(ii¥) | The Floor Governors Committee may, without hearing, impose summary
minor penalties against members for intra-association er-contigueus-asseciation trading in
excess of the percentages permitted by the Board pursuant to Regulation 330.03. Minor
penalties for the purpose of this subparagraph shall be defined as fines not exceeding
$5,000 for any one offense.

(viii) Whenever the CFR-Subcommittee Floor Governors Committee or the
Business Conduct Committee summarily imposes a minor penalty against a member or
member firm, the member or member firm shall be given written notification of the
penalty. The notice shall inform the member or member firm of the right to appeal the
penalty to the CFR-Subcommittee Floor Governors Committee or the Business Conduct
Committee, as applicable, and the consequences of a failure to pay a fine if no hearing is
requested.



Additionally, should the first such offense be of such a serious nature, the individual
similarly may be denied trading floor access for the duration of the trading session
pursuant to the above procedure.

(b) CFRSUBCOMMIFFEE, Floor Governors Committee and Business Conduct
Committee

4-543.00- tivelyted Jimi " dt

fay ittee-in- Rul 42-00.

d ith Regulation 540.09

Gi) The CFRSubecommittee Floor Governors Committee or the Business
Conduct Committee, as applicable, may, without hearing, impose summary minor

penalties against members or member firms for violations of
Regulations 332. 02. 332 04, 332.0 041, 332.05, 332.06, 332 07, 332.08 or 332. O9;thatare

Commitiea, Minor penalties for the purpose of this subparagraph shall be defined a as fines
not exceeding $4,000 5,000 for any one offense.

Gi) —_FeHowine isthe schedule of mi jties the CER Sub: itt



(iv) _A respondent may request an appeal of a summary minor penalty by filing a
written request for a hearing with the Office of Investigations and Audits within ten (10)
business days after the penalty is imposed. The Floor Governors Committee or the
Business Conduct Committee, as applicable, shall hear the matter and its decision shall
be final and may not be appealed. Failure to request a hearing shall be deemed a consent
to the fine.

(vix) | Nothing contained herein shall be construed to limit or restrict the powers
and authority of the Business Conduct Committee or the Floor Governors Committee to
issue charges against a member or member firm and impose penalties as authorized in
Rules 542.00 or 543.00 respectively, for the types of violations specified in this

paragraph (b).



September 27, 2006

Ms. Eileen A. Donovan

Acting Secretary

Commodity Futures Trading Commission
Three Lafayette Center

1155 21* Street, N.W.

Washington, D.C. 20581

Dear Ms. Donovan:

204 SEP 27 PH I: ag

CRETARIAT

OFC. GF Tae

Reference File # 2724.01
Rule Certification

Pursuant to Commission Regulation 40.6(a), the Chicago Board of Trade (CBOT®)

hereby submits the following:

- Eliminate the CTR Subcommittee and re-assign its responsibilities to the Floor

- Amendments to Regulation 519.01 and deletion of Regulations 519,03 and
519.06 per the attached texts (additions underlined; deletions struck
through).

The referenced regulations specify enforcement provisions with respect to the submission
of Computerized Trade Reconstruction (CTR) data (e.g., time bracketing trades, time
stamping orders, etc.). The referenced amendments will streamline these provisions in
the following ways:

Governors and Business Conduct Committees;

- Categorize all penalties for CTR violations of $5,000 or less as summary, minor

penalties. (The current threshold for this definition is $1,000 or less.) Such penalties
may be appealed to the Committee that issues the summary penalty, but any decision
of the Committee following such an appeal hearing shall be final and may not be
appealed further. Should the conduct in question warrant a fine in excess of $5,000,
preliminary charges will be issued and the full process that allows for a hearing
before the Hearing Committee and, in the event of an adverse decision, an appeal to
the Appellate Committee, will be available to the respondent. As redefined, minor
penalties for CTR violations will conform with the minor penalty definitions
currently in effect for other types of violations under the jurisdiction of the Floor
Governors, Business Conduct and Floor Conduct Committees; and


September 27, 2006

Ms. Eileen A. Donovan

Page Two

- Eliminate Regulations 519.03 and 519.06, which are redundant.

The CBOT intends to implement these amendments as of October 3, 2006.

There were no opposing views concerning these amendments.

The CBOT certifies that these amendments conform with the Commodity Exchange Act
and the rules thereunder.

Sincerely,

Paul J. Draths
Vice President and Secretary

b091906



519.01 Committee Procedure
(a) FLOORCONDUCF COMMITTEE. Floor Conduct Committee

(i) — The Floor Conduct Committee may impose minor penalties against
members for decorum offenses committed by such members or by any person or persons
for whom such members are responsible. The Floor Conduct Committee may impose
minor penalties for the offenses set forth in Regulation 520.00A. Minor penalties for the
purpose of this Regulation shall be defined as a warming, fines not exceeding $5,000 for
any one offense and/or access denial not to exceed five days. A respondent may request
a hearing by filing a written request for a hearing with the Exchange Services Department
within ten (10) business days after the penalty is imposed; the Floor Conduct Committee
shall hear the matter in accordance with Regulation 540.02 through 540.05. The decision
of the Floor Conduct Committee may be appealed to the Appellate Committee as
provided in Regulation 519.02(d). Failure to request a hearing shall be deemed a consent
to the warning or fine. Unless a hearing is requested, if a fine is not paid within thirty
(30) days after it was due, the Floor Conduct Committee may, without hearing, revoke
the badge or suspend the floor privileges of a floor clerk for whose conduct the fine was
imposed.

(ii) | The Floor Conduct Committee pursuant to this Regulation may impose
minor penalties for disorderly conduct, intentional physical abuse, sexual harassment and
the use of profane or obscene language. The Floor Conduct Committee, in its discretion,
may impose a fine not to exceed $5,000, in addition to any access denial, for any
violation within its jurisdiction regardless of the number of the offense.

(iii) | Any member or individual with floor access privileges who has received a
Floor Conduct Committee Notice of Rule(s) Violation ("ticket") for a decorum offense of
Disorderly Conduct, Intentional Physical Abuse, Sexual Harassment and/or Use of
Profane or Obscene Language and, during the same trading session, engages in a further
Rule or Regulation violation relating to Disorderly Conduct, Intentional Physical Abuse,
Sexual Harassment and/or Use of Profane or Obscene Language may, in addition to other
sanctions (including, but not limited to, fines, suspensions and expulsions imposed by the
Exchange pursuant to the Rules and Regulations) be immediately and summarily
removed from the Exchange trading floor and denied trading floor access for the
remainder of the trading session pursuant to the following procedures:

(1) Certification by the Chairman of the Pit Committee (or, in the
Chairman's absence, by a Vice Chairman of the Pit Committee) that the individual has
continued to engage in Disorderly Conduct, Intentional Physical Abuse, Sexual
Harassment and/or Use of Profane or Obscene Language after having previously received
a Floor Conduct Committee Notice of Rule (s) Violation ("ticket") for the same offense
in the same trading session; and

(2) Approval of such summary action by a member of the Floor Governors
Committee and a member of the Board of Directors or by two members of the Board of
Directors, provided that no individual granting such approval shall have been involved in
the altercation.