SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 23-119 (1 of 4) 

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

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): 05/02/23 Filing Description: Amendments to CME, COBT, 

NYMEX/COMEX Rule 588.D. (“Alternative Resolution by Agreement of Parties”) in 

Connection with Trade Cancellations and Price Adjustments 

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: 588.D.

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

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Christopher Bowen

Managing Director and Chief Regulatory Counsel

Legal Department

May 2, 2023

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. Amendments to CME, COBT, NYMEX/COMEX 

Rule 588.D. (“Alternative Resolution by Agreement of Parties”) in Connection with 

Trade Cancellations and Price Adjustments.

CME Submission No. 23-119 (1 of 4)

Dear Mr. Kirkpatrick:

Pursuant to Commodity Futures Trading Commission (“CFTC” or “Commission”) Regulation 40.6(a), 

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”) (collectively, the 

“Exchanges”) hereby certify to the Commission amendments to CME CBOT, and NYMEX/COMEX Rule 

588.D. (“Alternative Resolution by Agreement of Parties”) to clarify the alternative resolutions or actions that 

may be taken by the parties to a trade in the event that a trade outside of a contract’s no cancellation ranges 

(or, Non-Reviewable Range (“NRR”)) is affected by a price adjustment or cancellation by the Exchanges’

Global Command Center (“GCC”) in accordance with Rule 588.C. (“Price Adjustments and Cancellations”) 

(collectively, the “Rule Amendments”) effective on May 17, 2023.

Rule 588.D. codifies the alternative actions that may be taken in the event that a trade is outside of a 

contract’s NRR on the CME Globex electronic trading platform (“CME Globex”).

Upon review of the alternative resolutions that may be taken with agreement of the parties in connection with 

trade cancellations and adjustments by the GCC, the Exchanges determined that: 1) the option to transfer 

positions was not an appropriate action to resolve a transaction that was executed in error outside of the 

NRR pursuant to Rule 588.D. and; 2) no alternative action pursuant to Rule 588.D. may be taken if the 

transaction is inside the NRR.

All transfers are currently subject to the provisions of Rule 853. (“Transfers of Trades and Customer 

Accounts”). Additionally, errors in execution of orders on CME Globex must be handled in accordance with 

CME Rule 527. (“Outtrades, Errors and Mishandling of Orders”) and CBOT, NYMEX/COMEX Rule 527. 

(“Errors and Mishandling of Orders”).

The Exchanges reviewed the designated contract market 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: 

Prevention of Market Disruption: The Rule Amendments provide the alternative resolutions or 

actions that may be taken by the parties to a trade in the event that a trade outside of a contract’s

NRR to prevent market disruption. Therefore, the Rule Amendments are in compliance with this 

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

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Availability of General Information: The Rule Amendments will be posted on the CME Group 

website in satisfaction of this Core Principle. In addition, the Exchanges will issue a Special 

Executive Report (“SER”) to the marketplace in advance of the amendments to Rule 588.D. 

becoming effective, which will also be posted on the CME Group website.

Pursuant to Section 5c(c) of the Act and CFTC Regulation 40.6(a), the Exchanges certify that the Rule 

Amendments comply with the Act and regulations thereunder. There were no substantive opposing views 

to this proposal.

The Exchanges certify that this submission has been concurrently posted on the Exchanges’ website at 

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

If you require any additional information regarding this submission, please contact the undersigned at 

212.299.2200 or via email at CMEGSubmissionInquiry@cmegroup.com.

Sincerely, 

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachment: Exhibit A: CME, CBOT, and NYMEX/COMEX Rule 588.D. (“Alternative Resolution by 

Agreement of Parties”) (blackline format)
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EXHIBIT A

CME, CBOT and NYMEX/COMEX Rulebooks

Chapter 5

(“Trading Qualifications and Practices”)

 (additions underscored; deletions struck through)

***

588. TRADE CANCELLATIONS AND PRICE ADJUSTMENTS

[Sections A.-C. remain unchanged.]

588.D. Alternative Resolution by Agreement of Parties 

If the GCC determines that the price of a trade is inside the Non-Reviewable Range, no alternative action 

may be taken under this Rule by the parties to the trade.

With the approval of the GCC, parties to a trade that is price adjusted may instead mutually agree to 

cancel the trade. With the approval of the GCC, parties to a trade that is cancelled may instead mutually 

agree to price adjust the trade to a price consistent with the adjustment provisions of Section C.

Parties to a trade that is cancelled or price adjusted may mutually agree to a cash adjustment provided 

that such adjustments are reported to the GCC and the parties maintain a record of the adjustment.

An executed trade may not be reversed via transfer except where such trade is determined by GCC to 

be outside of the Non-Reviewable Range but not reported timely, subject to agreement of the parties and 

approval of the GCC. Any such transfer must occur at the original trade price and quantity; however the 

parties may mutually agree to a cash adjustment.

A trade that is not cancelled may not be reversed via a prearranged offsetting transaction unless such 

transactions are permitted and effected in accordance with Rule 539.C.

[Sections E.-H. remain unchanged.]