Ms. Jean A. Webb

April 6, 2006 ~
Page 6 of 13
Appendix 2: Clean Copy of the New Rules
CHAPTER 269
Israeli Shekel Futures
26900. SCOPE OF CHAPTER

26901.

This chapter is limited in application to futures trading in Israeli Shekelim versus the U.S.
dollar. The procedures for trading, clearing, delivery, settlement and any other matters not
specifically contained herein shall be governed by the rules of the Exchange.

FUTURES CALL

26901.A. Trading Schedule

Futures contracts shall be scheduled for trading and delivery during such hours and in such
months as may be determined by the Board of Directors.

26901.B. Trading Unit
The unit of trading shall be 1,000,000 Israeli Shekelim.

26901.C. Price Increments

Minimum price fluctuations shall be in multiplies of $.00001 per Israeli Shekel, equivalent to
$10.00 per contract. Trades may also occur in multiples of $.000005 per Israeli Shekel,
commonly referred to as one-half tick, for Israeli Shekel futures intra-currency spreads,
executed as simultaneous transactions on CME® Globex® pursuant to Rule 542.F.

26901.D. Position Limits and Accountability

A person owning or controlling more than 6,000 contracts net long or net short in all contract
months combined shall provide, in a timely fashion, upon request by the Exchange,
information regarding the nature of the position, trading strategy, and hedging information if
applicable; except that in no event shall such person own or control more than 2,000 contracts
in the spot month on or after the day one week prior to the termination of trading day. For
positions involving options on Israeli shekel futures, this rule is superseded by the option
position limits and accountability rule.

In addition, the Exchange President or his designee or the Business Conduct Committee may
require, at their discretion, that such positions not be further increased.

26901.E. Accumulation of Positions

For the purposes of this rule, the positions of all accounts directly or indirectly owned or
controlled by a person or persons, and the positions of all accounts of a person or persons
acting pursuant to an expressed or implied agreement or understanding, and the positions of
all accounts in which a person or persons have a proprietary or beneficial interest, shall be
cumulated.


Ms. Jean A. Webb
April 6, 2006
Page 11 of 13

269A03.

269A04.

EXERCISE

In addition to the applicable procedures and requirements of Chapter 7, the following shall
apply to the exercise of option contracts on Israeli Shekel futures.

269A03.A. Exercise of Option by Buyer

An option may be exercised by the buyer on any business day that the option is traded. To
exercise an option the clearing member representing the buyer shall present an exercise notice
to the Clearing House by 7:00 p.m. on the day of exercise.

All Israeli Shekel options that are in the money” and have not been liquidated or exercised
prior to the termination of trading, shall, in the absence of contrary instructions delivered to
the Clearing House by 7:00 p.m. on the day of expiration by the clearing member
representing the option buyer, be exercised automatically.

269A03.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 assigned by the Clearing 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 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 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
by the Clearing House of the exercise notice.

EMERGENCIES, ACTS OF GOD, ACTS OF GOVERNMENT

If exercise, assignment, or delivery or any precondition or requirement thereof is prevented
by strike, fire, accident, act of government or act of God, the seller or buyer shall
immediately notify the Exchange President. If the President determines that emergency
action may be necessary, he shall call a special meeting of the Board of Directors and arrange
for the presentation of evidence respecting the emergency condition. If the Board determines
that an emergency exists, it shall take such action as it deems necessary under the
circumstances and its decision shall be binding upon all parties to the contract.

(End Chapter 269A)

? an option is in the money if the settlement price of the underlying futures contract at termination lies above the exercise price inthe case of aca, or lies below the
exercise price in the case of a put.


Ms. Jean A. Webb

April 6, 2006
Page 8 of 13
CHAPTER 269A
Options on Israeli Shekel Futures
269A00. SCOPE OF CHAPTER

269A01.

This chapter is limited in application to trading in put and call options on Israeli Shekel
futures contracts. The procedures for trading, clearing, inspection, delivery and settlement
and any other matters not specifically covered herein shall be governed by the rules of the
Exchange.

OPTION CHARACTERISTICS

269A01.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 Board of
Directors.

There shall be no trading in any Israeli Shekel option contract when the primary futures
contract for that currency is limit bid or offered.

For purposes of this rule, the primary futures contract shall be defined as the futures contract
trading in the lead month configuration in the pit.

