SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 23-279

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

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): 08/01/23 Filing Description: Amendments to Rule 35XA01.C. 

(“Minimum Fluctuation”) of all E-mini and Micro E-mini Options on Standard and Poor's 

500 Stock Price Index Futures for Trades Executed on CME Globex

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: See filing.

Rule Numbers: See filing.
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

August 1, 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, D.C. 20581

Re: CFTC Regulation 40.6(a) Certification. Amendments to Rule 35XA01.C. (“Minimum 

Fluctuation”) of all E-mini and Micro E-mini Options on Standard and Poor's 500 

Stock Price Index Futures Contracts to Vary the Minimum Price Increment 

Threshold by Price Level for Trades Executed on CME Globex. 

CME Submission No. 23-279

Dear Mr. Kirkpatrick:

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

Commission (“CFTC” or “Commission”) will amend the minimum price increment behavior of all Options on 

E-mini and Micro E-mini Standard and Poor’s 500 Stock Price Index Futures contracts (the "Contracts") for 

all trades executed on the CME Globex electronic trading platform (“CME Globex”) as noted in Table 1. 

below effective on Sunday, October 1, 2023 for trade date Monday, October 2, 2023. 

Specifically, the Exchange will amend Rule 35XA01.C. (“Minimum Fluctuations”) to vary the minimum price 

increment threshold by price level of the Contracts from 5.00 Index points to 10.00 Index points for trading 

on CME Globex (collectively, the “Rule Amendments”). Trades submitted for clearing via CME ClearPort 

will remain unchanged and will continue to be 0.05 Index points, regardless of the price level.

Table 1.

Contract Title Rulebook 

Chapter

Commodity 

Code

CME

ClearPort

Minimum 

Price 

Increment –

All Price 

Levels

(Unchanged)

Current 

CME Globex 

Minimum 

Price 

Increment

Threshold by 

Price Level

Amended

CME Globex 

Minimum 

Price 

Increment

Threshold by 

Price Level

Options on E-mini Standard and 

Poor's 500 Stock Price Index 

Futures

358A ES

0.05

0.05 Index points 

with trades at 

price levels equal 

to or less than 

5.00

0.05 Index points 

with trades at 

price levels equal 

to or less than 

10.00

Monday Weekly Options on E-mini 

Standard and Poor's 500 Stock 

Price Index Futures - Week 1-5 

(European-Style)

358A E1A-E5A
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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Tuesday Weekly Options on Emini Standard and Poor's 500 

Stock Price Index Futures - Week 

1-5 (European-Style)

358A E1B-E5B

0.25 Index points 

with trades at 

price levels 

greater than 5.00

0.25 Index points 

with trades at 

price levels 

greater than 10.00

Wednesday Weekly Options on Emini Standard and Poor's 500 

Stock Price Index Futures - Week 

1-5 (European-Style)

358A E1C-E5C

Thursday Weekly Options on Emini Standard and Poor's 500 

Stock Price Index Futures - Week 

1-5 (European-Style)

358A E1D-E5D

Weekly Options on E-mini 

Standard and Poor's 500 Stock 

Price Index Futures - Week 1-4 

(European-Style)

358A EW1-EW4

Options on E-mini Standard and 

Poor's 500 Stock Price Index 

Futures - End-of-Month 

(European-Style)

358A EW

Options on Micro E-mini Standard

and Poor’s 500 Stock Price Index 

Futures

353A MES

Monday Weekly Options on Micro 

E-mini Standard and Poor’s 500 

Stock Price Index Futures – Week 

1-5 (European-Style)

353A X1A-X5A

Tuesday Weekly Options on Micro 

E-mini Standard and Poor’s 500 

Stock Price Index Futures – Week 

1-5 (European-Style)

353A X1B-X5B

Wednesday Weekly Options on 

Micro E-mini Standard and Poor’s 

500 Stock Price Index Futures –

Week 1-5 (European-Style)

353A X1C-X5C

Thursday Weekly Options on 

Micro E-mini Standard and Poor’s 

500 Stock Price Index Futures –

Week 1-5 (European-Style)

353A X1D-X5D

Weekly Options on Micro E-mini 

Standard and Poor’s 500 Stock 

Price Index Futures - Week 1-4 

(European-Style)

353A EX1-EX4

Options on Micro E-mini Standard 

and Poor’s 500 Stock Price Index 

Futures - End-of-Month 

(European-Style)

353A EX

By way of background, last year the Exchange amended the minimum price increment for transactions submitted for 

clearing via CME ClearPort for all Options on E-mini Standard & Poor’s 500 Stock Price Index Futures, Options on Emini Nasdaq-100 Index Futures, and Options on E-mini Russell 2000 Index Futures Contracts (see CME Submission

No. 22-237 dated July 20, 2022).

Market participants have requested additional granularity for trading on CME Globex in an effort to enhance 

liquidity. Given the structure of the market, the Rule Amendments will enable greater liquidity and increase 

activity of the Contracts. Specifically, the Rule Amendments will modify the threshold under which differing 
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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minimum price increments are applicable with the intent to avail market participants greater opportunity for 

additional price discovery. Recently, the marketplace has evolved where an increasing level of market focus 

and volume has occurred in shorter days-to-expiry (DTE) options. The Rule Amendments are designed to

accommodate customer requests for increased granularity of trading over these maturities. That is, the

minimum price increment modification will accomplish the objective of increasing price discovery by 

allowing market participants to transact at more precise price levels for diverse option instruments of varying 

maturity.

