SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 21-098 (2 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): 04/15/21 Filing Description: Initial Listing of the USD Malaysian 

Crude Palm Oil 15th Bullet Futures and USD Malaysian Crude Palm Oil Day 10th Financial 

Options Contracts

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: 

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 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

1

Christopher Bowen 

Managing Director and Chief Regulatory Counsel

Legal Department

April 15, 2021

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 40.2(a) Certification. Notification Regarding the Initial Listing of the 

USD Malaysian Crude Palm Oil Day 15th Bullet Futures and USD Malaysian Crude 

Palm Oil Day 10th Financial Options Contracts.

CME Submission No. 21-098 (2 of 2)

Dear Mr. Kirkpatrick:

Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) is certifying to the Commodity Futures Trading 

Commission (“CFTC” or “Commission”) the initial listing of the USD Malaysian Crude Palm Oil Day 15th

Bullet Futures and the USD Malaysian Crude Palm Oil Day 10th Financial Options contract (the “Contracts”)

for trading on the CME Globex electronic trading platform (“CME Globex”) and for submission for clearing 

via CME ClearPort, effective Sunday, May 2, 2021 for trade date Monday, May 3, 2021, as more specifically 

described below.

Contract Title USD Malaysian Crude Palm Oil Day 15th Bullet Futures

Commodity Code CPV

Rulebook Chapter 204F

Settlement Type Financial

Contract Size 25 metric tons

Listing Schedule Monthly contracts listed for 60 consecutive months

Minimum Price 

Fluctuation $0.25 U.S. dollars per metric ton

Value per tick $6.25

First Listed Month May 2021

Block Trade 

Minimum Threshold 10 contracts - subject to a 15-minute reporting window

Termination of 

Trading

The last trading day for the contract shall be the 15th calendar day of the contract 

month. If the 15th calendar day is not a Bursa Malaysia Derivatives Berhad 

(BMD) business day, the preceding BMD business day will apply. However, 

should this day not be a CME Exchange business day, trading shall cease on 

the preceding CME Exchange business day.

Final Settlement 

Price

The Final Settlement Price shall be the settlement price for the third forward 

month Crude Palm Oil Futures (FCPO) traded on the Bursa Malaysia Derivatives 

Berhad on the 15th calendar day of the contract month converted to USD using 

the Kuala Lumpur USD/MYR Reference Rate. If the 15th day of the contract 

month is not a BMD business day, the price on the preceding BMD business day 

shall be used.
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

2

CME Globex 

Matching Algorithm First-In, First-Out (FIFO)

Contract Title USD Malaysian Crude Palm Oil Day 10th Financial Options

Commodity Code POX

Rulebook Chapter 204G

Settlement Type Financial

Exercise Style European – no exercise prior to the expiration

Position Aggregate 

Into

USD Malaysian Crude Palm Oil Day 15th Bullet Futures

Contract Size 25 metric tons

Listing Schedule Monthly contracts listed for 12 consecutive months

Minimum Price 

Fluctuation $0.10 U.S. dollars per metric ton

Value per tick $2.50

First Listed Month May 2021

Block Trade 

Minimum Threshold 10 contracts - subject to a 15-minute reporting window

Strike Price Listing 10 strikes at $10 per metric ton strike increment above and below the at-themoney strike plus dynamic strikes at $10 per metric ton strike increments.

Termination of 

Trading

The last trading day for the contract shall be the 10th calendar day of the contract 

month. If the 10th calendar day is not a Bursa Malaysia Derivatives Berhad 

(BMD) business day, the preceding BMD business day will apply. However, 

should this day not be a CME Exchange business day, trading shall cease on 

the preceding CME Exchange business day.

Final Settlement The USD Malaysian Crude Palm Oil Day 10th Financial Put Options contract 

traded on the Exchange will represent the cash difference between the exercise 

price and the Underlying Price multiplied by 25 metric tons, or zero, whichever 

is greater. The USD Malaysian Crude Palm Oil Day 10th Financial Call Options 

contract traded on the Exchange will represent the cash difference of the 

Underlying Price less the exercise price multiplied by 25 metric tons, or zero, 

whichever is greater.

The Underlying Price shall be the settlement price for the third forward month 

Crude Palm Oil Futures (FCPO) traded on the Bursa Malaysia Derivatives

Berhad (BMD) on the 10th calendar day of the contract month converted to USD 

using the Kuala Lumpur USD/MYR Reference Rate. If the 10th day of the 

contract month is not a BMD business day, the price on the preceding BMD 

business day shall be used.

