Subject to regulatory review, effective for the Open Session on November 1, 2016, the Exchange will implement new Self-Match Prevention (“SMP”) functionality pursuant to regulatory filing SR-NFX-2016-96.

Currently a Futures Participant may elect to have Orders or Quotes not execute against Orders or Quotes on the opposite side of the market that were entered by a Futures Participant with the same Market Participant User Identification (“MPID”). Under this process, the incoming Order or Quote will skip the resting Order or Quote that would result in a self-match, and match with the next marketable Order or Quote from a Futures Participant with a different MPID. This process is known as “Skip Internal Functionality”. The Exchange is amending the SMP rule to eliminate Skip Internal Functionality as the default SMP setting. Futures Participants are reminded that SMP is optional functionality.

Under the new rule, a Futures Participant utilizing SMP can instead opt to either (1) cancel the incoming Order or Quote (“Cancel Newest”); or (2) cancel the resting Order or Quote (“Cancel Oldest”). If a Futures Participant, that has previously elected SMP, fails to notify the Exchange by Noon EPT, November 1, 2016, of which option it would prefer (Cancel Newest or Cancel Oldest), the Exchange will set Cancel Newest as the default SMP functionality.

An explanatory reference guide, Mass Quote Protection & Self-Match Prevention Reference Guide is posted on the Exchange website.

For additional information on the updated specifications or help with connecting to the NFX test environment please contact NFX Market Operations.