RTX FINTECH & RESEARCH LLC

(“RTX SEF”)

RULES

BY ACCESSING, OR ENTERING ANY ORDER INTO, THE RTX FINTECH & RESEARCH LLC 

FACILITY, AND WITHOUT ANY NEED FOR ANY FURTHER ACTION, UNDERTAKING OR 

AGREEMENT, A PARTICIPANT OR BROKER, AND ITS CUSTOMERS, EACH REPRESENT THAT 

IT IS AN ELIGIBLE CONTRACT PARTICIPANT AS DEFINED IN SECTION 1a(18) OF THE 

COMMODITY EXCHANGE ACT AND SUCH PERSONS, AND THEIR AUTHORIZED TRADERS, 

AGREE:

(I) TO BE BOUND BY, AND COMPLY WITH, THE RULES OF RTX FINTECH & RESEARCH 

LLC, AND APPLICABLE LAW, IN EACH CASE TO THE EXTENT APPLICABLE TO IT OR 

THEM, AND

(II) TO BECOME SUBJECT TO THE JURISDICTION OF RTX FINTECH & RESEARCH LLC 

WITH RESPECT TO ANY AND ALL MATTERS ARISING FROM, RELATED TO, OR IN 

CONNECTION WITH, THE STATUS, ACTIONS OR OMISSIONS OF SUCH 

PARTICIPANT AND THE PARTICIPANT’S AUTHORIZED TRADERS, ITS CUSTOMERS 

AND THEIR AUTHORIZED TRADERS. 
Copyright © 2022 by RTX Fintech & Research LLC. All rights reserved.

Version effective as of February 22, 2022.
i

TABLE OF CONTENTS

PART 1. DEFINITIONS ....................................................................................................................1

PART 2. GOVERNANCE ..................................................................................................................9

201. Board of Directors.........................................................................................................9

202. Officers..........................................................................................................................9

203. Chief Compliance Officer..............................................................................................9

204. Compliance Department ............................................................................................11

205. Regulatory Oversight Committee ...............................................................................11

206. Disciplinary Committee ..............................................................................................12

207. Restrictions on Directors, Officers, Committee Members, Employees and 

Consultants .................................................................................................................12

208. Emergency Powers .....................................................................................................16

209. Conflicts of Interest ....................................................................................................18

210. Prohibition on Admission as Participant ....................................................................21

PART 3. PARTICIPANTS................................................................................................................22

301. Status of Participants..................................................................................................22

302. Eligibility......................................................................................................................22

303. Application Procedures...............................................................................................22

304. Denial of Admission ....................................................................................................23

305. Admission of a Participant..........................................................................................25

306. Authorized Traders, Brokers and Customers .............................................................25

307. Surveillance.................................................................................................................28

308. Recording of Conversations........................................................................................28

309. Market Data................................................................................................................28

310. Liquidity Provider Programs .......................................................................................29

311. Termination of Participation.......................................................................................30

PART 4. OBLIGATIONS OF PARTICIPANTS .....................................................................................31

401. Payment of Fees and Assessments.............................................................................31

402. Compliance with the Rules.........................................................................................31

403. Required Records and Reporting................................................................................31

404. Requirements for Persons Submitting Orders ...........................................................35

405. Responsibility for Orders............................................................................................35

406. System Security...........................................................................................................36
ii

407. User IDs and Confidentiality .......................................................................................36

408. Cooperation in Investigations.....................................................................................38

409. Notification .................................................................................................................38

410. Non-U.S. Participants..................................................................................................39

PART 5. TRADING........................................................................................................................40

501. Required Transactions................................................................................................40

502. Permitted Transactions ..............................................................................................40

503. Trading Day and Trading Hours..................................................................................41

505. Pre-Execution Discussions and Cross Trades..............................................................41

506. Entering Orders...........................................................................................................42

507. Prohibited Orders .......................................................................................................42

508. RESERVED....................................................................................................................43

509. Order Size Limitations.................................................................................................43

510. Block Trade Transactions............................................................................................43

511. Public Disclosure of Data ............................................................................................44

512. Off-Facility Transactions.............................................................................................45

513. Package Transactions..................................................................................................45

514. Trade Cancellations and Price Adjustments...............................................................47

515. Error Trades ................................................................................................................53

516. Trade Affirmation .......................................................................................................55

517. Real-Time Market Monitoring ....................................................................................55

518. Post-Trade Anonymity ................................................................................................56

PART 6. TRADING ELECTRONICALLY .............................................................................................57

601. Scope...........................................................................................................................57

602. Trading via Electronic Trading Systems. .....................................................................57

603. Order Types ................................................................................................................58

604. Confirmations and Objections....................................................................................59

605. Trade Invalidation Upon Revocation of Clearing Authorization ................................59

607. Assisted Order Entry ...................................................................................................59

PART 7. TRADING BY VOICE.........................................................................................................61

701. Scope...........................................................................................................................61

702. Trading by Voice Trading Systems..............................................................................61

703. Voice Trading Systems................................................................................................61

704. Order Types ................................................................................................................63

705. Confirmation of Voice Transactions and Objections..................................................64
iii

706. Record Keeping and Reporting ...................................................................................65

PART 8. CLEARING AND FINANCIAL INTEGRITY OF CONTRACTS.....................................................66

801. Scope...........................................................................................................................66

802. Relation to Clearing Organization...............................................................................66

803. Clearing Authorization Required ................................................................................67

804. Financial Integrity for Permitted Transactions...........................................................68

805. Trades Not Accepted for Clearing...............................................................................68

806. Disputes Related to Clearing ......................................................................................68

807. Establishment of Daily and Final Settlement Prices...................................................68

PART 9. BUSINESS CONDUCT .......................................................................................................70

901. Violation of Law ..........................................................................................................70

902. Rule Violation..............................................................................................................70

903. No Transfers................................................................................................................70

904. False Information........................................................................................................70

905. Manipulation Prohibited ............................................................................................70

906. Prohibition on Misstatements....................................................................................70

907. Employees of the RTX SEF ..........................................................................................70

908. Abusive Trading Practices Prohibited.........................................................................71

909. Detrimental Conduct ..................................................................................................71

910. Fraud Prohibited .........................................................................................................71

PART 10. DISCIPLINARY PROCEEDINGS ..........................................................................................72

1001. Scope ..........................................................................................................................72

1002. Investigations..............................................................................................................72

1003. Review of Investigation Report ..................................................................................72

1004. Respondent.................................................................................................................73

1005. Notice of Charges .......................................................................................................73

1006. Service ........................................................................................................................73

1007. Answer from Respondent...........................................................................................74

1008. Right to Representation .............................................................................................75

1009. Hearings......................................................................................................................75

1010. Decision ......................................................................................................................76

1011. Penalties .....................................................................................................................77

1012. Predetermined Penalties............................................................................................77

1013. Settlement..................................................................................................................78

1014. Minor Penalties ..........................................................................................................78
iv

1015. Participant Responsibility Actions..............................................................................79

1016. Action Against Non-Participants ................................................................................79

1017. Conflicts of Interest or Bias ........................................................................................80

PART 11. CUSTOMER DISPUTES.....................................................................................................82

1101. Procedure for Resolution ...........................................................................................82

PART 12. MISCELLANEOUS ............................................................................................................83

1201. Prohibition of Compensation to RTX SEF Employees.................................................83

1202. Rule Adoption, Amendment, and Repeal...................................................................83

1203. Confidentiality of Information....................................................................................83

1205. Limitation of Liability ..................................................................................................85

1206. Dispute Resolution .....................................................................................................86

1207. Publication of Information .........................................................................................87

1208. Trading System ...........................................................................................................87

1209. Enforceability..............................................................................................................88

1210. Audit Trail ...................................................................................................................88

1211. Conflicts with Governing Documents.........................................................................88

1212. Time References. ........................................................................................................88

PART 13. PRODUCTS .....................................................................................................................89

1301. Swap Contracts Made Available to Trade ..................................................................89

1302. Position Limits or Position Accountability ..................................................................89

1303. Risk Controls for Trading ............................................................................................89

1304. Swaps Listed for Trading.............................................................................................89
1

RULES

PART 1. DEFINITIONS

The definitions of terms herein shall apply equally to the singular and plural forms of the 

terms defined. Any pronoun shall include the corresponding masculine, feminine, and 

neuter forms. The word “will” shall be construed to have the same meaning and effect 

as the word “shall.” The words “include,” “included,” “includes,” or “including” shall be 

deemed, in each case, to be followed by the phrase “without limitation,” or the phrase 

“but not limited to,” if not expressly followed by such phrase. 

Unless the context otherwise indicates, the following terms have the meanings set forth 

below: 

“Act” means the same as Commodity Exchange Act, 7 U.S.C. Section 1 et seq.

“Affiliate” means, with respect to a Person, any other Person who directly, or indirectly 

through one or more intermediaries, controls, is controlled by, or is under common 

control with, such Person. 

“Applicable Law” means, with respect to any Person, any statute, law, regulation, rule,

or ordinance of any Regulatory Authority applicable to such Person, including the 

Commodity Exchange Act, Commission Regulations, and, to the extent applicable to 

such Person, similar foreign laws or regulations that are applicable to such Person’s 

activities on the RTX SEF. 

“Applicant” means a Person who has submitted an application to the RTX SEF to be 

approved as a Participant. 

“Approved Communication Method” means a mode of communication approved by 

RTX SEF through which an RTX SEF employee may communicate with a Participant or 

Broker during the Business Day. Such a mode shall be surveilled by the Compliance 

Department.

“Authorized Trader” means any Person who is issued a User ID to trade for: (i) a 

Participant (in this case, such a Person would include, but not be limited to, an 

employee of a Participant or an employee of a Participant’s Affiliate provided that the 

Participant maintains supervisory authority over such employee); or (ii) a Broker.

“Automated Trading Application (“ATA”)” means an electronic application that 

performs a trading strategy to independently initiate activity on the Trading System

without active human input. 

“Bid” means an order to buy a Contract or pay fixed payments on a Contract at a 

specified price or spread.

“Block Trade” shall have the same meaning as in Commission Rule 43.2, 17 C.F.R. §43.2. 
2

“Board” means the Board of Managers of the RTX SEF.

“Board of Directors” means the Board of Managers of the RTX SEF.

“Broker” means a Person who is a Futures Commission Merchant or an Introducing 

Broker under the Commodity Exchange Act and registered as such, unless exempt from 

registration. A Broker is unaffiliated with and not owned by RTX Holdings, Inc. and RTX 

SEF (RTX Fintech & Research LLC) either directly or indirectly. Further, a Broker is a

Person who is not a Participant but is permitted by a Participant (1) to enter Bids, Offers,

or Orders into the Trading System, (2) to assist in pre-discussion of trades, as permitted 

under Rule 505 of this rulebook, (3) to assist in the conduct of Off-Facility Transactions,

as permitted under Rule 512 of this rulebook, and (4) to assist in arranging Block Trades 

on behalf of a Participant. A Broker may enjoy direct access to the Trading System. A 

Broker is not an employee of the RTX SEF. 

“Business Day” means any day on which the RTX SEF is open for trading. The RTX SEF

will publish the trading days and Trading Hours for the Swaps on its website. 

“Chief Compliance Officer” or “CCO” means the person with (i) the authority and 

resources to develop and enforce policies and procedures necessary to fulfill the duties 

set forth for chief compliance officers in the Commodity Exchange Act and Commission 

Regulations regarding SEFs; and (ii) supervisory authority over all staff acting in 

furtherance of the Chief Compliance Officer’s statutory, regulatory, and self-regulatory 

obligations. 

“Cleared Transaction” means a transaction of a “Cleared Swap” (as defined under 

Section 1a(7) of the Act), where Cleared Swap means any swap that is, directly or 

indirectly, submitted to and cleared by a derivatives clearing organization registered 

with the Commission.

“Clearing Organization” means a derivatives clearing organization specified by the RTX 

SEF to clear transactions effected on or subject to the Rules of the RTX SEF. 

“Clearing Participant” means any Person who has clearing and settlement privileges on 

a Clearing Organization and who clears trades for Participants of RTX SEF.

“Clearing Participant ID” means the unique identifier code assigned by the RTX SEF to 

each Clearing Participant. 

“Commodity” means any “commodity” within the definition of that term contained in

Section 1a(9) or the Commodity Exchange Act.

“Commodity Exchange Act” means the Commodity Exchange Act, as it may be amended 

from time to time, 7 U.S.C. Section 1 et seq. 

“Commission” or “CFTC” means the Commodity Futures Trading Commission. 
3

“Commission Regulation” or “Commission Rule” means any rule, regulation, or order of 

the Commission, as in effect from time to time, and any interpretation thereof by the 

Commission or its staff. 

“Compliance Department” means the department of the RTX SEF responsible for

overseeing market activity, conducting surveillance, and ensuring that the trading and 

other activities conducted on the RTX SEF comply with Applicable Law and the Rules of 

the RTX SEF. The Compliance Department includes the Surveillance Service Provider.

“Contract” means a Swap contract executed on or through the RTX SEF. 

“Control” means the power, directly or indirectly, to direct the management or policies 

of a company, whether through ownership of securities, by contract, or otherwise. Any 

person who (i) is a director, general partner, or officer exercising executive responsibility 

(or having similar status or functions); (ii) directly or indirectly has the right to vote 25% 

or more of a class of a voting security or has the power to sell or direct the sale of 25% 

or more of a class of a voting security; or (iii) in the case of a partnership, has the right 

to receive upon dissolution, or has contributed, 25% or more of the capital, is presumed 

to control that company.

“Customer” means any Person who is a “customer” within the meaning set forth in 

Section 1.3 of Commission Regulations. 

“Delta Hedge” means a trading strategy that aims to reduce (hedge) the risk associated 

with an option, swaption, variance Swap, tranche, or other structured trade from price 

movements in the underlying asset.

“DCO” means a derivatives clearing organization (as defined in Section 1a(15) of the 

CEA) and as specified by the RTX SEF to clear transactions effected on or subject to the 

Rules of the RTX SEF. 

“Designated Contact” means the person employed by any Participant who shall have 

the right to activate or deactivate the User ID of any of the Participant’s Authorized 

Trader. 

“Electronic Order Book” means all open Orders entered into the Trading System

displayed electronically. 

“Electronic Order Book Trading Session” means a Trading Session that remains open 

throughout the Business Day in which the Trading System will receive and execute 

Orders in accordance with these Rules. 

“Electronic Trading System” means the electronic systems administered by or on behalf 

of the RTX SEF for the execution of Swap transactions. 

“Eligible Contract Participant” or “ECP” means any Person who is an “eligible contract 

participant” within the meaning set forth in section 1a(18) of the Commodity Exchange 

Act.
4

“Emergency” shall have the meaning set forth in Rule 208.

“Entity” means any Person other than a natural person. 

“Execution Specialist” means an employee of the RTX SEF using telephonic or other 

means of electronic communication devices: 1) to assist Participants in the entry or 

withdrawal of Orders to be matched through the operation of the Trading System and in

the negotiation and execution of Block Trades provided under Rule 510 of this rulebook, 

and 2) to facilitate Voice Trading. Execution Specialists also act in connection with the 

operation of various Trading Facility sessions of the Trading System.

“Facility” means RTX FINTECH & RESEARCH LLC, a registered swaps execution facility. 

“FINRA” means the Financial Industry Regulatory Authority. 

“Futures Commission Merchant” or “FCM” shall have the same meaning as defined in 

section 1a(28) of the Commodity Exchange Act. 

“Governmental Agency” means the Commission, the Securities and Exchange 

Commission, and any other agency (federal or state) or domestic or foreign authority 

regulating trading in commodities, securities, futures contracts, options, currencies, or 

other financial instruments.

“Illiquid Swap” means any Swap having a daily trading volume of fewer than three

transactions per week on the RTX SEF over the preceding three-month period.

“Internal Digital Ledger Functionality” means a form of technology-assisted trading 

consisting of an electronic screen that can be viewed by Participants on which 

information is posted upon request. 

“Introducing Broker” shall have the same meaning as defined in section 1a(31) of the 

Commodity Exchange Act. 

“ITBCS” or “Intended to be Cleared” means a Swap transaction of the sort described in 

Commission Rule 37.9(d) where it is intended to be cleared.

“Made Available to Trade” means those swaps contracts listed or offered for trading on 

the RTX SEF as defined in Rule 1301 of this rulebook. 

“Major Swap Participant” shall have the meaning in section 1a(33) of the Commodity 

Exchange Act. 

“Market Data” means any and all data and other information contained in, displayed 

on, generated by, or derived from the Trading System or reported to the RTX SEF,

including, without limitation, bids, offers, prices, executions, and volumes.
5

“Market Data Vendors” means publishers of electronic information with whom the RTX 

SEF has a contractual relationship to disseminate Market Data. 

“Named Party in Interest” means a “named party in interest” as defined in Rule 

209(a)(iv) of this rulebook. 

“NFA” means the National Futures Association. 

“Non-U.S. Participant” means any Person located outside the United States, its 

territories, or its possessions who is engaged in soliciting or in accepting orders for the 

purchase or sale of any Swap on or subject to the rules of the RTX SEF from only Persons 

located outside the United States, its territories, or its possessions. 

“Off-Facility Transaction” means a transaction arranged by a Broker between two 

Participants or Customers that is to be executed pursuant to the Rules of the RTX SEF. 

Such a transaction is reported to the RTX SEF and is not considered as having been 

executed until its acceptance by the RTX SEF. 

“Offer” means an order to sell a Contract or receive fixed payments on a Contract at a 

specified price or spread. 

“Opening Period” means the opening period of a specified Trading Session.

“Operating Agreement” means the corporate organizational document of RTX FINTECH 

& RESEARCH LLC.

“Order” means any firm Bid or Offer placed into the Trading System for purposes of 

buying or selling a Swap on or subject to the rules of the RTX SEF. 

“Package Transaction” means any transaction that consists of two or more component 

transactions executed between two or more counterparties where: 1) execution of each 

component transaction is contingent upon the execution of all other component 

transactions, and 2) the component transactions are priced or quoted together as one 

economic transaction with simultaneous or near-simultaneous execution of all 

components. 

“Participant” means any Person granted Trading Privileges by the RTX SEF who is not a 

Broker. 

“Participant Data” means any and all data and other information submitted to the 

Trading System by a Participant or on behalf of a Participant by its Brokers. 

“Participant ID” means the unique identifier code assigned by the RTX SEF to each 

Participant. 

“Permitted Transaction” means any transaction involving a Swap listed or offered for 

trading on or subject to the Rules of the RTX SEF for trading that is not a Required 

Transaction. 
6

“Person” means an individual, corporation, limited liability company, partnership, trust, 

or other entity. 

“Pre-Execution Communication” means one or more communications between market 

participants for the purpose of discerning interest in the execution of a transaction prior 

to exposure of such market participants’ Orders (i.e., price, size, and other terms) to the 

RTX SEF. 

“Proprietary Account” means a “proprietary account” as defined in Section 1.3 of the 

Commission Regulations. 

“Product” means a group of Swaps, Package Transactions, or Contracts.

“Proprietary Data or Personal Information” for the purposes of Rule 309(c) of this 

rulebook means information that would separately disclose business transactions, 

market positions, or the trade secrets of a Participant or provide non-public information 

about a natural person. 

“Quote” means a Bid or an Offer, or a Bid and an Offer. 

“Regulatory Authority” means any domestic or foreign government (or political 

subdivision), governmental or regulatory authority, agency, court, or commission, or 

other governmental or regulatory entity (including any Self-Regulatory Organization). 

“Review Panel” means those members of the Disciplinary Committee who consider 

investigation reports from the Compliance Department regarding violations of the Rules 

and take actions pursuant to Rule 1003.

“Required Transaction” means any transaction involving a Swap Made Available to 

Trade on the RTX SEF that is subject to the trade execution requirement of section 

2(h)(8) of the Act.

“Respondent” has the meaning set forth in Rule 1004 of this rulebook. 

“Reporting Party” shall have the same meaning as “reporting counterparty” under CFTC 

Regulation 45.8.

“RTX SEF” means RTX FINTECH & RESEARCH LLC, a registered swaps execution facility.

“Rules” means, with respect to any Entity, the rules of such Entity and the 

interpretations, resolutions, orders, directives, and procedures of the Entity thereunder 

as in effect from time to time, and if no other Entity is specified, means the Rules of the 

RTX SEF and the interpretations, resolutions, orders, directives, and procedures of the 

RTX SEF thereunder as in effect from time to time.

“SDR” means “swap data repository” as defined in section 1a(48) of the Act. 
7

“Securities Exchange Act” means the Securities Exchange Act of 1934, as it may be 

amended from time to time, 15 U.S.C. Section 78a et seq. 

“Self-Regulatory Organization” or “SRO” has the meaning given that term in 

Commission Regulation 1.3(ee). 

“Settlement Price” means the price established each day as the basis for settlement of 

Swaps. 

“Significant Action” means a “significant action” as defined by Section 1.69(a)(8) of the 

Commission Regulations. 

“STP Facility” means a straight-through processing entity that sends Swap transactions 

to clearing, reporting, and counterparties.

“Supervised Persons” means any directors, officers, agents, or employees (including any 

Authorized Traders) of any Participant. 

“Support Desk” means the designated group of employees that is responsible for RTX 

SEF market operations, real-time systems monitoring, and customer support.

“Surveillance Service Provider” means Eventus Systems, Inc.

“Swap” has the meaning set forth in section 1a(47) of the Commodity Exchange Act, and 

as further defined by the Commission, and includes, among others, options and 

swaptions, and caps and floors, provided that for purposes of these Rules the term 

“Swap” shall pertain only in respect of activities on or subject to the Rules of the RTX 

SEF. 

“Swap Dealer” shall have the same meaning as defined in section 1a(49) of the 

Commodity Exchange Act.

“Swap Execution Facility” or “SEF” shall have the same meaning as defined in section 

1a(50) of the Commodity Exchange Act.

“Technology-Assisted Voice Trading System” means a Voice Trading session in which 

the Execution Specialist is assisted by an automated functionality. 

“Tenor” means the time to maturity of a Swap. 

“Trading Day” shall mean each 24-hour day during which RTX SEF is open for trading 

Swaps, which will be based upon the Securities Industry and Financial Markets 

Association’s holiday recommendations for financial markets in the United States. 

“Trading Facility” shall have the same meaning as defined in section 1a(51) of the 

Commodity Exchange Act. 
8

“Trading Hours” means, with respect to any Swap, the hours during which the RTX SEF is 

regularly open for the trading of such Swap. 

“Trading Participant” means a Participant of the RTX SEF who is not a Clearing 

Participant. 

“Trading Privileges” means the right granted to a Participant or Broker to directly access

the Trading System for the purpose of transacting in Swaps subject to the Rules of the 

RTX SEF. No person may exercise Trading Privileges during any suspension of such 

Person’s Trading Privileges ordered by the RTX SEF. 

“Trading Session” means a specified period of time during which a particular trade 

matching functionality is available to market participants. 

“Trading System” means the electronic or voice systems administered by or on behalf of 

the RTX SEF for the execution of Swap transactions. 

“User ID” means a unique identifier code assigned by the Support Desk to: (i) each 

Authorized Trader who trades for such Participant or any Affiliate of such Participant; or 

(ii) to any other Person with Trading Privileges. 

“Voice Functionality” means a Trading Facility that provides a non-automated method 

for trading facilitated by an Execution Specialist who enables multiple participants to 

enter Bids or Offers to multiple participants through the use of telephone, electronic 

messaging, or other communication devices.

“Voice Order” means an Order entered into a Voice Trading Facility whereby a 

Participant communicates such an Order using an Approved Communication Method to 

an Execution Specialist.

“Voice Trading” is one Voice Functionality whereby an Execution Specialist makes 

known to Participants the existence of trading interest in a Swap, facilitates the 

communication of Bids or Offers among Participants, and assists in orderly trading on 

the RTX SEF. 

“Voice Trading Facility” means a Trading Session during which a particular structured 

form of non-automated trade matching functionality is available to market participants.

