Electronic Work-Up”). 

(i) in order to encourage Participants to provide liquidity to the market during 

the Electronic Order Book Trading Session, a Participant that executes a 

transaction and exhausts all of the Bids (Offers) displayed on the Electronic 

Trading System at that time and at a particular price shall be able to use the 
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Electronic Trading System to query the parties whose Bids were hit (or 

Offers lifted) to request to enter into additional transactions at the same price. 

(ii) the Electronic Trading System on behalf of the Participant shall query the 

parties in the order in which their Bids (Offers) were executed. The 

Participant enters a request to the Electronic Trading System for additional 

volume which shall remain open with each such contra-counterparty party for 

the number of seconds specified by the Electronic Trading System, which 

number may vary according by category or class of Swap. Once the time has 

expired for the original executing parties, all market Participants may be then 

matched with contra-requests for additional volume of transactions. Separate 

transactions entered into during the work-up process will not be confirmed or 

reported as a single aggregate transaction.

(c) Volume Match Trading Facility. The Volume Match Trading Facility is an auction 

Trading Session separate and distinct from the Electronic Order Book Trading Session 

and is held periodically during the Business Day. All trades during the Volume Match 

Trading Session matched subsequent to the Opening Period will be executed at a single 

price and in time order of priority. The Facility shall announce a Volume Match 

Trading Session not less than five minutes before it commences. A Volume Match 

Trading Session may be held once or more during the day at set times or as announced 

in response to market demand and these timings may vary by particular Swap contract. 

(i) Opening Period. The Volume Match Trading Session begins by the Facility 

gathering indications of interest from potential market participants with 

respect to volume, Bids or Offers (the “Opening Period”). The Facility will 

announce the length of the Opening Period at its commencement.

(A) During the Opening Period, Participants may enter Executable and 

Indicative Orders into the Electronic Order Book. Executable 

orders in the Electronic Order Book may immediately match in full 

or in part during the opening period. 

(B) The Facility will announce to the market the end of the Opening 

Period at least two minutes prior to its ending. 

(ii) Matching Session. Upon the close of the Opening Period, the Facility will 

announce the price that it determines in its discretion to be the proposed market 

clearing price (the “Volume Match Price”). The Volume Match Price, is 

determined by the Facility acting in its discretion, the functions of which may, but 

are not required to, be carried out by an Execution Specialist acting for the 

Facility.

(A) In determining the Volume Match Price, the Facility shall adhere 

to the following procedures: The Facility begins the process of 
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determining the Volume Match proposed price, as provided in 

paragraph (c)(i)(A) by sending one or more of Voice, electronic or 

any other form of notice to all market Participants active on the 

Facility at that time, including natural persons active on the 

Facility or their automated order entry systems, and issuing a 

system alert announcing the beginning of a Volume Match or 

Volume Match Plus trading session. The notice or notices shall 

indicate the Swap product which will be traded during the session 

and specify the time until the trading session commences. When 

announcing by Voice, the Facility shall ensure that the 

announcement is made to all Participants active on the Facility 

through Voice at that time. 

(B) Determination of the proposed market-clearing price shall include 

any one or a combination of a number of inputs, in the discretion 

of the Facility. The particular inputs to be used are in the 

discretion of the Facility. They include prices of transactions, 

executable or indicative bids or offers or historical prices on the 

Facility or any other registered SEF or designated contract market; 

prices derived from transactions, executable or indicative bids or 

offers or historical prices on the Facility or any other registered 

SEF or designated contract market; and views of active market 

participants.

(1) Prices of the Subject Swap. Prices from the Facility 

or from any registered SEF or designated contract 

market for the Swap that is the subject of the Volume 

Match will include, where available, the last price of a 

transaction, executable or indicative bids and offers or 

historical prices on the Facility or from any other 

registered SEF or designated contract market for the 

Swap. 

(2) Derived Prices. Where such prices and/or executable 

or indicative bids or offers are unavailable for the Swap 

that is the subject of the Volume Match, the Facility 

shall apply analytical analysis to prices, executable or 

indicative bids or offers, or historical price information 

for a similar Swap traded on the Facility or any other 

registered SEF or designated contract market to 

determine the proposed Volume Match Price. 

a.) The Facility may also apply analytics where bids or 

offers are available from the Facility or any other 

registered SEF or designated contract market but 
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because of the width of the bid/offer spread or other 

factors, the mid-market price may be ambiguous 

and the application of such analytics would provide

additional clarity. Such analytical analysis may 

include, for example, but is not limited to, empirical 

cash flow valuations using Libor, Euribor and 

Overnight Interest Rate bootstrapped Discount 

Factor curves and forward forecasting curves, credit 

adjustment and valuation models and options 

modelling using, but not limited to, industry 

standard Black Scholes, adjusted Black Scholes 

(Garman Kohlhagen) and Stochastic Options 

models on specific option structures.

(3) Market Participant Views. The Facility may also 

request the views of active market Participants and 

consider such views in determining the proposed 

Volume Match Price. In requesting the views of active 

market Participants, the Facility: 

a.) must act fairly in determining which active market 

Participants to survey;

b.) must weigh the views of market Participants based 

on market conditions and not on factors unrelated to 

the Participant’s assessment of market conditions, 

and shall not knowingly ask for or receive a market 

view intended solely to favor the market 

Participant’s position; 

c.) shall not attempt to coerce or pressure an active 

market Participant to respond to the request for their 

views or to alter a view once it has been expressed; 

and

d.) shall not divulge any information regarding the 

positions or intentions of any other Participant 

without the consent of such Participant.

e.) In using responses from active market Participants 

as an input in the determination of the proposed 

Volume Match price, the Facility shall use its best 

efforts, acting in good faith, to disregard any prices 

that are outliers from the consensus view expressed.
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f.) All contacts with active market Participants shall be 

made only via BGC communications media and the 

Facility will record all oral information requests and 

responses thereto and retain a record of all oral or 

written information requests and responses thereto 

in accordance with Commission Rule 1.31. 

(iii) Conclusion of Matching Session. With the announcement of the proposed 

Volume Match Price the auction will commence (the “Matching 

Session”). Participants may then submit the notional amount of Swaps 

they want to buy or sell at the Volume Match Price. Participants may 

withdraw any pending, unexecuted Orders during the Matching Session. 

All transactions effected during the Matching Session are executed at the 

Volume Match Price and are matched via a pre-determined nondiscretionary automated trade matching system using time priority. Trades 

are matched in sequence of Order entry (except for “all-or-none” Orders 

which may be matched at a later priority in order to fulfill their size 

requirement) until all Orders are filled or market supply exhausted at the 

Volume Match price. Any unfilled Orders are cancelled, unless expressly 

requested by the Participant to be transferred to the Electronic Order Book 

Trading Session as a new Order.

(d) Volume Match Plus (“VM Plus”) Trading Facility. The VM Plus Trading Facility is an 

auction Trading Session separate and distinct from the Regular Trading Session held 

periodically during the Business Day. A VM Plus Trading Session will be executed in 

price and time order of priority. The Facility shall announce a VM Plus Trading 

Session within a specified period of time before it commences. A VM Plus Trading 

Session may be held once or more during the day at set times or as announced in 

response to market demand and may vary by particular Swap contract. 

(i) Opening Period. The VM Plus Trading Session begins by the Facility 

gathering indications of interest from potential market participants with 

respect to volume, Bids or Offers (the “Opening Period”). The Facility will 

announce the length of the Opening Period at its commencement.

(A) During the Opening Period, Participants may enter Executable and 

Indicative Orders into the Electronic Order Book. Notwithstanding 

the matching procedure in subparagraph (d)(ii), during the 

Opening Period, executable orders in the Electronic Order Book 

may immediately match in full or in part during the opening 

period. 

(B) The Facility will announce to the market the end of the Opening 

Period two minutes prior to its ending. 
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(ii) Matching Session. Upon the close of the Opening Period, the Facility will 

announce the price that it determines in its discretion to be the marketclearing price (the “Volume Match Price”) using the procedure provided in 

subsection (c)(iii) of this Rule 602 and will commence the auction (the 

“Matching Session”). Participants may then submit the notional amount of 

Swaps they want to buy or sell at the Volume Match Price. Participants may 

withdraw any pending, unexecuted Orders during the Matching Session. All 

transactions effected during the Matching Session are executed at the 

Volume Match Price and are matched using time priority. Trades are 

matched in sequence of Order entry (except for “all-or-none” Orders which 

may be matched at a later priority in order to fulfill their size requirement) 

until all Orders are filled or market supply is exhausted at the Volume Match 

price. 

(iii) In the VM Plus trading session, an Authorized Participant may bid higher 

or offer lower than the VM price displayed. Where such higher bid or 

lower offer meets no contra size to trade, the Volume Match price 

originally indicated prevails until a trade is subsequently executed at the 

new, more aggressive price level, which becomes the new Volume Match 

price displayed.

Any unfilled Orders are cancelled, unless expressly requested to be 

transferred to the Electronic Order Book Trading Session as a new Order.

(e) Customer Match Trading Facility. The “Customer Match Trading Facility” is a 

Trading Session separate and distinct from the Electronic Order Book Trading Session 

held periodically during the Business Day during which prices are determined by the 

interaction of multiple Participants entering Bids and Offers into the Trading System’s 

Customer Match Session. The Facility shall announce a Customer Match Trading 

Session no less than five minutes before it commences. Customer Match Trading 

Session auctions will be held at pre-established times during the day and/or in the 

discretion of the Facility in response to market demand, which may vary by Swap 

contract. 

(i) Opening Period. The Customer Match Trading Session begins by 

Participants entering indicative or executable Bids, Offers and Bid/Offer 

quotes into the Trading System’s Customer Match Trading Session. The 

Facility will announce the length of the Opening period at its 

commencement. All Participants are invited to quote.

(ii) Executable Bids and Offers entered into the Customer Match Trading

Session during the Opening Period will not be matched until the end of the 

Opening Period if a matched or crossed orders result. Bids and Offers may be 

withdrawn at any time prior to the end of the Opening Period. 
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(iii) The Trading System counts down with a visual indicator to Participants 

indicating the end of the Opening Period. Upon the close of the Opening 

Period, the Trading System calculates the market price using executable Bids 

and Offers from the multiple Participants, and crosses any Bids and Offers

(e.g. a Bid which has been entered at a price above an Offer and vice versa) 

which were not withdrawn during the Opening Session such that the price 

chosen for the ensuing Matching Session is that at which the maximum 

volume can be traded. Where executable Bids and Offers do not cross (e.g. 

the price levels of all the Bids are below the levels of all the Offers), the midprice is ascertained arithmetically. In the absence of executable orders, 

Indicative Orders may be used as the basis for the market price.

(iv) Matching Session. At the beginning of the Matching Session, the Facility 

will announce the market price (“Customer Match Price”) ascertained at the 

end of the Opening Period. Where Bids and Offers that crossed during the 

Opening Period created a trade execution which generated the mid-price, 

Participants may then submit the notional amount of Swaps they further wish 

to buy or sell at the Customer Match Price. All trades are executed at the 

Customer Match Price and matched using time priority (except for those 

matched during the Opening Period which used price and time priority). 

Orders may be withdrawn until they have been executed. The trades are 

matched in sequence of Order entry until all Orders are filled or market 

supply is exhausted. Any unfilled Orders are not disclosed and are cancelled 

at the end of the session unless expressly requested to be returned to the 

Electronic Order Book Trading Session. 

603. Orders.

(a) In General.

(i) Orders may be entered into the Electronic Trading System only:

(A) in such form and during such times as the Facility shall prescribe; 

(B) by a Participant, its Sponsored Participant s or by a Broker,

(C) or by an Execution Specialist acting in his or her discretion 

pursuant to Rule 702(a)(vii) or at the direction of a Participant or a 

Sponsored Participant .