For purposes of this rule, Exchange staff for the Israeli Shekel shall have the responsibility of
determining during RTH whether the primary futures contract is limit bid or offered. During
Electronic Trading Hours (ETH), the determination shall be made by the GLOBEX Control
Center.

269A01.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 Israeli Shekel futures contract as specified in Chapter 269.

269A01.C. Price Increments

The price of an option shall be quoted in U.S. dollars per Israeli Shekel. Each $.00001 per
Israeli Shekel (one point) shall represent $10.00. For example, a quote of .00075 represents
an option price of $750.00 (75 points x $10.00 per point). The minimum fluctuation shall be
one point (also known as one tick). A trade may also occur at a price of $.000005 ($5.00,
also known as one-half tick), $.000015 ($15.00, also known as one and one-half ticks),
$.000025 ($25.00, also known as two and one-half ticks), $.000035 ($35.00, also known as
three and one-half ticks), and $.000045 ($45.00, also known as four and one-half ticks).

269A01.D. Underlying Futures Contract

The underlying futures contract is the nearest futures contract in the March quarterly cycle
(ie, March, June, September and December) whose termination of trading follows the
option's last day of trading by more than two Exchange business days. This rule applies to
March quarterly, serial, and weekly options on Israeli Shekel futures contracts.


Ms. Jean A. Webb
April 6, 2006
Page 7 of 13

26902.

26902.B.

26903.

26901.F. Exemptions

The foregoing spot position limits shall not apply to bona fide hedge positions meeting the
requirements of Regulation 1.3(z)(1) of the CFTC and the rules of the Exchange, and shall
not apply to other positions exempted pursuant to Rule 543.

26901.G. Termination of Trading

Futures trading shall terminate on the second business day immediately preceding the third
Wednesday of the contract month. If the foregoing date for termination is a bank holiday in
Chicago or New York City, futures trading shall terminate on the next preceding business day
common to Chicago and New York City banks and the Exchange.

26901.H. Contract Modifications

Specifications shall be fixed as of the first day of trading of a contract, except that all
deliveries must conform to government regulations in force at the time of delivery. If any
national or international government agency or body issues an order, ruling, directive or law
that conflicts with the requirements of these rules, such order, ruling, directive or law shall be
construed to take precedence and become part of these rules and all open and new contracts
shall be subject to such government orders.

SETTLEMENT PROCEDURES

26902.A. Physical Delivery
1. Procedures

In addition to the procedures and requirements contained in this chapter, delivery procedures
shall be governed by the rules set forth in Chapter 7.

2. Delivery Days

Delivery shall be made on the third Wednesday of the contract month. If that day is not a
business day in the country of delivery or is a bank holiday in either Chicago or New York
City, then delivery shall be made on the next day which is a business day in the country of
delivery and is not a bank holiday in Chicago or New York City .

[Reserved]

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD

If the Exchange President determines that an emergency exists and/or physical delivery is
prevented by strike, fire, accident, act of government, or act of God, he shall call a special
meeting of the Board of Directors and arrange for the presentation of evidence respecting the
emergency condition. If the Board determines that an emergency exists, it shall take such
action as it deems necessary under the circumstances and its decision shall be binding upon
all parties to the contract.

(End Chapter 269)


Ms, Jean A. Webb
April 6, 2006
Page 10 of 13

269A02.

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 Options

Trading in weekly options shall terminate at the close of trading on those Thursdays 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 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.

269A01.1. Contract Modification

Specifications shall be fixed as of the first day of trading of a contract except that all options
must conform to government regulations in force at the time of exercise. If the U.S.
government, an agency, or duly constituted body thereof issues an order, ruling, directive, or
law inconsistent with these rules, such order, ruling, directive, or law shall be construed to
become part of these rules and all open and new options contracts shall be subject to such
governmental orders.

269A01.J. Exercise Prices

Regular exercise prices shall be stated in terms of U.S. dollars per Israeli Shekel at intervals
of $.001, e.g., $.213, $.214, $.215, etc.

LISTING OF EXERCISE PRICES
1. Monthly Options in the March Quarterly Cycle ("Quarterly Options")

At the commencement of trading in a contract month, the Exchange shall list put and call
options at the regular exercise price that is nearest the previous day's settlement price of the
underlying futures contract. For options on Israeli Shekel futures, the Exchange shall list put
and call options at the next twenty-one higher and next twenty-one lower regular exercise
prices.

