SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 24-014

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

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): January 3, 2024 Filing Description: Modifications to the CME 

STIR Options 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: 
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

January 3, 2024

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 STIR Options Market Maker Program

CME Submission No. 24-014

Dear Mr. Kirkpatrick:

Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) hereby notifies the Commodity Futures Trading 

Commission (“CFTC” or “Commission”) of plans to modify the CME STIR Options Market Maker Program

(“Program”). The modifications to the Program will become effective on February 1, 2024. 

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

overstruck.

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

Exchange Act (“CEA”). During the review, CME 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 under 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 CME rules includes prohibitions against fraudulent, noncompetitive, 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 CME rules. 

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

CME 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 CME Submission No. 24-014 in any related correspondence.

Sincerely,

/s/ Timothy Elliott

Managing Director and Chief Regulatory Counsel 

Attachment: Exhibit 1
EXHIBIT 1

CME STIR Options Market Maker Program

Program Purpose

The purpose of the Program is to incentivize participants to enhance liquidity in the products listed below 

for our global client base. A more liquid contract benefits all participants in the market. 

Product Scope

All CME STIR Options (“Products”).

Eligible Participants

The Program is available to all CME members and non-members. There is no limit to the number of 

participants that may participate in the Program. All firms that have a relationship with a clearing member 

firm and can meet CME established quoting requirements, including the ability to stream quotes in 

outright options and straddles, may qualify for the Program.

Program Term

Start date is First Quarter of 2004. End date is January 31, 2024 January 31, 2025.

Hours

Regular and Extended Trading Hours (“RTH & ETH”).

Obligations*

Lead Market Maker (“LMM”) Allocation Obligations: The Exchange shall evaluate and rank the 

performance of participants quarterly as follows:

• 70% of performance evaluation shall be on the basis of participant’s speed of response to 

request-for-quotes (“RFQs”), width of bid-offered price spreads, size of bids and offers, and 

persistence of quoting during a two-minute period. 

• The remaining 30% of performance evaluation shall be on the basis of the participant’s electronic 

trading volume in the Products.

Current Participants

Globex Obligations: In order to be eligible to receive the Globex Discounts set forth below, participants 

must respond to 15% of RFQs during RTH and ETH or earn 25,000 points in a quarter.

Pit Obligations: In order to be eligible to receive the Pit Discounts set forth below, participants must meet 

the following:

(i) Be individual members or 106.J. equity member participants,

(ii) Must have been enrolled in the Eurodollar Options Market Maker Program during the prior 

year,
(iii) Respond to Globex RFQs with Exchange software, and

(iv) Have the ability to quote strategies and outrights 

New Participants

In order to be eligible to receive the Pit Discounts and Globex Discounts set forth below, participants must 

respond to 15% of RFQs during RTH and ETH or earn 25,000 points in a quarter.

Incentives*

LMM Allocation Incentives: The following incentives will be awarded in accordance with quarterly 

evaluation and ranking of participants:

(i) Participants with Ranks 1 through 6: Receive LMM order flow allocations totaling 30%. All

order flow allocations shall be at the sole discretion of the Exchange.

Current Participants

Globex Discounts: Upon meeting the Globex Obligations set forth above, participants will receive a 

discount of $0.13 for each trade made in the Products on Globex.

Pit Discounts: Upon meeting the Pit Obligations set forth above, participants will receive a discount of 

$0.08 on all-in pit fees.

New Participants

Pit Discounts and Globex Discounts: New participants will receive the Pit Discounts and Globex 

Discounts from the date of enrollment to the end of the current ranking period. If that timeframe is less 

than one (1) month, new participants will continue to receive the discounts for the next calendar quarter 

provided the participant can respond to Globex RFQs with Exchange software and has the ability to quote 

strategies and outrights. Participants will continue to receive the discounts provided they respond to 15% 

of RFQs during RTH and ETH or earn 25,000 points in each evaluation quarter after their enrollment 

period has ended.

*The Exchange will evaluate and rank participants quarterly as set forth in the Evaluation and Incentive 

Period schedule below:

Evaluation Period Incentive Period

12/16/2022 – 3/15/2023 4/1/2023 – 6/30/2023

3/16/2023 – 6/15/2023 7/1/2023 – 9/30/2023

6/16/2023 – 9/15/2023 10/1/2023 – 12/31/2023

9/16/2023 – 12/15/2023 1/1/2024 – 3/31/2024

12/16/2022 – 3/15/2023 4/1/2024 – 6/30/2024

12/16/2023 – 3/15/2024 4/1/2024 – 6/30/2024

3/16/2024 – 6/15/2024 7/1/2024 – 9/30/2024

6/16/2024 – 9/15/2024 10/1/2024 – 12/31/2024

9/16/2024 – 12/15/2024 1/1/2025 – 3/31/2025
Monitoring and Termination of Status

The Exchange shall monitor trading activity and participants’ performance and 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 RFQ response or points obligations during

one (1) Evaluation Period over the course of the Program, the participant will be eligible to receive the 

incentives for that applicable Incentive Period. Participants must meet the obligations for all subsequent 

Evaluation Periods in order to continue to receive the incentives.