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iSwap Euro B.V.

The Venue is not yet offering trading in its capacity as 

a SEF
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iSwap Venue Rulebook

Contact

iSwap Desk Tel No: +44 20 7000 5180

i-swap@icap.com
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Contents

1. Definitions and Interpretation .......................................................................5

2. General.........................................................................................................11

3. Independent Software Vendors...................................................................11

4. Participation.................................................................................................11

5. Eligibility Criteria for Member Participants..................................................12

6. Eligibility Criteria for Broker Participants.....................................................13

7. Participant Obligations.................................................................................14

8. Credit Setting and Restrictions.....................................................................15

9. Notification ..................................................................................................15

10. Conduct Rules ..............................................................................................16

11. Suspension or Termination of Participation ................................................17

12. Consequences of Suspension or Termination..............................................18

13. Resignation...................................................................................................18

14. Products.......................................................................................................18

15. Trading Rules................................................................................................19

General Information ....................................................................................19

Required Transactions.................................................................................19

Order Size.....................................................................................................20

Pre-Trade Controls.......................................................................................20

Order Matching............................................................................................20

Prohibition, Removal and Suspension of Trading........................................20

16. Trade Cancellations and Error Trades..........................................................21

17. Trade Capture and Confirmation .................................................................22

18. Clearing and Settlement ..............................................................................22

19. Pre-Trade and Post-Trade Publication.........................................................23

20. Trade Reporting ...........................................................................................24

21. Information and Data...................................................................................24

General.........................................................................................................24

Market Mid-Price.........................................................................................25

22. Algorithmic Trading......................................................................................26

23. Market Making.............................................................................................26

24. Co-operation with Regulators......................................................................27

25. Complaints...................................................................................................27

26. Taxes and Fees.............................................................................................27

27. Confidentiality..............................................................................................27
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28. Amendments and Notices............................................................................27

29. Governing Law .............................................................................................28

Appendices:

Market Appendix 1 – Order Book Market Appendix

Market Appendix 2 – Targeted Streaming Market Appendix 

Market Appendix 3 – Trading Standards

Market Appendix 4 – Disciplinary Procedures

Market Appendix 5 – Trade Review and Error Policy 

Schedule
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1. Definitions and Interpretation

Actionable 

Indications of 

Interest or 

Actionable IOI

An indicative buy or sell instruction submitted on the Targeted Streaming

Market. Forthe avoidance of doubt an Actionable IOI does not satisfy the 

CFTC requirements for a Required Transaction.

Act The U.S. Commodity Exchange Act as amended from time to time.

Affiliates In respect of ICAP, a subsidiary or subsidiary undertaking thereof (with

such terms having the meaning ascribed to them by article 2:24 of the 

Dutch Civil Code), and in respect of a Participant, any party, persons who 

control, are controlled by or are under the common control of such party.

Affirmation Hub A third party service designated by the Operator to route Trades to a 

Clearing House and which may provide Participants with the opportunity 

to affirm the Trades.

AFM The Dutch Financial Supervisory Authority (Autoriteit Financiële Markten), 

or its successors.

Agreements The agreement(s) governing the Participant’s access to and use of the

iSwap Venue which may include without limitation any of the following 

items which apply to the Participant: theAuthorisation Form(including any

updates to the Authorisation Form submitted from time to time), iSwap 

Terms of Business, Client Categorisation Notice, Rate Card, MiFID II Market 

Maker Agreement & Market Notices published by the Operator from time 

to time. For the avoidance of doubt the Agreements shall include this

Rulebook.

Algorithmic Trading As defined in article 4(1)(39) of MiFID II.

Applicable Law The applicable rules and regulations to the operation of the Venue 

including (but not limited to) the Act, the Commission Regulations, 

MiFIDII, MiFIR and binding interpretations from a Regulator.

Applicant A person who has applied to become a Participant in accordance with this 

Rulebook.

Authorised Algorithmic 

Trader

An Authorised Trader who undertakes Algorithmic Trading on the iSwap 

Venue.

Authorised Broker A user of the iSwap Venue being a Broker Participant’s authorised 

employee, officer, agent, Affiliate or designee as notified to the Operator 

by the Broker Participant.

Authorisation Form A trader or broker authorisation form signed on behalf of Authorised 

Trader, Authorised Algorithmic Trader or Broker Participant, as applicable.

Authorised Person An Authorised Trader, an Authorised Algorithmic Trader or an Authorised 

Broker.

Authorised Trader A user of the iSwap Venue being a Member Participant’s authorised 

employee, officer, agent, Affiliate or designee as notified to the Operator 

by Member Participant who has been granted certain trading permissions 

as set out in the Schedule.

Broker Participant A person who meets the Eligibility Criteria in Rule 6 and is authorised by 

the Operator to participate on the iSwap Venue in accordance with this 
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Rulebook and the Agreements.

Business Day “Business day” means the twenty-four-hour day, on all days except 

Saturdays, Sundays, and Legal Holidays, in the location of SEF, DCM, or 

reporting counterparty reporting data for the swap.

A Legal Holiday is a day which is both a TARGET Holiday and a UK Public 

Holiday.

Chief Compliance 

Officer

Means the person responsible for regulatory reporting under the 

Commodity Exchange Act and to the Commodity Futures Trading 

Commission.

Clearing Credit 

Methodology

The iSwap clearing credit methodology document, as may be provided to 

Participants upon request.

Clearing House A broadly supported and recognised inter-bank clearing house or 

derivatives clearing organisation authorised or recognised to provide 

clearing services for over-the-counter interest rate derivatives in 

accordance with EMIR and the Act.

Commission Means the U.S. Commodity Futures Trading Commission or CFTC.

Commission 

Regulations

Title 17, Chapter I of the U.S. Code of Federal Regulations.

Compliance Function Means, for CFTC-related considerations, the CCO and, for AFM-related 

considerations, the Compliance Officer. To the extent that any of the 

activities concern both the CFTC and AFM, the CCO and the Compliance 

Officer will cooperate to ensure compliance with the respective 

regulations. 

Compliance Officer Means the person responsible for regulatory reporting under MiFID II and 

to the AFM. 

Contract Means any Swap listed for trading on the Venue.

Credit Officer A user of the iSwap Venue being a Member Participant’s authorised 

employee, officer, agent, Affiliate or designee as notified to the Operator 

by Member Participant who has been granted certain permissions as set 

out in the Schedule.

Default Event Where an event or circumstance leads the Operator to determine in its 

sole discretion that Participant is or appears to be unable or likely to 

become unable to meet its obligations in connection with the iSwap Venue 

or to comply with any other obligation under the Rules or the Agreements, 

or breaches a law relevant to its business as a Participant.

Derivatives Clearing 

Obligation

Article 4(1)(b) of EMIR or section 2(h) of the Act as applicable.

Desk A group of Authorised Traders within a Member Participant who trade on 

behalf of the same trading entities and who have common trading 

permissions and trading entity Matching priorities.

Direct Electronic Access 

or DEA

As defined in article 4(1)(41) of MiFID II.
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Disciplinary Procedures The Disciplinary Procedures govern the rule enforcement of any violations 

of this Rulebook. The Disciplinary Procedures are rules and form part of 

this Rulebook.

Eligibility Criteria The criteria for eligibility for Participation as a Broker Participant or a

Member Participant, as applicable, on the iSwap Venue as set out in this

Rulebook.

Eligible Instrument or 

Instruments

The instrument or instruments available to trade on the iSwap Venue in 

accordance with this Rulebook. For the avoidance of doubt, Eligible 

Instrument includes a Swap.

Eligible Market MidPrice OrdersAs defined in Rule 21.8 

Emergency As defined in the Emergency Authority Policy. 

EMIR The Regulation of the European Parliament and of the Council on OTC 

derivatives, central counterparties and trade repositories (No. 

648/2012/EU), as amended from time to time.

Error Trade A Trade made on the iSwap Venue in error as to price, quantity, currency, 

direction or symbol, as determined solely by the Operator in accordance 

with the provisions of the Trade Review and Error Policy. Without 

limitation, the unavailability of counterparty credit shall not by itself 

render a Trade an Error Trade.

FCA The Financial Conduct Authority, or its successors.

Future(s) One of the following futures contracts:

 Schatz;

 Bobl;

 Bund;

 Buxl; or

 Long Gilt.

Futures Cross An Interest Rate Swap which is traded with an associated Future.

ICAP ICAP Global Broking Holdings Limited and/or its Affiliates.

ICAP Securities Limited An Affiliate of ICAP, registered in England and Wales and authorised and 

regulated by the FCA.

Insolvency Event Where a Participant orits parent company (whether direct orindirect) or

ultimate holding company:

a) is unable or admits inability to pay its debts as they fall due, 

suspends making payments on any of its debts or, by reason of 

actual or anticipated financial difficulties, commences 

negotiations with one or more creditors with a view to 

rescheduling its indebtedness; or

b) has assets whose value is less than their liabilities; or

c) has a moratorium declared in respect of their indebtedness; or

d) is subject to any similar events or analogous proceedings in other 

relevant jurisdictions.

Interest Rate Swap (IRS) A single currency fixed/floating interest rate swap.
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Internal Matches An Orderfrom an Authorised Trader that Matches with anotherOrderfrom

an Authorised Trader within the same Member Participant or Desk.

iSwap iSwap Euro B.V., a company registered in the Netherlands and authorised 

and regulated by the AFM and the FCA in respect of the iSwap Euro B.V. 

(UK) branch.

iSwap Venue The Venue operated by iSwap and which is authorised and regulated by

the AFM as MTF, and allocated the MIC reference ISWP, and which is 

registered with the Commission as a SEF.

Market The Order Book and the Targeted Streaming markets, the Rules for which 

are set out in the relevant Market Appendix.

Market Abuse 

Regulation

Regulation (EU) 596/2014 on market abuse, as amended from time to 

time, which is applicable to financial instruments traded on an MTF.

Market Appendices The Appendices to this Rulebook. The Appendices are Rules and form part 

of this Rulebook.

Market Event A market-wide systemic increase in risk as determined by the Operator at 

its discretion.

Market Maker 

Programme

As defined in Rule 23.2.

Market Making 

Agreement

The agreement governing market making activities as entered into by a 

Member Participant engaged in Algorithmic Trading with the Operator, as 

amended from time to time.

Market Mid-Price The mid-market reference rate calculated in respect of each outright 

Eligible Instrument on the iSwap Venue in accordance with Rule 21.

Market Notice A notice published or issued by the Operator to Participants from time to 

time in accordance with this Rulebook. Market Notices form part of this 

Rulebook.

Match or Matched or 

Matching

The match of a buy Order with a sell Order on the iSwap Venue in 

accordance with this Rulebook.

Member Participant A person who meets the Eligibility Criteria in Rule 5 and is authorised by 

the Operator to participate on the iSwap Venue in accordance with this 

Rulebook and the Agreements.

MiFID II The European Parliament and Council Directive on Markets in Financial 

Instruments and amending Directive 2002/92/EC and Directive 

2011/61/EU (No. 2014/65/EU), together with ancillary legislation, rules

and binding technical standards, as amended from time to time.

MiFIR The Regulation of the European Parliament and of the Council on Markets 

in Financial Instruments (No. 600/2014/EU), together with ancillary 

legislation, rules and binding technical standards, as amended from time 

to time.

MTF A Multilateral Trading Facility as defined in article 4(1)(22) of MiFID II.

Operator iSwap in its capacity as the authorised operator of the iSwap Venue.
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Order A buy or sell instruction submitted to the iSwap Venue.

Order Book Market 

Appendix

The Order Book Market appendix to this Rulebook. The Order Book 

Market appendix are Rules and form part of this Rulebook.

OTC Derivatives 

Clearing Member

A clearing member of a Clearing House, authorised or recognised to 

provide clearing services for over-the-counter interest rate derivatives in 

accordance with EMIR and the Act, with which iSwap has a clearing 

agreement.

Participant A Member Participant or a Broker Participant, as applicable.

Participant Access Code An access code granted to Participant in accordance with the Agreements.