When a sale, bid, offer, or settlement price in the underlying futures occurs within half a
regular exercise price interval of the twenty-first highest or twenty-first lowest existing
regular exercise price for options on Israeli Shekel futures, put and call options at the next
higher or next lower regular exercise price shall be listed for trading on the next trading day.
New options may be listed for trading up to and including the termination of trading.

The Board may modify the provisions governing the establishment of exercise prices as it
deems appropriate.

2. Options Not in the March Quarterly Cycle ("Serial" and "Weekly Options")

Upon demand, the Exchange shall list put and call options at any regular exercise price listed
for trading in the next March quarterly cycle futures option that is nearest the expiration of
the option. New options may be listed for trading up to and including the termination of
trading.


cme @

Chicago Mercantile Exchange
20 South Wacker Drive 312/930.1000 tel
Chicago, IL 60606-7499 312/466.4410 fax

www.cme.com

April 6, 2006

Ms. Jean A. Webb

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre . ~
1155 21st Street, NW fs
Washington, DC 20581

RE: Section 5c(c) and Regulations §40.2 and §40.6(a) Submission, Exchange Certification fér:
Listing of New CME Israeli Shekel Futures and Options on Israeli Shekel Futures Contracts; and n
Amendments to Chapter 7 Delivery Rules.
CME Submission 06-36.

Dear Ms. Webb:

Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) hereby certifies with the Commission
the listing for trading of CME Israeli Shekel Futures and CME Options on Israeli Shekel Futures
contracts. The Exchange certifies that these futures and options contracts and the necessary amendments
to Exchange’s deliveries chapter comply with the Act and rules thereunder. CME will list these
physically-delivered futures and their options contracts for trading on the CME® Globex® electronic
trading system. CME Israeli Shekel futures and options on futures contracts will expand the CME foreign
exchange (FX) product line. Trading will be initiated Sunday, May 7, 2006 at 5:00 p.m. on CME Globex
for the trade date of Monday, May 8, 2006. The first futures delivery month will be June 2006.

1. Initial Contract Months Listed _for the Trading Date of Monday, May 8, 2006

Futures: Jun. 2006, Sep. 2006, Dec. 2006, Mar. 2007, Jun. 2007, Sep. 2007
Options: Jun. 2006, Sep. 2006, Dec. 2006, Mar. 2007 plus serials Jul. 2006, Aug. 2006 and weeklies
[initial “5/11/06” weekly option will not be listed] 5/18/06, 5/25/06 and 6/1/06.

2. Listing Procedures for Adding New Contract Listings

CME Israeli Shekel. Futures Contract: Listing Procedures

Contract Month Termination Date Delivery Date

Initial Futures Months | June 2006 6/19/06* 6/21/06
September 2006 9/18/06 9/20/06
December 2006 12/18/06 12/20/06
March 2007 3/19/07 3/21/07
June 2007 6/18/07 6/20/07
September 2007 9/7/07 9/9/07

New Futures Month

Added for Trading on

Tuesday, June 20, 2006, | December 2007 12/17/07 12/19/07

the Day Following

Termination of Nearby

Contract.*



Ms. Jean A. Webb
April 6, 2006
Page 13 of 13

Appendix 3: Amendments for CME Israeli Shekel Futures Deliveries

CHAPTER 7
NON-CLS (LEGACY) CURRENCY DELIVERIES

[Additions are underlined and deletions are bracketed. CME Rules 736 to 737.A. are unchanged.]

737.B. Physical Delivery Currency Cross-Rate and Israeli Shekel Contracts

A clearing member representing a customer that intends to accept delivery of a Physical
Delivery Currency Cross-Rate or Israeli Shekel Contract in liquidation of his position shall,
no later than 11:00 a.m. on the last day of trading, present to the Clearing House a Buyer's
Non-CLS Delivery Commitment. In addition by 1:00 p.m. on the first day preceding the
delivery day that is a business day common to the Exchange, Chicago banks and New York
City banks, the clearing member shall either deposit, or present a Bank Order to Pay, an
amount in the minimum-fluctuation currency equal to the contract value based on the
settlement price on the last day of trading. Such deposit shall be in the form of same-day
funds to an account at a bank designated by the Clearing House. The bank Order to Pay shall
be in a form approved by the Clearing House, and shall promise.to pay same-day funds on the
delivery day.

[CME Rules 737.C. to 738.A. are unchanged.]

