SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-436

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

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): October 12, 2023 Filing Description: Modifications to the 

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

Christopher Bowen 

Managing Director and Chief Regulatory Counsel

Legal Department

October 12, 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 Cryptocurrency Options Market Maker Program 

CME Submission No. 23-436

Dear Mr. Kirkpatrick:

Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) hereby notifies the Commodity Futures Trading 

Commission (“CFTC” or “Commission”) of plans to modify the Cryptocurrency Options Market Maker Program

(“Program”). The modifications to the Program will become effective on November 1, 2023. 

Exhibit 1 sets forth the terms of this Program. Modifications appear below, with additions underlined and deletions 

overstruck. 

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

Exchange Act (“CEA”). During the review, CME 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. Exchange staff will monitor trading in the Program’s products to prevent manipulative trading and 

market abuse. Additionally, CME has implemented systems to track Program participants’ volume to ensure proper 

distribution of earned incentives. The Program does not impact the Exchange’s order execution. Participants in the 

Program will be selected by CME staff using criteria as further stated in Exhibit 1. Chapter 4 of the CME rules 

includes prohibitions against fraudulent, non-competitive, unfair, or abusive practices. The Program is subject to 

these rules and CME records retention policies that comply with the CEA.

CME 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 CME Submission No. 23-436 in any related correspondence.

Sincerely,

/s/ Christopher Bowen

Managing Director and Chief Regulatory Counsel 

Attachment: Exhibit 1
EXHIBIT 1

Cryptocurrency Options Market Maker Program

Program Purpose

The purpose of this Program is to encourage participants to support the development of the products

listed below. A more liquid contract benefits all participants in the marketplace.

Product Scope

All Standard Sized Cryptocurrency and Micro Cryptocurrency Options (“Products”).

Eligible Participants

Participants may be CME members or non-members. CME may designate up to seven (7) participants in 

the Program. Potential participants are required to submit an application/bid sheet to the Exchange as 

part of a competitive application process which is used to determine eligibility. In determining whether or 

not a prospective participant is selected to participate in the Program, Exchange staff may take into 

account a variety of factors including the strength of the quoting obligations the prospective participant is

willing to commit to provide, whether Exchange staff believes that the prospective participant can 

maintain such obligations, and historical volume trading the Products and similar contracts. The 

Exchange may, from time to time, add or subtract from the aforementioned requirements as it deems 

necessary.

Program Term 

Start date is January 13, 2020. End date is October 31, 2023 April 30, 2024.

Hours

5:00PM CT – 4:00PM CT.

Obligations

In order to be eligible to receive the incentives, participants must quote two-sided markets in the 

Products, at predetermined bid/ask spreads and minimum quote sizes.

Incentives

Upon meeting the obligations, as determined by the Exchange, participants will be eligible to receive 

predetermined incentives.

Monitoring and Termination of Status

The Exchange shall monitor trading activity and participants’ performance and retains 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.