75444.-759.[ RESERVED]

760.

OTHER COMMODITIES
OTHER COMMODITIES

All other commodities which do not have delivery provisions specified in this chapter shall be governed
by the requirements of the relevant contract specification chapter.

761.-769. RESERVED)

770.

ALTERNATIVE DELIVERY PROCEDURES

A member or clearing member who, as the result of an error in the execution of an order or an out-trade
discovered on or after the last day of trading, has a position in a contract which has expired and who is
obligated either to make or take physical delivery in that contract, may offset such position against an
opposite position of a member or clearing member whether or not such position exists as a result of an
error or out-trade; provided, however, that the parties to any such out-trade shall exercise the utmost
diligence to resolve the out-trade. No new positions can be created pursuant to this rule.

Aclearing member desiring to offset such positions must notify the Clearing House by reporting its final
open interest and submitting an Alternative Delivery Notice in accordance with the schedule established
by the Clearing House Risk Committee and posted in the Clearing House Manual of Operations. Upon
receipt of an Alternative Delivery Notice, the Clearing House shall randomly assign offsetting positions
to each member or clearing member, thereby extinguishing each party's obligation to make or take
physical delivery; provided, however, that in the event the Clearing House is unable to assign offsetting
positions due to an insufficient number of available positions, delivery shall take place as required under
Exchange rules.

17


31303.

31403.

31503.

315A04.

31603.

CHAPTER 313
Euro/ Norwegian Krone (Euro/ NKr) Cross Rate Futures

EMERGENGIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)FHthe
hi Rrosid ines-that iets-and/or physical-deli P

Exel

gt gency
trike fi ident_act-of g a tof Ged, he shall call-a special ting-ef the Board-of

tdot

gency

4 th tation-of evid cting-th iti
Direct ad. g0-fol ? —Ifthe
Fh,

CHAPTER 314
Euro/ Swedish Krona (Euro/ Skr) Cross Rate Futures

EMERGENCIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES )iF thi
Exch: President determines-that icts-andior physical delivery i
i g gency I ented by

CHAPTER 315
Euro/ Czech Koruna (Euro/ Koruna) Cross Rate Futures
EMERGENCIES,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES Fhe

ik ident-act-of " tof Ged_-he-shall-call-

CHAPTER 315A
Options on Euro/ Czech Koruna (Euro/ Koruna) Cross Rate Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
Refer to Rule 701, ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
i At kei

y- preconditi is Lofeithori ented by-a-ct

a ‘PF ¥ Fire;

ey concilonn tthe Soar doteerines thot antomorsoner-oriste-teehel tote eorhocton aot
d ¥y-under-the-circumetances-and ite decision-chall-be-binding-upor-all- parties tothe
contract.

CHAPTER 316

Euro/ Hungarian Forint (Euro/ Forint) Cross Rate Futures
EMERGENCIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)¥the

38


26603.

266A04.

26703.

267A04.

26803.

ines-that ists-it shall-take-cuch-acti ied d
Board deter an st ¥ 4ho

CHAPTER 266
Czech Koruna Futures

EMERGENGIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND. OTHER EMERGENCIES} #+he
hi id "

tdet
tof
a

‘5
trike-fi id ct of Ged_he shall call

CHAPTER 266A
Options on Czech Koruna Futures

EMERGENCIES, ACTS-OF- GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. ~ ACTS OF GOVERNMENT, ACTS. OF GOD AND OTHER EMERGENCIES )¥
exercise; assignment,-or delivery oF any-pre a the ted-by strike;-fire;

p
ident-act-of n tof Ged_the-sell br hall immediatel tify the Exch
g i nse

CHAPTER 267
Hungarian Forint Futures

EMERGENGIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) Hhe

CHAPTER 267A
Options on Hungarian Forint Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)
nt,-or- deli

iti tthereok i tod-by-strik
y PI Og 2; fife;

CHAPTER 268
Polish Zloty Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
Refer to Rule 704. — ACTS. OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES }¥Hthe
Exchange Presid 'y-is-_prevernted-by

td ines-that-an ts-andi ical. doth

etrike fi sion actote ont, ctof.God_hi

Direct J. forth tation of avid pecting the. condition Ifthe
gt I pecting gency



355C33.

35604.

356A03.

356A33.

356B04.

356C03.

(CTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 356603701. - EMERGENCIES, ACTS-OF-GOD-ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 356
S&P 500/ BARRA Value Index Futures

}- ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule Z01. = ACTS OF GOVERNMENT. ACTS OF GOD AND OTHER EMERGENCIES}
dels tobeithert tod-by-a-strik

¥ ai

President_—if the-President determines-that gency 1
ting of the Board of Direct d-arrange for the presentation of ovid ting th
emergency-_conditiontHthe Beard determines that ot enditi ts it shalltak ia)
acti itd der-the-ci " dite-d shall-be-bindi -all- parties
¥ ie Pi
to-the-contract.
CHAPTER 356A

Options on S&P 500/ BARRA Value Index Futures

EMERGENCIES, ACTS OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701, — ACTS OF GOVERNMENT, ACTS OF SOD. AND OTHER. EMERGENCIES)
Aditi

ted- by

itshal-tak

gt
de der-the-ci + ‘dite decision shall_be-bindi 1-parties-to-th
¥ ig UpOR alt pal

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 356403701. - EMERGENCIES, ACTS-OF-_GOD-ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 356B
S&P 500/ CITIGROUP Value Index Futures

‘ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
{Refer to Rule 704

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)}¥

tion-of

a g -the-selle uyersha ed otify cha
President—f the President determines-that ary, he-shall-call-a special
- gency nay :
‘ ‘ forthe tation-of evider ting th
S ? posting
sendition__if the Board determines that dition existe. it shall take-cuch

CHAPTER 356C
Options on S&P 500/ CITIGROUP Value Index Futures

EMERGENCIES, ACTS OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

7 Aditi toteitheri tod by-a strike fi
ig a a ot

43


4 The-Chief Executive-Officer- shall-determine-the-ch: if

ge itary; oH
the last day-ef-trading-to-the tat the-first-d vhich-the-t ti id-be
iy 'g Pot y
ted-on-th - market—The-spet market-rate-for ef -thi tation-chall-be.
‘ia a tia Ligeidin Apt

FOREIGN CURRENCY BUYER’S DUTIES
737.A. Currency Contracts

Aclearing member representing a customer that intends to accept delivery of a foreign currency in
liquidation of his net lon: ition in that foreign currency shall, no later than 11:00 a.m. on the last di

of trading, present to the Clearing House a Buyer's Non-CLS Delivery Commitment. In addition, the

clearing member shall either deposit, or present a bank Order to Pay, an amount equal to the net U.S.
dollar value of such customer's positions. Values for positions in contracts with minimum fluctuations
denominated in U.S. dollars shall be the contract value based on the settlement price on the last day of
trading. Values for positions in contracts with minimum fluctuations in foreign currency shall be the
contract size. If the buyer elects to pay by deposit, the deposit shall be made by 1:00 p.m. on the first
day pre ling the deliver that is a business day common e Exchar icago banks ai
New York City banks for all other currencies. Such deposit shall be in the form of a wire transfer of
same-day funds to an account at a bank designated by the Clearing House. If the buyer elects to pay
by bank Order to Pay, an Order to Pay from an Exchange-approved bank shall be presented to a bank
designated by the Clearing House by 1:00 p.m. on the first day preceding the delivery day that is a
busines: common to tl change, Chicago banks and New York City banks for all other
currencies. The Bank Order to Pay shall be in a form approved by the Clearing House, and shall

mise to sam on the delivery day.

737.B. Physical Delivery Currency Cross-Rate Cont

A clearing member representing a customer that intends to accept delivery of a Physical Delivery
Currency Cross-Rate Contract in liquidation of his position shall, no later than 11:00 a.m. on the last day
of trading, present to the Clearing House a Buyer's Non-CLS Delivery Commitment. !n addition by 1:00
.m. on the first day pre ling the delivery day that is a business day common to the Exchange,
hic banks and New York City banks, the clearing member shall either deposit, resent a Bat
Order to Pay, an amount in the minimum-fluctuation currency equal to the contract value based on the
settlement price on the k of trading. leposit shall be in the form of same-day funds to an
account at a bank designated by the Clearing House. The bank Order to Pay shall be in a form
approved by the Clearing House, and shall promise to pay same-day funds on the delivery day.
737.C. Physical Deli Euro versus Polish Zloty, Hungarian Forint and Czech Koruna
Cross-Rate Contracts

Aclearing member representing a customer that intends to accept delivery of Polish zloty, Hungarian
forint or Czech koruna in liquidation of his net long position in that foreign currency shall, no later than
11:00 a.m. on the last day of trading, present to the Clearing House a Buyer's Non-CLS Delivery
Commitment._In addition, the clearing member shall either deposit, or present a bank Order to Pay, an
amount equal to the net Euro value of such customer's positions. Values for positions in contracts with
minimum fluctuations denominated in Euros shall be the contract value based on the settlement price
on the day of trading multiplied by the trading unit. If the buyer elects to pay leposit, the deposi
shall be made by 9:00 a.m. on the first business day preceding the delivery day that is a business day



of thatsuch Aagreements may constitute a major rule violation. *

2. A clearing member may become a Participating Clearing Member in a Guaranteed Cross-Margining
Program by entering into a Cross-Margining Participant Agreement with the Exchange, the Cross-Margining
Clearing Organization, and, if applicable, the clearing member's Cross-Margining Affiliate. That Agreement
shall provide, among other things, that a Participating Clearing Member shall immediately be obligated to
reimburse the Exchange ("Reimbursement Obligation") in the event the Participating Clearing Member or its
Cross-Margining Affiliate defaults in the payment of any obligation to a Cross-Margining Clearing
Organization and the Exchange is required to make a guaranty payment to such Cross-Margining Clearing
Organization. In addition, the Agreement shail provide that the Exchange shall have a first lien and security
interest in all positions held, all related performance bond, and all proceeds of the foregoing, as security for
the obligations of the clearing member and, if applicable, its Cross-Margining Affiliate, to the Exchange.
Failure to comply with the terms of that Agreement may constitute a major rule violation.

3-—The provisions of this Rule 830 and the corresponding sections of the Clearing House Manual shall apply to
all CME-tleared positions held pursuant to a Joint-and-a-Guaranteed-Ccross-Mmargining Rprogram and
shall supersede all other provisions of the Rules to the extent inconsistent therewith. In addition, the
Exchange s! determine what positions will be eligible for cross-margining. in-a—Jeint-and-Guaranteed

830.C. [Reserved] :
830.D. Performance Bonds for Cross—Margining Program 7

Performance bond requirements for a Joint and Guaranteed Cross—Margining Program shall be determined as
set forth in the Cross-Margining Agreement, and that Agreement shall also govern what forms of performance
bond will be permitted and how such performance bond will be held.

830.E. Close—Out of Cross—Margin Positions *

A Participating Clearing Member may be suspended if it or its Cross-Margining Affiliate, if any, is in default in
payment of any obligation, including a Reimbursement Obligation, with respect to a Joint or Guaranteed Cross—
Margining Program.’

The cross-margin account of a clearing member participating in a Joint Cross~Margining Program may be
liquidated by the Clearing House at the request of a Cross-Margining Clearing Organization whether or not the
Exchange suspends, or is permitted under the Rules to suspend, such clearing member. Upon the suspension
of a Participating Clearing Member, or upon receiving notice from a Cross-Margining Clearing Organization of its
suspension of a Participating Clearing Member or its Cross-Margining Affiliate, the Clearing House shall have the
right to liquidate the positions in the cross-margin account, convert to cash the performance bond therefor, and
dispose of the proceeds thereof, all in accordance with the terms of the Cross-Margining Agreement.

The positions of a clearing member participating in a Guaranteed Cross-Margining Program may be liquidated by
the Clearing House in the event that the Participating Clearing Member or its Cross-Margining Affiliate defaults in
the payment of any obligation to the Clearing House or a Cross-Margining Clearing Organization. Upon the
suspension of a Participating Clearing Member, or upon receiving notice from a Cross-Margining Clearing
Organization of its suspension of a Participating Clearing Member or its Cross-Margining Affiliate, the Clearing
House may liquidate: the positions of the Participating Clearing Member; all related performance bond; and all
proceeds of the foregoing. The Exchange may then apply all such liquidated proceeds to satisfy the Participating
Clearing Member's obligations to the Exchange, all in accordance with the terms of the Cross-Margining
Agreement.

(Next Rule 832850)

* Effective September 1989.
? Revised June 1992.
* Revised June 1992.
* Revised June 1992.
® Rule 831 deleted April 1998.
* Adopted January 1994. Revised April 1998.


41304.

41404.

41604.

416A03.

Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
ig a &-pre

diatoly-notify the Exch
hy notify the-&

CHAPTER 413
CME X-Fund Index Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

ik ident tof Ged_he-shall-calt a ofthe Board-of

CHAPTER 414
Futures-on-the-Eurozone Harmonized Index of Consumer Prices (HICP) Futures

EMERGENCIES, ACTS-OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)+4hi
oi p é-tha of the Final-Setti + Price

ted-by-strik

CHAPTER 416
CME Frost Days Index Futures

}- ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES.

{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES #4

CHAPTER 416A
Options on CME Frost Days Index Futures

}- ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES

(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)F

53


a y-underthe-circumetan <its-decision- shall be-binding uper-all parties tothe
CHAPTER 406A
Options on CME European HDD Index Futures

406A03. EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

If the Beard-det gency
di der-the-ci tan d-its-decision-shall-be-bindi i-parties-to-the

CHAPTER 407
CME European Seasonal Strip HDD Index Futures

40704, EMERGENCIES, ACTS- OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES iF 4h:

Exchange President determines-that ti y-he-chall-call-a-specia!

gency be.

CHAPTER 408
CME European CAT Index Futures

40804. EMERGENCIES, ACTS-OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF SOD AND OTHER. EMERGENCIES 44h

Exchange Procid -dotermines that i he -shalt-calt

gency a

CHAPTER 408A
Options on CME European CAT Index Futures

408A03. -EMERGENCIES, ACTS-OF- GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

{Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
7 at iti 7 tofeitherie-provented-by-a strike, fire

CHAPTER 409
CME European Seasonal CAT Strip Index Futures

40904. EMERGENCIES, ACTS-OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

51


CHAPTER 459
Ten-year Swap Futures

45906. EMERGENCIES, ACTS OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES |
deli " it jrement-of- either ie prevented by-a strike--fire,

F
accident_acti toractotGoed_the-selk br alli diately-notify-th

that hal take-such acti
3 ander ne crauractanooe and te deowlon ural be binding woos al parioe te
contract.
CHAPTER 501
Three-month Euroyen Futures
50107. ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

CHAPTER 501A
Options on Three-month Euroyen Futures

501A03. {RESERVEDJACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

(Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

CHAPTER 502
10-year Japanese Government Bond Futures

50206. 7 ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES Ce
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES }Hthe
Exehange-Presi b q

ident detormines-th: ° he-chall-call ji
t-det that-omergency-acti yr eall-a-6p

y the-cire and its-decision-shall-be binding upen-all parties to-the

CHAPTER 503
Three-month Euroyen LIBOR Futures

50306. EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES} he

57


pursuant to this Rule and shall be released in accordance with Rule 913.

8—After payment of an assessment pursuant to this Rule, a clearing member shall charge other clearing
members for whom it clears contracts or carries positions on its books to recover their proportional share of
the assessment. Such other clearing members shall promptly pay the charge.

9—To the extent that, and irrespective of the fact that, the Exchange has default insurance coverage in effect at
the time of an event of default, the Exchange may nevertheless continue to utilize the resources under the
priority outlined in Rule 802.B.1, B.2, and B.4. for immediate liquidity while awaiting any insurance proceeds.
Any insurance proceeds so recovered by the Exchange, to the extent not required by the Exchange to cure
a default, will be applied to the credit of the non-defaulting clearing members.

802.C. Rights of Exchange for Recovery of Loss

4
g ig ge; ge-may y accel
lear b b oflaw*

2-—lf a loss for which clearing members or their security deposits have been assessed is afterward
subsequently recovered by the Exchange orthe-Glearing-House-in whole or in part, the net amount of such
recovery shall be credited to such persons or firms (whether or not they are clearing members at the time of
recovery) in proportion to the amount of the assessment.

802.D. Security Deposits to be Restored?

In the event it shall become necessary as-previded-abeve-to apply all or part of the security deposits to meet
obligations to the Clearing House pursuant to Rule 802, clearing members shall immediately make good any
such deficiency in security deposits prior to the close of business on the next banking day.

803. LIMITATION OF LIABILITY >

The liability of the Clearing House shall be limited to losses resulting from the substitution of the Clearing House
upon contracts between clearing members and to losses in connection with substitution of another Participating
Exchange for clearing members (i.¢., pursuantte-the Mutual Offset System), and to losses in connection with
amounts due and owing from a Partner Clearing AHouse. The Clearing House shall not be liable for any other
obligations, including but not limited to, obligations of a non-clearing member, obligations of a clearing member
to a non-member, obligations of a clearing member to another member of the Clearing House who is acting for
him as broker, or obligations to a customer by a clearing member; nor shall the Clearing House become liable to
make deliveries to or accept deliveries from a customer of its clearing members.

804. SUBSTITUTION ‘

Except with respect to trades made pursuant to Rules 526, 538, 719, and-853; and transactions entered into
under CME AM and Rule 8D38, the Clearing House shall, through the process of novation, be substituted as,
and assume the position of, seller to the buyer and buyer to the seller of the relevant number of Exchange or
Marketplace contracts upon the successful matching of trade data submitted to the Exchange by the clearing
members on the long and short sides of a trade. With respect to contracts that are traded on and matched by
another exchange or market, the Clearing House shall be substituted as, and assume the position of, seller to
buyer and buyer to seller of the relevant number of such contracts upon matching of trade data submitted to and
accepted by the Exchange.

Upon such substitution, each clearing member shall be deemed to have bought the contracts from or sold the
contracts to the Clearing House, as the case may be, and the Clearing House shall have all the rights and be
subject to ail the liabilities of such member with respect to such transaction. Such substitution shall be effective
in law for all purposes.

With regard to trades made pursuant to Rules 526, 538, 719 and 853, the Clearing House shall be substituted at
the time payment of the first settlement variation and performance bond due for such trades pursuant to Rules

" Revised October 1989; June 1992; January 1994.
? Revised February 1988; October 2001.
* Revised September 1984; April 2002.
* Revised December 1990; May 2000; June 2000; April 2002; June 2003.


40104.

401A03.

40304.

403A03.

