SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 17-391

Organization: Chicago Mercantile Exchange Inc. “CME SEF”

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): 10/16/17 Filing Description: Delisting of the Transco Zone 6 

Natural Gas (Platts IFERC) Fixed Price Swap Contract Without Open Interest.

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 212 299 2299 christopher.bowen@cmegroup.com cmegroup.com

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Christopher Bowen 

Managing Director and Chief Regulatory Counsel

Legal Department

October 16, 2017

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. Notification Regarding Delisting of the 

Transco Zone 6 Natural Gas (Platts IFERC) Fixed Price Swap Contract Without Open 

Interest.

CME SEF Submission No. 17-391

Dear Mr. Kirkpatrick:

The Swap Execution Facility Division of Chicago Mercantile Exchange Inc. (“CME SEF”) is notifying the 

Commodity Futures Trading Commission (“CFTC” or “Commission”) that it is self-certifying the delisting of 

the Transco Zone 6 Natural Gas (Platts IFERC) Fixed Price Swap contract (the “Contract”), effective 

immediately as noted in the table below. 

Contract Title Rulebook

Chapter

Commodity

Code

Transco Zone 6 Natural Gas (Platts IFERC) Fixed Price Swap 11 XZW

There is no open interest in the Contract. 

Appendix A provides amendments to the applicable SEF Rulebook Chapter in blackline format.

The Exchange reviewed the swap execution facility core principles (“Core Principles”) as set forth in the 

Commodity Exchange Act (“CEA” or “Act”) and identified that the following Core Principles may be impacted 

by this initiative as follows:

• Emergency Authority: There is no open interest in the Contract, and therefore there will be no 

market disruption related to its delisting. 

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

delisting of the Contract complies with the Act, including regulations under the Act. There were no 

substantive opposing views to this proposal.

CME SEF certifies that this submission has been concurrently posted on the Exchange’s website at

http://www.cmegroup.com/market-regulation/rule-filings.html.
300 Vesey Street New York, NY 10282 T 212 299 2200 F 212 299 2299 christopher.bowen@cmegroup.com cmegroup.com

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Should you have any questions concerning the above, please e-mail 

CMEGSubmissionInquiry@cmegroup.com or contact the undersigned at (212) 299-2200. 

Sincerely,

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel

Attachment: Appendix A - Amendments to CME SEF Rulebook Chapter 11 (“Transco Zone 6 Natural 

Gas (Platts IFERC) Fixed Price Swap (XZW)”)

 
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Appendix A

Amendments to SEF Rulebook Chapter

Chapter 11: Transco Zone 6 Natural Gas (Platts IFERC) Fixed Price Swap (XZW)

11100. SCOPE OF CHAPTER 

The provisions of these rules shall apply to all swap contracts bought or sold on the CME SEF for cash settlement 

based on the Floating Price (as defined below). The procedures for trading, clearing and cash settlement of this 

contract, and any other matters not specifically covered herein shall be governed by the general rules of the CME 

SEF or other rules as referred to therein. 

11101. CONTRACT SPECIFICATIONS 

The Floating Price for each contract month is equal to the price assessment, which is the bidweek (average) price for 

Transco Zone 6 N.Y. published in the Platts’ Inside FERC (“IFERC”) Gas Market Report under the “Northeast” 

heading in the “Index” column of the table entitled "Market Center Spot Gas Prices" for the corresponding contract 

month. 

11102. TRADING SPECIFICATIONS 

The number of months open for trading at a given time shall be determined by CME SEF.

11102.A. Trading Schedule 

The hours of trading for this contract shall be determined by CME SEF. 

11102.B. Trading Unit 

The contract quantity shall be 2,500 million British thermal units (“MMBtu”). Each swap contract shall be valued as 

the contract quantity multiplied by the settlement price. 

11102.C. Price Increments

Prices shall be quoted in U.S. dollars and cents per MMBtu. The minimum price fluctuation shall be $0.0001 per 

MMBtu. 

11102.D. Termination of Trading 

The contract shall terminate on the last business day of the month prior to the contract month. 

11103. 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 Floating Price. The final settlement price will be the Floating Price calculated for 

each contract month. 

11104. CLEARING GUARANTEE 

No order or trade in this contract may be entered or executed upon any CME SEF platform unless a NYMEX Clearing 

Member, as the term is defined under NYMEX Rules, guarantees and assumes complete responsibility for the financial 

obligations of the participant on whose behalf such order or trade is entered.

11105. DISCLAIMER 

NEITHER CHICAGO MERCANTILE EXCHANGE, INC. (“CME”), ITS AFFILIATES NOR PLATTS, A DIVISION OF 

THE MCGRAW-HILL COMPANIES, INC. (“PLATTS”), GUARANTEES THE ACCURACY OR COMPLETENESS OF 

THE PLATTS PRICE ASSESSMENT OR ANY OF THE DATA INCLUDED THEREIN. CME, ITS AFFILIATES OR 

PLATTS MAKE NO WARRANTIES, EXPRESS OR IMPLIED, AS TO THE RESULTS TO BE OBTAINED BY ANY 

PERSON OR ENTITY FROM USE OF THE PLATTS PRICE ASSESSMENT, TRADING AND/OR CLEARING 

BASED ON THE PLATTS PRICE ASSESSMENT, OR ANY DATA INCLUDED THEREIN IN CONNECTION WITH 

THE TRADING AND/OR CLEARING OF THE CONTRACT, OR, FOR ANY OTHER USE. 

CME, ITS AFFILIATES AND PLATTS MAKE NO WARRANTIES, EXPRESS OR IMPLIED, AND HEREBY DISCLAIM 

ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH 

RESPECT TO THE PLATTS PRICE ASSESSMENT OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY 

OF THE FOREGOING, IN NO EVENT SHALL CME, ITS AFFILIATES OR PLATTS HAVE ANY LIABILITY FOR ANY 

LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOST 

PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES