433 West Van Buren Street › Suite 700S › Chicago, IL 60607 › cboe.com

October 19, 2023 

Christopher J. Kirkpatrick

Secretary

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

 

Re: Cboe Futures Exchange, LLC Rule Certification

Submission Number CFE-2023-019

Dear Mr. Kirkpatrick:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (“Act”), and 

Regulation 40.6(a) promulgated by the Commodity Futures Trading Commission (“CFTC” or 

“Commission”) under the Act, Cboe Futures Exchange, LLC (“CFE” or “Exchange”) hereby submits 

a CFE rule amendment (“Amendment”) to allow for the execution of Derived Block Trades in 

designated CFE products. Exhibit 1 to this submission sets forth the rule changes included in the 

Amendment. The Amendment will become effective on or after November 2, 2023, on a date to be 

announced by the Exchange through the issuance of an Exchange notice.

Amendment Overview

CFE Rule 415 (Block Trades) includes provisions that govern the execution of Block Trades

in CFE products. CFE Rule 1502 (Contract Specifications) includes provisions which govern the 

execution of transactions in Cboe® iBoxx® iShares® Bond Index futures (“CB Index futures”).1

 The 

following CB Index futures products are currently listed for trading on CFE: (i) Cboe® iBoxx® iShares®

$ High Yield Corporate Bond Index Futures (“IBHY futures”) and (ii) Cboe® iBoxx® iShares® $ 

Investment Grade Corporate Bond Index Futures (“IBIG futures”).

The Amendment adds new paragraph (s) to Rule 415 to define and establish requirements for 

Derived Block Trades. Additionally, new Rule 415(s) provides that Derived Block Trades may only 

be consummated in CFE contracts designated by the Exchange and for which the rules governing the 

applicable contract explicitly provide that Derived Block Trades are permitted in that contract. Because 

of the addition of new paragraph (s) to Rule 415, the Amendment redesignates current Rule 415(s) as 

Rule 415(t).

The Amendment also revises Rule 1502 to provide that Derived Block Trades may be entered 

into in CB Index futures as either a single leg transaction or a spread transaction. At this time, the only 

products in which the Exchange is permitting Derived Block Trades to be consummated are CB Index 

1 See Exhibit 2 for disclaimers and trademarks with respect to CB Index futures relating to and of S&P 

Dow Jones Indices LLC and BlackRock Fund Advisors.
2 

futures products. The Exchange may further amend CFE rules in the future to permit Derived Block 

Trades to be consummated in other CFE products.

Derived Block Trade Attributes

A Derived Block Trade is a Block Trade in which the trade price and contract quantity of the 

Block Trade are dependent upon one or more hedging transactions conducted by one of the parties to 

the Block Trade (referred to as the Hedging Party) that take place after the Block Trade has been 

consummated between the parties but prior to the submission of the Block Trade to the Exchange. For 

example, the Hedging Party in a Derived Block Trade may be a dealer, and the counterparty in the 

Derived Block Trade may be a client of the dealer.

The trade price of a Derived Block Trade is the cost of the hedging transactions by the Hedging 

Party relating to the Derived Block Trade, plus or minus a fixed differential, or basis, to be added to or 

subtracted from the cost of the hedging transaction(s), that is agreed to by the parties to the Derived 

Block Trade as part of the consummation of the Derived Block Trade.

The contract quantity of a Derived Block Trade may vary depending upon the quantity of the 

hedging transaction(s) relating to the Derived Block Trade that the Hedging Party is able to execute, as 

further described below.

Derived Block Trade Requirements

Derived Block Trades are subject to the requirements of new Rule 415(s). Derived Block 

Trades are also subject to the other requirements that apply to Block Trades, except to the extent that 

those other requirements are modified by new Rule 415(s). 

The parties to a Derived Block Trade must agree upon the following items as part of the 

consummation of a Derived Block Trade:

• the execution of the transaction will be consummated as a Derived Block Trade;

• the number of contracts to be traded between the parties as part of the Derived Block Trade, 

which must meet or exceed the Block Trade minimum quantity threshold for the applicable 

contract;

• the product(s) in which the hedging transaction(s) by the Hedging Party relating to the 

Derived Block Trade will take place; 

• the execution methodology for the hedging transaction(s) by the Hedging Party relating to 

the Derived Block Trade; and

• the basis to be added to or subtracted from the cost of the hedging transactions(s) by the 

Hedging Party relating to the Derived Block Trade in order to calculate the trade price of 

the Derived Block Trade. 

