SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 15-473 (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): 11/04/2015 Filing Description: Amendments to 

CME/CBOT/NYMEX/COMEX Rule 853 (“Transfers of Trades and Customer 

Accounts”)

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: 853

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: 
1 North End Avenue New York, NY 10282 T 212 299 2200 F 212 299 2299 christopher.bowen@cmegroup.com cmegroup.com

1

Christopher Bowen 

Managing Director and Chief Regulatory Counsel

Legal Department

November 4, 2015

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. Notification Regarding Amendments to 

CME/CBOT/NYMEX/COMEX Rule 853 (“Transfers of Trades and Customer 

Accounts”).

NYMEX Submission No. 15-473 (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”) 

that they are self-certifying amendments to CME/CBOT/NYMEX/COMEX Rule 853 (“Transfers of Trades 

and Customer Accounts”). These amendments shall be effective on Friday, November 20, 2015. 

Rule 853.A.5.currently permits transfers of futures at the original trade price or the most recent settlement 

price, and the transfer of options at the original trade price or a trade price of zero. With the October 12, 

2015, launch of the NYMEX Brent Crude Oil Futures-Style Margin Option contract (see NYMEX 

Submission No. 15-373R dated September 25, 2015), the Exchanges reviewed the the prices at which 

options may be transferred under Rule 853.A.5. and determined that futures-style options should be 

permitted to transfer at the original trade price or the most recent settlement price. Additionally, the 

Exchanges will begin to permit premium-style options to transfer at the most recent settlement price, in 

addition to the currently permissible original trade price or a trade price of zero. In an effort to harmonize 

Chapter 8 across all of the rulebooks, the Exchanges are amending Rule 853 for all four (4) designated 

contract markets.

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 amendments to Rule 853 may have 

some bearing on the following Core Principles:

Compliance with Rules: The amendments codify the prices at which certain types of options on 

futures products may be transferred. As such, the revision remains in compliance with this Core 

Principle.

Availability of General Information: As required by this Core Principle, the Exchanges are publicly 

issuing a Special Executive Report to ensure that market participants have updated guidance and 

information attendant to the amendments. The Special Executive Report will also be available on 

the CME Group website.

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

amendments to Rule 853 comply with the Act and regulations thereunder. There were no substantive 

opposing views to this proposal.
1 North End Avenue New York, NY 10282 T 212 299 2200 F 212 299 2299 christopher.bowen@cmegroup.com cmegroup.com

2

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, please e-mail CMEGSubmissionInquiry@cmegroup.com or 

contact the undersigned at 212-299-2200.

Sincerely, 

/s/Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachment: Exhibit A – CME/CBOT/NYMEX/COMEX Rule 853 (blackline format)
3

Exhibit A

CME/CBOT/NYMEX/COMEX RULEBOOK

Chapter 8

Clearing House and Performance Bonds 

(deletions are overstruck; additions are underscored)

853. TRANSFERS OF TRADES AND CUSTOMER ACCOUNTS

853.A. Transfers of Trades

[Subsections A.1. – A.4 are unchanged.]

5. Provided that the transfer is permitted pursuant to Sections 1., 2., 3. or 4. above, transactions in all physically 

delivered futures contracts except for FX futures contracts must be recorded and carried on the books of the 

receiving firm at the original trade dates; all other transactions may be recorded and carried at either the original trade 

date or the transfer date. Futures and futures-style option transactions may be transferred using either the original 

trade price or the most recent settlement price; premium-style options transactions may be transferred using either 

the original trade price, the most recent settlement price or a trade price of zero. Trades that have been confirmed at 

an average price pursuant to the provisions of Rule 553 may alternatively be transferred at the average price.

[The remainder of the Rule is unchanged.]