{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES }¥
dolivery-or aeceptance-orany-preconditi

Lof-either-i ted-by-a-strike-fi
ia ¥
id tion-of- gover tof act-of Ged_the sell hall diately tify- the Exch

gt

CHAPTER 401
Goldman Sachs Commodity Index Futures

a ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES 4h

ident determines-thatthe-cak £the-Final Settl Ri bby

CHAPTER 401A
Options on Goldman Sachs Commodity Index Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES¥

m7 t Lofeither-k ted-by-a strike fi
gt ait a Pt fre;

2 gency 7
de nder-the-ci ry .d-its-decision-shall_be-bindi parties to-4h

CHAPTER 403
CME Degree Days Index Futures

\CTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES the
Exehange-President-determines-that gency ¥ ¥-he-shaltcalt

CHAPTER 403A
Options on CME Degree Days Index Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to Rule 701. = ACTS OF GOVERNMEN ACTS OF GOD AND OTHER EMERGENCIES}
ted-by-a-sirikefi
i £4

tebeith

49


CHAPTER 54A
Options on Nonfat Dry Milk Futures

54A03. EMERGENCIES, ACTS OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)IF

CHAPTER 55
Class IV Milk Futures
5508. EMERGENGIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES
Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}IF the
President determines that the calculation of the-final- settlement price-is prevented -by-a
trike, fire, accident, action-of " ct-of God, he-shall-call-a-special ting-of the

7 g 7

CHAPTER 55A
Options on Class IV Milk Futures

55A03. EMERGENCIES, ACTS-OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

{Refer to Rule 701. —- ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

55A33. EMERGENCIES, ACTS OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 5403701. - EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 56
Cash Settled Butter Futures

5608. EMERGENCIES,-ACTS- OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) the
chan esident determines that the-calculation-of the final settlement _price_is-_prevented-by-a

21


316A04.

31703.

317A04,

35104.

351A03.

CHAPTER 316A
Options on Euro/ Hungarian Forint (Euro/ Forint) Cross Rate Futures
EMERGENGIES,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)
i iti " tof-either i tod-by-a-strike—fi

° "
exer S6ig) PI 4 Pi mn Fire;
id + of vi +-of Ged-the-sellerorb hy ediately- notify the Exch:

CHAPTER 317
Euro/ Polish Zloty (Euro/ Zloty) Cross Rate Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES \#Hthe

CHAPTER 317A
Options on Euro/ Polish Zloty (Euro/ Zloty) Cross Rate Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF G GOD AND OTHER EMERGENCIES) M
fi

ted-b:

yp
ident,-act-of. ‘oF aet-of Ged, the seller or buyer shall oly notify the Ex
g eI ned hang
that ‘

CHAPTER 351
Standard and Poor's 500 Stock Price IndexTM Futures

‘ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 704. ~ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

y-preconditi irement of either ie-p' ted by-a-strike-fi
i nt or-actot Ged: the-sel buyer-shi iHramediately notify the Exehange
Prosident—f the President determines-that- acti be he-shall-ealt ial

CHAPTER 351A
Options on Standard and Poor's 500 Stock Price IndexTM Futures

EMERGENCIES, ACTS OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 2701. — ACTS. OF GOVERNMENT. £ ACTS OF SOD AND OTHER, LEMERGENCIESHH

39


829.

830.

to-forthwith-effect

ofall

the Closing House Risk C all direct that memb ;
, inquency._f there ie a failure to so effectuate the roduct
the next business day. the Chief Exocutive Officar oF Prosident shal thot dor the clo

th irod_part-of-the-cleari bi i thd ideration_tethi jtions-of-cust

ADVANCE-CALL FOR- SETTLEMENT [RESERVED]

If-the-market-cenditi fluctuati 4-that-the-Clearing-Hi deems-it it: all

CROSS-MARGINING ‘
830.A. Definitions

1. Cross-Margining Affiliate: An affiliate of a Participating Clearing Member with which such clearing member
is cross-margining its positions at the Clearing House and a Cross-Margining Clearing Organization.

2. Participating Clearing Member: A clearing member that is cross-margining its positions at the Clearing
House with its own or a Cross-Margining Affiliate's positions at a Cross- Margining Clearing Organization.

3. Cross-Margining Clearing Organization: A clearing organization that has entered into a Cross-Margining
Agreement with the Exchange.

4, Joint Cross-Margining Program: A cross-margining program in which the Exchange and one or more Cross-
Margining Clearing Organizations each hold a joint security interest in positions, margin and other property
of Participating Clearing Members and, if applicable, their Cross-Margining Affiliates.

5. Guaranteed Cross-Margining Program: A cross-margining program in which a guaranty is provided by and
between the Exchange and one or more Cross-Margining Clearing Organizations and each entity holds an
individual security interest in positions, margin and other property of Participating Clearing Members and, if
applicable, their Cross-Margining Affiliate.

830.B. Cross—Margining Programs *

1. The Exchange may establish _cross-margining programs as approved by the Clearing House Risk
Committee and the Board. A clearing member may become a Participating Clearing Member participate in a
Joint Ccross-Mmargining Pprogram by establishing with the Clearing House one or more cross-margin
accounts for cross-margining positions with either its own positions or those of a Ccross-Mmargining
Aaffiliate. at a Cross-Margining Clearing Organization. In order to establish a cross-margin account, a
clearing member shall enter into the agreements required by the Exchange. a Cross-Margined Account
Agreement and Security Agreement with the Exchange, the Cross-Margining Clearing Organization, and, if
applicable, the member's Cross-Margining Affiliate. That Agreement shall provide, among other things, that
the Exchange and the Cross-Margining Clearing Organization shall jointly have a first lien on and security
interest in all positions held in the cross-margin account, all related performance bond, and all proceeds of
the foregoing, as security for the obligations of the clearing member and, if applicable, its Cross-Margining
Affiliate, to the Exchange and the Cross-Margining Clearing Organization. Failure to comply with the terms.

* Revised February 1986; November 1987; March 1988; June 1992; Revised November 2000.
? Revised June 1992; Revised November 2000.

* Revised February 1986; November 1987; March 1988; June 1992.

“ Effective September 1989. Revised April 2000.

* Revised June 2003.



#%4—To make such reports, keep such records and permit such warehouse visitation as the CFTC may
prescribe under the provisions of the Commodity Exchange Act; such books and records to be kept
by the warehouse for a period of five years from the date thereof, or for such otheratenger period if
the CFTC shall so direct, and such books and records and warehouse shall be open at all times to
inspection by any representative of the CFTC, the United States Department of Justice andor
authorized officials of the Exchange.

87. To report not later than 44:00 ap.m. Centrallecal time on the firsteach business day of each week,
or as required by the Exchange, to representatives of the CFTC, and the Exchange, total stocks of
such commodities as are traded on the Exchange which are held in storage ast of the c!
of business the preceding weeker-such-date, and all receipts and withdrawals of such commodities
occurring subsequent to the last report.

7043.B. Warehouse Receipts

‘Warehouse receipts presented in satisfaction of delivery requirements must have been
issued by a warehouse which has been approved by the Exchange for at least 30 days previous to the
date of the delivery, and the commodities covered must have entered storage on or subsequent to the
date of approval. The initial date of approval of warehouse, the approved status of which has been
continued or renewed without interruption since that initial approval, shall be deemed the date of
approval.

APPROVED STOCKYARDS AND SLAUGHTER PLANTS FOR LIVE CATTLE

Deliveries on Exchange contracts of live beef cattle-feeder-catile-andtean-hegs can be made only
fremat public livestock yards and slaughter plants designated and approved for delivery by the
Exchange.
A public livestock yard shall not be eligible for deliveries as an approved stockyard unless it is a
stockyard within the definition of the Packers and Stockyards Act, 1921 as amended, -
States Code, Sections 184-3, 201-217a-and 221-9}.and has received notice to that effect from the
Secretary of Agriculture. Approved stockyards shall be required to keep such records, make such
reports and be subject to inspection and regulation by the Secretary of Agriculture, as provided in said
Packers and Stockyards Act.
An approved slaughter plant sh it a min lly ins lat primarily fe

normal course of business, have a fed cattle slaughter capacity of at | head per day, have
proper facilities for weighing and grading, and be located within approximately 150 miles of one or more

approved stockyards.

705,

706.

APPROVED PLANTS FOR PORK BELLIESY-PLANTS

A-plantiln order to become eligible for in-plant a-Ghieage-M tile-Exehi 4ne-inspectiongradings
of pork bellies,-point; a plant shall apply to and be approved by the Exchange.

The owner or owners of the approved plant must certify the following:

a. The Planti is s federally inspected;

be. The e plant h has proper facilties for * inspoctiongrading a and 1d weighing;

cd. The plant has either resident Agricultural Marketing Service graders or has made arrangements
with regional AMS personnel so that iaspectiongrading can be handled in the prescribed time.

APPLICATION FOR GRADINGINSPECTION

Application for live beef cattle or pork bellies gradingsinspections to be used for delivery on exchange

transactions must be filed by clearing members with the Clearing House. Requests for

gradingsinspections will be forwarded to the appropriate government office er otherinspection-agency

in the order in which applications are received.

N ber-shall-ord ficial inepecti ther mambers-goods without tho-wrtion order of
-momber—No-inepection-shall-be-mad ty hich there-is-outetanding-an



851.

852.

853.

100% of a clearing member.

8. __ Transactions for the proprietary accounts owned by each related hedge fund in a "family of funds” which
Ids membershi} uant to Rule 106S. subject to approval by Exchange staff,

9. Transactions for_joint_accounts owned by _a_member/parent, member/spouse_or_member/child_or a
member/Rule 106.H. firm or a member/related party which would receive member rates.

10. Transactions executed on the trading floor for an account jointly owned by members will be based on the

combined memberships of all account owners, in accordance with Exchange policy for member rates.
Transactions executed on Globex for an account jointly owned by members will be based on the combined

memberships of both the operator and account owners, in accordance with Exchange policy for member

rates. The type of membership held (equity, lessee, clearing member, Rule 106.H., 106.1, 106.N., 106.R. or
7 Fi -

106.S.) will

constitutes a “de facto” joint account for clearing fee purposes between the executing member and the
account owner with respect to the trading activity of the executing member. For off-floor trading activity, an
account is presumed to be jointly owned (for clearing fe es) where _an individual or entity has dil

or indirect risk of loss with respect to a specific trading account or group of trading accounts.

“Lowest Common Denominator” (LCD) Rule” - To determine the rates charged for a joint account, the LCD rule is
used. Rates are determined by the type of membership held by all of the owners and applying the rates
corresponding to the lowest level of membership (highest rate).

Non-Member Rates will apply in the following circumstances:

i___ Transactions for_accounts owned by persons not holding Exchange memberships. _(This_includes
transactions for officers and employees of clearing member firms, who may be considered "house" accounts

of the firm, but who are not members.

ii, Transactions for the account jointly owned by a member and one or more non-members, except as noted in
member rate categories 4. or 9. above.

iii. Transactions for an omnibus account, whether or not the account is held in the name of a member, unless
there is clear evidence that all transactions in the omnibus are eligible for member rates.

iv._Transactions for accounts owned by a corporation or partnership which is not 100% owned by a member or
members and which does not fall into member Rate categories 4., 5. or 9. above.

GIVE-UP CHARGES [RESERVED]

FINES FOR ERRORS, DELAYS AND OMISSIONS ?

Exchange staff shall establish, and from time to time revise, schedules of fines to be imposed upon clearing
members for errors, delays and omissions with respect to trade and position data and other required Clearing
House memoranda. These fines are to be collected by the Clearing House.

TRANSFERS OF TRADES *
A. Subject to the approval of Exchange staff:

1. Existing trades may be transferred from the books of one clearing member to the books of another
clearing member provided:

i Two or more clearing members merge. In that event, a transfer fee in the amount of the reqular
clearance fee may be assessed against each clearing member.

fi. __A clearing member resigns from the Clearing House. _In that event, a transfer fee in the amount of
the regular clearance fee may be assessed against each clearing member.

A_new member of the Cleari use_has an interest in existing trades on another clearin
member's books. The original clearing member shall not suffer any loss in commission to which he

‘ Revised March 1979. Amendments of March 1992 rescinded June 1992. Revised June 1992.

? Revised November 2000.

> Revised August 1994; November 2000. Please see “Treatment of Concurrent Long and Short Positions, with Special Reference to Hold-Open Accounts” in
Interpretations and Special Notices at the end of this Chapter 8.



850.

MISCELLANEOUS
CLEARING HOUSE CHARGESFEES
A._Exchange Fees
Exchange _Glearing-House-charges—fees, including clearing fees, Globex system fees, brokerage and/or any
transaction surcharges, shall be assessed against a clearing member for each side of a transaction in-a

ceramodity_futures—trading—unit_traded on, cleared by or processed through the Exchange as the Board or
Exchange staff may from time to time prescribe.

B.__Clearing Fees

Member rates will apply in the following situations based on the membership division held (note:_"membership
I

an the membership division held will receive non-member rates.

1. Transactions executed on the trading floor for an account owned by a member if executed in accordance
with Exchange poli member rates. Transactions executed on Globex for an account owned by
member _will_ be based on the combined memberships of both the operator and account owner, in
accordance with Exchange policy for member rates.

2. Transactions for accounts owned by persons holding memberships through CME Rule 106.C. or D. if
executed in accordance with Exchange policy for member rates. The owner of the membership does not
receive members’ rates.

3. Transactions for the rietary accounts of a clearing member and its subsidiaries, which are wholh
owned, directly or indirectly. (See Non-Member Rates i. below.)

Transactions for accounts owned b) neral_partners of clearing member whether or not they are
members.

5. Transactions for an account owned by a corporation or partnership which is wholly-owned by a member or
members and which transactions are solely for their benefit if executed in accordance with Exchange policy
for member rates and as noted in Member Rates 1. above.

§. Transactions for the proprietary accounts of firms holding membership pursuant to Rule 106.H., 106.N. or
106.R. subject to approval by Exchange staff. If an employee of such firm holds the membership either the
member or the firm ma jive member rates, but not both.

7.__Transactions for the rietary accounts owned by each related party ina chain of relat arties_ which,
holds a membership pursuant to Rule .1. subject to approval by chant taff. A "rel: | ” shall
be defined to include a clearing member or a firm that either: _owns, directly or indirectly, 100% of a clearing
member or has 100% ownership, direct or indirect, in common with a firm that owns, directly or indirectly,



854.

855.

GE. All transactions above shall be reported to the Clearing House in a form acceptable to the Exchange for the
type of transactions involved. The clearing members involved shall maintain a full and complete record of all
transactions together with all pertinent memoranda.

fRESERVED]TREATMENT OF CONCURRENT LONG AND SHORT POSITIONS

Set forth below are the procedures that must be followed for concurrent lon short positi ind _hold o)
accounts.

4. Unless concurrent long and short positions in the same commodity and month are held: i) on behalf of a
domestic or foreign omnibus account; or _ii) in accordance with CFTC Regulation 1.46, a single clearing
member shall not carry such positions for:_a) a single at int; or_b) a ints under common control and
ownership. It is the duty of the clearing member to ascertain that such positions are permitted to be
concurrently long and short.

2.__If.a single clearing member carries both speculative and e positions, they shall not be held in the sam
account, a separate hedge account must be so designated. Clearing members must obtain evidence
ascertaining the validity of positions classified as bona fide hedges.

3. Concurrent long and short positions may not be offset by netting, transfer, adjustment, or any other
bookkeeping procedures, but each side must be offset by normal transactions or in accordance with CME
Rules 538 or 719 (cash for futures).

4.__Clearing members who, pursuant to the rule, carry concurrent long and short positions, must report to the
Exchange both sides as open positions. When either side, or both sides are reduced through transactions in
the pit or in accordance with Rules 538 or 719, the open positions as reported to the Exchange must be
reduced accordingly.

5. The Exchange takes no position regarding the internal bookkeeping procedures of its clearing members
who, for the convenien: a customer, may "hold open” sition on it ks. Hi r, following an
offsetting transaction on the Exchange, regardless of what is indicated on the clearing member's internal
records, the Exchange Clearing House must be notified that the offset has occurred. Following this offset,
the date represented by the long position is no longer available for delivery purposes. This procedure
should eliminate the need for adjustments to be made during the fina! days of trading.

6.__ Although CME Rule 853 allows for existing trades to be transferred to the books of another clearing member
at the request of a customer, it is consi to be a violation of Exchan: les to kno allow such
transfer when it would result in concurrent speculative long and short positions not allowed by this rule. The
positions which would create the concurrent long and short situation may not be so transferred, but must
remain with the original clearing member, be transferred elsewhere, or liquidated by normal transactions or
in accordance with CME Rule 538 or 719.

OFFSETTING E-MINI AND REGULAR FUTURES POSITIONS *

A. With the consent of the account controller, a clearing member may offset and liquidate long E-Mini futures
Positions against short regular futures positions, or short E-Mini futures positions against long regular
futures positions, held in the same account in the following ratios of E—Mini to regular futures contracts:

E-Mini S&P 500 to regular S&P 500: St
E-Mini Nasdaq 100 Index to regular Nasdaq 100 Index: 5:1
E-Mini S&P Midcap 400 to regular S&P Midcap 400 5:1
E-Mini Russell 2000 to regular Russell 2000 5:1
E-Mini Currency to regular Currency: 24

The clearing member shall notify the Clearing House of offsetting positions by submitting reports to the
Clearing House in such form and manner as the Clearing House shall specify. The positions shall be offset
at the previous day's settlement price. *

B. The positions being offset shall be transferred to a CME holding account. Long and short positions in the

same contract and contract month held in the holding account shall be netted, thus reducing the number of
open positions in such contract.

(End Chapter 8)

* Effective September 1997. Revised May 2000; November 2001; October 2004.
? Revised September 1999; May 2000.



25903.

259A04,

26003.

260A04.

26103.

CHAPTER 259
South African Rand Futures

EMERGENCIES,ACTS OF GOVERNMENT, ACTS OF GOD_AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIE S}##4h

£the Board-of

tik ident, tof. God,-he-shall call,

CHAPTER 259A
Options on South African Rand Futures

}- ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)
” tor dol 7 ith i

nd £ ted-by-strik
an Fog Pi yy

¥

CHAPTER 260
Russian Ruble Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}#the
Exchange President determines -that-the calculation ofthe Final Setth t-Price-ie-p ted-by strike,

CHAPTER 260A
Options on Russian Ruble Futures

-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)
? . = 7

ith tod_by-striko-fi

CHAPTER 261
Euro Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD_AND OTHER EMERGENCIES

32


771,

The assignment of offsetting positions shall release clearing members and the Exchange from their
respective obligations under the contracts.

