Chapter 56
Cash-Settled Butter Futures
5600.

SCOPE OF CHAPTER
This chapter is limited in application to Cash-Settled Butter futures. In addition to this chapter, CashSettled Butter futures shall be subject to the general rules and regulations of the Exchange insofar as
applicable.
For purposes of this chapter, unless otherw ise specified, times referred to herein shall refer to andindicate Chicago time.

5601.

CONTRACT SPECIFICATIONSEach futures contract shall be valued at 20,000 times the USDA monthly w eighted average price perpound in the U.S. for butter.

5602.

TRADING SPECIFICATIONS
5602A.

Trading Schedule

Futures contracts shall be scheduled for trading during such hours and final settlement in such months
as may be determined by the Exchange.
5602.B.
Trading Unit
The unit of trading shall be 20,000 pounds.
5602.C.

Price Increm ents

Minimum price fluctuations shall be in multiples of $0.00025 per pound.
5602.D.
Daily Price Lim its
There shall be a daily price limit of $0.075 per pound above or below the previous day’s settlement
price, except that there shall be no daily price limits in the spot month.
Should any Cash-Settled Butter contract that is subject to a daily price limit settle at limit, the daily
price limits for all contract months shall expand to $0.150 per pound on the next business day.
If none of the listed Cash-Settled Butter futures contracts settle at a price change equal to or
greater than $0.075 per pound on the next business day, daily price limits for all contract months
shall revert back to $0.075 per pound on the follow ing business day. During the spot month period,
the expiring month contract shall be excluded from triggering expanded limits.
Should any futures component of the Class IV Crush (Class IV, Cash-Settled Butter, and Nonfat DryMilk) trigger an expanded limit, the daily price limits for other futures components shall also expand on
the same day. If no futures component settles at a price change equal to or greater than its respective
initial price limit, daily price limits for all futures components of the Class IV Crush shall revert back totheir respective initial limits the follow ing business day.
5602.E.
Position Lim its, Exem ptions, 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 allow able
exemptions from the specified position limits.
5602.F.
5602.G.

[Reserved][Reserved]5602.H.

Term ination of Trading

Trading shall terminate on the Business Day immediately preceding the release date for the USDA
monthly w eighted average price in the U.S. for butter.

© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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5602.I.

5603.

[Reserved]

SETTLEMENT PROCEDURES
5603.A.
Final Settlem ent
There shall be no delivery of butter in settlement of this contract. All contracts open as of thetermination of trading shall be cash settled based upon the USDA monthly w eighted average price inthe U.S. for butter, as first released.
5603.B.-H.

5604-08[Reserved][RESERVED](End Chapter 56)© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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