SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-478

Organization: The Board of Trade of the City of Chicago, Inc. ("CBOT")

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 3-

Year Note Futures 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

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 3-Year Note Futures Market Maker Program

CBOT Submission No. 23-478

Dear Mr. Kirkpatrick:

The Board of Trade of the City of Chicago, Inc. (“CBOT” or “Exchange”) hereby notifies the Commodity Futures 

Trading Commission (“CFTC” or “Commission”) of plans to modify the 3-Year Note Futures 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. 

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

Commodity Exchange Act (“CEA” or “Act”). During the review, CBOT 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 in 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 CBOT rules includes prohibitions against fraudulent, non-competitive, 

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 CBOT rules. The Program 

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

CBOT 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 CBOT Submission No. 23-478 in any related 

correspondence.

Sincerely,

/s/ Timothy Elliott

Managing Director and Chief Regulatory Counsel

Attachment: Exhibit 1
EXHIBIT 1

3-Year Note Futures Market Maker Program

Program Purpose 

The purpose of this Program is to incent participants to build liquidity in the product listed below that is 

traded on the CME Globex Platform (“Globex”). A more liquid contract on the central limit order book 

benefits all participant segments in the market.

Product Scope

3-Year Treasury Note Futures (“Z3N”) traded on Globex (the “Product”).

Eligible Participants

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

CBOT members or non-members. 

Program Term 

Start date is July 13, 2020. End date is January 31, 2024 July 31, 2024.

Hours

Regular Trading Hours (“RTH”), 7:00AM – 4:00PM CT.

Obligations

Minimum Quoting Obligations*: In order to be eligible to receive incentives, participants must quote 

continuous two-sided markets in the Product at maximum bid/ask spreads and minimum quote sizes in 

accordance with the baseline quoting obligations listed below. Notwithstanding the foregoing, the 

Exchange may vary the baseline quoting obligations as it deems necessary based on ongoing

evaluations of the Program. 

Tier Ticker

Width 

(Ticks, in 

32nds)

Width 

(Index 

Pts)

Width 

(Minimum 

Price 

Increment)

Size 

(Contracts)

Time 

in 

Market

Time 

Period

1 – Front 

Month Z3N 0.75/32nd 0.0234375 6 40 50%

RTH

2 – Front 

Month Z3N 0.5/32nd 0.015625 4 40 50%

2 –

Calendar 

Spread

Z3N 0.5/32nd 0.015625 4 40 40%

*Outright refers to the Front Month contract in the Roll Calendar. Roll Spread quoting is required for the 

last seven (7) trading days of Roll Calendar months (Feb, May, Aug, and Nov).

Extreme Events Clause: If the 10-Year CME Group Volatility Index (“CVOL”) is 170 or greater for at least

three (3) trading days in a calendar month, the Exchange may increase the bid/ask spreads by 1.5X.
If 10-Year CVOL is 230 or greater on any day in a given calendar month, the Exchange may reduce the 

time-in-market across all Tiers. The time-in-market reduction is subject to a floor of 20%. 

Notwithstanding the foregoing, the Exchange may further reduce the bid/ask spreads, sizes, or time-inmarket obligations based on ongoing evaluations of market conditions and volatility. Participants will be 

given notice that the Extreme Events Clause has taken effect.

Holiday Quoting Schedule: There will be no quoting obligations on the dates listed below. The Holiday 

Quoting Schedule may be adjusted by the Exchange. Participants will be given notice of any adjustments 

to the Holiday Quoting Schedule.

Date Holiday

9/4/2023 Labor Day

10/9/2023 Columbus Day

11/10/2023 Veterans Day

11/23/2023 Thanksgiving

11/24/2023 Black Friday

12/25/2023 Christmas

1/1/2024 New Year’s

1/15/2024 Birthday of Dr. Martin Luther King, Jr.

2/19/2024 Presidents’ Day

3/29/2024 Good Friday

5/27/2024 Memorial Day

6/19/2024 Juneteenth

7/4/2024 Independence Day

Incentives

Member Fee Waivers: Upon meeting the Minimum Quoting Obligations for either Tier 1 or Tier 2, member 

participants will receive fee waivers for Globex trades in the Product. 

Non-Member Fee Discounts: Upon meeting the Minimum Quoting Obligations for either Tier 1 or Tier 2, 

non-member participants will receive a discounted rate of $0.14 for Globex trades in the Product. 

Fee Credits: Upon meeting the Minimum Quoting Obligations for Tier 2, participants will be eligible to 

receive Fee Credits in accordance with the table below:

Transaction Type Fee Credits

(per side)

Cap

Calendar Spreads $0.60 $25,000 per month, per participant

All Other Volume $0.20

Roll Month Stipend: Upon meeting the Minimum Quoting Obligations for Tier 2, participants will be eligible 

for a Roll Month Stipend. Each roll month (Feb/May/Aug/Nov), all eligible participants will be ranked by 

Globex volume in the Product. The top six (6) participants will receive a stipend of $8,000 per month, per 

participant.
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 requirements of 

the Program.

If the Exchange determines that a participant has not met its quoting obligations during one (1) calendar 

month over the course of the Program, but is within twenty percent (20%) of the time-in-market obligation, 

the participant will be eligible to receive the incentives for that applicable month.

If the Exchange determines that a participant has not met its quoting obligations during one (1) additional 

calendar month, the participant will be eligible to receive all incentives for that applicable month, with the 

exception of the Monthly Stipend.

Upon utilizing the exceptions set forth above, participants that fail to meet quoting obligations in any 

additional month may be removed from the Program.