SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-539 (1 of 2)

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

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): December 19, 2023 Filing Description: Modifications to the 

CME/CBOT Interest Rate Options Give Up Incentive 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: 
20 S Wacker Dr Chicago, IL 60606 T 312 466 7478 tim.elliott@cmegroup.com cmegroup.com

Timothy Elliott

Managing Director and Chief Regulatory Counsel

Legal Department

December 19, 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 CME/CBOT Interest Rate Options Give Up Incentive Program

CME Submission No. 23-539 (1 of 2)

Dear Mr. Kirkpatrick:

Chicago Mercantile Exchange Inc. (“CME”) and The Board of Trade of the City of Chicago, Inc. (“CBOT”) 

(collectively, the “Exchanges”) hereby notify the Commodity Futures Trading Commission (“CFTC” or “Commission”) 

of plans to modify the Interest Rate Options Give Up Incentive Program (“Program”). The modifications to the the 

Program will become effective on February 1, 2024.

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

overstruck. 

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

Commodity Exchange Act (“CEA”). During the review, Exchange 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 Exchanges’ ability to perform its trade practice and market surveillance obligations

under the CEA and the Exchanges’ have implemented systems to track Program participants’ volume to ensure 

proper distribution of earned incentives. The tiered incentives in the Program do not impact the Exchanges’ order 

execution. Participants in the program will be selected by Exchanges’ staff using criteria as further stated in Exhibit 1. 

Chapter 4 of the Exchanges rules includes prohibitions against fraudulent, non-competitive, unfair or abusive 

practices. The Program is subject to these rules.

The Exchanges certify that the Program complies with the CEA and the regulations thereunder. There were no 

substantive opposing views to this Program.

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 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. 23-539 in any related correspondence.

Sincerely,

/s/ Timothy Elliott

Managing Director and Chief Regulatory Counsel 

Attachment: Exhibit 1
EXHIBIT 1

CME/CBOT INTEREST RATE OPTIONS GIVE UP 

INCENTIVE PROGRAM

Program Purpose

The purpose of this Program is to encourage executing brokers to increase their volume in the products 

listed below, enhancing market liquidity. A more liquid contract benefits all participants in the market.

Product Scope

All CME and CBOT Interest Rate (“IR”) options products (“Products”).

Eligible Participants

There is no limit to the number of executing brokers who may participate in the Program. Participants may 

be CME or CBOT members or non-members. In order to qualify for the Program, participants must have

met the following criteria: (i) executed at least 750,000 interest rate option give ups in two (2) of three (3) 

consecutive calendar months over the previous twenty-four (24) calendar months, and (ii) at least 55% of 

the total interest rate (futures and options) give up volume must be from interest rate options. 

Program Term 

Start date is January 6, 2012. End date is January 31, 2024 January 31, 2025.

Hours

N/A

Incentives

Once accepted into the Program, participants will be eligible to receive tiered volume incentives whereby 

participants may be charged reduced give up surcharges for the Products. The tiered volume levels are 

predetermined by the Exchanges and are based on a participant’s monthly give up volume in the 

Products. 

Monitoring and Termination of Status

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

revoke participant status if they conclude from review that a participant no longer meets the eligibility 

requirements of the Program.