SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-312

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): July 12, 2023 Filing Description: Modifications to the Physical 

Henry Hub (NG) 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

July 12, 2023

VIA ELECTRONIC PORTAL

Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, DC 20581

RE: Modifications to the Physical Henry Hub (NG) Market Maker Program

NYMEX Submission No. 23-312

Dear Mr. Kirkpatrick: 

New York Mercantile Exchange, Inc. (“NYMEX” or “Exchange”) hereby notifies the Commodity Futures Trading 

Commission (“CFTC” or “Commission”) of plans to modify the Physical Henry Hub (NG) Market Maker Program 

(“Program”). The modifications to the Program will become effective on August 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 as set forth in the Commodity Exchange Act 

(“CEA”). During the review, NYMEX 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. The Exchange’s market regulation staff will monitor trading in the Program’s products to prevent 

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

participants’ volume to ensure proper distribution of earned incentives. The products included in this Program are 

listed for trading in the open and competitive market. Participants in the Program will be selected by Exchange staff 

using criteria as further stated in Exhibit 1. Chapter 4 of the NYMEX rules includes prohibitions against fraudulent, 

non-competitive, unfair or abusive practices. All participants must expressly agree to comply with and be subject to, 

applicable regulations and NYMEX rules. The Program is subject to the Exchange’s record retention policies which 

comply with the CEA. 

The Exchange 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 NYMEX Submission No. 23-312 in any related 

correspondence.

Sincerely,

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachment: Exhibit 1
EXHIBIT 1

Physical Henry Hub (NG) Market Maker Program

Program Purpose

The purpose of this Program is to build electronic liquidity in deferred Henry Hub spreads, strips, and strip 

spreads. The resulting increase in central limit order book liquidity benefits all participant segments in the 

market.

Product Scope 

Henry Hub Natural Gas Futures (“NG”) spreads and strips that are traded on the CME Globex Platform

(“Products”).

Eligible Participants

There is no limit to the number of participants that may participate in the Program. Participants may be 

NYMEX members or non-members. 

Program Term

Start date is July 1, 2017. End date is July 31, 2023 July 31, 2024.

Hours

8:00AM – 3:00PM CST.

Obligations

In order to be eligible to receive the incentives, participants must quote two-sided markets in the 

applicable Products, at predetermined average bid/ask spreads and minimum quote sizes during a 

certain percentage of time-in-market.

Incentives

Upon satisfying all obligations, as determined by the Exchange, each participant may be eligible for 

predetermined incentives.

Monitoring and Termination of Status

The Exchange shall monitor participants’ activity in the Products and retains the right to revoke participant 

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