Violation of this rule for the purpose of avoiding delivery may be a major offense.
DELIVERY OF CBOT PRODUCTS

SETTLEMENTS ON DELIVERY FAILS

In the event a clearing member fails to fulfill its specific delivery obligations regarding a CBOT product
pursuant to CBOT rules, the sole obligation of the Exchange is to pay reasonable damages proximately
caused by such delivery obligation failurethe-default, but in no event is the Exchange obligated to either:
(1) pay any damages greater than the difference of the delivery price of the specific commodity and the
reasonable market price of such commodity at the time delivery is required according to the Rules of the
Exchange; or (2) make or accept delivery of the actual commodity; or (3) pay any damages relating to
the accuracy, genuineness, completeness, or acceptableness of certificates, instruments, warehouse
receipts or other similar documents; or (4) pay any damages relating to the failure or insolvency of
banks, depositories, warehouses, or similar organizations or entities that may be involved with a
delivery.

Notwithstanding any provision of the rules, the Exchange has no obligation or liability to any clearing
member or any other person relating to a failure to fulfill a delivery obligation unless it is notified by the
Aen-defaulting-clearing member that did perform, or was in a position to perform its delivery obligations,
that a ef sueh-failure occurred, as soon as possible, but in no event later than sixty minutes after the
time the delivery obligation was to have been fulfilled according to the rules of the CBOT.

All delivery obligations of a clearing member to another clearing member which are not fulfilled by
thesuch non-performing clearing member shall be deemed an obligation ef the-defaulted-clearing
fnember-to the Exchange by the clearing member that failed to perform such delivery obligations.
These obligations must be fulfilled to the Exchange within sixty minutes of the time the obligations were
required to be fulfilled to the nen-defaulting-clearing member _that did perform its delivery obligations.

It shall be a major rule violation for a clearing member to fail to perform its delivery obligations regarding
a CBOT product. Notwithstanding any provision in this rule, neither CME nor CBOT are prohibited from
declaring a clearing member to be it it under the applicable rules of either exchange if thi
circumstances warrant such a determination.

772.-779. RESERVED]

780.

781.

782.

783.

SECURITY FUTURES PRODUCTS
SECURITY FUTURES PRODUCTS

Deliveries of Security Futures Products effected on a Marketplace apart from the Chicago Mercantile
Exchange and cleared by the Clearing House per the provisions of Chapter 8-B shall be governed as
set forth herein.

DELIVERY OF UNDERLYING SECURITIES

At maturity of a physically-settled stock future, in addition to the final variation payment (if any), the
Clearing Member that is, or that represents, the seller shall be obligated to deliver, and the Clearing
Member that is, or that represents, the buyer shall be obligated to receive and pay for, a quantity of the
underlying security equal to the unit of trading at the aggregate purchase price.

DESIGNATION OF DELIVERY FACILITIES

Clearing Members shall be required to designate a clearing member of the Options Clearing
Corporation (OCC) who is also a member of the Depository Trust Clearing Corporation (DTCC) to
facilitate deliveries of physically-settled stock futures. Such designations shall be made through the
execution of such agreements and per such procedures as the Clearing House may designate from
time to time. Settlement of the obligations to deliver and pay for such underlying securities shall be
effected in accordance with the provisions of the OCC and DTCC. The parties to such delivery shall
bear the costs associated with such delivery per the provisions of the OCC and DTCC.



152A33. EMERGENCIES, ACTS-OF-GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES
(Refer to Rule 462403701. - EMERGENCIES, ACTS-OF-GOD,ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 201
Random Length Lumber Futures

20108. fRESERVEDJACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

CHAPTER 201A
Options on Random Length Lumber Futures

201403. EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}

201A33. EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES
(Refer to Rule 204403701. - EMERGENCIES, ACTS-OF-GOD,ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 202
Ethanol Futures

20208. EMERGENCIES, ACTS-OF GOD, ACTS OF GOVERNMENT, ACTS GOD AND OTHER
EMERGENCIES

(Refer to Rule 701

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}#4h

‘End Chapter 202

INTERPRETATIONS & SPECIAL NOTICES RELATING TO CHAPTER 202

PENALTIES AND FINES (Amended December 2005)

Cause Penalty / Fine
A. 1. Materially incomplete or $200 per business day (assessed
erroneous shipping instructions or against the buyer and payable to
material adjustment to instructions. seller).

2. Failure by the seller to properly
follow shipping instructions within $200 per business day (assessed

24


51A33. EMERGENCIES, ACTS-OF-GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 4493701. - EMERGENGIES, ACTS-OF GOD-ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 52
Milk Futures
5208. EMERGENCIES, ACTS-OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND. OTHER EMERGENCIESHA
id

t- determines that the-calculation-of- the-final-cetth ted-by a citi

et ee-respecting
the-omergeney-condition If he-Beard-or Committee determines-that jets itehalltake
h-acti itd dor-the-ci ti ad ite decision shall be-bindh "
yund ig PO
parties fothe contract.
CHAPTER 52A

Options on Milk Futures

52A03. EMERGENCIES,-ACTS-OF-GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)F
exercise-or assignment-or any-_preconditi tofeitheri ted by-a-strike;-fire;
hall-immediate!

52A33. EMERGENCIES, ACTS OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to_Rule 52403701. - EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 52B

Midsize Options on Milk Futures

52B03. EMERGENCIES, ACTS-OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT. ACTS OF GOD AND OTHER EMERGENCIES)IF

exercise oF assig ent OF any pro ith Foq irement of either ic prevented by-a strike, fire,

CHAPTER 54
Nonfat Dry Milk Futures

5408. EMERGENCIES, ACTS- OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) the
han ermines-_that-the-calculation-of the-final-settle price ented bya

20


261A04.

26203.

26303.

26403.

26503.

Refer <1 Rule 1. = ACTS. OF GOVERNMENT, ACTS OF GOD AND OTHER EMER Genes ihe

CHAPTER 261A
Options on Euro Futures

EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}

CHAPTER 262
E-mini Euro Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS. OF BOD f AND OTHER EMERGENCIESHF tho

all-partios-to-th

g-UP

CHAPTER 263
E-mini Japanese Yen Futures

EMERGENGIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) the

n andite-d shall be-bi ing upon all partis o-tho contract.
CHAPTER 264
Norwegian Krone Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

Refer to Rule 701. ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES }#Hthe
‘Exchange President-dete: ge ists andlor physical deli ted-b:

CHAPTER 265
Swedish Krona Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD_ AND OTHER EMERGENCIES
Refer to Rule 704. - ACTS | OF F GOVERNMENT, ACTS. OF Ot D AND. OTHER EMERGENCIES HHthe

ident-act of g ct of Ged_he-shall-calt Lmooti dof

accident, at, e-shal 2 special meoting of the B

Directore and. for-the tation-of vid ti dition_—H-the
e - P gency :

33


743,

ifthe Seller's CLS Delivery Commitmentik ived tater than-44-00-a.m-Chi i theJast-d:

- 00-24 ir
hall-be ed-a-fine. tract basis,th tto-be-detormi Board—A

TA2.A. CLS Delivered Currency Futures Contracts

Exchange currency futures contracts delivered through the CLS Bank and/or the CME CLS Agent Bank
shall be netted according to procedures specified by the Clearing House from time to time.

742.B. Non-CLS Delivered Currency Futures Contracts

To facilitate spread trading between currency products where positions held to termination create
offsetting currency payment obligations, the Clearing House may net to the extent possible physical
delivery payment obligations by clearing member customer by currency, in accordance with the
procedures outlined in the Clearing House Manual of Operations. Clearing members desiring netting of
obligations may only net payment obligations that arise from positions belonging to the same beneficial
account owner, and shall be required to submit a Delivery Netting Request form, which identifies the
final positions and net currency payments of a customer requesting delivery netting, to the Clearing
House by 11:00 a.m. on the last day of trading.

Clearing members also net delivery obligations within a given currency following the last day of
trading in such eligible currency product. Clearing members may net delivery obligations across all
accounts belonging to the same beneficial account owner.

Clearing members are prohibited from netting open positions across customer accounts while a
currency contract remains eligible for trading on the Exchange.

Clearing members shall be required to submit a Delivery Netting Request, which identifies the final
positions and net currency delivery obligations to the Clearing House by 11:00 a.m., on the last day of
trading, in accordance with the procedures outlined in the Clearing House Manual of Operations.

DELIVERY INFRACTIONSDATE

Dati £-a-forai sontract-shall-be- Joted i re th the ficatis th
¥ igh + Pt Pi

separate-contracts

743. Late or Inaccurate Deliver

1.__If a clearing member with a Delivery Commitment to pay funds pursuant to Rules 731, 732, 737 or
738 fails to deposit such funds in order to make timely payment on the date required in those rules,
the Clearing House may impose a fine upon the clearing member pursuant to the schedule of fines
intained by the Clearing House in addition to charging the current overdraft rate applicable to tl
Exchange's foreign currency delivery account with the CME CLS Bank or with the Exchange’s IMM
foreign currency delivery account or any other compensation due to the late or inaccurate delivery.

if by 9:30 a.m. Chicago time on the day following the date required in Rules 731, 732, 737 and 738,
s deposit is n de, the failure shall be deem delivery obligation failure of t Jearin:
ember and the matter shall be acted upon pursuant to Section B of this Rule.

Funds deposited pursuant to Rules 731, 732, 737 and 738 earlier than the required date of deposit
shall not eam interest for the early time period.

15


is entitled on the trades that were transferred. A transfer fee in the amount of twice the requiar
clearance fee may be assessed against the new clearing member

2. Exchange _staff_may, with the consent of the clearing member(s) and the customer(s), approve a
transfer of existing trades either (1) on the books of the same clearing member, or (2) from the books of
one clearing member to the books of another clearing member if the transfer is in connection with, or a:
a result of, a merger, asset purchase, consolidation or similar non-recurring transaction between two or
more entities where one or more entities become the successor in interest to one or more other
entities. *

3. Exchange staff may, with the consent of both clearing members, transfer existing trades on the books of
one clearing member to the books of another clearing member if, in staffs' opinion, the situation so
requires and such transfer in is to the best interests of the Exchange. In such cases, the customer may
be charged with only one commission.?

A.B. Existing trades may be transferred on the books of a clearing member provided:
1. An error has been made in the assignment of a trade or trades, or

2. The change merely constitutes a transfer from one account title to another account when beneficial
ownership in said accounts remains the same.

8 be-transferred-from-the-beoks-of Joari berto-the-beoks-of- ancther clear
2 gf ge
4-Fh ¥ ta-that. tat th t-of- the "
gremb ge-—tr > nsforfor gi
Le. fe b J Leach cles ber.
y ig is 7
2- Ach be froma-the-Cle: H Jn-that t-a-trancfor-f th t-of-th
gh 9 is 7
Jar-cle: fe be- ed. teach cl ber
9 y ig '¢
3A ber-ef-the-Clearing-H hi interest-in-existing-trad ether-ch ber!
- Clearing ig ariag
books —The-original clearing ber shall-net suffer any-lose-i jon-to-which-he-is-entitied
the -trades-that transforred—A transforfee-in-th tof twice the reguiar-cle: foe-may-b
d-againstthi Joari bo:
ig is

4.C. Existing trades may be transferred on the books of a clearing member provided Aa clerical error was made
by two or more clearing members in the clearing of a trade_and the clerical error is discovered and the
transfer is completed, within "T + 2.” (i.e. trade date plus the next two business days). The proper indicator
must be included in the transfer trade and both the trade to reverse the error and the replacement trade
must clear as transfers. In this event, and only in this event, the transfer may liquidate an open position on
the books of the clearing member(s). A transfer fee may be assessed for these transfers. *

D.c. Existing trades on the books of one clearing member may be transferred to the books of another
clearing member at the request of a customer. In such cases, the customer may be charged a commission
by both clearing members. ‘

isting-trad the-books-of lear be-# d-to-the-b -another-cleari
D—Existing g-FREMbE y ferres Oks he 9

* Adopted September 1998; Revised November 2000.
? Revised November 2000.

* Adopted June 1990. Revised October 1991.

* Revised March 1979.
* Adopted September 1998; Revised November 2000.
® Revised November 2000.


800.

801.

802.

GENERAL
CLEARING HOUSE '

For-the-great 7 eit bers,-to-facilitate-th pt-adjustment-ef contract obligations and
protectthe integrity of contracts, {The Exchange shall maintain and ‘operate a Clearing House _in order to protect
market participants and to maintain the integrity of the contracts traded on or processed through the Exchange.
Membership in the Clearing House shall be a right and privilege granted by the Board of Directors which may,
from time to time, establish such classes of membership in the Clearing House, together with the duties, rights
and privileges thereof, as it deems necessary. Whenever these rules create a right in favor of the Clearing
House, or impose a liability on the Clearing House, it shall be construed as the right or lablity of of the Exchange,
and shall be enforced by or r against the Exchange.

Unless otherwise stated, "clearing member” shall mean all clearing_members including, but not limited to, Class
Acclearing members, inactive Class A clearing members and Special CME clearing members.

MANAGEMENT *

The general direction of the Clearing House shall be under the jurisdiction of the Clearing House Risk
Committee, subject to the approval of the Board. The Chief Executive Officer with the approval of the Executive
GommitteeBoard shall appoint a Managing Director and President of the Clearing House, who shall be in-direct
charge-oftesponsible for the daily operation of the Clearing House and the implementation of the rules
applicable to the Clearing House.__The Managing Director and President of the Clearing House may also
delegate authority for certain aspects of the daily operation of the Clearing House to staff of the Clearing House.
Exchange staff_shall adopt, establish, publish and amend from time to time a Clearing House Manual of
Operations ("Manual"). This Manual shall contain, among other things, information and directions for preparing
trade data, completing prescribed memoranda and meeting other Clearing House requirements. The Manual
and amendments thereto shall constitute part of the rules of the Exchange. *

PROTECTION OF CLEARING HOUSE ‘
802.A. Default by Clearing Member and Other Participating Exchanges *

1. Default by Clearing Member *

If a clearing member fails promptly to discharge any obligation to the Clearing House, it shall be in default. If a

clearing member is in default its Security deposit (pursuant to Rule 816), its performance bonds on deposit with
the Clearing House, anda a the proceeds of the sale of any
membership and Class A and Class B Shares assigned toit for “clearing qualification, as well as any Membership
Interests and the associated Class A Shares of a Special CME Clearing Member and any other assets held by,
ef pledged to or otherwise available to the Clearing House, shall be applied by the Clearing House to discharge
the obligation._For purposes of this rule, each default by an individual clearing member will be considered a

separate default event.—The-clearing ber-shalltak stion_including-but-n

For the-purposes of this Rule, ¢}-the positions in the cross-margin account of a Participating Clearing Member or
its Cross-Margining Affiliate at a Cross-Margining Clearing Organization, and the performance bond thereon,
shall be considered assets of the Participating Clearing Member available to the Exchange to the extent provided
in the Cross-Margining Agreement between the Exchange and such Cross-Margining Clearing Organizatiot

a r A the Ci B xing d-Setth t
t-bety the-Exeh: d-such-C Banking-and-Setti t-Cleari izatie

Ag
clearing member in default shall immediately make up any deficiencies in its security deposit resulting Tomek
application such default prior to the close of business on the next banking day.

The clearing member shall take no action, including but not limited to, attempting to obtain a court order, that
would interfere with the ability of the Clearing House to so apply such assets and proceeds.

If the security deposit, performance bond and other assets of a clearing member available to the Exchange are

’ Revised June 2003.

? Revised November 2000_; September 2004.

* Revised June 1998; Revised November 2000.

* Revised September 1984; September 1989; June 1992.

* Revised November 2000; November 2001; June 2003.

° Revised September 1984; September 1989; June 1992; April 1993; January 1994; Apri! 2000; November 2000.



NON-CLS {LEGACY}-CURRENCY DELIVERIES

730. REGISTERED BANKS-AND-OTHER-FACILITIES
Fhe-Board-shall-establish such requi ts-and preconditions for registrati facility for th
dolivery-of i itd ys

DELIVERY THROUGH CLS BANK AND/OR THE CME CLS AGENT BANK
Consistent with procedures prescribed by the Clearing House, CMI rrency futures contré re

required to be physically delivered through the CLS (Continuous Linked Settlement) Bank System
where both the trading unit currency and the price increment (minimum fluctuation) currency are
supported by CLS delivery procedures. Notwithstanding the foregoing, a clearing firm shall not be
required to make physical delivery through the CLS Bank System for any currency futures contract
where the delivery exposure of the clearing firm is reasonably expected not to exceed $50 million for
any one currency futures contract. Exchange staff shall determine the CME CLS Agent Bank for

facilitating the deliver currencies through Bank. Clearing firms delivering CME curren res
contracts must use an approved CLS agent bank for deliveries through CLS Bank, which may be the

CME CLS Agent Bank or any other approved CLS agent bank. _If practicable, in those situations where
clearing firms delivering CME currency futures contracts use the CME CLS Agent Bank for delivery,
then physical delivery may occur by book entry at the CME CLS Agent Bank and not be settled through
the CLS Bank.

When buyers and sellers elect to do currency deliveries through the item, they agree to

by the deadlines and compensation conventions established by their CLS agent bank, the CME CLS
Agent Bank and the CLS Bank. The CME Clearing House's obligation to the delivery transaction ends
when payment is made through the CLS System.

731. FOREIGN CURRENCY BUYER'S DUTIES FOR CLS DELIVERIES
734.A,———Currency-Contracts-and Rolling Spot -Currency Contracts
A-clearing :
liquidation of hi than-44:-00. the last-day
oftrading,p t—In-addition, the ol
ber shall we p Laqualto-the-net- U-S-dolla
alue-of such cust positione-Val ith sri fuctuati

hall be-th



254A04.

25503.

255A04.

25603.

256A04.