CME Globex 

Matching Algorithm First-In, First-Out (FIFO)

Trading and Clearing Hours:

CME Globex Monday - Friday 8:30 p.m. - 1:20 p.m. CT

CME Globex Pre-Open Monday - Friday 6:00 a.m. - 8:30 p.m. CT

CME ClearPort Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday 

5:45 p.m. - 6:00 p.m. CT
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

3

The Contracts shall be eligible for block trading with a minimum block level of 10 contracts which is aligned 

with the Exchange’s similar palm oil futures and options contracts.

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

the Commodity Exchange Act (“CEA” or “Act”) and identified that the Contracts may have some bearing on 

the following Core Principles:

• Compliance with Rules: Trading in the Contracts will be subject to the rules in Rulebook Chapter 

4 which includes prohibitions against fraudulent, noncompetitive, unfair and abusive practices. 

Additionally, trading in the contracts will also be subject to the full panoply of trade practice rules, 

the majority of which are contained in Chapter 5 and Chapter 8 of the Rulebook. As with all 

products listed for trading on one of CME Group’s designated contract markets, activity in the new 

product will be subject to extensive monitoring and surveillance by CME Group’s Market Regulation

Department. The Market Regulation Department has the authority to exercise its investigatory and 

enforcement power where potential rule violations are identified.

• Contract Not Readily Subject to Manipulation: The Contracts are based on a futures price series 

that is reflective of the underlying cash market and is commonly relied on and used as a reference 

price by cash market brokers and commercial market participants. 

• Prevention of Market Disruption: Trading in the Contracts will be subject to Rulebook Chapters 

4 and 7 which include prohibitions on manipulation, price distortion and disruptions of the delivery 

or cash-settlement process. As with all products listed for trading on one of CME Group’s 

designated contract markets, activity in the new products will be subject to extensive monitoring 

and surveillance by CME Group’s Market Regulation Department.

• Position Limitations or Accountability: The speculative position limits for the Contracts as 

demonstrated in this submission are consistent with the Commission’s guidance.

• Availability of General Information: The Exchange will publish information on the Contracts’ 

specifications on its website, together with daily trading volume, open interest and price information.

• Daily Publication of Trading Information: The Exchange will publish information on the 

Contracts’ specifications on its website, together with daily trading volume, open interest and price 

information.

• Execution of Transactions: The Contracts will be listed for trading on the CME Globex electronic 

trading and for clearing through CME ClearPort. The CME Globex trading venue provides for 

competitive and open execution of transactions. CME Globex affords the benefits of reliability and 

global connectivity.

• Trade Information: All required trade information is included in the audit trail and is sufficient for 

the Market Regulation Department to monitor for market abuse.

• Financial Integrity of Contract: All contracts traded on the Exchange will be cleared by the CME 

Clearing House which is a registered derivatives clearing organization with the Commission and is 

subject to all Commission regulations related thereto.

• Protection of Market Participants: Rulebook Chapters 4 and 5 contain multiple prohibitions 

precluding intermediaries from disadvantaging their customers. These rules apply to trading on all 

of the Exchange’s competitive trading venues and will be applicable to transactions in these 

Contracts.
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 301 4645 christopher.bowen@cmegroup.com cmegroup.com

4

• Disciplinary Procedures: Chapter 4 of the Rulebook contains provisions that allow the Exchange 

to discipline, suspend or expel members or market participants that violate the rules. Trading in 

this contract will be subject to Chapter 4, and the Market Regulation Department has the authority 

to exercise its enforcement power in the event rule violations in these products are identified.

• Dispute Resolution: Disputes with respect to trading in the Contracts will be subject to the 

arbitration provisions set forth in Chapter 6 of the Rulebook. The rules in Chapter 6 allow all 

nonmembers to submit a claim for financial losses resulting from transactions on the Exchange to 

arbitration. A member named as a respondent in a claim submitted by a nonmember is required 

to participate in the arbitration pursuant to the rules in Chapter 6. Additionally, the Exchange 

requires that members resolve all disputes concerning transactions on the Exchange via arbitration.

Pursuant to Section 5c(c) of the Act and CFTC Regulations 40.2(a), the Exchange hereby certifies that 

listing the Contracts complies with the Act, including regulations under the Act. There were no substantive 

opposing views to the proposal.

