Exhibit A

Street

Series. A new issuance of Hedgelet Contracts will commence no later than two (2)
business days following the Expiration Date.

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Binary Contracts are initially issued. For the

NAR Binary Hedgelet Contract, the Payout Criteria for the Contracts will be set as
follows:

(i) QUARTERLY NAR DENVER BINARY CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000) -

$5,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) +

$5,000.

(4) In each case above, “X” is measured in dollars and equals the last
Preliminary NAR Denver Housing Price, as reported by the Source Agency.

(ii) BI-ANNUAL NAR DENVER BINARY CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) -
$10,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) +

$10,000.

(4) In each case above, “Y” is measured in dollars and equals the last
Preliminary NAR Denver Housing Price, as reported by the Source Agency.

wwrehedgestreet.com Pax: 050.638.3501


Exhibit A

HEDGE
Street

(4) In each case above, “Y” is measured in dollars and equals the last
Preliminary NAR Los Angeles Housing Price, as reported by the Source Agency.

(iii) [except for renumeration this rule remains unchanged]

(g) MINIMUM TICK - The Minimum Tick size for the NAR Los Angeles
Housing Price Binary Hedgelets shall be $0.6450.

(h) REPORTING LEVEL - The Reporting Level for the NAR Los Angeles
Housing Price Binary Hedgelets shall be 25 12,500 contracts.

(i)- (0) [unchanged]
RULE 12.34 NAR MIAMI BINARY HEDGELET CONTRACTS
(a) - (e) [unchanged]

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Binary Contracts are initially. issued. For the
NAR Binary Hedgelet Contract, the Payout Criteria for the Contracts will be set as
follows:

(i) QUARTERLY NAR MIAMI BINARY CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) -
$20,000 $10,000.

(2) [unchanged]

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) +
$20,000 $10,000.

(4) [unchanged]
ii) BI-ANNUAL NAR MIAMI BINARY CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) -

$20,000.

1825 8, Grant Street
‘Suite 600
‘San Mateo, CA 94402
Tel: 650.638.3500
www hedgestreet.com Fax: 650.638.3501


Exhibit A

HEDGE
Street

0) CONTINGENCIES - If no level is actually announced on the Expiration
Date due to a delay, postponement or otherwise in such release announcement by

the Source Agency, the Settlement Date will be delayed until the Underlying
number is released for that Series.

[End Rulebook]

[The remainder of this page is intended to be blank]

1825 S. Grant Street
Suite 500
San Mateo, CA 94402
Tel: 650.638.3500
www_.hedgestreet.com Fax: 650.638.3501


Exhibit A

Sireet

(h) REPORTING LEVEL - The Reporting Level for the NAR San
Francisco Housing Price Binary Hedgelets shall be 25 12,500 contracts.

(i) - (0) [unchanged]

RULES 12.38 — 12.39 [unchanged]

12.40 NAR BOSTON BINARY HEDGELET CONTRACTS
(a) - (e) [unchanged]

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Binary Contracts are initially issued. For the
NAR Binary Hedgelet Contract, the Payout Criteria for the Contracts will be set as
follows:

(i) QUARTERLY NAR BOSTON BINARY CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) -
$20,000 $5,000.

(2) [unchanged]

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) +
$20,000 $5,000.

(4) [unchanged]
ii) BI-ANNUAL NAR BOSTON BINARY CONTRACTS
(1) Binary Hedgelet Contract 1: One Contract will have a Payout

Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) -
10,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) +

$10,000.

1825 8. Grant Street

San Mateo, CA 94402
Tel: 650.638.3800
www.hedgestrest.com Fax: 650.638.9501


Exhibit A

Street
(4) [unchanged]
(ii) BI-ANNUAL NAR NEW YORK BINARY
CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) -
$20,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) +

$20,000.

(4) In each case above, “Y” is measured in dollars and equals the last
Preliminary NAR New York Housing Price, as reported by the Source Agency.

(iii) [except for renumeration this rule remains unchanged]

(g) MINIMUM TICK — The Minimum Tick size for the NAR New York
Housing Price Binary Hedgelets shall be $0.0450.