CHAPTER 254A
Options on Swiss Franc Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES
(Refer to Rule 701. - ACTS OF. GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

ttherook ih ted-by-st
p ike,
diately ore tokane,

CHAPTER 255,
Australian Dollar Futures

EMERGENGIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) #Hthe

pange Pi tdotormines- that iete-andlor-physical-deli tod by
Exchange- Preside jor phy

rik tof “act of. God-he-chall-call-a-epecial ing-of the Board of

CHAPTER 255A
Options on Australian Dollar Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. — -ACTS- OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) #
thi

nit tod-by strike,-fi
¥ bai a ‘is Fite;

CHAPTER 256
Mexican Peso Futures

EMERGENGIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT ACTS. OF GOD AND. DOTHER EMERGENCIES} 4h

tof God hall-call

CHAPTER 256A,
Options on Mexican Peso Futures

‘ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

MERGENCIES

(Refer to Rule 701, — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

exer a in ¥ et thi ry tod-by strike-fire,
idont-act of g oF act of Ged, the-sellor or buy rornnedaiy tify the Exchang

Prosident_tf the Prosident-determines that emergeney action may-be yrhe-shall-calle- special
i i é for the presentation of ovid pecting th
geney-condition—_i¥ the Board determines that-an emergency existe, it shall ake such action. ac-it

30


816.

hall-b de-diractly-te-a- bank designated _by the-Clearing Hoe nd-in-thi fe d-at the-ti
Hf gi ig

ibed-by-the- Clearing He i-sueh- led i edit-balance-in- such. ber-after-th
7 ptedg
Hied-all-eredit-bak ted-thi -6uch-credit-will- be-released-by the-Clearing
Hi pi ted-to-the-member-entitied-t ive-th
SECURITY DEPOSIT *

Each clearing member shall make a deposit with the Exchange as security for its obligations to the Clearing
House. The minimum security deposit of a Class A clearing member, shall equal the greater of (a) an amount
specified by the Clearing House Risk Committee or (b) the clearing member's proportionate share of the
"Aggregate Security Deposit," which shall be an amount determined by the Clearing House Risk Committee.
Each clearing member's proportionate share of the Aggregate Security Deposit shall consist of (i) a specified
percentage of the Aggregate Security Deposit multiplied by the clearing member's proportionate share (including
the total risk performance bond requirement in respect of positions in its cross-margin accounts) of the average
aggregate risk performance bond requirement (including the risk performance bond requirement in respect of
positions in all cross-margin accounts) for the preceding three months; plus (ii) a specified percentage of the
Aggregate Security Deposit multiplied by the clearing member's proportionate share of the total number of
contracts executed on the Exchange and any applicable exchange or market during the preceding three months.
The percentages in (i) and (ii) above shall be determined and modified by the Clearing House Risk Committee as
appropriate. Some contracts may be weighted more heavily than others in order to reflect the greater risk
associated with those contracts. The average aggregate risk performance bond requirement, the total number of
contracts executed, and each clearing member's proportionate share of each will be calculated by the Clearing
House, and a report setting forth such information and the clearing member's required security deposit will be
given to the clearing member each quarter, or more frequently as Exchange staff shall determine. If such report
indicates that the clearing member's current security deposit with the Exchange is smaller than the amount
required, the clearing member shall increase its amount within five business days. If such report indicates that
the clearing member's current security deposit with the Exchange is larger than the amount required, the clearing
member may withdraw the excess amount.

A clearing member's security deposit may be in a form as set forth in the Manual.the-ferm-of cash,United-States
rT ‘Scccutsti ite i rT i

4 ME'staterest- Earning -F:
¥ agency "g a

" Hlectively_roferrod_t EN

this-Rule-816,such-as: yp deh iy #s"}- Such security
deposit forms and amounts shall be subject to the terms and conditions as approved by Exchange staff.

817. LIQUIDITY FACILITY

Assets deposited by a clearing member in satisfaction of security deposit and performance bond requirements
may also be used to directly secure the Exchange's obligations to its lenders under any liquidity facility entered
into by the Exchange for the purpose of providing liquidity to the Exchange. By delivering assets to the Exchange
in satisfaction of security deposit and performance bond requirements, each clearing member is hereby deemed:
(i) to agree that its Assets may directly secure the Exchange's obligations to the Exchange's liquidity lenders and
that its Assets may become subject to a lien in favor of the Exchange's liquidity lenders or otherwise guarantee
the Exchange's obligations and; (ii) to authorize the Exchange, and appoint the Exchange (such appointment
being coupled with an interest) as such clearing member's attorney-in-fact, to enter into agreements on its behalf
in connection with its Assets serving as security for the Exchange's obligations to the Exchange's liquidity
lenders: and (iii) acknowledge that the obligations of the Exchange to its liquidity lenders may be greater, and
extend for periods of time longer, than the obligations, if any, of such clearing member to the Exchange. The
Exchange, as each clearing member's attorney-in-fact, will have authority to enter into agreements on behalf of
each clearing member and in each clearing member's name for the purpose of causing the clearing member's
Assets to directly secure the Exchange's obligations to the Exchange's liquidity lenders. Any agreement entered
into by the Exchange on behalf of clearing members pursuant to this Rule 8176 shall bind each clearing member
and will contain provisions, including representations, warranties and covenants, required by lenders under any
liquidity facility. If there is a default under any such liquidity facility, the Assets of the clearing members pledged
to secure such liquidity facility may be foreclosed upon by the Exchange's liquidity lenders and applied against
the obligations of the Exchange under the related liquidity facility. The clearing members shall take no action,
including but not limited to attempting to obtain a court order, that would interfere with the ability of such liquidity
lenders to receive the benefit of their contractual remedies in connection with any such foreclosure or that would
controvert or assert the invalidity of any provision of these rules. Each clearing member agrees to sign any
document or agreement requested by the Exchange to further document the power of attorney set forth and
established by these rules.

8187. - 819. [RESERVED]?
848,____{RESERVED}’

* Revised March 1979; September 1981; October 1983; February 1988; March 1989; September 1989; March 1990; June 1992; April 1993; September 1993;
September 1997; November 1999; November 2000; April 2001; July 2001; October 2001, February 2002; June 2003; October 2003.

? Moved to Rule 561 June 2003.
* Moved to Rule 562 June 2003.



824.

ADDITIONAL PERFORMANCE BOND °

Whenever, in the opinion of the Clearing House Risk CommitteeBeard-of Directors, the President & Managing
Director, Clearing House or, in his or her absence, the Managing Director, Clearing House, -or-Exchange-staff,
unstable conditions relating to one or more cermmedities-products exist, it they may from time to time, call for
additional performance bond collateral from clearing members. Such additional performance bond calls may be
as much as or more than the original performance bond_collateral. The performance bond collateral thus called
for may be for one or more contract(s) from one or more clearing member(s) and on long positions, short
Positions or both.

In the event market conditions and price fluctuations at any time shall cause the Beard-of DireetersClearing

House Risk Committee or the President & Managing Director, Clearing House or, in his or her absence, the
Managing Director, Clearing House, to clude that additional performanc: collateral is required t
maintain_an_orderly_market or to preserve fiscal integrity the-Beard—of Directorsthe Clearing House Risk
Committee or; the President & Managing Director, Clearing House or the Managing Director, Clearing House
may call for additional performance bonds collateral to be deposited with the Clearing House during the next
banking hour after demand therefor, or at such times as may be specified. Such additional performance bonds
collateral may be called from the longs or the shorts or from both. *

When the i learing House Risk Committee or the President & Managing Director, Clearin:
House or, in his or her absence, the Managing Director, Clearing House, shall be of the opinion that any clearing
member is carrying commitments or incurring risk in its proprietary, customer and/or cross-margin accounts, that
are larger than_is Justified by the financial condition of that_clearing_member, men they the Board—of

FEC Kk. Presid Managit or, Cl se or, in his or her
absence, the Managing Director, Clearing House, may require additional performance t bonds collateral of such
clearing member which shall be deposited with the Clearing House during the next banking hour after demand
therefor, or at such time as may be specified, or-th ire-that a portion of the open positions of said
clearing member may be required to be transferred to the books of another clearing member. *

* Revised May 1982; February 1986; May 1987; June 1987; November 1987; March 1990; July 1990; June 1992; November 2000.

? Revised September 1989.

* Revised June 1992; November 2000.

* Revised June 1992.

° Revised February 1986; November 1987; March 1988; June 1992; Revised November 2000.


825. SECURHIES [RESERVED]'

hall the Exch
i ith_the-Si

826. WHFHDRAWAL_OF PERFORMANCE BONDS [RESERVED]

827. SECURITIES LENDING PROGRAM *

United States Treasury Bills, Treasury Notes, Treasury Bonds, Treasury Bond Principal Strips, Agency
Securities, and other financial instruments approved by Exchange staff, (collectively, "Securities") that are
deposited with the Clearing House by clearing members in satisfaction of Security Deposit requirements or as
performance bond for their own (i.e., "house") trades may be loaned out by the Exchange pursuant to the
Securities Lending Program. Clearing members depositing Securities with the Exchange in satisfaction of
security deposit requirements or as performance bond for house trades that are loaned out pursuant to the
Securities Lending Program are deemed to agree that the lending of Securities under arrangements having
safeguards consistent with generally accepted market practices will constitute reasonable care of the Securities
in the possession of the Exchange or its securities lending custodian.

828. [RESERVED] EMERGENCY PERFORMANCE BONDS

* Revised February 1986; May 1986, December 1986; June 1987; November 1987; March 1990; June 1992; November 1992; April 1993; November 1993;
January 1999; Apri! 1999; November 2000; April 2002; November 2003; July 2004.
? Revised June 1992,
? Adopted April 2001.
“ Revised June 1992; November 2000_; September 2004.
* Revised June 1992.



20608.

B. Failure by the seller to properly $100 per business day (assessed

transmit the required information against the seller and payable to
within one business day of railroad buyer).
acceptance. (Independent of A.)

C. Failure by the seller to mail the $100 per business day (assessed
prescribed documents to the against the seller and payable to
Clearing House within fourteen the Clearing House).

business days of receipt of buyer's
shipping instructions.

D. — Materially incomplete or erroneous $150 per car (assessed against the
delivery forms or material seller and payable to the Clearing
adjustment to delivery forms. House).

—. Failure by the seller to send the $100 per business day per portion
sample (in the size, container and (assessed against the seller and
package specified by the Clearing payable to the Clearing House).

House) to the testing service on the
business day after acceptance by
the railroad

{End-Ghapter 205)
INTERPRETATIONS & SPECIAL NOHCES RELATING TO CHAPRTERZO5,

[The remainder of the Interpretation Section is unchanged.]

CHAPTER 206
UREA Ammonium Nitrate (UAN) Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)Fthe
Exchange President determines-that gency exisis-or that physical-deliver-is-pi ted-by

End Chapter 206)

INTERPRETATIONS & SPECIAL NOTICES RELATING TO CHAPTER 206
PENALTIES AND FINES (amended December 2005)

Cause Penalty / Fine
A. 1. Materially incomplete or $200 per business day (assessed
erroneous shipping instructions or against the buyer and payable to
material adjustment to instructions. seller).

2. Failure by the seller to properly
follow shipping instructions within $200 per business day (assessed
seven business days after receipt against the seller and payable to

27


Rk to-that CME staftwill the-bestink thati ilable-at-the-ti §-determination-of-thi

settlement_prices—CME-staffwill_ack_alLmarket_participant entinth tive-trading-pits for-thei

4 PI SPE s-Pi

input-in-determining-sett! ices. h-markel_quotati ad_as_the_basis_for_determini

iloment-prices,then-th + t-bid-and-ask-rates-will-be-used—It-is- the intention-of
P r arkel Ht be .

ME-staff_whe ti tt these-less-tiquid-centract- menths-not-to-violat "

rderthat-i ived_f

DEFINITIONS
[Unless the context otherwise requires, the following words and expressions shall be defined
as follows and in conjunction with interpretations which may be found following each chapter.]
(No change to previous Definitions)

PARTICIPATING EXCHANGE

An_exchange or a clearing house that has entered into_a_business _relationship_with the
Exchange for clearing, order routing or any other business purpose.
(No further changes to Definitions)

872. DEFINITIONS
(No changes to A-B)

872.C. Participating Exchange[Reserved]. *
A hi that ty-to-the-Mutual-Offeet.
) party Z q
d-the-Si Exeh: Derivatives—Trading_Limited #ies_to_the-Mutual_Offeet
gap ig is Pi

(No changes to remainder of rule)

‘SMS/elm/5540.Revised Chapter 8 Final Marked.doc

* Revised June 1995.
? Revised May 2004.
* Revised November 2000.


713.

714.

715.

DELIVERY PROCEDURES

713.A. Notice of Intent to Deliver

Where delivery requires a Notice of Intent to Deliver, the seller shall comply with the requirements of the
relevant contract specifications chapter and such requirements as are prescribed by the Clearing
House.

713.B. Delivery Notice
In the event a Delivery Notice is not generated by the Clearing House, tThe seller shall, within the time

prescribed by the relevant contract specifications chapter or as may be prescribed by the Clearing
House, tender to the Clearing | House a a signed Delivery Notice ona form tobe iesuedprescribed by the
Clearing House 6 eri b h

commodity willbe trancterred and such other information as is required by the Clearing House. The
Delivery Notice shall contain the net invoicing price which shall be the last settlement price plis-oF
fninusand, if applicable, allowances and adjustments.

713.C. Supporting DecumentsP ossession of Product and Relevant Documents

The seller shall by such time as is prescribed in the relevant contract specification chapter on the day of
tender have possession of the product and all relevant document: .

713.D. Notice to Buyers

The Clearing House promptly shall pass the Delivery Notices in the order in which they are received to
the cl learing membersbuyers obligated by the oldest open long contracts,as-determined-atthe-close-of
; to take delivery of the same amounts of the same commodities for the
same delivery month. When a member of the Clearing House who has open purchases is suspended
from the Clearing House for default or insolvency, he shail be deemed out of line for delivery and tender
shall be made to the clearing memberbuyer obligated upon the next oldest long contract. Also, if tender
isbe made to a clearing memberbuyer who is thereafter suspended for default or insolvency before
delivery is accepted, then, subject to the provisions of Rule 718, the Delivery Notice shall be withdrawn
and another immediately served upon the clearing memberbuyer obligated upon the next oldest long
contract.
713.E. Payment

Unless otherwise specifically provided in the relevant contract Specification chapter, a buyer receiving a
Delivery Not e from the @ Clearing House shall

ified hier's-cheek-d Ghi bank ire-trancter “make payment in same day
funds, for the net i invoicing price. The buyer shall then be entitled to all required documents-+required-by
in proper form and with such endorsements as may be necessary to convey title and
possession and as are necessary to expedite shipment. The buyer shail also be entitled to all other
documents as are otherwise required by the provisions of the relevant contract specification chapter.

FAILURE TO DELIVER

A failure by a clearing member whe-has-netto tendered a Delivery Notice on or before the time specified
by the Clearing House9:00-a-m- on the last day-ia-a-delivery-menth on which such notice is permitted
shall be ia-defaultdeemed a delivery obligation failure, except that the President of the Clearing House
may, for good cause, extend the time to present sucha notice-unti!42:00-Neern. Unexcused failure to
make delivery shall be deemed a violation of Rule 432.Q., a major offense. In addition to the penalties
provided in Chapter 4 and in the relevant contract specification chapter, the Clearing House Risk
CommitteeBoard shall determine and assess the damages incurred by the buyer, taking into account
the settlement price and such other factors as it maydeems appropriatejust.

FAILURE TO REMIT FULL PAYMENTACCEPT DELIVERY

If a clearing member obli to receive livery failsis-anable-orrefuses to make full payment to the
seller, the Clearing House shail debit the account of said clearing member an amount sufficient to

complete the deliverybear-the-sellerstocs-in-the-firstinstanee. In any event, the clearing member failing
to make paymentascept- delivery shall be liable for a penalty of $-046-per-dezen-en-eggs;-$7.50 per
1,000 board feet on lumber; and $.015 per pound on all other commodities or as otherwise provided in

the respective contract specifi ication chapter, and any additional documented costs incurred by the
Sellerp or by the Clearing House.



707.

708.

709.

710.

711.

712.

ofthis Chapter and the respect icable,
For all in-plant pork bellyies gradingsinspections the clearing member shall notify the CME-Clearing
House of request for inspection by 10:00 a.m. Central time one day prior to the date the

is to be done and specify the time and place at which the fresh bellies will be

gradinginspestion i:
available for gradinginspection.
OFFICIAL EXCHANGE INSPECHON-CERTIFICATES

All agricultural commodities delivered through the Exchange must carry an Exchange Inspection
Certificate bearing the signature of the P1 lent of the ring Hou:

and showing the grade of the rete and the expiration date of the certificate.
On all commodities where the grades are based on United States Government standards, and on all
other commodities identified by the Exchange, the commodities shall be gradedinspected by
government gradersinspectors, and the government gradinginspection certificate shall be attached to
the Exchange Inspection-Certificate. The cest-ofthe-Exchange may charge for the Exchangelnspection
Certificate-shalt-be-$3.08.
If the official USDA gradinginspeetion certificate or other required gradinginspection certificate is,
through no fault of the seller, not received in time to make delivery, the President of the Clearing
HouseGhiet Executive-Officer, at his sole discretion, may issue the Official Exchange Inspection
Certificate on the basis of an electronically transmittedtelegraphed or telephoned report from the USDA.
graderinspector or other designated graderiaspector. Such report shall state that the delivery unit has
passed inspectiongrading, note any defects that may be the basis for allowances, and state that the
required USDA grading certificate-or-otherrequired inspection-certifieate has been prepared for
transmittal. In such case, the report shall be attached to the Exchange /nspection-Certificate pending
receipt of the USDA gradinginspectien certificate. The buyer shall in this event deliver paymenthis
eartified-or-cashiers-check by noon on the business day following the day of delivery to the Clearing
House which shall hold the paymenteheek until all the required documents are received-by the Clearing
House. If all the required documents are not received by the-Clearing-House-within
ofdeliverythe required time, itthe-seler maywill be deemed ina delivery obligation failuredefault by the
seller who must replace the delivery unit within the time prescribed by the Clearing House.

INSPECHONEXCHANGE CERTIFICATE INVALIDATED

The removal of the commodity from the place of location designated on the Exchange Jaspection
Certificate invalidates the certificate.

DUPLICATE CERTIFICATES

Copies of an Exchange taspection-Certificate may be obtained at the Clearing Houseeffice-ef the
Exchange by the member who ordered the original gradinginspestion or the owner of the goods if he is
member. There shall be stamped on each such copy the word "duplicate". There Exchangeshall-be-a
may charge ef $3.00-for each duplicate copy issued.

LIABILITY FOR NEGLIGENCE OF GRADERSINSPECTORS

The Exchange shall not be liable for any error or negligence of any graderinspecter, and all claims for
liability relating to gradingsinspections shall be waived by the application for the Exchange inspection-or
weighing-ortesting-cCertificate. The liability for any error in a certificate shall be that of the first party
who uses the certificate for delivery through the Exchange.

FINALITY OF USDA OR OTHER REQUIRED GRADINGINSPEGCHON CERTIFICATE

The Exchange assumes no responsibility and disclaims all liability on account of the grade, quantity or
specifications of any commodity delivered on the basis of a USDA or other required gradinginspectien
certificate.