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 Rulebook Chapters 204F and 204G

Exhibit B: Position Limits, Position Accountability and Reportable Level Table in Chapter

 5 of the CME Rulebook (attached under separate cover)

Exhibit C: CME Rule 588.H. – (“Globex Non-Reviewable Trading Ranges”) Table

Exhibit D: Exchange Fees

Exhibit E: Cash Market Overview and Analysis of Deliverable Supply
5

Exhibit A

CME Rulebook

Chapter 204F

USD Malaysian Crude Palm Oil Day 15th Bullet Futures

204F00. SCOPE OF CHAPTER

This chapter is limited in application to USD Malaysian Crude Palm Oil Day 15th Bullet futures. In addition

to this chapter, the contract shall be subject to the general rules and regulations of the Exchange insofar 

as applicable.

204F01. CONTRACT SPECIFICATIONS

204F01.A. Trading Unit

The unit of trade shall be 25 metric tons.

204F01.B. Hours

The hours of trading for this contract shall be determined by the Exchange.

204F01.C. Minimum Price Increments

Minimum price fluctuations shall be USD $0.25 per metric ton which shall equal to USD $6.25 per 

contract.

204F01.D. Trading Schedule

The number of months in which trading may occur shall be at the discretion of the Exchange.

204F01.E. Position Limits, Exemptions, Position Accountability and Reportable Levels

The applicable position limits and/or accountability levels, in addition to the reportable levels, are set forth 

in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations & Special

Notices Section of Chapter 5. 

A Person seeking an exemption from position limits for bona fide commercial purposes shall apply to the 

Market Regulation Department on forms provided by the Exchange, and the Market Regulation 

Department may grant qualified exemptions in its sole discretion.

Refer to Rule 559 for requirements concerning the aggregation of positions and allowable exemptions 

from the specified position limits.

204F01.F. Last Trading Day

The last trading day for the contract shall be the 15th calendar day of the contract month. If the 15th

calendar day is not a Bursa Malaysia Derivatives Berhad (BMD) business day, the preceding BMD 

business day will apply. However, should this day not be a CME Exchange business day, trading shall 

cease on the preceding CME Exchange business day.

204F02. FINAL SETTLEMENT

Final settlement under the contract shall be by cash settlement. Final settlement, following termination 

of trading for a contract month, will be based on the Final Settlement Price as described in Rule 204F03.

204F03. FINAL SETTLEMENT PRICE

The Final Settlement Price shall be the settlement price for the third forward month Crude Palm Oil 

Futures (FCPO) traded on the Bursa Malaysia Derivatives Berhad (BMD) on the 15th calendar day of the 

contract month converted to USD using the Kuala Lumpur USD/MYR Reference Rate. If the 15th day of 

the contract month is not a BMD business day, the price on the preceding BMD business day shall be 

used.

204F04. FINAL SETTLEMENT DAY

The final settlement day for the contract shall be the 15th calendar day of the contract month. If the 15th

calendar day is not a Bursa Malaysia Derivatives Berhad (BMD) business day, the preceding BMD 

business day will apply. However, should this day not be a CME Exchange business day, the final 

settlement day shall be the following CME Exchange business day.
6

204F05. DISCLAIMER

CHICAGO MERCANTILE EXCHANGE INC. [“CME”] HAS BEEN AUTHORIZED BY BURSA MALAYSIA 

DERIVATIVES BERHAD TO USE BURSA MALAYSIA CRUDE PALM OIL FUTURES CONTRACT 

SETTLEMENT PRICES (“FCPO SETTLEMENT PRICES”) AS THE BASIS FOR SETTLING THE 

CONTRACT TRADED ON CME AND TO REFER TO THE FCPO SETTLEMENT PRICES IN 

CONNECTION WITH CREATING, MARKETING, LISTING, TRADING, CLEARING AND SETTLING 

THE CONTRACT. THE CONTRACT IS NOT IN ANY WAY SPONSORED, ENDORSED, SOLD OR 

PROMOTED BY BURSA MALAYSIA DERIVATIVES BERHAD AND BURSA MALAYSIA DERIVATIVES 

BERHAD HAS NO OBLIGATIONS OR LIABILITY IN CONNECTION WITH THE CREATION, 

MARKETING, TRADING, CLEARING, SETTLEMENT AND/OR PROMOTION OF ANY SUCH 

CONTRACTS. FCPO SETTLEMENT PRICES ARE CALCULATED, COMPILED AND PUBLISHED 

SOLELY BY BURSA MALAYSIA DERIVATIVES BERHAD. HOWEVER, BURSA MALAYSIA 

DERIVATIVES BERHAD MAKES NO REPRESENTATIONS AND DISCLAIMS ALL EXPRESS, 

IMPLIED AND STATUTORY WARRANTIES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, 