These same details must be included in an order ticket for a Derived Block Trade prepared by 

a CFE Trading Privilege Holder (“TPH”) that acts as agent for a Derived Block Trade and in the 

notification to the Exchange of a Derived Block Trade that is provided by the Authorized Reporter(s) 

for the Derived Block Trade. These details are in addition to the other information required to be 
3 

included on an order ticket or reported to the Exchange for other Block Trades, which must also be 

included for Derived Block Trades. Additionally, the notification to the Exchange of a Derived Block 

Trade must include the start time and the end time of the hedging transaction(s) by the Hedging Party 

relating to the Derived Block Trade.

Other requirements applicable to Derived Block Trades include:

• The basis for a Derived Block Trade must be fair and reasonable at the time it is agreed to 

by the parties to the Derived Block Trade so that the expected trade price of the Derived 

Block Trade at that time is consistent with the principles of a fair and reasonable trade price 

that apply to other Block Trades. 

• The Hedging Party may not execute any hedging transactions relating to a Derived Block 

Trade until after the parties to the Derived Block Trade have agreed upon the items 

enumerated above that must be agreed upon as part of the consummation of a Derived 

Block Trade and have consummated the Derived Block Trade.

• Any product(s) in which hedging transaction(s) by the Hedging Party relating to a Derived 

Block Trade will take place must evidence a reasonable degree of price correlation to the 

CFE contract that is being traded by the parties through the Derived Block Trade.

• The execution methodology for the hedging transaction(s) by the Hedging Party relating 

to a Derived Block Trade may be a Volume Weighted Average Price (“VWAP”), Time 

Weighted Average Price (“TWAP”), Percentage of Volume (“POV”), Limit Orders, or 

other execution methodology agreed to by the parties to the Derived Block Trade. 

• The consummation of a Derived Block Trade and the hedging transaction(s) by the 

Hedging Party relating to the Derived Block Trade must occur and be reported to the 

Exchange on the same CFE business day by no later than the end of trading hours on that 

business day in the CFE contract that is being traded by the parties through the Derived 

Block Trade. Accordingly, the reporting deadline for a Derived Block Trade in CB Index 

futures will be at 4:00 p.m. Chicago time on a regular CFE business day (which is when 

trading hours in CB Index futures end on a regular CFE business day).

Derived Block Trade Quantity

In the event that the Hedging Party is unable to execute the full quantity of hedges necessary 

to support the originally agreed upon contract quantity of a Derived Block Trade, and the quantity of 

hedges executed by the Hedging Party relating to the Derived Block Trade corresponds to a contract 

quantity that meets or exceeds the Block Trade minimum quantity threshold for the applicable Contract:

• the Hedging Party must, at a minimum, report the Derived Block Trade to the Exchange at 

a contract quantity that corresponds to the quantity of hedges that the Hedging Party was 

able to execute; or 

• the Hedging Party may, with the consent of the other party to the Derived Block Trade, 

report the Derived Block Trade to the Exchange at up to the full contract quantity originally 

agreed upon by the parties to the Derived Block Trade.

In the event that the Hedging Party is unable to execute the full quantity of hedges necessary 
4 

to support the originally agreed upon contract quantity of a Derived Block Trade, and the quantity of 

hedges executed by the Hedging Party relating to the Derived Block Trade corresponds to a contract 

quantity that is less than the Block Trade minimum quantity threshold for the applicable Contract:

• the Hedging Party may, with the consent of the other party to the Derived Block Trade, 

report the Derived Block Trade to the Exchange at a contract quantity that is at or in excess 

of the Block Trade minimum quantity threshold for the applicable Contract; or 

• the Hedging Party may notify the other party to the Derived Block Trade that no Derived 

Block Trade was able to be completed and reported to the Exchange due to the lack of 

sufficient hedges to meet the Block Trade minimum quantity threshold for the applicable 

Contract.

