BGC Derivative Markets, L.P

Rule Implementation Submission 2023-2

July 25, 2023

1. The texts of the amended Rules are appended as Attachment A. Any additions are 

underlined and any deletions are struck through.

2. The date of intended implementation for these rules is ten business days following the 

filing of this submission.

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

Exchange Act (“Act”), and the Commission’s regulations thereunder; and (2) concurrent 

with this submission, BGCDMLP posted on its website: (i) a notice of pending 

certification of the rule amendments with the Commission; and (ii) a copy of this 

submission.

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

amended rules appears below.

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

6. Confidential treatment is not requested.

CONCISE EXPLANATION AND ANALYSIS OF THE OPERATION, PURPOSE, AND 

EFFECT OF THE RULE AMENDMENT AND ITS COMPLIANCE WITH APPLICABLE 

PROVISIONS OF THE ACT, INCLUDING CORE PRINCIPLES AND THE 

COMMISSION’S REGULATIONS THEREUNDER

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

of the operation, purpose, and effect of the amended rules. The attached amendments are 

cumulative and in response to suggestions and guidance from the staff during the course of the 

staff review of the BGCDMLP application for registration as a Swap Execution Facility. These 

amendments are either:

(1) technical corrections to align the rules more closely with the language of Commission 

Rules; and/or

(2) amendments made in response to guidance of Commission staff.

The following chart identifies the changed rules and notes the effect of the change and an 

explanation of the operation, purpose, and effect of the change.
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CONCISE EXPLANATION AND ANALYSIS OF THE OPERATION, PURPOSE, AND 

EFFECT OF THE RULE AMENDMENT AND ITS COMPLIANCE WITH APPLICABLE 

PROVISIONS OF THE ACT

Rule Rule Title Effect

101 Definitions: Prime Broker and Prime 

Broker Trade

Added the definition to clarify the role of a

Prime Broker and what is considered a 

Prime Broker trade. 

518(a) Participant Cancellation Requests 

that use a Prime Broker 

Added Rule that outlines the process for 

Participants to cancel a trade when using 

a Prime Broker.

518(b) Prime Broker Cancellation Requests Added Rule that outlines the process for a 

Prime Broker to request to cancel a trade

and their responsibility for notification to 

the Participant and facility. 
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CERTIFICATIONS PURSUANT TO SECTION 5c OF THE COMMODITY EXCHANGE 

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

17 C.F.R. §40.6 

I hereby certify that:

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

Commodity Futures Trading Commission’s regulations thereunder; and

(2) concurrent with this submission, BGC Derivative Markets, L.P. posted on its website:

(a) a notice of pending certification of the above Rules with the Commission; and (b)

a copy of this submission

By: Michael C. Sulfaro

Title: Chief Compliance Officer 

Date: July 25, 2023 
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 RULES

PART 1. MEANING OF TERMS.

101. Definitions.

“Pre-execution Communication” means on 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 Facility.

‘Prime Broker Trade’ shall mean any trade where at least one party to the trade is a Prime 

Broker. 

‘Prime Broker’ shall mean an Entity that extends credit to Participant(s) of the SEF to facilitate 

transactions occurring on or being introduced to the SEF. 

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

1.3(y) of the Commission Regulations. 

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

means information that would separately disclose business transactions, market 

positions, or the trade secrets of a Participant or Authorized Customer or provide 

non-public information about a natural person.” 

517. Post-Trade Anonymity.

(a) Pursuant to the Commission issuing final rule § 37.9(d), it is prohibited to

disclose, directly or indirectly, including through a third-party service provider, the
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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.

(c) The compliance date for swaps subject to the trade execution requirement under section

2(h)(8) of the CEA is November 1, 2020. The compliance date for swaps not subject

to the trade execution requirement under section 2(h)(8) of the CEA is July, 5, 2021.

518. Prime Broker Trade Cancellations

(a) Participant Cancelation Requests – With respect to Permitted Transactions, a

Participant shall have the right to request the cancelation of any executed Prime Broker

Trade. The cancellation request from the Participant must include the reason for the

cancellation and the contact information of the Participant and relevant Prime Broker.

Upon confirmation and agreement of the cancellation by both parties to the trade, SEF

will cancel the trade.

(b) Prime Broker Cancellation Requests – With respect to Permitted Transactions, a Prime

Broker shall have the right to request the cancellation of any Prime Broker Trade (i) that

is executed in excess of the limit established by the Prime Broker with respect to such

Prime Broker Trade, (ii) because the Prime Broker Trade was executed by a Person that

was not authorized by the Prime Broker, or (iii) because the Prime Broker Trade was

executed for an unauthorized product. Both sides of the transaction must agree to the

cancellation of the transaction. The Prime Broker shall communicate the cancellation

request directly to SEF within 48 hours after the execution of the Prime Broker Trade.

The cancellation request and the reason for the cancellation request should be directed to

SEF-trade-entry@bgcpartners.com.. The cancellation request must contain the UTI of the

relevant trade, and the contact information of the requestor. If the SEF determines that

the request for cancellation meets the requirements of Rule “518"; the SEF will cancel the

trade.
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