SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 18-165 (2 of 4)

Organization: The Board of Trade of the City of Chicago, Inc. ("CBOT")

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): 04/16/18 

Filing Description: Deletion of CME Rule 586. (“GFX Corporation”) and Amendments 

to CME/CBOT/NYMEX/COMEX Rule 110. (“Claims Against Membership, Application 

of Proceeds”).

SPECIFY FILING TYPE 

Please note only ONE choice allowed per Submission.

Organization Rules and Rule Amendments

Certification § 40.6(a)

Approval § 40.5(a)

Notification § 40.6(d)

Advance Notice of SIDCO Rule Change § 40.10(a)

SIDCO Emergency Rule Change § 40.10(h)

Rule Numbers: 110. and 586.

New Product Please note only ONE product per Submission.

Certification § 40.2(a) 

Certification Security Futures § 41.23(a)

Certification Swap Class § 40.2(d)

Approval § 40.3(a)

Approval Security Futures § 41.23(b)

Novel Derivative Product Notification § 40.12(a)

Swap Submission § 39.5

Official Product Name: 

Product Terms and Conditions (product related Rules and Rule Amendments)

Certification § 40.6(a) 

Certification Made Available to Trade Determination § 40.6(a)

Certification Security Futures § 41.24(a)

Delisting (No Open Interest) § 40.6(a) 

Approval § 40.5(a)

Approval Made Available to Trade Determination § 40.5(a)

Approval Security Futures § 41.24(c)

Approval Amendments to enumerated agricultural products § 40.4(a), § 40.5(a)

“Non-Material Agricultural Rule Change” § 40.4(b)(5)

Notification § 40.6(d)

 Official Name(s) of Product(s) Affected: Rule Numbers: 
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 299 2299 christopher.bowen@cmegroup.com cmegroup.com

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Christopher Bowen

Managing Director and Chief Regulatory Counsel

Legal Department

April 16, 2018

VIA ELECTRONIC PORTAL

Mr. Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, DC 20581

Re: CFTC Regulation 40.6(a) Certification. Deletion of CME Rule 586. (“GFX 

Corporation”) and Amendments to CME/CBOT/NYMEX/COMEX Rule 110. (“Claims 

Against Membership, Application of Proceeds”).

CBOT Submission No. 18-165 (2 of 4)

Dear Mr. Kirkpatrick:

Pursuant to Commodity Futures Trading Commission (“CFTC” or “Commission”) Regulation 40.6(a), 

Chicago Mercantile Exchange Inc. (“CME”) hereby notifies the Commission that it is self-certifying the 

deletion of Rule 586. (“GFX Corporation”) and CME, The Board of Trade of the City of Chicago, Inc. 

(“CBOT”), New York Mercantile Exchange, Inc. (“NYMEX”) and Commodity Exchange, Inc. (“COMEX”) 

(collectively, the “Exchanges”) hereby notify the Commission that they are self-certifying amendments to 

Rule 110. (“Claims Against Membership, Application of Proceeds”), (the “Rule Amendments”), effective on 

Tuesday, May 1, 2018. 

GFX Corporation was decommissioned in March 2018. CME is therefore eliminating Rule 586. and the 

Exchanges are amending Rule 110. to remove a reference to GFX Corporation.

The Rule Amendments are set forth in Exhibit A with additions underscored and deletions overstruck. 

The Exchanges reviewed the designated contract market core principles (“Core Principles”) as set forth in 

the Commodity Exchange Act (“CEA” or “Act”) and identified that the Rule Amendments may have some 

bearing on the following Core Principles:

• Availability of General Information: The Exchange will the Rule Amendments on the CME Group 

website effective on Tuesday, May 1, 2018.

There were no substantive opposing views to this proposal.

Pursuant to Section 5c(c) of the Act and CFTC Regulation 40.6(a), the Exchanges certify that the Rule 

Amendments comply with the Act and regulations thereunder. 

The Exchanges certify that this submission has been concurrently posted on the CME Group website at 

http://www.cmegroup.com/market-regulation/rule-filings.html.
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 299 2299 christopher.bowen@cmegroup.com cmegroup.com

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If you require any additional information regarding this submission, please contact the undersigned at 

212.299.2200 or via email at CMEGSubmissionInquiry@cmegroup.com.