Other Derived Block Trade Provisions

The rule provisions with regard to recordkeeping and the provision of information to the 

Exchange that apply to Block Trades will also be applicable to Derived Block Trades. Without limiting 

the generality of the foregoing, information required to be retained and provided to the Exchange upon 

request will include: 

• transaction information for the hedging transaction(s) by the Hedging Party relating to a 

Derived Block Trade, such as the product traded, transaction volume, transaction price, 

and transaction time for each hedging transaction and the total cost of the hedging 

transaction(s); and

• a record by the Hedging Party that a Derived Block Trade could not be completed and 

reported to the Exchange, in a situation in which no Derived Block Trade was able to be 

completed and reported to the Exchange due to the lack of sufficient hedges to meet the 

Block Trade minimum quantity threshold for the applicable Contract.

In addition, the Exchange will designate each Derived Block Trade as a Derived Block Trade 

in Exchange market data.

Application of Summary Fine Schedule

CFE Rule 714 (Imposition of Fines for Minor Rule Violations) allows the Exchange to apply 

a summary fine schedule for enumerated types of minor rule violations in lieu of bringing a formal 

disciplinary proceeding for those rule violations. These summary fine schedules are set forth in Rule 

714(f). One of those summary fine schedules is included in Rule 714(f)(xiv) and is a summary fine 

schedule for failure to comply with Block Trade reporting requirements under various provisions of 

Rule 415.

The Amendment revises Rule 714(f)(xiv) to add Rule 415(s) as an additional provision to 

which the summary fine schedule under Rule 714(f)(xiv) is applicable. Thus, a failure to comply with 

Derived Block Trade reporting requirements under Rule 415(s) may be subject to the summary fine 

schedule under Rule 714(f)(xiv). Other requirements relating to Derived Block Trades are already 

covered by other summary fine schedules under Rule 714(f) that apply to all Block Trades.

Additionally, pursuant to Rule 714(d), the Exchange may proceed under the Exchange’s formal 

disciplinary rules rather than under Rule 714 whenever it determines that a violation is intentional, 
5 

egregious, or otherwise not minor in nature or that the number of recurring violations within the rolling 

time period under the applicable summary fine schedule warrants a formal disciplinary proceeding.

Comparable Provisions

The provisions of the Amendment are similar to the rule provisions of other designated contract 

markets (“DCMs”).2

Statutory Basis

CFE believes that the Amendment is consistent with the Designated Contract Market (“DCM”) 

Core Principles under Section 5 of the Act. In particular, CFE believes that the Amendment is 

consistent with: 

• DCM Core Principle 2 (Compliance with Rules) in that the Amendment provides guidance 

in CFE’s rules regarding the required steps in order to execute a Derived Block Trade, 

which contributes to facilitating compliance with CFE rules;

• DCM Core Principle 7 (Availability of General Information) because the Amendment 

includes in CFE’s rules the definition of a Derived Block Trade and the requirements 

applicable to Derived Block Trades;

• DCM Core Principle 9 (Execution of Transactions) because:

o the Amendment contributes to the provision by CFE of a competitive, open, and 

efficient market and mechanism for executing transactions by enhancing the capability 

of market participants to provide liquidity for large size trades by increasing their

ability to hedge the resulting positions; and

o protects the price discovery process of trading on CFE’s centralized market by making 

Derived Block Trades subject to Block Trade minimum quantity thresholds and other 

Block Trade requirements, such as qualification, reporting, and recordkeeping 

provisions;

• DCM Core Principle 10 (Trade Information) because the Amendment provides for the 

reporting to the Exchange of pertinent information relating to Derived Block Trades and 

for recordkeeping obligations relating to these transactions, which contributes to CFE’s 

ability to have and obtain trade information that CFE may utilize in reviewing whether 

Derived Block Trades comply with CFE rules; and

• DCM Core Principle 13 (Disciplinary Procedures) in that the Amendment provides 

additional motivation and incentive for TPHs to comply with reporting requirements 

2 See, e.g., the CME Group rule certification filing to the CFTC designated as CME Submission No. 

22-041, dated May 6, 2022, relating to Derived Block Trades and applicable to Chicago Mercantile 

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

Mercantile Exchange, Inc. (“NYMEX”), and Commodity Exchange, Inc. (“COMEX”) and the ICE 

Futures U.S., Inc. rule certification filing to the CFTC designated as Submission No. 22-232, dated 

November 28, 2022, relating to Equity Basis Block Trades. 
6 

relating to Derived Block Trades in order to avoid summary fines.

