Chapter 252A
Options on Canadian Dollar/U.S. Dollar (CAD/USD) Futures
252A00.

SCOPE OF CHAPTER
This chapter is limited in application to options on Canadian dollar/U.S. dollar futures. In addition to thischapter, options on Canadian dollar/U.S. dollar futures shall be subject to the general rules andregulations of the Exchange insofar as applicable.
For purposes of this chapter, unless otherwise specified, times referred to herein shall refer to and indicate
Chicago time.
Options contracts covered by this chapter may also be referred to as:
CAD/USD Monthly Options
CAD/USD Weekly Monday Options
CAD/USD Weekly Tuesday Options
CAD/USD Weekly Wednesday Options
CAD/USD Weekly Thursday Options
CAD/USD Weekly Friday Options

252A00.

SCOPE OF CHAPTER
This chapter is limited in application to options on Canadian dollar/U.S. dollar futures. In addition to thischapter, options on Canadian dollar/U.S. dollar futures shall be subject to the general rules andregulations of the Exchange insofar as applicable.
For purposes of this chapter, unless otherwise specified, times referred to herein shall refer to and indicate
Chicago time.

252A01.

OPTIONS CHARACTERISTICS
252A01.A.
Contract Months, Trading Hours, and Trading Halts
Options contracts shall be listed for such contract months (i.e., expirations) and scheduled for trading
during such hours, except as indicated below, as may be determined by the Exchange.
252A01.B.
Trading Unit
The trading unit shall be an option to buy, in the case of the call, or to sell, in the case of the put, one
Canadian dollar/U.S. dollar futures contract as specified in Chapter 252.
252A01.C.
Price Increments
The price of an option shall be quoted in U.S. dollars per Canadian dollar. Each $0.0001 per Canadiandollar (one point) shall represent $10.00. For example, a quote of .0075 represents an option price of$750.00 (75 points x $10.00 per point) of premium. The minimum fluctuation shall be one point (alsoknown as one tick). A trade may also occur at a price of $.00005 ($5, also known as one-half tick),$.00015 ($15, also known as one and one-half ticks), $.00025 ($25, also known as two and one-halfticks), $.00035 ($35, also known as three and one-half ticks), and $.00045 ($45, also known as four andand one-half ticks).
252A01.D.
Underlying Futures Contract
1. Quarterly and Serial Options
The underlying futures contract is the nearest futures contract in the March quarterly cycle (i.e., March,June, September and December) that has not yet terminated trading.
2. Weekly Options
The underlying futures contract is the nearest quarterly futures contract following the options expiration,with the exception that for weekly options expiring between the quarterly option expiration and the nearest
quarterly futures termination of trading date, the underlying futures contract is the next nearest quarterly
futures contract.
252A01.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 forthin 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 theCopyright Chicago Mercantile Exchange, Inc. All rights reserved.