Sincerely, 

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachment: Exhibit A: CME/CBOT/NYMEX/COMEX Rule Amendments (blackline format)
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EXHIBIT A

(additions are underscored, deletions are overstruck)

Chapter 1

Membership

CME/CBOT/NYMEX/COMEX

110. CLAIMS AGAINST MEMBERSHIP, APPLICATION OF PROCEEDS 

For the purposes of this rule "sale" shall include a sale made pursuant to Rule 104 or a transfer made in accordance 

with the provisions of Rule 106; "seller" shall include owners of a membership and firms that have membership 

privileges pursuant to Rules 106. F., G., H., I., J., N., R. or S.; and “claim” shall be limited to claims involving incidents 

that occurred prior to the sale of the membership and which arose in connection with Transactions on the Exchange or 

membership in the Exchange. For purposes of this Rule, “Transactions on the Exchange” shall include, but are not 

limited to, transactions receiving preferential clearing fees as a result of the membership, regardless of the party entitled

to receipt of such preferential fees. Claims resulting from conduct subsequent to the sale of a membership may not be 

asserted against that membership or its proceeds. All claims against the membership or proceeds resulting from the 

sale of the membership shall be submitted in writing to the Department within 20 days of the posting of notice of the 

sale of said membership. At the conclusion of the 20-day claim filing period, authorized Exchange staff shall conduct 

an investigation of all claims properly filed against the membership sale or its proceeds. This investigation shall be 

completed within 20 days unless the investigation cannot be resolved within that period. 

The total proceeds of the sale, or in the case of a transfer, the value at the mid-point of the bid offer spread as of the 

date of the transfer, of the membership shall be applied to the following purposes and in the following order of priority: 

a. Payment of all 1) debts owed to the Clearing House, if the membership transferred was assigned to the Clearing 

House pursuant to Rule 902; and 2) dues, fines, contributions, charges and other indebtedness owed to the 

Exchange or, the CME Gratuity Fund [the reference to the CME Gratuity Fund appears solely in CME Rule 110]

or GFX Corporation; 

b. Payment of any indebtedness to the clearing member who last qualified the selling member prior to the sale arising 

out of: (i) a pledge of such membership as collateral security on such indebtedness, or (ii) a deficit which authorized 

Exchange staff determines to have arisen directly out of Transactions on the Exchange or transactions with GFX 

Corporation; 

c. Payment of amounts due to other clearing members on claims filed which authorized Exchange staff determines 

to have arisen directly out of Transactions on the Exchange; 

d. Payment of amounts due to members and member firms on claims filed which authorized Exchange staff 

determines to have arisen directly out of Transactions on the Exchange; and 

e. Payment of amounts due to public customers of the seller or public customers of any party receiving preferential 

clearing fees as a result of the membership based on claims filed by such customers or based on reports of the 

Market Regulation Department, which claims are determined by authorized Exchange staff to be based upon 

misappropriation of customer funds, improperly executed transactions, unpaid credit balances, or other similar 

matters, directly related to Transactions on the Exchange.

[The remainder of the rule is unchanged.

Chapter 5

Trading Qualifications and Practices

CME

584.-5857. [RESERVED]

586. GFX CORPORATION 

The Exchange has established the GFX Corporation ("GFX") to make markets in futures, options and over-the-counter 

products (collectively, the “GFX Contracts”) cleared by the Clearing House and/or for which a CME Group Inc. 

subsidiary is a CFTC derivatives clearing organization and to engage in hedging activities via varying offsetting 
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transactions. Position and counterparty limits, as well as parameters on GFX hedging, will be established by the 

Clearing House. 

Employees of GFX may use Globex terminals or other electronic means to enter orders in GFX Contracts. Where 

applicable, such employees must be identified to the Exchange as Globex terminal operators in accordance with Rule 

576 and shall be subject to the rules of the Exchange that relate to electronic trading. All transactions effected by GFX 

in GFX Contracts shall be cleared through a clearing member, and GFX shall be a customer of such clearing member.

587. [RESERVED]