CFE believes that the impact of the Amendment will be beneficial to the public and market 

participants. CFE is not aware of any substantive opposing views to the Amendment. CFE hereby 

certifies that the Amendment complies with the Act and the regulations thereunder. CFE further 

certifies that CFE has posted a notice of pending certification with the Commission and a copy of this 

submission on CFE’s website (http://www.cboe.com/us/futures/regulation/rule_filings/cfe/) concurrent 

with the filing of this submission with the Commission.

Questions regarding this submission may be directed to Arthur Reinstein at (312) 786-7570

and Shane Wilkerson at (484) 798-9350. Please reference our submission number CFE-2023-019 in

any related correspondence.

Cboe Futures Exchange, LLC

/s/ Laura Fuson

By: Laura Fuson

Managing Director
7 

EXHIBIT 1 

The Amendment, marked to show additions in underlined text and deletions in stricken text, 

consists of the following:

Cboe Futures Exchange, LLC Rulebook

* * * * *

415. Block Trades

(a) No changes.

(b) The price at which a Block Trade is executed must be “fair and reasonable” in light of 

(i) the size of the Block Trade; (ii) the prices and sizes, at the time of agreement to the Block 

Trade, of Orders in the Order book for the same Contract, the same contract on other markets 

and similar or related contracts on the Exchange and other markets, including without limitation 

the underlying cash and futures markets; (iii) the prices and sizes, at the time of agreement to 

the Block Trade, of transactions in the same Contract, the same contract on other markets and 

similar or related contracts on the Exchange and other markets, including without limitation 

the underlying cash and futures markets; (iv) the circumstances of the parties to the Block 

Trade; and (v) whether the Block Trade is executed as a Spread Order.

The following guidelines shall apply in determining whether the execution price of a Block 

Trade that is not executed as a Spread Order is “fair and reasonable.” These guidelines are 

general and may not be applicable in each instance. Whether the execution price of a Block 

Trade is “fair and reasonable” depends upon the particular facts and circumstances.

In the event the quantity present in the Order book is greater or equal to the quantity needed to 

fill an Order of the size of the Block Trade, it would generally be expected that the Block Trade 

price would be better than the price present in the Order book. In the event the quantity present 

in the Order book is less than the quantity needed to fill an Order of the size of the Block Trade, 

it would generally be expected that the Block Trade price would be relatively close to the price 

present in the Order book and that the amount of the differential between the two prices would 

be smaller to the extent that the differential between the quantity present in the Order book and 

the Block Trade quantity is smaller.

 (c) - (d) No changes.

(e) Each Trading Privilege Holder that acts as agent for a Block Trade shall record the 

following details on its order ticket: (i) the Contract (including the expiration); (ii) the number 

of contracts traded; (iii) the price of execution or premium; (iv) the time of execution (i.e., the 

time at which the parties agreed to the Block Trade); (v) the arrangement time, if any (i.e., the 

time at which the parties agreed to enter into the Block Trade at a later time); (vi) the identity 

of the counterparty; (vii) that the transaction is a Block Trade; (viii) if applicable, the account 

number of the Customer for which the Block Trade was executed; and (ix) if applicable, the 

expiration, strike price and type of option (put or call) in the case of an option.

Every Trading Privilege Holder handling, executing, clearing or carrying Block Trades or 

positions shall identify and mark as such by appropriate symbol or designation all Block Trades 

or positions and all orders, records and memoranda pertaining thereto.
8 

Each Trading Privilege Holder involved in any Block Trade shall either maintain records 

evidencing compliance with the criteria set forth in this Rule 415 or be able to obtain such 

records from its Customer involved in the Block Trade. Upon request by the Exchange and 

within the time frame designated by the Exchange, any such Trading Privilege Holder shall 

produce satisfactory evidence, including any required order ticket, that the Block Trade meets 

the requirements set forth in this Rule 415. Each Clearing Member carrying a Customer 

account for which a Block Trade is executed shall be responsible for obtaining and submitting 

to the Exchange in a timely and complete manner the records of its Customer regarding the 

Block Trade. 

 (f) - (g) No changes.

