Exhibit A

HEDGE
Street

4#i-(ii) [except for renumbering, this rule is unchanged.}

(g) - (1) [unchanged]

(m) SETTLEMENT VALUE - The Settlement Value is the amount paid to
a member holding either a Short or Long Variable Payout Hedgelet Contract on
Settlement Date. The Settlement Value of a Variable Hedgelet Contract will range
between $0 and $4020, depending on where the Underlying closes in relation to the
Variable Hedgelet’s pre-defined Cap and Floor.

(n) - (0) [unchanged]
RULE 12.47 NAR NEW YORK VARIABLE PAYOUT CONTRACTS
(a) -(e) [unchanged]

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Variable Payout Contracts are initially issued.
For the Variable Payout Hedgelet Contract, the Payout Criteria for the Contracts
will be set as follows;

(i) QUARTERLY VARIABLE PAYOUT NAR NEW
YORK CONTRACTS

(1) CAP — The Cap shall be X + $20,000.
(2) FLOOR - The Floor shall be X.
(3) DOLLAR MULTIPLIER - The Dollar Multiplier shall be 0.001.

(4) In each case, “X” equals the last Expiration Value of the
Preliminary NAR New York Housing Price rounded to the nearest five-thousand
dollars ($5,000) as reported by the Source Agency.

i) BL_ANNUAL- VARIABLE PAVOUTNAR NEW.
¥ORK-CONTRACTS

(5) CAP—Fhe Cap-shall bex-+ $40,000.

1825 S. Grant Street

Suite 500

San Mateo, CA 94402

Tel: 650.638.3500
www-.hedgestreet.com Fax: 660.638.350!


Exhibit A

HEDGE
Street

#) BL ANNUAL VARIABLE PAYOUT NAR SAN
FRANCISCO CONTRACTS

(5) GAR—Fhe-Cap shall be X-+ $50,000.
'P DITO:

(6) F-OOR—Fhe Fleer shall be xX,
(7) DOLEAR-MULTIPLIER—Fhe Dollar Multiplier shall be 0.004,

(8) £ h ‘X” equals-the last Expiration Val £ th,

4i++(ii) [except for renumbering, this rule is unchanged].

(g) - (1) [unchanged]

(m) SETTLEMENT VALUE - The Settlement Value is the amount paid to
a member holding either a Short or Long Variable Payout Hedgelet Contract on
Settlement Date. The Settlement Value of a Variable Hedgelet Contract will range
between $0 and $49,40 depending on where the Underlying closes in relation to the
Variable Hedgelet’s pre-defined Cap and Floor.

(n) - (0) [unchanged]

1825 S. Grant Street
Suite 500
San Mateo, CA 94402
Tel: 650.638.3500
www.hedgestreet.com Fax: 650.638.3501


Exhibit A

HEDGE
Street

(4) deach “X” equals thetast-E tion Val £th.

dollars($5.000) rted-by-the S A
{SO5V UU P y

iHii) [except for renumbering, this rule is unchanged]
(g) - (I) [unchanged]

(m) SETTLEMENT VALUE - The Settlement Value is the amount paid to
a member holding either a Short or Long Variable Payout Hedgelet Contract on
Settlement Date. The Settlement Value of a Variable Hedgelet Contract will range
between $0 and $4030, depending on where the Underlying closes in relation to the
Variable Hedgelet’s pre-defined Cap and Floor.

(n) - (0) [unchanged]
RULE 12.46 NAR MIAMI VARIABLE PAYOUT CONTRACTS
(a) - (e) [unchanged]

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will
be set by HedgeStreet at the time the Variable Payout Contracts are initially issued.
For the Variable Payout Hedgelet Contract, the Payout Criteria for the Contracts
will be set as follows;

(i) QUARTERLY VARIABLE PAYOUT NAR MIAMI
CONTRACTS

(1) CAP - The Cap shall be X + $20,000.
(2) FLOOR - The Floor shall be X.
(3) DOLLAR MULTIPLIER — The Dollar Multiplier shall be 0.001.

(4) In each case, “X” equals the last Expiration Value of the
Preliminary NAR Miami Housing Price rounded to the nearest five-thousand dollars
($5,000) as reported by the Source Agency.

)-BL_ANNUAL VARIABLE PAVYOUTNAR MIAMI
CONTRACTS,

(1) GAP—Fhe-Cap-shall be X-+- $50,000.

(2) FLOOR—Fhe FI hall be-X-

1825 S. Grant Street

Suite 500

San Mateo, CA 94402

Tel: 650.638.3500
www.hedgestraet.com Fax: 650.638.3501


Exhibit A

HEDGE
Street

(6) FLOOR—FheFloershal be x,
(7) BOLLAR- MULTFIPLIER—Fhe Dollar Multiplier shall be 0.004

#i)-(ii) [except for renumbering, this rule is unchanged].