Participation A Participant’s or their Authorised Person’s activity on the iSwap Venue.

Permitted Transaction Means any transaction that is not subject to the trade execution 

requirements in section 2(h)(8) of the Act or any instrument not subject to 

the Derivatives Trading Obligation under MiFIR.

Product Any product as detailed in the relevant Market Appendix.

PVO1 In respect of an Eligible Instrument, the monetary present value of one 

basis point of the yield.

Regulator The authority designated by a member state of the European Union in 

accordance with article 67 of MiFID II and any other relevant regulatory or 

competent authority having jurisdiction.

Regulation 37.9(d)(4) 

Package Transaction

A package transaction including a component transaction that is not a 

swap intended to be cleared as set forth in Commission Regulation 

37.9(d)(4).

Required Transaction Means any transaction subject to the trade execution requirements in 

section 2(h)(8) of the Act or any transaction in an instrument subject to 

the Derivatives Trading Obligation under MiFIR.

Reporting Counterparty Means the reporting counterparty as required by Part 45 of the 

Commission Regulations.

Rules The rules set out in this Rulebook and any Market Notice each as may be 

amended from time to time.

Rulebook The Rules governing the operation of the iSwap Venue in force from time

to time and any amendment made thereto. Any reference to the term 

“System Protocol” in the Agreements is a reference to this Rulebook.

Schedule The schedule to this Rulebook. The Schedule forms part of this Rulebook.

SEF Means a Swap Execution Facility as defined in section 1a(50) of the Act. 

SDR The Depository Trust and Clearing Corporation (DTCC).
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Swap The term “Swap” has the meaning given to that term in Section 1a(47) of 

the Act and in the Commission Regulations promulgated thereunder 

(without regard to any determination by the Secretary of the Treasury

pursuant to Section 1b of the Act) and, as used in these Rules, refers solely

to transactions in Swaps that are made or to be made

on the SEF.

TARGET The Trans-European Automated Real-time Gross settlement Express 

Transfer system.

Targeted Streaming 

Market Appendix

The Targeted Streaming Market appendix to this Rulebook. The Targeted 

Streaming Market appendix are Rules and form part of this Rulebook.

Trade or Trading Any sale or purchase of an Eligible Instrument that takes place on the 

iSwap Venue.

Trade Review and Error 

Policy

A policy on the treatment of Error Trades and process for trade 

cancellations. The Trade Review and Error Policy are Rules and form part 

of this Rulebook.

Trading Day The days on which the Eligible Instruments are made available to 

Participants on the iSwap Venue as set out in the Market Appendices.

Trading Standards The Trading Standards concern certain trading practices on the Venue. 

The Trading Standards are Rules and form part of this Rulebook.

Venue iSwap in its capacity as the authorised operator of the swap trading 

venue, being both an MTF and a SEF.

All capitalised terms not otherwise defined in this Rulebook shall have the meaning ascribed 

to them in the Agreements, the Market Appendices or as described in the Schedule. In this 

Rulebook, words in the singular include the plural and vice versa. A reference to persons in 

this Rulebook shall include a reference to legal persons and natural persons as the context

requires. Headings are for ease of reference only and do not form part of the Rulebook. 

Reference to statutory provisions shall include any amendment, modification or re-enactment 

or re-making thereof.
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2. General

2.1. iSwap operates the iSwap Venue on which Participants are permitted to deal with other 

Participants, in accordance with Applicable Law, the terms of the Agreements, the 

Rulebook, and the relevant Market Appendix (which are considered Rules of the iSwap

Venue).

2.2. The Rulebook supplements and forms part of the Agreements. In the event of conflict 

between the Agreements, the Rulebook, any Market Appendix and the Schedule, the 

following order of precedence shall apply to the extent of any inconsistency: 1. the 

applicable Market Appendix; 2. the Rulebook; 3. the Agreements; and 4. the Schedule.

2.3. The Operator is not party to any Trade and the Eligible Instruments are traded on the 

iSwap Venue on a name give up basis. The Operator provides the iSwap Venue to

Participants for the purpose of allowing Member Participants (either directly or via

Broker Participant) to effect Trades in Eligible Instruments. The Operator is not subject 

to any fiduciary or equitable duties to any Participant. Participants agree to the Operator 

acting as a self-regulatory organisation.

2.4. Participants shall not permit or allow any third party individual or company (whether an 

Affiliate of the Participant or otherwise) to access the iSwap Venue unless authorised to 

do so by the Operator.

3. Independent Software Vendors

3.1. iSwap will provide impartial access to independent software vendors. Any fees will be 

comparable for independent software vendors receiving comparable access to or 

services from iSwap. Each independent software vendor must satisfy the following 

criteria which will be applied in a fair and non-discriminatory manner.

3.1.1 Comply with applicable technical access standards, security protocols and 

system compatibility requirements as may be specified by iSwap from time to 

time.

3.1.2 Ensure that each person that uses the software to access the Venue is 

authorised to do so by the Venue.

3.1.3 Ensure that, when submitting any transaction to the Venue, it contains sufficient 

information to identify the Authorized Person

3.1.4 Complies with Applicable Law in any jurisdiction in which it intends to offer its 

software to access the Venue.

4. Participation

4.1. An Applicant may apply to become a Participant of the iSwap Venue at any time. 

4.2. Participation is open to Applicants who meet the relevant Eligibility Criteria and who 
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commit to adhere to the terms of these Rules, the Agreements and any guidance or 

other requirements of Operator.

4.3. Operator may require Participant to demonstrate that the relevant Eligibility Criteria are

met.

4.4. Subject to the requirements and procedures set forth in these Rules, Operator may in its

absolute discretion approve or reject applications or approve an application subject to

such conditions and/or restrictions as it considers appropriate. 

4.5. Pursuant to Commission Regulation 37.202, iSwap will review all applications in a fair, 

non-discriminatory, open and impartial manner. iSwap will provide impartial access to 

its market(s) and market services, including any indicative quote screens or any similar 

pricing data displays. iSwap will maintain criteria governing such access that are 

impartial, transparent, and applied in a fair and non-discriminatory manner. 

4.6. Operator shall notify the Applicant of its decision in writing with Participation becoming 

effective on such date and at such time as Operator may specify.

4.7. Where an application is approved, Participants will be authorised and permissioned to 

participate on the iSwap Venue as detailed in the notice referred to in Rule 4.6. The 

Participant must provide sufficient information to the Venue to enable the Venue to 

report all creation data required by Part 45 of the Commission Regulations to the SDR. 

Where an application is rejected, Applicants may ask the Participation Committee to 

review the decision under the terms of the Governance Policy.

4.8. Participant authorises Operator to disclose its Participation to other Participants.

5. Eligibility Criteria for Member Participants

5.1. Member Participant shall meet and shall continue to meet all of the following Eligibility 

Criteria throughout itsParticipation:

5.1.1 Satisfy iSwap’s internal client on-boarding requirements, and be classified by 

iSwap as an Eligible Counterparty as defined in MiFID II and an “eligible contract 

participant” as defined by the Act (for the avoidance of doubt iSwap has 

delegated certain on-boarding functions to ICAP);

5.1.2 Have the legal and regulatory capacity to undertake trading in the Products on 

the iSwap Venue;

5.1.3 Satisfy Operator as to its adequate arrangements for Order submission, Order 

management, clearing and settlement of all Trades transacted on the iSwap

Venue;

5.1.4 Be able to provide Operator (if requested) with such information as Operator 

may require in relation to the validity of any Order or Trade;
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5.1.5 Have adequate organisational procedures and controls to limit Error Trades and 

the submission of erroneous Orders to the iSwap Venue;

5.1.6 Be an OTC Derivatives Clearing Member; or have a current derivatives clearing 

agreement with an OTC Derivatives Clearing Member in order to be able to fulfil 

the Derivatives Clearing Obligation;

5.1.7 Be connected to MarkitWire or an equivalent broadly supported electronic

Affirmation Hub forinterest rate derivatives;

5.1.8 Be able to satisfy the technical specifications and standards required by Operator

for Participation on the iSwap Venue, including the completion of any technical 

and functional conformance testing required by Operator; and

5.1.9 Meet such further Eligibility Criteria as Operator may prescribe from time to 

time with regard toParticipation.

6. Eligibility Criteria for Broker Participants

6.1. Broker Participant shall meet and shall continue to meet all of the following Eligibility 

Criteria throughout itsParticipation:

6.1.1 Satisfy iSwap’s internal client on-boarding requirements, and be classified by 

iSwap as an Eligible Counterparty as defined in MiFID II and an “eligible contract 

participant” as defined by the Act (for the avoidance of doubt iSwap has 

delegated certain on-boarding functions to ICAP);

6.1.2 Have the legal and regulatory capacity to deal as agent on behalf of Member

Participants in the Products on the Order Book Market;

6.1.3 Satisfy Operator as to its adequate arrangements for Order submission and 

Order management;

6.1.4 Be able to provide Operator (if requested) with such information as Operator 

may require in relation to the validity of any Order or Trade;

6.1.5 Have adequate organisational procedures and controls to limit Error Trades and 

the submission of erroneous Orders to the iSwap Venue;

6.1.6 Be able to satisfy the technical specifications and standards required by Operator

for Participation on the iSwap Venue, including the completion of any technical 

and functional conformance testing required by Operator; and

6.1.7 Meet such further Eligibility Criteria as Operator may prescribe from time to 

time with regard to Participation.
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7. Participant Obligations

7.1. Participant shall maintain an appropriate system of internal controls which ensures that 

the Participant continuously complies with these Rules.

7.2. Participant’s internal controls shall include pre- and post-trade controls which are 

appropriate to the scale, nature and complexity of the Participant’s activity on the iSwap

Venue.

7.3. Participant must notify Operator in writing of the names of those individuals authorised 

by the Participant to be Authorised Persons on the iSwap Venue and its designated 

Markets and/or Products.

7.4. In respect of business conducted on the iSwap Venue, a Participant shall be responsible 

for all the acts, omissions, conduct and activity of its Authorised Persons.

7.5. Participant must ensure its Authorised Persons have sufficient training, are adequately

supervised and have adequate experience, knowledge and competence to participate on 

the iSwap Venue in accordance with the Rules.

7.6. Member Participant will be bound by any and all Orders submitted and any resultant

Trades entered into by its Authorised Persons acting on their behalf. All Orders must 

include all applicable information as required by Part 45.8(h)(1)(i)-(vii) of the 

Commission Regulations.

7.7. No liability shall attach to Operator if an instruction which it has accepted and acted upon

bona fide is subsequently discovered to have been given forged, falsified or amended 

without authority of Participant.

7.8. Participant is responsible for complying with any security measures and procedures for 

authentication requested by Operator from time to time and ensuring that only 

Authorised Persons have access to the iSwap Venue.

7.9. Participant is responsible for all technical equipment and software necessary to access 

the iSwap Venue and comply with Operator’s reasonable requests in relation to the

establishment of connectivity and installation. Requirements and system specifications

will be notified to Participants by Operator from time to time.

7.10. Participant is responsible for assigning roles and permissions via the Authorisation Form 

to its authorised employees, officers, agents, Affiliates or designees, and notifying 

Operator of such assignment in accordance with the Schedule. Other than as set out in 

the Schedule in relation to settings on log on or loss of connection, a Broker Participant 

will be bound by the settings and configuration of the Authorised Trader for whom it is 

authorised to act.

7.11. Participant must remain in compliance with all Applicable Law and regulations.

7.12. Participant will co-operate with Operator, the AFM, the Commission, the FCA, and any
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other relevant Regulator during any investigation that is conducted in relation to access 

to and trading on the iSwap Venue. Participant will maintain books and records and 

permit inspection and visitation by authorized representatives oftheOperator,the AFM,

the Commission,the FCA, and any other relevant regulator. The Participant shall provide 

full and prompt responses to all requests for information by the Operator and any other 

reasonable request within the control of the Participant, on behalf of itself and, in the 

case of Broker Participant, on behalf of each Member Participant for whom it is 

authorised to act, save to the extent the Participant may be restricted in doing so by law 

orregulation.

