Ms. Eileen Donovan
February 21, 2007
Page 5 of 7

CHAPTER 256A
OPTIONS.ON MEXICAN PESO FUTURES

256A02. LISTING OF EXERCISE PRICES (Sections | and 2 are unchanged.)

3. Dynamically-Listed Exercise Prices.

CHAPTER 257A
OPTIONS ON BRAZILIAN REAL FUTURES

257A02, LISTING OF EXERCISE PRICES [Sections } and 2 are unchanged.]

CHAPTER 258A
OPTIONS ON NEW ZEALAND DOLLAR FUTURES

258A02. LISTING OF EXERCISE PRICES [Sections ! and 2 are unchanged.)

CHAPTER 259A
OPTIONS ON SOUTH AFRICAN RAND FUTURES

259A02. LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged]

CHAPTER 260A,
OPTIONS ON RUSSIAN RUBLE FUTURES

260A02. _ LISTING OF EXERCISE PRICES [Sections ! and 2 are unchanged.}

ically-Li: rise Prices.

CHAPTER 261A
OPTIONS ON EURO FUTURES

261402. LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged.}

‘CHAPTER 266A
OPTIONS ON CZECH KORUNA FUTURES.

266A02. LISTING OF EXERCISE PRICES [Sections } and 2 are unchanged.]

Lis ise Pri


Ms. Eileen Donovan

February 21, 2007
Page 4 of 7
CHAPTER 387A.
OPTIONS ON NASDAQ 100 INDEX FUTURES
3S7A01. OPTION CHARACTERISTICS [Sections A through D are unchanged.)

357A01.E. Exercise Prices [Sections | and 2 are unchanged.]
32 amically-Lis ise Prices
Upon demand and at the discretion of the Exchange, new out-of-current-range exercise prices at regularly defined intervals may be

added for trading on as soon as possible basis,

FX Options Rule Amendments:

251A02.

252402.

253402.

254A02,

255A02.

CHAPTER 251A
OPTIONS ON BRITISH POUND STERLING FUTURES

LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged.]

3, Dynamically-Listed Exercise Prices,

and at the

ied fe in as sible basis

CHAPTER 252A,
OPTIONS ON CANADIAN DOLLAR FUTURES

LISTING OF EXERCISE PRICES [Sections } and 2 are unchanged.)
3. Dynamically-Listed Exercise Prices,

yn demand and at the discretion of the Exchange, new out-of-current-range exercise prices at regularly defined intervals may
ied for trading on as soon as possible basis.

CHAPTER 253A
OPTIONS ON JAPANESE YEN FUTURES

LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged.)

3 mically-Lis i

CHAPTER 254A
OPTIONS ON SWISS FRANC FUTURES

LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged.]

tion of the Exchange, new out-of. -range exercise prices at regularly defined int
for tradi ible basi

CHAPTER 255A
OPTIONS ON AUSTRALIAN DOLLAR FUTURES.

LISTING OF EXERCISE PRICES [Sections 1 and 2 are unchanged.}



Ms. Eileen Donovan

February 21, 2007
Page 6 of 7
at the retion Exc new o1 e exere at regularly defir Ne
for tradi nas possible basi
CHAPTER 267A
OPTIONS ON HUNGARIAN FORINT FUTURES
267A02. LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged.)

268A02.

301A02.

303A02,

304402,

315A02.

jically-Listed Exercise Prices.

CHAPTER 268A
OPTIONS ON POLISH ZLOTY FUTURES

LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged.]

3, Dynamically-Listed Exercise Prices,

‘Upon demand and at the discretion of the Exchange, new out-of-current-range exercise prices at regularly defined intervals may be
led fe ling on as soon as il is.
CHAPTER 301A

OPTIONS ON EURO / BRITISH POUND FUTURES
LISTING OF EXERCISE PRICES [Sections 1 and 2 are unchanged.]
Listed Exercise

d at the discretion of the Ex« new out-of-current-range exerci at regularly defined intervals may
led for tradi aS soon as ible i

CHAPTER 303A,
OPTIONS ON EURO/ JAPANESE YEN FUTURES

LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged.)
3, Dynamically-Listed Exercise Prices,

mat at the discretion of the Exchange, new out. nt-range exercise prices at 1 intervals ma
fc ling on as as i is.

CHAPTER 304A
OPTIONS ON EURO / SWISS FRANC FUTURES

LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged.}

CHAPTER 315A.
OPTIONS ON EURO / CZECH KORUNA FUTURES

LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged.}



cme @

Chicago Mercantile Exchange
20 South Wacker Drive 312/930.1000 tel
Chicago, IL 60606-7499 312/466.4410 fax
www.cme.com
February 21, 2007
Ms. Eileen Donovan
Office of the Secretariat :
Commodity Futures Trading Commission o
Three Lafayette Centre c

1155 21st Street, NW
Washington, DC 20581 :
‘ 5)
RE: Section Sc(c), Part 40.6(a) — Rule Certification for Dynamically Listed Options Strike Prices 7 “
for Selected CME Equity and Foreign Exchange Options on Futures Products. :
CME Submission 07-15. >

Dear Ms. Donovan:

Chicago Mercantile Exchange Inc. ("CME" or "Exchange") hereby certifies with the
Commission amendments to selected CME Equity and Foreign Exchange (FX) options on
futures contracts, which will allow for the dynamic listing of options strike prices at regularly
defined strike price intervals. The Exchange certifies that these actions neither violate nor are
inconsistent with any portion of the Commodity Exchange Act or of the rules thereunder.

