SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested 

Registered Entity Identifier Code (optional): 23-224

Organization: Commodity Exchange, Inc. ("COMEX")

Filing as a: DCM SEF DCO SDR 

Please note - only ONE choice allowed.

Filing Date (mm/dd/yy: 06/20/23 Filing Description: Initial Listing of the Lithium 

Carbonate CIF CJK (Fastmarkets) 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: See filing.

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

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Christopher Bowen 

Managing Director and Chief Regulatory Counsel

Legal Department

June 20, 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, DC 20581

Re: CFTC Regulation 40.2(a) Certification. Initial Listing of the Lithium Carbonate CIF 

CJK (Fastmarkets) Futures Contract.

COMEX Submission No. 23-224

Dear Mr. Kirkpatrick:

Commodity Exchange, Inc. (“COMEX” or “Exchange”) is certifying to the Commodity Futures Trading 

Commission (“CFTC” or “Commission”) the initial listing of the Lithium Carbonate CIF CJK (Fastmarkets)

Futures contract (the “Contract”) for trading on the CME Globex electronic trading platform and for 

submission for clearing via CME ClearPort effective Sunday, July 16, 2023, for trade date Monday, July 17, 

2023, as noted in the table below.

Contract Title Lithium Carbonate CIF CJK (Fastmarkets) Futures

CME Globex and

CME ClearPort Code LTC

Rulebook Chapter 648

Settlement Type Financial

Contract Size 1,000 kilograms (kg)

Listing Schedule Monthly contracts listed for twenty-four (24) consecutive months. 

Pricing Quotation U.S. dollars and cents per kg

First Listed Month July 2023

Minimum Price Fluctuation $0.01 per kg

Value per tick $10.00

Block Trade Minimum Threshold 2 contracts – subject to a minimum 15-minute reporting window

Termination of Trading Trading in the contract shall terminate at the close of trading on the last 

Exchange business day of the contract month.

CME Globex Matching Algorithm First in First Out (FIFO)

Trading and Clearing Hours

CME Globex Pre-Open: Sunday 4:00 p.m. - 5:00 p.m. Central 

Time/CT Monday - Thursday 4:45 p.m. - 5:00 p.m. CT 

CME Globex: Sunday - Friday 5:00 p.m. CT with a daily maintenance 

period from 4:00 p.m. - 5:00 p.m. CT 

CME ClearPort: Sunday - Friday 5:00 p.m. - 4:00 p.m. CT with no 

reporting Monday - Thursday from 4:00 p.m. - 5:00 p.m. CT
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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The Exchange is also notifying the CFTC that it is self-certifying block trading on the Contract with a 

minimum block threshold of 2 contracts which is commensurate with the Exchange’s similar battery metals

futures contracts.

The Exchange reviewed the designated contracts market core principles (“Core Principles”) as set forth in 

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

the following Core Principles:

• Availability of General Information: The Exchange will publish information on the Contract's 

specification on its website, together with daily trading volume, open interest and price information.

• Contracts Not Readily Subject to Manipulation: The Contract is based on a cash price series 

that is reflective of the underlying cash market and is commonly relied on and used as a reference 

price by cash market brokers and commercial market participants.

• Compliance with Rules: Trading in this Contract will be subject to Chapter 4 of the Exchange 

rules which includes prohibitions against fraudulent, non-competitive, unfair and abusive practices 

and will be subject to extensive monitoring and surveillance by CME Group’s Market Regulation 

Department. The Market Regulation Department may use its investigatory and enforcement power 

where potential rule violations are identified during its regular surveillance reviews.

• Prevention of Market Disruption: Trading in the Contract will be subject to the Rules of COMEX 

which include prohibitions on manipulation, price distortion, and disruption to the cash settlement 

process. As with any new product listed for trading on a CME Group designated contract market, 

trading activity in the Contract proposed herein will be subject to monitoring and surveillance by 

CME Group’s Market Regulation Department.

• Position Limitations or Accountability: The speculative position limits for the Contract as 

demonstrated in this submission are consistent with the Commission’s guidance.

• Financial Integrity of Contracts: The Contract traded on the Exchange will be cleared by the 

CME Clearing House.

• Execution of Transactions: The Contract will be listed for trading on the CME Globex electronic 

trading and for clearing through CME ClearPort. The CME Globex electronic trading venue provides 

for competitive and open execution of transactions. CME Globex affords the benefits of reliability 

and global connectivity.

• Trade Information: All requisite trade information for the Contract will be included in the audit trail 

and is sufficient for the Market Regulation Department to monitor for market abuse.

• Protection of Market Participants: Chapter 4 contains multiple prohibitions precluding 

intermediaries from disadvantaging their customers and which apply to trading on all of the 

Exchange’s competitive trading venues.

• Disciplinary Procedures: Chapter 4 of the Rulebook contains provisions that allow the Exchange 

to discipline, suspend or expel members or market participants that violate the Rulebook. Trading 

in the Contract will be subject to Chapter 4, and the Market Regulation Department has the authority

to exercise its enforcement power in the event rule violations in this product are identified.

