Pre-Effective Amendment to Registration of Securities Issued in a Business-Combination Transaction — Form S-4
Filing Table of Contents
Document/Exhibit Description Pages Size
1: S-4/A Amendment No. 11 to Form S-4 HTML 3.20M
2: EX-4.1 Rules and Regulations of the Not-For-Profit Board 553 2.33M
of Trade
3: EX-4.2 Form of Rules and Regulations of the For-Profit 557 2.34M
Board of Trade
4: EX-5 Form of Opinion of Morris, Nichols, Arsht & 3 18K
Tunnell
5: EX-8.1 Form of Opinion of Kirkland & Ellis HTML 10K
6: EX-23.1 Consent of Deloitte & Touche LLP. HTML 9K
7: EX-23.4 Consent of Cbiz Valuation Group, Inc. HTML 8K
8: EX-99.1 Form of Proxy Card HTML 15K
9: EX-99.4 Letter From Abn Amro Financial Services, Inc. HTML 8K
10: EX-99.5 Opinion of Cbiz Valuation Group, Inc., Dated HTML 22K
August 12, 2004
EX-4.2 — Form of Rules and Regulations of the For-Profit Board of Trade
Exhibit Table of Contents
Exhibit 4.2
FORM OF
CHARTER, BYLAWS, RULES AND
REGULATIONS
OF THE
CHICAGO
BOARD OF TRADE
[GRAPHIC OMITTED]
As of , 2005
Copyright Board of Trade of the City of Chicago, Inc. 2004
ALL RIGHTS RESERVED
_____ _, 2004
AMENDMENTS TO THE CHARTER, BYLAWS, RULES AND REGULATIONS
--------------------------------------------------------
OF THE BOARD OF TRADE OF THE CITY OF CHICAGO, INC.
--------------------------------------------------
Changes from ________ 1, 2005 to _____ 1, 2005
----------------------------------------------
Charter
-------
Amended and Restated Certificate of Incorporation (Effective ______, 2005)
Bylaws
------
Amended and Restated Bylaws (Effective ______, 2005)
Rules and Regulations
---------------------
Amended and Restated Rules and Regulations (Effective ______, 2005)
Chicago Board of Trade Charter, Bylaws, Rules & Regulations
Table of Contents
.........
Copyright
Charter
Bylaws
Rules & Regulations
Chapter 1 - Government
Chapter 2 - Membership
Chapter 3 - Exchange Floor Operations and Procedures
Chapter 4 - Futures Commission Merchant
Chapter 5 - Disciplinary Proceedings
Chapter 6 - Arbitration of Member Controversies
Chapter 7 - Clearing
Chapter 9 - Definitions
*Chapter 9a - Trading Links
Chapter 9b - e-cbot
Chapter 10 - Grains
Chapter 10c - Corn Futures
Chapter 10mc - CBOT mini-sized Corn Futures
Chapter 10s - Soybean Futures
Chapter 10ms - CBOT mini-sized Soybean Futures
Chapter 10mw - CBOT mini-sized Wheat Futures
Chapter 11 - Soybean Oil
Chapter 12 - Soybean Meal
Chapter 13 - Oats Futures Options
Chapter 14 - CBOT 5,000 OZ. Silver Futures
Chapter m14 - mini-sized Silver Futures
Chapter 15 - CBOT 100 OZ. Gold Futures
Chapter m15 - mini-sized Gold Futures
Chapter 18 - U.S. Treasury Bonds
Chapter m18 - mini-sized U.S. Treasury Bonds
Chapter 19 - 10-Year Municipal Note Index Futures
*Chapter 20 - X-Fund Futures
Chapter 21 - 30-Day Fed Fund Futures
Chapter 22 - 30-Day Fed Fund Futures Options
Chapter 23 - Short Term U.S. T-Notes (2-Year)
Chapter 24 - Long Term T-Notes (6 1/2-10 Year)
Chapter 25 - Medium Term U.S. Treasury Notes (5 Year)
Chapter 26 - mini-sized Eurodollar Futures
Chapter 27a - (Standard Options) Long Term Treasury Note Futures Options
Chapter 27b - (Flexible Options) Long Term Treasury Note Flexible Options
Chapter 28a - (Standard Options) T-Bond Futures Options
Chapter 28b - (Flexible Options) Treasury Bond Flexible Options
Chapter 29 - Soybean Futures Options
------------------------------------
Chapter 30 - Corn Futures Options
---------------------------------
Chapter 31 - Wheat Futures Options
----------------------------------
Chapter 32 - Soybean Oil Futures Options
----------------------------------------
Chapter 33 - Soybean Meal Futures Options
-----------------------------------------
Chapter 35a - (Standard Options) Medium Term U.S. Treasury Note Futures
-----------------------------------------------------------------------
Options
-------
Chapter 35b - (Flexible Options) Medium Term Treasury Note Flexible Options
---------------------------------------------------------------------------
Chapter 36a - (Standard Options) Short Term U.S. Treasury Note Futures
----------------------------------------------------------------------
Options
-------
Chapter 36b - (Flexible Options) Short Term Treasury Note Flexible Options
--------------------------------------------------------------------------
Chapter 37 - CBOT Rough Rice Futures
------------------------------------
Chapter 38 - CBOT Rough Rice Options
------------------------------------
Chapter 39 - Bund Futures
-------------------------
Chapter 40 - Bobl Futures
-------------------------
Chapter 41 - Schatz Futures
---------------------------
Chapter 43 - CBOT Dow Jones Industrial Average Index Futures
------------------------------------------------------------
Chapter 44 - CBOT Dow Jones Industrial Average Index Futures Options
--------------------------------------------------------------------
Chapter 49 - 10-Year Interest Rate Swap Futures
-----------------------------------------------
Chapter 50 - 10-Year Interest Rate Swap Futures Options
-------------------------------------------------------
Chapter 51 - 5-Year Interest Rate Swap Futures
----------------------------------------------
Chapter 52 - 5-Year Interest Rate Swap Futures Options
------------------------------------------------------
Chapter 53 - CBOT mini-sized Dow Futures ($5 Multiplier)
--------------------------------------------------------
Chapter 54 - CBOT mini-sized Dow Futures Options
------------------------------------------------
Chapter 56 - CBOT Dow Jones -
-----------------------------------
AIG Commodity Index Futures
---------------------------
Appendices
1. Reserved
-----------
2. Summary of Membership Privileges
-----------------------------------
3. Exchange Floor Operations and Procedures
-------------------------------------------
A. Guidelines for Guests and Visitors
-------------------------------------
While on the Exchange Floor of the Chicago Board of Trade
---------------------------------------------------------
B. Instructions for Floor Clerk Access
---------------------------------------
to the Floor of the Board of Trade of the City of Chicago
---------------------------------------------------------
C. Dress Code
-------------
D. Pit Openings and Closings
----------------------------
E. Contract Month Symbols
-------------------------
F. Reserved
-----------
G. Guidelines - Badge Validation and Return
-------------------------------------------
4. Futures Commission Merchants
-------------------------------
A. Exchange Transaction Fee Schedule
------------------------------------
B. Procedures for Relief Requests/Financial Requirements
--------------------------------------------------------
C. Reserved
-----------
D. Reserved
-----------
E. Financial Requirements for Agricultural Regularity
-----------------------------------------------------
F. Letter of Credit Standards for Corn & Soybeans
-------------------------------------------------
G. Letter of Credit Standards for Agricultural Products
-------------------------------------------------------
H. Bond Standards for Agricultural Products
-------------------------------------------
5. Reserved
-----------
6. Arbitration Fees
-------------------
A. Member Claims
----------------
B. Non-Member Claims
--------------------
7.-9. Reserved
--------------
9B-1. LIFFE Core Network Acceptable Use Policy
9B-2. e-cbot Error Trade Policy
9B-3. Tick Breakdown Per CBOT Contract
9B-4. Example of Autoleg Error
10. Grains
----------
A. Regular Warehousemen
-----------------------
- Chicago and Burns Harbor Switching Districts
-----------------------------------------------
B. Regular Warehousemen
-----------------------
- St. Louis-East St. Louis and Alton Switching Districts
--------------------------------------------------------
C. Regular Warehousemen
-----------------------
- Minneapolis and St. Paul Switching Districts
-----------------------------------------------
D. Regular Warehousemen
-----------------------
- Toledo, Ohio Switching District
---------------------------------
E. Reserved
-----------
F. Reciprocal Switching Charges
-------------------------------
within Chicago, IL and Burns Harbor, IN
---------------------------------------
G. Grain Load-Out Procedures
----------------------------
10C(A). Corn and Soybean Shipping Stations
------------------------------------------
10S(A). Soybean Only Shipping Stations
--------------------------------------
11. Soybean Oil
---------------
A. Regular Shippers
-------------------
B. Differentials
----------------
12. Soybean Meal
----------------
A. Regular Shippers
-------------------
B. Differentials
----------------
13. Reserved
------------
14. 5,000 oz Silver
-------------------
A. Approved Brands
------------------
B. Depositories & Assayers
--------------------------
m14. mini-sized Silver
----------------------
A. Approved Brands
------------------
B. Depositories & Assayers
--------------------------
15.100 oz. Gold
----------------
A. Approved Brands
------------------
B. Depositories & Assayers
--------------------------
m15. mini-sized Gold
--------------------
A. Approved Brands
------------------
B. Depositories & Assayers
--------------------------
16-36. Reserved
---------------
37. Rough Rice
--------------
A. Reserved
-----------
B. Rough Rice Regular Warehouses Delivery Differentials
-------------------------------------------------------
C. Definitions
--------------
D. Minimum Financial Requirements for Rough Rice Regularity
-----------------------------------------------------------
FORM OF AMENDED AND RESTATED
CERTIFICATE OF INCORPORATION
OF
BOARD OF TRADE OF THE
CITY OF CHICAGO, INC.
(Originally incorporated in the State of Delaware under the name
Delaware CBOT, Inc. on May 12, 2000)
ARTICLE I
NAME
The name of the corporation is Board of Trade of the City of Chicago, Inc.
(hereinafter referred to as the "Corporation").
ARTICLE II
REGISTERED AGENT
The address of the registered office of the Corporation in the State of
Delaware is 9 Loockerman Street, in the City of Dover, County of Kent, Delaware
19901. The name of the registered agent of the Corporation at such address is
National Registered Agents, Inc.
ARTICLE III
CORPORATE PURPOSES
The nature of the business or purposes to be conducted or promoted by the
Corporation are to engage in any lawful act or activity for which corporations
may be organized under the Delaware General Corporation Law (as amended from
time to time, the "DGCL").
ARTICLE IV
MEMBERSHIP
A. General.
The Corporation shall have no authority to issue capital stock. The terms
and conditions of membership in the Corporation shall be as provided in or
pursuant to this Certificate of Incorporation and the Bylaws of the Corporation
which incorporate by reference the Rules and Regulations (collectively, the
"Rules") of the Corporation (the "Bylaws"), which shall be part of the Bylaws
in all respects.
B. Classes and Series of Membership.
Membership in the Corporation shall be divided into classes and series as
set forth in this Article IV.
1. Class A Membership.
There shall be one Class A Membership in the Corporation (the "Class A
Membership" and the holder thereof, the "Class A Member"), which Class A
Membership shall be held by CBOT Holdings, Inc., a Delaware corporation ("CBOT
Holdings"). It shall be a term and condition of such Class A Membership that
such membership may not be transferred to or held by any person or entity other
than CBOT Holdings unless authorized by an amendment to this Section B(1)) of
Article IV. Except to the extent (if any) expressly provided herein or required
by law, the Class A Member shall have the right to vote on any matter to be
voted on by the members of the Corporation other than on those matters
expressly reserved to the vote of the holders of Series B-1 Memberships and
Series B-2 Memberships (each as defined in Section B(2) of this Article IV) and
shall have the exclusive right to receive any dividend or other distribution
(including upon liquidation, dissolution,
winding-up or otherwise) to be declared, paid or distributed by the Corporation
(except as provided in Section B(2) of this Article IV), and no other member of
or class or series of membership in the Corporation shall be entitled to vote
on any matter except as set forth below or to receive any such dividend or
other distribution (except as provided in Section B(2) of this Article IV). In
addition to those general voting rights of the Class A Membership set forth in
this Section B(1) of this Article IV, the affirmative vote of the Class A
Membership shall be required to permit the Corporation to approve, in one
transaction or in a series of related transactions: (a) any merger or
consolidation of the Corporation with or into another entity, (b) any purchase
by, investment in, or other acquisition or formation by the Corporation of any
business or assets which are, or are intended to be, competitive, as determined
by the board of directors of the Corporation (the "Board of Directors") in its
sole and absolute discretion, with the business conducted or proposed to be
conducted at such time by the Corporation, (c) any sale (or other transfer) to
an unaffiliated third party of assets of the Corporation that constitute a
significant amount of the total assets of the Corporation, or (d) any
dissolution or liquidation of the Corporation. For purposes of clause (c) of
the foregoing provision, a significant amount of the total assets of
the Corporation shall mean 10% of the fair market value of the assets, both
tangible and intangible, of the Corporation as of the time of the approval by
the Board of Directors of the proposed sale (or other transfer), as determined
by the Board of Directors in its sole and absolute discretion.
2. Class B Membership.
(a) Class B Memberships in the Corporation (each a "Class B Membership" and
the holder thereof, a "Class B Member") shall represent the right to trade on
and otherwise utilize the facilities of the Corporation in accordance with and
to the extent permitted by this Certificate of Incorporation, the Bylaws and
the Rules. There shall be authorized three thousand six hundred seventy-nine
(3,679) Class B Memberships, which shall be divided into five (5) series
("Series") as follows:
1,402 Series B-1 Memberships (each, a "Series B-1 Membership" and the holder
thereof, a "Series B-1 Member");
867 Series B-2 Memberships (each, a "Series B-2 Membership" and the holder
thereof, a "Series B-2 Member");
126 Series B-3 Memberships (each, a "Series B-3 Membership" and the holder
thereof, a "Series B-3 Member");
641 Series B-4 Memberships (each, a "Series B-4 Membership" and the holder
thereof, a "Series B-4 Member"); and
643 Series B-5 Memberships (each, a "Series B-5 Membership" and the holder
thereof, a "Series B-5 Member");
(b) Notwithstanding Section (B)(2)(a) of this Article IV, (i) following the
issuance of memberships of the Corporation in the merger of the Corporation
with a subsidiary of CBOT Holdings (the "Merger") to be effected in connection
with the Restructuring (as defined in this Section (B)(2) of Article IV), the
Corporation may issue additional authorized but unissued Series B-2 Memberships
only in connection with the conversion of Series B-3 Memberships into Series
B-2 Memberships pursuant to Section (D)(3) of this Article IV and no person may
become or qualify as a Series B-2 Member following consummation of the Merger
at any time by acquiring a theretofore authorized but unissued Series B-2
Membership except as a result of such a conversion, and (ii) the Corporation
may issue authorized but unissued Series B-3 Memberships only pursuant to the
terms of the agreement and plan of merger relating to the Merger and no person
may become or qualify as a Series B-3 Member following consummation of the
Merger at any time by acquiring a theretofore authorized but unissued Series
B-3 Membership.
(c) Class B Memberships shall have no right to receive any dividend or other
distribution (including upon liquidation, dissolution, winding-up or otherwise)
to be declared, paid or distributed by the Corporation with the sole exception
of the dividend of shares of CBOT Holdings to be declared and paid in
connection with the restructuring of the Corporation and the creation of the
Class B Memberships (the "Restructuring"). The respective rights and privileges
of each Series of Class B Membership shall be as provided in or pursuant to
this Certificate of Incorporation, the Bylaws and the Rules.
C. Class B Voting Rights.
Except as otherwise expressly provided in this Certificate of Incorporation,
the holders of Class B Memberships shall not be entitled to vote on any matter.
On any matter on which the holders of Series B-1 Memberships and Series B-2
Memberships are entitled to vote together as a single class pursuant to this
Certificate of Incorporation, each holder of Series B-1 Memberships shall be
entitled to one (1) vote per such membership and each holder of Series B-2
Memberships shall be entitled to one-sixth ( 1/6) of one (1) vote per such
membership.
D. Special Rights of Class B Membership.
The holders of each Series of Class B Membership shall have the trading
rights and other rights and privileges, and shall be subject to the
restrictions, terms and conditions, set forth below.
1. Series Trading Rights.
(a) Series B-1 Memberships. Each holder of a Series B-1 Membership who
satisfies the qualifications for and requirements of Full Membership in the
Corporation as set forth in the Rules shall be entitled to the rights and
privileges of, and shall be subject to the restrictions, conditions and
limitations on, a Full Member as set forth in this Certificate of
Incorporation, the Bylaws and the Rules.
(b) Series B-2 Memberships. Each holder of a Series B-2 Membership who
satisfies the qualifications for and requirements of Associate Membership in
the Corporation as set forth in the Rules shall be entitled to the rights
and privileges of, and shall be subject to the restrictions, conditions and
limitations on, an Associate Member as set forth in this Certificate of
Incorporation, the Bylaws and the Rules.
(c) Series B-3 Memberships. (1) Each holder of a Series B-3
Membership who satisfies the qualifications for and requirements of being a
holder of a one-half Associate Membership as set forth in clause (2) of Rule
296.00 of the Rules shall be entitled to the rights and privileges of, and
subject to the restrictions, conditions and limitations on, a holder of a
one-half Associate Membership as set forth in the Certificate of
Incorporation, the Bylaws and the Rules.
(2) Each holder of a Series B-3 Membership who satisfies the
qualifications for and requirements of being a holder of a GIM Membership
Interest in the Corporation as set forth in clause (1) of Rule 296.00 of the
Rules shall be entitled to the rights and privileges of, and shall be
subject to the restrictions, conditions and limitations on, a holder of a
GIM Membership Interest as set forth in this Certificate of Incorporation,
the Bylaws and the Rules.
(d) Series B-4 Memberships. Each holder of a Series B-4 Membership
who satisfies the qualifications for and requirements of being a holder of
an IDEM Membership Interest in the Corporation as set forth in the Rules
shall be entitled to the rights and privileges of, and shall be subject to
the restrictions, conditions and limitations on, a holder of an IDEM
Membership Interest as set forth in this Certificate of Incorporation, the
Bylaws and the Rules.
(e) Series B-5 Memberships. Each holder of a Series B-5 Membership
who satisfies the qualifications for and requirements of being a holder of a
COM Membership Interest in the Corporation as set forth in the Rules shall
be entitled to the rights and privileges of, and shall be subject to the
restrictions, conditions and limitations on, a holder of a COM Membership
Interest as set forth in this Certificate of Incorporation, the Bylaws and
the Rules.
(f) In addition to the rights and privileges set forth above, except
as otherwise provided in the Certificate of Incorporation, the Bylaws or the
Rules, each holder of a Class B Membership of any Series shall be entitled
to all trading rights and privileges with respect to those products that
such holder is entitled to trade on the open outcry exchange system of the
Corporation or any electronic trading system maintained by the Corporation
or any of its affiliates or any of their respective successors or
successors-in-interest.
2. Series B-1 Membership and B-2 Membership Voting Rights.
(a) In addition to any approval of the Board of Directors required by
this Certificate of Incorporation, the Bylaws or applicable law, the
affirmative vote of the holders of a majority of the votes cast by the
holders of Series B-1 Memberships and Series B-2 Memberships, voting
together as a class based on their respective voting rights at any annual or
special meeting of the Corporation, shall be required to adopt any amendment
to this Certificate of Incorporation.
(b) In addition to any approval of the Board of Directors required by
this Certificate of Incorporation, the Bylaws or applicable law, the
affirmative vote of the holders of a majority of the votes cast, except in
the case of paragraph (4) below, by the holders of Series B-1 Memberships
and Series B-2 Memberships, voting together as a class based on their
respective voting rights at any annual or special meeting of the
Corporation, shall be required to adopt any amendment to the Bylaws or the
Rules that, in the sole and absolute determination of the Board of
Directors, adversely affects:
(1) the allocation of products that a holder of a specific Series of
Class B Membership is permitted to trade on the exchange facilities of the
Corporation (including both the open outcry trading system and the
electronic trading system),
(2) the requirement that, except as provided in that certain Agreement,
dated August 7, 2001, between the Corporation and the Chicago Board Options
Exchange (the "CBOE"), as modified by those certain Letter Agreements, dated
October 7, 2004 and February , 2005, between the Corporation, CBOT
Holdings and the CBOE, in each case, as may be amended from time to time in
accordance with their respective terms, holders of Class B Memberships who
meet the applicable membership and eligibility requirements will be charged
transaction fees for trades of the Corporation's products for their accounts
that are lower than the transaction fees charged to any participant who is
not a holder of Class B Membership for the same products, whether trading
utilizing the open outcry trading system or the electronic trading system,
(3) the membership qualifications or eligibility requirements for
holding any Series of Class B Membership or exercising any of the membership
rights and privileges associated with such Series,
(4) the commitment to maintain open outcry markets set forth in Section
F of Article IV of this Certificate of Incorporation, which must be approved
by a majority of the voting power of the outstanding Series B-1 Memberships
and Series B-2 Members, voting together as a class based on their respective
voting rights at any annual or special meeting of the Corporation, or
(5) the requirement that any proposal to offer electronic trading
between the hours of 6:00 a.m., Central Time, and 6:00 p.m., Central Time,
of agricultural contracts or agricultural products currently traded on the
Corporation's open outcry markets be approved by the holders of the Series
B-1 Memberships and Series B-2 Memberships, voting together as a class based
on their respective voting rights at any annual or special meeting of the
Corporation.
For purposes of Section D(2)(b)(1) of Article IV, the allocation of products
that the holders of any Series of Class B Membership are permitted to trade on
the exchange facilities of the Corporation shall be deemed to be adversely
affected only if a product is eliminated from the allocation of products the
holders of a particular Series of Class B Memberships are permitted to trade.
(c) In addition to their right to vote on the matters specified in the
preceding paragraph (a), holders of Series B-1 Memberships and Series B-2
Memberships shall also be entitled, at any annual or special meeting of
members, to (i) adopt, repeal or amend the Bylaws of the Corporation, or
(ii) make non-binding recommendations that the Board of Directors of the
Corporation consider proposals that require the approval of the Board of
Directors, including recommendations that the board consider a specific
proposal, in each case subject to such requirements and conditions for the
initiation of proposals by members as may be stated in this Certificate of
Incorporation or in the Bylaws. Any proposal brought pursuant to Section
D(2)(c) of this Article IV shall require the affirmative vote of the holders
of a majority of the votes cast by the holders of Series B-1 Memberships and
Series B-2 Memberships, voting together as a single class based on their
respective voting rights at any annual or special meeting of the Corporation.
(d) On any matter on which holders of Series B-1 Memberships and Series
B-2 Memberships are entitled to vote pursuant to paragraphs (a), (b) and (c)
of this Section D(2) of Article IV, such holders of Series B-1 Memberships
and Series B-2 Memberships shall be the only members of the Corporation
entitled to vote thereon. Holders of Series B-1 Memberships and Series B-2
Memberships shall have no other voting rights except as expressly set forth
herein and shall not have the right to take action by written consent in
lieu of a meeting. One-third of the total voting power of the Series B-1
Memberships and Series B-2 Memberships present in person or by proxy shall
constitute a quorum at any meeting to take action on the matters as to which
such holders are entitled to vote pursuant to paragraphs (a), (b) and (c) of
Section (D)(2) of this Article IV. Series B-3 Memberships, Series B-4
Memberships and Series B-5 Memberships shall have no right to vote on any
matters or to initiate any proposals at or for any meeting of members. For
purposes of any vote of the holders of Series B-1 Memberships and Series B-2
Memberships permitted by this Certificate of Incorporation, the Board of
Directors shall be entitled to fix a record date, and only holders of record
as of such record date shall be entitled to vote on the matter to be voted
on.
3. Conversion Rights of Series B-3 Memberships.
(a) Conversion. Subject to, and upon compliance with, the provisions of
this Section D(3) of Article IV, any two (2) Series B-3 Memberships shall be
convertible at the option of the holder into one (1) Series B-2 Membership.
(b) Mechanics of Conversion. A holder of Series B-3 Memberships may
exercise the conversion right specified in Section D(3)(a) of Article IV by
delivering to the Corporation or any transfer agent of the Corporation
written notice stating that the holder elects to convert such memberships,
accompanied by the certificates or other instruments, if any, representing
the memberships to be converted. Conversion shall be deemed to have been
effected on the date when delivery of such written notice, accompanied by
such certificate or other instrument, if any, is made, and such date is
referred to herein as the Conversion Date. As promptly as practicable after
the Conversion Date, the Corporation may issue and deliver to or upon the
written order of such holder a certificate or other instrument, if any,
representing the number of Series B-2 Memberships to which such holder is
entitled as a result of the exercise of such conversion right. The person in
whose name the certificates or other instruments representing Series B-2
Memberships are to be issued shall be deemed to have become the holder of
record of such Series B-2 Memberships on the applicable Conversion Date.
(c) Memberships Reserved for Issuance. The Corporation shall take all
actions necessary to reserve and make available at all times for issuance
upon the conversion of Series B-3 Memberships, such number of Series B-2
Memberships as are issuable upon the conversion of all outstanding Series
B-3 Memberships.
E. Restriction on Transfer.
1. Except as otherwise provided in this Section E of Article IV, no Class B
Membership may be sold, transferred or otherwise disposed of (excluding any
hypothecation thereof) except (a) by operation of law, (b) in a bona fide
pledge to a commercial bank, a savings and loan institution or any other
lending or financial institution or any Class B Member or clearing member of
the CBOT Subsidiary as security for obligations of the holder incurred to
acquire a membership in the CBOT Subsidiary, or (c) in a transaction
consummated in connection with and conditioned upon the sale, transfer or
disposition of shares of Series A-1, Class A Common Stock of CBOT Holdings
("Series A-1 Common Stock"), Series A-2, Class A Common Stock of CBOT Holdings
("Series A-2 Common Stock") or Series A-3 Class A Common Stock of CBOT Holdings
("Series A-3 Common Stock," and together with Series A-1 Common Stock and the
Series A-2 Common Stock, the "Restricted Class A Common Stock"), that results
in the number of shares of Restricted Class A Common Stock associated with the
series of such Class B Membership, as set forth hereinafter in this Section E
of Article IV, being simultaneously sold, transferred or disposed of to the
same transferee of such Class B Membership. The number of shares of Common
Stock that must be sold, transferred or otherwise disposed of in accordance
with the preceding sentence is as follows: at least nine thousand one hundred
fourteen (9,114) shares of Series A-1 Common Stock, nine
thousand one hundred twelve (9,112) shares of Series A-2 Common Stock and
Series A-3 Common Stock with one (1) Series B-1 Membership; at least three
thousand three hundred thirty-four (3,334) shares of Series A-1 Common Stock,
three thousand three hundred thirty-three (3,333) shares of Series A-2 Common
Stock or three thousand three hundred thirty-three (3,333) shares of Series A-3
Common Stock with one (1) Series B-2 Membership; at least one thousand six
hundred sixty-eight (1,668) shares of Series A-1 Common Stock, one thousand six
hundred sixty-six (1,666) shares of Series A-2 Common Stock or one thousand six
hundred sixty-six (1,666) shares of Series A-3 Common Stock with one (1) Series
B-3 Membership; at least three hundred sixty-eight (368) shares of Series A-1
Common Stock, three hundred sixty-six (366) shares of Series A-2 Common Stock
or three hundred sixty-six (366) shares of Series A-3 Common Stock with one (1)
Series B-4 Membership; and at least eight hundred thirty-four (834) shares of
Series A-1 Common Stock, eight hundred thirty-three (833) shares of Series A-2
Common Stock or eight hundred thirty-three (833) shares of Series A-3 Common
Stock with one (1) Series B-5 Membership. Notwithstanding the foregoing, for
purposes of satisfying the requirements of this Section E(1) of Article IV, a
holder of Restricted Class A Common Stock shall not be obligated to sell,
transfer or dispose of any Class A Common Stock for which the applicable
transfer restrictions have expired in connection with the lapse of the
applicable transfer restriction period and have converted into unrestricted
Class A Common Stock.
2. The restrictions contained in this Section E of Article IV shall be terms
and conditions of membership in the Corporation and any purported sale,
transfer or other disposition of a Class B Membership not in accordance with
this Section E of Article IV shall be void and shall not be recorded on the
books of or otherwise recognized by the Corporation.
3. Upon the Second Approval (as defined in the Certificate of Incorporation
of CBOT Holdings), the reciprocal restrictions on transfer described in Section
E(1) above will terminate and Class B Memberships will thereafter be
transferable without the applicable Series A-1 Common Stock, Series A-2 Common
Stock and Series A-3 Common Stock, subject to any applicable membership
requirements of the Corporation and any other restrictions imposed by the
Bylaws, Rules and Regulations or applicable law.
F. Commitment to Maintain Open Outcry Markets. Subject to the terms and
conditions of this Section F of Article IV, the Corporation shall maintain open
outcry markets operating as of the effective date of the amendment and
restatement of this Certificate of Incorporation creating Class B Memberships
(the "Effective Date") and provide financial support to each such market for
technology, marketing and research, which the Board of Directors determines, in
its sole and absolute discretion, is reasonably necessary to maintain each such
open outcry market.
Notwithstanding the foregoing or any other provision of this Certificate of
Incorporation, the Board of Directors may discontinue any open outcry market at
such time and in such manner as it may determine if (1) the Board of Directors
determines, in its sole and absolute discretion, that a market is no longer
"liquid" or (2) the holders of a majority of the voting power of the then
outstanding Series B-1 Memberships and Series B-2 Memberships, voting together
as a single class based on their respective voting rights, approve the
discontinuance of such open outcry market.
For purposes of the foregoing, an open outcry market will be deemed "liquid"
for so long as it meets either of the following tests, in each case as measured
on a quarterly basis:
(a) if a comparable exchange-traded product exists, the open outcry
market has maintained at least 30 percent (30%) of the average daily volume
of such comparable product (including for calculation purposes, volume from
Exchange-For-Physicals transactions in such open outcry market); or
(b) if no comparable exchange-traded product exists, the open outcry
market has maintained at least 40 percent (40%) of the average quarterly
volume in that market as maintained by the Corporation in 2001 (including,
for calculation purposes, volume from Exchange-For-Physicals transactions in
such open outcry market).
The commitment to maintain open outcry markets set forth in this Section F
of Article IV will not apply to markets introduced after the Effective Date.
ARTICLE V
MANAGEMENT OF AFFAIRS
The following provisions are inserted for the management of the business and
the conduct of the affairs of the Corporation, and for further definition,
limitation and regulation of the powers of the Corporation and of its directors
and stockholders:
A. In accordance with Sections 141(a) and 141(j) of the DGCL, the
business and affairs of the Corporation shall be managed by or under the
direction of the Board of Directors, the composition of which shall be as
set forth in Article VI of this Certificate of Incorporation. In addition to
the powers and authority expressly conferred upon them by statute or by this
Certificate of Incorporation, the Bylaws or the Rules, the directors are
hereby empowered to exercise all powers and do all acts and things as may be
exercised or done by the Corporation.
B. A special meeting of members shall be called by the Chairman of the
Board or the Board of Directors upon receipt by the Chairman of the Board or
the Secretary of the Corporation of a written demand of the holders of
Series B-1 Memberships and Series B-2 Memberships entitled to cast 10% of
the total number of votes entitled to be cast at such meeting. Any such
written demand shall specify the purpose of such special meeting and the
special meeting so called shall be limited to the purpose so set forth. The
written demand shall also specify the date of such special meeting that
shall be a business day not less than ten (10) nor more than sixty (60) days
from the date of such written demand. The purpose of any special meeting
shall be stated in the notice thereof.
C. Any action required or permitted to be taken by the members of the
Corporation must be effected at a duly called annual or special meeting of
members of the Corporation and may not be effected by any consent in writing
by such members, provided that the Class A Member shall have the right to
effect by consent in writing any action which would require the approval of
the Class A Member at a duly called annual or special meeting of the members
of the Corporation.
ARTICLE VI
BOARD OF DIRECTORS
A. Designation of Directors Prior to a Qualified Initial Public Offering.
After the Effective Date but prior to a Qualified Initial Public Offering (as
defined in the Certificate of Incorporation of CBOT Holdings), the members of
the Board of Directors of the Corporation shall not be elected by the members
of the Corporation but, rather, shall be those persons who are serving as
directors of CBOT Holdings from time to time; such persons shall automatically
become directors of the Corporation if they are directors of CBOT Holdings, and
shall automatically cease to be directors of the Corporation if they cease to
be directors of CBOT Holdings. The Chairman of the Board of CBOT Holdings
shall, whenever he or she is serving as a member of the Board of Directors, be
Chairman of the Board of Directors and the Vice Chairman of the Board of CBOT
Holdings shall, whenever he or she is serving as a member of the Board of
Directors, be Vice Chairman of the Board of Directors. Pursuant to Section
141(a) of the DGCL, the person appointed to serve as President and Chief
Executive Officer of CBOT Holdings shall, whenever he or she is serving as a
member of the Board of Directors, not be entitled to any voting rights held by
other directors.
B. Designation and Election of Directors Following a Qualified Initial
Public Offering. Following a Qualified Initial Public Offering (as defined in
the Certificate of Incorporation of CBOT Holdings), the Board of Directors will
be reconstituted such that it is composed of seventeen directors and classified
into two classes of nine and eight directors, respectively, each elected to
serve for two-year terms. There will be eleven directors designated as "Parent
Directors" and six directors designated as "Subsidiary Directors." Upon
election or appointment as Parent Directors of CBOT Holdings, the Parent
Directors shall automatically become members of the Board of Directors and
shall continue to hold such directorships for so long as they remain members of
the board of directors of CBOT Holdings. The Subsidiary Directors shall be
elected by the holders of Series B-1 Memberships ("Series B-1 Members") and the
holders of Series B-2 Memberships ("Series B-2 Members"), voting together as a
class based on their respective voting rights, beginning with the first annual
election following a Qualified Initial Public Offering for two-year terms. The
following qualifications for Subsidiary Directors shall apply: four directors,
on the date of their first nomination or selection as nominees for the Board of
Directors, shall be Series B-1 Members and shall satisfy the qualifications for
and requirements of the applicable class and series of membership as set forth
in the Bylaws, Rules and Regulations and two directors, on the date of their
first nomination or selection as nominees for the Board of Directors, shall be
Series B-2 Members and shall satisfy the qualifications for and requirements of
the applicable class and series of membership as set forth in the Bylaws, Rules
and Regulations. The Chairman of the Board of CBOT Holdings shall, whenever he
or she is serving as a member of the Board of Directors, be Chairman of the
Board of Directors and the Vice Chairman of the Board of CBOT Holdings shall,
whenever he or she is serving as a member of the Board of Directors, be Vice
Chairman of the Board of Directors. The President and Chief Executive Officer
of CBOT Holdings shall, whenever he or she is serving as a member of the Board
of Directors, be entitled to the same voting rights held by other directors.
ARTICLE VII
NOMINATING COMMITTEE
Following a Qualified Initial Public Offering (as defined in the Certificate
of Incorporation of CBOT Holdings), the Corporation shall maintain an elected
nominating committee (the "Nominating Committee'), which shall receive
proposals from the holders of Series B-1 Memberships and Series B-2
Memberships, review the qualifications of proposed individuals and such other
individuals as the Nominating Committee may from time to time select, and
advise the Board of Directors of the Corporation as to its recommendations for
the nomination of individuals to serve as directors of the Corporation or as
members of the Nominating Committee. The members of the Nominating Committee
shall be subject to the qualifications set forth below in Section A of Article
VII.
A. Composition. The Nominating Committee shall be composed of five persons,
including (a) four persons who shall, on the date of their first nomination or
selection as nominees for election to the Nominating Committee, be Series B-1
Members and (b) one person who shall, on the date of his or her first
nomination or selection as a nominee for election to the Nominating Committee,
be a Series B-2 Member. Any member of the Nominating Committee who, at any time
during his or her term of office, fails to continue to satisfy the
qualifications under which he or she was last elected to the Nominating
Committee shall thereupon cease to be qualified to serve as a member of the
Nominating Committee and the term of office of such person on such committee
shall automatically end.
B. Election. Immediately following a Qualified Initial Public Offering, the
Nominating Committee shall be composed of the five persons who served on the
Nominating Committee of CBOT Holdings immediately prior to the Qualified
Initial Public Offering. Subject to Section E of Article VII, all such persons
shall serve until the end of the term for which they were elected or appointed.
Upon expiration of such terms, members of the Nominating Committee shall be
elected by Series B-1 Members and Series B-2 Members, voting together as a
single class according to their respective voting power, for a term of three
years.
C. Organization. The Nominating Committee shall elect its own chairman, who
for so long as he or she serves in such capacity shall at all times be a Series
B-1 Member.
D. Term Limits. Members of the Nominating Committee may not be elected or
appointed to serve again as a member of the Nominating Committee until the
third annual meeting following the annual meeting at which his or her term
ended. However, there is no other limit to the number of terms a member of the
Nominating Committee may serve.
E. Removal; Vacancies. Members of the Nominating Committee may be removed by
a majority of the Series B-1 Members and Series B-2 Members, voting together as
a class based on their respective voting rights, with or without cause. Any
vacancies in the Nominating Committee shall be filled by the Board of Directors
of the Corporation, and members so chosen shall hold their position for a term
expiring at the next annual meeting of the members of the Corporation.
ARTICLE VIII
AMENDMENT OF BYLAWS
The Board of Directors is expressly empowered to adopt, amend or repeal the
Bylaws of the Corporation, provided that any change to the matters set forth in
Section D(2)(b) of Article IV shall also require the approval of holders of
Series B-1 Memberships and Series B-2 Memberships as specified therein. The
Series B-1 Members and Series B-2 Members shall also have power to adopt, amend
or repeal the Bylaws. The only members of the Corporation with any power to
adopt, amend or repeal the Bylaws or the Rules of the Corporation shall be the
Series B-1 Members and Series B-2 Members, as set forth in Section (D)(2) of
Article IV of this Certificate of Incorporation, and no other member of, or
class or series of membership in, the Corporation shall have any such power.
ARTICLE IX
LIMITATION OF LIABILITY
A director of the Corporation shall not be personally liable to the
Corporation or its members for monetary damages for breach of fiduciary duty as
a director, except for liability (A) for any breach of the director's duty of
loyalty to the Corporation or its members, (B) for acts or omissions not in
good faith or which involve intentional misconduct or a knowing violation of
law, (C) under Section 174 of the DGCL, or (iv) for any transaction from which
the director derived an improper personal benefit. If the DGCL is amended to
authorize corporate action further eliminating or limiting the personal
liability of directors, then the liability of a director of the Corporation
shall be eliminated or limited to the fullest extent permitted by the DGCL, as
so amended.
Any repeal or modification of the foregoing paragraph shall not adversely
affect any right or protection of a director of the Corporation existing at the
time of such repeal or modification. For purposes of this Article IX, the term
"director" shall, to the fullest extent permitted by the DGCL, include any
person who, pursuant to this Certificate of Incorporation, is authorized to
exercise or perform any of the powers or duties otherwise conferred upon a
board of directors by the DGCL.
ARTICLE X
AMENDMENT OF CERTIFICATE OF INCORPORATION
The Corporation reserves the right to amend or repeal any provision
contained in this Certificate of Incorporation in the manner prescribed by the
laws of the State of Delaware, and all rights conferred upon the members of the
Corporation are granted subject to this reservation. Any amendment of, or
repeal of any provision contained in, this Certificate of Incorporation shall
require, first, the approval of the Board of Directors and, second, the
approval of the Series B-1 Members and Series B-2 Members, voting together as a
class based on their respective voting rights. No other Members or Membership
class shall be entitled to vote thereon and such amendment or repeal shall
require the approval of the holders of a majority of the votes cast on any such
properly presented proposal at any annual or special meeting of the members of
the Corporation.
* * * *
FORM OF AMENDED AND RESTATED BYLAWS
OF
BOARD OF TRADE OF THE
CITY OF CHICAGO, INC.
These Bylaws shall take effect at the effective time (the "Effective Time")
of the Amended and Restated Certificate of Incorporation (as amended from time
to time, the "Certificate of Incorporation") of Board of Trade of the City of
Chicago, Inc. (the "Corporation") to be filed with the Secretary of State of
the State of Delaware in connection with the merger of the Corporation and the
restructuring thereof (the "Restructuring") as described in the Registration
Statement filed with the Securities and Exchange Commission in connection with
the Restructuring; provided that, any limitation or restriction heretofore
contained in the Bylaws, Rules and Regulations of the Corporation with respect
to the rights of any holder of a Full Membership, Associate Membership,
one-half participation interest in an Associate Membership, which shall
constitute a membership in the Corporation of the same class as a GIM
Membership Interest, GIM Membership Interest, IDEM Membership Interest or COM
Membership Interest to receive the dividend to be declared and distributed in
connection with the Restructuring shall be and hereby is eliminated immediately
upon the adoption of these Bylaws and the holders of each of the foregoing
classes of membership shall be deemed to be members of the Corporation (of
their respective class) as that term is used in the Delaware General
Corporation Law (as amended from time to time, the "DGCL").
Capitalized terms used but not otherwise defined herein (including the
Rules) shall have the meaning given to such terms in the Certificate of
Incorporation.
ARTICLE I--RULES AND REGULATIONS
Section 1. Incorporation of Rules and Regulations.
In accordance with the Certificate of Incorporation of the Corporation, the
Rules and the Regulations, each as they may be amended from time to time, are
hereby incorporated by reference into and made part of these Bylaws. For
purposes of clarity, each reference to Full Memberships, Associate Memberships,
GIM Membership Interests, IDEM Membership Interests and COM Membership
Interests in the Rules and Regulations shall be deemed to refer to a Series
B-1, B-2, B-3, B-4 and B-5 Membership, respectively. In addition, each
reference to a one-half participation in an Associate Membership in the Rules
shall, unless the context indicates otherwise, be deemed to refer to a Series
B-3 Membership.
Section 2. Member Consent to Be Bound.
Applicants for membership and any person or entity holding any membership in
the Corporation shall be required to sign a written agreement to observe and be
bound by the Certificate of Incorporation, the Bylaws and the Rules of the
Corporation, as each may be amended from time to time. In addition, the Board
of Directors may adopt interpretations of the Certificate of Incorporation,
Bylaws and the Rules ("Interpretations") which shall be incorporated into and
deemed to be Rules.
ARTICLE II--MEMBERSHIP
Section 1. Terms and Conditions.
The terms and conditions of membership in the Corporation, including,
without limitation, the rights and obligations of members, member firms and
delegates, shall be as provided herein, in the Certificate of
Incorporation and in the Rules. Without limiting the foregoing, requirements
with respect to, and restrictions and limitations on, the ownership, use,
purchase, sale, transfer or other disposition of any membership or interest
therein, or any other interest of or relating to the Corporation or membership
therein, including the payment of proceeds from the sale, transfer or other
disposition of any membership or interest therein, shall be as provided herein,
in the Certificate of Incorporation and in the Rules, or as otherwise provided
in accordance with applicable law.
Section 2. Voting Rights.
Members shall have such voting rights as are specified in the Certificate of
Incorporation. To the extent authorized by the Certificate of Incorporation,
the Board of Directors shall be entitled to fix a record date for purposes of
determining the members entitled to vote on any matter. Except as expressly
provided in the Certificate of Incorporation of the Corporation, on any matter
upon which the holders of Series B-1 Memberships and Series B-2 Memberships are
entitled to vote, such members shall have the authority to authorize such
proposal on the affirmative vote of a majority of votes cast at any annual or
special meeting of the members of the Corporation.
Section 3. Annual and Special Meetings.
1. Nominations of persons for election to the Board of Directors or the
Nominating Committee may be made at the Annual Meeting (a) pursuant to the
Corporation's notice with respect to such meeting, (b) by or at the direction
of the Board of Directors or (c) by any Series B-1 Member or any Series B-2
Member in good standing with the Corporation who was a member in good standing
at the time of the giving of the notice provided for in the following
paragraph, who is entitled to vote at the meeting and who has complied with the
notice procedures set forth in this section.
2. For nominations to be properly brought before an Annual Meeting by a
Series B-1 Member or Series B-2 Member pursuant to clause (c) of the foregoing
paragraph, (1) the member must have given timely notice thereof in writing to
the Secretary of the Corporation, (2) if the member has provided the
Corporation with a Solicitation Notice, as that term is defined in subclause
(b)(iii) of this paragraph, such member must, in the case of a proposal, have
delivered a proxy statement and form of proxy to holders of a percentage of the
Corporation's voting shares reasonably believed by such member to be sufficient
to elect the nominee or nominees proposed to be nominated by such member, and
must, in either case, have included in such materials the Solicitation Notice
and (3) if no Solicitation Notice relating thereto has been timely provided
pursuant to this section, the member proposing such nomination must not have
solicited a number of proxies sufficient to have required the delivery of such
a Solicitation Notice under this section. To be timely, a member's notice shall
be delivered to the Secretary at the principal executive offices of the
Corporation not less than twenty (20) or more than sixty (60) days prior to the
first anniversary (the "Anniversary") of the date on which the Corporation
first mailed its proxy materials for the preceding year's Annual Meeting;
provided, however, that for purposes of the first Annual Meeting following the
Effective Time, or if the date of an Annual Meeting is advanced more than
thirty (30) days prior to or delayed by more than thirty (30) days after the
anniversary of the preceding year's Annual Meeting, notice by the member to be
timely must be so delivered not earlier than the 90th day prior to such Annual
Meeting and not later than the close of business on the later of (i) the 45th
day prior to such Annual Meeting or (ii) the 10th day following the day on
which public announcement of the date of such meeting is first made. Such
member's notice shall set forth: (a) as to each person whom the member proposes
to nominate for election or reelection as a director or member of the
Nominating Committee (x) the person's name and a brief description of the
current positions and directorships such person holds; (y) whether the member
proposes to nominate such person to be a Series B-1 Director, a Series B-2
Director or a member of the Nominating Committee and, if applicable, a
statement that such person satisfies the applicable criteria for Series B-1
Directors, Series B-2 Directors or members of the Nominating Committee, as
applicable, and (z) such person's written consent to serve as a director or
member of the Nominating Committee, as applicable if elected and, if
applicable, a written undertaking to promptly provide to the Secretary of the
Corporation upon request any information that the Corporation deems to be
relevant to the determination of whether such person satisfies the applicable
criteria for
Series B-1 Directors, Series B-2 Directors or members of the Nominating
Committee, as applicable; (b) as to the member giving the notice (i) the name
and address of such member, as they appear on the Corporation's books, (ii) the
series and number of memberships of the Corporation that are owned by such
member, and (iii) whether such member intends to deliver a proxy statement and
form of proxy to holders of, in the case of a proposal, at least the percentage
of the Corporation's voting shares required under applicable law to carry the
proposal or, in the case of a nomination or nominations, a sufficient number of
holders of the Corporation's voting shares to elect such nominee or nominees
(an affirmative statement of such intent, a "Solicitation Notice").
3. In the event that (a) a member proposes to nominate an individual for
election or reelection as a director of the Corporation or as a member of the
Nominating Committee; (b) such member has satisfied each of the terms and
conditions set forth in paragraph (2) of this Section 3 for the nomination of
such nominee; and (c) such member has delivered to the Secretary of the
Corporation a written petition executed by at least forty (40) persons who are
holders of a Series B-1 Membership proposing to nominate such nominee, the
Corporation shall, to the extent it prepares and delivers a proxy statement and
form of proxy, at its own expense, use commercially reasonable efforts to
include the name of such nominee and all other information required as a matter
of law in such proxy statement and form of proxy.
4. Notwithstanding anything in the second sentence of the second paragraph
of this Section 3 to the contrary, in the event that the number of directors to
be elected to the Board of Directors is increased and there is no public
announcement naming all of the nominees for director or specifying the size of
the increased Board of Directors made by the Corporation at least fifty-five
(55) days prior to the Anniversary, a member's notice required by this Bylaw
shall also be considered timely, but only with respect to nominees for any new
positions created by such increase, if it shall be delivered to the Secretary
at the principal executive offices of the Corporation not later than the close
of business on the 10th day following the day on which such public announcement
is first made by the Corporation.
5. Only persons nominated in accordance with the procedures set forth in
this Section 3 shall be eligible to be elected as directors or members of the
Nominating Committee at an Annual Meeting. The chairman of the meeting shall
have the power and the duty to determine whether a nomination to be brought
before the meeting has been made in accordance with the procedures set forth in
these Bylaws and, if any proposed nomination is not in compliance with these
Bylaws, to declare that such defectively proposed nomination shall not be
presented for member action at the meeting and shall be disregarded.
6. For purposes of these Bylaws, "public announcement" shall mean disclosure
in a press release reported by the Dow Jones News Service, Associated Press or
a comparable national news service.
Section 4. Notice of Meetings.
Written notice of the place, date, and time of all meetings of the members
shall be given, not less than ten (10) nor more than sixty (60) days before the
date on which the meeting is to be held, to each member entitled to vote at
such meeting, except as otherwise provided herein or required by law (meaning,
here and hereinafter, as required from time to time by the DGCL or the
Certificate of Incorporation of the Corporation). The notice of any special
meeting of members shall also state the purpose or purposes for which such
meeting is called.
When a meeting is adjourned to another time or place, notice need not be
given of the adjourned meeting if the time and place, if any, thereof, and the
means of remote communications, if any, by which members and proxy holders may
be deemed to be present in person and vote at such adjourned meeting is
announced at the meeting at which the adjournment is taken; provided, however,
that if the date of any adjourned meeting is more than thirty (30) days after
the date for which the meeting was originally noticed, or if a new record date
is fixed for the adjourned meeting, notice of the place, if any, date, and time
of the adjourned meeting and the means of remote communications, if any, by
which members and proxy holders may be deemed to be present in person and vote
at such adjourned meeting shall be given in conformity herewith. At any
adjourned meeting, any business may be transacted which might have been
transacted at the original meeting without regard to the presence of a quorum
at such adjournment.
Section 5. Quorum.
The presence of the holder of the Class A Membership, in person or by proxy,
shall constitute a quorum with respect to any matter on which the holder of the
Class A Membership is entitled to vote pursuant to the Certificate of
Incorporation, or any meeting called to vote on such matters.
With respect to any matter on which the holders of Class B Memberships are
entitled to vote pursuant to the Certificate of Incorporation, or any meeting
called to vote on such matters, the presence of holders of Class B Memberships,
in person or by proxy, representing one-third of the votes entitled to be cast
on such matters, shall constitute a quorum. If a quorum shall fail to attend
any meeting, the chairman of the meeting or, in his or her absence, the
Chairman of the Board of Directors or the President may adjourn the meeting to
another place, if any, date or time.
Section 6. Organization.
Such person as the Board of Directors may have designated or, in the absence
of such a person, the Chairman of the Board of Directors or, in his or her
absence, such person as may be chosen by the holder of the Class A Membership,
shall call to order any meeting of the members and act as chairman of the
meeting. In the absence of the Secretary of the Corporation, the secretary of
the meeting shall be such person as the chairman appoints.
Section 7. Conduct of Business.
The chairman of any meeting of members shall determine the order of business
and the procedure at the meeting, including such regulation of the manner of
voting and the conduct of discussion as seem to him or her in order.
Section 8. Proxies and Voting.
At any meeting of the members, every member entitled to vote may vote in
person or by proxy authorized by an instrument in writing or by a transmission
permitted by law filed in accordance with the procedure established for the
meeting. Any copy, facsimile telecommunication or other reliable reproduction
of the writing or transmission created pursuant to this paragraph may be
substituted or used in lieu of the original writing or transmission for any and
all purposes for which the original writing or transmission could be used,
provided that such copy, facsimile telecommunication or other reproduction
shall be a complete reproduction of the entire original writing or transmission.
ARTICLE III--BOARD OF DIRECTORS
Section 1. General. The Board of Directors shall be composed of such
persons, who shall be subject to such qualifications, shall be appointed in
such manner and shall have and exercise such powers, as provided in the
Certificate of Incorporation.
Section 2. Quorum. A majority of the total number of directors then in
office shall constitute a quorum of the Board of Directors.
Section 3. Attendance at Board Meetings.
Members of the Board of Directors or any committee who are physically
present at a meeting of the Board of Directors or any committee may adopt as
the procedure of such meeting that, for quorum purposes or otherwise, any
member not physically present but in continuous communication with such meeting
shall be deemed to be present. Continuous communication shall exist only when,
by conference telephone or similar
communications equipment, a member not physically present is able to hear and
be heard by each other member deemed present, and to participate in the
proceedings of the meeting.
Section 4. Regular Meetings.
The Board of Directors shall hold regular meetings at such times as the
Board of Directors may determine from time to time.
Section 5. Special Meetings.
Special meetings of the Board of Directors may be called by the Chairman of
the Board of Directors or the President, and shall be called by the Secretary
upon the written request of three Directors. The Secretary shall give at least
one hour's notice of such meetings either by announcement on Change or by call
letter.
Section 6. Certain Rights and Restrictions.
The right of any person to vote, participate or take any action in any
capacity as a member of the Board of Directors or any committee, panel or other
body shall be subject to such requirements and restrictions as may be provided
herein, in the Certificate of Incorporation and in the Rules.
ARTICLE IV--COMMITTEES AND DEPARTMENTS
Section 1. General.
To the fullest extent permitted by law and the Certificate of Incorporation,
the Board of Directors shall have the power to appoint, and to delegate
authority to, such committees of the Board of Directors as it determines to be
appropriate from time to time.
Section 2. Additional and Standing Committees.
In addition to such committees as may be authorized by the Board of
Directors from time to time, the Corporation shall have such additional and
standing committees, which shall be composed of such persons having such powers
and duties, as provided in the Rules. Any person may be disqualified from
serving on or participating in the affairs of any committee to the extent
provided in the Rules.
Section 3. Departments.
The Corporation shall have such departments as are authorized in or in
accordance with the Rules.
ARTICLE V--OFFICERS
Section 1. General.
The Corporation shall have such officers, with such powers and duties, as
provided herein and in the Certificate of Incorporation.
Section 2. Chairman of the Board.
The Chairman of the Board of Directors of CBOT Holdings shall, whenever he
or she is serving as a member of the Board of Directors of the Corporation, be
the Chairman of the Board of Directors of the Corporation.
Section 3. President.
The President shall be the Chief Executive Officer of the Corporation.
