SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-378

Organization: Chicago Mercantile Exchange Inc. ("CME")

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): September 6, 2023 Filing Description: Modifications to the 

CNH Cash-Settled Futures Market Maker 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

September 6, 2023

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 CNH Cash-Settled Futures Market Maker Program

CME Submission No. 23-378

Dear Mr. Kirkpatrick:

Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) hereby notifies the Commodity Futures Trading 

Commission (“CFTC” or “Commission”) of plans to modify the CNH Cash-Settled Futures Market Maker Program

(“Program”). The modifications to the Program will become effective on October 1, 2023.

Exhibit 1 sets forth the terms of this Program. Modifications appear below, with additions underlined and deletions 

overstruck. 

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

Commodity Exchange Act (“CEA” or “Act”). During the review, CME staff identified the following Core Principles as 

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

Compliance with Rules, Availability of General Information, and Recordkeeping. 

The Program does not impact the Exchange’s ability to perform its trade practice and market surveillance obligations 

under the CEA and the Exchange’s market regulation staff will monitor trading in the Program’s products to prevent 

manipulative trading and market abuse. Additionally, the Exchange has implemented systems to track Program 

participants’ obligations to ensure proper distribution of earned incentives. The incentives in the Program do not 

impact the Exchange’s order execution. Participants in the Program will be selected by Exchange staff using criteria 

as further stated in Exhibit 1. Chapter 4 of the CME rules includes prohibitions against fraudulent, non-competitive, 

unfair or abusive practices. All participants must execute a contractual agreement with the Exchange in which each 

participant will expressly agree to comply with and be subject to applicable regulations and CME rules. The Program 

is subject to the Exchange’s record retention policies which comply with the CEA. 

CME certifies that the Program complies with the CEA and the regulations thereunder. There were no substantive 

opposing views to this Program.

The Exchange certifies that this submission has been concurrently posted on the Exchange’s 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 CME Submission No. 23-378 in any related correspondence.

Sincerely,

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachment: Exhibit 1
EXHIBIT 1

CNH Cash-Settled Futures Market Maker Program

Program Purpose 

The purpose of this Program is to incent market makers to enhance liquidity in the product listed below. 

The resulting increase in central limit order book liquidity on the CME Globex® Platform (“Globex”)

benefits all participant segments in the market.

Product Scope

Cash-Settled Standard-Size USD/Offshore RMB Futures (“CNH”) that are traded on Globex or cleared 

through CME ClearPort (the “Product”). 

Eligible Participants

CME may designate up to sixteen (16) eight (8) participants in the Program with a maximum of eight (8)

participants in each Program module. Participants may be CME members or non-members. Participants 

may not be enrolled in the CNH Cash-Settled Futures Volume Incentive Program. Potential participants 

are required to submit an application/bid sheet to the Exchange as part of a competitive application 

process which is used to determine eligibility. In determining whether a prospective participant is selected 

to participate in the Program, Exchange staff may take a variety of factors into consideration including the 

strength of the quoting obligations the prospective participant is willing to commit to provide, the ability of 

the prospective participant to maintain such obligations, and historical volume trading the Products and 

similar contracts. The Exchange may, from time to time, add or subtract from the aforementioned 

requirements as it deems necessary.

Program Term 

Start date is August 1, 2018. End date is January 31, 2024 April 30, 2024.

Hours

Designated hours from 9:00AM to 1:00AM Singapore Time (“Hours”).

Obligations

In order to be eligible to receive the incentives, participants must meet certain volume thresholds and/or

quote two-sided markets in the Product, at predetermined bid/ask spreads and minimum quote sizes

during a specified percentage of time-in-market.

Incentives 

Upon meeting all obligations, as determined by the Exchange, participants may be eligible to will receive 

predetermined incentives.
Monitoring and Termination of Status

The Exchange shall monitor trading activity and participants’ performance and shall retain the right to 

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

requirements or fails to meet the obligations of the Program.