SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-285

Organization: The Board of Trade of the City of Chicago, Inc. ("CBOT")

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

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

Treasury Yield 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

July 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 Micro Treasury Yield Futures Market Maker Program

CBOT Submission No. 23-285

Dear Mr. Kirkpatrick:

The Board of Trade of the City of Chicago, Inc. (“CBOT” or “Exchange”) hereby notifies the Commodity Futures 

Trading Commission (“CFTC” or “Commission”) of plans to modify the Micro Treasury Yield Futures 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. 

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

Exchange Act (“CEA”). During the review, CBOT 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 CBOT 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 CBOT rules. The 

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

CBOT 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 CBOT Submission No. 23-285 in any related 

correspondence.

Sincerely,

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel 

Attachment: Exhibit 1
EXHIBIT 1

Micro Treasury Yield Futures Market Maker Program

Program Purpose

The purpose of the Program is to support the development of the products listed below. A more liquid 

contract on the central limit order book benefits all participants in the market.

Product Scope

Micro 2-Year Yield Futures (“2YY”), Micro 5-Year Yield Futures (“5YY”), Micro 10-Year Yield Futures

(“10Y”), and Micro 30-Year Yield Futures (“30Y”) traded on Globex (“Products”).

Eligible Participants

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

CBOT members. 

Program Term

Start date is August 16, 2021. End date is July 31, 2023 January 31, 2024.

Hours

RTH (7:00AM – 4:00PM Chicago Time) and ETH (5:00PM – 7:00AM).

Obligations

Minimum Quoting Obligations: In order to be eligible to receive incentives, participants must quote twosided markets in the Products in accordance with the following table. Participants may choose to quote 

any or all Tiers set forth below.

Tier Tenor Product 

Code

Maximum Width

(bps)

Minimum

Size

Time-inMarket

1

2-Year – 10-Year

Inter-Commodity 

Spread

10Y -

2YY

0.5 10 65% of RTH

1

5-Year – 10-Year

Inter-Commodity 

Spread

10Y5YY 0.5 10 65% of RTH

1 10-Year 10Y 0.5

1.0 10 65% of RTH

1

30-Year – 10-Year

Inter-Commodity 

Spread

30Y10Y 0.5 10 65% of RTH

2

2-Year – 10-Year 

Inter-Commodity 

10Y2YY 0.3 100 65% of RTH
Spread

2

5-Year – 10-Year

Inter-Commodity 

Spread

10Y5YY 0.3 100 65% of RTH

2 10-Year Outright 10Y

0.3

0.6 150 65% of RTH

2

30-Year – 10-Year

Inter-Commodity 

Spread

30Y10Y 0.3 100 65% of RTH

3 10-Year Outright 10Y 0.3

0.6 250 65% of RTH

ETH

2-Year – 10-Year 

Inter-Commodity 

Spread

10Y2YY 2.0 5 75% of ETH

ETH

5-Year – 10-Year

Inter-Commodity 

Spread

10Y5YY 2.0 5 75% of ETH

ETH 10-Year 10Y 2.0

1.0 5 75% of ETH

ETH

30-Year – 10-Year

Inter-Commodity 

Spread

30Y10Y 2.0 5 75% of ETH

Extreme Events Clause: If 10-Year CME Group Volatility Index (CVOL) is 115 170 or greater for at least 

three (3) days in a given calendar month, the Exchange may increase the bid/ask spreads by 1.5X.

obligations below may be implemented. Participants will be given notice that the Extreme Events Clause 

has taken effect.

(i) Width: Increased by 2X

If 10-Year CVOL is 230 or greater on any day in a given calendar month, the Exchange may reduce the 

time-in-market across all Tiers. The time-in-market reduction is subject to a floor of 20%. 

Notwithstanding the foregoing, the Exchange may further reduce the bid/ask spreads, sizes, or time-inmarket obligations based on ongoing evaluations of market conditions and volatility. Participants will be 

given notice that the Extreme Events Clause has taken effect.