(h) The notification to the Exchange of a Block Trade shall include (i) whether the Block 

Trade is a single leg transaction, a transaction in a spread or a transaction in a strip; (ii) the 

Contract identifier (or product and contract expiration for a future or product, expiration, strike 

price and type of option (put or call) in the case of an option), price (or premium for an option) 

and quantity of the Block Trade and whether the Block Trade is buy or sell; (iii) the time of 

execution (i.e., the time at which the parties agreed to the transaction); (iv) the arrangement 

time, if any (i.e., the time at which the parties agreed to enter into the transaction at a later 

time); (v) Order Entry Operator ID; (vi) EFID; (vii) account; (viii) Clearing Corporation origin 

code; (ix) Customer Type Indicator code; and (x) any other information required by the 

Exchange.

 (i) - (r) No changes.

(s) A Derived Block Trade is a Block Trade in which the trade price and contract quantity 

of the Block Trade are dependent upon one or more hedging transactions conducted by one of 

the parties to the Block Trade (“Hedging Party”) that take place after the Block Trade has been 

consummated between the parties but prior to the submission of the Block Trade to the 

Exchange. For example, the Hedging Party in a Derived Block Trade may be a dealer, and the 

counterparty in the Derived Block Trade may be a client of the dealer.

The trade price of a Derived Block Trade is the cost of the hedging transactions by the Hedging 

Party relating to the Derived Block Trade, plus or minus a fixed differential, or basis, to be 

added to or subtracted from the cost of the hedging transaction(s), that is agreed to by the parties

to the Derived Block Trade as part of the consummation of the Derived Block Trade. 

The contract quantity of a Derived Block Trade may vary depending upon the quantity of the 

hedging transaction(s) relating to the Derived Block Trade that the Hedging Party is able to 

execute, as further described below.

Derived Block Trades are subject to the requirements of this paragraph (s). Derived Block 

Trades are also subject to the other requirements that apply to Block Trades, except to the extent 

that those other requirements are modified by the provisions of this paragraph (s).

(i) Derived Block Trades may only be consummated in Exchange 

Contracts designated by the Exchange and for which the rules governing the applicable 

Contract explicitly provide that Derived Block Trades are permitted in that Contract. 

(ii) If the rules governing a Contract permit Derived Block Trades to be 
9 

executed in that Contract, those rules will specify whether Derived Block Trades in 

that Contract may be executed as a single leg transaction or as either a single leg 

transaction or a spread transaction. 

(iii) The parties to a Derived Block Trade must agree upon the following 

items as part of the consummation of a Derived Block Trade:

(A) the execution of the transaction will be consummated as a 

Derived Block Trade; 

(B) the number of contracts to be traded between the parties as 

part of the Derived Block Trade, which must meet or exceed the Block Trade 

minimum quantity threshold for the applicable Contract;

(C) the product(s) in which the hedging transaction(s) by the 

Hedging Party relating to the Derived Block Trade will take place; 

(D) the execution methodology for the hedging transaction(s) by 

the Hedging Party relating to the Derived Block Trade; and

(E) the basis to be added to or subtracted from the cost of the 

hedging transactions(s) by the Hedging Party relating to the Derived Block 

Trade in order to calculate the trade price of the Derived Block Trade. 

(iv) The basis for a Derived Block Trade must be fair and reasonable at the 

time it is agreed to by the parties to the Derived Block Trade so that the expected trade 

price of the Derived Block Trade at that time is consistent with the principles set forth 

in paragraph (b) above.

(v) The Hedging Party may not execute any hedging transactions relating 

to a Derived Block Trade until after the parties to the Derived Block Trade have agreed 

upon the items enumerated in subparagraph (s)(iii) above and consummated the 

Derived Block Trade.

(vi) Any product(s) in which hedging transaction(s) by the Hedging Party 

relating to a Derived Block Trade will take place must evidence a reasonable degree 

of price correlation to the Exchange Contract that is being traded by the parties through 

the Derived Block Trade.

(vii) The execution methodology for the hedging transaction(s) by the 

Hedging Party relating to a Derived Block Trade may be a Volume Weighted Average 

Price (“VWAP”), Time Weighted Average Price (“TWAP”), Percentage of Volume 

(“POV”), Limit Orders or other execution methodology agreed to by the parties to the 

Derived Block Trade. 