Subject to the provisions of these Bylaws and to the direction of the Board of
Directors, he or she shall have the responsibility to carry on the day to day
activities of the Corporation, subject to the Board's authority to review the
activities of the President and determine the policies of the Corporation, and
for the general management and control of the business and affairs of the
Corporation and shall perform all duties and have all powers which are commonly
incident to the office of chief executive and which are delegated to him or her
from time to time by the Board of Directors.
Section 4. Officers Other Than President.
The Board of Directors shall appoint such Vice Presidents as it may deem
necessary or desirable for the efficient management and operation of the
Corporation. The Executive Vice President and any other Vice Presidents shall
be responsible to the President. The Board of Directors shall also appoint such
other officers as may be necessary. The Board of Directors may prescribe the
duties and fix the compensation of all such officers and they shall hold office
during the will of the Board of Directors.
Section 5. Bonding of Employees.
The President, Secretary, Assistant Secretary, Treasurer and Assistant
Treasurer shall be placed under bond of $50,000 each, premiums to be paid out
of the general funds of the Corporation; and such other employees of the Office
of the Secretary, who handle funds of the Corporation, shall be bonded in the
sum of $5,000 each, premiums to be paid out of the general funds of the
Corporation.
Section 6. Secretary.
The Secretary shall perform such duties as may be delegated to him or her by
the Board of Directors or the President. In addition he or she shall be charged
with the following specific duties:
(a) To take charge of the books, papers, and corporate seal of the
Corporation;
(b) To attend all meetings of the Corporation and the Board of Directors,
and to keep official records thereof;
(c) To give notices when required of all Board of Directors and
membership meetings;
(d) To conduct the correspondence of the Corporation under the direction
of the proper officers;
(e) To furnish to the Chairman of every Special Committee a copy of the
resolution whereby such Committee was created;
(f) To post all notices which may be required to be posted upon the
bulletin board;
(g) To keep his or her office open during usual business hours;
(h) To see that the rooms and property of the Corporation are kept in
good order;
(i) To attest, upon behalf of the Corporation, all contracts and other
documents requiring authentication;
(j) To permit members to examine the records of the Corporation upon
reasonable request; and
(k) To post on the bulletin board from time to time the names of all
warehouses, the receipts of which are declared regular for delivery, and
also, upon direction of the Board of Directors, to post any fact tending to
impair the value of receipts issued by such warehouses.
Section 7. Assistant Secretaries.
Assistant Secretaries shall perform such duties as the Secretary or the
Board of Directors may require, and shall act as Secretary in the absence or
disability of the Secretary.
Section 8. Treasurer.
The Treasurer shall have general charge of all funds belonging to the
Corporation, and shall be charged with the following specific duties:
(a) The Treasurer shall receive from the Secretary deposit of funds
belonging to the Corporation. Checks in amounts over $10,000 shall be signed
by either the President, the Chief Financial Officer, the Treasurer, the
Secretary or the Assistant Secretary and countersigned by the Chairman of
the Board of Directors, a Vice Chairman of the Board of Directors or one (1)
of the three (3) other elected members of the Executive Committee;
(b) To make an annual report to the Corporation of all receipts and
disbursements; and
(c) To keep all of his or her accounts in permanent books of account
belonging to the Corporation, which books shall at all times be open to the
examination of the Board of Directors or any committee thereof.
Section 8. Assistant Treasurer.
The Assistant Treasurer shall perform such duties as the Treasurer or the
Board of Directors may require, and shall act as Treasurer in the absence or
disability of the Treasurer.
ARTICLE VI--NOTICES
Section 1. Notices.
Except as otherwise specifically provided herein or required by law, all
notices required to be given to any member, director, committee member,
officer, employee or agent shall be in writing and may in every instance be
effectively given by hand delivery to the recipient thereof, by depositing such
notice in the mails, postage paid, or by sending such notice by prepaid
telegram or mailgram. Any such notice shall be addressed to such member,
director, committee member, officer, employee or agent at his or her last known
address as the same appears on the books of the Corporation. The time when such
notice is received, if hand delivered, or dispatched, if delivered through the
mails or by telegram or mailgram, shall be the time of the giving of the notice.
Section 2. Waivers.
A written waiver of any notice, signed by a member, director, committee
member, officer, employee or agent, whether before or after the time of the
event for which notice is to be given, shall be deemed equivalent to the notice
required to be given to such member, director, committee member, officer,
employee or agent. Neither the business nor the purpose of any meeting need be
specified in such a waiver.
ARTICLE VII--MISCELLANEOUS
Section 1. Facsimile Signatures.
Facsimile signatures of any officer or officers of the Corporation may be
used whenever and as authorized by the Board of Directors or a committee
thereof.
Section 2. Corporate Seal.
The Board of Directors may provide a suitable seal, containing the name of
the Corporation, which seal shall be in the charge of the Secretary. If and
when so directed by the Board of Directors or a committee thereof, duplicates
of the seal may be kept and used by the Treasurer or by an Assistant Secretary
or Assistant Treasurer.
Section 3. Reliance upon Books, Reports and Records.
Each director and each member of any committee designated by the Board of
Directors, shall, in the performance of his or her duties, be fully protected
in relying in good faith upon the books of account or other records of the
Corporation and upon such information, opinions, reports or statements
presented to the Corporation by any of its officers or employees, or committees
of the Board of Directors so designated, or by any other person as to matters
which such director or committee member reasonably believes are within such
other person's professional or expert competence and who has been selected with
reasonable care by or on behalf of the Corporation.
Section 4. Fiscal Year.
The fiscal year of the Corporation shall be as fixed by the Board of
Directors from time to time.
Section 5. Time Periods.
Except as otherwise specifically provided, in applying any provision of
these Bylaws which requires that an act be done or not be done a specified
number of days prior to an event or that an act be done during a period of a
specified number of days prior to an event, calendar days shall be used, the
day of the doing of the act shall be excluded, and the day of the event shall
be included.
ARTICLE VIII--INDEMNIFICATION OF DIRECTORS AND OFFICERS
Section 1. Right to Indemnification.
Each person who was or is made a party or is threatened to be made a party
to or is otherwise involved in any action, suit or proceeding, whether civil,
criminal, administrative or investigative (hereinafter a "proceeding"), by
reason of the fact that he or she is or was a Director, officer, committee
member or employee of the Corporation or is or was serving at the request of
the Corporation as a Director, officer, trustee, committee member or employee
of another corporation or of a partnership, joint venture, trust or other
enterprise, including service with respect to an employee benefit plan
(hereinafter an "indemnitee"), whether the basis of such proceeding is alleged
action in an official capacity as a Director, officer, trustee, committee
member or employee or in any other capacity while serving as a Director,
officer, trustee, committee member or employee, shall be indemnified and held
harmless by the Corporation to the fullest extent authorized by the DGCL, as
the same exists or may hereafter be amended (but, in the case of any such
amendment, only to the extent that such amendment permits the Corporation to
provide broader indemnification rights than such law permitted the Corporation
to provide prior to such amendment), against all expense, liability and loss
(including attorneys' fees, judgments, fines, ERISA excise taxes or penalties
and amounts paid in settlement) reasonably incurred or suffered by such
indemnitee in connection therewith; provided, however, that, except as provided
in Section 3 of this Article VIII with respect to proceedings to enforce rights
to indemnification, the Corporation shall indemnify any such indemnitee in
connection with a proceeding (or part thereof) initiated by such indemnitee
only if such proceeding (or part thereof) was authorized by the Board of
Directors of the Corporation.
Section 2. Right to Advancement of Expenses.
The right to indemnification conferred in Section 1 of this Article VIII
shall include the right to be paid by the Corporation the expenses (including
attorney's fees) incurred in defending any such proceeding in advance of its
final disposition (hereinafter an "advancement of expenses"); provided,
however, that, if the DGCL requires, an advancement of expenses incurred by an
indemnitee in his or her capacity as a Director or officer (and not in any
other capacity in which service was or is rendered by such indemnitee,
including, without limitation, service to an employee benefit plan) shall be
made only upon delivery to the Corporation of an undertaking (hereinafter
an "undertaking"), by or on behalf of such indemnitee, to repay all amounts so
advanced if it shall ultimately be determined by final judicial decision from
which there is no further right to appeal (hereinafter a "final adjudication")
that such indemnitee is not entitled to be indemnified for such expenses under
this Section 2 or otherwise. The rights to indemnification and to the
advancement of expenses conferred in Sections 1 and 2 of this Article VIII
shall be contract rights and such rights shall continue as to an indemnitee who
has ceased to be a Director, officer, committee member or employee and shall
inure to the benefit of the indemnitee's heirs, executors and administrators.
Section 3. Right of Indemnitee to Bring Suit.
If a claim under Section 1 or 2 of this Article VIII is not paid in full by
the Corporation within sixty (60) days after a written claim has been received
by the Corporation, except in the case of a claim for an advancement of
expenses, in which case the applicable period shall be twenty (20) days, the
indemnitee may at any time thereafter bring suit against the Corporation to
recover the unpaid amount of the claim. If successful in whole or in part in
any such suit, or in a suit brought by the Corporation to recover an
advancement of expenses pursuant to the terms of an undertaking, the indemnitee
shall be entitled to be paid also the expense of prosecuting or defending such
suit. In (i) any suit brought by the indemnitee to enforce a right to
indemnification hereunder (but not in a suit brought by the indemnitee to
enforce a right to an advancement of expenses) it shall be a defense that, and
(ii) in any suit brought by the Corporation to recover an advancement of
expenses pursuant to the terms of an undertaking, the Corporation shall be
entitled to recover such expenses upon a final adjudication that, the
indemnitee has not met any applicable standard for indemnification set forth in
the DGCL. Neither the failure of the Corporation (including its Board of
Directors, independent legal counsel, or its members) to have made a
determination prior to the commencement of such suit that indemnification of
the indemnitee is proper in the circumstances because the indemnitee has met
the applicable standard of conduct set forth in the DGCL, nor an actual
determination by the Corporation (including its Board of Directors, independent
legal counsel, or its members) that the indemnitee has not met such applicable
standard of conduct, shall create a presumption that the indemnitee has not met
the applicable standard of conduct or, in the case of such a suit brought by
the indemnitee, be a defense to such suit. In any suit brought by the
indemnitee to enforce a right to indemnification or to an advancement of
expenses hereunder, or brought by the Corporation to recover an advancement of
expenses pursuant to the terms of an undertaking, the burden of proving that
the indemnitee is not entitled to be indemnified, or to such advancement of
expenses, under this Article VIII or otherwise shall be on the Corporation.
Section 4. Non-Exclusivity of Rights.
The rights to indemnification and to the advancement of expenses conferred
in this Article VIII shall not be exclusive of any other right which any person
may have or hereafter acquire under any statute, the Corporation's Certificate
of Incorporation, Bylaws, agreement, vote of members or disinterested Directors
or otherwise.
Section 5. Insurance.
The Corporation may maintain insurance, at its expense, to protect itself
and any Director, officer, committee member, employee or agent of the
Corporation or another corporation, partnership, joint venture, trust or other
enterprise against any expense, liability or loss, whether or not the
Corporation would have the power to indemnify such person against such expense,
liability or loss under the Delaware General Corporation Law.
Section 6. Indemnification of Agents of the Corporation.
The Corporation may, to the extent authorized from time to time by the Board
of Directors, grant rights to indemnification and to the advancement of
expenses to any agent of the Corporation to the fullest extent of the
provisions of this Article VIII with respect to the indemnification and
advancement of expenses of directors and officers of the Corporation.
Section 7. Corporation Defense Expenses.
Any member or member firm who fails to prevail in a lawsuit or any other
type of legal proceeding instituted by that member or member firm against the
Corporation or any of its officers, Directors, committee members, employees or
agents must pay to the Corporation all reasonable expenses, including
attorney's fees, incurred by the Corporation in the defense of such proceeding.
Any member or member firm required to compensate the Corporation pursuant to
this section shall be assessed interest on such amount at the rate of Prime
plus one percent (1%), which interest shall accrue from the date such amount
was demanded in writing after the member or member firm failed to prevail in a
lawsuit or any other type of legal proceeding against the Corporation.
ARTICLE IX--AMENDMENTS
The Board of Directors is expressly empowered to adopt, amend or repeal the
Bylaws of the Corporation; provided that any change to the matters set forth in
Section (D)(2)(a) of Article IV of the Certificate of Incorporation shall also
require the approval of Series B-1 Members and Series B-2 Members as specified
therein. Series B-1 Members and Series B-2 Members shall also have power to
adopt, amend or repeal the Bylaws of the Corporation; provided, however, that
any adoption, amendment or repeal of the Bylaws of the Corporation by Series
B-1 Members and Series B-2 Members shall require the affirmative vote of a
majority of the votes cast on any such properly presented proposal at any
annual or special meeting of the members of the Corporation.
* * * *
[Download Table]
================================================================================
Chapter 2
Membership
================================================================================
Ch1 Committees........................................................
157.00 Business Conduct Committee............................
158.00 Floor Governors Committee.............................
159.00 Membership Committee...................................
159.01 Membership Committee Panels............................
165.01 Regulatory Compliance Committee.......................
Ch1 Departments.......................................................
170.00 Departments............................................
170.01 Office of Investigations and Audits....................
170.02 Office of Investigations and Audits....................
170.03 Department of Member Services..........................
170.04 Department of Member Services..........................
170.05 Department of Member Services..........................
170.07 Market Report Department...............................
Ch1 General...........................................................
180.00 Emergencies............................................
180.01 Physical Emergencies...................................
180.02 Emergency Action Under Rule 180.00.....................
188.01 Governing Members Possessing Material, NM-Public
Information............................................
*188.02 Service on Board of Directors, Disciplinary Committees,
Oversight Committees and Arbitration Panels............
188.03 Exchange Liability.....................................
188.04 Conflicts of Interest..................................
189.01 Limitation of Liability of Index Licensors or
Administrators.........................................
189.02 Limitation of Liability................................
Ch1 Committees
157.00 Business Conduct Committee - (See 542.00) (08/01/94)
158.00 Floor Governors Committee - (See 543.00) (08/01/94)
159.00 Membership Committee - All applications for membership shall be
referred to the Membership Committee. The Membership Committee, in its
discretion, may require an applicant who resides in the continental United
States to appear in person for an examination either before the full committee,
a duly authorized subcommittee thereof, or a representative of the Member
Services Department. The Committee may also impose different requirements for
other applicants in lieu of personal appearance.
The Membership Committee, by a majority vote of its members present at a duly
constituted meeting, shall approve or deny the admission of the applicant to
membership. A decision of the Membership Committee to deny the application may
be appealed to the Regulatory Compliance Committee. 102 (12/01/03)
159.01 Membership Committee Panels - The Chairman of the Membership Committee
may appoint panels of Committee members to hold duly constituted meetings, in
accordance with Rule 159.00, for the purpose of approving or denying
applications for membership. Any such panel must consist of not fewer than three
members of the Committee. (08/01/94)
Ch1 Committees
--------------
165.01 Regulatory Compliance Committee - The Chairman of the Board, with the
approval of the Board, shall appoint a Regulatory Compliance Committee, which
shall be comprised of the following voting members:
- Three members of the Board, all of whom shall be Full Members or
Associate Members; and
- The chairmen of the Arbitration, Business Conduct, Financial Compliance,
Floor Conduct, Floor Governors and Membership Committees.
Each year the Chairman of the Board shall appoint, from among the Board members
on the Committee, the Chairman of the Regulatory Compliance Committee for a one-
year term, provided that the term of the first Committee chairman so appointed
shall expire in January 1995.
The Regulatory Compliance Committee shall be responsible for (a) the approval of
legislative priorities and responses to legislative and regulatory initiatives;
(b) the determination of membership capital requirements; (c) the establishment
of risk management policies; (d) the establishment of membership criteria; (e)
hearing appeals from denials of membership applications; (f) the monitoring of
compliance policies; and (g) establishing ranges for penalties and fines for
violations of the Rules and Regulations of the Association.
The Committee shall instruct the Office of Investigations and Audits to
administer a statement of Member's Rights to each member (or employee of a
member) who is the subject of an investigation. (See below.)
Members of the Committee shall be appointed by the Chairman of the Board with
the approval of the Board. The Chairman of the Board, with the approval of the
Board, shall fill any vacancy in the Board members serving on the Committee by
appointing another member of the Board to serve on the Committee.
Ch1 Committees
--------------
STATEMENT OF MEMBER'S RIGHTS
APPURTENANT TO EXCHANGE PROCEEDINGS
The Chicago Board of Trade ("Exchange" or "CBOT") is a self-regulatory
organization subject to supervisory regulation of the Commodity Futures Trading
Commission ("CFTC"). In order to fulfill its self-regulatory obligations the
Exchange is required by the CFTC to undertake certain surveillance activities
and to maintain an enforcement staff that prosecutes possible violations of
Exchange rules before Exchange committees. At the CBOT these responsibilities
are carried out by the Office of investigations and Audits ("OIA") pursuant to
CBOT Regulations 170.01 and 170.02.
Investigations may be initiated by staff, members, the CFTC of the
public. When an investigation is completed, an Investigations Report
concerning the alleged violation is prepared and submitted to the appropriate
Exchange disciplinary committee for review and action. An Investigation Report
is a privileged document and not subject to disclosure, although the essential
elements of an Investigative Report include a summary of the case and evidence
gathered by OIA, along with an OIA recommendation on whether to proceed.
A member, member firm or any other person subject to questioning during
an investigation is afforded the following rights, in addition to those rights
contained in Chapter 5 of the Exchange Rulebook:
1) The right to be represented by counsel during questioning and at any
subsequent proceeding before an Exchange committee. Regulation 540.03(g).
2) The right to be informed of the general act or conduct which is the subject
of the investigation, in so far as is determinable at the time of
questioning.
3) The right not to answer any question, if the answer would convict or tend to
convict the person of any State of Federal law. Rule 548.00.
4) The right to examine any statements or documents which are relevant to the
issued charges, excluding privileged work product and the Investigative
Report. Regulation 540.03(a).
5) The right to call relevant witnesses at any hearing and, for those witnesses
within the jurisdiction of the Association, compel their attendance.
6) The right of one peremptory (for no reason) challenge to the presence of a
member of an Exchange disciplinary committee impaneled to hear the matter
and unlimited challenges for cause.
In addition, members, member firms or any other persons subject to questioning
during an investigation should be aware that Section 9(a)(4) of the Commodity
Exchange Act makes it a felony to willfully falsify or conceal a material fact,
to make a false, fictitious or fraudulent statement, or to knowingly make or use
a false document to any representative of the Exchange, including OIA employees,
who are performing their official duties.
I hereby acknowledge that I have read this Statement of Member's Rights this
______ day of ________, 20 ______.
__________________________________________________
04/01/01
Ch1 Departments
170.00 Departments - The Board, or the President with the approval of the
Board, is authorized to establish and maintain such departments as may be deemed
necessary from time to time, and the Board shall make all needful Regulations
applicable thereto. All such departments shall be under the supervision of the
President, who shall be responsible to the Board. 81 (08/01/94)
170.01 Office of Investigations and Audits - Under authority of Rule 170.00
there is established a Department of the Association to be known as the Office
of Investigations and Audits. The Office shall function under the supervision of
an individual who shall be at least a Vice President of the Association. The
Office of Investigations and Audits shall initiate and conduct investigations
and audits on behalf of the President and Chief Executive Officer and on behalf
of the Association. No employee of such office shall have any interest in the
business of any member, member firm, or other person with trading privileges.
The individual who supervises such Office shall function also as a liaison
officer between the Business Conduct Committee and the Financial Compliance
Committee and the Commodity Futures Trading Commission. 1785 (08/01/94)
170.02 Office of Investigations and Audits - All officers, committees and
departments of the Association shall be entitled to use and shall make the
fullest possible use of the services provided by the Office of Investigations
and Audits consistent with their respective responsibilities and special needs,
and the President shall work out and establish policies and procedures governing
the initiation and handling of needed investigations, audits and Exchange
business. All such policies and procedures shall be consistent with and not in
conflict with the following declared policies of the Board:
(a) All information obtained by the Office of Investigations and Audits
regarding market positions and identity of traders shall be considered
confidential, regardless of source, and shall be disclosed only to the
Chairman or acting Chairman of the Business Conduct Committee and/or the
Financial Compliance Committee, and authorized Exchange employees, and
shall be disclosed to the Business Conduct Committee and/or the Financial
Compliance Committee sitting as a committee when and after the individual
in charge of the Office of Investigations and Audits or the Chairman or
acting Chairman of the Business Conduct Committee and/or the Financial
Compliance Committee shall have reason to believe that such Committee would
or should take preventive or disciplinary action if such information were
presented to it. This shall not preclude the Business Conduct Committee
and/or the Financial Compliance Committee from ordering investigations or
audits to be made at any time for the special purpose of obtaining
information regarding the market position and identity of any trader or
traders, and in such cases the Office of Investigations and Audits shall
report fully and completely to the Committee any and all such information
so obtained or in its possession.
(b) It shall be considered a breach of trust for any employee of the Office of
Investigations and Audits or authorized Exchange employee to divulge, or
allow or cause to be divulged, to any unauthorized person, any
confidential, commercially sensitive, or non-public information, including
any information regarding the market position, financial condition, or
identity of any trader or firm or to disclose the name of any customer of
one firm to any other firm, except as provided for in paragraph (a) hereof
or when required in connection with disciplinary proceedings or other
formal proceedings or actions of a duly authorized committee of the
Association or of the Board, or in response to a duly authorized subpoena,
or in response to a request or demand by any administrative or legislative
body of government having jurisdiction of the subject matter and authority
to obtain the information requested, or on behalf of the Association in any
proceeding authorized by the Board of Directors. Such information shall not
be divulged by any employee of the Office of Investigations and Audits or
authorized Exchange employee without the prior approval of the individual
responsible for supervision of the Office of Investigations and Audits.
1786 (07/01/02)
170.03 Department of Member Services - Under the authority of Rule 170.00 there
is established a Department of Member Services. The function of such Department
shall be (1) to act in accordance with Regulations of the Board and policies and
procedures established by the Membership Committee and (2) to develop and
process information in behalf of the Board, the Membership Committee, the
Business Conduct Committee and all other Committees and Departments of the
Association. The services of such Department shall not, however, be used in
connection with the investigation of market positions nor shall it demand
information from which knowledge of market
Ch1 Departments
---------------
positions could be obtained. The Department shall function under the supervision
of a Vice President who shall be a full time employee of the Association. No
employee of such Department shall have an interest in the business of any member
or member firm. 1787 (08/01/94)
170.04 Department of Member Services - Any irregularities that may be found by
the Department incidental to its routine analysis of financial statements shall
be immediately reported to the Financial Compliance Committee. Except as
otherwise provided, all financial information obtained by the Department shall
be considered confidential and shall be disclosed only to the appropriate
committee or department requesting the information or to an Officer of the
Association. 1788 (08/01/94)
170.05 Department of Member Services - The Board, Committees and Departments of
the Association shall make the fullest possible use of the services provided by
the Department of Member Services consistent with their respective
responsibilities and special needs, and in cooperation with such Department
shall work out and establish policies and procedures governing the use of such
services. 1789 (08/01/94)
Ch1 General
180.00 Emergencies
(a) The Board, upon the affirmative vote of two-thirds of the members voting at
a meeting where a quorum is deemed present and at least one-third of the
full Board is physically present, may adopt an emergency Regulation or
Resolution which shall supersede and supplant all contrary or inconsistent
Rules, Regulations, Resolutions or Rulings. Notice of the adoption of an
emergency Regulation or Resolution shall be posted promptly on the floor of
the Exchange.
(b) An emergency Regulation or Resolution shall expire upon the happening of
any of the following events:
(i) the Board shall have voted to rescind the emergency Regulation or
Resolution in the same manner as for its adoption;
(ii) the Commodity Futures Trading Commission shall have failed to
authorize the extension of the emergency Regulation or Resolution
within thirty (30) days after its adoption for a period not to exceed
sixty (60) additional days; or
(iii) the Board or the Members of the Association shall have failed to adopt
the emergency Regulation or Resolution in accordance with Rules 107.00
or 132.00 during the time period when the emergency is in effect.
(c) All Exchange contracts shall be subject to the exercise of these emergency
powers by the Board as well as the exercise by the Clearing Services
Provider of the powers reserved to it by its policies, Rules and
Regulations.
(d) The Term "emergency" shall include all emergency circumstances now or
hereafter referenced in the Commodity Exchange Act and the regulations of
the Commodity Futures Trading Commission thereunder, and all other
circumstances in which an emergency can lawfully be declared by the Board.
(e) Except as otherwise stated in an emergency Regulation or Resolution adopted
hereunder, the powers exercised by the Board under this Rule shall be in
addition to and not in derogation of the authority granted by the Rules and
Regulations to a committee or officer of the Association to take action as
specified therein. (01/01/04)
180.01 Physical Emergencies - In the event the physical functions of the
Association are, or are threatened to be, severely and adversely affected by a
physical emergency such as but not limited to fire or other casualty, bomb
threats, substantial inclement weather, power failures, communications or
automated system breakdowns, or transportation breakdowns, either the Chairman,
the President, or in their absence a member of the Executive Committee or
another officer of the Exchange, is authorized to take such action as he shall
deem necessary or appropriate to deal with such emergency including but not
limited to suspending trading, provided that no trading suspension shall
continue for more than five days without the approval of the Board under Rule
180.00; restoring trading; temporarily extending, limiting or changing the hours
of trading; and extending the last day of trading and the delivery dates for
expiring contracts. In addition, an officer of the Exchange, or his designee,
may take such action as he shall deem necessary or appropriate to deal with a
physical emergency, even if the Chairman and the President are not absent, if
such authority has been delegated by the Chairman and the President. (06/01/00)
180.02 Emergency Actions Under Rule 180.00 - Pursuant and subject to the
provisions of Rule 180.00, the Board may take or direct such actions as it deems
necessary or appropriate to meet an emergency, including but not limited to such
actions as:
(a) limited trading to liquidation only, in whole or in part;
(b) limited trading to liquidation only, except new sales for delivery;
(c) extending or shortening the time for the expiration of trading;
(d) extending the time for delivery;
(e) ordering liquidation of contracts;
(f) ordering the fixing of settlement prices;
(g) ordering the reduction of positions;
(h) ordering the transfer of positions, and the money, securities and property
securing such positions, held on behalf of customers by a member, to
another member or members willing to assume such positions;
(i) extending, limiting or changing the hours of trading;
(j) suspending trading;
(k) changing or removing daily price fluctuation limits;
(l) modifying or suspending any of the Rules and Regulations. (08/01/94)
188.01 Governing Members Possessing Material, Non-Public Information - - No
member of the Association who is a member of the Board of Directors or a
Committee of the Association knowingly shall use or disclose, for any purpose
other than the performance of such member's official duties as a member of the
Board of Directors or any such Committee, material, non-public information
obtained as a result of such member's participation on the Board of Directors or
any such committee. (08/01/94)
188.02 Service on Board of Directors, Disciplinary Committees, Oversight
Committees and Arbitration Panels--No person shall serve on any disciplinary
committee (i.e., Appellate Committee, Business Conduct Committee, Financial
Compliance Committee, Floor Governors Committee, Floor Conduct Committee or
Hearing Committee), oversight committee (i.e. Regulatory Compliance Committee),
arbitration panel or the Board of Directors of the Association:
1) who is found by a final decision or settlement agreement (or absent a
finding in the settlement agreement if any acts charged included a
disciplinary offense) to have committed a disciplinary offense, as defined
in Commodity Futures Trading Commission ("Commission") Regulation 1.63 (a)
(6); or
2) whose Commission registration in any capacity has been revoked or
suspended; or
3) who is subject to an agreement with the Commission or any self-regulatory
organization not to apply for registration; or
4) who is subject to a denial, suspension or disqualification from serving on
a disciplinary committee, oversight committee, arbitration panel or
governing board of any self-regulatory organization as that term is defined
in Section 3(a)(26) of the Securities Exchange Act of 1934; or
5) who has been convicted of any felony listed in Section 8a(2) (D) (ii)
through (iv) of the Commodity Exchange Act;
for a period of three years from the date of such final decision or for such
time as the person remains subject to any suspension, expulsion or has failed to
pay any portion of a fine imposed for committing a disciplinary offense,
whichever is longer.
All terms used herein shall be defined consistent with Commission Regulation
1.63(a). (11/01/94)
188.03 Exchange Liability -
A. Except as provided in the Commodity Exchange Act and/or the regulations of
the Commodity Futures Trading Commission, and except in instances where
there has been a finding of willful or wanton misconduct, gross negligence,
bad faith or fraudulent or criminal acts, in which case the party found to
have engaged in such misconduct cannot invoke the protection of this
provision, neither the Exchange nor any of its directors, officers,
employees, agents or consultants shall have or incur any liability
whatsoever to its members, any persons associated therewith, their
customers or any third parties related thereto or their successors,
assigns, or representatives, for any loss, damage, cost, claims or expense
(including but not limited to indirect, incidental or consequential
damages) that arise out of the use or enjoyment of the facilities or
services afforded by the Exchange, any interruption in or failure or
unavailability of any a such facilities or services, any action taken or
omitted to be taken with respect to the business of the Exchange or any
information or data provided or withheld by the Exchange. Such limitation
of liability shall apply to all claims, whether in contract, tort,
negligence, strict liability or otherwise.
The Exchange makes no warranty, express or implied, as to the results to be
obtained by any person or entity from the use of any data or information
transmitted or disseminated by or on behalf of the Exchange. The Exchange
makes no express or implied warranties of merchantability or fitness for a
particular purpose or use with respect to any data or information
transmitted or disseminated by or on behalf of the Exchange.
B. Subject to the limitations set forth above, neither the Exchange nor any of
its directors, officers, employees, agents or consultants shall have or
incur any liability whatsoever to its members, their customers or any third
parties associated therewith, or their successors, assigns, or
representatives, for any loss, damage, cost or expense (including but not
limited to indirect, incidental or consequential damages) incurred by
members or customers as a result of any failure, malfunction, fault, delay,
omission, inaccuracy, interruption or termination of service in connection
with the furnishing, performance, operation, maintenance or use of or
inability to use all or any part of any Exchange systems. Such limitation
of liability shall apply regardless of the cause of such systems failure
even if due to Exchange error, omission or negligence. Further, such
limitation of liability shall apply to all claims, whether in contract,
tort, negligence, strict liability or otherwise.
Additionally, the Exchange, its directors, officers, employees, agents or
consultants shall have or incur absolutely no liability whatsoever for any
errors or inaccuracies in information provided by any Exchange systems or
for any losses resulting from unauthorized access or any other misuse of
any Exchange systems by any person.
C. As used in this regulation, the term "systems" includes, but is not limited
to, electronic order entry/delivery, trading through any electronic means,
electronic communication of market data or information, workstations used
by members and authorized employees of members, price reporting systems and
any and all terminals, communications networks, central computers,
software, hardware, firmware and printers relating thereto.
D. As used in this regulation, the term "Exchange" shall mean the Board of
Trade of the City of Chicago, as well as any entity in which the Board of
Trade is now or will become a general partner, a member, or a shareholder,
including but not limited to Ceres Trading Limited Partnership, C.B.T.
Corporation, and Chicago Board Brokerage, Inc. (08/01/97)
188.04 Conflicts of Interest -
(a) Relationship with a Named Party in Interest
(1) Nature of Relationship. A member of the Board of Directors, the
Executive Committee, the Regulatory Compliance Committee, the
Appellate Committee, the Hearing Committee, the Business Conduct
Committee, the Floor Governors Committee, the Financial Compliance
Committee, or the Floor Conduct Committee must recuse himself from
such body's deliberations and voting on any matter involving a
person or entity that is identified by name as a subject of the
matter ("named party in interest"), except with regard to summary
penalties for violating rules relating to decorum, attire, floor
recordkeeping or submission of trade data to the Exchange or the
Clearing Services Provider, where such member:
(i) is the named party in interest;
(ii) has a family relationship with the named party in interest.
A family relationship includes the member's spouse, former
spouse, parent, child, sibling, grandparent, grandchild,
uncle, aunt, nephew, niece or in-law;
(iii) is an employer, employee, or fellow employee of the named
party in interest; or
(iv) has a direct and substantial financial relationship with
the named party in interest, but not including
relationships limited to executing futures or options
transactions opposite each other.
When a CTR violation is not treated as a summary offense, and the
preliminary penalty is not more than $5,000, a member of the CTR
Subcommittee or the Business Conduct Committee must only recuse
himself from deliberations and voting on the recommendation,
issuance or settlement of charges against a member firm if the
committee member is a principal or employee of that member firm.
(2) Recusal. Prior to the consideration of any matter involving a
named party in interest, each member who believes that he has a
relationship of the type specified in section (a)(1) of this
Regulation must voluntarily recuse himself from deliberations and
voting on the matter. If the member is not sure if his
relationship meets the criteria specified in section (a)(1), he
must disclose the relationship to the designated Exchange staff
liaison who will determine whether recusal is required based on
the information provided by the member.
(b) Financial Interest in an Emergency Action
(1) Nature of Interest. A member of the Board of Directors, the
Executive Committee, or the Business Conduct Committee must
recuse himself from such body's deliberations and voting with
regard to recommending or taking action to address an emergency,
as defined in CFTC Regulation 40.1, if the member knowingly has a
direct and substantial financial interest in the result of the
vote based upon either Exchange or non-Exchange positions that
could reasonably be expected to be affected by the action.
(2) Recusal. Prior to the consideration of an emergency action, each
member who believes that he has such a financial interest must
voluntarily recuse himself from deliberations and voting on the
matter, except as provided in section (c). If the member is not
sure if a financial interest, of which he has knowledge, is
direct and substantial, he must disclose the interest to the
designated Exchange staff liaison who will determine whether
recusal is required based on the information provided by the
member.
In determining whether a financial interest is direct and
substantial, a member should consider the following positions:
(a) those held in accounts in which he has an ownership interest;
(b) those held in accounts for which he directs trading; (c)
those which he knows are held in proprietary accounts of any firm
of which he is an employee or principal, as defined in CFTC
Regulation 3.1(a); and (d) those which he knows are held in
customer accounts of any firm of which he is an employee or
principal.
(c) Participation in Deliberations
A member of the Board of Directors, the Executive Committee, or the
Business Conduct Committee may participate in deliberations prior to a
vote to recommend or take emergency action, from which he otherwise
would be required by section (b)(2) to recuse himself, if the
deliberating body determines that such participation is necessary for
such body to achieve a quorum in the matter, or if the member has
unique or special expertise, knowledge or experience in the matter. If
such a member participates in deliberations, he must recuse himself
from voting on the matter.
(d) Business Conduct Committee Surveillance of Expiring Contracts
A member of the Business Conduct Committee must recuse himself from
the Committee's deliberations and voting with regard to all matters
relating to its surveillance of expiring futures contracts, except
with regard to recommending or taking action to address an emergency,
which is governed by paragraph (b) above,
if the member personally owns or controls positions in the expiring
futures contract or in its corresponding options contract.
(e) Documentation
The Board of Directors or the relevant committee must reflect in its
minutes: (a) the names of all members who attended the meeting in
person or who otherwise were present by electronic means, and (b) the
names of any members who recused themselves from deliberating or
voting on any matter.
* Note: Members of the Board of Directors may be required to recuse themselves
from deliberations and voting for other reasons or in other circumstances than
those discussed above, as required by Delaware corporate law. (01/01/04)
189.01 Limitation of Liability of Index Licensors or Administrators -
A. No Index Licensor or Administrator shall have any liability for any loss,
damages, claim or expense arising from or occasioned by any inaccuracy,
error or delay in, or omission of or from, (i) any index or index
information or (ii) the collection, calculation, compilation, maintenance,
reporting or dissemination of any index or index information, resulting
either from any negligent act or omission by the Exchange, any Related
Entity or any Index Licensor or Administrator or from any act, condition or
cause beyond the reasonable control of the Exchange, any Related Entity or
any Index Licensor or Administrator, including, but not limited to, flood,
extraordinary weather conditions, earthquake or other act of God, fire,
war, insurrection, riot, labor dispute, accident, action of government,
communications or power failure, or equipment of software malfunction.
B. No Index Licensor or Administrator makes any express or implied warranty as
to results that any person or party may obtain from using any index or
index information, for trading or any other purpose. Each Index Licensor
and Administrator makes no express or implied warranties, and disclaims all
warranties of merchantability or fitness for a particular purpose or use,
with respect to any such index or index information.
C. For purposes of this regulation, "Related Entity" includes, but is not
limited to, any subsidiary, affiliate or related partnership or entity of
the Chicago Board of Trade, including without limitation, Ceres Trading
Limited Partnership, the Exchange's Clearing Services Provider, and C-B-T
Corporation.
D. For the purpose of this regulation, "Index Licensor or (and) Administrator"
includes, but is not limited to, any person who:
1. licenses to the Exchange the right to use (i) an index that is the
basis for a futures or futures option contract made available for
trading on or through the facilities of the Exchange or a Related
Entity or (ii) any trademark or service mark associated with such an
index;
2. collects, calculates, compiles, reports and/or maintains such an index
or index information relating to such an index;
3. provides price data or evaluations used in the calculation of such an
index including, but not limited to, the entities identified in
Appendix 19 of these Rules and Regulations
4. provides facilities for the dissemination of an index or index
information; and/or
5. is responsible for or participates in any of the activities described
above. (01/01/04)
189.02 Limitation of Liability -
A. Neither the Exchange nor any Related Entity shall have any liability for
any loss, damages, claim or expense arising from or occasioned by any
inaccuracy, error or delay in, or omission of or from: (i) any index or
index information or (ii) the collection, calculation, compilation,
maintenance, reporting or dissemination of any index or index information,
resulting either from any negligent act or omission by the Exchange, any
Related Entity or any Index Licensor or Administrator or from any act,
condition or cause beyond the reasonable control of the Exchange, any
Related Entity or any
Index Licensor or Administrator, including, but not limited to, flood,
extraordinary weather conditions, earthquake or other act of God, fire,
war, insurrection, riot, labor dispute, accident, action of government,
communications or power failure, or equipment or software malfunction.
B. Neither the Exchange nor any Related Entity makes any express or implied
warranty as to results that any person or party may obtain from using any
index or index information for trading or any other purpose. The Exchange
and its Related Entities make no express or implied warranties, and
disclaim all warranties of merchantability or fitness for a particular
purpose or use, with respect to any such index or index information.
C. Nothing in this regulation shall limit the applicability of the Commodity
Exchange Act or the regulations of the Commodity Futures Trading
Commission.
D. For purposes of this regulation, "Related Entity" includes, but is not
limited to, any subsidiary, affiliate or related partnership or entity of
the Chicago Board of Trade, including without limitation, Ceres Trading
Limited Partnership, the Exchange Clearing Services Provider, and C-B-T
Corporation.
E. For the purpose of this regulation, "Index Licensor or (and) Administrator"
includes any person who:
1. licenses to the Exchange the right to use (i) an index that is the
basis for a futures or futures option contract made available for
trading on or through the facilities of the Exchange or a Related
Entity or (ii) any trademark or service mark associated with such an
index;
2. collects, calculates, compiles, reports and/or maintains such an index
or index information relating to such an index;
3. provides price data or evaluations used in the calculation of such an
index including, but not limited to, the entities identified in
Appendix 19 of these Rules and Regulations;
4. provides facilities for the dissemination of an index or index
information; and/or
5. is responsible for or participates in any of the activities described
above. (01/01/04)
Resolution - The following Resolution was adopted by the Board of Directors
on June 24,1987:
WHEREAS, the Board of Trade of the City of Chicago ("Board of Trade") has
consistently followed a policy of trading options contracts on all liquid
futures contracts to the maximum extent permitted by federal law and regulation;
and
WHEREAS, it is the unanimous consensus of this Board of Directors that options
on futures contracts have proven to be a successful product of great benefit to
both the membership and public market participants; and
WHEREAS, the Board of Directors this day approved and recommended for membership
approval an agreement to establish a joint venture with the Chicago Board
Options Exchange which includes commitments regarding future trading on options
on futures contracts;
THEREFORE, BE IT HEREBY RESOLVED: That it is the unanimous consensus of this
Board of Directors and the recommendation of this Board to future Boards of
Directors that the policy of establishing options on liquid futures contracts to
the maximum extent permissible by law be continued when in the best interest of
the membership and the public.
[Enlarge/Download Table]
==========================================================================================
Chapter 2
Membership
==========================================================================================
Ch2 Applicants..................................................................
200.00 Applicants for Membership........................................
201.00 Application for Membership.......................................
201.00A Examination Requirement..........................................
201.01 Responsibilities of Applicant for Membership and His Sponsors....
201.02 Maintenance of Membership Qualifications.........................
202.00 Approval for Membership..........................................
202.01 Delegation of Authority to Approve Change in Status Request......
202.01A Investor Application.............................................
202.02 Procedures for Hearings on Preliminary Denials by the Membership
Committee........................................................
202.03 Membership Committee's Preliminary Decisions.....................
203.01 Procuring a Membership or Membership Interest....................
204.00 Membership Obtained by Fraud.....................................
205.00 Agreement to Observe Rules and Regulations.......................
205.01 Acquisition of Class A Units of Ceres Trading Limited
Partnership......................................................
206.02 Gratuities.......................................................
207.00 Office Address...................................................
207.01 Primary Clearing Member..........................................
208.00 Conducting Business Under a Firm Name............................
208.01 Conducting Business Under a Firm Name............................
209.00 Indemnification of Association...................................
209.01 Floor Trading Permits............................................
209.02 Mid America Floor Access Members' Trading Privileges.............
209.03 Product Sponsor Programs.........................................
209.04 CBOT mini-sized Contract Permit Holders' Trading Privileges......
209.05 Membership in OneChicago, LLC....................................
210.00 Full Member CBOE "Exercise" Privilege............................
211.00 Associate Memberships............................................
212.00 Reciprocal Trading Privileges with LIFFE.........................
213.00 Assessments and Fees.............................................
214.00 Obligations and Duties...........................................
215.00 Associate Members Committee......................................
217.00 Applicants.......................................................
219.00 Communications From Floor........................................
220.00 Violations.......................................................
221.00 Delegation.......................................................
221.01 Delegation by Deceased Member's Estate...........................
221.02 Floor Access of Delegating Members and Delegates.................
221.03 Minimum Delegation Term..........................................
221.05 Delegates' Clearing Members......................................
221.07 Voting Rights....................................................
221.08 Requirements for Delegates of Membership Interests...............
221.09 Delegation of Firm-Owned Memberships and Membership Interests....
221.10 Indemnification of Delegators....................................
221.11 Delegation by Trust..............................................
222.00 Multiple Memberships.............................................
224.00 Trades of Non-Clearing Permit Holders............................
225.00 General Enabling Rule for Market Maker Programs..................
Ch2 Registration................................................................
230.00 Registration.....................................................
230.01 Registered Entities..............................................
230.02 Registration of Membership for Eligible Business Organizations...
[Download Table]
230.03 Designated Persons...............................................
230.04 Cooperative Association of Producers.............................
230.05 Additional Seat Requirement......................................
230.06 Eligible Business Organization Status Upon Death or Withdrawal
of Registered Member.............................................
230.07 Primary Clearing Member Permission for Member Registration.......
230.08 Doing Business in Firm (or Trade) Name...........................
230.09 Formation of Partnerships or Limited Liability Companies.........
230.10 Suspended or Insolvent Members...................................
230.11 Discipline of Partners or Members of Limited Liability Companies.
230.12 Dissolution of Partnership or Limited Liability Company..........
230.13 Relations Controlling Policy.....................................
230.14 Delegation of Approval Authority.................................
230.15 Financial Requirements...........................................
230.17 Changes in Organization..........................................
231.00 Ownership and Registration of Associate Memberships..............
Ch2 Assessments and Fees........................................................
240.00 Assessments......................................................
241.00 Members in Military Service......................................
241.01 Dues of Members in Military Service..............................
242.00 Neglect to Pay Assessment........................................
243.00 Transfer Fees....................................................
243.01 Sale and Transfer of Membership Privileges.......................
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest..........
249.01 Purchase and Sale or Transfer of Membership or
Membership Interest..............................................
250.01 Sale and Transfer of Membership Privileges.......................
250.02 Memberships Held Under Regulation 249.01(b)......................
250.03 Power-of-Attorney................................................
251.00 Membership Transfer..............................................
251.01 Member Under Investigation.......................................
252.00 Proceeds of Membership - ........................................
252.00A Claims Filed by Corporations.....................................
252.00B Interpretation of Rule 252(e)....................................
253.00 Filing Claims....................................................
253.01 Pending Arbitration..............................................
255.00 Deceased or Incompetent Member...................................
256.00 Expelled Member..................................................
257.00 Disposal of Memberships..........................................
Ch2 Insolvency..................................................................
270.00 Insolvency.......................................................
270.01 Restrictions on Operations.......................................
270.02 Procedures for Member Responsibility Actions.....................
270.03 Finality of Disciplinary Decisions and Member
Responsibility Actions...........................................
271.00 Announcement of Suspension.......................................
272.00 Insolvent Member.................................................
272.01 Bankruptcy of a Member or Non-Member.............................
272.02 Deliveries in Bankruptcy Situation...............................
273.00 Investigation....................................................
273.01 Insolvency.......................................................
274.00 Reinstatement....................................................
275.00 Suspended or Expelled Member Deprived of Privileges..............
276.00 Suspended Member-Time for Settlement.............................
277.00 Discipline During Suspension.....................................
278.00 Suspension for Default...........................................
278.01 Arbitration of Default...........................................
285.01 Financial Questionnaire..........................................
285.02 Audits...........................................................
[Download Table]
285.03 Notification of Capital Reductions............................... 239
285.04 Restrictions on Operations....................................... 240
285.05 Financial Requirements........................................... 240
285.08 Financial Arrangements........................................... 241
285.09 Trading Associations............................................. 241
286.00 Trades of Non-Clearing Members................................... 241
287.00 Advertising...................................................... 242
Ch2 Membership Interests........................................................ 243
290.00 Market Categories................................................ 243
290.01 Agricultural and Associated Market (AAM)......................... 243
290.02 Government Instruments Market (GIM).............................. 243
290.03 Index, Debt and Energy Market (IDEM)............................. 243
290.04 Commodity Options Market (COM)................................... 243
291.00 GIM Membership Interest.......................................... 243
292.00 IDEM Membership Interest......................................... 244
293.00 COM Membership Interests......................................... 245
293.01 COM Membership Rights............................................ 246
293.02 AM and COM Membership Rights..................................... 246
293.03 AM and COM Membership Rights..................................... 246
293.05 COM Membership Rights............................................ 246
293.06 COM Membership Rights............................................ 246
293.07 AM and COM Membership Rights..................................... 246
293.08 AM and COM Membership Rights..................................... 246
293.09 AM and COM Membership Rights..................................... 246
293.10 COM Membership Rights............................................ 247
293.12 IDEM Membership Rights........................................... 247
293.14 AM and COM Membership Rights..................................... 247
293.15 COM Membership Rights............................................ 247
293.16 IDEM Membership Rights........................................... 247
293.17 COM Membership Rights............................................ 247
296.00 Elimination of GIM Membership Interests.......................... 248
===============================================================================
Chapter 2
Membership
===============================================================================
Ch2 Applicants
200.00 Applicants for Membership - Any individual, other than an employee of
the Association, at least twenty-one years of age, of good character,
reputation, financial responsibility and credit who satisfies the Membership
Committee that such individual is suitable to assume the responsibility and
privileges of membership shall be eligible. 100 (08/01/94)
201.00 Application for Membership - Each application for membership shall be
in writing and filed with the Exchange. All applicants for membership shall be
investigated as to the representations contained in the application. Upon
receipt of the application for membership, the Secretary shall, within fifteen
days thereafter, make available to members of the Association the name of the
applicant, and shall post the same information on the bulletin board for a
period of at least ten days after such notification to the membership.
101 (12/01/03)
201.00A Examination Requirement - Individuals applying for membership, who
have not evidenced a broad experience in the commodity industry, will be
required to pass a general futures examination covering the basics of the
commodity industry before their membership application can be approved. 47R
(12/01/02)
201.01 Responsibilities of Applicant for Membership and His Sponsors - Any
undue delay by an applicant or his sponsors in the submission of documents
required for processing of the membership application or any undue delay by the
applicant or his sponsors in appearing may be deemed as a withdrawal of the
membership application. 1807A (08/01/94)
Ch2 Applicants
--------------
201.02 Maintenance of Membership Qualifications
1. Each applicant for membership, in accordance with the provisions of
Regulation 203.01, member and member firm immediately shall notify the
Association, in writing, upon the occurrence of any of the following
events:
- Such member's suspension or expulsion from any other contract market
or self-regulatory organization;
- Such member's plea of guilty to or conviction of any felony.
Failure to so notify the Association within ten days shall be an act
detrimental to the Association. For the purpose of this regulation,
"felony" shall mean any criminal sanction that is punishable by
imprisonment of more than a year or a fine in excess of $10,000.
Upon the Association's receipt of notification, by whatever means, of the
occurrence of any of the above-referenced events, the matter shall be
referred to the Membership Committee, which immediately shall review the
matter to determine if there is sufficient basis to recommend that
membership status be reconsidered. The Membership Committee shall advise
the Chairman of the Association of its determinations in this regard.
2. The Chairman of the Association, upon the advice of the Membership
Committee, is authorized to take summary action pursuant to this
regulation, when immediate action is necessary to protect the best
interests of the marketplace, without affording prior opportunity for
hearing. The following procedures shall apply to such actions:
(a) The respondent shall, whenever practicable, be served with a notice
before the action is taken. If prior notice is not practicable, the
respondent shall be served with a notice at the earliest possible
opportunity. The notice shall:
(1) State the action,
(2) Briefly state the reasons for the action, and
(3) State the effective time and date and the duration of the action;
(b) The respondent shall have the right to be represented by legal counsel
or any other representative of his choosing in all proceedings
subsequent to any summary action taken;
(c) The respondent shall be given an opportunity for a subsequent hearing,
within five business days, before the Membership Committee. The
hearing shall be conducted in accordance with the following
requirements:
(1) The hearing shall be promptly held before disinterested members
of the hearing body after reasonable notice to the respondent. No
member of the hearing body may serve on that body in a particular
matter if he or any person or firm with which he is affiliated
has a financial, personal or other direct interest in the matter
under consideration.
(2) Formal rules of evidence need not apply, but the hearing shall
not be so informal as to be unfair;
(3) The respondent shall have the right to invoke Rule 548.00, if
applicable;
(4) The Member Services Department shall be a party to the hearing
and shall present its case on those matters which are the subject
of the hearing;
(5) The respondent shall be entitled to appear personally at the
hearing and to be represented by counsel;
Ch2 Applicants
--------------
(6) The respondent shall be entitled to cross-examine any person(s)
appearing as witness(es);
(d) Within five business days following the conclusion of the hearing, the
Membership Committee shall render a written decision based upon the
weight of the evidence contained in the record of the proceeding and
shall provide a copy to the respondent. The decision shall include:
(1) A description of the summary action taken;
(2) The reasons for the summary action;
(3) A brief summary of the evidence produced at the hearing;
(4) Findings and conclusions;
(5) A determination that the summary action should be affirmed,
modified, or reversed; and
(6) A declaration of any action to be taken pursuant to the
determination specified in (5) above and the effective date and
duration of such action.
3. After the hearing conducted pursuant to Section 2(c) above is held before
the Membership Committee, the following additional provisions shall apply.
The Regulatory Compliance Committee, pursuant to the provisions of Rule
540.00 and Regulation 540.05, shall consider the Membership Committee's
findings and recommendations, as well as the record developed before the
Membership Committee, at the next regularly scheduled meeting of the
Regulatory Compliance Committee or at a meeting specially called by the
Chairman as the Chairman may direct. The member under review shall have the
opportunity to appear before and address the Reguatory Compliance Committee
solely with regard to the record made before the Membership Committee; the
Regulatory Compliance Committee shall not be required to entertain any new
evidence absent a showing that such evidence could not reasonably have been
presented previously to the Membership Committee. Upon full consideration
of all the evidence before it, the Regulatory Compliance Committee may
confirm the member's good standing status, restrict the member's membership
status, deny the member's floor access, issue fines, or recommend to the
Board of Directors that the member should be expelled or prohibited from
association with any member or member firm.
4. The Regulatory Compliance Committee shall vote by secret ballot to take any
action pursuant to this regulation. If two-thirds of the members present
and voting cast votes in favor of such action, the action shall be adopted.
(03/01/01)
202.00 Approval for Membership - If a majority of the Membership Committee
present and voting cast affirmative votes, the applicant shall be approved. The
power to deny such applications is expressly reserved to the Regulatory
Compliance Committee. 103 (07/01/03)
202.01 Delegation of Authority to Approve Change in Status Request - The
Chairman of the Membership Committee or a member of the Membership
Committee who has been designated by the Membership Committee
Chairman, or upon delegation by the Chairman, the Member Services and
Member Firm Staff Service Department, will have the power to approve
the request of a Full or Associate Member, a Membership Interest
Holder or a Full Member of the MidAmerica Commodity Exchange to obtain
additional Full or Associate Memberships, Membership Interests, or to
change his or her delegate status. The power to deny such a request is
expressly reserved to the Regulatory Compliance Committee.
For the purpose of this regulation, the Chairman may not delegate approval
authority to the Member Services and Member Firm Staff Services Department when
the following factors are present:
1. The applicant has answered affirmatively to any question in the
"Disciplinary Action" section of the application;
2. The applicant has indicated on the application that he or she is
indebted to any member or
Ch2 Applicants
--------------
member firm;
3. The applicant has indicated that he or she has a negative net worth;
or
4. The applicant has trading privileges on the MidAmerica Commodity
Exchange only.
