Futures

Inter-Commodity Futures Spreads
AILNYMEXJatra-commadity Combinations
NYMEX Inter Commodity Futuros- Sproads
NYMEX Strips

Options on Futures

Interest Rate Options

All Eurodollar Covered Strategies

Prices below or equal to 5 basis points
Prices greater than 5 through 15 basis points
Prices greater than 15 through 25 basis points
Prices greater than 25 basis points

Interest Rate Options Combinations (Deltas
greater than 50%)

Equity Index Options

Any premium level

Currency Options

Any premium level

No Bust Range

The wider of the no bust ranges of the two
individual legs

The-wideroHthe-ne-bustranges-obthe two

No Bust Range

1 basis point

1 basis point
1.5 basis points
2 basis points
2.5 basis points
2.5 basis points

20% of premium (up to 3.00 index points with a
minimum of 1 tick) or less

20% of premium (up to 10 ticks with a minimum
of tick) or less


cme @

Chicago Mercantile Exchange

20 South Wacker Drive
Chicago, IL 60606-7499
www.cme.com

November 22, 2006

Ms. Eileen Donovan

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre -
1155 21 Street, N.W.

Washington, D.C. 20581

RE: CME Rule 588.C. (“Trade Price Adjustment and Cancellation Process”) and
CME Rule 588.K. (“Globex No Bust Ranges”)
Submission No. 06-101

Dear Ms. Webb:

Chicago Mercantile Exchange Inc. (“CME” or “Exchange") hereby notifies the Commission that
the Exchange has approved an amendment to Rule 588.C. to clarify the types of contracts listed in the
Liability for Losses Resulting from a Price Adjustment or Trade Bust section and Rule 588.K to remove
the delisted Agency Notes contract as well as make changes to the No Bust Ranges for the NYMEX
contracts and descriptions of the Futures Combinations contracts. The rule changes are attached with
the additions underlined and deletions lined out.

The Exchange certifies that this regulatory advisory neither violates nor is inconsistent with any
provision of the Commodity Exchange Act or of the rules and regulations thereunder.
If you have any questions regarding this matter, please call me at (312) 648-5422.

Sincerely,

/S/ Stephen M. Szarmack
Director and Associate General Counsel

SMS/eim/5996 Sub No. 06-101.doc


588.

GLOBEX TRADE CANCELLATIONS
[No changes to 588.A.-B.]

588.C.

Trade Price Adjustment and Cancellation Process

The GCC will first determine whether the trade price is within the No Bust Range for the contract pursuant to
Section K. During fast market conditions, upon the release of significant news events, or in other circumstances
in which the GCC determines it is appropriate, the GCC may temporarily double the published No Bust Range
without prior notice. In applying the No Bust Range, the GCC shall determine the actual or implied market price
for that contract immediately before the trade under review. The GCC may consider any relevant information,
including but not limited to the existing market conditions, the volatility of the market, the prices of related
instruments in other markets, the last trade price on GLOBEX, a better bid or offer price, a more recent price in a
different contract month, the price of the same or related contract established in open outcry trading, theoretical
value of an option based on the current (most recent) implied volatility, “RFQs,” and any other factors that the
GCC deems relevant.

Trade Price Inside the No Bust Range

If the GCC determines that the price of the trade was inside the No Bust Range, the GCC will promptly issue
an alert indicating that the trade shall stand.

Trade Price Outside the No Bust Range

1.

a.

Implied-Eligible Contracts

If the GCC determines that a trade price is outside the applicable No Bust Range for an implied-eligible
contract, the trade price shall be adjusted to a price that equals the actual or implied market price for
that contract at the time of the questioned trade, plus or minus the standard or doubled No Bust Range,
as may be applicable. The GCC will promptly issue an alert indicating that the prices of the trades
outside the No Bust Range have been adjusted to the No Bust Range limit.

For example, if the standard No Bust Range for Eurodollars or LIBOR is 2.5 points above and below the
market price and the doubled No Bust Range was in effect at the time of the transactions, all trade
prices outside the doubled No Bust Range shall be adjusted to the applicable No Bust Range limit, i.e.,
5 points above or below the market price.

All Other Futures and Option Contracts

\f the GCC determines that the trade price is outside the No Bust Range for a non-implied-eligible
contract, the GCC shall bust the trade. The GCC will promptly issue an alert indicating that trades
outside the No Bust Range have been busted.

Notwithstanding the above, trades consummated pursuant to Rule 585 that are determined by the GCC.
to be outside the No Bust Range will stand, and a reciprocal trade negating the original trade will be
consummated by means of a “type 8 transfer.”

Liability for Losses Resulting from a Price Adjustment or Trade Bust

a.

Implied Eligible Contracts — Adjusted Stop Orders

A party responsible for an order(s) that results in a trade price adjustment shall be liable for actual
losses incurred by persons whose stop orders were elected as a result of the order(s). The
compensable loss on each futures contract executed as part of a stop order shall be the difference
between the adjusted price, as determined by the GCC, and the price in the market at the time the
person knew or should have known that his stop order was erroneously elected.