REPRESENTATIONS AND WARRANTIES AS TO ACCURACY, TIMELINESS, COMPLETENESS, 

MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. TO THE EXTENT 

PERMITTED BY APPLICABLE LAW, BURSA MALAYSIA DERIVATIVES BERHAD SHALL NOT BE 

LIABLE (WHETHER IN CONTRACT, NEGLIGENCE OR OTHERWISE) TO ANY PERSON FOR ANY 

ERROR IN THE FCPO SETTLEMENT PRICES, AND BURSA MALAYSIA DERIVATIVES BERHAD 

SHALL NO BE UNDER ANY OBLIGATION TO ADVISE ANY PERSON OF ANY ERROR THEREIN. 

BURSA MALAYSIA DERIVATIVES BERHAD SHALL UNDER NO CIRCUMSTANCES BE LIABLE FOR

ANY TYPE OF DAMAGES (INCLUDING BUT NOT LIMITED TO, DIRECT, INDIRECT, SPECIAL,

CONSEQUENTIAL, INCIDENTAL, OR PUNITIVE DAMAGES WHATSOEVER OR ANY LOST PROFITS 

OR LOST OPPORTUNITY), EVEN IF BURSA MALAYSIA DERIVATIVES BERHAD HAS BEEN 

ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
7

Chapter 204H

USD Malaysian Crude Palm Oil Day 10th Financial Options

204H00. SCOPE OF CHAPTER

This chapter is limited in application to USD Malaysian Crude Palm Oil Day 10th Financial Options. In 

addition to this chapter, the contract shall be subject to the general rules and regulations of the Exchange

insofar as applicable.

204H01. CONTRACT SPECIFICATIONS

204H01.A. Trading Unit

The unit of trade shall be 25 metric tons.

204H01.B. Hours

The hours of trading for this contract shall be determined by the Exchange.

204H01.C. Minimum Price Increments

Minimum price fluctuations shall be USD $0.10 per metric ton which shall equal to USD $2.50 per 

contract.

204H01.D. Trading Schedule

The number of months in which trading may occur shall be at the discretion of the Exchange.

204H01.E. Exercise Style

The contract is cash settled European-style option. The option cannot be exercised prior to expiration.

204H01.F. Exercise Prices

Transactions shall be conducted for option contracts as set forth in Rule 300.20.

204H01.G. Position Limits, Exemptions, Position Accountability and Reportable Levels

The applicable position limits and/or accountability levels, in addition to the reportable levels, are set forth 

in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations & Special 

Notices Section of Chapter 5. 

A Person seeking an exemption from position limits for bona fide commercial purposes shall apply to the 

Market Regulation Department on forms provided by the Exchange, and the Market Regulation 

Department may grant qualified exemptions in its sole discretion.

Refer to Rule 559 for requirements concerning the aggregation of positions and allowable exemptions 

from the specified position limits.

204H01.H. Last Trading Day

The last trading day for the contract shall be the 10

th calendar day of the contract month. If the 10th

calendar day is not a Bursa Malaysia Derivatives Berhad (BMD) business day, the preceding BMD 

business day will apply. However, should this day not be a CME Exchange business day, trading shall 

cease on the preceding CME Exchange business day.

204H02. FINAL SETTLEMENT

Final settlement under the contract shall be by cash settlement. Final settlement, following termination 

of trading for a contract month, will be based on the Final Settlement Price as described in Rule 204H03.

204H03. FINAL SETTLEMENT PRICE

The USD Malaysian Crude Palm Oil Day 10th Financial Put Options contract traded on the Exchange 

will represent the cash difference between the exercise price and the Underlying Price multiplied by 25 

metric tons, or zero, whichever is greater. The USD Malaysian Crude Palm Oil Day 10th Financial Call 

Options contract traded on the Exchange will represent the cash difference of the Underlying Price less 

the exercise price multiplied by 25 metric tons, or zero, whichever is greater.

The Underlying Price shall be the settlement price for the third forward month Crude Palm Oil Futures 

(FCPO) traded on the Bursa Malaysia Derivatives Berhad (BMD) on the 10

th calendar day of the contract 

month converted to USD using the Kuala Lumpur USD/MYR Reference Rate. If the 10th day of the 

contract month is not a BMD business day, the price on the preceding BMD business day shall be used.
8

204H04. FINAL SETTLEMENT DAY

The final settlement day for the contract shall be the 10

th calendar day of the contract month. If the 10th

calendar day is not a Bursa Malaysia Derivatives Berhad (BMD) business day, the preceding BMD 

business day will apply. However, should this day not be a CME Exchange business day, the final 

settlement day shall be the following CME Exchange business day.