(g) - (1) [unchanged]

(n) SETTLEMENT VALUE - The Settlement Value is the amount paid to
a member holding either a Short or Long Variable Payout Hedgelet Contract on
Settlement Date. The Settlement Value of a Variable Hedgelet Contract will range
between $0 and $4020, depending on where the Underlying closes in relation to the
Variable Hedgelet’s pre-defined Cap and Floor.

(n) - (0) [unchanged]
RULE 12.48 NAR SAN DIEGO VARIABLE PAYOUT CONTRACTS,
(a) - (e) [unchanged]

(f) PAYOUT CRITERION — The Payout Criterion for each Contract will
be set by HedgeStreet at the time the Variable Payout Contracts are initially issued.
For the Variable Payout Hedgelet Contract, the Payout Criteria for the Contracts
will be set as follows;

(i) QUARTERLY VARIABLE PAYOUT NAR SAN
DIEGO CONTRACTS

(1) CAP — The Cap shall be X + $25,000.
(2) FLOOR - The Floor shall be X.
(3) DOLLAR MULTIPLIER - The Dollar Multiplier shall be 0.001.

(4) In each case, “X” equals the last Expiration Value of the
Preliminary NAR San Diego Housing Price rounded to the nearest five-thousand
dollars ($5,000) as reported by the Source Agency.

i) BL_ANNUAL- VARIABLE PAYOUTNAR SAN
DIEGO-CONTRACTS

1825 S. Grant Street,

Suite 500

San Mateo, CA 94402

Tel: 650.638.3500
www.hedgestreet.com Fax: 650.638.3501


HEDGE
Street

December 14, 2006

VIA EMAIL: secretary@cftc.gov

Ms. Eileen Donovan

Acting Secretary of the Commission
Commodity Futures Trading Commission
3 Lafayette Centre

1155 21st Street, N.W.

Washington, D.C, 20581

RE: Certification: HedgeStreet Makes Certain Corrections to the NAR Variable
Payout Contract Rules and Removes Bi-Annual NAR Variable Payout
Contracts from the HedgeStreet Rulebook — Submission pursuant to
Commission Regulation §40.6(a)

Dear Acting Secretary Donovan:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (“Act”),
§40.6(a) of the regulations promulgated by the Commodity Futures Trading Commission
(the “Commission”) under the Act, HedgeStreet, Inc. (““HedgeStreet”) hereby certifies with
the Commission amendments to the NAR Variable Payout Contract Rules in order to
correct certain errors contained in Rules 12.44 - 12.49. Even though the NAR Variable
Payout Contracts are not currently trading on the exchange, HedgeStreet is ensuring that
the relevant Rules are corrected in the HedgeStreet Rulebook. The amendments to the
NAR Variable Payout Contracts are defined in Exhibit A. The rule deletions are stricken
out and the amendments and/or additions are underlined.

HedgeStreet intends to implement these rule additions on Friday, December 15, 2006.

Should you have any questions regarding the above, please do not hesitate to contact
Stephanie Ford by telephone at (650) 638-3511 or by email at sford@hcdgestreet.com.

Sincerely,

Stephanie Ford
Vice President, Legal & Compliance

ce: Clarissa Manansala — HedgeStreet , Inc.

1825 S. Grant Street
Suite 500
San Mateo, CA 94402
Tel: 850,638,3500
www.hedgestreet.com Fax: 650.638.3501


Exhibit A

HEDGE
Street

(5) CAR—The Cap-shall be X-+ $50,000.

(6) FLOOR—Fhe Fleer shall be,
(7) DOLLAR MULFIPLIER—Fhe DoHar Multiplier shall be 0-004,
(8) Fe " a ag is the Jact E- pi $4 Val £ th,

iH (ii) [except for renumbering, this rule is unchanged].
(g) - (1) [unchanged]

(m) SETTLEMENT VALUE - The Settlement Value is the amount paid to
a member holding either a Short or Long Variable Payout Hedgelet Contract on
Settlement Date. The Settlement Value of a Variable Hedgelet Contract will range
between $0 and $4025, depending on where the Underlying closes in relation to the
Variable Hedgelet’s pre-defined Cap and Floor.

