cme @

Chicago Mercantile Exchange
20 South Wacker Drive 312/930.1000 tel

Chicago, IL 60606-7499 312/466.4410 fax
www.cme.com e

March 15, 2006 ~

Ms. Jean A. Webb

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

Re: Rule Certification of Amendment to Rule 101A01.E for CME Live Cattle Options pursuant to CFTC
Regulation §40.6(a). CME Submission #06-21.

Dear Ms. Webb:

On March 15, 2006 the Exchange approved the following amendment to Rule 101A01.E-Exercise Prices
for CME Live Cattle Options to be effective for all contract months on April 10, 2006 (additions
underlined):

OPTIONS ON LIVE CATTLE FUTURES

101A01. OPTION CHARACTERISTICS
E. Exercise Prices
1. Options in the February Bi-Monthly Cycle

The exercise prices shall be stated in terms of cents per pound. For all contract months, exercise
prices shall be at intervals of 2¢; e.g., 60¢, 62¢, 64¢, etc. In addition, for the first two contract
month, some exercise prices shall also be at intervals of 1¢; e.g., 60¢, 61¢, 62¢, etc., as is
described below.

At the commencement of option trading in a contract month, the Exchange shall list put and call
options at intervals of 2¢ in a range 14¢ above and below the previous day's settlement price of
the underlying futures contract. When a sale, bid, offer, or settlement price in the underlying
futures contract occurs at, or passes through an exercise price, the Exchange shall list on the
next trading day put and call options at the next higher (or next lower) exercise price within a 14¢
range above (or below) the exercise price at which or through which the underlying futures sale,
bid, offer, or settlement price occurred.

When a contract becomes the second nearest contract month in the February bi-monthly cycle,
the Exchange shall add exercise prices at 1¢ intervals at a range 14¢ above and below the
previous day's settlement price. Thereafter, when a sale, bid, offer, or settlement price occurs at,
or passes through, any exercise price, the Exchange shall on the next trading day list put and call
options at the next higher (or next lower) exercise price within a 14¢ range above (or below) the
exercise price through which the underlying futures sale, bid, offer, or settlement price occurred.
In addition, when a sale, bid, offer, or settlement price occurs at, or passes through, any even-


numbered exercise prices; e.g., 60¢, 62¢, 64¢, the Exchange shall on the next trading day list put
and call options at the next higher (or next lower) even-numbered exercise price within a 14¢
range above (or below) the exercise price through which the underlying futures sale, bid, offer, or
settlement price occurred.

When a contract becomes the nearest contract month in the February bi-monthly cycle, the
Exchange shall add exercise prices at 1¢ intervals within the range that exercise prices at 2¢

intervals have been listed.

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.

The Exchange certifies that this amendment complies with the Act and rules thereunder. No substantive
opposing views have been expressed to the Exchange.

Please contact Jack Cook at 312-930-3295 or jcook@cme.com if any questions arise. Please reference
our CME Submission #06-21 on all correspondence for this.

Sincerely,