(ii) Orders may contain such limitations and shall have such effect as determined 

and published by the Facility.

(iii) Each Order entered into the Electronic Trading System must be in the form 

and contain the information the Facility requires, including, but not limited 

to, Order type, size, side, price (if applicable), and the applicable 
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Commission Customer Type Indicator (CTI) Code. Any Order not 

complying with Facility requirements shall not be accepted.

(iv) All Orders entered into the Electronic Trading System shall remain open in 

the Electronic Trading System until executed, withdrawn, cancelled or 

deleted. Such open Orders constitute the Electronic Order Book. Orders 

entered into the Electronic Trading System may be changed by the 

Participant, Authorized Customer, Authorized Trader or Execution 

Specialist entering the Order, but any change in the price or increase in 

quantity shall be treated as a new Order for the purpose of time priority.

(v) Once the Facility receives notice from a Clearing Organization that a 

Clearing Participant has insufficient collateral or credit limit to clear the 

transaction, any Order or quote in the Electronic Trading System’s Electronic 

Order Book for that Clearing Participant or for a Trading Participant 

guaranteed by that Clearing Participant and using that Clearing Organization 

is no longer in compliance with Facility requirements and shall be cancelled 

by the Facility.

(vi) All Orders open at the end of the Business Day are cancelled.

(vii) The Participant or Authorized Customer will be responsible for each Order 

that it enters on the Facility for itself or a Customer or which is entered on 

behalf of itself or a Customer . All Orders that have been entered on the 

Facility are subject to acceptance by other Participants, Sponsored 

Participants or Customers. 

(b) Type of Orders and Order Attributes.

(i) the following orders may be entered by a Participant into the Electronic 

Order Book:

(A) Good until Bettered Orders. (“GTB”). A good-until-bettered order 

is an order to buy or sell a stated amount of a Swap or strategy to 

be executed at the displayed price until bettered by another order 

(whether from the original participant or another) or until the order 

is cancelled by the Participant or System.

(B) Limit Orders. A limit order is an order to buy or sell a stated 

amount of a Swap or strategy to be executed at the price stated in 

the order or better, such that the order will persist and not be 

removed from the System even if bettered and will remain in the 

System until executed or cancelled by the System or by the 

Participant, Authorized Customer, Authorized Trader or Execution 

Specialist.
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(C) Fill and Kill (“FAK”) Orders. A FAK order is a request to buy or 

sell on the System at a specific price that, if matched by a contra 

order, will initiate a trade and may be matched immediately in its 

entirety or partially. If the size of the FAK order exceeds the 

amount initially executed the order will be worked in the System to 

the extent other contra orders become available until that 

transaction is concluded. If there is no contra order at the same 

price when the FAK is entered into the System the FAK order is 

withdrawn. This order type is deployed in both the order book and 

auction events.

(D) Time in Force (“TIF”) Orders. A TIF Order is a Limit Order that 

remains open for a period of time selected by the Participant, 

Sponsored Participant or Execution Specialist (at the request of the 

Participant or Sponsored Participant) when the Order is first 

entered. Unless the time is extended during the period when the 

order is firm, the Order is automatically cancelled at the end of that 

period. Any subsequent Bid or Offer, even at the same price, will 

be treated as a new Order.

(D) the Good until Bettered and Limit Order types may also be used 

with the following order attributes:

(1) One Cancels the Other (“OCO”). An OCO order provides 

the Participant with the ability to enter multiple Bids and/or 

Offers into the System where orders may be linked to each 

other so that if any one order is executed upon, the 

Participant’s remaining orders referenced to that instrument 

within a pre-selected set of instruments will be cancelled. 

Normally these sets are configured to be in groups of Bids 

or groups of Offers in specific product sets. 

(2) All or None (“AON”). An AON order provides Participants 

with the ability to restrict execution to all of the chosen 

order size, or none at all, such that partial execution is 

disallowed. Users of AON as an order type may be 

bypassed in some order matching scenarios where the 

system cannot match with the AON order where the 

available volume is less than the minimum size restriction 

on the order but can match with other participants instead 

who may show orders in smaller amounts or be willing to 

accept partial fills.

(ii) all orders are removed from the Electronic Order Book at the close of the 

Business Day.
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604. Confirmations and Objections.

The confirmation of all terms of the transaction shall take place at the same time as 

execution; provided however, specific customer identifiers need not be included for 

accounts included in bunched orders meeting the requirements of Rule 506(d) and 

Commission Rule 1.35(b)(5).

(a) Confirmation of Cleared Transactions. Upon execution, the Facility shall notify a 

Participant of the matching of Bids and Offers through the Electronic Trading System 

as follows. 

(i) Initial notification: Following trade matching, the Facility will send an initial 

written message, which writing may be electronic, which includes price and 

side information to both sides of a trade. 

(ii) Confirmation: Upon execution of the transaction, the Facility will issue a 

written confirmation, which writing may be electronic, and which shall 

legally supersede any previous agreement, shall serve as a confirmation of 

the transaction, and that the counterparties agree shall confirm execution of 

the transaction, and which shall include all material economic details of the 

executed transaction. 

(b) Confirmations for Uncleared Transactions. The economic terms specific to the 

transaction agreed by the Participants on the Facility with respect to an uncleared 

transaction shall be reflected by the Facility in a written communication (the “Trade 

Communication”) sent to the applicable Participants. The Trade Communication, 

together with the documents and agreements (including, without limitation, ISDA 

master agreements, other master agreements, terms supplements, master confirmation 

agreements, and incorporated industry definitions) governing such transaction existing 

at the time of such commitment to which the participants are party (the “Terms 

Incorporated by Reference”) shall, taken together, comprise all of the terms of such 

transaction and serve as a confirmation of such transaction. Each Trade 

Communication is deemed to incorporate the Terms Incorporated by Reference and in 

the event of any conflict between the Trade Communication and the Terms 

Incorporated by Reference, the Trade Communication shall prevail to the extent of any 

inconsistency. The Facility shall issue a Trade Communication for uncleared 

transactions no later than 60 seconds after execution.

(i) Participants must provide to the Facility a copy of the underlying previouslynegotiated freestanding agreements (Terms Incorporated by Reference) upon 

the Facility’s request.

(ii) The Facility must request from one or more Participant the underlying 

previously-negotiated freestanding agreements upon request from the 
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Commission and the Facility must furnish such documents to the 

Commission as soon as such documents are available.

(c) Objections. Objections to the contents of transaction confirmations must be submitted 

to the Facility, in writing, promptly upon receipt, but no later than the close of that 

Business Day.

605. Trade Invalidation upon Revocation of Clearing Authorization. 

Once the Facility has received notice from a Clearing Organization that a Clearing 

Participant’s authorization has been terminated, any trade destined for that Clearing 

Organization subsequently matched by the Electronic Trading System for that Clearing 

Participant or for a Trading Participant guaranteed by that Clearing Participant shall be 

considered to be invalid and shall be cancelled by the Facility. 

606. Reserved 

607. Assisted Order Entry.

An Execution Specialist acting on behalf of a Participant or an Authorized Customer 

using telephonic or other means of electronic communication may, upon request of the 

Participant or Authorized Customer, assist a Participant or Authorized Customer in the 

entry or withdrawal of Orders into the Electronic Trading System. Any Execution 

Specialist entering an Order into the Electronic Trading System shall have a unique User 

ID paired with the Participant’s ID, (and Authorized Customer ID where applicable) for 

whom the Execution Specialist is acting. 

(a) Upon receipt of a request for assistance in the entry or withdrawal of an immediately 

executable or indicative Order, the Execution Specialist must enter the executable 

Order immediately into the Electronic Trading System.

(b) Any request by a Participant for assistance in the entry of an Order that is not 

immediately executable shall be entered into the Electronic Trading System as soon as 

practicable. The Execution Specialist must make a record of the time at which the 

request for assistance was first made and the time that the Order was entered into the 

Electronic Trading System.

(c) Notwithstanding any other provision of these Rules, in the event that a Participant 

objects under Rule 604(c) to the contents of a the confirmation of a transaction that has 

taken place through the assistance of an Execution Specialist under the provisions of 

this Rule, the Board, through its designee the Chief Executive Officer or the Chief 

Executive Officer’s Designee (the “Designee”), is authorized in his or her discretion to 

adjust trade prices or cancel a trade when such action is necessary to correct a clear 

clerical error on the part of the Execution Specialist in carrying out the instructions of 

the Participant that is assisted by the Execution Specialist. Any trade price adjustment 

or trade cancellation shall be made subject to the standards of this rule. Any 
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determination made under this rule to adjust any trade price or cancel any trade shall be 

announced to the market and such adjustment shall be reported by the Facility to the 

SDR.

PART 7. TRADING VIA VOICE FUNCTIONALITY.

701. Scope.

The Facility shall determine the Swaps to be offered for trading on or subject to the Rules 

of the Facility through Voice Functionality and decide upon changes thereto. 

702. Trade Execution via Voice Functionality.

(a) Voice Trading is a Trading Facility, as defined by section 1a(51) of the Act, that 

enables multiple participants to offer Bids or Offers that are open to multiple 

participants through the use of telephone, electronic messaging or other 

communications devices acceptable to the Facility. Voice Trading is facilitated by an 

Execution Specialist who makes known to Participants the existence of trading interest 

in a Swap, facilitates the communication of Bids or Offers among multiple Participants, 

and assists in orderly trading on the Facility. 

(b) Technology-assisted Voice Trading on the Facility is a Voice Trading functionality 

which enables multiple participants to make available Bids or Offers to multiple 

participants facilitated by an Execution Specialist with the assistance of the automated 

functionalities provided for in this Rule. 

703. Voice Trading Facility.

Transactions executed via Voice Functionality may be matched on the Facility through 

any of the Voice Trading Sessions provided under paragraphs (a), (b), (c) or (d), of this 

Rule.

(a) Regular Voice Trading Facility. The Regular Trading Facility is a Trading Session 

that remains open throughout the Business Day. 

(i) A Participant initiates the purchase or sale of a Swap by communicating an 

indication of interest, indicative Bid or Offer or executable Bid or Offer to 

the Execution Specialist for any Swap listed on, or offered by, the Facility for 

trading using Voice Functionality. Bids and Offers shall be considered to be 

firm at the time first communicated to the Execution Specialist and 

subsequently indicative unless the Participant confirms to the Execution 

Specialist that the Bid or Offer remains firm. An initiating Participant shall 

be anonymous unless the Participant authorizes the Execution Specialist to 

disclose the initiating Participant’s identity. In the discretion of the 

Execution Specialist, where a new Bid or Offer is bid or offered into the 

market and it does not match a resting Offer or Bid, the Participant with the 
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resting Offer or Bid that is closest in price and then oldest in time to the new 

Bid or Offer, generally has priority in hitting the new Bid or lifting the new 

Offer. 

(ii) In the absence of an initiating Participant, the Execution Specialist has 

discretion to initiate trading by communicating with Participants to ascertain 

trading interest. 

(iii) A responding Participant may accept a firm Bid or Offer or counter the Bid 

or Offer or indication of interest of the initiating Participant or of any other 

responding Participant. For the avoidance of doubt, an executed transaction 

may take place between two responding Participants. Responding 

Participants shall be anonymous unless the responding Participant authorizes 

the Execution Specialist to disclose the Participant’s identity. 

(iv) In order for trading to occur during a Regular Voice Trading Session there must 

be no fewer than four Participants participating.

(v) Voice Work-up. In order to encourage the provision of liquidity to the 

Voice Trading Facility, following the execution of an initial transaction

(which shall be indicated to the counterparties as having been executed by 

communication of the Execution Specialist) either of the parties to the 

executed transaction or any other market participant (following transmittal by 

the Facility to an SDR of information relating to the initial, executed 

transaction) may request a work-up trading session. To open a work-up 

trading session, the Execution Specialist announces the work up session and 

price. Counterparties to the initial transaction may have a priority for 

additional amounts at the work-up price. Resting Bids or Offers at the workup price or better must be included in the work up session. During the workup session, execution occurs at the time that a buyer and a seller agree on the 

quantity of their respective transaction (the price being the work-up price), 

such execution being indicated to the counterparties by communication of the 

Execution Specialist. Separate transactions entered into during the work-up 

process will not be confirmed or reported as a single aggregate transaction. 

