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    Central Bank Incentive Program - CME Group

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    IBIS_News
    The document describes modifications to an incentive program for Central Banks to trade on certain exchanges. The program provides discounted transaction fees for central banks that trade certain futures and options products. The modifications update the fee discounts and dates of the program. The exchanges assert the modifications comply with relevant regulations.

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    Central Bank Incentive Program - CME Group

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    IBIS_News
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    The document describes modifications to an incentive program for Central Banks to trade on certain exchanges. The program provides discounted transaction fees for central banks that trade certain futures and options products. The modifications update the fee discounts and dates of the program. The exchanges assert the modifications comply with relevant regulations.

    Original Description:

    Central Bank incentives for trading products other than gov't bonds on the open market.

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    The document describes modifications to an incentive program for Central Banks to trade on certain exchanges. The program provides discounted transaction fees for central banks that trade certain futures and options products. The modifications update the fee discounts and dates of the program. The exchanges assert the modifications comply with relevant regulations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    690 views3 pages

    Central Bank Incentive Program - CME Group

    Uploaded by

    IBIS_News
    The document describes modifications to an incentive program for Central Banks to trade on certain exchanges. The program provides discounted transaction fees for central banks that trade certain futures and options products. The modifications update the fee discounts and dates of the program. The exchanges assert the modifications comply with relevant regulations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Christopher Bowen

    Managing Director and Chief Regulatory Counsel


    Legal Department

    J anuary 29, 2014
    VIA E-MAIL

    Ms. Melissa J urgens
    Office of the Secretariat
    Commodity Futures Trading Commission
    Three Lafayette Centre
    1155 21st Street, N.W.
    Washington, D.C. 20581

    RE: Modifications to Central Bank Incentive Program
    CME/CBOT/NYMEX/COMEX Submission No. 14-038

    Dear Ms. J urgens:

    Chicago Mercantile Exchange Inc. (CME), the Board of Trade of the City of Chicago, Inc. (CBOT), New York
    Mercantile Exchange, Inc. (NYMEX), and Commodity Exchange, Inc. (COMEX) (collectively, the Exchanges)
    hereby notify the Commodity Futures Trading Commission (CFTC or Commission) of modifications to the incentive
    program for Central Banks (Program). The modifications to the Program will become effective on February 13,
    2014.

    Exhibit 1 sets forth the terms of the Program. The modifications appear below with additions underscored and
    deletions overstruck.

    The Exchanges reviewed the designated contract market core principles (Core Principles) as set forth in the
    Commodity Exchange Act (CEA). During the review, the Exchanges staff identified the following Core Principles as
    potentially being impacted; Prevention of Market Disruption, Execution of Transactions, Protection of Market
    Participants and Compliance with Rules and Record Keeping.

    The Programs incentive structure does not impact the Exchanges ability to perform their trade practice and market
    surveillance obligations under the CEA. The Exchanges market regulation staff will monitor trading in the Programs
    products to prevent manipulative trading and market abuse. The incentives in the proposed Program do not impact
    the Exchanges order execution. Participants in the Program will be selected by the Exchanges staff using criteria as
    further stated in Exhibit 1. Chapter 4 of the Exchanges rules includes prohibitions against fraudulent, non-
    competitive, unfair or abusive practices. The Program is subject to these rules. The Program is subject to the
    Exchanges record retention policies which comply with the CEA.

    CME, CBOT, NYMEX, and COMEX certify that the Program and modifications comply with the CEA and the
    regulations thereunder. There were no substantive opposing views to this Program.

    The Exchanges certify that this submission has been concurrently posted on the Exchanges website at
    http://www.cmegroup.com/market-regulation/rule-filings.html.

    If you require any additional information regarding this submission, please contact Tim Elliott at 312-466-7478 or via
    e-mail at tim.elliott@cmegroup.com, or contact me at 212-299-2200. Please reference our
    CME/CBOT/NYMEX/COMEX Submission No. 14-038 in any related correspondence.


    Sincerely,


    /s/ Christopher Bowen
    Managing Director and Chief Regulatory Counsel



    Attachment: Exhibit 1


    1 North End Avenue New York, NY 10282 T 212 299 2200 F 212 299 2299 christopher.bowen@cmegroup.com cmegroup.com


    EXHIBIT 1

    CENTRAL BANK INCENTIVE PROGRAM


    Program Purpose

    The purpose of this Program is to incentivize Central Banks located outside of the United States to trade
    the products listed below on the CME GlobexPlatform. The resulting increase in liquidity in the products
    listed below benefits all participant segments in the market.


    Product Scope

    All CME, CBOT, and NYMEX futures and options contracts available for trading on the CME Globex
    Platform, and all COMEX futures products available for trading on the CME Globex Platform
    (Products).


    Eligible Participants

    There is no limit to the number of participants that may participate in the Program. All non-U.S. central
    banks may apply for participation.


    Program Term

    Start date is J uly 1, 2013. End date is December 31, 2014.


    Hours

    The incentives will apply to all trades made in the Products regardless of the execution time.


    Program Incentives

    Once accepted into the Program, participants will be eligible to receive the following incentives:

    Fee Discounts. Participants will be eligible to receive discounted transaction fees for the Products traded
    on Globex in accordance with the following table:


    Product Category
    (For Executed trades on Globex onl y)
    Central Bank Incentive Program Participant
    fees
    (per side)

    CME Products


    E-mini Equity Index Futures
    $0.75 $0.76

    E-mini Equity Index Options
    $0.44 $0.445

    Full Size Equity Index Contracts Futures
    $1.50 $1.55




    Full Size Equity Index Contracts Options

    $1.50

    E-micro Equity Index Contracts
    $0.50

    Interest Rate Contracts
    $0.44

    Full Size Foreign Exchange contract Futures
    $1.00

    Foreign Exchange Options
    $1.00

    E-mini Foreign Exchange Contracts
    $0.54

    E-micro Foreign Exchange Contracts
    $0.10

    Agricultural Contracts Futures

    $1.50

    Agricultural Contracts Options
    $0.81

    Weather Contracts
    $0.245

    CBOT Products


    Mini Equity Contracts*
    $0.75

    Full Size Equity Index Contracts
    $0.90

    U.S. Treasury Futures
    $0.44

    U.S. Treasury Options
    $0.44

    Interest Rates contract Other Financial
    Contracts
    $0.44

    Full Size Agricultural Contracts
    $1.35

    Mini Agricultural Contracts
    $0.81

    NYMEX Products


    Energy Contracts (Physicals) on CME Globex
    $1.00

    COMEX Products


    Metals Futures Contracts (Physicals) on CME
    Globex
    $1.00
    * For CBOT Mini Dow product only


    Monitoring and Termination of Status

    The Exchanges shall monitor trading activity and participants performance and shall retain the right to
    revoke Program participant status if it concludes from review that a Program participant no longer meets
    the eligibility requirements or fails to meet the obligations of the Program.

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