The foregoing provisions shall not apply to a Full Member or Full Member
Delegate of the Exchange who was initially approved for membership pursuant to
Regulation 202.01A, unless such applicant intends to become a Full Member or
Full Delegate solely for the purpose of becoming a regular member of the Chicago
Board Options Exchange ("CBOE") pursuant to Rule 210.00 and Article FIFTH(b) of
the CBOE's Certificate of Incorporation. (11/01/99)
202.01A Investor Application - Any individual who wishes to acquire a
membership or membership interest for investment purposes only shall file an
investor application as prescribed by the Exchange. The name of the individual
investor applicant will be posted and made available to the membership in
accordance with the provisions of Rule 201.00. The application will be subject
to approval by the Chairman of the Membership Committee or, upon delegation by
the Chairman, the Member Services and Member Firm Staff Services Department. The
power to deny such an application is expressly reserved to the Regulatory
Compliance Committee. An individual who is approved as an investor and who
subsequently wishes to engage in trading activities on the Exchange will be
subject to filing and approval of a long form membership application as
prescribed by the Exchange. (06/01/04)
202.02 Procedures for Hearings on Preliminary Denials by the Membership
Committee - In connection with all hearings conducted with respect to
preliminary denials of applications for membership or any other denial by the
Membership Committee, the following procedures shall be followed:
(a) The respondent shall be entitled in advance of the hearing to examine all
books, documents, or other tangible evidence in the possession or under the
control of the Association upon which the Member Services and Member Firm
Staff Services Department will rely in presenting the issue(s) contained in
the Preliminary Denial Letter or which are relevant to that (those)
issue(s). Respondent shall make its request to examine any materials by
submitting it in writing to the Member Services and Member Firm Staff
Services Department as soon as practicable. At least ten (10) business days
in advance of the hearing, the respondent shall submit to the hearing
officer, with a copy to the Member Services and Member Firm Staff Services
Department, copies of all documents which the respondent intends to rely
upon in presenting his or her case, as well as the names of any witnesses
the respondent intends to call.
(b) The Member Services and Member Firm Staff Services Department shall be
entitled in advance of the hearing to examine all books, documents, or
other tangible evidence in the possession or under the control of the
respondent which will be relied upon by the respondent in presenting the
issue(s) contained in the Preliminary Denial Letter or which are relevant
to those issues. The Member Services and Member Firm Staff Services
Department shall make its request to examine any materials by submitting it
in writing to the respondent as soon as practicable. At least ten (10)
business days in advance of the hearing, the Member Services and Member
Firm Staff Services Department shall submit to the hearing officer, with a
copy to respondent, copies of all documents which the Member Services and
Member Firm Staff Services Department intends to rely upon in presenting
its case, as well as the names of any witnesses the Department intends to
call;
(c) Any dispute over a request to examine any book, document. or other tangible
evidence in the possession or under the control of either party shall be
submitted to the Chairman of the Committee for resolution only after the
parties have made all reasonable attempts to resolve the dispute among
themselves;
(d) If objected to or upon its own motion, the hearing panel may refuse to
consider any book, record, document or other tangible evidence which was
not made available to the opponent of the evidence or was not disclosed in
accordance with this paragraph. The panel may also exclude the testimony of
any witness whose name was not submitted to the opponent of the witness as
provided above. The hearing panel may consider such evidence or testimony
upon a clear showing that such evidence was not ascertainable by due
diligence at least ten (10) business days in advance of the hearing and
that there was insufficient time prior to the hearing to bring such
evidence to the attention of the opposing party;
Ch2 Applicants
--------------
(e) The hearing shall be promptly held before disinterested member of the
Membership Committee or any duly appointed Subcommittee thereof after
reasonable notice to the parties. No member of the Membership Committee may
serve on a hearing panel in a particular matter if he or she or any person
or firm with which he or she is affiliated has financial, personal or other
direct interest in the matter under consideration. After service of the
preliminary denial letter, both parties to the hearing are prohibited from
making any ex parte contacts with any member of the Membership Committee.
For the purpose of this paragraph, an "ex parte contact" shall mean any
communication, either written or oral, which relates directly or indirectly
to the issue to be heard and which is made to a member of the Membership
Committee who will be a member of the panel which shall decide the issue.
(f) Formal rules of evidence need not apply, but the hearing shall not be so
informal as to be unfair;
(g) The respondent shall have the right to invoke Rule 548.00, if applicable;
(h) The Member Services and Member Firm Staff Services Department shall be a
party to the hearing and shall present its case on those issues which are
the subject of the hearing;
(i) The respondent shall be entitled to appear personally at the hearing and to
be represented by counsel;
(j) The parties shall be entitled to cross-examine any person(s) appearing as
witness(es);
(k) The parties shall be entitled to call witnesses and to present such
evidence as may be relevant to he issue(s) presented;
(l) Pursuant to Rule 545.00, all persons within the jurisdiction of the
Association who are called as witnesses shall be obliged to appear at the
hearing and/or to produce evidence;
(m) Substantially verbatim record of the hearing, capable of being accurately
transcribed, shall be made and shall become part of the record of the
proceeding. (07/01/97)
202.03 Membership Committee's Preliminary Decisions - All preliminary
decisions rendered by the Membership Committee shall be in writing and be based
upon the weight of the evidence contained in the record of the proceeding. A
copy of the decision shall be provided to the respondent and shall include:
(a) The issue(s) presented to the Committee;
(b) The response submitted by the applicant or member, if any, or a summary of
the answer;
(c) A brief summary of the evidence produced at the hearing;
(d) A statement of findings and conclusions with respect to the issue(s)
presented;
(e) A declaration containing the Committee's preliminary decision;
(f) All such decisions shall be rendered within thirty business days after the
conclusion of the hearing, unless, by virtue of the complexity of the issue
or other special circumstances, additional time is required;
(g) The Committee shall give respondent reasonable notice of the date on which
its recommendation, based on its preliminary decision, will be forwarded to
the Regulatory Compliance Committee for its consideration. (07/01/97)
203.01 Procuring a Membership or Membership Interest - An individual who
wishes to procure a membership privilege may do so either prior or subsequent to
being approved for a particular membership status. A person who has acquired a
membership privilege prior to being approved for a particular membership status
as provided in Regulation 249.01 shall become a member or membership interest
holder following such approval upon signing the appropriate register of the
Association. A person approved for a particular membership status prior to
acquiring a membership or membership interest shall become a member or
membership interest holder if within six (6) months after he/she has been
notified of such approval, or within such extension of said period as may be
granted by the Exchange, he/she shall procure a membership or membership
interest and sign the appropriate register of the Association; otherwise his/her
approval for a particular membership status
Ch2 Applicants
--------------
shall be deemed vacated. (03/01/01)
204.00 Membership Obtained by Fraud - A membership obtained by fraudulent
representations or concealment shall be disposed of by the Board in accordance
with Rule 257.00. 106 (08/01/94)
205.00 Agreement to Observe Rules and Regulations - Applicants for membership
shall be required to sign a written agreement to observe and be bound by the
Charter, Rules, and Regulations of the Association, and all amendments
subsequently made thereto. 107 (08/01/94)
205.01 Acquisition of Class A Units of Ceres Trading Limited Partnership -
Any person or entity who acquires ownership of a membership or a membership
interest after July 17, 1992 shall, simultaneously with the acquisition of
ownership of such membership or membership interest, purchase a Class A unit of
limited partnership interest of Ceres Trading Limited Partnership, a Delaware
limited partnership, of the appropriate sub-class (as set forth in Section 3.8
of the Agreement of Limited Partnership governing Ceres Trading Limited
Partnership) from the person or entity from which he, she or it is acquiring
ownership of the membership or membership interest (the "Transferor"), or if
such Transferor does not own a unit of limited partnership interest of Ceres
Trading Limited Partnership, from the General Partner of Ceres Trading Limited
Partnership. The proceeds payable to a Transferor who does not own a unit of
limited partnership interest of Ceres Trading Limited Partnership shall be equal
to (a) the aggregate proceeds paid by the Purchaser for the membership or
membership interest plus a unit of limited partnership interest reduced by (b)
the amount paid to the General Partner for such unit of limited partnership
interest under Section 10.3(b) of the Agreement of Limited Partnership. The
acquisition of ownership of a membership or membership interest shall constitute
a request of the acquirer that the books and records of Ceres Trading Limited
Partnership reflect the acquirer's admission as a substituted limited partner
thereof, and shall constitute the acquirer's agreement to be bound by the
Agreement of Limited Partnership. (08/01/94)
206.02 Gratuities - No member of the Association shall employ any employee of
the Association or of the Clearing Services Provider, for any service outside
the hours of regular employment by the Association or such Clearing Sevices
Provider, without having first obtained the approval therefor of the President
of the Exchange, or of the Clearing Services Provider, as the case may be, and
registering therewith the name of said employee, the nature of the services
rendered, and the amount of said compensation.
No member shall give any compensation or gratuity to an employee of the Clearing
Services Provider unless the giving of such compensation or gratuity be first
submitted in writing to the Clearing Services Provider and approved.
No member, member firm or employee thereof shall directly or indirectly give or
offer to give any compensation or gratuity in excess of $250 (or having a
reasonable aggregate value in excess of $250) per person per year to any
employee of the Association. Employees of the Association are forbidden to
accept any compensation or gratuity in excess of $250 from any member, member
firm or employee thereof for any service rendered or to be rendered unless the
giving of such compensation or gratuity be first submitted in writing to the
President and approved. A gift of any kind is considered a gratuity.
No member, member firm or employee thereof, shall give or offer to give
gratuities to any other member, member firm or employee thereof in an amount
exceeding that which may be considered reasonable and proper under normal
business practices as determined by the Business Conduct Committee. The giving
or offering to give gratuities to a member, member firm or employee thereof is
not to become a vehicle to obtain Exchange related business in a non-competitive
fashion. Failure to comply with this Regulation may be deemed an act detrimental
to the interest or welfare of the Association. (01/01/04)
207.00 Office Address - Every member shall register with the Secretary an
address and subsequent changes thereof where notices may be served. 128
(08/01/94)
207.01 Primary Clearing Member - Every member shall register the name and
clearing house number of his or her Primary and Secondary Clearing Member with
the Member Services and Member Firm Staff Services Department. If applicable,
the registration shall include the name and clearing house number of any
division of the clearing member firm. In addition, every member shall notify the
Ch2 Applicants
--------------
Member Services and Member Firm Staff Services Department of any changes in his
or her Primary and/or Secondary Clearing Member, including the name and clearing
house number of the division thereof if applicable. (07/01/97)
208.00 Conducting Business Under a Firm Name - An individual may conduct his
business under a firm name provided it is clearly stated on all letterheads,
statements, and other business forms that the individual is the sole owner of
the firm. 132 (08/01/94)
208.01 Conducting Business Under a Firm Name - An individual conducting
business under a firm name as a sole proprietor pursuant to Rule 208.00 shall
submit a statement to the Department of Member Services of this Association
giving the name, address, and nature of the business conducted. The member shall
report immediately any change in the required information. 1803 (08/01/94)
209.00 Indemnification of Association - In any legal proceeding brought
against the Association and alleging its failure to prevent, detect or require
certain conduct of a member or registered eligible business organization, which
conduct or inaction is alleged to be in violation of any law or of the Rules and
Regulations of the Association, such member or registered eligible business
organization shall indemnify and hold the Association harmless for the full
amount of any expense (including attorney's fees), judgment or settlement paid
by it in respect to such proceeding. 134 (04/01/98)
209.01 Floor Trading Permits - The Board of Directors may at any time in its
discretion establish a limited number of floor trading permits as needed to
promote orderly and liquid markets in new and existing contracts. Such permits
shall convey to qualified individuals a temporary right to trade as principal
and/or broker for others in designated contracts on the floor of the Exchange.
Such permits shall not be convertible into memberships or membership interests
or carry any other rights or incidents not expressly specified in creating such
permits. (08/01/94)
209.02 MidAmerica Floor Access Members' Trading Privileges - Floor Access
Members of the MidAmerica Commodity Exchange shall be eligible to trade as
principal and as broker for others in Institutional Index futures contracts on
the Exchange Floor. Such persons may communicate from the Exchange Floor with
non-member customers in the same manner as members may do so, but only with
respect to Institutional Index futures contracts.
In the exercise of these privileges, such persons shall be subject to the
jurisdiction of the Association and to all duties and obligations imposed upon
members, registered firms or other approved persons under the Rules and
Regulations; provided, however, that the Board may exempt such persons from any
such duty or obligation which, in its sole judgement, is incompatible or in
conflict with, or is unrelated to, the activities performed by them. (08/01/94)
209.03 Product Sponsor Programs - The Board of Directors may at any time in
its discretion establish product sponsor programs as needed to promote orderly
and liquid markets in new contracts. A product sponsor program shall convey to
qualified members and member firms such inducements as the Board may grant in
return for a product sponsor's participation in a particular contract market. A
product sponsor program shall not create any interests or carry any other rights
or incidents thereto which are not expressly specified in creating the program.
(08/01/94)
209.04 CBOT mini-sized Contract Permit Holders' Trading Privileges - Floor
Access Members of the MidAmerica Commodity Exchange ("Mid Am") who are on record
as of September 1, 2001 and who remain Floor Access Members thereafter, at least
for as long as Mid Am continues to have contracts listed for trading, thereby
shall be classified as CBOT mini-sized Contract Permit Holders. These Permit
holders will be eligible to trade as principal and as broker for others in CBOT
mini-sized Corn, Soybean, and Wheat futures and in Rough Rice futures and
futures options contracts on the Exchange Floor. Such persons may communicate
from the Exchange Floor with non-member customers in the same manner as members
may do so, but only with respect to CBOT mini-sized Corn, Soybean and Wheat
contracts and Rough Rice contracts.
In the exercise of these privileges, such persons shall be subject to the
jurisdiction of the Association and to all duties and obligations imposed upon
members, registered firms or other approved persons under the Rules and
Regulations; provided, however, that the Association may exempt such persons
from any such duty or obligation which, in its sole judgement, is incompatible
or in conflict with, or is unrelated to, the activities performed by them.
The Board or a Committee designated by the Board may, in its discretion, impose
fees, charges and assessments upon Permit Holders pursuant to this regulation.
(04/01/03)
209.05 Membership In OneChicago, LLC - Each holder of Full, Associate, COM,
GIM or IDEM member trading privileges is a member of OneChicago, LLC, and to the
extent provided in OneChicago rules, becomes bound by OneChicago rules and
subject to the jurisdiction of OneChicago by accessing or entering any order
into the OneChicago System. (11/01/02)
210.00 Full Member CBOE "Exercise" Privilege - In accordance with the
Agreement entered into on September 1, 1992 (the "1992 Agreement") between the
Exchange and the Chicago Board Options Exchange ("CBOE"), Eligible CBOT Full
Members who maintain all appurtenant trading rights and privileges of a Full
Membership, including any new trading rights or privileges granted, assigned or
issued to a CBOT Full Membership to the extent such right or privilege is deemed
under the provisions of such Agreement to be appurtenant to the CBOT Full
Membership, are eligible to become regular members of the CBOE pursuant to
Article Fifth(b) of CBOE's Certificate of Incorporation. - ("Article Fifth(b)"),
as follows:
(a) A CBOT Full Member may delegate all of his trading rights and
privileges of Full Membership to an individual who will then be
eligible to become a regular CBOE member pursuant to Article Fifth(b);
provided, however, if a CBOT Full Member delegates some, but not all,
of the appurtenant trading rights and privileges of Full Membership,
then neither the member nor the delegate will be eligible to be a CBOE
regular member pursuant to Article Fifth(b). No person who is not
either an Eligible CBOT Full Member or an Eligible CBOT Full Member
Delegate (See Rule 221.00(g)) shall knowingly apply to become, or
knowingly remain, a regular member of CBOE pursuant to Article
Fifth(b).
For purposes of the 1992 Agreement, an "Eligible CBOT Full Member"
means an individual who at the time is the holder of one of the One
Thousand Four Hundred and Two (1,402) CBOT Full Memberships existing
on the date of the 1992 Agreement and who is in possession of all
trading rights and privileges appurtenant to such CBOT Full
Membership. In the event a CBOT Full Membership is registered for a
partnership, corporation or other entity, only the individual who is
the holder of such CBOT Full Membership and who is in possession of
all trading rights and privileges appurtenant to such CBOT Full
Membership shall be deemed to be an "Eligible CBOT Full Member."
"Trading rights and privileges appurtenant to such CBOT Full
Membership" means (1) the rights and privileges of a CBOT Full
Membership which entitle a holder or delegate to trade as principal
and broker for others in all contracts traded on the CBOT, whether by
open outcry, by electronic means, or otherwise during any segment of a
trading day when trading is authorized; and (2) every trading right or
privilege granted, assigned or issued by CBOT after the effective date
of the 1992 Agreement to holders of CBOT Full Membership, as a class,
but excluding any right or privilege which is the subject of an option
granted, assigned or issued by CBOT to a CBOT Full Member and which is
not exercised by such CBOT Full Member.
(b) In accordance with the Agreement entered into on December 17, 2003,
between the Exchange and the CBOE (the "2003 Agreement"), and
consistent with, and in furtherance of, the 1992 Agreement, the CBOT
will issue upon written request to any individual, partnership,
corporation or other entity that owns one of the One Thousand Four
Hundred and Two (1,402) CBOT Full Memberships an "Exercise Right
Privilege," which is the Exercise Right that, to the extent provided
in the Rules and Regulations of the Exchange and the 2003 Agreement,
has been unbundled from the other rights and privileges appurtenant to
a CBOT Full Membership in order to enable the unbundled Exercise Right
Privilege to be bought, sold or leased separate and apart from such
CBOT Full Membership.
In accordance with the Agreement entered into on August 7, 2001
between the Exchange and the CBOE (the "2001 Agreement") and the
related Agreement entered into on October 7, 2004 among the Exchange,
CBOT Holdings and the CBOE (the "2004 Agreement"), and consistent
with, and in furtherance of, the 1992 Agreement and the 2003
Agreement, upon completion of the proposed strategic restructuring of
CBOT an individual shall be deemed to be an Eligible CBOT Full Member
within the meaning of Paragraph (a) above only if the individual: (i)
is the owner of 27,338 shares of Class A common stock of CBOT Holdings
(whether restricted or unrestricted and without regard to any series
thereof, such number being subject to anti-dilution adjustment in the
event the Class A common stock is subject to a stock split, reverse
split, stock dividend or other stock distribution made to existing
shares); (ii) is the owner of one Series B-1 membership in the CBOT
Subsidiary; (iii) is in possession of all of the other rights and
privileges appurtenant to a CBOT Full Membership, (iv) meets the
applicable membership and eligibility requirements of the CBOT and is
deemed to be a "CBOT Full Member" under the Rules and Regulations then
in effect and (v) if a CBOT Full Membership is one in respect of which
the CBOT has issued the Exercise Right Privilege, the individual must
also be in possession of one Exercise Right Privilege. The holder of a
CBOT Full Membership in respect of which an Exercise Right Privilege
has not been issued shall qualify as an Eligible CBOT Full Member if
the requirements of the 1992 Agreement are satisfied, without having
to possess an Exercise Right Privilege.
Exercise Right Privileges may be separately bought, sold, leased, or
otherwise transferred and may be unbundled and rebundled with CBOT
Full Memberships in respect of which an Exercise Right Privilege been
issued, for purposes of qualifying the holder thereof as an Eligible
CBOT Full Member. The unbundling and issuance, and the sale, lease or
transfer of an Exercise Right Privilege by a CBOT Full Member shall
not effect the status of such CBOT Full Member as a CBOT Full Member
under these Rules, except to the extent otherwise provided in this
Rule 210.00 and Rule 221.00. For purpose hereof, the words "possess"
and "in possession of" shall be deemed to include possession by
ownership or lease, or as a nominee.
(c) In connection with the sale or transfer of a CBOT Full Membership, or
upon completion of the proposed restructuring of the CBOT the Series
B-1 membership in the CBOT subsidiary, in which the associated
Exercise Right Privilege has been previously issued by the Exchange
and sold or transferred to a third party, the seller or transferor and
the purchaser or transferee shall acknowledge in writing in a manner
acceptable to the Exchange that the CBOT Full Membership or the Series
B-1 membership in the CBOT subsidiary, as applicable, being
transferred or acquired does not have associated with it an Exercise
Right Privilege and therefore such purchaser or transferee, or such
purchaser's or transferee's subsequent transferees, may not become a
regular member of CBOE pursuant to Article Fifth(b) without otherwise
possessing the Exercise Right Privilege and upon completion of the
proposed restructuring of the CBOT, 27,338 shares of Class A common
stock of CBOT Holdings (subject to anti-dilution adjustment, as
applicable). A copy of such written acknowledgement shall be
maintained by the CBOT in accordance with applicable document
retention policies and procedures. The ownership of every Exercise
Right Privilege shall be recorded in the books and records of the
Exchange. No claim of ownership of an Exercise Right Privilege shall
be recognized, and no sale, lease or other transfer of an Exercise
Right Privilege or of any interest therein shall be valid or effective
for any purpose whatsoever, unless and until it is duly reflected in
the books and records of the CBOT. Subject to the foregoing, persons
and entities who are not Members of the Exchange or any subsidiary or
parent thereof or otherwise the holders of Membership Interests of the
Exchange or any subsidiary or parent thereof, including, without
limitation, the CBOE, shall be free to purchase and to hold, lease or
sell Exercise Right Privileges, and notwithstanding anything else to
the contrary in Regulation 249.01 or any other Rule or Regulation of
the Exchange, shall not be obligated to apply or qualify for
membership at the Exchange solely for the purposes of purchasing,
holding, leasing or selling Exercise Right Privileges.
(d) Without limiting the application of other Rules and Regulations of the
Exchange to Exercise Right Privileges, for purposes of clarity, Rules
252.00 and 276.00 and Regulation 249.01 shall be deemed to apply to
Exercise Right Privileges, and the holders, transferors and
transferees thereof, in the same manner as Memberships and Membership
Interests, and, in each case, the holders, transferors and transferees
thereof, unless the context requires otherwise, and except that the
CBOE shall be permitted to make one or more offers to purchase a
substantial number of Exercise Right Privileges from the holders
thereof and to acquire and own Exercise Right Privileges purchased in
such offers without regard to the requirements of Regulation 249.01
other than the requirements of Regulation 249.01 reasonably related to
the filing and settlement of claims against the proceeds of any such
purchase by the CBOE pursuant to Rule 252.00, which shall in all
circumstances apply to purchases of Exercise Right Privileges by the
CBOE. In addition, the CBOE shall not be obligated to pay to the CBOT
a transfer fee pursuant to Rule 243.00 upon consummation of one or
more transactions in connection with any offer by it to purchase a
substantial number of Exercise Right Privileges. For purposes of this
Paragraph (d), a "substantial number of Exercise Right Privileges"
shall mean an amount equal to the greater of (1) 20% of the Exercise
Right Privileges then in existence, whether bundled or unbundled from
CBOT Full Membership, and not held by the CBOE and (2) 50 Exercise
Right Privileges.
Ch2 Applicants
--------------
211.00 Associate Memberships - Associate Members shall be allowed to trade,
as hereinafter provided, all existing and prospective future contracts and
options contracts which shall be listed from time to time in the Government
Instruments Market; Index, Debt and Energy Market; and Commodity Options Market
categories pursuant to Rule 290.00. An Associate Member shall have the right,
subject to the Rules and Regulations of the Association, to trade as principal
and as broker for others and to solicit orders from others on the Floor of the
Exchange, in all eligible contracts and options as designated above. Associate
Memberships shall not carry with them the attributes of full memberships of the
Association under the Fifth Article of the Certificate of Incorporation of the
Chicago Board Options Exchange. (08/01/94)
212.00 Reciprocal Trading Privileges with LIFFE -
(a) (1) Subject to the provisions of the Link Agreement with LIFFE and the
LIFFE rules, one who owns or is registered for an undelegated Full or Associate
Membership and is authorized by the Association for these purposes may (A) enter
the trading floor of the LIFFE market, (B) trade contracts in the terms of
Designated CBOT Contracts on the trading floor of the LIFFE market and (C)
communicate from the trading floor of the LIFFE market to persons not on that
floor, with respect to Designated CBOT Contracts.
(2) A member who trades contracts in the terms of Designated CBOT Contracts
on the trading floor of the LIFFE market shall be eligible for member
transaction fees assessed by the Exchange on positions transferred to the
Clearing House.
(3) During any period when the rights granted by this Rule are being
exercised at LIFFE, the membership may not be used by anyone to trade on the
floor of the Exchange.
Ch2 Applicants
--------------
(b) (1) Subject to the provisions of the Link Agreement with LIFFE and the
rules and regulations of the Association, a member of LIFFE or a trader
registered with a member of LIFFE (but not a leaseholder) who is authorized
by LIFFE for these purposes, may (A) enter the floor of the Exchange, (B)
trade contracts in the terms of Designated LIFFE Contracts on the floor of
the Exchange and (C) communicate from the Floor of the Exchange with
persons not on the Floor of the Exchange, with respect to Designated LIFFE
Contracts.
(2) The primary clearing member of such a person, referred to in (b)(1)
above, shall guarantee his obligations under Rules 252.00 and 253.00.
(3) Upon revocation of such a person's primary clearing authorization, the
Secretary shall give written notice thereof to all members and delegates.
Thereafter, all members and delegates who may have claims against him may file
claims in the same manner as provided in Rules 252.00 and 253.00 of the
Association. The primary clearing member shall be responsible for the payment of
those claims allowed by the Board and not satisfied promptly by such a person
whose primary clearing authorization has been revoked. (06/01/97)
213.00 Assessments and Fees - Associate Members shall be responsible for all
operating assessments and exchange service fees as if a full member of the
Association. 863 (08/01/94)
214.00 Obligations and Duties - Associate Members shall be subject to all
Rules and Regulations of the Association including all specific duties and
obligations imposed on them by the Rules and Regulations, as well as those
duties and obligations imposed upon members, registered firms or other approved
persons under the Rules and Regulations; provided, however, the Board may exempt
Associate Members from any such duty or obligation which is incompatible with or
in conflict with or unrelated to, the activities performed by them. 864
(08/01/94)
215.00 Associate Members Committee - There will be an elected Committee of
Associate Members whose purpose will be to represent the rights and privileges
of the Associate Membership and to promote those rights and privileges to the
mutual benefit of the general membership.
The Committee shall consist of fifteen (15) Associate Members elected on the
Annual Election date by the Associate Membership. At the first election
following the adoption of this Rule, eight members will be elected for a two-
year term and seven members will be elected for a one-year term. Thereafter,
seven members will begin a new two-year term each even-numbered year and eight
members will begin a new two-year term each odd-numbered year. The Committee
will select its Chairman and Vice Chairman. The Chairman of this Committee will
be the liaison to the Chairman of the Board of Directors. 865 (08/01/94)
217.00 Applicants - Applicants for Associate Memberships shall be approved in
the same manner and under the same conditions and procedures as are applicants
for full membership. 867 (08/01/94)
219.00 Communications From Floor - Associate Members may communicate from the
Floor of the Exchange during business hours with non-member customers in the
same manner as members, but only with respect to eligible futures contracts or
options as defined in Rule 211.00. 869 (08/01/94)
220.00 Violations - In addition to being bound to comply with the Rules and
Regulations of the Association to which all members are bound, unless exempted
by the Board under Rule 214.00, it shall be an offense against the Association
for an Associate Member to:
(1) Execute a trade in any futures contracts or options that are not eligible
as defined in Rule 211.00;
(2) Place an order on the Floor of the Exchange for the execution of any
futures contracts or options that are not eligible as defined in Rule
211.00; or
(3) Engage in words or deeds which represent, or are reasonably calculated to
represent, that he is a holder of a full membership. 870 (08/01/94)
221.00 Delegation - An individual member may delegate the rights and
privileges of Full and/or Associate Memberships to an individual (a "delegate")
upon the following terms and conditions:
(a) The delegate shall first be approved by the Exchange under the standards of
Rule 200.00 and shall sign a written agreement to observe and be bound by
the Charter, Rules, and Regulations of the
Ch2 Applicants
--------------
Association, and all amendments subsequently made thereto: Provided,
however, an approved delegate having no outstanding disciplinary penalties
and no restrictions pursuant to Rule 511.00 or 512.00 shall remain approved
to enter a new delegation agreement within six (6) months following the
termination of the previous delegation agreement. The Exchange may, in its
discretion, grant extensions of this six (6) month approval period.
(b) The delegation agreement, any amendment thereto, and any termination,
revocation, or renewal thereof, shall be in writing in such form as the
Exchange may prescribe, and a copy thereof shall be filed by the member
with the Exchange as a precondition to its effectiveness: Provided,
however, the delegation agreement shall be null and void automatically upon
the happening of any of the following events:
(1) Loss of any of the qualifications for entering a delegation agreement,
such as sale of the membership of the member or expulsion of the
member or the delegate; or
(2) The suspension of the member by the Association within three months of
the date of the filing of the delegation agreement by the member with
the Exchange;
(c) (1) The member shall remain liable (for an amount up to, but not in excess
of, the value of the seat the member has leased) for the debts, acts and
delinquencies of the delegate arising from the delegate's exercise of
rights and privileges of membership. The membership so delegated may be
sold to satisfy any such liability in accordance with the Rules and
Regulations of the Association. Delegation shall not relieve the member of
any of his obligations or liabilities which he might otherwise have by the
virtue of being a member of the Association to other members of the
Association;
(2) Upon the termination or expiration of the delegation agreement, the
Secretary shall make notice thereof available to the membership.
Thereafter, all members and delegates who may have claims against the
delegate may file claims in the same manner as provided in Rule 252.00 of
the Association. The member entering into a delegation agreement shall be
responsible for the payment of those claims allowed by the Board and not
satisfied promptly by the delegate, but only to the extent of the value of
the membership so delegated;
(d) A delegate shall not be entitled to register under Rule 230.00 for an
eligible business organization, except as otherwise provided in Rule 230.00
and Regulation 230.02;
(e) The Finance Committee, in its discretion, may impose fees, charges and
assessments upon members and delegates under this Rule; and
(f) Upon the filing of a delegation agreement or renewal notice with the
Exchange, notice thereof shall be posted promptly on the bulletin board,
and shall be made available upon request to the Membership and to the
primary clearing member for the member party to the delegation agreement.
(g)(i) In accordance with the Agreement entered into on September 1, 1992 ("the
1992 Agreement") between the Exchange and the Chicago Board Options
Exchange ("CBOE"), only an individual who is an "Eligible CBOT Full Member"
or an "Eligible CBOT Full Member Delegate", as those terms are defined in
the 1992 Agreement, is a "member" of the Exchange within the meaning of
paragraph (b) of Article Fifth of CBOE's Certificate of Incorporation
("Article Fifth(b)") and only such individuals are eligible to become and
to remain regular members of the CBOE pursuant to Article Fifth(b). No
person who is not either an Eligible CBOT Full Member or an Eligible CBOT
Full Member Delegate shall knowingly apply to become, or knowingly remain,
a regular member of CBOE pursuant to Article Fifth(b).
(g)(ii) For purposes of the 1992 Agreement, an "Eligible CBOT Full Member
Delegate" means the individual to whom a CBOT Full Membership is delegated
(leased) and who is in possession of all trading rights and privileges
appurtenant to such CBOT Full Membership. "Trading rights and privileges
appurtenant to such CBOT Full Membership" means (1) the rights and
privileges of a CBOT Full Membership which entitle a holder or delegate to
trade as principal and broker for others in all contracts traded on the
CBOT, whether by open outcry, by electronic means, or otherwise, during any
segment of a trading day when trading is authorized; and (2) every trading
right or privilege granted, assigned or issued by CBOT after the effective
date of this Agreement to holders of CBOT Full Memberships, as a class, but
excluding any right or privilege which is the subject of an option granted,
assigned or issued by CBOT to a CBOT Full Member and which is not exercised
by such CBOT Full Member.
(g)(iii) In accordance with the Agreements entered into on August 7, 2001 and
December 17, 2003 respectively, between the Exchange and the CBOE and the
Agreement entered into on October 7, 2004 among the Exchange, CBOT Holdings
and the CBOE, and consistent with, and in furtherance of, the 1992
Agreement, upon completion of the proposed strategic restructuring of the
CBOT, an individual delegate of such CBOT Full Membership shall be deemed
to an Eligible CBOT Full Member Delegate only if the individual: (i) in
possession of 27,338 shares of Class A common stock of CBOT Holdings
(whether restricted or unrestricted and without regard to any series
thereof, such number being subject to anti-dilution adjustment in the event
the Class A common stock is subject to a stock split, reverse split, stock
dividend or other stock distribution made to existing shareholders); (ii)
is in possession of one Series B-1 membership in the CBOT subsidiary; (iii)
holds one of the items listed above in (i) or (ii) through delegation
rather than ownership; (iv) is in possession of all of the other rights and
privileges appurtenant to a CBOT Full Membership; (v) meets the applicable
membership and eligibility requirements of the CBOT and is deemed to be a
"CBOT Full Member Delegate" under the Rules and Regulations of the Exchange
then in effect and (vi) if a CBOT Full Membership is one in respect of
which the CBOT has issued the Exercise Right Privilege, an individual
delegate of such CBOT Full Membership shall be deemed to be an Eligible
CBOT Full Member Delegate only if the individual is also in possession of
one Exercise Right Privilege. The delegate of a CBOT Full Membership in
respect of which an Exercise Right Privilege has not been issued shall
qualify as an Eligible CBOT Full Member Delegate if the requirements of the
1992 Agreement are satisfied, without having to possess an Exercise Right
Privilege.
Exercise Right Privileges may be separately bought, sold, leased, or
otherwise transferred and may be unbundled and rebundled with the lease of
CBOT Full Memberships in respect of which an Exercise Right Privilege has
been issued, for purposes of qualifying the delegate thereof as an Eligible
CBOT Full Member Delegate. For purpose hereof, the words "possess" and "in
possession of" shall be deemed to include possession by ownership or lease,
or as a nominee.
(g)(iv) In connection with the delegation (lease) of a CBOT Full Membership, or
upon completion of the proposed restructuring of the CBOT the Series B-1
membership in the CBOT subsidiary in which the associated Exercise Right
Privilege has been previously issued by the Exchange and sold or
transferred to a third party, the delegation agreement contemplated in
Paragraph (b) above shall provide, among other things, that the delegate
acknowledges that the CBOT Full Membership or the Series B-1 membership in
the CBOT subsidiary, as applicable being delegated (leased) does not have
associated with it an Exercise Right Privilege and therefore such delegate
may not become a regular member of CBOE pursuant to Article Fifth(b)
without otherwise possessing the Exercise Right Privilege.
Ch2 Applicants
--------------
(07/01/04)
221.01 Delegation by Deceased Member's Estate - The legal representative of
a deceased member's estate, during the pendency of probation of the deceased
member's estate, may delegate such deceased member's trading privileges in
accordance with Rule 221.00. Upon transfer of the estate assets to the deceased
member's heirs, the provisions of Regulation 249.01 shall apply. (08/01/94)
221.02 Floor Access of Delegating Members and Delegates
(a) A full or associate member who has delegated the rights and privileges of
his only membership, or of all his memberships, for any of the three
trading segments, pursuant to Rule 221.00, and who does not hold a Floor
Clerk or Broker Assistant badge, shall not have physical access to the
Floor of the Exchange for such trading segment(s) during the effective
period of such delegations; provided that this Regulation shall not apply
to "Twenty-Five Year Members" as described in Regulation 301.10.
Provided further, that members of the Board of Directors who have delegated
the rights and privileges of their only membership, or of all of their
memberships, may have physical access to the Floor of the Exchange to the
same extent as do "Twenty-Five Year Members" as described in Regulation
301.10.
(b) A delegate who does not hold a Floor Clerk or Broker Assistant badge shall
not have physical access to the Floor of the Exchange during the trading
segment(s) in which he is not entitled to the rights and privileges of
membership. (07/01/99)
221.03 Minimum Delegation Term - No delegation agreement shall have a term of
less than thirty (30) days. The foregoing limitation shall not apply to
delegation agreements for Full Member Delegates who will utilize their
memberships solely for the purpose of becoming a regular member of the Chicago
Board Options Exchange ("CBOE") pursuant to Rule 210.00 and Article FIFTH(b) of
the CBOE's Certificate of Incorporation. (11/01/99)
221.05 Delegates' Clearing Members -
(1) Except as provided in paragraph (2) below, no delegate may receive clearing
authorization from any Primary Clearing Member, or from any other Clearing
Member, pursuant to Rule 333.00 without first having:
(a) obtained written permission from his/her member-delegator; and
(b) filed such written permission with the Department of Member Services.
(2) In the event that a delegate cannot obtain written permission from his/her
member-delegator before he or she receives clearing authorization from a
new Primary Clearing Member, such delegate may nevertheless obtain such
clearing authorization if the new Primary Clearing Firm executes and
submits to the Department of Member Services a suretyship agreement inuring
to the benefit of the member-delegator and in a form approved by the
Exchange. However, the delegate must obtain his/her member-delegator's
permission within 30 days of changing Primary Clearing Members. If the
delegate does not obtain the permission within that period, he or she will
be denied access to the floor. The delegate will not be able to regain
access to the floor until such permission is submitted to the Department of
Member Services. (04/01/99)
221.07 Voting Rights - No Full Member or Associate Member may delegate
(within the meaning of Rule 221.00) to any other person the voting rights
associated with their membership; provided, however, that nothing herein shall
prohibit a member from naming as their proxy a person or persons designated as
such by the Corporation in connection with any annual or special Meeting of the
Membership.
221.08 Requirements for Delegates of Membership Interests* - The Board, in
its discretion, may require that each person who is granted status as a delegate
of a COM, GIM or IDEM Membership Interest pursuant to a delegation agreement
entered into on or after (effective date to be determined), execute up to a
specified percentage, not to exceed 20%, or a specified number not to exceed 200
of such person's round turn principal transactions per month in one or more
contracts designated by the Board.
The Board may establish different proportions or levels applicable to each
membership interest
Ch2 Applicants
--------------
category, and any such proportion or level shall be applied in uniform fashion
to every delegate in each respective membership interest category. Consistent
with these standards, the Board may alter such proportion or level at any time.
Failure to comply with the provisions of this regulation or the directives of
the Board adopted pursuant to this regulation may be considered an act
detrimental to the welfare of the Association. Effective June 1, 1984.
(08/01/94)
221.09 Delegation of Firm-Owned Memberships and Membership Interests - An
eligible business organization registered as a member firm under Rule 230.00 may
delegate the rights and privileges of a firm-owned membership or membership
interest to an individual ("delegate") upon the terms and conditions set forth
in Rule 221.00, but only if the membership being leased is not necessary to
satisfy the requirements for registration as a member firm or, if applicable, as
a clearing member firm, except as otherwise provided in Rule 230.00 and
Regulation 230.02. (07/01/04)
221.10 Indemnification of Delegators - To the extent consistent with the
Association's claims Rules and Regulations, the Board of Directors shall honor
and enforce valid indemnifications given by a clearing member to a member or
membership interest holder who delegates the rights and privileges of his
membership or membership interest (the "delegator") in connection with the
delegator's potential liability under Rule 221.00 (c). The indemnification shall
be in writing in such form as the Exchange may prescribe. (08/01/94)
221.11 Delegation by Trust - A trust may delegate the rights and privileges
of any membership(s) or membership interest(s) held by the trust upon the terms
and conditions set forth in Rule 221.00. (07/01/95)
222.00 Multiple Membership - A member may own more than one membership in his
name, and a member firm may own the title and value of more than one membership
pursuant to Regulation 249.01(b). 872 (08/01/94)
224.00 Trades of Non-Clearing Permit Holders - Each permit holder's Primary
Clearing Member is responsible for the payment of the permit holder's dues, fees
and assessments. (08/01/94)
225.00 General Enabling Rule for Market Maker Programs - The Chief Executive
Officer of the Exchange shall have the authority to approve the implementation
of Market Maker programs, pursuant to which Market Makers would be authorized to
maintain two-sided markets, for products in the municipal bond complex, the
equity index complex, and all products launched after December 31, 1999. To the
extent that the terms of any such Market Maker program may be in conflict with
any Rules or Regulations of the Exchange, such terms shall supersede such Rules
or Regulations. However, nothing in this Rule shall alter or waive a member's
responsibility to comply with provisions of the Commodity Exchange Act or Rules
or Regulations of the Commodity Futures Trading Commission unless exempted by
the Commission. (04/01/01)
Ch2 Registration
230.00 Registration - An eligible business organization as determined by the
Exchange may be a member firm of the Exchange with respect to all contracts if
one Full Membership, held in the name of any principal or employee thereof is
registered on behalf of the firm. Provided, however, that four (4) Full
Memberships and two (2) Associate Memberships must be held in the name of any
principals or employees thereof, and registered on behalf of the firm, in order
for the eligible business organization to be a member firm under Regulation
230.02, Category (3) "other Non-FCM-Non-clearing". An eligible business
organization as determined by the Exchange, which is wholly owned by one or more
members or member firms, which wholly owns a member firm, or which is wholly
owned by the same parent company(ies) as a member firm, may be a member firm of
the Exchange only with respect to those contracts in which Associate Members
have trading privileges if one Associate Membership, held in the name of any
principal or employee thereof is registered on behalf of the firm. Those
individuals who desire to register their memberships on behalf of an eligible
business organization shall make application to the Exchange, giving therein
such information as may be requested. If the application is granted, their
memberships shall be registered for the benefit of the eligible business
organization, and such eligible business organization shall be entitled to
member firm privileges with respect to all contracts or only with respect to
contracts in which Associate Members have trading privileges, as the case may
be.
A member firm may be a CBOT Clearing Member and entitled to clearing privileges
with respect to all contracts, pursuant to the membership registration
requirements of Rule 703.00. All such memberships shall be registered hereunder
in the manner described above, and under the criteria prescribed in Rule 703.00.
Member firms shall be subject to all requirements and prohibitions contained in
the Rules and Regulations applicable to members, and in such cases, all
registered members shall be subject to discipline and their memberships subject
to sale by the Exchange for the acts or delinquencies of the firm for which they
are registered. All such designations may be terminated at any time by the
Exchange, or by the registered members with the written approval of the
Exchange.
All memberships described above that are owned by a Regulation 230.02, Category
(2b), (3) or (6) member firm: (1) may be delegated upon the terms and conditions
set forth in Rule 221.00; or (2) may be held in the name of a principal or
employee of, and registered on behalf of, another member firm which is wholly
owned by such member firm, which wholly owns such member firm, or which is
wholly owned by the same parent company(ies) as such member firm. During the
term of any such delegation or registration on behalf of another member firm,
the Category (2b) or (3) member firm owning the membership(s) will not be
entitled to member firm transaction fees. In addition, no Category (6) member
firm will be entitled to member firm transaction fees. However, any such
Category (2) or (3) member firm, and Category (6) member firms, will remain
subject to all applicable Exchange Rules and Regulations, including the
disciplinary procedures set forth in Chapter 5, and the arbitration procedures
set forth in Chapter 6. 226 (11/01/04)
230.01 Registered Entities
Notwithstanding any other Regulation, any member or membership interest holder
who is associated as a partner, shareholder, member, officer, manager, employee,
or consultant with any entity or natural person that is or should be registered
as an Introducing Broker, Futures Commission Merchant, Commodity Trading Advisor
or Commodity Pool Operator, as those terms are defined in Section 1a of the
Commodity Exchange Act and/or 17 C.F.R. 1.3, may not solicit orders of others
from the Floor of the Exchange unless the entity or natural person for which or
for whom the member is soliciting orders is also a member firm or a member of
the Exchange. (09/01/03)
Ch2 Registration
----------------
230.02 Registration of Membership for Eligible Business Organizations - An
individual desiring to register a membership for an eligible business
organization under Rule 230.00 shall submit an application giving the name of
the eligible business organization and the business in which it is engaged, and
any other information requested by the Exchange. The application must also show
that the member is a principal or employee of the eligible business
organization. In addition, the application must designate the type of business
activity, as measured by the following list, for which registration is
requested:
(1a) Registered Futures Commission Merchant ("FCM") - Clearing.
(1b) Registered FCM - Non-clearing.
(2a) Non-FCM - Clearing.
(2b) Non-FCM - Non-clearing. (Must be wholly-owned by members or members and
employees of the firm; or must have a business purpose deemed appropriate
by the Exchange, including cash grain firms, financial institutions,
market markers designated by the Exchange, proprietary trading firms or
other forms of business approved by the Exchange.)
(2c) Non-FCM - Non-clearing Associate Member affiliate of another member firm
("member firm affiliate")
(3) Other Non-FCM-Non-clearing (Commodity pools, hedge funds, or other
collective investment vehicles).
(4) e-cbot member firm. (Solely for purposes of Chapter 9B, the owner of an
Associate Membership or the delegate of a Full or Associate Membership
shall be entitled to register under Rule 230.00 for an eligible business
organization, solely to conduct non-clearing business on e-cbot.)
(5) Sole Proprietor - Clearing
(6) Investment only
If activity level (1a), (1b) or (2a) has been designated, the member shall
submit the following financial information of the eligible business
organization: a certified financial statement prepared by an independent
Certified Public Accountant as of the most recent fiscal year end, and a
financial statement (which need not be certified) which is current as of the
most recent preceding calendar month end. If activity level (2b), (2c), (3), (4)
or (6) is designated, the member shall submit such financial information of the
eligible business organization that may be required, in the discretion of the
Exchange. A member who is applying to be a Sole Proprietor CBOT Clearing Member
shall submit a financial statement in the form designated by the Exchange.
The Exchange may in its discretion waive or modify the foregoing requirements in
the case of changes in registration necessitated by reorganization of firms
currently registered with the Exchange.
Approval is required for a registered eligible business organization changing or
expanding its type of business to a higher level of business activity as set
forth above. An eligible business organization requesting approval to operate as
a type (1a), (1b) or (2a) firm which was previously registered as any other type
firm must first submit the financial information required for approval as a type
(1a), (1b) or (2a) firm as specified above.
The Exchange may in its discretion grant temporary approval in the case of
changes in registration necessitated by reorganization of firms currently
registered with the Exchange.
Upon receipt of an application for new firm registration for an eligible
business organization, the Secretary shall, within fifteen days thereafter, make
available to the membership the name of the eligible business organization, and
shall post the same information on the bulletin board for a period of at least
ten days after such notification to the Membership.
No member may register his or her membership for more than one eligible business
organization.
Except as provided herein regarding e-cbot member firms, or as provided in Rule
230.00, no member may register his or her membership for any eligible business
organization under the Rules of this Exchange, where such membership is or
becomes delegated under the provisions of Rule 221.00.
An eligible business organization which has been conditionally approved for
member firm status shall have six (6) months after the date that it was notified
of such approval, or within such extension of siad period as may be granted by
the Exchange, to satisfy any conditions or contingencies imposed on such
approval. If the conditions or contingencies are not satisfied by the applicable
deadline, the Exchange's approval of the eligiblie business organization for
member firms status shall be deemed void. 1060 (11/01/04)
Ch2 Registration
----------------
230.03 Designated Persons -
(a) Subject to approval by the Association, which approval is in the absolute
discretion of the Association, each eligible business organization
("member") of the Association shall designate one or more senior managerial
employees responsible for the member's financial, compliance, operational
and ultimate supervisory obligations and activities as a member. Such
individuals must either: (i) have a membership registered on behalf of the
member, or (ii) be registered with the Association by the member as a
"Designated Person". A Designated Person shall be subject to the Rules and
Regulations of the Association as if a member; provided, however, that a
Designated Person shall not be liable for the actions and/or omissions of
other employees, agents or independent contractors if the member of the
Designated Person demonstrates to the satisfaction of the Association that
all of his or her relevant conduct on behalf of the member was performed in
good faith with reasonable care.
(b) Any individual not a registered member or Designated Person or
nonmember eligible business organization which holds more than a 25%
financial interest in a member eligible business organization ("member") or
who exercises actual control over the management of the member may, at the
Association's sole discretion, be required to execute a Consent to
Jurisdiction in such form as may be prescribed by the Association. Upon the
member's request, the Membership and Financial Compliance Committees may
exempt individuals and/or eligible business organizations from this
requirement for good cause shown. (04/01/98)
230.04 Cooperative Association of Producers - A lawfully formed and conducted
cooperative association of producers having adequate financial responsibility,
engaged in any cash commodity business, conforming to the following
requirements:
FIRST: The Cooperative Association must have not less than 75 per centum of
the voting capital stock or membership capital, in good faith owned and
controlled, directly or indirectly by producers of agricultural products;
SECOND: The Cooperative Association, if organized without capital stock,
shall not allow a member of the Cooperative Association more than one vote,
or if organized with capital stock, the Cooperative Association shall not
pay dividends on any class of capital stock in excess of 8 per cent per
annum cumulative;
THIRD: The Cooperative Association shall not, during any fiscal year, deal
in the products of non- members of the Cooperative Association to an amount
greater in value than such as is handled by it for members of the
Cooperative Association;
FOURTH: The Cooperative Association, not more frequently than semi-
annually, may pay out of its accumulated or current earnings and savings,
patronage dividends to members of the Cooperative Association only and upon
the basis of business transacted with such members for the period covered
by transactions in which such earnings and savings have accrued; and
FIFTH: The Cooperative Association, if organized under the Cooperative Laws
of any state, or recognized as a cooperative association of producers by
the United States Government, or any agency thereof;
may be a member firm of the Association with respect to all contracts and may be
entitled to do business in cash grain on the Floor, by virtue of a membership
held in the name of one of its duly authorized representatives and registered
under Rule 230.00 on behalf of the cooperative association. A member who desires
to designate such a cooperative association of producers for that purpose shall
make application to the Membership Committee, giving therein such information as
may be requested
Ch2 Registration
----------------
(Rule 230.00). Such designation may be terminated at any time by the Board, or
by such member with the written approval of the Exchange. A cooperative
association of producers shall be subject to all requirements and prohibitions
contained in the Rules and Regulations applicable to members (except as may be
exempted by the Commodity Exchange Act and the regulations of the Commodity
Futures Trading Commission issued thereunder) and in such cases the member shall
be subject to discipline and the membership subject to sale by the Board for the
acts or delinquencies of the cooperative association. 1062 (04/01/98)
230.05 Additional Seat Requirement A firm registered under Regulation 230.02,
Category (3) may take up to eighteen months from the date of its registration
approval to complete the registration of its six required memberships. However,
no such firm will be approved for member firm status until such time as it has
purchased, or has registered on its behalf, at least one Full Membership and one
Associate Membership.
A firm registered under Regulation 230.02, Category (1a), (1b), (2a), or (2b)
may take up to eighteen months from the date that it has designated a commodity
pool or hedge fund for member transaction fee treatment, pursuant to Regulation
450.02D, in which to complete registration of the six memberships required for
this purpose. In order to initiate this designation process, the firm must have
at least one Full Membership and one Associate Membership owned or registered on
its behalf.
Until such time as the six membership requirement has been met, the Category (3)
member firm and the qualified commodity pool or hedge fund of Category (1a),
(1b), (2a) and (2b) member firms will continue to be charged exchange
transaction fees at the non-member level. Once the membership requirements have
been completely satisfied, the Exchange will grant an adjustment to the
appropriate member fee level via a fee credit. This adjustment period will not
exceed eighteen months. If the member firm takes more than eighteen months to
register the required seats, the Exchange will grant an adjustment only for the
eighteen months immediately prior to completion of the registration
requirements. (02/01/04)
230.06 Eligible Business Organization Status Upon Death or Withdrawal of
Registered Member - Upon the death or withdrawal of a member whose membership is
registered on behalf of an eligible business organization, where such death or
withdrawal would result in failure of the eligible business organization to meet
the requirements of Rule 230.00, Rule 703.00, Regulation 230.02 or Regulation
230.05, the Exchange may, upon application of the registered eligible business
organization, grant the eligible business organization an extension of
privileges under the applicable Rules and Regulations for such period and under
such conditions as the Exchange may fix. Upon the death or withdrawal of a
member whose membership is registered on behalf of an eligible business
organization, the eligible business organization shall, within five business
days of such death or withdrawal, notify the Exchange of the departure of its
registered member. Failure to comply with the provisions of this Regulation
shall be referred to the Business Conduct Committee, for possible disciplinary
action pursuant to Rule 540.00. 1063 (04/01/98)
230.07 Primary Clearing Member Permission for Member Registration - A member
may register his or her membership for an eligible business organization under
Rule 230.00, if that eligible business organization is not his or her Primary
Clearing Member, only if he or she has written permission to do so from his or
her Primary Clearing Member. Such written permission of the Primary Clearing
Member must be filed with the Member Services Department. (04/01/98)
230.08 Doing Business in Firm (or Trade) Name - No member may conduct
business with the public as a partnership under a firm name unless the
partnership has at least one general partner other than such member; provided,
however, that if by death or otherwise, the member becomes the sole general
partner of the firm, he or she may continue business in the firm name for such
period as may be allowed by the Exchange. 1070 (04/01/98)
230.09 Formation of Partnerships or Limited Liability Companies - When a
member intends to form a partnership or admit other individuals to an existing
partnership, he or she shall notify the Secretary in writing to that effect. On
receipt of such notice from a member, the Secretary shall cause the same to be
posted upon the bulletin board of the Association. A member shall promptly
notify the Secretary of the retirement of any partner from the member firm
partnership or of the dissolution of such partnership.
When a member intends to form a limited liability company or admit other
individuals to an existing limited liability company, he or she shall notify the
Secretary in writing to that effect. On receipt of such notice from a member,
the Secretary shall cause the same to be posted upon the bulletin board of the
Association. A member shall promptly notify the Secretary of the retirement of
any other member from the member firm limited liability company or of the
dissolution of such limited liability company. (04/01/98)
230.10 Suspended or Insolvent Members - A member shall not form a partnership
or limited liability company nor, unless permitted by the Regulatory Compliance
Committee, continue in a partnership or limited liability company with any of
the following:
(a) A member whose membership privileges have been suspended by the
Association;
(b) Any person who has been expelled from the Association as permitted by
Rule 560.00;
(c) An insolvent person; or
(d) Any previous member of the Association against whom any member holds a
claim which
Ch2 Registration
----------------
arises out of transactions made during the time of such membership and
which have not been released or settled. (04/01/98)
230.11 Discipline of Partners or Members of Limited Liability Companies - A
member of the Association who is a general partner of a member firm of the
Association is liable to the same discipline and penalties for any act or
omission of said firm as for his or her own personal act or omission, but the
Regulatory Compliance Committee may, in its discretion, by a vote of not less
than two-thirds of its members present, relieve him or her from the penalty
therefor.
