Effective Tuesday, April 21, 2015, NFX will implement  amendments to Chapter III, Section 24 which consolidate the rules prohibiting disruptive trading practices into new subparagraph (g) (4) and will add language to provide additional clarification as to the types of practices that are prohibited. 

Disruptive trading practices have been prohibited under other sections of Chapter III Section 24 (g)(1), Chapter III Section 24 (g)(3)(i), and Chapter III Section 21.

Chapter III, Section 24 is amended to add a new section (g) as follows:

(g)(4) Futures Participants and Authorized Traders shall not:

(4) Knowingly enter any bid or offer for the purposes of making a market price which does not reflect the true state of the market, or knowingly entering, or causing to be entered bid or offers other than in good faith for the purposes of executing a bona fide transaction. Additionally, all non-actionable orders must be entered in good faith for legitimate purposes.

(i) No Futures Participant shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution;

(ii) No Futures Participant shall enter or cause to be entered an actionable or non-actionable message or messages with intent to mislead other market participants;

(iii) No Futures Participant shall enter or cause to be entered an actionable or non-actionable message or messages with intent to overload, delay, or disrupt the systems of the Exchange or other market participants; and

(iv) No Futures Participant shall enter or cause to be entered an actionable or non-actionable message with intent to disrupt or with reckless disregard for the adverse impact on, the orderly conduct of trading or the fair execution of transactions.