Exhibit A below provides the Rule Amendments in blackline format. 

The Exchange 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: 

Availability of General Information: The Exchange will release a Special Executive Report 

(“SER”) regarding the Rule Amendments. The SER will also be posted on the CME Group website.

Daily Publication of Trading Information: CME will continue to publish contract trading volumes, 

open interest levels, and price information daily on its website and through quote vendors for the 

Contracts.

Prevention of Market Disruption: Trading in the Contracts will continue to be subject to the rules 

of the Exchange, which include prohibitions on manipulation, price distortion, and disruption to the 

cash settlement process.

Pursuant to Section 5c(c) of the Act and CFTC Regulation 40.6(a), the Exchange hereby certifies that the 

Rule Amendments comply 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

Attachment: Exhibit A - Amendments to CME Chapter 353 and CME Chapter 358 (blackline format) 
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Exhibit A

(additions underscored; deletions struck through)

Chapter 353A

Options on Micro E-mini Standard and Poor’s 500 Stock Price IndexTM Futures

***

353A01. OPTIONS CHARACTERISTICS 

353A01.A. Contract Months, Trading Hours, and Trading Halts 

Options shall be listed for expiration on such dates and shall be scheduled for trading during such 

hours as may be determined by the Exchange, provided that there shall be no trading in options when 

trading is halted in the Primary Futures Contract Month pursuant to Rule 35802.I.

In accordance with Rule 35802.I. the Exchange shall determine, in its sole discretion, the futures 

delivery month that represents such Primary Futures Contract. 

353A01.B. Trading Unit

The trading unit shall be an option to buy in the case of a call, or to sell in the case of a put, one (1) 

Micro E-mini S&P 500 Index futures contract (Chapter 353). 

353A01.C. Minimum Fluctuations 

Option prices shall be quoted in Index points. Each Index point shall represent $5.00 per option 

contract.

Subject to Rule 353A01.C.1., the minimum price fluctuation shall be 0.25 Index points (equal to $1.25 

per option contract), for trades executed on CME Globex electronic trading platform, provided that

trades at price levels equal to or less than 105.00 Index points may occur at price levels that are 

integer multiples of 0.05 Index points (equal to $0.25 per option contract), and provided that trade 

may occur at a price level of 0.05 Index points irrespective of whether such trade results in the 

liquidation of positions for both parties to such trade. For transactions submitted for clearing via CME 

ClearPort, the minimum price increment shall be 0.05 Index points, regardless of the price level.

1. Option Spreads and Combinations

Any option contract that trades as a component of a spread or combination shall be traded at a price 

that conforms to the applicable minimum price fluctuation as set forth in this Rule, provided that for 

any option spread or combination that trades at a net premium of 105.00 Index points or less, each 

option contract comprised within such spread or combination may trade in price increments of 0.05 

Index points.

[Remainder of Rule unchanged.] 

Chapter 358A

Options on E-mini® Standard and Poor's 500 Stock

Price Index Futures

***

358A01. OPTIONS CHARACTERISTICS

358A01.A. Contract Months, Trading Hours, and Trading Halts

Options shall be listed for expiration on such dates and shall be scheduled for trading during such 

hoursas may be determined by the Exchange, provided that there shall be no trading in options 

when tradingis halted in the Primary Futures Contract Month for E-mini S&P 500 Index futures 

pursuant to Rule 35802.I.

In accordance with Rule 35802.I. the Exchange shall determine, in its sole discretion, the futures

delivery month that represents such Primary Futures Contract.

358A01.B. Trading Unit

The trading unit shall be an option to buy in the case of a call, or to sell in the case of a put, one 

E-mini S&P 500 Index futures contract (Chapter 358).
5

358A01.C. Minimum Fluctuations

Option prices shall be quoted in Index points. Each Index point shall represent $50.00 per option

contract.

Subject to Rule 358A01.C.1., the minimum price fluctuation shall be 0.25 Index points (equal to 

$12.50 per option contract), for trades executed on CME Globex electronic trading platform, 

provided that trades at price levels equal to or less than 105.00 Index points may occur at price 

levels that are integer multiples of 0.05 Index points (equal to $2.50 per option contract), and 

provided that trade may occur at a price level of 0.05 Index points irrespective of whether such 

trade results in the liquidation of positions for both parties to such trade. For transactions submitted 

for clearing via CME ClearPort, the minimum price increment shall be 0.05 Index points, regardless 

of the price level.

1. Option Spreads and Combinations

Any option contract that trades as a component of a spread or combination shall be traded at

a pricethat conforms to the applicable CME Globex minimum price fluctuation as set forth in this 

Rule, provided that for any option spread or combination that trades at a net premium of 105.00 

Index points or less, each option contract comprised within such spread or combination may trade 

in price increments of 0.05 Index points. For spread and combination transactions submitted for 

clearing via CME ClearPort, the minimum price increment shall be 0.05 Index points, regardless 

of the price level.

 [Remainder of Rule unchanged.]