• Dispute Resolution: Disputes with respect to trading in the Contract will be subject to the 

arbitration provisions set forth in Chapter 6 of the Rulebook. Chapter 6 allows all non-members to 

submit a claim for financial losses resulting from transactions on the Exchange to arbitration. A 
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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member named as a respondent in a claim submitted by a non-member is required to participate 

in the arbitration pursuant to Chapter 6. Additionally, the Exchange requires that members resolve 

all disputes concerning transactions on the Exchange via arbitration.

• Daily Publication of Trading Information: Trading volume, open interest and price information 

will be published daily on the Exchange’s website and via quote vendors.

Pursuant to Section 5c(c) of the Act and CFTC Regulations 40.2(a), the Exchange certifies that the listing 

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

opposing views to this 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

Attachments: Exhibit A: COMEX Rulebook Chapter 648

Exhibit B: Exchange Fees

Exhibit C: Position Limit, Position Accountability, and Reportable Level Table in

 Chapter 5 of the COMEX Rulebook (attached under separate cover) 

 Exhibit D: COMEX Rule 588.H. – (“Globex Non-Reviewable Trading Ranges”) Table

Exhibit E: COMEX Rule 589. (“Special Price Fluctuation Limits and Price Limits”) Table

 Exhibit F: Cash Market Overview and Analysis of Deliverable Supply 
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Exhibit A

COMEX Rulebook

Chapter 648

Lithium Carbonate CIF CJK (Fastmarkets) Futures

648100. SCOPE OF CHAPTER

The provisions of these rules shall apply to all contracts bought or sold on the Exchange for cash 

settlement based on the Floating Price. 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 Exchange.

648101. CONTRACT SPECIFICATIONS 

The Floating Price for each contract month is equal to the arithmetic average of all available price 

assessments published for “Lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, 

Japan & Korea, $/kg” in $/kilogram by Fastmarkets during the contract month.

648102. TRADING SPECIFICATIONS

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

648102.A. Trading Schedule

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

648102.B. Trading Unit

The contract quantity shall be 1,000 kilograms (equivalent to 1 Metric Ton). Each contract shall be valued 

as the contract quantity (1,000) multiplied by the settlement price.

648102.C. Price Increments 

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

be $0.01 per kilogram. The minimum daily and final settlement price fluctuation shall be $0.01 per 

kilogram.

648102.D. 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.

648102.E. Termination of Trading

Trading in the contract shall terminate at the close of trading on the last Exchange business day of the

contract month.

648102.F. Special Price Fluctuation 

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 and Daily Price Limits Table in the 

Interpretations & Special Notices Section of Chapter 5.

648103. FINAL SETTLEMENT

Delivery 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. 

648104. DISCLAIMER

See NYMEX/COMEX Chapter iv. (“DISCLAIMERS”) incorporated herein by reference. 
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Exhibit B

Exchange Fees

Exhibit C

COMEX Rulebook

Chapter 5

(“Trading Qualifications and Practices”)

Position Limits, Position Accountability and Reportable Level Table 

(attached under separate cover)

Member Non-Member

CME Globex $3.00 $6.00

EFP $4.00 $7.00

Block $4.00 $7.00

EFR/EOO $4.00 $7.00

Processing Fees Member Non-Member

Cash Settlement $4.00 $7.00

Facilitation Fee $0.60

Give-Up Surcharge $0.05

Position Adjustment/Position 

Transfer $0.10
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Exhibit D

COMEX Rulebook

Chapter 5

(“Trading Qualifications and Practices”)

COMEX Rule 588.H. – (“Globex Non-Reviewable Trading Ranges”) Table

(additions underscored)

Outrights Spreads

Instrument Globex 

Symbol

Globex NonReviewable Ranges 

(NRR)

NRR: 

Globex 

Format

NRR:Minimum 

Ticks

NRR: 

Globex 

Format

NRR: 

Outright 

Minimum 

Ticks

Lithium Carbonate CIF CJK 

(Fastmarkets) Futures LTC $.50 per kilogram 50 50 Each leg evaluated as an outright
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Exhibit E

COMEX Rulebook

Chapter 5

 (“Trading Qualifications and Practices”)

COMEX Rule 589 – Special Price Fluctuation Limits and Daily Price Limits Table

(additions underscored)

Product Rulebook Commodity 

Code PRIMARY/ASSOCIATED ASSOCIATED WITH

Dynamically 

Calculated 

Variant - All 

Hours

Daily 

Price 

Limit

Lithium 

Carbonate CIF 

CJK 

(Fastmarkets) 

Futures

648 LTC Primary Primary

10% of 

Dynamically 

Calculated 

Reference 

Price

Daily 

Price 

Limit 

Table
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Exhibit F

Cash Market Overview and Analysis of Deliverable Supply

CASH MARKET OVERVIEW

In its cash market and deliverable supply analysis, the Exchange has incorporated data from a range of 

sources as described below.

Fastmarkets (FM) is a leading global provider of price information for metals, agriculture and forestry 

products. FM’s assessment methodologies for lithium carbonate are available on its website1(under 

product code MB-LI-0029). CME Group Inc. (parent company of COMEX) is a party to license agreements 

with Fastmarkets to utilize its pricing data for final settlement of the contract.