(viii) The consummation of a Derived Block Trade and the hedging 

transaction(s) by the Hedging Party relating to the Derived Block Trade must occur 

and be reported to the Exchange on the same Exchange Business Day by no later than 

the end of Trading Hours on that Business Day in the Exchange Contract that is being 

traded by the parties through the Derived Block Trade (which is the Reporting 

Deadline for a Derived Block Trade). 
10

(A) The Permissible Agreement Period for a Derived Block Trade 

is the same as the Permissible Agreement Period for other Block Trades. 

Agreement to a Derived Block Trade for this purpose includes, without 

limitation, agreement to the items enumerated in subparagraph (s)(iii) above.

(B) The Permissible Reporting Period for a Derived Block Trade 

is the same as the Permissible Reporting Period for other Block Trades.

(ix) In the event that the Hedging Party is unable to execute the full 

quantity of hedges necessary to support the originally agreed upon contract quantity of 

a Derived Block Trade, and the quantity of hedges executed by the Hedging Party 

relating to the Derived Block Trade corresponds to a contract quantity that meets or 

exceeds the Block Trade minimum quantity threshold for the applicable Contract:

(A) the Hedging Party must, at a minimum, report the Derived 

Block Trade to the Exchange at a contract quantity that corresponds to the 

quantity of hedges that the Hedging Party was able to execute; or 

(B) the Hedging Party may, with the consent of the other party to 

the Derived Block Trade, report the Derived Block Trade to the Exchange at 

up to the full contract quantity originally agreed upon by the parties to the 

Derived Block Trade. 

(x) In the event that the Hedging Party is unable to execute the full 

quantity of hedges necessary to support the originally agreed upon contract quantity of 

a Derived Block Trade, and the quantity of hedges executed by the Hedging Party 

relating to the Derived Block Trade corresponds to a contract quantity that is less than

the Block Trade minimum quantity threshold for the applicable Contract:

(A) the Hedging Party may, with the consent of the other party to 

the Derived Block Trade, report the Derived Block Trade to the Exchange at a 

contract quantity that is at or in excess of the Block Trade minimum quantity 

threshold for the applicable Contract; or 

(B) the Hedging Party may notify the other party to the Derived 

Block Trade that no Derived Block Trade was able to be completed and 

reported to the Exchange due to the lack of sufficient hedges to meet the Block 

Trade minimum quantity threshold for the applicable Contract.

(xi) Each Derived Block Trade shall be designated as a Derived Block 

Trade in Exchange Market Data.

(xii) Each Trading Privilege Holder that acts as agent for a Derived Block 

Trade shall record on its order ticket the details listed in paragraph (e) above and the 

additional details listed below in this subparagraph (s)(xii). Similarly, the notification 

to the Exchange of a Derived Block Trade shall include the details listed in paragraph 

(h) above and the following additional details listed below in this subparagraph (s)(xii): 

(A) identification of the transaction as a Derived Block Trade;
11

(B) the product(s) in which the hedging transaction(s) by the 

Hedging Party relating to the Derived Block Trade took place; 

(C) the start time and end time of the hedging transaction(s) by 

the Hedging Party relating to the Derived Block Trade; 

(D) the execution methodology for the hedging transaction(s) by 

the Hedging Party relating to the Derived Block Trade (which may be VWAP, 

TWAP, POV, Limit Orders or a description of any other execution 

methodology that was utilized); and

(E) the basis added to or subtracted from the cost of the hedging 

transactions(s) to calculate the trade price of the Derived Block Trade.

(xiii) The provisions of paragraph (e) above, including without limitation 

the provisions of that paragraph relating to recordkeeping and the provision of 

information to the Exchange, shall be applicable to Derived Block Trades. Without 

limiting the generality of the foregoing, information required to be retained and 

provided to the Exchange upon request pursuant to paragraph (e) above includes:

(A) transaction information for the hedging transaction(s) by the 

Hedging Party relating to a Derived Block Trade, such as the product traded, 

transaction volume, transaction price and transaction time for each hedging 

transaction and the total cost of the hedging transaction(s); and

(B) a record by the Hedging Party that a Derived Block Trade 

could not be completed and reported to the Exchange, in a situation in which 

no Derived Block Trade was able to be completed and reported to the 

Exchange due to the lack of sufficient hedges to meet the Block Trade 

minimum quantity threshold for the applicable Contract. 