“Voice Trading System” means a Voice Trading session that remains open throughout 

the Business Day and in which an Execution Specialist stands ready to facilitate the 

execution of Orders in accordance with these Rules.
9

PART 2. GOVERNANCE

201. Board of Directors.

The Board shall have all the powers and authority permitted by law, the RTX SEF’s Rules 

and its Operating Agreement. The Board of Directors shall be appointed by the sole 

member of RTX Fintech & Research LLC. The Board shall be composed in accordance 

with the standards set forth in Commission Rule 1.64(b)(1) and (b)(3), which are 

incorporated herein by reference. 

202. Officers

The officers of the RTX SEF shall have all the powers and authority provided in the 

Operating Agreement, these Rules and such other additional duties and powers as the 

Board may confer on them or any of them. The officers of the RTX SEF shall consist of 

the Chief Executive Officer, Chief Financial Officer, Chief Operations Officer, General 

Counsel, Chief Compliance Officer and such other officers as the Board may appoint. 

203. Chief Compliance Officer

(a) The Board of Directors shall appoint the Chief Compliance Officer to whom the 

Chief Compliance Officer shall directly report. The Chief Compliance Officer shall 

meet with the Board of Directors at least annually and with the Regulatory 

Oversight Committee at least quarterly. The Chief Compliance Officer may only 

be removed by the vote of a majority of the Board of Directors. 

(b) The Chief Compliance Officer shall carry out the following duties: 

(i) Oversee and review the RTX SEF’s compliance with section 5h of the Act 

and Commission Rules thereunder; 

(ii) resolve any conflicts of interest that may arise, in consultation with the 

Board of Directors or the Chief Executive Officer, including: 

(A) conflicts between business considerations and compliance 

requirements; 

(B) conflicts between business considerations and the 

requirement that the RTX SEF provide fair, open, and 

impartial access as provided in Commission Rule 37.202; and 

(iii) establish and administer written policies and procedures reasonably 

designed to prevent violations of the Act and Commission Rules; 

(iv) take reasonable steps to ensure compliance with the Act and 

Commission Rules; 

(v) establish procedures for the remediation of noncompliance issues 

identified by the Chief Compliance Officer through a compliance office 

review, look- back, internal or external audit finding, self-reported error, 

or validated complaint; 
10

(vi) establish and follow appropriate procedures for the handling, 

management response, remediation, retesting, and closing of 

noncompliance issues; 

(vii) establish and administer a compliance manual designed to promote 

compliance with Applicable Laws, rules, and regulations and a written 

code of ethics designed to prevent ethical violations and to promote 

honesty and ethical conduct; 

(viii) supervise the RTX SEF’s self-regulatory program with respect to trade 

practice surveillance, market surveillance, real-time market monitoring, 

compliance with audit trail requirements, disciplinary proceedings, 

audits, examinations, and other regulatory responsibilities with respect 

to Participants (including ensuring compliance with, if applicable, 

financial integrity, financial reporting, sales practice, recordkeeping, and 

other requirements), the effectiveness and sufficiency of services 

provided by Surveillance Service Provider; and 

(ix) prepare and sign an annual compliance report. 

(A) Such annual compliance report for the year since the end of 

the previous review period must contain the following 

information: 

(1) description of the swap execution facility’s written 

policies and procedures, including the code of ethics 

and conflict of interest policies; 

(2) review of applicable Commission regulations and each 

subsection and core principle of section 5h of the Act, 

that, with respect to each identifies the policies and 

procedures that are designed to ensure compliance, 

provides a self- assessment as to the effectiveness of 

these policies and procedures, and discusses areas for 

improvement and recommends potential or prospective 

changes or improvements to its compliance program 

and resources; 

(3) a list of any material changes to compliance policies and 

procedures since the last annual compliance report; 

(4) a description of the financial, managerial, and 

operational resources set aside for compliance including 

a description of the RTX SEF’s self-regulatory program’s

staffing and structure, a catalogue of investigations and 

disciplinary actions taken since the last annual 

compliance report, and a review of the performance of 

disciplinary committees and panels; and 

(5) a description of any material compliance matters, 

including noncompliance issues identified through a 

compliance office review, look-back, internal or external 

audit finding, self-reported error, or validated 
11

complaint, and an explanation of how they were 

resolved. 

(B) The Chief Compliance Officer shall sign a certification that, to 

the best of his or her knowledge and reasonable belief, and 

under penalty of law, the annual compliance report is 

accurate and complete. 

(C) The Chief Compliance Officer shall submit the annual 

compliance report to the Board of Directors for its review and 

to the Commission within the time and manner specified by 

the Commission.

204. Compliance Department

(a) The RTX SEF has the power and authority to regulate its facilities to ensure that 

the facilities are not used for any improper purpose and to establish and 

enforce rules and procedures to ensure fair and equitable trading through its 

facilities.

(b) The RTX SEF shall be authorized to conduct and to oversee surveillance, 

investigation, and rule enforcement activities. The Chief Compliance Officer 

shall be in charge of the Compliance Department. The personnel of the 

Compliance Department may not operate under the direction or control of a 

Participant. 

(c) The RTX SEF has contracted with a Surveillance Service Provider for the 

performance of market, trade practice, financial, audit trail surveillance. 

205. Regulatory Oversight Committee

(a) Establishment of Regulatory Oversight Committee. The Regulatory Oversight 

Committee (“ROC”) shall be composed of three Public Directors only. The ROC 

shall be appointed by the Board of Directors. 

(b) Role of the ROC. The Regulatory Oversight Committee shall:

(i) Meet at least quarterly;

(ii) monitor the regulatory program of the registered entity for sufficiency, 

effectiveness, and independence; 

(iii) oversee the regulatory program, including trade practice surveillance, 

market surveillance and regulatory responsibilities with respect to 

members; 

(iv) review the size and allocation of the regulatory budget and the 

performance of the Chief Compliance Officer; and 

(v) review all regulatory proposals and recommend changes to the 

program. 
12

206. Disciplinary Committee

(a) Establishment of the Disciplinary Committee. The Disciplinary Committee is a 

committee of the RTX SEF whose members shall consist of such members 

appointed by the Board of Directors of the RTX SEF. The members of the 

Disciplinary Committee shall constitute the RTX SEF’s Review Panel(s) and

Hearing Panel(s). A member of a Hearing Panel may not serve as a member of 

the Review Panel in the same matter and each Hearing Panel and each Review 

Panel must include a member that is not a Participant of the RTX SEF.

(b) Composition. At least one member of the Disciplinary Committee, who shall be 

chair, must be a Public Participant, a person that would not be disqualified from 

serving as a Public Director under Commission Rule 1.3(ccc)(3). The Disciplinary 

Committee may include as members RTX SEF officers and employees. However, 

no employee of the Compliance Department of the RTX SEF may serve on the 

Disciplinary Committee. 

(c) Role of the Disciplinary Committee. The Disciplinary Committee is authorized to 

determine whether violations of these Rules have been committed, to accept 

offers of settlement, to set and impose appropriate penalties, and to exercise 

such other powers and duties as provided in Part 10 of these Rules governing 

disciplinary proceedings. 

207. Restrictions on Directors, Officers, Committee Members, Employees 

and Consultants

Members of the Board of the RTX SEF, officers of the RTX SEF, members of committees 

of the RTX SEF, employees of the RTX SEF, members of the Board of Directors, officers, 

and employees of any corporate affiliate of the RTX SEF performing functions for the 

RTX SEF, and consultants and contractors to the RTX SEF and their employees shall 

comply with the following restrictions and obligations: 

(a) Improper Use or Disclosure of Material Non-Public Information. No member of 

the Board of Directors or of any Board committee, no member of any other 

committee of the RTX SEF, no officer of the RTX SEF, no employee of the RTX 

SEF, no member of the Board of Directors, officer or any employee of any 

corporate affiliate of the RTX SEF performing functions for the RTX SEF and no 

consultant to the RTX SEF shall:

(i) trade for such person’s own account, or for or on behalf of any other 

account, in any commodity interest on the basis of any material, nonpublic information obtained through the performance of such person’s 

official duties; or

(ii) use or disclose, for any purpose other than the performance of such 

person’s official duties, any material, non-public information obtained 

by such person as a result of such person’s official duties, provided, 

however, that this Section shall not prohibit disclosures made by such 

person in the course of his or her official duties or disclosures made to 
13

any other self-regulatory organization, a court of competent jurisdiction 

or any agency or department of the federal or state government.

(b) Restrictions on Trading by Officers and Employees. No employee or officer of 

the RTX SEF, or of any corporate affiliate, may trade, directly or indirectly in:

(i) Any commodity interest traded on or cleared by the RTX SEF; 

(ii) Any related commodity interest; 

(iii) An interest rate related contract traded on contract markets or swap 

executions facilities or cleared by derivative clearing organizations other 

than the RTX SEF if the person has access to material, non-public 

information concerning such commodity interest; or 

(iv) An interest rate related contract traded on or cleared by a linked 

exchanged if the person has access to material, non-public information 

concerning such commodity interest.

(c) Eligibility for Service on Boards and Committees. 

(i) A person shall be ineligible to serve on the Board of Directors, a 

disciplinary committee, arbitration panel or, oversight panel who: 

(A) Was found within the prior three years by a final decision of a 

self- regulatory organization, an administrative law judge, a 

court of competent jurisdiction or the Commission to have 

committed a disciplinary offense; 

(B) Entered into a settlement agreement within the prior three 

years in which any of the findings or, in the absence of such 

findings, any of the acts charged included a disciplinary offense; 

(C) Currently is suspended from trading on any contract market, is 

suspended or expelled from membership with any selfregulatory organization, is serving any sentence of probation or 

owes any portion of a fine imposed pursuant to either: 

(1) A finding by a final decision of a self-regulatory 

organization, an administrative law judge, a court of 

competent jurisdiction or the Commission that such 

person committed a disciplinary offense; or, 

(2) A settlement agreement in which any of the findings or, 

in the absence of such findings, any of the acts charged 

included a disciplinary offense. 

(D) Currently is subject to an agreement with the Commission or 

any self-regulatory organization not to apply for registration 

with the Commission or membership in any self-regulatory 

organization; 

(E) Currently is subject to or has had imposed on him within the 

prior three years a Commission registration revocation or 

suspension in any capacity for any reason, or has been 
14

convicted within the prior five years of any of the felonies listed 

in section 8a(2)(D) (ii) through (iv) of the Act; 

(ii) Any person who is a member of the Board of the RTX SEF or any 

committee of the RTX SEF shall immediately notify the Chief Executive 

Officer of any information or occurrence which subjects such person to 

disqualification pursuant to paragraph (i) of this section.

(d) Restrictions on Participation on Board and Committees. 

(iii) no person shall vote, participate in deliberations or take any action 

involving the regulatory functions of the RTX SEF as a member of the 

Board of Directors of the RTX SEF or any committee of the RTX SEF on 

any matter involving a Named Party in Interest if such member: 

(A) is a Named Party in Interest as defined in Rule 209(a)(iv); 

(B) is associated with a named party in interest through a “broker 

association” as defined in Commission Rule 156.1; 

(C) is an employer, employee, or fellow employee of a Named Party 

in Interest; 

(D) has any other significant, ongoing business relationship with a 

Named Party in Interest; including but not limited to, 

employment with or acting as a Director of an entity that either: 

(1) employs, directly or indirectly through ownership or 

control, the Named Party in Interest, or 

(2) is owned or controlled, directly or indirectly, by the 

Named Party in Interest; or 

(E) has a family relationship as defined in Rule 209(a) with a Named 

Party in Interest. 

(iv) prior to the consideration of any matter involving a Named Party in 

Interest, each member of the Board of Directors of the RTX SEF or a 

committee (as the case may be) must disclose to the Chief Compliance 

Officer of the RTX SEF, whether he or she has one of the relationships 

listed in paragraph (d)(i) of this section with a Named Party in Interest. 

The Chief Compliance Officer shall determine whether any such 

member of the Board of Directors or the committee is subject to the 

restrictions set forth in paragraph (d)(i) in any matter involving a Named 

Party in Interest, which determination, taking into consideration the 

exigency of the action to be taken, shall be based upon: 

(A) information provided by such member pursuant to this 

paragraph (d)(ii); and 

(B) any other source of information that is held by and reasonably 

available to the RTX SEF. 

(v) no person shall vote or participate in deliberations on any Significant 

Action as a member of the Board of Directors of the RTX SEF or any 

committee of the RTX SEF if such member knowingly has a material 
15

conflict of interest, including but not limited to having a direct and 

substantial financial interest in the result of the vote based upon 

positions maintained at the RTX SEF or elsewhere that could reasonably 

be expected to be affected by the action. 

(vi) the Chief Compliance Officer shall determine whether a member of the 

Board of Directors or a committee is subject to the restrictions 

contained in this paragraph (d) in any Significant Action after a review of 

the information described in paragraph (d)(iv) above. Taking into 

consideration the exigency of the Significant Action, such determination 

should be based upon: 

(A) the most recent large trader reports and clearing records 

available to the RTX SEF; 

(B) information provided by the member pursuant to paragraph 

(d)(ii) above; and 

(C) any other source of information that is held by and is 

reasonably available to the RTX SEF. 

(vii) any member of the Board of Directors of the RTX SEF or any committee 

who would otherwise be required to abstain from deliberations 

pursuant to this paragraph (i) of this subsection may participate in 

deliberations, prior to a vote on a Significant Action for which he or she 

otherwise would be required to abstain pursuant to paragraph (iii) of 

this subsection, if in the judgment of the deliberating body such 

participation would be consistent with the public interest and if such 

member recues himself or herself from voting on such action. In making 

a determination as to whether to permit such member to participate in 

such deliberations, the deliberating body shall consider whether the 

member’s participation in deliberations is necessary for the deliberating 

body to achieve a quorum and whether the member has unique or 

special expertise, knowledge or experience in the matter under 

consideration. Prior to making any such determination, the deliberating 

body must fully consider the position information which is the basis for 

the member’s direct and substantial financial interest in the result of a 

vote on a Significant Action. 

(viii) the Board of Directors of the RTX SEF and each committee of the RTX 

SEF must reflect in their minutes or otherwise document that the 

conflicts determination procedures required by paragraphs (ii) and (iv) 

of this section have been followed. Such records also must include: 

(A) the names of all members who attended the meeting in person 

or who otherwise were present by electronic means; 

(B) the name of any member who voluntarily recused himself or 

herself or was required to abstain from deliberations and/or 

voting on a matter and the reason for the recusal or abstention, 

if stated; and 
16

(C) information on the position information that was reviewed for 

each member.

(e) Seconded personnel. An employee seconded to the RTX SEF shall cooperate 

with any request for information or documents in any investigation or inquiry by 

a Governmental Agency relating to the business or operation of the RTX SEF.

208. Emergency Powers

(a) “Emergency” shall mean any occurrence or circumstance which, in the opinion 

of the Board, or its designee authorized pursuant to this Rule, or as indicated to 

RTX SEF by the CFTC, requires immediate action to maintain markets with fair 

and orderly trading and to prevent or address manipulation or disruptive trading 

practices, whether the need for intervention arises exclusively from such 

occurrence or circumstance only involving RTX SEF’s market or as part of a 

coordinated, cross-market intervention including, without limitation, the

following:

(i) any circumstance that may materially affect trading on RTX SEF or RTX 

SEF’s market, including the failure of a Clearing Organization or Clearing 

Participant;

(ii) any action taken by any United States or foreign regulatory, selfregulatory, judicial, arbitral, or governmental (whether national, state or 

municipal) or quasi-governmental authority, or any agency, department, 

instrumentality, or sub-division thereof; or other Person exercising or 

entitled to exercise any administrative, executive, judicial, legislative, 

police, regulatory or taxing authority or power; or any other swap 

execution facility, designated contract market, board of trade, 

derivatives clearing organization, security-based swap execution facility 

or other exchange or trading platform (foreign or domestic) that may 

have a direct impact on trading on RTX SEF, the settlement or 

enforceability of any Trades conducted on RTX SEF, or RTX SEF’s market

(iii) any actual, attempted or threatened corner, squeeze, congestion, 

manipulative activity or undue concentration of positions on RTX SEF or 

in RTX SEF’s market;

(iv) any circumstance that may have a severe, adverse effect upon the 

physical operations and facilities of RTX SEF including, without 

limitation, fire or other casualty, flood or other natural disasters, bomb 

threats, acts of terrorism or war, other loss of or interruptions of 

essential services such as power, computer failures or malfunctions, 

communications failures, or disruptions in transportation; and

(v) any other unusual, unforeseeable or adverse circumstances as 

determined by RTX SEF.

(b) Subject to applicable law during an Emergency, RTX SEF will approve and apply

temporary rules and procedures (“Emergency Powers”) pursuant to procedures 

set forth in this Rule.
17

(c) Emergency Powers may require or authorize RTX SEF, the Board, any committee 

of the Board, the Chief Executive Officer or any other Officer to take actions 

necessary or appropriate to respond to the Emergency, including, but not 

limited to, the following actions:

(i) suspending or restricting trading or limiting trading to liquidating only 

(in whole or in part);

(ii) extending, limiting or changing trading hours;

(iii) temporarily modifying or suspending any provision of RTX SEF Rules or 

Participant obligations;

(iv) imposing intraday market restrictions;

(v) ordering the liquidation or transfer of open positions;

(vi) shortening or extending trading hours;

(vii) suspending or curtailing trading in a Product;

(viii) altering the terms and conditions of a Product;

(ix) imposing or modifying price limits; and/or

(x) imposing or modifying position limits.

(d) Before any Emergency Rules may be adopted and enforced, a vote of the Board 

approving such Emergency Powers must occur at a duly convened Board 

meeting. Directors may attend such meeting in person or by teleconference. If 

the Chief Executive Officer determines that the Emergency Powers must be 

implemented with respect to an Emergency before a meeting of the Board can 

reasonably be convened, then the Chief Executive Officer shall have the 

authority, without Board action, to implement any Emergency Powers with 

respect to such Emergency that he or she deems necessary or appropriate to 

respond to such Emergency. In such circumstances, the Chief Executive Officer 

must convene a meeting as soon as practicable. The Board may modify any 

Emergency Powers implemented by the Chief Executive Officer.

(e) As soon as practicable, the Board shall be notified of any exercise of emergency 

authority pursuant to this Rule and with respect to the Commission, the RTX SEF

shall comply with the requirements of Commission Regulation 40.6(a)(6). 

(f) Any time that RTX SEF takes actions necessary or appropriate to respond to an 

Emergency, including any modification of previously adopted actions, a duly 

authorized representative of RTX SEF will promptly notify the CFTC of such 

actions and, when possible, will post an announcement of such actions on the 

RTX SEF website.

(g) When the Board, any committee of the Board or the Chief Executive Officer 

determines that the Emergency has been reduced sufficiently to allow RTX SEF 

to resume normal functioning, any such actions responding to the Emergency 

will be terminated and notification of such termination will be provided on RTX

SEF’s website.
18

209. Conflicts of Interest

(a) Definitions. For purposes of this Rule 209, the following definitions shall apply:

(i) the term “family relationship of a Person” shall mean such Person’s 

spouse, former spouse, parent, stepparent, child, stepchild, sibling, 

stepbrother, stepsister, grandparent, grandchild, uncle, aunt, nephew, 

niece or in-law.

(ii) the term “Board” shall mean the Board, and any committee thereof 

duly authorized to take action or to recommend the taking of action on 

behalf of the RTX SEF.

(iii) the term “member’s affiliated firm” shall mean a firm in which a 

member of the relevant deliberating body is an employee or a 

“principal”, as defined in Commission Regulation 3.1(a).

(iv) the term “named party in interest” shall mean a “named party in 

interest” as defined in Section 1.69 of the Commission Regulations.

(v) the term “significant action” shall mean any of the following types of 

actions or rule changes that are implemented without the Commission’s 

prior approval:

(A) Any actions or Rule of the RTX SEF changes which address an 

“Emergency”, as defined in Rule 208; and 

(B) Any changes in margin levels that are (i) designed to respond 

to extraordinary market conditions, such as an actual or 

attempted squeeze or corner or congestion due to undue 

position concentration or (ii) otherwise likely to have a 

substantial effect on prices in any Swap.

(b) Named Party in Interest Conflict. 

(i) Prohibition. No Officer, Chief Compliance Officer or member of the 

Board or any standing committee shall participate in such body’s 

deliberations or voting in any matter involving a named party in interest 

where such person (A) is a named party in interest, (B) is an employer, 

employee or fellow employee of a named party in interest, (C) is 

associated with a named party in interest through a broker association, 

(D) has a family relationship with a named party in interest or (E) has 

any other significant, ongoing business relationship with a named party 

in interest, excluding relationships limited to executing Swaps opposite 

each other or to clearing Swaps through the same Clearing Participant. 

(ii) Recusal. Where the Chief Compliance Officer has or believes that he or 

she may have one of the relationships listed in this Rule with a named 

party in interest, or where the Chief Compliance Officer has or believes 

that he or she may have any personal, professional or familial 

relationships with respect to any person or entity, who is likely to be 

materially affected by any significant action on which the Chief 
19

Compliance Officer would participate in deliberations or decision 

making, the Chief Compliance Officer shall recuse himself or herself 

from the matter giving rise to the conflict and the Board shall appoint an 

individual meeting all the requirements of a Chief Compliance Officer to 

serve as Chief Compliance Officer for the specific matter giving rise to 

the conflict. 

(iii) Disclosure. Prior to consideration of any matter involving a named party 

in interest, each member of the deliberating body shall disclose to the 

Chief Executive Officer, or his or her designee, whether such member 

has or believes that he or she may have one of the relationships listed in 

paragraph (b)(i) of this Rule 209 with a named party in interest. 

(iv) Procedure and Determination. The Chief Executive Officer, or his or her 

designee, shall determine whether any member of the relevant 

deliberating body is subject to a conflicts restriction under this 

paragraph (b). Such determination shall be based upon a review of the 

following information: 

(A) information provided by such member pursuant to clause (iii) 

above and any additional information requested by the Chief 

Executive Officer or his or her designee; and 

(B) any other source of information that is held by and 

reasonably available to the self-regulatory organization. 

(c) Financial Interest in a Significant Action Conflict. 

(i) Prohibition. No Officer, Chief Compliance Officer or member of the 

Board or any standing committee shall participate in such body’s 

deliberations and voting on any significant action if such person knows 

or reasonably should know that he or she has a direct or indirect 

substantial financial interest in the result of the vote based upon either 

RTX SEF or non-RTX SEF positions that could reasonably be expected to 

be affected by the significant action under consideration, as determined 

pursuant to this paragraph (c). 

(ii) Procedure for Determination. The RTX SEF shall follow the following 

procedure for determining whether any member of its governing board, 

disciplinary committees or oversight committees is subject to a conflicts 

restriction under this section in any significant action. Such a member 

shall seek the review of the Chief Compliance Officer, whose 

determination must include a review of:

(A) Gross positions held at the RTX SEF in the member’s personal 

accounts or “controlled accounts,” as defined in Commission 

Rule 1.3(j); 

(B) Gross positions held at the RTX SEF in proprietary accounts, as 

defined in Commission Rule 1.17(b)(3), at the member’s 

affiliated firm;

(C) Gross positions held at the RTX SEF in accounts in which the 

member is a principal, as defined in Commission Rule 3.1(a); 
20

(D) Net positions held at the RTX SEF in “customer” accounts, as 

defined in Commission Rule 1.17(b)(2), at the member’s 

affiliated firm; and, 

(E) Any other types of positions, whether maintained at the RTX 

SEF or elsewhere, held in the member’s personal accounts or 

the proprietary accounts of the member’s affiliated firm that 

the RTX SEF reasonably expects could be affected by the 

significant action. 

(iii) Procedure and Determination. The Chief Compliance Officer shall 

determine whether any member of the relevant deliberating body is 

subject to a conflicts restriction under this paragraph (c) based upon a 

review of the most recent large trader reports and clearing records 

available to the RTX SEF, information provided by such member with 

respect to positions pursuant to clause (ii) above and any other source 

of information that is held by and reasonably available to the RTX SEF, 

taking into consideration the exigency of the significant action being 

contemplated. 

