SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-535

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 22, 2023 Filing Description: Modifications to the FX

Options Block Broker Rebate 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 22, 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 FX Options Block Broker Rebate Program

CME Submission No. 23-535

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 FX Options Block Broker Rebate Program (“Program”). 

The modifications to the Program will become effective on February 1, 2024.

Exhibit 1 sets forth the terms of the 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, 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 incentivize manipulative trading or market abuse or impact the Exchange’s ability to perform 

its trade practice and market surveillance obligations under the CEA. The Exchange’s market regulation staff will 

monitor trading in the Program’s products to prevent manipulative trading and market abuse. Additionally, CME 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. The incentives under the 

Program do not adversely impact price discovery in the centralized market. Specifically, incentives under the Program 

are only available to brokers that submit previously matched third-party trades in the relevant products. The parties to 

a trade have discretion to select the venue. Brokers earn incentives after venue selection is made. Principals who 

submit trades or execute orders for their own account or a proprietary account are not eligible for incentives under the 

Program. Thus, the Program does not influence the choice made by the principals regarding the execution venue. 

Participants in the Program will be selected by CME staff using criteria set forth in Exhibit 1. Chapter 4 of the CME 

rules includes prohibitions against fraudulent, non-competitive, unfair or abusive practices. The Program is subject to 

these rules and CME records retention policies that 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.

CME certifies that this submission has been concurrently posted on the CME 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. 23-535 in any related correspondence.

Sincerely,

/s/ Timothy Elliott

Managing Director and Chief Regulatory Counsel 

Attachment: Exhibit 1
EXHIBIT 1

FX Options Block Broker Rebate Program

Program Purpose 

The purpose of this Program is to encourage brokers to increase volume in the products listed below, 

enhancing market liquidity for the products. A more liquid contract benefits all participants in the market.

Product Scope

All Standard Size Foreign Exchange (“FX”) Options (“Products”).

Eligible Participants

There is no limit to the number of participants that may participate in the Program. The Program is open 

to registered independent agency brokers and inter-dealer brokers (“IDBs”) that facilitate matched trades 

via CME Direct or CME ClearPort.

Program Term

Start date is June 1, 2015. End date is January 31, 2024 January 31, 2025.

Hours

N/A

Incentives

Participants may be eligible to receive predetermined incentives, as determined by the Exchange.

Monitoring and Termination of Status

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

revoke participant status in the Program if it concludes from review that a participant no longer meets the 

requirements of the Program.