Hold £ short FINEX EURO Index Fut Contracts-shall make deli £ th d-shall

a
i: At +the-a 7 tt]. ea
‘payt 'PPFOP) J
Thi hort—Ch $3 M. by H ible—fe 4: the he del £ thy jnte—th
S espe} ry
teh. QO; izat tat _the—Exch, deli: bank dt di
PPFOP? iB -Orei PPI P'
ts tt]. +t +4 intethe—-shert
plet fe r: forth approp
Clearing Member’ t below:
A-Cl. + 2 M, by te rt di 4, ke—deli: £; itsel- f;
hall he Last Trad he Cleari
Cust t-rep: " , Fi " 2 Dayp t-to-4 2
Oreanizat hort-Ch ci itments—The-Ch Member-shall- include
the-fell i inte it.
o
t{A+th £ the E: banks
fA} €
(B} the-Cl. + 1 Ogi ization: f- by 1-the-del: i}.
del: df hy tistandi: 1 hort FINEX EURO Ind Put
dd: fthe-bank hichth i; |,
yh d- 4 t the-appropriate-sett a payment
should tal. ith-th f th: "7 by 43 bhichthi etth es 4,
If such itment-i ivedaterthan—H-30-aam- the-Last—Trading-Day,—the-Cleari
M. be hall d- £5; the to fawhich-shall-b ed fj: +h tof which
hall -be-det ined-bythe-B “4 ith inted-bythe Beard-
PP + z
Gd-1-2-Ch +3 M. uy -hee: +4 bait: directi: r? thi by—10-00- NYE -_the
{i} e- Pay; 5 By HOE Ae
bank: ysi _d, ;: diatel: di: deli: di: the-Cl. +: M, ber's-banik-shall-send-te
z= y +P ro yay; S
the deli: bank ified-by-the Exch: directive-t by-swift _tested-tel th
a bad a oa i) Pes vy
£¢ +t tabletothedeli: bank—The-di f 44 hallLinehidethe fell } a
PI ¥ = pay B
{B} +h d-add: f£thebank-whiech-will-+ f inteth t-of-the-Cl. +
(yh and ber-ef-th +f hich il -be-transferred-inte-the-ac ef
(DH tof to-be-delt redinte-the-Clear: Q: at: va ‘= d
aS So Ss 7
{EB} the deli: di: yah date} swhich+ ified: hf(a}-efthisRule.
€ year zu iP paragraph {a}
}£-aclh +: M be brit: ve) inated—di ti: +t th by 10-00 j, 143
S Pays (he A
the-deli: di fyah d; ,}- ified: h-(a)}-ef- this _ Rule 24.07 the -C! 3:
yy tvalue-date} spec: paragrapat # (O4-+ 4 ie Memb
hall-d # Ht ficient +h by £ traets—tfe hichdel:- ¥ }
bei deintethi tof the-Cl. +3 Q: tzati +-thedeli: bank—Alt tad:
iS BOB = pay
$f; +h ist bank its—ex dent + be- ived_bythe-deli dank Jaterth:
#0) S iP ry ¥
40-00. 4, mrt hd;
y=
Gid)-Th hi rail et M, be halt he £¢ ;:
Gi) +t ne 2 +s-forthetimelyt fe f eures-_tethe
Exeh ed-deli: bank
i) PP! *
Dep t-ef-thi hal-be di ts v i-bank 43 £¢ if diat Ly jab.
funds.
GyvHtisth ibiipy-eftheCleari: M. bes the ficial if ex
J itist Pp ty e t the-short-contracts+
befamil: ith v: met form: +th—all thi Nati taint +e—the-heldi £
F 7 = PS e S


Pr ¥
Last-Pradi: tI
iB Pays Pi S
The -Clearinc- Member-shall
se 1
: H k-(See-A. dixt’):
pecified delivery bank PP a
0 a ber-at-the-delivery_bank-in-whichitwill deliverth
ch-outstanding Jong FINEX BURO Index Fut Contract:
ith th a ‘ber-at h-bank at-whichjtowdll
tstandine-} a d
iS
A h-as-th £thi d
" t t te
ived_later-than—H-:30-aam- the-LastFrading-Day,the-Ch
th t-of which—shall_be-determined—by_the-Beard

the Clearine- Oreanization!