(h) REPORTING LEVEL — The Reporting Level for the NAR New York
Housing Price Binary Hedgelets shall be 25 12,500 contracts.

(i) - (0) [unchanged]
RULE 12.36 NAR SAN DIEGO BINARY HEDGELET CONTRACTS
(a) - (©) [unchanged]

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Binary Contracts are initially issued. For the
NAR Binary Hedgelet Contract, the Payout Criteria for the Contracts will be set as
follows:

(i) QUARTERLY NAR SAN DIEGO BINARY
CONTRACTS

1825 S. Grant Street

‘San Mateo, CA 94402
‘Tel: 650.638.3500
www.hedgestreet.com Fax: 650.638.3501


Exhibit A

treet

(2) Binary Hedgelet Contract 2: One Contract will have a Payout

Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) +

$20,000.

(4) In each case above, ““Y” is measured in dollars and equals the last
Preliminary NAR Miami Housing Price, as reported by the Source Agency.

(iii) [except for renumeration this rule remains unchanged]

(g) MINIMUM TICK - The Minimum Tick size for the NAR Miami
Housing Price Binary Hedgelets shall be $0.0450.

(h) REPORTING LEVEL — The Reporting Level for the NAR Miami
Housing Price Binary Hedgelets shall be 25 12,500 contracts.

(i) - (0) [unchanged]
RULE 12.35 NAR NEW YORK BINARY HEDGELET CONTRACTS
(a) - (e) [unchanged]

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Binary Contracts are initially issued. For the
NAR Binary Hedgelet Contract, the Payout Criteria for the Contracts will be set as
follows:

(i) QUARTERLY NAR NEW YORK BINARY
CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) -
$45,000 $10,000.

(2) [unchanged]

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) +
$45,000 $10,000.

1825 S. Grant Street

‘San Mateo, CA 94402
Tel: 650.638.9500
www.hedgestreet.com Fax: 650.639.3501


Exhibit A

HEDGE
Street

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Binary Contracts are initially issued. For the
NAR Binary Hedgelet Contract, the Payout Criteria for the Contracts will be set as
follows:

(i) QUARTERLY NAR SAN FRANCISCO BINARY
CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) -
$25,000 $10,000.

(2) [unchanged]

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) +
$25,000 $10,000.

(4) [unchanged]

ii) BI-ANNUAL NAR SAN FRANCISCO BINARY
CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) -

$30,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) +

$30,000.

(4) In each case above, “Y” is measured in dollars and equals the last
Preliminary NAR San Francisco Housing Price, as reported by the Source Agency.

(iii) [except for renumeration this rule remains unchanged]

(g) MINIMUM TICK - The Minimum Tick size for the NAR San Francisco
Housing Price Binary Hedgelets shall be $0.0450.

1825 8. Grant Street

San Mateo, CA 94402
Tel: 650.638.3800
www.hedgestreet.com Fax: 650.638.3501


HEDGE
Street

February 22, 2007

VIA EMAIL: secretary@cftc.gov

Ms. Eileen A. Donovan, Acting Secretary
Secretary of the Commission

Commodity Futures Trading Commission
3 Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

RE: Rule Certification: HedgeStreet® a) Amends the Payout Criteria for certain
Binary NAR Quarterly Housing Price Contracts; b) Adds new Binary NAR
Bi-Annual Housing Price Contracts; and c) Introduces the Terms and
Conditions for three (3) new NAR Housing Price Contracts corresponding
to three (3) additional Metropolitan Areas — Submission pursuant to
Commission Regulation §40.2 and §40.6