(iv) Deliberation Exemption. Any Officer, member of the Board, a 

“disciplinary committee” or “oversight panel” (both as defined in 

Commission Regulation 1.69) who would otherwise be required to 

abstain from deliberations and voting pursuant to this paragraph (c) 

(excluding the Chief Compliance Officer) may participate in 

deliberations, but not voting, if the deliberating body, after considering 

the factors specified below, determines that such participation would 

be consistent with the public interest, provided, however, that before 

reaching any such determination, the deliberating body shall fully 

consider the position information specified in clause (ii) above which is 

the basis for such member’s substantial financial interest in the 

significant action that is being contemplated. In making its 

determination, the deliberating body shall consider: 

(A) whether such member’s participation in deliberations is 

necessary to achieve a quorum; and 

(B) whether such member has unique or special expertise, 

knowledge or experience in the matter being considered. 

(d) Documentation. The minutes of any meeting to which the conflicts 

determination procedures set forth in this Rule apply shall reflect the following 

information: 

(i) the names of all members of the relevant deliberating body who 

attended such meeting in person or who otherwise were present by 

electronic means; 

(ii) the name of any member of the relevant deliberating body who 

voluntarily recused himself or herself or was required to abstain from 

deliberations or voting on a matter and the reason for the recusal or 

abstention, if stated; and 
21

(iii) information on the position information that was reviewed for each 

member of the relevant deliberating body. 

210. Prohibition on Admission as Participant

No officer or employee of the RTX SEF shall be admitted as a Participant; provided 

however, nothing in this rule limits or precludes an Execution Specialist from carrying 

out his or her functions.
22

PART 3. PARTICIPANTS

301. Status of Participants

(a) Participants shall have the privileges, rights and obligations set forth in, or 

established pursuant to, these Rules. 

(b) Subject to the requirements and procedures set forth in this Part 3, Trading 

Privileges shall be offered to all Applicants from time to time approved by the 

RTX SEF as eligible to be Participants, subject to any limitation, restriction or 

revocation from time to time imposed by the RTX SEF. Trading Privileges are 

non-transferable, non-assignable and may not be sold or leased. 

302. Eligibility

(a) Unless otherwise prohibited by these Rules, any Person is eligible to become a 

Participant, provided that such Person meets the following standards: 

(i) the Applicant satisfies the definition of Eligible Contract Participant; 

(ii) if a natural person, the Applicant shall have attained the age of majority 

and shall be of good character; 

(iii) if an Entity, the Applicant shall be duly organized, existing and in good 

standing under the laws of its jurisdiction of organization; 

(iv) the Applicant shall have good commercial standing and business 

experience; 

(v) the Applicant shall have adequate financial resources and credit as 

reasonably determined by the RTX SEF; 

(vi) the Applicant shall, where relevant, be registered, licensed or otherwise 

permitted by the appropriate Governmental Agency to conduct 

business on the Trading System or subject to the rules of the RTX SEF; 

(vii) the Applicant shall have such operational capabilities (including without 

limitation such hardware, software, communications systems and 

staffing) as the RTX SEF may from time to time determine is appropriate 

in view of such Person’s anticipated type and level of activity on the 

Trading System or subject to the rules of the RTX SEF; 

(viii) the Applicant shall meet any other criteria that the RTX SEF may from 

time to time prescribe. 

303. Application Procedures

(a) Every Person applying to become a Participant shall complete an application on 

a form prescribed by the RTX SEF and shall file it with the RTX SEF with any 

documents that the RTX SEF requires. 
23

(b) An Applicant must name in its application for admission a natural person who 

will be authorized to represent it. An Applicant must name at least one natural 

person who, if approved by the RTX SEF, will be an Authorized Trader. An 

Applicant who is a natural person shall be considered by the RTX SEF to be both 

the representative and the Authorized Trader. The Participant may change an

Authorized Trader at any time, but only after notifying RTX SEF in writing in 

advance.

(c) The Applicant must designate at least one senior officer who is responsible for 

supervising all activities of its employees relating to transactions effected on the 

Trading System or subject to the RTX SEF’s Rules and advise the RTX SEF of the 

name, title, and address for the senior officer, phone number, fax number and 

e-mail address of each such officer; 

(d) An Applicant shall: 

(i) agree to abide by the Rules of the RTX SEF and adhere to Applicable 

Law; and 

(ii) consent to the jurisdiction of the RTX SEF in all matters arising under the 

Rules. 

(e) Every Applicant and all Persons associated with the Applicant may be 

investigated by the RTX SEF. The Applicant shall file with the RTX SEF any 

additional information and documents as the RTX SEF, or any individual, 

corporation, RTX SEF or association authorized by the RTX SEF to act on its 

behalf, may request. 

(f) Upon completion of the application process, the RTX SEF shall consider and then 

approve or reject the application for admission, unless there is just cause for 

delay. Applicants who are natural persons as well as holders of a significant 

interest in and/or senior management of Applicant Entities may be required to 

appear in person before the RTX SEF. The RTX SEF may also require any 

Participant, significant shareholder or manager associated with a Participant 

who may possess information relevant to the Applicant’s suitability for 

membership to provide additional information. 

(g) The RTX SEF shall approve an application for admission if it finds that the 

Applicant meets all of the qualifications to become a Participant. The RTX SEF

shall reject an application for admission if it does not make such a finding or if it 

finds that, if the application were approved, the Participant would be subject to 

suspension or expulsion under the provisions of these Rules or Applicable Law, 

including, without limitation, the Commodity Exchange Act. 

(h) Written notice of the action of the RTX SEF, specifying in the case of rejection of 

an application the grounds therefore, shall be given promptly to the Applicant. 

304. Denial of Admission

(a) The RTX SEF may deny the application of any Person (or a Person associated 

with the Applicant) to become a Participant if the Person: 
24

(i) does not meet one or more of the standards of eligibility set forth in 

Rule 302 or does not follow the procedures to apply for admission set 

forth in these Rules or established by the RTX SEF; 

(ii) has been convicted of any felony or misdemeanor involving, arising 

from, or related to, the purchase or sale of any Commodity, security, 

futures contract, option or other financial instrument, or involving or 

arising from fraud or moral turpitude, or is permanently or temporarily 

enjoined by order, judgment or decree of any court of competent 

jurisdiction or any Governmental Agency from engaging in or continuing 

any conduct or practice in connection with the purchase or sale of any 

Commodity, security, futures contract, option or other financial 

instrument, or is or has been subject to an order of the Commission 

denying the Person trading privileges on or subject to the rules of any 

registered entity; 

(iii) has had any fine, cease and desist order, denial of trading privileges, 

censure or other discipline (whether through an adverse determination, 

voluntary settlement or otherwise) imposed on such Person by any 

Governmental Agency; 

(iv) has ever been expelled from, suspended by or subject to any other 

disciplinary action (whether through an adverse determination, 

voluntary settlement or otherwise) imposed on such person by any SRO; 

(v) is subject to any material unsatisfied judgments, the enforcement of 

which has not been stayed by a court of competent jurisdiction; 

(vi) has made any false or misleading statement in or in connection with any 

application filed with the RTX SEF; 

(vii) is subject to a statutory disqualification as defined in the Securities 

Exchange Act; or 

(viii) if, under all of the circumstances, the RTX SEF in its discretion 

determines that admitting the Person as a Participant would not be in 

the best interests of the RTX SEF and the denial is otherwise consistent 

with the RTX SEF’s obligations under the Act. 

(b) In the event that an application for membership is denied by the RTX SEF, the 

Applicant shall have an opportunity to be heard upon the specific grounds for 

the denial. An Applicant denied membership may challenge the denial by filing 

with a petition for review of the denial by the RTX SEF’s Appeals Committee. The 

petition shall be filed within thirty calendar days of the date upon which the RTX 

SEF’s decision was mailed to the Applicant. Hearings shall be conducted in a 

manner that will give the Person an opportunity to present fully and fairly to the 

RTX SEF the Person’s reasons why the application should be granted. 
25

305. Admission of a Participant

(a) In the event that the RTX SEF grants the application for admission of any Person 

to become a Participant (or at any time prior thereto), the Person shall, within 

such time as the RTX SEF may specify, take the following actions: 

(i) unless the Applicant is itself a Clearing Participant, declare on a form 

prescribed by the RTX SEF that it has in effect an agreement with a 

Clearing Participant to clear the Applicant’s transactions; 

(ii) file such other documents and take such other actions as the RTX SEF

may prescribe; and 

(iii) establish and maintain a working connection with the Trading System in 

accordance with such procedures and protocols as the RTX SEF may 

have in effect from time to time. 

(b) Upon completing such actions, such Person shall become a Participant, with all 

of the rights, privileges and obligations set forth in, or established pursuant to 

the Rules; and 

(i) the RTX SEF shall notify the Person of the effective date and time of 

becoming a Participant and of the Participant ID and, in the case of a 

Clearing Participant, the Clearing Participant ID; 

(ii) if the Person does not complete the actions specified in paragraph (a) 

within the time specified by the RTX SEF, then unless the RTX SEF

extends the time, the Person shall be deemed to have withdrawn the 

application to become a Participant. 

306. Authorized Traders, Brokers and Customers

(a) Authorized Traders. 

(i) Each Participant or Broker that is not a natural Person shall appoint one 

or more persons to act as an Authorized Trader, and any such 

Authorized Trader shall be entitled to exercise Trading Privileges on 

behalf of the Participant or Broker subject to the terms and conditions 

of these Rules. 

(ii) A Participant or Broker wishing to appoint an Authorized Trader shall 

notify the RTX SEF and each Authorized Trader will consent to abide by 

the Rules of the RTX SEF and Applicable Law prior to accessing the 

Trading System. Each Authorized Trader must satisfy such requirements 

as may be prescribed by the RTX SEF from time to time and shall be 

subject to the disciplinary authority of the RTX SEF, including possible 

restriction or revocation of Trading Privileges. 

(b) Brokers.

(i) A Broker may exercise Trading Privileges on the RTX SEF subject to the 

terms and conditions of these Rules by: 
26

(A) completing and filing an application on a form prescribed by the 

RTX SEF with any documents that the RTX SEF requires; 

(B) consenting to abide by the Rules of the RTX SEF and Applicable 

Law prior to accessing the Trading System, and 

(C) satisfying such requirements as may be prescribed by the RTX 

SEF from time to time. 

(D) Trading Privileges shall be offered to all Brokers whose 

application has been accepted by the RTX SEF, and the RTX SEF

shall issue such a Broker a User ID and password or identifiers. A 

Broker that exercises Trading Privileges shall be subject to the 

disciplinary authority of the RTX SEF, including possible 

restriction or revocation of Trading Privileges. 

(ii) A Broker shall not submit Orders, report Off-Facility Transactions, or 

submit Block Trades to the RTX SEF, except with approval from the 

relevant Participant’s Authorized Trader.

(iii) A Participant may designate one or more Brokers to: 

(A) conduct Off-Facility Transactions; 

(B) enter Bids, Offers or Orders into the Trading System on the 

Participant’s behalf; 

(C) assist in pre trade discussions as permitted under Rule 505; or 

(D) assist in arranging Block Trades. 

(iv) A Participant shall designate one or more Brokers as authorized to act 

on the Participant’s behalf by notifying the RTX SEF in writing, or 

verbally with a writing to follow, that the Participant has authorized the 

Broker to act on the Participant’s behalf. A Participant shall have no 

supervisory responsibility for the actions of a Broker in connection with 

the Broker’s conduct relating to Off-Facility Transactions or trading on 

or subject to the Rules of the RTX SEF. 

(v) Notwithstanding subparagraph (b)(iv) of this Rule, a Broker that is a 

corporate affiliate of the RTX SEF, in each case such affiliated Broker 

having consented to abide by the Rules of the RTX SEF and Applicable 

Law, shall be deemed by the RTX SEF to be designated as the 

Participant’s Broker upon the Participant’s submission of Bids or Offers 

to the RTX SEF or, as applicable, an Off-Facility Transaction, via such 

affiliated Broker. A Broker acting as such for a Participant under this 

subparagraph (b)(v) need not be designated to act on behalf of the 

Participant through a separate writing as required in subparagraph 

(b)(iv). 

(c) Customers.

(i) Any Participant may enter a Swap under its own Participant ID for a 

Customer if the Participant: 
27

(A) complies with any registration requirement that applies under 

Applicable Law, including all Customer on-boarding 

requirements and any applicable Commission Rules relating to 

the conduct of business by such Participant with a Customer; 

(B) ensures that its Customer is an Eligible Contract Participant; 

(C) assures the financial performance of all trades and positions for 

its account by providing to the RTX SEF, in a form acceptable to 

the RTX SEF, a representation that the Customer’s positions are 

guaranteed by a Clearing Participant; and 

(D) provides the RTX SEF with any information necessary for 

reporting purposes. 

(d) Each Participant may at any time revoke an authorization granted by it to a 

Broker by providing either written notice of such revocation, or verbal notice 

with written notice to follow to the RTX SEF. A Participant after such revocation 

shall take immediate measures: 

(i) to withdraw all resting Orders of the Broker from the Trading System, or 

to request that the RTX SEF delete such Orders; 

(ii) to ensure that the revoked Broker, where applicable, shall not have 

access to the Trading System or to Order execution subject to the rules 

of the RTX SEF; and 

(iii) to ensure that the revoked Broker, where applicable, shall not utilize its 

User ID. 

(e) All trading-related provisions of these Rules shall apply to each Broker (and their 

Authorized Traders) and other Supervised Persons, and each Participant shall be 

responsible for the actions and omissions of each of its Authorized Traders, 

other Supervised Persons. Each Participant will ensure on an ongoing basis that 

none of its Authorized Traders, other Supervised Persons is subject to statutory 

disqualification as defined by the Commodity Exchange Act (unless an 

appropriate exemption has been obtained with respect thereto). 

(f) Each Participant will ensure that each of its Authorized Traders, other 

Supervised Persons (as applicable) will be technically proficient in respect of the 

use of the Trading System. Each Participant shall have procedures for 

performing day-to-day monitoring of its Authorized Traders, other Supervised 

Persons to ensure that each will conduct its business in a fair and equitable 

manner and in accordance with the Rules of the RTX SEF. 

(g) For purposes of these Rules, any reference to the Trading Privileges of a 

Participant shall also be deemed to refer and apply to the exercise of Trading 

Privileges by any of such Participant’s Broker whether designated or deemed 

designated and shall be deemed to refer and to apply to the exercise of Trading 

Privileges by a Broker’s Authorized Traders. 

(h) For purposes of these Rules, any reference to a Participant submitting or 

receiving Orders, Bids, Offers or Message traffic into or from the Trading System 

or RTX SEF or engaging in transactions in Swaps matched through the Trading 
28

System or an Off- facility Transaction reported to the RTX SEF and executed 

subject to the Rules of the RTX SEF, shall be deemed to also refer and apply to 

any such actions engaged in by any of such Participant’s Broker and the 

knowledge of, or matters known to, any Participant shall be deemed to also 

refer to and include the knowledge of, or matters known to, its Authorized 

Traders other Supervised Persons. 

307. Surveillance

The RTX SEF has contracted with Eventus Systems, Inc for the performance of market

surveillance, trade practice, and audit trail surveillance. The failure by any Person 

subject to the RTX SEF’s Rules to furnish any information requested by the entity that 

are related to the performance of these functions, as authorized by the RTX SEF and 

acting on behalf of the RTX SEF with respect to these functions, shall constitute a 

violation of these Rules. The RTX SEF retains ultimate responsibility for the oversight of 

each Participant. 

308. Recording of Conversations

Participants and Brokers acknowledge and consent to the RTX SEF’s right and power to 

record conversations between employees, officers and agents of the RTX SEF and 

Participants and Brokers and, their employees, officers and agents, to the extent 

permitted by Applicable Law. Participants and Brokers shall inform their employees and 

agents of the RTX SEF’s right and power to record conversations and shall obtain their 

consent thereto. The RTX SEF shall retain any such recordings under the terms and 

conditions the RTX SEF may prescribe from time to time and pursuant to Commission 

rules.

309. Market Data

(a) Subject to each Participant’s rights in its Participant Data, and unless otherwise 

provided for in Rule 309(c), the RTX SEF owns all rights, title and interest in and 

to all intellectual property and other proprietary rights (including, without 

limitation, all copyright, patent, trademark or trade secret rights) in Market 

Data, and all derivative works based thereon. No Person including but not 

limited to Participants, Brokers, employees, agents, vendors and other Persons 

affiliated with any of the foregoing may use (except that each Participant and 

Broker may use solely internally for the purposes of the Participant executing 

Swap transactions on the Trading System), or distribute, sell or retransmit 

Market Data to any third party without the consent of the RTX SEF, nor take any 

action contrary or detrimental to RTX SEF’s interest in the Market Data. RTX SEF

may at any time further restrict use of or access to or establish utilization fees in 

respect of Market Data. 

(b) For the avoidance of doubt and notwithstanding any provisions of Rule 309 or 

Rule 1208: (1) each Participant retains such proprietary interest in its Participant 

Data and no restrictions herein shall apply to Participant’s use of such 

Participant Data or resulting executions by the Participant; and (2) no 
29

restrictions herein shall apply to RTX SEF’s use or disclosure either for the 

purpose of fulfilling the RTX SEF’s regulatory obligations or as may be required 

by Applicable Law of any Participant Data or any data or information that has 

been collected or received from any Participant or from its Broker, employees, 

agents, vendors or other Persons affiliated with any of the foregoing. 

(c) Unless a Participant provides written notice to the General Counsel of the RTX 

SEF, such writing may be electronic, the RTX SEF may not use for business or 

marketing purposes Proprietary Data or Personal Information that has been 

collected or received from such Participant or from any of its Brokers, 

employees, agents, vendors and their Affiliates and other Persons affiliated with 

any of the foregoing for the purpose of fulfilling the RTX SEF’s regulatory 

obligations. Provided however, the RTX SEF may share such Proprietary Data or 

Personal Information with one or more registered entities (as such term is 

defined in Commission Regulations) where necessary for regulatory purposes. 

Access to the RTX SEF will not be conditioned upon the consent to use such 

Proprietary Data or Personal Information for business or marketing purposes 

and no Person shall be denied access to the RTX SEF as a consequence of refusal 

to submitting such notice to the RTX SEF. 

(d) Unless otherwise provided for Rule 309(c), for the avoidance of doubt, nothing 

herein restricts use, distribution, sublicense, disclosure or sale, in any manner, 

media or jurisdiction and each Participant and Broker on behalf of itself and its 

Affiliates and other Persons affiliated with any of the foregoing hereby grants 

the RTX SEF a non- exclusive, perpetual, freely transferable, irrevocable, 

worldwide and royalty-free license to use, distribute, sublicense, disclose and 

sell, in any manner, media and jurisdiction (in each case, for the benefit of the 

RTX SEF and/or its Affiliates) Participant Data on an aggregated basis without 

directly or indirectly identifying any Participant. 

310. Liquidity Provider Programs

From time to time, RTX SEF, in order to provide liquidity and orderliness in a market, 

may adopt certain programs granting one or more Participants certain benefits in return 

for assuming and adequately performing obligations (“Liquidity Providers”). Such 

programs will be available to all Participants. Any such program may contain: 

(a) The qualifications to become a Liquidity Provider, including without limitation 

any minimum net capital requirements; 

(b) The procedure by which a Participant may seek and receive designation as a 

Liquidity Provider; 

(c) The obligations of a Liquidity Provider, including without limitation, maximum 

Bid/Offer spread and minimum quote size in certain Products; and/or 

(d) The benefits granted a Liquidity Provider, including without limitation, reduced 

transaction fees and or certain compensatory payments from the RTX SEF. 
30

311. Termination of Participation

(a) The participation of any Person may be terminated at any time by the RTX SEF

pursuant to Part 10 of the Rules; or the participation of a Participant may be 

terminated if the RTX SEF shall determine, after reasonable notice and an 

opportunity to be heard, that such Participant no longer meets any one or more 

of the eligibility standards set forth in Rule 302; provided, however, nothing in 

this section shall limit the RTX SEF’s right to summarily suspend any Person 

having Trading Privileges under Rule 1015(a). 

(b) A Participant may terminate voluntarily its status upon written notice to the RTX 

SEF, specifying the effective date of termination, which shall be (A) not less than 

30 days following the date of giving of such notice or (B) such other date as may 

be approved by the RTX SEF. Notwithstanding the 30 day notification period, a 

Participant may voluntarily suspend its Participant status immediately upon 

notice to the RTX SEF and cessation of trading activities. The Participant shall 

incur no new liability during the period of its voluntary suspension. 

(c) Notwithstanding any termination of its membership, a Participant shall remain 

subject to the jurisdiction of the RTX SEF after the effective date of termination 

with respect to any investigation or proceeding against the Person pursuant to 

Part 10 of the Rules or any claim in arbitration filed against the Person pursuant 

to Part 11 of the Rules that is commenced by the RTX SEF within two years of 

the effective date of termination. 

(d) Any Participant whose participation has been terminated shall immediately 

notify the RTX SEF of any change in its address as most recently reported to the 

RTX SEF for a period of one year following the effective date of termination. 
31

PART 4. OBLIGATIONS OF PARTICIPANTS

401. Payment of Fees and Assessments 

The RTX SEF, in its discretion and with reasonable written notice, may impose fees, 

charges and assessments upon Participants and Brokers. Participants, or as applicable, a 

Broker registered with the Commission, trading for a Participant, shall pay any fees, 

charges and assessments in a manner prescribed by the RTX SEF on a prompt basis. The 

RTX SEF may suspend any Participant or impose other penalties pursuant to Part 10 for 

failure to pay any such fee, charge, or assessment on a timely basis.

402. Compliance with the Rules

Each Participant, Authorized Trader, Customer, or Broker shall, by making application 

for a User ID or by placing any Order directly or indirectly, shall have agreed to:

(i) be bound by the Rules of the RTX SEF;

(ii) be subject to the jurisdiction of the RTX SEF;

(iii) comply with all applicable Rules of RTX SEF; and

(iv) comply with Applicable Law.

403. Required Records and Reporting 

Each Participant shall make and file reports relating to the RTX SEF in accordance with 

(and in the manner and form and at such times as may be prescribed by) Commission 

Regulations.

(a) Commission Reporting Requirement for Swaps. The RTX SEF will report each 

Swaps transaction (including those Swaps as part of Package Transactions) to a 

swap data repository chosen by the RTX SEF as soon as technologically 

practicable after execution. The Reporting Party for each Swap executed on or 

subject to the Rules shall be established pursuant to CFTC Regulation 45.8. If 

both counterparties to a Swap executed pursuant to the Rules are equal in the 

hierarchy (for example, both are Swap Dealers), the Reporting Party for such 

Swap shall be determined as follows: 

(i) For interest rate Swaps, the fixed rate payer when a single fixed rate 

payer exists, otherwise the party with the first swap identifier when 

sorted in reverse ASCII sort order, using the Legal Entity Identifier, DTCC 

ID, and no identifier, ranked in that order, and for swaptions, the option 

buyer; 

(ii) For FX Swaps, the seller of the currency that occurs first in the English 

alphabet; for options, the seller. 

(b) Reporting of Errors. Any errors or omissions in Swap transaction and pricing 

data (except for the cancellation of trades and price adjustments made under 
32

the provisions of and subject to the procedures of Rule 514) that were publicly 

disseminated in real time shall be corrected as follows. 

(i) If a party to the Swap becomes aware of an error or omission in the 

Swap transaction and pricing data reported with respect to such Swap, 

such party shall promptly notify the other party of the error and/or 

correction. 

(ii) If a Reporting Party to a Swap itself becomes aware of an error or 

omission in the Swap transaction or pricing data which the RTX SEF

reported to a SDR, or such error is reported to it by the other party, the 

Reporting Party shall promptly submit corrected data to the RTX SEF in 

writing; such writing may be electronic, in the form and manner 

specified by the RTX SEF. 

(iii) The RTX SEF shall promptly submit corrected data to the SDR to which 

the transaction and pricing data was first reported for those errors of 

which the RTX SEF becomes aware or that are reported to it. 