The United States Geological Survey (USGS) is a scientific public agency in the United States. It is tasked 

with studying the landscape of the United States, its natural resources, and the natural hazards that threaten 

it.

The UN Comtrade Database (Comtrade) provides free access to detailed global trade data. UN Comtrade 

is a data repository of official trade statistics and relevant analytical tables. It contains annual trade statistics 

starting from 1962 and monthly trade statistics since 2010.

Final settlement of the futures contract is based on the monthly average of all daily price assessments for 

“Lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif. China, Japan & Korea, $/kg” price 

assessment published by Fastmarkets (FM) during the contract month. The methodology refers to battery 

grade lithium carbonate delivered CIF to the main ports in China, Japan or South Korea (other ports 

normalized). The quantity required for assessment inclusion is 5 metric tons minimum. The denomination 

is $/kg. 

1 https://fastmarkets.euromoneycdn.com/~/media/4113CB10167C445D9D02DC7779CD8468.pdf?la=en, 

https://www.fastmarkets.com/about-us/methodology
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Lithium is a metal that is widely used in industrial applications, notably in battery manufacturing. Lithium 

mining comes in two main forms: the metal can be produced from spodumene (lithium-containing rock) or 

brine. After extraction, lithium raw materials are refined into lithium carbonate or lithium hydroxide. 

According to the USGS, end-user markets for refined lithium were batteries (80%); ceramics and glass 

(7%); lubricating greases (4%); continuous casting mold flux powders (2%); air treatment (1%); medical 

(1%); and other uses (5%)2. The global lithium industry is concentrated in Asia, which accounts for most of 

the global refining and battery manufacturing capacity. Major producing countries include Australia, Chile 

and China (Table 1). As a key material for lithium-ion batteries used in electric vehicles (EVs), market 

analysts expect that the global lithium industry will grow significantly over the coming decade(s) –

Fastmarkets stated that global lithium production must quadruple from 2020 to 2030 in order to meet 

growing demand.

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Table 1 – Global Lithium Production (source: USGS4)

Metric tons contained lithium 2020 2021 2022 (estimate)

United States Withheld Withheld Withheld

Argentina 5,900 5,970 6,200 

Australia 39,700 55,300 61,000 

Brazil 1,420 1,700 2,200 

Canada 500 

Chile 21,500 28,300 39,000 

China 13,300 14,000 19,000 

Portugal 348 900 600 

Zimbabwe 417 710 800 

Other countries 0 0 0 

Total (rounded) 82,500 107,000 130,000 

Table 2 shows that an average of 12,326 metric tons of lithium carbonate was imported into North Asia 

during the past three years for which data is available.

Table 2 – Lithium Carbonate – imports into North Asia5

Imports - Metric tons 2020 2021 2022 Grand Total

China 50,103 81,013 136,093 89,070 

Japan 17,709 20,623 24,632 20,988 

Rep. of Korea 31,224 41,165 41,165 37,851 

Grand Total 99,035 142,801 201,890 147,909 

Rep. of Korea import data for 2022 was not available and was assumed to be equal to 2021.

2

https://pubs.usgs.gov/periodicals/mcs2023/mcs2023-lithium.pdf

3 https://www.fastmarkets.com/article/3999803/lithium-supply-and-demand-to-2030

4 https://pubs.usgs.gov/periodicals/mcs2023/mcs2023-lithium.pdf

https://pubs.usgs.gov/periodicals/mcs2022/mcs2022-lithium.pdf

5 2020 data under 

https://wits.worldbank.org/trade/comtrade/en/country/ALL/year/2020/tradeflow/Imports/partner/WLD/product/283691, 2021 data 

under https://wits.worldbank.org/trade/comtrade/en/country/ALL/year/2021/tradeflow/Imports/partner/WLD/product/283691, 2022 

data under https://wits.worldbank.org/trade/comtrade/en/country/ALL/year/2022/tradeflow/Imports/partner/WLD/product/283691
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Lithium carbonate is traded both in the spot and term markets. Term contracts are using fixed price or a 

“formula pricing,” meaning a floating price component that may include customs data and/or price 

indexation. Term contracts typically allow to freely re-trade contracted volume.

ANALYSIS OF DELIVERABLE SUPPLY

Appendix C to part 38 of the Commission’s regulations defines deliverable supply as “the quantity of the 

commodity meeting the contract’s delivery specifications that can reasonably be expected to be readily 

available to short traders and saleable by long traders at its market value in normal cash marketing channels 

at the derivative contract’s delivery points during the specified delivery period, barring abnormal movement 

in interstate commerce.”

The Exchange is assessing spot month position limits for the contract based on UN Comtrade import data 

for lithium carbonate into China, Japan and Republic of Korea. Average annual import volume into the three 

countries represents 147,909 MT annually for the 2020-2022 period, equivalent to 12,326 MT per month 

(12,326 contracts equivalent). The Exchange proposes a spot month position limit of 1,000 contracts, 

equivalent to 8.1% of deliverable supply.