738.B. Physical Delivery Currency Cross-Rate and Israeli Shekel Contracts

The clearing member representing a customer making delivery of a Physical Delivery
Currency Cross-Rate or Israeli Shekel Contract, except for cross-rate contracts referenced in
Rule 738.A., in liquidation of his position shall, no later than 11:00 a.m. on the last day of
trading, present to the Clearing House a Seller's Non-CLS Delivery Commitment. In addition
by 1:00 p.m. on the first day preceding the delivery day that is a business day common to the
Exchange, Chicago banks and New York City banks, the clearing member shall either
deposit, or present a Bank Order to Pay, an amount equal to the trading unit. Such deposit
shall be in the form of same-day funds to an account at a bank designated by the Clearing
House. The Bank Order to Pay shall be in a form approved by the Clearing House, and shall
promise to pay same-day funds on the delivery day. The Seller shall have made all
provisions necessary to receive delivery of the minimum-fluctuation currency within the
country of issuance. The Seller’s clearing member shall be responsible for delivering the
foreign currency on the delivery date to a bank designated by the Clearing House. The
Exchange reserves the right to eliminate the requirement for sellers to post a Bank Order to
Pay in the event that a given country’s payments systems, which previously required a prior
Bank Order to Pay posting, implements same-day finality of payment.

Subject to the preceding two paragraphs, if the Seller's Non-CLS Delivery Commitment is
received later than 11:00 a.m. on the last day of trading, but not later than 8:00 a.m. on the
day following the last day of trading, the seller's clearing member shall be assessed a fine on
a per-contract basis, the amount to be determined by Exchange staff. Any deliveries
memoranda or instructions received subsequent to 8:00 a.m. on the day following the last day
of trading, shall be deemed a delivery obligation failure and acted upon in accordance with
Rule 743.B.

[CME Rules 738.C. through 743.B. are unchanged.]



Ms. Jean A. Webb
April 6, 2006
Page 12 of 13

INTERPRETATIONS & SPECIAL NOTICES
RELATING TQ CHAPTER 269A

CLARIFICATION OF NEW: NON-AGRICULTURAL OPTION SPECULATIVE POSITION
LIMIT RULE

(Special Executive Report S-1618, March 31, 1986)

Please note that the new non-agricultural option speculative position limit rule supersedes the speculative
position rule for the underlying futures contract. Therefore, for example, a trader may hold a gross
futures position that exceeds the futures position limit rule if that gross position is part of a spread with
options, such that the net position across options and futures is less than the applicable limit set in the
option rule.



Ms. Jean A. Webb
April 6, 2006
Page 9 of 13

269A01.E. Position Limits and Accountability

A person owning or controlling a combination of options and underlying futures contracts
that exceeds 6,000 futures-equivalent contracts net on the same side of the market in all
contract months combined for Israeli shekel futures and options shall provide, in a timely
fashion, upon request by the Exchange, information regarding the nature of the position,
trading strategy, and hedging information if applicable. In addition, the Exchange President
or his designee or the Business Conduct Committee may require, at their discretion, that such
positions not be further increased. However, in no event shall a person own or control more
than 2,000 futures-equivalent contracts in the spot month on or after the day one week prior
to the underlying futures termination of trading day for the Israeli shekel.

For the purpose of this rule, the futures equivalent of an option contract is 1 times the
previous business day's IOM risk factor for the option series. Also for purposes of this rule, a
long call option, a short put option and a long underlying futures contract are on the same
side of the market; similarly, a short call option, a long put option and a short underlying
futures contract are on the same side of the market.

269A01.F. Accumulation of Positions

For the purposes of this rule, the positions of all accounts directly or indirectly owned or
controlled by a person or persons, and the positions of all accounts of a person or persons
acting pursuant to an expressed or implied agreement or understanding, and the positions of
all accounts in which a person or persons have a proprietary or beneficial interest, shall be
cumulated.

269A01.G. Exemptions

The foregoing position limits shall not apply to commercially appropriate risk reducing
option positions defined in accordance with Regulation |.3(z)(1) of the CFTC and meeting
the requirements of Rule 543 and shall not apply to other option positions exempted pursuant
to Rule 543.