(iv) No Participant shall submit or agree to submit a cancellation or 

correction to the RTX SEF for the purpose of re-reporting Swap 

transaction and pricing data in order to gain or extend a delay in public 

dissemination of accurate Swap transaction or pricing data or to 

otherwise evade this reporting requirement. 

(c) Commission Recordkeeping Requirements. Each Participant or Customer shall 

keep all records relating to the RTX SEF that are required by the Commission 

and Applicable Law to be kept, in such form and manner and for such period, as 

required by Commission Rule and Applicable Law, including but not limited to 

records by a Participant or Customer of its trading, including records of its 

activity in the index or instrument used as a reference price, the underlying 

commodity, and related derivatives markets, and make such records available, 

upon request, to the RTX SEF or, if applicable, and the Commission. 

(d) RTX SEF Reporting Requirements. Each Participant shall make and file reports 

with the RTX SEF at the times, in the form, and containing such information 

relating to the RTX SEF as the RTX SEF may prescribe from time to time. 

(e) RTX SEF Recordkeeping Requirements. 

(i) Each Participant and, as applicable, Broker, shall make such records 

relating to orders received, transactions effected, and positions carried 

relating to the RTX SEF, and shall maintain such records in such form 

and manner and for such time, as required by Commission Rule and 

Applicable Law. Such records shall at all times be open to inspection by 

the RTX SEF upon reasonable prior notice and subject to Participant’s 

reasonable security policies. Such reasonable security policies may 

include a requirement that inspections be conducted by authorized 

personnel acting within the scope of their authority, that inspection be 

carried out on premise, that the inspection be on systems provided by 

the Participant, and that the inspecting personnel keep a record of all 

documents inspected and provide such record to Participant. 
33

(ii) Audit Trail Records. Each Participant and, as applicable, Broker, shall 

make and retain all audit trail records. Such records shall include, but 

are not be limited to, User IDs, records of customer order information 

(whether filled, unfilled, or cancelled), account identifiers that relate the 

account to the account owner, time of Order entry, all Orders, 

indications of interest, or request for quotes and customer-typeindicator codes. 

(f) Responding to Information Requests. 

(i) Each Participant, and, as applicable, Broker, shall timely furnish the 

information relating to the RTX SEF as may from time to time be 

requested by any representative of the RTX SEF acting within the scope 

of the jurisdiction of the RTX SEF and in the course of its, his or her 

duties, except to the extent prohibited by Applicable Law. Any 

representative of the RTX SEF when engaged in the examination of any 

subject within the RTX SEF’s jurisdiction, has the power to summon and 

examine any Participant or Broker and any employee, officer, partner, 

or agent thereof in order to carry out the RTX SEF’s functions, except to 

the extent prohibited by Applicable Law. The representative of the RTX 

SEF may require such individual to submit a sworn statement of his or 

her information. 

(ii) From time-to-time, RTX SEF shall review each Participant’s and each 

Broker’s compliance with the applicable recordkeeping and audit trail

requirements of the RTX SEF, including, but not limited to the 

requirements of this Rules 403, 407, 510, and 512,

(g) Employee Supervision and Training. Each Participant shall reasonably supervise 

all activities of its employees relating to transactions effected on the Trading 

System or subject to these Rules. Without limiting the generality of the 

foregoing: 

(i) each Participant shall continue to have at all times at least one senior 

officer who is responsible for such supervision and shall promptly advise 

the RTX SEF of any change in the name, title, address, phone number, 

fax number or e-mail address of each such officer; 

(ii) each Participant shall be responsible for training its employees 

regarding the requirements of these Rules, the Commodity Exchange 

Act, and Commission Regulations; 

(iii) each Participant shall furnish the RTX SEF with the name, location, birth 

date (or other acceptable identifier) and User ID of each Authorized 

Trader; and

(iv) each Participant is responsible for ensuring that each of its Authorized 

Traders receives training regarding these Rules and in the operation and 

propose use of the Trading System.

(v) The RTX SEF reserves the right to refuse or revoke access to the Trading 

System of any Authorized Trader when such action would serve the best 

interests of the RTX SEF, and to the extent practicable under the 
34

circumstances, will provide notice to the Participant prior to taking such 

action. 

(h) Rules Violations by Employees. Any violation of the Rules by any employee of a 

Participant shall constitute a violation of the Rules by such Participant. 

(i) Responsibility for Swaps Entered Under Participant ID. Each Participant shall be 

fully responsible for timely performance of all obligations under or in 

connection with any Swap or contract resulting from the entry of any order into 

the Trading System with such Participant’s Participant ID and any Swap 

otherwise resulting and reported to the Trading System with such ID. 

(j) Order Entry Under Participant ID. Each Participant shall be responsible for 

assigning and reporting of any message input mnemonic indicator that may be 

required by the RTX SEF to be included with orders submitted to the Trading 

System for the entry of any order into the Trading System under such 

Participant’s Participant ID. 

(k) Maintenance of Eligibility for Trading. Each Participant shall at all times 

continue to meet the standards of eligibility set forth in Rule 302 and not be 

subject to any of the grounds for denial of an application for admission as a 

Participant set forth in Rule 304. 

(l) Maintenance of Financial Requirements. Participants shall at all times maintain 

their financial resources at or in excess of the amount reasonably prescribed by 

the RTX SEF from time to time in respect of the Participant’s capacity at the RTX 

SEF. Any Participant registered with the Commission or with the SEC must 

comply with the applicable financial requirements set forth by the Commission 

or SEC, respectively. 

(m) Due Diligence in Handling Customer Orders. Each Participant shall use due 

diligence in receiving and handling orders from their customers, entering such 

orders into the Trading System, responding to inquiries from customers about 

their orders and reporting back to customers the execution of such orders. 

(n) Priority of Customer Order Entry. Each Participant shall establish and enforce 

internal rules, procedures, and controls to ensure, to the extent possible, that 

each order received from a customer which is executable at or near the market 

price is entered into the Trading System before any order having the same 

Tenor in the same Swap for: 

(i) any Proprietary Account, 

(ii) any other account in which any Affiliate of the Participant has an 

interest, or 

(iii) any account for which the Participant, Affiliate, or an employee thereof 

may originate orders without the specific prior consent of the owner of 

the account, if such Participant, Affiliate, or employee has gained 

knowledge of the customer’s order prior to the entry of the orders 

specified in paragraphs (i)–(ii) above.
35

404. Requirements for Persons Submitting Orders

(a) Each Order submitted to the Trading System shall be submitted under the 

applicable User ID and shall indicate the Clearing Organization to be used upon 

trading the order as provided under Part 8 of these Rules, along with clearing 

account numbers for the Futures Commission Merchant that has agreed to clear 

their trades, along with account numbers for allocation of accounts as permitted 

by the Trading System. 

(b) To qualify to receive one or more User IDs, the Person must be a Participant, 

Authorized Trader or Broker and such Person shall meet all RTX SEF mandated 

eligibility standards of Rule 302 and other requirements under the Rules. Each 

Participant or Broker shall be responsible for granting and/or authorizing the 

use of any User ID for Orders that are submitted using that Participant’s User ID 

and shall be responsible for all Orders entered, or other actions taken, through 

the use of its User IDs. 

(c) Each Participant, Authorized Trader, or Broker, as applicable, shall provide in 

writing to the RTX SEF, and keep current such information as the RTX SEF may 

require concerning (i) itself, and (ii) in the case of a Participant, each of its 

Authorized Traders. 

(d) Each Participant, as applicable, shall provide in writing to the RTX SEF upon 

request, such information as the RTX SEF may reasonably require concerning 

each of its Supervised Persons, including but not limited to the identity of each 

such Supervised Person. 

(e) Any request that the RTX SEF activate or deactivate a User ID shall be submitted 

in writing by a Designated Contact(s) of the relevant Person in the manner 

provided for by the RTX SEF; provided that the consent of the Designated 

Contact of a Participant shall be required for the activation of the User ID of any 

of such Participant’s Authorized Traders . The Designated Contact of any 

Participant shall have the right to activate or deactivate the User ID of any of 

such Participant’s Authorized Traders. The RTX SEF shall have no liability for any 

action or inaction due to its good faith reliance upon a written request or for 

any communication system failure. 

(f) The Participant or Customer will be responsible for each Order that it enters on 

the RTX SEF for itself or which is entered on its behalf. All Orders that have been 

entered on the RTX SEF are subject to acceptance by other Participants or 

Customers. 

405. Responsibility for Orders

Except as otherwise provided by these Rules, each Participant shall be responsible for:

(i) all Orders placed by it, and by any of its Supervised Persons or Customers (in the 

case of a Participant); and 

(ii) use of any of the User IDs assigned to it and any of its Authorized (in the case of 

a Participant).
36

406. System Security

Each Participant shall:

(i) be solely responsible for controlling and monitoring the use of all User IDs 

issued to it, and its Authorized Traders by the RTX SEF;

(ii) ensure that each Person accessing the Trading System using such User IDs is 

assigned a unique password and that each password is used only by the Person 

to whom it is assigned; and 

(iii) shall notify the RTX SEF promptly upon becoming aware of any unauthorized 

disclosure or use of such User IDs or passwords or access to the RTX SEF or of 

any other reason for deactivating User IDs or passwords. 

Each Participant shall be bound by any actions taken through the use of such User IDs or 

passwords (other than any such actions resulting from the fault or negligence of the RTX 

SEF), including the execution of transactions, whether or not such actions were 

authorized by such Participant or any of its Supervised Persons or executed by anyone 

other than an Authorized Trader of such Participant. 

407. User IDs and Confidentiality

(a) No Person may use a User ID to place any Order except as permitted by these 

Rules; nor may any Person knowingly permit or assist the unauthorized use of a 

User ID. Each Participant on behalf of itself and each of its Supervised Persons 

and Customers shall ensure that no User ID is used by any Person not 

authorized by these Rules. 

(b) Participants identify to the RTX SEF User IDs that are assigned to an Automated 

Trading Application. 

(c) Participants in each case as applicable, that are not individuals, must: 

(i) restrict access through password protection to any system capable of 

submitting Orders to the RTX SEF to individual users authorized by the 

relevant Participant (including its Authorized Traders, Supervised 

Persons, and Customers); 

(ii) require creation, maintenance, and record keeping of accurate and 

complete records regarding each individual that is issued or authorized 

to use a unique User ID; 

(iii) require, in the case of a Participant to create, maintain, and record keep 

accurate and complete records regarding the individuals that are issued 

or authorized to use a unique User ID; and 

(iv) require that individuals protect and maintain the security of any User ID 

and prohibit the use of such User ID, except as permitted in this section, 

by any other Person, including subsidiaries, affiliates, divisions or 

business units of Participants. Participants may be issued, and may 
37

utilize, multiple User IDs solely for the purpose of identifying their 

subsidiaries, Affiliates, divisions or business units, which make separate 

trading decisions. Multiple individuals trading in the name of a single 

Participant or the Participant’s Customers under the same User ID are 

permitted to trade through the use of that User ID. 

(d) Confidentiality of Trading System. 

(i) Without limiting anything set forth in in these Rules, and in addition 

thereto, any and all non-public information in any form obtained by a 

Participant or its Brokers arising out of or related to the provision or use 

of the Trading System, including but not limited to trade secrets, 

processes, computer software and other proprietary data, research, 

information or documentation related thereto (“Confidential 

Information”), shall be deemed to be confidential and proprietary 

information of the RTX SEF. Participants and Brokers are required to 

hold such Confidential Information in strict confidence and the 

disclosure of such Confidential Information to third parties (other than 

to its employees, its Affiliates and their employees, its agents or 

professional advisors) or the use of such Confidential Information for 

any purpose whatsoever other than as contemplated by the Rules shall 

be a violation of this Rule. 

(ii) Confidential Information shall not include information which is: 

(A) in or becomes part of the public domain; 

(B) known to or obtained by such party previously without an 

obligation of confidentiality; 

(C) independently developed by such party outside of this 

agreement; 

(D) required to be disclosed by Applicable Law, or pursuant to a 

subpoena or order of a court or regulatory, self-regulatory or 

legislative body of competent jurisdiction, or in connection with 

any regulatory or self-regulatory request for information, or 

that the RTX SEF otherwise deems advisable, in its discretion, to 

disclose to a governmental, self-regulatory or legislative 

organization; or 

(E) information submitted by Participants or Brokers that is 

displayed by the RTX SEF on the Trading System or otherwise 

distributed or sold by the RTX SEF regarding Bids, Offers, or 

executed transactions, provided that such displays and 

distributed or resold information shall not identify Participant 

by name, unless the RTX SEF is explicitly directed to do so by 

Participant and only then for the express purposes set forth in 

and under conditions in compliance with the Rules.
38

408. Cooperation in Investigations

Each Participant, Clearing Participant, Authorized Trader, Customer, and Broker shall 

cooperate with any investigation of the RTX SEF, its designee, the Commission, or the 

Department of Justice. 

409. Notification

Each Participant shall notify the RTX SEF in writing as soon as reasonably practical (but in 

no event later than 21 days) after becoming aware of any of the following events: 

(a) Any refusal of admission to, or involuntary withdrawal of any membership or 

clearing membership in any SRO; 

(b) Any expulsion, suspension, or fine in excess of $100,000 (whether through an 

adverse determination, voluntary settlement, or otherwise) imposed by any 

SRO related to trading activities on the RTX SEF or to Products listed for trading 

on the RTX SEF; 

(c) Any denial or withdrawal of any application for any registration or license by or 

from any Governmental Agency and any revocation, suspension, or conditioning 

of any registration or license granted by any Governmental Agency which is 

related to trading activities on the RTX SEF or to products listed for trading on 

the RTX SEF to trading activities or to products listed for trading on the RTX SEF; 

(d) Any fine, in excess of $100,000, significant cease and desist order, denial of 

trading privileges, censure, or other significant sanction or discipline (whether 

through an adverse determination, voluntary settlement, or otherwise) imposed 

by any Governmental Agency or SRO with respect to activity subject to the rules 

of any Swap Execution Facility; 

(e) Any indictment of the Participant or any of its senior officers for any conviction 

of the Participant or any of its senior officers of, any confession of guilt or plea 

of guilty or nolo contendere by the Participant or any of its senior officers to any 

felony or misdemeanor involving, arising from, or related to the purchase or 

sale of any Commodity, security, futures contract, option or other financial 

instrument or involving or arising from fraud or moral turpitude; 

(f) Commencement of any judicial or administrative proceeding against the 

Participant by any Governmental Agency related to trading activities on the RTX 

SEF or to products listed for trading on the RTX SEF which could reasonably be 

expected to result in the disqualification of a Participant; 

(g) Commencement by or against the Participant of a case in bankruptcy or of any 

other action or proceeding to liquidate, reorganize or restructure the Participant 

pursuant to any applicable provision of law, federal or state, domestic or 

foreign; 

(h) Any damage to or failure or inadequacy of the systems, facilities or equipment 

of the Participant which might materially and adversely affect the ability of the 

Participant to effect transactions on the RTX SEF or subject to the Rules; to 

comply with the Rules; in the case of a Clearing Participant, to clear transactions 
39

effected on the RTX SEF or subject to the Rules; or to timely perform its 

regulatory or financial obligations under or in connection with transactions 

effected on the RTX SEF or subject to the Rules; 

(i) Any other material change in any information contained in the application for 

admission as a Participant, and 

(j) Any failure to maintain segregated funds as required by the Commission where 

the Participant is a Clearing Participant or a Futures Commission Merchant. 

410. Non-U.S. Participants

Any non-U.S. Participant that is not registered with the Commission as a Swap Dealer, 

Futures Commission Merchant, or Introducing Broker must provide the RTX SEF in the 

form and manner specified the true name, address and occupation of any Customer 

executing Swaps through the non-U.S. Participant; provided, however, this requirement 

shall not apply if the positions of the non-U.S. Participant’s customers are maintained in 

or carried by a Broker on a fully-disclosed basis. 
40

PART 5. TRADING

501. Required Transactions

(a) Execution. Required Transactions, except for Block Trades which shall be traded 

in accordance with Rule 510, shall be matched via the Electronic Order Book in 

accordance with the provisions of Rule 602, or through Voice Functionality in 

accordance with Rule 702. Each Required Transaction may be executed through 

any of the foregoing functionalities. 

(b) Clearing. All Swaps that are Required Transactions shall be settled in accordance 

with the rules of the Clearing Organization. 

(c) Mandatory Trading. A Participant that is a Swap Dealer or Major Swap 

Participant that enters into or facilitates a Swap transaction on the RTX SEF that 

is subject to mandatory clearing pursuant to Section 2(h) of the Commodity 

Exchange Act shall be responsible for compliance with the mandatory trading 

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

(d) Facilitation of Straight-Through Processing of Required Transactions. Required 

Transactions are required to be cleared. The following requirements shall 

facilitate the straight-through-processing of such transactions to the applicable 

Clearing Organization: 

(i) No Order for a Required Transaction may be submitted unless a Clearing 

Participant has been identified in advance for each party to the 

transaction; 

(ii) Each Clearing Participant as required by Commission Regulation 1.73 

shall establish risk-based limits in the proprietary account and in each

customer account based on position size, order size, margin 

requirements, or similar factors, and

(iii) Each Order entered, whether it be via the Electronic Order Book in 

accordance with Rule 602 or via Voice Functionality in accordance with 

Rule 702, shall be screened against such risk-based limits using a system 

of risk controls that ensures compliance with Commission Regulation 

1.73.

502. Permitted Transactions

(a) Execution. 

(i) Permitted Transactions may be matched via the Electronic Order Book 

in accordance with the provisions of Rule 602, or through Voice 

Functionality in accordance with Rule 702. Each cleared Permitted 

Transaction may be executed through any of the foregoing 

functionalities. 

(ii) Permitted Transactions that are not matched by the RTX SEF, having 

been entered into or confirmed and reported to the RTX SEF subject to 

the provisions of Rule 512, shall be recorded as a transaction executed 
41

subject to the rules of the RTX SEF. Each cleared or uncleared Permitted 

Transaction may be executed under the provisions of Rule 512. 

(b) Clearing. All Swaps that are Permitted Transactions shall be settled in 

accordance with the rules of the Clearing Organization. 

(c) Facilitation of Straight-Through Processing of Permitted Transactions. The 

following requirements shall facilitate the straight-through-processing of such 

transactions to the applicable Clearing Organization: 

(i) No Order for a Permitted Transaction may be submitted unless a 

Clearing Participant has been identified in advance for each party to the 

transaction; 

(ii) Each Clearing Participant as required by Commission Regulation 1.73 

shall establish risk-based limits in the proprietary account and in each

Customer account based on position size, order size, margin 

requirements, or similar factors, and

(iii) Each Order entered, whether it be via the Electronic Order Book in 

accordance with Rule 602 or via Voice Functionality in accordance with 

Rule 702, shall be screened against such risk-based limits using a system 

of risk controls that ensures compliance with Commission Regulation 

1.73.

503. Trading Day and Trading Hours

(a) From time-to-time, RTX SEF shall determine the Trading Days for each 

calendar year and Trading Hours.

(b) RTX SEF shall publish notice of its Trading Hours, Trading Days, and holidays 

on its website. Unless expressly stated on the website, all time references 

shall be based upon local time in New York, New York. 

(c) Trading Hours may vary by product. The Support Desk will be staffed and 

operate at all times during the Trading Hours of any Swap transaction.

(d) No Person may make any Bid or Offer for, or engage in any transaction in, any 

Swap before or after such hour outside of Trading Hours for that Swap.

505. Pre-Execution Discussions and Cross Trades

(a) No Person shall enter a pre-discussed Required Transaction through the 

Electronic Trading System or through Voice Functionality for illegal or improper 

purposes (including, without limitation, any conduct prohibited by Part 9 of 

these Rules) or for a Required Transaction knowingly assume on its own behalf 

or on behalf of a Customer account the opposite side of its own Order or its 

Customer’s Order (a “Cross Trade”), except where the Person is entering into 

both sides of a Customer Order on a non- discretionary, pre-arranged basis, 

unless: 
42

(i) Prior written blanket or transaction specific consent has been obtained 

in respect of any relevant Customer account; 

(ii) The Person waits for at least 15 seconds (or such other time as the RTX 

SEF may publish from time to time for particular contracts based upon 

liquidity or such other product-specific considerations as may be 

permitted under Commission Rule 37.9(b)(2)) after the initial Order is 

submitted to the Trading System or Execution Specialist before 

submitting the opposite side; 

(iii) The trade was matched but unable to be executed on a system or venue 

and was sent to the RTX SEF for execution in accordance with Rule 603, 

as applicable; 

(iv) The trade is Block Trade in accordance with Rule 510. 

(b) Notwithstanding the foregoing, a Participant shall not be in violation of this rule 

due to Cross Trades executed by two Participants trading for the same account, 

or for separate accounts of the same beneficial ownership, where neither 

Participant has knowledge of the other’s Order and there is no coordination or 

prearrangement of the Cross Trade, provided that the relevant Participant shall 

be responsible, upon the request of the RTX SEF, to demonstrate to the 

reasonable satisfaction of the RTX SEF, that neither Participant had knowledge 

of the other’s Order. 

(c) For the avoidance of doubt, no delay in entering both sides of a pre-discussed 

Permitted Transaction or of a Cross Trade of a Permitted Transaction through 

the Electronic Trading System or through Voice Functionality is required. No 

Person shall enter a pre-discussed Permitted Transaction or Cross Trade in a 

Permitted Transaction for illegal or improper purposes (including, without 

limitation, any conduct prohibited by Part 9 of these Rules). 

506. Entering Orders

(a) A Participant shall not withhold, cancel or withdraw from the Trading System 

any Order, or any part of an Order, for the benefit of any other Customer. 

(b) No Participant shall enter an Order into the Trading System or submit an Order 

to an Execution Specialist for its own account, an account in which it has a direct 

or indirect financial interest or a discretionary account, including, without 

limitation, an Order allowing discretion as to time and price, when such 

Participant is in possession of any Order for the benefit of a Customer that the 

Trading System is capable of accepting or which is capable of being traded in a 

Voice Trading Session, as applicable. 

507. Prohibited Orders

It shall be prohibited for any Participant: 

(a) To enter, report or confirm any Bids, Offers, or transactions to the RTX SEF when 

such Participant knows or should have known that it is insolvent, within the 
43

meaning of any applicable bankruptcy or insolvency laws, federal or state, 

domestic or foreign, without the prior written approval of the RTX SEF; 

(b) To enter, report or confirm Bids, Offers, or transactions to the RTX SEF other 

than in good faith for the purpose of executing transactions, or to make any Bid 

or Offer that is not for a true and bona fide price or that is for the purpose of 

establishing a market price which does not reflect the true state of the market., 

508. RESERVED

509. Order Size Limitations

In order to avoid error, the Electronic Trading System will prevent a Participant, and 

their respective Authorized Traders from trading over a specified size, per side, per 

transaction, and per Swap. Such size controls are not cumulative and may be exceeded

through the entry of multiple Orders. No size limitation exists for voice transactions or 

Block Trades under Rule 510. 

510. Block Trade Transactions

(a) The RTX SEF may designate any Swap as eligible for privately negotiated 

transactions, or “Block Trades,” under this Rule and has determined the 

appropriate minimum block size for the Swaps in which Block Trades are 

permitted to be the same level as provided in 17 C.F.R. Appendix F to Part 43. 

(b) The price at which a Block Trade is executed shall not affect any Order in the 

Trading System. 

(c) Participants, Authorized Traders may elect to trade a Swap that has been 

designated by the RTX SEF as eligible for Block Trades as a Block Trade by 

entering the trade details into the trade entry window or by reporting such 

transaction to an Execution Specialist for trade entry. Block Trades shall comply 

with the following conditions: 

(i) each Block Trade transaction must be at least for the minimum 

transaction size as determined by the RTX SEF for that Swap. Orders 

may not be aggregated in order to achieve the minimum transaction 

size. 