The work-up shall end when, to the extent possible, all buying and selling 

interest at that price have been filled. Any unfilled Bid or Offer at that price 

at the conclusion of the work-up shall be treated as a resting Bid or Offer 

depending upon the instruction of the market participant.

(vi) Voice Orders for Required Transactions. Notwithstanding anything to 

the contrary in these Rules, each Voice Order for a Required Transaction 

communicated by a Participant or Sponsored Participant (which includes 

their respective Authorized Trader(s)) to an Execution Specialist shall be 

subject to the following conditions:
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(A) The Order shall be considered to be firm from the time the Order is 

first communicated to the Execution Specialist for a period of 60 

seconds (or such longer period as communicated to the Execution 

Specialist). Provided however, the Order shall no longer be 

considered to be firm during the remainder of that period, after:

(1) The Participant’s or Sponsored Participant’s Order is filled;

(2) The Participant or Sponsored Participant communicates to 

the Execution Specialist that the Order is cancelled and 

such communication is received by the Execution 

Specialist prior to the Order having been filled, provided 

however, if the Order has been filled in part, only that part 

of the Order remaining unfilled shall be cancelled;

(3) The Participant or Sponsored Participant is filled in the 

same Swap for the same size but at a difference price as the 

original Order;

(4) A new Order at a better price in the same Swap is entered 

onto the Facility by the same or a different Participant or 

Sponsored Participant; or

(5) A Material Market Event occurs. A Material Market Event 

shall be determined in the sole discretion of the Facility and 

shall include, but not be limited to:

(i) Economic news releases by the U.S. Department of 

Labor Bureau of Labor Statistics;

(ii) Other recurring material economic news releases;

(iii) Announcements of the Board of Governors of the 

U.S. Federal Reserve System;

(iv) A natural or man-made disaster or a Force Majeure.

(vii) Hybrid Trading of Required Transactions. The Execution Specialist, in

his or her discretion, may enter any Voice Order communicated to the 

Execution Specialist into the Electronic Order Book Trading Session under 

Rule 602(a)(i) whenever there shall appear to be sufficient liquidity in the 

Electronic Order Book to fill the Order. Such Order shall be entered into the 

Electronic Order Book as a Time in Force (“TIF”) Order where it shall 

remain a firm Order for a period of 60 seconds. 
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(b) Technology-Assisted Voice Trading Facility (“Whiteboard Trading”). The 

Technology-Assisted Voice Trading Facility is a Trading Session that remains open 

throughout the Business Day. A Participant initiates the purchase or sale of a Swap 

through the Technology-Assisted Voice Trading Facility by requesting that the 

Execution Specialist enter an instrument description on the Whiteboard screen as an 

indication of interest.

(i) Bids and Offers. Depending upon the Swap, which may include Option 

strategies or a Swap structure, the Execution Specialist, or the Participants 

themselves, may enter bids and offers. Bids and Offers entered onto a 

Whiteboard are considered to be indicative because they are subject to 

subsequent trade parameterization and credit checks.

(c) Additional Voice Trading Facilities. If, in the discretion of the Execution Specialist, 

there is sufficient trading interest at any particular time, the Execution Specialist may 

announce the initiation of any one of the Voice Trading Facility Trading Sessions 

provided for in sub-paragraphs (i), (ii), or (iii). Additional Voice Trading Facility 

Trading Sessions are separate from the Regular Voice Trading Facility Trading Session 

and the Technology-Assisted Voice Trading Facility Trading Session provided in 

paragraphs (a) and (b) respectively. Additional Voice Trading Facility Trading 

Sessions may be structured in the manner that, in the judgment of the Execution 

Specialist, will provide for a robust exchange of indications of interest, or Bids and 

Offers by multiple parties. In order for trading to occur in an Additional Voice Trading 

Facility Trading Session, there must be no fewer than four participating Participants. 

Additional Voice Trading Facilities are as follows:

(i) Volume Match Voice Trading Facility. A Volume Match Voice Trading 

Facility Trading Session, if initiated by the Execution Specialist, will operate 

as provided in Rule 602(b).

(ii) Volume Match Plus Voice Trading Facility. A Volume Match Plus Voice 

Trading Facility Trading Session, if initiated by the Execution Specialist, will 

operate as provided in Rule 602(c).

(iii) Customer Match Voice Trading Facility. A Customer Match Voice 

Trading Facility Trading Session, if initiated by the Execution Specialist, will 

operate as provided in Rule 602(e).

(d) Request for Quote Voice Trading Facility. A Request for Quote Voice Trading 

Facility Trading Session may be initiated as described in Rule 702a below.

(e) Order Types. The following Orders may be entered by a Participant verbally to 

an Execution Specialist. Such Orders shall include the information the Facility 

requires, including, but not limited to, Order type, size, side, price (if applicable), 

and the applicable Commission Customer Type Indicator (CTI) Code. Any Order 
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not complying with Facility requirements shall not be accepted by the Execution 

Specialist. Voice Functionality Orders include: 

(i) Good until Bettered Orders. (“GTB”). A good-until-bettered order is an 

order to buy or sell a stated amount of a Swap or strategy to be executed at 

the displayed price until bettered by another order (whether from the original 

participant or another) or until the order is cancelled by the Participant or 

System.

(ii) Limit Orders. A limit order is an order to buy or sell a stated amount of a 

Swap or strategy to be executed at the price stated in the order or better, such 

that the order will persist and not be removed even if bettered and will 

remain until executed or cancelled by the Participant, Authorized Customer, 

Authorized Trader or Execution Specialist.

(iii) Fill and Kill (“FAK”) Orders. A FAK order is a request to buy or sell on the 

System at a specific price that, if matched by a contra order, will initiate a 

trade and may be matched immediately in its entirety or partially. If the size 

of the FAK order exceeds the amount initially executed the order will be 

worked in the System to the extent other contra orders become available until 

that transaction is concluded. If there is no contra order at the same price 

when the FAK is entered into the System the FAK order is withdrawn. This 

order type is deployed in both the order book and auction events.

(iv) Time in Force (“TIF”) Orders. A TIF Order is a Limit Order that remains 

open for a period of time selected by the Participant, Sponsored Participant 

or Execution Specialist (at the request of the Participant or Sponsored 

Participant) when the Order is first entered. Unless the time is extended 

during the period when the order is firm, the Order is automatically cancelled

at the end of that period. Any subsequent Bid or Offer, even at the same 

price, will be treated as a new Order.

(v) the Good until Bettered and Limit Order types may also be used with the 

following Order attributes:

(A) One Cancels the Other (“OCO”). An OCO order provides the 

Participant with the ability to enter multiple Bids and/or Offers into 

the System where orders may be linked to each other so that if any 

one order is executed upon, the Participant’s remaining orders 

referenced to that instrument within a pre-selected set of 

instruments will be cancelled. Normally these sets are configured 

to be in groups of Bids or groups of Offers in specific product sets. 

(B) All or None (“AON”). An AON order provides Participants with 

the ability to restrict execution to all of the chosen order size, or 
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none at all, such that partial execution is disallowed. Users of AON 

as an order type may be bypassed in some order matching 

scenarios where the system cannot match with the AON order 

where the available volume is less than the minimum size 

restriction on the order but can match with other participants 

instead who may show orders in smaller amounts or be willing to 

accept partial fills.

(vi) All Voice Orders shall remain open for such period as provided in Rule 

703(a)(i) and (a)(vi). All Orders cease to be active at the close of the 

Business Day.

704. Confirmation of Voice Transactions and Objections. 

The confirmation of all terms of the transaction shall take place at the same time as 

execution; provided however, specific customer identifiers need not be included for 

accounts included in bunched orders meeting the requirements of Rule 506(d) and 

Commission Rule 1.35(b)(5).

(a) Confirmation of Uncleared Transactions. 

(i) Initial notification: Upon initial indication of a match of any Permitted 

Transaction matched in a Voice Trading Session under Rule 702 or in a 

Request for Quote under Rule 702a, but prior to confirmation of the 

execution of the transaction, the matched transaction will be subject to the 

agreement of the parties as to trade structure parameters and to a manual 

credit check. The Facility will send an initial written message, which writing 

may be electronic, which includes price, side and structure parameter 

information to both sides of a matched trade or of each trade within a series 

of trades.

(ii) Confirmation: Execution of a matched Permitted Transaction only takes 

place after the credit check is satisfactorily completed and the parameters of 

any structure are agreed to by the matched counterparties. At that time, the 

matched trade is executed and the Facility will issue a written confirmation 

of the transaction, which writing may be electronic, and which shall legally 

supersede any previous agreement, shall serve as a confirmation of the 

transaction, and that the counterparties agree shall confirm execution of the 

transaction, and which shall include all material economic details of the 

executed transaction. 

(iii) Form and Content of Confirmation for Uncleared Transactions. The 

form and content of the confirmation for uncleared Voice Transactions shall 

be the same as provided under Rule 604(c), the provisions of which are 
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incorporated by reference herein. The Facility shall issue a confirmation of 

uncleared transactions no later than 60 seconds after execution.

(b) Confirmation of Cleared Transactions.

With respect to Cleared Transactions matched in a Voice Trading Session under 

Rule 702 or in a Request for Quote under Rule 702a, but prior to confirmation of 

the execution of the transaction, the matched transaction will be subject to the 

agreement of the parties as to trade structure parameters and to a manual credit 

check. Upon completion of the transaction, the Execution Specialist will key-in 

trade details and the Facility will issue a written confirmation of the executed 

trade, which writing may be electronic, and which shall legally supersede any 

previous agreement, shall serve as a confirmation of the transaction, and that the 

counterparties agree shall confirm execution of the transaction, and which shall 

include all material details, including all primary economic terms.

(c) Objections.

Objections to the contents of transaction confirmations must be submitted to the 

Facility, in writing, promptly upon receipt, but no later than the close of that 

Business Day. Notwithstanding any other provision of these Rules, in the event 

that a Participant objects under this section to the contents of the confirmation of 

a transaction that has taken place through Voice Functionality under Part 7 of 

these Rules, the Board, through its designee the Chief Executive Officer (or the 

Chief Executive Officer’s delegate) (the “Designee”), is authorized in his or her 

discretion to adjust trade prices or cancel a trade when such action is necessary to 

correct a clear clerical error on the part of the Execution Specialist in facilitating 

trading via Voice Functionality. Any trade price adjustment or trade cancellation 

shall be made subject to the standards of this rule. Any determination made 

under this rule to adjust any trade price or cancel any trade shall be announced to 

the market by a message from the Control Desk or such other method as the 

Facility shall provide and such adjustment shall be reported by the Facility to the 

SDR.

705. Record-keeping and Reporting.

All Voice-assisted trading shall be recorded in an unalterable format and retained as 

required under Commission Rule 1.31. All Bids and Offers entered through the 

Whiteboard functionality will be retained in an unalterable format as required under 

Commission Rule 1.31. The Execution Specialist shall key-in the trade details of the 

transaction immediately upon execution. The Facility shall report publicly such 

transactions as having been executed on or subject to the rules of the Facility, identifying 

such transactions as Voice assisted transactions and, on behalf of the parties to the 

transaction, report the transaction to a Swap Data Repository as soon as technologically 

practicable after execution of the Swap pursuant to Commission Rule 45.3.
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PART 7a TRADING VIA REQUEST FOR QUOTES 

(“RFQ”) FUNCTIONALITY.

701a. Scope.