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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.
252A01.F.
Special Price Fluctuation Limits
At the commencement of each trading day, the contract shall be subject to special price 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.
252A01.G.
[Reserved]
252A01.H.
[Reserved]
252A01.I.
[Reserved]
252A01.J.
Termination of Trading and Expiration Days for Options
1. Monthly Options in the March Quarterly Cycle ("Quarterly Options")
Trading in monthly options in the March quarterly cycle (i.e., March, June, September and December)shall terminate at 9:00 a.m. Central time on the second Friday immediately preceding the third
Wednesday of the contract month. If the foregoing date for termination is a scheduled Exchange holiday,
trading in monthly options shall terminate on the immediately preceding business day. In the event thatthe underlying futures market does not open on the scheduled expiration day, the option expiration shallbe extended to the next day on which the underlying futures market is open for trading.
2. Monthly Options Not in the March Quarterly Cycle ("Serial Options")
Trading in monthly options not in the March quarterly cycle (i.e., January, February, April, May, July,
August, October and November) shall terminate at 9:00 a.m. Central time on the second Friday
immediately preceding the third Wednesday of the contract month. If the foregoing date for termination isa scheduled Exchange holiday, trading in monthly options shall terminate on the immediately precedingbusiness day. In the event that the underlying futures market does not open on the scheduled expiration
day, the option expiration shall be extended to the next day on which the underlying futures market isopen for trading.
3. Weekly Monday Options Trading in weekly Monday options shall terminate at 9:00 a.m. Central timeon Mondays. If the foregoing date for termination is a scheduled Exchange holiday, such weekly Monday
option shall not be listed for trading. In the event that the underlying futures market does not open on thescheduled expiration day, the option expiration shall be extended to the next day on which the underlying
futures market is open for trading.
4.
Weekly Tuesday Options
Trading in weekly Tuesday options shall terminate at 9:00 a.m. Central time on Tuesdays. If the foregoingdate for termination is a scheduled Exchange holiday, such weekly Tuesday option shall not be listed fortrading. In the event that the underlying futures market does not open on the scheduled expiration day,the option expiration shall be extended to the next day on which the underlying futures market is open fortrading.
5.
Weekly Wednesday Options
Trading in weekly Wednesday options shall terminate at 9:00 a.m. Central time on Wednesdays. If theforegoing date for termination is a scheduled Exchange holiday, such weekly Wednesday option shallnot be listed for trading. In the event that the underlying futures market does not open on thescheduled expiration day, the option expiration shall be extended to the next day on which theunderlying futures market is open for trading.
6. Weekly Thursday Options
Trading in weekly Thursday options shall terminate at 9:00 a.m. Central time on Thursdays. If theforegoing date for termination is a scheduled Exchange holiday or the day prior to a scheduled Exchange
holiday, such weekly Thursday option shall not be listed for trading. In the event that the underlying
futures market does not open on the scheduled expiration day, the option expiration shall be extended to
the next day on which the underlying futures market is open for trading.
7. Weekly Friday Options
Trading in weekly Friday options shall terminate at 9:00 a.m. Central time on those Fridays that are notalso the termination of trading of a monthly option as described in the preceding sections 1 and 2. If theforegoing date for termination is a scheduled Exchange holiday, trading in weekly Friday options shallterminate on the immediately preceding business day. In the event that the underlying futures market
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does not open on the scheduled expiration day, the option expiration shall be extended to the next dayon which the underlying futures market is open for trading.
252A01.K.
Exercise Prices and Listing of Exercise Prices
Transactions and exercise of options shall be conducted for options contracts as set forth in the Strike
Price Listing and Exercise Procedures Table.
The Exchange may modify the provisions governing the establishment of exercise prices as it deems
appropriate.

252A02.

EXERCISE AND ASSIGNMENTIn addition to the applicable procedures and requirements of Chapter 7, the following shall apply to theexercise of option contracts on Canadian dollar/U.S. dollar futures. All options on Canadian dollar/U.S.
dollar futures are European-style exercise only. Early option exercise prior to the option expiration day isnot permitted. Contrary option exercise instructions are also not allowed.
252A02.A.1.
[Reserved]
252A02.A.2.
[Reserved]
252A02.A.3.
Exercise of Options
All in-the-money options are automatically exercised by the Clearing House on the day of expiration forthe option. All out-of-the-money options are abandoned by the Clearing House on the day of expiration
for the option. To determine whether an option is in or out of the money on this day, the Exchange shallcalculate the relevant “CME currency fixing price” from GLOBEX-traded underlying futures contracts asfollows:
Tier 1 Take the 60-second average of sale (trade) prices, weighted by volume from 8:59:00 to 8:59:59
a.m. on the day of determination of the CME currency fixing price.
Tier 2 If less than twenty or no sales (trades) occurred during the 60-second interval noted above, takethe midpoint of each bid & ask spread where available and average the resulting midpoints over the 60second interval.
Tier 3 If no sales (trades) and no bid and ask prices occurred during the 60-second interval, thenExchange staff shall derive the CME currency fixing price (as a synthetic futures price) from quote vendor
spot rates and appropriate maturity forward points.
An option is in-the-money if the fixing price of the underlying futures contract lies above or is equal to theexercise price in the case of a call, or lies below the exercise price in the case of a put.
252A02.B.
Assignment
Exercise notices created by the Clearing House for buyers of options shall be assigned by the Clearing
House through a process of random selection to clearing members with open short positions in the sameseries. A clearing member to which an exercise notice is assigned shall be notified thereof as soon aspracticable after such notice is assigned by the Clearing House, but not later than 45 minutes before theopening of Regular Trading Hours in the underlying futures contract on the following Business Day.
The clearing member assigned an exercise notice shall be assigned a short position in the underlying
futures contract if a call is exercised or a long position if a put is exercised. The clearing memberrepresenting the option buyer shall be assigned a long position in the underlying futures contract if a callis exercised and a short position if a put is exercised.
All such futures positions shall be assigned at a price equal to the exercise price of the option and shallbe marked to market in accordance with Rule 814 on the Trading Day of acceptance by the Clearing
House of the exercise notice.

252A03.

[RESERVED](End Chapter 252A)

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