(ii) the mutually agreed price at which a Block Trade is executed must be 

fair and reasonable in light of: 

(A) the size of such Block Trade; and 

(B) the price and size of other trades in the same Swap at the 

relevant time and other related Swaps, any underlying cash 

market and/or related futures markets, at the relevant time. 

(iii) the price must be reasonable based upon market conditions, prices in 

other tenors or for related Swap contracts or based upon an established 

model for relating the relative prices between Swaps. 
44

(iv) each party to a Block Trade must qualify as an “eligible contract 

participant,” as that term is defined in Section 1a(18) of the Act. 

(d) Each Block Trade must be reported by the seller to the RTX SEF as soon as 

technologically practicable after execution but in no event later than 10 minutes 

following execution of such Block Trade. The RTX SEF will publicize information 

identifying the trade as a Block Trade and identifying the relevant Swap 

immediately after such information has been reported to the RTX SEF or at such 

time as is deemed appropriate by applicable regulations to that Swap. 

(e) Each party to a Block Trade shall record the following details of the transaction: 

(i) the Swap to which such Block Trade relates; 

(ii) the nominal size of the Block Trade; and 

(iii) the price and time of execution, and the beneficial owners of the 

transaction. 

(f) Upon request by the RTX SEF, such party shall produce satisfactory evidence,

including the order ticket referred to in the preceding sentence that the Block 

Trade meets the requirements set forth in this Rule. 

(g) Notwithstanding anything to the contrary in this Rule 510, until December 30, 

2022, or such later time as the relief in CFTC Letter No. 20-35 shall be extended, 

the RTX SEF may facilitate the execution of Block Trades within the scope of this 

Rule 510 that are intended to be cleared by enabling the applicable Clearing 

Participants to complete the pre-execution credit check required under 

Commission Rule 1.73 pursuant to the procedures of Rules 501(d) and Rule 

502(c)(iii) at the time a Block Trade is identified to the RTX SEF. Execution of the 

Block Trade shall not occur until completion of the pre-execution credit check. 

Block Trades which are rejected on the basis of credit at the time that they are 

identified to the RTX SEF shall be void ab initio. 

511. Public Disclosure of Data

(a) If a registered SDR accepts data for an asset class, the RTX SEF will report or 

cause to be reported to an SDR, such price and transaction data as required by 

Commission Regulations for all Swap transactions executed on or subject to the 

Rules of the RTX SEF. The RTX SEF reports such information to the following 

SDRs: 

Swap SDR

Interest Rate Swaps DTCC

Other DTCC

(b) The RTX SEF shall disclose to all Participants on the RTX SEF data regarding price, 

size, and side of a Swap transaction executed via the Electronic Order Book and 

may disclose such information for a transaction executed via Voice 

Functionality, upon transmittal of, or causing transmittal of, such information to 

the SDR. 
45

(c) Nothing in this Rule 511 shall prohibit the RTX SEF from disclosing: 

(i) to all Participants on the Facility Orders, including price and side 

information, prior to a trade being executed; or, 

(ii) to the counterparties to an executed trade, price, size or any other 

material terms of their executed transaction prior to transmittal of the 

information to an SDR and its public disclosure by the RTX SEF. 

512. Off-Facility Transactions

The RTX SEF may record a Permitted Transaction arranged as an Off-Facility Transaction

by one or more Broker as being executed subject to the Rules of the RTX SEF, if the 

following conditions are met: 

(a) The Participants have provided blanket or transaction-specific consent to 

entering into a Permitted Transaction arranged by a Broker(s); 

(b) All of the terms of the Permitted Transactions are agreed by the Participants 

prior to the Broker reporting the Permitted Transaction to the RTX SEF; 

provided, however, the transaction shall not be considered to be executed until 

accepted by the RTX SEF; 

(c) The Broker reports the terms of the Permitted Transaction in the form and 

manner specified by the RTX SEF as soon as practicable, but in no event more 

than 15 minutes, following agreement of the Participants to the terms of the 

transaction; 

(d) It complies with Part 8 of the Rules; 

(e) Each applicable Clearing Participant, in accordance with Commission Regulation 

1.73, shall establish and apply risk-based limits in respect of such Participant 

and, as facilitated by the RTX SEF, shall screen such Off-Facility Transaction for 

compliance with the limits through an automated or non-automated system of 

risk controls reasonably designed to ensure compliance with the limits; 

(f) The transaction may not be entered into for illegal or improper purposes 

(including, without limitation, any conduct prohibited by Part 9 of these Rules); 

(g) The Broker must keep full, complete, and systematic records of the transaction 

as required by Commission Rule 1.35 

(h) The Broker(s) arranging the transaction shall be responsible, upon the request 

of the RTX SEF to demonstrate to the reasonable satisfaction of the RTX SEF that 

the transaction complies with the conditions of the Act, Commission Rules, and 

the conditions of this Rule 512, including making available to the RTX SEF, upon 

request, access to the Broker’s records relating to the transaction. 

513. Package Transactions

A package transaction means a multi-leg transaction priced or quoted as one economic 

transaction, involving at least one Swap. For all package transactions, the RTX SEF’s 

audit trail records shall identify the Swap transaction(s) as being priced under the 
46

procedures of this Rule. The Swap leg or legs of a package transaction may be executed 

by the RTX SEF subject to the following conditions. 

(a) U.S. Dollar Swap Spread. 

(i) A U.S. Dollar Swap Spread is a transaction in a U.S. Dollar Swap traded 

as a spread price between a U.S. Treasury security and the Swap.

U.S. Dollar Swaps are available for trading as a spread transaction via: 

(A) the Electronic Order Book under Rule 602(a) of the Rules, and 

Assisted Order Entry (Rule 607); 

(B) Voice Functionality under Part 7, including but not limited to 

regular Voice Trading Facility (Rule 703(a)), Voice Work-up (Rule 

703(a)(x) of the Rules; 

(C) Pre-execution discussed and crossed trades under Rule 505, and 

(ii) Orders in U.S. Dollar Swap Spreads are subject to the pre-trade credit 

check under Rule 501(d). 

(iii) Upon a buyer and seller being matched by the RTX SEF in a U.S. Dollar 

Swap Spread transaction, the RTX SEF notifies each party of 1) the price 

or spread (yield differential) at which the transaction occurs, 2) the 

identity of the opposing party, 3) the Swap price or yield, and 4) the US 

Treasury security price and yield. The Swap price must be equal to, or 

close to the prevailing market Swap price at the time the Swap 

transaction occurs and the US Treasury security price must be close to 

the prevailing U.S. Treasury market security price at the time the Swap 

transaction occurs. The parties to the Swap subsequently then enter 

into a separate cash market transaction bilaterally for the Treasury 

security at such prevailing cash market price. 

(iv) For the avoidance of doubt, the RTX SEF takes no part in facilitating cash 

market Treasury security transactions.

(b) MAT/MAT. A MAT/MAT package consists of two (or more) Required Transaction 

legs of the same Swap but of different Tenors, traded based upon the spread 

value of the defined relationship of the legs. When entering a Bid (Offer) such 

Orders shall be subject to the pre-trade credit check under Rule 501(d). A 

MAT/MAT package can be traded via any of the functionalities or facilities 

provided in paragraph (a)(i)(A),(B) and (C) of this Rule. Upon being matched 

based upon the spread value, the RTX SEF executes the two legs of the 

transaction at a price calculated by the RTX SEF derived from the prevailing price 

for the shorter Tenor leg. 

(c) MAT/Non-MAT (Cleared). A MAT/Non-MAT (Cleared) package consists of at 

least one Required Transaction and one (or more) cleared Permitted 

Transaction based upon the spread value of the defined relationship of the legs. 

When entering a Bid (Offer) such Orders shall be subject to the pre-trade credit 

check under Rule 501(d). A MAT/Non-MAT (Cleared) package can be traded via 

any of the functionalities or facilities provided in paragraph (a)(i)(A),(B) and (C) 

of this Rule. Upon being matched based upon the spread value, the RTX SEF
47

executes the two legs of the transaction at a price calculated by the RTX SEF

derived from the prevailing price for the Required Transaction leg. 

(d) MAT/Non-Swap Instruments. As permitted under Commission Rules 37.9(d) and 

37.9(a)(2) and as pursuant to 37.9(c)(2), the Required Transaction leg or legs of 

a package transaction that consists of one or more Required Transaction and 

one or more non-Swap instrument, shall be subject to the procedures of Rule 

512; provided, however, this provision shall not apply to U.S. Dollar Spreads 

which shall be subject to the procedures of paragraph (a). 

(i) The Broker, when reporting the Swap leg of the package to the RTX SEF

for execution shall also include the trade details of the non-Swap leg or 

legs of the package. 

(e) MAT/Futures. Until November 15, 2022, or such later time as the relief in CFTC 

Letter No. 20-31 may be extended, the Required Transaction leg or legs of a 

package transaction that consists of one or more Required Transaction and one 

or more are contracts for the purchase or sale of a Commodity for future 

delivery, shall be subject to the procedures of Rule 512. 

(f) MAT/Non-CFTC Swap. As permitted under Commission Rules 37.9(d) and 

37.9(a)(2) and as pursuant to 37.9(c)(2), the Required Transaction leg or legs of 

a package transaction that consists of one or more Required Transaction and 

one or more of the components is a swap over which the CFTC does not have 

exclusive jurisdiction, shall be subject to the procedures of Rule 512. 

(g) For all package transactions, the RTX SEF’s audit trail records shall identify the 

Swap transaction(s) as being priced under the procedures of this Rule 513. 

514. Trade Cancellations and Price Adjustments

(a) Trade Cancellation, Amendment, or Adjustment Authority. The RTX SEF’s trade 

cancellation policy authorizes the Board, through its designee the Chief 

Compliance Officer (or the Chief Compliance Officer’s delegate) (the 

“Designee”), to amend trade prices, cancel (bust) trades, or to make such other 

adjustments when such action is necessary to mitigate market disrupting 

events; to mitigate instances where market integrity has been compromised 

caused by the improper or erroneous use of the RTX SEF; or to address manifest 

unfairness caused by a material error of the Execution Specialist in Order 

handling or other material error by the RTX SEF, such as the incorrect display of 

a Bid or Offer, erroneous execution, or erroneous reporting of a Swap 

transaction. 

(b) Notwithstanding any other provision of this Rule, the Designee may adjust trade 

prices, cancel any trade executed through the RTX SEF, execute a new or offsetting Swap on behalf of the parties to a disputed transaction on the RTX SEF or 

another SEF, or require the parties to execute a new or off-setting Swap 

transaction on the RTX SEF or another SEF, if the Designee determines that 

allowing the trade to stand as executed may have a material, adverse effect on 

the integrity of the market or is otherwise necessary or appropriate to address 

manifest unfairness caused by a material error of the Execution Specialist or 
48

other material error by the RTX SEF; provided, however, that any such 

determination by the Designee (if other than the Chief Compliance Officer) will 

be subject to review by the Chief Compliance Officer if the Designee determines 

such review to be necessary or appropriate. Subject to the immediately 

preceding sentence, the decision of the Designee shall be final. 

(c) Any trade price amendment, trade cancellation, or other trade adjustment shall 

be made subject to the standards of this Rule 514, such standards being clear, 

fair, and publicly available. Any determination made under this Rule 514 to 

adjust any trade price, cancel any trade, or make any other adjustment shall be 

made subject to the procedures of Rule 514(d), (e), (f) and (g) and announced to 

the market by a message from the Support Desk or such other method as the 

RTX SEF shall provide. 

(d) Procedure—Review of Trades Made in Erroneous Use of RTX SEF or Resulting 

from Error of the RTX SEF. The Designee’s decision on whether to cancel or 

amend a trade claimed to be made through erroneous use of the RTX SEF or as a 

result of an error by the Execution Specialist or the RTX SEF shall be made under 

the following procedure: 

(i) Review of Trades. The Designee may review a trade based on its 

analysis of market conditions or a request for review by a user of the 

RTX SEF. 

(ii) Request for Review. A request for review must be made within 20 

minutes from the execution of the trade. The request may be verbal, 

with a writing (which may be electronic) to follow within one hour from 

the execution of the trade. The request must specify the trade details, 

the time of its occurrence, the desired outcome (amend, cancel, or 

other action) and the reason for such a request, including whether due 

to erroneous trading or a material error by the Execution Specialist in 

Order handling or other material error by the RTX SEF such as the 

incorrect display of a Bid or Offer, erroneous execution, or erroneous 

reporting of a Swap transaction. 

(iii) The Designee shall promptly determine whether the trade will be 

subject to review, and upon deciding to review a trade, the Designee 

will promptly notify the counterparties and issue an alert to all 

Participants on the RTX SEF indicating that the trade is under review. 

The Designee, in his or her discretion, may also notify the Compliance 

Department of the requestor.

In the course of its review of any trade, the Designee may, but is not 

obligated to, inform any of the parties to the trade of the identity and 

contact information of any other party to the trade. 

(e) Procedure—Review of Improper Trades. The Designee’s decision on whether to 

cancel or amend a trade claimed to be improper shall be made under the 

following procedure: 
49

(i) Review of Trades. The Designee may review a trade based on its 

analysis of market conditions or a request for review by a user of the 

RTX SEF. 

(ii) Request for Review. For trades claimed to be improper, a request for 

review must be made within 20 minutes from the execution of the 

trade. The request may be verbal, with a writing (which may be 

electronic) to follow within one hour from the execution of the trade. 

The request must specify the trade details, the time of its occurrence, 

the desired outcome (amend or cancel) and detail the basis on which 

the trade should be considered improper and the reason supporting the 

cancellation or amendment of such a trade. The written request must 

be countersigned by the customer desk head or a business individual 

with supervisory authority for the requestor. The RTX SEF will make its 

determination based upon the request for review. 

(iii) Upon receiving a written request to cancel or amend an improper trade, 

the Designee, in the Designee’s discretion, may offer the counterparty 

an opportunity to respond to the reasons cited in the written request 

that the trade was improper and to provide an explanation why the 

trade should not be considered to be improper; provided, however, the 

counterparty shall not have a right to view the written request if the 

Designee shall in his or her discretion determine that the contents or 

identity of the requestor should not be disclosed. 

(iv) The Designee, upon reviewing the written request for cancellation or 

amendment of an improper trade and any statement of the 

counterparty to the requestor will determine whether the trade on its 

face violated Applicable Law or these Rules and whether the trade 

affected the integrity of the market, including but not limited to 

whether the trade had a material adverse effect on market prices or 

orderly trading in the market.

(f) Designee’s Determination. 

(i) The Designee shall communicate his or her determination to the parties 

whether to cancel the trade, amend or adjust the trade, to order such 

other actions as within the RTX SEF’s authority or to let the trade stand, 

and shall communicate his determination to the market. 

(ii) Upon a determination by the Designee that a trade shall be cancelled or 

amended the RTX SEF shall implement the decision including as 

necessary or appropriate entering into new or off-setting Swap 

transactions on behalf of the parties or ordering the parties to do so. 

(iii) Issues of liability in cases where reasonable out-of-pocket losses have 

been incurred by Persons whose trades were cancelled or amended will 

be determined by the Designee based upon all relevant facts and 

circumstances, including the conduct of the respective parties. A party 

whose erroneous, or improper Order handling was the cause of the 

cancelled, amended or adjusted trade shall be liable for reasonable outof-pocket losses of the counterparty to the transaction. Parties that 
50

know a transaction to be erroneous, improper, or executed in error 

have an obligation to mitigate the loss. 

(A) A claim for a loss pursuant to this Rule must be submitted to the 

RTX SEF, on a RTX SEF claim form, within five Business Days of 

the cancelled, amended, or adjusted trade giving rise to the 

claim. The RTX SEF shall reject any claim that is not permitted by 

this Rule and such decision shall be final. All claims which are 

not rejected by the RTX SEF shall be forwarded to the party 

responsible for the Order(s) that resulted in the cancelled, 

amended or adjusted trade and that party shall, within ten 

Business Days of receipt of the claim, admit or deny 

responsibility in whole or in part. 

(B) To the extent that liability is admitted, payment shall be made 

within ten Business Days. To the extent liability is denied, the

claim shall be resolved by and pursuant to the arbitration rules 

of the NFA or such other self-regulatory organization as the 

parties may agree in accordance with the procedures of Part 11 

of the Rules. 

(C) In the event that the error causing the loss was made by, or is 

the responsibility of, the RTX SEF, the RTX SEF in its sole 

discretion may take such steps as it deems necessary and 

appropriate to recompense the party or parties for their out-ofpocket loss. 

(g) Trade Price Adjustment and Cancellation Process—Other Erroneous Trades. 

The Designee will first determine whether the trade price is within the “No 

Review Range.” During fast market conditions, upon the release of significant 

news, or in other circumstances in which the Designee determines it is 

appropriate, and upon consultation with the Chief Compliance Officer, may 

without prior notice, temporarily increase the published No Review Range, up to 

an amount that is double the published range. 

(i) Information considered. In applying the No Review Range, the Designee 

shall determine the market price for that Swap immediately before the 

trade under review (the “Market Price”). The Designee may consider 

any relevant information, including the existing market conditions, the 

volatility of the market, the prices of related instruments in other 

markets, the last trade price on the RTX SEF of the same or a related 

Swap, a better bid or offer price, a more recent price in a related Swap 

or related Swap Tenor, and any other factors that the Designee deems 

relevant. 

(ii) Trade Price Inside the No Review Range. If the Designee determines that 

the price of the trade was inside the No Review Range, the Designee will 

promptly issue an alert to all Participants, Authorized Traders on the 

Electronic Trading System indicating that the trade shall stand. 

(iii) Trade Price Outside the No Review Range. If the Designee determines 

that a trade price is outside the applicable No Review Range, the trade 
51

price shall be adjusted to a price agreed upon in a reasonable time by a 

Person not responsible for an Order that results in a trade price 

adjustment that is within the No Review Range or in the absence of such 

agreement to a price that equals the Market Price for that Swap at the 

time of the questioned trade, plus or minus the standard or adjusted No 

Review Range, provided, however, that in the event that such adjusted 

price would be outside the trading range of the day at the time of the 

questioned trade, then such adjustment shall be limited to the trading 

range as applicable. In the event there are multiple parties, prices 

and/or Swaps involved in the transactions at issue, the Designee has the 

authority, but not the obligation, to bust rather than price adjust such 

transactions. The Designee will promptly issue an alert to all 

Participants, Authorized Traders on the Electronic Trading System 

indicating that the prices of the trades outside the No Review Range 

have been adjusted to the No Review Range limit or have been 

cancelled. 

(h) No Review Range. The No Review Range shall be as follows:

Swap Contract No Review Range

(where a % is used, it is expressed 

as a % from the mid-market range)

EUR interest rate 

Swap outrights,

spreads and butterfly 

strategies

A price 1.5 basis point in yield 

above or below the prevailing midmarket price

USD interest rate 

Swap outrights, 

spreads and butterfly 

strategies 

A price 1.5 basis point in yield 

above or below the prevailing midmarket price

GBP interest rate 

Swap outrights

A price 2 basis points in yield above 

or below the prevailing mid-market 

price

GBP interest rate 

Swap basis swaps

A price 2 basis points in yield above 

or below the prevailing mid-market 

price

GBP interest rate 

Swap spreads and 

butterfly strategies

A price 1.5 basis point in yield 

above or below the prevailing midmarket price

JPY interest rate Swap 

outrights

A price 2 basis points in yield above 

or below the prevailing mid-market 

price

GBP interest rate 

Swap spreads and 

butterfly strategies

A price 2 basis points in yield above 

or below the prevailing mid-market 

price
52

GBP interest rate 

Swap basis swaps

A price 2 basis points in yield above 

or below the prevailing mid-market 

price

(i) Liability for Losses Resulting from a Price Adjustment or Cancelled Trade. 

(i) Price-Adjusted Trades. A Person responsible for an Order that results in 

a trade price adjustment shall generally not be liable for losses, other 

than the price adjustment, incurred by Persons whose trade prices were 

adjusted. 

(ii) Cancelled Trades. Issues of liability in cases where reasonable out-ofpocket losses have been incurred by Persons whose trades were 

cancelled will be determined by the Support Desk based upon all 

relevant facts and circumstances, including the conduct of the 

respective parties. 

(j) Claim Process. A claim for a loss pursuant to this Rule must be submitted to the 

RTX SEF, on a RTX SEF claim form, within five Business Days of the priceadjusted trade giving rise to the claim. The RTX SEF shall reject any claim that is 

not permitted by this Rule and such decision shall be final. All claims which are 

not rejected by the RTX SEF shall be forwarded to the party responsible for the 

Order(s) that resulted in a price adjustment. Such party shall, within ten 

Business Days of receipt of the claim, admit or deny responsibility in whole or in 

part.

To the extent that liability is admitted, payment shall be made within ten 

Business Days. To the extent liability is denied, the claim shall be resolved by 

and pursuant to the arbitration rules of the NFA or such other self-regulatory 

organization as the parties may agree in accordance with the procedures of Part 

11 of the Rules.

(k) Trade Cancellation or Offset Procedures. Upon a determination by the 

Designee that a trade shall be cancelled or that trade prices shall be adjusted, 

that decision will be implemented. The cancelled trade price and any price 

quotes that have been adjusted will be reflected as cancelled in the RTX SEF’s 

official record of time and sales. 

(l) Adjustment Trades. Positions that result from a trade determined by the 

Designee to be outside the No Review Range that cannot be cancelled shall be 

adjusted at the direction of the RTX SEF, by entry of the RTX SEF into new or offsetting trades as appropriate on behalf of the parties to the cancelled or 

adjusted trade or ordering such parties to enter into new or off-setting trades as 

directed by the RTX SEF. The adjusting trades must use the original trade price 

and quantity. Any party may, but is not required to, include a cash adjustment 

to another party to the trade. Trades determined by the Designee to be inside 

the No Review Range may not be reversed in this manner. 
53

(m) Arbitration of Disputes Regarding Adjustment Trade. If a party does not agree 

to transfer a position pursuant to Rule 514(j), any other party to the trade may 

file an arbitration claim in accordance with the procedures of Part 11 of the 

Rules against the Person representing the other side of the trade. Written

notice of such claim must be provided to the RTX SEF within five Business Days 

of receipt of the opposite party’s timely denial of liability under Rule 514(j). 

Failure to file the claim within those five Business Days shall be deemed a 

waiver of all claims. The arbitration claim will be conducted in accordance with 

the procedures of Part 11 of the Rules. 

(n) Voluntary Adjustment of Trade Price. When a trade outside of the No Review 

Range is cancelled in accordance with this Rule, the parties to the trade may 

agree voluntarily to reestablish the trade but to adjust its price and make a cash 

adjustment provided that all of the following conditions are met: 

(i) the Designee approves the adjustment. 

(ii) the trade adjustment must be within the range of the high and low of 

the previous day’s price range. 

(iii) the quantity of the position being reestablished is the same as the 

quantity of the trade that was cancelled. 

(iv) in the case of a trade below the Market Price, the adjusted price must 

be the lowest price that traded at or about the time of the trade 

without being cancelled. In the case of a trade above the Market Price, 

the adjusted price must be the highest price that traded at or about the 

time of the trade without being cancelled. 

(v) the parties to the adjusted trade must report it to the RTX SEF using a 

Transfer Trade not later than the close of business on the Business Day 

after the trade occurred.

515. Error Trades

(a) Scope. In accordance with Commission Rule 37.9(c), Rule 515 shall apply where 

an operational or clerical error or omission made by the RTX SEF, one of the 

counterparties, or an agent of the counterparty, causes a trade to be rejected 

from clearing, where one leg of a Package Transaction is rejected from clearing 

due to the sequencing of the submission of the legs (“Rejected Error Trade”), or 

is identified after the trade has been cleared (“Cleared Error Trade”) (together 

“Error Trades”). Legs of a Package Transaction that have been accepted for 

clearing are not within the scope of this Rule. 