The Facility shall determine the Swaps to be offered for trading on or subject to the Rules 

of the Facility through RFQ Functionality and decide upon changes thereto. 

702a. Trade Execution via RFQ Functionality.

(a) Participants or Authorized Customers may request that Bids or Offers from 

particular Participants or Authorized Customers be solicited 

(i) for Swaps that are supported by the Electronic Trading System, by 

submitting the request directly into the Electronic Trading System or by 

requesting that an Execution Specialist, acting as agent, enter the RFQ into 

the Electronic Trading System on the Participant’s behalf; or 

(ii) by requesting that the RFQ be conducted via Voice Functionality 

facilitated by an Execution Specialist.

(b) The Facility will calculate a mid-market price where possible, derived from the 

average of all executable Bids and Offers. 

(c) Participants will have equal priority in receiving the RFQ and in transmitting and 

in displaying or communicating their responses. A tradable response to an RFQ 

on a Required Swap requires, during the Commission-determined phase-in 

compliance period, that a minimum of two Participants, and thereafter, a 

minimum of three Participants, not affiliated with or controlled by the requestor 

or each other, receive the request. A minimum number of requests is not required 

for an RFQ on a Permitted Transaction. There is no maximum number of 

Participants that may be requested and an RFQ may be sent to all market 

participants. 

(d) During the RFQ the Electronic Order Book displays all resting executable Bids or 

Offers and the best priced Bid or Offer is copied to the RFQ entry window. The 

best-priced Bid or Offer is anonymous in the same manner as are all resting 

executable Bids or Offers shown in the Electronic Order Book and displayed 

during the RFQ. Bids or Offers are also communicated during an RFQ by Voice 

Functionality, as applicable. The Facility will assist responders by publishing the 

pre-trade mid-market or calculated mid-market price, where available. 

(e) Responding Bids or Offers to the RFQ will display price and quantity and the 

identity of the responding Participants only to the requestor and/or the 

Participant’s Authorized Trader. Bids or Offers responding to an RFQ may be 

either executable or indicative. Responding Bids or Offers conducted via Voice 
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Functionality facilitated by an Execution Specialist may be communicated 

anonymously.

(f) The requestor has the ability to select the Bid or Offer against which to be 

matched from among the responding and the resting Bids or Offers. The 

requesting Participant may also show an Offer or Bid to all responders. Any of 

the responders may lift or hit the requestor’s Order. A requesting Participant may 

also show an Offer or Bid to a further minimum three Participants (which may 

include one or more of the responders to the initial request) subject to the 

provisions of paragraph (c)

(g) Upon execution, the price and quantities of the transactions will be reported by 

the Facility with an identification that the transaction was executed using the RFQ 

procedure. RFQ trades exceeding in quantity the Swap’s Block Trade size shall 

be reported in the time provided under Rule 510(d). Confirmations and objections 

may be made subject to the provisions of Rule 704.

(h) The request for RFQ will remain open until: 

(i) the requestor trades with a responder or with a Bid or Offer from the Order 

book; 

(ii) the request is withdrawn where such withdrawal can be made at any time 

by the requestor or the Execution Specialist; 

(iii) the request expires within the time specified in the RFQ without trading; 

or

(iv) the end of the Trading Day.

(i) Duties of Execution Specialists. 

(i) the Execution Specialist, upon receipt of a request for voice assistance in 

entering an RFQ into the Trading System, must enter the RFQ 

immediately into the Trading System. If a Participant requests delayed 

entry of a voice-assisted RFQ, the Execution Specialist must make a 

record of the time at which the request for assistance was first made with 

respect to the request for delayed entry.

(ii) the Execution Specialist, upon receipt of a request for voice matching of 

an RFQ, must make a record of the time at which the request for voice 

matching was first made and the number of counterparties which were 

requested to respond to the RFQ.
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PART 8. CLEARING AND FINANCIAL INTEGRITY 

OF CONTRACTS

801. Scope.

Rules 802 and 803 shall apply to Required Transactions. Rule 804 shall apply to 

Permitted Transactions. Rules 805, 806 and 807 shall apply to both Required and 

Permitted Transactions. 

802. Relation to Clearing Organization.

(a) Rules of Clearing Organization. The Bylaws and Rules of the designated Clearing 

Organizations shall be applicable to the clearing of Swaps which are Required 

Transactions traded on or subject to the rules of the Facility. 

(b) Cleared Swaps. Every Swap executed on or subject to the rules of the Facility that is a 

Required Transaction will be forwarded by the Facility to the Clearing Organization 

selected by the Participant or its Authorized Customer directly to the Clearing 

Organization or via a Straight-Through-Processing (STP) hub. 

(c) Choice of Clearing Organization. If more than one Clearing Organization is available 

for clearing the Swap, each Participant and Authorized Customer may designate its 

choice of Clearing Organization for selected transactions by designating a specific 

Clearing Organization for each Order or RFQ.

(i) Participants or Authorized Customers may designate the Clearing 

Organization by hitting a Bid or lifting an Offer for the displayed price of a 

product cleared by a specific Clearing Organization. Participants or 

Authorized Customers may enable a general filter on Facility systems to 

view only prices for a selected Clearing Organization(s).

(ii) Trades executed as transactions to be cleared at a specified Clearing 

Organization will be subject to the collateral requirements of that Clearing 

Organization, including the timing of collateral funding requirements of that 

Clearing Organization.

(iii) Subject to the clearing authorization requirement of Rule 803, Participants 

may choose a Clearing Organization to which the Swap will be forwarded by 

the Facility. Such Clearing Organization shall be authorized or permitted by 

the Commission, or otherwise meet Commission requirements, to clear such 

Swaps. Such Clearing Organizations include but are not limited to the 

following: 
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Swap Clearing Organization

Credit Default Swap Indices ICE Clear Credit LLC, Ice Clear Europe Ltd., 

LCH.Clearnet SA

Interest Rate Swaps LCH. Clearnet Ltd., LCH.Clearnet LLC, CME, 

Inc., Japan Securities Clearing Corporation

(d) Margin. A Participant must comply with all margin requirements of the relevant 

Clearing Organization and its Clearing Participant, if applicable, and any applicable 

margin requirement set forth by Commission Regulation or Applicable Law. 

803. Clearing Authorization Required.

(a) Clearing Participant Authorization. 

(i) Every cleared trade executed on the Trading System or subject to the rules of 

the Facility shall be cleared through a Clearing Participant authorized by the 

designated Clearing Organization for the given product. 

(ii) Each Clearing Participant by entering into a relationship to intermediate 

clearing on behalf of a Trading Participant as provided in subsection (b) of 

this Rule 803, shall be subject to, and shall be considered to have consented 

to, the jurisdiction of the Facility, in respect of such transactions, including 

the jurisdiction of the Facility to impose sanctions for violations under Rule 

1016. 

(b) Trading Participant and Authorized Customer Authorization. Each Trading 

Participant must establish and maintain a relationship with a Clearing Participant that 

will intermediate the clearing of the Trading Participant’s Swap transactions and each 

Authorized Customer must establish and maintain a relationship with a Clearing 

Participant that will intermediate the Authorized Customer’s Swap transactions. Each 

must: 

(i) identify to the Facility its Clearing Participant; 

(ii) ensure they do not request quotes, Bid or Offer or generally trade Swaps for a 

designated Clearing Organization without appropriate authorization; and

(iii) notify the Facility of any change in relationship with a Clearing Participant. 

Such notification must be made prior to executing any trade on the Trading 

System or any cleared trade subject to the rules of the Facility. 

(c) Evidence of Agreement with Clearing Participant. Evidence of an agreement 

between the Clearing Participant and its Trading Participant or between the Clearing 
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Participant and an Authorized Customer must be provided to the Facility in the form 

and manner requested by the Facility, and must be specific with respect to the products

covered thereunder.

(d) Termination of Clearing Authorization. A Clearing Participant may terminate at any 

time its authorization of a Trading Participant or of an Authorized Customer by 

informing the Facility and as applicable the Trading Participant and the Authorized 

Customer. Notice shall be given in as promptly a form as possible and shall be 

provided in writing no more than twenty-four hours after being given by any other 

means.

(i) In the event the Clearing Participant notifies the Facility that it will no longer 

novate a Trading Participant’s or Authorized Customer’s Swaps, until the 

Trading Participant or Authorized customer establishes a relationship with 

another Clearing Participant acceptable to the Facility, the Facility will take 

immediate steps to:

(A) withdraw all of the Trading Participant’s or Authorized Customer’s 

resting orders from the Trading System, 

(B) terminate the Trading Participant’s or Authorized Customer’s 

access to the Trading System; and 

(C) terminate the Trading Participant’s or Authorized Customer’s 

access to execute trades subject to the rules of the Facility

804. Financial Integrity for Permitted Transactions.

(a) Voluntary Clearing of Swaps. 

Permitted Transactions executed on or subject to the rules of the Facility that are 

not required to be cleared will only be cleared if both counterparties agree, prior 

to or subsequent to execution, to submit the trade to an agreed upon Clearing 

Organization. If the counterparties elect to clear a transaction prior to execution 

or at the time of execution, it will be forwarded by the Facility to the agreed upon 

Clearing Organization directly or via a Straight-Through-Processing (STP) hub. A 

Participant electing to clear a transaction must comply with all margin 

requirements of the relevant Clearing Organization and its Clearing Participant, if 

applicable, and any applicable margin requirement set forth by Commission 

Regulation or Applicable Law. 

(b) Credit Arrangements Required. 

Each Participant and Authorized Customer in order to enter an Order for an 

uncleared Swap transaction on or subject to the rules of the Facility must, upon 

request, provide evidence to the Facility that:
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(A) it has current Swap transaction documentation, including credit 

arrangement documentation, which would apply to the transaction; 

(B) it has current arrangements for the exchange of collateral; and 

(C) it meets any credit filter requirements adopted by the Facility, 

including updating any bilateral credit matrices where provided by 

the Facility. 

805. Trades Not Accepted for Clearing. 

(a) Clearing Certainty. The Facility shall promote certainty of clearing by identifying to 

the Participant or the Authorized Customer, as applicable, that an Order for a cleared 

contract, if executed, would be within the clearing credit or trading limits which are 

applied by the Clearing Participant to the Person on whose behalf the Order has been 

entered. 

(b) Trades Rejected for Clearing. In the event that a Swap is rejected by the Clearing 

Organization to which it has been submitted, the Facility will so inform the Participants 

or Authorized Customers that are the counterparties to the trade. A trade for which the 

Facility has received a rejection notice from the Clearing Organization is void ab initio; 

provided however, nothing in this Rule shall supersede the procedures of Rule 515 

which shall apply to Error Trades. 

(c) Breakage Agreements Prohibited. Participants are prohibited from requiring 

breakage agreements with other Participants as a condition of trading with them.

806. Disputes related to Clearing. 

Disputes arising from or in connection with the clearance, delivery or settlement of 

positions shall be resolved pursuant to the Bylaws, Rule and procedures of the designated 

Clearing Organization. 

807. Establishment of Daily and Final Settlement Prices.

(a) The Facility shall calculate a daily settlement price for each Swap listed for trading on 

the Facility and priced that day via either firm or indicative orders. Such daily 

settlement prices shall be calculated in the same manner, shall be published to 

www.bgcsef.com and shall be subject to subsequent review and revision by each of the 

Facility’s Clearing Organizations in accordance with each respective Clearing 

Organization’s rules and procedures. 

(b) Calculation. The Facility will calculate daily settlement prices for Swaps receiving 

Bids or Offers through the Business Day only. Swaps listed for specific Clearing 

Organization clearing that do not receive any executable or indicative Bids and Offers 

in the order book on any particular day will not have daily settlement prices calculated. 
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The settlement price will be established using an algorithm which calculates the 

settlement price using the following hierarchy of price inputs: 

(i) the mid-price of the best executable bid/offer spread present at the close 

rounded to the nearest price increment; then

(ii) the mid-price of an indicative Bid/Offer spread present at the close rounded 

to the nearest price increment; if none, then 

(iii) the most recent of the following:

(A) actual Bid;

(B) actual Offer;

(C) indicative Bid;

(D) indicative Offer; and

(E) last trade. 