Dear Acting Secretary Donovan:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (“Act”), and
§40.2 and §40.6(a) of the regulations promulgated by the Commodity Futures Trading
Commission (the “Commission”) under the Act, HedgeStreet, Inc. (““HedgeStreet”) hereby
certifies with the Commission its intent to a) amend the Payout Criteria for certain Binary
NAR Quarterly Housing Price Contracts; b) add new Bi-Annual contracts to all Binary
NAR Housing Price Contracts and c) introduces the terms and conditions for three (3) new
Binary Housing Price Contracts represented by Rules 12.50-12.52 listed below; [all
contracts referenced in (a)-(c) will be collectively known as the “Contracts”]. All
corresponding rule additions/ amendments to the above-referenced Contracts are defined in
Exhibit A in accordance with Commission Regulation §40.6. Any rule deletions are
stricken out while the amendments and/or additions are underlined. HedgeStreet has also
included under Exhibit A new HedgeStreet Rules 12.50-52 to reflect all of the terms and
conditions of the following new Binary NAR Housing Price Contracts:

Rule 12.50 NAR LAS VEGAS BINARY HEDGELET CONTRACTS
Rule 12.51 NAR DENVER BINARY HEDGELET CONTRACTS
Rule 12.52 NAR WASHINGTON, DC BINARY HEDGELET CONTRACTS

HedgeStreet intends to implement the corresponding rule additions/ amendments to all
Contracts at the start of business on Friday, February 23, 2007.

No substantive opposing views were expressed to HedgeStreet with respect to these
amendments.

1825 8. Grant Street

San Mateo, CA 94402
Tet: 650.638.9500
www.hedgestreet.com Fax: 650.638.3501


Exhibit A

HEDGE
Street

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000) -
$5,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) +
$5,000.

(4) In each case above, “X” is measured in dollars and equals the last
Preliminary NAR Las Vegas Housing Price, as reported by the Source Agency.

ii) BI-ANNUAL NAR LAS VEGAS BINARY
CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout

Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) -
$15,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) +
$15,000.

(4) In each case above, “Y” is measured in dollars and equals the last
Preliminary NAR Las Vegas Housing Price, as reported by the Source Agency.

iii) HedgeStreet may list additional NAR Las Vegas Binary
Hedgelet Contracts with different ranges of Payout Criteria on a discretionary basis
in accordance with the CEA and Commission Regulations.

(g) MINIMUM TICK — The Minimum Tick size for the NAR Las Vegas
Housing Price Binary Hedgelets shall be $0.50.

(h) REPORTING LEVEL - The Reporting Level for the NAR Las Vegas
Housing Price Binary Hedgelets shall be 12,500 contracts.

1825 3. Grent Street

‘San Mateo, CA 94402
Tol: 650.638.3500
www.hedgestreet.com Fax: 650.638.3501


Exhibit A

Street

(4) In each case above, “Y” is measured in dollars and equals the last
Preliminary NAR Boston Housing Price, as reported by the Source Agency.

(iii) [except for renumeration this rule remains unchanged]

(g) MINIMUM TICK - The Minimum Tick size for the NAR Boston
Housing Price Binary Hedgelets shall be $0.0450.

(h) REPORTING LEVEL ~ The Reporting Level for the NAR Boston
Housing Price Binary Hedgelets shall be 25 12,500 contracts.

(i) - (0) [unchanged]
RULES 12.41 — 12.49 [unchanged]
12.50 NAR LAS VEGAS BINARY HEDGELET CONTRACTS

‘a) SCOPE — These Rules shall apply to the Class of Contracts referred to as
the NAR Las Vegas Binary Hedgelet Contracts issued by HedgeStreet.

b) UNDERLYING — The Underlying for this Class of Contracts is the
quarterly change in house prices for the regional area of Las Vegas, NV (without

seasonal adjustment and hereinafter referred to as the “Median Sales Price” or

“Housing Price”) last reported by the National Association of Realtors (“NAR”).
(c) SOURCE AGENCY - The Source Agency is the National Association

of Realtors.

(d) TYPE — The Type of Contract is a Binary Hedgelet Contract.

(e) ISSUANCE —~ For each planned release by the Source Agency of the
Underlying, HedgeStreet will issue various Hedgelet Contracts, each of a different
Series. A new issuance of Hedgelet Contracts will commence no later than two (2)

business days following the Expiration Date.