Brapht a
ffcient-t the numbe
£ the Ch Organizat +-th
iB -OFE
it: dent tb
ps
a
Th nt-of the-setth a d it-shal} 1 the-value-of th ber-of-contracts-f
¥-deps ee
hich-deli is -bei de-based-on-the Settl +P. the-Last-Frading Day—Depesit-of th
tt} a jes-shall-b. di ternational_ bank -wire-transfer-of ediatel: abl
fonds:
GyHtis-th ibility-o£ the Clearine- Memb d-the beneficial f thet tracts-+
fe} iP y¥ S-
be-famili ith-and-i: fi ith—all-th Jati «taining tethe-heldi £
2 5 e P S-
ident bank ts-in-th tny-ofthe bank through which del: £th il-be-mad
¥ e ¥ -
£8} Short Clearine Member's Di:

* Appendix 1: Exchange Approved Delivery Bank: A current listing of such approved banks is available through
the New York Clearing Corp.


ident—bank ts — jth ‘ f£ the—bank_th: +h. hich to f£-the—Setth +
BF
G ies-swil J
(i) All FINEX EURO Futures Contracts are required to be physically delivered through the

Continuous Linked Settlement system (“CLS”). Each Clearing Member must either be a CLS Bank
member or be able to use an approved CLS agent bank to make the required physical delivery.

(ii) All times stated in this Rule refer to New York Time, unless otherwise noted.

(iii) For each expiring FINEX EURO Futures Contract, a Clearing Member with a Position that
remains open after the close of trading on the Last Trading Day shall submit to the Clearing
Organization, on or before noon of the Last Trading Day, a statement, in the form prescribed by the
Clearing Organization, detailing the Clearing Member’s final delivery Position (“Final Position
Statement”). If the Final Position Statement is received later than noon but by 3:30 pm on the Last
Trading Day, the Clearing Member may be subject to Rule 24.08. A Clearing Member which fails to
submit a Final Position Statement after 3:30 pm on the Last Trading Day shall be deemed to be in
default and subject to Rule 24.08.

(iv) For each expiring FINEX EURO Futures Contract, a Clearing Member with a Position that
remains open after the close of trading on the Last Trading Day shall submit to CLS, on or before
5:00 pm of the Last Trading Day, the relevant instructions to either take delivery of U.S. dollars and
make delivery of the settlement currencies for long positions or make delivery of U.S. dollars and
take delivery of the settlement currencies for short positions (“CLS Submission”). If the CLS
Submission is received by CLS later than 5:00 pm on the Last Trading Day, the Clearing Member
may be subject to Rule 24.08. A Clearing Member which submits a CLS Submission after 3:00 pm on
the business day preceding the Delivery Day or fails to submit a CLS Submission shall be deemed to
be in default and subject to Rule 24.08.

(v) On the Delivery Day, for a Clearing Member holding a long Position, in accordance with
procedures that CLS shall have instituted and may amend from time to time (“CLS Procedures”),
CLS shall (A) credit the Clearing Member’s account with the amount of euros sufficient to cover the
number of long contracts for which delivery is being made and (B) debit the Clearing Member’s
account with the equivalent amount of settlement currencies.

(vi) On the Delivery Day, for a Clearing Member holding a short Position, in accordance with CLS
Procedures, CLS shall (A) credit the Clearing Member’s account with the amount of settlement
currencies sufficient to cover the number of short contracts for which delivery is being made and (B)
debit the Clearing Member’s account with the equivalent amount of euros.

([e]d) Costs of Delivery

The seller (short) shall bear the costs of transferring the euros into the delivery bank specified by the
Exchange and the costs of transferring the settlement currencies out of the delivery bank. The buyer
(long) shall bear the costs of transferring the euros out of the delivery bank specified by the Exchange and
the costs of transferring the settlement currencies into the delivery bank. Such costs may include, but are
not limited to, wire transfer charges[,-directives+e-pi harges swift pe-charges,interest charges]
and [transaction-fees] CLS charges.

