Effective on December 31, 2024, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME”), in its capacities as both a designated contract market (“DCM”) and a derivatives clearing organization (“DCO” or “Clearing House”), The Board of Trade of the City of Chicago, Inc. (“CBOT”), New York Mercantile Exchange, Inc. (“NYMEX”) and Commodity Exchange, Inc. (“COMEX”) in their capacities as DCMs, (each an “Exchange” and collectively, the “Exchanges”) are adopting amendments to CME, CBOT, NYMEX/COMEX Rule 802., CME Rules 8F002., and 8F014., and Adoption of New Definitions in CME, CBOT, NYMEX/COMEX Chapter iii and Rule 914 (collectively, the “Rule Amendments”).

The Rule Amendments establish a framework for mandatory participation by certain Base Clearing Members in futures and options default management auctions for covered products. Upon the effectiveness of the Rule Amendments, voluntary participation will continue to be encouraged in all default auctions. However, the Clearing House will select Base Clearing Members for mandatory participation based on the number of mandatory bidders required for certain categories of Base products, the Base Clearing Members’ trading activity in such products, and the Base Clearing Members’ ability to submit competitive, high-quality bids in a default auction.