Implied Eligible Contracts — Adjusted Spread Trades

A party responsible for an order that results in a trade price adjustment shall not be liable to persons
whose spread orders were executed and adjusted unless the adjusted execution price of the spread is
less favorable than the market equilibrium spread price for the relevant spread. The liability of the party
responsible for an order that results in a price adjustment shall be limited to the difference between the
adjusted price and the equilibrium market price, but shall not exceed the relevant No Bust Range.

Implied Eligible Contracts - Other Transactions

A party responsible for entering an order that results in a trade price adjustment shall not be liable for
losses incurred by persons whose trade prices were adjusted, except as provided in 3.a. and 3.b.
above.

All Other Futures and Options Contracts

A party responsible for an order that results in a trade bust may be liable for the reasonable out-of-
pocket losses incurred by persons whose trades were busted or persons whose stop orders were
elected and not busted. Issues of liability in such cases will be determined based upon all relevant facts
and circumstances, including the conduct of the respective parties. All claims in connection with such
losses must be pursued under the applicable rules of Chapter 6.


[No changes to 588.D.-J.]
588.K. GLOBEX No Bust Ranges.

Futures

Eurodollar, E-mini Eurodollar and LIBOR
E-mini Eurodollar Bundle

T-Bills

Ageney-Notes

Swaps

CPI Futures

Eurozone HICP Futures

Currency Futures (except British pound and
Mexican Peso)

British Pound Futures and Mexican Peso
Futures

S&P 500 and E-mini S&P 500

S&P Citigroup Growth

S&P Citigroup Value

S&P Midcap 400 and E-mini S&P Midcap 400
S&P Smalicap 600

E-Mini S&P Asia 50

E-Mini MSCI EAFE

S&P 500 Depository Receipts

Russell 2000 and E-mini Russel! 2000
E-mini Russell 1000

iShares Russell 2000

Nasdaq-100 and E-mini Nasdaq-100
E-mini Nasdaq Composite

E-mini Nasdaq Biotechnology

Nasdaq-100 index Tracking Stock

Nikkei 225 ($ and ¥)

‘S&P 500 Technology SPCTR

S&P 500 Financial SPCTR

Housing Futures

TRAKRS Futures

Goldman Sachs Commodity Index

CME Weather

CME Snowfall

Lean Hogs

Live Cattle

Feeder Cattle

Pork Bellies

Butter (Cash-Settled)

Milk

Urea

DAP

UAN

Ethanol

NYMEX Crude Oil and NYMEX miNY Crude Oil
NYMEX Brent and NYMEX miNY Brent
NYMEX REBCO.

NYMEX Natural Gas and NYMEX miNY Natural
Gas

NYMEX Natural Gas (last-day) futures
NYMEX Healing Oil and NYMEX miNY Heating
Oil

NYMEX RBOB Gasoline and NYMEX miNY
RBOB Gasoline

NYMEX Unleaded Gas

NYMEX Propane

NYMEX Singapore 380 Fuel Oil

NYMEX Gas Oi!

NYMEX Palladium

NYMEX Platinum,

Futures Combinations

AlLNen-Implied Euredellar Combinations
All Eurodollar Combinations & E-mini Eurodollar
Bundles Spreads

Non-Eurodollar, Non-Implied Eligible, Intra-
Commodity Futures Spreads

Implied Eligible Intra-Commodity Futures
Spreads

No Bust Range

2.5 basis points or less
2.5 basis points or less
5 basis points or less
sie ERS SESE

5 basis points or less
5 basis points or less
25 basis points or less
20 ticks or less

30 ticks or less

6.00 index points or less
4.00 index points or less
4.00 index points or less
4.00 index points or less
4,00 index points or less
12.00 index points or less
12.00 index points or less
0.60 index points or less
4.00 index points or less
4.00 index points or less
0.40 index points or less
12.00 index points or less
12.00 index points or less
12.00 index points or less
0.30 index points or less
60.00 index points or less
3.00 index points or less
3.00 index points or less
2.00 index points or less
25 cents or less

2.50 index points or less
25,00 index points or less
50 ticks or 5 inches
$0.0050 per pound or less
$0.0050 per pound or less
$0.0050 per pound or less
$0.0050 per pound or less
$0.0075 per pound or less
$0.20 per cwt. or less

$3 per ton or less

$3 per ton or less

$3 per ton or less

$.025 per gallon or less
$0.25 or less

$0.25 or less

$0.25 or less

$0.05 or less

$0.05 or less
$0.01 or less

$0.01 or less
$0.01 or less
$0.01 or less
$2.00 or less
$4.00 or less

$5.00 per troy ounce or less
$10.00 per troy ounce or less

2.5 basis points or less

5 ticks or less

Same as the no bust range of the individual legs