7.13. Participant shall bear its own costs and expenses in connection with any such 

investigation. Participant shall indemnify Operator in full in respect of all costs and 

expenses reasonably incurred in connection with any investigation (or part of an 

investigation) in so far as any such investigation (or part thereof) relates to the 

Participant’s activity on the iSwap Venue (except to the extent that any such costs arise 

as a consequence of the fraud, negligence or wilful default of Operator or as a 

consequence of any breach byOperator).

8. Credit Setting and Restrictions

8.1. Member Participants are solely responsible for determining their credit settings, and/or 

restrictions, where applicable. Broker Participants shall be bound by the credit settings 

of each Member Participant for whom they are authorised to enter Orders.

8.2. Operator will not provide Broker Participant with details of the credit settings of any 

Member Participant. Authorised Broker does not have the ability to view or amend a 

Member Participant’s credit.

8.3. Operator is not responsible for a Member Participant’s failure to ensure the accuracy or 

timeliness of its creditsettings.

8.4. The iSwap Venue providesfor Member Participantsto directly inputtheir creditsettings

into the system. Creditsetting functionality is applied to Member Participants in 

accordance with the Clearing Credit Methodology.

8.5. At Member Participant’s request, Operator is able to input credit settings on behalf of a 

Member Participant and Member Participant is responsible for providing Operator with 

all relevant information. Operator is not responsible for any inaccuracy in the 

information provided to it.

8.6. Credit settings or restrictions will take effect as soon as Operator or Member Participant 

has entered such settings orrestrictions.

8.7. A Member Participant providing clearing limits must have a clearing agreement in place

with a Member Participant before allocating clearing limits to the iSwap Venue.

9. Notification

9.1. Participants must notify Operator within the timeframes specified below on the 
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occurrence of any of the following:

9.1.1 a change of legal name or contact details – at least five (5) Business Days in 

advance of any change takingeffect;

9.1.2 a change of the legal entity which is the Participant – at least thirty (30) Business 

Days in advance of any change takingeffect;

9.1.3 an Insolvency Event – immediately upon becoming aware;

9.1.4 the Participant breaches or is likely to breach a law applicable to its business as a

Participant – immediately upon becoming aware;

9.1.5 a material breach of these Rules or any event which affects the Participant’s 

ability to comply with these Rules - immediately upon becoming aware;

9.1.6 a change in the Participant’s ability to meet the relevant Eligibility Criteria -

immediately upon becoming aware;

9.1.7 a loss of connectivity, or other technical issue which might affect the 

Participant’s ability to comply with these Rules - immediately upon becoming 

aware; or

9.1.8 any other change or event which might reasonably impact on the Participant’s 

access or activity in relation to the iSwap Venue - immediately upon becoming

aware.

9.2. In addition, Member Participants must notify Operator within the timeframes specified

below on the occurrence of any of the following:

9.2.1 the Member Participant is or is likely to become unable to meet its obligations in 

respect of an Order or Actionable IOI or Trade - immediately upon becoming 

aware; or

9.2.2 the Member Participant has defaulted, is in default or is likely to default (or 

become subject to an analogous event) under the rules of any Clearing House 

which clears the Member Participant’s Trades – immediately upon becoming

aware.

10. Conduct Rules

10.1. When trading on the iSwap Venue, Participants must observe high standards of integrity, 

market conduct and fair dealing and must act with due skill, care and diligence. 

Participants must also take into account the Trading Standards issued to them when 

trading on the iSwap Venue.
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10.2. Participants must not:

10.2.1 engage in any conduct which gives or is likely to give a false or misleading 

impression as to the market in, or the price of, any Eligible Instrument or which 

secures the price of one or several Eligible Instruments at an abnormal or 

artificial level;or

10.2.2 engage in any act or course of conduct which is likely to harm the integrity,

fairness, orderliness or reputation of the Operator or the iSwap Venue; or

10.2.3 breach or attempt to breach these Rules or cause or contribute to a breach of 

these Rules by another Participant;or

10.2.4 submit Orders or Actionable IOIs on the iSwap Venue which are fictitious, or

constitute any other form of deception or contrivance.

10.3. Any breach of the Rules by any Participant will be dealt with in accordance with the 

Rulebook, the Agreements, and the Disciplinary Procedures.

11. Suspension or Termination of Participation

11.1. Operator may at its absolute discretion and without liability restrict, suspend or 

terminate the Participation of a Participant (and/or its Authorised Persons) if, at any

time:

11.1.1 Participant and/or any of its Authorised Persons breaches these Rules or the 

Agreements; or

11.1.2 Participant suffers an Insolvency Event; or

11.1.3 Participant suffers a Default Event; or

11.1.4 Participant and/or any of its Authorised Personsissubject to relevant

enforcement or other proceedings by the AFM,the Commission, the FCA or any 

other Regulator; or

11.1.5 Participant ceases to meet the relevant Eligibility Criteria; or

11.1.6 Operator considers that restriction, suspension or termination of Participant 

and/or any of its Authorised Persons is necessary to ensure or maintain orderly 

trading on the iSwap Venue.

11.2. Operator will notify Participant of a decision to restrict, suspend or terminate its or its 

Authorised Person’sParticipation. Where a Participant has had its Participation 

restricted, suspended or terminated, Participants may ask the Participation Committee 

to review the decision under the terms of the Governance Policy.
18

12. Consequences of Suspension or Termination

12.1. In the event of a Participant’s (or an Authorised Person’s) suspension or termination:

12.1.1 all Orders and Actionable IOIs in respect of that Participant and/or its Authorised 

Person, as the case may be, will be placed inactive and will not be made 

available to Match nor shown on the iSwap Venue;

12.1.2 in the case of a Member Participant only, all Trades shall continue to be binding 

on such Participant, and the terms of such Trades shall be unaffected by such 

suspension or termination;

12.1.3 any Participant Access Codes attributed to the Participant and/or Authorised

Persons, asthe case may be,shall be disabled and access removed; and

12.1.4 in the event of a termination, the Participant and/or each of its Authorised 

Persons, as the case may be, shall immediately cease to access the iSwap Venue 

and remove, return or otherwise destroy any connections to the iSwap Venue.

13. Resignation

13.1. Where a Participant has given notice of its intent to resign from Participation, the 

resignation is not effective and the Rules will continue to bind the Participant until:

13.1.1 all of the Participant’s outstanding Orders and Actionable IOIs have been 

Matched, cancelled, withdrawn or expired;

13.1.2 all outstanding obligations of the Participant with respect to Trades (including 

with respect to clearing and settlement) have been performed; and

13.1.3 all other outstanding obligations of the Participant under the Rules (including 

without limitation the settlement of any outstanding fees or other sums due) 

have been performed.

14. Products

14.1. Operator will determine in its absolute discretion the Products and/or Eligible

Instruments that are available for trading on the iSwap Venue. Any additional Rules with 

respect to the Products are set out in the relevant Market Appendix.

14.2. Eligible Instruments and/or Products will be added or deleted at Operator’s discretion. 

14.3. Any Participant may propose the listing of an instrument by submitting a listing 

application to the Compliance Function.

14.4. iSwap Venue will permit trading only in instruments that are not readily susceptible to 

manipulation and will submit supporting information as per Appendix C of Part 38 of the 
19

Commission regulations when submitting contracts for approval or certification as per 

Part 40 of the Commission regulations.

14.5. See Product Appendix A for product specification.

15. Trading Rules

General Information

15.1. Unless otherwise notified by theOperator,the iSwap Venue is closed fortrading on any

day which is a public holiday in theNetherlands (except where another European market

is open on that public holiday for Products denominated in Euro) and all Dutch weekends.

The trading hours for each Product are set out in the applicable Market Appendix.

15.2. Operator may announce, at its discretion, that commencement of the Trading Day be 

postponed, or that a Trading Day be extended beyond its scheduled duration.

15.3. Where possible, Participants will be given reasonable notice of any change to Trading

Days.

15.4. Operator may, at its discretion, determine the Trading Day for the Products. Trading is 

not permitted outside the TradingDay.

15.5. Participants may submit Orders and Actionable IOIs to the iSwap Venue in accordance 

with the Rules and as further detailed in the relevant Market Appendix.

15.6. Participants are responsible for amending and cancelling any Orders and Actionable IOIs 

they submit to the iSwapVenue.

15.7. Member Participants will be bound by all Orders and Actionable IOIs or commands 

and/or other input information received from their Authorised Traders or from 

Authorised Brokers acting on their behalf.

Required Transactions

15.8. No Participantshall execute a Required Transaction other than via theOrder Book or

Request forQuote procedures as outlined in the relevant Market Appendix.

15.9. Except as otherwise required under the Act or the Commission's regulations, the iSwap 

Venue shall not directly or indirectly, including through a third-party service provider, 

disclose the identity of a counterparty to a swap that is executed anonymously and 

intended to be cleared. The iSwap Venue prohibits any person from directly or indirectly, 

including through a third-party service provider, disclosing the identity of a counterparty 

to a swap that is executed anonymously and intended to be cleared. For purposes of this 

paragraph, “executed anonymously” shall include a swap that is pre-arranged or prenegotiated anonymously, including by a participant of the swap execution facility.
20

For a package transaction that includes a component transaction that is not a swap 

intended to be cleared, disclosing the identity of a counterparty shall not violate Rule 

15.9. For purposes of this paragraph, a “package transaction” consists of two or more 

component transactions executed between two or more counterparties where:

(i) Execution of each component transaction is contingent upon the execution of all 

other component transactions; and

(ii) The component transactions are priced or quoted together as one economic 

transaction with simultaneous or near-simultaneous execution of all components.

Order Size

15.10. Operator may, at its sole discretion, set minimum and/or maximum Order and Actionable

IOIsizes, and any incremental sizes, for any Eligible Instrument as further detailed in the 

relevant Market Appendix.

Pre-Trade Controls

15.11. Operator will determine a specific basis point market price spread, calculated by 

reference to the Market Mid-Price, which will be displayed on the iSwap Venue for each 

Eligible Instrument from time to time. Bids which are higher than the Market Mid-Price 

plus the spread and offers which are lower than the Market Mid-Price minusthe spread

cannot be submitted to the iSwap Venue. In addition, attemptsto submit a matching 

order through the price of the existing best available Order by greater than a predefined margin will be rejected. In both cases the user is sent an error message detailing 

why the attempt wasrejected.

15.12. Operator will enable, through its clearing credit system, the real-time screening of each 

Order for the availability of clearing credit limits provided by a Member Participant.

15.13. Orders and Trades are screened against the credit limits provided by the Member 

Participant in accordance with the Clearing Credit Methodology.

Order Matching

15.14. Participant may submit, amend, or cancel Orders during the trading session prior to a 

Match taking place, subject to any exception detailed in the relevant Market

Appendices.

15.15. Internal Matches can be enabled via the Authorisation Form on a Participant wide or

Inter-Desk basis. Matches are not permitted between Orders from the same Authorised 

Trader, subject to any exception detailed in the relevant Market Appendices.

Prohibition, Removal and Suspension of Trading

15.16. Operator will monitor the operation of the iSwap Venue during the Trading Day.

Operator may in its discretion and without liability prohibit, remove, suspend or cancel, 

as appropriate:
21

15.16.1 an Order or group of Orders, or Actionable IOIs; or

15.16.2 a Trade, or group of Trades, or

15.16.3 a Product, or

15.16.4 an Eligible Instrument(s), or

15.16.5 the iSwap Venue.

15.17. Operator may take any action described in Rule 15.16 : (i) when Operator determines in 

its sole discretion such action is necessary to mitigate market disrupting events caused 

by the improper or erroneous use of the Market or by system defects; or (ii) at any time 

Operator determines, in its sole discretion, that allowing a transaction to stand as 

executed may have a material adverse effect on the integrity of the market; or (iii) when 

Operator determines in its sole discretion such action is necessary to maintain fair and 

orderly trading on the iSwap Venue ; or (iv) when the Operator is required to do so by a

Regulator.

15.18. Operator may without liability suspend or limit access to the iSwap Venue due to 

material technical or operationalissues.

