SUBMISSION COVER SHEET

IMPORTANT: Check box if Confidential Treatment is requested

Registered Entity Identifier Code (optional): 23-519

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): December 15, 2023 Filing Description: Modifications to the 

Crude and Refined OTC Market Development 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: 
20 S Wacker Dr Chicago, IL 60606 T 312 466 7478 tim.elliott@cmegroup.com cmegroup.com

Timothy Elliott

Managing Director and Chief Regulatory Counsel

Legal Department

December 15, 2023

VIA ELECTRONIC PORTAL

Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, N.W.

Washington, DC 20581

RE: Modifications to the Crude and Refined OTC Market Development Program

NYMEX Submission No. 23-519

Dear Mr. Kirkpatrick:

New York Mercantile Exchange, Inc. (“NYMEX” or “Exchange”) hereby notifies the Commodity Futures Trading 

Commission (“CFTC” or “Commission”) of plans to modify the Crude and Refined OTC Market Development Program

(“Program”). The modifications to the Program will become effective on February 1, 2024.

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

overstruck.

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

Exchange Act (“CEA”). During the review, NYMEX 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 in order to prevent manipulative trading 

and market abuse. Additionally, the Exchange 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 Exchange staff using criteria as set forth in Exhibit 1. Chapter 4 of the 

Exchange rules includes prohibitions against fraudulent, non-competitive, unfair or abusive practices. All participants 

must execute a contractual agreement with the Exchange in which each participant will expressly agree to comply 

with, and be subject to, applicable regulations and Exchange rules. Additionally, the Program is subject to the 

Exchange’s record retention policies, which comply with the CEA.

NYMEX certifies that the Program complies with the CEA and the regulations thereunder. There were no substantive 

opposing views to this Program.

NYMEX 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 NYMEX Submission No. 23-519 in any related 

correspondence.

Sincerely,

/s/ Timothy Elliott

Managing Director and Chief Regulatory Counsel 

Attachment: Exhibit 1
EXHIBIT 1

Crude and Refined OTC Market Development Program

Program Purpose

The purpose of the Program is to incentivize higher levels of volume contribution in NYMEX crude and 

refined futures products. Higher levels of volume and liquidity in the products benefit all participants in the 

marketplace.

Product Scope

Certain NYMEX Crude and Refined futures contracts (collectively, the “Products”).

Eligible Participants

The Exchange may designate up to twenty (20) participants in the Program. Participants may be NYMEX 

members or non-members. In determining whether a prospective participant is selected to participate in 

the Program, the Exchange may take into account a variety of factors including: (1) the prospective 

participant’s historical volume in the Products, (2) the prospective participant’s experience trading NYMEX 

products and similar contracts, and (3) the prospective participant’s ability to maintain volume thresholds 

in the Products. Notwithstanding the foregoing, the Exchange may add or subtract from the 

aforementioned factors as it deems necessary.

Program Term

Start date is February 1, 2020. End date is January 31, 2024 January 31, 2025.

Hours

N/A

Obligations

Participants must meet certain volume thresholds, as determined by the Exchange, in order to receive the 

incentives.

Incentives

Upon meeting all requirements, as determined by the Exchange, participants may be eligible for 

predetermined incentives.

Monitoring and Termination of Status

The Exchange shall monitor participants’ activity in the Products and retains the right to revoke participant 

status if it concludes from review that a participant no longer meets the requirements of the Program.