A member of the Association who is also a member of a limited liability company
which is a member firm of the Association is liable to the same discipline and
penalties for any act or omission of said firm as for his or her own personal
act or omission, but the Regulatory Compliance Committee may, in its discretion,
by a vote of not less than two-thirds of its members present, relieve him or her
from the penalty therefor. 1076 (04/01/98)
230.12 Dissolution of Partnership or Limited Liability Company - Whenever it
shall appear to the Regulatory Compliance Committee that a member has formed a
partnership or limited liability company or has become an officer, employee, or
stockholder of a corporation or established an office or headquarters or is
individually, or through any member of his or her firm, interested in a
partnership or other business organization, or has formed any business
connection whatever whereby the interest or good repute of the Association may
suffer, the Regulatory Compliance Committee may require the dissolution of any
such partnership or limited liability company or discontinuance of such business
office, or headquarters, or business connection as the case may be. (04/01/98)
230.13 Relations Controlling Policy - Whenever it shall appear to the
Regulatory Compliance Committee that a member individually or through his or her
firm or a partner or partners therein, has such a business connection with a
corporation or other business organization that the corporation or other
business organization dominates the business of the member or firm or controls
the policy of such business, the Regulatory Compliance Committee may require the
discontinuance of such business connection. (04/01/98)
230.14 Delegation of Approval Authority - The Chairman of the Membership
Committee, or a member of the Membership Committee who has been designated by
the Membership Committee Chairman or the Member Services and Member Firm Staff
Services Department upon delegation by the Chairman, will have the authority to
approve the application of a Full or Associate Member to register his or her
membership for an eligible business organization under Rule 230.00 and the
regulations thereunder; provided that the eligible business organization is
currently registered in accordance with Rule 230.00. The power to deny such
applications is expressly reserved to the Regulatory Compliance Committee. With
respect to firm-owned Full and Associate Memberships under Regulation 249.01(b),
the Chairman of the Membership Committee or a member of the Membership Committee
who has been designated by the Membership Committee Chairman may determine that
such memberships are needed by the registered eligible business organization to
carry out its business at the Association.
For the purpose of this regulation, the Chairman may not delegate approval
authority to the Member Services and Member Firm Staff Services Department when
the applicant has answered affirmatively to any question in the "Disciplinary
Action" section of the Member Firm Registration application. (12/01/98)
230.15 Financial Requirements - (See Reg. 285.05) (04/01/97)
230.17 Changes in Organization - Any change in the organizational structure
of a member firm requires the Exchange's prior approval. Organizational changes
shall include, but not be limited to: i) a corporation, limited liability
company, general partnership, limited partnership or sole proprietorship
Ch2 Registration
----------------
which changes to another form; or ii) replacement of any general partner or
member of any limited liability company. Any failure to comply with this
Regulation and any such change in organizational structure that does not comply
with the requirements to be a member firm shall be referred to the Business
Conduct Committee for possible disciplinary action pursuant to Rule 540.00. The
Exchange may grant the member firm a period of time in which to come into
compliance with the requirements for member firm status. The Business Conduct
Committee may also determine whether such a member firm is entitled to member
transaction fees for any time period in which the firm fails to comply with
requirements. (04/01/98)
231.00 Ownership and Registration of Associate Memberships - With the
approval of the Membership Committee ownership of title and value of an
Associate membership of an individual, approved under Rules 200.00, 201.00,
159.00, and 202.00, may be vested in an eligible business organization
registered in accordance with Rule 230.00 provided that all of the provisions of
Regulation 249.01 - Transfer of Membership - are complied with, where
applicable.
Associate memberships may be registered on behalf of an eligible business
organization pursuant to Rule 230.00. 875 (04/01/98)
Ch2 Assessments and Fees
240.00 Assessments - The Board, prior to the Annual Meeting and quarterly
thereafter during each year, shall levy upon the membership such assessments as
it may deem necessary or advisable to meet any anticipated operating deficit of
the ensuing quarter and any actual deficit of the preceding quarter and such
assessment as the Board may deem necessary or advisable to meet any capital
expenditures of the ensuing quarter, including the retirement of mortgage
indebtedness encumbering the Board of Trade Building. It shall be the duty of
the President to prepare and submit to the Board, in advance of the meeting at
which any such assessment is levied, a detailed budget showing the deficit, if
any, for the preceding quarter and the amount of each such assessment proposed
to be levied. Each such quarterly assessment shall be billed to the members as
near the beginning of the quarter as may be practicable and shall become due and
payable within thirty days after such billing. 108 (08/01/94)
241.00 Members in Military Service - The Board shall have authority to remit
the assessments of a member during the period in which such member is in the
military service of the United States, as such service is defined in the
Soldiers' and Sailors' Civil Relief Act of 1940, as passed by Congress and as it
may be amended. 108B (08/01/94)
241.01 Dues of Members in Military Service - In accordance with the authority
granted the Board under the provisions of Rule 241.00 no assessment of a member
shall be remitted under Rule 241.00 except under the following conditions:
1. Each petition for the benefits of Rule 241.00 will be considered on its
merits.
2. No petition will be considered unless accompanied with funds sufficient to
pay all dues up to and including the full month in which the Board acts on
the request.
3. No petition will be approved unless the petitioner became a member of the
Association prior to January 1, 1953.
4. When a petition is granted the member is required to notify the Secretary
promptly of the termination of his military service. 1844A (08/01/94)
242.00 Neglect to Pay Assessment - Any member who neglects to pay his
assessment, or installments thereof, within thirty days after such assessment,
or installments thereof, has been called for payment may be suspended until such
assessment, or installments thereof, is paid. If a member neglects to pay such
assessment, or installments thereof, during a period of six consecutive months,
his membership may be disposed of by the Board in accordance with Rule 257.00.
109 (08/01/94)
243.00 Transfer Fees - No transfer of membership may be consummated unless the
transferee pays to the Association a transfer fee. The amount of this fee is
established from time to time, by the Board of Directors. The transfer fee so
collected shall be used to purchase, retire or redeem indebtedness to finance
improvements to the Board of Trade Buildings or to pay the cost of such
improvements. The transfer fee described in this Rule 243.00 shall not apply
when the transferor is the estate of a deceased member or membership interest
holder and the transferee is the decedent's spouse or the decedent's child. 111
(07/01/98)
243.01 Sale and Transfer of Membership Privileges - Each individual submitting
an application for membership shall include with the application a non-
refundable application fee established by the Board. The application fee
described in this Regulation 243.01 shall not apply when the applicant is the
spouse or the child of a deceased member or membership interest holder. The
application fee will also not apply when a deceased member or membership
interest holder's membership or membership interest is held in trust pursuant to
Regulation 249.01(i), the applicant is the spouse or the child of the decedent,
and under the terms of the trust, the applicant is the successor trustee to the
deceased member or membership interest holder. 1807 (04/01/98)
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
249.01 Purchase and Sale or Transfer of Membership or Membership Interest -
Membership status in this Exchange is a personal privilege, not subject to sale
or transfer except as herein authorized.
(a) Purchase and Sale of Memberships and Membership Interest by Individuals -
(i) When an individual wishes to sell his full or associate membership or
membership interest, he shall sign an offer to sell including an offer
price, in such form as shall be prescribed by the Exchange.
When an offer is matched to a bid, the member or registered eligible
business organization may receive the sale proceeds prior to the
expiration of the claims period or the resolution of any claims by
depositing treasury bills with the Association, equivalent to the sale
price of the membership or membership interest. All amounts deposited
shall be available, without restriction, to satisfy claims against the
departing member or the registered eligible business organization
under this Chapter. In lieu of a deposit, the member or registered
eligible business organization may file a clearing firm guaranty,
letter of credit, or such other form as the Association may permit,
equivalent to the sale price of the membership or membership interest,
for the satisfaction of claims.
(ii) Any individual who wishes to purchase a full or associate membership
or membership interest subsequent to his approval for a particular
membership status shall execute and deliver to the Department of
Member Services a bid to purchase such membership or membership
interest, in such form as may be prescribed by the Exchange. The bid
shall be accompanied by a certified or cashier's check representing an
earnest money deposit in the amount of fifteen percent of the bid, by
an irrevocable letter of credit in the amount of fifteen percent of
the bid, or by an agreement on a form prescribed by the Exchange and
executed by a clearing member of the Association as provided in this
section (ii).
Any individual who wishes to purchase a full or associate membership
or membership interest prior to his approval for a particular
membership status shall execute and deliver to the Department of
Member Services a bid to purchase such membership or membership
interest, in such form as may be prescribed by the Exchange. The bid
shall be accompanied by a check in the amount of the applicable
transfer fee. The bid shall also be accompanied by a certified or
cashier's check in the amount of such bid or by an agreement on a form
prescribed by the Exchange and executed by a clearing member of the
Association which shall provide that in the event the prospective
purchaser's bid is matched to an offer, as provided in section (iii)
below, and the prospective purchaser fails to make payment in the
amount of his bid by 5:00 p.m. of the next business day following the
day on which he was notified by the Department of Member Services that
his bid was matched to an offer, such clearing member shall purchase
the membership or membership interest in question for the full amount
of such bid.
The bid shall contain an agreement by such individual to take no
recourse against the Association in the event he is not approved for
membership, except as may be permitted under Section 8c of the
Commodity Exchange Act as amended and a release of the Association of
any claim or right that such individual would otherwise have had by
reason of such failure to be so elected. The bid also shall contain an
agreement by such individual that he or she consents to and accepts
the Exchange's jurisdiction with respect to any disciplinary action or
other matter within the purview of any Exchange committee from the
date of purchase of a membership or membership interest until the date
the individual is approved for membership status or, if such
individual fails to be approved for membership status, until the date
of a sale of the membership or membership interest is effected in
accordance with this regulation. With respect to the purchase of a
membership which will be registered pursuant to Rule 230.00 for the
benefit of an eligible business organization which is not currently a
member firm, a consent to jurisdiction also must be executed on behalf
of the firm. The consent to jurisdiction shall expressly state that
the Exchange may hold the membership or membership interest pending
the disposition of any proceeding before any Exchange Committee and
apply the proceeds from the sale of the membership or membership
interest toward the satisfaction of any decision that may be rendered
against the individual or firm.
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
Nothing herein shall be construed in any way to limit the Exchange's
jurisdiction over all individuals and firms which have been approved
for membership. If any purchase of a membership or membership interest
is being financed by a person other than the purchaser, such purchaser
shall file satisfactory proof as required by the Department of Member
Services that the financing party is aware of the provisions of this
Regulation and Rule 252.00.
(iii) The Department of Member Services shall post continually on the
Bulletin Board the lowest offer to sell and the highest bid to buy
full and associate memberships and membership interests, respectively.
In the event of a match between any such bid and offer, the Department
of Member Services shall notify the purchaser and the seller. In the
event there are two bids and/or two offers in the same amount, the
oldest offer shall be matched to the oldest bid. Title and value of
the membership or membership interest shall be transferred to the
purchaser upon payment being effected in the full amount of the bid.
In the event that the prospective purchaser fails to make payment in
the amount of his bid by 5:00 p.m. of the next business day following
the day on which he was notified by the Department of Member Services
that his bid was matched to an offer, the clearing member who has
executed an agreement to purchase the membership or membership
interest as provided in section (a)(ii) of this Regulation shall make
payment in the full amount of the bid by 5:00 p.m. of the business day
following the day upon which payment was due from the prospective
purchaser. Upon becoming the owner of the title and value of the
membership or membership interest, the clearing member shall either
sell or transfer the membership or membership interest or cause the
membership or membership interest to be registered on its behalf in
accordance with Rule 230.00 of these Rules and Regulations.
Failure to fulfill the obligations set forth in said agreement shall
constitute acts detrimental to the interest and welfare of the
Association.
Within ten (10) business days of notice to the purchaser by the
Department of Member Services that his or her bid has been matched to
an offer, each purchaser of a full or associate membership who is not
a full or associate member in good standing, and each purchaser of a
membership interest who is not a full or associate member, membership
interest holder or nominee thereof, or delegate in good standing,
shall file with the Department of Member Services an application for
the appropriate membership status, in such form as may be prescribed
by the Exchange, in order to be eligible for approval for membership
status. Such form shall include an agreement by the applicant to take
no recourse against the Association in the event he or she is not
approved for a particular membership status, except as may be
permitted under Section 8c of the Commodity Exchange Act as amended
and a release of the Association of any claim or right that such
individual would otherwise have had by reason of such failure to be so
elected. No person may exercise the rights of a particular membership
status until he or she is approved for such membership status in
accordance with these rules.
(iv) If a purchaser of a membership or membership interest fails to file an
application with the Department of Member Services as required in
paragraph (iii) above, is not approved for membership status, or if
for any reason his application is withdrawn, the Exchange shall retain
the transfer fee and the purchaser shall assume all risk of gain or
loss from the resale of the membership or membership interest
purchased by him. The purchaser shall take all necessary steps to
effect a sale of the membership or membership interest purchased by
him within thirty (30) days of notification of his failure to be
approved for membership status, withdrawal of his application, or the
purchase of the membership or membership interest if he failed to file
an application.
(v) If the purchaser fails to effect a sale within the time period
specified in paragraph (iv) above, the Department of Member Services
shall effect a sale at the price of the highest bid to purchase then
on file with the Department of Member Services on the next business
day following the thirtieth (30) day after notification of his failure
to be approved for membership status, withdrawal of his application,
or the purchase of the membership or membership interest if he failed
to file an application. If on the next business day following the
thirtieth day after such notification, withdrawal, or purchase if he
failed to file an application, there is no bid to purchase on file
with the Department of Member Services, the membership or membership
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
interest shall be offered for sale by the Exchange at the same price
as the lowest offer to sell then on file with the Department of Member
Services. Such offer shall be matched with a bid in accordance with
Regulation 249.01(a)(iii). The total amount realized from the sale of
the membership or membership interest shall be remitted to the
unsuccessful applicant in full satisfaction of all obligations of the
Association, subject to Exchange Rule 252.00.
(vi) An individual whose offer to sell his only membership or membership
interest has been accepted by a purchaser, shall not make any Exchange
contracts after the date of such consummation of the transfer.
An individual whose membership or membership interest status was
terminated through a sale in accordance with this paragraph (a), and
who was a member or membership interest holder in good standing, not
subject to any Exchange investigation, charges, suspension or
disciplinary action at the time of such sale, shall remain eligible,
for a period of six (6) months following such sale, to purchase
another membership or membership interest under the provisions of this
paragraph (a), to be the transferee of a membership or membership
interest pursuant to subparagraphs 249.01(b) (c) or (d) or to become a
delegate, in accordance with provisions of Regulation 202.01. The
Exchange may, in its discretion, grant extensions to this six (6)
month approval period.
(b) Transfer by member firm
(i) A member firm may own a full or associate membership held in the name
of an individual member, provided that (i) the individual member is a
principal or employee of such member firm; and (ii) the principal or
employee's membership is registered on behalf of such member firm
pursuant to Rule 230.00, except as otherwise provided in Rule 230.00.
Additionally. a member firm may own GIM, COM and IDEM membership
interests held in the name of individual members who are full-time
employees of such firm. In such circumstances, the member firm shall
be entitled to transfer such membership or membership interest, and to
receive the net proceeds from transfer of such membership or
membership interest after satisfaction of all claims against the
individual member, or against the member firm, in accordance with
Rules 252.00 and 253.00.
(ii) A member firm that owns a full membership, associate membership or
membership interest may transfer such membership or membership
interest to another principal or employee of the member firm, or of
another member firm as permitted by Rule 230.00, by delivering to the
Department of Member Services a report of intention to transfer upon
such form as shall be prescribed by the Exchange. In addition, with
respect to the transfer of a full or associate membership, the firm
must deposit with the Department of Member Services ar amount equal to
the weighted average of all full or associate membership sales for the
preceding calendar month, as appropriate. With respect to the transfer
of a membership interest, the firm must deposit the greater of $50,000
or an amount equal to the weighted average of all GIM, COM or IDEM
sales, for the preceding calendar month, as appropriate. Such amount
may be deposited in cash, treasury bills, or such other form as the
Exchange may permit. All amounts deposited shall be available, without
restriction, to satisfy claims agi3inst the departing individual
member or against the member firm. In lieu of a deposit, a firm rnay
file a clearing firm guaranty for the satisfaction of claims in an
amount that accords with the formulas set forth in this sub-paragraph.
Should the departing individual member b? leaving the employ of. the
member firm, the application for membership or transfer documents of
the transferee must be submitted to the Exchange within thirty (30)
days from the termination date of the departing individual member. The
Exchange may, in its discretion, grant extensions of this 30 day
period. No such extension shall exceed 60 days total lengih for any
individual.
(iii) Nothing herein shall preclude or impair the right of the Exchange to
impose discipline upon the member firm that owns the membership or for
which the membership is registered, or upon the individual member, or
to dispose of the membership or membership interemst of any individual
member, for the acts or delinquencies of the member firm that owns the
membership or for which the membership is registered,or for the acts
or delinquencies of the individual member, in accordance with the
Rules and Regulations of the Exchange.
(iv) An individual member whose only remaining membership or membership
interest has been transferred in accordance with this paragraph (b)
shall not make any Exchange contracts after the date of such transfer.
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
(v) In the event that a member firm that owns a full or associate
membership or membership interest is acquired by another member firm
through the purchase of 100% of the pa-tnership or limited liability
company property or corporate stock, the acquiring member firm may
transfer such membership or membership interest to another individual
member who is an employee of the acquiring member firm pursuant to the
procedures set forth in sub-paragraph (ii), above.
A member firm that owns a full or associate membership or membership
interest ma) transfer such membership or membership interest to a
principal or employee of another mem3er firm which is its wholly-owned
subsidiary, a parent entity which owns 100% of the member firm, or a
sister entity that is 100% owned by its parent entity, pursuant to the
procedures set forth in sub-paragraph (ii), above. Each such transfer
of a GIM Membership Interest shall count toward the two transfers
specified in Rule 296.00 (2).
(vi) The parties to the transfer set forth in subparagraph (ii) of this
paragraph may elect not to deposit a sum of money or file a clearing
firm guaranty agreement as provided ti-erein. in which case the
transferee shall, for a period of time equal to that set forth in
paragraph (e) of this Regulation, be ineligible to exercise any of the
rights and privileges of the trznsferred membership or membership
interest and, during this time and no other, all claims as set forth
in sub-paragraph (ii) of this paragraph against the transferor shall
be filed. If such cI3ims are filed the transferee shall remain
ineligible until the claims are satisfied or otherwise disposed. In
order to satisfy claims set forth in sub-paragraph (ii), which have
been properly filed and allowed by the Exchange, as provided by the
Rules and Regulations, the trE nsferred membership or membership
interest may be sold by the Exchange. In the event of such sale and
after the claims have been paid, the remaining surplus, if any, of the
proceed; of sale shall be paid to the member firm upon execution by it
of a release which is satisfactclry to the Exchange. In order to
preclude the sale of the membership or membership interest by the
Exchange for the satisfaction of claims, and for the transferee to
become immediate1q eligible to exercise the rights and privileges of
the transferred membership or membership interest, the member firm
may, in the alternative, deposit a sum of money or file a clearing
firm guaranty as provided in sub-paragraph (ii) above.
(vii) An individual member whose membership or membership interest status
was te:-minated through a transfer in accordance with this paragraph
(b), and who was a member or membership interest holder in good
standing, not subject to any Exchange investigation, charges,
suspension or disciplinary action at the time of such transfer, shall
remain eligible, for a period of six (6) months following such
transfer, to acquire another membership or membership interest. The
Exchange may, in its discretion, grant extensions of this six (6)
month approval period.
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
(c) Transfer by member under loan agreement -
(i) Whenever, under the Rules and Regulations, a registered eligible
business organization is required to register a certain number of
full or associate memberships or is required to maintain memberships
for other purposes, such eligible business organization may execute
with an employee, approved for membership under this Chapter, a loan
agreement in such form as the Association may prescribe, advancing
to such employee the cost of membership and providing for the
enforced repayment of such advance. The employee may transfer his
membership to another employee of the same registered eligible
business organization, approved for membership under this Chapter,
upon the deposit with the Department of Member Services of an amount
equal to the sum specified in sub-paragraph (ii) of paragraph (b) of
this Regulation. All amounts so deposited shall be available,
without restriction, to satisfy claims under this Chapter. Should
the transferor be leaving the employ of the registered eligible
business organization, the application for membership of the
transferee must be submitted to the Association within thirty (30)
days from the termination date of the transferor.
(ii) Transfer under this paragraph (c) except as provided in sub-
paragraph (i) hereof, shall be governed by the provisions of
paragraph (a) of this Regulation.
(d) Transfer within family -
(i) It shall be permissible, under the Rules and Regulations, to
transfer a full or associate membership or membership interest
between members of the same family (a spouse, parent, sibling,
child, grandparent, grandchild, aunt, uncle or in-laws), or a
decedent's membership or membership interest within the same family,
provided such transferee is approved for the appropriate membership
status under this Chapter and a clearing firm guaranty is filed, or
sum of money as described in paragraph (b) is deposited with the
Department of Member Services in order to satisfy claims.
(ii) The parties to the transfer may elect not to deposit a sum of money
as provided in paragraph (b), in which case the transferee shall,
for a period of time equal to that set forth in paragraph (e) of
this Regulation, be ineligible to exercise any of the rights and
privileges of the transferred membership or membership interest, and
during this time and no other, all claims against the transferor
shall be filed. If such claims are filed the transferee shall remain
ineligible until the claims are satisfied or otherwise disposed. In
order to satisfy claims against the transferor, which have been
properly filed and allowed by the Association, as provided by the
Rules and Regulations, the transferred membership or membership
interest may be sold by the Association. In the event of such sale
and after the claims have been paid, the remaining surplus, if any,
of the proceeds of sale shall be paid to the transferee, or his
legal representative, upon execution by him of a release which is
satisfactory to the Association. In order to preclude the sale of
the membership or membership interest by the Association for the
satisfaction of claims, and to become immediately eligible to
exercise the rights and privileges of the transferred membership or
membership interest, the transferee may, in the alternative, comply
with the provisions of sub-paragraph (i), hereof.
(iii) Transfer under this paragraph (d), except as provided in sub-
paragraph (i) and (ii) hereof, shall be governed by the provisions
of paragraph (a) of this Regulation.
(e) Notice of membership sale or transfer and filing claims -
(i) On the first and sixteenth calendar day of each month (or if the
first or sixteenth is not a business day on the following business
day ("notice days")), the Secretary shall post on the bulletin board
located on the Exchange floor a notice listing each sale or transfer
of a membership, each termination or expiration of a delegation
agreement, each termination of an individual member registration and
each termination of a member firm registered in accordance with the
provisions of Rule 230.00 that occurred during the period beginning
on the preceding notice day and ending on the business day preceding
the current notice day. The Secretary shall also make this
information available to the membership. The last day for filing
claims pursuant to Rule 253.00 against the proceeds of the sale or
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
transfer of a membership, the termination of an individual member
registration, a termination of a member firm or pursuant to Rule
221.00 (c)(2) against a delegate whose delegation agreement has
terminated or expired is the business day immediately preceding the
notice day that follows the notice day on which the Secretary posts
a notice on the bulletin board announcing such sale or transfer or
such termination or expiration of a delegation agreement. The
Exchange shall hold the proceeds from the sale or transfer of a
membership until such time as the relevant claims period has run
and/or any disputed claims have been resolved.
(ii) Upon the effective date of sale or transfer of an individual's sole
membership, all Exchange contracts of the seller or transferor shall
mature, and if not settled, shall be closed out as in the case of
insolvency, unless the same are assumed or taken over by another
member of the Association.
(iii) The name of a member whose membership or membership interest has
been disposed of by the Board shall be posted as in the case of a
voluntary sale and such posting shall have the same effect in
respect to open contracts and unmatured debts and obligations of the
former member as in the case of a voluntary sale.
(f) Sale by Legal Representative -
(i) The membership or membership interest of a deceased member or
membership interest holder may be sold pursuant to an offer to sell
executed by the executor, administrator or other duly qualified and
appointed legal representative of his estate.
(ii) The full or associate membership or membership interest of a member
or membership interest holder who has been adjudicated incompetent
may be sold pursuant to an offer to sell executed by his duly
appointed guardian, conservator or other duly qualified legal
representative.
(g) Indirect Exchange of Memberships -
(i) A member may exchange an associate membership for a full membership
(an "AM Swap"), a full membership for an associate membership (an
"FM Swap"), a GIM membership interest for an associate membership (a
"GIM to AM Swap"), a GIM membership interest for a full membership
(a "GIM to FM Swap"), a COM membership interest for an associate
membership (a "COM to AM Swap"), a COM membership interest for a
full membership (a "COM to FM swap") a COM membership interest for
an IDEM membership interest (a "COM" to IDEM Swap"), an IDEM
membership interest for an associate membership (an "IDEM to AM
swap"), an IDEM membership interest for a full membership (an "IDEM
to FM swap") or an IDEM membership interest for a COM membership
interest (an "IDEM to COM Swap"), by signing an offer to exchange in
such form as shall be prescribed by the Exchange. The offer to
exchange shall specify the category of membership being relinquished
(the "relinquished membership"); the category of membership the
exchanging member wishes to acquire (the "replacement membership"),
and the "Price Differential" at which the exchange is to be effected
(as described below).
The offer to exchange shall be accompanied by: (1) In the case of an
AM, GIM to AM, GIM to FM, COM to AM, COM to FM, IDEM to AM or IDEM
to FM Swap, a certified or cashier's check in the amount of the
Price Differential, or an agreement of a clearing member of the
Association as described in section (a)(ii) of this Regulation; and
(2) an agreement of a clearing member of the Association to pay to
the Association in cash upon demand the amount of any assessments or
claims against the exchanging member's relinquished membership
according to Rule 252.00 up to the value of the relinquished
membership at the time the exchange is accepted. For this purpose,
the value of the relinquished membership will be the bid price for
such membership. In the case of a COM to IDEM Swap or an IDEM to COM
Swap, the offer to exchange shall be accompanied by a certified or
cashier's check in the amount of the Price Differential, or an
agreement of a clearing member of the Association as described in
section (a)(ii) of this Regulation if the value of the relinquished
membership exceeds the value of the replacement membership. For the
purpose of the preceding sentence, the value of the relinquished
membership will be the bid price for such membership and the value
of the replacement membership shall be the offer price of such
membership.
(ii) The Department of Member Services shall post continually on the
Bulletin Board the highest Price Differential for AM, GIM to AM, GIM
to FM, COM to AM, COM to FM, COM to IDEM, IDEM to AM, IDEM to FM and
IDEM to COM swaps, and the lowest Price Differential for FM swaps.
In the event there are two or more AM swaps, two or more FM swaps,
two or more GIM to AM Swaps, two or more GIM to FM Swaps, two or
more COM to AM Swaps, two or more COM to FM Swaps, two or more IDEM
to AM swaps two or more IDEM to FM Swaps, or two or more COM to IDEM
Swaps (or IDEM to COM swaps) offered at the same Price Differential,
the oldest offer shall be listed first.
(iii) The Department of Member Services shall notify an exchanging member
that the member's offer to exchange has been accepted when (1) the
difference between the bid price for
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
memberships in the category of the relinquished membership and the
offer price for memberships in the category of the replacement
membership equals (2) the Price Differential for the offer to
exchange. Upon notification of acceptance of the offer to exchange,
the Department of Member Services shall cause the Association to
acquire the relinquished membership from the exchanging member, sell
the relinquished membership at its bid price, acquire the
replacement membership at its offered price, and transfer the
replacement membership to the exchanging member. The exchanging
member shall pay the applicable transfer fee not later than 5:00
p.m. of the first business day following acceptance of the offer to
exchange.
(iv) If, prior to acceptance of an offer to exchange, the posted Price
Differential for AM Swaps matches the posted Price Differential for
FM Swaps, the Department of Member Services will notify the
respective members and will effect a direct exchange of their
memberships according to paragraph (h) below.
(v) Title and value of the relinquished membership shall pass to the
Association, and title and value of the replacement membership shall
be transferred to the exchanging member, upon notification by the
Association that the exchange offer has been accepted.
(vi) The proceeds from the sale of the relinquished membership shall be
applied to payment for the replacement membership. Any excess
proceeds shall be applied in the manner specified in Rule 252.00 to
satisfy assessments and claims against the relinquished membership.
The exchanging member shall only be entitled to the replacement
membership and any excess proceeds (subject to application of Rule
252.00); in no event shall the exchanging member be entitled to
demand receipt of the proceeds from the sale of the relinquished
membership in lieu of receipt of the replacement membership.
(vii) If the exchanging member in an AM, GIM to AM, GIM to FM, COM to AM,
COM to FM, IDEM to AM, IDEM to FM, COM to IDEM, or IDEM to COM swap
fails to make payment for the Price Differential by 5:00 p.m. of the
next business day following the day on which the member was notified
by the Department of Member Services that the member's offer to
exchange was accepted, the exchanging member shall forfeit ownership
of the title and value of the replacement membership and the
clearing member who has executed an agreement to purchase the
membership as provided in section (a)(ii) of this Regulation shall
make such payment by 5:00 p.m. of the next business day following
the day upon which payment was due from the exchanging member. Upon
such payment, the clearing member shall be the owner of the title
and value of the replacement membership. The clearing member shall
either sell or transfer the replacement membership or cause the
replacement membership to be registered on its behalf in accordance
with Rule 230.00 of these Rules and Regulations. The clearing member
shall account to the exchanging member for the portion of the
replacement membership bid price paid from the proceeds from the
sale of the relinquished membership.
Failure to fulfill the obligations set forth in said agreement shall
constitute acts detrimental to the interest and welfare of the
Association.
(viii) The person who purchases the relinquished membership from the
Association and the person who sells the replacement membership to
the Association shall follow the procedures specified in section (a)
or (b) of this regulation as applicable. Exchanges under this
section (g), except as provided herein, shall be governed by the
provisions of this Chapter.
(h) Direct Exchange of Memberships -
(i) A member in good standing may transfer (1) an associate membership
in direct exchange for a full membership of another member, (2) a
full membership for an associate membership of another member, (3) a
GIM membership interest for an associate membership of another
member, (4) a GIM membership interest for a full membership of
another member, (5) a COM membership interest for an associate
membership of another member, (6) a COM membership interest for a
full membership of another member, (7) an IDEM membership interest
for an associate membership of another member, (8) an IDEM
membership interest for a full membership of another member, (9) an
IDEM membership interest for a COM membership interest of another
member or (10) a COM membership interest for an IDEM membership
interest of another member. The exchanging members shall jointly
execute and deliver to the Department of Member Services an
agreement of direct exchange in such form as may be prescribed by
the Exchange and setting forth the agreed Price Differential between
the memberships. The agreement shall be accompanied by (1) a check
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
from each member in the amount of the applicable transfer fee, (2) a
certified or cashier's check for the Price Differential, and (3) for
each member, an agreement of a clearing member of the Association to
pay to the Association in cash upon demand the amount of any
assessments or claims against the exchanging member's relinquished
membership according to Rule 252.00 up to the value of the
relinquished membership at the time the exchange is accepted. For this
purpose, the value of the relinquished membership shall be the average
of the posted bid and offer prices for such memberships; provided that
if there is either no posted bid or no posted offer, the value shall
be the price paid in the last sale of such memberships. Title and
value of the memberships shall be transferred to the respective
exchanging members upon notification from the Department of Member
Services that it has accepted the exchange.
(ii) Exchanges under this section (h), except as provided herein, shall be
governed by the provisions of this Chapter.
(i) Transfer to a Trust -
(i) A member or membership interest holder (collectively referred to as
"member" under this section) or a member's personal representative
(including his or her agent under a durable power of attorney) may
transfer his or her membership(s) or membership interest(s) to a
trust of which the member is a grantor, if: (1) while the member is
living and competent, the member is the sole trustee of the trust,
(2) the member retains the right to revoke the trust during his or
her life, and (3) all beneficiaries of the trust are members of the
grantor's family who would be eligible for a family transfer from the
grantor pursuant to section (d) of this regulation.
(ii) A trust shall take the membership subject to all of the rules of the
Exchange, including Rules 230.00 and 252.00; however, Rule 252.00
shall not apply to the transfer of a membership or membership
interest to a trust wherein the member/grantor is the trustee. The
transfer of a GIM membership interest to a trust wherein the
member/grantor is the trustee shall not constitute a transfer under
Rule 296.00(1).
(iii) The interests in the membership that inure to the beneficiaries of
the trust shall be subject to all of the rules of the Exchange; the
Exchange's rights with respect to the membership shall be superior to
those of the beneficiaries; and the Exchange shall have no liability
to the beneficiaries of the trust in the event of the mishandling of
the trust assets by the trustee. The grantor and the trustee (and any
successor) shall each provide in the form provided by the Exchange an
acknowledgement that the trust takes the membership subject to all of
the rules of the Exchange and that the trust is in compliance with
the requirements of this regulation.
(iv) The trustee (and any successor), if not already a member, shall be
required to qualify for membership and satisfy the requirements of
Chapter 2 of these Rules and Regulations.
(v) The grantor's liability to the Exchange under Rule 209.00 shall
continue with respect to any claim arising out of an act or omission
occurring prior to such transfer, and the membership will continue to
be treated as the asset of the grantor for the purposes of Rule
209.00 and for otherwise meeting any obligations to the Exchange
arising out of the grantor's use of the membership prior to the
transfer to the trust, including fines imposed with respect to
conduct occurring prior to the transfer.
A membership or membership interest held in a trust of which the
member/grantor is the sole trustee may be temporarily transferred,
subject to the provisions of section (j) of this regulation, to an
individual within the member/grantor's same family, as defined in
section (d)(I) of this regulation.
(vi) A membership held in trust may not be registered for member firm
privileges.
(vii) Subparagraph (vi) shall not apply to self-owned registered
memberships, provided that the member demonstrates, to the
satisfaction of the Association and before the membership is placed
in trust, that the declaration of the trust into which the membership
will be transferred incorporates by express reference the Rules and
Regulations of the Association.
This subparagraph shall have no effect on the provision of Regulation
249.01(j)(iv) that prohibits the use of a membership that is the
subject of a revocable intra-family transfer for
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
member firm privileges.
(viii) The transfer shall be revoked and the membership shall revert to the
transferor upon official notice to the Exchange that the trust has
been revoked.
(j) Notwithstanding the provisions of section (d) of this regulation pertaining
to permanent family transfers, a member or membership interest holder may
temporarily transfer his or her respective membership or membership
interest to a member of his or her immediate family, as defined in section
(d)(i) of this regulation, who shall be subject to all Exchange Rules and
Regulations.
Transfers under this section shall be subject to the following terms and
conditions:
(i) The transferor may revoke the transfer upon written notice to the
transferee, and a copy thereof shall be filed by the transferor with
the Member Services Department as a precondition to its
effectiveness. The transferee shall remain approved for membership
under the same conditions which are applicable in the event of a
termination of a delegation agreement, as set forth in Rule
221.00(a).
(ii) The transfer shall be revoked and the membership or membership
interest shall revert to the transferor's estate or conservator upon
official notice of the death or formally declared incompetence of
the transferor.
(iii) Upon election to membership, the transferee shall be treated as a
member for all purposes, except that the transferee shall have no
authority to sell, transfer or assign the membership or membership
interest. The right to vote on all matters subject to a ballot vote
among the general membership will remain with the transferor. A Full
or Associate Member shall not be ineligible for elective office or
committee appointments based on such member's having temporarily
transferred his or her Full or Associate Membership pursuant to this
section (j).
(iv) While a transfer under this section is in effect, the membership
involved would not qualify the transferee for elective office and
the membership may not be registered under Rule 230.00 for member
firm privileges.
(v) The provisions of Rule 221.00(c) shall apply to the transferor and
the transferee in the same manner that those provisions apply to a
member and his delegate.
(vi) The transferor may sell or transfer the membership at any time in
accordance with the provisions of this regulation. The family
transfer shall automatically be null and void upon such a sale or
transfer by the transferor. The proceeds of the sale of the
membership will be distributed to the transferor following the
settlement of all claims pursuant to Rule 252.00
(vii) The transfer of a GIM membership interest under this section shall
not constitute a transfer under Rule 296.00(1).
(viii) In the case of a membership or membership interest held in trust
pursuant to subsection (i), the trustee may transfer the membership
or membership interest in accordance with the provisions of this
subparagraph (j). The trustee shall have the rights, duties and
obligations of a transferor as provided by this subsection (subject
to the provisions of subsection (i)). Where the transferor is the
trustee of a membership or membership interest held in trust
pursuant to subsection (i), and either (1) the trustee revokes the
transfer; (2) the settlor is officially declared dead or (3) the
settlor is decreed to be legally incompetent by a court of proper
jurisdiction, then the membership or membership interest shall
automatically revert to the trustee. (10/01/04)
250.01 Sale and Transfer of Membership Privileges - A member or his legal
representative desiring to sell his membership or membership interest shall
deliver to the Department of Member Services a signed authorization of sale
which is notarized or otherwise officially authenticated, or a telecopy thereof,
in the form prescribed below. The authorization of sale shall contain a specific
offer price. The member must also deliver to the Department of Member Services a
signed consent to jurisdiction in a form prescribed by the Exchange before his
authorization of sale will be accepted. With respect to the sale of a firm-owned
membership, the consent to jurisdiction must be signed by the last member
holding the membership and, if the sale would terminate the firm's member firm
status, a consent to jurisdiction must also be executed on behalf of the firm.
The consent to jurisdiction form provides that the member and, if applicable,
the member firm, consents to and accepts the
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
Association's jurisdiction with respect to any potential or current disciplinary
matter of which the Association is aware or becomes aware prior to the
distribution of proceeds and further that the Exchange may retain all of the
proceeds from the sale of the member's seat pending the outcome of any
disciplinary action. The following shall apply to persons elected to membership
and to registered member firms for a period of five years after the termination
of such individual's or firm's membership status. Each such individual and firm:
- Remains responsible for any violations of Exchange rules and
regulations committed while a member or member firm; and
- Agrees to have any disputes which arose while a member or member firm
and which relate to or arose out of any transaction upon the Exchange
or membership in the Exchange, resolved in accordance with Exchange
rules and regulations.
An individual wishing to purchase a membership or membership interest shall
inform the Department of Member Services in such form as shall be prescribed by
the Exchange of his desire to purchase a membership or membership interest. When
the purchaser's bid has been matched with an offer to sell, the purchaser shall
sign a confirmation of purchase and shall by 5:00 p.m. of the next business day
following the day on which he was notified by the Department of Member Services
that his bid was matched to an offer deposit with the Department of Member
Services the balance, if any, owing on the purchase price on the membership or
membership interest.
AUTHORIZATION OF SALE
To the Department of Member Services, ---------20--------
Board of Trade of the City of Chicago
I hereby offer to sell my membership privilege on the Board of Trade of the
City of Chicago for the sum of $----------to any purchaser, and I authorize
you to transfer my membership privilege to such purchaser upon his deposit
of said purchase price with you and his payment of the transfer fee, it
being understood that I shall pay all assessments up to the end of the
quarter in which my membership is thus transferred. I have this date
knowingly entered the date and offer price set forth above.
---Please check here if this offer revises and replaces a previous offer to
sell your membership privilege.
I ACKNOWLEDGE THAT I AM PERSONALLY LIABLE FOR ANY DAMAGES THAT MAY RESULT
IF THIS OFFER REVISES AND REPLACES A PREVIOUS OFFER AND I FAIL TO NOTE THIS
BY CHECKING THE SPACE INDICATED ABOVE.
----------------------
Social Security Number
-----------------
Subscribed and sworn to before me on this Day of ,
------- -----------------
20
------------------
---------------------------
Notary Public
CONFIRMATION OF PURCHASE
Mr. , 20
--------------------- ------------ ------
I hereby confirm my purchase of your membership privilege on the Board of
Trade of the City of Chicago in accordance with Regulations 243.01 and
250.01 for the sum of $___________, it being understood that I have paid to
the Board of Trade of the City of Chicago the transfer fee of $___________.
-----------------------
Signed in the presence of
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
--------------------------
(01/01/00)
250.02 Memberships Held Under Regulation 249.01(b) - The title and value of a
membership procured under Regulation 249.01(b) is owned by the member firm
acquiring it, but the personal privileges of that membership can only be
exercised by one of the member firm's principals or employees who has been
approved by the Exchange, except as otherwise provided in Rule 230.00. For that
reason, the member firm may to designate a qualified individual to exercise the
personal privileges of that membership. Any such designation may be terminated
by the member firm at any time. In that event, the individual's right to
exercise the personal privileges of that membership terminates immediately and
automatically. In the event that an individual wrongfully exercises any personal
privilege of membership after termination, the member firm shall remain
responsible for that individual's liabilities and actions until written notice
of the termination has been posted on the bulletin board. 1806 (01/01/04)
250.03 Power-of-Attorney - In connection with membership transfers and
delegations, a power-of- attorney is permitted to be used only for the following
functions;
1. To submit a bid to purchase a membership or membership interest.
2. To sign the membership register.
3. To execute, amend, terminate or file a delegation agreement. (08/01/94)
251.00 Membership Transfer - All purchases or sales of membership privileges
shall be made pursuant to Regulations adopted by the Exchange and no commission
or other compensation for services in connection with the purchase or sale of a
membership in the Association shall be paid. 127 (08/01/94)
251.01 Member Under Investigation - No member may transfer his membership
privilege by intrafamily transfer and no member firm may transfer a firm-owned
membership from one member employee to another employee under Regulation
249.01(b), unless the approval of the Regulatory Compliance Committee is first
secured, when the member is under investigation by any standing committee or by
a special committee appointed under the provisions of Rule 541.00 or when
charges are preferred against him or when he is under suspension for causes
other than default, insolvency, or non-payment of assessments. 1835 (08/01/94)
252.00 Proceeds of Membership -
(a) ORDER OF DISTRIBUTION. Upon any transfer of membership, whether made by a
member voluntarily or by the Board, the proceeds shall be applied to the
following purposes and in the following order of priority:
(1) FIRST, the payment of all debts owed to the Clearing Services
Provider, if the membership transferred was registered for a Clearing
Member in order to qualify the clearing Member for clearing status
pursuant to Rule 703.00, by the member whose membership is
transferred. With respect to any other membership, the Exchange shall
have the first priority for the debts described in paragraph (2)
below, and the Clearing Services provider shall have the second
priority.
(2) SECOND, the payment of all debts owed to the Exchange by such member,
including, but not limited to, dues, assessments, service fees and
fines.
(3) THIRD, the payment to such member's Primary Clearing Member or
Members, as specified in Rule 333.00, of all claims filed under
Rule 253.00 for trading losses of such member arising out of
Transactions on Change, and which claims have been allowed by the
Board.
(4) FOURTH, the payment to other Clearing Members of all claims filed
under Rule 253.00 for trading losses of such member arising out of
Transactions on Change, and which claims have been allowed by the
Board.
(5) FIFTH, the payment to members and member firms of all claims filed
under Rule 253.00 for money owed on loans which had been made to the
member whose membership was transferred, exclusively for the purpose
of financing the purchase of such membership, and
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
which had been promptly recorded with the Secretary of the
Association, and which claims have been allowed by the Board.
(6) SIXTH, the payment to members and member firms of all claims filed
under Rule 253.00 otherwise arising from Member's Contracts, exclusive
of personal debts which are not related to the conduct of business as
a broker, trader or commission merchant, and which claims have been
allowed by the Board. Provided, however, that this provision shall not
apply to a membership subject to Regulation 249.01(b) or 249.01(c).
(b) PRO RATA PAYMENT. If the proceeds of a transfer of membership are
insufficient to pay all filed claims allowed by the Board, such claims,
within the priorities listed in (a) above, shall be paid pro rata, except
as provided in (e) below.
(c) SURPLUS, IF ANY. Claims which are not filed during the period specified in
Regulation 249.01 but which would otherwise qualify under (a) above may, if
allowed by the Board, be paid out of any surplus after all other claims
allowed by the Board have been paid in full and shall be paid in preference
to claims referred to in (e) below. The remaining surplus, if any, of the
proceeds of a transfer of membership, after payment of all claims allowed
by the Board under this Rule, shall be paid to the person whose membership
is transferred, or to his legal representatives, upon the execution by him
or them of a release or releases satisfactory to the Board.
(d) VALUATION.
(1) Claims which have not matured at the time of the transfer of the
membership may be treated as though they had matured, and the amount
due may be fixed and determined by the Board on the basis of market
values or such other basis as the Board deems to be fair and just.
(2) If a claim is contingent or the amount that will ultimately be due
cannot be immediately ascertained and determined, the Board may
reserve and retain such amount from the proceeds as it deems
appropriate, pending determination of the amount due on the claim.
(3) A claim shall be allowed by the Board only for the amount due after
credit is given for the proceeds of the sale of any collateral held by
the claimant of the fair value of such collateral as determined by the
Board, The Board may require, before passing on the claim, that all
such collateral be sold.
(e) CLAIMS OF PARTNERS. Claims growing out of transactions between partners,
who are members of the Association, shall not share in the proceeds of the
membership of one of such partners until all other claims as allowed by the
Board have been paid in full.
(f) RIGHTS OF CREDITORS OF DECEASED, INCOMPETENT, SUSPENDED, OR EXPELLED
MEMBER. The death, incompetency, expulsion or suspension of a member shall
not affect the right of creditors under the provisions of this Rule.
(g) DEATH OR INCOMPETENCY OF CREDITOR MEMBERS. When a member is in debt to
another member, the death or incompetency of the creditor member or the
transfer of his membership either by his estate or by the Board, shall not
affect the rights of the creditor member, his firm, corporation, or estate,
to share in proceeds of the membership of the debtor member under this
Rule, in the same manner and to the same extent as if the creditor member
had not died, become incompetent or his membership had not been
transferred.
(h) DEBTS EXISTING AS OF THE EFFECTIVE DATE OF THIS RULE AS AMENDED. Within 20
business days after the effective date of this Rule, as amended, all
members and member firms shall notify the Secretary of the Association of
all member debts outstanding as of the effective date which debts have
arisen out of members' contracts had between the parties thereto in the
ordinary course of business. The Secretary shall record such debts. All
recorded debts still remaining unpaid at the time of the transfer of the
debtor's membership, if allowed by the Board, shall be included in Category
3 of this Rule to be paid pro rata if necessary along with claims under
that category, provided such debts are determined by the Board to have
arisen out of members contracts had between the parties thereto in the
ordinary course of business. The notice to the Secretary shall include the
debtor member's acknowledgment of the debt; provided, however, that
Ch2 Purchase and Sale or Transfer of Membership or Membership Interest
----------------------------------------------------------------------
any contested debts will be provisionally recorded by the Secretary.
(01/01/04)
252.00A Claims Filed by Corporations - Your Rules and Claims and Insolvencies
Committees concur in the attorney's opinion that a corporation cannot share in
the proceeds of the sale of memberships against which the corporation has filed
claims (even claims filed prior to the cancellation of the registration of its
officer's membership) after the member has cancelled the registration of his
membership for the benefit of the corporation, leaving no other member
registered for the corporation. 3R (08/01/94)
252.00B Interpretation of Rule 252(e) - The Rules Committee has interpreted
Rule 252(e) as follows:
Where a partnership is the primary or other clearing member for one of its
member partners, such partnership may make claims against the proceeds from the
sale of such partner's membership under the provisions of Rule 252.00(a) (3) or
(4) for trading losses. A partnership may make claims against the proceeds from
the sale of a partner's membership under Rule 252.00(a) (5) where such loan had
been made exclusively for the purpose of financing the purchase of the partner's
membership. (08/01/94)
253.00 Filing Claims - A member to establish his claim and to become entitled
to his rights under Rule 252.00 of this Chapter to share in the proceeds of a
membership, shall file a statement of his claim during the period specified in
Regulation 249.01. Claims if not so filed and allowed by the Board may be paid
out of any surplus after all claims allowed by the Board have been paid in full
and shall be paid in preference to claims referred to in Rule 252.00(e) of this
chapter. 113 (08/01/94)
253.01 Pending Arbitration - In the event an Exchange arbitration action is
pending against a member who sells his membership, the entire proceeds from such
membership sale shall be reserved and retained by the Exchange towards
satisfaction of any resulting arbitration award in accordance with Rule 252.00.
However, prior to the arbitration hearing, a selling member whose sale proceeds
are being held by the Exchange pending the outcome of an arbitration may make
application to the Executive Committee who, upon such application, shall have
the discretion to authorize release to the selling member of any of the proceeds
in excess of the amount claimed in the arbitration and claims filed pursuant to
Rule 252.00. (08/01/94)
255.00 Deceased or Incompetent Member - When a member dies, or when a
conservator is appointed for him or his estate, his membership may be disposed
of by the Board in accordance with Rule 257.00. If the deceased or incompetent
member has neglected to pay assessments, Rule 242.00 shall apply to the
disposition of his membership by the Board. 115 (08/01/94)
256.00 Expelled Member - When a member is expelled or becomes ineligible for
reinstatement, his membership may be disposed of forthwith by the Board. 116
(08/01/94)
257.00 Disposal of Memberships - The Board may elect to dispose of a membership
in accordance with, and as provided by, these Rules, by adopting a resolution to
purchase from a member such member's membership (and any associated common stock
of CBOT Holdings). The Corporation shall purchase from such member as of the
date specified in the resolutions of the Board such membership (and any
associated common stock of CBOT Holdings) for consideration equal to the average
of the highest bid and lowest offer for the applicable class of membership (and
any associated common stock of CBOT Holdings) as reported by the Membership
Department as of such date. If there is not both a bid and offer reported for
the applicable class of membership (and any associated common stock of CBOT
Holdings) as of such date, the consideration shall be equal to the last reported
sale price for such class of membership (and any associated common stock of CBOT
Holdings). All claims against, or amounts owed by, such member shall be settled
in accordance with these Rules prior to the payment of any consideration under
this Rule 257.00 to such member.
Ch2 Insolvency
270.00 Insolvency - A member, or any other person with trading privileges, who
fails to perform his contracts, is insolvent, or is the subject of petition for
bankruptcy, or whose membership is registered for a member firm which fails to
perform its contracts, is insolvent, or is the subject of a petition for
bankruptcy, shall immediately inform the Secretary in writing that he or his
firm or corporation is unable to meet his or its engagements, and prompt notice
thereof shall be given to the Association. Subject to the provisions of
Regulation 540.06, he shall thereby become suspended from membership until,
after having settled with his creditors or the creditors of his firm or
corporation, he has been reinstated by the Board.
If a clearing member firm learns that any of the above-specified conditions
apply to a member or member firm whose trades it clears, the clearing member
firm must also immediately provide written notice thereof to the Secretary, and
prompt notice thereof shall be given to the Association. For purposes of this
provision, a clearing member firm will be deemed to have learned of such
conditions, if a member who is registered for the firm, and is also a general
partner of a partnership, an officer or director of a corporation, or a manager
of a limited liability company, has actual knowledge thereof.
Nothing in this Rule shall preclude disciplinary action for the violation of any
Rule or Regulation of the Association which contributed to the condition for
which the person is suspended under this Rule. (06/1/00)
270.01 Restrictions on Operations - The Financial Compliance Committee shall
advise the Chairman or Acting Chairman of the Board whenever it appears that a
member, registered eligible business organization, wholly-owned affiliate of
such member or registered eligible business organization or any other person
with trading privileges is insolvent; is failing to meet the minimum capital
requirements of the Association and cannot demonstrate its ability to achieve
compliance; is in such financial condition that it cannot be permitted to
continue in business with safety to its customers, its creditors, or the
Association; or such other condition or practice exists which may adversely
affect the safety of funds or positions carried for others. Upon the receipt of
such advice, the Chairman or Acting Chairman may, subject to the provisions of
Regulation 540.06, impose any restriction upon the operations of a member,
registered eligible business organization, wholly-owned affiliate or any other
person with trading privileges as he deems appropriate in the circumstances,
including but not limited to the following:
(a) Restrictions upon the solicitation and or acceptances of new positions or
new accounts;
(b) In the case of positions or funds not otherwise protected by law which are
carried for the benefit of others, restrictions upon the uses to which such
positions or funds may be applied, and
(c) Restrictions upon the carrying of funds or positions of others on an
omnibus account basis.
Any member, registered eligible business organization, their wholly-owned
affiliates, or persons with trading privileges failing or refusing to comply
promptly with a restriction imposed by the Chairman shall be fined, suspended,
or expelled by the Board.
Nothing in this Regulation shall preclude disciplinary action for the violation
or any Rule or Regulation of the Association which contributed to the condition
for which restrictions are imposed under this Regulation. 1794 (04/01/98)
270.02 Procedures for Member Responsibility Actions - (See 540.06) (08/01/94)
270.03 Finality of Disciplinary Decisions and Member Responsibility Actions -
(See 540.07) (08/01/94)
271.00 Announcement of Suspension - Whenever a member, registered eligible
business organization or any other person with trading privileges has been
suspended pursuant to Regulation 540.06, the Secretary shall immediately
announce to the Association the suspension of such member, eligible business
organization, or other person. If such suspension is modified or rescinded after
hearing, the Secretary shall announce the revised action to the membership. 120
(04/01/98)
272.00 Insolvent Member - When announcement is made of a suspension of a
member, firm or
Ch2 Insolvency
--------------
corporation pursuant to the Rules and Regulations, members have Exchange
contracts with the member, firm or corporation may proceed to close the same on
the Exchange or in the best available market, except insofar as the By-Laws and
Resolutions of the Clearing House are applicable and provide the method of
closing. Should a contract not be closed, as above provided, the price of
settlement shall be fixed by the Regulatory Compliance Committee.
Such suspended member, firm or corporation shall upon request of any customer
immediately arrange for the transfer of each open position of such customer to
such other person, firm or corporation as such customer may designate. 121
(08/01/94)
272.01 Bankruptcy of a Member or Non-Member - Whenever an order for relief
under the Bankruptcy Code as defined in Regulation 272.02 is entered for a
member, firm or corporation, or for a non-member, members having Exchange
contracts with the bankrupt member or non-member may proceed to close the same
on the Exchange in accordance with the provisions of Rule 272.00. (08/01/94)
272.02 Deliveries in Bankruptcy Situation -
(a) For purposes of this Regulation:
(i) The term "customer" shall mean any person for whom a member carries an
Exchange futures contract except a non-public customer as that term is
defined in CFTC Regulation 190.01(bb).
(ii) The term "debtor" shall mean any member with respect to which an order
for relief is entered under the Bankruptcy Code.
(iii) The term "order for relief" means the filing of a petition in
bankruptcy in a voluntary case and the adjudication of bankruptcy in
an involuntary case.
(iv) The term "tender" with respect to a notice of delivery shall mean, in
the case of a short clearing member that has presented such a notice
to the Clearing Services Provider, the assignment of such notice by
the Clearing Services Provider to a long clearing member, and, in the
case of a long clearing member, the acceptance by such member of such
notice from the Clearing Services Provider if such notice is not
transferred by such long clearing member within the time permitted
under the Rules of the Association or the Clearing Services Provider.