PART 9. BUSINESS CONDUCT.

901. Violation of Law.

It shall be prohibited for any Participant, Authorized Customer or Customer to violate or 

fail to conform to applicable provisions of the Act, Commission Regulations or any other 

law applicable to trading on the Facility.

902. Rule Violation.

It shall be prohibited for any Participant, Authorized Customer or Customer to violate or 

fail to conform to the Rules and procedures of the Facility or with any decision or order 

of a committee of the Facility or any order of any officer, employee or agent of the 

Facility when acting within his, her or its jurisdiction.

903. No Transfers.

No Participant shall transfer or assign such Participant’s trading privileges. Any 

purported transfer or assignment shall not be binding on the Facility. Persons who 

acquire or succeed to the business of any Participant may obtain trading privileges only 

by application to the Facility pursuant to Part 3 of these Rules, except upon the prior 

written consent of the Facility if the Participant is succeeding to the business of a 

Participant solely as a result of the change in the corporate form of the Participant. 
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904. False Information.

It shall be prohibited for any Person to disseminate any false, misleading or knowingly 

inaccurate information, including reports concerning any Swap or market information or 

conditions that affect or tend to affect the price of any Swap executed on the Facility.

905. Manipulation Prohibited.

No person shall manipulate, or attempt to manipulate, the price of, or to corner, any Swap 

executed on the Facility, or in connection therewith the Underlying Commodity.

906. Prohibition on Misstatements.

No Person shall furnish false or misleading information or fail to furnish information in 

respect of such Person’s activities on or subject to the Rules of the Facility, when 

requested by the Facility or any committee, officer, employee, or agent of the Facility, 

acting in the course of his, her or its duties.

907. Employees of the Facility.

It shall be prohibited to knowingly carry an account, enter an order or effect any 

transaction for any employee of the Facility, the Clearing Organization or any other 

Participant without the prior written consent of the employer (which may be in the form 

of a blanket consent to all orders and transactions entered or executed after such consent 

is given).

908. Abusive Trading Practices Prohibited.

No Participant, Authorized Customer or Customer shall engage in front-running, wash 

trading, pre-arranged trading, fraudulent trading, money passes, accommodation trading, 

any other manipulative activity prohibited by the Act or Commission regulation or 

disruptive trading practice (which includes any trading practice described in Section 

4c(a)(5) of the Act or in applicable interpretive guidance issued by the Commission and 

in force at the time of the violation), or enter into non-competitive transactions on or 

subject to the Rules of the Facility except as otherwise authorized by these Rules, or 

execute any such Order on behalf of another with such knowledge of its nature.

909. Detrimental Conduct.

No Person shall engage in conduct or practices inconsistent with just and equitable 

principles of trade or conduct or practices detrimental to the best interests of the Facility.
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910. Fraud Prohibited.

No Person shall use or employ, or attempt to use or employ, any manipulative device, 

scheme, or artifice to defraud, or engage, or attempt to engage, in any act, practice, or 

course of business, which operates or would operate as a fraud or deceit upon any person. 

PART 10. DISCIPLINARY PROCEEDINGS.

1001. Scope.

The procedures of this Part 10 shall apply to any Person that is subject to, and that is 

bound by, the Rules of the Facility. 

1002. Investigations.

(a) Investigation. The Enforcement Staff of the Compliance Department and its designees 

is responsible for investigating possible violations of the Rules upon request from 

Commission staff or the discovery or receipt of information which, in their judgment, 

indicates a possible basis for finding that a violation has occurred or will occur. 

Investigations shall be conducted by the Enforcement staff in accordance with these 

Rules. The Facility may contract for the performance of specified functions assigned 

by these Rules to the Enforcement Staff of the Compliance Department. The Facility 

retains ultimate responsibility of the investigations.

(b) Investigation Report. After conducting an investigation, the Enforcement Staff of the 

Compliance Department shall prepare a written report including the reason the 

investigation was initiated, a summary of the complaint, if any, the relevant facts, the 

Enforcement Staff’s conclusions, analysis and recommendation as to whether 

disciplinary action should be pursued. This written report shall be produced within 

twelve months following the initiation of the investigation. If the Enforcement Staff 

has determined that a reasonable basis exists for finding a violation, it shall make a 

recommendation as to whether the Disciplinary Committee should proceed with the 

matter. The Enforcement Staff may also issue a warning letter to the Person being 

investigated or forward to the Review Panel of the Disciplinary Committee a 

recommendation that it issue a warning letter. A warning letter issued to the Person 

under investigation under this paragraph is not a penalty or an indication that a finding 

of a violation has been made. 

The investigation report shall become part of the investigation file, which shall be 

maintained by the Compliance Department for a period of not less than five years after 

the completion of such report. The Enforcement Staff shall promptly provide the 

Disciplinary Committee with a copy of each investigation report.
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1003. Review of Investigation Report.

The Review Panel shall promptly review each investigation report prepared by the 

Enforcement Staff. In the event the Review Panel decides that additional investigation or 

evidence is needed, it shall promptly direct the Enforcement Staff to conduct further 

investigation. Within a reasonable period of time not to exceed thirty days after the 

receipt of a completed investigation report, the Review Panel shall take one of the 

following actions:

(a) If the Review Panel determines that no reasonable basis exists for finding a violation or 

that prosecution is otherwise unwarranted, it may direct that no further action be taken. 

Such determination must be in writing and contain a brief statement setting forth the 

reasons therefore.

(b) If the Review Panel determines that a reasonable basis exists for finding a violation 

which should be adjudicated, it shall direct that any Person alleged to have committed 

the violation be served by Enforcement Staff with a notice of charges, thus 

commencing disciplinary proceedings pursuant to these Rules.

(c) The Review Panel may also determine to issue a warning letter to the Person being 

investigated. A warning letter issued to Person under investigation under this 

paragraph is not a penalty or an indication that a finding of a violation has been made.

1004. Respondent.

A Person alleged in a notice of charges to have committed a violation shall be referred to 

as the Respondent. 

1005. Notice of Charges.

A written notice of charges shall be served by Enforcement Staff on any Respondent as 

directed by the Hearing Panel. The notice of charges shall:

(a) State the acts, practices or conduct in which the Respondent is alleged to have engaged;

(b) State the provision of the Rules alleged to have been, or are about to be, violated;

(c) State the predetermined penalty, if any;

(d) State that the Respondent is entitled to a hearing on the charges upon written request 

served upon the Compliance Department within 30 days of service of the notice of 

charges and filed with the Hearing Panel of the Disciplinary Committee and that failure 

so to request a hearing within 30 days, except for good cause shown, shall be deemed a 

waiver of the right to a hearing; and
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(e) State that the Respondent is entitled to serve an answer upon the Compliance 

Department within 30 days of service of the notice of charges and to file such answer 

with the Hearing Panel and that failure in an answer to deny expressly any allegation or 

any charge in the notice of charges shall be deemed to be an admission of such 

allegation or charge.

1006. Service.

Service of a notice of charges or any other document in a disciplinary proceeding on a 

Respondent shall be made by personal delivery to the Respondent or the Respondent’s 

agent appointed under Rule 303(e) or by first class mail addressed to the Respondent at 

the last address filed by the Respondent with, or otherwise known to, the Facility. 

However, if the Respondent is represented by counsel in the disciplinary proceeding, 

service shall be by personal delivery to counsel or by first class mail addressed to counsel 

at the last address filed by counsel with the Facility. Service of any document on the 

Compliance Department shall be made by personal delivery to the Compliance 

Department or by first class mail addressed to the Compliance Department, in either case 

at the address specified in the notice of charges. Filing with the Disciplinary Committee 

may be made by personal delivery to the Disciplinary Committee or by first class mail 

addressed to the Disciplinary Committee at the address specified in the notice of charges. 

Service by mail shall be complete when deposited in an official depository of the United 

States Postal Service. If service is made by mail, any time period in these Rules 

calculated with respect to the date of service shall be extended by a period of five days. 

Service may be effected through electronic mail or facsimile upon the agreement of all 

parties.

1007. Answer from Respondent.

(a) A Respondent receiving a notice of charges may serve a written answer to the notice of 

charges upon the Compliance Department and file the answer with the Hearing Panel, 

provided that:

(i) the answer must be in writing and include a statement that the Respondent 

admits, denies or is without knowledge or information sufficient to form a 

belief as to the truth of each allegation.

(ii) failure to serve an answer within 30 days following the service of the notice 

of charges shall be deemed an admission of all allegations contained in the 

notice of charges.

(iii) failure in an answer to expressly deny any charge or allegation shall be 

deemed to be an admission of the charge or allegation; provided, however, 

that a statement of a lack of sufficient knowledge or information to form a 

belief as to the truth of an allegation shall have the effect of a denial of the 

allegation.
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(b) If the Respondent admits or fails to deny any of the charges in a notice of charges, the 

Hearing Panel may find that the violation of the Rules alleged in the charge has been 

committed and may impose a penalty no greater than the predetermined penalty, if any, 

stated in the notice of charges for such violation or violations. If no predetermined 

penalty was so stated, the Hearing Panel shall impose a penalty for each violation found 

to have been committed.

(c) If the Hearing Panel imposes a penalty pursuant to paragraph (b) of this Rule, the 

Respondent and the Compliance Department shall be promptly served with a written 

notice of any penalty to be imposed and shall advise the Respondent that he or she may 

request a hearing on the penalty, provided that a written request for a hearing must be 

served upon the Compliance Department within 30 days following service of the notice 

and filed with the Hearing Panel. However, no hearing shall be permitted on a penalty 

that is less than or equal to the predetermined penalty, except for good cause shown. If 

the Respondent fails to request a hearing within 30 days following service of the notice, 

the Respondent shall be deemed to have accepted the penalty, and the decision of the 

Hearing Panel shall be the final action of the Facility.

1008. Right to Representation.

A Respondent shall be entitled to be represented by legal counsel or any other 

representative of the Respondent’s choosing in any proceedings under this part of the 

Rule; provided, however, that this Rule does not constitute the basis for any claim that 

the Facility must furnish an attorney to a Respondent.

1009. Hearings.

(a) If the Respondent has, in a timely manner, requested a hearing on a charge which is 

denied in the Respondent’s answer or on a penalty imposed by the Hearing Panel 

pursuant to Rule 204 and this Part 10 (other than a predetermined penalty stated in the 

notice of charges), the Respondent shall have an opportunity for a hearing on the 

matter. Such hearing shall be promptly convened after fair notice to the Respondent.

(b) Any hearing shall be conducted before a Hearing Panel of three members of the 

Disciplinary Committee.

(c) The Respondent shall be entitled in advance of the hearing to examine all books, 

documents, or other tangible evidence in the possession or under the control of the 

Facility which are to be relied upon by the Enforcement Staff of the Compliance 

Department in presenting the charges contained in the notice of charges or which are 

relevant to those charges or the penalties.

(d) The formal rules of evidence need not apply; nevertheless, the procedures for the 

hearing may not be so informal as to deny a fair hearing.
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(e) The Compliance Department shall be a party to the hearing and shall present its case on 

those charges and penalties which are the subject of the hearing.

(f) The Respondent shall be entitled to appear personally at the hearing.

(g) The Respondent shall be entitled to cross-examine any persons appearing as witnesses 

at the hearing.

(h) The Respondent shall be entitled to call witnesses and to present such evidence as may 

be relevant to the charges or the penalties and the Compliance Department shall be 

entitled to cross-examine any witness called by the Participant. 

