Bbg SEF submitted self-certification to CFTC for Bbg SEF LLC rulebook amendments.
Redline version of amended rulebook found in Appendix A of proposed rulemaking.
Proposed Amendments
To Chapter 2, BSEF Governance, amended to incorporate applicable SEC Regulations and acceptable practices from Appendix B to Part 37 of CFTC Regulations (17 CFR 37).
Ch. 3, Participants, amended eligibility criteria in Bbg SEF Rule 301 to prohibit branch office from onboarding as participant, and onboarding participant on restricted list.
Amended Bbg SEF Rule 303 to provide that BSEF may terminate a participant’s access to its SEF if such participant has not executed trades for a period of two years/longer.
Under Ch. 4, Obligations of Participants, Account Managers, amended Bbg SEF Rule 401 to prohibit use of the SEF platform for purposes of testing or workflow validation.
Amended Bbg SEF Rule 402 to require participants to immediately notify Compliance Department of changes to information on status as US Person or non-US Person.
Must also immediately notify BSEF’s Compliance Department on changes relating to guarantees by any person of any swaps such participant executes on BSEF’s SEF.
Removed Bbg SEF Rule 408(a), as it is existing obligation that solely applies to BSEF’s participants under CFTC Regulations, removed Rule 408(b) as it was superfluous.
Additional Amendments
In Ch. 5, Trading Practices, amended Bbg SEF Rule 505 to clarify scope of application.
Amended Rule 508.B to provide examples of prohibited disruptive trading practices.
Also, amended Rule 521 to incorporate time delay requirements of CFTC Reg 37.9(b).
Amended Bbg SEF Rule 523 to clarify type of data included on trade confirmations.
Under Chapter 6, Disciplinary Rules, incorporated emergency disciplinary actions.
Added Rule 623 to require participant to provide written notice of any final disciplinary action to customer when BSEF found participant has committed a rule violation.
That involved a transaction for customer that resulted in financial harm to customer.
