SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-303

Organization: Commodity Exchange, Inc. ("COMEX")

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): July 14, 2023 Filing Description: Modifications to the HotRolled Coil Steel 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 14, 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 Hot-Rolled Coil Steel Market Maker Program

COMEX Submission No. 23-303

Dear Mr. Kirkpatrick:

Commodity Exchange, Inc. (“COMEX” or “Exchange”) hereby notifies the Commodity Futures Trading Commission 

(“CFTC” or “Commission”) of plans to modify the Hot-Rolled Coil Steel 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 (“Core Principles”) as set forth in the 

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

manipulative trading and market abuse. Additionally, COMEX 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 COMEX rules includes prohibitions against fraudulent, non-competitive, 

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

participant will expressly agree to comply with and be subject to, applicable regulations and COMEX 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 COMEX Submission No. 23-303 in any related 

correspondence.

Sincerely,

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachment: Exhibit 1
EXHIBIT 1

Hot-Rolled Coil Steel Market Maker Program

Program Purpose

The purpose of the Program is to build liquidity in the products below that are traded on the CME Globex 

Platform (“Globex”). The resulting increase in central limit order book liquidity for this product on Globex 

benefits all participant segments in the market.

Product Scope 

U.S. Midwest Domestic Hot-Rolled Coil Steel (CRU) Index Futures (“HRC”) and North European Hot-Rolled 

Coil Steel (Argus) Futures (“EHR”) that are traded on Globex (“Products”).

Eligible Participants

There is no limit to the number of participants in the Program. Participants may be members or nonmembers.

Program Term

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

Hours 

Designated hours during RTH 8:00AM – 11:00AM CT and 2:30AM – 4:30AM CT.

Obligations

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

Products, at predetermined average bid/ask spreads and minimum quote sizes.

Incentives

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

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.