Chapter 259A
Options on South African Rand/U.S. Dollar (ZAR/USD) Futures
259A00.

SCOPE OF CHAPTER
This chapter is limited in application to options on South African rand/U.S. dollar futures. In addition tothis chapter, options on South African rand/U.S. dollar futures shall be subject to the general rules andregulations of the Exchange insofar as applicable.
For purposes of this chapter, unless otherwise specified, times referred to herein shall refer to and indicate
Chicago time.
For purposes of this chapter, unless otherwise specified, times referred to herein shall refer to andindicate Chicago time.
Options contracts covered by this chapter may also be referred to as:
ZAR/USD Monthly Options
ZAR/USD Weekly Friday Options

259A01.

OPTIONS CHARACTERISTICS
259A01.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.
259A01.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 the put, one
South African rand/U.S. dollar futures contract as specified in Chapter 259.
259A01.C. Price Increments
The price of an option shall be quoted in U.S. dollars per South African rand. Each $.00001 per South
African rand (one point) shall represent $5.00. For example, a quote of .00087 represents an option priceof $435.00 (87.0 points x $5.00 per point). The minimum fluctuation shall be one point (also known as
one tick). A trade may also occur at a price of $0.000005 ($2.50, also known as one-half tick), whether or
not it results in the liquidation of positions for both parties to the trade .
259A01.D. Underlying Futures Contract
1. Monthly 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 Friday Options
The underlying futures contract is the nearest quarterly futures contract following the options expiration,with the exception that for weekly options expiring between the quarterly option expiration and the nearestquarterly futures termination of trading date, the underlying futures contract is the next nearest quarterly
futures contract.
259A01.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 forthin the Position Limit, Position Accountability and Reportable Level Table in the Interpretations & Special
Notices Section of Chapter 5.
A Person seeking an exemption from position limits for bona fide commercial purposes shall apply to theMarket Regulation Department on forms provided by the Exchange, and the Market 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.
259A01.F. Special Price Fluctuation Limits
At the commencement of each trading day, the contract shall be subject to special price fluctuation limits
as set forth in Rule 589 and in the Special Price Fluctuation Limits Table in the Interpretations & Special
Notices Section of Chapter 5.
259A01.G. [Reserved]

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259A01.H. [Reserved]
259A01.I.
Termination of Trading and Expiration Days for Options
1. Monthly Options
Trading in monthly options on monthly South African rand/U.S. dollar futures contracts shall terminate at
9:00 a.m. Central 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. Weekly Friday Options
Trading in weekly Friday options on the South African rand/U.S. dollar futures contract shall terminate at
9:00 a.m. Central time on those Fridays that are not also the termination of trading of a monthly option as
described in the immediately preceding paragraph. If the foregoing date for termination is a scheduled
Exchange holiday, trading in weekly Friday options shall terminate on the immediately preceding businessday. In the event that the underlying futures market does not open on the scheduled expiration day, theoption expiration shall be extended to the next day on which the underlying futures market is open fortrading.
259A01.J. Exercise Prices and Listing of Exercise Prices
Transactions and exercise of options shall be conducted for options contracts as set forth in the Strike
Price Listing and Exercise Procedures Table.
The Exchange may modify the provisions governing the establishment of exercise prices as it deems
appropriate.

259A03.

EXERCISE AND ASSIGNMENTIn addition to the applicable procedures and requirements of Chapter 7, the following shall apply to theexercise of option contracts on South African rand/U.S. dollar futures. All options on South Africanrand/U.S. dollar 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.
259A03.A.
Exercise of Options
All in-the-money options are automatically exercised by the Clearing House on the day of expiration forthe option. All out-of-the-money options are abandoned by the Clearing House on the day of expiration
for the option. To determine whether an option is in or out of the money on this day, the Exchange shallcalculate the relevant “CME currency fixing price” from GLOBEX-traded underlying futures contracts asfollows:
Tier 1 Take the 60-second average of sale (trade) prices, weighted by volume from 8:59:00 to 8:59:59
a.m. 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, take the midpointof each bid & ask spread where available and average the resulting midpoints over the 60- secondinterval.
Tier 3 If no sales (trades) and no bid and ask prices occurred during the 60-second interval, thenExchange staff shall derive the CME currency fixing price (as a synthetic futures price) from quote vendor
spot rates and appropriate maturity forward points.
An option is in-the-money if the fixing price of the underlying futures contract at termination lies above oris equal to the exercise price in the case of a call, or lies below the exercise price in the case of a put.
259A03.B.
Assignment
Exercise notices accepted by the Clearing House shall be assigned 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 is assigned shall be notified thereof as soon as practicable after such notice is assignedby the Clearing House, but not later than 45 minutes before the opening of Regular Trading Hours in theunderlying futures contract on the following Business Day.
The clearing member assigned an exercise notice shall be assigned a short position in the underlying
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

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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 shallbe marked to market in accordance with Rule 814 on the Trading Day of acceptance by the Clearing
House of the exercise notice.

259A04.

[RESERVED](End Chapter 259A)Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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