15.19. Whilst access to or trading on the iSwap Venue is suspended for all Participants, no 

further Orders can be submitted and any Orders resting on the iSwap Venue will not be

Matched.

15.20. If trading is suspended, Operator may, at its sole discretion, delete all Orders entered 

onto the iSwapVenue.

15.21. Trading shall recommence in accordance with these Rules, once Operator determines 

that the suspension shall be lifted.

15.22. Operator will notify Participants via Market Notice of any prohibition, removal or

suspension pursuant to Rule 15.16 to 15.18. In the event of any suspension of the iSwap 

Venue, Operator will (to the extent practicable and/or as required by regulation) keep 

Participants informed regarding its availability.

15.23. Operator may engage in other actions during an Emergency in accordance with the 

Emergency Authority Policy. 

16. Trade Cancellations and Error Trades

16.1. All requests to cancel Trades by Participants and all Error Trades shall be treated in 

accordance with the iSwap Trade Review and Error Policy.

16.2. In addition to the authority described in Rule 15, Operator may cancel or reverse, or 

require any Member Participant to cancel or reverse, any Trade:
22

16.2.1 where Operator considers that the Trade appears to be:

(a) contrary to Applicable Law or market conventions, or

(b) prejudicial to fair and orderly trading on the iSwap Venue, or

(c) a breach of, or contrary to the Agreements, or

(d) indicative of market or system abuse or misuse, or

(e) giving a false or misleading impression to the market or any section of it;

16.2.2 where the Operator is required to do so by a Regulator;

16.2.3 where the relevant Clearing House rejects the Trade for clearing;

16.2.4 where, if the Trade is submitted to an exchange, the relevant exchange rejects 

the Trade; or

16.2.5 where the Member Participants who are counterparties to a Trade have 

mutually agreed to cancel the Trade or the Trade is determined to be an Error 

Trade, in each case in accordance with the Trade Review and Error Policy.

16.3. A transaction entered into on or pursuant to the Rules of the iSwap Venue shall not be 

void, voidable, subject to rescission or otherwise invalidated, or rendered unenforceable 

as a result of: (a) a violation by the Venue of the provisions of section 5h of the Act or 

Part 37 of the Commission’s regulations; (b) a Commission or other proceeding to alter 

or supplement a rule, term or condition under section 8a(7) or 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 procedures; or (ii) require the iSwap Venue or Operator to 

adopt a specific term or condition, trading rule or procedure, or to take or refrain from 

taking a specific action.

17. Trade Capture and Confirmation

17.1. Authorised Persons shall receive immediate notification of any Orders Matched via the 

iSwap Venue. The Operator will provide Participants with a written confirmation of all 

of the terms of the transaction that they have entered into on the iSwap Venue, either 

for themselves or on behalf of a Member Participant, at the same time as execution. 

This written record shall legally supercede any previous agreement and serve as the 

confirmation of the transaction.

17.2. Participants must notify Operator immediately upon receipt if they are not in agreement 

with any Trade details.

18. Clearing and Settlement

18.1. Member Participants are responsible for the clearing and settlement of all Trades on the 
23

iSwap Venue. Member Participants must ensure they have the facility to clear and settle 

all Trades on the iSwap Venue in accordance with regulatory requirements and market 

practice. Operator will ensure that it can route transactions to the Clearing House in a 

manner which is acceptable to the Clearing House. Neither Operator nor the iSwap 

Venue are otherwise responsible for the clearing or settlement of any Trades executed 

on the iSwap Venue. 

18.2. All Products available for trading on the iSwap Venue are subject to the Derivatives 

ClearingObligation.

18.3. The Venue's execution methods treat all transactions as being Required Transactions.

18.4. Any Trade executed on the iSwap Venue which is rejected for clearing by the relevant 

Clearing House shall be void ab initio; however, when the trade is rejected due to a 

technical or clerical problem and the Operator knows how to correct the error, it shall 

do so without obtaining the consent of the Participants to the Trade; however when the 

trade is rejected due to a technical or clerical problem and the Operator is unable to 

determine how to correct the error, it shall consult with the Participants to the Trade 

and implement the correction with the consent of both Participants.

18.5. As described in Rule 15.12, the Operator will enable the pre-trade screening for each 

Order of the limits set and maintained by a Member Participant.

18.6. The Operator will send the information related to each Trade executed on the iSwap 

Venue to the relevant Clearing House through an Affirmation Hub as soon as 

technologically practicable after the execution of the Trade.

18.7. Participants must ensure that they auto-affirm the Trades in the Affirmation Hub to 

enable automatic submission to the relevant Clearing House.

18.8. Participants that enter into a swap subject to mandatory clearing under Section 2(h) of 

the Commodity Exchange Act must comply with the mandatory trading requirement 

under section 2(h)(8) of the Commodity Exchange Act.

19. Pre-Trade and Post-Trade Publication

19.1. The Operator will, in accordance with applicable regulatory rules, make public to 

Participants and non-Participants, information about the price, volume and time of 

Orders or Trades on the iSwap Venue. For the avoidance of doubt, this does not restrict 

any rights granted to the Operator by the Participant in the Agreements.

19.2. TheOperatormay seek to obtain and apply a pre-trade transparency waiverin accordance

with article 9 of MiFIR and in such casesinformation relating to Orders may not be made 

available to non-Participants.

19.3. The Operator may seek to obtain and apply a post-trade transparency deferral in 

accordance with article 11 of MiFIR and in such cases information relating to Trades may 

be published on a deferred basis.
24

20. Trade Reporting

20.1. Where applicable, Operator will ensure that Trade reports are submitted in accordance 

with the reporting requirements of the applicable rules. Including but not limited to, 

information required by Commission Regulation 37.901, Part 16 of the Commission 

Regulations and Core Principal 9 as well as complying with the Transaction Reporting 

requirements under MiFIR

20.2. Member Participants remain responsible for fulfilling their own Trade reporting

requirements. 

20.3. iSwap will report all Trades to the SDR as soon as technologically practicable after 

execution. All real time data as required by Part 43 of the Commission Regulations and

creation data required by Part 45 of the Commission Regulations will be reported to the

SDR. Participants are hereby notified that the SEF discloses swap transaction and pricing 

data for publicly reportable swap transactions prior to the public dissemination of such 

data by the SDR. This data is available to all Participants and is disclosed to such 

Participants contemporaneously with the transmission of the data to the SDR for public 

dissemination.

20.4. When the Reporting Counterparty cannot be established in accordance with the logic in 

Commission Regulation 45.8, then the ISDA Asset Class Tie-Breaker Logic developed by 

the International Swaps and Derivatives Association (ISDA) shall apply. 

21. Information and Data

General

21.1. Operator may offer access to data feeds and/or other market information as part of its 

services. A separate charge or charges may be levied forsuch services offered by ICAP.

Data visible on the iSwap Venue or provided by theOperator via an API or other data feed

will be identifiable as either indicative (non-tradable) or tradable data and may only be

used by the Participant for the purposes of placing Orders and executing Trades on the 

iSwap Venue, unless otherwise agreed in writing.

21.2. iSwap will capture and retain all transaction data, including bids/offers, request for

quotes(RFQ) and Trades, whether accepted, unaccepted, cancelled or modified, so as to 

be able to reconstruct all transactions within a reasonable time period. iSwap will use 

this database in order to reconstruct trading and identify possible violations.

21.3. iSwap shall keep, or cause to be kept, all books and records required to be maintained 

pursuant to the Act and Commission Regulations, including Commission Regulations 

37.1001 (Recordkeeping) and 45.2(a) (Swap Recordkeeping). 

21.4. iSwap shall not use for business or marketing purposes any proprietary data or personal 

information it collects or receives, from or on behalf of any person, for the purpose of 

fulfilling its regulatory obligations; provided, however, that iSwap may use such data or 
25

information for business or marketing purposes if the person from whom it collects or 

receives such data or information clearly consents in writing to iSwap's use of such data 

or information in such manner. iSwap shall not condition access to its markets or market 

services on a person's consent to iSwap Euro's use of proprietary data or personal 

information for business or marketing purposes. iSwap, where necessary for regulatory 

purposes, may share such data or information with one or more swap execution 

facilities or designated contract markets registered with the Commission. 

21.5. iSwap shall retain all such books and records for the life of each Swap transacted 

pursuant to these Rules and five years following the termination of such a Swap, and 

shall make such books and records readily accessible for inspection, in each case in the 

form and manner required under the Act and Commission Regulations, including 

Commission Regulations 37.1001 (Recordkeeping) and 45.2(a) (Swap Recordkeeping).

21.6. iSwap shall report to the Commission, in a form and manner acceptable to the

Commission, such information as the Commission determines to be necessary or 

appropriate for the Commission to perform the duties of the Commission under the Act.

Market Mid-Price

21.7. The iSwap Venue calculates a mid-marketreference rate called the Market Mid-Price for

each outright Eligible Instrument and for each Market on the iSwap Venue. The Market 

Mid-Price is continually updated according to the value of Eligible Market Mid-Price 

Orders, as defined below, on the iSwap Venue.

21.8. Ordersthat will be counted as Eligible Market Mid-Price Orders are, in respect of an

Eligible Instrument, Orders where the Ordersize is greater than a pre-defined multiple (as 

determined by the Operator) of the minimum Order size for that Eligible Instrument. The 

following Orders will not be Eligible Market Mid-Price Orders:

21.8.1 Min Clip, AON or Non Display Limit Orders;

21.8.2 Orders where there is a bid but no offer; and

21.8.3 Orders where the bid-offer spread is wider than a pre-defined value, as 

determined by theOperator.

21.9. If a Trade results from an Eligible Market Mid-Price Order, the Market Mid-Price will 

adjust to reflect the actual Trade price of such Eligible Market Mid-Price Order for a 

specific period of time.

21.10. In the absence of any Eligible Market Mid-Price Order on the iSwap Venue, the Market 

Mid-Price will be the mid-price of the Eligible Instruments as shown on the ICAP market 

data pages, published on Reuters or Bloomberg.

21.11. Internal Matches will not impact the Market Mid-Price.
26

22. Algorithmic Trading

22.1. Member Participants wishing to engage in Algorithmic Tradingmust ensure that

Algorithmic Trading is controlled and organised in accordance with the requirements of

MiFID II, and that their Algorithmic Trading is monitored by them to prevent disorderly

trading on the iSwap Venue.

22.2. Member Participants wishing to engage in Algorithmic Trading must, prior to the 

deployment or any substantial update of any trading algorithm:

22.2.1 Undertake conformance testing; and

22.2.2 Provide a certification to the Operator that the algorithms employed by the 

Member Participant have been tested to avoid contributing to, or creating, 

disorderly trading conditions and explain the means used for such testing.

22.3. All Algorithmic Trading should be identified by the Member Participant assuch and must

be routed to the iSwap Venue via trading permissions attributed to an Authorised 

Algorithmic Trader.

23. Market Making

23.1. Member Participants engaged in Algorithmic Trading pursuing a market making strategy

on the iSwap Venue shall enter into a Market Making Agreement with the Operator.

23.2. Operator may from time to time adopt one or more programmes under which one or 

more Member Participants may be approved and designated as market makers with 

respect to one or more Product and/or Markets in order to provide liquidity and 

orderliness in a Product and/or Market (a “Market Maker Programme”).

23.3. Any Market Maker Programme adopted pursuant to Rule 23.1 may provide for one or 

more of the following:

23.3.1 additional eligibility criteria or other qualifications, including minimum net 

capital requirements, that any such market maker must satisfy;

23.3.2 the procedure by which Member Participants may apply for, and obtain, 

designation as a marketmaker;

23.3.3 the ongoing obligations of such market maker, including without limitation, any 

applicable minimum bid/offer and spread commitments;

23.3.4 the benefits accruing to such market makers which may include, without 

limitation, reduced transaction fees; and

23.3.5 the requirement that such designated market makers agree to abide by these

Rules and the rules of the Market Maker Programme.
27

24. Co-operation with Regulators

24.1. Operator will report any significant breaches of the Rules, disorderly trading conditions 

or conduct which gives rise to a suspicion of market abuse to the AFM, the FCA, the 

Commission, or other relevant Regulator.