Rule 24.08. Delinquency in Performance

)-f-a- Clearing Member-with. itment i i

[@) va 7 -+e-deposit y-funds-p +40 Rule 24.07 fail:
it- such funds-by the deadline specified in Rule 24.07, then the Clearing Member shall be deemed
1t_and-the-matter-shall-be-aeted. tt he} ofthis Rul

> pon pu paragrapa{e) F

t

a
{
d
P
def:



EW YORK

BOARD OF TRADE*

World Financial Center

One North End Avenue, 13** Floor
New York, New York 10282

BY ELECTRONIC TRANSMISSION

06-23
August 16, 2006

Ms. Eileen A. Donovan

Acting Secretary of the Commission
Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21" Street, NW

Washington, DC 20581

Re: Amendments to FINEX® EURO Delivery Rules and Definitions Chapter of Rulé?
Book - ei
Submission Pursuant to Section 5c(c)(1) of the Act and Regulation 40.6 =

Dear Ms. Donovan:

Pursuant to Section Se(c)(1) of the Commodity Exchange Act, as amended, and
Commission Regulation 40.6, the Board of Trade of the City of New York, Inc. (“Exchange”)
submits, by written certification, amendments to Rules 24.07, 24.09, 24.10 and 24.11, and to the
Definitions Chapter of Rule Book, attached as Exhibit A.

In July, Exchange Rules were amended to mandate the use of the Continuous Linked
Settlement system (“CLS”) for all USDX® and Currency futures contract deliveries, except those
involving either the forint or koruna currencies. In Submission 06-18, the Exchange submitted
the rule amendments to the Commission. Because of an oversight, amendments to Rules 24.07,
24.09, 24.10 and 24.11, mandating the use of the CLS for deliveries of the FINEX EURO Index
futures contracts, were not made. The Exchange has now amended those rules which are
contained in this Submission.

Amendments to the Definitions Chapter add the “FINEX EURO Index” to the definition
of the term “Financial Contracts” in order to update the Exchange’s Rule Book.

The Exchange certifies that the amendments comply with the requirements of the
Commodity Exchange Act and the rules and regulations promulgated thereunder.


S ¥
; } hat deli: bi lished-in-atimel: £; d
& " t te-that a aph

¥
ed- he) of this Rul
Hb P He paragraph {6} 7

fo HF-the-inf ti tained-in-_either_theJone's Deli ral itment-er-the-shert's_Delé:

{e)] If a Clearing Member fails to perform all the acts required by this Chapter, or is deemed to be in
default, or is unduly enriched, it shall be liable to the Clearing Organization and to the opposite Clearing
Member for any loss sustained and may be subject to disciplinary action by the Exchange and/or the
Clearing Organization.

Rule 24.09.[Approval-of Directive-To-Ray-Banks

fa} olication_the-Exeh: hall Directiveto-Pay_bank ided—h that
{ao pen app: 5 eB PP ¥ PF 7 7
h-such-bank shall be able toi directive+ thatd ptableto-the-delivery-bank.
(b) £2 bank. .d_but-ne-k 4s-the-abe: i +the-Exeh: hall it
{9} PP? z Bt
from-the-approved-tist-of Directive-to-Pay-banks.|Reserved.

Rule 24.10. [Approval-of Delivery Banks

yu; Heation_the President-shalt delivery-banks-that + be-ablete-de-the-fell.

‘Pen-app: ‘PP re
ta} handh sd. inated: d, thi 3 dat etth Ht i - id
aNw:! trat. bihity-to-handle+t £¢ ; di, the tah a -
&} ¥ S PPFOP!
jided—h, thatthe-Exch: f¥ +4: +e-ti: tablish. h-additi 4} rf 7 it
P > p ge-may fron ai
d ¥-+0-be-a-delivery-bank.] Reserved.

Rule 24.11. Force Majeure

The term “Force Majeure” shall mean any circumstance (including, but not limited to a strike,
lockout, national emergency, governmental action, computer malfunction causing loss of [EWRs-er] data,
a failure of the CLS system, or act of God) which is beyond the control of a Clearing Member making or
taking delivery of a contract in the manner provided for in the Rules.

