CTA/Hedge Fund Incentive Program (CTA/HF)
Questions & Answers
February 2024
1. What is the CTA/Hedge Fund Incentive Program (“CTA/HF Program”)?
CME Group’s CTA/HF Program allows Commodity Trading Advisors (“CTAs”) to register their managed
accounts including individual, non-hedge funds, and hedge funds to participate in the program. TheCTA/HF Program offers discounted fees for all CME foreign exchange (“FX”) futures and options contracts
traded on Globex and submitted via CME ClearPort.
2. How does a CTA qualify for the program?
To qualify for the program CTAs, their managed accounts of individuals, non-hedge funds, and hedge
funds must meet the following criteria:•Be a registered CTA or qualify for an exemption pursuant to CFTC Regulations 4.14(a)(4),4.14(a)(5), 4.14(a)(8)(i)(D) or 4.14(a)(10), or 3.10(c)(3)(i),•Complete a CTA/HF Program application form and provide all required supporting documentationfor each managed individual, non-hedge fund, and/or hedge fund to be registered in the Program,including:oA list of all managed accounts owned by individuals, non-hedge funds, and funds, and theCME clearing member account(s) for each fund,oConfirmation of open and funded clearing account(s) for each account,oA copy of the document pursuant to which the Fund grants the CTA discretionary trading
authority or control over its clearing account(s).
3. When does this program expire?
The program has been extended through January 31, 2025; at that time CME will evaluate and determine
whether to continue the program.
4. What trading fees are charged by the Exchange for trading by a CTA/HF Program participant?
Please refer to the most updated CME Fee Schedule at: http://www.cmegroup.com/company/clearingfees.
Registered participants in the CTA/HF Program are eligible to receive progressive fee volume discounts
from the base non-member rate of $1.60 per contract. The applicable discount will be determined basedon the participant’s electronic ADV in sides for the preceding measuring period (measuring period will befrom 15th of a quarterly month to the 15th of the next quarterly month – the “Quarterly Calculationperiod”). The fixed fee discount will apply for eligible volume in the following quarter according to thistable:

CTA/HF Q&A – Last Updated February 2024

ADV forpriormeasuring
period:Futures &Options:
Globex, EFP
and EFRTransactions

Options:
Blocks

0 – 2425 – 250
251 – 1,000
1,001 – 2,000
2,001 – 5,000

$1.60
$1.20
$1.00
$0.90
$0.80

$1.60
$1.20
$1.00
$0.90
$0.80

5,001-7,500

$0.70

$0.80

7,501+

$0.60

$0.80

FX Link Fee Discounts: All participants that trade standard size futures via FX Link will receive a flat rate of$0.60 per contract side traded.
Fee Discounts: Once accepted into the Program, all participants will be eligible to receive progressive fee
volume discounts for trades executed in standard-size FX futures and options on Globex and via CME
ClearPort, excluding transactions via FX Link. New participants will receive the lower of $1.20 or thediscounted rate based on their prior calendar quarter’s average daily volume (“ADV”) in all FX futures andoptions executed on Globex or submitted via CME ClearPort, inclusive of FX Link and standard, micro, andmini-sized contracts (“Qualifying Volume”). After new participants have been in the Program for one (1)full calendar quarter, the applicable rates charged will be based on each respective participant’s Qualifying
Volume. Fee discounts will be based on the latest calendar quarterly Qualifying Volume, measured overthe preceding three (3) month period, and the fee discounts will apply to standard-size FX futures andoptions in the next calendar quarter as follows: The discount will apply for CME Globex transactions ofstandard size FX products, EFRP volume, and block volume (in FX options only) as noted in table above.
CME Globex transactions in all other products by these entities will be charged at non-member rates.
5. Will hedge fund participants in the CTA/HF Program receive the reduced rates for any products otherthan FX futures and options on futures?
No. The CTA/HF Program is for FX futures and options contracts that are traded on Globex and submitted
via CME ClearPort including EFRPs, and Block volume in FX options only as noted in above table. Nonmember rates will apply in other products.
6. Will hedge fund participants in the CTA/HF Program receive the discounted rates for all their FX
trades traded electronically?
Hedge fund participants are eligible for the reduced rates on all trades for accounts registered with andapproved by CME.
CTA/HF Q&A – Last Updated February 2024

7. When will the discount fee become effective?
Eligible hedge fund accounts will be entitled to preferential CTA/HF Program rates when the application
and all proper documentation is received and accepted by CME, and the application for participation has
been approved by CME Group’s Department of Financial and Regulatory Surveillance (“FRS”). Preferential
trading fees will not be applied earlier than CME’s approval date.
Each hedge fund seeking to participate in the program must be reviewed and approved by FRS. Onceapproved, the CTA/HF Program participant CTA is responsible for working with their hedge funds’ clearing
member firms to ensure that their hedge funds’ accounts are properly registered in the program under
the CTA participant’s name in CME’s Exchange Fee System (“EFS”). Participants will also be responsiblefor making any changes/additions to their accounts with each of their clearing member firms.
8. Are there any geographic restrictions on participation?
Yes, CME Group may be unable to accept participants located in certain countries. Please contact CME
Group’s Membership Concierge Team for further information regarding any location restrictions.
9. Can a CTA of an existing member apply for the CTA/HF Program?
Yes. CTAs for existing members/member firms are eligible to participate in the CTA/HF Program, however,please note that existing CME hedge fund members are not eligible for participation in the CTA/HFProgram.
10. Once an applicant is approved, what is the operational process for registering all appropriate
accounts to receive the fee incentive?
When an application is approved, CME will register the firm’s name under the CTA/HF Program in EFS.
Applicants are then notified by CME Group’s Membership Concierge Team, via email, of their acceptanceinto the program, of the effective date, and of their starting All-In Fee. Applicants must then work directlywith their clearing firm(s) to register qualified hedge fund accounts in the EFS system. Applicants will be
responsible for managing, with their clearing firm(s), any qualified hedge fund account addition ordeletion from the program while the program is in effect.
Furthermore, applicants will be notified by CME of any changes in their All-In Fee prior to the start of a
new quarter and should communicate with their clearing firm(s) accordingly.
CME Group shall monitor trading activity and participants’ performance and shall retain the right torevoke program participant status if it concludes from review that a program participant no longer meetsthe eligibility requirements of the program.
For more information, please contact CME Group’s Membership Concierge Team:
Concierge Team:

ConciergeTeam@cmegroup.com or +1 312 435 3555

The application form is also available on our website here.
CTA/HF Q&A – Last Updated February 2024

The information contained in this FAQ is provided for informational, discussion and educational purposes
only and is not an offer or solicitation of any nature whatsoever, of products or interest in such products.
No representation or warranties are made under this FAQ and nothing herein shall be construed to amountto an opinion or be binding on any of the persons referred to herein.
Futures and options trading is not suitable for all investors and involves the risk of loss. This communication
does not constitute and shall under no circumstances be deemed to constitute investment advice. This
communication is not intended to constitute a public offering of securities within the meaning of any
applicable legislation.

CTA/HF Q&A – Last Updated February 2024