December 26, 2023

Christopher J. Kirkpatrick

Secretary

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: Cboe Digital Exchange, LLC Rule Certification

Submission Number CDE-2023-19E

Dear Mr. Kirkpatrick:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (“Act”), and 

Regulation 40.6(a) of the regulations promulgated by the Commodity Futures Trading Commission 

(“CFTC” or “Commission”) under the Act, Cboe Digital Exchange, LLC (“CDE” or “Exchange”) 

hereby submits the Futures Market Maker Incentive Program (“Program”). The Program is set forth 

in a segregated confidential Exhibit A to this submission. The Program will become effective on 

January 11, 2024. 

CDE notes that Exchange Rule 517 permits the Exchange to establish programs that 

provide Trading Privilege Holders with financial incentives for meeting trading volume thresholds

as may be established by the Exchange. 

The Exchange intends to offer for trading digital asset futures on a margin basis beginning 

in January 2024. Under the Program, the Exchange will make available a cash incentive pool to be 

allocated pro-rata based on each eligible Program Participant’s volume, if they meet certain market 

making performance metrics each month in the Exchange’s margined futures contracts.

1 The 

monthly performance metrics include specific two-sided quoting requirements for certain size, 

spread, and time in the market per contract expiration. 

The Program is designed to encourage CDE’s Trading Privilege Holders to make tight, 

liquid markets in new products launched on the Exchange. Participation in the Program will 

strengthen the quality of price discovery and depth of the order book and increase liquidity in 

margined futures contracts once listed on the Exchange. The Program is intended to begin on 

January 11, 2024 upon the launch of margined-futures products on the Exchange. The Program 

details are reflected in Exhibit A, separately submitted to Commission staff pursuant to a FOIA 

confidential treatment request. The Exchange may determine to modify the term of the Program, 

allow the Program to expire, or replace or modify the Program at any time.

Core Principle Compliance

CDE believes that the Programs are consistent with the Designated Contract Market 

1 Physically-settled bitcoin (“BTC) and Ether (“ETH”) futures, and financially-settled bitcoin (“FBT”) and 

Ether (“FET”) futures. 
(“DCM”) Core Principles under Section 5 of the Act. In particular, CDE believes that the Programs

are consistent with:

• DCM Core Principle 2 (Compliance with Rules) for the following reasons:

o All Trading Privilege Holders, including all eligible Program Participants, are 

obligated by CDE Rule 314 (Application of Rules and Consent to Exchange 

Jurisdiction) to comply with Exchange Rules. Exchange Rules include prohibitions 

against fraudulent, non-competitive, unfair, and abusive trading practices, and the 

Exchange monitors trading in all futures contracts for violative activity such as 

wash trading, manipulative trading, and market abuse; and

o The Program will be open to all Trading Privilege Holders to apply to participate 

as a Program Participant and will offer the same pro-rata cash pool incentive 

structure for eligible Trading Privilege Holders;

• DCM Core Principle 4 (Prevention of Market Disruption) because CDE Rules prohibit 

participants, including all eligible Program Participants, from manipulating the market in, 

disrupting the orderly functioning of the market in, or creating a condition in which prices 

do not or will not reflect fair market values in CDE futures contracts, and CDE enforces 

compliance with such CDE Rules; 

• DCM Core Principle 9 (Execution of Transactions) because the Program will not impact 

order execution priority or otherwise give any Program Participant an execution advantage. 

All CDE futures contracts are listed for trading in the open and competitive market, and 

the incentives under the Program will not adversely impact price discovery in the 

centralized market;

• DCM Core Principle 12 (Protection of Markets and Market Participants) because the CDE 

Rules include prohibitions against abusive practices, including abusive practices 

committed by a party acting as an agent for a participant, and promote fair and equitable 

trading, all of which will apply in relation to all activity in participation in the Program; 

and

• Core Principle 16 (Conflicts of Interest) because CDE has policies and procedures in place 

that are designed to minimize conflicts of interest and establish a process for resolving 

conflicts of interest, and enforces such policies and procedures. Specifically, the policies 

and procedures ensure that all CDE Trading Privilege Holders, including all Program 

Participants, are treated in the same manner; subject to the same access requirements and 

fees, and receive or have access to the same information. CDE may not and does not share 

confidential information with any Program Participant about planned initiatives that would 

provide a Program Participant with an advantage or inside information in relation to other 

TPHs or market participants, and as such, Program Participants are not involved in any part 

of the implementation of or selection process for the Program. 

The Program will provide meaningful incentives to eligible Program Participants to engage 

on CDE’s futures markets and will facilitate and accelerate the growth of such markets. The 

Exchange believes that the Program will enhance the price discovery process by promoting 

increased trading volume and liquidity in futures products traded on CDE’s centralized market, 

thereby encouraging participation and growing quality markets on the Exchange, particularly as the 

Exchange introduces additional products. Accordingly, CDE believes that the impact of the 
Program will be beneficial to the public and market participants.

Public Information

We have concurrently posted a notice and copy of this submission on the Exchange’s 

website at https://www.cboedigital.com/regulation/exchange-notices/ under “CFTC Submissions.”

Opposing Views

We are not aware of any opposing views to this self-certification.

Certification

Cboe Digital Exchange, LLC hereby certifies to the Commodity Futures Trading 

Commission, pursuant to the procedures set forth in Commission regulation §40.6, that this 

submission complies with the Commodity Exchange Act, as amended, and the regulations 

promulgated thereunder.

If you have any questions regarding this submission, please contact the undersigned at the 

information below.

Sincerely, 

/s/ Rebecca Tenuta

Rebecca Tenuta

Senior Counsel

rtenuta@cboe.com

(773) 485-7926