Financial Contracts

The term “Financial Contracts” shall mean the U.S. Dollar Index®, the FINEX® EURO Index, the
Euro Based Currency, the Pound Sterling Based Currency, the US Dollar Based Currency, the Australian
and New Zealand Based Currency, the Japanese Based Currency Futures and Options Contracts and any
other instruments designated by the Board as Financial Contracts and traded at the Exchange.



-2-

The amendments were adopted unanimously by the Exchange’s Board of Governors on
August 16, 2006. No substantive opposing views were expressed by members or others with
respect to the amendments. The amendments will become effective on August 17, 2006.

If you have any questions or need further information, please contact me at 212-748-
4021.

Sincerely,

Jason V. Fusco
Compliance Counsel

ce: Riva Adriance
Thomas Leahy
CFTC, Division of Market Oversight
Allen Cooper
CFTC, New York Regional Office


(In the text of the amendments below, additions are underlined and deletions are bracketed and
lined out.) EXHIBIT A

Rule 24.07. Delivery Procedures

(a) Delivery [ d]ay [(Vakte-Date)]

Delivery of the components of FINEX EURO Index Futures Contracts shall be made on the third GB")
Wednesday of the contract month. If that day is not a Business Day or is a bank holiday in New York,
NY, then the delivery day shall be the next day that is a Business Day; provided, however, that, if it is a
bank holiday in the country of any component currency in the FINEX EURO Index, then, delivery of that
currency and the FINEX EURO amount attributable to that currency shall occur on the next Business Day
that is not a bank holiday in New York, NY and the country of the component currency.

(b) Netting of Positions

(i) Netting of Positions Within an Individual Contract-—-A Clearing Member may net his delivery
obligations to the extent that such Clearing Member (for itself or for Customers) is both long and
short in FINEX EURO Index Futures Contracts and, if a Customer Account is involved, has a written
request from the Customer to net the Customer's Account against other accounts and provided further,
that the Clearing Member has a written agreement respecting delivery and receipt other than as set
forth in the Rules. If the Clearing Member chooses to net, it shall indicate its net Position on the
Delivery Netting Request form. The netting shall be performed in the following sequence: (A) within
each account, (B) eligible Customer Account versus eligible Customer Account and (C) eligible
Customer Account against Firm account. The netting of Positions by a Clearing Member shall relieve
the Clearing Organization of any further obligations with respect to any FINEX EURO Index Futures
Contract involved. Such Clearing Member shall indemnify the Exchange, the Clearing Organization
against any liability, cost or expense that either may incur for any reason as a result of the Clearing
Member's netting positions.

(ii) Netting Currency Positions Across Contracts—A Clearing Member may net his delivery
obligations to the extent that such Clearing Member (for it or for Customers) holds Positions that
create offsetting currency payment obligations in FINEX EURO Index Futures Contracts and
different Currency Pairs. If a Customer Account is involved, the Clearing Member must have a
written request from the Customer to net the Customer's Account against other accounts and a written
agreement respecting delivery and receipt other than as set forth in the Rules. If the Clearing Member
chooses to net Positions, it shall indicate the net Position on its Delivery Netting Request Form. The
netting shall be performed in the following sequence: (A) within each account, (B) eligible Customer
Account versus eligible Customer Account and (C) eligible Customer Account against Firm account.
The netting of Positions by a Clearing Member shall relieve the Clearing Organization of any further
obligations with respect to any FINEX EURO Index and other currency futures contracts involved.
Such Clearing Member shall indemnify the Exchange, the Clearing Organization against any liability,
cost or expense that either may incur for any reason as a result of the Clearing Member's netting

Positions.
(c) [Bong-Clearing Member's Duties
Held. £4, EINEX- EURO Indi Fut Cont +-shalt i} deli: f d-shalt
S = Pa Pay
th tt]. " i: dyalent
a =
we th “hak ‘ tof ¢
qt +! pe bit: 4y f the]. i Cj a Memb +o £¢ +h t+ total f thy
tt], - funds-—inteth ey tof the-C]. } Qy izati +the-deli: bankdesi. ted
yx iB -Orgi y S
& he-Exch: db id: i ati + Ht
a + rs +: Pp: a it fe +: forthe ay $3 £ f£the te—the-l} 2
ch +: Mi ber" Ht ified-in-th. dj bel =

S Pt F