(st) Any Block Trade in violation of the requirements of this Rule shall constitute conduct 

which is inconsistent with just and equitable principles of trade; provided, however, if the 

Exchange imposes a minor rule violation fine pursuant to Rule 714 for violation of this Rule, 

that minor rule violation shall not be considered to constitute conduct which is inconsistent 

with just and equitable principles of trade.

* * * * *

714. Imposition of Fines for Minor Rule Violations

(a) - (e) No changes. 

(f) The following is a list of the rule violations subject to, and the applicable fines that 

may be imposed by the Exchange pursuant to, this Rule 714:

 (i) - (xiii) No changes. 

(xiv) Failure to Comply with Block Trade Reporting Requirements. 

(Rules 415(g), 415(h), and 415(i) and 415(s)) 
12

Number of Cumulative Violations in 

Any Twelve (12) Month Rolling Period Fine Amount

First Offense................................... Letter of Caution

Second Offense............................. $7,500

Subsequent Offenses....................... $15,000

 (xv) - (xviii) No changes. 

* * * * *

1502. Contract Specifications

 (a) - (j) No changes.

(k) Block Trades. Pursuant to Rule 415(a)(i), the minimum Block Trade quantity for CB 

Index futures is 50 contracts if there is only one leg involved in the trade. If the Block Trade 

is executed as a transaction with legs in multiple contract expirations, each leg must meet the 

minimum Block Trade quantity for CB Index futures. Any Block Trade must satisfy the 

requirements of Rule 415.

The minimum price increment for a Block Trade in CB Index futures is 0.005 index points.

Derived Block Trades, as set forth in Rule 415(s), may be entered into in CB Index futures. A 

Derived Block Trade in CB Index futures may be executed as either a single leg transaction or 

a spread transaction. 

 (l) - (r) No changes.

* * * * *
13

EXHIBIT 2

The iBoxx iShares $ High Yield Corporate Bond Index and the iBoxx iShares $ Investment Grade Corporate Bond 

Index (“iBoxx iShares $ Corporate Bond Indices”) are products of S&P Dow Jones Indices LLC or its affiliates or 

licensors (“S&P DJI”) and have been licensed for use by Cboe Exchange, Inc. iBoxx®, S&P®, “S&P 500® and 

“Dividend Aristocrats® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow 

Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and has been licensed for 

use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for 

certain purposes by Cboe Exchange, Inc. Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index futures and 

options on futures and Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index futures and options on 

futures are not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and 

none of such parties make any representation regarding the advisability of investing in such product(s) nor do they 

have any liability for any errors, omissions, or interruptions of the iBoxx iShares $ Corporate Bond Indices.

The iBoxx® iShares® $ High Yield Corporate Bond Index and the iBoxx® iShares® $ Investment Grade Corporate 

Bond Index (the “Indexes”), futures contracts on the Indexes and options on futures contracts on the Indexes 

(“Contracts”) are not sponsored by, or sold by BlackRock, Inc. or any of its affiliates (collectively, “BlackRock”). 

BlackRock makes no representation or warranty, express or implied to any person regarding the advisability of 

investing in securities, generally, or in the Contracts in particular. Nor does BlackRock make any representation or 

warranty as to the ability of the Index to track the performance of the fixed income securities market, generally, or 

the performance of HYG, LQD or any subset of fixed income securities.

BlackRock has not calculated, composed or determined the constituents or weightings of the fixed income securities 

that comprise the Indexes (“Underlying Data”). BlackRock is not responsible for and has not participated in the 

determination of the prices and amounts of the Contracts, or the timing of the issuance or sale of such Contracts or 

in the determination or calculation of the equation by which the Contracts are to be converted into cash (if 

applicable). BlackRock has no obligation or liability in connection with the administration or trading of the 

Contracts. BlackRock does not guarantee the accuracy or the completeness of the Underlying Data and any data 

included therein and BlackRock shall have no liability for any errors, omissions or interruptions related thereto.

BlackRock makes no warranty, express or implied, as to results to be obtained by S&P DJI, the parties to the 

Contracts or any other person with respect to the use of the Underlying Data or any data included therein. BlackRock 

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