24.2. Operator will provide full assistance to, and will also supply any relevant information 

without delay to, the AFM, the FCA, the Commission, or other relevant Regulator.

25. Complaints

25.1. Any complaint about the conduct of a Participant or any suspicion that any Participant 

has committed or about to commit a breach of these Rules, or any other complaint 

related to the iSwap Venue, should be made in writing and addressed to:

Compliance Officer, iSwap Euro B.V.

Vijzelstraat 68, unit 109

1017 HL Amsterdam

The Netherlands

26. Taxes and Fees

26.1. Member Participants are liable for the payment of any applicable taxes, fees, duties, or 

levies that arise in connection with the trading of Eligible Instruments on the iSwap

Venue.

27. Confidentiality

27.1. Operator will treat as confidential any information received from a Participant, including,

where applicable, any credit settings, in relation to its business on the iSwap Venue, 

except where:

27.1.1 the information is publicly available; or

27.1.2 disclosure is required by law or any tax authority or Regulator having 

jurisdiction; or

27.1.3 disclosure is made in the interests of co-operation with any regulatory 

investigation conducted by a relevant Regulator;or

27.1.4 disclosure is made for the protection of the market and the maintenance of high 

standards in integrity and fair dealing;or

27.1.5 the Participant has consented to the disclosure in writing.

28. Amendments and Notices

28.1. Operator may, in its absolute discretion, at any time supplement or implement new
28

Rules, amend existing Rules, or revoke Rules in whole or in part. Participants will be 

informed of any such change by the issuing of a Market Notice.

28.2. Market Noticesform part ofthe Rules. Such changes will be effective atsuch time as

specified in the relevant Market Notice. Unless otherwise required by a Regulator or by 

Applicable Law, any such change shall not apply retrospectively.

28.3. If the change to the Rules is:

28.3.1 material, the Operator will give Participants reasonable notice before such 

change comes into effect; or

28.3.2 non-material, the Operator may make such change without issuing notice in 

advance of the change to Participants.

29. Governing Law

29.1. These Rules and all non-contractual or other obligations arising out of orin connection

with them shall be governed by, and shall be construed in accordance with Dutch Law.

29.2. The parties hereby submit to the non-exclusive jurisdiction of the courts of Amsterdam, 

the Netherlands in relation to any legal action or proceeding arising out of or in 

connection with these Rules. Insofar allowed by the relevant courts, the proceedings 

shall be conducted in English.

29.3. All parties (including Authorised Persons) acknowledge and submit to the jurisdiction of 

the Venue.
29

Trading Standards

Market Appendix 3 to the Venue Rulebook – Trading Standards
30

Market Appendix 3 - Trading Standards

1) Fraudulent Statements and Acts

a) No Participant shall make or attempt to make any untrue or misleading statement of a 

material fact or to omit to state a material fact necessary in order to make the statements 

made not untrue or misleading, in connection with or related to any transaction on or other 

activity related to iSwap.

b) No Participant or other Person shall engage or attemptto engage, directly orindirectly, in any 

fraudulent act, practice, or course of business which operates or would operate as a fraud 

or deceit upon any person or any manipulative device, scheme, or artifice to defraud, 

deceive, trick or mislead another person (including iSwap) in connection with or related to 

any transaction on or other activity related to the SEF, including trading ahead of customer

orders, improperly trading against customer orders, improper crosstrading, accommodation

trading, or front running.

2) Abusive Trading Practices

a) No Participant shall create fictitious or wash transactions or execute any Bid/Offer for 

a fictitious or wash transaction with knowledge of its nature.

b) No Participant shall engage in trading for the purpose of passing money or 

transferring equity from one account to another.

c) No Participant shall engage in front running, accommodation trading or improper 

cross trading.

3) Good Faith Bids/Offers

a) A Participant shall not knowingly enter, or cause to be entered, a Bid/Offer or RFQ 

other than in good faith for the purpose of executing bona fide transactions.

b) A Participant shall not knowingly enter, or cause to be entered, a Bid/Offer or RFQ unless 

such Participant has sufficient funds to provide the required collateral for the related 

Trade should the Trade be executed.

4) Pre-Execution Discussions and Pre-Arranged Transactions

a) No Participant shall prearrange or pre-negotiate or non-competitively execute any 

transaction except as follows:

i. To comply with a request of the Commission, the US Department of Justice, any SRO 
31

or an applicable prudential regulator including but not limited to the AFM, FCA or as 

otherwise required by law.

5) Manipulation and Price Distortion

a) Any manipulation or attempted manipulation of the price of any Trade is prohibited.

b) Bids/Offers entered into a Trading Platform for the purpose of upsetting the 

equilibrium of the market in any Trade or creating a condition in which prices do not 

or will not reflect fair market values are prohibited and it shall also be prohibited for 

any Participant to make or assist in entering any such Bid/Offer with knowledge of the 

purpose thereof or, with such knowledge, to assist in carrying out any plan or scheme 

for the entering of any such Bid/Offer.

c) Any other manipulative and disruptive behaviour not otherwise prohibited by the 

Rules is prohibited to the extent prohibited by the Act or Commission Regulations, 

including but not limited to Commodity Exchange Act Sections 6(c)(Prohibiting

manipulation and attempted manipulation), 9(a)(2)(Defining as a felony certain 

manipulative conduct), 4c(a)(5)(A) (Prohibiting trading that violates bids or offers) and 

(C)(Prohibiting spoofing) and Commission Regulations 180.1(a)(Prohibiting the use or 

attempted use of manipulative and deceptive devices) and 180.2(Prohibiting price 

manipulation).

6) Disruptive Trading Practices

a) No Participant shall enter or cause to be entered any Bid/Offer or other message with 

the intent to adversely impact, or with reckless disregard for the adverse impact on, 

the orderly conduct of trading or the fair execution of transactions.

b) No Participant shall enter or cause to be entered any Bid/Offer or other message with 

the intent to:

1 Mislead other Participants

2 Overload, delay or disrupt the iSwap Venue systems.

3 Disrupt the orderly conduct of trading of the fair execution of transactions.

c) No Participant shall engage in any trading, practice or conduct on the iSwap Venue or 

subject to the Rules that (i) demonstrates intentional or reckless disregard for the 

orderly execution of transactions during the closing period; (ii) is, is of the character 

of, or is commonly known to the trade as, "spoofing" (entering a Bid/Offer with the 

intent to cancel the Bid/Offer before execution); or (iii) is any other manipulative or 

disruptive trading practice prohibited by the Act or Commission Regulations.
32

7) General Offences

a) It will be an offence for a Participant to:

i. violate any Rule regulating the conduct or business of a Participant or any agreement 

made with iSwap;

ii. engage in any act detrimental to iSwap's operations or self-regulatory function or 

iSwap’s ability to enforce its Rules or is detrimental to its interest or welfare;

iii. fail to observe the proper standards of conduct expected of market participants;

iv. engage in any conduct which tends to impair the dignity or good name of the iSwap 

Venue;

v. engage in conduct inconsistent with just and equitable principles of trade;

vi. engage in dishonourable or uncommercial conduct;

vii. aid or abet the commission of any Violation by another person;

viii. fail to supervise its employees or agents in the conduct of the Participant's business 

related to the iSwap Venue, including, but not limited to establishing, maintaining and 

administering supervisory procedures that are reasonably designed to ensure 

compliance with the Rules;

ix. engage in conduct in violation of Applicable Law or the rules of any Derivatives 

Clearing Organization which clears a Cleared Trade in connection with or related to 

any transaction on or other activity; and.

x. to, directly or indirectly, make or attempt to make any misstatement of a material fact 

to iSwap (including the Board, any committee, any disciplinary panel or appeals panel 

or any iSwap official) or omit to state a material fact necessary in order to make the 

statement made, in the light of the circumstances under which they were made, not 

untrue or misleading.

8) Position Limits and Position Accountability

a) To reduce the potential threat of market manipulation or congestion, the iSwap 

Venue shall adopt for each Trade, as is necessary and appropriate, Position Limits or 

position accountability levels for speculators.

b) iSwap hereby adopts the Commission's Position Limits for any Trade for which the 

Commission has adopted a Position Limit. In no event will iSwap set its Position Limits 

at a level higher than the Commission's Position Limits.

c) All Participants must comply with all iSwap and Commission requirements regarding 
33

Position Limits or position accountability levels.

d) Each Participant required to file any report, statement, form or other information with 

the Commission pursuant to Commission Regulations concerning a Position Limit on 

any Trade or commodity underlying a Trade must simultaneously file a copy of such 

report, statement, form or other information with iSwap.

e) Any Participant who exceeds an iSwap or Commission Position Limit by entering into a 

transaction on the iSwap Venue shall be deemed in Violation. In addition, any 

Participant entering bids or offers, if accepted, which would cause that Participant to 

exceed the applicable iSwap or Commission Position Limit, shall be in Violation.

f) Without limiting any provision of these Rules, iSwap shall have the authority to obtain

from any Participant, on request, information with respect to all positions of such 

Participant in Trade which are equivalent, for purposes of iSwap or Commission 

Position Limits, to those transacted in by the Participant on the iSwap Venue.

9) Recordkeeping

a) The iSwap Venue only permits the following customer type indicator (“CTI”) code for 

Order, RFQ or response to an RFQ:

a. CTI 1 - Transactions initiated and executed by a Participant for its own 

account, for an account it controls or for an account in which it has an 

ownership or financial interest.

b) CTI 1 will be the default CTI code for all Orders, RFQs or responses to RFQs but each 

Participant may assign a different CTI to its Orders, RFQs or responses to RFQs.
34

Disciplinary Procedures

Market Appendix 4 to the Venue Rulebook – Disciplinary Procedures
35

Market Appendix 4 – Disciplinary Procedures

1) Jurisdiction

a) iSwap shall have the authority to initiate and conduct investigations, and prosecute 

Violations committed by Participant’s staff, and to impose sanctions for such Violations as 

provided in these Rules.

b) Each Participant, upon becoming a Participant and thereafter upon any change of address 

shall file with iSwap a written notice designating an address for receiving service of 

documents. If a Participant fails to designate such an address, service by mail to its 

address on file with iSwap shall be good service, and delivery thereof shall be deemed to 

have occurred as of the date of such mailing.