(i) The Facility shall require Persons within its jurisdiction called as witnesses to appear at 

the hearing and to produce evidence. It shall make reasonable efforts to secure the 

presence of all other Persons called as witnesses whose testimony would be relevant.

(j) A substantially verbatim record of the hearing shall be made and shall become a part of 

the record of the proceeding. The record must be one that is capable of being 

accurately transcribed; however, it need not be transcribed unless the transcript is 

requested by Commission staff or the Respondent. The record shall be transcribed 

pursuant to Commission Rule 9.21(a) if the decision is appealed to or reviewed by the 

Commission. In all other instances, a summary record of the hearing is permitted.

(k) The cost of transcribing the record of the hearing shall be borne by the Respondent if 

the Respondent requests the transcript or appeals the decision to the Commission. In all 

other instances, the cost of transcribing the record shall be borne by the Facility.

(l) A penalty pursuant to Part 10 may be summarily imposed by the hearing panel of the 

Disciplinary Committee upon any person within its jurisdiction whose actions impede 

the progress of a hearing.

1010. Decision.

(a) Promptly following the hearing, the Hearing Panel of the Disciplinary Committee shall 

render a written decision based upon the weight of the evidence contained in the record 

of the proceeding and shall serve a copy of its decision within 30 days upon the 

Compliance Department and the Respondent. The decision, shall be the final action of 

the Facility and shall not be subject to appeal within the Facility. The decision shall 

become effective at the time set forth therein the decision, which shall be not less than 

fifteen days after the written decision has been delivered to the Person disciplined or 

denied access. Where delivery is by U.S. mail, an additional three day period shall be 

provided prior to the decision becoming effective. Provided, however, that a decision 

may become effective in fewer than fifteen days if, as determined by the Facility and 

stated in the decision, such an action is necessary to protect the best interests of the 

Facility, the violation relates to timely submission of accurate records required for 
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clearing, or the disciplined Person consents to the penalty and the timing of its 

effectiveness. The decision shall include:

(i) the notice of charges or a summary of the charges;

(ii) the answer, if any, or a summary of the answer;

(iii) a brief summary of the evidence produced at the hearing or, where 

appropriate, incorporation by reference of the investigation report;

(iv) a statement of findings and conclusions with respect to each charge, a 

complete explanation of the evidentiary and other basis for such findings and 

conclusions with respect to each charge and basis for imposing sanctions, and 

an indication of each specific Rule which the Respondent is found to have 

violated; and

(v) a declaration of any penalty imposed and the effective date of such penalty.

(b) When a Decision under Rules 1010, 1015 or 1016 has become final, the Facility shall, 

within thirty days, provide a copy of such Decision by electronically providing such 

information to the National Futures Association for entry into its Background 

Affiliation Status Information Center system. 

1011. Penalties.

(a) The Hearing Panel of the Disciplinary Committee may impose any one or more of the 

following penalties for violation of the Rules against any Person that is subject to the 

jurisdiction of the Facility, including but not limited to, any Participant, Clearing 

Participant or Customer:

(i) a censure or reprimand; 

(ii) suspension of trading privileges;

(iii) termination as a Participant or its acceptability as a Clearing Participant;

(iv) a fine of up to $100,000 per violation; or 

(v) such other penalty as the hearing panel in its discretion shall deem 

appropriate.

(b) In the case of any penalty imposed on a Respondent denying access in whole or in part 

to the Facility’s market, the Hearing Panel shall issue an order to all Participants 

prohibiting them from granting such access, directly or indirectly, and any knowing 

violation of such an order shall constitute a violation of the Rules.
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(c) Any penalty imposed under Rule 1011, 1012, 1013, 1014, 1015 or 1016 shall be 

commensurate with the violation committed, shall take into account the respondent’s 

disciplinary history and where applicable, shall include full customer restitution, except 

where the amount of restitution or to whom it should be provided cannot be reasonably 

determined.

(d) Each Participant will be responsible for paying any fine or other amount imposed on 

but not paid by any of its Supervised Persons, or Customers.

1012. Predetermined Penalties.

The Facility may adopt specific maximum penalties for particular types of violations 

(“Predetermined Penalties”). If it does so, the Disciplinary Committee or a Hearing 

Panel of the Disciplinary Committee shall have discretion in each case whether to employ 

the predetermined penalty. If the predetermined penalty is employed, it shall be stated in 

the notice of charges. In such a case, after a hearing on a denied charge where a 

Respondent is found to have committed the violation charged, the hearing panel of the 

Disciplinary Committee shall impose the predetermined penalty or an appropriate lesser 

penalty.

1013. Settlement.

(a) At any time after the issuance of a notice of charges and prior to the issuance of a 

decision pursuant to Rule 1010, a Respondent may serve upon the Compliance 

Department and file with the Disciplinary Committee a written proposal to settle the 

matter in question. The Disciplinary Committee may accept or reject the settlement 

proposal, but may not alter its terms unless the Respondent agrees. The Disciplinary 

Committee, in its discretion, may permit the Respondent to accept a penalty without 

either admitting or denying the violations upon which the penalty is based.

(b) If the Disciplinary Committee accepts a settlement proposal, it shall issue a written 

decision specifying the violations it has reason to believe were committed and any 

penalty to be imposed. If the settlement proposal specifies that the Respondent is 

agreeing to accept a penalty without either admitting or denying any violations, the 

decision shall so state.

(c) If the Disciplinary Committee does not accept a settlement proposal or if the 

Respondent withdraws the proposal after its submission but before its final acceptance 

by the Disciplinary Committee, the proceedings shall continue against the Respondent, 

but the Respondent shall not be deemed to have made any admissions by reason of the 

settlement proposal and shall not be otherwise prejudiced by having submitted the 

settlement proposal.
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1014. Minor Penalties.

(a) The Compliance Department may summarily impose a fine against any Participant, 

Authorized Customer or Customer, as applicable:

(i) for failing to make timely payments of dues, fees, fines, assessments or other 

charges;

(ii) for failing to make timely and accurate submissions to the Facility of notices, 

reports, or other information required under any provision of the Rules; or

(iii) for failing to keep any records required under any provision of the Rules.

(b) The amounts of the fines for any category of violations which may be imposed pursuant 

to this Rule shall be set by the Facility from time to time, provided that the minimum 

fine shall not be less than $1,000 and the maximum fine for any one violation shall not 

exceed $10,000. Nothing contained in this Rule shall preclude any other action against 

a Participant pursuant to the Rules. The imposition of a fine against a Participant 

pursuant to this Rule shall be the final action of the Facility if the Participant does not 

request review as provided in paragraph (c) of this Rule.

(c) The Compliance Department shall serve a Participant with written notice of a fine 

imposed pursuant to paragraph (a) of this Rule. Such notice shall specify the date of 

the occurrence for which the fine is being imposed, the provision or provisions of the 

Rules giving rise to the fine and the amount of the fine. Within 10 days of the service 

of such notice, the Participant shall either pay the fine or serve the Facility with a 

written request specifying the basis for review of the fine by a hearing panel of the 

Disciplinary Committee.

1015. Participant Responsibility Actions.

(a) The Facility may summarily suspend any Participant or Person exercising Trading 

Privileges or take other summary action against such a Person if the Facility reasonably 

believes that such immediate action is necessary to protect the best interests of the 

marketplace.

(b) Any action taken against any Participant or Person exercising Trading Privileges 

pursuant to this Rule shall be taken after notice and an opportunity to be heard, unless 

the Facility determines that giving such notice or opportunity to be heard before taking 

such action is not practicable under the circumstances. The notice shall state the action, 

the reasons for the action, and the effective time and date and the duration of the action. 

In any case in which action is taken without prior notice and opportunity to be heard, 

the Facility shall give the Participant notice and an opportunity to be heard promptly 

thereafter.
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(c) Any hearing held pursuant to this Rule shall be held before a Hearing Panel of the 

Disciplinary Committee and shall be conducted in compliance with Part 10.

(d) Promptly following the hearing held pursuant to this Rule, the Hearing Panel of the 

Disciplinary Committee shall render a written decision based upon the weight of the 

evidence contained in the record of the proceeding and shall serve a copy of such 

decision on the Participant and the Compliance Department. The decision shall be the 

final action of the Facility and shall not be subject to appeal within the Facility. The 

decision shall include:

(i) a description of any summary action taken or proposed to be taken;

(ii) the reasons for the summary action;

(iii) a brief summary of the evidence produced at the hearing;

(iv) findings and conclusions;

(v) a determination that the summary action should be affirmed, modified, 

reversed, or imposed; and

(vi) a declaration of any summary action to be taken pursuant to the 

determination specified in subparagraph (v) and the effective date and 

duration of the action.

1016. Action Against Non-Participants.

(a) If the Enforcement Staff has reason to believe that any non-Participant is conducting his 

trading activities in violation of the Commodity Exchange Act, Commission Rules or 

these Rules, it may require the non-Participant and any Participant that handles or 

clears the non-Participant’s trades to appear, produce documents and testify at a 

Compliance Department interview or investigation, or at a hearing before the 

Disciplinary Committee.

(b) If, after hearing, the Disciplinary Committee determines that the actions of the nonParticipant violate the Commodity Exchange Act, the Commission Rules or these 

Rules, the Disciplinary Committee may: 1) issue a censure or reprimand; 2) order any 

Clearing Participant to liquidate all or any portion of such non-Participant’s position; 3) 

order that no Participant accept new positions on behalf of any such non-Participant; 4) 

deny or terminate access of such non-Participant to the Trading System and the 

Facility; 5) impose any Penalty authorized under Rule 1011, or 6) order such other 

action as is necessary to prevent a threat to the Swap or further violations of the 

Commodity Exchange Act or these Rules.

(c) In the case of a penalty imposed on a Respondent that is not a Participant denying 

access to the Facility, the Hearing Panel shall issue an order to all Participants 
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prohibiting them from granting such access, directly or indirectly, and any knowing 

violation of such an order shall constitute a violation of the Rules.

1017. Conflicts of Interest or Bias.

(a) No member of any committee of the Facility shall knowingly participate in the 

committee’s deliberations and voting on any matter involving a named party-in-interest 

where the member is precluded from doing so pursuant to Part 2.

(b) Prior to the consideration of any matter involving a named party-in-interest, each 

member of a committee of the Facility must disclose to the Chief Compliance Officer 

of the Facility (or to his or her designee) whether he or she has any one of the 

relationships listed in Rules 207 and 209 with the named party-in-interest.

(c) Any Respondent which is a named party-in-interest in any proceeding under this Part of 

the Rules may serve a written request on the Chief Compliance Officer of the Facility 

for disqualification of any member of any committee of the Facility on the grounds that 

such member has one of the relationships listed in Rules 207 or 209 or that any other 

cause exists which might cause the member to have a bias against such Respondent.

(d) The Chief Compliance Officer (or his or her designee) shall determine whether or not 

any member of a committee of the Facility will be disqualified from deliberating, 

voting or otherwise participating in any matter based upon:

(i) information provided by such Participant pursuant to paragraph (b) of this 

Rule;

(ii) information provided by a Respondent which is a named party-in-interest 

pursuant to paragraph (c) of this Rule; and

(iii) any other source of information that is reasonably available to the Facility.

(e) The Chief Compliance Officer (or his or her designee) shall promptly serve written 

notice of his or her determination on the member of the committee and on the 

Respondent which is the named party-in-interest, and such determination shall be final 

and not subject to appeal within the Facility.

No employee of the Compliance Department or any other employee of the 

Facility may serve in any investigatory, prosecutorial or decision-making capacity 

relating to any matter involving a named party-in-interest if he or she would be 

precluded from participating in deliberations and voting on such matters pursuant 

to Part 2 if he or she were a member of a committee of the Facility. The 

provisions of paragraphs (b) through (e) of this Rule shall be applicable to such 

employee of the Facility as though such person were a member of a committee of 

the Facility.
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PART 11. CUSTOMER DISPUTES. 