269A01.H. Termination of Trading
1. Monthly Options in the March Quarterly Cycle ("Quarterly Options")

Trading in monthly options in the March quarterly cycle (i.e, March, June, September and
December) shall terminate at the close of trading on the second Thursday 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 the close of trading on the
second Thursday 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


Ms. Jean A. Webb
April 6, 2006

Page 5 of 13

Appendix 1: Summary Terms & Conditions for CME Israeli Shekel Futures and Options

Fatores

Options on Futures

Contract Size

1,000,000 Israeli Shekelim (pl. Shekel) equal approximately to USD
213,700 as of 3/28/06

‘One futures contract

Sample Quote

$0.21370 per Israeli Shekel (ILS) = 4.6795 Shekelim/USD

‘A quote of .00035 represents an option premium of $350
(1,000,000 ILS x $.00035 per ILS)

Minimum Price
Fluctuation
(Tick)

$0.00001 per Israeli Shekel ($10.00/contract or approximately 46.79
ILS at current exchange rates). Also, trades can occur in $0.000005
per Israeli shekel increments ($5.00/contract) for ILS futures intra-
currency spreads executed on CME® Globex®

$.00001 per Israeli shekel = $10.00/contract; also, trades may
‘occur at $.000005 ($5.00), $.000015 ($15.00), $.000025
(825.00), $.000035 ($35.00), $.000045 ($45.00), which are
less than fiye ticks of premium.

Trading Hours

‘Sundays through Fridays: 5:00 p.m. to 4:00 p.m. Central Time (CT)
the next day. On Friday CME Globex platform closes at 4:00 p.m.
and reopens Sunday at 5:00 p.m. CT.

Same as futures.

Months

Six (6) months in the March quarterly cycle, ie., March, June,
September and December

Quarterly Options: four (4) months in the March quarterly
cycle,

Serial Options: two (2) serial option months (non-March
cycle months, e-g., January, February, April, May, July,
August, October and November).

Weekly Options: four (4) weekly options listed.

Last Trading Day

Trading ceases at 9:16 a.m. CT on the 2TM business day before the 3°
Wednesday of the contract month. If that day is not a CME business
day, then the termination of trading will be at the same time on the
preceding business day

‘Quarterly and Serial Options: 2nd Thursday preceding the
3rd Wednesday of the contract month.

Weekly Options: four (4) nearest Thursdays that are not
also terminations for quarterly and serial options.

Israeli sheKelim are physically delivered through approved delivery

NA

Physical banks in Israel and U.S. dollars payments delivered through
elivery | approved delivery banks in the U.S. (designated by CME)
“3° Wednesday of the contract month. Ifnot a bank business day in| NA
. the country of delivery or for Chicago and New York City (NYC)
Delivery Day | y,5ks, then delivery occurs on the next business day in the country of
delivery, Chicago and NYC banks
Strike Prices | NA $.001 per Israeli shekel, e.g., $.212, $.213, $.214
‘American Style: In-the-money options auto-exercised at
As Exercise! NA expiration. Options may be exercised until 7:00 p.m. CT on
signment any business day the option is traded.
Position |... person owning or controlling a combination of options
Accountability | Positions more than 6,000 contracts net long or short in all contract | and underlying futures contracis that exceed 6,000 futures-
months combined must provide, in a timely fashion, upon request by | equivalent contracts net on the same side of the market in
the Exchange, information regarding the nature of the pos all contract months combined, will provide, in a timely
fashion, upon CME’s request, information regarding the
nature of the position.
Spot Position No per than 2,000 Contracts net long or short in the spot month one} No more than 2,000 futures-equivalent contracts net long or
Limits | “°c Prior to termination. short in the spot month 1 week prior to termination.
Maximum Price | ___ , ; ‘Same level of options price banding on CME Globex as for
Fluctuation | Price banding in effect at +0006 (60 ticks) for outrights, #0001 (10 | the underlying futures. ‘Trading halted when underlying

(Price Limits)

ticks) for spreads’

futures is locked at limit (currently, no price limit in the
underlying futures).

Ticker Symbol | ILS Same
Commodity Is
Code Same

Please contact John W. Labuszewski, Managing Director, Research & Product Development at 312-466-
7469 or jlab@cme.com; or Steve Youngren, Associate Director, Financial Product Development at 312-

930-4583 or syoungre@cme.com

* No price limits.

;. However, for CME Globex trading, automated price bandi

prevents execution of orders at prices falling outside

of the last sale, best bid or best offer and + the price band, Price banding prevents the entry of limit orders more than a pre-
determined amount above the last price in the case of bids and more than the same pre-determined amount below the last price in
the case of offers. The band “shadows” the last foreign exchange futures price as it reacts to new transaction prices, higher bids
and lower offers.



