SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 23-463

Organization: New York Mercantile Exchange, Inc. ("NYMEX")

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy): 12/04/23 Filing Description: Amendments to the CBL Global 

Emissions Offset Futures Contract

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

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: See filing.

Rule Numbers: See filing.
20 S Wacker Dr Chicago, IL 60606 T 312 466 7478 tim.elliott@cmegroup.com cmegroup.com

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Timothy Elliott

Managing Director and Chief Regulatory Counsel

Legal Department

December 4, 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). Amendments to the CBL Global Emissions Offset 

Futures Contract.

NYMEX Submission No. 23-463

Dear Mr. Kirkpatrick:

New York Mercantile Exchange, Inc. (“NYMEX” or “Exchange”) is certifying to the Commodity Futures 

Trading Commission (“CFTC” or “Commission”) amendments to the CBL Global Emissions Offset Futures 

contract (Commodity Code: GEO; Rulebook Chapter 1269) effective on December 19, 2023.

Specifically, NYMEX Rulebook Chapter 1269 incorporates by reference screening criteria established 

under the CBL Standard Instruments Program (“CBL SIP”). This screening criteria in the CBL SIP includes 

a requirement that emissions offset units have certain issuance vintages. For ease of our market 

participants’ review, the Exchange is implementing amendments to copy such issuance vintage criteria 

directly into NYMEX Rulebook Chapter 1269. The Exchange previously provided the marketplace with 

such clarification via SER 9197 dated May 11, 2023. The amendments are intended to simply codify such 

clarification in NYMEX Rulebook Chapter 1269. These amendments do not change the eligible issuance 

vintages established in the CBL Standard Instrument Program or, correspondingly, NYMEX Rulebook 

Chapter 1269. 

Amendments to NYMEX Chapter 1269 are provided in Appendix A below in blackline format.

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

Commodity Exchange Act (“CEA” or “Act”) and identified that the amendments may have some bearing of 

the following Core Principle:

• Availability of General Information: The Exchange shall update Rulebook Chapter 1269 on the 

CME Group website upon the effective date of this submission.

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

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.
20 S Wacker Dr Chicago, IL 60606 T 312 466 7478 tim.elliott@cmegroup.com cmegroup.com

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Should you have any questions concerning the above, please contact the undersigned at (312) 466-7478

or via e-mail at CMEGSubmissionInquiry@cmegroup.com.

Sincerely, 

/s/ Timothy Elliott

Managing Director and Chief Regulatory Counsel

Attachment: Exhibit A – Amendments to NYMEX Chapter 1269 (blackline format)
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EXHIBIT A

Chapter 1269

CBL Global Emissions Offset Futures

1269100. SCOPE OF CHAPTER 

This chapter is limited in application to CBL Global Emissions Offset Futures. The procedures for 

trading, clearing, delivery and settlement not specifically covered herein or in Chapter 7 shall be 

governed by the general rules of the Exchange. 

The provisions of these rules shall apply to all CBL Global Emissions Offset Futures bought or sold 

for future delivery on the Exchange with the delivery of emissions offsets that meet all GEO Screening 

Criteria, including CORSIA Eligibility requirements (as defined below). 

The terms “seller” and “buyer” shall mean the seller of the physical product and the buyer of the 

physical product, respectively. Parties to the transaction may select a designee for making or taking 

delivery. The designee, if selected, must be the party’s clearing member. Any party utilizing a 

designee must submit designee information in such manner as prescribed by the Clearing House. 

The term “CORSIA” shall mean the Carbon Offsetting and Reduction Scheme for International 

Aviation (CORSIA), as further identified and described here, a global market-based measure 

(GMBM) established by the International Civil Aviation Organization (ICAO) as part of a basket of 

greenhouse gas mitigation measures.

The term “CORSIA Eligibility” means a voluntary emissions offset unit, generated and registered 

under an approved offset crediting CORSIA program, that meets the eligible emission unit 

requirements and design criteria identified by CORSIA and further described here. 

The term “GEO Screening Criteria” means the voluntary emissions offset unit screening criteria 

established under the CBL Standard Instruments Program to identify voluntary emission offset units 

as eligible for physical delivery under the GEO spot contract listed under Schedule 15 of the CBL 

Market Operating Rules, found here, which includes the requirements that emissions offset units 

have issuance vintages of 2016 to 2020 (“CORSIA Pilot Phase”) and be registered with one of the 

ICAO CORSIA Approved Registries (as defined below).

The term “ICAO CORSIA Approved Registries” shall refer to the following registries included in the 

GEO:

1. American Carbon Registry (ACR)

2. Climate Action Reserve (CAR)

3. Verra Registry, operated by Verified Carbon Standard (VCS)

The term “CBL Market” shall mean the commodity trading system integrated with ICAO CORSIA 

Approved Registries upon which accounts are established for market participants as account holders 

to transact in, hold and retire offsets. 