Holiday Quoting Schedule: There will be no quoting obligations on the dates listed below. The Holiday 

Quoting Schedule may be adjusted by the Exchange. Participants will be given notice of any adjustments 

to the Holiday Quoting Schedule.

Date Holiday

2/20/2023 Presidents’ Day

4/7/2023 Good Friday

5/29/2023 Memorial Day

6/19/2023 Juneteenth

7/4/2023 Independence Day

9/4/2023 Labor Day

10/9/2023 Columbus Day

11/10/2023 Veterans Day (Observed)

11/23/2023 Thanksgiving
11/24/2023 Post-Thanksgiving

12/25/2023 Christmas

1/1/2024 New Year’s

1/15/2024 Birthday of Dr. Martin Luther King, Jr.

Incentives

10Y Fee Waivers: Upon meeting the Tier 1 obligations for the Product, as determined by the Exchange, 

participants will receive fee waivers for Globex volume in the Products. 

2YY Fee Waivers: Upon meeting the Tier 1 obligations for the 10Y-2YY Product, as determined by the 

Exchange, participants will receive fee waivers for Globex volume in the 2YY Product.

5YY Fee Waivers: Upon meeting the Tier 1 obligations for the 10Y-5YY Product, as determined by the 

Exchange, participants will receive fee waivers for Globex volume in the 5YY Product.

30Y Fee Waivers: Upon meeting the Tier 1 obligations for the 30Y-10Y Product, as determined by the 

Exchange, participants will receive fee waivers for Globex volume in the 30Y Product.

Fee Credits: Upon meeting the Tier 2 obligations for a given Product, as determined by the Exchange, 

participants will receive a fee credit per side traded in the applicable Products. Participants also meeting 

the Tier ETH obligations for a given Product, as determined by the Exchange, will receive an additional 

fee credit per side traded in the applicable Products. Fee credits will be subject to the monthly caps, as 

set forth in the table below.

Tenor Product 

Code Incentive

2-Year 2YY

Tier 2: $0.50 fee credit

Tier ETH: $1.00 fee credit 

(inclusive of Tier 2 fee credit)

Capped at $5,000 per month

5-Year 5YY

Tier 2: $0.50 fee credit

Tier ETH: $1.00 fee credit 

(inclusive of Tier 2 fee credit)

Capped at $5,000 per month

10-Year 10Y

Tier 2: $0.25 fee credit

Tier ETH: $0.50 fee credit 

(inclusive of Tier 2 fee credit)

Capped at $20,000 per month

30-Year 30Y

Tier 2: $0.50 fee credit

Tier ETH: $1.00 fee credit 

(inclusive of Tier 2 fee credit)

Capped at $5,000 per month

Tier Credit Per Side 

for 10Y

Credit Per Side 

for 2YY, 5YY, & 30Y

Tier 2 $0.25 $0.50
Tier 2 & Tier ETH $0.50 $1.00

Fee Cap $20,000 $5,000

Tier 3 10-Year Outright Monthly Stipend: Upon meeting the Tier 3 obligations, as determined by the 

Exchange, participants will receive a stipend of $4,000.

Monitoring and Termination of Status

The Exchange 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.

If the Exchange determines that a participant has not met its quoting obligations during a one (1) calendar 

month over the course of the Program but is within twenty percent (20%) of the time-in-market 

obligations, the participant will be eligible to receive the incentives for that applicable month. Participants 

will receive one (1) such leniency for each enrolled Tenor.

If the Exchange determines that a participant has not met its quoting obligations during an one (1)

additional calendar month, the participant will be eligible to receive incentives for that applicable month, 

with the exception of that month’s the Monthly Stipend. Participants will receive one (1) such leniency for 

each enrolled Tenor. Participants must meet quoting obligations for all subsequent months in order to 

continue to receive the incentives.

Upon utilizing the exceptions set forth above, participants that fail to meet quoting obligations in any 

additional month may be removed from the Program.