2060.00.

Reservation.

The Exchange reserves the right to modify the settlement premium prior
to the start of the day's final clearing process if the settlement premium
arose from data entry errors made by or on behalf of the Exchange, and
modification of the settlement premium is necessary to prevent market
distortion. A written record shall be prepared setting forth the basis for
any modification.

OFFICIAL CLOSING PERIOD: FUTURES.

The closing period shall be the last thirty (30) seconds of the Spring Wheat open outcry trading

session,

2061.00.

OFFICIAL CLOSING PERIOD: OPTIONS.

eee | - - | Deleted: for both open outcry
- contracts and MGEXpress contracts

The closing period shall be the last sixty (60) seconds of the Spring Wheat open outcry trading |

session.

+1 ---[ Formatted: Indent: Left: 0°, First
line: 0”


a. among the premiums for the listed striking prices for the
option month; .

b. among the premiums for the different option months listed
for trading; and

c. between the premium for the relevant striking price and
the price of the underlying Futures Contract.

Where a settlement premium is established in accordance with this
section by Exchange staff, in conjunction with the Quotations Committee,
a written record shall be prepared setting forth the basis for the
establishment of such settlement premium.

MGEXpress® Contracts.

Promptly after the close of the trading session in each Options Contract,
the Exchange shall ensure that settlement premiums are calculated as
follows. The settlement premium shall be price consistent with the
minimum fluctuations of the Contract.

1. _ -{ Deleted: All trades executed during
the closing period, and subsequent
higher bids and lower offers that were
in existence at the close of the

2. Based on market conditions if the settlement premium established market, shall determine the closing

above is not representative of market conditions, or if the premium of range for each Contract,
settlement premium was inaccurately determined, then a new

settlement premium based on the settlement price of the

underlying Futures Contract and the previously prevailing

differentials may be established:

a. among the premiums for the listed striking prices for the
option month;

b. among the premiums for the different option months listed
for trading; and

c. between the premium for the relevant striking price and
the price of the underlying Futures Contract.

Where a settlement premium is established in accordance with this
section, a written record shall be prepared setting forth the basis for the
establishment of such settlement premium.

Open Outcry/MGEXpress® Contracts -

Settlement premiums for Options Contracts which have both Open
Outcry and MGEXpress® sessions shall be determined by the trading
session with the later closing time.


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Electronic Mail November 30, 2005

Ms. Jean A. Webb

Secretary of the Commission
Commodity Futures Trading Commission
Three Lafayette Centre

1155 21st Street NW

Washington, D.C. 20581

SUBJECT: Rule Certification
Dear Ms. Webb:

Pursuant to Commodity Exchange Act (“CEAct”) Section 5c(c)(1) and Commodity
Futures Trading Commission (“Commission”) Regulation 40.6(a), the Minneapolis Grain
Exchange (“MGEX"”) hereby certifies that the attached amended Regulations comply
with the CEAct and the regulations thereunder. The additions have been underlined
while the deletions have been marked through.

The purposes for amending the Regulations are to update the language describing the
daily settlement procedures for MGEXpress® contracts so as to conform with current
practice, and to clarify that the opening and closing periods only apply to the open
outcry traded Spring Wheat contracts. The amendments do not materially change the
terms or conditions of any commodity contracts.

Pursuant to the authority of MGEX Rule 210.01., the Board of Directors approved
amending the Regulations. The MGEX plans to implement the changes the next
business day after receipt of this notification to the Commission.

If there are any questions regarding this submission, please contact me at (612) 321-
7169. Thank you for your attention to this matter.

Sincerely,

Layne G. Carlson
Corporate Secretary
Enclosure
cc: Anne Reuter

Department of Audits and Investigations 130 Grain Exchange Building 400 South 4th Street Minneapolis, MN 55415-1413
800.827.4746 612.321.7165 Fax 612.321.7180 equal opportunity employer



2014.00. SETTLEMENT PRICES.
| Pursuant to the provisions of Rule 210.01., the Board of Directors has adopted this Regulation,
A Open Outcry Contracts.