(b) Rejected Error Trades. Upon an affirmative finding by the RTX SEF that a trade 

has been rejected due to an error or an erroneous term other than for reasons 

of credit, the Rejected Error Trade shall be considered to be void ab initio and 

the RTX SEF may execute a new trade with the original terms but for the 

correction of the erroneous terms and submit the new trade to the applicable 

DCO as quickly as technologically practicable, but in no event in more than 1 

hour from the notice of rejection from clearing. The new trade shall be subject 

to the procedures of Rule 501(d) or Rule 502(c), as applicable. Any new trade 
54

which is also rejected is considered to be void ab initio and may not be 

submitted again. 

(c) Cleared Error Trades. Upon an affirmative finding by the RTX SEF that a trade is 

being carried on the books of a DCO in error, in order to “reverse and resubmit” 

the trade in error, a trade to offset the Swaps carried in error on the books of 

the DCO shall be executed by the RTX SEF and a new transaction shall be 

executed by the RTX SEF with the original terms of the Cleared Error Trade but 

for the correction of the erroneous terms. Such correcting trades must be 

executed and submitted for clearing no later than three days from the execution 

of the Cleared Error Trade, with the exception provided in (d)(i). The new trade 

shall be subject to the procedures of Rule 501(d) or Rule 502(c), as applicable. 

(d) Consent to Correction of Error Trades. In the event that an error comes to the 

attention of the RTX SEF, the RTX SEF may correct obvious errors under the 

procedures of paragraph (b) or (c) of this Rule 515 without the consent or 

knowledge of the counterparties to the transaction. In the event that the RTX 

SEF is unable to determine how to correct an Error Trade on its face, the RTX 

SEF shall inform the counterparties to the trade and request their assistance in 

determining the nature and the substance of the error. The RTX SEF may not 

correct such non-obvious errors unless the parties shall agree. 

(i) Alternatively, for cleared swaps, the RTX SEF may use an ex post facto 

review process in which the counterparties determine that an error has 

occurred and correct the error. The offsetting trade and the correct 

transaction must be executed and submitted for clearing as quickly as 

technologically practicable, but no later than 24 hours after the 

erroneous cleared swap was executed.

The Participant must notify the RTX SEF in writing, using the RTX SEF

contact email addresses located in www.rtxfintech.com, no later than 

24 hours after the error trade was executed. The RTX SEF shall conduct 

an ex post facto review of the error trade, offsetting trade, and correct 

trade on a T+1 basis. Such review will consider whether a transaction 

cancellation or price adjustment will adversely impact market integrity, 

facilitate market manipulation or other illegitimate activity, or 

otherwise violate the CEA, Commission regulations, or the RTX SEF’s 

Rules.

The RTX SEF must make an affirmative finding that there was an error as 

part of its ex post facto review.

(e) Reporting. The RTX SEF shall report the following to an SDR as soon as 

technologically practicable after the original trade is rejected by the DCO: 

(i) Cancellation of the original trade under part 43 of the Commission 

Rules; 

(ii) A part 45 termination under the Commission Rules, indicating that the 

original trade is void ab initio; and 

(iii) Swap transaction data pursuant to parts 43 and 45 of the Commission 

Rules for the newly executed trade(s).
55

516. Trade Affirmation

(a) When the RTX SEF under Rule 802(b) or Rule 804(a) submits a trade to a STP 

Facility following execution and prior to forwarding the trade to a DCO for 

clearing, each Participant or Customer, as applicable, that is a counterparty to 

the trade shall affirm, or notify the RTX SEF of an error in, the trade details as 

soon technologically practicable, but in no event later than 10 minutes from the 

time of execution of the trade. 

(b) Failure by the Participant or Customer to affirm the trade details no later than 

10 minutes from the time of execution shall constitute a violation of this Rule 

516 except:

(i) When the Participant or Customer has notified the RTX SEF of an error 

within 10 minutes of execution; or 

(ii) When the delay in affirming, or reporting an error in the trade details is 

caused by the RTX SEF, the STP Facility, or any event (such as loss of 

internet connectivity, power, or other force majeure) beyond the 

reasonable control of the Participant or Customer used in the post-trade 

processing of trades.

(c) Notwithstanding anything to the contrary in these Rules, the RTX SEF in its 

discretion may initiate an investigation for violations of this rule by a Participant

or Customer in accordance with RTX SEF Rulebook Part 10 (Disciplinary 

Proceedings).

517. Real-Time Market Monitoring 

Real-time monitoring of trading on RTX SEF for compliance purposes shall be conducted by the 

RTX SEF Compliance Department. 

(a) RTX SEF shall monitor and evaluate data on: 

(i) an ongoing basis in order to detect and prevent manipulation, price 

distortion, and where necessary disruptions in the cash-settlement 

process, and 

(ii) general market data in order to detect and prevent manipulative 

activity that would result in the failure of the market price to reflect the 

normal forces of supply and demand, unusual trading volumes, and 

impairments to market liquidity. 

(b) In addition, RTX SEF may protect market integrity through use of the following 

system safeguards to prevent the entry of orders in any of the following 

circumstances:

(i) pre-trade quantity limits on individual orders to screen for order 

quantities not within acceptable parameters; 
56

(ii) pre-trade price collars to screen for orders outside of current market 

conditions;

(iii) execution throttles to screen for the execution of too many orders over 

a specified period of time;

(iv) message throttles to screen for the submission of too many messages in 

a specified period of time; and pre-trade check to screen for risk-based 

limits set by the clearing member.

518. Post-Trade Anonymity

(a) Pursuant to the Commission Rule § 37.9(f), it is prohibited to disclose, directly or 

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

counterparty for swaps executed, pre-arranged or pre-negotiated anonymously 

on or pursuant to the rules of a SEF and intended to be cleared at the time of 

execution.

(b) Prohibition on post-trade name give-up shall not apply to components of a 

package transaction that are uncleared swaps or non-swap instruments. 

Examples include, but are not limited by, swaps executed with a US Treasury 

hedge cleared bilaterally between the counterparties, swaps executed as part of 

a hedge to an interest rate option or credit option and swaps executed as part 

of a package with an uncleared swap.
57

PART 6. TRADING ELECTRONICALLY

601. Scope

The RTX SEF shall determine the Swaps to be offered for trading through the Electronic 

Trading Systems under this section. 

602. Trading via Electronic Trading Systems.

Transactions executed electronically may be matched on RTX SEF via any Electronic 

Trading System provided for under this Rule. An Electronic Trading System is a Trading 

Facility, as defined by section 1a(51) of the Act, that enables multiple participants to 

offer Bids or Offers to multiple other participants on the facility.

(a) Electronic Order Book Trading Session. 

(i) An Electronic Order Book (“EOB”) is an electronic Trading System in 

which all Orders are managed based upon price/time priority, which 

means A) an Order with a better price (highest Bid, cheapest Offer) has 

execution priority over an Order with an inferior price (not highest Bid, 

not cheapest Offer) and B) for two Orders with the same price and same 

direction, the Order that is entered into the EOB first will be matched

first against an aggressing opposing Order. 

(ii) All Orders are matched by the action of one Participant hitting (lifting) a 

displayed Bid (Offer) or by the Electronic Order Book matching 

electronically two passive orders that occur at the same price.

(iii) All Orders in the EOB Session are “firm” or executable.

(iv) Any Order entered into the EOB Session must be in the form and 

contain the information the RTX SEF requires, including, but not limited 

to, Order type, size, direction, price (if applicable), and the applicable

User ID. Any Order not complying with RTX SEF requirements shall not 

be accepted. 

(v) An Order may only be entered into the EOB Session by a Participant, its 

Broker, or by an Execution Specialist acting in his or her discretion 

pursuant to Rule 703(a)(xi) or at the direction of a Participant.

(vi) For Required Transactions, all Orders in the EOB Trading Session are 

displayed to all Participants.

(vii) A Participant responding to a displayed Order may accept a firm Bid or 

Offer or counter the Bid or Offer of the initiating Participant or of any 

other responding Participant. For the avoidance of doubt, an executed 

transaction may take place between two responding Participants. 

Responding Participants shall be anonymous unless the responding 

Participant authorizes the Execution Specialist to disclose the 

Participant’s identity.
58

(viii) Any Order entered into the EOB Session shall remain open in the 

Electronic Trading System until executed, cancelled, or until it expires.

(ix) The Participant will be responsible for each Order that it enters on the 

RTX SEF for itself or a Customer or which is entered on behalf of itself or 

a Customer.

(x) The Trading Session for an EOB remains open throughout the Business 

Day.

(xi) All Orders open at the end of the Business Day are cancelled.

603. Order Types

(a) Type of Orders and Order Attributes. The following orders may be entered by a 

Participant into Electronic Trading Systems: 

(i) Limit Orders. A limit order is an order to buy or sell a stated amount of a 

Swap or strategy at a given price. Such an order shall remain in the EOB 

until executed or cancelled. 

(ii) Market Orders. A market order is an order to buy or sell a stated 

amount of a Swap or strategy at the best available price on the EOB 

session at the time the order is entered.

(iii) Time in Force (“TIF”) Orders. A TIF Order is a limit order that remains 

open for a period of time selected by the Participant or Execution 

Specialist (at the request of the Participant) when the Order is first 

entered. The Order is automatically cancelled at the end of that period

unless the time is extended or the Order is executed.

(iv) All or None (“AON”). An AON order is a limit order or TIF Order where 

only the full amount specified on the Order can be executed. AON 

Orders are ignored in the order matching process by corresponding 

orders that have less than the required AON amount to make a trade.

(v) One Cancels the Other (“OCO”). An OCO Order provides the Participant 

the ability to enter certain Orders that are linked together whereby the 

execution of a trade on one linked Order results in the immediate 

cancellation of the remaining linked order(s) in the OCO group.

(vi) One Executes Other (“OEO”). An OEO order provides the Participant 

with the ability to enter certain Orders that are linked together whereby 

the execution of a trade on one linked Order results in the immediate 

execution of a trade on other linked Order in the OEO group.

(vii) Request for Trade® (“RFT®”). An RFT® Order is an electronic TIF Order 

entered via the RFT® user interface that is managed in the EOB. For 

Required Transactions, all RFT® Orders are displayed to all Participants

in an EOB Session. All RFT® Orders are firm.
59

604. Confirmations and Objections

The confirmation of all terms of the transaction shall take place at the same time as 

execution. 

(a) Anonymous Trading. In accordance with Rule 518, confirmations of transactions 

executed anonymously will not show counterparty names or identifiers, unless 

such a transaction is a Package Transaction under Commission Rule 37.9(d). 

(b) Confirmation of Cleared Transactions. Upon execution, the RTX SEF shall notify 

a Participant of the matching of Bids and Offers through the Electronic Trading 

System as follows. 

(i) Initial notification: Following trade matching, the RTX SEF will send an 

initial electronic message that confirms the instrument, the price, 

direction and amount to both sides of a trade. 

(ii) Confirmation: Upon execution of the transaction, the RTX SEF will issue 

an electronic confirmation which shall legally supersede any previous 

agreement and shall include all material economic terms of the 

executed transaction and which the counterparties agree shall confirm 

execution of the transaction.

(c) Objections. Objections to the material economic terms of transaction 

confirmations must be submitted to the RTX SEF, in writing, promptly upon 

receipt, but no later than the close of that Business Day.

605. Trade Invalidation Upon Revocation of Clearing Authorization

Once the RTX SEF has received notice from a Clearing Organization that a Clearing 

Participant’s authorization has been terminated, any trade destined for that Clearing 

Organization subsequently matched by the Electronic Trading System for that Clearing 

Participant or for a Trading Participant guaranteed by that Clearing Participant shall be 

considered to be invalid and shall be cancelled by the RTX SEF. Further, a Participant 

shall notify immediately RTX SEF that is authorization with a Clearing Participant has 

been terminated.

607. Assisted Order Entry

An Execution Specialist, acting on behalf of a Participant using an Approved 

Communication Method may, upon request of the Participant, assist a Participant in the 

entry or withdrawal of Orders into the Electronic Trading System. 

(a) Any Execution Specialist entering an Order into the Electronic Trading System 

shall have a unique User ID paired with the Participant’s ID for whom the 

Execution Specialist is acting.
60

(b) Upon receipt of a request for assistance in the entry or withdrawal of an 

immediately executable Order, the Execution Specialist must enter the 

executable Order immediately into the Electronic Trading System. 

(c) Any request by a Participant for assistance in the entry of an Order that is not 

immediately executable shall be entered into the Electronic Trading System as 

soon as practicable. The Execution Specialist must make a record of the time at 

which the request for assistance was first made and the time that the Order was 

entered into the Electronic Trading System. 

(d) Notwithstanding any other provision of these Rules, in the event that a 

Participant objects under Rule 604(c) to the contents of a the confirmation of a 

transaction that has taken place through the assistance of an Execution 

Specialist under the provisions of this Rule, the Board, through its designee the 

Chief Executive Officer or the Chief Executive Officer’s Designee (the 

“Designee”), is authorized in his or her discretion to adjust trade prices or cancel 

a trade when such action is necessary to correct a clear clerical error on the part 

of the Execution Specialist in carrying out the instructions of the Participant that 

is assisted by the Execution Specialist. Any trade price adjustment or trade 

cancellation shall be made subject to the standards of this rule. Any 

determination made under this rule to adjust any trade price or cancel any trade 

shall be announced to the market and such adjustment shall be reported by the 

RTX SEF to the SDR.
61

PART 7. TRADING BY VOICE 

701. Scope

The RTX SEF shall determine the Swaps to be offered for trading where such Swaps are 

matched using any Voice Trading System provided for under this section.

702. Trading by Voice Trading Systems

A Voice Trading System is a Trading Facility, as defined by section 1a(51) of the Act, that 

uses Voice Functionality that enables multiple participants to offer Bids or Offers that 

are open to multiple participants through the use of telephone, electronic messaging or 

other Approved Communication Methods. Voice Trading is facilitated by an Execution 

Specialist who makes known to Participants the existence of trading interest in a Swap, 

facilitates the communication of Bids or Offers among multiple Participants, and assists 

in orderly trading on the RTX SEF. 

703. Voice Trading Systems

(a) Voice Trading Facility. 

(i) An Voice Trading Facility (“VTF”) is a Trading System in which all Orders 

are managed based upon price/time priority, which means A) an Order 

with a better price (highest Bid, cheapest Offer) has execution priority 

over an Order with an inferior price (not highest Bid, not cheapest 

Offer) and B) for two Orders with the same price and direction, the 

Order that is entered into the VTF first will be matched first against an 

aggressing opposing Order. All Orders are recorded in the Internal 

Digital Ledger.

(ii) The VTF is a Trading Session that remains open throughout the Business 

Day.

(iii) All Orders are communicated by the Participant to the Execution 

Specialist who is responsible for managing the Order in the VTF 

according to price/time priority rules under Rule 703 (a)(i).

(iv) Any Order communicated to the Execution Specialist shall include the 

information the RTX SEF requires, including, but not limited to, Order 

type, size, side, price (if applicable). Any Order not complying with RTX 

SEF requirements shall not be accepted by the Execution Specialist. 

(v) An Order is considered firm or executable at the time first 

communicated to the Execution Specialist and subsequently indicative 

unless the Participant confirms to the Execution Specialist that the Bid 

or Offer remains firm.

(vi) An Order is matched by the action of a Participant communicating an 

executable Bid or Offer to the Execution Specialist to hit (lift) a resting

Bid (Offer) being managed in the VTF.
62

(vii) An initiating Participant shall be anonymous unless the Participant 

authorizes the Execution Specialist to disclose the initiating Participant’s 

identity.

(viii) In the absence of an initiating Participant, the Execution Specialist has 

discretion to initiate trading by communicating with Participants to 

ascertain trading interest. 

(ix) A responding Participant may accept a communicated Bid or Offer or 

counter such Bid or Offer of the initiating Participant or of any other 

responding Participant. For the avoidance of doubt, an executed 

transaction may take place between two responding Participants. 

Responding Participants shall be anonymous unless the responding 

Participant authorizes the Execution Specialist to disclose the 

Participant’s identity.

(x) Voice Work-up. In order to encourage the provision of liquidity to the 

VTF, following the execution of an initial transaction (which shall be 

indicated to the counterparties as having been executed by 

communication of the Execution Specialist) either of the parties to the 

executed transaction or any other market participant (following 

transmittal by the RTX SEF to an SDR of information relating to the 

initial, executed transaction) may request a work-up trading session. To 

open a work-up trading session, the Execution Specialist announces the 

work up session and price. Counterparties to the initial transaction may 

have a priority for additional amounts at the work-up price. Resting Bids 

or Offers at the work-up price or better must be included in the work-up 

session. During the work-up session, execution occurs at the time that a 

buyer and a seller agree on the quantity of their respective transaction 

(the price being the work-up price), such execution being indicated to 

the counterparties by communication of the Execution Specialist. 

Separate transactions entered into during the work-up process will not 

be confirmed or reported as a single aggregate transaction. The work-up 

shall end when, to the extent possible, all buying and selling interest at 

that price have been filled. Any unfilled Bid or Offer at that price at the 

conclusion of the work-up shall be treated as a resting Bid or Offer 

depending upon the instruction of the market participant. 

(xi) Hybrid Trading of Required Transactions. The Execution Specialist, in 

his or her discretion, may enter any Voice Order communicated to the 

Execution Specialist into the EOB Trading Session under Rule 607 

whenever there shall appear to be sufficient liquidity in the Electronic 

Order Book to fill the Order. Unless specified by Participant such Order 

shall be entered into the Electronic Order Book as a Time in Force 

(“TIF”) Order where it shall remain a firm Order for a period of 20 

seconds and then expire.
63

704. Order Types

(a) Type of Orders and Order Attributes. The following orders may be entered by a 

Participant verbally via an Execution Specialist into a Voice Trading System:

(i) Limit Orders. A Limit Order is an Order to buy or sell a stated amount of 

a Swap or strategy at a given price. Such an order shall remain in the 

VTF session until executed or cancelled by Participant. 

(ii) Market Orders. A Market Order is an Order to buy or sell a stated 

amount of a Swap or strategy at the best available price on the VTF

session at the time the order is entered.

(iii) Time in Force (“TIF”) Orders. A TIF Order is a limit order that remains 

open in the VTF session for a period of time selected by the Participant

or Execution Specialist (at the request of the Participant) when the 

Order is first entered. The Order is automatically cancelled at the end of 

that period unless the time is extended, or the Order is executed.

(iv) Good until Bettered Orders. (“GTB”). A GTB Order is an Order to buy or 

sell a stated amount of a Swap or strategy to be executed at the 

communicated price until bettered by another Order (whether from the 

original participant or another) whereupon it cancels or until the Order 

is cancelled by the Participant. 

(v) All or None (“AON”). An AON Order is a limit order or TIF Order where 

only the full amount specified on the Order can be executed. AON 

Orders are ignored in the order matching process by corresponding 

Orders that have less than the required AON amount to make a trade.

(vi) Good until Bettered Orders All or None. (“GTB AON”). A GTB AON Order 

is an GTB Order where only the full amount specified on the Order can 

be executed. Like regular AON Orders, GTB AON Orders are ignored in 

the Order matching process by corresponding Orders that have less 

than the required AON amount to make a trade.

(vii) One Cancels the Other (“OCO”). An OCO Order provides the Participant 

the ability to enter certain Orders that are linked together whereby the 

execution of a trade on one linked Order results in the immediate 

cancellation of the remaining linked Order(s) in the OCO group.

(viii) All Orders cease to be active at the close of the Business Day.

(b) Voice Orders for Required Transactions. Notwithstanding anything to the 

contrary in these Rules, each Voice Order for a Required Transaction 

communicated by a Participant to an Execution Specialist shall be considered to 

be firm from the time the Order is first communicated to the Execution 

Specialist for a period of 20 seconds (or such period as communicated to the 

Execution Specialist). 

Provided, however, the Order shall no longer be considered to be firm during 

the remainder of that period, after: 
64

(i) The Participant’s Order is filled; 

(ii) The Participant or communicates to the Execution Specialist that the 

Order is cancelled and such communication is received by the Execution 

Specialist prior to the Order having been filled, provided, however, if the 

Order has been filled in part, only that part of the Order remaining 

unfilled shall be cancelled; 

(iii) The Participant is filled in the same Swap for the same size but at a 

different price as the original Order; 

(iv) A new Order at a better price in the same Swap is entered onto the RTX 

SEF by the same or a different Participant; or 

(v) A Material Market Event occurs. A “Material Market Event” means one 

determined in the sole discretion of the RTX SEF and shall include, but 

not be limited to: 

(A) Economic news releases by the U.S. Department of Labor 

Bureau of Labor Statistics;

(B) Other recurring material economic news releases; 

(C) Announcements of the Board of Governors of the U.S. Federal 

Reserve System; 

(D) A natural or man-made disaster or a force majeure.

705. Confirmation of Voice Transactions and Objections

The confirmation of all terms of the transaction shall take place at the same time as 

execution. 

(a) Anonymous Trading. In accordance with Rule 518, confirmations of transactions 

executed anonymously will not show counterparty names or identifiers, unless 

such a transaction is a Package Transaction. 

(b) Confirmation of Cleared Transactions. Upon execution, the RTX SEF shall notify 

a Participant of the matching of Bids and Offers through the Electronic Trading 

System as follows. 

(i) Initial notification: With respect to Cleared Transactions matched in a 

Voice Trading Session under Rule 703 but prior to confirmation of the 

execution of the transaction, the matched transaction will be subject to 

the agreement of the parties as to trade structure parameters (the

instrument, the price, direction and amount) and to a manual credit 

check. 

(ii) Confirmation: Upon completion of the transaction, the Execution 

Specialist will key in trade details, which shall include all material 

economic terms, and that the counterparties agree to these terms at 

which time RTX SEF will issue a written trade confirmation of the 

executed trade to the parties, which writing may be electronic, and 
65

which shall legally supersede any previous agreement, and shall serve as 

a confirmation of the transaction.

(c) Objections. Objections to the contents of transaction confirmations must be 

submitted to the RTX SEF, in writing, promptly upon receipt, but no later than 

the close of that Business Day. 

Notwithstanding any other provision of these Rules, in the event that a 

Participant objects under this section to the contents of the confirmation of a 

transaction that has taken place through Voice Functionality under Part 7 of 

these Rules, the Board, through its designee the Chief Executive Officer (or the 

Chief Executive Officer’s delegate) (the “Designee”), is authorized in his or her 

discretion to adjust trade prices or cancel a trade when such action is necessary 

to correct a clear clerical error on the part of the Execution Specialist in 

facilitating trading via Voice Functionality. Any trade price adjustment or trade 

cancellation shall be made subject to the standards of this rule. Any 

determination made under this rule to adjust any trade price or cancel any trade 

shall be announced to the market by a message from the Support Desk or such 

other method as the RTX SEF shall provide and such adjustment shall be 

reported by the RTX SEF to the SDR.

706. Record Keeping and Reporting

All Voice-assisted trading shall be recorded in an unalterable format and retained as 

required under Commission Rule 1.31. All Bids and Offers managed through the Internal 

Digital Ledger Functionality will be retained in an unalterable format as required under 

Commission Rule 1.31. The Execution Specialist shall key in the trade details of the 

transaction immediately upon execution. The RTX SEF shall report publicly such 

transactions as having been executed on or subject to the Rules of the RTX SEF, 

identifying such transactions as voice assisted transactions and, on behalf of the parties 

to the transaction, report the transaction to a Swap Data Repository as soon as 

technologically practicable after execution of the Swap pursuant to Commission Rule 

45.3. 
66

PART 8. CLEARING AND FINANCIAL INTEGRITY OF CONTRACTS

801. Scope

Rules 802 and 803 shall apply to Required Transactions. Rule 804 shall apply to 

Permitted Transactions. Rules 805, 806 and 807 shall apply to both Required and 

Permitted Transactions. 

802. Relation to Clearing Organization

(a) Rules of Clearing Organization. The Bylaws and Rules of the Clearing 

Organization shall be applicable to the clearing of Swaps which are Required 

Transactions traded on or subject to the rules of the RTX SEF. 

(b) Cleared Swaps. Every Swap executed on or subject to the rules of the RTX SEF

that is a Required Transaction will be forwarded by the RTX SEF to the Clearing 

Organization selected by the Participant directly to the Clearing Organization or 

via a STP Facility.