For purposes of this rule, unless otherwise specified, times referred to herein shall refer to and 

indicate the Eastern Prevailing Time (EPT). 

1269101. CONTRACT SPECIFICATIONS 

The CBL Global Emissions Offset Futures contract physically delivers emissions offsets that meet all 

GEO Screening Criteria, including CORSIA Eligibility.

Deliverable emissions offsets under this Chapter shall be identified as such by the applicable 

approved eligible emissions unit program, according to each program’s respective CORSIA Eligibility 

criteria.

1269102. TRADING SPECIFICATIONS 

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

1269102.A. Trading Schedule 

The hours for trading for this contract shall be determined by the Exchange. 

1269102.B. Trading Unit 

The contract unit shall be one thousand (1,000) emissions (environmental) offsets meeting GEO 

Screening Criteria for delivery made by transfer through the CBL Market. Each contract shall be 

valued as the contract quantity (1,000) multiplied by the settlement price. 
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1269102.C. Price Increments 

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

$0.01 per offset ($10.00 per contract).

1269102.D. Special Price Fluctuations Limits

At the commencement of each trading day, the contract shall be subject to special fluctuation limits 

as set forth in Rule 589 and in the Special Price Fluctuation Limits Table in the Interpretations & 

Special Notices Section of Chapter 5.

1269102.E. Position Limits, Exemptions, Position Accountability and Reportable Levels 

The applicable position limits and/or accountability levels, in addition to the reportable levels, are set 

forth in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations 

& Special Notices Section of Chapter 5. 

A Person seeking an exemption from position limits for bona fide commercial purposes shall apply 

to the Market Regulation Department on forms provided by the Exchange, and the Market Regulation 

Department may grant qualified exemptions in its sole discretion. 

Refer to Rule 559 for requirements concerning the aggregation of positions and allowable 

exemptions from the specified position limits. 

1269102.F. Termination of Trading 

Trading shall cease three business days prior to the last business day of the contract month. Any 

contracts remaining open after the last day of trading must be.

(a) Settled by delivery, which shall take place no later than the third business day after the termination 

of trading for the contract month, or 

(b) Liquidated by means of a bona fide Exchange for Related Position (EFRP), pursuant to Exchange 

Rule 538. An EFRP is permitted in the expiring futures contract no later than 9 a.m. Eastern Prevailing 

Time (EPT) one business day after trading terminates on the last day of trading of the expiring futures 

contract. An EFRP which establishes a futures position for either the buyer or the seller in an expired 

futures contract shall not be permitted following the termination of trading of an expired futures 

contract. 

1269102.G. Final Settlement 

The final settlement price for the delivery month shall be the CBL Markets Global Emissions Offsets 

(GEO) Spot Price on the last trade date. The final settlement price shall be the basis for delivery.

1269103. DELIVERY 

CBL Global Emissions Offset Futures contract deliveries shall comply with all requirements for the 

electronic transfer of offsets on CBL Market. Notwithstanding the use of a designee, all clearing 

members will remain ultimately responsible for performance of all applicable contract terms specific 

to the sellers’ clearing members and buyer’s clearing members. 

1269104. DELIVERY PROCEDURES 

CBL Market is a transfer agent contracted by its account holders to facilitate the transfer of emissions 

offsets and payment. Deliveries against expiring contracts shall be by book-entry transfer. The 

seller’s and buyer’s clearing member is required to verify that its customer as a buyer or seller, holds 

a registry account with each of the ICAO CORSIA Approved Registries included in the GEO 

Screening Criteria and seller has identified a bank account to CBL Market. 

The seller shall by 9:00 a.m. EPT on the delivery day, transfer offsets that meet GEO Screening 

Criteria to the designated registry account. No later than 9:00 a.m. EPT, the buyer must instruct and 

remit funds in USD for delivery into the designated cash account. The transfer agent will then transfer 

the appropriate funds to the seller and the appropriate number of offsets meeting GEO Screening 

Criteria to the buyer, by 2:00 p.m. EPT. Upon receipt of transfer confirmation from the clearing 

member, the clearing house will release the delivery margins. 

All rights, title, and interest in and to, and risk of loss related to, the offsets will transfer upon receipt 

in the applicable CBL Market account. 

