SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-534

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 

Ultra Bond 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 Ultra Bond Futures Market Maker Program 

CBOT Submission No. 23-534

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 Ultra Bond 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 underscored and deletions 

overstruck.

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

Exchange Act (“CEA”). 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. 23-534 in any related 

correspondence.

Sincerely,

/s/ Timothy Elliott

Managing Director and Chief Regulatory Counsel 

Attachment: Exhibit 1
EXHIBIT 1

Ultra Bond Futures Market Maker Program 

Program Purpose

The purpose of the Program is to incent market makers to enhance liquidity in the product listed below. A 

more liquid contract benefits all participants in the market.

Product Scope

Ultra U.S. Treasury Bond Futures (“UBE”) traded on Globex® (“Product”).

Eligible Participants

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

CBOT members. Participants are not eligible to participate in other programs that include the Product.

New participants are required to submit a Bid Sheet to the Exchange which is used to determine 

eligibility. Exchange staff will use a variety of factors in determining whether or not a prospective market 

maker is selected to participate in the Program, including past performance in the Product and similar 

contracts, the ability to commit to and maintain at least the required quoting obligations, and the ability to 

meet certain average daily volume requirements in the Product. Notwithstanding the foregoing, the 

Exchange may, from time to time, add to or subtract from the factors listed above as it deems necessary.

Program Term

Start date is January 10, 2010. End date is January 31, 2024 January 31, 2025.

Hours

RTH (7:00AM – 4:00PM CT).

Obligations

Quoting Requirements: In order to be eligible to receive incentives, participants must quote in the Product

during at least sixty-five percent (65%) of the time from 7:00AM – 4:00PM Chicago Time, continuous twosided markets for the front month outright contract in the Product in accordance with the table below.

Tier

Spread

Width

(32nds)

Width 

(Ticks)

(Minimum Price 

Increment “MPI”)

Size 

(2-Sided)

Tier 1 3.0/32nd

3

3 6 10

Tier 2 2.0/32nd

2

2 10 20

Tier 3 2.0/32nd

2

2 18 30
Extreme Events Clause: If 10-Year CME Group Volatility Index (CVOL) is 105 170 or greater for at least

three (3) days in a given calendar month, the obligations below may be implemented. Participants will be 

given notice that the Extreme Events Clause has taken effect.

(i) Bid/Ask Spread: Increased by 1 tick Width: Tier 1 - Increased by 2/32nds (2 MPIs), Tiers 

2 and 3 - Increased by 1/32nd (1 MPI)

If 10-Year CVOL is 230 or greater on any day in a given calendar month, the Exchange may reduce the 

time-in-market obligations 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.

Holiday Date

Presidents’ Day 2/20/2023

Good Friday 4/7/2023

Memorial Day 5/29/2023

Juneteenth 6/19/2023

Independence Day 7/4/2023

Labor Day 9/4/2023

Columbus Day 10/9/2023

Veterans Day (Observed) 11/10/2023

Thanksgiving 11/23/2023

Post-Thanksgiving 11/24/2023

Christmas 12/25/2023

New Year’s 1/1/2024

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

Presidents’ Day 2/19/2024

Good Friday 3/29/2024

Memorial Day 5/27/2024

Juneteenth 6/19/2024

Independence Day 7/4/2024

Labor Day 9/2/2024

Columbus Day 10/14/2024

Veterans Day 11/11/2024

Thanksgiving 11/28/2024

Post-Thanksgiving 11/29/2024

Christmas 12/25/2024

New Year’s 1/1/2025

Birthday of Dr. Martin Luther King, Jr. 1/20/2025
Incentives

Tier 1

Fee Discounts: Upon meeting all Program obligations, as determined by the Exchange, participants will 

be eligible to receive fee discounts of $0.07 $0.06 for all volume traded in the Product on Globex®.

Tier 2

Fee Discounts: Upon meeting all Program obligations, as determined by the Exchange, participants will 

be eligible to receive a fee discount of $0.14 $0.13 for all volume traded in the Product on Globex®. 

Fee Credits: Upon meeting all Program obligations, as determined by the Exchange, participants will be 

eligible to receive a $0.15 fee credit per contract traded in the Product subject to a monthly cap of 

$30,000 $20,000. 

Tier 3

Fee Discounts: Upon meeting all Program obligations, as determined by the Exchange, participants will 

be eligible to receive a fee discount of $0.14 $0.13 for all volume traded in the Product on Globex®. 

Fee Credits: Upon meeting all Program obligations, as determined by the Exchange, participants will be 

eligible to receive a $0.15 fee credit per contract traded in the Product subject to a monthly cap of 

$50,000.

Monitoring and Termination of Status

The Exchange shall retain the right to revoke participant status if it concludes from review that a 

participant no longer meets the eligibility requirements or fails to meet the obligations of the Program.

If the Exchange determines that a participant has not met its quoting obligations during two (2) calendar 

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

obligations, the participant will be eligible to receive the incentives for each 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 incentives for that applicable month. Participants 

must meet quoting obligations for all subsequent months in order to continue to receive the incentives.

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

additional month may be removed from the Program.