CONFIDENTIAL TREATME
REQUESTED m

July 13, 2006

Ms. Eileen A. Donovan

Assistant Secretary of the Commission for
FOI, Privacy and Sunshine Acts Compliance
Commodity Futures Trading Commission
Three Lafayette Centre

1155 21* Street, N.W.

Washington, D.C. 20581

RE: FOIA CONFIDENTIAL TREATMENT REQUEST
Dear Ms. Donovan:

The Board of Trade of the City of Chicago, Inc. (“CBOT®” or “Exchange”) hereby petitions the
Commodity Futures Trading Commission, pursuant to Regulation 145.9, 17 C.F.R. §145.9, for
confidential treatment of a document relating to the CBOT’s business. This document is being
provided to the Office of the Secretariat of the Commission, in a Rule Certification, Reference
File #2695.01, in connection with the establishment of an Electronic Market Maker (EMM)
Program for CBOT Binary Options on the Target Federal Funds Rate, and is entitled “Appendix
1 ~ Salient Features of CBOT® Binary Options on the Fed EMM Program”.

Confidential treatment is requested for this document, until further notice, because disclosure
would reveal confidential commercial or financial information.

Pursuant to Regulation 145.9 (d)(3), 17 C.F.R. §145.9 (d)(3), the undersigned may be reached at

the Chicago Board of Trade, 141 West Jackson Boulevard, Chicago, Illinois 60604 at (312) 435-
3605.

Sincerely,

Paul J. Draths
Vice President and Secretary

ce: Office of the Secretariat



CONFIDENTIAL TREATME
REQUESTED "

July 13, 2006

Ms. Eileen A. Donovan

Acting Secretary

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21* Street, N.W.

Washington, D.C. 20581

Reference File #2695.01
Rule Certification
Dear Ms. Donovan:

Pursuant to Commission Regulation 40.6(a), the Chicago Board of Trade (CBOT®) hereby
submits the following, a portion of which is subject to the enclosed FOIA Confidential
Treatment Request:
- Establishment of an Electronic Market Maker (EMM) Program for CBOT Binary
Options on the Target Federal Funds Rate. (Summary of program’s salient features
is attached).

There were no opposing views in connection with this program.

The CBOT intends to implement this program one day after the Commission’s receipt of this
submission.

The CBOT certifies that this program complies with the Commodity Exchange Act and the rules
thereunder.

Sincerely,

Paul J. Draths
Vice President and Secretary

b052306


CONFIDENTIAL TREATMENT
REQUESTED

CBOT® Binary Options on the Target Federal Funds Rate (Binary Options on the Fed)
Electronic Market Maker (EMM) Program

EMM Obligations

Participants in this non-exclusive EMM program will provide two-sided markets in CBOT
Binary Options on the Fed on the CBOT’s electronic platform (e-cbot®), on a continuous basis
and in response to requests-for-quote (“RFQs”) during the period from 7:00 a.m. to 2:00 p.m.
(Chicago time), unless prevented from doing so as a result of extraordinary circumstances
beyond the EMM’s reasonable control or due to position limits.

EMM participants agree that they will quote prices continuously, and respond to RFQs, for
CBOT Binary Options on the Fed at agreed upon minimum size and maximum bid/offer spread
levels for specified options series.

EMM Incentives

In return for an EMM’s fulfillment of its obligations, such EMM will receive the following for
the period coinciding with EMM’s period of participation in this program:

Transaction fees: All CBOT electronic transaction fees will be rebated for EMM proprietary
transactions in CBOT Binary Options on the Fed during the market hours of their assignment.

Preferencing/Entitlements: After the allocation of any priority order, EMMs will be entitled to a
percentage of each transaction in CBOT Binary Options on the Fed, in a percentage to be
determined, where EMMs have matched the bid or offer prior to trade completion, during the
hours of their assignment. Total preferencing among all EMMs will be limited to 40%. The
CBOT reserves the right to periodically review and reallocate entitlement percentages among the
EMMs.

Term

The program will have an initial term through July 11, 2008, and may be extended if mutually
agreed.

Termination

EMM Agreements may be terminated for uncorrected material breach, upon specified advance
notice, or by mutual consent.