Ms. Jean A. Webb
April 6, 2006
Page 4 of 13

terminate on any other Thursdays that are not termination days for March quarterly and serial month
shekel options. Israel-based market participants preferred Thursday terminations for CME Israeli Shekel
options rather than Fridays due to the opinion that liquidity in the underlying CME Israeli Shekel futures
may decrease on Fridays in general (due to the observation of the Sabbath) and be somewhat more limited
after 1:00 p.m. Israel time (8 hours ahead of Chicago or 5:00 a.m. Chicago time). By terminating CME
Israeli Shekel options on Thursday, there is a greater likelihood of liquidity in the underlying CME Israeli
Shekel futures contracts when market participants may look to offset assigned CME Israeli Shekel futures
contracts from exercised options.

Appendix 3 presents amendments to Chapter 7 of the CME Rulebook to cover procedures for
CME Israeli Shekel Futures contract physical deliveries. Please note that the Israeli Shekel is not yet
eligible for delivery through CLS (Continuous Linked Settlement). Therefore, CME Israeli Shekel
futures deliveries will be made under CME’s “Non-CLS” delivery rules. Also, currently, there is no same-
day finality of payment for the Israeli Shekel. Therefore, CME’s currency delivery procedures require
“dual orders to pay” (for sellers as well as buyers) to guarantee performance in the delivery process. As
the Commission is aware, “dual orders to pay” were a prior requirement for CME South African Rand
futures deliveries before the South African payments system adopted same-day finality of payment, and
are still a requirement for CME currency cross-rate futures deliveries. Since Israel is working towards
same-day finality of payment, the Exchange has included generic language in CME Chapter 7 delivery
tules such that when a given country’s payments system adopts same-day finality of payment, CME will
drop the requirement for “seller’s orders to pay” for that country’s currency futures deliveries. CME has
chosen Citibank as CME’s agent delivery bank for CME Israeli Shekel futures deliveries.

Members/shareholders will be notified of these amendments in a CME Special Executive Report,
S-4440, dated Friday, April 7, 2006.

If you require any additional information regarding this action, please do not hesitate to contact
Mr. Steven Youngren at 312-930-4583 or via e-mail at syoungre@cme.com. Please reference our CME
Submission 06-36 on all future correspondence regarding this notification.

Sincerely,

John W. Labuszewski
Managing Director, Research & Product Development

Attachments


Ms. Jean A. Webb

April 6, 2006
Page 3 of 13
CME Israeli Shekel Options Contract Listing Procedures
Options Type Series Termination Date
Initial Options | Weekly Initial “5/11/06” not listed Initial “5/11/06” not listed
Weekly 5/18/06 5/18/06
Weekly 5/25/06 5/25/06
Weekly 6/1/06 6/1/06
March Quarterly June 2006 6/8/06
Serial July 2006 7/6/06
Serial August 2006 8/3/06
March Quarterly September 2006 9/7106
March Quarterly _ December 2006 12/7/06
March Quarterly March 2007 3/8/07
New Options
Added for
Trading on Weekly 6/15/06 6/15/06
Day Following (listed on 5/12/06, the day

Termination of

Nearby Series. following the theoretical

“5/11/06” weekly option
termination date)

Weekly 6/22/06 6/22/06
(listed on 5/19/06)

Weekly 6/29/06 6/29/06
(listed on 5/26/06)

Weekly, etc. 7/13/06 7/13/06
(listed on 6/2/06)

March Quarterly June 2007 6/7/07
(listed on 6/9/06)

Serial October 2006 10/5/06
(listed on 7/7/06)

Serial November 2006 11/2/06
(listed on 8/4/06)

March Quarterly, etc. September 2007 9/6/07

(listed on 9/8/06)

3. Trading Hours

CME Israeli Shekel Futures and CME Options on Israeli Shekel Futures will be traded
exclusively on the CME Globex electronic trading system on Sundays through Fridays from 5:00 p.m. to
4:00 p.m. Central Time (CT) on the next day. Please note that on Friday the CME Globex platform closes
at 4:00 p.m. and reopens Sunday at 5:00 p.m. CT.

4, Contract Specifications

Appendix } provides a contract specifications summary sheet. Appendix 2 contains the detailed
CME Israeli Shekel Futures and Options contract terms for insertion into the CME Rulebook. Please note
that CME has specified the termination of trading for the March quarterly and serial month CME Israeli
Shekel Options to be the second Thursday immediately preceding the third Wednesday of the contract
month (as opposed to the “second Friday” for other CME foreign exchange options). Weekly options will