(b) This Regulation shall apply only in the event and under the circumstances
set forth in paragraph (c) hereof, and only in the event that the opposite
clearing member referred to in said paragraph (c) is not itself a debtor.
(c) Notwithstanding any provisions of the Exchange Rules or the policies, Rules
or Regulations of the Clearing Services Provider to the contrary, the
requirements set forth in this paragraph (c) shall apply in the event that
any member becomes a debtor, and that at that time such member carries for
a customer any Exchange futures contract in the current delivery month with
respect to which the underlying physical commodity has not become a part of
the debtor's estate on the date of the entry of the order for relief, and
with respect to which:
(i) trading has ceased on the date of the entry of the order for relief;
or (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 such futures contract can be liquidated by the
trustee of the debtor's estate.
In such circumstances, any customer for whose account such member is
holding any such futures contract shall make delivery of and receive
payment for, or receive delivery of and make payment for, the physical
commodity as required to fulfill such contract directly between the
customer and the opposite clearing member identified by the Clearing
Services Provider as the party to whom delivery should be made or from whom
delivery should be taken by such customer, in accordance with the policies,
Rules and Regulations of the Clearing Services Provider. Such opposite
clearing member shall receive delivery of and make payment for, or make
delivery of and receive payment for, such commodity in accordance with the
policies, Rules and Regulations of the Clearing Services Provider;
provided, however, that nothing contained herein shall prevent such
customer and such opposite clearing member from settling any such contract
on such terms as may be mutually agreed upon.
Ch2 Insolvency
--------------
(d) The making or taking of delivery or payment with respect to any futures
contract in accordance with paragraph (c) shall discharge in full the
obligations of such customer and such opposite clearing member to the
debtor and to every other person with respect thereto, but shall not
discharge the debtor from any of its obligations with respect to such
contract except to the extent that such delivery or payment is made.
(e) Nothing contained in this Regulation shall relieve any customer of its
obligation to make or take delivery under any Exchange futures contract for
the sole reason that delivery must be made to or taken from a commodity
broker which is a debtor. (01/01/04)
273.00 Investigation - Every person suspended under the provisions of Rule
270.00 shall immediately afford every facility required by the Office of
Investigations and Audits for the investigation of his affairs, and shall, after
the announcement of his suspension, file with the Office of Investigations and
Audits a written statement covering all information required by the Office of
Investigations and Audits, including a complete list of his creditors and amount
owing to each. 122 (08/01/94)
273.01 Insolvency - When the Financial Compliance Committee from any
preliminary investigations or otherwise, has reason to suspect that any member
of the Association is threatened with insolvency, it shall co-operate with such
member, in any feasible manner not contrary to the Rules and Regulations of the
Association, to save such member from open and judicial bankruptcy. When this is
not practicable, the Committee shall then take such other action as will in its
judgment assist in securing a prompt, efficient, and economic administration of
the member's assets for the bankrupt, as well as for the members of the
Association and customers of such bankrupt, who are creditors. Nothing herein,
however, shall authorize such Committee to bind the Association to any pecuniary
obligation. 1815 (08/01/94)
274.00 Reinstatement - When a person suspended under the provisions of this
Chapter applies for reinstatement, the Secretary shall make notice thereof
available to the membership and shall post notice thereof, upon the bulletin
board at least fifteen days prior to the consideration by the Board of such
application. The applicant shall furnish to said Board the list of his
creditors, a statement of the amounts originally owing and the nature of the
settlement in each case. The application shall be heard in accordance with
Regulation 540.03.
If the applicant fails to receive the approving vote of two-thirds of the
members of the Board present, the applicant shall be entitled to be balloted for
at two subsequent regular meetings of the Board to be designated by himself;
provided, however, that the three ballots to which the applicant shall be
entitled, shall be within six months from the date of his suspension, or until
such time as the membership is sold, or within such further extended time for
settlement as may have been granted by the Board. 124 (05/01/01)
275.00 Suspended or Expelled Member Deprived of Privileges - (See 561.00)
(08/01/94)
276.00 Suspended Member-Time for Settlement - If a person suspended under the
provisions of this Chapter fails to settle with his creditors and fails to apply
for reinstatement within (30) thirty days from the date of his suspension, or
within such further time as the Board may grant, or fails to obtain
reinstatement as elsewhere herein provided, his membership may be disposed of by
the Board in accordance with Rule 257.00.
The Board may, by a two-thirds vote of the members present, extend the time of
settlement for periods not exceeding one year each. 123 (06/01/99)
277.00 Discipline During Suspension - (See 562.00) (08/01/94)
278.00 Suspension for Default - Where a member, or any other person with
trading privileges, fails or refuses to (a) perform an Exchange contract with
(b) pay obligations arising out of such contracts to another member, or (c) pay
obligations owed to the Association, the defaulting member, on complaint of the
other member or, in the case of a debt owed to the Association, of the Treasurer
of the Association, shall, subject to the provisions of Regulation 540.06, be
suspended until the contract is performed or the debt satisfied. Registered
firms and corporations shall be deemed members under this Rule. Application for
reinstatement shall allege, under oath, that all such debts have been
discharged, and notice of such application shall be posted on the bulletin board
fifteen days prior to the hearing of such application pursuant to Rule 274.00.
Ch2 Insolvency
--------------
Nothing in this Rule shall preclude disciplinary action for the violation of any
Rule or Regulation of the Association which contributed to the condition for
which the member is suspended under this Rule. 130 (12/01/96)
278.01 Arbitration of Default - If the member alleged to be in default pursuant
to Rule 278.00 denies the default, he shall be entitled to have the claim
arbitrated. If the claim is admitted or established by a final arbitration
award, the defaulting member shall be suspended until he has satisfied and
discharged the debts owing to members on Exchange contracts. (08/01/94)
285.01 Financial Questionnaire - Each member, registered eligible business
organization or wholly-owned affiliate of such member or registered eligible
business organization shall furnish to the Business Conduct Committee or the
Financial Compliance Committee, at such times as the Committee may designate, an
answer to a financial questionnaire in such form as the Committee may prescribe.
1781 (04/01/98)
285.02 Audits - The Business Conduct or Financial Compliance Committee may
require any member, registered eligible business organization or its wholly-
owned affiliates carrying margin accounts for customers or transacting business
involving the purchase and sale of cash commodities for customers, to cause to
be made as of the date of an answer to a financial questionnaire, an audit of
his or its assets, liabilities, accounts and affairs, including securities held
for safekeeping, in accordance with such audit requirements as may be prescribed
by said Committee, and to file with said Committee a statement to the effect
that such an audit has been made and that the answers to the questionnaire are
in accord therewith.
Such statement shall in the case of any such member of the Association not a
partner of a registered partnership, a manager of a registered limited liability
company, nor an officer of a registered corporation, be signed by such member.
In the case of a registered partnership, such statement shall be signed by two
general partners of the partnership, one of whom must be a member of the
Association. In the case of a registered corporation, such statement shall be
signed by at least two of the bona fide, active executive officers of the
corporation, one of whom must be a member of the Association whose membership is
registered on behalf of the corporation. In the case of a registered limited
liability company, such statement shall be signed by at least two managers of
the limited liability company, one of whom must be a member of the Association
whose membership is registered on behalf of the limited liability company. In
the case of a wholly-owned affiliate of a member, registered partnership,
registered limited liability company or registered corporation, such statement
must be signed as indicated above, as well as by an active executive officer of
the wholly-owned affiliate. The statement must also certify that a copy of it
has been made available to each general partner in the case of partnerships, to
each of the members of a limited liability company and in the case of
corporations each member of the Association whose membership is registered on
behalf of the corporation.
The signature of a partner of such partnership, a member of such limited
liability company or an officer of such corporation, may be waived by the
Committee at the discretion of the Committee.
Such above statement shall in all cases be attested to by the auditors and a
copy of the report of the audit signed by the auditors shall be retained as part
of the books and records of the member, registered partnership or registered
corporation. 1782 (04/01/98)
285.03 Notification of Capital Reductions - Any CBOT clearing member, or firm
that has been approved to deliver against a CBOT contract must
notify the Exchange in writing within two business days of any event or
series of events, including any withdrawal, advance, loan or loss that, on
a net basis, causes a twenty percent (20%) or more reduction of its net
capital, or in the case of a Sole Proprietor clearing member or an
agricultural regular firm, its Net Worth as last reported by submission of
a financial statement. (01/01/04)
Ch2 Insolvency
--------------
285.04 Restrictions on Operations - (See 270.01) (08/01/94)
285.05 Financial Requirements -
A. All member firms that are registered as Futures Commission Merchants must
comply with the requirements set forth in the following CFTC Regulations:
1. 1.10 - Financial reports
a. In addition to the requirements set forth in CFTC Regulation 1.10
each member FCM must:
1. File with the Exchange unaudited monthly financial
statements including an unaudited monthly financial
statement as of the firm's fiscal year end; and
2. Submit with the certified year-end financial statement a
reconciliation between the certified financial statement and
the unaudited monthly financial statement as of the firm's
fiscal year end; and
3. For all financial statement filings, submit a Statement of
Income (Loss) for the period between the date of the most
recent financial statement or, at the option of the member,
the most recent certified financial statement filed with the
Exchange; and
4. Each member FCM must promptly submit to the Exchange, unless
specifically exempted, copies of any financial statements
(for example, Focus Reports) submitted to any other futures
or securities exchange, self-regulatory organization,
Clearing Services Provider or federal government agency.
b. Statement Certification and Attestation Requirements:
1. For a member FCM which is a registered partnership,
financial report must be signed in a manner as determined by
the Exchange (i.e. - electronic or manual) by the individual
designated as the Chief Financial Officer (or as having
these responsibilities), in accordance with Chicago Board of
Trade Regulation 230.03(a), provided that he is a general
partner.
2. For a member FCM which is any type of eligible business
organization other than a partnership, financial reports
must be signed in a manner as determined by the Exchange
(i.e. - electronic or manual) by the individual designated
as the Chief Financial Officer (or as having these
responsibilities) in accordance with Chicago Board of Trade
Regulation 230.03(a).
3. An attestation letter must accompany all audited financial
reports which are filed with the Exchange, as well as any
financial reports which are not filed electronically. The
attestation letter must certify that copies of the financial
reports must be made available to: (a) each member of the
Chicago Board of Trade whose membership is registered for
the FCM: (b) each individual designated by the FCM, in
accordance with Regulation 230.03(a): and (c) each general
partner in the case of a partnership.
4. The signature of the Chief Financial Officer, or the person
who has these responsibilities, may be waived by the
Exchange, at the discretion of the Exchange. In the event of
such waiver, an FCM will be required, in the case of a
partnership, to have a general partner sign the financial
reports. In the case of any other type of eligible business
organization, the FCM will be required to have the Chief
Executive Officer sign the financial reports. In either
event, this individual must either be a member of the
Chicago Board of Trade, or must have been designated by the
FCM, in accordance with Regulation 230.03(a).
5. Financial report audited by an independent public accountant
must be attested to by the independent public accountant.
6. Financial reports which are filed through Exchange-approved
electronic transmission must be accompanied by the CBOT
assigned Personal
Ch2 Insolvency
--------------
Identification Numbers (PINS) of the authorized signers. The
PIN number will constitute and become a substitute for the
manual signature of the authorized signer to the
electronically filed financial report. The PIN is a
representation by the authorized signer that, to the best of
his or her knowledge, all information contained in the
statement being transmitted under the PIN is true, correct
and complete.
7. The unauthorized use of a CBOT assigned Personal
Identification Number for electronic attestation by an
unauthorized party is forbidden.
2. 1.12 - Maintenance of minimum financial requirements by futures
commission merchants; and
3. 1.16 - Qualifications and reports of accountants; and
4. 1.17 - Minimum financial requirements for futures commission merchants
and introducing brokers; and
5. 1.18 - Records for and relating to financial reporting and monthly
computation by futures commission merchants; and
6. 1.20 through 1.30 - Customers' Money, Securities, and Property; and
7. 1.32 - Segregated account; daily computation and record; and
8. 30.7 - Treatment of foreign futures or foreign options secured amount.
Notwithstanding the foregoing requirements, the CBOT may impose additional
accounting, reporting, financial and/or operational requirements as
determined necessary.
B. Each non-FCM Clearing Member firm must file with the Exchange a certified
year-end financial statement within 90 days of the firm's year end. In
addition, such a firm is also required to file, within 45 days of the
statement dates, unaudited quarterly financial statements for each of the
three quarters that do not end on the firm's year end.
C. Sole Proprietor Clearing Members must file with the Exchange unaudited
quarterly financial statements within 45 days of the statement dates.
D. For firms that are regular to deliver agricultural products see Appendix
4E.
E. For firms that are regular to deliver Rough Rice see Appendix 37D.
In addition, any FCMs, Non-FCMs, or Sole Proprietors who are CBOT Clearing
Members must comply with any additional minimum financial requirements or
financial statement filing requirements imposed on such members by the
Exchange, or by the Clearing Services Provider, pursuant to a Clearing
Services Agreement.
Exchange staff may grant exceptions to the financial requirements imposed
by this Regulation, unless required by the Commodity Futures Trading
Commission, for good cause, if it is determined that such exceptions will
not jeopardize the financial integrity of the Exchange, or the Clearing
Services Provider, as applicable. (10/01/03)
285.08 Financial Arrangements - Each member who makes an arrangement to finance
his transactions must identify to the Exchange the source of the financing and
its terms. The Exchange must be informed immediately of the intention of any
party to terminate or change any such arrangement. (12/01/94)
285.09 Trading Associations - Each member who makes an arrangement to be on the
floor of the Exchange for the purpose of making discretionary trading decisions
and executing discretionary trades for a firm must ensure that the firm is
registered as a member firm of the Exchange. (11/01/03)
286.00 Trades of Non-Clearing Members - On the first business day of each month
each clearing member who is creditor of any member as a result of debts related
to the conduct of business as a broker, trader or commission merchant shall
report to the Business Conduct Committee the name of each member whose unsecured
indebtedness to him is in the amount of five thousand dollars ($5,000) or more.
The Business Conduct Committee is authorized to furnish to any clearing member,
Ch2 Insolvency
--------------
on written request, the names of all members or member firms, to whom a
specified member is indebted as reported hereunder, and the names of members and
member firms as reported pursuant to Rule 252.00(h).
The phrase "unsecured indebtedness" as used in the rules means the amount of
indebtedness in excess of collateral security valued in accordance with the
provisions of paragraph 3 and 4 of Regulation 431.02.
Failure of a member or member firm to report such indebtedness may be considered
to be an act detrimental to the interest or welfare of the Association under the
provisions of Rule 504.00 and may be relied on by the Board of Directors in
deciding not to allow a claim for such indebtedness under Rules 252.00 and
253.00. (08/01/94)
287.00 Advertising - No member shall publish any advertisement of other than
strictly legitimate business character. 604 (08/01/94)
Ch2 Membership Interests
290.00 Market Categories - Each existing and prospective futures contract and
options contract traded on the Exchange shall be listed in one of the following
four market categories: Agricultural and Associated Market (AAM), Government
Instruments Market (GIM), Index, Debt and Energy Market (IDEM), and Commodity
Options Market (COM). The Board shall provide for the initial listing of such
futures contracts and options contracts by adopting Regulations and may alter
any such listing by amending these Regulations. No such listing shall affect any
of the rights of full or associate members or other persons with trading access,
except as may be specifically provided for herein. (08/01/94)
290.01 Agricultural and Associated Market (AAM) - The AAM consists of the
following futures contracts: soybeans, soybean meal, soybean oil, oats, wheat,
corn, anhydrous ammonia, diammonium phosphate, barge freight rate index,
FOSFA International Edible Oils Index, sunflower seeds, catastrophe insurance
and rough rice. (09/01/01)
290.02 Government Instruments Market (GIM) - The GIM consists of the following
futures contracts: U.S. Treasury Bonds, U.S. Treasury Notes (6-10 years), U.S.
Treasury Notes (5 years), U.S. Treasury Notes (2 years), Long Term and Medium
Term Agency (Fannie Mae(R) Benchmark and Freddie Mac Reference) NotesSM,
Mortgage, Inflation-Indexed U.S. Treasury Bonds, Long-Term Inflation-Indexed
Treasury Notes, Medium-Term Inflation-Indexed Treasury Notes, German Government
Bonds, Canadian Government Bonds (10 year), Cash Settled U.S. Treasury Notes (2
years), Zero Coupon Treasury Bonds, Zero Coupon Treasury Notes, U.S. Treasury
Bills (90 days), Long-Term Japanese Government Bonds, Mortgage-Backed 10-Year
Interest Rate Swap, 5-Year Interest Rate Swap, GNMA-CDR, Domestic CDs, Treasury
Repos (30-day and 90-day) (when designated) Bund, Bobl, Schatz and When-Issued
2-Year U.S. Treasury Note. (05/01/04)
290.03 Index, Debt and Energy Market (IDEM) - The IDEM consists of the following
futures contracts: 30-Day Fed Fund, Portfolios (when designated), Stock Indexes,
CBOT Dow Jones - AIG Commodity Index(SM), CBOT X-Fund, Corporate Bond Index,
Commercial Paper (30 days), Commercial Paper (90 days), Municipal Bonds (when
designated), 10-Year Municipal Note Index, Municipal Bond Index, Eurodollars,
Crude Oil (when designated), Leaded Gasoline (when designated), Unleaded
Gasoline (when designated), Heating Oil (when designated), Silver, Gold, Gold
Coins (when designated) Plywood, Structural Panel Index, CBOT U.S. Dollar
Composite Index, CBOT Argentina, Brazil and Mexico Brady Bond Indexes, U.S.
Treasury Yield Curve Spread, ComEdTM and TVA Hub Electricity. (11/01/02)
290.04 Commodity Options Market (COM) - The COM consists of the following
options contracts: U.S. Treasury Bond Futures Options and all other options that
are listed for trading by the Exchange. (08/01/94)
291.00 GIM Membership Interest - A GIM Membership Interest is a personal right,
which shall entitle the holder thereof to trade as principal and broker for
others in all contracts listed in the GIM pursuant to Regulation 290.02. In
addition, the holder of a GIM Membership Interest may communicate from the Floor
of the Exchange with persons not on the Floor of the Exchange in the same manner
as may members, but only with respect to contracts traded in the GIM. An
eligible business organization may own a GIM Membership Interest on behalf of an
individual nominee who is a full-time employee of the eligible business
organization, provided that the Membership Committee determines that such GIM
Membership Interest is needed by the eligible business organization to carry on
its business at the Association and that all rights and obligations of the GIM
Membership Interest shall remain the exclusive responsibility of the individual
nominee. An eligible business organization which owns a GIM Membership Interest
may transfer it from one nominee to another individual employee of the eligible
business organization who has been duly approved for membership subject to the
provisions of Regulation 249.01(b).
(A) A GIM Membership Interest shall not carry any voting rights on any matter
which is the subject of a ballot vote of the general membership.
(B) GIM Membership Interest holders, annually, may elect a Committee consisting
of 11 GIM Membership Interest holders, including a Chairman thereof. The
Chairman of this Committee shall be liaison to the Chairman of the Board.
(C) In the event of full liquidation of the Association, the holder of a GIM
Membership Interest shall
Ch2 Membership Interests
------------------------
share in the proceeds from dissolution in an amount equal to eleven percent
(.11) of a full member's share. No holder of a GIM Membership Interest
shall have the right to share in any other distribution made by the
Association.
(D) No GIM Membership Interest shall carry with it the attributes of membership
in the Association under the Fifth Article of the Certificate of
Incorporation of the Chicago Board Options Exchange.
(E) Each holder of a GIM Membership Interest shall be responsible for paying
all dues, fees and assessments that are applicable to full memberships for
each GIM Membership Interest held.
(F) Each GIM Membership Interest may be sold or delegated according to the
Rules and Regulations applicable to the sale and delegation of full and
associate memberships. No GIM Membership Interest may be registered on
behalf of an eligible business organization.
(G) Each person who seeks to purchase or be delegated a GIM Membership Interest
shall make application according to the Rules and Regulations governing
applications for full and associate membership. Each such applicant shall
be considered eligible to assume the rights and obligations of a GIM
Membership Interest according to the procedures and standards that apply to
full and associate members, as set forth in the Rules and Regulations.
(H) Each holder of a GIM Membership Interest shall be subject to all Rules and
Regulations of the Association including all specific duties and
obligations imposed on such holders by the Rules and Regulations, as well
as those duties and obligations imposed upon members or other approved
persons under the Rules and Regulations; provided however, the Board may
exempt holders of GIM Membership Interests from any such duty or obligation
which is incompatible with, or in conflict with or unrelated to the duties
performed by them. All references to "members" and "membership" in the
Rules and Regulations shall apply with equal force to holders of GIM
Membership interest and GIM Membership Interests, respectively, unless
superseded or specifically negated by this Rule or by Rule 290.00 or Rule
294.00 or the Regulations thereunder. (04/01/98)
292.00 IDEM Membership Interest - An IDEM Membership Interest is a personal
right, which shall entitle the holder thereof to trade as principal and broker
for others in all contracts listed in the IDEM pursuant to Regulation 290.03. In
addition, the holder of an IDEM Membership Interest may communicate from the
Floor of the Exchange with persons not on the Floor of the Exchange in the same
manner as may full members, but only with respect to contracts traded in the
IDEM. An eligible business organization may own an IDEM Membership Interest on
behalf of an individual nominee who is a full-time employee of the eligible
business organization, provided that the Membership Committee determines that
such IDEM Membership Interest is needed by the eligible business organization to
carry on its business at the Association and that all rights and obligations of
the IDEM Membership Interest shall remain the exclusive responsibility of the
individual nominee. An eligible business organization which owns an IDEM
Membership Interest may transfer it from one nominee to another individual
employee of the eligible business organization who has been duly approved for
membership subject to the provisions of Regulation 249.01(b).
(A) An IDEM Membership Interest shall not carry any voting rights on any matter
which is the subject of a ballot vote of the general membership.
(B) IDEM Membership Interest holders, annually, may elect a Committee
consisting of 11 IDEM Membership Interest holders, including a Chairman
thereof. The Chairman of this Committee shall be liaison to the Chairman of
the Board.
(C) In the event of full liquidation of the Association, the holder of an IDEM
Membership Interest shall share in the proceeds from dissolution in an
amount equal to one-half of one percent (.005) of a full member's share. No
holder of an IDEM Membership Interest shall have the right to share in any
other distribution made by the Association.
(D) No IDEM Membership Interest shall carry with it the attributes of
membership in the Association under the Fifth Article of the Certificate of
Incorporation of the Chicago Board Options Exchange.
(E) Each holder of an IDEM Membership Interest shall be responsible for paying
all dues, fees and assessments that are applicable to full memberships for
each IDEM Membership Interest held.
Ch2 Membership Interests
------------------------
(F) Each IDEM Membership Interest may be sold or delegated according to the
Rules and Regulations applicable to the sale and delegation of full and
associate memberships. No IDEM Membership Interest may be registered on
behalf of a eligible business organization.
(G) Each person who seeks to purchase or be delegated an IDEM Membership
Interest shall make application according to the Rules and Regulations
governing applications for full and associate membership. Each such
applicant shall be considered eligible to assume the rights and obligations
of an IDEM Membership Interest according to the procedures and standards
that apply to full and associate members, as set forth in the Rules and
Regulations.
(H) Each holder of a IDEM Membership Interest shall be subject to all Rules and
Regulations of the Association including all specific duties and
obligations imposed on such holders by the Rules and Regulations, as well
as those duties and obligations imposed upon members or other approved
persons under the Rules and Regulations; provided however, the Board may
exempt holders of IDEM Membership Interests from any such duty or
obligation which is incompatible with, or in conflict An eligible business
organizationith or unrelated to the duties performed by them. All
references to "members" and "membership" in the Rules and Regulations shall
apply with equal force to holders of IDEM Membership Interest and IDEM
Membership Interests, respectively, unless superseded or specifically
negated by this Rule or by Rule 290.00 or Rule 294.00 or the Regulations
thereunder. (04/01/98)
293.00 COM Membership Interests - A COM Membership Interest is a personal
right, which shall entitle the holder thereof to trade as principal and broker
for others in all contracts listed in the COM pursuant to Regulation 290.04. In
addition, the holder of a COM Membership Interest may communicate from the Floor
of the Exchange with persons not on the Floor of the Exchange in the same manner
as may full members, but only with respect to options contracts traded in the
COM. An eligible business organization may own a COM Membership Interest on
behalf of an individual nominee who is a full-time employee of the eligible
business organization, provided that the Membership Committee determines that
such COM Membership Interest is needed by the eligible business organization to
carry on its business at the Association and that all rights and obligations of
the COM Membership Interest shall remain the exclusive responsibility of the
individual nominee. An eligible business organization which owns a COM
Membership Interest may transfer it from one nominee to another individual
employee of the eligible business organization who has been duly approved for
membership subject to the provisions of Regulation 249.01(b).
(A) A COM Membership Interest shall not carry any voting rights on any matter
which is the subject of a ballot vote of the general membership.
(B) COM Membership Interest holders, annually, may elect a Committee consisting
of 11 COM Membership Interest holders, including a Chairman thereof. The
Chairman of this Committee shall be liaison to the Chairman of the Board.
(C) Upon the inception of options trading on the Exchange, and in the event of
full liquidation of the Association, the holder of a COM Membership
Interest shall share in the proceeds from dissolution in an amount equal to
one-half of one percent (.005) of a full member's share. No holder of a COM
Membership Interest shall have the right to share in any other distribution
made by the Association.
(D) No COM Membership Interest shall carry with it the attributes of membership
in the Association under the Fifth Article of the Certificate of
Incorporation of the Chicago Board Options Exchange.
(E) Each holder of a COM Membership Interest shall be responsible for paying
all dues, fees and assessments that are applicable to full memberships for
each COM Membership Interest held.
(F) Each COM Membership Interest may be sold or delegated according to the
Rules and Regulations applicable to the sale and delegation of full and
associate memberships. No COM Membership Interest may be registered on
behalf of an eligible business organization.
(G) Each person who seeks to purchase or be delegated a COM Membership Interest
shall make application according to the Rules and Regulations governing
applications for full and associate membership. Each such applicant shall
be considered eligible to assume the rights and obligations of a COM
Membership Interest according to the procedures and standards that apply to
full and associate members, as set forth in the Rules and Regulations.
Ch2 Membership Interests
------------------------
(H) Each holder of a COM Membership Interest shall be subject to all Rules and
Regulations of the Association including all specific duties imposed on
such holders by the Rules and Regulations, as well as those duties and
obligations imposed upon members or other approved persons under the Rules
and Regulations; provided however, the Board may exempt holders of COM
Membership Interests from any such duty or obligation which is incompatible
with, or in conflict with or unrelated to the duties performed by them. All
references to "members" and "membership" in the Rules and Regulations shall
apply with equal force to holders of COM Membership Interest and COM
Membership Interests, respectively, unless superseded or specifically
negated by this Rule or by Rule 290.00 or Rule 294.00 or the Regulations
thereunder.
(I) Upon the effective date of any termination of commodity options trading by
the Commodity Futures Trading Commission, all rights and privileges
specified in this Rule shall automatically expire and become null and void.
(04/01/98)
293.01 COM Membership Rights - Holders of COM Membership Interests shall be
permitted to transmit orders verbally, by hand signals, or in writing to brokers
in the underlying Treasury Bond futures, Long-Term Municipal Bond Index futures,
Short-Term Treasury Note futures, Medium-Term Treasury Note futures or in Long-
Term Treasury Note futures from the Treasury Bond options trading pit provided
that such orders are for hedge purposes only. (09/01/97)
293.02 AM and COM Membership Rights - Holders of Associate Memberships and COM
Membership Interests shall be permitted to transmit orders verbally, by hand
signals, or in writing to brokers in the underlying Soybean futures from the
Soybean Options trading pit provided that such orders are for hedge purposes
only. (08/01/94)
293.03 AM and COM Membership Rights - Holders of Associate Memberships and COM
Membership Interests shall be permitted to transmit orders verbally, by hand
signals, or in writing to brokers in the underlying Corn futures from the Corn
Options trading pit provided that such orders are for hedge purposes only.
(08/01/94)
293.05 COM Membership Rights - Holders of COM Membership Interests shall be
permitted to transmit orders verbally, by hand signals, or in writing to brokers
in the underlying Long-Term Treasury Note futures, Long-Term Municipal Bond
Index futures, Medium-Term Treasury Note futures, Short-Term Treasury Note
futures or in U.S. Treasury Bond futures from the Long-Term Treasury Note
Options trading pit provided that such orders are for hedge purposes only.
(09/01/97)
293.06 COM Membership Rights - Holders of COM Membership Interests shall be
permitted to transmit orders verbally, by hand signals, or in writing to brokers
in the underlying Long-Term Municipal Bond Index futures, Long-Term Treasury
Note futures, Medium-Term Treasury Note futures, Short-Term Treasury Note
futures or in U.S. Treasury Bond futures from the Long-Term Municipal Bond Index
Options trading pit provided that such orders are for hedge purposes only.
(09/01/97)
293.07 AM and COM Membership Rights - Holders of Associate Memberships and COM
Membership Interests shall be permitted to transmit orders verbally, by hand
signals, or in writing to brokers in the underlying Wheat futures from the Wheat
Options trading pit provided that such orders are for hedge purposes only.
(08/01/94)
293.08 AM and COM Membership Rights - Holders of Associate Memberships and COM
Membership Interests shall be permitted to transmit orders verbally, by hand
signals, or in writing to brokers in the underlying Soybean Meal futures from
the Soybean Meal Options trading pit provided that such orders are for hedge
purposes only. (08/01/94)
293.09 AM and COM Membership Rights - Holders of Associate Memberships and COM
Membership Interests shall be permitted to transmit orders verbally, by hand
signals, or in writing to brokers in the underlying Soybean Oil futures from the
Soybean Oil Options trading pit provided that such orders are for hedge purposes
only. (08/01/94)
Ch2 Membership Interests
------------------------
293.10 COM Membership Rights - Holders of COM Membership Interests shall be
permitted to transmit orders verbally, by hand signals, or in writing to brokers
in the underlying Short-Term Treasury Note futures, Medium-Term Treasury Note
futures, Long-Term Treasury Note futures, Long-Term Municipal Bond Index futures
or in U.S. Treasury Bond futures from the Short-Term Treasury Note Options
trading pit provided that such orders are for hedge purposes only. (09/01/97)
293.12 IDEM Membership Rights - Holders of IDEM Membership Interests shall be
permitted to transmit orders verbally, by hand signals or in writing to brokers
in U.S. Treasury Bond futures, Long- Term Treasury Note futures, Short-Term
Treasury Note futures, or Medium-Term Treasury Note futures from the Municipal
Bond Index futures pit, provided that such orders are for hedge purposes only.
(08/01/94)
293.14 AM and COM Membership Rights - Holders of Associate Memberships and COM
Membership Interests shall be permitted to transmit orders verbally, by hand
signals, or in writing to brokers in the underlying Oat futures from the Oat
Options trading pit provided that such orders are for hedge purposes only.
(08/01/94)
293.15 COM Membership Rights - Holders of COM Membership Interests shall be
permitted to transmit orders verbally, by hand signals, or in writing to brokers
in the underlying Medium-Term Treasury Note futures, Short-Term Treasury Note
futures, Long-Term Municipal Bond Index futures, Long-Term Treasury Note futures
or in U.S. Treasury Bond futures from the Medium-Term Treasury Note Options
trading pit provided that such orders are for hedge purposes only. (09/01/97)
293.16 IDEM Membership Rights - Holders of IDEM Membership Interests shall be
permitted to transmit orders verbally., by hand signals, in writing, or by any
other means deemed acceptable by the Board to brokers in options on CBOT(R) Dow
Jones Industrial AverageSM Index futures, from the CBOT(R) Dow Jones Industrial
AverageSM Index futures trading pit, provided that such orders are for hedge
purposes only. (11/01/97)
293.17 COM Membership Rights - Holders of COM Membership Interests shall be
permitted to transmit orders verbally, by hand signals, in writing, or by any
other means deemed acceptable by the Board to brokers in CBOT(R) Dow Jones
Industrial AverageSM Index futures, from the CBOT(R) Dow Jones Industrial
AverageSM Index options trading pit, provided that such orders are for hedge
purposes only. (11/01/97)
Ch2 Membership Interests
------------------------
Transfer Restrictions on GIM Memberships / One-Half Associate Memberships-At the
Effective Time, each GIM Membership and one-half Associate Membership shall be
subject to the restrictions, conditions and limitations set forth below.
(1) Non-Transferred GIM Memberships. Except as otherwise provided
below, a holder of a GIM Membership that has not been sold or
transferred prior to the Effective Time ("Non-Transferred GIM
Memberships") may continue as a GIM Membership holder following
the Effective Time with all the privileges and obligations such
Membership entails. However, in the event that any
Non-Transferred GIM Membership is sold or transferred after the
Effective Time, such Non-Transferred GIM Membership shall be
treated as a Transferred GIM Membership (as defined in clause (2)
below). This limitation shall not apply when (x) the transferor
is the estate of a deceased Non-Transferred GIM Membership holder
and the transferee is the decedent's spouse and (y) the
Non-Transferred GIM Membership has not already been transferred
pursuant to this sentence.
Furthermore, a member firm may assign any GIM membership that it
owns to two consecutive nominees following the nominee who was
assigned such Membership as of January 26, 1986, and still retain
the status of such membership as a Non-Transferred GIM
Membership.
(2) Transferred GIM Memberships/One-Half Associate Memberships.
One-half Associate Memberships and Non-Transferred GIM
memberships that have been sold or transferred after the
Effective Time in a manner other than as permitted in clause (1)
above (collectively, "Transferred GIM Memberships") shall not be
permitted to exercise the trading rights and privileges
associated with the GIM Memberships.
None of the foregoing shall preclude the holders of Transferred GIM Memberships
or Non-Transferred GIM Memberships from exercising their right to convert their
GIM Membership into an one-half Associate Membership and to exchange two
one-half Associate Memberships in exchange for an Associate Membership in
accordance with the terms of Article IV D.3 of the Certificate of Incorporation.
Ch2 Membership Interests
------------------------
Non-Transferred GIM Membership holder and the transferee is the
decedent's spouse and (y) the Non-Transferred GIM Membership has
not already been transferred pursuant to this sentence.
(2) Transferred GIM Memberships/One-Half Associate Memberships. One-
half Associate Memberships and Non-Transferred GIM memberships that
have been sold or transferred after the Effective Time in a manner
other than as permitted in clause (1) above below (collectively,
"Transferred GIM Memberships") shall not be permitted to exercise
the trading rights and privileges associated with the GIM
Memberships; provided that Transferred GIM Memberships shall retain
the right to be converted into a one-half Associate Memberships,
but shall have no further rights or privileges associated with the
GIM Membership. Except as set forth below, Transferred GIM
Memberships shall carry no privileges of a Membership, including
but not limited to trading and voting privileges.
None of the foregoing shall preclude the holders of Transferred GIM
Memberships or Non-Transferred GIM Memberships from exercising their right to
convert their GIM Membership into an one-half Associate Membership and to redeem
two one-half Associate Memberships in exchange for an Associate Membership.
Ch2 Membership Interests
------------------------
Interpretation - The Board of Directors adopted the following on April 17, 1990
as a formal rule interpretation which confirms established Exchange practice:
"A person shall achieve Full Membership status (i.e. - Full Membership
voting rights and trading privileges) only through the purchase of a Full
Membership.
The foregoing shall not affect the existing Exchange provisions for the
delegation, member firm transfer, or intra-family transfer of Full Memberships."
(08/01/94)
[Enlarge/Download Table]
====================================================================================================================================
Chapter 3
Exchange Floor Operations and Procedures
====================================================================================================================================
Ch3 Exchange Halls.............................................................................................
300.00 Exchange Halls....................................................................................
301.00 Admission to the Floor............................................................................
301.01 Non-Members.......................................................................................
301.02 Guest Badges......................................................................................
301.03 Guests............................................................................................
301.04 Press.............................................................................................
301.05 Floor Clerks......................................................................................
301.05 Floor Clerks......................................................................................
301.07 Floor Clerk-Special Badges........................................................................
301.08 Trainee Non-Members...............................................................................
301.10 Twenty-Five Year Member...........................................................................
301.11 AP................................................................................................
301.12 Membership Floor Access Badges....................................................................
305.00 Exchange Floor Fines..............................................................................
310.00 Time and Place for Trading........................................................................
310.01 Access to Trading Pit.............................................................................
311.00 Hours for Trading.................................................................................
311.00A Hours for Trading.................................................................................
312.01 Holidays..........................................................................................
313.00 Sundays or Holidays...............................................................................
Ch3 Market Quotations..........................................................................................
320.02 Wire and Other Connections........................................................................
320.03 Decisions of Exchange.............................................................................
320.04 Consent Required for Wires........................................................................
320.05 Registration with Exchange........................................................................
320.06 Notice of Discontinuance of Communications........................................................
320.07A Telephones........................................................................................
320.08 Conduct of Private Offices........................................................................
320.09 Telephone Wires and Television....................................................................
320.12 Radio Broadcasting................................................................................
320.13 Commodity and Commodity Option Quotations.........................................................
320.14 Transactions Made at other than Current Market....................................................
320.15 Market Quotations.................................................................................
320.16 Fast Quotations...................................................................................
320.17 Authority of Pit Committees over Quotation Changes and Insertions.................................
320.17B Authority of Pit Committees over Quotation Changes and Insertions.................................
320.18 Authority of the Market Report Department and the Regulatory Compliance Committee over Quotation
Changes and Insertions............................................................................
320.19 Opening and Closing Orders........................................................................
321.00 Price Limits......................................................................................
Ch3 Market Information.........................................................................................
325.02 Foreign Crop Reports..............................................................................
Ch3 Floor Practices............................................................................................
330.00 Floor Brokers.....................................................................................
330.00A Brokers and Clearing Members......................................................................
330.01 Floor Broker and Floor Trader Registration........................................................
330.02 Maintenance of Floor Broker and Floor Trader Registration.........................................
330.03 Broker Associations...............................................................................
330.04 Registration of Members Trading in U.S. Treasury Bond Futures.....................................
[Enlarge/Download Table]
331.01 Price of Execution Binding........................................................................
331.01A Acceptable Orders.................................................................................
331.02 Acceptable Orders.................................................................................
331.03 All-Or-None Transactions..........................................................................
331.04 Execution of Simultaneous Buy and Sell Orders for Different Account Owners........................
331.05 Block Trade Transactions..........................................................................
332.00 Orders Must Be Executed in The Public Market......................................................
332.01 Open Market Execution Requirement.................................................................
332.01A Bidding and Offering Practices....................................................................
332.01B Conformation with Section 1.39 of The Commodity Exchange Act......................................
332.02 Trade Data........................................................................................
332.03 Lost Orders.......................................................................................
332.04 Records of Floor Traders..........................................................................
332.041 Accountability of Trading Cards...................................................................
332.05 Card Collection...................................................................................
332.06 Records of Proprietary Orders.....................................................................
332.07 Accountability of Trading Documents...............................................................
332.08 CTR Recordkeeping and Data Entry Requirements.....................................................
332.09 Member Trading for Another Member on the Trading Floor............................................
332.10 Prohibition of Trading or Placing Verbal or Flashed Orders from the Clerks Step in Financial
Futures and Options Contracts.....................................................................
332.11 Changers..........................................................................................
333.00 Trades of Non-Clearing Members....................................................................
333.01 Error Accounts....................................................................................
333.03 Funds in Trading Accounts Carried by Clearing Members.............................................
334.00 Trades of Non-Clearing Members....................................................................
335.00 Bids and Offers in Commodities Subject to First Acceptance........................................
336.00 Bids and Offers in Commodities Subject to Partial Acceptance......................................
336.01 Guaranteeing Terms of Execution...................................................................
337.01 Orders Involving Cancellations Accepted on a 'Not Held' Basis.....................................
350.00 Trade Checking Penalties..........................................................................
350.01 Failure to Check Trades...........................................................................
350.02 Responsibility For Customer Orders................................................................
350.03 Identification of Floor Trading Personnel and Floor Traders.......................................
350.04 Errors and Mishandling of Orders..................................................................
350.05 Floor Practices...................................................................................
350.06 Give-Ups..........................................................................................
350.07 Checking and Recording Trades.....................................................................
350.08 Notification of Unchecked Trades..................................................................
350.10 Exemption for Certain Joint Venture Products......................................................
350.11 Resolution of Outtrades...........................................................................
352.01 Spreading Transactions............................................................................
352.01A Unacceptable Spread Orders........................................................................
352.02 Joint Venture Intermarket and Inter-Regulatory Spreads............................................
360.01 Pit Supervisory and Enforcement Authority of the Respective Pit Committees........................
================================================================================
Chapter 3
Exchange Floor Operations and Procedures
================================================================================
Ch3 Exchange Halls
300.00 Exchange Halls - The Board shall provide Exchange Halls which shall be
open for trading during such hours as the Board of Directors shall designate.
For the purpose of Exchange rules, Exchange Halls may be deemed to include an
approved automated order entry facility. Complete jurisdiction over the Exchange
Halls, all parts of the building and any automated systems of the Association is
vested in the Board. 69 (08/01/94)
301.00 Admission to the Floor - No one but a member shall make any
transaction or execute orders in securities or commodities traded in or upon the
Floor of the Exchange. No one but a member shall be admitted to the Floor of the
Exchange, except as provided by Regulations adopted by the Regulatory Compliance
Committee. 259 (08/01/94)
301.01 Non-Members - No non-member shall be admitted to the Floor of the
Exchange except as provided in this Chapter 3. Persons not wearing a valid badge
shall not be admitted to the floor of the Exchange. 1370 (08/01/94)
301.02 Guest Badges - The Safety and Security Department may, upon
application of a member, issue a badge to a guest of the Exchange or, upon its
own initiative, issue a badge to a guest permitting access to the floor of the
Exchange. 1371 (08/01/94)
301.03 Guests - All guests of a member shall be accompanied by a member while
on the Exchange Floor and shall obey all Rules and Regulations respecting floor
conduct established herein for members. Members shall be responsible for all
violations of the Chicago Board of Trade Rules and Regulations committed by
their guests and for resulting fines. 1372 (08/01/94)
301.04 Press - Annual courtesy cards to the Press, permitting admission to
the Exchange Hall, may be issued and recalled by the written authorization of
the Communications Department. 1373 (08/01/94)
301.05 Floor Clerks - With the prior approval of the Floor Conduct Committee,
or designated Exchange staff pursuant to delegated authority, a non-member
employee of a member or member firm registered under Rule 230.00 may be admitted
to the Exchange Floor upon the payment by the employer of such periodic fees as
may be established by the Finance Committee. No floor clerk shall be permitted
to enter the Exchange Floor without a badge. Floor clerks may perform only such
services and other clerical, telephone and informational duties as may be
specifically permitted by the Regulatory Compliance Committee. (See Appendix
3B.)
Floor clerks are strictly prohibited from soliciting orders. Floor clerks may
not be registered as an Associated Person except as provided in Regulation
301.07. They may communicate orders to the pit from their position or
communications instrument by use of hand signals or verbal notification. When
communicating orders in either fashion, a record must immediately be made and
time-stamped in accordance with Regulation 465.01.
Floor clerks are not permitted to run on the Exchange Floor or in the corridors
of the building and shall at all times maintain decorum. The Floor Conduct
Committee may recall floor clerk badges for cause and may exclude from the Floor
any non-member employee of any member.
The responsibility of conduct and appearance of employees on the Exchange Floor
shall be that of the member employer.
Notwithstanding Rule 420.00, nonmembers holding a Floor Clerk badge or a Broker
Assistant badge shall not have any interest whatsoever in a commodity futures or
commodity options account which contains positions in contracts traded on the
Exchange or the MidAmerica Commodity Exchange. No member or member firm may
jointly hold such an account with a nonmember Floor Clerk or Broker Assistant,
and no member firm may accept or carry any such account in which a nonmember
Floor
Clerk or Broker Assistant holds any interest. Provided, however, that the
following shall apply to any person who has Associate Membership, Membership
Interest, or permit holder status on the Exchange or Membership status on the
MidAmerica Commodity Exchange and who also holds a Floor Clerk or Broker
Assistant badge:
Such person shall not trade for, or carry in his account or an account in which
he has any interest, any positions in contracts traded on the Exchange or the
MidAmerica Commodity Exchange except for those contracts which he is entitled to
trade as principal or broker for others by virtue of his Membership, Membership
Interest or permit holder status as referenced above. However, a Member,
Membership Interest Holder or permit holder who holds a Broker Assistant badge,
and who stands in an area designated for broker assistants outside of a
financial futures or financial options pit, may carry in his account or an
account in which he has an interest, any positions in contracts traded on the
Exchange or the MidAmerica Commodity Exchange, provided that the orders for such
positions are placed through the normal customer order flow process.
These provisions shall not be interpreted to prohibit an individual from being
employed as a Floor Clerk or a Broker Assistant simply because another family
member is a member of the Exchange who trades for his or her own personal
account, whether such individual is employed by the family member or by another
member. However, Floor Clerks and Brokers Assistrants are strictly prohibited
from initiating trades or advising on the initiation of trades for a family
member's account or any other account.
Violations of this Regulation shall be cause for suspension or revocation of a
person's floor access privileges and for suspension or expulsion of his
employer, or such other action as the Floor Conduct Committee may deem
appropriate, in accordance with the applicable procedures set forth in Chapter
5. In the event a floor clerk is registered as an Associated Person in violation
of this Regulation, after notice and for good cause shown, the Floor Conduct
Committee may cause such floor clerk's floor access keycard to be immediately
deactivated and take whatever other disciplinary action it deems necessary
consistent with this Regulation. Upon termination of the Associated Person
status, a floor clerk's keycard may be reactivated.
A non-clearing member holding a Floor Clerk or Broker Assistant badge shall be
required to notify his Primary Clearing Member, as defined in Rule 333.00, of
the name, address and immediate supervisor of the member or member firm by whom
he is employed as a Floor Clerk or Broker Assistant. Upon a Primary Clearing
Member's revocation of clearing authorization in accordance with Rule 333.00(c),
the Primary Clearing Member immediately shall give written notice to the member
or member firm who employs a non-clearing member as a Floor Clerk or Broker
Assistant that the non-clearing member's clearing authorization has been
revoked. A non-clearing member holding a Floor Clerk or Broker Assistant badge
shall be denied floor access privileges upon the revocation of clearing
authorization by his Primary Clearing Member. The floor access privileges of a
non-clearing member who holds a Floor Clerk or Broker Assistant badge may be
reinstated upon the filing of a release with the Member Services Department by
the non-clearing member's Primary Clearing Member in accordance with Rule
333.00(d). (04/01/97)
301.06 Floor Access by Annual Election Candidates and Non-Member (Public)
Directors -
The following are permitted physical access to the Floor of the Exchange:
a) Candidates in the current year's Annual Election who:
- Have been nominated either by the Nominating Committee or by petition
pursuant to Rule 102.00; and
- Do not already have Exchange Floor access by virtue of a membership
privilege.
b) Non-member (public) Directors on the Association's Board.
Individuals who are admitted to the Exchange Floor pursuant to this regulation
shall not be authorized thereby to execute trades or to perform any other
functions which are reserved to members or clerks on the Exchange Floor.
(06/01/00)
301.07 Floor Clerk-Special Badges - The Floor Conduct Committee, or
designated Exchange staff pursuant to delegated authority, may issue special
badges authorizing non-member employees of
Ch3 Exchange Halls
------------------
members or member firms to perform the duties of a "Floor Clerk" as defined in
Regulation 301.05. Such authorization shall be for a specific period not to
exceed two weeks. The Member Firm Staff Services Department shall maintain
proper records of these authorizations.
When such non-member employees are Associated Persons, such authorization may be
granted for a specific period not to exceed three business days but only if the
employer demonstrates to the satisfaction of the Floor Conduct Committee, or
designated staff pursuant to delegated authority, that it temporarily lacks
enough available Floor Clerks to meet its business needs. No particular employee
can be so authorized for more than three days in any calendar month. Applicants
for membership may be issued special badges by the Exchange Services Department
for a period of ten business days. (08/01/94)
301.08 Trainee Non-Members - The Floor Conduct Committee, or designated
Exchange staff pursuant to delegated authority, shall, upon written request
signed by a member and directed to the Secretary, issue badges to trainee non-
member employees of members or member firms, authorizing admission of such
trainees to the Exchange Hall. Such authorization shall be limited to a thirty-
day period as to any trainee and no member or member firm shall be allowed to
have more than one trainee on the Exchange Floor at any one time. Trainees may
perform the duties of a "Floor Clerk" as defined in Regulation 301.05. The
member or member firm which is the employer of the trainee shall be responsible
for his conduct while he is on the Floor. The Member Firm Staff Services
Department shall maintain proper records of these authorizations. No member or
member firm shall use the provisions of this Regulation to avoid the purchase of
a membership. 1377 (08/01/94)
301.10 Twenty-Five Year Member - When a member who has been a member for
twenty-five years or more transfers his Membership privilege or delegates the
rights and privileges of his Membership under Rule 221.00, said member shall be
issued an Honorary Membership Badge by the Secretary's Office which will entitle
the former member to access to the Trading Floor (with the exception of the
Trading Pits), and to remain on the Association's mailing lists. 1379 (11/01/94)
301.11 AP - With the prior approval of the Floor Conduct Committee, or
designated Exchange staff pursuant to delegated authority, an Associated Person
and an applicant for membership may be admitted to the Floor of the Exchange for
the limited purpose of observing various Floor activities of the members and
other privileged non-members who have been allowed access to the Floor. Such
admittance shall be limited to a period of two weeks (ten business days). 1380
(08/01/94)
301.12 Membership Floor Access Badges - Any member, membership interest
holder or delegate whose floor access trading privileges have been revoked,
suspended or lawfully discontinued for any reason must return the floor access
membership badge and access card to the Member Services and Member Firm Staff
Services Department within 30 days from the termination of floor access
privileges. Any failure to comply with this Regulation will be referred to the
Floor Conduct Committee.
Willful possession of a membership floor access badge or access cards by anyone
not then entitled to the privileges of that membership shall be an act
detrimental to the Association. (09/01/00)
305.00 Exchange Floor Fines - (See 519.00) and (See 520.00A) (08/01/94)
310.00 Time and Place for Trading - Dealings upon the Exchange shall be limited
to the hours during which the Exchange is open for the transaction of business,
and no member shall make any transaction in securities with another member
except at the post designated for the particular security in which the
transaction is made and no member shall make any transaction for future delivery
of a commodity except in the pit assigned to trading in such commodity, except
as provided in Regulations 331.05, 444.01, 444.03, and Chapter 9B. No member
shall make, in the rooms of the Association, a transaction with a non-member, in
any commodity or in any security admitted to dealing on the Exchange; but this
Regulation shall not apply to transactions with an employee of the Association
or of the Clearing Services Provider engaged in carrying out arrangements
approved by the Regulatory Compliance Committee to facilitate the borrowing and
lending of money. 258 (01/01/04)
310.01 Access to Trading Pit - Trading in any commodity or option thereon
shall be limited to an area specified by the Exchange Services Department. Non-
members shall not be authorized to enter the trading areas except as otherwise
provided in the Rules and Regulations. (08/01/94)
Ch3 Exchange Halls
------------------
311.00 Hours for Trading - (See 1007.00) (08/01/94)
311.00A Hours for Trading - Your Rules and Floor Committees have given careful
consideration to reports of trading outside of the hours prescribed and
recommend enforcement of Rule 1007.00. We feel that disciplinary action is
warranted on any infractions.
Strict observance of the above requires that after the closing bell no orders
should be transmitted to the Floor, nor should any orders be accepted by brokers
for filling, nor should any public wire orders be sent to the pit,-all such
being reported back to senders 'received too late, market closed.'
All members should caution clients who want orders filled on or near the close
to enter such orders to be filled 'about the close,' so that the broker may
handle them properly. On the last trading day of a current month it is essential
that all orders to close contracts reach the traders in sufficient time to
permit filling without congestion.
Members who trade the options underlying the Soybean Meal, Soybean Oil, Oat and
Silver Futures markets may enter futures orders during the respective futures
markets' "closing call rotations" providing that the futures orders are entered
for the purpose of hedging an option position. 13R (04/01/99)
312.01 Holidays - The following days are declared to be holidays, to wit: New
Year's Day (January 1), Martin Luther King, Jr. Day (3rd Monday in January),
Washington's Birthday (3rd Monday in February), Good Friday, Memorial Day (last
Monday in May), Independence Day (July 4), Labor Day (1st Monday in September),
Thanksgiving Day (4th Thursday in November) and Christmas Day (December 25).
When any such holidays fall on Sunday, the Monday next following shall be
considered such holiday. When any such holidays fall on Saturday, the Friday
immediately preceding shall be considered such holiday. 1937 (12/01/99)
313.00 Sundays or Holidays - When a contract in commodities matures on
Sunday, or on a holiday, performance thereof shall be made on the preceding
business day. 256 (08/01/94)
Ch3 Market Quotations
320.02 Wire and Other Connections - The privilege of telephonic or other wire
connection between the office of a member and the Exchange shall not be enjoyed
as a right of the member, but shall rest in the discretion of the Exchange.
The Exchange, in its discretion may grant or withhold such privilege from a
member, and, in its discretion, without being obliged to assign any reason or
cause for its action, may disconnect or cause to be disconnected any apparatus
or means for such communication or may deprive any member of the privilege of
using any public telephone or means of communication installed by the Exchange
for the use of members. This Regulation shall not apply to wire or other
connections relating to the Exchange's e-cbot system. 1031 (09/01/00)
320.03 Decisions of Exchange - Every decision of the Exchange, whereby a
member is deprived of any such privilege, shall be immediately posted upon the
bulletin board in the Exchange, and every member shall be deemed to have notice
thereof.
No member shall, after such notice shall have been posted directly or indirectly
furnish to the member named therein any facilities for communication between the
office of the member so named and the Floor of the Exchange or between the
office of the member so named and the office of any other member. 1032
(10/01/94)
320.04 Consent Required for Wires - No member shall establish or maintain
wire connection of any description whatsoever or permit wireless communication
between his office and the office of any nonmember corporation, firm, or
individual transacting a banking or brokerage business, without having first
obtained the approval of the Exchange therefor.
The applications for such connections or means of communication shall be in a
form prescribed by the Exchange.
