MARKET REGULATION ADVISORY NOTICE______________________________________________________________________
Exchange

CBOTSubject

Cabinet Transactions in Option Products

Rule References

CBOT Rule 542 and CBOT Option Product Chapters

Advisory Date

August 30, 2021

Advisory Number

CBOT RA2101-1

Effective Date

October 1, 2021

Effective on trade date Friday, October 1, 2021, and pending all relevant CFTC regulatory review periods,
this Market Regulation Advisory Notice will supersede CBOT Market Regulation Advisory Notice RA16021 from August 31, 2016. It is being issued in connection with the September 30, 2021, closure of the trading
floor for all products other than options on CME Eurodollar futures and options on CME SOFR futures. The
current cabinet values of CBOT Treasury options products trading on CME Globex, as set forth below, are
not affected.
A cabinet transaction is a trade executed in a deep out-of-the-money option at a premium value smaller
than the standard minimum price increment for such option product. A cabinet transaction may be executed
to initiate or to liquidate a position. For each option product, the corresponding product chapter defines thestandard minimum price increment and the allowable cabinet price levels.
For example, for options on 10 Year US Treasury Note futures the product rules (set forth in CBOT
Rulebook Chapter 19A) define the standard minimum price increment to be 1/64 of one price point (equalto $15.625 per option contract), with an allowance for cabinet transactions to be executed at any premium
level per option contract from Cab1 ($1.00) to Cab15 ($15.00), inclusive, in $1.00 increments, referred toas “variable cabinet increments.”
Effective on October 1, 2021, variable cabinet increments will be supported solely for Exchange of Options
for Options (“EOOs”) transactions executed pursuant to Rule 538 (“Exchange for Related Positions”) andfor block trades executed pursuant to Rule 526 (“Block Trades”), provided the EOO or block trade issubmitted via CME Direct.
Cabinet transactions on CME Globex will remain at the values forth below.

ProductClearing/CME Globex
Product Codes

Options on
Ultra US Treasury Bond Futures
Options on
US Treasury Bond Futures
Options on
Ultra 10 Year US Treasury Note Futures
Options on
10 Year US Treasury Note Futures
Options on
5 Year US Treasury Note Futures
Options on
2 Year US Treasury Note Futures

UBE/OUB
Weekly: UL1-5/UB1-5
17/OZB
Weekly: US1-5/ZB1-5
TN/OTN
Weekly: TN1-5/TN1-5
21/OZN
Weekly: TY1-5/ZN1-5
25/OZF
Weekly: FV1-5/ZF1-5
26/OZT
Weekly: TW1-5/ZT1-5

CME Globex
Cabinet Value
Cab 7 ($7.00)
Cab 7 ($7.00)
Cab 7 ($7.00)
Cab 7 ($7.00)
Cab 4 ($4.00)
Cab 7 ($7.00)

CBOT RA2101-1
August 30, 2021Page 2 of 2Cabinet transactions on CME Globex in CBOT option products other than Treasury options will beunaffected, and will remain at their current value of Cab 1 ($1.00) per option contract.
Questions regarding this Advisory Notice may be directed to the following individuals:
Dave Reif, Executive Director, Interest Rate Products, 312.648.3839
Erin Middleton, Director, Market Regulation, 312.341.3286
Paige Gawrys, Senior Specialist, Market Regulation, 312.872.5078
Daniel Schneider, Director, Market Regulation, 312.341.7251
For media inquiries concerning this Advisory Notice, please contact CME Group Corporate Communications at 312.930.3434 or
news@cmegroup.com.