August 30, 2021

BY ELECTRONIC FILING

Mr. Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: BTNL 2021-005 - Self-Certification Pursuant to CFTC Regulation 40.6 –

Bitnomial Exchange, LLC Incentive Programs

Dear Mr. Kirkpatrick:

Bitnomial Exchange, LLC (“Bitnomial” or the “Exchange”) hereby submits for self-certification 

to the Commodity Futures Trading Commission (the “Commission” or “CFTC”), under 

Commission regulation 40.6(a), the following plans to implement the Initial Participant Provider 

Program and the Settlement Participant Incentive Programs (collectively, the “Programs”). The 

Programs will become effective on September 14, 2021.

The purpose of the Initial Participant Provider Program is to incentivize initial market liquidity. 

The purpose of the Settlement Participant Incentive is to incentivize settlement and roll period

liquidity. Both Programs are designed to promote participation by providing incentives to 

Participants, Clearing Members, and Customers willing to alleviate some of the costs associated 

with Bitnomial products and to build liquidity in Bitnomial’s markets.

1) Exhibit 1 sets forth the terms of the Programs. [REDACTED]

2) Exhibit 2 is Bitnomial’s FOIA request letter for confidentiality.

Core Principal Compliance

Bitnomial has concluded that its compliance with DCM Core Principles is not adversely affected 

by these changes. The Exchange will continue to comply with all DCM Core Principles. The 

Exchange has reviewed the Core Principles as set forth under Section 5 of the Commodity 

Exchange Act, as amended (the “Act”), and determined that the rule changes pertain to the 

following Core Principles:

Core Principal 2- Compliance with Rules:

The Programs have been established under Bitnomial Rule 314 which allows the Exchange 

to create programs that provides incentives to Participants willing to add liquidity to 

Bitnomial markets.

Core Principle 4 - Prevention of Market Disruption: 
The Programs conform with Core Principle 4 and CFTC Regulation 38.251, which 

expressly provide that a DCM must adopt and implement rules governing market 

participants subject to its jurisdiction to prevent, detect, and mitigate market disruptions or 

system anomalies associated with electronic trading.

Core Principal 7 - Availability of General Information:

Notification of the existence of the Programs have been posted to 

https://bitnomial.com/regulation in compliance with this Core Principal. Interested Market 

Participants may contact the Exchange for additional information concerning the 

Programs.

Core Principal 9 – Execution of Transactions:

The products included in the Programs are listed for trading in competitive, open, and 

efficient markets. 

Core Principal 12 - Protection of Markets and Market Participants:

The Programs will have no effect on the Exchange’s duties to protect the its markets and 

Market Participants from abusive, disruptive, fraudulent, noncompetitive and unfair 

conduct and trade practices.

Core Principal 18 – Recordkeeping:

The Exchange is committed to its duties to maintain records pertaining to the Programs in 

a manner that satisfies the relevant criteria set forth in §1.31 of the Commission’s 

Regulations.

Core Principle 21, Financial Resources:

The proposed Programs will not impact the Exchange’s ability to discharge its financial, 

operational, or managerial responsibilities as a DCM. 

Certification

Pursuant to Section 5c(c) of the Act and CFTC Regulation 40.6(a), Bitnomial certifies that the 

creation of the Programs comply with the Act and regulations thereunder. Bitnomial is not aware 

of any opposing views to the creation of the Programs.

Bitnomial certifies that a copy of this submission has been concurrently posted on the Exchange’s 

website at https://bitnomial.com/regulation.

If you have any questions or require further information, please contact the undersigned at 

james.walsh@bitnomial.com.

Sincerely, /s/ 

James A. Walsh

Chief Regulatory Officer

Bitnomial Exchange, LLC
Exhibit 1

[REDACTED]
Bitnomial, Inc. – Bitnomial Exchange, LLC

Exhibit 2

August 30, 2021

VIA ELECTRONIC SUBMISSION

Assistant Secretary of the Commission

for FOI, Privacy and Sunshine Acts Compliance

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, NW

Washington, D.C. 20581

Re: FOIA Confidential Treatment Request - Bitnomial Exchange, LLC Incentive 

Programs

Dear Sir/Madam:

On behalf of Bitnomial, Inc. (the “Company), we have submitted documents, dated August 

30, 2021 (the “Confidential Submission”), to the Commodity Futures Trading Commission

(“Commission”) as part of Bitnomial Exchange, LLC’s BUS and BUI Incentive Programs.

We hereby petition the Commission, pursuant to Commission Regulations 145.5 and

145.9, to accept and retain in confidence the aforementioned documents until further notice as

against any requestor who files with the Commission a request to inspect such documents pursuant

to the Freedom of Information Act.

Confidential treatment is requested, among other things, on the grounds that the

Confidential Submission contains data and information which would separately disclose business

transactions and trade secrets that may not be disclosed to third parties, as provided in Section 8(a)

of the Commodity Exchange Act and Commission Regulation 145.5(c)(1). Confidential treatment

also is requested on the grounds that the Confidential Submission is exempt from disclosure under

paragraph (b)(4) of the Freedom of Information Act (“FOIA”) and Commission Regulations

145.5(d) and 145.9(d)(1)(ii), because it contains commercial and financial information that is

confidential and would be of material assistance to competitors. Further, confidential treatment is

requested on the grounds that the Confidential Submission includes personal information of the

Company and other persons, the disclosure of which would constitute a clearly unwarranted

invasion of personal privacy.

We understand that if the Commission receives a FOIA request for the Confidential

Submission, we will be notified of such request in accordance with the Commission’s regulations

and be asked to submit, within ten business days, a detailed written justification for confidential

treatment of the Confidential Submission. In such event, we request that Commission staff

telephone or email the undersigned rather than rely solely upon U.S. mail for such notice.

If the Commission or its staff transmits any of the Confidential Submission to another
Bitnomial, Inc. – Bitnomial Exchange, LLC

federal agency, we request that you forward a copy of this letter to any such agency with the

Confidential Submission and further request that you advise any such agency of the request that

the material be accorded confidential treatment.

The requests set forth in the preceding paragraphs also apply to any memoranda, notes,

transcripts or other writings of any sort whatsoever that are made by, or at the request of, any

employee of the Commission (or any other federal agency) and which (1) incorporate, include or

relate to any aspect of the Confidential Submission; or (2) refer to any conference, meeting, or

telephone conversation regarding the Company relating to the Confidential Submission.

Please direct any questions regarding this request for confidential treatment, as well as any

notices pursuant to Commission Regulation 145.9(e), to the attention of the undersigned at 

james.walsh@bitnomial.com.

Very truly yours,

/s/

James Walsh

Chief Regulatory Officer

Bitnomial Exchange, LLC

318 West Adams St.

Chicago, IL 60606

(312) 883-5851