Ms. Jean A. Webb

Live Cattle Serial (Odd) Months
May 26, 2006

Page 4

ig Y 7
For positions involving options on Live Cattle futures, this rule is superseded by the option speculative
position limit rule.

(End of Rule 10102.E.)

These changes will be effective on Monday, June 5, 2006, following notification of market
participants.

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

If you have any questions regarding this submission, please contact Mr. Paul Peterson at (312)

930-4587 or via e-mail at ppeterso@cme.com. Please refer to CME Submission #06-50 in all
correspondence regarding this matter.

Sincerely,

Via

John W. Labuszewski, Managing Director
Research & Product Development


cme @

Chicago Mercantile Exchange
20 South Wacker Drive 312/930.1000 tel
Chicago, IL 60606-7499 312/466.4410 fax

www.cme.com

May 26, 2006

Ms. Eileen Donovan

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

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RE: Section Sc(c)l and Regulation 40.6 Submission. Exchange Certification Sf the
Termination of the Serial Month Live Cattle Permit Program and Delisting of the Serial (Odd

Month) Live Cattle Futures Months. Amendments to CME Rule 139, Interpretation of Rule
135.A., and CME Rule 10102.E. CME Submission #06-50.

Dear Ms. Webb:

On May 24, 2006, the Exchange approved the termination of the Serial Month Live Cattle Permit
Program and the delisting of the serial (odd month) Live Cattle futures months, following a lack

of trading activity for more than a year. Notice that this action does not affect in any way the
regular (even month) Live Cattle futures months.

Rule amendments relating to these changes are presented below, with additions underscored and
deletions bracketed and overstruck:

CHAPTER 1
Membership
136.— 13[8]9.[RESERVED]
[439.-—_-—_ SERIAL MONTHLIVE CATTLE PERMIT PROGRAM
439,A,———Number- of Permits
The-Exehange-chall-authorize_and y-Serial-Month-Live-Cattle Permits to

‘SLES
REVERE

a


Ms. Jean A. Webb

Live Cattle Serial (Odd) Months
May 26, 2006

Page 2

A-Serial Menth-Live-Cattle Rermit held: y-trade-and-brokerin-the-Live- Gat ial the-untiLth

(End of Rule 139)

INTERPRETATION OF RULE 135.A. REGARDING ALLOWABLE SPREADS FOR
GEM MEMBERS

(CME Update 96-7, March 25, 1996. Revised June 1997, July 1997, November 2000, November 2001, March 2003,
January 2004, June 2004, August 2004, September 2004, October 2004, December 2005, June 2006.)

Rule 135.A. provides that GEM members may not while on the floor of the Exchange enter orders for products of
other Divisions except for bona fide spread transactions involving products within the GEM Division and that GEM
members may not solicit business from the floor of the Exchange except for business in products traded in the GEM
Division and bona fide spread involving such products.

The only allowable spreads involving non—GEM products that GEM members may enter into or solicit while on the
trading floor are listed below:


Ms. Jean A. Webb
Live Cattle Serial (Odd) Months

May 26, 2006
Page 3

GSCI with Live Cattle and Lean Hogs
Russell 2000 with S&P 500, S&P Mid-Cap, E-Mini S&P 500
E-Mini Russell 1000 with E-Mini S&P 500
S&P/Barra Growth and Value with S&P 500, S&P Mid-Cap, E-Mini S&P 500
[Live Serial 10 with ive Cattle-Even- M +]
East European Currencies with Euro FX
European style currency options with British pound, Canadian dollar, Euro FX,

Japanese yen and Swiss franc futures or
American style options on these futures

CME$INDEXTM with Euro FX, Japanese yen, British pound,
yf
Swiss franc, Australian dollar, Canadian
dollar, Swedish krona

E-Mini NASDAQ Composite with E-Mini NASDAQ-100, E-Mini S&P 500, E-
S&P MidCap 400, E-Mini Russell
2000, S&P SmallCap 600, E-Mini Russell
1000, Financial SPCTR, Technology

SPCTR.
CPI with Eurodollar
Yen Denominated Nikkei 225 with Dollar Denominated Nikkei 225
HICP: with Eurodollar, CP]
[{Provided the GEM beral intains-a Serial Menth-Live Cattle Rermit: ]

When such spreads are executed on a legged basis, the GEM leg of the spread must always precede the non—-GEM
leg [withthe ption-of- the-_Live-Gattle Serial Menthe/Live-Caitle-Even_Menth: ny ither-log b
executed first]. Please note that these restrictions do not apply to spreads in which all of the component parts are
GEM products.

(End of Interpretation of Rule 135.A.)

CHAPTER 101
Live Cattle Futures

10102. FUTURES CALL

10102.E. Position Limits
[+;-—Ferfutures-contracts in the-even- month cycle ]
No person shall own or control more than:
a. 4,150 contracts long or short in any contract month;
b. 450 contracts long or short in the expiring contract month as of the close of business on the
first business day following the first Friday of the contract month.

c. 300 contracts long or short in the expiring contract month as of the close of business on the
business day immediately preceding the last five business days of the contract month.