(c) Choice of Clearing Organization. If more than one Clearing Organization is 

available for clearing the Swap, each Participant may designate its choice of 

Clearing Organization for selected transactions by designating a specific Clearing 

Organization for each Order. 

(i) Participants may designate the Clearing Organization by hitting a Bid or 

lifting an Offer for the displayed price of a product cleared by a specific 

Clearing Organization. Participants may enable a general filter on RTX 

SEF systems to view only prices for a selected Clearing Organization(s). 

(ii) Trades executed as transactions to be cleared at a specified Clearing 

Organization will be subject to the collateral requirements of that 

Clearing Organization, including the timing of collateral funding 

requirements of that Clearing Organization. 

(iii) Subject to the clearing authorization requirement of Rule 803, 

Participants may choose a Clearing Organization to which the Swap will 

be forwarded by the RTX SEF. Such Clearing Organization shall be 

authorized or permitted by the Commission, or otherwise meet 

Commission requirements, to clear such Swaps. Such Clearing 

Organizations include but are not limited to the following:

Swap Clearing Organization

Interest Rate 

Swaps

LCH Ltd. and CME, Inc.

(d) Margin. A Participant must comply with all margin requirements of the relevant 

Clearing Organization and its Clearing Participant, if applicable, and any 

applicable margin requirement set forth by Commission Regulation or 

Applicable Law.
67

803. Clearing Authorization Required

(a) Clearing Participant Authorization. 

(i) Every ITBCS trade executed on the Trading System or subject to the 

rules of the RTX SEF shall be cleared through a Clearing Participant 

authorized by the designated Clearing Organization for the given 

product. 

(ii) Each Clearing Participant by entering into a relationship to intermediate 

clearing on behalf of a Trading Participant as provided in subsection (b) 

of this Rule 803, shall be subject to, and shall be considered to have 

consented to, the jurisdiction of the RTX SEF, in respect of such 

transactions, including the jurisdiction of the RTX SEF to impose 

sanctions for violations under Rule 1016. 

(b) Trading Participant Authorization. Each Trading Participant must establish and 

maintain a relationship with a Clearing Participant that will intermediate the 

clearing of the Trading Participant’s Swap transactions.

Each must: 

(i) identify to the RTX SEF its Clearing Participant; 

(ii) ensure they do not request quotes, Bid or Offer or generally trade 

Swaps for a designated Clearing Organization without appropriate 

authorization; and 

(iii) notify the RTX SEF of any change in relationship with a Clearing 

Participant. Such notification must be made prior to executing any trade 

on the Trading System or any cleared trade subject to the rules of the 

RTX SEF.

(c) Evidence of Agreement with Clearing Participant. Evidence of an agreement 

between the Clearing Participant and its Trading Participant must be provided to 

the RTX SEF in the form and manner requested by the RTX SEF and must be 

specific with respect to the products covered thereunder. 

(d) Termination of Clearing Authorization. A Clearing Participant may terminate at 

any time its authorization of a Trading Participant by informing the RTX SEF and 

as applicable the Trading Participant. Notice shall be given in as promptly a form 

as possible and shall be provided in writing no more than twenty-four hours 

after being given by any other means. 

(i) In the event the Clearing Participant notifies the RTX SEF that it will no 

longer novate a Trading Participant’s Swaps, until the Trading 

Participant establishes a relationship with another Clearing Participant 

acceptable to the RTX SEF, the RTX SEF will take immediate steps to: 

(A) withdraw all of the Trading Participant’s resting orders from the 

Trading System, 

(B) terminate the Trading Participant’s access to the Trading 

System; and 
68

(C) terminate the Trading Participant’s access to execute trades 

subject to the rules of the RTX SEF.

804. Financial Integrity for Permitted Transactions

(a) Voluntary Clearing of Swaps. Permitted Transactions executed on or subject to 

the rules of the RTX SEF that are not required to be cleared will only be cleared 

if both counterparties agree, prior to or subsequent to execution, to submit the 

trade to an agreed upon Clearing Organization. If the counterparties elect to 

clear a transaction prior to execution or at the time of execution, it will be 

forwarded by the RTX SEF to the agreed upon Clearing Organization directly or 

via a STP Facility. A Participant electing to clear a transaction must comply with 

all margin requirements of the relevant Clearing Organization and its Clearing 

Participant, if applicable, and any applicable margin requirement set forth by 

Commission Regulation or Applicable Law. 

805. Trades Not Accepted for Clearing

(a) Clearing Certainty. The RTX SEF shall promote certainty of clearing by 

identifying to the Participant that an Order for a cleared contract, if executed, 

would be within the clearing credit or trading limits which are applied by the 

Clearing Participant to the Person on whose behalf the Order has been entered. 

(b) Trades Rejected for Clearing. In the event that a Swap is rejected by the 

Clearing Organization to which it has been submitted, the RTX SEF will so inform 

the Participants that are the counterparties to the trade. A trade for which the 

RTX SEF has received a rejection notice from the Clearing Organization is void ab 

initio; provided however, nothing in this Rule shall supersede the procedures of 

Rule 515 which shall apply to Error Trades. 

(c) Breakage Agreements Prohibited. Participants are prohibited from requiring 

breakage agreements with other Participants as a condition of trading with 

them.

806. Disputes Related to Clearing

Disputes arising from or in connection with the clearance, delivery or settlement of 

Transaction shall be resolved pursuant to the Bylaws, Rule and procedures of the 

Clearing Organization. 

807. Establishment of Daily and Final Settlement Prices

(a) The RTX SEF shall calculate a daily settlement price for each Swap listed for 

trading on the RTX SEF and priced that day via firm or orders. Such daily 

settlement prices shall be calculated in the same manner, shall be published to 

www.rtxfintech.com before 7 PM each Business Day. For information on other

information that RTX SEF will publish to its website, see Rule 1207.
69

(b) Calculation. The RTX SEF will calculate daily settlement prices for Swaps 

receiving Bids or Offers through the Business Day only. Swaps listed for specific 

Clearing Organization clearing that do not receive any executable Bids and 

Offers in the order book on any particular day will not have daily settlement 

prices calculated. The settlement price will be established using an algorithm 

which calculates the settlement price using the following hierarchy of price 

inputs: 

(i) the mid-price of the best executable bid/offer spread present at the 

close rounded to the nearest price increment; then 

(ii) the mid-price of an indicative Bid/Offer spread present at the close 

rounded to the nearest price increment; if none, then 

(iii) the most recent of the following: 

(A) actual Bid; 

(B) actual Offer; 

(C) indicative Bid; 

(D) indicative Offer; and 

(E) last trade.
70

PART 9. BUSINESS CONDUCT

901. Violation of Law

It shall be prohibited for any Participant or Customer to violate or fail to conform to 

applicable provisions of the Act, Commission Regulations or any other law applicable to 

trading on the RTX SEF. 

902. Rule Violation

It shall be prohibited for any Participant or Customer to violate or fail to conform to the 

Rules and procedures of the RTX SEF or with any decision or order of a committee of the 

RTX SEF or any order of any officer, employee or agent of the RTX SEF when acting 

within his, her or its jurisdiction. 

903. No Transfers

No Participant shall transfer or assign such Participant’s trading privileges. Any 

purported transfer or assignment shall not be binding on the RTX SEF. Persons who 

acquire or succeed to the business of any Participant may obtain trading privileges only 

by application to the RTX SEF pursuant to Part 3 of these Rules, except upon the prior 

written consent of the RTX SEF if the Participant is succeeding to the business of a 

Participant solely as a result of the change in the corporate form of the Participant. 

904. False Information

It shall be prohibited for any Person to disseminate any false, misleading or knowingly 

inaccurate information, including reports concerning any Swap or market information or 

conditions that affect or tend to affect the price of any Swap executed on the RTX SEF. 

905. Manipulation Prohibited

No person shall manipulate, or attempt to manipulate, the price of, or to corner, any 

Swap executed on the RTX SEF, or in connection therewith the Underlying Commodity. 

906. Prohibition on Misstatements

No Person shall furnish false or misleading information or fail to furnish information in 

respect of such Person’s activities on or subject to the Rules of the RTX SEF, when 

requested by the RTX SEF or any committee, officer, employee, or agent of the RTX SEF, 

acting in the course of his, her or its duties. 

907. Employees of the RTX SEF

It shall be prohibited to knowingly carry an account, enter an order or effect any 

transaction for any employee of the RTX SEF, the Clearing Organization or any other 
71

Participant without the prior written consent of the employer (which may be in the form 

of a blanket consent to all orders and transactions entered or executed after such 

consent is given). 

908. Abusive Trading Practices Prohibited

No Participant or Customer shall engage in front-running, wash trading, pre-arranged 

trading, fraudulent trading, money passes, accommodation trading, any other 

manipulative activity prohibited by the Act or Commission regulation or disruptive 

trading practice (which includes any trading practice described in Section 4c(a)(5) of the 

Act or in applicable interpretive guidance issued by the Commission and in force at the 

time of the violation), or enter into non-competitive transactions on or subject to the 

Rules of the RTX SEF except as otherwise authorized by these Rules, or execute any such 

Order on behalf of another with such knowledge of its nature. 

909. Detrimental Conduct

No Person shall engage in conduct or practices inconsistent with just and equitable 

principles of trade or conduct or practices detrimental to the best interests of the RTX 

SEF.

910. Fraud Prohibited

No Person shall use or employ, or attempt to use or employ, any manipulative device, 

scheme, or artifice to defraud, or engage, or attempt to engage, in any act, practice, or 

course of business, which operates or would operate as a fraud or deceit upon any 

other Person. 
72

PART 10. DISCIPLINARY PROCEEDINGS

1001. Scope

The procedures of this Part 10 shall apply to any Person that is subject to, and that is 

bound by, the Rules of the RTX SEF. 

1002. Investigations

(a) Investigation. The Compliance Department and its designees are responsible for 

investigating possible violations of the Rules upon request from Commission 

staff or the discovery or receipt of information which, in their judgment, 

indicates a possible basis for finding that a violation has occurred or will occur. 

Investigations shall be conducted by the Compliance Department in accordance 

with these Rules. The RTX SEF may contract for the performance of specified 

functions assigned by these Rules to the Compliance Department. The RTX SEF

retains ultimate responsibility of the investigations. 

(b) Investigation Report. After conducting an investigation, the Compliance 

Department shall prepare a written report including the reason the 

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

facts, the Compliance Department’s conclusions, analysis and recommendation 

as to whether disciplinary action should be pursued. This written report shall be 

produced within twelve months following the initiation of the investigation, 

absent mitigating circumstances. If the Compliance Department has determined 

that a reasonable basis exists for finding a violation, it shall make a 

recommendation as to whether the Disciplinary Committee should proceed with 

the matter. The Compliance Department may also issue a warning letter to the 

Person being investigated or forward to the Review Panel of the Disciplinary 

Committee a recommendation that it issue a warning letter. A warning letter 

issued to the Person under investigation under this paragraph is not a penalty or 

an indication that a finding of a violation has been made.

The investigation report shall become part of the investigation file, which shall 

be maintained by the Compliance Department for a period of not less than five 

years after the completion of such report. The Compliance Department shall 

promptly provide the Disciplinary Committee with a copy of each investigation 

report.

1003. Review of Investigation Report

The Review Panel shall promptly review each investigation report prepared by the 

Compliance Department. In the event the Review Panel decides that additional 

investigation or evidence is needed, it shall promptly direct the Compliance Department

to conduct further investigation. Within a reasonable period of time not to exceed sixty

days after the receipt of a completed investigation report, the Review Panel shall take 

one of the following actions: 
73

(a) 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 contain a 

brief statement setting forth the reasons therefore. 

(b) If the Review Panel determines that a reasonable basis exists for finding a 

violation which should be adjudicated, it shall direct that any Person alleged to 

have committed the violation be served by Compliance Department with a 

notice of charges, thus commencing disciplinary proceedings pursuant to these 

Rules. 

(c) The Review Panel may also determine to issue a warning letter to the Person 

being investigated. A warning letter issued to Person under investigation under 

this paragraph is not a penalty or an indication that a finding of a violation has 

been made.

1004. Respondent

A Person alleged in a Notice of Charges to have committed a violation shall be referred 

to as the Respondent. 

1005. Notice of Charges

A written Notice of Charges shall be served by Compliance Department on any 

Respondent as directed by the Review Panel. A Notice of Charges means a notice of a 

disciplinary proceeding by RTX SEF Compliance Department that shall include the 

following:

(a) State the acts, practices or conduct in which the Respondent is alleged to have 

engaged; 

(b) State the provision of the Rules alleged to have been, or are about to be, 

violated; 

(c) State the predetermined penalty, if any; 

(d) State that the Respondent is entitled to a hearing on the charges upon written 

request served upon the Compliance Department within 30 days of service of 

the Notice of Charges and filed with the Hearing Panel of the Disciplinary 

Committee and that failure so to request a hearing within 30 days, except for 

good cause shown, shall be deemed a waiver of the right to a hearing; and 

(e) State that the Respondent is entitled to serve an answer upon the Compliance 

Department within 30 days of service of the Notice of Charges and to file such 

answer with the Hearing Panel and that failure in an answer to deny expressly 

any allegation or any charge in the Notice of Charges shall be deemed to be an 

admission of such allegation or charge.

1006. Service
74

Service of a Notice of Charges or any other document in a disciplinary proceeding on a 

Respondent shall be made by personal delivery to the Respondent or the Respondent’s 

agent appointed under Rule 303(b) or by first class mail addressed to the Respondent at 

the last address filed by the Respondent with, or otherwise known to, the RTX SEF. 

However, if the Respondent is represented by counsel in the disciplinary proceeding, 

service shall be by personal delivery to counsel or by first class mail addressed to 

counsel at the last address filed by counsel with the RTX SEF. Service of any document 

on the Compliance Department shall be made by personal delivery to the Compliance 

Department or by first class mail addressed to the Compliance Department, in either 

case at the address specified in the notice of charges. Filing with the Disciplinary 

Committee may be made by personal delivery to the Disciplinary Committee or by first 

class mail addressed to the Disciplinary Committee at the address specified in the notice 

of charges. Service by mail shall be complete when deposited in an official depository of 

the United States Postal Service. If service is made by mail, any time period in these 

Rules calculated with respect to the date of service shall be extended by a period of five 

days. Service may be effected through electronic mail or facsimile upon the agreement 

of all parties. 

1007. Answer from Respondent

(a) A Respondent receiving a Notice of Charges may serve a written answer to the 

Notice of Charges upon the Compliance Department and file the answer with 

the Hearing Panel, provided that: 

(i) the answer must be in writing and include a statement that the 

Respondent admits, denies or is without knowledge or information 

sufficient to form a belief as to the truth of each allegation. 

(ii) failure to serve an answer within 30 days following the service of the 

Notice of Charges shall be deemed an admission of all allegations 

contained in the notice of charges. 

(iii) failure in an answer to expressly deny any charge or allegation shall be 

deemed to be an admission of the charge or allegation; provided, 

however, that a statement of a lack of sufficient knowledge or 

information to form a belief as to the truth of an allegation shall have 

the effect of a denial of the allegation. 

(b) If the Respondent admits or fails to deny any of the charges in a notice of 

charges, the Hearing Panel may find that the violation of the Rules alleged in the 

charge has been committed and may impose a penalty no greater than the 

predetermined penalty, if any, stated in the Notice of Charges for such violation 

or violations. If no predetermined penalty was so stated, the Hearing Panel shall 

impose a penalty for each violation found to have been committed. 

(c) If the Hearing Panel imposes a penalty pursuant to paragraph (b) of this Rule, 

the Respondent and the Compliance Department shall be promptly served with 

a written notice of any penalty to be imposed and shall advise the Respondent 

that he or she may request a hearing on the penalty, provided that a written 

request for a hearing must be served upon the Compliance Department within 

30 days following service of the notice and filed with the Hearing Panel. 
75

However, no hearing shall be permitted on a penalty that is less than or equal to 

the predetermined penalty, except for good cause shown. If the Respondent 

fails to request a hearing within 30 days following service of the notice, the 

Respondent shall be deemed to have accepted the penalty, and the decision of

the Hearing Panel shall be the final action of the RTX SEF.

1008. Right to Representation

A Respondent shall be entitled to be represented by legal counsel or any other 

representative of the Respondent’s choosing in any proceedings under this part of the 

Rule; provided, however, that this Rule does not constitute the basis for any claim that 

the RTX SEF must furnish an attorney to a Respondent.

1009. Hearings

(a) If the Respondent has, in a timely manner, requested a hearing on a charge 

which is denied in the Respondent’s answer or on a penalty imposed by the 

Hearing Panel pursuant to Rule 206 and this Part 10 (other than a 

predetermined penalty stated in the notice of charges), the Respondent shall 

have an opportunity for a hearing on the matter. Such hearing shall be promptly 

convened after fair notice to the Respondent. 

(b) Any hearing shall be conducted before a Hearing Panel of three members of the 

Disciplinary Committee. 

(c) The Respondent shall be entitled in advance of the hearing to examine all 

books, documents, or other tangible evidence in the possession or under the 

control of the RTX SEF which are to be relied upon by the Compliance 

Department in presenting the charges contained in the Notice of Charges or 

which are relevant to those charges or the penalties. 

(d) The formal rules of evidence need not apply; nevertheless, the procedures for 

the hearing may not be so informal as to deny a fair hearing. 

(e) The Compliance Department shall be a party to the hearing and shall present its 

case on those charges and penalties which are the subject of the hearing. 

(f) The Respondent shall be entitled to appear personally at the hearing. 

(g) The Respondent shall be entitled to cross-examine any persons appearing as 

witnesses at the hearing. 

(h) The Respondent shall be entitled to call witnesses and to present such evidence 

as may be relevant to the charges or the penalties and the Compliance 

Department shall be entitled to cross-examine any witness called by the 

Participant. 

(i) The RTX SEF shall require Persons within its jurisdiction called as witnesses to 

appear at the hearing and to produce evidence. It shall make reasonable efforts 

to secure the presence of all other Persons called as witnesses whose testimony 

would be relevant. 
76

(j) A substantially verbatim record of the hearing shall be made and shall become a 

part of the record of the proceeding. The record must be one that is capable of 

being accurately transcribed; however, it need not be transcribed unless the 

transcript is requested by Commission staff or the Respondent. The record shall 

be transcribed pursuant to Commission Rule 9.21(a) if the decision is appealed 

to or reviewed by the Commission. In all other instances, a summary record of 

the hearing is permitted. 

(k) The cost of transcribing the record of the hearing shall be borne by the 

Respondent if the Respondent requests the transcript or appeals the decision to 

the Commission. In all other instances, the cost of transcribing the record shall 

be borne by the RTX SEF. 

(l) A penalty pursuant to Part 10 may be summarily imposed by the hearing panel 

of the Disciplinary Committee upon any person within its jurisdiction whose 

actions impede the progress of a hearing.

1010. Decision

(a) Promptly following the hearing, the Hearing Panel of the Disciplinary Committee 

shall render a written decision based upon the weight of the evidence contained 

in the record of the proceeding and shall serve a copy of its decision within 30 

days upon the Compliance Department and the Respondent. The decision, shall 

be the final action of the RTX SEF and shall not be subject to appeal within the 

RTX SEF. The decision shall become effective at the time set forth therein the 

decision, which shall be not less than fifteen days after the written decision has 

been delivered to the Person disciplined or denied access. Where delivery is by 

U.S. mail, an additional three day period shall be provided prior to the decision 

becoming effective. Provided, however, that a decision may become effective in 

fewer than fifteen days if, as determined by the RTX SEF and stated in the 

decision, such an action is necessary to protect the best interests of the RTX SEF, 

the violation relates to timely submission of accurate records required for 

clearing, or the disciplined Person consents to the penalty and the timing of its 

effectiveness. The decision shall include: 

(i) the Notice of Charges or a summary of the charges; 

(ii) the answer, if any, or a summary of the answer; 

(iii) a brief summary of the evidence produced at the hearing or, where 

appropriate, incorporation by reference of the investigation report; 

(iv) a statement of findings and conclusions with respect to each charge, a 

complete explanation of the evidentiary and other basis for such 

findings and conclusions with respect to each charge and basis for 

imposing sanctions, and an indication of each specific Rule which the 

Respondent is found to have violated; and 

(v) a declaration of any penalty imposed and the effective date of such 

penalty. 
77

(b) When a decision under Rules 1010, 1015, or 1016 has become final, the RTX SEF

shall—in the event that the Respondent is a member of the National Futures 

Association—within thirty days, provide a copy of such decision by electronically 

providing such information to the National Futures Association for entry into its 

Background Affiliation Status Information Center system. 

1011. Penalties

(a) The Hearing Panel of the Disciplinary Committee may impose any one or more 

of the following penalties for violation of the Rules against any Person that is 

subject to the jurisdiction of the RTX SEF, including but not limited to, any 

Participant, Clearing Participant or Customer: 

(i) a censure or reprimand; 

(ii) suspension of trading privileges; 

(iii) termination as a Participant or its acceptability as a Clearing Participant; 

(iv) a fine of up to $100,000 per violation; or 

(v) such other penalty as the hearing panel in its discretion shall deem 

appropriate. 

(b) In the case of any penalty imposed on a Respondent denying access in whole or 

in part to the RTX SEF’s market, the Hearing Panel shall issue an order to all 

Participants prohibiting them from granting such access, directly or indirectly, 

and any knowing violation of such an order shall constitute a violation of the 

Rules. 

(c) Any penalty imposed under Rule 1011, 1012, 1013, 1014, 1015 or 1016 shall be 

commensurate with the violation committed, shall take into account the 

respondent’s disciplinary history and where applicable, shall include full 

customer restitution, except where the amount of restitution or to whom it 

should be provided cannot be reasonably determined. 

(d) Each Participant will be responsible for paying any fine or other amount 

imposed on but not paid by any of its Supervised Persons, or Customers. 

1012. Predetermined Penalties

The RTX SEF may adopt specific maximum penalties for particular types of violations 

(“Predetermined Penalties”). If it does so, the Disciplinary Committee or a Hearing Panel 

of the Disciplinary Committee shall have discretion in each case whether to employ the 

predetermined penalty. If the predetermined penalty is employed, it shall be stated in 

the notice of charges. In such a case, after a hearing on a denied charge where a 

Respondent is found to have committed the violation charged, the hearing panel of the 

Disciplinary Committee shall impose the predetermined penalty or an appropriate lesser 

penalty. 
78

1013. Settlement

(a) At any time after the issuance of a Notice of Charges and prior to the issuance of 

a decision pursuant to Rule 1010, a Respondent may serve upon the Compliance 

Department and file with the Disciplinary Committee a written proposal to 

settle the matter in question. The Disciplinary Committee may accept or reject 

the settlement proposal, but may not alter its terms unless the Respondent 

agrees. The Disciplinary Committee, in its discretion, may permit the 

Respondent to accept a penalty without either admitting or denying the 

violations upon which the penalty is based. 

(b) If the Disciplinary Committee accepts a settlement proposal, it shall issue a 

written decision specifying the violations it has reason to believe were 

committed and any penalty to be imposed. If the settlement proposal specifies 

that the Respondent is agreeing to accept a penalty without either admitting or 

denying any violations, the decision shall so state. 

(c) If the Disciplinary Committee does not accept a settlement proposal or if the 

Respondent withdraws the proposal after its submission but before its final 

acceptance by the Disciplinary Committee, the proceedings shall continue 

against the Respondent, but the Respondent shall not be deemed to have made 

any admissions by reason of the settlement proposal and shall not be otherwise 

prejudiced by having submitted the settlement proposal.

1014. Minor Penalties

(a) The Compliance Department may summarily impose a fine against any 

Participant or Customer, as applicable: 

(i) for failing to make timely payments of dues, fees, fines, assessments or 

other charges; 

(ii) for failing to make timely and accurate submissions to the RTX SEF of 

notices, reports, or other information required under any provision of 

the Rules; or 

(iii) for failing to keep any records required under any provision of the 

Rules. 