RESERVEDIDELIVERY THROUGH CLEARING HOUSE

All-doliveri turing contracts shall be-made through the Clearing House—The Cleari
9 is

ha i oh i initiati 4 Jeti " istent-with

sha 6 ating pleting-deliveryas_are te

ification-chapt

od



2.__If the information contained in either the Buyer's CLS on Non-CLS Delivery Commitment or the
Seller's CLS or Non-Cl live mmitment is inaccurate so that delivery cannot
accomplished in a timely manner, fines or damages may be assessed as in Section B below.
743.B. Delivery Obligation Failure

A clearing member with a CLS or Non-CLS Delivery Commitment who fails to perform all acts required
by this chapter, or whose actions or inactions have been deemed a delivery obligation failure shall be
liable to the Clearing House for any loss sustain lich loss shall my 's follows:

4. The President of the Clearing House or his designee shall determine the change, if any, from the
final settlement price on the last day of trading to the spot rate on the first day on which the
transaction could be consummated on the spot market. The spot market rate for purposes of this
computation shall be the means of the spot rates between a group of Chicago, Illinois banks
selected for this purpose by Exchange staff at the earliest time it is determined the transaction can
be completed in the spot market.

2.__The related charges suffered by the Clearing House at any of its designated banks.

3.__A sum not to exceed 1% of the U.S. dollar value of the contract. Such amount shall be set by the
President of the Clearing House or his designee, acting in his sole discretion, and shall be bindins

upon both parties to the contract, except no such sum shall be assessed where a delivery
obligation failure is occasioned by the circumstances delineated in Rule 701.

Seth fi of tresults-whi 4 tioris-i blo—ta-the-CLS-System,thi

2H the jak ti tained in-cither the Buyer's CLS Delivery Ci itmentor-the-Sellers-CLS
Deli L itmentic-i 1o-s0-that-deli -be- Jished-in-a-timeh
¥ 46- Pt ea 7
fi damag bt .d-as-in- Section B-belo


7260. - 729.[RESERVED]


ident-action-of- t;-or-act-of Ged, he-shall calla special meeting of the
9

10105.

CHAPTER 101
Live Cattle Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

(Refer to Rule 701. —- ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

101A03.

101A33.

10208.

102A03.

EMERGENCIES)

CHAPTER 101A
Options on Live Cattle Futures

EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. —

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}

EMERGENCIES, ACTS OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 494A03701. - EMERGENCIES, ACTS OF GOD_-ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 102
Feeder Cattle Futures

EMERGENCIES, ACTS OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to to Rule 701. = ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES #4he

t-eractof Ged-he-shall cal 1g. of the Beard of

- > peci
Direct the Busi Senduct-C ittee-and- forthe tation of evid pect
gt lis epecting
the dition If the Board-or-Ci ittee-determines-that 21
Pgoncy-cor S gency r
acti ite y- under the ci " <dits-decicion-chall-be-binding-uper-all

CHAPTER 102A
Options on Feeder Cattle Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to Rule 701. - ACTS OF GOVERNMEN. ACTS OF GOD AND OTHER EMERGENCIES}

i "i tofeithor i
ig any Pp 8g es ted-by a strike, fire,

22


cme @

Chicago Mercantile Exchange

20 South Wacker Drive
Chicago, IL 60606-7499
www.cme.com

inca

March 22, 2006

Ms. Jean A. Webb

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21* Street, NW

Washington, DC 20581

RE: CME Rulebook Chapters Seven and Eight, the Definitions section and
conforming rule changes to other chapters
Submission No. 06-28

Dear Ms. Webb:

Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) hereby notifies the Commission that
the Exchange has approved revisions to CME Rulebook Chapter 7 ("Delivery Facilities and
Procedures”), Chapter 8 ("Clearing House and Performance Bond"), the Definitions Section and any
conforming changes to rules in other chapters. These changes were made to streamline and
consolidate or eliminate rules where appropriate and to improve and update rule language to increase
the clarity of the rules in CME's Rulebook.

Additions to Chapters 7 and 8, as well as the changes to other chapters, are underlined and
deletions are lined out. The main changes are summarized below:

Rule 701 (Acts of Government, Acts of God and Other Emergencies)
This rule was added to Chapter 7 to consolidate references to emergency-type situations
previously contained in rules 717, 736, and 746.

Rule 702 (Clearing Member Duties to the Clearing House)

This rule was added to Chapter 7 to consolidate references to clearing member duties to the
Clearing House in rules 738, 748, and 783. Additionally, Rule 702 clarifies that a clearing firm is
always responsible to the Clearing House for financial performance with respect to a delivery,
notwithstanding the fact that the Clearing House may process delivery instructions tendered by
a clearing firm that reference a bank account owned by a particular customer of the clearing
firm.

Rules 730-743, inclusive, which pertain to the currency delivery process
These rules have essentially been re-written to be more consistent with current product
offerings and operational procedure.

Additionally, a change made throughout Chapter 7 seeks to clarify that the failure of a clearing
firm to deliver is not necessarily a default. Rule 701 also clarifies that a clearing firm's failure to
deliver may also be deemed a default, per Rule 802.


358A03.

35904.

359A03.

36004.

36104,

CHAPTER 358A
Options on E-mini Standard and Poor's 500 Stock Price Index Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

gency 7
de der-the-ci + nd its decision-shall_be-bindi -partios-to-the
¥ g-upOR-all par

CHAPTER 359
E-mini NASDAQ 100 Index® Futures

EMERGENCIES, ACTS-OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) #
eryr-era 66-0F an dition-or require thers tod. trike, fire,

Lob eith: ‘by.

1 y +
hall immediately-notify the Exchange

CHAPTER 359A
Options on E-mini NASDAQ 100 Index® Futures

EMERGENCIES, ACTS OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) #
7 i tor dell iti dd by a strike

jroment-thereotic " H
-aBEIGH ¥ ais aH ‘i es 7

fi ident-actof-g -oractof Ged_the-selk buyer shall diately notify the Exchange

President—it the President determines-that ti be 2 he-shall-call: ial

CHAPTER 360
E-MiniTM NASDAQ® Biotechnology Index Futures

EMERGENCIES, ACTS-OF-GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) ¥

CHAPTER 361
E-mini Russell 2000 Futures

‘ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES

45


shall be assessed a fine on a per contract basis, the amount to be determined by Exchange staff. An’
deliveries memoranda or instructions received subsequent to 8:00 a.m. Chicago time on the day
following the last day of trading shall be deemed a delivery obligation failure and acted upon in

accordance with Rule 743.B. The buyer shall have made all provisions necessary to receive delivery
within the country of issuance.

732. FOREIGN CURRENCY SELLER'S DUTIES FOR CLS DELIVERIES

The-Selt Jearing-member-shall-b jble-for-delivering-the-forek y-on-the-deli

Per is st
date-to-a-bank-designated bythe Clearing-H:
is '¢

A clearing member representing a customer delivering foreign currency through the CLS System to
liquidate a net short position in that foreign currency shall, no later than 11:00 a.m. Chicago time on the
last day of trading, present to the Clearing House a Seller's CLS Delivery Commitment, which identifies

the CLS agent bank used by the seller and the number of contracts and the component delivery values.
Also, the clearing memb: tomer shall arrai their CLS agent bank to input the relevant

instructions into the CLS System no later than 1:00 p.m. Chicago time on the business day preceding
the delivery day. The CME Clearing House will input the Exchange's relevant contra-side banking
ins ions into the CLS. m._(The CME Clearing House is the buyer to every seller and the seller
to every buyer in the currency delivery process through the CME CLS Agent Bank.
A match of delivery information must occur in order for a delivery transaction to be finalized._In the
event that clearing member/customer instructions are not entered into the CLS System by 1:00 p.m.
Chi time on the business day preceding the delivery day, then the unmatched transaction not
leted a: i delive ite through the CLS System. In such event, delive:
instructions may be resubmitted to the CLS agent bank for delivery on the subsequent business day.
Also, in such event, the Clearing House may assess fines for the delayed delivery. Further, if the
delivery instructions remain unmatched by 1:00 p.m. Chicago time on the business day preceding the
delivery day, the Clearing House may require the seller of the foreign currency to comply with other

procedures as outlined in the Clearing House Manual.

If the Seller's CLS Delivery Commitment is received later than 11:00 a.m. Chicago time on the last day
of trading, but not later than 8:00 a.m. Chicago time on the following day, the seller's clearing member

shall be assessed a fine on a per contract basis, the amount to be determined by Exchange staff. Any
deliveries memoranda or instructions received si ent to 8:00 a.m. Chicago time on the da’
following the last day of trading shall be deemed a delivery obligation failure and acted upon in

a ince with Rule 743.B.


the-day following the Jast day of trading shall-be-d d-a-defauit and-acted.
rc: ith Rul The-bi hal-hi de-all isk t ive-deli f
‘37.8. yer I

£ ident- bank ats- inthe te-in-which-he-desired-to- pt-del

A clearing member that intends to accept delivery of a foreign currency through the CLS System to
liquidate a net long position in that foreign currency shall, no later than 11:00 a.m. Chicago time on the
last day of trading, present to the Clearing House a Buyer's CLS Delivery Commitment, which identifies
the CLS agent bank used by the buyer and the number of contracts and the component delivery values.
Also, the clearing member/customer shall arrange with their CLS agent bank to input the relevant
instructions into the CLS System no later than 1:00 p.m. Chicago time on the business day preceding
the delivery day. The CME Clearing House will input the Exchange's relevant contra-side instructions
into the CLS tem. (The CME Clearing House is the seller very bi and the buyer to ever
seller in the currency delivery process through the CME CLS Agent Bank.
A match of delivery information must occur in order for a delivery transaction to be finalized._In the
event that clearing member/customer instructions are not entered into the CLS System by 1:00 p.m.

hi time on the busi day pre ling the delivery day, then the unmatched transaction may not
be completed and paid on the delivery date through the CLS System. In such event, delivery
instructions may be resubmitted to the CLS agent bank for delivery on the subsequent business day.
Also in such event, the Clearing House may assess fines for the delayed delivery. Further, if the
delivery instructions remain unmatched by 1:00 p.m. Chicago time on the business day preceding the
delivery day, the Clearing House may require the buyer of the foreign currency to post an Order to Pa
to the appropriate Agent Bank by no later than the close of business that day, in addition to complying
with other proc res as outlined in learin use Manual.
ifthe Buyer's CLS Delivery Commitment is received later than 11:00 a.m. Chicago time on the last day

of trading, but not later than 8:00 a.m. Chicago time on the following day, the buyer's clearing member



CHAPTER 504
91-day Mexican Treasury Bill (CETES) Futures

50404. EMERGENCIES,-ACTS-OF-GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES }Fthe
Exchange President determines that emergency action may b ary-he-shall-eall-a-special

ting-of the Board-of Direct J forth ation of
‘¢ ig Lis

CHAPTER 505
28-day Mexican Interbank Equilibrium Interest Rate (TIE) Futures

50504. EMERGENCIES, ACTS OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)Fthe
Exehange-R: bi "

ident dotermines-that i he-shall-calt °
Yr pe

gency y

CHAPTER 710
Physically Delivered Single Security Futures

71005. EMERGENCIES, ACTS-OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
dol ai iti 7 t-o-either-i led-by-a-strike fi

"

58


353A03.

353A33.

35404.

354A03.

354A33.

{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}

deli n Aditi Lofeitherit ted by-a strike fi
FY P PF ‘i PI Fire;
ident_action-of ent-or-act of Ged_the sell bi halt diately-notify the Exchange
7 9 g ye Y
Prasident_if the President determines-that ti be. “he shall-call jal

CHAPTER 353A
Options on Standard and Poor's MideCap 400 Stock Price IndexTM Futures

CTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES.
(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

tof-eith ted-by-a-strike—fi

Jithe Beard-det that

gency 7 AROS gency 7

deems-necessanyunder-the-ci " ad-its-deci hall-be-bindi I-parties-to-the
¥ gut Pat

: ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 353403701. - EMERGENGIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 354
Russell 2000 Stock Price IndexTM Futures

EMERGENCIES, ACTS-OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 201. = ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER | EMERGENCIES

Lobeith t
pt ¥P ‘i 1 by Fe;

CHAPTER 354A
Options on Russell 2000 Stock Price IndexTM Futures

EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES HF
i ji tof either triko-fi

t ai
4) YF FequiFel PH ry fire;

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 354403701. - EMERGENGIES, ACTS OF-GOD_ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

41


Refer to Rule 701 — ACTS OF GOVERNMENT, ACTS GOD AND. OTHER EME RGENCIE:

CHAPTER 252A
Options on Canadian Dollar Futures

252A04. EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to Rule 701. — ACT: OF GOVERNMENT, AGTS F GOD AND OTHER EMERGENCIES)

exercice-assignmont,er-delivery-orany-precond 7 thereof i tod-by-sh
exercise de ms ? 1od-by-strike,-firo;
i tof ‘i lor orb hall immediately notify the Exch:
accident, y iy notify the-& E)
President—if the Rrasident detormines-that ti b he shall call ial
7 gency iy 5 P
¥-the Board of Direct 4 ge-for- the presentation of evid ting th

specting:

CHAPTER 253
Japanese Yen Futures

25303. EMERGENCIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES )FHth

President determi
Exehang i-dot gency-exists-and/or physical delivery is prevented by

CHAPTER 253A
Options on Japanese Yen Futures

253A04. EMERGENCIES, ACTS-OF- GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. rn OF GOVERNMENT, ACTS OF GOD AND. OTHER EMERGENCIES}
procenditi

th ted-by-strike-fi
¥ ‘ Pi fire;
ident, gous t tof Ged_th Heror buyer shi
President—If the President determines that ” i be -he-shall-eall cial
ting-of the Board of Diroctors-and go-forth i"
dition }¥-the-Beard-determines-that
goney 9
4 der the-ci vy dite-di
oecary
eontract.

Swiss Franc Futures

25403. EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD_AND OTHER EMERGENCIES
‘Refer to Bule. 701. ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES }¥4he

29


Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) #

7 + obeither i tod by-a-st
di pe ¥-preconditio P ya-ctrike-fire,
id th tor actof Ged,_the soller-or 5: hall

at, ert ry immediately notify the Exchange
i b he-shall-call- jal

¥ ¥ Yr p

tation of evid ting th
- ists,-it- shall take-such-acti it
d der-the-ci rf its decision shall be bindi HHies-to-th
¥ -Gi g-upOR all p

CHAPTER 361A
Options on E-Mini Russell 2000 Futures

361A03. EMERGENCIES,ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
exercise-of-assi

tof-either-i ted-by-a strike
igi AYP = bis 24 a
ident-act-of toractefGed_the-selk buyer shall diately ye aes

President-If the President determines-that acti be. he-shalt ial
- noc that a Yr Heep

CHAPTER 362
E-mini Standard and Poor's MideCap 400 Stock Price Index Futures

36204. EMERGENCIES, ACTS-OF- GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to Rule 701. ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)
dels iti 7 ik
¥

" di t-of-eithor—it ted_b»
‘is palit Pt y dined

a
ident_-action-of tof act of God_-the-sell be ali diately notify the Exchange:
that i

CHAPTER 364
Long-Short Technology TRAKRS Index Futures

36405. EMERGENCIES, ACTS OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

de dor-the-ci " <His-decision-shall-be-binding-upon all parties tothe

CHAPTER 365
S&P 500/ Technology SPCTRTM Futures

36504. EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER. EMERGENGIES Nt the
Jculation-of the-Final Settlement Pree i nied by 2 strike, fi ident-acti

46


25103.

251A04.

25203.

of instructions.

B. Failure by the seller to properly
transmit the required information
within one business day of railroad
acceptance. (Independent of A.)

C. Failure by the seller to send the
prescribed documents to the
Clearing House within fourteen
business days of receipt of buyer's
shipping instructions.

D. Materially incomplete or erroneous
delivery forms or material
adjustment to delivery forms.

E. Failure by the seller to send the
sample (in the size, container and
package specified by the Clearing
House) to the testing service on the
business day after acceptance by
the railroad

{End Chapter 206)

buyer).

$100 per business day (assessed
against the seller and payable to
buyer).

$100 per business day (assessed
against the seller and payable to
the Clearing House).

$150 per car (assessed against the
seller and payable to the Clearing
House).

$100 per business day per sample
(assessed against the seller and
payable to the Clearing House).

INFERPRETAHONS-& SPECIAL NOTICES RELATING TO CHARTER 206

[The remainder of the Interpretation Section is unchanged.)

CHAPTER 251
British Pound Sterling Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}

CHAPTER 251A
Options on British Pound Sterling Futures

EMERGENCIES, ACTS-OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
ise-asek or delivery precondition gui -thereokic prevented by strike_fire,
toract-efGed,the-sell bi alli

ident_act-of diately-notify the Exch:
9 ry iy notify ig
that i
ting-of the B Direct d f
g ard +6- ange a
dition the Beard. ines-that itehall-tak acti it
emergency } deter ¥ r

CHAPTER 252
Canadian Dollar Futures

EMERGENCIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

28


814,

815.

SEFFLEMENT-TO-SETFLEMENT PRICE SETTLEMENT VARIATIONDAILY ’

When a clearing member is long or short any amount of any futures contract at the end of the trading day, as
indicated by its clearing memoranda, settlement shall be made with the Clearing House to the settlement price
for that day, and such member shall be liable to pay to, or entitled to collect from, the Clearing House any loss or
profit, as the case may be, represented by the difference between the price at which the commodity was bought
or sold and the settlement price of the commodity at the end of the trading day. After making such settlement
with the Clearing House, such member shall be deemed long or short (or long and short) such commodity, as the
case may be, at the settlement price of the trading day. Notwithstanding the foregoing, the Clearing House shall
not be required to pay any profit to a Participating Clearing Member in the event that such member or its Cross-
Margining Affiliate fails to make any required settlement for that trading day with a Cross-Margining Clearing
Organization.

if the market conditions or price fluctuations are such that the Clearing House deems it necessary, it may call
upon the clearing members which in its opinion are affected to deposit with the Clearing House by such time as
specified by the Clearing House the amount of funds that it estimates will be needed to meet such settlements as
may be necessary. The Clearing House may pay out funds to those clearing members that in the opinion of the
Clearing House will have credit balances as a result of those same market conditions or price fluctuations,
except that in no instance may the Clearing House pay out funds to a clearing member, r than at the requiar
settlement, in_ excess of the total original performance bond deposits it holds for such clearing member. All
deposits and payments made under this Rule shall be subject to the procedures prescribed by the Clearing
House and set forth in the Manual,

Settlement variation, as figured to the market at such times as the Clearing House shall determine, must be paid
in cash or any other form of collateral approved by the Clearing House Risk Committee.

DEBH-AND-CREDIT BALANCES [RESERVED]

* Revised May 1992; November 1995.

? Revised November 1995.

* Revised November 1995.

* Revised November 1995.

5 Adopted September 1997. Revised September 1999; May 2000; July 2000; June 2003.

® Adopted April 2002. Revised June 2003.
” Revised October 1989.
° Revised January 1983; November 1985; February 1988; October 2001.


716.

717.

718,

719.

Failure to remit full paymentascept- delivery shall be deemed a violation of Rule 432.Q., alse-constitute-a
major offense.

