SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 20-468R

Organization: NEX SEF Limited ("NEX SEF")

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): 11/04/20 Filing Description: Adoption of New Rule 318 

(“Post-Trade Anonymity”)

SPECIFY FILING TYPE 

Please note only ONE choice allowed per Submission.

Organization Rules and Rule Amendments

Certification § 40.6(a)

Approval § 40.5(a)

Notification § 40.6(d)

Advance Notice of SIDCO Rule Change § 40.10(a)

SIDCO Emergency Rule Change § 40.10(h)

Rule Numbers: See filing.

New Product Please note only ONE product per Submission.

Certification § 40.2(a) 

Certification Security Futures § 41.23(a)

Certification Swap Class § 40.2(d)

Approval § 40.3(a)

Approval Security Futures § 41.23(b)

Novel Derivative Product Notification § 40.12(a)

Swap Submission § 39.5

Official Product Name: 

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

Certification § 40.6(a) 

Certification Made Available to Trade Determination § 40.6(a)

Certification Security Futures § 41.24(a)

Delisting (No Open Interest) § 40.6(a) 

Approval § 40.5(a)

Approval Made Available to Trade Determination § 40.5(a)

Approval Security Futures § 41.24(c)

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

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

Notification § 40.6(d)

 Official Name(s) of Product(s) Affected: 

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

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Christopher Bowen 

Managing Director and Chief Regulatory Counsel

Legal Department

November 4, 2020

VIA ELECTRONIC PORTAL

Mr. Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, DC 20581

Re: CFTC Regulation 40.6(a) Certification. Notification Regarding the Adoption of New 

Rule 318 (“Post-Trade Anonymity”). 

NEX SEF Submission No. 20-468R

Dear Mr. Kirkpatrick:

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

“Commission”) the adoption of new Rule 318 (“Post-Trade Anonymity”) to include a prohibition against 

certain post-trade name give up practices (the “Rule Amendment”) effective trade date Friday, November 

20, 2020, as more specifically described below.

Attached as Appendix A is new NEX SEF Rule 318, which reflects the Rule Amendment.

NEX SEF Submission No. 20-468R supersedes previous NEX SEF Submission 20-468 filings with the 

Commission and is being submitted to: (a) correct Appendix A; (b) advise of an effective date of Friday, 

November 2020; and (c) correct minor typographical errors in the body of the submission. No other changes 

have been made to the original submission.

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

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

bearing on the following Core Principle:

• Compliance with Rules: CEA Section 5h(f)(2)(B) requires a SEF to establish and enforce trading, 

trade processing, and participation rules that provide market participants with ‘‘impartial access’’ to 

the market, and the CFTC has implemented this statutory requirement by adopting CFTC 

Regulation 37.202, which requires a SEF to provide market participants with impartial access to its 

market(s), including, among other things, criteria governing such access that are impartial, 

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

As the Commission noted in the release adopting CFTC Regulation 37.9(d),

1

the practice of posttrade name give-up for transactions that are intended to be cleared undermines the policy goals of 

the impartial access requirement. As a result, the CFTC adopted Regulation 37.9(d) to generally 

prohibit this practice and to require SEFs to codify this prohibition in their rules. The purpose of the 

Rule Amendment is to effectuate this requirement. 

Pursuant to Section 5c(c) of the Act and CFTC Regulation 40.6, NEX SEF hereby certifies that the Rule 

Amendment complies with the Act, including the regulations under the Act. There were no substantive 

opposing views to the proposal. 

1 See 85 Fed. Reg. 44693 (July 24, 2020). 
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

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NEX SEF certifies that this submission has been concurrently posted on the CME Group website at 

http://www.cmegroup.com/market-regulation/rule-filings.html as well as the NEX SEF website at 

http://www.nexsef.com.

Should you have any questions concerning the above, please contact the undersigned at 212-299-2200 or 

CMEGSubmissionInquiry@cmegroup.com.

 

Sincerely,

Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachment: Appendix A: NEX SEF Rule 318 (“Post-Trade Anonymity”) 
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Appendix A

NEX SEF Rulebook

(additions underscored)

(Amendments to New Rule 318 pursuant to NEX SEF Submission 20-468R

with deletions struck through.)

Rule 318 - Post-Trade Anonymity 

(a) Pursuant to the Commission issuing final rule 37.9(d), neither NEX SEF nor any person 

that is subject to its rules may, directly or indirectly, including through a third-party service provider, disclose 

the identity of a counterparty for swaps that are executed, pre-arranged or pre-negotiated anonymously on 

or pursuant to the rules of NEX SEF and that are intended to be submitted for clearing contemporaneously 

with execution.

(b) The foregoing prohibition shall not apply to package transactions that include a component 

transaction that is not a swap that is intended to be submitted for clearing contemporaneously with 

execution.

(c) The compliance date for this Rule for swaps that are subject to the trade execution 

requirement under section 2(h)(8) of the Act is November 1, 2020. The compliance date for this Rule for 

swaps that are not subject to the trade execution requirement under section 2(h)(8) of the Act is July 5, 

2021.