1101. Procedure for Resolution.

Any dispute between a Customer and a Participant or between a Participant and a Broker 

arising out of or in connection with the solicitation or acceptance of any order for 

execution of a Swap, or the execution of any Swap, shall be resolved by and pursuant to 

the arbitration rules of the NFA or such other self-regulatory organization as the parties 

may agree. The failure by any Participant to comply with any decision issued by the NFA 

or such other self-regulatory organization in resolving any such dispute shall constitute a 

violation of these Rules, unless the decision is the subject of pending judicial review.

PART 12. MISCELLANEOUS.

1201. Prohibition of Compensation to Facility Employees.

No Participant, Affiliate of a Participant or employee thereof shall give any compensation 

or gratuity to any Facility employee, and no Facility employee shall accept any 

compensation or gratuity from any Participant, Affiliate of a Participant or employee 

thereof; provided that the foregoing shall not preclude giving or accepting items of 

nominal value.

1202. Rule Adoption, Amendment, and Repeal.

(a) Rules may be adopted, amended or repealed by the Facility as provided in these Rules. 

However, no Rule and no amendment or repeal of a Rule shall apply to any Swap or 

Swap entered into prior to the adoption thereof if such Rule, amendment or repeal 

would affect the amount of money to be paid, or would affect the specifications of the 

Swap or Underlying Commodity to be delivered, under such Swap, unless emergency 

action has been taken pursuant to Rule 1204.

(b) Unless a Rule is adopted, amended or repealed as an emergency action pursuant to Rule 

1204, or it is otherwise impracticable under the circumstances, the Facility shall:

(i) post on its website the submission to the Commission certifying or requesting 

approval of such Rule, Rule amendment or Rule repeal for a period of not 

less than five business days prior to filing the submission with the 

Commission; 

(ii) notify Participants of the posting of the submission when it is first posted; 

and 

(iii) accept comments on the submission from Participants and the public from 

the time of posting until the conclusion of the Commission’s review period. 
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1203. Confidentiality of Information.

(a) Except as provided in Rule 309, all information received by the Facility concerning 

positions, margin or premium payments, or deliveries, financial statements filed with 

the Facility, or other non-public information submitted to the Facility for regulatory 

purposes by any Participant (“Participant Information”), shall be held in confidence by 

the Facility and shall not be made known to any other Person except as follows:

(i) With the written consent of the Participant providing such information;

(ii) To the Commission or the United States Department of Justice pursuant to 

the requirements of the Commodity Exchange Act or any Regulation of the 

Commission or of any other Governmental Agency with jurisdiction over the 

Facility, which would allow the Facility to carry out such informationsharing agreements and international information-sharing agreements as the 

CFTC may require;

(iii) Pursuant to a subpoena issued by or on behalf of any Person or, in the 

Facility’s discretion, pursuant to a written request from the Congress of the 

United States, any committee or subcommittee thereof, the General

Accounting Office, or any department or agency of the United States, the 

State of New York or the City of New York;

(iv) Pursuant to an order issued by a court having jurisdiction over the Facility;

(v) To any SRO or authority acting under contract to the Facility for 

performance of SRO functions, for audit, compliance, surveillance, or 

disciplinary purposes;

(vi) To any Person in the business of providing data processing or similar 

services for the purpose of performing computations or analysis, or of 

preparing reports or records, for the Facility, subject to reasonable 

confidential safeguards;

(vii) To counsel for the Facility; or

(viii) To any other Person to the extent and pursuant to such terms and conditions 

as the Facility, from time to time, may deem appropriate, employing 

reasonable confidential safeguards. 

(b) Participant Information shall not include information which is: 

(i) in or becomes part of the public domain ; 

(ii) known to or obtained by such party previously without an obligation of 

confidentiality; 
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(iii) independently developed by such party outside of this Agreement; 

(iv) required to be disclosed by Applicable Law, or pursuant to a subpoena or 

order of a court or regulatory, self-regulatory or legislative body of 

competent jurisdiction, or in connection with any regulatory or selfregulatory request for information, or that the Facility otherwise deems 

advisable, in its discretion, to disclose to a governmental, self-regulatory or 

legislative organization.; or 

(v) information submitted by Participant, its Sponsored Participant s or Brokers 

that is displayed by the Facility on the Trading System or otherwise 

distributed or sold by the Facility regarding Bids, Offers, or executed 

transactions, provided that such displays and distributed or sold information 

shall not identify Participant by name, unless the Facility is explicitly 

directed to do so by Participant and only then for the express purposes set 

forth in and under conditions in compliance with the Rules.

(c) If information concerning one or more named Participants is requested pursuant to 

paragraphs (b), (c) or (d) above, the Facility shall notify each such Participant prior to 

furnishing such information, unless in the judgment of the Facility it would be contrary 

to the best interests of the Facility to do so.

1204. Emergency Powers.

(a) Delegation to Chief Executive Officer.

(i) The Chief Executive Officer is authorized by the Board of the Facility under 

this Rule 1204 to issue an opinion on behalf of the Board that any occurrence 

or circumstance is an Emergency that requires immediate action because it 

threatens fair and orderly trading in any Swap or the liquidation of or 

delivery pursuant to any Swap. The Chief Executive Officer is authorized to 

delegate this authority to an officer of the Facility to act on behalf of the 

Chief Executive Officer in the absence of the Chief Executive Officer. 

(ii) To the extent practicable under the circumstances, the Chief Executive 

Officer shall inform the Board of the occurrence or circumstance prior to 

issuing such an opinion. If it is not practicable to inform the Board prior to 

issuing taking such action, the Chief Executive Officer shall inform the 

Board as soon as practicable after taking such action.

(iii) Notwithstanding the provisions of subparagraph (i), if the Chief Executive 

Officer believes it appropriate, the Chief Executive Officer may submit the 

matter for consideration to the Board. 
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(iv) Nothing in this section prohibits the Board, at its election, from exercising 

the authority delegated under subsection (i) by it or by the Chief Executive 

Officer. 

(b) An occurrence or circumstance that is an Emergency that requires immediate action 

because it threatens fair and orderly trading in any Swap or the liquidation of or 

delivery pursuant to any Swap includes:

(i) any manipulative activity or attempted manipulative activity;

(ii) any actual, attempted, or threatened corner, squeeze, congestion or undue 

concentration of positions;

(iii) any circumstance which may materially affect the performance of Swaps, 

including failure of the payment system;

(iv) any action taken by the United States, any foreign government, any state or 

local government body, any other contract market, any board of trade, any 

exchange or any trade association (foreign or domestic), which may have a 

direct impact on trading on the Facility;

(v) any circumstance which may have a severe, adverse effect upon the physical 

functions of the Facility, including, for example, fire or other casualty, bomb 

threat, substantial inclement weather, power failure, communication or 

transportation breakdown, computer malfunction, breakdown of screen-based 

trading systems, malfunction of plumbing, heating, ventilation or air 

conditioning systems, or other similar events;

(vi) the bankruptcy or insolvency of any Participant or the imposition of any 

injunction or other restraint by any Government Agency, court or arbitrator 

upon any Participant which may affect the ability of any Participant to 

perform its Swaps;

(vii) any circumstance in which it appears that any Participant or any other Person 

has failed or may fail to perform Swaps, is or may be insolvent, or is in such 

financial or operational condition or is conducting business in such a manner 

that the Participant or Person cannot be permitted to continue to trade without 

jeopardizing the safety of Customer funds, Participants, the Facility, or the 

Clearing Organization; or

(viii) any other unusual, unforeseeable and adverse circumstance with respect to 

which it is not practicable for the Facility to certify a rule or rule amendment 

to the Commission prior to its implementation, or, in a timely fashion, to 

submit to the Commission for its prior approval a reviewable rule.
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(c) If an Emergency is determined under this rule to exist, the person exercising authority 

under paragraph (a) may take any or all of the following actions or any other action that 

may be appropriate under the circumstances:

(i) impose trading and/or modify any existing position limits;

(ii) impose or modify any existing price limits;

(iii) impose or modify any existing circuit breakers;

(iv) order the fixing of a Settlement Price (in coordination with the relevant 

Clearing Organization);

(v) extend or shorten the expiration date or the trading hours;

(vi) suspend or curtail trading; 

(vii) order the liquidation or transfer of open positions in any contract;

(viii) transfer customer contracts and the margin; or

(ix) alter any contract’s settlement terms or conditions.

(d) If the Chief Executive Officer, (or such other Officer(s) to whom the Chief Executive 

Officer shall delegate authority to act), in his or her sole discretion, shall determine that 

there is a malfunction in the system for transmitting orders or other communications 

from or through any Participant into the Trading System and that such malfunction 

may impair, delay or otherwise adversely affect the operation of the Trading System, 

the Chief Executive Officer (or other authorized officer) may instruct such Participant 

to discontinue transmissions to the Trading System from any source and may cause 

such steps to be taken as will disconnect such Participant from the Trading System, 

until such time as such malfunction shall have been resolved in a manner satisfactory to 

the Chief Executive Officer in his or her sole discretion. In taking any such action, the 

Chief Executive Officer or other authorized officer shall endeavor to communicate with 

the Participant in question prior to taking any such action, but the inability or failure of 

the Chief Executive Officer or other authorized officer to do so shall not prevent, delay 

or otherwise affect the ability of the Chief Executive Officer to act pursuant to this 

paragraph.

(e) As soon as practicable, the Board shall be notified of any exercise of emergency 

authority pursuant to this Rule and with respect to the Commission, the Facility shall 

comply with the requirements of Commission Regulation 40.6(a)(6).

(f) The Person exercising authority to take an emergency action pursuant to this Rule shall 

document the decision-making process and the reasons for taking such action. Such 

documentation shall include, but is not limited to the following: the steps taken to 
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minimize conflict-of- interest, consideration of the impact of the emergency actions on 

the underlying markets and consideration of the impact of the emergency actions on the 

markets that are linked to or reference the Swaps traded on the Facility (including other 

swap execution facilities). 

(g) All Participants and their customers and all Swaps shall be subject to these emergency 

powers, and the specifications of each Swap shall be deemed subject to this Rule.

1205. Limitation of Liability.

(a) Business on the Trading System may from time to time be suspended or restricted or 

the Facility may from time to time be closed for a temporary period or for such longer 

period as may be determined in accordance with the Rules including, without 

limitation, as a result of a decision taken under Rule 1204 on the occurrence of one or 

more events which require such action to be taken in the interests of maintaining a fair 

and orderly market. Any such action may result in the inability of one or more 

Participants and, through such Participants, one or more Customers to enter into Swaps. 

Furthermore, a Participant and, through such Participant, one or more Customers may 

from time to time be prevented or hindered from entering into Swaps, or trading Swaps, 

or errors in orders for Swaps and/or Swaps may arise, or submission of trades to the 

Clearing Organization or to a confirmation/affirmation platform may be delayed, as a 

result of a failure or malfunction of communications, equipment, market facilities, the 

Trading System, or software supplied to a Participant by the Facility or any other 

Person.