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be

set by HedgeStreet at the time the Binary Contracts are initially issued. For the
NAR Binary Hedgelet Contract, the Payout Criteria for the Contracts will be set as

follows:

(i) QUARTERLY NAR LAS VEGAS BINARY
CONTRACTS

1825 8. Grant Street

‘San Mateo, CA 94402
Tel: 650.638.3500
www.hedgestreet.com Fax: 650.638.3501


Exhibit A

HEDGE
Street

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) -
$20,000 $10,000.

(2) [unchanged]

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) +
$20,000 $10,000.

(4) [unchanged]

(ii) BI-ANNUAL NAR SAN DIEGO BINARY

CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) -

$20,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) +

$20,000.

(4) In each case above, “Y” is measured in dollars and equals the last
Preliminary NAR San Diego Housing Price, as reported by the Source Agency.

(iii) [except for renumeration this rule remains unchanged]

(g) MINIMUM TICK - The Minimum Tick size for the NAR San Diego
Housing Price Binary Hedgelets shall be $0.0450.

(h) REPORTING LEVEL — The Reporting Level for the NAR San Diego
Housing Price Binary Hedgelets shall be 25 12,500 contracts.

(i) - (0) [unchanged]
RULE 12.37 NAR SAN FRANCISCO BINARY HEDGELET CONTRACTS
(a) - (e) [unchanged]

1825 8. Grant Street
Sulte 500
‘San Mateo, CA 94402
Tel: 850.638.3500
www.hedgestreet.com Fax: 650.638.3501


Exhibit A

HEDGE
Street

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) +
$10,000.

(4) In each case above, “Y” is measured in dollars and equals the last
Preliminary NAR Chicago Housing Price, as reported by the Source Agency.

(iii) [except for renumeration this rule remains unchanged]

(g) MINIMUM TICK — The Minimum Tick size for the NAR Chicago
Housing Price Binary Hedgelets shall be $0.0450.

(h) REPORTING LEVEL — The Reporting Level for the NAR Chicago
Housing Price Binary Hedgelets shall be 25 12,500 contracts.

(i) - (0) [unchanged]
RULE 12.33 NAR LOS ANGELES BINARY HEDGELET CONTRACTS
(a) - (e) [unchanged]
(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be

set by HedgeStreet at the time the Binary Contracts are initially issued. For the
NAR Binary Hedgelet Contract, the Payout Criteria for the Contracts will be set as

follows:

(i) [unchanged]

(ii) BI-ANNUAL NAR LOS ANGELES BINARY

CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) -
$30,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) +

$30,000.

1825 S. Grant Street

San Mateo, CA 94402
Tel: 680.638.3800

www.hedgestreet.com Fax: 680.638.3801


Exhibit A

Street

(iii) HedgeStreet may list additional NAR Denver Binary
Hedgelet Contracts with different ranges of Payout Criteria on a discretionary basis
in accordance with the CEA and Commission Regulations.

(g) MINIMUM TICK - The Minimum Tick size for the NAR Denver
Housing Price Binary Hedgelets shall be $0.50.

(h) REPORTING LEVEL ~ The Reporting Level for the NAR Denver
Housing Price Binary Hedgelets shall be 12,500 contracts.

(i) POSITION LIMIT - There are currently no Position Limits for the NAR
Denver Housing Price Binary Hedgelet Contracts.

(j) LAST TRADING DATE - The Last Trading Date in a Series is the date
two (2) days prior to the Expiration Date.

(k) SETTLEMENT DATE - The Settlement Date of the Contract shall be
the same date that the Housing Price is released by the Source Agency.

(1) EXPIRATION DATE — The Expiration Date of the Contract shall be the
date on which the Housing Price Expiration Value is scheduled to be released by
the Source Agency.

(m) SETTLEMENT VALUE — The Settlement Value is the amount paid to

the holder of the in the money Contract on Settlement Date. The Settlement Value

of an in the money NAR Denver Housing Price Binary Contract is $100.

(n) EXPIRATION VALUE ~ The Expiration Value is the level of the
Housing Price on the Expiration Date.

