SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 20-192 (3 of 4)

Organization: New York Mercantile Exchange, Inc. (“NYMEX”)

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): April 16, 2020 Filing Description: Modifications to the Retail 

Broker Incentive Program

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: Not Applicable

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 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

Christopher Bowen 

Managing Director and Chief Regulatory Counsel

Legal Department

April 16, 2020

VIA ELECTRONIC PORTAL

Christopher J. Kirkpatrick 

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

RE: Modifications to the Retail Broker Incentive Program

NYMEX Submission No. 20-192 (3 of 4)

Dear Mr. Kirkpatrick:

Chicago Mercantile Exchange Inc. (“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 Commodity Futures Trading Commission (“CFTC” or “Commission”) of plans to modify the Retail 

Broker Incentive Program (“Program”). The modifications to the Program will become effective on May 1, 2020.

Exhibit 1 sets forth the terms of this Program. Modifications appear below, 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”). During the review, Exchange staff identified the following Core Principles as 

potentially being impacted: Monitoring of Trading, Execution of Transactions, Protection of Market Participants, 

Compliance with Rules, and Recordkeeping.

The Program does not impact the Exchanges’ ability to perform their trade practice and market surveillance obligations 

under the CEA. The Exchanges’ market regulation staff will monitor activity in the Program’s products to prevent 

manipulative trading and market abuse. Additionally, the Exchanges have implemented systems to track Program 

participants’ volume to ensure proper distribution of earned incentives. The Program does not affect the Exchanges’ 

order execution. Participants in the Program will be selected by Exchanges’ staff using criteria as set forth in Exhibit 1. 

Each of the Exchanges’ respective rules includes prohibitions against fraudulent, non-competitive, unfair or abusive 

practices. All participants must execute a contractual agreement with the Exchanges’ in which each participant 

expressly agrees to comply with, and be subject to, applicable regulations and applicable rules. The Program is subject 

to the Exchanges’ record retention policies which comply with the CEA. 

The Exchanges certify that the Program complies with the CEA and the regulations thereunder. There were no 

substantive opposing views to this Program.

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

http://www.cmegroup.com/market-regulation/rule-filings.html.

If you require any additional information regarding this submission, please e-mail 

CMEGSubmissionInquiry@cmegroup.com or contact Rachel Johnson at 312-466-4393 or via e-mail at 

Rachel.Johnson@cmegroup.com. Please reference our NYMEX Submission No. 20-192 in any related 

correspondence.

Sincerely,

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel 

Attachment: Exhibit 1
EXHIBIT 1

Retail Broker Incentive Program

Program Purpose 

The purpose of the Program is to incentivize participants to educate their clients about the benefits of trading 

the Exchanges’ products and centralized clearing, ultimately providing additional liquidity to the 

marketplace. A more liquid contract benefits all participants in the market. 

Product Scope

All CME, CBOT, NYMEX, and COMEX products that are traded on the Globex Platform (“Products”). 

Eligible Participants

There is no limit to the number of firms that can participate in the Program. Retail firms with 10,000 5,000

or more active direct retail trading users may apply for participation in the Program. Participants must 

register with the Exchange to qualify for the Program.

Program Term

Start date is June 17, 2013. End date is January 31, 2021.

Hours

N/A

Obligations

Participants must participate in at least two (2) marketing-planning sessions with the Exchange on an 

annual basis. To receive the Program incentives, participants must supply the Exchange with invoices 

showing expenses of the pre-approved marketing, sales, and commercial initiatives targeting Exchange 

products. 

Program Incentives*

Upon satisfying all Program obligations, as determined by the Exchange, each calendar month participants 

may be eligible to earn fee credits to be used towards marketing, sales, and commercial initiatives targeting 

Exchange products. For each month in a six (6) month period, if a participant’s retail month-over-month 

volume has increased at a higher rate compared to the Exchanges’ total Globex volume, excluding CME 

Interest Rate futures and options products and adjusted for Micro E-Mini contracts volume**, the participant 

will receive a fee credit of $0.50 for each incremental side grown versus the Exchanges’. Fee credits will 

accumulate over the six (6) month period and will be capped at $750,000 per participant, per six (6) month 

period. Participants will receive the accumulated fee credits at the end of each six (6) month period as 

follows:

(i) Period 1 – February 1 through July 31: Fee credits available on August 1

(ii) Period 2 – August 1 through January 31 of the following calendar year: Fee credits available 

on February 1

All fee credits expire twelve (12) months after the end of each six (6) month period accrual. 
*Participants may only join the Program on the first day of a month. Participants not joining the Program at 

the beginning of a six (6) month period will still be subject to the same accumulation and Period 1/Period 2 

dates.

**Micro E-Mini contracts will be counted as 1/10th of a side for volume calculation. 

Monitoring and Termination of Status

The Exchanges’ shall monitor activity and participants’ performance and shall retain the right to revoke 

Program participant status if it concludes from review that a Program participant no longer meets the 

eligibility requirements or fails to meet the obligations of the Program.