Chapter 417
Nasdaq Veles California Water Index Futures
41700.

41701.

SCOPE OF CHAPTER

This chapter is limited in application to Nasdaq Veles California Water Index Futures contract(“futures”). In addition to this chapter, futures shall be subject to the general rules and regulationsof the Exchange as applicable.

CONTRACT SPECIFICATIONSEach futures contract shall be valued at 10 acre feet times the value of Nasdaq Veles California
Water Index (NQH2O).

41702.

TRADING SPECIFICATIONS
41702.A.

Trading Schedule

Futures contracts shall be scheduled for trading during such hours and for delivery in such months
as may be determined by the Exchange.
41702.B.
Trading Unit
The unit of trading shall be 10 acre feet times Nasdaq Veles California Water Index (NQH2O).
41702.C.

Price Increments

The minimum price increment shall be $1.00 per acre foot, equal to $10.00 per contract, except
for intermonth spreads executed pursuant to Rule 542.A., for which the minimum price increment
shall be $0.25 per acre foot, equal to $2.50 per intermonth spread.
41702.D. Position Limits, Exemptions, Position Accountability and Reportable LevelsThe 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 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.
41702.E. Price Limits and Trading HaltsAt 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 andDaily Price Limits Table in the Interpretations & Special Notices Section of Chapter 5.
41702.F. Termination of Trading

41703.

Trading in expiring futures shall terminate at 4:00 p.m. Chicago time on the Business Day
preceding the third Wednesday of the contract month, otherwise the next CME Business Day.

SETTLEMENT PROCEDURES

Delivery shall be by cash settlement.
41703.A.

Final Settlement Price

For a futures contract for a given delivery month, the Final Settlement Price shall be the Nasdaq
Veles California Water Index (NQH2O) price published on the next Business Day following the Last
Trade Date (Rule 41702.F.).
In the event that the Nasdaq Veles California Water Index (NQH2O) is not publishable or publishedon the Business Day following the Last Trade Date, and therefore, the Exchange cannot determine
the futures contract’s Final Settlement Price, then final settlement of the futures contract will be at
the discretion of the Exchange and may be deferred or postponed for up to 14 consecutive
calendar days.
41703.B. Final Settlement
Clearing members holding open positions in an expiring futures contract at its termination oftrading (Rule 41702.F.) shall make payment to or receive payment from the Clearing House inaccordance with normal variation margin procedures based on such expiring contract’s Final© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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41704.

Settlement Price (Rule 41703.A.).

DISCLAIMER

The Nasdaq Veles California Water Index Futures are not sponsored, endorsed, sold or promotedby Nasdaq, Inc. (including its affiliates) (Nasdaq, with its affiliates, are referred to as theCorporations). The Corporations have not passed on the legality or suitability of, or the accuracy
or adequacy of descriptions and disclosures relating to, the Nasdaq Veles California Water Index
Futures. The Corporations make no representation or warranty, express or implied to the ownersof the Nasdaq Veles California Water Index Futures or any member of the public regarding theadvisability of investing in securities generally or in the Nasdaq Veles California Water Index
Futures particularly, or the ability of the Nasdaq Veles California Water Index™ to track generalstock market performance. Nasdaq has no obligation to take the needs of the CME or the ownersof the Nasdaq Veles California Water Index Futures into consideration in determining, composingor calculating the Nasdaq Veles California Water Index™. The Corporations are not responsible
for and have not participated in the determination of the timing of, prices at, or quantities of theNasdaq Veles California Water Index Futures to be issued or in the determination or calculationof the equation by which the Nasdaq Veles California Water Index Futures are to be converted
into cash. The Corporations have no liability in connection with the administration, marketing or
trading of the Nasdaq Veles California Water Index Futures.
THE CORPORATIONS DO NOT GUARANTEE THE ACCURACY AND/OR UNINTERRUPTEDCALCULATION OF THE NASDAQ VELES CALIFORNIA WATER INDEX™ OR ANY DATAINCLUDED THEREIN. THE CORPORATIONS MAKE NO WARRANTY, EXPRESS OR IMPLIED,AS TO RESULTS TO BE OBTAINED BY CME, OWNERS OF THE NASDAQ VELESCALIFORNIA WATER INDEX FUTURES, OR ANY OTHER PERSON OR ENTITY FROM THEUSE OF THE NASDAQ VELES CALIFORNIA WATER INDEX™ OR ANY DATA INCLUDEDTHEREIN. THE CORPORATIONS MAKE NO EXPRESS OR IMPLIED WARRANTIES, ANDEXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR APARTICULAR PURPOSE OR USE WITH RESPECT TO THE NASDAQ VELES CALIFORNIAWATER INDEX™ OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THEFOREGOING, IN NO EVENT SHALL THE CORPORATIONS HAVE ANY LIABILITY FOR ANYLOST PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL
DAMAGES, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
(End Chapter 417)

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

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