NEX SEF-2019-R-7

July 17, 2019

Submitted via CFTC Portal

Division of Market Oversight

U.S. Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: NEX SEF Limited – Regulation 40.6 Rule Certification – Amended Rulebook

Ladies and Gentlemen:

Pursuant to Section 5c(c) of the Commodity Exchange Act (the “Act”) and Section 40.6(a) of the 

regulations of the Commodity Futures Trading Commission (the “Commission”), NEX SEF Limited (“NEX 

SEF” or the “Facility”) hereby notifies the Commission that it has amended its Rulebook, specifically 

Rules 104, 201, 202, 204, 215, 310, 313, 315 and 517. 

A concise explanation and analysis of the amendments to the Rulebook and their compliance with 

applicable provisions of the Act and the Commission’s regulations thereunder is attached hereto as 

Exhibit A. 

A clean copy of the amended Rulebook is attached hereto as Exhibit B and a copy of the Rulebook 

marked to show changes against the version most recently submitted to the Commission is attached 

hereto as Exhibit C. 

The amendments will become effective on August 1, 2019. NEX SEF certifies that the amendments 

comply with the requirements of the Act and the rules and regulations promulgated thereunder. NEX SEF

has reviewed the swap execution facility core principles (“Core Principles”) as set forth in the Act and has 

determined that the amendments impact the Core Principles identified in Exhibit A.

NEX SEF is not aware of any substantive opposing views expressed with respect to this filing and 

certifies that, concurrent with this filing, a copy of this submission was posted on the NEX SEF website 

and may be accessed at: http://www.nexsef.com. 

Please contact the undersigned at (212) 521-4609 with any questions regarding this matter.

Very truly yours,

Nirup Ramalingam, Chief Operating Officer

NEX SEF LIMITED

London Fruit and Wool Exchange

1 Duval Square

London E1 6PW

United Kingdom
2

Exhibit A

Explanation and Analysis

NEX SEF has amended its Rulebook as provided below. Additionally, NEX SEF has made certain nonsubstantive changes related to typographical errors and formatting throughout the Rulebook. Capitalized 

terms used but not defined herein have the meanings assigned to them in the Rulebook.

Section/Rule Description of Revision

Reason and/or

Supporting Rule or Core

Principle

Cover Page • Updated effective date • Conforming change

Table of 

Contents

• Updated page numbers • Conforming change

Definitions • Addition of definitions used in Rule 517

• Addition of definition of eligible contract 

participant (“ECP”) and use of defined term 

throughout the Rulebook

• Removal of definitions not used in Rulebook

• Conforming change

• Clarifying changes

Rule 104 • Rule 104 has been amended to clarify that an 

Emergency includes circumstances that 

significantly (as opposed to materially) affect the 

performance of Contracts.

• Core Principle 2

• Clarifying change

Rule 201(f) • Rule 201(f) has been amended to require 

Trading Privilege Holders to periodically verify

their Customers’ ECP status.

• Core Principle 2

• Core Principle 7

Rule 202(a) • Rule 202(a) has been amended to require each 

Trading Privilege Holder to submit an annual 

written representation that each of its Authorised 

Trading Firms continues to qualify as an ECP.

• Core Principle 2

• Core Principle 7

Rule 204(i) • Rule 204(i) has been amended to provide the 

Compliance Function more flexibility in 

determining when and how often to review 

Affirmations by Participants and Customers by 

permitting the Compliance Function to review 

such Affirmations on a periodic (as opposed to 

monthly) basis.

• Core Principle 7

Rule 215(b) • Rule 215(b) has been amended to require Prime 

Brokers to cooperate with the Facility in 

investigations of Trading Privilege Holders for 

which the Prime Broker has provided a Prime 

Broker Representation.

• Core Principle 2

• Core Principle 7

Rule 310(b) • Rule 310(b) has been amended to include a 

cross-reference to Rule 315 with respect to 

cancellations of executed transactions. 

• Core Principle 2
3

Section/Rule Description of Revision

Reason and/or

Supporting Rule or Core

Principle

Rule 313 • Rule 313 has been amended to include a crossreference to Rule 315 with respect to 

cancellations of executed Intermediated 

Transactions. 

• Core Principle 2

Rule 315 • Rule 315(b) has been amended to clarify that 

Participants may mutually decide to amend or 

cancel transactions away from the Facility post 

execution.

• Rule 315 has been amended to add new 

paragraph (k) governing cancellations of 

Intermediated Transactions due to operational or 

clerical errors other than those Errors governed 

by Rule 315 (h) and (i).

• Core Principle 2

Rule 517 • Rule 517 has been added to apply CME Group 

policies regarding (i) the effect any suspension of 

Trading Privileges has on a Participant’s 

privileges on other CME Group trading floors, 

exchanges, clearing organizations or swap 

execution facilities, and (ii) how a loss of trading 

privileges by a Participant on a CME Group 

exchange effects the Participant’s Trading 

Privileges on NEX SEF. 

• Core Principle 2

ACTIVE 246211475