(n) - (0) [unchanged]
RULE 12.49 NAR SAN FRANCISCO VARIABLE PAYOUT CONTRACTS
(a) -(e) [unchanged]

(f) PAYOUT CRITERION ~ The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Variable Payout Contracts are initially issued.
For the Variable Payout Hedgelet Contract, the Payout Criteria for the Contracts
will be set as follows;

(i) QUARTERLY VARIABLE PAYOUT NAR SAN
FRANCISCO CONTRACTS

(1) CAP - The Cap shall be X + $40,000.
(2) FLOOR — The Floor shall be X.
(3) DOLLAR MULTIPLIER — The Dollar Multiplier shall be 0.001.

(4) In each case, “X” equals the last Expiration Value of the
Preliminary NAR San Francisco Housing Price rounded to the nearest five-thousand
dollars ($5,000) as reported by the Source Agency.

1825 8, Grant Street

Suite $00

San Mateo, CA 94402,

Tel: 650.638.3500
www-hedgestreet.com Fax: 650.638.3501


Exhibit A

HEDGE
Street

EXHIBIT A

Amendment to Rules 12.44(f)(ii), (m), 12.45(f)(ii), (m), 12.46(f)(ii), (m),
12.47(f(ii), (m), 12.48(f(ii), (m), 12.49(f)(ii), (m)

(The following new Rule additions are underlined and deletions are stricken out)

RULE 12.44 NAR CHICAGO VARIABLE PAYOUT HEDGELETS
(a) - (e) [unchanged]

(f) PAYOUT CRITERION - The Payout Criterion for each Contract will be
set by HedgeStreet at the time the Variable Payout Contracts are initially issued.
For the Variable Payout Hedgelet Contract, the Payout Criteria for the Contracts
will be set as follows;

(i) QUARTERLY VARIABLE PAYOUT NAR CHICAGO
CONTRACTS

(1) CAP — The Cap shall be X + $20,000.
(2) FLOOR — The Floor shall be X.
(3) DOLLAR MULTIPLIER — The Dollar Multiplier shall be 0.001.

(4) In each case, “X” equals the last Expiration Value of the
Preliminary NAR Chicago Housing Price rounded to the nearest five-thousand
dollars ($5,000) as reported by the Source Agency.

BI INUAL RIABLEPAYOUTN CHICAGO
CONTRACTS,

(1) GAP—Fhe- Cap-shall be-X+ $25,000,
(2) FLOOR—Fhe Floor shall be Xx,
(3) DOLLAR MULFIPLIER—FheDellar Multiplier shalt be-0.001

Va} fthe

of Geese alte lee ee

Proliminary NAR -Chicage Housing Pri ded-te-th + five-th d
dellars1$5-000) sted-bythe S A
{HPT} Pt 'y BeRey:

ii-(ii) [except for renumbering, this rule is unchanged]

1825 S. Grant Street

Suite 500

San Mateo, CA 94402

Tel: 650.638.3500
www.hedgestreet.com Fax: 650.638.3501


Exhibit A

HEDGE
Street

(g) - (1) [unchanged]

(m) SETTLEMENT VALUE - The Settlement Value is the amount paid
to a member holding either a Short or Long Variable Payout Hedgelet Contract on
Settlement Date. The Settlement Value of a Variable Hedgelet Contract will range
between $0 and $4020, depending on where the Underlying closes in relation to the
Variable Hedgelet’s pre-defined Cap and Floor.

(n) - (0) [unchanged]
RULE 12.45 NAR LOS ANGELES VARIABLE PAYOUT CONTRACTS.
(a) - (e) [unchanged]

(f) PAYOUT CRITERION — The Payout Criterion for each Contract will
be set by HedgeStreet at the time the Variable Payout Contracts are initially issued.
For the Variable Payout Hedgelet Contract, the Payout Criteria for the Contracts
will be set as follows;

(i) QUARTERLY VARIABLE PAYOUT NAR LOS,
ANGELES CONTRACTS

(1) CAP — The Cap shall be X + $30,000.
(2) FLOOR — The Floor shall be X.
(3) DOLLAR MULTIPLIER - The Dollar Multiplier shall be 0.001.

(4) In each case, ““X” equals the last Expiration Value of the
Preliminary NAR Los Angeles Housing Price rounded to the nearest five-thousand
dollars ($5,000) as reported by the Source Agency.

i) BL_ANNUAL VARIABLE PAVOUTNAR LOS
ANGELES CONTRACTS

(1) CAR—Fhe-Gap-shall be X+ $50,000.
(2) FLOOR—Fhe Fleer shall be,

(3) DOLLAR MULFIPLIER—The Dollar Multiplier shall be-0.001

1825 S. Grant Street

Suite $00

‘San Mateo, CA 94402

Tel: 650.638.3500
www.hedgestreet.com Fax: 650.638.3501