DUTIES OF CLEARING MEMBERS

Prior to the last day of trading, each clearing member shall require evidence for each account on his
books that all futures positions which will not be offset on the last day of trading will be completed by
delivery. If a customer is unwilling or unable to provide such evidence, the clearing member must
liquidate the position on or before the last day of trading.

Fhe procedural i t6-detailedin Rule-402.C--shall-be followedin-the impl tation-of thi

rule [RESERVED

CUSTOMER SUBSTITUTION IN THE EVENT OF CLEARING MEMBER BANKRUPTCY

In the event that an “order for relief as defined at CFTC Reg. 190.01(dd) has been entered in respect
to a clearing member whose customer holds a futures contract or options contract that may only be
liquidated by physical delivery and, as to such contract:

(i) trading has ceased on the date of the entry of the “order for relief,”

(ii) notice of delivery has been tendered on or before the date of the entry of the "order for relief,” or
(iii) trading ceases before the trustee can liquidate the contract;

then, notwithstanding Rule 713.D., the Clearing House shall allow the customer (if his identify can be
readily ascertained and verified) to be directly substituted for the debtor clearing member to the extent
necessary to complete delivery. None of the requirements for delivery, including notices, instructions,
payment, etc., shall be waived hereby. Moreover, substitution shall in no way relieve the debtor
clearing member of its obligations to the Clearing House and the opposite clearing member in regard to
any claims arising out of that delivery.

TRANSFER OF CASH FOR FUTURES AFTER TERMINATION OF CONTRACT

Subject to approval by the Clearing Housethe-Chief-£; itive Offi PPT 4, a transfer of cash
merchandise for futures may be permitted during the contract month after termination of the contract.
This rule shall not apply to options contracts.

Such transfer of cash for futures shall be cleared through the Clearing House in accordance with normal
procedures and shall be made at the prices as are mutually agreed upon by the two parties to the
transaction. Such transactions shall not establish new futures positions. Such transfers of cash for
futures shall be clearly designated by proper symbol as transfer transactions and shall be recorded by
the Exchange and the clearing member to the transactions, and proper notice given to the membership.
Each party to such transactions must satisfy the Chief Exeeutive-OfficerClearing House that the
transaction is bona fide and must file with the Clearing House, all memoranda necessary to establish
the nature of the transaction, the kind and quantity of the cash commodity, the -kind, quantity and price
of the commodity futures, the names of all clearing members to the transaction and such other
information as the Clearing House er-Ghiet Exeeutive-Officer-may require.



trading [RESERVED]

784, FAILURE TO PERFORM

4£aA failure by a clearing member with a delivery commitment faile-to perform all acts required herein
and all acts per the provisions of the OCC and DTCC,-then-that- clearing- member shall be deemed a
delivery obligation failurein-defaut, which may be punishable as a major offense. The Board shall
determine and assess losses sustained, taking into account the settlement price, interest earings
foregone, and such other factors as it deems appropriate. The Board may also assess such penalties
as deemed appropriate in addition to damages. Further, such clearing member shall be subject to such
penalties and remedies as may be prescribed by the provisions of the OCC and DTCC.

(End Chapter 7)

PrIrrrrlirrerriirr rit etter ee erry

290. BANK ACCOUNTS

The bank accounts of the Exchange shall be maintained and apportioned among at least three Chicago
banks and shall consist of the following:

[Sections a. - d. are unchanged.]}

e. Delivery Account, in which there shall be deposited all funds payable to the Clearing House
pursuant to Rule 7347 and from which funds may be withdrawn in accordance with Chapter 7.

[The remainder of the rule is unchanged.}

CHAPTER 51
Butter Futures

5108. {RESERVEDJACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES)
CHAPTER 51A
Options on Butter Futures
51A03. EMERGENCIES, ACTS-OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701.—- ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)F

19


453A03.

45406.

45706.

45806.

CHAPTER 453A
Options on One-month LIBOR Futures

EMERGENCIES, ACTS-OF-GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. —

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

CHAPTER 454
Overnight Federal Funds Effective Rate Futures

EMERGENGIES, ACTS OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES —
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES} the

Exeh: President determines-that ti he-shall-calt

CHAPTER 457
Two-year Swap Futures

EMERGENCIES, ACTS OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer. to. Rule 701. = ACTS. OF. GOVERNMENT, ACTS. OF GOD AND OTHER, EMERGENCIES

CHAPTER 458
Five-year Swap Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES

eer to Rule. 204. -— ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)
pial

econditi Loteitheri ted-by-a-strike-fi
46-prer bye a

56


Trade records will be matched, to the extent the opposite trade information is consistent, through the tiered
matching process.

Resubmitted trade data will roce: by the Clearing House. Trades with unmatched trade information
remaining after the tiered matching process will be rejected and out-trade notices will be issued to clearing
members. *

Trades _unreconciled after the final reconciliation must be submitted on the following business day as "as-of-

trades."*

809.HC. Trade Register_and Clearing Reports

From the trade data cleared during each day's reconciliation, the Clearing House will produce a trade register for
each clearing member-whichmember which will itemize by commodity and contract: the opening long and short
position, the contracts bought and/or sold during the day, the prices at which executed, and the settlement
amounts. ”

The Clearing House will also produce a recap ledger for each clearing member that will itemize various position
and_financial_ information that includes but is not limited to, commodity positions, settlement amounts and
performance bond information.

809.1E. Reconciliation of Out-Trades *
It shall be the primary responsibility of the clearing member to see that all trades are cleared prior to the opening
b lable

of the following day's

market. In this-regard,-each clearing th dequate reprasentati

Each member, if applicable, and clearing member firm shall designate a person or persons who will be available
and responsible for reconciling the member or clearing member firm's out-trades. The person or persons shall
be qualified to resolve out-trades as the member or clearing member firm's designated out-trade representative.
Failure to have a qualified representative available, with all materials necessary to reconcile out-trades, at the
time specified above shall constitute negligence in the determination of responsibility for any out-trades. If one
firm cannot locate another firm's broker or representative for clearing purposes during these time periods, it shall
report such fact to the Managing Director and President of the Clearing House. If the Managing Director and
President of the Clearing House or his designee cannot find the broker or representative of the firm, fines will be
assessed in the amounts of $1,000, $2,000 or $3,000 sequentially, for violations occurring within a 30-day
Period. ”

A-cleari bs int tate ff ther-firra-to-act-on-its-bohalf

* Revised June 1998.

? Revised June 1998.

* Revised June 1998.

* Revised June 1998.

* Revised June 1998.

® Revised June 1998.

7 Revised June 1998.

° Revised November 2000; June 2002.
* Revised January 1980; April 1987; September 1993; November 2000.
© Revised June 1996; November 2000.
" Revised May 1990; November 2000.


303A04,

30403.

304A04.

30503.

30603.

CHAPTER 303A
Options on Euro/ Japanese Yen (Euro/ JY) Cross Rate Futures

EMERGENCIES,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

dit tofoith ted- by a-sirike-fi

, YP a .
ident-actotg t-or-act-of Ged, the-celleror buyer shal immediately notify the- Exchange

President—if-the President determines-that. tis be -he-shall-calla ial

CHAPTER 304
Euro/ Swiss Franc (Euro/ SF) Cross Rate Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) the

Exch President determines-that ts-and/or physical-deli P ted-b»
ge gency yep y

CHAPTER 304A
Options on Euro/ Swiss Franc (Euro/ SF) Cross Rate Futures

EMERGENCIES,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)
i i " iti i tod-by-a-strike-fire,

tof eithor-i

? a :
idont,-act-of oF act-of- God, the -calk -challimmediately-notify-the-Exchange
go ;

CHAPTER 305
British Pound/ Japanese Yen (BP/ JY) Cross Rate Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES} the

CHAPTER 306
British Pound/ Swiss Franc (BP/ SF) Cross Rate Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701, ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES }#the.
Exeh: R, jeal-deliveryis- prevented b:

ident determines that er ists-and/or- ph:
g phy

¥

36





30703.

30803.

30903.

31003.

31103.

31203.

CHAPTER 307
Swiss Franc/ Japanese Yen (SF/ JY) Cross Rate Futures
EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701.~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER, EMERGENCIES}Hhe
ident determines that ge ts-and/or physical-delivery
ident-act-of t_-or-act-of Ged-he-shall-call jal meeting-of the Board of

der-th

CHAPTER 308
Australian Dollar/ Canadian Dollar (AD/ CD) Cross Rate Futures

EMERGENGIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Befer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES} 4h
Presid

t-dotermines-that ts-andlor physical-deli ted-by

¥
Mi jal- meeting of the Board of
6 Pi is
‘ i i ing-the-emerger dition HF-th
Ps ¥ y
Board-determines-that iste it shalltak hati it deome-necessaryunderthe
i ‘ d-its- decision shall be bind: all parties-to-th tract
ig UP P
CHAPTER 309

Australian Dollar/ Japanese Yen (AD/ JY) Cross Rate Futures

EMERGENGIES,-ACTS OF GOVERNMENT, ACTS OF GOD_AND OTHER EMERGENCIES
(Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES} th

ident determines-that -gency-exists and/or physical delivery-ic-pi ted- by

4 <Lits-decision-shall-be-bindi parties to-the-contract.
gu Pi :

CHAPTER 310
Australian Dollar/ New Zealand Dollar (AD/ NE) Cross Rate Futures

EMERGENCIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
Refer to Rule 701. ~- ACTS OF GOVERNMENT, ACTS. OF GOD f AND. D OTHER EMERGENCIES Hho

gency a
n and.its-decision-shall-be-bindi H-parties-to-the tract:

le Pi

CHAPTER 311
Canadian Dollar/ Japanese Yen (CD/ JY) Cross Rate Futures

EMERGENCIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS © OF GOD AND OTHER. EMERGENCIES }#H4he
Exchange President determines that gency d/or physieal-deli tod-by

CHAPTER 312
Euro/ Australian Dollar (Euro/ AD) Cross Rate Futures

EMERGENGIES,-ACTS OF GOVERNMENT, ACTS OF GOD_AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) the

37


41004,

41104.

411A03.

41204.

412A03.

(Refer to Rule 701.— ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES )F+H

dof Di te

th Be

doom “Jor tho-cireumet d-its-decision-shall-be-binding I parties tothe

Pe

CHAPTER 410
Consumer Price Index Futures
EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 70

= ACTS OF F GOVERNMENT, ACTS OF. GOD AND OTHER EMERGENCIES Eth

t-actef. ter act-of Ged-he-chall-call ial
ge

+ Pe g
and arrange-for- the presentatk of evid pecting th gency condition _IHhe Board
determines-that-ai iets-it shall take such acti itdo derthe
‘ ernergency 7-it-ehal F Y
"i dite-d hall-be-binding-upen all-parties-te-the-contract-
CHAPTER 411

CME Pacific Rim Index Futures

EMERGENCIES, ACTS-OF- GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Bule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) Hh
a, =

tdete

‘acti
gency ¥-be-

croctenecrike Board ool n d- forth tation of evidi cting-the

CHAPTER 411A
Options on CME Pacific Rim Index Futures

EMERGENCIES, ACTS-OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. —

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

ting-of the Beard of Directors-and

CHAPTER 412
CME Pacific Rim Seasonal Index Futures

EMERGENCIES, ACTS-OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

{Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}#4ho
that.emergency-action-may yrho-chail-calta-sp

ting of the Beard-of Direct d-arrange-for-the-presen 8 ing-the

hd condition if the Beard-det

CHAPTER 412A
Options on CME Pacific Rim Seasonal Index Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES.

52


B. Failure by the seller to properly $100 per business day (assessed
transmit the required information against the seller and payable to
within one business day of railroad buyer).
acceptance. (Independent of A.)

C. Failure by the seller to send the $100 per business day (assessed
prescribed documents to the against the seller and payable to
Clearing House within fourteen the Clearing House).
business days of receipt of buyer's
shipping instructions.

D. Materially incomplete or erroneous $150 per car (assessed against the
delivery forms or material seller and payable to the Clearing
adjustment to delivery forms. House).

E. Failure by the seller to send the $100 per business day per sample
sample (in the size, container and (assessed against the seller and
package specified by the Clearing payable to the Clearing House).
House) to the testing service on the
business day after acceptance by
the railroad

(End-Chapter 202)
CHAPTER 204
UREA Futures
20408. EMERGENCIES, ACTS OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

seven business days after receipt
of instructions.

against the seller and payable to
buyer).

Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}#Hthe

(End Chapter 204)

INTERPRETATIONS & SPECIAL NOTICES RELATING TO CHAPTER 204

PENALTIES AND FINES (amended December 2005)

A.

Cause

1, Materially incomplete or
erroneous shipping instructions or

material adjustment to instructions.

2. Failure by the seller to properly
follow shipping instructions within
seven business days after receipt
of instructions.

Penalty / Fine

$200 per business day (assessed
against the buyer and payable to
seller).

$200 per business day (assessed
against the seller and payable to
buyer).

25


45206.

452A03.

452B06.

45306.

CHAPTER 452
Three-month Eurodollar Futures

5 ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF SOD AND OTHER EMERGENCIES )¥

di ¥- plank va a ALot-sitheris-prevented bya ctrike_fire,
ident-action-of tor-act vooa tn 1lor-oF buyer shalLimmodiately notify the Exchange

Rresident—if the Rresident- determines-that- action. b hall-calla special

CHAPTER 452A
Options on Three-month Eurodollar Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}

halliramediateh
iY

doom dor-the-ci " d-its- decision chall-be-bindi parties to-th
&

¥ ml

CHAPTER 452B
Three-month Eurodollar Forward Rate Agreement Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(eter to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
-of either is prevented by a strike, fi

If the Beard-dete:

CHAPTER 453
One-month LIBOR Futures

EMERGENCIES,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENGIES
(Refer to Rule 701. ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) the

ident determines that-the-calculation-of- the-Final-Setth +P ted-by-strik
lis y 5
fi ident_act-of at + of Ged-he-shall-calt jal ting-of the Board of Directors
r ge" r g special 'g-
and arrang forth tation of evid cting-th dition—tthe-Board
A Pt is FgORSy -
ormines-that ists it shalliaké acti ied \derthe
gency a ¥
8 and-its-decision shall-be-binding-upon-all parties to-th tract

55


810. FALSE ENTRIES ON CLEARING MEMORANDA '

No member shall place any false or inaccurate entries on any clearing memoranda, including, with respect to a
Participating Clearing Member, the clearing memoranda of a Cross-Margining Clearing Organization, or
knowingly pay or receive any money therein not representing bona fide transactions or the actual differences due
thereon.

811. POSITION CHANGE DATA?

Position change data must be submitted to the Clearing House each trading day not later than the time specified
by the Clearing House. Position change data will be in such form and contain such information as prescribed by
the Clearing House. When requested, the identification of accounts will be made available to the Audit
Department.

812. RECAP-LEDGER- [RESERVED]

813. SETTLEMENT PRICE ‘

The settlement price shall be a price consistent with the minimum fluctuations of a commodity. Settlement prices

shall be determined each business day for each commodity pursuant to the procedures set forth below. The

procedure used to determine the settlement price of a commodity will depend on the product group, level of
closing range activity and liquidity, and the bid — ask width and size, if settled to Globex.

1._The time and sales procedure is used when a trade occurs in the closing range (either the last 30 or 60
seconds). The first trade and every subsequent quote (trade, bid, offer) in the closing range are included in
the calculation. The midpoint of the high and low quotes is the settlement price. If a midpoint cannot be
determined, the settlement price is the price closer to the prior day's settlement price.

2. The last quote procedure is used when no trades occur in the closing range (either the last 30 or 60
seconds). The last valid quote of the day (trade, higher bid or lower offer) is the settlement price. _In the
event there are no valid quotes during the day, the settlement price will be the prior day's settlement price.

3.__The bid-ask midpoint procedure is used for transactions that occur on Globex. The midpoint of the low bid
and the high offer of the Globex closing range (either the last 30 or 60 seconds) is the settlement price. Ifa
midpoint cannot be determined, the settlement price is the price closer to the prior day's settlement price.

4. When relevant spread trading information is available, it may also be used to assist in the calculation of
settlement prices. (For example, Front and Red Eurodollars may be adjusted for calendar or fly spreads.)

5. __In liquid commodities, where there is no relevant market activity, any applicable market information, such as
spot or cash markets, may be used to determine the settlement price.

6. Notwithstanding any of the foregoing, settlement prices for the E-Mini Standard and Poor's 500 Stock Price
Index Futures, the E-Mini Nasdaq 100 Index Futures, and the E-Mini Currency Futures contract months
shall equal the settlement prices for the corresponding contract months of the Standard and Poor's 500
Stock Price Index Futures, the Nasdaq 100 Index Futures, and the Currency Futures, respectively. *

7.__ Options settlements are derived utilizing key market information, such as; outright bids and offers, implied
volatility, the underlying futures movement, and relevant spread orders.

8.__For products cleared by the Clearing House on behalf of another exchange, market or Marketplace other
than the Exchange, the settlement price shall be determined according to the rules of such entity.

9. Notwithstanding the above, in the case of inaccuracy or unavailability of a_settlement price from the
Exchange, another exchange, market or Marketplace, or if such settlement price would create risk
management concerns for the Clearing House, the Clearing House reserves the right to calculate settlement

variation using an alternate price determined by the Clearing House *

The-settl t-price-shall-be istont-with-_the-mini fluctuati Eth its th t

* Revised September 1989.
? Revised February 1998; June 1998.

> Revised March 1979; September 1981; October 1983; February 1988; March 1989; September 1989; June 1992; April 1993; September 1993; June 1998;
‘October 2001

“ Revised January 1981; March 1981; April 1982; July 1982; September 1989; September 1992; November 1995; November 2000; November 2001.
* Adopted September 1997. Revised September 1999; May 2000; July 2000; June 2003.
© Adopted April 2002. Revised June 2003.


GENERAL

700. SCOPE OF CHAPTER

Deliveries and delivery facilities shall be governed by this chapter and, where applicable, the chapter
which includes the contract specifications for the commodities being delivered and such other
requirements as the Exchange may prescribed.

701. ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

Ifa determination is made by the Board or the Business Conduct Committee that delivery or final
settlement of any contract cannot be completed as a result of any emergency, it shall take such action
as itdeems necessary under the circumstances and its decision shall be binding upon all parties to the
contract. Notwithstanding the above, in the event that the Board or the Business Conduct Committee
cal be convened on a timely basis, the Chief Executive Officer or the President and Chief Operati
Officer may take any action deemed necessary, and such action shall be binding upon all parties to the
contract.
It shall be the duty of members and clearing members to notify the Exchange of any circumstances
wherein a delivery or acceptance or any precondition or requirement thereof is prevented by an act of
jovernment, act of God or other emergency.

702. CLEARING MEMBER DUTIES TO THE CLEARING HOUSE
Aclearing member, carrying an account for a customer that is required to make or accept delivery.
agrees to quarantee ai sume complete responsibility for the performance of all deliver

requirements set forth in the rules.

In the event a clearing member fails to perform its delivery requirements to the Clearing House, such
failure may be deemed a default pursuant to Rule 802._In a delivery default, the Clearing House shall
seek to ensure the financial performance with respect to the delivery. _In this regard, the Clearing House

Powers will include, but will not be limited to, the right to sell or liquidate the commodity subject to
delivery and to distribute the proceeds as appropriate.

Upon request, every clearing member with an open long or short position shall present to the Clearing
House an inventory with such open positions in a form as the Clearing House may prescribe. Upon
request thereafter, accurate daily offset memoranda shall be submitted to the Clearing House through

and including the final day of trading.
DELIVERY FACILITIES AND PROCEDURES FOR
AGRICULTURAL COMMODITIES
7043. APPROVED WAREHOUSES

7043.A. Conditions for Approval

The Board may establish such requirements and conditions for approval is it deems necessary.

However, no warehouse shall be eligible for approval unless it is a licensed, public, cold storage

warehouse, agrees to issue Regetiable+eceipts, meets all local, state and federal requirements, and

agrees:

1. To record the date and exact location of all commodities stored; to include the date of storage on
the warehouse receipt; to record all changes of location; and to allow the Exchange to inspect all
such records.

2. To clearly identify each lot and sublot by number.

3. To permit the inspectorsgraders sent by the Exchange to select their own samples.

4. To.plainly mark “spected*-any sample taken out of the storage room for inspeetiengrading.

5. To record when any lot or sublot has been reconditioned or had its number changesd; to advise the
Exchange of this fact prior to tendering such lot or sublot for inspection; and to await a reasonable
time after advising the Exchange for further instructions.

6. Thatifith: trackage, it-will pay the-art harge-t track-wh sted-to-d

iwi pay ge-charg a
by-th hi tative whe takes final delivery-of such odity Exch:
y-the person, p : ¥ ¥ ge

contract-and surrenders the- warehouse receipt



356C33.

35704,

357A03.

357A33.

35804.

EMERGENCIES, ACTS OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 356603701. - EMERGENCIES, ACTS-OF GOD_ACTS OF GOVERNMENT, ACTS OF

GOD AND OTHER EMERGENCIES)

CHAPTER 357
NASDAQ 100 Index Futures

EMERGENCIES, ACTS OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

‘Refer to Rule 704. ~ ACTS OF E GOVERNMENT ACTS OF SOD AND OTHER EMERGENCIES)

ediatoly tify-the- Exch:

ident ction of gover at tof Ged-th iy buy hall: m
President—it-the President determines-that acti be “he shall call jal

Z gency be vr Pi

i jrock "i forthe tation ob evid .cting-th
emergency condition If the Board det that ts it shal-tak h-acti it
4 ader-the- y nd ite deci hall-be-bind I-parties-to-th
¥ Ag Upon all pi
contract.
CHAPTER 357A

Options on NASDAQ 100 Index Futures
ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. — Acts OF GOVERNMENT. ACTS OF SOD AND OTHER EMERGENCIES

5 ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 357403701. - EMERGENCIES-ACTS-OF-GOD-ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)
CHAPTER 358
E-mini Standard and Poor's 500 Stock Price Index Futures
ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule z01. = ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

deli tobeitheris-pi ted-by-a-strike,-fir

ediately tify the Exchange

¥ ai et
" tor-act-ef Ged_the seller

44


35504.

355A03.

355A33.

355B04,

355C03.

CHAPTER 355
S&P 500/ BARRA Growth Index Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD OR OTHER EMERGENCIES )¥
delh " iti i koi

+ . PF rF ui oF either is-p! tod by-a-ctri .
President. 4
ting-of-the Beard-of Diractore-and for the-p tation-of- vidi th
geney-condition it the Beard determines that _ dit ts, it shalake-such
action-acitd y-under-the-circumet dite-d hall bo-binding-uper-all- parti
te-the- contract.

CHAPTER 355A
Options on S&P 500/ BARRA Growth Index Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}

¥ g-UpER alt pal

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 355403701. - EMERGENGIES,ACTS-OF-GOD,-ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 355B
S&P 500/Citigroup Growth Index Futures
ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES
(Refer to Rule 701.~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)
= 7 =

deli citi tofeither i ted-by-a-sirike-fi
PH y NF

CHAPTER 355C
Options on S&P 500/ CITIGROUP Growth Index Futures

5 ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 704

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}

42


849,—__{RESERVED}

820.

-(Next Rule 820)
PERFORMANCE BONDS
PERFORMANCE BONDS CREDITED-

Performance bond requirements will be as determined by Exchange staff from time to time.

Subject to the terms and conditions as approved by Exchange staff, the Clearing House will accept as
performance bond, cash, equity securities, shares of mutual funds, United States Treasury and agency
Securities (under the conditions specified in Rule 825), Letters of Credit pursuant to Rule 822, units in CME's
Interest Earning Facility Program, shares in CME's Interest Eaming Facility 2 Program, permitted investments
allowable_under_ CFTC Regulation 1.25, and “readily marketable securities” as defined by Securities and
Exchange Commission Rules, as applicable (as used in this Rule 821, such assets and any proceeds thereof are
collectively referred to as "Assets"), all of which must be and remain unencumbered. The Clearing House m:
include other forms of collateral within the definition of “Assets” upon the approval of the Clearing House Risk
Committee and notice to clearing members.

All performance bonds_collateral, as herein described, shall be placed to the credit of the member paying the
same_for its customers’ trades or its own (so-called “house”) trades as designated by the Gclearing member.
The Clearing House shall value performance bond collateral as it deems appropriate. The clearing member shall
transfer the ifed performance bond collateral to the Exchange or to an approved depository for safekeeping
in an Exchai at int and the Exchange shall retain control over such performance bond collateral. Neither
the Exchange nor the Clearing House shall have any obligation or responsibility to preserve, protect, collect or
realize upon, and _under_no circumstances shall the Exchange or Clearing House be liable for, any loss or
diminution in value or depreciation in erin-cennesti ith the performance bond collateral maintained pursuant
to this rule. A clearing member who maintains performance bond collateral for its benefit pursuant to this rule
shall hold the Exchange and Clearing House harmless from all liability, losses and damages which may result
from or arise with respect to the care and sale of such performance bond collateral._[A\l initial and additional
performance bonds shall be retained by the Clearing House in whole or in part, as Exchange staff may deem
necessary, until the trades for which such performance bond_collaterals hasve been deposited, have been
settled offset, cash settled, delivered or otherwise closed out as determined by Exchange staff.

Each clearing member shall reimburse the Clearing House for all fees, expenses, charges and costs assessed
by a deposito: ainst the Exchange with respect to all performance bond collateral maintained in its account,
and shall make deposits as may be required by the Clearing House by reason of any depreciation in the market
value of such performance bond collateral. If a clearing member defaults to the Clearing House with re: t te

performance bonds, the performance bond collateral maintained in its account pursuant to this rule shall be
taken over by the Clearing House and sold without notice and the proceeds of the performance bond collateral
deposited for customers’ trades shall be applied against the performance bond requirements for the clearing
members’ customers’ accounts, and the proceeds of performance bond collateral deposited for the house trades
shall be applied against the requirements for the clearing member's own (so-called "house") account.

Upen-the-final fulfillment tthe Loft. tract_the-perk bond-di ited-f +h-contract. be

ithdi from-the-Clearing House-by-th ber-who-di ited-th

824, PERFORMANCE BOND AMOUNTS 821. - 823. [RESERVED]

Pork bond. i te-will-b determined-by Exchange-staff-from-time-to-ti Subjectio-the-t

* Revised June 1992; November 2000.

? Revised May 1982; June 1984; February 1986; May 1987; November 1987; December 1990; March 1992; June 1992; November 1992; April
1993; November 1993; November 2000; July 2001; October 2001; April 2002; October 2003; November 2003; July 2004.


738,

common to the Exchange, Chicago banks, New York City banks and banks for the Euro ("Target

stem _banks”) hall be in the fc a wire transfer of same-day funds to an account ai

a_bank designated aT the Clsenng H House. If the buyer elects to pay by bank Order to Pay. an Order io
s the

n the first busin ta receding the delivery day that is a business day common Hauge

eee Chicago banks, New York City banks and banks for the Euro (“Target system banks”). The

Bank Order hall be in a form by the Clearing House, and shall promise t same-
day funds on te delivery day.
Subject to the preceding three para if Ne live mmit ti ive

later than 11:00 a.m. on the last day of trading, but not later than = 00 a.m. on the following day, the

buyer's clearing member shall be assessed a fine on a per contract basis, the amount to be determined
by Exchange st liveris tructis ived subsequent to 8:00 a.m. on the

iT the last day of trading shall be deemed a delivery obligation failure and acted upon in
accordance with Rule 743.B. The buyer shall have made all provisions necessary to receive delivery
within the country of issuance.
737.D. Restrictions
Erom time to time, and frequently without warning, countries change the requirements and the

restrictions on non-resident unts. These take v forms including, but not limited to, non-
interest-bearing deposit requirements, negative interest rates, prohibitions against investment in the

country, ceilings on the amount of deposit and restrictions on the period of time such deposits may be
T's ith ir atic

ining to t! I of non-resident bank accounts in the country in which he desired to

FOREIGN CURRENCY SELLER'S DUTIES

738A. U.S. Dollar-Based Currency Contracts, Euro versus Polish Zloty, Hungarian Forint,
Czech Koruna Cross-Rate Contracts

The clearing member representing a customer delivering foreign currency in liquidation of his net short

Position shall, no later than 11:00 a.m. on the last day of trading, present to the Clearing House a
Seller's Non-CLS Delivery Commitment.
Be hysical Delivery Currency Cross-Rate Contract

The clearing member representing a customer making delivery of a Physical Delivery Currency Cross-
Rate Contract, except for cross-rate contracts referenced in Rule 738.A.. in liquidation of his position
hall, no later than 11:00 a.m. on the last day of trading, present to the Clearing Ho! Seller's Non-
CLS Delivery Commitment. In addition by 1:00 p.m. on the first day preceding the delivery day that is a
business day common to the Exchange, Chicago banks and New York City banks, the clearing member

he
shall be in the of same-da funds to an account at a bank desk nated by th Clearing House. The

Bank Order to Pay shall be in a form approved by the Clearing House, and shall promise to pay same-

day funds on the delivery day. ihe Sefer shal have made all provisions Necessary to receive delivery
e minim 20L ance e aring me sha

learing House. The Ex s ate the
ink Order t P in the event that a ven intry’s nts § hich previoush ui
prior Bank Order to Pay Postina. implements same-day finaly of pave

AN
8:00 a.m. on the day folowing the la dav of trading ‘shalt be deemed a delivery obligation | failure and

acted upon in accordance with Rule 743.B.

12


41704,

417A03.

45106.

451A03.

CHAPTER 417
CME Seasonal Frost Days Index Futures

‘ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}F the

Exeh: President detormines-that i be. he-chall:
‘ gency i Yr Lealla-special

CHAPTER 417A
Options on CME Seasonal Frost Days Index Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

CHAPTER 451
13-week U.S. Treasury Bills Futures

7 ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) #h
ting of the Beard of Diroctors and arrange for the prosontation woe respecting the

dition If: the-board-determines-that

CHAPTER 451A
Options on 13-week U.S. Treasury Bills Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
7 " =a, 7

tof-either it ted-by-a strike fi
lis ¥ 7

ig P oq :
accident_act of g tor act of Ged,the seller oF buyer shall immediately netify the Exchange



insufficient to satisfy all of its obligations to the Clearing House, including all claims against the Clearing House
by reason of its substitution for that clearing member pursuant to Rule 804, the Clearing House shall nonetheless
Pay all such claims, which shall be deemed a loss to it and which shall be a liability of the defaulting clearing
member to the Exchange, which the Exchange may collect from any other assets of such clearing member or by
process of law. *

2. Default by Other Participating Exchanges. ?

If anothera Participating Exchange fails to promptly te-discharge any obligation to the Clearing House arising out
of its obligations the-Mutuat-Offset-Systemto the Exchange, its-such Participating Exchange's letters of credit,
performance bonds of-and other assets available to the Exchange shall be applied by the Clearing House
Managerto discharge the obligation.

802.B. Satisfaction of Clearing House Obligations *

If the Clearing House is unable to immediately satisfy immediately-all claims against it including, but not limited
to, costs associated with the liquidation, transfer and managing of positions, arising out of: 1) its substitution
(pursuant to Rule 804) for a defaulting clearing member or a defaulting Participating Exchange, or a defaulting
Partner Clearinghouse; 2 a shortfall i in a Joint Ccross-Mmargining sere a etaalt bya Rociceatne oF 38

hortfall-i 8 R; that fa default by
gining-Progr lin cl

a-resuit-of_3) the failure of a depository,-of exchange or market apart from the Exchange but whose transactions
are cleared pursuant to the provisions of Chapter 8B or Chapter 8C,_8D,arcenyembezzlement-or-; 4) for any
other cause, then such claim or obligation shall be met and made good promptly by the use and application of
funds from the following sources in the order of priority hereafter listed,. with-eEach source of funds te-set forth
below shall be completely exhausted, to the extent practicable, before the next following source is applied. While

ity-of the Ch Rick ittee-with-thi of the Board.
y PPI

1. Surplus funds of the Exchange in excess of funds necessary for normal operations

2. The amount of security deposit required under Rule 816 from all classes of clearing members shall be
applied toward meeting said loss, in direct proportion to the total security deposit requirement of each
clearing member. *

3. Proceeds from any default insurance maintained by the Exchange to the extent that such proceeds are
available in a timely manner to be applied towards the default.

4. The balance of the Clearing House loss remaining after application of the above funds shall be assessed
against all clearing members (excluding any insolvent or defaulting clearing member). Each clearing
member (excluding any insolvent or defaulting clearing member) shall be subject to an assessment up to an
amount that does not exceed 275 per cent of such clearing member's security deposit requirement:

5. __All amounts assessed by the Exchange against a clearing member pursuant to this Rule, during the hours in
which the Federal Reserve's wire transfer system (Fedwire) is in operation, shall be paid to the Exchange by
such clearing member prior to the close of Fedwire on such day. All amounts assessed within one (1) hour
prior to the close of Fedwire shall be paid to the Exchange within one (1) hour after Fedwire next opens.

While such application of funds shall be mandatory, the detailed implementation of Rule 802.B. shall be the
responsibility of the Clearing House Risk Committee with the approval of the Board.

&—Any clearing member that does not satisfy an assessment, that-may-be-made pursuant to paragraphs-4 or 5
above, and-in-accordance-with-_paragraph-7_belew-shall be in default. Any Clearing House loss that remains
as a result of such default shall be assessed pursuant to paragraph 4.

6—f a clearing member (i) makes payment of all amounts -assessed against it pursuant to paragraph-44 or 5
above, and ‘dank Op ph_belew,-and (ii) replenishes any deficiency in its security deposit
in accordance with Rule 802.| D. and (ii) satisfies ‘all other conditions for withdrawal, it may, within five (5)
business days of such payments, apply to withdraw from clearing membership pursuant to Rule 913.
Immediately after the Exchange pests—approves the clearing member's withdrawal,—netice—to—the
membership; the withdrawing clearing member shall not be subject to any other assessment pursuant to this
Rule. Further, upon the approval of the clearing member's request to withdraw, the security deposit that it
has restored shall not be used or applied towards meeting any claim or obligation of the Clearing House

* Revised October 1989; June 1992; January 1994.

? Adopted September 1984. Revised June 1992.

> Revised September 1984; March 1986; October 1989; April 2000; November 2000; April 2001; April 2002; August 2002; June 2003
* Revised February 1988; October 1989.



741,

742.

COSTS OF DELIVERYFOREIGN-CURRENCY BUYER’S DUTIES FOR-CLS DELIVERIES

A-cleari berrep ti t thatintends-t deli Fak

The deliverer of a foreign currency shall.bear the costs of transferring the foreign currency into a bank
ignated by the Cleari ise. The receiver of a foreign currency shall bear the costs of

transferring the foreign currency out of the bank designated by the Clearing House. Such costs may

include, but are not limited to, wire transfer charges, negative interest charges and transaction fees.

DELIVERY NETTINGFOREIGN-CURRENGY SELLER'S DUHES FOR CLS DELIVERIES

A-cleari be i eust delivering forek through the CLS System

Hiquidate-a-net shert-position inthat foreign. hall-netater-than-44:00-a.m-Ghi 4h the



CFTC Submisson No. 06-28
March 22, 2006
p. 30f3

The Exchange certifies that this regulatory advisory neither violates nor is inconsistent with any
provision of the Commodity Exchange Act or of the rules and regulations thereunder.
If you have any questions regarding this matter, please call me at (312) 648-5422.

Sincerely,

/S/ Stephen M. Szarmack
Director and Associate General Counsel

‘SMS/elm/5680 SUB 06-28.doc


268A04.

30103.

301A04,

30203.

30303.

Board determines that an-ermergency-exists_it shalltak h-actic ited yunderthe
i and its-decision-shail- be-bindi 1l-parties-to-the-contract
ig UP Pi 2

CHAPTER 268A
Options on Polish Zloty Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS. OF GOD AND OTHER EMERGENCIES}

deliver ith Hie provonted by trikefi
}-a6sigh ¥ tai a fire;

CHAPTER 301
Euro/ British Pound (Euro/ BP) Cross Rate Futures

EMERGENGIES, ACTS OF GOVERNMENT, ACTS OF GOD_AND OTHER EMERGENCIES
(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES} Hh

pectng:
Beard-determines-that iets it- shall tak acti itd nderthe

CHAPTER 301A
Options on Euro/ British Pound (Euro/ BP) Cross Rate Futures

EMERGENGIES,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to io Rule 1 =ACTS. OF GOVERNMENT. ACTS OF SoD AND. OTHER EMERGENGIESHE

ediately-netify-the-Exch:

CHAPTER 302
Euro/ Canadian Dollar (Euro/ CD) Cross Rate Futures

EMERGENGIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES )}iFthe

Exeh: Rrasident det ‘that ts-and/or physical deli ted-by
ig geney PRY Hsp

halltake-such-action-ac-it doom yunderthe
i vs 'd-ite-decicion shall be-bindi Il parties to-th tract. *

ag-uporvall par :

CHAPTER 303

Euro/ Japanese Yen (Euro/ JY) Cross Rate Futures
EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
Refer to Rule 701. - ACTS OF GOVERNMENT, TS OF 1D OTHER EMERGENCIES)

35


iby b Joari b fi b tt
Y 7 ig 7 ig PP

Beard-of Directers-has-determined that the fee-fort S 406-H-and-106-Ni ould

higher than-the-fee fo: ty b Joari bers-and- Rule-1064-fi The-follows Jicies-will
quity 7 °g- ad r ing pel

BT .ctions-for-th " db) holding- perships through CME Rule 406.C--or Dif
ted a ith_Exchi Hioy-fe ber-rates—The-ev th bership-d

cS. .d_by-the-cloaring-member-and-ite-cubsidl hich roll
Non-Member Rates A-below.)
pi forth te-owned-b part £-the-cleari bor-wheth th
&-
Fe
s
He
fi ve-memberrates_but net both,-for- in GEM Divicion product
HF 7 : p
1-_Transacti tod_on-the-trading-floor_for-the-account jointly_-owned_by—members_but-only-f
ducte-in-thei hip_diviei ill-be-based-on_th 4 ipe_of-all
p rabership-di a6 bership ant
f wn i fh lioy-f bi Franeact ted-on-GLOBE!
: e-with Exchange -policy ates. for

* Revised November 2000; November 2001; August 2002; May 2003; July 2003.