204H05. DISCLAIMER

CHICAGO MERCANTILE EXCHANGE INC. [“CME”] HAS BEEN AUTHORIZED BY BURSA MALAYSIA 

DERIVATIVES BERHAD TO USE BURSA MALAYSIA CRUDE PALM OIL FUTURES CONTRACT 

SETTLEMENT PRICES (“FCPO SETTLEMENT PRICES”) AS THE BASIS FOR SETTLING THE 

CONTRACT TRADED ON CME AND TO REFER TO THE FCPO SETTLEMENT PRICES IN 

CONNECTION WITH CREATING, MARKETING, LISTING, TRADING, CLEARING AND SETTLING 

THE CONTRACT. THE CONTRACT IS NOT IN ANY WAY SPONSORED, ENDORSED, SOLD OR 

PROMOTED BY BURSA MALAYSIA DERIVATIVES BERHAD AND BURSA MALAYSIA DERIVATIVES 

BERHAD HAS NO OBLIGATIONS OR LIABILITY IN CONNECTION WITH THE CREATION, 

MARKETING, TRADING, CLEARING, SETTLEMENT AND/OR PROMOTION OF ANY SUCH 

CONTRACTS. FCPO SETTLEMENT PRICES ARE CALCULATED, COMPILED AND PUBLISHED 

SOLELY BY BURSA MALAYSIA DERIVATIVES BERHAD. HOWEVER, BURSA MALAYSIA 

DERIVATIVES BERHAD MAKES NO REPRESENTATIONS AND DISCLAIMS ALL EXPRESS, 

IMPLIED AND STATUTORY WARRANTIES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, 

REPRESENTATIONS AND WARRANTIES AS TO ACCURACY, TIMELINESS, COMPLETENESS, 

MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. TO THE EXTENT 

PERMITTED BY APPLICABLE LAW, BURSA MALAYSIA DERIVATIVES BERHAD SHALL NOT BE 

LIABLE (WHETHER IN CONTRACT, NEGLIGENCE OR OTHERWISE) TO ANY PERSON FOR ANY 

ERROR IN THE FCPO SETTLEMENT PRICES, AND BURSA MALAYSIA DERIVATIVES BERHAD 

SHALL NO BE UNDER ANY OBLIGATION TO ADVISE ANY PERSON OF ANY ERROR THEREIN. 

BURSA MALAYSIA DERIVATIVES BERHAD SHALL UNDER NO CIRCUMSTANCES BE LIABLE FOR

ANY TYPE OF DAMAGES (INCLUDING BUT NOT LIMITED TO, DIRECT, INDIRECT, SPECIAL,

CONSEQUENTIAL, INCIDENTAL, OR PUNITIVE DAMAGES WHATSOEVER OR ANY LOST PROFITS 

OR LOST OPPORTUNITY), EVEN IF BURSA MALAYSIA DERIVATIVES BERHAD HAS BEEN 

ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
9

Exhibit B

CME Rulebook

Chapter 5

(“Trading Qualifications and Practices”)

Position Limits, Position Accountability and Reportable Level Table 

(attached under separate cover)
10

Exhibit C

CME Rulebook

Chapter 5

(“Trading Qualifications and Practices”)

Rule 588.H. – (“Globex Non-Reviewable Trading Ranges”) Table

(additions are underscored)

Outrights Spreads

Instrument Globex 

Symbol

Globex NonReviewable 

Ranges 

(NRR)

NRR: Globex 

Format

NRR:Minimum 

Ticks

NRR: Globex 

Format

NRR: 

Minimum 

Ticks

USD Malaysian 

Crude Palm Oil Day 

15th Bullet Futures

CPV

$15.00 per 

metric ton 1500 60 N/A N/A

Instrument Globex 

Symbol Globex Non-Reviewable Ranges (NRR)

USD Malaysian 

Crude Palm Oil Day 

10th Financial 

Option

POX

The greater of the following:

