Chapter 52B
Midsize Options on Class III Milk Futures
52B00.

SCOPE OF CHAPTER
This chapter is limited in application to Midsize options on Class III Milk futures. In addition to thischapter, Midsize Options on Class III Milk 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 andindicate Chicago time.

52B01.

OPTIONS CHARACTERISTICS
52B01.A.
Contract Months
Options contracts shall be listed for such contract months and final settlement in such months as
may be determined by the Exchange.
52B01.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,
1,000 times the USDA Class III price for milk, expressed in dollars per hundredweight (cwt.).
52B01.C.
Minimum Fluctuations
The price of an option shall be quoted in cents per hundredweight. Minimum price fluctuations
shall be in multiples of $0.01 per cwt. ($10.00, also known as one tick). A trade may also occur ata price of $0.005 per cwt. ($5.00, also known as one-half tick), whether or not it results in theliquidation of positions for both parties to the trade.
52B01.D.
Trading Hours
The hours of trading for Midsize Options on Class III Milk futures contracts shall be determined by
the Exchange. Midsize Options on Class III Milk futures shall be opened and closed for all months
and strike prices simultaneously.
52B01.E.
Exercise and Exercise Prices
Transactions and exercise of options shall be conducted for option contracts as set forth in theStrike Price Listing and Exercise Procedures Table.
52B01.F.
Position Limits, Exemptions, Position Accountability and Reportable Levels
The applicable position limits and/or accountability levels, in addition to the reportable levels, areset forth in the Position Limit, Position Accountability and Reportable Level Table in theInterpretations & 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 MarketRegulation 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.
52B01.G.
[Reserved]
52B01.H.
[Reserved]
52B01.I.
Termination of Trading
Midsize Options on Class III Milk futures trading shall terminate on the same date and time as theClass III Milk futures.
52B01.J.
[Reserved]

52B02.

ASSIGNMENTIn addition to the applicable procedures and requirements of Chapter 7, the following shall apply tothe assignment of Midsize Options on Class III Milk futures.
Exercise notices accepted by the Clearing House shall be assigned through a process of random
selection to clearing members with open short positions in the same series. A clearing member towhich an Exercise notice is assigned shall be notified thereof as soon as practicable after such

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notice is assigned by the Clearing House, but not later than 45 minutes prior to the opening oftrading in the underlying futures contract on the following Business Day.
The clearing member assigned an Exercise notice shall be assigned a long futures position in theunderlying futures contract if a put was exercised or a short futures position if a call is exercised.
The clearing member representing the option buyer shall be assigned a short futures position if aput is exercised or a long futures position if a call is exercised. The positions shall be equivalent to0.50 times the value of the Class III Milk futures contract (i.e., 1,000 times the USDA Class III pricefor milk, expressed in dollars per hundredweight).
All such futures positions shall be assigned at a price equal to the exercise price of the option andshall be marked to market in accordance with Rule 814 on the Trading Day of acceptance by theClearing House of the Exercise notice.

52B03.

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