2) iSwap Venue Compliance Function Powers and Duties

a) It shall be the duty of the Compliance Function to enforce these Rules, and shall have the 

authority to inspect the books and records of all Participants and the authority to require 

any Participants staff to appear before it to answer questions regarding matters being 

investigated. The Compliance Function shall ensure that surveillance systems are 

established to monitor trading to prevent manipulation, price distortion and any other 

form of market abuse, identify system disruptions and otherwise ensure compliance with 

these Rules. Such monitoring shall include real-time monitoring and the ability to conduct 

comprehensive and accurate transaction reconstructions.

b) The Market Regulation Staff (as described in the Compliance Manual) shall conduct 

investigations of possible Violations, prepare written reports respecting such 

investigations, furnish such reports to the Review Panel and conduct the prosecution of 

such Violations. An investigation must be commenced upon receipt of a request from any 

Regulatory Agency, its staff or receipt of information (such as data produced by 

automated surveillance systems) by iSwap that in the judgment of the Compliance 

Function indicates a reasonable basis for finding that a Violation may have occurred or will 

occur. Absent mitigating factors, each investigation will be completed no later than 12 

months after the investigation is opened. Mitigating factors include the complexity of the 

investigation, the number of firms or individuals involved as potential wrongdoers, the 

number of potential Violations to be investigated and the volume of documents and data 

to be examined and analysed by the Market Regulation Staff.

c) If the Compliance Function or another member of the Market Regulation Staff designated 

for this purpose by the Compliance Function concludes that there is a reasonable basis for 

finding a Violation, he or she shall (i) present an investigation report concerning the 

matter to the Review Panel or (ii), in the case of Violations subject to summary suspension 

under section 14) or summary fines under section 16) proceed in accordance with section 

14) or section 16), as applicable. The investigation report must include the reason the 
36

investigation was initiated; a summary of the complaint, if any; the relevant facts; analysis 

and conclusions; and a recommendation as to whether disciplinary action should be 

pursued. The report may also include the Participants staff's disciplinary history, including 

copies of any warning letters. The Compliance Function may issue a warning letter, 

including for minor transgressions. However, no more than one warning letter may be 

issued to the same person found to have committed the same Violation more than once 

in a rolling 12-month period.

d) If, in any case, the Compliance Function concludes that no reasonable basis exists for 

finding a Violation, he or she must prepare a written investigation report including the 

reason the investigation was initiated; a summary of the complaint, if any; the relevant 

facts; and analysis and conclusions. The Compliance Function may issue a warning letter in 

any case where it is concluded that no reasonable basis exists for finding a Violation, 

without limitation on the number of warning letters issued to a person.

e) Before presenting an investigation report to the Review Panel, the Market Regulation 

Staff may, in its sole discretion, inform the Participant that it intends to submit the matter 

to the Review Panel, and at such time the Participant may submit an offer of settlement 

to the Hearing Panel, in accordance with the procedures section 9), prior to presentation 

of the investigation report to the Review Panel.

iSwap shall have the right with such prior reasonable advance notice as is practicable 

under the circumstances (unless in furtherance of regulatory purposes in which case 

without prior notice), in connection with determining whether all Rules are being, will be, 

or have been complied with, to: (i) inspect systems, equipment and software of any kind 

operated by the Participant in connection with accessing and Trading, wherever located; 

(ii) access, either physically or electronically, the systems, equipment, software, and the 

premises on which the systems, equipment, and software are located, any data stored in 

any of the systems or equipment, during the regular business hours; and/or (iii) copy or 

reproduce any data to which iSwap has access under this Rule. 

3) The Review Panel

a) The Review Panel shall have the power to direct that an investigation of any suspected 

Violation be conducted, and shall hear any matter referred to it regarding a suspected 

Violation.

b) The Review Panel shall be appointed by the Board. The Board shall appoint as chairman 

(the "Review Panel Chairman") of the Review Panel a person who would not be 

disqualified from serving as a director in accordance with CFTC Regulation 1.64(b). Three 

panel members shall constitute a quorum for any action, so long as they are in attendance 

at the time of the relevant action. The Review Panel shall not include any members of the 

compliance staff, any person involved in adjudicating any other stage of the same 

proceeding, or any person with a history of disciplinary offenses that would be 
37

disqualifying under CFTC Regulation § 1.63(c). The Review Panel shall include at least one 

member that is not a Participant of the iSwap Venue when the suspected Violation 

involves manipulation (or attempted manipulation) of the price of a Contract or conduct 

which directly results in financial harm to a non-Participant of the iSwap Venue. The 

Review Panel shall include sufficient different membership interests so as to ensure 

fairness and to prevent special treatment or preference for any person.

c) All information, records, and documents provided to the Review Panel, and all related 

records and documents shall be treated as confidential and shall not be disclosed, except 

as necessary to further a iSwap investigation or as required by Applicable Law.

d) Upon receipt of an investigation report, the Review Panel shall promptly review the report 

and, within thirty (30) days of receipt, take one of the following actions:

i. if the Review Panel determines that additional investigation or evidence is 

needed, it shall promptly direct the Compliance Function to conduct 

further investigation;

ii. 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 must include a written statement setting forth the facts and analysis 

supporting the decision; or

iii. if the Review Panel determines that a reasonable basis exists for finding a 

Violation and adjudication is warranted, it must direct that the Facility 

Subject Person alleged to have committed the Violation be served with a 

notice of charges as set forth in section 4.

e) If the Review Panel determines that there may have been a Violation but that no 

adjudication is warranted, the Review Panel may issue a warning letter informing that 

there may have been a Violation and that such continued activity may result in disciplinary 

sanctions. Where a Violation is determined to have occurred, no more than one warning 

letter for the same potential Violation may be issued to the same person during a rolling 

12 month period.

4) Notice of Charges

a) If the Review Panel determines that a reasonable basis exists for finding a Violation and 

adjudication is warranted, the Compliance Function shall serve a notice of charges (a 

"Notice") on the person alleged to have been responsible for the Violation (the 

"Respondent"). Such Notice shall state:

i. the acts, practices or conduct with which the Respondent is charged;

ii. the Rules allegedly violated and how such acts, practices or conduct 
38

constitute a Violation of such Rules;

iii. that the Respondent is entitled, upon written request filed with iSwap, 

within thirty (30) days of service of the Notice, to a formal hearing on the 

charges;

iv. that the failure of the Respondent to request a hearing within thirty 

(30) days of service of the Notice, except for good cause shown, shall be 

deemed a waiver of its right to a hearing;

v. that the failure of the Respondent to file an Answer (as defined in 

section 5) with the Compliance Function within thirty (30) days of service of 

the Notice shall be deemed an admission of all of the acts, practices or 

conduct alleged in the Notice; and

vi. that the failure of the Respondent to expressly deny a particular 

charge contained in the Notice shall be deemed an admission of such acts, 

practices or conduct.

b) A Respondent shall have the right to be represented by legal counsel or any other 

representative of its choosing in all succeeding stages of the disciplinary process, except 

by any member of the Board, Review Panel or Hearing Panel, any employee of iSwap or 

any person substantially related to the underlying investigation, such as a material witness 

or Respondent.

5) Answer; Request for Hearing; Failure to Answer or Deny Charges

a) The Respondent shall serve on the Compliance Function a written answer (an "Answer") 

to the Notice and a written request for a hearing on the charges within thirty (30) days of 

the date of service of the Notice. The Answer must include a statement that the 

Respondent admits, denies, or does not have and is unable to obtain sufficient 

information to deny each allegation. A statement of lack of sufficient information shall 

have the effect of a denial of the allegation.

b) The Respondent's failure to file an Answer within such thirty (30) day period shall be 

deemed an admission of all allegations contained in the Notice.

c) The Respondent's failure to expressly deny a particular charge contained in the Notice 

shall be deemed an admission of such acts, practices or conduct.

d) The Respondent's failure to request a hearing within such thirty (30) day period, absent 

good cause shown, shall be deemed a waiver of Respondent's right to a hearing.
39

6) Selection of Hearing Panel

a) Formal hearings on any Notice shall be conducted by the Hearing Panel selected by the 

Board. The Board shall also select, as chairman of the Hearing Panel ("Hearing Panel 

Chairman"), a person who would not be disqualified from serving as a director in 

accordance with CFTC Regulation 1.64(b). The Hearing Panel Chairman, in his or her sole 

discretion, shall set a date for the hearing (the "Hearing Date"). The Hearing Panel shall 

not include any members of the compliance staff, any person involved in adjudicating any 

other stage of the same proceeding, or any person with a history of disciplinary offenses 

that would be disqualifying under CFTC Regulation § 1.63(c). The Hearing Panel shall 

include at least one member that is not a Participant of the iSwap Venue when the 

suspected violation involves manipulation (or attempted manipulation) of the price of a 

Contract or conduct which directly results in financial harm to a non-Participant of the

iSwap Venue. The Hearing Panel shall include sufficient different membership interests so 

as to ensure fairness and to prevent special treatment or preference for any person.

b) The Hearing Panel Chairman shall notify the Compliance Function and the Respondent of 

the Hearing Date and the names of the members of the Hearing Panel at least fifteen (15) 

days prior to the Hearing Date.

c) No member of the Hearing Panel shall hear a case in which that member has a direct 

financial, personal, or other interest in the matter under consideration.

7) Challenge to Members of the Hearing Panel

a) Within ten (10) days after service on the Respondent of notice of the Hearing Date and 

names of the members of the Hearing Panel, the Respondent may challenge, in writing, 

the inclusion of any member of the Hearing Panel for cause, including without limitation, 

if the member has a direct financial, personal or other interest in the matter under 

consideration. The merits of such challenge shall be finally decided by the Regulatory 

Oversight Committee. If said written challenge is not received within such ten (10) day 

period, absent good cause shown, any such right to challenge is deemed waived.

8) Hearing on Sanctions in the Event of Failure to Deny Charges; Failure to Request 

Hearing Deemed Acceptance of Sanctions

a) In the event the Respondent fails to file an Answer or admits or fails to deny the charge of 

a Violation contained in the Notice, the Hearing Panel shall find the Respondent guilty of 

each such Violation and may impose a sanction for each such Violation subject to the 

limitations set forth in section 11 b vii. The Hearing Panel shall promptly notify the 

Respondent of any such sanction and of the Respondent's right to a hearing on the 

sanction within the period of time which shall be stated in the Notice, after the imposition 
40

of such sanction. Failure to request a hearing on the sanction in a timely manner, absent 

good cause shown, shall be deemed to be acceptance of the sanction.

9) Settlement Prior to Commencement of Hearing

a) Prior to the commencement of the hearing, the Hearing Panel may accept a written offer 

of settlement from the Respondent, whereby the Respondent, without either admitting or 

denying any Violations, may agree to:

i. a cease and desist order;

ii. a fine for each Violation plus the monetary value of any benefit received as a 

result of the Violation (provided that in no case shall any fine exceed €100,000 

per Violation);

iii. restitution of any counterparty harm; and/or

iv. revocation or suspension of Trading Privileges or Participant firm status of the 

Respondent.

b) If the Hearing Panel accepts an offer of settlement, it must issue a written decision 

specifying each Violation it has reason to believe was committed, including the basis for 

the Hearing Panel's conclusions. The sanctions must include full counterparty restitution 

where counterparty harm is demonstrated, except where the amount of restitution or to 

whom it should be provided cannot be reasonably determined. If an offer of settlement is 

accepted without the support of the Compliance Function, the decision must adequately 

support the Hearing Panel's acceptance of the settlement. Where applicable, the decision 

must include a statement that the Respondent has accepted the sanctions imposed 

without either admitting or denying any Violations. Any sanctions imposed pursuant to an 

offer of settlement must take into account the Respondent's disciplinary history.

c) The Respondent may withdraw an offer of settlement at any time before final acceptance 

by the Hearing Panel. If an offer is withdrawn after submission, or is rejected by the 

Hearing Panel, the Respondent may not be deemed to have made any admissions by 

reason of the offer of settlement and may not be otherwise prejudiced by having 

submitted the offer of settlement.