(b) EXCEPT IN INSTANCES WHERE THERE HAS BEEN A FINDING OF FRAUD 

OR WILLFUL OR WANTON MISCONDUCT, IN WHICH CASE THE PARTY 

FOUND TO HAVE ENGAGED IN SUCH CONDUCT CANNOT AVAIL ITSELF 

OF THE PROTECTIONS OF THIS RULE, THE FACILITY (INCLUDING ITS 

AFFILIATES), THE CLEARING ORGANIZATION, CLEARING PARTICIPANTS, 

PARTICIPANTS AND THEIR RESPECTIVE OFFICERS, DIRECTORS, 

EMPLOYEES, AGENTS, LICENSORS AND SERVICE PROVIDERS AND 

VENDORS (EACH, A “DISCLAIMING PARTY” AND COLLECTIVELY, 

“DISCLAIMING PARTIES”) SHALL NOT BE LIABLE TO ANY PERSON, 

INCLUDING WITHOUT LIMITATION ANY CUSTOMER, FOR ANY LOSS, 

DAMAGE OR COST (INCLUDING BUT NOT LIMITED TO ATTORNEYS’ FEES 

AND COURT COSTS), WHETHER DIRECT, INDIRECT, SPECIAL, 

INCIDENTAL, CONSEQUENTIAL, LOST PROFITS OR OTHERWISE OF ANY 

KIND, REGARDLESS OF WHETHER ANY OF THEM HAS BEEN ADVISED OR 

IS OTHERWISE AWARE OF THE POSSIBILITY OF SUCH DAMAGES, ARISING 

OUT OF THE USE OR PERFORMANCE OF THE TRADING SYSTEM, ANY 

COMPONENT(S) THEREOF, OR ANY FAULT, FAILURE, MALFUNCTION OR

OTHER ALLEGED DEFECT IN THE TRADING SYSTEM, INCLUDING ANY 

INABILITY TO ENTER OR CANCEL ORDERS IN THE TRADING SYSTEM, OR 

ANY FAULT IN DELIVERY, DELAY, OMISSION, SUSPENSION, INACCURACY 
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OR TERMINATION, OR ANY OTHER CAUSE IN CONNECTION WITH THE 

FURNISHING, PERFORMANCE, MAINTENANCE, USE OF OR INABILITY TO 

USE ALL OR ANY PART OF THE TRADING SYSTEM, INCLUDING BUT NOT 

LIMITED TO (1) ANY OF THE CIRCUMSTANCES OR OCCURRENCES 

REFERRED TO IN PARAGRAPH (a) OF THIS RULE OR (2) ANY FAILURE OR 

DELAY IN TRANSMISSION OF ORDERS OR TRADES OR LOSS OF ORDERS 

OR TRADES RESULTING FROM (A) MALFUNCTION OF THE TRADING 

SYSTEM, (B) DISRUPTION OF COMMON CARRIER LINES, (C) LOSS OF 

POWER, (D) ACTS OR FAILURES TO ACT OF ANY THIRD PARTY, (E) 

NATURAL DISASTERS OR (F) ANY AND ALL OTHER CAUSES. THE 

FOREGOING SHALL APPLY REGARDLESS OF WHETHER A CLAIM ARISES 

IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE. 

THE FOREGOING LIMITATIONS ARE CUMULATIVE AND SHALL NOT LIMIT 

OR RESTRICT THE APPLICABILITY OF ANY OTHER LIMITATION OR RULE, 

TRADING PROCEDURE OR NOTICE OF THE FACILITY OR RULE OF THE 

CLEARING ORGANIZATION. 

(c) THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR 

REPRESENTATIONS PROVIDED BY ANY DISCLAIMING PARTY RELATING 

TO THE TRADING SYSTEM OR ANY FACILITY SERVICE OR FACILITIES 

USED TO SUPPORT THE TRADING SYSTEM, INCLUDING, BUT NOT LIMITED 

TO, WARRANTIES OF MERCHANTABILITY AND WARRANTIES OF FITNESS 

FOR A PARTICULAR PURPOSE OR USE.

(d) IF ANY OF THE FOREGOING LIMITS ON THE LIABILITY OF A 

DISCLAIMING PARTY SHOULD BE DEEMED TO BE INVALID, INEFFECTIVE, 

OR UNENFORCEABLE OR IN THE EVENT THE FACILITY ELECTS TO 

ASSUME RESPONSIBILITY FOR DIRECT, OUT OF POCKET LOSSES 

DIRECTLY CASED BY THE GROSS NEGLIGENCE OF A DISCLAIMING 

PARTY AND ANY PARTICIPANT OR THIRD PARTY SUSTAINS A LOSS, 

DAMAGE OR COST RESULTING FROM USE OF THE TRADING SYSTEM, THE 

ENTIRE LIABILITY OF ALL DISCLAIMING PARTIES SHALL NOT EXCEED 

$100,000 FOR ALL LOSSES SUFFERED FROM ALL CAUSES ON A SINGLE 

CALENDAR DAY; $200,000 FOR ALL LOSSES SUFFERED FROM ALL CAUSES 

IN A SINGLE CALENDAR MONTH; AND $1,000,000 FOR ALL LOSSES 

SUFFERED FROM ALL CAUSES IN A SINGLE CALENDAR YEAR. IF THE 

NUMBER OF ALLOWED CLAIMS ARISING OUT OF ANY FAILURE OR 

MALFUNCTIONS ON A SINGLE DAY OR SINGLE MONTH CANNOT BE 

FULLY SATISFIED BECAUSE OF THE ABOVE DOLLAR LIMITATIONS, ALL 

SUCH CLAIMS SHALL BE LIMITED TO A PRO RATA SHARE OF THE 

MAXIMUM AMOUNT FOR THE RESPECTIVE PERIOD. 

(e) NOTWITHSTANDING ANY OF THE FOREGOING, THIS RULE SHALL IN NO 

WAY LIMIT THE APPLICABILITY OF ANY PROVISION OF THE ACT OR 

COMMISSION REGULATIONS.
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1206. Dispute Resolution.

(a) Choice of Law.

The law of the State of New York shall govern any dispute arising between the 

Facility and a Participant without giving effect to the provisions, policies or 

principles of any state law relating to choice or conflict of laws. 

(b) Arbitration Required.

Any dispute arising between the Facility and a Participant must be brought to 

arbitration within one (1) year from the occurrence of the event giving rise to the 

dispute. Any such dispute shall be settled by arbitration administered in New 

York, NY by the American Arbitration Association (the “AAA”) under its 

Commercial Arbitration Rules. The dispute will be submitted to one arbitrator 

that has experience with and knowledge of commodities, derivatives and Swaps 

as listed on the National Roster of Arbitrators , and who is appointed by the AAA. 

Judgment on the award rendered by the arbitrator will be binding on the parties 

and may be entered in any state or federal court sitting in New York, New York, 

and the parties shall be deemed to have consented to the personal jurisdiction of 

any such court. Each party to the arbitration shall bear its own costs and 

expenses, as well as an equal share of the administrative and arbitrator fees. 

However, the arbitrator may reimburse the prevailing party for its costs and 

expenses in any award. If for any reason this Arbitration provision is 

unenforceable, the parties hereby consent to the venue and jurisdiction of the 

federal and state courts located in New York, New York, and waive any objection 

thereto. Each Party hereby waives its right to trial by jury in any such action.

1207. Publication of Information.

The Facility as provided by Commission Rule 16.01 shall record for each 

business day and publish on its website, www.bgcsef.com, in pdf format, market 

data on swaps. 

1208. Trading System.

Each Participant, Sponsored Participant , Broker and other Persons affiliated with any of 

the foregoing hereby acknowledges and agrees that the Facility owns and shall retain all 

right, title and interest in and to the Trading System and related, associated and/or 

supporting systems administered by or on behalf of the Facility (including, without 

limitation, the ones for order entry, confirmation and reporting of the Swap transactions, 

whether entered through the Electronic Order Book, Voice Functionality, RFQ 

Functionality or otherwise) , all components of all of the foregoing, including, without 

limitation, all related applications, all application programming interfaces, user interface 

designs, software and source code and any and all intellectual property rights therein, 

including, without limitation, all registered or unregistered, as applicable copyright, trade 
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mark, service mark, trade secret, trade name, data or database rights, design rights, moral 

rights, inventions, whether or not capable or protection by patent or registration, rights in 

commercial information or technical information, including, without limitation, knowhow, research and development data and manufacturing methods, patent, and other 

intellectual property and ownership rights, including, without limitation, applications for 

the grant of any of the same, in or to any and all of the foregoing and all other related 

proprietary rights of the Facility and/or any of its Affiliates (together, with any and all 

enhancements, corrections, bug fixes, updates and other modifications to any of the 

foregoing and any and all data or information of any kind transmitted by means of any of 

the foregoing, “Proprietary Information”). Each Participant, Sponsored Participant and 

Broker, on behalf of itself and each of its Affiliates, and other Persons affiliated with any 

of the foregoing, further acknowledges and agrees that the Proprietary Information is the 

exclusive, valuable and confidential property of the Facility. Each Participant, Sponsored 

Participant and Broker acknowledges and agrees that it shall not and shall not permit its 

Affiliates, and other Persons affiliated with any of the foregoing to, reverse engineer, 

copy, bug fix, correct, update, transfer, reproduce, republish, broadcast, create derivative 

works based on or otherwise modify, in any manner, all or any part of the Trading 

System or the Proprietary Information. Each Participant, Sponsored Participant and each 

Broker further agrees to and shall cause each of its Affiliates, Sponsored Participant s and 

other Persons affiliated with any of the foregoing to, keep the Proprietary Information 

confidential and not to use (except that each Participant , Sponsored Participant and 

Broker may use solely internally for the purposes of the Participant executing Swap 

transactions on the Trading System),and not to transfer, rent, lease, loan, sell or 

distribute, directly or indirectly, all or any portion of the Trading System or any 

Proprietary Information. 

1209. Enforceability

A transaction entered into on or pursuant to the rules of the Facility shall not be void, 

voidable, subject to rescission, otherwise invalidated, or rendered unenforceable as a 

result of:

(a) A violation by the swap execution facility of the provisions of section 5h of the Act or 

the Commission’s rules;

(b) Any Commission proceeding to alter or supplement a rule, term, or condition under 

section 8a(7) of the Act or to declare an emergency under section 8a(9) of the Act; or

(c) Any other proceeding the effect of which is to:

(i) Alter or supplement a specific term or condition or trading rule or procedure; 

or

(ii) Require the Facility to adopt a specific term or condition, trading rule or 

procedure, or to take or refrain from taking a specific action.
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1210. Audit Trail

The Facility shall make available all audit-trail data and reconstructions to the 

Commission in a form, manner and time that is acceptable to the Commission.

PART 13. PRODUCTS.

1301. Swaps Made Available to Trade. 

Every Swap or an economically equivalent Swap that is required to be cleared under 

section 2(h)(1) of the Act and which has been made available for trading on a swap 

execution facility and which is listed for trading on the Facility is Made Available to 

Trade on the Facility; Provided however that the following Swaps listed or offered for 

trading on or subject to the Rules of the Facility shall not be considered to be Made 

Available to Trade on the Facility: 

(a) Block trades as provided under Rule 510;

(b) Bespoke Swaps; and 

(c) Illiquid Swaps. 

1302. Position Limits or Position Accountability.

To reduce the potential threat of market manipulation or congestion, the Facility shall 

adopt for each of the contracts of the Facility, as is deemed necessary and appropriate

by the Facility, position limitations or position accountability levels for speculators. 

The Facility shall on an on-going basis monitor positions established on or through the 

Facility for unusual activity, including but not limited to, unusual volumes, patterns or 

concentrations of transactions. 

1303. Reserved.

1304. Reserved 

1305. Risk Controls for Trading.

(a) The Facility, in its discretion, may take any action to reduce the potential for market 

disruption, including, but not limited restricting or halting trading or other actions 

determined by the Facility if in the best interest of the swap market. 

(b) The Facility may impose a similar risk control action taken by another market trading a 

Swap that is fungible with, or a substitute for, a Swap traded on the Facility. 
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ActiveUS 150102619v.7

1306. Swaps Listed for Trading

The terms and conditions of the Swaps Listed for trading on the Facility shall be as 

provided in Attachment A to these Rules. The Facility shall list for trading only Swaps 

that are not readily susceptible to manipulation, having certified such swaps listed for 

trading (or in the discretion of the Facility, having submitted such Swaps for voluntary 

approval under 17 C.F.R. 40.3) and having submitted supporting information as set forth 

in 17 C.F.R. Part 38, Appendix C.