ActiveUS 169789835v.1

CX Futures Exchange, L.P. 

Rule Amendment Submission 2018-10

November 2, 2018

1. The text of the rule changes to the CX Futures Exchange, L.P. Rulebook is attached. 

Additions are underlined and deletions are stricken through. These rule amendments have been 

approved by CX Futures Exchange, L.P. Capitalized terms, unless otherwise defined herein 

shall possess the meaning(s) ascribed in the CX Futures Exchange, L.P. Rulebook.

2. The proposed effective date is ten business days after receipt by the Commodity Futures 

Trading Commission of this submission. 

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

Exchange Act, and the Commission’s regulations thereunder; and (2) concurrent with this 

submission, CX Futures Exchange, L.P. posted on its website: (i) a notice of pending 

certification of the rule submissions with the Commission; and (ii) a copy of this submission.

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

rules appear below.

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

CONCISE EXPLANATION AND ANALYSIS OF THE OPERATION, PURPOSE, AND 

EFFECT OF THE CERTIFIED RULE AND ITS COMPLIANCE WITH APPLICABLE 

PROVISIONS OF THE ACT, INCLUDING CORE PRINCIPLES AND THE COMMISSION’S 

REGULATIONS THEREUNDER

Pursuant to Commission Rule 40.6(a)(7)(vi), the following is a concise explanation and analysis 

of the operation, purpose, and effect of the amended rules.

CX Futures Exchange, L.P. (the “Exchange”) is amending its Rulebook to adopt rules 

prohibiting the practice of front-running and wash trading. CX believes that front running and 

wash trading violate Exchange Ruels VI-2 Fraudulent Acts and VI-3 Fictitious Trades and VI-7 

Adherence to Law, which prohibits any Participant from engaging in conduct in violation of 

“Applicable Law.” Nevertheless, insofar as Commission Rule 38.152 requires designated 

contract markets explicitly to prohibit front running and wash trading, CX is adopting rules 

prohibiting those practices explicitly.

The effect of these amendments will be to prohibit explicitly abusive conduct that previously was 

prohibited implicitly by Exchange rules. 
ActiveUS 169789835v.1

CERTIFICATIONS PURSUANT TO SECTION 5c OF THE COMMODITY EXCHANGE 

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

17 C.F.R. §40.6

I hereby certify that:

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

Commodity Futures Trading Commission’s regulations thereunder; and

(2) concurrent with this submission, CX Futures Exchange, L.P. posted on its 

website: (a) a notice of pending certification of the above Rules with the 

Commission; and (b) a copy of this submission. 

_________________________

By: 

Title: 

Date: November 2, 2018

Nolan Glantz

COO
ActiveUS 169789835v.1

Attachment —Rule Amendment

(Additions are underlined, deletions are struck through)

VI-13. Front Running

It shall be a violation of this Rule for any person to engage in the practice of trading ahead of 

another person by taking a futures or option position based upon non-public information 

obtained in violation of a duty to that person regarding an impending transaction by that other

person in the same or related future or option.

IV-14 Wash Trading

It shall be a violation of this Rule for any person to engage in a transaction that is, of the 

character of, or is commonly known to the trade as a “wash trade.”