10) Hearing Procedures

a) In every instance where a Respondent has requested a hearing on a charge that is denied, 

or on a sanction set by the Hearing Panel pursuant to section 8), the Respondent will have 

the opportunity for a hearing in accordance with the procedures of this Rule.
41

b) The Hearing Panel shall determine the procedures to be followed in any hearing before it, 

except that the following shall apply in every case:

i. The hearing must be fair and must be promptly convened after reasonable notice 

to the Respondent.

ii. The prosecution shall be conducted by the Compliance Function.

iii. The Respondent shall be allowed to appear personally at the hearing, and to be 

represented by legal counsel or any other representative of its choosing and, 

either personally or through such representative, to present witnesses and 

documentary evidence and to cross-examine witnesses.

iv. The Compliance Function and the Respondent shall deliver to each other a 

statement listing the witnesses expected to be called and the documents 

expected to be introduced into evidence, together with copies of such 

documents, by ten (10) days' prior notice to the hearing or as the Hearing Panel 

may reasonably specify. Unless the Hearing Panel, in its discretion, waives 

compliance with this requirement, no witness may testify and no documentary 

evidence may be introduced into evidence unless listed in and, in the case of 

documents, furnished with such statement. On written request, the Compliance 

Function shall provide the Respondent with access to all books, documents or 

other tangible evidence in the possession or under the control of iSwap which 

are to be relied upon by the Compliance Function or which are relevant to the 

charges; provided, however, that protected attorney work product, attorneyclient communications and investigative work product, including the 

investigation report, are neither discoverable by a Respondent nor subject to 

review by a Respondent as part of the investigation file.

v. iSwap shall require that persons within its jurisdiction who are called as 

witnesses participate in the hearing and produce evidence, and will make 

reasonable efforts to secure the presence of all other persons called as 

witnesses whose testimony would be relevant. Failure by a person to so 

participate and produce evidence when requested by iSwap shall be a 

Violation.

vi. No formal rules of evidence shall apply, and the Hearing Panel shall be free to 

accept or reject any and all evidence it considers proper, but the hearing may 

not be so informal as to deny a fair hearing.

vii. Neither the Compliance Function, the Respondent, any witnesses testifying 

before the Hearing Panel nor any other person within the Facility's jurisdiction 

shall engage in conduct that may impede the progress of a hearing or the fair 

and just resolution of the subject matter thereof, and any such conduct may 
42

itself constitute a Violation.

viii. Ex parte contacts by any of the parties with members of the Hearing Panel 

shall not be permitted.

ix. A substantially verbatim record capable of being accurately transcribed shall be 

made of the proceeding, provided, however, that such record need not be 

transcribed, unless the transcript is requested by the Respondent or an 

applicable regulator, or unless the decision is appealed to the Commission or 

reviewed by the Commission on its own motion. In all other instances, a 

summary record of the hearing is permitted.

x. The cost of transcribing the record of the hearing must be borne by a 

Respondent who requests the transcript, or whose application for Commission 

review of the disciplinary action has been granted. In all other instances, the 

cost of transcribing the record will be borne by iSwap.

xi. The Notice, the Answer, any stenographic transcript of the hearing, the 

documentary evidence and any other material presented to the Hearing Panel 

by either party with notice to the other shall constitute the record of the 

hearing (the "Hearing Record").

xii. The burden of proof shall be on the prosecution to prove a Violation by a 

preponderance of the evidence. A finding of a Violation shall be made by 

majority vote based on the Hearing Panel's decision as to the weight of the 

evidence contained in the Hearing Record.

xiii. All sanctions imposed by the Hearing Panel must be commensurate with the 

Violations committed and must be clearly sufficient to deter additional similar 

Violations by the Respondent and similar Violations by other persons. All 

sanctions must take into account the Respondent's disciplinary history. In the 

event of demonstrated counterparty harm, any sanctions must include full 

counterparty restitution, except where the amount of restitution or to whom it 

should be provided cannot be reasonably determined.

11) Written Decision of Hearing Panel

a) Promptly following a hearing conducted in accordance with the Rules, the Hearing Panel 

shall render a written decision based upon the weight of evidence in the Hearing Record 

and must provide a copy to the Respondent within thirty (30) days of such decision.

b) The written decision shall include:

i. the name of the Respondent;
43

ii. a summary of the charges alleged in the Notice;

iii. a summary of the Answer;

iv. a summary of the evidence produced at the hearing or, where appropriate, 

incorporation by reference of the investigation report;

v. a statement of the findings and conclusions of the Hearing Panel with respect 

to each charge, and a complete explanation of the evidentiary and other basis for such 

findings and conclusions with respect to each charge, or in the event of a settlement, a 

statement specifying the alleged Violations;

vi. an indication of the Contract involved, if any, and each specific Rule that the 

Respondent was found to have violated and whether the Violation resulted in any 

financial harm to any Participants;

vii. an order stating any sanctions imposed, including the basis for the sanctions, 

any terms of the sanctions, the date the determination to impose sanctions was made 

and the effective date of such sanctions; the sanctions that may be imposed on the 

Respondent shall be one or more of the following:

1. a cease and desist order;

2. a fine for each Violation plus the monetary value of any benefit received 

as a result of the Violation (provided that in no case shall any fine exceed 

€100,000 per Violation);

3. restitution of counterparty harm, except where the amount of restitution 

or to whom it should be provided cannot be reasonably determined; 

and/or

4. the issuance of a suspension or revocation of Trading Privileges or 

Participant firm status of the Respondent; and

5. a statement informing the respondent that the imposition of sanctions 

may be appealed to the Commission pursuant to Part 9 of the Commission 

Regulations.

c) The Hearing Panel shall take into consideration the Respondent's disciplinary history prior 

to imposing any disciplinary sanctions.

d) If iSwap suspends or revokes the Trading Privileges Participant firm status of the 

Respondent, or otherwise disciplines the Respondent, it must publicly publish and 

maintain on its website the information contained in the written notice pursuant to 

section 11 b.
44

12) Liability for Expenses

a) Any Respondent that, after notice and opportunity for hearing, has been found to have 

committed a Violation may, in the discretion of the Hearing Panel appointed in the matter, be 

required to pay to iSwap an amount equal to any and all reasonable and documented out-ofpocket expenses incurred by iSwap in connection with the prosecution of such Violations, in 

addition to any fine or other monetary sanction which may be imposed upon such Respondent 

by virtue of the Violations found by the Hearing Panel.

13) Effective Date of Sanctions

a) If a Respondent submits an offer of a settlement to the Hearing Panel, any sanction 

included as a part of such settlement shall become final and effective on the date that the 

Hearing Panel approves such settlement, or on such other date as is specified in the 

decision.

b) Subject to section 13 c) and d), any decision (including any sanctions) by a Hearing Panel 

pursuant to the Rules or the Participation Committee (or Board acting in such capacity) 

pursuant to section 13) shall be the final decision of iSwap and shall become effective 

fifteen (15) days, or such longer time as the Hearing Panel or Participation Committee (or 

Board acting in such capacity) may specify, after a copy of the written decision of the 

Hearing Panel or Participation Committee (or Board acting in such capacity) has been 

served on the Respondent, applicant, or Participant as applicable.

c) In any case where a Respondent, applicant or Participant has consented to the action 

taken and to the timing of its effectiveness, the Hearing Panel or Participation Committee 

(or Board acting in such capacity) may cause the decision involving any disciplinary action 

(including any sanctions) to become effective prior to the fifteen (15) day period.

d) Any decision (including any sanctions) by a Hearing Panel or the Participation Committee 

(or Board acting in such capacity) may become effective prior to the time set forth in 

section 13b) if:

i. iSwap reasonably believes, and so states in its written decision, that immediate 

action is necessary pursuant to section 14a);

ii. iSwap determines and so states in its written decision, that the actions of a person 

have impeded the progress of a disciplinary hearing; or

iii. iSwap determines a person has violated Rules relating to timely submission of 

accurate records required for clearing or verifying each day's transactions or other 

similar activities.
45

e) If a decision is to become effective earlier than the time set forth in section 13 b) pursuant 

to section 13c) or d), iSwap shall notify the Respondent, applicant or Participant in writing 

stating he reasons for the determination and shall notify the Commission in accordance 

with the requirements of Part 9 of the Commission Regulations.

f) Any fine or other monetary sanction imposed by a Hearing Panel shall be due and payable 

on the effective date of the decision imposing such fine or sanction, or on such later date 

as the Hearing Panel may specify.

14) Summary Suspension

a) A person (as identified by Compliance Function in an investigation or by a Trading 

Privilege Holder acting as an Intermediary for such person) may be summarily and 

immediately suspended from trading on the iSwap Venue, upon a written determination 

based on a reasonable belief, by the Chairman of the Regulatory Oversight Committee 

that such immediate action is necessary to protect the best interest of the market place.

b) The person against whom such summary action is taken pursuant to paragraph (a) or (b) 

of this section 14) shall be served with a Notice of the action either before the action is 

taken or at the earliest possible opportunity thereafter. The Notice shall state the action 

taken, the reasons for the action, the effective date and time, and the duration of the 

action.

c) The person may, upon written request, have a hearing as soon as practicable before the 

Hearing Panel pursuant to the procedures of section 10).

d) Promptly following the hearing, the Hearing Panel shall render a written decision based 

upon the weight of the evidence in the record and shall provide a copy to the person. The 

decision shall include a description of the summary action taken, the reasons for the 

summary action, a summary of the evidence produced at the hearing, a statement of 

findings and conclusions, a determination that the summary action should be affirmed, 

modified or reversed, a declaration of any action to be taken pursuant to the 

determination, and the effective date and duration of the action.

15) Extension of Time Limits

a) Any time limit provided for in the Rules may be extended by mutual consent of the 

Respondent and the Compliance Function, or by the Hearing Panel Chairman.
46

16) Summary Fines

a) Notwithstanding any other provision of the Rules, the Compliance Function shall have the 

authority to impose summary fines on Participants without the need for any formal 

disciplinary procedures with respect to Violations of any Rule listed in this section. 

Investigations of possible Violations of such a Rule shall be conducted in accordance with 

section 2), but otherwise actions taken pursuant to this section shall be made in 

accordance with the procedures set forth in this section rather than the procedures set 

forth in the remainder of the Rules. The authority to impose a summary fine under this 

section does not prevent the Compliance Function from submitting a Violation of any rule 

listed in this section to the Review Panel in accordance with the formal disciplinary 

procedures of the Rules.

The following schedule lists the permissible actions that the Compliance Function may 

impose:

Rule 

Violation

Action Taken Per each Violation in a Rolling 12-month period

First 

Violation

Second 

Violation

Third 

Violation

Fourth Violation

Rulebook 

18.7

Warning 

Letter

€2,000 €5,000 Referral to Review Panel for formal 

disciplinary procedures.

b) For purposes of imposing fines pursuant to this section, the Compliance Function shall 

review all the facts and circumstances prior to determining whether a Violation occurred 

and may aggregate individual Violations and treat such Violations as a single offense.

c) The Compliance Function shall set the amount of any fine imposed pursuant to this 

section, with the maximum aggregate fine for Violations of the same Rule, or subsection 

thereof, imposed by the Compliance Function not to exceed €7,000 in a rolling 12-month 

period. If, in any case, a member of the Market Regulation Staff concludes that there is a 

reasonable basis for finding an additional Violation, he or she shall present an 

investigation report concerning the matter to the Review Panel in accordance with section 

2), which shall proceed in accordance with section 3).

Notice and Hearings

d) The person against whom such summary action is taken pursuant to this section shall be 

served with a Notice of the action before the action is taken. The Notice shall state the 

action taken, the reasons for the action, the amount of any fine imposed for each 

Violation, and the date by which the action becomes final (and any fine must be paid) or 

contested as provided below, which date shall be not less than 30 days after the date the 
47

notice of action was served.

e) The person may as soon as practicable, upon written request to the Compliance Function, 

have a hearing before the Hearing Panel pursuant to the procedures of section 10) in 

order to contest the action taken. Any such notice of contest must be submitted to the 

Compliance Function on or before the date specified in the notice of action that the 

relevant action becomes final.

f) Promptly following the hearing, the Hearing Panel shall render a written decision based 

upon the weight of the evidence in the record and shall provide a copy to the person. The 

decision shall include a description of the summary action taken, the reasons for the 

summary action, a summary of the evidence produced at the hearing, a statement of 

findings and conclusions, a determination that the summary action should be affirmed, 

modified or reversed, a declaration of any action to be taken pursuant to the 

determination, and the effective date and duration of the action.
48

Trade Review and Error Policy

Market Appendix 5 to the Venue Rulebook - Trade Review and Error 

Policy
49

Market Appendix 5 – Trade Review and Error Policy

1. Objective

This Policy is issued pursuant to the iSwap Venue Rulebook, the Market Appendices and the 

Agreements. The purpose of this Policy is to set out the policies and procedures that iSwap Euro B.V. 

(Operator) may consider and employ when handling Trade cancellations and Trades executed on the 

iSwap Venue in error. The aim is to ensure that such Trades are dealt with in a quick, efficient, 

transparent and fair way for the parties involved with the least possible disruption to the integrity of 

the market at large.

In the event of conflict between the iSwap Venue Rulebook, the Market Appendices and the 

Agreements, the following order of precedence shall apply to the extent of any inconsistency: 1. this 

Policy; 2. the applicable Market Appendix; 3. the Rulebook and 4. the Agreements.

2. Additional Definitions

In this Policy, terms not defined shall have the meanings given to them in the iSwap Venue 

Rulebook. In addition, the following words and expressions have the following meanings: 

Error Orders: An Order that exceeded the Market Level Parameters or Maximum Overlap at the time

a User attempted to submit it, including Implied Orders that exceed the Market Level Parameters or

Maximum Overlap at the time they are generated. 