The seller and the seller’s clearing member shall comply with such requirements and obligations 

imposed by or under any ICAO CORSIA Approved Registries requirement, and in all respect material 

to the submission of the delivery of emissions offsets noted in this rule. The buyer and the buyer’s 

clearing member shall comply with such requirements and obligations imposed by or under any ICAO 

CORSIA Approved Registries requirement, and in all respect material to ensure the acceptance of a 
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valid transfer into its holding account. Seller, buyer, and CBL Market shall always obtain and 

adequately maintain systems and technology as may be necessary in order to comply with CBL 

Market or any ICAO CORSIA Approved Registries rules. The Exchange may make amendments to 

delivery and timing of delivery, which may have a material impact to the contract, and will notify the 

Clearing Members of such amendments resulting from amendments any ICAO CORSIA Approved 

Registries requirement. These amendments include, but are not limited to, amendments to the ICAO 

eligible emissions unit programs and specific unit criteria found here.

By transferring offsets through the transfer agent, the seller or the seller’s clearing member 

represents and warrants that, at the time of delivery, it has good and marketable title to such offsets, 

and that such offsets are free and clear of all liens, security interests, claims, encumbrances and 

adverse claims. 

1269104.A. Responsibilities of Clearing Members 

1. Notice of Intention to Accept 

Clearing members having open long positions shall provide the Clearing House with a Notice of 

Intention to Accept delivery by 10:00 a.m. EPT on the business day after the final day of trading 

providing number of contracts, EMA account, and any other information required by the Exchange. 

2. Notice of Intention to Deliver 

Clearing members having open short positions shall provide the Clearing House with a Notice of 

Intention to Deliver by 10:00 a.m. EPT on the business day after the final day of trading providing 

number of contracts, Registry, EMA account and any other information required by the Exchange. 

1269104.B. Final Settlement Price 

The final settlement price shall be the basis for delivery. 

1269104.C. Assignment Day 

The Clearing House shall allocate Notices of Intention to Accept and Notices of Intention to Deliver, 

on the first business day after the final day of trading, by matching positions, to the extent possible. 

The Clearing House shall provide Assignment Notice Reports to the respective clearing members on 

the first business day after the final day of trading. 

1269105. TIMING OF DELIVERY 

For purposes of this Rule 1269105: 

“Delivery Period” shall mean the time between the final day of trading and the third business day 

following the final day of trading. 

Delivery shall take place on the last day of the Delivery Period, which unless extended is the third 

business day after the final day of trading. Should the ICAO CORSIA Approved Registries or CBL 

Market be inoperable during the Delivery Period due to periodic maintenance that is an Exchange 

business day, the Exchange shall have the option to extend the Delivery Period by an additional 

business day at the Registries, CBL Market, and Exchange. 

1. The seller or the seller’s clearing member shall transfer offsets subject to delivery to their 

respective CBL account by 9:00 a.m. EPT on the third business day after the final day of trading of 

the delivery month. 

2. The buyer or the buyer’s clearing member shall deposit / transfer payment equal to the full value 

of the product to their designated CBL Market account by 9:00 a.m. EPT on the third business day 

after the final day of trading of the delivery month. 

3. The buyer or the buyer’s clearing member shall receive offsets from CBL Market by 2:00 p.m. EPT 

on the third business day after the final day of trading of the delivery month. 

4. For each seller or seller’s clearing member that has satisfied its obligations under subsection (1) 

of this rule, CBL Market shall pay the seller’s clearing member full contract value by 2:00 p.m. EPT 

on the third business day after the final day of trading of the delivery month. 

1269106. DELIVERY MARGINS AND PAYMENT 

1269106.A. Definitions 

For purposes of this Rule 1269106: 

"Payment Date" shall mean the date on which the CBL Market transfers Payment in connection with 

a delivery to the seller. If the seller selects a designee, the CBL Market will transfer Payment in 

connection with a delivery to the seller’s designee. 

"Payment" shall include the settlement price, in U.S. dollars and cents, times the number of contracts 

times one thousand (1,000). 

1269106.B. Margin 

The buyer’s clearing member and seller’s clearing member shall deposit with the Exchange margins 

in such amounts and in such form as required by the Exchange. Such margins shall be returned on 
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the business day following notification to the Exchange that delivery and Payment have been 

completed. 

1269106.C. Payment 

Any Payment made on the Payment Date shall be based on offsets that the seller’s clearing member 

is obligated to deliver pursuant to the applicable delivery. 

In the event that delivery cannot be accomplished because of a failure of the CBL Market wire, or 

because of a failure of either the buyer, the buyer’s designee, the seller, or the seller’s designee, 

delivery shall be made before 9:30 a.m. on the next business day on which the CBL Market wire, or 

bank access to it, is operable. 

1269107. VALIDITY OF DOCUMENTS 

The Exchange makes no representation respecting the authenticity, validity or accuracy of any Notice 

of Intention to Accept, Notice of Intention to Deliver, check or of any document or instrument delivered 

pursuant to these rules.