SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-532

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 Short-Term Interest Rate (“STIR”) Options Pit Liquidity Provider 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 STIR Options Pit Liquidity Provider Program

CME Submission No. 23-532

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 Pit Liquidity Provider 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 underscored 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. 23-532 in any related correspondence.

Sincerely,

/s/ Timothy Elliott

Managing Director and Chief Regulatory Counsel 

Attachment: Exhibit 1
EXHIBIT 1

CME STIR Options Pit Liquidity Provider 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*

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

available to individual members and CME Rule 106.J equity member market makers who meet at least 

one (1) of the below three (3) criteria:

• Member was enrolled in the STIR Options Pit Liquidity Provider Program in the prior year, 

• Firm employee trading a firm account and collectively has had at least one (1) firm employee in 

the pit during 2021 or 2022 the prior calendar year with volume greater than 5,000 sides per 

month for at least three (3) consecutive months, or

• Individual member who self-executed in the pit through sequential trading cards and has been in 

the pit during 2021 or 2022 the prior calendar year with volume greater than 5,000 sides per 

month for at least three (3) consecutive months.

*Participants may not have been previously enrolled in the STIR Options Market Maker Program in the 

prior year or prior to applying for this Program.

Program Term

Start date is December 1, 2017. End date January 31, 2024 January 31, 2025.

Hours

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

Incentives

Transaction Fee Adjustments:

• Program participants receive a $0.13 $0.11 discount off Globex® all-in fees. 

• Program participants receive a $0.08 $0.06 discount off pit all-in fees. 

Mass Quote Message: All market makers shall receive use of the Mass Quote Message function. 
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 of the Program.