The use of public telephone or telegraph service in such manner as to amount to
private connection shall be deemed to be within this Regulation. 1033
(08/01/94)
320.05 Registration with Exchange - Every such means of communication shall
be registered with the Exchange, together with the telegraphic, telephonic, or
wireless calls used in connection therewith; the Exchange may make such
requirements governing said matters as it shall deem necessary or desirable.
1034 (08/01/94)
320.06 Notice of Discontinuance of Communications - Notice of the
discontinuance of any such means of communication shall be promptly given to the
Exchange; and the Exchange shall have power, at any time in its discretion, to
order any such means of communication discontinued.
No such communication shall be other than by means of a wire or wireless system
approved by the Exchange. 1035 (08/01/94)
320.07A Telephones - Exchange policy permits direct telephone communications
to the Trading Floor from the members or member firms to the table or booth of a
clearing member on the Trading Floor. 34R (08/01/94)
320.08 Conduct of Private Offices - The Exchange is empowered to examine into
the conduct of all private offices or places of business receiving the
continuous market quotations of the Association, and, in such places where the
Exchange shall deem the continuance of such service detrimental to the best
interests of this Association, the Exchange shall forthwith order a
discontinuance of the quotations and shall report the facts immediately to the
Finance Committee, which shall take whatever further action is necessary to
uphold the good name and dignity of this Association. 1040 (08/01/94)
320.09 Telephone Wires and Television - No member of this Association shall,
by messenger, signal, telephone, telegraph, or any other means whatsoever,
convey or transmit continuously the market quotations from the Floor of the
Exchange to any person, firm, or corporation located off the Floor of the
Exchange, except with the permission and pursuant to the requirements of the
Exchange. This does not prohibit ordinary conversation where dissemination of
quotations is not contemplated.
Ch3 Market Quotations
---------------------
Such permission for telephone wires, if granted, shall be subject to charges as
prescribed by Regulation 320.13. Such permission for closed-circuit television,
if granted, shall be subject to charges as may be prescribed by the Finance
Committee. 1041 (08/01/94)
320.12 Radio Broadcasting -
(a) No member, firm, corporation or employee thereof shall transmit, by any kind
of radio service, any market quotations, either securities, futures, cash
grain on spot or to arrive, or any market information or gossip without the
approval of the Exchange.
(b) No quotations except those prevailing at the opening of the market; and at
each thirty minutes thereafter; and at the close of the market, may be used
for broadcasting.
(c) Radio broadcasting stations must name the periods at which the quotations
prevailed and designate them as furnished by the Board of Trade of the City
of Chicago.
(d) No member, firm, corporation, or employee thereof shall in any manner claim
or be given credit for furnishing information for radio service, except as
provided in section (c) of this Regulation.
(e) Upon application, the Exchange may grant permission to individuals, firms,
corporations, or employees thereof, to furnish the quotations of this
Association to radio stations. The name of the individual, firm,
corporation, or employees thereof, may be mentioned at the beginning and at
the end of each period at which quotations are broadcast. In case there is
more than one request to furnish this service at any location, the Exchange
may divide the time equally upon a yearly basis. 1044 (08/01/94)
320.13 Commodity and Commodity Option Quotations - The transmission by
private wire or other means of market quotations of any commodity or commodity
option made on the Exchange shall be subject to the approval and control of the
Exchange. Such quotations shall include all bids, asks, and market prices of any
commodity or commodity option traded on the Exchange each business day between
the opening of trading in such commodity or option and until thirty minutes
after the close of such trading. Such quotations constitute valuable property of
the Board of Trade which are not within the public domain. The transmission and
receipt of such quotations shall be subject to such conditions, including the
payment of applicable fees, as the Exchange shall impose. Failure to comply with
such conditions shall subject any member receiving or distributing such
quotations to disciplinary action including suspension from the Association.
(08/01/94)
320.14 Transactions Made at other than Current Market - Transactions made at
a price above that at which the same futures contract or options series is
offered, or below that at which such futures or options contract is bid, are not
made at the current market price for such futures or options contracts and shall
be disallowed by the action of any two members of the relevant Pit Committee. If
so disallowed, such transactions shall not be reported or recorded by the
Exchange or, if already reported, shall be cancelled. A determination on whether
a price(s) should be disallowed must be made within 10 minutes after the Pit
Committee has been notified that the price has been called into question,
otherwise the quote(s) in question must stand. A determination pursuant to this
Regulation to disallow a transaction shall be final. (05/01/97)
320.15 Market Quotations - The reporter in each pit shall be the judge of
what constitutes a proper range of quotations to be sent out, subject to the
supervision of the Pit Committee in the respective pits.
Quotations sent out must be based on transactions made in the open market. The
term "open market" means a bid or an offer openly and audibly made by a public
outcry and in such a manner as to be open to all members in the pit at the time.
It is not permissible for members to reform a trade by changing the price at
which orders have been filled, nor to report as filled orders that have not been
filled. Any quotations based on a transaction made in the open market, already
distributed or sent out over the wire, shall not be cancelled except as provided
by Regulations 320.17, 320.18 and 320.14. (08/01/94)
320.16 Fast Quotations - Whenever price fluctuations in the pit(s) are rapid
and the volume of business is large, the pit reporter, upon authorization of the
Pit Committee Chairman or his designated representative from the Pit Committee,
shall cause the "FAST" symbol to be used in conjunction with
Ch3 Market Quotations
---------------------
all Exchange quotation displays and records. (The "FAST" symbol shall be
abbreviated "F" when used on Exchange quotation and display devices.) The Pit
Committee shall determine at what time "FAST" market conditions began and
terminated. When a market is designated "FAST", the Pit Reporter shall endeavor
to activate a "FAST" market indicator clearly visible to the entire trading
floor.
All prices in the range between those quoted immediately prior to and
immediately following the "FAST" market designation are considered officially
quoted whether or not such prices actually appear as trades on Exchange
quotation displays and records. There shall be no discontinuances.
The consequence of "FAST" market conditions is that a penetrated limit order may
not be able to be executed at the specified limit price.
In the event that a dispute arises concerning the execution of an order, the
fact that a market was designated "FAST" shall constitute evidence that market
conditions were rapid and volatile. A "FAST" designation does not nullify or
reduce the obligations of the floor broker to execute orders with due diligence
according to the terms of the order. Trading activities which violate the Rules
and Regulations of the Exchange remain violations under "FAST" market
conditions. (08/01/94)
320.17 Authority of Pit Committees over Quotation Changes and Insertions -
(a) The Pit Committee Chairmen, Vice Chairmen or their Pit Committee designees
may change an opening range only within 30 minutes after the opening of the
commodity.
(b) The Pit Committee Chairmen, Vice Chairmen or their Pit Committee designees
may change a closing range only within 15 minutes after the closing of the
commodity.
(c) The Pit Committee Chairmen, Vice Chairmen or their Pit Committee designees
may authorize the insertion of a quotation which affects a high or low at
any time prior to 15 minutes after the closing of the commodity.
(d) The Pit Committee Chairmen, Vice Chairmen or their Pit Committee designees
may authorize any quotation change or insertion which does not affect an
open, high, low or close at any time prior to the opening of the commodity
on the next business day.
No Pit Committee member may authorize any quotation change, insertion or
cancellation, if such individual has a personal or financial interest in such
change, insertion or cancellation.
All quotation changes, insertions, or cancellations must be authorized by at
least two Pit Committee members. However, if there is only one Pit Committee
member who does not have a personal or financial interest in a change, insertion
or cancellation, that one Pit Committee member may authorize such change,
insertion or cancellation.
When a Pit Committee member is requested to authorize a quotation change,
insertion or cancellation, the relevant pit shall be notified of such request.
1037 (09/01/96)
320.17B Authority of Pit Committees over Quotation Changes and Insertions -
Futures Options (Puts and Calls) - In respect to Quotation Changes and
Insertions under Regulation 320.17, the Pit Committee may change a closing range
only within 30 minutes after the close of each Futures Options contract (Puts
and Calls) and may authorize the insertion of a quotation which affects a high
and low at any time prior to 30 minutes after the close of each Futures Options
contract (Puts and Calls). (08/01/94)
320.18 Authority of the Market Report Department and the Regulatory
Compliance Committee over Quotation Changes and Insertions -
(a) The Market Report Department may review and authorize any request for a
quotation change or insertion which was not reviewed by the Pit Committee or
which is not encompassed by Regulation 320.17.
Ch3 Market Quotations
---------------------
1038 (09/01/02)
320.19 Opening and Closing Orders - For open outcry Regular Trading Hours,
orders entered prior to or on the opening (or resumption) of the market, as
applicable and orders effected by such opening (or resumption) orders, as
applicable shall not be required to be executed at a specified price due to the
unique and rapid market conditions existing during an opening or a resumption.
Similarly, orders entered for execution on the close of the market and orders
effected by such closing orders shall not be required to be executed at a
specific price due to the unique and rapid market conditions existing during a
close.
If stop orders are elected within the opening or resumption range, floor brokers
who are unable to execute those orders within the opening or resumption range,
as applicable, while diligently acting in conformity with the rules and
regulations of the Association, shall not be held liable. Stop orders elected
during the opening (or resumption) range automatically become market orders and
should be executed at the prevailing market, which may or may not be within the
opening (or resumption) range. If stop orders are elected within the closing
range, floor brokers who are unable to execute such orders, while diligently
acting in conformity with the rules and regulations of the Association, shall
not be held liable. (09/01/98)
321.00 Price Limits - The Regulatory Compliance Committee at any time, upon
ten hours' notice by Regulation, may provide that there shall be no trading
during any day in any grain, provisions, or cottonseed oil for delivery in any
specified month at prices more than a fixed limit above or below the average
closing price of the preceding business day. 83 (C.R. 1008.01) (08/01/94)
Ch3 Market Information
325.02 Foreign Crop Reports - When a member, employing a crop reporter,
receives from the reporter a statement concerning foreign crop conditions to
which publicity is given, the member shall file immediately a verbatim copy of
the report in the office of the Secretary. 1802
(08/01/94)
Ch3 Floor Practices
330.00 Floor Brokers - A member, who executes orders for another member and who
is not a clearing member, must immediately give up the name of a clearing
member. A floor broker trading for a member shall be liable as principal for the
performance of the contract except that in the case of commodities his liability
shall terminate when the transaction is accepted by the principal. 200
(01/01/04)
330.00A Brokers and Clearing Members - Trades between clearing members must be
confirmed within one hour by depositing at the office of the Clearing Services
Provider a check slip or memorandum giving the name of the buyer and seller, the
commodity sold, the amount thereof, the delivery month, and the purchase price.
4R (01/01/04)
330.01 Floor Broker and Floor Trader Registration - No member may execute any
trade on the floor of the Exchange for any other person unless the member is
registered or has been granted a temporary license as a floor broker, nor may a
member execute any trades on the floor of the Exchange for his or her own
account unless the member is registered or has been granted a temporary license
as a floor trader, or has been granted a temporary license as a floor broker to
act as a floor trader, in accordance with Section 4f of the Commodity Exchange
Act and Commodity Futures Trading Commission Regulations 3.11 and 3.40, and such
temporary license or registration has not been terminated, revoked or withdrawn.
A floor broker or floor trader shall be prohibited from engaging in any
activities requiring registration, or from representing himself to be registered
or the representative or agent of any registrant, during the period of any
suspension of registration or membership privileges or the denial of floor
access. Willful failure to comply with this Regulation may be deemed an act
detrimental to the interest of the Association. (08/01/94)
330.02 Maintenance of Floor Broker and Floor Trader Registration - Each
member registered as a floor broker or floor trader must promptly submit to the
Exchange any changes in the information contained in such member's registration
application (Form 8-R) or any supplement thereto. All floor brokers and floor
traders must review their registration information every three years in
accordance with Commodity Futures Trading Commission ("CFTC") Regulation
3.11(d). Additionally, the Exchange shall periodically require such members to
confirm that their floor broker registration applications contain complete and
accurate information.
Requests for withdrawal of floor broker or floor trader registration must be
made on Form 8-W and filed with the National Futures Association and the
Association in accordance with CFTC Regulation 3.33.
All registered floor brokers and floor traders must comply with Appendix B to
Part 3 of the CFTC's Regulations - Statement of Acceptable Practices with
respect to Ethics Training. In this regard, all registered floor brokers and
floor traders shall become familiar with, and keep abreast of changes to, the
Rules and Regulations of the Exchange, rule interpretations issued by the
Exchange, and relevant provisions of the Commodity Exchange Act and CFTC
Regulations. (12/01/01)
330.03 Broker Associations - Two or more Exchange members with floor trading
privileges, of whom at least one is acting as a floor broker, shall be required
to register with the Exchange as a Broker Association, within ten days after
establishment of the Broker Association, if they: (1) engage in floor brokerage
activity on behalf of the same employer, (2) have an employer and employee
relationship which relates to floor brokerage activity, (3) share profits and
losses associated with their brokerage or trading activity, or (4) regularly
share a deck of orders.
The Broker Association shall file its registration statement in a form provided
by the Exchange. Such registration statement shall specifically disclose
whether the members of the broker association share commissions, profits, losses
or expenses associated with their brokerage or trading activity with each other
or with any other individual or entity. In addition, such registration
statement shall disclose whether or not the members of the broker association
have any other business relationships with one another, whether related or
unrelated to Exchange business. Members of the broker association shall be
required to provide information regarding such other business relationships,
including books and records relating to such businesses, upon the request of
OIA. Any registration information provided to the Exchange which becomes
deficient or inaccurate must be updated or corrected promptly.
A member of a Broker Association shall be prohibited from receiving or executing
an order unless the Broker Association is registered with the Exchange.
Ch3 Floor Practices
-------------------
Members of a broker association may not share profits or losses associated with
their personal trading activity by direct or indirect means.
No registered broker association or member thereof shall permit a non-member or
non-member firm to have any direct or indirect profit or ownership interest in a
registered broker association. Moreover, no registered broker association or
member thereof shall permit a member who is not involved in the pre-execution or
execution of customer orders to have any direct or indirect profit or ownership
interest in a registered broker association.
The Board may establish limits on the percentage of trading between a member of
a broker association and (1) other members of broker associations with which he
is affiliated; or (2) members of other broker associations which are positioned
contiguously to his broker association in the trading pit.
Any such limits established by the Board shall take account of liquidity and
such other conditions, from contract to contract, and shall only apply to the
most active month or months of any contract. Compliance shall be measured
separately for each full calendar month.
The Regulatory Compliance Committee may grant exceptions to the percentage
limits on intra-association or contiguous association trading in circumstances
where a broker association can demonstrate that compliance with the limits may
reduce liquidity or impede the creation of new business in the affected market.
(04/01/98)
330.04 Registration of Members Trading in U.S. Treasury Bond Futures - Each
Exchange member with floor trading privileges who customarily stands on the top
step of the U.S. Treasury Bond futures pit shall be required to register with
the Exchange, identifying his affiliation, location and occupation or duties.
Such individuals shall file their registration statements in a form provided by
the Exchange. Any registration information provided to the Exchange which
becomes deficient or inaccurate must be updated or corrected promptly.
(09/01/94)
331.01 Price of Execution Binding - The price at which a transaction for
commodities is executed on the Exchange shall be binding. A member shall not
guarantee the price of execution to any customer, but a floor broker's or
clearing firm's error in the handling of a customer order may be resolved by a
monetary adjustment or in accordance with Regulation 350.04. 1841 (03/01/04)
331.01a Acceptable Orders - Market orders to buy or sell, closing orders to
buy or sell, spread orders, straight limit orders to buy or sell, and straight
stop orders to buy or sell shall be permitted during the last day of trading in
an expiring future. Time orders, contingency orders of all kinds, market on
close intermonth spread orders involving an expiring future and cancellations
that reach the Trading Floor after 11:45 a.m. on the last day of trading in an
expiring future may involve extraordinary problems and hence will be accepted
solely at the risk of the customer. This Regulation shall only apply to open
outcry Regular Trading hours. 32R (09/01/98)
331.02 Acceptable Orders - The following orders are acceptable for execution
in this market.
(1). Market order to buy or sell - A market order is an order to buy or sell a
stated amount of commodity futures contracts at the best price obtainable.
(2). Closing orders to buy or sell - A closing order to buy or sell is a market
order which is to be executed at or as near the close as practicable or on
the closing call in a call market.
(3). Limit order to buy or sell - A limit order is an order to buy or sell a
stated amount of commodity futures contracts at a specified price, or at a
better price, if obtainable.
(4). Stop order to buy or sell - A stop order to buy becomes a market order when
the stop price is bid or a transaction in the commodity futures contracts
occurs at or above the stop price. A stop order to sell becomes a market
order when the stop price is offered or a transaction in the commodity
futures contract occurs at or below the stop price.
(5). Stop limit order to buy or sell (where the price of the limit is the same
as the stop price only) - A stop limit order to sell becomes a limit order
executable at the limit price or at a better price, if obtainable when a
transaction in the commodity futures contract is offered or occurs at or
below the stop price. A stop limit order to buy becomes a limit order
executable at the limit price or at a
Ch3 Floor Practices
-------------------
better price, if obtainable when a transaction in the commodity futures
contract is bid or occurs at or above the stop price.
(6). DRT ("Disregard Tape" or "Not Held") Order - An order giving the floor
broker complete discretion over price and time in execution of a trade,
including discretion to execute all, some or none of the order. It is
understood the floor broker accepts such an order solely at the risk of the
customer on a "not held" basis.
(7). All-Or-None order to buy or sell - An order to be executed only for its
entire quantity at a single price and with a size at or above a
predetermined threshold. Such orders must be executed in accordance with
Regulation 331.03.
Orders other than those listed above will be accepted solely at the broker's
discretion on a not held basis. This Regulation shall only apply to Regular and
Night trading hours. (07/01/00)
331.03 All-Or-None Transactions - Board of Directors shall determine the
minimum thresholds for and the commodities in which All-Or-None transactions
shall be permitted. The following provisions shall apply to All-Or-None
trading:
(a) A member may request an All-Or-None bid and/or offer for a specified
quantity at or in excess of the applicable minimum threshold
designated. The request shall be made during the hours of regular
trading in the appropriate trading area.
(b) A member may respond by quoting an All-Or-None bid or offer price. A
bid or offer in response to an All-Or-None request shall be made only
when it is the best bid or offer in response to such request, but such
price need not be in line with the bids and offers currently being
quoted in the regular market.
(c) A member shall not execute any orders by means of an All-Or-None
transaction unless the order includes specific instructions to execute
an All-Or-None transaction or the All-Or-None bid offer is the best
price available to satisfy the terms of the order.
(d) An All-or-None bid or offer may be accepted by one or more members
provided that the entire quantity of the All-or-None order is executed
at a single price and that each counterparty to the order accepts a
quantity at or in excess of the designated minimum counterparty
threshold. Each order executed opposite an All-or-None order must be
for a quantity that meets or exceeds the minimum counterparty
threshold. Separate orders may not be bunched to meet the minimum
counterparty threshold.
(e) The price at which an All-Or-None transaction is bid, offered or
executed will not elect conditional orders (e.g., limit orders, stop
orders, etc.) in the regular market or otherwise affect such orders.
(f) All-or-None transactions must be reported to the reporter in each pit
who shall designate the price quotes for All-Or-None transactions as
All-or-None price quotes.
(g) Under no circumstances shall All-or-None orders to buy and sell both
be executed in their entirety opposite each other.
(h) All-or-None transactions are permitted in the following contracts
subject to the listed minimum quantity threshold.
[Enlarge/Download Table]
------------------------------------------------------------------------------------------
Contract All-or-None Counterparty
Minimum Minimum
------------------------------------------------------------------------------------------
10-Year Interest Rate Swap futures 1,000 100
------------------------------------------------------------------------------------------
10-Year Interest Rate Swap/ 10-Year T-Note spread 7,500 250
------------------------------------------------------------------------------------------
10-Year Interest Rate Swap futures options 1,000 100
------------------------------------------------------------------------------------------
5-Year Interest Rate Swap futures 1,000 100
------------------------------------------------------------------------------------------
5-Year Interest Rate Swap/ 5-Year T-Note spread 1,000 100
------------------------------------------------------------------------------------------
5-Year Interest Rate Swap futures options 1,000 100
------------------------------------------------------------------------------------------
2-Year Treasury Note futures 200 50
------------------------------------------------------------------------------------------
10-Year Municipal Note Index futures 100 25
------------------------------------------------------------------------------------------
5-Year Treasury Note futures 2,000 10% of order
------------------------------------------------------------------------------------------
5-Year Treasury Note/ 10-Year Treasury Note
futures spread 2,000 10% of order
------------------------------------------------------------------------------------------
30 Day Fed Funds futures
(All-or-None orders may be 1,000 100
executed only in contract
months that have less than
30,000 contracts of open
interest.)
------------------------------------------------------------------------------------------
2-Year Treasury Note futures options 2,500 100
(including inter-commodity and
intra-commodity spreads)
------------------------------------------------------------------------------------------
5-Year Treasury Note futures options 2,500 100
(including inter-commodity and
intra-commodity spreads)
------------------------------------------------------------------------------------------
10-Year Treasury Note Futures Options 2,500 100
(including inter-commodity and
intra-commodity spreads.)
------------------------------------------------------------------------------------------
30-Year Treasury Bond futures options 2,500 100
(including inter-commodity and
intra-commodity spreads)
------------------------------------------------------------------------------------------
All-or-None intra-commodity spread transactions may be executed in permitted
contracts provided that each leg of the spread meets the All-or-None threshold
for that contract. However, All-or-None intra-commodity spreads and
inter-commodity spreads involving 10-Year Treasury Note Futures Options may be
executed provided that at least one 10-Year Treasury Note Option leg of the
spread order meets the designated All-or-None minimum order quantity and that
one leg of each such spread transaction meets the designated counterparty
minimum. (04/01/04)
Ch3 Floor Practices
-------------------
331.04 Execution of Simultaneous Buy and Sell Orders for Different Account
Owners - A member who has received both buying and selling orders from different
account owners for the same commodity and the same delivery month or, for
options, the same option, may execute such orders for and directly between such
account owners provided that the member shall first bid and offer openly and
competitively by open outcry at the same price, stating the number of contracts.
If neither the bid nor the offer is accepted within a reasonable time, the
orders may then be matched by the member in the presence of a member of the Pit
Committee. If either the bid or the offer is accepted in part, the remainder of
the orders may be matched pursuant to the requirements of this Regulation. The
member making the trade shall clearly identify it on the order or other document
used to record the trade, shall note thereon the time of execution to the
nearest minute, and shall present such record to such member of the Pit
Committee for verification and initialing. (10/01/02)
331.05 Block Trade Transactions - The Board of Directors may designate any
contract initially listed for trading on or after December 31, 1999 as eligible
for Block Trade transactions under this Regulation 331.05 and shall determine
the minimum size thresholds for the contracts in which Block Trade transactions
are permitted. In determining the minimum size threshold, the Board of Directors
shall take into consideration (to the extent available) the size distribution of
transactions in the contract, the size distribution of transactions in the
related cash or over-the-counter markets, and all other information relevant to
transaction size in the relevant contract. The hours of operation of the Block
Trade facility shall be determined by the Board of Directors.
Members may enter into transactions outside of the Exchange's central markets,
at prices mutually agreed, with respect to contracts that have been designated
by the Exchange for such purpose, provided that the following conditions are
satisfied:
a) Each buy or sell order underlying a Block Trade must (i) state
explicitly that it is to be, or may be, executed by means of a Block
Trade and (ii) be at least for the minimum transaction size as
determined by the Board of Directors. Orders may not be aggregated in
order to achieve the minimum transaction size.
b) The price at which a Block Trade is executed must be fair and
reasonable in light of (i) the size of such Block Trade; (ii) the
price and size of other trades in the same contract at the relevant
time; and (iii) the price and size of trades in other relevant
markets, including without limitation the underlying cash market or
other related futures markets, at the relevant time. The price at
which a Block Trade is executed shall not affect conditional orders
such as limit orders or stop orders. The price at which a Block Trade
is executed shall not be used in establishing settlement prices.
c) Each nonmember customer to a Block Trade transaction must qualify as
an "eligible contract participant", as that term is defined in Section
1a (12) of the Commodity Exchange Act, provided that, if any Block
Trade is entered into on behalf of customers by a commodity trading
advisor registered under the Act, including without limitation any
investment advisor registered as such with the Securities and Exchange
Commission that is exempt from regulation under the Act or Commodity
Futures Trading Commission Regulations thereunder, or a foreign person
performing a similar role or function subject as such to foreign
regulation, with total assets under management exceeding $50 million,
the individual customers need not so qualify.
d) Each Block Trade executed pursuant to this Regulation must be cleared
through the clearing members. Information identifying the relevant
contract, contract month, price, quantity, time of execution and
counterparty clearing member for each Block Trade must be reported to
the Exchange within five minutes immediately following execution of
such Block Trade. The Exchange will publicize information identifying
the trade as a Block Trade and identifying the relevant contract,
contract month, price, and quantity for each Block Trade immediately
after such information has been reported to the Exchange.
e) Each clearing member and member that is party to a Block Trade shall
record the following details on its order ticket: the contract
(including the delivery or expiry month) to which such Block Trade
relates; that the trade is a Block Trade; the number of contracts
traded; the price of execution; the time of execution; the identity of
the counterparty; and, if applicable, details regarding the customer
for which the Block Trade was executed. Upon request by the Exchange,
such clearing member or member shall produce satisfactory evidence,
including without limitation the order ticket referred to in the
preceding sentence, that the Block Trade meets the requirements set
forth in this Regulation. (09/01/03)
332.00 Orders Must Be Executed in The Public Market - All orders received by
any member of this Association, firm or corporation, doing business on Change,
to buy or sell for future delivery any of the commodities dealt in upon the
Floor of the Exchange (except when in exchange for cash property or when
executed pursuant to Regulation 331.05) must be executed competitively by open
outcry in the open market in the Exchange Hall during the hours of regular
trading and, except as specifically provided in Regulations 331.03, 331.04,
331.05 and 350.10, under no circumstances shall any member, firm or corporation
assume to have executed any of such orders or any portion thereof by acting as
agent for both buyer and seller either directly or indirectly, in their own name
or that of an employee, broker or other member of the Association; provided,
that on transactions where brokers as agents for other members meet in the
execution of orders in the open market and without prearrangement
unintentionally consummate a contract for the one and same clearing member
principal, such transactions shall not be considered in violation of this Rule.
202A (07/01/03)
332.01 Open Market Execution Requirement - All futures transactions resulting
in change of ownership (except those involving the exchange of futures in cash
transactions) must be made in the open market in the manner prescribed by Rules
332.00 and 310.00. 1866 (08/01/94)
332.01A Bidding and Offering Practices - Bidding and offering practices on the
Floor of the Exchange must at all times be conducive to competitive execution of
orders, as required by Rule 332.00. Bids or offers of 'all the way to,' 'all you
have up (or down) to, 'everything you have up (or down) to,' and similar
expressions, are not conducive to competitive execution of orders, and are
expressly deemed to be in violation of Rule 332.00. 47R (08/01/94)
332.01B Conformation with Section 1.39 of The Commodity Exchange Act - The
Board of Directors at their regular meeting held on Tuesday, September 6th,
1955, ruled that inasmuch as the Chicago Board of Trade has no Rule that
conforms to Section 1.39 of the Commodity Exchange Act, Rule 332.00 of the
Board's Rules and Regulations prevails. 28R (08/01/94)
332.02 Trade Data - Each member executing transactions on the Floor of the
exchange shall enter or cause to be entered on the record of those transactions
an indicator designating the time bracket within the trading session in which
each execution occurred. Each clearing member shall enter only the bracket
information submitted to the clearing member by the member executing the trades
in the designated form on the record of transactions submitted to the Clearing
Services Provider. The brackets and their designations will be as follows:
[Enlarge/Download Table]
7:00-7:15 a.m. A 11:30-11:45 a.m. S 5:00-5:15 p.m. A
--------------------------------------------------------------------------------------------------------
7:15-7:30 a.m. B 11:45-12:00 noon T 5:15-5:30 p.m. B
--------------------------------------------------------------------------------------------------------
7:30-7:45 a.m. C 12:00-12:15 p.m. U 5:30-5:45 p.m. C
--------------------------------------------------------------------------------------------------------
7:45-8:00 a.m. D 12:15-12:30 p.m. V 5:45-6:00 p.m. D
--------------------------------------------------------------------------------------------------------
8:00-8:15 a.m. E 12:30-12:45 p.m. W 6:00-6:15 p.m. E
--------------------------------------------------------------------------------------------------------
8:15-8:30 a.m. F 12:45-1:00 p.m. X 6:15-6:30 p.m. F
--------------------------------------------------------------------------------------------------------
8:30-8:45 a.m. G 1:00-1:15 p.m. Y 6:30-6:45 p.m. G
--------------------------------------------------------------------------------------------------------
8:45-9:00 a.m. H 1:15-1:30 p.m. Z 6:45-7:00 p.m. H
--------------------------------------------------------------------------------------------------------
Ch3 Floor Practices
-------------------
[Enlarge/Download Table]
--------------------------------------------------------------------------------------------------------
9:00-9:15 a.m. I 1:30-1:45 p.m. 2 7:00-7:15 p.m. I
--------------------------------------------------------------------------------------------------------
9:15-9:30 a.m. J 1:45-2:00 p.m. 3 7:15-7:30 p.m. J
--------------------------------------------------------------------------------------------------------
9:30-9:45 a.m. K 2:00-2:15 p.m. 4 7:30-7:45 p.m. K
--------------------------------------------------------------------------------------------------------
9:45-10:00 a.m. L 2:15-2:30 p.m. 5 7:45-8:00 p.m. L
--------------------------------------------------------------------------------------------------------
10:00-10:15 a.m. M 2:30-2:45 p.m. 6 8:00-8:15 p.m. M
--------------------------------------------------------------------------------------------------------
10:15-10:30 a.m. N 2:45-3:00 p.m. 7 8:15-8:30 p.m. N
--------------------------------------------------------------------------------------------------------
10:30-10:45 a.m. O 3:00-3:15 p.m. 8 8:30-8:45 p.m. O
--------------------------------------------------------------------------------------------------------
10:45-11:00 a.m. P 3:15-3:30 p.m. 9 8:45-9:00 p.m. P
--------------------------------------------------------------------------------------------------------
11:00-11:15 a.m. Q 9:00-9:15 p.m. Q
--------------------------------------------------------------------------------------------------------
11:15-11:30 a.m. R 9:15-9:30 p.m. R
--------------------------------------------------------------------------------------------------------
The first time bracket in the trading session of each respective commodity will
be less than 15 minutes, as determined by the Regulatory Compliance Committee
for each particular contract, and will be designated by a "dollar" sign "$".
The last time bracket in the trading session of each respective commodity will
be one minute or less, as determined by the Regulatory Compliance Committee for
each particular contract, and will be designated by a "percent" sign "%";
provided however, that each respective contract market's close may be expanded
or reduced by an amount of time which shall not exceed one minute due to unique
market conditions on a particular trade date as determined in the discretion of
each commodity's Pit Committee; any closing period other than that established
by the Regulatory Compliance Committee shall be communicated to the market at
least five minutes prior to the commencement of the revised close for that date.
The modified closing call in the trading session of each respective commodity
will be designated by a "pound" sign "#".
If the member executing the trades does not submit a bracket designation to the
clearing member, the clearing member shall enter "?" as the bracket designation
when submitting the record of such transaction to the Clearing Services
Provider. 1979 (01/01/04)
332.03 Lost Orders - Any broker who has reason to believe that an order has
been lost or misplaced, shall immediately notify the Secretary of the Exchange,
who shall thereupon have the matter investigated. (08/01/94)
332.04 Records of Floor Traders - Each member executing transactions on the
Floor of the Exchange for his or her personal account [Type 1 trades as defined
in CFTC Regulation 1.35(e)] must execute such transactions on the Floor of the
Exchange using pre-printed sequentially pre-numbered trading cards. A new
trading card must be used at the beginning of each time bracket as designated in
Regulation 332.02.
Each member must record the transactions in exact chronological order of
execution on sequential lines of the trading card (no lines may be skipped).
Provided, however, that if lines remain after the last execution recorded on a
trading card, the remaining lines must be marked through. All transactions
which are recorded on a single trading card must be recorded on the same side of
such trading card. No more than six transactions may be recorded on each
trading card.
The trading cards must contain pre-printed member identification which will
include, but will not be limited to, the trading acronym and the full name of
the member. The trading cards must also contain preprinted bracket
designations. (01/01/96)
332.041 Accountability of Trading Cards - Each member executing transactions
on the Floor of the Exchange, and his clearing member(s), shall establish and
maintain procedures that will assure the complete accountability of all pre-
printed sequentially pre-numbered trading cards used by such member on a daily
basis. Such trading cards must be distinguishable from other trading cards used
by the member during a one week period. (08/01/94)
332.05 Card Collection - At such times and in such manner as designated by
the Regulatory Compliance Committee, each member shall provide his clearing
member with trading documents which are relied upon for transactional
information necessary for submission to the clearing system
Ch3 Floor Practices
-------------------
containing those trades that have been executed thus far during that day.
Trading documents include trading cards of members' personal and proprietary
trades, trading cards of one member reflecting trades of another member (CTI 3
pursuant to CFTC Regulation 1.35 (e)) and floor order tickets.
A member may correct any errors on trading documents by crossing out erroneous
information without obliterating or otherwise making illegible any of the
originally recorded information. Alternatively, with regard to trading cards
only, a member may correct any errors by rewriting the trading card. However,
if a trading card is rewritten to correct erroneous information, the member
shall provide his clearing member with the top ply of the original trading card,
or in the absence of plies, the original trading card, which has been
subsequently rewritten, in accordance with the same collection schedule
designated by the Regulatory Compliance Committee for trading documents relied
upon for clearing purposes.
Following the collection of the above-stated documents, the clearing member
shall ensure that all such documents receive an Exchange-designated time stamp
upon collection. (12/01/96)
332.06 Records of Proprietary Orders - Immediately upon receipt on the Floor
of the Exchange of an order from a proprietary or house account (Type 2 trades
as defined in CFTC Regulation 1.35(e)) each member or registered eligible
business organization shall prepare a written record of the order. It shall be
dated and time stamped when the order is received and shall show the account
designation.
Such written records of proprietary orders of both clearing and non-clearing
member firms need not be prepared if the members executing such transactions on
the Floor of the Exchange are employed by such member firms and meet the
recordkeeping requirements set forth in Regulation 332.04. However, such
members must register with the Exchange and may not trade for their personal
accounts. The executing members may record proprietary orders in this manner if
they have initiated such orders, or if their employing firm has placed
proprietary orders with them for execution. (10/01/00)
332.07 Accountability of Trading Documents - A member is accountable for all
documents used in the execution of trades, including trading cards used for his
personal account and other documents used by the member in the execution of
trades made for others.
Floor brokers who record flashed order executions on broker cards must record on
the broker card, the corresponding clearing firm number and order ticket number
for every flashed order execution. In addition, floor brokers who record
flashed order executions on broker cards must use non-erasable ink and may
correct any errors by crossing out the erroneous information without
obliterating or otherwise making illegible any of the originally recorded
information. (12/01/96)
332.08 CTR Recordkeeping and Data Entry Requirements - Pursuant to
Regulations 332.02, 332.04, 332.041, 332.05, 332.06 and 332.07 and 332.09, each
member and member firm shall keep, in an accurate and complete manner, all books
and records required to be made or maintained under the Rules and Regulations
regarding submission of data to the Exchange or the Clearing Services Provider
for CTR purposes. All trade data submissions must be done in a correct and
timely manner.
Trade data includes, but is not limited to, the time bracket, executing broker,
opposite broker, transaction type, customer type indicator ("CTI") code [as
defined in CFTC Regulation 1.35 (e)], trade timing and trade sequencing
information.
If the member executing the trade does not provide the required data to the
clearing member, the clearing member shall enter "?" as the designation when
submitting the record of such transaction to the Clearing Services Provider. If
the trade cannot clear without the specific information, it is the clearing
firm's obligation to enter a "?" designation and to obtain promptly from the
member who executed the trade the complete and correct information concerning
the trade. (01/01/04)
332.09 Member Trading for Another Member on the Trading Floor -
(a) At the time of execution, every order, which is not reduced to writing, that
a member receives from another member who is present on the trading floor
must be recorded. The member executing the order must record the time of
execution to the nearest minute on the trading card or other document used
to record the trade and must return this card or document to the initiating
member.
A member placing a verbal order, except for orders involving options-futures
combinations and other spread trades where the initiating member personally
executes at least one leg of the spread,
Ch3 Floor Practices
-------------------
shall simultaneously make a written record of the order and record the time
of placement to the nearest minute. The order and the time shall be recorded
on the member's trading card, which shall be in sequence with other trading
cards used by that member. The trading card used to record the placement of
the verbal order and the trading card or document used to record the
execution of the order must be submitted together to the clearing member by
the member placing the order or designated representative in accordance with
the collection schedule established by the Exchange.
(b) Every written order that is initiated by a member for his own account while
on the Exchange floor must be dated and time stamped upon transmission for
execution, and when returned or, in the case of an arbitrage or a flashed
transaction, when confirmed or cancelled. (08/01/94)
332.10 Prohibition of Trading or Placing Verbal or Flashed Orders from the
Clerks Step in Financial Futures and Options Contracts - Any Exchange member who
performs the functions of a floor clerk or broker assistant who also stands in
the area designated for broker assistants in any financial future or option pit
which is clearly defined as the area behind the top step is prohibited from
placing verbal orders or flashed orders for his personal account while standing
in that location. Such members are also prohibited from executing trades while
standing in this location. For the purposes of this Regulation, trading is
defined as executing trades for one's personal account, an account of another
member or a customer. Such members may only enter orders for their personal
accounts by placing such orders through the normal customer order flow process
which requires that the member leave the pit to place an order. (07/01/97)
332.11 Changers - The Exchange shall permit a clearing firm to act as a
changer, subject to the provisions below, for the purpose of engaging in
changing transactions involving CBOT mini-sized Corn, mini-sized Soybean or
mini-sized Wheat futures contracts and their full-sized counterparts. A
changing transaction involves the purchase or sale of a commodity between a
changer and another member, which on the part of the changer is part of a
spreading transaction between a mini-sized contract and its corresponding
full-sized contract.
A. Application and Notices
1. A clearing member firm desiring to act as a changer for one or more of
the mini-sized contracts specified in this Regulation, shall make an
application to the Exchange, in the manner prescribed by the Exchange.
The Exchange may approve changers consonant with the needs of the
Exchange, considering such matters as liquidity in the relevant
contracts, space and physical facilities required for changing,
financial capability of the applicant, the number and character of the
relevant contracts, and the number and capacity of changers already in
a particular commodity.
2. A changer shall notify the Exchange of the names of its changer's
representatives who will accept orders for changing transactions, and
any changes thereto.
3. A changer shall file with the Exchange, notice of any limitations on
the extent to which it will make its services available, and of any
changes to such limitations, one day prior to their effective date.
The Exchange may disapprove any such limitations.
B. Execution of Changing Transactions
1. A changer shall maintain a representative on the trading floor at all
times during trading hours to accept orders for changing transactions.
2. A member may give an order to a changer's representative, who shall
immediately place such order for execution in the pit for the relevant
full-sized contract. A changer may not unreasonably refuse to accept
any order that is consistent with its authorization to act as a
changer.
3. If filled, the member placing the order and the changer's
representative shall be deemed to have executed a changing transaction
wherein the full-sized commodity purchased (sold) has been sold to
(bought from) the member placing the order, on and subject to the
rules of the Exchange.
4. When a changer purchases (sells) a full-sized commodity, it may mark
up (down) the price of the purchase (sale) when making the
corresponding sale to (purchase from) the member placing the order, by
the amount of its changing fee. The changer shall disclose the amount
of its current changing fee, prior to accepting any particular order
for a changing transaction.
5. Rule 336.00, Bids and Offers in Commodities Subject to Partial
Acceptance, shall not apply to the execution of a changing
transaction.
C. Recordkeeping and Clearing
1. An order for a changing transaction must be documented and
time-stamped in the same manner as a customer order, in accordance
with Regulation 465.01.
2. A changer shall clear its changing transactions through an account
exclusively designated for such purpose. This changing account at all
times shall be evenly spread between the relevant mini-sized contracts
and their full-sized counterparts. However, changer accounts which
have e-cbot transactions pending for clearing on the next trade date
are exempted from the evenly spread requirement.
3. All changing transactions shall be clearly identified as such by
appropriate accounts or symbols on all records of the changer and on
the records submitted for clearing.
D. Fees - Changers may be obligated to pay changer transaction fees to the
Exchange, in such amounts, at such times, and in such manner as the Exchange
may prescribe.
E. Miscellaneous
1. No changer's representative shall enter into a changing transaction in
which he appears as the executing member on each side of the
transaction.
2. If applicable, a member futures commission merchant shall disclose to
its customers that the price at which a trade is executed on the
Exchange may include a changer's fee, and, that the amount of the
changing fee, if included in a transaction price, shall be disclosed
to a customer upon request.
3. No member or employee of a member shall require, induce or attempt to
induce, either directly or indirectly, a floor broker or member to
execute any transaction through a changing transaction or to utilize
the services of a particular changer or changer's representative.
4. No member may give a market order, a priced order, or a discretionary
order, to a changer's representative except by open outcry, nor
without first seeking a bid or offer, nor without executing as much as
possible in the pit at prices which such member reasonably expects to
be the best available. Members may not enter priced orders with a
changer that are off the current market in both the mini-sized
contract and its corresponding full-sized contract.
5. No member shall give orders to a changer's representative for
quantities that he could reasonably expect to execute in the pit for
the relevant mini-sized contract. (04/01/03)
333.00 Trades of Non-Clearing Members -
(a) PRIMARY CLEARING MEMBER. Each non-clearing member who executes trades on
Change must have one and only one Primary Clearing Member who will accept
and clear the member's personal trades. A written authorization must be on
file with the Member Services Department authorizing such non-clearing
member, without qualification, to submit trades through such Primary
Clearing Member, and designating such clearing member as the non-clearing
member's Primary Clearing Member. Such Primary Clearing Member acts as
Commission merchant for the non-clearing member. Such Primary Clearing
Member, acting as commission merchant, shall be liable upon all trades made
by the non-clearing member for the account of the Primary Clearing Member
(unless authorization is revoked as provided in (c) below) and shall be a
party to all disputes arising from trades between the authorized non-
clearing member and another member or member firm made for the account of
the Primary Clearing Member.
(b) OTHER CLEARING MEMBERS. A non-clearing member may have one or more clearing
members, in addition to his Primary Clearing Member, through whom he may
also clear his trades, provided he has written permission to do so from his
Primary Clearing Member. However, as provided in Rule 252.00, such clearing
member's claims shall be subordinated to the claims of the Primary Clearing
Member(s). Such written permission of the Primary Clearing Member must be
filed with the Member Services Department. Written authorization from the
other clearing member, authorizing the nonclearing member to make trades on
Change for the account of the clearing member, must also be filed with the
Member Services Department. Thereafter, such clearing member acting as
commission merchant, shall be liable upon all trades made by the non-
clearing member for the account of the clearing member (unless authorization
is revoked as provided for in (c) below) and shall be a party to all
disputes arising from trades between the authorized non-clearing member and
another member or member firm made for the account of the clearing member.
(c) REVOCATION OF AUTHORIZATION. A revocation of authorization, either by a
Primary Clearing Member or another clearing member, must, to be effective,
be in writing and be posted by the Secretary upon the bulletin board of the
Exchange. A non-clearing member whose Primary Clearing Member has revoked
authorization shall be denied access to the Floor until another clearing
member has designated itself as the non-clearing member's Primary Clearing
Member, pursuant to (a) above. Revocation of a non-clearing member's
authorization to execute transactions through the e-cbot system shall be in
accordance with 9B.08.
Ch3 Floor Practices
-------------------
(d) The non-clearing member will not be permitted to submit a new primary
clearing member authorization or clear trades through a new primary clearing
member until such time as the former primary clearing member files a release
with the Member Services Department. A primary clearing member who has
revoked primary clearing member status to a non-clearing member must give
the non-clearing member release upon the non-clearing member's request when
the non-clearing member has obtained a new primary clearing member unless
(1) the non-clearing member has current debts related to the conduct of
business as a broker, trader or commission merchant at the primary clearing
member equal to or greater than the amount specified in Rule 286.00; or (2)
the clearing member is the guarantor under an existing valid guarantee of a
loan which had been made to the non-clearing member exclusively for the
purpose of financing the purchase of the non-clearing member's membership,
such guarantee in an amount equal to or greater than the amount specified in
Rule 286.00.
(e) PRIORITY OF DEBTS FOR PURPOSES OF RULE 252.00. Upon transfer of the non-
clearing member's membership, any indebtedness owed to a former Primary
Clearing Member at the time of revocation which was incurred subsequent to
authorization and which continues to be owed such former Primary Clearing
Member(s) shall be paid in the chronological order of revocation (oldest
debt first), in the manner and to the extent allowed under Rule 252.00. 204
(11/01/03)
333.01 Error Accounts -
(a) Each non-clearing member who acts as a floor broker or is registered with
the Commodity Futures Trading Commission or a registered futures association
as a floor broker (i) shall maintain a personal account with his Primary
Clearing Member into which he places brokerage errors; (ii) may maintain
personal error accounts at one or more secondary clearing members, in
addition to his Primary Clearing Member, provided he has written permission
to do so from his Primary Clearing Member on file with Member Services
Department.
(b) Each clearing member who carries an error account agrees to accept and clear
the broker's trades involving brokerage errors. A written authorization must
be filed with the Member Services Department authorizing the broker, without
qualification, to submit trades involving brokerage errors through such
clearing member. Such clearing member shall be liable upon all trades
involving brokerage errors that are submitted to the error account (unless
authorization is revoked as provided herein) and shall be a party to all
disputes involving trades between the broker, in his capacity as a broker,
and another member or member firm that may ultimately be submitted to the
error account. Revocation of authorization granted pursuant to this
Regulation must be filed in writing with the Member Services Department and
will become effective when written notice thereof is posted on the Exchange
bulletin board by the Secretary. (08/01/94)
333.03 Funds in Trading Accounts Carried by Clearing Members - The following
shall apply to trading accounts which are carried for non-clearing members by
clearing members pursuant to Rule 333.00:
(a) If a non-clearing member trades in excess of written limits prescribed by
the carrying clearing member, and/or if the non-clearing member is alleged
to have engaged in reckless and unbusinesslike dealing inconsistent with
just and equitable principles of trade, the disposition of any and all funds
in the applicable trading accounts(s) may be suspended by the carrying
clearing member, or by the Association through the Board of Directors,
Executive Committee, Floor Governors Committee or Arbitration Executive
Committee pending a determination by the Arbitration Committee regarding the
appropriateness of the non-clearing member's conduct.
Ch3 Floor Practices
-------------------
Any Arbitration Committee decision to release trading account funds to the
non-clearing member shall include the payment of interest by the clearing
member to the non-clearing member as determined by the Arbitration
Committee.
(b) Either the carrying clearing member or the Association may direct that the
disposition of trading account funds be suspended pursuant to subparagraph
a) of this regulation. However, if such suspension is initiated by the
clearing member the suspension will be subject to review within one business
day by the Board or one of the Committees designated in paragraph (a). The
purpose of this review will be determine if sufficient grounds exist to
warrant continuation of the suspension pending a final determination by the
Arbitration Committee. Association proceedings in this regard will be
conducted in accordance with Regulation 540.60 "Procedures for Member
Responsibility Actions". (05/01/94)
334.00 Trades of Non-Clearing Members - (See 431.00) (08/01/94)
335.00 Bids and Offers in Commodities Subject to First Acceptance - Any offer
made on Change to buy or sell any commodity for future delivery is subject to
immediate acceptance by any other member. All such offers shall be general
offers and shall not be specified for acceptance by particular members. 254
(08/01/94)
336.00 Bids and Offers in Commodities Subject to Partial Acceptance - If an
offer is made on Change (the Exchange) to buy or sell any specified quantity of
any commodity for future delivery, such offer shall be deemed an offer to buy or
sell all or any part of such specified quantity and, if not immediately accepted
for the entire quantity, it may be accepted for a quantity less than specified.
Orders or offers to buy or sell a specified quantity or none shall not be
allowed, except as specifically provided in Regulation 331.03. 255 (07/01/00)
336.01 Guaranteeing Terms of Execution - Any member or member firm who
receives an order to buy or sell a futures contract or option on a futures
contract for execution on the Exchange is prohibited from directly or indirectly
guaranteeing the execution of the order or any of its terms such as the quantity
or price. A member may only report an execution that has occurred as a result of
open outcry or has been effected through an Exchange approved automated order
entry facility.
This regulation shall not be construed to prevent a member or member firm from
assuming or sharing in the losses resulting from an error or mishandling of an
order. (08/01/94)
337.01 Orders Involving Cancellations Accepted on a 'Not Held' Basis - All
orders involving cancellations that reach the Trading Floor 10 minutes or less
before the opening or resumption of the market, as applicable and all orders
involving cancellations that reach the Trading Floor 10 minutes or less before
the close of the market may involve extraordinary problems and hence will be
accepted solely at the risk of the customer on a 'not held' basis.
All orders must be received by the floor broker within a reasonable time prior
to the opening, the resumption or the close of the market, as applicable. Such
other orders not received by the floor broker within a reasonable time prior to
the opening, the resumption or the close of the market will be accepted solely
at the risk of the customer on a 'not held' basis. 1847 (09/01/98)
350.00 Trade Checking Penalties - (See 563.00) (08/01/94)
350.01 Failure to Check Trades - If any member, firm or corporation is unable
with diligent effort to check any future delivery transaction made with another
member, firm or corporation, then such transaction shall be closed out for the
account of whom it may concern by the member, firm or corporation claiming the
contract at the earliest reasonable opportunity in order to establish any claim
for loss because of such failure to check by the other party to the contract.
1811 (08/01/94)
350.02 Responsibility For Customer Orders - A floor broker or clearing member
shall exercise due diligence in the handling and execution of customer orders.
The Exchange's Arbitration Committee is authorized to determine whether a broker
or clearing firm fulfilled their obligations and whether an adjustment is due to
the customer. The Committee may consider the nature of the order and existing
market conditions, including the existence of a "FAST" market, at the time the
broker or clearing member acted or failed to act. However, a "FAST" designation
does not nullify or reduce the
Ch3 Floor Practices
-------------------
obligations of the floor broker to execute orders with due diligence according
to the terms of the order.
Except in instances where there has been a finding of willful or wanton
misconduct, in which case the party found to have engaged in such conduct cannot
avail itself of the protections in this provision, neither floor brokers nor
member firms, or other persons acting as agents nor any of their officers,
directors or employees, shall be liable for any loss, damage or cost (including
attorney's fees and court costs), whether direct, indirect, special, incidental,
consequential, lost profits or otherwise of any kind, regardless or whether any
of them has been advised or is otherwise aware of the possibility of such
damages, arising out of the use or performance of the CBOT's Electronic Order
Routing System, any component(s) thereof, or any fault, failure, malfunction or
other alleged defect in the Electronic Order Routing System, including any
inability to enter or cancel orders, or any fault in delivery, delay, omission,
suspension, inaccuracy or termination, or any other cause in connection with the
furnishing, performance, maintenance, use of or inability to use all or any part
of the Electronic Order Routing System, including but not limited to, any
failure or delay in transmission of orders or loss of orders resulting from
malfunction of the Electronic Order Routing System, disruption of common carrier
lines, loss of power, acts or failures to act of any third party, natural
disasters or any and all other causes.
The foregoing shall apply regardless of whether a claim arises in contract,
tort, negligence, strict liability or otherwise. The foregoing limitations are
cumulative and shall not limit or restrict the applicability or any other
limitation or any rule, regulation or bylaw of the Exchange or the Clearing
House. The foregoing shall not limit the liability of any floor broker or
member firms, or other person acting as agent or any of their respective
officers, directors or employees for any act, incident, or occurrence within
their control.
If any of the foregoing limits on the liability of the floor brokers or member
firms or other persons acting as agents or any of their officers, directors or
employees should be deemed to be invalid, ineffective, or unenforceable and a
customer sustains a loss, damage or cost (including attorney's fees and court
costs) resulting from use of the Electronic Order Routing System, the entire
liability of the floor brokers or member firms and their agents or any of their
officers, directors or employees shall not exceed the brokerage commissions and
any other charges actually paid by the customer.
Notwithstanding any of the foregoing provisions, this provision shall in no way
limit the applicability of any provision of the Commodity Exchange Act, as
amended, and Regulations, thereunder. (01/01/99)
350.03 Identification of Floor Trading Personnel and Floor Traders - Every
member is required to wear an identification badge issued by the Association in
a prominent position and in proper fashion to be admitted to the Trading Floor
and must so wear the badge at all times while he is on the Trading Floor.
Failure to wear a badge shall be considered an act detrimental to the welfare of
the Association (Rule 504.00). 1955 (08/01/94)
350.04 Outtrades and Errors and Mishandling of Orders -
A. Outtrades - If a floor broker discovers, either intraday or interday, that
all or some portion of a customer order was executed but cannot be cleared, the
broker shall do one of the following:
1. Re-execute the order in the market and adjust the customer by check if
the re-execution price is worse than the original execution price. If
the re-execution price is better than the original execution price, the
customer is entitled to the better price.
2. Assign the opposite side of the portion that cannot be cleared to his
or her error account and assign a fill to the customer at the execution
price. The floor broker shall not liquidate the assigned position until
at least ten minutes have elapsed after the execution of the order
giving rise to the outtrade and, in any event, after the bracket period
in which the outtrade arose has ended. These liquidation restrictions
shall not apply to a liquidation during a Modified Closing Call. Any
profits resulting from the liquidation of the assigned position belong
to the floor broker, and may be retained or disbursed to whomever he
chooses, in his discretion.
Ch3 Floor Practices
-------------------
B. Unfilled or Underfilled Orders - If a broker fails to execute an order or
underbuys or undersells on an order, the broker shall do one of the following:
1. Execute the order or the remainder of the order in the market and
adjust the customer by check if the customer is filled at a price
less favorable than that to which he was entitled but for the error
or mishandling. If the order is filled at a more favorable price,
the customer is entitled to the better price.
2. Execute the order or the remainder of the order in the market. If
the order, or the remainder of the order, is filled at a worse price
than that to which it was entitled but for the error or mishandling,
the broker may allocate the fill to his error account and assign the
opposite side of the order to his error account at the price to
which the customer was entitled. If the order is filled at a more
favorable price, the customer is entitled to the better price.