(b) The amounts of the fines for any category of violations which may be imposed 

pursuant to this Rule shall be set by the RTX SEF from time to time, provided 

that the minimum fine shall not be less than $1,000 and the maximum fine for 

any one violation shall not exceed $10,000. Nothing contained in this Rule shall 

preclude any other action against a Participant pursuant to the Rules. The 

imposition of a fine against a Participant pursuant to this Rule shall be the final 

action of the RTX SEF if the Participant does not request review as provided in 

paragraph (c) of this Rule. 

(c) The Compliance Department shall serve a Participant with written notice of a 

fine imposed pursuant to paragraph (a) of this Rule. Such notice shall specify the 

date of the occurrence for which the fine is being imposed, the provision or 

provisions of the Rules giving rise to the fine and the amount of the fine. Within 

10 days of the service of such notice, the Participant shall either pay the fine or 
79

serve the RTX SEF with a written request specifying the basis for review of the 

fine by a hearing panel of the Disciplinary Committee. 

1015. Participant Responsibility Actions

(a) The RTX SEF may summarily suspend any Participant or Broker exercising 

Trading Privileges or take other summary action against such a Broker if the RTX 

SEF reasonably believes that such immediate action is necessary to protect the 

best interests of the marketplace. 

(b) Any action taken against any Participant or Broker exercising Trading Privileges 

pursuant to this Rule shall be taken after notice and an opportunity to be heard, 

unless the RTX SEF determines that giving such notice or opportunity to be 

heard before taking such action is not practicable under the circumstances. The 

notice shall state the action, the reasons for the action, and the effective time 

and date and the duration of the action. In any case in which action is taken 

without prior notice and opportunity to be heard, the RTX SEF shall give the 

Participant notice and an opportunity to be heard promptly thereafter. 

(c) Any hearing held pursuant to this Rule shall be held before a Hearing Panel of 

the Disciplinary Committee and shall be conducted in compliance with Part 10. 

(d) Promptly following the hearing held pursuant to this Rule, the Hearing Panel of 

the Disciplinary Committee shall render a written decision based upon the 

weight of the evidence contained in the record of the proceeding and shall 

serve a copy of such decision on the Participant and the Compliance 

Department. The decision shall be the final action of the RTX SEF and shall not 

be subject to appeal within the RTX SEF. The decision shall include: 

(i) a description of any summary action taken or proposed to be taken; 

(ii) the reasons for the summary action; 

(iii) a brief summary of the evidence produced at the hearing; 

(iv) findings and conclusions; 

(v) a determination that the summary action should be affirmed, modified, 

reversed, or imposed; and 

(vi) a declaration of any summary action to be taken pursuant to the 

determination specified in subparagraph (v) and the effective date and 

duration of the action.

1016. Action Against Non-Participants

(a) If the Compliance Department has reason to believe that any non-Participant is 

conducting his trading activities in violation of the Commodity Exchange Act, 

Commission Rules or these Rules, it may require the non-Participant and any 

Participant or Broker that handles or clears the non-Participant’s trades to 

appear, produce documents and testify at a Compliance Department interview 

or investigation, or at a hearing before the Disciplinary Committee. 
80

(b) If, after hearing, the Disciplinary Committee determines that the actions of the 

non- Participant violate the Commodity Exchange Act, the Commission Rules or 

these Rules, the Disciplinary Committee may: 1) issue a censure or reprimand; 

2) order any Clearing Participant to liquidate all or any portion of such nonParticipant’s position; 3) order that no Participant accept new positions on 

behalf of any such non-Participant; 4) deny or terminate access of such nonParticipant to the Trading System and the RTX SEF; 5) impose any Penalty 

authorized under Rule 1011, or 6) order such other action as is necessary to 

prevent a threat to the integrity of the market or to RTX SEF or further violations 

of the Commodity Exchange Act or these Rules. 

(c) In the case of a penalty imposed on a Respondent that is not a Participant 

denying access to the RTX SEF, the Hearing Panel shall issue an order to all 

Participants prohibiting them from granting such access, directly or indirectly, 

and any knowing violation of such an order shall constitute a violation of the 

Rules.

1017. Conflicts of Interest or Bias

(a) No member of any committee of the RTX SEF shall knowingly participate in the 

committee’s deliberations and voting on any matter involving a named party-ininterest where the member is precluded from doing so pursuant to Part 2. 

(b) Prior to the consideration of any matter involving a named party-in-interest, 

each member of a committee of the RTX SEF must disclose to the Chief 

Compliance Officer of the RTX SEF (or to his or her designee) whether he or she 

has any one of the relationships listed in Rules 207 and 209 with the named 

party-in-interest. 

(c) Any Respondent which is a named party-in-interest in any proceeding under this 

Part of the Rules may serve a written request on the Chief Compliance Officer of 

the RTX SEF for disqualification of any member of any committee of the RTX SEF

on the grounds that such member has one of the relationships listed in Rules 

207 or 209 or that any other cause exists which might cause the member to 

have a bias against such Respondent. 

(d) The Chief Compliance Officer (or his or her designee) shall determine whether 

or not any member of a committee of the RTX SEF will be disqualified from 

deliberating, voting or otherwise participating in any matter based upon: 

(i) information provided by such Participant pursuant to paragraph (b) of 

this Rule; 

(ii) information provided by a Respondent which is a named party-ininterest pursuant to paragraph (c) of this Rule; and 

(iii) any other source of information that is reasonably available to the RTX 

SEF. 

(e) The Chief Compliance Officer (or his or her designee) shall promptly serve 

written notice of his or her determination on the member of the committee and 
81

on the Respondent which is the named party-in-interest, and such 

determination shall be final and not subject to appeal within the RTX SEF. 

No employee of the Compliance Department or any other employee of the RTX 

SEF may serve in any investigatory, prosecutorial or decision-making capacity 

relating to any matter involving a named party-in-interest if he or she would be 

precluded from participating in deliberations and voting on such matters 

pursuant to Part 2 if he or she were a member of a committee of the RTX SEF. 

The provisions of paragraphs (b) through (e) of this Rule shall be applicable to 

such employee of the RTX SEF as though such person were a member of a 

committee of the RTX SEF.
82

PART 11. CUSTOMER DISPUTES

1101. Procedure for Resolution

Any dispute between a Customer and a Participant or between a Participant and a 

Broker arising out of or in connection with the solicitation or acceptance of any order 

for execution of a Swap, or the execution of any Swap, shall be resolved by and pursuant 

to the arbitration rules of the NFA or such other self-regulatory organization as the 

parties may agree. The failure by any Participant to comply with any decision issued by 

the NFA or such other self-regulatory organization in resolving any such dispute shall 

constitute a violation of these Rules, unless the decision is the subject of pending 

judicial review.
83

PART 12. MISCELLANEOUS

1201. Prohibition of Compensation to RTX SEF Employees

No Participant, Affiliate of a Participant or employee thereof shall give any 

compensation or gratuity to any RTX SEF employee, and no RTX SEF employee shall 

accept any compensation or gratuity from any Participant, Affiliate of a Participant or 

employee thereof; provided that the foregoing shall not preclude giving or accepting 

items of nominal value. 

1202. Rule Adoption, Amendment, and Repeal

(a) Rules may be adopted, amended or repealed by the RTX SEF as provided in 

these Rules. However, no Rule and no amendment or repeal of a Rule shall 

apply to any Swap or Swap entered into prior to the adoption thereof if such 

Rule, amendment or repeal would affect the amount of money to be paid, or 

would affect the specifications of the Swap or Underlying Commodity to be 

delivered, under such Swap, unless emergency action has been taken pursuant 

to Rule 208. 

(b) Unless a Rule is adopted, amended or repealed as an emergency action 

pursuant to Rule 208, or it is otherwise impracticable under the circumstances, 

the RTX SEF shall: 

(i) post on its website the submission to the Commission certifying or 

requesting approval of such Rule, Rule amendment or Rule repeal for a 

period of not less than five business days prior to filing the submission 

with the Commission; 

(ii) notify Participants of the posting of the submission when it is first 

posted; and 

(iii) accept comments on the submission from Participants and the public 

from the time of posting until the conclusion of the Commission’s 

review period.

1203. Confidentiality of Information

(a) Except as provided in Rule 309, all information received by the RTX SEF

concerning positions, margin or premium payments, or deliveries, financial 

statements filed with the RTX SEF, or other non-public information submitted to 

the RTX SEF for regulatory purposes by any Participant (“Participant 

Information”), shall be held in confidence by the RTX SEF and shall not be made 

known to any other Person except as follows: 

(i) With the written consent of the Participant providing such information; 

(ii) To the Commission or the United States Department of Justice pursuant 

to the requirements of the Commodity Exchange Act or any Regulation 

of the Commission or of any other Governmental Agency with 
84

jurisdiction over the RTX SEF, which would allow the RTX SEF to carry 

out such information- sharing agreements and international 

information-sharing agreements as the CFTC may require; 

(iii) Pursuant to a subpoena issued by or on behalf of any Person or, in the 

RTX SEF’s discretion, pursuant to a written request from the Congress of 

the United States, any committee or subcommittee thereof, the General 

Accounting Office, or any department or agency of the United States, 

the State of New York or the City of New York; 

(iv) Pursuant to an order issued by a court having jurisdiction over the RTX 

SEF; 

(v) To any SRO or authority acting under contract to the RTX SEF for 

performance of SRO functions, for audit, compliance, surveillance, or 

disciplinary purposes; 

(vi) To any Person in the business of providing data processing or similar 

services for the purpose of performing computations or analysis, or of 

preparing reports or records, for the RTX SEF, subject to reasonable 

confidential safeguards; 

(vii) To counsel for the RTX SEF; or 

(viii) To any other Person to the extent and pursuant to such terms and 

conditions as the RTX SEF, from time to time, may deem appropriate, 

employing reasonable confidential safeguards. 

(b) Participant Information shall not include information which is: 

(i) in or becomes part of the public domain; 

(ii) known to or obtained by such party previously without an obligation of 

confidentiality; 

(iii) independently developed by such party outside of this Agreement; 

(iv) required to be disclosed by Applicable Law, or pursuant to a subpoena 

or order of a court or regulatory, self-regulatory or legislative body of 

competent jurisdiction, or in connection with any regulatory or selfregulatory request for information, or that the RTX SEF otherwise 

deems advisable, in its discretion, to disclose to a governmental, selfregulatory or legislative organization.; or 

(v) information submitted by Participants or Brokers that is displayed by 

the RTX SEF on the Trading System or otherwise distributed or sold by 

the RTX SEF regarding Bids, Offers, or executed transactions, provided 

that such displays and distributed or sold information shall not identify 

Participant by name, unless the RTX SEF is explicitly directed to do so by 

Participant and only then for the express purposes set forth in and 

under conditions in compliance with the Rules. 

(c) If information concerning one or more named Participants is requested 

pursuant to paragraphs (b), (c) or (d) above, the RTX SEF shall notify each such 
85

Participant prior to furnishing such information, unless in the judgment of the 

RTX SEF it would be contrary to the best interests of the RTX SEF to do so.

1205. Limitation of Liability

(a) Business on the Trading System may from time to time be suspended or 

restricted or the RTX SEF may from time to time be closed for a temporary 

period or for such longer period as may be determined in accordance with the 

Rules including, without limitation, as a result of a decision taken under Rule 

208 on the occurrence of one or more events which require such action to be 

taken in the interests of maintaining a fair and orderly market. Any such action 

may result in the inability of one or more Participants and, through such 

Participants, one or more Customers to enter into Swaps. Furthermore, a 

Participant and, through such Participant, one or more Customers may from 

time to time be prevented or hindered from entering into Swaps, or trading 

Swaps, or errors in orders for Swaps and/or Swaps may arise, or submission of 

trades to the Clearing Organization or to a confirmation/affirmation platform 

may be delayed, as a result of a failure or malfunction of communications, 

equipment, market facilities, the Trading System, or software supplied to a 

Participant by the RTX SEF or any other Person. 

(b) EXCEPT IN INSTANCES WHERE THERE HAS BEEN A FINDING OF FRAUD OR 

WILLFUL OR WANTON MISCONDUCT, IN WHICH CASE THE PARTY FOUND TO 

HAVE ENGAGED IN SUCH CONDUCT CANNOT AVAIL ITSELF OF THE 

PROTECTIONS OF THIS RULE, THE RTX SEF (INCLUDING ITS AFFILIATES), THE 

CLEARING ORGANIZATION, CLEARING PARTICIPANTS, PARTICIPANTS AND THEIR 

RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, LICENSORS AND 

SERVICE PROVIDERS AND VENDORS (EACH, A “DISCLAIMING PARTY” AND 

COLLECTIVELY, “DISCLAIMING PARTIES”) SHALL NOT BE LIABLE TO ANY PERSON, 

INCLUDING WITHOUT LIMITATION ANY CUSTOMER, FOR ANY LOSS, DAMAGE 

OR COST (INCLUDING BUT NOT LIMITED TO ATTORNEYS’ FEES AND COURT 

COSTS), WHETHER DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, 

LOST PROFITS OR OTHERWISE OF ANY KIND, REGARDLESS OF WHETHER ANY OF 

THEM HAS BEEN ADVISED OR IS OTHERWISE AWARE OF THE POSSIBILITY OF 

SUCH DAMAGES, ARISING OUT OF THE USE OR PERFORMANCE OF THE TRADING 

SYSTEM, ANY COMPONENT(S) THEREOF, OR ANY FAULT, FAILURE, 

MALFUNCTION OR OTHER ALLEGED DEFECT IN THE TRADING SYSTEM, 

INCLUDING ANY INABILITY TO ENTER OR CANCEL ORDERS IN THE TRADING 

SYSTEM, OR ANY FAULT IN DELIVERY, DELAY, OMISSION, SUSPENSION, 

INACCURACY OR TERMINATION, OR ANY OTHER CAUSE IN CONNECTION WITH 

THE FURNISHING, PERFORMANCE, MAINTENANCE, USE OF OR INABILITY TO USE 

ALL OR ANY PART OF THE TRADING SYSTEM, INCLUDING BUT NOT LIMITED TO 

(1) ANY OF THE CIRCUMSTANCES OR OCCURRENCES REFERRED TO IN 

PARAGRAPH (a) OF THIS RULE OR (2) ANY FAILURE OR DELAY IN TRANSMISSION 

OF ORDERS OR TRADES OR LOSS OF ORDERS OR TRADES RESULTING FROM (A) 

MALFUNCTION OF THE TRADING SYSTEM, (B) DISRUPTION OF COMMON 

CARRIER LINES, (C) LOSS OF POWER, (D) ACTS OR FAILURES TO ACT OF ANY 

THIRD PARTY, (E) NATURAL DISASTERS OR (F) ANY AND ALL OTHER CAUSES. THE 
86

FOREGOING SHALL APPLY REGARDLESS OF WHETHER A CLAIM ARISES IN 

CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE. THE 

FOREGOING LIMITATIONS ARE CUMULATIVE AND SHALL NOT LIMIT OR 

RESTRICT THE APPLICABILITY OF ANY OTHER LIMITATION OR RULE, TRADING 

PROCEDURE OR NOTICE OF THE RTX SEF OR RULE OF THE CLEARING 

ORGANIZATION. 

(c) THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS 

PROVIDED BY ANY DISCLAIMING PARTY RELATING TO THE TRADING SYSTEM OR 

ANY FACILITY SERVICE OR FACILITIES USED TO SUPPORT THE TRADING SYSTEM, 

INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY AND 

WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE OR USE. 

(d) IF ANY OF THE FOREGOING LIMITS ON THE LIABILITY OF A DISCLAIMING PARTY 

SHOULD BE DEEMED TO BE INVALID, INEFFECTIVE, OR UNENFORCEABLE OR IN 

THE EVENT THE RTX SEF ELECTS TO ASSUME RESPONSIBILITY FOR DIRECT, OUT 

OF POCKET LOSSES DIRECTLY CASED BY THE GROSS NEGLIGENCE OF A 

DISCLAIMING PARTY AND ANY PARTICIPANT OR THIRD PARTY SUSTAINS A LOSS, 

DAMAGE OR COST RESULTING FROM USE OF THE TRADING SYSTEM, THE ENTIRE 

LIABILITY OF ALL DISCLAIMING PARTIES SHALL NOT EXCEED $100,000 FOR ALL 

LOSSES SUFFERED FROM ALL CAUSES ON A SINGLE CALENDAR DAY; $200,000 

FOR ALL LOSSES SUFFERED FROM ALL CAUSES IN A SINGLE CALENDAR MONTH; 

AND $1,000,000 FOR ALL LOSSES SUFFERED FROM ALL CAUSES IN A SINGLE 

CALENDAR YEAR. IF THE NUMBER OF ALLOWED CLAIMS ARISING OUT OF ANY 

FAILURE OR MALFUNCTIONS ON A SINGLE DAY OR SINGLE MONTH CANNOT BE 

FULLY SATISFIED BECAUSE OF THE ABOVE DOLLAR LIMITATIONS, ALL SUCH 

CLAIMS SHALL BE LIMITED TO A PRO RATA SHARE OF THE MAXIMUM AMOUNT 

FOR THE RESPECTIVE PERIOD. 

(e) NOTWITHSTANDING ANY OF THE FOREGOING, THIS RULE SHALL IN NO WAY 

LIMIT THE APPLICABILITY OF ANY PROVISION OF THE ACT OR COMMISSION 

REGULATIONS.

1206. Dispute Resolution

(a) Choice of Law. The law of the State of New York shall govern any dispute arising 

between the RTX SEF and a Participant without giving effect to the provisions, 

policies or principles of any state law relating to choice or conflict of laws.

(b) Arbitration Required. Any dispute arising between the RTX SEF and a 

Participant must be brought to arbitration within one (1) year from the 

occurrence of the event giving rise to the dispute. Any such dispute shall be 

settled by arbitration administered in New York, NY by the American Arbitration 

Association (the “AAA”) under its Commercial Arbitration Rules. The dispute will 

be submitted to one arbitrator that has experience with and knowledge of 

commodities, derivatives and Swaps as listed on the National Roster of 

Arbitrators , and who is appointed by the AAA. Judgment on the award 

rendered by the arbitrator will be binding on the parties and may be entered in 

any state or federal court sitting in New York, New York, and the parties shall be 

deemed to have consented to the personal jurisdiction of any such court. Each 
87

party to the arbitration shall bear its own costs and expenses, as well as an 

equal share of the administrative and arbitrator fees. However, the arbitrator 

may reimburse the prevailing party for its costs and expenses in any award. If 

for any reason this Arbitration provision is unenforceable, the parties hereby 

consent to the venue and jurisdiction of the federal and state courts located in 

New York, New York, and waive any objection thereto. Each Party hereby 

waives its right to trial by jury in any such action.

1207. Publication of Information

The RTX SEF as provided by Commission Rule 16.01 shall record for each business day 

and publish on its website, www.rtxfintech.com, in pdf format, market data on swaps.

For daily settlement prices, RTX SEF will publish such prices to its website before 7 p.m. 

each Business Day as provided under Rule 807.

1208. Trading System

Each Participant, Broker and other Persons affiliated with any of the foregoing hereby 

acknowledges and agrees that the RTX SEF owns and shall retain all right, title and 

interest in and to the Trading System and related, associated and/or supporting systems 

administered by or on behalf of the RTX SEF (including, without limitation, the ones for 

order entry, confirmation and reporting of the Swap transactions, whether entered 

through the Electronic Order Book, Voice Functionality, all components of all of the 

foregoing, including, without limitation, all related applications, all application 

programming interfaces, user interface designs, software and source code and any and 

all intellectual property rights therein, including, without limitation, all registered or 

unregistered, as applicable copyright, trade mark, service mark, trade secret, trade 

name, data or database rights, design rights, moral rights, inventions, whether or not 

capable or protection by patent or registration, rights in commercial information or 

technical information, including, without limitation, know- how, research and 

development data and manufacturing methods, patent, and other intellectual property 

and ownership rights, including, without limitation, applications for the grant of any of 

the same, in or to any and all of the foregoing and all other related proprietary rights of 

the RTX SEF and/or any of its Affiliates (together, with any and all enhancements, 

corrections, bug fixes, updates and other modifications to any of the foregoing and any 

and all data or information of any kind transmitted by means of any of the foregoing, 

“Proprietary Information”). Each Participant and Broker, on behalf of itself and each of 

its Affiliates, and other Persons affiliated with any of the foregoing, further 

acknowledges and agrees that the Proprietary Information is the exclusive, valuable and

confidential property of the RTX SEF. Each Participant and Broker acknowledges and 

agrees that it shall not and shall not permit its Affiliates, and other Persons affiliated 

with any of the foregoing to, reverse engineer, copy, bug fix, correct, update, transfer, 

reproduce, republish, broadcast, create derivative works based on or otherwise modify, 

in any manner, all or any part of the Trading System or the Proprietary Information. 

Each Participant and each Broker further agrees to and shall cause each of its Affiliates, 

and other Persons affiliated with any of the foregoing to, keep the Proprietary 

Information confidential and not to use (except that each Participant and Broker may 
88

use solely internally for the purposes of the Participant executing Swap transactions on 

the Trading System),and not to transfer, rent, lease, loan, sell or distribute, directly or 

indirectly, all or any portion of the Trading System or any Proprietary Information. 

1209. Enforceability

A transaction entered into on or pursuant to the rules of the RTX SEF shall not be void, 

voidable, subject to rescission, otherwise invalidated, or rendered unenforceable as a 

result of: 

(a) A violation by the swap execution facility of the provisions of section 5h of the 

Act or the Commission’s rules; 

(b) Any Commission proceeding to alter or supplement a rule, term, or condition 

under section 8a(7) of the Act or to declare an emergency under section 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 

procedure; or 

(ii) Require the RTX SEF to adopt a specific term or condition, trading rule 

or procedure, or to take or refrain from taking a specific action.

1210. Audit Trail

The RTX SEF shall make available all audit trail data and reconstructions to the 

Commission in a form, manner and time that is acceptable to the Commission.

1211. Conflicts with Governing Documents

In the event of any conflict between any provision of these Rules and any provision of 

the governing documents of the RTX SEF, the provision of the governing documents 

shall govern, except where the governing documents provide otherwise. 

1212. Time References.

Except as may be otherwise expressly provided in these Rules, all references to times in 

these Rules shall be to the local time prevailing in New York, New York. 
89

PART 13. PRODUCTS

1301. Swap Contracts Made Available to Trade

Every Swap or an economically equivalent Swap that is required to be cleared under 

Commission Rule 37.10 and which has been made available for trading on a swap 

execution facility and which is listed for trading on the RTX SEF is Made Available to 

Trade on the RTX SEF; provided, however, that the following Swaps listed or offered for 

trading on or subject to the Rules of the RTX SEF shall not be considered to be Made 

Available to Trade on the RTX SEF: 

(a) Block trades as provided under Rule 510.

1302. Position Limits or Position Accountability

To reduce the potential threat of market manipulation or congestion, the RTX SEF shall 

adopt for each of the contracts of the RTX SEF, as is deemed necessary and appropriate 

by the RTX SEF, position limitations or position accountability levels for speculators. The 

RTX SEF shall on an on-going basis monitor positions established on or through the RTX 

SEF for unusual activity, including but not limited to, unusual volumes, patterns or 

concentrations of transactions.

1303. Risk Controls for Trading

(a) The RTX SEF, in its discretion, may take any action to reduce the potential for 

market disruption, including, but not limited restricting or halting trading or 

other actions determined by the RTX SEF if in the best interest of the swap 

market. 

(b) The RTX SEF may impose a similar risk control action taken by another market 

trading a Swap that is fungible with, or a substitute for, a Swap traded on the 

RTX SEF.

1304. Swaps Listed for Trading

The terms and conditions of the Swaps Listed for trading on the RTX SEF shall be as 

provided in Attachment A to these Rules. The RTX SEF shall list for trading only Swaps 

that are not readily susceptible to manipulation, having certified such swaps listed for 

trading (or in the discretion of the RTX SEF, having submitted such Swaps for voluntary 

approval under 17 C.F.R. 40.3) and having submitted supporting information as set forth 

in 17 C.F.R. Part 38, Appendix C.