Chapter 284A
Options on U.S. Dollar/Offshore Chinese Renminbi (USD/RMB) Futures
284A00.

SCOPE OF CHAPTER
This chapter is limited in application to options on U.S. dollar/offshore Chinese renminbi futures.
In addition to this chapter, options on U . S . d o l l a r / offshore Chinese renminbi futures shallbe 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 toand indicate Chicago time.
Options contracts covered by this chapter may also be referred to as:
USD/RMB Monthly Options
USD/RMB Weekly Friday Options

284A01.

OPTIONS CHARACTERISTICS
284A01.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.
284A01.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 theput, one U.S. dollar/offshore Chinese renminbi futures contract as specified in Chapter 284.
284A01.C. Price Increments
The price of an option shall be quoted in offshore Chinese renminbi per U.S. dollars. For trades
executed on CME Globex electronic trading platform, the minimum fluctuation shall be 0.0005
CNH per U.S. dollar and represent 50 RMB per contract. A trade may also occur at a price of0.00025, 0.00075, 0.00125, 0.00175, and 0.00225. For transactions submitted through CME
ClearPort, the minimum price fluctuation shall be 0.00025 offshore Chinese renminbi per U.S.
dollar.
284A01.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 option
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 futurescontract is the next nearest quarterly futures contract.
284A01.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 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 shallapply to the Market Regulation Department on forms provided by the Exchange, and theMarket 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.
284A01.F. Special Price Fluctuation Limits
At the commencement of each trading day, the contract shall be subject to special pricefluctuation limits as set forth in Rule 589 and in the Special Price Fluctuation Limits Table inthe Interpretations & Special Notices Section of Chapter 5.
284A01.G.

Termination of Trading and Expiration Days for Options© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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1. Monthly Options in the March Quarterly Cycle ("Quarterly Options")
Trading in monthly options in the March quarterly cycle (i.e., March, June, September andDecember) shall terminate at 2:00 p.m. Shanghai time/3:00 p.m. Tokyo 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 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.
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 2:00 p.m. Shanghai time/3:00 p.m. Tokyo
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 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.
3. Weekly Friday Options
Trading in w e e k l y F r i d a y options shall terminate at 2:00 p.m. Shanghai time/3:00 p.m.
Tokyo time on those Fridays that are not also the termination of trading of a monthly option as
described in the preceding sections 1 and 2. If the foregoing date for termination is a scheduled
Exchange holiday, trading in weekly options shall terminate on the immediately precedingbusiness day. If there are five or more consecutive Hong Kong holidays prior to a weekly Friday
option termination, then such weekly Friday option shall not be listed for trading. In the event thatthe 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.
284A01.H.
Exercise Prices and Listing of Exercise
PricesTransactions and exercise of options shall be conducted for options contracts as set forth in theStrike Price Listing and Exercise Procedures Table.
The Exchange may modify the provisions governing the establishment of exercise prices as it
deems appropriate.

284A02.

EXERCISE AND ASSIGNMENTIn addition to the applicable procedures and requirements of Chapter 7, the following shall apply
to the exercise of option contracts on U.S. dollar/offshore Chinese renminbi futures. All options
on U.S. dollar/offshore Chinese renminbi futures are European-style exercise only. Early option
exercise prior to the option expiration day is not permitted. Contrary option exercise instructions
are also not allowed.
284A02.A. Exercise of Options
All in-the-money options are automatically exercised by the Clearing House on the day ofexpiration for the option. All out-of-the-money options are abandoned by the Clearing Houseon the day of expiration for the option. To determine whether an option is in or out of themoney on this day, the Exchange shall calculate the relevant “CME currency fixing price” fromGLOBEX-traded underlying futures contracts as follows:
Tier 1
Take the 60-second average of sale (trade) prices, weighted by volume from
14:59:00 to 14:59:59 p.m. Tokyo time 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, take the midpoint of each bid & ask spread where available and average theresulting midpoints over the 60-second interval.
Tier 3
If no sales (trades) and no bid and ask prices occurred during the 60-second interval,then Exchange staff shall derive the CME currency fixing price (as a synthetic futures price)from quote vendor spot rates and appropriate maturity forward points.

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

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An option is in the money if the CME currency fixing price of the underlying futures contractlies above or is equal to the exercise price in the case of a call, or lies below the exercise
price in the case of a put.
284A02.B. Assignment
Exercise notices created by the Clearing House f o r b u y e r s o f o p t i o n s shall beassigned by the Clearing House through a process of random selection to clearing members with
open short positions in the same series. A clearing member to which an exercise notice isassigned shall be notified thereof as soon as practicable after such notice is assigned by theClearing House, but not later than 45 minutes before the opening 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 theunderlying futures contract if a call is exercised or a long position if a put is exercised. The
clearing member representing the option buyer shall be assigned a long position in the underlying
futures contract if a call is 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 shall be marked to market in accordance with Rule 814 on the trading day of acceptance bythe Clearing House of the exercise notice.

284A03.

[RESERVED](End Chapter 284A)© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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