(0) CONTINGENCIES - If no level is actually announced on the Expiration

Date due to a delay, postponement or otherwise in such release announcement by
the Source Agency, the Settlement Date will be delayed until the Underlying
number is released for that Series.

12.52 NAR WASHINGTON, DC BINARY HEDGELET CONTRACTS

(a) SCOPE —~ These Rules shall apply to the Class of Contracts referred to as
the NAR WASHINGTON, DC Binary Hedgelet Contracts issued by HedgeStreet.

(b) UNDERLYING - The Underlying for this Class of Contracts is the
quarterly change in house prices for the regional area of Washington, DC (without

1625 8. Grant Street

‘San Mateo, CA 94402
Tel: 650.638.9500
www hedgestreet.com Fax: 650.638.3501


Exhibit A

HEDGE
Street

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) +
$20,000.

(4) In each case above, “Y” is measured in dollars and equals the last
Preliminary NAR Washington, DC Housing Price, as reported by the Source
Agency.

(iii) HedgeStreet may list additional NAR Washington, DC

Binary Hedgelet Contracts with different ranges of Payout Criteria on a
discretionary basis in accordance with the CEA and Commission Regulations.

(g) MINIMUM TICK - The Minimum Tick size for the NAR Washington,
DC Housing Price Binary Hedgelets shall be $0.50.

h) REPORTING LEVEL ~ The Reporting Level for the NAR Washington,
DC Housing Price Binary Hedgelets shall be 12,500 contracts.

(i) POSITION LIMIT - There are currently no Position Limits for the NAR
Washington, DC Housing Price Binary Hedgelet Contracts.

(i) LAST TRADING DATE ~ The Last Trading Date in a Series is the date
two (2) days prior to the Expiration Date.

(k) SETTLEMENT DATE - The Settlement Date of the Contract shall be
the same date that the Housing Price is released by the Source Agency.

1) EXPIRATION DATE ~ The Expiration Date of the Contract shall be the

date on which the Housing Price Expiration Value is scheduled to be released by
the Source Agency.

(m) SETTLEMENT VALUE - The Settlement Value is the amount paid to

the holder of the in the money Contract on Settlement Date. The Settlement Value
of an in the money NAR Washington, DC Housing Price Binary Contract is $100.

(n) EXPIRATION VALUE — The Expiration Value is the level of the
Housing Price on the Expiration Date.

1825 S. Grant Street

‘San Mateo, CA 94402
Tel: 650.638.3500
www.hedgestreet.com Fax: 650.638.3801


Exhibit A

HEDGE
Street

EXHIBIT A

Amendments to Rules 12.32, 12.33, 12.34, 12.35, 12.36, 12.37, and 12.40
Addition of new Rules 12.50, 12.51, and 12.52

(The following new Rule additions are underlined and deletions are stricken out)

RULE 12.32 NAR CHICAGO BINARY HEDGELET CONTRACTS

(a) - (e) [unchanged]

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Binary Contracts are initially issued. For the
NAR Binary Hedgelet Contract, the Payout Criteria for the Contracts will be set as
follows:

(i) QUARTERLY NAR CHICAGO BINARY CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) -

$10,000 $5,000.
(2) [unchanged]

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) +

$40,000 $5,000.
(4) [unchanged]

(ii) BI-ANNUAL NAR CHICAGO BINARY CONTRACTS
(1) Binary Hedgelet Contract 1: One Contract will have a Payout

Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000) -

$10,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout

Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)).

1825 8. Grant Street
‘Suite $00

‘San Mateo, CA 94402
Tel: 650.638.3500

www.hedgestreet.com Fax: 650.638.3501


HEDGE
Street

HedgeStreet hereby certifies that the Contracts and clearing of the Contracts, including all
rules defining the terms and conditions of said Contracts contained herein, complies with
the Act, as amended, and the Commission’s regulations adopted thereunder.

Should you have any questions regarding the above, please do not hesitate to contact
Stephanie Ford by telephone at (650) 638-3511 or by email at sford@hedgestreet.com.