•Delta multiplied by the underlying futures nonreviewable range

•20% of premium up to 1⁄4 of the underlying futures nonreviewable range

•5 ticks
11

Exhibit D

Exchange Fees

Membership Type

Venue/Transaction 

Type Fee

Individual Members

Clearing Members

Rule 106.J Equity Member Firms & Rule 106.J Qualified Subsidiaries

Rule 106.I Members & Rule 106.I Qualified Affiliates

Rule 106.S Member Approved Funds

CME Globex $2.00

EFP $2.00

EFR $2.00

Block $2.00

Delivery $2.00

Exe|Asn|Future From $2.00

Rule 106.D Lessees

Rule 106.F Employees 

CME Globex $2.25 

EFP $2.25

EFR $2.25

Block $2.25

Delivery $2.25 

Exe|Asn|Future From $2.25

Rule 106.R Electronic Corporate Members

(For other than CME Globex - Non-Member rates apply) CME Globex $2.50 

Rule 106.H and 106.N Firms 

Clearing Non-Equity Member Firms

CME Globex $2.50

EFP $2.50 

EFR $2.50

Block $2.50

Delivery $2.50 

Exe|Asn|Future From $2.50

International Incentive Program (IIP) and International Volume 

Incentive Program (IVIP) Participants 

(For other than CME Globex – See Non-Members) 

CME Globex $2.50

Members Trading Outside of Division

(For other than CME Globex During ETH – See Non-Members)

CME Globex

During ETH Only $2.50

Non-Members

CME Globex $2.50

EFP $2.50

EFR $2.50

Block $2.50

Delivery $2.50

Exe|Asn|Future From $2.50

Processing Fees Fee

106.D Lessee/106.H Brokerage $0.13 

106.F Employee Brokerage $0.13 

Floor / "New" Brokerage $0.04 

Position Adjustment/Position Transfer $0.10 

Give-Up Surcharge $0.05 

Facilitation Fee $0.40 
12

Exhibit E

Cash Market Overview and Analysis of Deliverable Supply

Cash Market Overview

Malaysian Crude Palm Oil Market

Palm oil is an edible vegetable oil derived from the pulp of the fruit of oil palms. It is naturally reddish in 

color due to high beta-carotene content, and should not be confused with palm kernel oil, which is derived 

from the kernel of the same fruit. Edible vegetable oils are versatile with multiple applications. They are 

crucial ingredients for cooking and producing processed food. They can also be found in personal care 

products such as soaps, fragrance and makeup. In addition, vegetable oils are used as feedstock for bio‐

fuel production.

Palm oil is one of the few highly saturated vegetables fats and is semi-solid at room temperature. This is 

an important component, as many U.S. and global food companies are moving away from partially 

hydrogenated trans fats. Palm oil is a reasonable replacement for trans fats and is also attractive to the 

commercial food industry due to its relative low cost.

According to USDA, global palm oil production is about 75.5 million metric tons in Marketing Year

2020/2021. Malaysian palm oil production is close to 19.9 million metric tons or over 26 percent of global 

production.

BMD FCPO futures are deliverable in Port Tank Installations approved by Bursa Malaysia Derivatives 

Berhad (BMD) at the ports of Kelang, Penang/Butterworth, and Pasir Gudang (Johor). According to BMD

and the Malaysia Palm Oil Board (MPOB), crude palm oil production from the Peninsula Malaysia region 

of Malaysia predominately supplies these locations with oil, and that production in this region represents 

what can easily flow into the BMD FCPO delivery market. Additionally, although the Malaysia Palm Oil 

Board does not maintain quality statistics on crude palm oil production, they indicate that virtually all 

Peninsula Malaysia production meets the minimum delivery specifications of BMD FCPO futures; however, 

for this analysis it is assumed that only 90 percent of Peninsula Malaysia production meets BMD FCPO 

requirements.

Palm oil is produced from the fruit of palm trees. Palm trees continually bear fruit, so palm oil production is 

continuous. Malaysia is one of the world’s major palm oil producers. Peninsula Malaysia palm oil production 

averaged 860,370 metric tons per month during the 36-month period from February 2018 to January 2021. 

This results in monthly deliverable supply of about 774,333 metric tons, assuming ten percent of the 

production does not meet BMD FCPO delivery specifications.
13

Table 1. Peninsula Malaysia Palm Oil Production 

Units: Metric Tons

Source: Malaysian Palm Oil Board1

Month Volume

Feb-18 710,331

Mar-18 860,997

Apr-18 823,079

May-18 790,445

Jun-18 682,549

Jul-18 791,104

Aug-18 840,749

Sep-18 956,540

Oct-18 1,010,782

Nov-18 953,750

Dec-18 951,628

Jan-19 954,941

Feb-19 841,299

Mar-19 926,649

Apr-19 924,797

May-19 935,857

Jun-19 835,706

Jul-19 976,132

Aug-19 974,620

Sep-19 933,365

Oct-19 887,030

Nov-19 757,580

Dec-19 635,812

Jan-20 566,464

Feb-20 707,897

Mar-20 791,982

Apr-20 934,675

May-20 869,725

Jun-20 1,082,594

Jul-20 1,028,706

Aug-20 1,039,254

Sep-20 1,024,724

Oct-20 909,751

Nov-20 777,952

Dec-20 701,016

Jan-21 582,825

Average 860,370

1 http://bepi.mpob.gov.my/index.php/en/?option=com_content&view=category&id=106
14