Error Trade: A Trade outside the Market Level Parameters or the result of an Error Order.

Fair Market Price: will be determined according to the context of the market at the time the Order 

was entered onto the iSwap Venue and is the price of an Eligible Instrument that is derived by 

calculating the average of prices obtained by:

a) Referencing applicable Trades, Orders and the Market Mid-Price of the Order Book; and

b) Referencing the mid of indicative prices published by ICAP via its market data vendors

Market Level Parameters: a deviation from Fair Market Price in relation to any relevant Eligible 

Instrument of: 

a) For EUR IRS, OIS or OIS/FRA spread maturities of up to and including 2 years, greater than 1 

basis point. 

b) For EUR IRS or OIS maturities of greater than 2 years, greater than 1 basis point.

c) For GBP IRS or OIS maturities of up to and including 2 years, greater than 1.5 basis points; 

and 

d) For GBP IRS or OIS maturities of greater than 2 years, greater than 1.5 basis points.

Maximum Overlap: Maximum overlap of bid and offer orders in basis points, which may be rejected 

by the platform, to prevent disruptive trading.

Market Alert: A message sent via the platform to all connected Market Authorised Users
50

3. Trade Reviews 

3.1 General

3.1.1 Where a Participant has entered into a Trade in error, it may request that the Operator 

review the transaction.

3.1.2 A Participant (the "Requesting Participant") shall notify the Operator of a request to 

cancel or revise the terms of a Trade (the "Relevant Trade") within 10 minutes from the 

time of execution of the Relevant Trade. If the Operator receives such a request later 

than 10 minutes from the time of execution, the Requesting Participant acknowledges 

that the Operator may, in its sole discretion, decline to review the transaction.

3.1.3 Where the Requesting Participant is the Broker Participant, the Operator will confirm 

with the Member Participant, who is the counterparty to the Trade, that the review 

should proceed.

3.1.4 For the avoidance of doubt, a Participant is prohibited from submitting cancellations or 

corrections for the purpose of delaying the reporting of a Trade to the SDR. 

3.2 Market Control Procedure

3.2.1 After receiving the request the Operator shall, provided that the review is consistent 

with the Operator's obligations to maintain an orderly market on the iSwap Venue, 

promptly inform the counterparty to the Relevant Trade (the "Other Participant") that 

the Relevant Trade is subject to a review and if the trade price is under review send a 

Market Alert.

3.2.2 Market Control will take the following actions as defined in Trade Cancellation Flow 

Diagram below.
51

3.2.3 If a Market Alert was sent subject to 3.2.1 then Market Control will send a second Market 

Alert, depending upon their determination, informing Participants that either trade 

stands or is cancelled.

4. Errors

4.1 Determination of Error Trades

4.1.1 Operator will determine whether the Trade was executed outside the Market Level 

Parameters using the Fair Market Price as determined by Market Control.
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4.1.2 If such Trade was executed outside the Market Level Parameters, the Operator will 

inform the Participants that such Trade is an Error Trade.

4.2 Determination of Error Orders

4.2.1 Operator will determine whether the Order submitted was outside the Market Level 

Parameters using the Fair Market Price as determined by Market Control.

4.2.2 If such Order was submitted outside the Market Level Parameters, the Operator will 

inform the Participants that any resulting Trade is an Error Trade.

4.2.3 Operator will determine whether the Order submitted was outside the Maximum 

Overlap as determined by Market Control.

4.2.4 If such Order was submitted outside the Maximum Overlap, the Operator will inform the 

Participants that any resulting Trade is an Error Trade.

4.3 Determination of clerical or other error

4.3.1 Operator will determine whether a Trade was executed, cleared or rejected for clearing 

as a result of errors including but not limited to,

i. the trading system, a Participant or Broker Participant made a material mistake 

or that a mistake occurred as a result of a malfunction in the trading system or 

by human error;

ii. the trading system, a Broker Participant or a Participant made a clerical or 

operating error or omission that caused a transaction to be rejected from 

clearing and void ab initio; or

iii. a Clearing Firm or DCO rejected a leg of a Package Transaction for clearing 

because of the sequencing of submission for clearing of the legs of the 

applicable Package Transaction.

5. Cancellation of Error Trades

5.1 Procedure for cancelling Error Trades

5.1.1 If the Operator determines that a Trade is an Error as determined in 4.1.1, 4.2.1 or 4.2.3 

it shall notify the counterparties to such Trade of its determination. The Operator shall 

use its reasonable endeavours to notify the counterparties to the Error Trade as 

promptly as possible but no later than 30 minutes from the time of execution of the 

Error Trade. If a counterparty has not been notified that a Trade has been determined to 

be Error Trade within 30 minutes of execution, such Trade shall not be considered an 

Error Trade.

5.1.2 The counterparties to an Error as determined in 4.1.1, 4.2.1, 4.2.3 or 4.3.1 shall take all 

such action required to effect the cancellation of the Error Trade. Failure by any Member 
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Participant to comply with any instruction from the Operator to cancel, revise or reverse 

an Error Trade shall constitute a material breach of the Rulebook and the Agreements 

and the Operator shall be permitted to unilaterally cancel the Error Trade in accordance 

with Rule 16 of the Rulebook. 

5.1.3 Where Market Control has determined that the error is as determined in 4.3.1 (i), a 

report will be sent to the CCO describing the review to allow the CCO to evaluate if there 

is any potential evidence of manipulation. 

5.1.4 If Operator determines that an error has occurred as determined in 4.3.1 (i) the Operator 

may, in its sole discretion, decide to cancel or not cancel the trade.

6. Procedures for correcting errors

6.1 Correcting Error Trades

6.1.1 The procedures described in this policy are in accordance with NAL 17-27 & 20-01, 

expiring on the effective date of revised Commission regulations governing swaps with 

clerical and operational errors executed on a swap execution facility, and are limited to:

i. A Trade that was rejected for clearing and void ab initio because of a clerical 

or operational error or omission by the Venue or a Participant (a “Rejected 

Transaction”),

ii. A leg of a Package Transaction that was rejected for clearing because of the 

sequencing of submission for clearing of the legs of the applicable Package 

Transaction and only for such rejected leg (a “Rejected Leg”), and

iii. A Trade that is carried on a DCO’s books as a result of a clerical or operational

error or omission by the Venue or a Participant that was not identified until 

after the Trade had been cleared (an “Erroneously Cleared Transaction”),

in each case where the Operator has affirmatively determined that the transaction or a 

term thereof resulted from an error.

6.1.2 For Rejected Transactions and Rejected Legs, if a Participant or Clearing Firm believes 

that a transaction qualifies as a Rejected Transaction or a Rejected Leg, such Participant 

or Clearing Firm shall request review of the transaction pursuant to this policy.

i. Upon completion of the review of the transaction pursuant to this policy, if 

Operator determines that an error resulted in a Rejected Transaction or a 

Rejected Leg and:

 If the Operator is able to determine how to correct the error, the 

Operator shall execute a new Trade with the same terms as the 

Rejected Transaction or Rejected Leg, other than the error, without 
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obtaining consent of the Participant that submitted the Rejected 

Transaction or Rejected Leg. 

 If the Operator is unable to determine how to correct the error, the 

Operator shall consult with the Clearing Firms for the Rejected 

Transaction or Rejected Leg and the Participants involved in such 

transaction, as necessary, and the Clearing Firms for such transactions 

may, with the consent of each respective Participant, agree to a new 

Trade with the same terms as the rejected Trade, other than the error. 

Such Participant consent may not be obtained in advance, and must 

be sought and obtained by each Clearing Firm on a case-by-case basis, 

after the Trade has been rejected. 

ii. Upon execution of such a new Trade to replace a Rejected Transaction or 

Rejected Leg, the Operator shall submit the transaction to the DCO for 

clearing as quickly as technologically practicable, but in any case no later than 

60 minutes from the issuance of the notice of rejection by the DCO to the 

Clearing Firms.

iii. If the new Trade is rejected from clearing, it is void ab initio and no additional 

new Trade will be permitted to be submitted under this policy.

iv. The Operator shall report Swap transaction data to the SDR pursuant to this 

policy for a new Trade that clears with the same terms as the Rejected 

Transaction or Rejected Leg, as applicable, other than the error, including: a 

Part 43 cancellation for the original transaction, a Part 45 termination 

indicating the original transaction is void ab initio, and swap transaction data 

pursuant to Parts 43 and 45 for the new Trade. Such data shall reference the 

original cancelled trade, indicate that it has been reported pursuant to the 

procedures described in this policy and link the original cancelled trade to the 

new trade for reporting to the SDR under Part 43 and Part 45 of the 

Commission Regulations.

v. The procedures in this policy are not available for Rejected Legs of Package 

Transactions that are rejected for clearing by a Clearing Firm or DCO because 

the Package Transaction as a whole failed to satisfy the applicable Risk-Based 

Limits.

6.1.3 For Erroneously Cleared Transactions, if a Participant or Clearing Firm believes that a 

Trade is carried on the books of a DCO as a result of an error, such Participant, Customer 

or Clearing Firm may request review of the transaction pursuant to this policy.

i. Upon completion of the review of the transaction pursuant to this policy, if 

the Operator determines that an error resulted in an Erroneously Cleared 

Transaction and:

 If the Operator is able to determine how to correct the error, it shall 

execute a Trade that offsets the Erroneously Cleared Transaction 
55

carried on the books of the relevant DCO through the same Clearing 

Firms that cleared the Erroneously Cleared Transaction and the 

Operator shall execute a new Trade with the same terms as the 

Erroneously Cleared Transaction, other than the error, in each case 

without obtaining consent of the Participant that submitted the 

Erroneously Cleared Transaction; provided that, where an Erroneously 

Cleared Transaction did not satisfy the Risk-Based Limits of a 

Participant’s Clearing Firm, the Operator shall obtain the consent of 

the relevant Clearing Firm prior to executing such offsetting Trade. 

 If the Operator is unable to determine how to correct the error, it shall 

consult with the Clearing Firms for Erroneously Cleared Transactions 

and the Participants and, as necessary, and the Participant may agree 

to execute a Trade that offsets the Erroneously Cleared Transaction 

carried on the books of the relevant DCO through the same Clearing 

Firms that cleared the Erroneously Cleared Transaction and to execute 

to a new Trade with the same terms as the rejected Trade, other than 

the error.

ii. Upon execution of such new Trade by the Operator to offset an Erroneously 

Cleared Transaction and to enter into a new Trade, it shall submit the 

transactions to the DCO for clearing as quickly as technologically practicable, 

but in any case no later than three days after the Erroneously Cleared 

Transaction was executed.

iii. The Operator shall report Swap transaction data to the SDR pursuant to this 

policy for a new Trade that clears with the same terms as the Erroneously 

Cleared Transactions, as applicable, other than the error, including: a Part 43 

cancellation for the original transaction, a Part 45 termination indicating the 

original transaction is void ab initio, and swap transaction data pursuant to 

Parts 43 and 45 for the new Trade. Such data shall reference the original 

cancelled trade, indicate that it has been reported pursuant to the procedures 

described in this policy and link the original cancelled trade to the new trade 

for reporting to the SDR under Part 43 and Part 45 of the Commission 

Regulations.

6.1.4 For the avoidance of doubt, the procedures of this policy are not applicable to any 

transaction rejected by a DCO for credit reasons.

7. Authority Regarding Cancellations, Price Adjustments and New or 

Offsetting Transactions

Operator has authority to cancel any transaction or adjust the price of any transaction executed, or 

to execute or require the execution of a new or offsetting transaction: (i) when Operator 

determines in its sole discretion such action is necessary to mitigate market disrupting events caused 

by the improper or erroneous use of the Market or by system defects; or (ii) at any time Operator 
56

determines, in its sole discretion, that allowing a transaction to stand as executed may have a 

material adverse effect on the integrity of the market. All decisions of Operator regarding 

cancellations of transactions or the adjustment of transaction prices and the execution of new or 

offsetting transactions shall be final.