Sincerely,

Stephanie Ford
Vice President, Legal & Compliance

ce: Tom Leahy — CFTC

Phil Colling - CFTC
Clarissa Manansala — HedgeStreet , Inc.

www.hedgestreet.com

1625 8. Grant Street

‘San Mateo, CA 94402
Tel: 680.638.3500
Fax: 650.638.3501


Exhibit A

HEDGE
Street

(i) POSITION LIMIT — There are currently no Position Limits for the NAR
Las Vegas Housing Price Binary Hedgelet Contracts.

(j) LAST TRADING DATE — The Last Trading Date in a Series is the date
two (2) days prior to the Expiration Date.

(k) SETTLEMENT DATE ~ The Settlement Date of the Contract shall be
the same date that the Housing Price is released by the Source Agency.

(1) EXPIRATION DATE — The Expiration Date of the Contract shall be the
date on which the Housing Price Expiration Value is scheduled to be released by
the Source Agency.

(m) SETTLEMENT VALUE - The Settlement Value is the amount paid to

the holder of the in the money Contract on Settlement Date. The Settlement Value
of an in the money NAR Las Vegas Housing Price Binary Contract is $100.

n) EXPIRATION VALUE ~ The Expiration Value is the level of the

Housing Price on the Expiration Date.

(0) CONTINGENCIES —~ If no level is actually announced on the Expiration
Date due to a delay, postponement or otherwise in such release announcement by

the Source Agency, the Settlement Date will be delayed until the Underlying
number is released for that Series.

12.51 NAR DENVER BINARY HEDGELET CONTRACTS

(a) SCOPE ~ These Rules shall apply to the Class of Contracts referred to as
the NAR Denver Binary Hedgelet Contracts issued by HedgeStreet.

(b) UNDERLYING -~ The Underlying for this Class of Contracts is the
quarterly change in house prices for the regional area of Denver, CO (without

seasonal adjustment and hereinafter referred to as the “Median Sales Price” or
“Housing Price”) last reported by the National Association of Realtors (“NAR”).

c) SOURCE AGENCY — The Source Agency is the National Association
of Realtors.

(d) TYPE — The Type of Contract is a Binary Hedgelet Contract.

(e) ISSUANCE —~ For each planned release by the Source Agency of the
Underlying, HedgeStreet will issue various Hedgelet Contracts, each of a different

1825 S. Grant Street

San Mateo, CA 94402
Tel: 680.638.9500
www-hedgestreet.com Pax: 650.638.9501


Exhibit A

HEDGE
Street

seasonal adjustment and hereinafter referred to as the “Median Sales Price” or
‘Housing Price”) last reported by the National Association of Realtors (“NAR”).

(c) SOURCE AGENCY ~ The Source Agency is the National Association

of Realtors.

(d) TYPE — The Type of Contract is a Binary Hedgelet Contract,

(e) ISSUANCE — For each planned release by the Source Agency of the
Underlying, HedgeStreet will issue various Hedgelet Contracts, each of a different

Series. A new issuance of Hedgelet Contracts will commence no later than two (2)

business days following the Expiration Date.

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Binary Contracts are initially issued. For the

NAR Binary Hedgelet Contract, the Payout Criteria for the Contracts will be set as

follows:

(i) QUARTERLY NAR WASHINGTON, DC BINARY

CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) -

$10,000.

(2) Binary Hedgelet Contract 2: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)).

(3) Binary Hedgelet Contract 3: One Contract will have a Payout
Criterion of greater than X (rounded to the nearest five thousand dollars ($5,000)) +

$10,000.

(4) In each case above, “X” is measured in dollars and equals the last
Preliminary NAR Washington, DC Housing Price, as reported by the Source

Agency.

(ii) BI-ANNUAL NAR WASHINGTON, DC BINARY
CONTRACTS

(1) Binary Hedgelet Contract 1: One Contract will have a Payout
Criterion of greater than Y (rounded to the nearest five thousand dollars ($5,000)) -

$20,000.

1825 &. Grant Street
‘Sulte 500

‘San Mateo, CA 94402
Tel: 650.638.3500

www.hedgestreet.com Pax: 650.638.9501