Bursa Malaysia Crude Palm Oil Futures

The new USD Malaysian Crude Palm Oil Day 15th Bullet Futures and USD Malaysian Crude Palm Oil Day 

10th Financial Options contracts cash settle to the Bursa Malaysia Derivatives Berhad (BMD) Crude Palm 

Oil (FCPO) futures contract. The final settlement price for the USD Malaysian Crude Palm Oil Day 15th

Bullet Futures shall be based on the settlement price for the third forward month BMD FCPO contract on 

the 15th calendar day of the month. If such day is not a BMD business day, the settlement price on the 

previous BMD business day shall be used. The final settlement price for the USD Malaysian Crude Palm 

Oil Day 10th Financial Options shall be based on the settlement price for the third forward month BMD 

FCPO contract on the 10th calendar day of the month. If such day is not a BMD business day, the settlement 

price on the previous BMD business day shall be used. The final settlement prices shall be converted into 

USD and rounded to the nearest $0.25 using the Kuala Lumpur USD/MYR Reference Rate.

The FCPO contract is a liquid, physically-delivered futures contract and is the same size (25 metric tons) 

as the new USD Malaysian Crude Palm Oil Day 15th Bullet Futures and USD Malaysian Crude Palm Oil 

Day 10th Financial Options contracts. BMD amended its settlement procedures for FCPO futures on 

December 3, 2012.

2 Prior to that date, daily settlement was based on the last traded price within the final 

one-minute interval prior to market close provided that the last traded price fell within the bid-ask spread. 

On December 3, 2012, BMD adopted a Volume Weighted Average Price (VWAP) settlement process, 

similar to the process used by the Exchange for settling grain and oilseed contracts listed on The Board of 

Trade of the City of Chicago, Inc. (“CBOT”), for all actively traded months including the third forward month 

underlying the proposed calendar future. Currently, settlement of the third forward BMD FCPO futures 

contract is a VWAP of trades executed on CME Globex between 17:59:00 – 18:00:00 Malaysia Time. The 

VWAP was implemented to prevent end-of-day price manipulation that can distort the daily settlement price.

BMD FCPO contracts averaged 996,629 contracts, or 24,915,725 metric tons per month during the 36-

month period from February 2018 to January 2021.

Table 2. Monthly Volume of BMD Crude Palm Oil Futures 

Units: number of contracts

Source: Bursa Malaysia3

Month Volume

May-17 966,550

Jun-17 879,070

Jul-17 851,419

Aug-17 1,094,771

Sep-17 1,035,571

Oct-17 999,288

Nov-17 999,029

Dec-17 881,475

Jan-18 1,010,493

Feb-18 678,709

Mar-18 1,026,249

Apr-18 841,954

May-18 765,264

Jun-18 914,149

2https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/content_entry5bb58dd75f36ca0c2caccbd4/5bb5a

0b05f36ca0c2cacd938/files/circular-updates-271112-1.pdf?1562995715

3 https://www.bursamalaysia.com/market_information/market_statistic/derivatives
15

Jul-18 1,035,720

Aug-18 852,195

Sep-18 731,180

Oct-18 871,091

Nov-18 965,666

Dec-18 778,687

Jan-19 671,019

Feb-19 582,039

Mar-19 943,407

Apr-19 864,153

May-19 804,623

Jun-19 727,134

Jul-19 998,734

Aug-19 998,582

Sep-19 879,947

Oct-19 1,018,802

Nov-19 1,212,871

Dec-19 1,002,585

Jan-20 1,260,693

Feb-20 1,436,959

Mar-20 1,661,570

Apr-20 1,197,634

May-20 770,901

Jun-20 1,129,534

Jul-20 1,156,841

Aug-20 995,029

Sep-20 1,282,439

Oct-20 1,257,873

Nov-20 1,346,714

Dec-20 1,110,497

Jan-21 1,359,177

Average 996,629

Because the new USD Malaysian Crude Palm Oil Day 15th Bullet Futures and USD Malaysian Crude Palm 