C. Wrong Month or Wrong Strike Executions
When an order has been executed in the wrong contract month or strike price and
the erroneous transaction has been placed in the broker's or firm's error
account, the error may be corrected by one of the following:
1. Execution of the order in accordance with its terms, with an
adjustment by check if the order is executed at a worse price as a
result of the mishandling of the order.
2. Execution of a spread transaction, in accordance with Regulation
352.01, whereby one leg of the spread represents the correct
execution of the order and the other leg offsets the erroneous
position in the error account.
D. Wrong Side of Market Executions
When an order has been executed on the wrong side of the market and the
erroneous execution has been placed in the broker's or firm's error account, the
error may be corrected as follows:
Execution of the order in accordance with its terms, with an adjustment by check
if the order is executed at a worse price as a result of the mishandling of the
order.
If a broker overbuys or oversells on an order, the customer is not entitled to
any of the excess. A position that has been established in an erroneous or
mishandled attempt to execute a customer order must be placed in the error
account of the broker or firm responsible for the error or mishandling. Any
profits resulting from the liquidation of the trades placed in a broker's or
firm's error account belong to the relevant broker or firm, and may be retained
or disbursed to whomever they choose at their discretion
In accordance with Regulation 336.01, no broker shall guarantee, directly or
indirectly, the execution of an order, or any of its terms, except in the case
of a bonafide error or mishandling. (03/01/04)
350.05 Floor Practices - The following acts are detrimental to the welfare of
the Association (except as permitted under Regulation 331.05):
(a) for a floor broker to purchase any commodity for future delivery, purchase
any call commodity option or sell any put commodity option for his own
account, or for any account in which he has an interest, or for those
accounts falling within the exception of paragraph (c) of this Regulation,
while holding an order of another person for the purchase of any future,
purchase of any call commodity option, or sale of any put commodity option,
in the same commodity which is executable at the market price or at the
price at which such purchase or sale can be made for the member's own
account or the account in which he has an interest, or for those accounts
falling within the exception of paragraph (c) of this Regulation.
(b) for a floor broker to sell any commodity for future delivery, sell any call
commodity option or purchase any put commodity option for his own account,
or for any account in which he had an interest, or for those accounts
falling within the exception of paragraph (c) of this Regulation, while
holding an order of another person for the sale of any future, sale of any
call commodity option, or purchase of any put commodity option in the same
commodity which is executable at the market price or at the price at which
such sale or purchase can be made for the member's own account or the
account in which he has an interest, or for those accounts falling within
the exception of paragraph (c) of this Regulation;
(c) for a floor broker to execute a transaction in the trading pit for an
account over which he has discretionary trading authority.
The above restriction shall not apply to:
1. transactions for another member of the Exchange;
2. transactions for members of the floor broker's family which include;
spouse, parent, child, grandparent, grandchild, brother, sister,
uncle, aunt, nephew, niece, or inlaw;
3. transactions for proprietary accounts of member firms.
(d) for a member to disclose at any time that he is holding an order of another
person or to divulge any order revealed to him by reason of his relationship
to such other person, except pursuant to paragraph (c) of this Regulation,
in the legitimate course of business or at the request of an authorized
representative of the Exchange or of the Commission; the mere statement of
opinions or indications of the price at which a market may open or resume
trading does not constitute a violation of the Association's Rules and
Regulations; however, nothing herein shall alter or waive a member's
responsibility to comply with existing provisions of the Commodity Exchange
Act, Commission Rules, and the Rules and Regulations of the Association;
furthermore, it shall be a violation of this Regulation for any individual
to solicit or induce a member to disclose order information in a manner
prohibited by this Regulation;
(e) for a member to take, directly or indirectly, the other side of any order of
another person revealed to him by reason of his relationship to such other
person, except with such other person's prior consent and in conformity with
Exchange rules or except for transactions done in accordance with
Ch3 Floor Practices
-------------------
Regulation 350.04 to resolve bonafide errors or outtrades;
(f) for a member to make any purchase or sale which has been pre-arranged;
(g) for a member to withhold or withdraw from the market any order or part of an
order of another person for the convenience of another member;
(h) for a member to execute any order after the closing bell is sounded except
in a call market close;
(i) for a member to buy and sell as an accommodation at any time or, except as
specifically provided in Regulations 331.03, 331.04 and 350.10, to use one
order to fill another order, or any part thereof;
(j) for parties to a transaction to fail to properly notify the pit recorder of
the price at which trades have been consummated;
(k) for a floor broker to allocate executions of orders in any manner other than
an equitable manner.
(l) for a member to initiate during the same trading session a transaction for
future delivery in a CBOE 50 or CBOE 250 Stock Index future(s) for his or
her own account, or for any account in which he or she has an interest, or
for the account of his or her family including spouse, parents, children,
grandparents, grandchildren, brothers, sisters, uncles, aunts, nephews,
nieces and in-laws, and to execute as a floor broker any order for future
delivery in a CBOE 50 or CBOE 250 Stock Index future(s). This restriction
shall not apply to any transaction made by the member to offset a
transaction made in error by the same floor member. (03/01/04)
350.06 Give-Ups - A member must have prior permission from a clearing member
to give-up its name for a trade executed on the Exchange. For give-up orders,
the executing clearing member must first clear the trade and then transfer it in
accordance with Regulation 444.01(f). A floor broker is prohibited from giving
up in the pit a name other than the executing clearing member placing the order.
Give-up orders are prohibited when used as a pricing mechanism in connection
with cash market contracts. Pricing in connection with cash market contracts
must be done only on a versus-cash basis pursuant to the requirements of
Regulation 444.01. (11/01/97)
350.07 Checking and Recording Trades - Members must within fifteen minutes
after each transaction confirm with the opposite member trader every execution
of a futures transaction with respect to executing member, price, quantity,
commodity, future and respective clearing members. Members must within fifteen
minutes after each transaction confirm with the opposite member trader every
execution of an options transaction with respect to executing member, premium,
quantity, option series, and respective clearing members. Each record of
transactions must show the relevant foregoing information and also must include
and clearly identify the date and appropriate time bracket, and the opposite
executing member.
In addition, each member who, on the Floor of the Exchange receives a customer's
or options customer's order which is not in the form of a written record
including the account identification, order number and date and time, to the
nearest minute, such order was received on the floor of the Exchange, shall
immediately upon receipt thereof prepare a written record of such order,
including the account identification and order number, and shall record thereon
the date and time, to the nearest minute, such order is received.
Non-erasable ink must be used to record all such information. (11/01/94)
350.08 Notification of Unchecked Trades - Any clearing firm that is unable
with diligent effort to check a transaction with another member, shall notify
the floor member who executed the transaction. Such notice shall be given prior
to the following day's Regular Trading Hours opening or resumption, as
applicable. In the case of agricultural contracts, such notice shall be given no
later than twenty minutes prior to the following day's opening or resumption, as
applicable.
In all cases, such notice shall be given in sufficient time as to allow the
floor member to make provisions for any adjustment. In the case of agricultural
contracts, the floor member will have resolved his trades by no later than
twenty minutes prior to the relevant opening or resumption, as applicable.
The opening range or resumption range, as applicable, of the following day's
Regular Trading Hours
Ch3 Floor Practices
-------------------
market shall be the limit of liability as a result of an unchecked trade.
(09/01/98)
350.10 Exemption for Certain Joint Venture Products - Notwithstanding any
other provisions of these Rules and Regulations, a member who simultaneously
holds orders on behalf of different principals to buy and sell any of the inter-
regulatory or intermarket spreads designated below, may execute such spread
orders for and directly between principals; provided that the member shall first
offer such spread orders competitively by open outcry in the open market (a) by
both bidding and offering at the same price, and neither such bid nor offer is
accepted or (b) by bidding and offering to a point where such offer is higher
than such bid by not more than the minimum permissible price fluctuation
applicable to such spread orders and neither such bid nor offer is accepted. If
any such order is not accepted within a reasonable amount of time, then the
member may, execute such order for and directly between the principals. The
following requirements must also be met in the execution of such spread orders:
(1) The member who executes such order must do so in the presence of a Chicago
Board Options Exchange Floor Official, who is a member qualified to trade
Joint Venture futures contracts.
(2) Such member shall clearly identify all such spreads on his trading card or
similar record by appropriate symbol or descriptive words and shall note on
such card or record the exact time of execution. Such member shall thereupon
promptly present said card or record to the Floor Official for verification
and initialing.
(3) No futures commission merchant or floor broker who receives any of the
inter-regulatory or intermarket spread orders designated below from another
person shall take the other side of such spread orders, except with such
other person's prior consent.
This Regulation applies to the following spread strategies:
(a) inter-regulatory strategies involving a CBOE 50 and/or CBOE 250 Stock Index
future(s) spread against a Standard and Poor's 100 and/or Standard and
Poor's 500 option(s) traded on the Chicago Board Options Exchange;
(b) intermarket futures spreads involving a CBOE 50 Stock Index future(s) spread
against a CBOE 250 Stock Index future(s); or
(c) any other inter-regulatory or intermarket spread designated under this
Regulation by the Board of Directors of the Association. (08/01/94)
350.11 Resolution of Outtrades - Outtrades shall be resolved in accordance
with Regulation 350.04 or by issuing a check in an amount agreed to by the
members making the trade(s).
A. Price Outtrades
When an outtrade exists due to a discrepancy as to price, members making the
trade may choose to resolve the discrepancy by electing either of the two prices
in question, if they agree that the trade was executed at that price.
If an outtrade involves a price discrepancy between a local and a broker, and
the members cannot agree on the price of execution, the price recorded by the
broker shall be used to clear the trade.
If an outtrade between locals or an outtrade between brokers involves a price
discrepancy, and these members cannot agree on the price of execution, the
buyer's price shall be used to clear the trade.
B. Quantity Outtrades
When an outtrade exists due to a discrepancy as to quantity, members making the
trade may choose to resolve the discrepancy by electing either of the two
quantities in question, if they agree that the trade was executed in that
quantity.
If any outtrade between locals involves a quantity discrepancy and these members
cannot agree on the quantity that was executed, the higher quantity shall be
used to clear the trade.
Ch3 Floor Practices
-------------------
A broker may assign the opposite side of any excess quantity on his order, which
he believes that he has executed, to his error account, pursuant to Regulation
350.04, and he may agree to the clearing of the transaction according to the
quantity recorded by the other member, whether the other member was a broker or
a local.
C. Bona Fide Contract Month, Strike, Put vs. Call and Side of Market (Buy vs.
Buy or Sell vs. Sell) Outtrades
When an outtrade exists due to a discrepancy as to the contract month, strike
price, whether an option trade involved a put or a call, or side of the market,
and any party who executed a customer order believes that the order has been
executed in accordance with its instructions, the outtrade may be resolved in
any one of the following ways:
1. The trade may be busted. If a broker re-executes his order, any losses
incurred by the customer as a result of the delay in execution must be
adjusted by check. If the order is executed at a more favorable price,
the customer is entitled to the better price.
2. The members making the trades(s) may agree that either trade or both
trades may be cleared in accordance with the members' recorded trade
data.
3. A broker may assign the opposite side of his own order to his error
account, pursuant to Regulation 350.04, and he may agree to the
clearing of the transaction according to the terms of the other
member's recorded trade data, whether the other member was a broker or
a local.
4. If both members were brokers, they may both assign their respective
trades to their error accounts, pursuant to Regulation 350.04.
A customer shall not be entitled to any portion of any profits realized by a
local who was on the opposite side of an outtrade between the local and the
customer's broker, as a result of the local's liquidation of his position. Such
profits belong to the local, and may be retained or disbursed to whomever he
chooses, in his discretion. If the local chooses to disburse any portion of
such profits to the broker, and the broker's customer has received a fill in
accordance with the broker's recorded trade data, the broker is not obligated to
offer such profits to this customer.
It shall be an offense against the Association for members to prearrange a trade
to reconcile an outtrade.
Nothing herein shall in any way limit a member's right to submit an outtrade to
Exchange arbitration if an outtrade cannot be resolved by agreement. (03/01/04)
352.01 Spreading Transactions - A spread transaction involving options, or
the purchase and sale of different futures, at a price or yield difference or
simultaneously at a separate price for each side of the spread is permitted on
this Exchange provided:
1. that each side of the spread (the purchase of one future and the sale of
another future) is for the same account, or in the case of spreads in
options, all sides are for the same account. Provided that, when an order
has been executed in the wrong month, wrong strike price or wrong commodity,
and the erroneous transaction has been placed in the broker's or firm's
error account, the error may be corrected by a spread transaction in which
one leg of the spread offsets the position in the error account and the
other leg is the correct execution of the order. Provided further that the
liability of the floor broker or FCM shall be determined in accordance with
Regulation 350.04.
2. that all sides of the spread are priced at prices within the daily trading
limits specified in Regulation 1008.01;
3. that the spread is offered by public outcry in the pit assigned to the
commodity(ies) or option(s) involved.
4. that the transaction shall be reported, recorded and publicized as a spread
in the ratio in which it was executed.
5. that when such transactions are executed simultaneously, the executing
member on each side of
Ch3 Floor Practices
-------------------
the transaction shall designate each part of the trade as a spread on his
cards by an appropriate word or symbol clearly identifying each part of such
transaction.
6. that for options the spreads must conform to one of the following
definitions, any multiple or combination of these strategies, or any
generally accepted relationship between options and the underlying futures,
including but not limited to:
a. Vertical and Horizontal Spreads. Short one call (put) and long another
call (put) with a different strike price and/or expiration month.
b. Straddles. Short (long) puts and calls in a generally accepted spread
ratio.
c. Conversions and Reverse Conversions. Short (long) calls, long (short)
puts, and long (short) futures in a generally accepted spread ratio.
d. Butterflies. Two vertical spreads which share one common strike price.
e. Boxes. Long a call and short a put at one strike price and short a call
and long a put at another strike price.
f. Synthetic Straddles. Long (short) futures and short (long) calls or long
(short) puts in a generally accepted spread ratio.
g. Ratio Spreads. Long calls (puts) and short calls (puts) in a generally
accepted spread ratio.
h. Ratio Writes. Short calls (puts) and long (short) futures in a generally
accepted spread ratio.
i. Ratio Purchases. Long calls (puts) and short (long) futures in a
generally accepted spread ratio.
j. Synthetic Futures. Long calls (puts) and short puts (calls) in a
generally accepted spread ratio.
7. that in executing a ratio spread, a member shall bid or offer by open outcry
either both the spread portion at a price difference and the remaining
portion (i.e., the "tails") at a specific price for each, or the entire
ratio spread at a separate price for each side of the transaction. A ratio
spread and if applicable each part of it must be executed competitively by
open outcry in accordance with this regulation and Rule 332.00. A bid or
offer for a ratio spread is subject to partial acceptance in ratioed units
in accordance with Rule 336.00.
8. that for spread transactions at a yield difference the following conditions
are met:
a. one side of the spread is a yield-based futures contract, i.e. where the
final contract settlement price is calculated by subtracting a yield
measurement from 100.
b. the sides are priced at the price spread implied by the yield spread.
c. the prices for Short, Medium, and Long Term U.S. Treasury Note and U.S.
Treasury Bond futures are those implied for 8% coupon, semi-annual non-
amortizing instruments with exactly two, five, ten, and twenty years
remaining maturity as calculated and published by the Exchange.
d. the prices for the yield-based futures contracts are calculated by
subtracting the yield from 100.
e. the yields are quoted in increments no smaller than one half basis
point.
f. the Regulatory Compliance Committee has designated the spread for
trading on a yield basis.
Brokers may not couple separate orders and execute them as a spread, nor may a
broker take one part of a spread for his own account and give the other part to
a customer on an order. (08/01/00)
352.01A Unacceptable Spread Orders - Certain orders that involve the trading
of different contracts, when the contracts involved are traded in different
designated trading pits and when the resulting positions do not offset to reduce
economic risk, do not represent legitimate spreading transactions and are
specifically deemed to be unacceptable orders. Such transactions must be
Ch3 Floor Practices
-------------------
executed on separate orders in the respective designated trading areas. The
foregoing provisions apply to, but are not limited to, the following examples:
There are separate trading pits for options and futures. An order to buy a
put (or sell a call) and sell the underlying future establishes a short
position only, and therefore there is no offsetting feature. An order to
sell a put (or buy a call) and buy the underlying future establishes a long
position only, and therefore there is no offsetting feature. These orders
are unacceptable as spread orders. (08/01/94)
352.02 Joint Venture Intermarket and Inter-Regulatory Spreads - -
Notwithstanding any other provisions of these Rules and Regulations to the
contrary, the following principles shall apply to spreading transactions
involving Joint Venture Products.
1. Futures spreads involving CBOE 50 and/or CBOE 250 Stock Index futures
contracts may be bid or offered at a differential and if so bid or offered,
such spreads may not be separated into their individual components.
2. Inter-Regulatory spread strategies involving CBOE 50 or CBOE 250 Stock Index
futures spread against Standard and Poor's 100 or Standard and Poor's 500
options traded on the Chicago Board Options Exchange ("CBOE") may be bid or
offered at a differential. If such spreads are bid or offered at a
differential, they may not be separated into individual parts. The futures
side of such spreads must be priced within the daily quotation range. The
price of the options side of such spreads shall not touch the best bid or
offer contained in the CBOE order book but may touch but shall not go
through the current best bid or offer prevailing in the trading crowd. The
prices for both sides of such spreads shall be disseminated immediately and
shall be identified as a spread. The price differential shall also be
disseminated immediately.
3. Inter-Regulatory spreads involving CBOE 50 and/or CBOE 250 Stock Index
futures contracts spread against Standard and Poor's 100 and/or Standard and
Poor's 500 options may be executed in any location in the Standard and
Poor's 100 or the Standard and Poor's 500 option pit(s).
4. Joint Venture inter-regulatory or intermarket spreads may not be used to
establish opening prices for Joint Venture futures contracts. (08/01/94)
360.01 Pit Supervisory and Enforcement Authority of the Respective Pit
Committees - In conjunction with the Floor Conduct Committee, it shall be the
function and duty of the Pit Committees to supervise and enforce decorum within
their respective trading pits.
1. Supervision and Enforcement of Pit Decorum.
Each Pit Committee shall have the authority over its respective pit to
issue a decorum ticket to any individual who has committed a decorum
offense within the pit. This authority is in addition to the authority
given to the Floor Conduct Committee in Regulation 519.01 A ticket may be
initiated by any member of the Pit Committee in accordance with the Pit
Committee member's duty to enforce decorum standards within the pit.
Additionally, any Exchange member may request that a ticket be initiated
for an alleged decorum offense that occurs within a trading pit by
requesting that a Pit Committee member in that pit issue a ticket.
Non-members may request that a ticket be initiated for alleged decorum
violations involving physical abuse or harassment.
For decorum offenses that do not involve a physical altercation, disorderly
conduct or harassment, the ticket will reflect a warning or summary fine in
accordance with Ruling 520.00A. The recipient of a summary fine may pay the
summary fine or request a hearing before the Floor Conduct Committee in
accordance with Regulations 540.02 through 540.05. Tickets involving a
physical altercation, disorderly conduct or harassment will be referred to
the Floor Conduct Committee, which will hold a hearing. The initiator of
the ticket, the recipient of the ticket and any party involved in the
decorum incident may be required to appear at the hearing held before the
Floor Conduct Committee. Failure to comply with a request to appear before
the Floor Conduct Committee may be deemed an act detrimental to the welfare
of the Exchange.
Each ticket issued by a Pit Committee shall be authorized by two Pit
Committee members, including at least one officer. Tickets shall be
submitted to designated Exchange staff who shall give the individual
written notification of the ticket, including any summary fine or
requirement to appear before the Floor Conduct Committee.
It shall be the function and duty of the Pit Committees to supervise and enforce
trading etiquette within their respective trading pits.
2. Supervision and Enforcement of Pit Etiquette Standards
Each pit, by and through its Pit Committee, shall be responsible for
determining the nature and extent of its pit etiquette standards, subject
to the approval of the Floor Governors Committee. A pit etiquette ticket
may be initiated by any member of the Pit Committee in accordance with the
Pit Committee member's duty to enforce etiquette standards within the pit.
Additionally, any Exchange member may request that a member of the Pit
Committee issue an etiquette ticket to any member who had allegedly
violated the pit's etiquette standards. Each etiquette ticket must,
however, be authorized by an officer of the Pit Committee to be valid. An
officer who initiates a ticket cannot also authorize the ticket.
The issuance of an authorized etiquette ticket does not, in itself,
constitute a violation of an Exchange Rule or Regulation. However, the Pit
Committee can, at any time, choose to refer an egregious etiquette
violation, or a pattern of etiquette violations, to the Floor Governors
Committee. Prior to making such referral, the recipient of the ticket will
be required to appear before the Pit Committee. A simple majority of a Pit
Committee quorum shall be required to refer an etiquette matter to the
Floor Governors Committee.
Tickets referred to the Floor Governors Committee will serve as the basis of
OIA's investigation, and the tickets may be submitted as evidence in support of
OIA's case before the Floor Governors Committee. However, OIA will conduct its
own distinct investigation of the matter. The Floor Governors Committee may
impose disciplinary action pursuant to the general provisions of Exchange Rule
500.00 (Inequitable Proceedings) and/or Rule 504.00 (Acts Detrimental to the
Welfare of the Association). (02/01/04)
Ch3 Floor Practices
-------------------
Ch3 Floor Practices
-------------------
Ch3 Floor Practices
-------------------
[Download Table]
================================================================================
Chapter 4
Futures Commission Merchant
================================================================================
Ch4 General.....................................................
400.00 Commission Merchant..............................
401.00 Corporations and Partnerships....................
401.01 Partnerships and Corporations....................
401.02 Registration of Membership for Corporation.......
401.03 Registration of Membership for Partnership.......
402.00 Business Conduct Committee.......................
403.00 Testimony and Production of Books and Papers.....
403.01 Approval of Customer Accounts....................
403.02 Financial Questionnaire..........................
403.03 Audits...........................................
403.04 Reduction of Capital.............................
403.05 Restrictions on Operations.......................
403.07 Financial Requirements...........................
403.08 Expulsion from a Designated Contract Market......
404.00 Advertising......................................
405.00 Trade Checking Penalties.........................
Ch4 Customer Accounts...........................................
414.00 Trades of Non-Clearing Members...................
415.00 Trades of Non-Clearing Members...................
416.01 Correspondent Accounts...........................
416.02 Members Responsible for Correspondents...........
416.02A Correspondents...................................
416.04 Correspondent Accounts...........................
416.05 Limitations On Acceptance of Agent Business......
417.01 Notice and Processing of Transfer of Accounts....
418.01 Non-Members' Accounts............................
419.00 Trading for Employees............................
420.00 Trading by Employees.............................
420.01 Gratuities.......................................
420.01A Elective Officers and Non-Member Directors.......
421.00 Confirmation to Customers........................
421.01 Confirmations....................................
421.02 Options Confirmations............................
421.03 Average Price Orders.............................
421.05 Allocation of Exercise Notices...................
422.00 Investment Company Accounts......................
423.00 Discretionary Orders.............................
423.01 Discretionary Accounts...........................
423.01B Discretionary Trading............................
423.02 Presumption That Trades Are Pursuant to
Discretionary Authority........................
423.03 Supervision of Discretionary Trading by
Employees......................................
423.04 Customer Orders During Concurrent Sessions.......
423.05 Anti-Money Laundering ...........................
Ch4 Position Limits and Reportable Positions....................
425.01 Position Limits..................................
425.02 Bona Fide Hedging Positions......................
425.03 Reporting Requirements For Bona Fide or
Economically Appropriate
[Download Table]
Hedging Positions in Futures in Excess of
Limits........................................
425.04 Exemptions From Position Limits..................
425.05 Exemption from Aggregation for Position Limit
Purposes......................................
425.06 Position Accountability for U.S. Treasury Bonds..
425.07 Position Accountability for Long-Term,
Medium-Term and Short-Term Treasury Notes.....
425.08 Position Accountability for 30-Day Fed Funds
Contracts.....................................
425.09 Position Accountability for mini-sized U.S.
Treasury Bonds................................
425.11 Position Accountability in CBOT 10-Year Municipal
Note Index Futures............................
425.12 Position Accountability in CBOT 10-Year Interest
Rate Swap Contracts...........................
425.13 Position Accountability in CBOT 5-Year Interest
Rate Swap Contracts...........................
425.14 Position Accountability in Bond Futures .........
425.15 Position Accountability in Bobl Futures .........
425.16 Position Accountability in Schatz Futures .......
430.00 Deposits by Customers............................
431.00 Margins..........................................
431.00A Permit Holder Interpretation.....................
431.01 Margins - Non-Clearing Members...................
431.02 Margin Requirements..............................
431.02A Hedging Transactions.............................
431.03 Margin on Futures................................
431.03B Margins..........................................
431.04 Notice of Undermargined Omnibus Accounts.........
431.05 Margin on Options................................
431.06 Margin on Options - Non-Clearing Members.........
432.00 Customers' Securities............................
433.00 Agreement for Use of Securities..................
433.01 Construction of Rules 432.00 and 433.00..........
Ch4 Transfer Trades/Exchange Service Fees..........................
443.00 Exempt Transactions..............................
444.01 Transfer Trades; Exchange of Futures for
Physicals and Give-up Transactions............
444.01A Transfer Trades and Inter-Market Spreads.........
444.01B Prohibition on Exchange of Futures for Cash
Commodities Swap or OTC Ag Transactions
Involving Multi-Parties...........
444.02 Clearance of Exchanges of Futures for
Physicals, Swap, or OTC Ag Option
Transactions .................................
444.03 Transfer Trades in a Delivery Month..............
444.04 Exchange of Futures For, or in Connection with,
Swap Transactions Involving U.S. Treasury Bond,
U.S. Treasury Note, Dow Jones - AIG Commodity
Index(SM), Municipal Note Index, 10-year and
5-year Interest Rate Swap Futures.
444.05 Transfer Trades for the purpose of offsetting
mini-sized Dow(SM) Futures & CBOT DJIA
Futures.......................................
444.06 Exchange of Futures For, or in Connection with,
OTC Agricultural Option Transactions Involving
Corn, Soybean, Soybean Meal, Soybean Oil
Wheat, Oat and Rice Futures ..................
450.00 Exchange Service Fees............................
450.01 Exchange Service Fees............................
450.01A Exchange Service Fees............................
450.02 Member's Own Account and Member Firm's Account...
450.02A Member's Own Account.............................
450.02B Member's Own Account in Trust....................
450.02C(i) Member Firm's Proprietary Account................
450.02C(ii) Individual Member's Trading Account..........
450.02C(iii) Firm Owner Trading a Proprietary Account......
450.02D Member Firm Affiliates and Designated Passive
Investor Entities ............................
450.02E Joint Accounts ..................................
450.02F Transaction Fees for e-cbot Member Firms ........
450.02G Floor Brokerage Fees for Firm-Owned Memberships
and Membership Interests......................
450.02H e-cbot Trades executed by a Non-Member Terminal
Operator......................................
450.02I Category (3) Fees................................
450.02J Transaction Fee Status of CBOE Exercisers........
450.04 Exchange Service Fees - Adjustments..............
450.05 Fees.............................................
450.06 Member Fee Cap Clarification.....................
Ch4 Adjustments.................................................
460.01 Errors and Mishandling of Orders.................
460.02 Checking and Reporting Trades....................
460.03 Failure to Check Trades..........................
460.04 Price of Execution Binding.......................
Ch4 Customer Orders.............................................
465.01 Records of Customers' Orders.....................
465.02 Application and Closing Out of Offsetting
Long and Short Positions......................
465.02A Exchange's No Position Stance on FCM's
Internal Bookkeeping Procedures...............
465.03 Orders and Cancellations Accepted On A
'Not Held' Basis..............................
465.04 Records of Floor Order Forms.....................
465.05 Floor Order Forms................................
[Download Table]
465.06 Broker's Copy of Floor Orders....................
465.07 Designation of Order Number Sequences............
465.08 Post-Execution Allocation........................
466.00 Orders Must be Executed in the Public Market.....
Ch4 Offices and Branch Offices..................................
475.00 Offices and Branch Offices.......................
Ch4 APs and Other Employees.....................................
480.01 APs..............................................
480.02 Employers Responsible for APs....................
480.09 Other Employees..................................
480.10 Supervision......................................
Ch4 Options Transactions........................................
490.00 Application of Rules and Regulations.............
490.02 Option Customer Complaints.......................
490.03 Supervision Procedures...........................
490.03A Introducing Brokers Guaranteed by Member
FCMs/Supervision Procedures....................
490.05 Disclosure.......................................
490.06 Promotional Material.............................
490.07 Sales Communication..............................
490.09 Reports by Commission Merchants..................
================================================================================
Chapter 4
Futures Commission Merchant
================================================================================
Ch4 General
400.00 Commission Merchant - A member who makes a trade, either for another
member or for a non-member, but who makes the trade in his own name and becomes
liable as principal as between himself and the other party to the trade. 13
(08/01/94)
401.00 Corporations and Partnerships - (See 230.00) (08/01/94)
401.01 Partnerships and Corporations - Trading Authority - (See 230.01)
(08/01/94)
401.02 Registration of Membership for Corporation - (See 230.02) (08/01/94)
401.03 Registration of Membership for Partnership - (See 230.06) (08/01/94)
402.00 Business Conduct Committee - (See 542.00) (08/01/94)
403.00 Testimony and Production of Books and Papers - (See 545.00)
(08/01/94)
403.01 Approval of Customer Accounts - No firm or any of its wholly-owned
affiliates shall carry customer accounts without prior approval obtained either
at the time of registration under Regulation 230.02 or 230.06 or prior to change
in the nature of business previously authorized. In order to originate and carry
on a business with public customers, a firm is subject to the minimum capital
requirements established by the Financial Compliance Committee.
No member sole proprietorship shall carry customer accounts without prior
approval. A member requesting approval to carry customer accounts shall submit
a certified financial report of the sole proprietorship, prepared by an
independent Certified Public Accountant as of a date which is no more than 90
days prior to the date of submission. In order to originate and carry on a
business with public customers, a sole proprietorship is subject to the minimum
capital requirements established by the Financial Compliance Committee. 1780
(08/01/94)
403.02 Financial Questionnaire - (See 285.01) (08/01/94)
403.03 Audits - (See 285.02) (08/01/94)
403.04 Reduction of Capital - (See 285.03) (08/01/94)
403.05 Restrictions on Operations - (See 285.04) (08/01/94)
403.07 Financial Requirements - (See 285.05) (04/01/97)
403.08 Expulsion from a Designated Contract Market - Upon review of the
decision or record which resulted in a person or a firm's expulsion from
membership in, or the privileges of membership on, any recognized domestic or
foreign board of trade or securities exchange, should the Board of Directors
find that there exists a demonstrable connection between the type of conduct
which resulted in the expulsion and the protection afforded the Exchange, its
members and customers through a trading prohibition against the expelled
individual or firm, the Board may direct that no member or member firm may carry
any account, accept an order, or handle a transaction, relating to futures
contracts or options on futures contracts traded on the Exchange, for or on
behalf of such expelled person or firm. Such an order may by modified or revoked
by a vote of two-thirds of the Directors. (08/01/94)
404.00 Advertising - (See 287.00) (08/01/94)
405.00 Trade Checking Penalties - (See 563.00) (08/01/94)
Ch4 Customer Accounts
414.00 Trades of Non-Clearing Members - - (See 286.00) and (See 431.00)
(08/01/94)
415.00 Trades of Non-Clearing Members - (See 333.00) (08/01/94)
416.01 Correspondent Accounts - Each registered eligible business
organization must maintain a complete listing of all correspondent accounts
carried on its books. Such list shall be promptly provided to authorized
representatives of the Association. Information for each correspondent account
must include name and address, classification of the account as customer or
house, regulated or non-regulated. 1780A (04/01/98)
416.02 Members Responsible for Correspondents - Members doing business with
correspondents must keep themselves well informed regarding their financial
standing and shall immediately report to the Secretary any information that does
in any way indicate that a correspondent is insolvent, or threatened with
insolvency, or guilty of any irregularities or practices affecting the good name
of the Association. 1043 (08/01/94)
416.02A Correspondents - In May, 1935, the Rules Committee ruled that the word
"correspondents" as it is used in Regulation 416.02 means the following:
1. A correspondent, under the provisions of Regulation 170.07 is a person,
firm or corporation (member or non-member) transacting a banking or a
brokerage business connected by telephone or telegraphic wire or wireless
connection with the office of a member.
2. A non-clearing member who solicits and turns over security or future
delivery orders to a clearing member for execution, is a correspondent of
the clearing member whether or not his office is connected by telephonic,
telegraphic wire connections to that of the clearing member.
3. Under the provisions of Regulation 416.02, any member doing business with
correspondents has the responsibilities therein outlined. 17R (08/01/94)
416.04 Correspondent Accounts - Consistent with its duties under Rule 542.00,
the Business Conduct Committee may require that the identities and positions of
the beneficial owners of any correspondent account be immediately disclosed to
the Business Conduct Committee or to authorized representatives of the
Association. If disclosure is not provided and the Business Conduct Committee
determines that such failure to provide information is an impediment to the
Committee in the discharge of its duties under Rule 542.00, appropriate summary
action may be ordered up to and including immediate liquidation of all or a
portion of the positions in the correspondent account. Any such summary action
shall be taken in accordance with the procedures set forth in Regulation 540.06.
(08/01/94)
416.05 Limitations On Acceptance of Agent Business - No member FCM shall
solicit or accept any options order for execution on the Exchange which has been
solicited, accepted or serviced by any person who is not registered as an
associated person of such member FCM. Provided, however, that at such time as
any futures association registered under Section 17 of the Commodity Exchange
Act has determined to provide for the regulation of the options-related activity
of its members in a manner equivalent to that required of contract markets by
the Commission, any FCM member of such futures association may solicit or accept
options orders for execution on the Exchange in the same manner as FCMs which
are members of the Exchange.
Further, no member FCM may solicit or accept options orders from any person whom
it has reason to believe may be soliciting options orders in contravention of
this Regulation or Regulation 33.3 or the Commission. (08/01/94)
417.01 Notice and Processing of Transfer of Accounts - When a commission
merchant goes out of business, or closes one or more offices, or withdraws
ordinary facilities for transacting business from one or more offices, the
following shall apply:
Upon the transfer of customer accounts in commodity futures contracts by a
member or registered eligible business organization, to any other futures
commission merchant (member or non-member), the transferor shall immediately
give written notice of the transfer to the Secretary of the Association. Such
written shall notice shall contain: (1) the name and address of the transferee;
(2) the date of the transfer; (3) the number of customer accounts; (4) the net
equity of customer funds, and (5) a statement certified by the member, or by a
general partner or executive officer whose membership is registered for the
transferor, that (a) the transferor has provided prior notice of the transfer to
each customer whose account is thus transferred and (b) the transfer has been
preceded by reasonable investigation of the transferee by the transferor and
that the transferee is a suitable recipient of the transferred accounts.
Upon the transfer of customer accounts by a non-member of the Association, to
any member or registered eligible business organization, the transferee shall
immediately notify the Secretary in writing that such transfer has occurred and
such written notice shall identify the transferor, the date of transfer, the
number of customer accounts, and the net equity of customer funds being
transferred to such member or registered eligible business organization.
A member or registered eligible business organization, acting as a transferor or
transferee, must be able to facilitate a bulk transfer of accounts by use of an
automated system as prescribed by the Association.
This regulation applies to all transfers of customer accounts involving members
or registered eligible business organizations, who or which are closing
facilities unless they are initiated at the unsolicited request of the
customers. 1809C (04/01/98)
418.01 Non-Members' Accounts - When a non-clearing member has trading
authority over a non-members account carried on a disclosed basis he shall so
inform the clearing member carrying the account.
Non-clearing members may be permitted to carry both omnibus and disclosed
accounts with clearing members provided that when the non-clearing member used
both types of accounts, he shall guarantee the clearing member carrying any
disclosed accounts against any loss in such accounts.
The non-clearing member must notify the carrying member that he is carrying both
omnibus and disclosed accounts. 1819 (08/01/94)
419.00 Trading for Employees - No member shall accept orders or clear trades
for a non-member who is employed by another member nor shall another member
accept orders or clear trades for a member who is employed by another member
when the name of the employer appears in the transaction. 205 (08/01/94)
420.00 Trading by Employees - No member shall accept marginal accounts of any
employee, whether member or non-member, of the Association or of the Clearing
Services Provider or of another member unless written consent of the employer be
first obtained. 206 (01/01/04)
420.01 Gratuities - (See 206.02) (08/01/94)
420.01A Elective Officers and Non-Member Directors - For purposes of Rule
420.00, Elective Officers and non-member Directors of the Association shall not
be considered employees of the Association. (08/01/94)
421.00 Confirmation to Customers - A commission merchant who makes a trade
for a member or non-member customer shall confirm the trade to the customer no
later than the business day following the day upon which the transaction was
consummated. Such confirmation shall be in writing and shall show the commodity
or security bought or sold, the amount, the price, and the name of the other
party to the contract, and, in the case of a commodity, the delivery month. A
non-resident member may give to his customer the name of his resident commission
merchant in lieu of the name of the other party to the contract, subject to the
right of the customer to receive the name of the other party to the contract
upon request.
Where a trade is made by a branch office of a resident member, such branch
office being outside of Illinois, the branch office may confirm the trade to the
customer without giving the name of the other party to the contract, provided
the confirmation has prominently printed or stamped thereon the words, "Name of
other party to contract furnished on request." 207 (08/01/94)
421.01 Confirmations - A confirmation of a commission merchant to the
customer need not contain the name of the other party to the contract, provided
the confirmation has prominently printed or stamped thereon the words, "name of
other party to contract furnished on request." 1845 (08/01/94)
421.02 Options Confirmations -
(a) A commission merchant who makes an options trade for a member or non-member
customer shall confirm the trade to the customer no later than the business
day following the day upon which the transaction was consummated. Such
confirmation shall be in writing and shall indicate the customer's account
identification number; a separate listing of the amount of the premium and
all other commissions, costs and fees; the option series; the expiration
date; and the date of the transaction.
(b) In addition, upon the expiration or exercise of any commodity option, each
commission merchant must furnish to each customer holding any such option
which has expired or been exercised, not later than the next business day,
a written confirmation statement which shall include the date of such
occurrence, a description of the option involved, and in the case of
exercise, the details of the futures position which resulted therefrom.
(c) Notwithstanding paragraphs (a) and (b) of this Regulation, a commodity
options transaction that is executed for a commodity pool (investment
company) need be confirmed only to the operator of the commodity pool.
(d) With respect to any account controlled by any person other than the
customer for whom the account is carried, each commission merchant shall
promptly furnish in writing to such other person the information set forth
in paragraphs (a) and (b) of this Regulation. (08/01/94)
421.03 Average Price Orders - Member firms may confirm to customers an
average price when multiple execution prices are received on an order or series
of orders for futures, options or combination transactions. An order or series
of orders executed during the same trading day at more than one price may only
be averaged pursuant to this regulation if each order is for the same account or
group of accounts and for the same commodity and month for futures, or for the
same commodity, month, put/call and strike for options.
Any member or member firm that accepts an order pursuant to this regulation must
comply with requirements of this regulation and all order recordation
requirements.
Upon receipt of an execution at multiple prices for any order subject to this
regulation, an average price will be computed by multiplying the execution
prices by the quantities at those prices divided by the total quantities. An
average price for a series of orders will be computed based on the average
prices of each order in that series.
Each Clearing firm that confirms to a customer an average price, must indicate
on the confirmation and monthly statement that the price is not an execution
price. (10/01/01)
421.05 Allocation of Exercise Notices - The Clearing Services Provider, in an
equitable, random manner, shall assign exercise notices tendered by options
purchasers to clearing members holding open short options positions; and each
clearing member and commission merchant, in an equitable, random or proportional
manner, shall assign exercise notices it receives on behalf of customer accounts
to such customer accounts holding open short options positions. (01/01/04)
422.00 Investment Company Accounts - (See 507.00) (08/01/94)
423.00 Discretionary Orders - No member or registered eligible business
organization shall permit any employee, whether member or non-member, to
exercise discretion in the handling of any transaction for a customer for
execution on this Exchange, unless prior written authorization for the exercise
of such
discretion has been received. A discretionary order is defined as an
order that lacks any of the following elements: the commodity, year and delivery
month of the contract, number of contracts, and whether the order is to buy or
sell.
All partners of a registered partnership, all managers and members of a
registered limited liability company and all officers of a registered
corporation, shall be considered employees of their firm or corporation for
purposes of these discretionary rules and regulations. 151 (04/01/98)
423.01 Discretionary Accounts - It shall be a violation of this regulation
for any member or registered eligible business organization
1. To accept or carry an account over which the member or employee thereof
exercises trading authority or control for another person in whose name the
account is carried, without-
a. obtaining a signed copy of the Power of Attorney, trading
authorization, or other document by which such trading authority or
control is given;
b. sending direct to the person in whose name the account is carried a
written confirmation of each trade as provided in Rule 421.00 and a
monthly statement showing the exact position of the account, including
all open trades figured to the market; and
c. reflecting the discretionary nature of the account on all statements
sent to the account owner.
2. To accept or carry an account over which any third party individual or
organization other than the person in whose name the account is carried
exercises trading authority or control, without -
a. obtaining a signed copy of the Power of Attorney, trading
authorization, or other document by which such trading authority or
control is given; and
b. obtaining a written acknowledgment from the person in whose name the
account is carried that he has received a copy of the account
controller's disclosure document, prepared pursuant to CFTC Regulation
4.31, or a written statement explaining why the account controller is
not required to provide a disclosure document to the customer.
(The above acknowledgement of paragraph b. need not be obtained (i) when
the person in whose name the account is carried and the individual given
trading authority or control are of the same family; or (ii) when the
person given trading authority or control is (A) a member, (B) an officer,
partner, member, manager or managerial employee of the eligible business
organization carrying the account; (C) a bank or trust company organized
under federal or state laws or (D) an insurance company regulated under the
laws of any state; or (iii) when the account is carried in the name of (A)
an employee benefit plan subject to ERISA or organized under the laws of
any state (B) an investment company registered under the Investment Company
Act of 1940, (C) a bank or trust company organized under federal or state
law, (D) an insurance company regulated under the laws of any state; or (E)
an exempt organization, as defined in section 501 (c) (3) of the Internal
Revenue Code, with net assets of more than $100 million.)
3. To accept or carry the account of a non-member who has given trading
authority to a member unless the member carrying the account requires that
all orders entered for the account be executed by an individual or
individuals other than the member to whom such trading authority is given.
This requirement shall not apply where the non-member customer and the
member having such trading authority are of the same family. This
Regulation shall only apply to open outcry Regular and open outcry Night
Trading Hours.
4. For purposes of this Regulation, a person does not exercise trading
authority or control if the person in whose name the account is carried or
the account controller specifies (1) the precise commodity interest to be
purchased or sold, and (2) the exact amount of the commodity interest to be
purchased or sold. Provided the foregoing provisions are met, the
provisions of this Regulation shall not apply to discretion as to the price
at which or the time when an order shall be executed.
The provisions of this Regulation relate only to transactions executed on this
Exchange. 1990 (04/01/98)
423.01B Discretionary Trading - The increasing utilization of trading by
programmed recommendations, whether by computer, charts or by any means, has
brought several questions to the
Rules Committee regarding discretion. These methods tend to create situations
requiring the use of discretion and the Rules Committee recommends that member
firms treat all such accounts as discretionary accounts unless the member can be
certain that the customer(s) has given specific instructions, including price
limits and any subsequent price changes relative to orders placed in connection
with such trading.
In connection with the above, your attention is called to Rule 423.00 and
Regulations 423.01 through 423.03 all having to do with the handling of
discretionary accounts. 41R (08/01/94)
423.02 Presumption That Trades Are Pursuant to Discretionary Authority -
Every trade in an account over which any individual or organization other than
the person in whose name the account is carried exercises trading authority or
control shall be rebuttably presumed to have been made pursuant to such trading
authority or control. The Power of Attorney, trading authorization or other
document by which any individual or organization other than the person in whose
name an account is carried exercises trading authority or control over such
account can be terminated only by a written revocation signed by the person in
whose name the account is carried; by the death of the person in whose name the
account is carried; or, where the individual or organization that exercises
authority or control over the account is the member carrying the account or an
employee thereof, by written notification from the member to the person in whose
name the account is held that such member will no longer act pursuant to such
trading authorization as of the date provided in the notice. 1991 (08/01/94)
423.03 Supervision of Discretionary Trading by Employees - A Power of
Attorney or trading authorization signed by the customer and naming the employee
to whom trading authority is given will be considered written authorization of
the customer with respect to any discretionary transaction handled by such
employee pursuant to such Power of Attorney or trading authorization.
Each account with respect to which an employee has discretionary authority must
be given daily supervision by the employer, or by a partner or officer or such
other person designated as a compliance officer if the employer is an eligible
business organization, to see that trading in such account is not excessive in
size or frequency in relation to financial resources in that account. The
provisions of this paragraph shall not apply where only one employee of an
eligible business organization member firm has discretionary authority if that
individual is also the only principal who supervises futures trading activity.
No employee who has not been registered for a minimum of two continuous years as
an Associated Person (AP) under CFTC Regulations may exercise the discretion
permitted by Rule 423.00. The foregoing requirement may be waived in particular
cases by the Business Conduct Committee upon a showing by the applicant of
experience equivalent to such a two-year registration. 1992 (04/01/98)
423.04 Customer Orders During Concurrent Sessions - For orders involving
concurrently traded contracts, the customer may choose to designate whether the
order is to be executed in the open outcry market or on e-cbot. (01/01/04)
423.05 - Anti-Money Laundering - Each member futures commission merchant
shall develop and implement a written anti-money laundering program, approved in
writing by senior management, that is reasonably designed to achieve and monitor
the member FCM's compliance with the applicable requirements of the Bank Secrecy
Act (31 U.S.C. 5311, et. seq.), and the implementing regulations promulgated
thereunder by the Department of the Treasury and, as applicable, the Commodity
Futures Trading Commission. Such anti-money laundering program shall, at a
minimum:
1. Establish and implement policies, procedures and internal controls
reasonably designed to assure compliance with the applicable provisions
of the Bank Secrecy Act and the implementing regulations thereunder;
2. Provide for independent testing for compliance to be conducted by
member FCM personnel or by a qualified outside party;
3. Designate an individual or individuals responsible for implementing and
monitoring the day-to day operations and internal controls of the
program; and
4. Provide ongoing training of appropriate personnel.
Member FCMs must also supervise and ensure that their guaranteed introducing
brokers are in compliance with the anti-money laundering provisions contained
in this Regulation. (06/01/03)
Ch4 Position Limits and Reportable Positions
425.01 Position Limits -
(a) For the purposes of this Regulation, the following are definitions of titles
used in position limit chart-
Spot Month - Spot month futures-equivalent position limit net long or net
short effective at the start of trading on the first business day prior to
the first trading day of the spot month.
Single Month - Futures-equivalent position limit net long or net short in
any one month other than the spot month.
All Months - Position limit net long or net short in all months and all
strike prices combined. Note: Long futures contracts, long call options, and
short put options are considered to be on the long side of the market while
short futures contracts, long put options, and short call options are
considered to be on the short side of the market. For each commodity, the
futures-equivalents for both the options and futures contracts are
aggregated to determine compliance with the net long or net short same side
position limits.
Reportable Futures Level - Reportable futures position in any one month.
Reportable Options Level - Reportable options position in any one month in
each option category. Note: Option categories are long call, long put, short
call, and short put.
Net Equivalent Futures Position - Each option contract has been adjusted by
the prior day's risk factor, or delta coefficient, for that option which has
been calculated by the Board of Trade Clearing Corporation.
For the purpose of this Regulation:
(i) An option contract's futures-equivalency shall be based on the prior
day's delta factor for the option series, as published by the Board of
Trade Clearing Corporation. For example, 8 long put contracts, each
with a delta factor of 0.5, would equal 4 futures-equivalent short
contracts.
(ii) Long futures contracts shall have a delta factor of +1, and short
futures contracts shall have a delta factor of -1.
(iii) Long call options and short put options shall have positive delta
factors.
(iv) Short call options and long put options shall have negative delta
factors.
(v) An eligible option/option or option/futures spread is defined as an
intra-month or inter-month position in the same Chicago Board of Trade
commodity in which the sum of the delta factors is zero.
(b) Except as provided in Regulations 425.03, 425.04 and 425.05, the maximum
positions which any person may own, control, or carry are as follows:
(Note: All position limits and reportable positions are in number of contracts
and are based on futures or *Net Equivalent Futures Positions.
*Please see section (a) of this Regulation for definition.
[Enlarge/Download Table]
------------------------------------------------------------------------------------------------------------------------------------
*SPOT *SINGLE *ALL *REPORTABLE *REPORTABLE
CONTRACT MONTH MONTH MONTH FUTURES LEVEL OPTIONS LEVEL
------------------------------------------------------------------------------------------------------------------------------------
Bund None None None 1,000
------------------------------------------------------------------------------------------------------------------------------------
Bobl None None None 800
------------------------------------------------------------------------------------------------------------------------------------
Schatz None None None 500
------------------------------------------------------------------------------------------------------------------------------------
10-Year Interest Rate Swap None None None 500 500
------------------------------------------------------------------------------------------------------------------------------------
5-Year Interest Rate Swap None None None 500 500
------------------------------------------------------------------------------------------------------------------------------------
CBOT Dow Jones Industrial
Average/sm/ Index None None 50,000 100 100
(aggregate
DJIA/sm/
limit,
see #9)
------------------------------------------------------------------------------------------------------------------------------------
CBOT mini-sized Dow/sm/ None None 50,000 100 100
($5 multiplier) (aggregate
DJIA/sm/
limit,
see #9)
------------------------------------------------------------------------------------------------------------------------------------
CBOT Dow Jones - AIG
Commodity Index(SM) None None 15,000 25
------------------------------------------------------------------------------------------------------------------------------------
CBOT 5,000 OZ. Silver 1,500 6,000 6,000 150
------------------------------------------------------------------------------------------------------------------------------------
CBOT 100 OZ. Gold 3,000 6,000 6,000 200
------------------------------------------------------------------------------------------------------------------------------------
CBOT mini-sized Silver 1,500 1,500 3,000 750
------------------------------------------------------------------------------------------------------------------------------------
CBOT mini-sized Gold 4,000 4,000 6,000 600
------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds None None None 1,000 1,000
------------------------------------------------------------------------------------------------------------------------------------
mini-sized U.S. Treasury Bonds None None None 1,000
------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes (5 yr.) None None None 800 800
------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes (6 1/2-10 yr.) None None None 1,000 1,000
------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes (2 yr.) None None None 500 500
------------------------------------------------------------------------------------------------------------------------------------
30 Day Fed Fund None None None 300 300
------------------------------------------------------------------------------------------------------------------------------------
10. Year Municipal Note Index 5,000 None 5,000 100
------------------------------------------------------------------------------------------------------------------------------------
mini-sized Eurodollars 10,000 10,000 10,000 400
------------------------------------------------------------------------------------------------------------------------------------
Corn and CBOT mini-sized Corn 600 5,500 9,000 150 150
(aggregate (aggregate, (aggregate, (individual,
see #10) see #1, see #1, 3, 10) see #11
10)
------------------------------------------------------------------------------------------------------------------------------------
Soybeans and 600 3,500 5,500 100 100
CBOT mini-sized Soybeans (aggregate (aggregate, (aggregate, (individual,
see #10) see #1, see #1, 4, 10) see #11
10)
------------------------------------------------------------------------------------------------------------------------------------
Wheat and
CBOT mini-sized Wheat 600 3,000 4,000 100 100
(aggregate (aggregate, (aggregate, (individual,
see #8, 10) see #1, see #1, 7, 10) see #11
10)
------------------------------------------------------------------------------------------------------------------------------------
Oats 600 1,000 1,500 60 60
(see #1) (see #1, 6)
------------------------------------------------------------------------------------------------------------------------------------
Rough Rice 600 1,000 1,000 50 50
(see #5) (see #2)
------------------------------------------------------------------------------------------------------------------------------------
Soybean Oil 540 3,000 4,000 200 200
(see #1,7) (see #1,7)
------------------------------------------------------------------------------------------------------------------------------------
Soybean Meal 720 3,000 4,000 200 200
(see #1,7) (see #1,7)
------------------------------------------------------------------------------------------------------------------------------------
#1 Additional futures contracts may be held outside of the spot month as part of
futures/futures spreads within a crop year provided that the total of such
positions, when combined with outright positions, do not exceed the all months
combined limit. In addition, a person may own or control additional options in
excess of the futures-equivalent limits provided that those option contracts in
excess of the futures-equivalent limits are part of an eligible option/futures
spread.
#2 No more than 500 futures-equivalent contracts net on the same side of the
market are allowed in a single month in all strike prices combined. Additional
options contracts may be held as part of option/options or option/futures
spreads between months within the same crop year provided that the total of such
positions, when combined with outright positions, does not exceed the all
months combined limit. The futures-equivalents for both the options and futures
contracts are aggregated to determine compliance with these net same side single
month position limits.
#3 No more than 5,500 futures-equivalent contracts net on the same side of the
market are allowed in a single month in all strike prices combined. Additional
options contracts may be held as part of option/option or option/futures spreads
between months within the same crop year provided that the total of such
positions, when combined with outright positions, does not exceed the all months
combined limit. The futures-equivalents for both the options and futures
contracts are aggregated to determine compliance with these net same side single
month position limits.
#4 No more than 3,500 futures-equivalent contracts net on the same side of the
market are allowed in a single month in all strike prices combined. Additional
options contracts may be held as part of option/option or option/futures spreads
between months within the same crop year provided that the total of such
positions, when combined with outright positions, does not exceed the all months
combined limit. The futures-equivalents for both the options and futures
contracts are aggregated to determine compliance with these net same side single
month position limits.
#5 In the last five trading days of the expiring futures month, the speculative
position limit for the July futures month will be 200 contracts and for the
September futures month the limit will be 250 contracts.
#6 No more than 1,000 futures-equivalent contracts net on the same side of the
market are allowed in a single month in all strike prices combined. Additional
options contracts may be held as part of option/option or option/futures
spreads between months within the same crop year provided that the total of such
positions, when combined with outright positions, does not exceed the all months
combined limit. The futures/equivalents for both the options and futures
contracts are aggregated to determine compliance with these net same side single
month position limits.
