Chapter 349A
Options on Ether Futures
349A00.

SCOPE OF CHAPTER
This chapter is limited in application to Options on Ether Futures (“futures”). In addition to the rulesof this chapter, transactions in Options on Ether Futures shall be subject to the general rules andregulations of the Exchange.

349A01.

OPTIONS CHARACTERISTICS
349A01.A. Listing and Trading Schedule
The number of contracts open for trading at a given time, and the hours of trading for options
contracts shall be determined by the Exchange. There shall be no trading in options when trading ishalted in the underlying Futures Contract Month for Ether Futures (Chapter 349).
349A01.B. Trading Unit
The trading unit shall be an option to buy in the case of a call, or to sell in the case of a put, one
Ether Futures contract (Chapter 349).
349A01.C. Minimum Price Increments
1. Outright
Option prices shall be quoted in CME CF Ether-Dollar Reference Rate (“ETHUSD_RR”) Index
points (USD per ether).
The minimum price fluctuation shall be 0.50 Index points, equal to $25.00 per option contract.
2. Option Spreads and Combinations
Any option contract that trades as a component of a spread or combination shall be traded at aprice that conforms to the applicable minimum price fluctuation as set forth in this Rule. Theminimum price fluctuation shall be 0.50 Index points (equal to $25.00 per option contract).
349A01.D. Daily Price Limits
At the commencement of each trading day, the contract shall be subject to special price fluctuation
limits and daily price limits as set forth in Rule 589 and in the Special Price Fluctuation Limits Tablein the Interpretations & Special Notices Section of Chapter 5.
349A01.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.
349A01.F. Underlying Futures Contract
1. Monthly Options
The Underlying Futures Contract shall be the nearest to expire Futures Contract for delivery on thelast Friday of the same month as such option’s named month of expiration, subject to Rule34903.A.
2. Weekly Options
The Underlying Futures Contract shall be the nearest to expire Futures contract for delivery on thesame day as such option’s named day of expiration.
349A01.G. Exercise Prices
1. Regularly Listed Exercise Prices
The Exchange shall ensure that put and call options are listed for trading at all eligible exercise
prices as set forth in the Strike Price Listing and Exercise Procedures Table.
2. Dynamically Listed Exercise Prices
Upon demand and at the discretion of the Exchange, an option with an out-of-current-range© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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exercise price may be listed for trading as a User-Defined Instrument, on an as-soon-as-possible
basis, provided that the exercise price of such option shall be an integer multiple of 25 Index points.
349A01.H. Termination of Trading1. Monthly Options
Trading of a Monthly option shall terminate on the same date and at the same time as thetermination of trading in such option’s Underlying Futures Contract (Rule 349A01.D.1).
If that day is not a business day in both the U.K and the U.S., trading shall terminate on thepreceding day that is a business day in either the U.K or the U.S.
2. Weekly Options
Trading of a Weekly option shall terminate on its expiration date at 4:00:00 p.m. London time.
Where the named day of the Contract week is not a business day in both the U.K and the U.S., nocontract will be listed.

349A02.

EXERCISE AND ASSIGNMENTIn addition to the applicable procedures and requirements of Chapter 7, the following shall apply tothe exercise of options.
349A02.A. Exercise
Options may not be exercised prior to their termination of trading. They may be exercised only at,and not before, its expiration. Following the termination of trading any option that is in the money
shall be automatically exercised by the Clearing House, and any such option that is out of themoney shall be abandoned by the Clearing House. For the avoidance of doubt, no such option thatexpires in the money may be abandoned, and no such option that expires out of the money may beexercised.
1. Monthly Options
An expiring Monthly call option (Rule 349A01.F.1.) shall be in the money if the corresponding Final
Settlement Price for the Underlying Futures Contract (Rule 34903.A.) is at or above such option’s
exercise price and shall be out of the money if the corresponding Final Settlement Price is strictly
below such option’s exercise price.
An expiring Monthly put option (Rule 349A01.F.1.) shall be in the money if the corresponding FinalSettlement Price for the Underlying Futures Contract (Rule 34903.A.) is strictly below such option’sexercise price and shall be out of the money if the corresponding Final Settlement Price is at orabove such option’s exercise price.
2. Weekly Options
For Options other than Monthly Options, whether an option expires in the money or out of themoney shall be determined by the Exchange, in its sole discretion, by reference to the Fixing Priceof such option, as follows:
Such Fixing Price shall be based on the notionally-adjusted volume-weighted average price oftransactions in Ether Futures and Micro Ether Futures on the CME Globex electronic trading
platform during the last thirty (30) minutes of trading on expiration day (3:30:00 p.m. – 3:59:59 p.m.
London time).
In the event such Fixing Price calculation cannot be determined pursuant to the above calculation,
the Exchange, in its sole discretion, shall set such Fixing Price by alternative means.
An expiring Weekly call option (Rule 349A01.F.2.), shall be in the money if the corresponding
Fixing Price for the Underlying Futures Contract is at or above such option’s exercise price, andshall be out of the money if the corresponding Fixing Price is strictly below such option’s exercise
price.
An expiring Weekly put option (Rule 349A01.F.2.), shall be in the money if the corresponding Fixing
Price for the Underlying Futures Contract is strictly below such option’s exercise price, and shall beout of the money if the corresponding Fixing Price is at or above such option’s exercise price.
349A02.B. Assignment
Upon exercise of a put option on behalf of the long holder of such option, the short holder of suchoption shall incur the obligation to assume a long position in one Underlying Futures Contract (Rule349A01.F.) at such option’s exercise price (Rule 349A01.G.). Upon exercise of a call option on
behalf of the long holder of such option, the short holder of such option shall incur the obligation toassume a short position in one Underlying Futures Contract at such option’s exercise price.

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

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All such futures positions shall be assigned at a price equal to the exercise price of such option
contract and shall be marked to market (in accordance with Rule 814) on the Business Day on
which the Clearing House automatically exercises such.
(End Chapter 349A)© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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