Oil Day 10th Financial Options contracts settle against the third-forward BMD FCPO contract, below are the 

monthly volume figures for only the third-forward month. Third forward month BMD FCPO contract 

averaged 425,896 contracts, or 10,647,400 metric tons per month during the 36-month period from 

February 2018 to January 2021.
16

Table 3. Monthly Volume of Third Forward month BMD Crude Palm Oil Futures 

Units: number of contracts

Source: Bursa Malaysia4

Month Volume

Feb-18 307,258 

Mar-18 448,869 

Apr-18 356,095 

May-18 294,292 

Jun-18 326,873 

Jul-18 387,313 

Aug-18 348,128 

Sep-18 313,412 

Oct-18 376,888 

Nov-18 412,215 

Dec-18 338,556 

Jan-19 291,669 

Feb-19 270,605 

Mar-19 393,256 

Apr-19 382,675 

May-19 371,398 

Jun-19 345,237 

Jul-19 416,863 

Aug-19 449,444 

Sep-19 372,303 

Oct-19 478,218 

Nov-19 530,241 

Dec-19 424,458 

Jan-20 521,259 

Feb-20 573,728 

Mar-20 677,528 

Apr-20 512,121 

May-20 334,243

Jun-20 479,178

Jul-20 503,110

Aug-20 449,509

Sep-20 559,366

Oct-20 556,034

Nov-20 545,616

Dec-20 479,611

Jan-21 504,687

Average 425,896

4 https://www.bursamalaysia.com/market_information/market_statistic/derivatives
17

Analysis of Deliverable Supply

Malaysian Crude Palm Oil Market

Appendix C to part 38 of the Commission’s regulations defines deliverable supply as “the quantity of the 

commodity meeting the contract’s delivery specifications that can reasonably be expected to be readily 

available to short traders and saleable by long traders at its market value in normal cash marketing channels 

at the derivative contract’s delivery points during the specified delivery period, barring abnormal movement 

in interstate commerce.”

The Exchange based its analysis of deliverable supply on crude palm oil production in peninsula Malaysia. 

Additionally, the Exchange determined not to adjust the deliverable supply estimates based on the spot 

availability because spot market liquidity is not restrictive. In addition, according to the Malaysia Palm Oil 

Board, long-term agreements are extremely rare in Malaysian crude palm oil markets, and they do not 

believe any stocks would be precluded from delivery because of long-term agreements. There is also no 

evidence that ownership of stocks and/or storage would negatively impact deliverable supply; the market 

appears to be competitive with multiple market participants. For example, here is a list of firms approved 

by BMD to deliver on their FCPO futures contract. Note that this is just a partial list of total market 

participants.

https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/assets/5bb57de65f36ca0c341f044d/Li

st_of_approved_PTIs_for_CPO_delivery_and_CPKO_delivery.pdf

We have used the data for the period February 2018 - January 2021. Based on the production data by the 

Malaysia Palm Oil Board, Peninsula Malaysia palm oil production averaged 860,370 metric tons per month. 

This results in monthly deliverable supply of about 774,333 metric tons (30,973 contract equivalents), 

assuming ten percent of the production does not meet BMD FCPO delivery specifications. The proposed 

spot month limits for the USD Malaysian Crude Palm Oil Day 15th Bullet Futures and the USD Malaysian 

Crude Palm Oil Day 10th Financial Options are 3,000 contracts, or 9.7% of the deliverable supply.

FX Conversion

The USD Malaysian Crude Palm Oil Calendar futures contract (“Calendar Futures Contract) cash settles to 

the BMD FCPO futures price converted into USD.

Bank Negara Malaysia, the central bank of Malaysia, publishes daily FX turnover. Over the year of 2020, 

the average daily FX turnover was about 11.71 billion USD5, or 351.3 billion a month for a 30-day month. 

Current BMD FCPO prices are less than $800 per ton. Someone holding the recommended spot position 

limit of 3,000 contracts (75,000 metric tons) at this price would have exposure of $60 million (75,000 * 

$800). This exposure represents about 1/50th of one percent of the Malaysia FX market during a month.

5 https://www.bnm.gov.my/daily-fxturnover?p_p_id=bnm_fx_rate_display_portlet&p_p_lifecycle=0&p_p_state=normal&p_p_mode=view&_bnm_fx_rate_

display_portlet_monthStart=0&_bnm_fx_rate_display_portlet_yearStart=2020&_bnm_fx_rate_display_portlet_month

End=1&_bnm_fx_rate_display_portlet_yearEnd=2021