On Thursday, February 15, 2007, CME approved implementation of dynamically listed
options strike prices for selected CME Equity options and Foreign Exchange (FX) options. The
attached Appendix provides the underlined rule additions. This new procedure for adding out-
of-current range option strike prices was adopted under authority delegated to CME staff by the
Board of Directors. Implementation is Monday, March 26, 2007.

New Procedures

Under the new procedures, customers may request the listing of an out-of-range strike
price at regularly defined strike price intervals, and CME Trading Floor Operations will list such
strike price for trading same day. For example, this new procedure will allow the listing of CME
S&P 500 options strike prices that are out of the current approved listing range, which formerly
could only be listed for trading under the Exchange’s Flex options rules for CME Equity options.
CME Equity product customers routinely request the listing of out-of-current-range strike prices
under the Flex options rules, but without any of the other parameters for which the Flex options
were originally designed (different underlying futures contract, exercise style, expiration date,
etc.). Given that the Exchange’s Flex options procedures are labor intensive both for the market
users and Exchange, enabling customers to request listings of out-of-current-range strike prices
and accommodate them under the regular options contracts, will result in operational efficiencies
for market users and CME. Further, please recall that under the CME Equity Flex options rules,


Ms, Eileen Donovan
February 21, 2007
Page 7 of 7

CHAPTER 316A,
OPTIONS ON EURO / HUNGARIAN FORINT FUTURES

316A02. LISTING OF EXERCISE PRICES [Sections | and 2 are unchanged,]

3, Dynamically-Listed Exercise Prices.

yy at the discretion Exchange, new Ze OX¢ :s at regularly defined intervals may be

for trading on as s le basis,

(CHAPTER 404A,
OPTIONS ON CMESINDEXTM FUTURES
404A02. LISTING OF EXERCISE PRICES (Sections 1, 2 and 3 are unchanged.}
4 lly-Lis ixercise Pri
in. and at liscretion of | new out-of- t-range exercise prices at ined interval;
r 2

End of rule amendments


Ms. Eileen Donovan
February 21, 2007
Page 2 of 7

all existing open positions established under flexible trading procedures are fully fungible with
transactions in the respective standard options series for all purposes.

The new procedures will be implemented also for selected CME FX options. In the past,
out-of-current-range options strike prices have been requested for listing by FX options
customers. However, FX options do not trade under Flex rules and the Exchange is not planning
to add FX options products under the Flex options procedures. The new procedures
implemented March 26" will allow CME Trading Floor Operations staff to add for trading out-
of-range FX options strike prices at regular strike price intervals, if there is market demand.

There were no substantive opposing views to this proposal. Shareholders/members will
be notified of these rule amendments in the March 2007 CME Update, dated Monday, March 5,
2007.

If you require any additional information, please do not hesitate to contact Mr. Steven

Youngren at 312-930-4583 or via e-mail at syoungre@cme.com. Please reference our CME
Submission 07-15 on all future correspondence regarding this notification.

Sincerely,

John W. Labuszewski
Managing Director, Research & Product Development

Attachment


Ms. Eileen Donovan
February 21, 2007
Page 3 of 7

Appendix

Rule Amendments for Dynamically ted CME Equity & FX Options

Minor rule additions are underlined for selected CME equity options and CME FX

options (applies to both American- and European-style options).

Equity Options Rule Amendments:

3S1A01.

352A01.

353A01.

3S4A01.

CHAPTER 351A
OPTIONS ON STANDARD AND POOR’S STOCK PRICE INDEXTM FUTURES

OPTION CHARACTERISTICS [Sections A through D are unchanged.]}

351A01.E. Exercise Prices [Sections 1, 2 and 3 are unchanged.]

4. a ise Pr

Upon demand and at the discretion of the Exchange, new out-of-current-range exercise prices at regularly defined intervals may be
f - . :

CHAPTER 352A
OPTIONS ON NIKKEI STOCK AVERAGE FUTURES

OPTION CHARACTERISTICS [Sections A through D are unchanged.)

Exercise Prices [Sections | and 2 are unchanged.]

CHAPTER 353A
OPTIONS ON STANDARD AND POOR'S MIDCAP 400 STOCK PRICE INDEXTM FUTURES

OPTION CHARACTERISTICS [Sections A through D are unchanged.]

353A01LE. Exercise Prices [Sections | and 2 are unchanged.)
D ically-Listed Exercise Pri
t the discretion of the Exc! t-of-current-s ise pri Y fined intervals ma’

added for trading on as soon as possible basis.

CHAPTER 354A
OPTIONS ON RUSSELL 2000 STOCK PRICE INDEXTM FUTURES

OPTION CHARACTERISTICS [Sections A through D are unchanged.]

3S4A01.E. Exercise Prices [Sections } and 2 are unchanged.]