SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 18-307 (1 of 2)

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

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): 07/11/2018 Filing Description: Amendments to CME SEF 

Chapter 10 – U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Swap Contract to Increase 

Minimum Price Fluctuation and Related Amendments to the Globex Non Reviewable 

Trading Ranges Table.

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: See filing.

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

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 212 299 2299 christopher.bowen@cmegroup.com cmegroup.com

1

Christopher Bowen 

Managing Director and Chief Regulatory Counsel

Legal Department

July 11, 2018

VIA ELECTRONIC PORTAL

Mr. Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, DC 20581

Re: CFTC Regulation 40.6(a) Certification. Notification Regarding Amendment to CME 

SEF Chapter 10 – U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Swap Contract 

to Increase in Minimum Price Fluctuation and Related Amendments to the Globex 

Non-Reviewable Trading Ranges Table.

 CME SEF Submission No. 18-307 (1 of 2)

Dear Mr. Kirkpatrick:

Chicago Mercantile Exchange Inc., a registered swap execution facility (“SEF”), (“CME SEF” or “Exchange”) 

is notifying the Commodity Futures Trading Commission (“CFTC” or “Commission”) that it is self-certifying 

rule amendments to Rule 10102.C. (“Price Increments”) of the U.S. Midwest #1 Busheling Ferrous Scrap 

(AMM) Swap Contract (CME SEF Rulebook Chapter 10; Commodity Code: BUW) (the “Contract”) and 

related amendments to the Globex Non-Reviewable Trading Ranges table (collectively, the “Rule 

Amendments”) effective on Sunday, July 29, 2018 for trade date Monday, July 30, 2018.

Specifically, the Exchange is increasing the minimum price fluctuation of the Contract from $0.01 per gross 

ton on the CME Globex electronic trading platform and for trades submitted for clearing via CME ClearPort 

as noted in the table below. The daily settlement price of the Contract will reflect the $1.00 price increment. 

Since the final settlement price of the Contract is an average as published by American Metal Market 

(“AMM”), the Exchange will continue to final settle the Contract at $0.01 per gross ton. 

Minimum Price Fluctuation for 

Trading and Daily Settlement

Contract Title Rulebook 

Chapter

Commodity 

Code

Current Effective as of 

Trade Date July 30, 

2018

U.S. Midwest #1 

Busheling Ferrous 

Scrap (AMM) 

Swap 10 BUW $0.01 $1.00 

The Rule Amendments will more accurately reflect current market practices and provide the marketplace 

with more relevant minimum price fluctuations.
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 299 2299 christopher.bowen@cmegroup.com cmegroup.com

2

The related futures contract is also listed for trading on the CME Globex electronic trading platform and or 

submission for clearing on New York Mercantile Exchange, Inc. (“NYMEX”). NYMEX is implementing 

similar amendments to the related futures contract also effective on trade July 30, 2018. (See NYMEX 

Submission Nos. 18-245 and 18-306). 

The Rule Amendments are provided below in blackline format in Exhibits A and B.

The Exchange reviewed the SEF core principles (“Core Principles”) as set forth in the Commodity Exchange 

Act (“CEA” or “Act”) and identified that the Rule Amendments may have some bearing on the following Core 

Principles:

• Ability to Obtain Information: The Exchange will update the CME SEF Rulebook on the CME 

Group website to reflect the Rule Amendments on the effective date.

 

• Timely Publication of Trading Information: The Exchange shall continue to make public daily 

information on settlement prices, volume, open interest, and opening and closing ranges for the 

Contract.

Pursuant to Section 5c(c) of the Act and CFTC Regulations 40.6(a), the Exchange certifies that the Rule 

Amendments comply with the Act, including regulations under the Act. There were no substantive opposing 

views to the Rule Amendments.

The Exchange certifies that this submission has been concurrently posted on the CME Group website at

http://www.cmegroup.com/market-regulation/rule-filings.html.

Should you have any questions concerning the above, please contact the undersigned at (212) 299-2200 

or via e-mail at CMEGSubmissionInquiry@cmegroup.com.

Sincerely, 

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachments: Exhibit A: CME SEF Rule 10102.C. (blackline format)

Exhibit B: CME SEF (“Globex Non-Reviewable Trading Ranges”) Table

 

 

 

 
3

Exhibit A

CME SEF RULEBOOK

(additions are underscored; deletions are struck through.)

Chapter 10: US Midwest Busheling Ferrous Scrap (AMM) Swap (BUW)

10102. TRADING SPECIFICATIONS

The number of months open for trading at a given time shall be determined by CME SEF.

10102.A. Trading Schedule

The hours of trading for this contract shall be determined by CME SEF.

10102.B. Trading Unit

The contract quantity shall be 20GT. Each contract shall be valued as the contract quantity multiplied 

by the settlement price.

10102.C. Price Increments

Prices shall be quoted in U.S. dollars and cents per gross ton. The minimum price fluctuation shall 

be $0.01 1.00 per gross ton. There shall be no maximum price fluctuation.

10102.D. Termination of Trading

Trading shall terminate on the 10th calendar day of the contract month. If the 10th calendar day falls 

into a holiday or weekend, the price will settle on the immediate following business day. Business 

days are based on the US Public Holiday calendar.
4

Exhibit B

CME SEF RULEBOOK

(additions are underscored; deletions are struck through.)

(“Globex Non-Reviewable Trading Ranges”) Table

Instrument Globex 

Symbol

NRR including 

Unit of Measure

Non-Reviewable 

Range (NRR) in 

Globex format

NRR Ticks

U.S. Midwest 

#1 Busheling 

Ferrous Scrap 

(AMM) 

Futures

BUW $50.00 per gross 

ton 5000 500050