Chapter 52
Class III Milk Futures
5200.

SCOPE OF CHAPTER
This chapter is limited in application to Class III Milk futures. In addition to this chapter, Class III
Milk futures shall be subject to the general rules and regulations of the Exchange insofar as
applicable.
For purposes of this chapter, unless otherwise specified, times referred to herein shall refer to andindicate Chicago time.

5201.

CONTRACT SPECIFICATIONSEach futures contract shall be valued at 2,000 times the USDA Class III Price for milk.

5202.

TRADING SPECIFICATIONS
5202.A.
Trading Schedule
Futures contracts shall be scheduled for trading during such hours and final settlement in suchmonths as may be determined by the Exchange.
5202.B.
Trading Unit
The unit of trading shall be 200,000 pounds, expressed as 2,000 hundredweight (cwt.).
5202.C.
Price Increments
Minimum price fluctuations shall be in multiples of $0.01 per cwt.
5202.D.
Daily Price Limits
There shall be a daily price limit of $0.75 per cwt. above or below the previous day's settlement
price, except that there shall be no daily price limits in the expiring contract as of close of trading on
the business day prior to the first trading day of the contract month.
Should any Class III Milk futures contract month settle at limit, the daily price limits for all contract
months shall expand to $1.50 per cwt. on the next business day.
If none of the listed Class III Milk futures contracts settle at a price change equal to or greater than
$0.75 per cwt. on the next business day, daily price limits for all contract months shall revert backto $0.75 per cwt. on the following business day. As of the close of trading on the business day prior
to the first trading day of the expiring contract month, the expiring contract month shall be excluded
from triggering expanded limits.
Should any futures component of the Class III Crush (Class III, Cash-Settled Cheese, Block
Cheese, and Dry Whey) 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 componentsof the Class III Crush shall revert back to their respective initial limits the following business day.
5202.E.
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.
5202.F.
[Reserved]5202.G.
[Reserved]5202.H.
Termination of Trading
Trading shall terminate on the Business Day immediately preceding the day on which the USDA
announces the Class III price for that contract month.

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

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5202.I.

5203.

[Reserved]

SETTLEMENT PROCEDURES
5203.A.
Final Settlement
There shall be no delivery of milk in settlement of this contract. All contracts open as of thetermination of trading shall be cash settled based upon the USDA Class III price for milk for theparticular month, as first released.
5203.B.-H. [Reserved]5204.-08.

[RESERVED](End Chapter 52)© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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