Promptly after the close of trading in each Futures Contract, Exchange
staff, in conjunction with the Quotations Committee, shall compute
settlement prices for each contract month as follows. The settlement
price shall be price consistent with the minimum fluctuations of the
contract.

1. After the closing bell, all Brokers and Traders in the Pit shall
report to the Market Observer and a member of the Quotations
Committee all trades, bids and offers made in the closing period.
The settlement price shall be determined by the weighted average
of the trades and applicable bids and offers made in the closing
period.

2. if no trade occurs in the closing period, the settlement price shall
be the last trade price, unless there is a higher bid or lower offer.
if there is no trade during the day, the settlement price shall
remain unchanged, unless there is a higher bid or lower offer. In
such cases, the higher bid or lower offer shall be the settlement
Price.

3. If such settlement price is not consistent with the settlements in
other months or with market information known to the designated
Exchange official supervising the closing or to members of the
Quotations Committee, or if the settlement was inaccurately
determined, the designated Exchange official, with the advice of
the Quotations Committee, may establish a settlement price at a
level consistent with such other settlement prices or market
information and shall prepare a written record setting forth the
basis for any modification of such settlement price.

B. | MGEXpress® Contracts.

Promptly after the close of the trading session in each Futures Contract,
the Exchange shall ensure that settlement prices are calculated for each
contract month as follows. The settlement price shall be price consistent
with the minimum fluctuations of the contract.

.___ [he settlement price shall be the last trade price, unless there is a
higher bid or lower offer that existed at the close of the mark
there is no trade during the day, the settlement price shall remain
unchanged, unless there is a higher bid or lower offer that existed
at the close of the market. In such cases, the higher bid or lower
offer shall be the settlement price.

Formatted: Font: Not Bold }

Deleted: 1. All trades executed
during the closing period, and
subsequent higher bids and lower
offers that were in existence at the
close of the market, shall determine
the closing price or range for each
contract. The settlement price shall
be determined by the weighted
average of the trades, and applicable
bids and offers from the closing
period ]
1

2

Deleted: If no trade occurs in the
closing period, t



2015.00.

Pursuant to the provisions of Rule 210.01., the Board of Directors has adopted this Regulation.

A.

other months or with market information, or if the settlement was
inaccurately determined, a new settlement price may be
established at a level consistent with such other settlement prices
or market information and a written record setting forth the basis
for any modification of such settlement price shall be prepared.

Open Outcry/MGEXpress® Contracts, -
Settlement prices for Futures Contracts which have both Open Outcry
and MGEXpress® sessions shall be determined by the trading session
with the later closing time.

Reservation.

The Exchange reserves the right to modify the settlement price prior to
the start of the day's final clearing process if the settlement price arose
from data entry errors made by or on behalf of the Exchange, and
modification of the settlement price is necessary to prevent market
distortion. A written record shall be prepared setting forth the basis for
any modification.

SETTLEMENT PREMIUMS.

Open Outcry Contracts.

Promptly after the close of trading in each Options Contract, Exchange
staff, in conjunction with the Quotations Committee, shall compute
settlement premiums as follows. The settlement premium shall be price
consistent with the minimum fluctuations of the Contract.

1. Exchange staff shall review all trades executed during the closing
period, and subsequent higher bids and lower offers that were in
existence at the close of the market, to determine the closing
premium or. range for each Contract. Exchange staff, in
conjunction with the Quotations Committee, shall then determine
the settlement premiums by using a theoretical pricing model.

2. If Exchange staff, in conjunction with the Quotations Committee,
believes, based on its review of the market and market conditions
that the settlement premium established above is not
representative of market conditions, or if the settlement premium
was inaccurately determined, then Exchange staff may establish a
settlement premium based on the settlement price of the
underlying Futures Contract and the previously prevailing
differentials: