cme @

Chicago Mercantile Exchange

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

March 8, 2007

Ms. Eileen Donovan

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21° Street, N.W.

Washington, D.C. 20581

RE: CME Rule 106.R. (“Electronic Corporate Member Transfers”)
Submission No. 07-20

Dear Ms. Webb:

Chicago Mercantile Exchange Inc. (“CME” or “Exchange") hereby notifies the
Commission that the Exchange has approved amendments to Rule 106.R. to remove
references to arcades from the rule. The rule changes are attached with the additions
underlined and deletions lined out.

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/eIn/6101 Sub No. 07-20.doc


106.

TRANSFERS, SECURITY TRANSACTIONS, AND AUTHORIZATIONS TO TRANSFER OR
SELL

[Rules 106.A. ~ 106.Q remain unchanged.]
106.R. Electronic Corporate Member Transfers

A membership may be owned by, or two memberships may be transferred to,-an-arcade-or a proprietary
trading firm. The membership may be held in the name of the firm or transferred to an employee of the
areade-or-proprietary trading firm and transferred among its employees provided that: (1) the transfer is
approved by Exchange staff; (2) the transferee is approved pursuant to the rules of the Exchange; and
(3) the transfer is for the legitimate business purposes of the firm. The areade-or-proprietary trading firm
shall have the right, at any time, to have the employee disqualified from trading, but must have him
disqualified upon termination of his employment with the firm. Notice to have the employee disqualified
from trading must be given to the employee's qualifying clearing member. The arcade-or-proprietary
trading firm shall designate on a form provided by the Exchange a representative who shall be
authorized to deal with the Exchange with respect to the membership transferred under this Section.

A Rule 106.R. membership may not be transferred pursuant to Rule 106. C., D., E., F.,G., H. orl. The
membership may not be assigned for clearing purposes under Rule 902.

Rule 106.R. benefits only apply to an-areade's-ora proprietary trading firm’s proprietary trading and not
to the trading of any affiliates, subsidiaries or customers. All proprietary positions of the arcade-or
proprietary trading firm must be carried by a clearing member(s) in accounts separate from positions of
affiliates, subsidiaries, customers and other entities.

A Rule 106.R. membership does not confer upon a holder or transferee of such membership the ability
to access the trading floor. In addition, an individual that has owned or held a CME, IMM or IOM
membership in the previous two years, may not be a holder or transferee of a Rule 106.R. membership.

A Rule 106.R. arcade-and-proprietany-tradingElectronic Corporate Member firm may not hold itself out
to the public as an Clearing Member ofthe-Exchange Member.

[The remainder of the rule is not changed.]