102A33.

15108.

151A03.

151A33.

15208.

152A03.

EMERGENCIES, ACTS OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 492403701. - EMERGENCIES, ACTS-OF- GOD,-ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 151
Frozen Pork Bellies Futures

{RESERVEDJACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

CHAPTER 151A
Options on Frozen Pork Bellyies Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

iti tofeitheri ted-by-a-strike_-fi

t
igi ai

: gency
ting-of the Board-of Direct 4 forth tation-obevid ting th
gs i) P posting
dition Hf: the Beard-determines-that iste it shall-taki h-actie it
pergency - gency 7
doom y-under the ciroumst 1d is-decision-shall-be binding-upen all_partios tothe
contract.

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 454403701. - EMERGENCIES, ACTS OF GOD-ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 152
Lean Hog Futures

EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES aN

Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS! OF GOD AND OTHER EMERGENCIES}# tho
pI

Exch President determines that-th fthe-fnal
PA y

gt

CHAPTER 152A
Options on Lean Hog Futures

EMERGENCIES, ACTS OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES
{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)¥

tofeith tod-by-a-sirike; fire,

idont-actofg toract-of God,-the-sall uyer-shalli immediately notiy.the-Exchange
Presi the Prosi clk

that
pH

ting-of the Board-of Direct "

23


CFTC Submisson No. 06-28
March 22, 2006
p.20f3

Rule 802.B. (Satisfaction of Clearing House Obligations)

This rule was modified to allow the Exchange to recover the costs associated with the
liquidation, transfer and management of positions of a defaulting Clearing Member. Previously,
these costs would not be recoverable in the event of a Clearing Member default.

Another modification of this rule provides that if a clearing member plans to withdraw after
satisfying a default assessment, it may do so immediately after receiving Exchange approval to
do so. Previously a clearing member could withdraw after the Exchange posted the clearing
members withdraw request to the membership.

In addition, language was added to clarify that each default by an individual clearing member is
considered a separate default event.

Rule 804 (Substitution)
This rule was modified to specifically include the term “novation” clarifying that the Exchange
becomes the buyer to every seller and the seller to every buyer.

Rule 813 (Settlement Prices)
This rule was completely revised. The modifications clarify and more accurately reflect the
actual settlement procedures employed by staff on a daily basis when settling contracts.

Rule 816 (Security Deposit)

The detailed calculation formula used to establish the security deposit pool was moved to the
Clearing House Manual of Operations. The modifications further streamline the security deposit
rule.

Rule 820 (Performance Bonds Credited) and Rule 821 (Performance Bond Amounts)
These two rules were combined into one rule (820 Performance Bonds) that discusses the
types of performance bonds that are accepted as well as the approval process for performance
bonds.

Rule 832 (Common Banking and Settlement)
This rule has been eliminated since the Common Banking Program is no longer in existence.

Interpretations

All of the interpretations have been removed from Chapter 8 and they have been incorporated
into the rules or deleted including the Exchange and Clearing fee section and the policy
regarding treatment of concurrent long and short positions.

Rule 809 (Trade Data Processing System)

Many of the detailed operational aspects of this rule were moved to the Clearing House Manual
of Operations. Examples include out-trade procedures and the requirement for out-trade
representatives to be available on the trading floor.


36604.

36705.

36804.

36905.

CHAPTER 366
S&P 500/ Financial SPCTRTM Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
(Refer to Rule 701. — ACTS OF GOVERNMENT. ACTS OF GOD / AND OTHER. EMERGENCIES} the
7 ,

lation-ef the Final Seth tod ident-acti
PI by

Board-determines-that iete, it. shall-take-cuch acti itd snder-the

Board de pat eree gonoy ont ho reenieanrupanan
CHAPTER 367

Rogers International CommodityTM TRAKRSTM FUTURES

EMERGENGIES, ACTS-OF-GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES

delivery tofeither-i ted-by
pr PI Ogu PI fire;

CHAPTER 368
S&P SmalleCap 600 IndexTM Futures

EMERGENCIES, ACTS OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 70

_— ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}#he

dition —Hithe
derthe

CHAPTER 369
LMC TRAKRSTM Index Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES:

Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)

47


deom yunderthe-ci te d-its-decision-shall-be-binding-upon-all parties to-the

CHAPTER 257
Brazilian Real Futures

25703. Emergencies, Acts-of Government, Acts-of GedACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES

(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) }#the

Exchange President determines that-the-ealculation-of- the Final Settlement Price ie-pr tod-by-ctrik
the Board-of Direct
'

CHAPTER 257A
Options on Brazilian Real Futures

257A04. EMERGENCIES, ACTS-OF-GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) #¥
ise-assignment,or delivery orany preconditi equirementthereefis_prevented_by
strike, fire, accident, act of gove: t. st-of God, the-seller-or buyer shall immediately-notify

the Exchange-President._tf the President determines that-emergency-acti y-be-necessary-he

CHAPTER 258
New Zealand Dollar Futures

25803. EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD_AND OTHER EMERGENCIES
{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER. EMERGENCIES}#the
Exchange Rresident deter

thatan-or t6-andlor physical-del ted-by
pRY ¥ iy
jident-act-of " ct of God-he-shall-calt ial ting of the Board-of

a gi br ‘ia it

CHAPTER 258A
Options on New Zealand Dollar Futures

258A04. EMERGENCIES, ACTS OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES iF

31


351A33.

35204.

352A03.

352A33.

352B04,

-goney-condition—It the Beard determines that iste it halliak hast it
a der the-ci n ite decision chall-be bind IL parties-to-the

¥ gp
contract

EMERGENGIES,-ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 354403701. ~ EMERGENCIES, AGTS-OF GOD_ACTS OF GOVERNMENT, ACTS OF
GOD AND OTHER EMERGENCIES)

CHAPTER 352
Nikkei Stock Average Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF SOD s AND OTHER, EMERGENCIES Jhb.

‘ealculation-of- the Final Seth ted
pI

Directors-and-an forth tation of evid pecting-th Jondition tfth
ig is pecing gency 7

Beard-dot that goney-exists,it shall-tak h-action-as-it-d y-underth
n dite-d hall-be-bindi tLparti the-contract.
ep pat
CHAPTER 352A

Options on Nikkei Stock Average Futures

EMERGENCIES, ACTS OF GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

Refer to Rule 701. — ACTS OF GOVERNMENT, ACTS OF GOD AND. OTHER EMERGENCIES)

ith ted-by-a-strik
pI a

EMERGENCIES, ACTS OF GOD, ACTS OF GOVERNMENT
(Refer to Rule 352404701. - EMERGENCIES, ACTS-OF- GOD,ACTS OF GOVERNMENT, ACTS OF

GOD AND OTHER EMERGENCIES)

CHAPTER 352B
Yen Denominated Nikkei Stock Average Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES} the

35304,

centract.

CHAPTER 353
Standard and Poor's MideCap 400 Stock Price IndexTM Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

40


B. Failure by the seller to properly
transmit the required information
within one business day of railroad
acceptance. (Independent of A.)

C. Failure by the seller to mail the
prescribed documents to the
Clearing House within fourteen
business days of receipt of buyer's
shipping instructions.

D. — Materially incomplete or erroneous
delivery forms or material
adjustment to delivery forms.

E. Failure by the seller to send the
sample (in the size, container and
package specified by the Clearing
House) to the testing service on the
business day after acceptance by
the railroad

(End Chapter 204)

$100 per business day (assessed
against the seller and payable to
buyer).

$100 per business day (assessed
against the seller and payable to
the Clearing House).

$150 per car (assessed against the
seller and payable to the Clearing
House).

$100 per business day per portion
(assessed against the seller and
payable to the Clearing House).

INTERPRETATIONS & SPECIAL NOTICES -RELATING-TO-CHARTER 204

[The remainder of the Interpretation Section is unchanged.}

CHAPTER 205
Diammonium Phosphate Futures

20508.
EMERGENCIES

EMERGENCIES, ACTS-OF-GOD, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}HFthe

46-oF-that ph

Exchange President determines that an

deli

ted-by-a
g ¥

¥
tof Ged,

End Chapter 205)

iste -it- shall-tak

gency

hall be-bindi 4
1g-up

INTERPRETATIONS & SPECIAL NOTICES RELATING TO CHAPTER 205
PENALTIES AND FINES (amended December 2005)

Cause

A. 1. Materially incomplete or
erroneous shipping instructions or

material adjustment to instructions.

2. Failure by the seller to properly
follow shipping instructions within
seven business days after receipt
of instructions.

Penalty / Fine

$200 per business day (assessed
against the buyer and payable to
seller).

$200 per business day (assessed
against the seller and payable to
buyer).

26


733. DELIVERY DATE

Delivery shall be completed in accordance with the specifications of the separate contracts.

United Europ be-substituted by buy d/or-seller_in-fulfillmentof-deli bligations 4 ts

determined by-th licable-fixed- i tes-of national: tt set-by-the
i x

2 ges; neg gO6; ote:

734.-735. RESERVED]
NON-CLS (LEGA' CURRENCY DELIVERIES

736, EMERGENCIES, ACTS-OF GOD, ACTS OF GOVERNMENT

REGISTERED BANKS AND OTHER FACILITIES

Exchange staff shail establish such requirements and preconditions for registration as a facility for the
delivery of currencies as it deems necessary.

4-_Ia-clearh ber-with aCe jtment-io- deposit fund Ho Rule 73+fails- to deposit such



805.

806.

807.

808.

809.

814 and 815, respectively, is confirmed by the appropriate settlement bank for both members. '
With res) to trades made pursuant to Rule 8D38 (Finality), the Clearing House shall assume the obligation t

- perform when the results of an Auction are final as set forth in the CME AM rules.

OPEN POSITIONS

All contracts for the purchase or sale of any cemmedity-product for future delivery shall remain open and in force,
and shall continue to be binding upon the original parties until liquidated by offset as provided in Rule 806 or by
delivery or failure to perform as provided in Chapter 7.

OFFSET BY-LIQUIDAHONPROCESS

When a member buys and sells the same commodity for the same delivery month, a put or call option with the
same strike price and expiration month and such contracts are cleared through the Clearing House, the
purchases and sales are not automatically offset one against the other. Transactions can only be offset against
one another by complying with Rule 811—Position Change Data.

A clearing member long or short any commodity to the Clearing House as a result of substitution may liquidate
the position by acquiring an opposite position. 4or[-te-principat

OFFSETS MEMORANDUM-AND-OFFSETS DURING DELIVERY MONTH ?

track icot- t-1o-Rule-806_th: ific-dates-of-contracts-which ffcot a ined
Wher-c P - pecific.

rr

Prior to each delivery month, the-Managing-Director-and-President-of the

Clearing House shall request ‘such-clearing members te-submit a complete and accurate record of dates of all
open purchases for use in making deliveries. _-as- provided in Rule- 742. Clearing members shall bearfullbe fully

w Gn the following business- day after

responsiblereepensibitity for inventories submitted to the Clearing House.-

Ad:

the £ the-deli

rd-and-up-to-and-includi

g Pe
"i \d-the-cleari ber_shall_be—under furthor_tiability—t ke-del ith
5 Ag: ¥
respectiherete-
Unless otherwise provided in the Clearing-Hi Manual-of-Operations, beginning on the day following the first

day on which longs may be assigned delivery, all purchases and sales, made in one day in the lead month
contract by a person holding a long position in that contract, must first be netted out as day trades with only the
excess buys considered new longs or the excess sales being offsets of the long position.

This rule shall not apply to trading in options contracts. *

OFFSET NOT AUTOMAHCIRESERVED] ‘

809..BA. Trade Data

Every clearing member must submit to the Clearing House trade data for the day's business not later than the
time specified by the Clearing House. *

809.CB. Matched and Unmatched Trades {Non—Final)

The Clearing House shall process all trade data submitted by clearing members but shall accept only those trade

records (transactions) which are in agreement with the corresponding trade records submitted by the opposite
clearing members.

* Revised June 1992.

? Revised June 1981; January 1986; November 2000; June 2003.
? Revised January 1983.

* Revised January 1983.

* Revised June 1998.

® Revised November 2000.

7 Revised June 1998; Revised November 2000.

° Revised June 1998.


ott ifie-tradii t ftradi "
mg

PA PA group is r

“ tC De inator_{L CD} Rule’—To-determine-the-rates-charged_for-a-joint unt-the

LOD tule-i d—Rat determined_by_the-ty £ bership_held_by-all-of-thi ad
g yf YP iP y-

ii 50% -of-suchloss—shall-b: ed-in_proportion_to-MEFF's-sh the total

Eth

tenth-bi

" Revised June 1997.
? Adopted May 2001.


37104.

37205

37505.

37605.

37704,

CHAPTER 371
E-Mini Russell 1000 Stock Price IndexTM Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
dol fi y- precondition quirement-of-either-ie-prevented by a strike, fire,
ident-action-of government-or-act of God, the seller-or buyer shall immediately-notify the-Exchange

CHAPTER 372
Commodity TRAKRSTM Futures

EMERGENCIES, ACTS-OF GOD,-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

{Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES }¥
deli " ith ° tof-either-i

ted-by-a-strikefi
¥ o

ondi
¥ PF og

Rresident—Itthe Pi

ident determines that ti -be-necessal Pall
gency oi ¥

in
ting-of the Board of Directors-and. forth tation of evidence respecting the °
emergency condition Hhe Board det that iste,-it- shall-tak Rach it
4 y under the-ci i" ad-ite-di hall-be-binding-upen-all parties to-th
sontract:
CHAPTER 375.

Euro Currency TRAKRSTM Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES
(Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
delivery-orace an On-OFFoquit #-oF either is prevented-by-a-strike-fire,
ident-acti tor-actof-Ged_the-selle alli diately notify-the Exeh

CHAPTER 376
Gold TRAKRSTM Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES

Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)¥
delivery plan y-procondili = ree?

ident-action-of- t-or-act of Ged, the-seller-or-bi palLimmediately-natify the Exch:
: go" F OF iy notify ig
President-tHhe President determines-that ti be sary, he -shall-ealt-a special
7 gency yf y
ting-of the Board-of Diractors-and. forthe. tation of vid ting-th
is ) ? posting.
dition If the-Board-determines-that iste it shall-tak acti it
gency = gency S
de y-underthe-ci ti nd-its-decision- shall be-binding-upon-all_parties-to-the
centract.
CHAPTER 377

E-mini NASDAQ Composite Index Futures

-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

48


40403.

404A04.

40504.

405A03.

40604.

CHAPTER 404
CMESINDEXTM Futures

EMERGENCIES, ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES
Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES) the
Exchange President determines that an- iste-andior phycical-delh 4

is. tod
gency PRY yis-p y
trike--fi ident-actof-g t-or-act-of Ged_he shall calla special mesting of the Beard-of
Directors-and forth tation-of avid pecting-the- adition Ifthe
age. +H pecting gency ¥

Board-determinesthatan- gency oxieis_it shall take such-acth ited yunderthe
i St and its- decision shall be-bindi IL parties-to-th trast

sup Pi

CHAPTER 404A

Options on CMES$INDEXTM Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701, - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}
7 i tor dolk iti 7 P

al i thereot. ted-by-strike-fi
-a6sig z et a

¥ PH pH
ident-actof- t-oF-act- of Ged,the seller or buyer shall immediately notify the Exch:

"gt

CHAPTER 405
CME Seasonal Strip Degree Days Index Futures

ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER

EMERGENCIES
Refer to Rule 701. - ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES)f-the
Exchange President determines thatomerg sth be- he-shall-calt-a special

iv Yr

¥
-d-of Directors-and-arrange-forth tation-of-evide pecting-th

ting of the-B

CHAPTER 405A
Options on CME Seasonal Strip Degree Day Index Futures

EMERGENCIES, ACTS-OF GOD,ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

(Refer to Rule 701. ~ ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES}

CHAPTER 406
CME European HDD Index Futures

a ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER
EMERGENCIES

{Refer to Rule 70

-ACTS OF GOVERNMENT, ACTS OF GOD AND OTHER EMERGENCIES} Hthe

50


738.C. Restrictions

739.

740,

From time to time, and frequently without warning, countries change the requirements and the

testrictions on non-resident bank accounts. These take various forms including, but not limited to, non-

interest-bearing deposit requirements, negative interest rates, prohibitions against investment in the

country, ceilings on the amount of deposit and restrictions on the period of time such deposits may be
maintained. Itis the seller's responsibility to be familiar with and in conformance with all regulations

pertaining to the holding of non-resident bank accounts in the country in which he desired to make
delivery.

DELIVERY DATENEFHING

Fo-facilitate-spread trading bety products -where positions held te terminatior °

Delivery shall be completed in accordance with the specifications of the separate contracts.

CLS-CURRENCY DELIVERIES
PAYMENTSDELIVERY THROUGH CLS BANK AND/OR-THE CME-CLS-AGENT BANK
Prierto-the-June-2005 deliveries CME. fut tracteust lect fe

r yt ¥
hysical- delivery and-deli iti ting through the-CLS (Centi Linked Settlement} Bank

physical-delh
and-net-be-cubmittedte the CLS Bank:

The Clearing House shall designate a bank in each foreign country into which foreign currency shall be
delivered. These banks shall notify the Clearing House when foreign currency funds have been
received. In the of Currency Contracts, the foreign currency delivery for each customer shall equal
the net short value of positions in that foreign currency. Values for positions in contracts with minimum
fluctuations denominated in U.S. dollars shall be the contract size. Values for positions in contracts with
minimum fluctuations in foreign currency shall be the contract value based on the settlement price on
the last day of trading. In the case of Currency Contracts, the Clearing House shall, promptly after
receipt of notification that foreign currency funds have been received, transfer the U.S. dollar funds
previously deposited by the foreign currency buyer's clearing member to the account of the foreign
currency seller's clearing member.

13