SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-331

Organization: NEX SEF Limited ("NEX SEF")

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): 07/28/23 Filing Description: Amendments to Chapter 5 (“Rule 

Enforcement”) and Rule 901 (“System Protocols”) of the NEX SEF Limited Rulebook (Form 

SEF Exhibit M) and the Trade Practice Review Program of the NEX SEF Compliance 

Manual (Form SEF Exhibit O3)

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

1

Christopher Bowen

Managing Director and Chief Regulatory Counsel

Legal Department

July 28, 2023

VIA ELECTRONIC PORTAL

Mr. Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: CFTC Regulation 40.6(a) Certification. Amendments to Chapter 5 (“Rule 

Enforcement”) and Rule 901 (“System Protocols”) of the NEX SEF Limited 

Rulebook (Form SEF Exhibit M) and the Trade Practice Review Program of 

the NEX SEF Compliance Manual (Form SEF Exhibit O3).

NEX SEF Submission No. 23-331

Dear Mr. Kirkpatrick:

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

“Commission”)amendments to Chapter 5 (“Rule Enforcement”) and Rule 901 (“System Protocols”) of the 

NEX SEF Rulebook and the Trade Practice Review Program of NEX SEF Compliance Manual (Form SEF 

Exhibit O3) (collectively, the “Rule Amendments”) effective on August 14, 2023.

Specifically, the Rule Amendments are as follows: 

1. NEX SEF Rulebook (Form SEF Exhibit M)

• Amendments to Chapter 5 (“Rule Enforcement”) to amend the title of the Hearing Panel 

Chairperson to Hearing Panel Chair, clarify the contents of the written decision and what 

information is submitted to the National Futures Association (“NFA”) via Background Affiliation 

Status Information Center (“BASIC”) as well as other administrative corrections to Chapter 5;

• Amendments to Rule 901 (“System Protocols”) to include a change to the matching algorithm 

for certain NDF currency pairs, by prioritizing orders with shown quantities greater than a predefined threshold for matching at a given price level; and

• Various formatting corrections.

2. Trade Practice Review Program (Form SEF Exhibit O3)

• Amendments to the Trade Practice Review Program to reflect certain staff changes and to

clarify the responsibilities of the NEX SEF Market Regulation Department.

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

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

bearing on Core Principles:

• Core Principle 2 – Compliance with Rules: Amendments to the NEX SEF Rulebook are 

intended to update its Rulebook such that NEX SEF will continue to enforce trading, trade 

processing, and participation rules that will deter abuses and have the capacity to investigate, 

detect rule violations and enforce those rules. The NEX SEF will remain in compliance with this 

core principle as a result of the amendments.
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

2

• Core Principle 4 – Monitoring of Trade and Trade Processing: Amendments to the Trade 

Review Program are clerical in nature and will not impact NEX SEF’s ability to detect and prevent 

manipulation, price distortions, or settlement processes. 

Pursuant to Commission Regulation 37.3(b)(3), once a SEF is registered as such with the Commission, 

any amendments to Form SEF must be filed as a submission under Part 40 of the Commission’s 

regulations or as otherwise specified by the Commission.1 The Rule Amendments serve to amend 

previous NEX SEF submissions. As a result, NEX SEF is certifying the Rule Amendments to comply with 

the requirements set forth by the Commission’s Regulation. 

Appendix A through Appendix B provides amendments to the NEX SEF Rulebook under separate cover 

in blackline format and clean, respectively. Appendix C provides amendments to the Trade Practice 

Review Program under separate cover in blackline format (confidential treatment requested for Appendix 

C).

Pursuant to Section 5c(c) of the Act and Regulations 37.3(b)3 and 40.6(a), NEX SEF hereby certifies that

the Rule Amendments comply with the Act, as amended, and the Commission’s regulations thereunder. 

There were no substantive opposing views to this proposal.

NEX SEF certifies that this submission has been concurrently posted on its website at 

http://www.cmegroup.com/market-regulation/rule-filings.html.

If you require any additional information regarding this submission, please contact the undersigned at 212-

299-2200 or via email at CMEGSubmissionInquiry@cmegroup.com.

Sincerely,

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachments: Appendix A: NEX SEF Rulebook (Form SEF Exhibit M) (blacklined version)

Appendix B: NEX SEF Rulebook (Form SEF Exhibit M) (clean version)

Appendix C: NEX SEF Trade Practice Review Procedures (Form SEF Exhibit O3) 

(blacklined version) (Confidential Treatment Requested)

1 See 78 Fed. Reg. 33476, at 33485 (June 4, 2013).
3

Appendix A 

NEX SEF Rulebook

(additions underscored; deletions overstruck)

(provided under separate cover)
4

Appendix B

NEX SEF Rulebook

(clean, provided under separate cover)
5

Appendix C

(CONFIDENTIAL TREATMENT REQUESTED)

NEX SEF Trade Practice Review Program

of Compliance Manual

(Form SEF Exhibit O3)

(provided under separate cover)