#7 No more than 3,000 futures-equivalent contracts net on the same side of the
market are allowed in a single month in all strike prices combined. Additional
options contracts may be held as part of option/option or option futures spreads
between months within the same crop year provided that the total of such
positions, when combined with outright positions, does not exceed the all months
combined limit. The futures-equivalents for both the options and futures
contracts are aggregate to determine compliance with these net same side single
month limits.
#8 In the last five trading days of the expiring futures month in May, the
speculative position limit will be 600 contracts if deliverable supplies are at
or above 2,400 contracts, 500 contracts if deliverable supplies are between
2,000 and 2,399 contracts, 400 contracts if deliverable supplies are between
1,600 and 1,999 contracts, 300 contracts if deliverable supplies are between
1,200 and 1,599 contracts, and 220 contracts if deliverable supplies are below
1,200 contracts. Deliverable supplies will be determined from the CBOT's Stock
of Grain report on the Friday preceding the first notice day for the May
contract month. For the purposes of these regulations, one mini-sized Wheat
contract shall be deemed to be equivalent to one-fifth of a corresponding Wheat
contract.
#9 The aggregate position limit in CBOT mini-sized Dow/sm/ ($5 multiplier)
futures and CBOT DJIA/sm/ futures and options is 50,000 DJIA/sm/ contracts, net
long or net short in all contract months combined. For the purposes of these
regulations, one mini-sized Dow/sm/ ($5 multiplier) contract shall be deemed to
be equivalent to one-half of a DJIA/sm/ futures contract.
#10 The net long or net short positions in Corn, Soybean, or Wheat contracts may
not exceed their respective position limits. The net long or net short positions
in mini-sized Corn, mini-sized Soybeans, or mini-sized Wheat may not exceed
their respective position limits. The aggregate net long or net short positions
in Corn and mini-sized Corn, Soybeans and mini-sized Soybeans, or Wheat and
mini-sized Wheat contracts may not exceed their respective position limits. For
the purposes of these regulations, one mini-sized Corn, one mini-sized Soybeans,
or one mini-sized Wheat contract shall be deemed to be equivalent to one-fifth
of a corresponding Corn, Soybeans, or Wheat contract.
#11 The reporting level for the primary contract is separate from the reporting
level for the mini-sized contract. Positions in any one month at or above the
contract level indicated trigger reportable status. For a person in reportable
status, all positions in any month of that contract must be reported. For the
purpose of these regulations, positions are on a contract basis
Except for the interest of a limited partner or shareholder (other than the
commodity pool operator) in a commodity pool, ownership, including a 10% or
more financial ownership interest, shall constitute control over an account
except as provided in Regulation 425.05.
The maximum positions which any person, as defined in Regulation 425.01 (c),
may own or control shall be as set forth herein. However, with respect to the
maximum positions which a member firm may carry for its customers, it shall not
be a violation of the limits set forth herein to carry customer positions in
excess of such limits for such reasonable period of time as the firm may require
to discover and liquidate the excess positions or file the appropriate hedge or
exemption statements for the customer accounts in question in accordance with
Regulations 425.03 and 425.04. For the purposes of this regulation, a
"reasonable period of time" shall generally not exceed one business day for
those positions that are not subject to the provisions of Regulations 425.03 and
425.04.
However, for any option position that exceeds position limits for passive
reasons such as a market move or exercise assignment, the person shall be
allowed one business day to liquidate the excess position without being
considered in violation of the limits. In addition, if at the close of trading,
an option position exceeds position limits when evaluated using the previous
day's delta factors, but does not exceed the limits when evaluated using the
delta factors for that day's close of trading, then the position shall not
constitute a position limit violation.
Note: The Commodity Futures Trading Commission has imposed speculative position
limits on Corn, Oats, Soybean, Wheat, Soybean Oil and Soybean Meal futures
contracts as provided in Part 150 of CFTC Regulations.
(c) The term "net" shall mean the long or short position held after offsetting
long futures positions against short futures positions. The word "person"
shall include individuals, associations, partnerships, limited liability
companies, corporations and trusts.
(d) The foregoing limits on positions shall not apply to bona fide hedging
positions which meet the requirements of Regulations 425.02 and 425.03, nor
to positions subject to particular limits granted pursuant to Regulation
425.04.
(e) The Board, or a Committee authorized by the Board may direct any member or
registered eligible business organization owning, controlling or carrying a
position for a person whose total position as defined in subsection (f)
below exceeds the position limits as set forth in subsection (b) above or
as specifically determined pursuant to Regulations 425.03 or 425.04 to
liquidate or otherwise reduce the position.
(f) In determining whether any person has exceeded the position limits
specified in subsection (b) of this Regulation or those limits determined
pursuant to Regulations 425.03 or 425.04, or whether a position is a
reportable position as set forth in subsections (b) and (g) herein, all
positions in accounts for which such person by power of attorney or
otherwise directly or indirectly controls trading, except as provided in
Regulation 425.05, shall be included with the positions held by such
person. Such limits upon positions shall apply to positions held by two or
more persons acting pursuant to an expressed or implied agreement or
understanding, the same as if the positions were held by a single person.
(g) If a person owns, controls or carries a position equal to or greater than
the number of contracts specified in subsection (b) above long or short in
any one month, then all such futures and options on such futures contract
owned, controlled or carried by that person, whether above the given level
or not, shall necessarily be deemed reportable positions. Every member or
registered eligible business organization shall report each and every
reportable position to the Office of Investigations and Audits at such
times and in such form and manner as shall be prescribed by the Business
Conduct Committee.
(1) On or before the first day on which any position must be reported as
provided above, the member or registered eligible business organization
carrying the position must furnish to the Office of Investigations and
Audits a report, in the form, manner and content prescribed by the
Business Conduct Committee, identifying the owner of the account for
which the position must be reported and all persons associated with the
account as described in subsection (f) above.
(2) Every member or registered eligible business organization must report
each and every reportable position and provide the report required in
subsection (1) above for each person within any account carried on an
omnibus basis, unless, upon application of the member or registered
eligible business organization to the Business Conduct Committee, the
nonmember omnibus account specifically is approved to report directly
to the Office of Investigations and Audits. (01/01/05)
425.02 Bona Fide Hedging Positions -
(a) General Definition. Bona fide or economically appropriate hedging positions
in futures or options shall mean positions in a contract or positions in
options on a contract for future delivery on this Exchange, where such
positions normally represent a substitute for positions to be taken at a
later time in a physical marketing channel, and where they are economically
appropriate to the reduction of risks in the conduct and management of a
commercial enterprise, and where they arise from:
(1) The potential change in the value of assets which a person owns,
refines or merchandises or anticipates owning, refining or
merchandising,
(2) The potential change in the value of liabilities which a person owes
or anticipates incurring, or
(3) The potential change in the value of services which a person provides,
purchases or anticipates providing or purchasing.
Notwithstanding the foregoing, no positions of a person shall be classified
as bona fide hedging unless their purpose is to offset price risks
incidental to that person's commercial cash or spot operations and such
positions are established and liquidated in an orderly manner in accordance
with sound commercial practices and unless the provisions of Regulation
425.03 have been satisfied.
(b) Enumerated Hedging Positions. For purposes of Regulation 425.03, the
definition of bona fide or economically appropriate hedging positions in
subsection (a) above includes, but is not limited to, the following
specific positions:
(1) Sales of any commodity for future delivery, purchases of any put
options on futures contracts and/or sales of any call options on
futures contracts, which do not exceed in quantity:
(i) Ownership of the same cash commodity by the same person, and
(ii) Fixed-price purchases of the same cash commodity by the same
person.
(2) Purchases of any commodity for future delivery, sales of any put
options on futures contracts and/or purchases of any call options on
futures contracts, which do not exceed in quantity:
(i) Fixed-price sales of the same cash commodity by the same person;
and
(ii) The quantity equivalent of fixed-price sales of the cash products
and derivative products of such commodity by the same person.
(3) Sales and purchases of commodities for future delivery or of options
on contracts for future delivery described in subsections (b)(1) and
(b)(2) may also be offset by the same or other quantities of a
different cash commodity, provided that the fluctuations in the value
of the position for future delivery or of the commodity underlying the
option contract are substantially related to the fluctuations in the
value of the actual cash position.
(c) Non-Enumerated Hedging Positions. The Board, or a Committee authorized by
the Board, may recognize positions other than those enumerated in
subsection (b) as bona fide or economically appropriate hedging positions,
in accordance with the general definition of bona fide or economically
appropriate hedging positions in Regulation 425.02(a), upon the filing of a
satisfactory initial statement in accordance with Regulation 425.03. Such
positions may include:
(1) Short-hedging positions (including long put options or short call
options) of unsold anticipated positions in the same cash commodity by
the same person;
(2) Long-hedging positions (including long call options or short put
options) of unfilled anticipated requirements of the same cash
commodity by the same person;
(3) Short or long cross-hedging positions, provided that the fluctuations
in the value of the positions for future delivery or the commodity
underlying the options positions are substantially related to the
fluctuations in the value of the anticipated cash positions; or
(4) Any other positions in commodities for future delivery or options on
futures contracts, including those established under the concept of
"delta-ratio hedging", under such terms and conditions as the Board,
or a Committee authorized by the Board, may specify.
(d) Cash positions described in subsections (b) and (c) above shall not include
those positions or portions of positions which are bona fide hedging
positions in futures or economically appropriate hedging positions in
options pursuant to Regulations 425.02 and 425.03.
Note: Corn, Oats, Soybean, Soybean Oil, Soybean Meal and Wheat futures
contracts are subject to Commodity Futures Trading Commission Regulation
1.3(z), which defines bona fide hedging transactions and positions.
(10/01/00)
425.03 Reporting Requirements For Bona Fide or Economically Appropriate
Hedging Positions in Excess of Limits -
(a) Initial Statement. Every member or registered eligible business
organization which owns, controls, or carries positions on behalf of a
person who seeks classification of such positions as bona fide or
economically appropriate hedging positions must file a statement
satisfactory to designated staff or a Committee authorized by the Board in
order to classify such positions as bona fide or economically appropriate
hedging positions within the meaning of Regulation 425.02. The initial
statement of the member or registered eligible business organization filed
on behalf of a person shall be filed no later than 10 business days after
the day on which the person's position exceeds the speculative limit for
each contract specified in Regulation 425.01 (a), and shall include:
(1) A description of the kinds of intended positions and their potential
size;
(2) A statement affirming that the kinds of intended positions are bona
fide or economically appropriate hedging positions; and
(3) With respect to the kinds of intended positions that are described as
non-enumerated hedging positions under Regulation 425.02(c), a
justification that the kinds of intended positions are consistent with
the definition of bona fide or economically appropriate hedging
positions within the meaning of Regulation 425.02(a).
(b) Supplemental Statements. Whenever there is a material change in the
information provided in the person's most recent statement pursuant to this
Regulation, a supplemental statement which updates and confirms previous
information shall be filed with designated staff or a Committee authorized
by the Board by every member or registered eligible business organization
owning, controlling or carrying such person's position. The supplemental
statement shall be filed no later than 10 business days after the day on
which the person's position exceeds the level specified in the most recent
statement.
(c) A Committee or designated staff authorized by the Board will monitor bona
fide or economically appropriate hedging positions. The initial and
supplemental statements prescribed in subsections (a) and (b) above must be
submitted to the Office of Investigations and Audits and shall be
maintained on a confidential basis. The Board, or a Committee or designated
staff authorized by the Board may request additional relevant information
necessary to ensure compliance with this Regulation 425.03. (10/01/00)
425.04 Exemptions From Position Limits -
(a) The Board, or a Committee authorized by the Board, may establish particular
position limits on those positions of a person normally known as "spreads,
straddles or arbitrage," including:
(1) intramarket spreads;
(2) intermarket spreads;
(3) cash-futures arbitrage, where "cash" is defined as spot or forward
positions; or
(4) eligible option/option or option/futures spreads as defined in
Regulation 425.01.
In addition, the Board or a Committee authorized by the Board, may
establish, on a case by case basis, particular maximum position limits on
certain risk management positions in interest rate, stock index and
currency futures and options, including:
(1) Long positions (futures, long calls, short puts) whose underlying
commodity value does not exceed the sum of:
(i) Cash set aside in an identifiable manner, or any of the following
unencumbered instruments so set aside, with maturities of less
than 1 year: U.S. Treasury obligations; U.S. agency discount
notes; commercial paper rated A2 or better by Standard & Poors
and P2 or better by Moody's; banker's acceptances; or
certificates of deposit, plus any funds deposited as margin on
such positions; and
(ii) Accrued profits on such positions held at the futures commission
merchant.
(2) Long positions (futures, long calls) whose underlying commodity value
does not exceed the sum of:
(i) The value of equity securities, debt securities, or currencies
owned and being hedged by the trader holding such futures or
option position, provided that the fluctuations in value of the
position used to hedge such securities are substantially related
to the fluctuations in value of the securities themselves; and
(ii) Accrued profits on such positions held at the futures commission
merchant.
(3) Short calls whose underlying commodity value does not exceed the sum
of:
(i) The value of securities or currencies underlying the futures
contract upon which the option is based or underlying the futures
contract upon which the option is based or underlying the option
itself and which securities or currencies are owned by the trader
holding such option position; and
(ii) The value of securities or currencies whose price fluctuations
are substantially related to the price fluctuations of the
securities or currencies underlying the futures contract upon
which the option is based or underlying the option itself and
which securities or currencies are owned by the trader holding
such option position.
Risk management positions eligible for particular position limits under
this Regulation do not include
those considered as bona fide or economically appropriate hedging positions
as defined in Regulation 425.02.
(b) Requirements for Exemptions from Position Limits. Every member or
registered eligible business organization which owns, controls or carries
positions on behalf of a person who wishes to make purchases or sales of
any commodity for future delivery or any option on a contract for future
delivery in excess of the position limits then in effect, shall file
statements on behalf of the person with the Exchange, in such form and
manner as shall be prescribed by the Board, or by a Committee authorized by
the Board, in conformity with the requirements of this subsection.
(1) Initial Statement. Initial statements concerning the classification of
positions normally known in the trade as "spreads, straddles or
arbitrage," or risk management positions, as described in subsection
(a) above, for the purpose of subjecting such positions to particular
position limits above those specified in Regulation 425.01 (a), shall
be filed with designated staff or Committee authorized by the Board no
later than 10 business days after the day on which such positions
exceed the position limits then in effect. Such statements shall
include information necessary to enable the Board, or a Committee
authorized by the Board, to make a determination that the particular
kinds of intended positions should be eligible for a higher position
limit, including, but not limited to:
(i) A description of the specific nature and size of positions for
future delivery or in options on contracts for future delivery
and offsetting cash, forward or futures positions, where
applicable, and affirmation that intended positions to be
maintained in excess of the limits set forth in Regulation 425.01
(a) will be positions as set forth in subsection (a) above; and
(ii) In the case of risk management positions, information on the cash
portfolio being managed and/or any cash or cash market
instruments held in connection with the intended risk management
position, as well as other information relevant to the conditions
specified in subsection (a) above. Of particular interest are
whether the cash market underlying the futures or option market
has a high degree of demonstrated liquidity relative to the size
of the positions, and whether there exist opportunities for
arbitrage which provide a close linkage between the cash market
and the futures or options market in question; and whether the
positions are on behalf of a commercial entity, including
parents, subsidiaries or other related entities, which typically
buys, sells or holds the underlying or a related cash market
instrument.
(2) Supplemental Statements. Whenever there is a material change in the
information provided in the person's most recent statement pursuant to
this Regulation, a supplemental statement which updates and confirms
previous information shall be filed with designated staff or a
Committee authorized by the Board by every member or registered
eligible business organization owning, controlling or carrying such
person's position. The supplemental statement shall be filed no later
than 10 business days after the day on which the person's position
exceeds the level specified in the most recent statement.
(c) A Committee or designated staff authorized by the Board will monitor the
positions maintained by persons who have obtained particular position
limits under the provisions of this Regulation. The initial and
supplemental statements prescribed in subsections (b)(1) and (b)(2) above
must be submitted to the Office of Investigations and Audits and shall be
maintained on a confidential basis. The Board, or a Committee or designated
staff authorized by the Board, may request additional relevant information
necessary to ensure compliance with this Regulation 425.04, and may, for
any good reason, amend, revoke or otherwise limit the particular position
limits established.
(d) The provisions of this Regulation 425.04 shall not apply to Corn, Oats,
Soybean, Wheat, Soybean Oil and Soybean Meal futures and options contracts
traded on the Exchange. (10/01/00)
425.05 Exemption from Aggregation for Position Limit Purposes -
(a). Positions carried for an eligible entity as defined in Commodity Futures
Trading Commission Regulation 150.1(d), in a separate account or accounts
of an independent account controller, as
defined in Commodity Futures Trading Commission Regulation 150.1(e) may
exceed the position limits set forth in Regulation 425.01 to the extent
such positions are positions not for the spot month and which are carried
for an eligible entity as defined by Commodity Futures Trading Commission
Regulation 150.1 or such other persons as the Commission deems exempt
pursuant to Regulation 150.3, in the separate account or accounts of an
independent account controller provided however, that the overall positions
held or controlled by each such independent account controller may not
exceed the limits specified in Regulation 425.01.
(b) Additional Requirements for Exemption of Affiliated Entities - If the
independent account controller is affiliated with the eligible entity or
another independent account controller, each of the affiliated entities
must:
1) Have and enforce, written procedures in place to preclude such account
controllers from having knowledge of, gaining access to, or receiving
data about, trades of other account controllers. Such procedures must
include document routing, and other procedures or security
arrangements, including separate physical locations, which would
maintain the independence of their activities provided, however, that
such procedures may provide for the disclosure of information which is
reasonably necessary for an eligible entity to maintain the level of
control consistent with the fiduciary responsibilities and necessary
to fulfill its duty to supervise diligently the trading done on its
behalf;
2) Trade such accounts pursuant to separately developed and independent
trading systems and market such trading systems separately; and
3) Solicit funds for such trading by separate Disclosure Documents that
meet the standards of Commodity Futures Trading Commission Regulation
4.21.
(c) Upon request by the Board or a Committee authorized by the Board or such
person responsible for the supervision of the Office of Investigations and
Audits, any person claiming an exemption from speculative position limits
under this Regulation must provide to the Exchange such information as
specified in the request relating to the positions owned or controlled by
that person; trading done pursuant to the claimed exemption; the futures,
options, or cash market positions which support the claim of the exemption;
and the relevant business relationships supporting a claim of exemption.
(10/01/00)
425.06 Position Accountability for U.S. Treasury Bonds - A person as defined
in Regulation 425.01(c), who owns or controls an aggregate position in U.S.
Treasury Bond futures and mini-sized U.S. Treasury Bond futures of more than
10,000 U.S. Treasury Bond futures contracts, and/or futures-equivalent contracts
net long or net short in all months and strike prices combined, or net long or
net short futures contracts in the spot month, or 25,000 option contracts for
all months and all strike prices combined in each option category as defined in
Regulation 425.01 (a) shall thereby be subject to the following provisions:
- Such person shall provide, in a timely manner upon request by the
Association, information regarding the nature of the position, trading
strategy, and hedging information if applicable.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading shall
be included with the positions held by such person. The provisions of this
regulation shall apply to positions held by two or more persons acting pursuant
to an expressed or implied agreement or understanding, the same as if the
positions were held by a single person.
Nothing herein shall limit the jurisdiction of the Association. (10/01/01)
425.07 Position Accountability for Long-Term, Medium-Term and Short-Term
Treasury Notes A person as defined in Regulation 425.01(c), who owns or controls
more than 7,500 Long-Term Treasury Note futures contracts and/or
futures-equivalent contracts, or more than 7,500 Medium-Term Treasury Note
futures and/or futures-equivalent contracts, or more than 7,500 Short-Term
Treasury Note futures and/or futures-equivalent contracts,net long or net short
in all months and strike prices combined, or net long or
net short futures contracts in the spot month, or 20,000 option contracts for
all months and all strike prices combined in each option category as defined in
Regulation 425.01 (a) shall thereby be subject to the following provisions:
- Such person shall provide, in a timely manner upon request by the
Association, information regarding the nature of the position, trading
strategy, and hedging information if applicable.
- Such person automatically shall consent, when so ordered by the Association
acting in its discretion, not to increase further the position in Long-Term
Treasury Notes, Medium-Term Treasury Notes or Short-Term Treasury Notes
which exceeds the above-referenced 7,500 futures and/or futures-equivalent
contracts or 20,000 option contracts level.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading shall
be included with the positions held by such person. The provisions of this
regulation shall apply to positions held by two or more persons acting pursuant
to an expressed or implied agreement or understanding, the same as if the
positions were held by a single person.
Nothing herein shall limit the jurisdiction of the Association. (01/01/05)
425.08 Position Accountability for 30-Day Fed Funds Contracts - A person as
defined in Regulation 425.01(b), who owns or controls more than 3,000 30-Day Fed
Fund futures contracts, and/or futures-equivalent contracts, net long or net
short in all months and strike prices combined, or net long or net short in the
spot month, shall thereby be subject to the following provisions:
- Such person shall provide, in a timely manner upon request by the
Association, information regarding the nature of the position, trading
strategy, and hedging information if applicable.
- Such person automatically shall consent, when so ordered by the
Association acting in its discretion, not to increase further the
position in 30-Day Fed Fund futures contracts which exceeds the above-
referenced 3,000 contract level.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney of otherwise, directly or indirectly controls trading shall
be included with the positions held by such person. The provisions of this
regulation shall apply to positions held by two or more persons acting pursuant
to an expressed or implied agreement or understanding, the same as if the
positions were held by a single person.
Nothing herein shall limit the jurisdiction of the Association. (04/01/03)
425.09 Position Accountability for mini-sized U.S. Treasury Bonds- A person as
defined in Regulation 425.01(c), who owns or controls an aggregate position in
mini-sized U.S. Treasury Bond futures and U.S. Treasury Bond futures of more
than 20,000 mini-sized U.S. Treasury Bond futures, and/or futures-equivalent
contracts net long or net short in all months combined, or net long or net short
futures contracts in the spot month as defined in Regulation 425.01(a) shall
thereby be subject to the following provisions:
- Such person shall provide, in a timely manner upon request by the
Association, information regarding the nature of the position, trading
strategy, and hedging information if applicable.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading shall
be included with the positions held by such person. The provisions of this
regulation shall apply to positions held by two or more persons acting pursuant
to an expressed or implied agreement or understanding, the same as if the
positions were held by a single person.
Nothing herein shall limit the jurisdiction of the Association. (10/01/01)
425.11 Position Accountability in CBOT(R) 10-Year Municipal Note Index Futures-
In conjunction with Regulation 425.01, a person as defined in Regulation
425.01(c), who owns or controls an aggregate position in CBOT(R) 10-Year
Municipal Note Index futures shall thereby be subject to the following
provisions:
- Such person shall provide, in a timely manner upon request by the Exchange,
information regarding the nature of the position, trading strategy, and
hedging information if applicable.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading
shall be included with the positions held by such person. The provisions of
this regulation shall apply to positions held by two or more persons acting
pursuant to an expressed or implied agreement or understanding, the same as if
the positions were held by a single person. (11/01/02)
425.12 Position Accountability in CBOT(R) 10-Year Interest Rate Swap Contracts-
A person as defined in Regulation 425.01(c), who owns or controls more than
5,000 CBOT(R) 10-year Interest Rate Swap futures and/or futures-equivalent
contracts, net long or net short in all months and strike prices combined, or
net long or net short futures in the spot month, or 15,000 options for all
months and strike prices combined in each option category as defined in
Regulation 425.01 (a), shall thereby be subject to the following provisions:
- Such person shall provide, in a timely manner upon request by the Exchange,
information regarding the nature of the position, trading strategy, and
hedging information if applicable.
- Such person automatically shall consent, when so ordered by the Association
acting in its discretion, not to increase further the position in CBOT(R)
10-Year Interest Rate Swap contracts that exceeds the above-referenced
levels of 5,000 futures or futures-equivalent contracts or 15,000 options.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading
shall be included with the positions held by such person. The provisions of
this regulation shall apply to positions held by two or more persons acting
pursuant to an expressed or implied agreement or understanding, the same as if
the positions were held by a single person. Nothing herein shall limit the
jurisdiction of the Association. (12/01/02)
425.13 Position Accountability in CBOT(R) 5-Year Interest Rate Swap Contracts-
A person as defined in Regulation 425.01(c), who owns or controls more than
5,000 CBOT(R) 5-year Interest Rate Swap futures and/or futures-equivalent
contracts, net long or net short in all months and strike prices combined, or
net long or net short futures in the spot month, or 15,000 options for all
months and strike prices combined in each option category as defined in
Regulation 425.01 (a), shall thereby be subject to the following provisions:
- Such person shall provide, in a timely manner upon request by the Exchange,
information regarding the nature of the position, trading strategy, and
hedging information if applicable.
- Such person automatically shall consent, when so ordered by the Association
acting in its discretion, not to increase further the position in CBOT(R)
5-Year Interest Rate Swap contracts that exceeds the above-referenced
contract levels, of 5,000 futures or futures-equivalent contracts or 15,000
options.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading
shall be included with the positions held by such person. The provisions of
this regulation shall apply to positions held by two or more persons acting
pursuant to an expressed or implied agreement or understanding, the same as if
the positions were held by a single person. Nothing herein shall limit the
jurisdiction of the Association. (12/01/02)
425.14 Position Accountability in Bund Futures - A person as defined in
Regulation 425.01(c), who owns or controls more than 5,000 Bund futures
contracts, net long or short in all months combined, shall thereby be subject to
the following provisions:
- Such person shall provide, in a timely manner upon request by the
Exchange, information regarding the nature of the position, trading
strategy, and hedging information if applicable.
- Such person automatically shall consent, when so ordered by the Exchange
acting in its discretion, not to increase further the position in Bund
futures contracts that exceeds the above-referenced 5,000 contract level.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading shall
be included with the positions held by such person. The provisions of this
regulation shall apply to positions held by two or more persons acting pursuant
to an expressed or implied agreement or understanding, the same as if the
positions were held by a single person.
Nothing herein shall limit the jurisdiction of the Exchange. (04/01/04)
425.15 Position Accountability in Bobl Futures - A person as defined in
Regulation 425.01(c), who owns or controls more than 5,000 Bobl futures
contracts, net long or short in all months combined, shall thereby be subject to
the following provisions:
- Such person shall provide, in a timely manner upon request by the
Exchange, information regarding the nature of the position, trading
strategy, and hedging information if applicable.
- Such person automatically shall consent, when so ordered by the Exchange
acting in its discretion, not to increase further the position in Bobl
futures contracts that exceeds the above-referenced 5,000 contract level.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading shall
be included with the positions held by such person. The provisions of this
regulation shall apply to positions held by two or more persons acting pursuant
to an expressed or implied agreement or understanding, the same as if the
positions were held by a single person.
Nothing herein shall limit the jurisdiction of the Exchange. (04/01/04)
425.16 Position Accountability in Schatz Futures - A person as defined in
Regulation 425.01(c), who owns or controls more than 5,000 Schatz futures
contracts, net long or short in all months combined, shall thereby be subject to
the following provisions:
- Such person shall provide, in a timely manner upon request by the
Exchange, information regarding the nature of the position, trading
strategy, and hedging information if applicable.
- Such person automatically shall consent, when so ordered by the Exchange
acting in its discretion, not to increase further the position in Schatz
futures contracts that exceeds the above-referenced 5,000 contract level.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading shall
be included with the positions held by such person. The provisions of this
regulation shall apply to positions held by two or more persons acting pursuant
to an expressed or implied agreement or understanding, the same as if the
positions were held by a single person.
Nothing herein shall limit the jurisdiction of the Exchange. (04/01/04)
425.14 Position Accountability in Bund Futures - A person as defined in
Regulation 425.01(c), who owns or controls more than 5,000 Bund futures
contracts, net long or short in all months combined, shall thereby be subject to
the following provisions:
- Such person shall provide, in a timely manner upon request by the Exchange,
information regarding the nature of the position, trading strategy, and
hedging information if applicable.
- Such person automatically shall consent, when so ordered by the Exchange
acting in its discretion, not to increase further the position in Bund
futures contracts that exceeds the above-referenced 5,000 contract level.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading shall
be included with the positions held by such person. The provisions of this
regulation shall apply to positions held by two or more persons acting pursuant
to an expressed or implied agreement or understanding, the same as if the
positions were held by a single person.
Nothing herein shall limit the jurisdiction of the Exchange. (04/01/04)
425.15 Position Accountability in Bobl Futures - A person as defined in
Regulation 425.01(c), who owns or controls more than 5,000 Bobl futures
contracts, net long or short in all months combined, shall thereby be subject to
the following provisions:
- Such person shall provide, in a timely manner upon request by the Exchange,
information regarding the nature of the position, trading strategy, and
hedging information if applicable.
- Such person automatically shall consent, when so ordered by the Exchange
acting in its discretion, not to increase further the position in Bobl
futures contracts that exceeds the above-referenced 5,000 contract level.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or
424
otherwise, directly or indirectly controls trading shall be included with the
positions held by such person. The provisions of this regulation shall apply to
positions held by two or more persons acting pursuant to an expressed or implied
agreement or understanding, the same as if the positions were held by a single
person.
Nothing herein shall limit the jurisdiction of the Exchange. (04/01/04)
425.16 Position Accountability in Schatz Futures - A person as defined in
Regulation 425.01(c), who owns or controls more than 5,000 Schatz futures
contracts, net long or short in all months combined, shall thereby be subject to
the following provisions:
- Such person shall provide, in a timely manner upon request by the Exchange,
information regarding the nature of the position, trading strategy, and
hedging information if applicable.
- Such person automatically shall consent, when so ordered by the Exchange
acting in its discretion, not to increase further the position in Schatz
futures contracts that exceeds the above-referenced 5,000 contract level.
- Such positions must be initiated and liquidated in an orderly manner.
For purposes of this regulation, all positions in accounts for which a person,
by power of attorney or otherwise, directly or indirectly controls trading shall
be included with the positions held by such person. The provisions of this
regulation shall apply to positions held by two or more persons acting pursuant
to an expressed or implied agreement or understanding, the same as if the
positions were held by a single person.
Nothing herein shall limit the jurisdiction of the Exchange. (04/01/04)
425
Ch4 Margins and Deposits
430.00 Deposits by Customers - A member acting as commission merchant for a
customer (member or non-member) may require from such customer a deposit, as
indemnity against liability, and subsequent deposits to the extent of any
adverse fluctuations in the market price. Such deposits must be made with the
commission merchant within a reasonable time after demand, and, in the absence
of unusual circumstances, one hour shall be deemed a reasonable time. The
failure of the customer to make such deposit within such time, shall entitle,
but shall not obligate, the commission merchant to close out the trades of the
defaulting customer. If the commission merchant is unable to effect personal
contact with the customer, a written demand left at the office of the customer,
during business hours, shall be deemed sufficient. 209 (08/01/94)
431.00 Margins - No member may accept or carry an account for a customer,
whether a member or non-member, without proper and adequate margin. The Exchange
shall fix minimum margin requirements.
The provisions of the foregoing paragraph do not apply to a non-clearing member
who makes his own trades or who on the Floor gives his orders for trades which
are exclusively for his own account and pays the brokerage thereon. 210
(08/01/94)
431.00A Permit Holder Interpretation - The term 'non-clearing member' in
paragraph 2 of Rule 431.00 should be interpreted to include Permit Holders.
(08/01/94)
431.01 Margins - Non-Clearing Members - A non-clearing member who makes his
own futures trades or who on the Floor gives his orders for futures trades which
are exclusively for his account shall be subject solely to the provisions of
this Regulation. All futures transactions in such account shall be margined to
the market. 1822B (08/01/94)
431.02 Margin Requirements - Margin requirements shall at all times be those
requirements currently in effect. Changes in margin requirements shall be
effective on all transactions.
1. Transferred to Regulations 431.03 and 431.05.
2. Clearing members may carry contracts for future delivery for foreign and
domestic correspondents on a gross margin basis as provided in Paragraph 3
of Regulation 431.03, but only to the extent that such contracts are those
of customers and non-customers of the foreign and domestic correspondents.
3. If stocks, bonds or similar collateral, which must be free from liens and
from any impediments to negotiability, are deposited with a member
specifically to secure transactions which are executed on this Exchange,
the current market value less the applicable haircut as specified in SEC
Rule 15c3-1(c)(2)(vi) may be considered as margin value to such
transactions.
A registered futures commission merchant shall not accept as margin,
pledge, hypothecate, assign or factor any customer owned warehouse receipt
other than a warehouse receipt that is eligible for delivery in
satisfaction of futures contracts at a contract market.
4. Foreign currencies or foreign government securities which are deposited
with a member for margin purposes must be reported at the current rate of
exchange to the dollar equivalent. The margin value will be determined by
Regulation 431.02 paragraph 3.
5. In computing minimum margin requirements for any customer equities or
impairment resulting from change in market prices shall be regarded as
money equivalents.
6. No member shall extend any credit or give any rebate or gratuity of any
kind to any person for the purpose of circumventing or evading minimum
margin requirements.
7. It shall be incumbent upon each member to require satisfactory evidence
that all hedging trades are bona fide hedging trades. A letter from a
customer so stating will be considered "satisfactory evidence" under this
paragraph unless there is reason to suspect otherwise.
8. An account shall be entitled to spread margins, whenever said account is in
a spread position. The carrying member shall designate spread position on
his margin records.
9. When a correspondent member's account with the clearing member consists of
trades which are spreading trades, such account may be carried as a
spreading account by the clearing member.
10. It shall be incumbent upon each member financing purchases of cash grain
for country elevator customers to require satisfactory evidence that funds
so loaned are not used to margin future contracts other than for the
purpose of hedging cash grain.
When a customer states that funds required to fully margin his account are
being transmitted at once, the member may consider this assurance in lieu
of cash for a reasonable period. Members are required to keep written
records of all margin calls, whether made in writing or by telephone.
11. Members shall not accept orders for new trades from a customer, unless the
minimum initial margin on the new trades is deposited and unless the margin
on old commitments in the account equals or exceeds the initial
requirements on hedging and spreading trades and/or the maintenance
requirements specified in Regulations 431.03 and 431.05 on all other
trades. If the customer has a credit in excess of the initial margin
requirements on all old commitments in his account, this may be used as
part or all of the initial margins required on new commitments. However,
credits in excess of maintenance margins and less than initial margin
requirements may not be used.
12. No customer shall be permitted to make withdrawals from an account when the
margin therein is less than the minimum initial margin specified in
Regulations 431.03 and 431.05 or when the withdrawals would impair such
minimum requirements.
13. No member may carry for a customer spreading transactions when the
customer's account, figured to the market, would result in a deficit.
Minimum maintenance margins required on other transactions are specified in
Regulations 431.03 and 431.05. When a customer's account drops below the
maintenance margin level, the account must be brought back to initial
margin requirements. The failure of a member to close the customer's
account before it results in such deficit or undermargined condition shall
not relieve the customer of any liability to the member, nor shall such
failure on the part of a member amount to an extension of credit to the
customer if the member in the exercise of reasonable care has been unable
to close the account without incurring such deficit or undermargined
condition.
14. A member may use his discretion in permitting a customer having an
established account to trade during any day without margining each
transaction, provided the net position resulting from the day's trading is
margined as required by Rules 286.00, 431.00 and Regulations 431.02, 431.03
and 431.05.
15. When a customer switches an open interest in the same grain from one future
to another and the orders for the purchase and sale are placed
simultaneously, no additional margins need be required by his commission
merchant because of such switch. However, if such orders are not placed
simultaneously, the new position should be margined on the basis of minimum
initial margin requirements.
16. A bona fide hedger, in financial instruments, reporting positions on a
gross basis pursuant to Regulation 705.01, must pay appropriate margins on
the gross positions reported during the delivery month. 1822 (12/01/03)
431.02A Hedging Transactions - WHEREAS, Regulation 431.02(7) makes it
incumbent "upon each member to require satisfactory evidence that all hedging
trades are bona fide hedging trades," and
WHEREAS, Regulation 431.02(7) further states that "a letter from a customer so
stating will be considered 'satisfactory evidence' unless there is reason to
suspect otherwise;"
NOW THEREFORE, BE IT RESOLVED that whenever a non-member customer of a member or
member firm carries in its hedging account an open position in any Board of
Trade futures contract exceeding speculative position limits established by the
Association, it shall be incumbent upon the member or member firm to satisfy
itself, and to be able to confirm to the Business Conduct Committee that the
open position of such non-member customer, to the extent that it exceeds such
speculative position limits, represents bona fide hedging transactions.
BE IT FURTHER RESOLVED that this resolution be published as a Ruling of the
Association. 42R (08/01/94)
431.03 Margin on Futures -
Under the provisions of Rule 431.00, the Exchange shall, from time to time,
determine the minimum initial and maintenance margins for futures transactions,
including hedging and spreading transactions. (12/01/03)
431.03B Margins-The Rules Committee was asked the following questions:
(1) Is it permissible for a carrying broker to maintain an account with a bank
where it is specified that the deposits therein are made at the request of a
particular client - such funds not necessarily being those of the client.
(2) Is it permissible to maintain such an account, limiting it to the amounts
deposited by such client.
The Committee is unanimously of the opinion that these practices are a
violation of the Association's minimum margin Rules and Regulations. They
constitute the extending of credit for margins. 40R (08/01/94)
431.04 Notice of Undermargined Omnibus Accounts-(See 285.05) (08/01/94)
431.05 Margin on Options-Under the provisions of Rule 431.00, the Board
hereby establishes that minimum margins for option transactions will be
determined by the *Standard Portfolio Analysis of Risk- (SPAN-) margin
calculations, or as otherwise determined by the Exchange.
(12/01/03)
431.06 Margin on Options-Non-Clearing Members--A non-clearing member who
makes his own option trades or who on the Floor gives his orders for option
trades which are exclusively for his account shall be subject solely to the
provisions of the *Standard Portfolio Analysis of Risk-margin (SPAN-).
For all long option positions premium must be paid in full when the position is
initiated.
(12/01/03)
*"SPAN-" and "Standard Portfolio Analysis of Risk-" are trademarks of the
Chicago Mercantile Exchange. The Chicago Mercantile Exchange assumes no
liability in connection with the use of SPAN by any person or entity.
432.00 Customers' Securities--The improper use of a customer's securities is
inconsistent with just and equitable principles of trade. 211 (08/01/94)
433.00 Agreement for Use of Securities--An agreement between a member and a
customer, authorizing the member to pledge securities, either alone or with
other securities carried for the account of the customer, either for the amount
due thereon or for a greater amount, or to lend such securities, does not
justify the member in pledging or loaning more of such securities than is fair
and reasonable in view of the indebtedness of said customer to said member.
No form of general agreement between a member and a customer shall warrant the
member in using securities carried for the customer for delivery on sales made
by the member for his own account, or for any account in which the firm or
corporation of said member or of any general or special partner therein is
directly or indirectly interested. 212 (08/01/94)
433.01 Construction of Rules 432.00 and 433.00--A customer's wholly owned
securities and/or excess collateral (securities in excess of the approximate
amount required to enable the member carrying the account to finance it) must be
segregated in a manner which clearly identifies their ownership. The member
carrying the account shall keep a record of the location of such segregated
securities and the means by which their ownership may be identified. When such
securities are in the custody of another broker, the member carrying the account
shall keep such other broker fully informed at all times as to the specific
securities to be segregated. This Regulation applies to both odd lots and round
lots. (08/01/94)
Ch4 Transfer Trades/Exchange Service Fees
443.00 Exempt Transactions--The provisions of the Rules and Regulations
respecting member rates of commission and brokerage rates shall be superseded
not later than March 4, 1978. 219A (08/01/94)
444.01 Transfer Trades; Exchange of Futures for Physicals and Give-up
Transactions--Transfer trades, or office trades, are defined and limited to
trades made upon the books of a commission merchant for the purpose of: (a)
transferring existing trades from one account to another within the same office
where no change in ownership is involved; or, (b) transferring existing trades
from the office of one commission merchant to the office of another commission
merchant where no change in ownership is involved, provided that no such
transfer may be made for the purpose of evading and avoiding delivery on such
trades and provided further that if such transfer is made after receipt from the
Clearing Services Provider of a notice of intention to deliver applicable to
such trades, then the notice of intention to deliver must be passed through the
Clearing Services Provider along with the trades so transferred and the Clearing
Services Provider shall thereupon pass the notice of intention to deliver to the
commission merchant to whom such transfer has been made and delivery shall be
taken by such commission merchant; or, (c) exchanging futures for cash
commodities or in connection with cash commodities transactions; or, (d)
exchanging futures for, or in connection with, swap transactions involving those
futures designated in Regulation 444.04; or, (e) exchanging futures for, or in
connection with, over-the-counter derivative transactions involving those
futures designated in Regulation 444.06; or (f) to establish the prices of cash
commodities; or, wheat, (g) correcting errors on cleared trades, provided the
original trade documentation confirms the error and the special clearing code or
screen designated by the Board of Directors has been used to identify these
transfers; or (h) reporting Block Trade transactions for any contract that is
eligible for Block Trade transactions under Regulation 331.05; or (i)
transferring trades executed on behalf of another commission merchant from the
account of the executing commission merchant to the account of the other
commission merchant customer where no change of ownership is involved, provided
that the special clearing code or screen designated by the Board of Directors
has been used to identify these transfers. The Business Conduct Committee
("BCC") or designated staff pursuant to delegated authority, may, in its
discretion, upon written request, exempt a transfer trade from the requirements
of this provision providing that the transfer trade is made for the purpose of
combining the positions held by two or more commodity pools which are operated
by the same commodity pool operator and traded by the same commodity trading
advisor, pursuant to the same strategy, into a single account so long as the
transfer does not result in the liquidation of any open positions, and the pro
rata allocation of interests in the consolidating account does not result in
more than a de minimis change in the value of the interest of any pool
participant. Additionally, the BCC, or designated staff pursuant to delegated
authority, in its discretion, upon written request, may exempt such other
transfers in connection with or as 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.
Give-up transactions must be transferred in accordance with the procedure
provided in subparagraph (h) above. In the case of give-up transactions, the
commission merchant ("executing commission merchant") executing a trade on
behalf of another commission merchant (the "carrying commission merchant")
(including such carrying commission merchant's customers) must submit the trade
to the Clearing Services Provider for clearing, and remains responsible for the
clearing and settlement of such trade as prescribed by the Clearing Services
Provider. Executing commission merchants and carrying commission merchants must
utilize an automated invoicing system for commission payments resulting from
give-up transactions, as determined by the Board of Directors. Notwithstanding
the foregoing, the executing commission merchant, carrying commission merchant
and, as applicable, the customer on the account at the carrying commission
merchant for which the trade is executed, may by agreement set out their
respective obligations and financial responsibility to one another relating to
the transfer of the trade.
The exchange of futures in connection with cash commodity transactions or of
futures for cash commodities or the exchange of futures for, or in connection
with, swap transactions involving those futures designated in Regulation 444.04,
or the exchanging of futures for, or in connection with, over-the-counter
derivative transaction involving those futures designated in Regulation 444.06
may be made at such prices as are mutually agreed upon by the two parties to the
transaction.
All transfer trades made between the offices of two commission merchants and all
office trades made in connection with cash commodity transactions or the
exchange of futures for cash commodities or the exchange of futures for, or in
connection with, swap transactions involving those futures designated in
Regulation 444.04 or the exchange of futures for, or in connection with,
over-the-counter derivatives involving those futures designated in Regulation
444.06 shall be
designated by proper symbol as transfer or office trades and must be cleared
through the Clearing Services Provider in the regular manner.
Transfer trades must be made at the same price or prices which appear on the
books of the transferring commission merchant, and the transfer must also show
the date when such trade or trades were originally made; however, the BCC, or
designated staff pursuant to delegated authority, in its discretion, upon
written request, may permit the transfer of positions at settlement price if
such transfer is made as a result of, or in connection with, a merger, asset
purchase, consolidation or similar non-recurring transaction where the entity to
which the positions are transferred becomes the successor in interest to the
entity from which the transfer originated. All such transfers shall retain the
original trade date of the positions. Additionally those transfers involving a
debtor as defined by and in accordance with Regulation 272.02 shall retain the
original trade date for purposes of delivery but shall be entered on the books
of the transferee at the settlement price on the day of the transfer. In
addition, each party to transfer trade transactions shall file with the Clearing
Services Provider a memorandum stating the nature of the transaction, whether
the transaction has resulted in a change of ownership, the kind and quantity of
cash commodity, swap, or over-the counter derivative if any is involved, the
kind, quantity and price of the commodity future, the name of the opposite
Clearing member, if any, and such other information as the Clearing Service
Provider may require. 1809A (03/01/04)
444.01A Transfer Trades and Inter-Market Spreads - - Owing to the fact that some
questions have arisen as to what may properly be handled in the way of give-ups,
as office trades or transfer trades, particularly in connection with the new
Commodity Exchange Act, the Directors have found it necessary to clarify this
situation with certain interpretations which will be mailed to all members
shortly. In the meantime, there is one point which seems important because of
the past custom of the trade, and we wish to call attention to it. In case a
house has spread orders between markets at a guaranteed difference, such as
buying Winnipeg or Minneapolis or Kansas City and selling Chicago at a fixed
difference, it has been customary in the past in the event they found some other
house going the other way at the same difference to exchange futures in the two
markets in order to consummate the spread. In other words, this was done by
give-ups rather than by pit executions. Under the new interpretation, such a
give-up is not permissible, inasmuch as it involves a change of ownership and is
not a give-up against a cash transaction, as interpreted by the Commodity
Exchange Act or the Board of Trade Rules. Accordingly, it will not be
permissible to exchange futures in the form of give-ups under such
circumstances, which will compel the actual filling of these limited spreads by
means of pit executions.
While this appears to work a certain amount of hardship, it seems to be required
in order to conform to the law and to the Rules of the Association; and,
accordingly, attention is directed to it in order to avoid possible confusion
where spreads are being worked between two markets. (08/01/94)
444.01B Prohibition on Exchange of Futures for Cash Commodities and on Exchange
of Futures for, or in Connection with, Swap Transactions and on Exchange of
Futures for, or in connection with, OTC Agricultural Transactions Involving
Multi-Parties--The exchange of futures for cash commodities or in connection
with cash commodity transactions or the exchange of futures for, or in
connection with, swap transactions involving those futures designated in
Regulation 444.04 may occur only when the buyer of the futures contracts is the
seller of the cash commodity or swap and the seller of the futures contracts is
the buyer of the cash commodity or swap. However, a Member Firm may facilitate,
as principal, the cash commodity component of an Exchange for Physical(EFP) on
behalf of a customer provided that the Member Firm can demonstrate that the cash
commodity transaction was passed through to the customer that received the
futures position as part of the EFP transaction. The exchange of futures for, or
in connection with, over-the-counter derivative transactions involving those
futures designated in Regulation 444.06 occur only when the buyer and seller of
the futures contracts are the opposing sides to the OTC transaction and have
respectively, the short and long market expose associated with the OTC
transaction. All such transactions must be submitted to the Clearing Services
Provider clearing house by a clearing firm acting on its own behalf or for the
beneficial account of a customer who is a party to the transaction. (03/01/04)
444.02 Clearance of Exchanges of Futures for Physicals Transactions, of
Exchanges of Futures for, or in Connection with, Swap Transactions, and of
Exchange of Futures for, or in Connection with, OTC Transactions - With respect
to the futures portion of an exchange of future for physical transaction or an
exchange of futures for swap transaction involving those futures designated in
Regulation 444.04 or an exchange of futures for an over-the-counter derivative
transaction involving those futures designated in Regulation 444.06, clearing
firm on opposite sides of the transaction must subsequently approve the terms of
the transaction, including the clearing firm (division), price, quantity,
commodity, contract month and date prior to submitting the transaction to the
Clearing Services Provider. (03/01/04)
444.03 Transfer Trades in a Delivery Month--During the delivery month and 2
business days prior to the first delivery day, (or in the case of crude
petroleum during position month) transfer trades for the purpose of offsetting
existing positions where no change of ownership is involved are prohibited when
the date of execution of the position being transferred is not the same as the
transfer date. Positions carried at different houses for the same owner 2
business days prior and to a delivery month and thereafter (or in the case of
crude petroleum during position month) are required to be offset in the pit or
through the normal delivery process. The receiving firm has the responsibility
to assure compliance with this regulation. (08/01/94)
444.04 Exchange of Futures for, or in Connection with, Swap Transactions
Involving U.S. Treasury Bond Futures, 10-year U.S. Treasury Note Futures, 5-year
U.S. Treasury Note Futures, 2-year U.S. Treasury, Dow Jones-AIG Commodity Index
futures, 10-Year Municipal Note Index Futures, 10-Year Interest Rate Swap
Futures and 5-Year Interest Rate Swap futures --An exchange of futures for, or
in connection with, a swap transaction (EFS) consists of two discrete, but
related, transactions; a swap transaction and a futures transaction. At the time
such transaction is effected, the buyer and seller of the futures must be,
respectively, the seller and the buyer of the swap. The swap component shall
involve the commodity underlying the futures contract (or a derivative,
by-product or related product of such commodity). The quantity covered by the
swap must be approximately equivalent to the quantity covered by the futures
contracts. (03/01/04)
444.05 Transfer Trades for the Purpose of Offsetting, mini-sized Dow/SM/ Futures
($5 multiplier) and CBOT(R) Dow Jones Industrial Average/SM/ (DJIA/SM/) Futures.
With the consent of the account controller, a clearing member may offset and
liquidate long mini-sized Dow/SM/ futures ($5 multiplier) positions against
short DJIA/SM/ futures positions, or short mini- sized Dow/SM/ futures ($5
multiplier) positions against long DJIA/SM/ futures positions, held in the same
contract month and year and in the same account in a ratio of 2 (two) mini-sized
Dow/SM/ ($5 multiplier) contracts to 1 (one) DJIA/SM/ contract. The clearing
member shall notify the Clearing Services Provider of offsetting positions by
submitting reports to the Clearing Services Provider in such form and manner as
the Clearing Services Provider shall specify. The positions being offset shall
be transferred to a holding account at the Clearing Services Provider and long
and short positions in the same contract month in the holding account will be
netted, thus reducing the number of open positions in such contract. (01/01/04)
446.06 Exchange of Futures For, Or in Connection with, OTC Transactions
Involving Corn, Soybeans, Soybean Meal, Soybean Oil, Wheat, Oat and Rice Futures
- An exchange of futures for, or in connection with, an over-the-counter (OTC)
derivative transaction (an EFR transaction) consists of two discrete, but
related, transactions; an OTC derivative transaction and a futures transaction.
At the time such transaction is effected, the buyer and seller of the futures
contracts must be the opposing sides to the OTC transaction and have,
respectively, the short and long market exposure associated with the OTC
transaction. The OTC transaction shall involve the commodity underlying the
futures contract (or a derivative, by-product or related product of such
commodity). The quantity covered by the OTC transaction must be approximately
equivalent to the quantity covered by the futures contracts. The OTC component
of an EFR must comply with any applicable regulatory requirements prescribed by
the Commodity Futures Trading Commission. (07/01/03)
450.00 Exchange Services Fees -
(a) members, membership interest holders and member firms. Each Full and
Associate Member (hereinafter referred to as "Members"), Membership
Interest Holder and member firm shall be obligated to pay, at such times
and in such manner as the Exchange or e-cbot, in accordance with the fee
schedule set forth in Appendix 4A. In that Appendix the applicable rate
specifications shall be per contract/per side, and the applicable volume
specifications shall be per calendar month.
(1) Open auction fee caps - with respect to open auction trades for a Full
or Associate Member's own account, the maximum of fees paid by any
Full or Associate Member shall be $20,000 per year per person who
initiates and executes the trades. With respect to open auction trades
for the proprietary account of a Regulation 230.02, Category (1a),
(1b), (2a), (2b) or (2c) member firm or a member firm affiliate as
defined in Regulation 450.02 D, which are initiated and executed by
the same Member or Membership Interest holder, the maximum of fees
paid by any such member firm or member firm affiliate shall be $20,000
per year per person who initiates and executes the trades.
(2) Open auction floor broker fee - Open auction trades executed by a
Member or Membership Interest holder as a floor broker for others
shall incur a floor brokerage charge of 5 cents per contract/per side.
Provided, however, that this charge shall not apply to trades which
are both initiated and executed by the same Member or Membership
Interest holder for the account of a Member or Membership Interest
holder, or the proprietary account of a member firm. The maximum of
fees paid by any Full or Associate Member executes trades as a floor
broker for others and also initiates and executes open auction trades
for his or her own account, the maximum of fees paid by such Full or
Associate Member for all such open auction trades collectively shall
be $20,000 per year.
(3) Firm-owned memberships - Notwithstanding the foregoing provisions of
this section (a), the fees applicable with respect to Memberships and
Membership Interests which are owned by member firms shall be
equivalent, in the following categories, to those which the Exchange
prescribes for delegates:
(i) Trades for such Member's or Membership Interest holder's own
account, in cases where the individual is not a principal of the
member firm which owns his/her Membership or Membership Interest.
For purposes of this paragraph, an individual shall be deemed a
principal of a member firm if he/she holds a majority ownership
interest in that firm and/or meets other such criteria as the
Exchange may prescribe by regulation; and
(ii) Trades executed by such Member or Membership Interest holder on
behalf of any account other than the proprietary account or a
customer account of the member firm owner of the Membership
Interest.
(b) non-members. Each member or registered eligible business organization
handling the funds of non-member customers shall include, in the statements
to such customers, fees for the open auction and e-cbot transactions
executed for the accounts of such customers in accordance with the fee
schedule set forth in Appendix 4A. In that Appendix, the applicable rate
specifications shall be per contract/per side, and the applicable volume
specifications shall be per calendar month.
All such fees collected from non-member customers shall be remitted by the
member or registered eligible business organization at such times and in
such manner as the Exchange or e-cbot, as applicable, may prescribe.
(c) surcharges, In addition to the fees referenced in sections (a) and (b) of
this Rule, surcharges in the following categories will apply as specified
in Appendix 4A:
- Licensed contract fees;
- Exchange for Physicals ("EFP") and Exchange for Swap ("EFS") surcharges;
- Non-trade allocation fees (for exercises, deliveries, assignments and
expirations);
- Block Trading surcharges.
(d) appendix incorporated within rule. Appendix 4A is incorporated by reference
as part of this Rule 450.00 to the extent that the fee provisions in
Sections (a) through (c) hereof are specified further in Appendix 4A.
(e) mini-sized contracts. e-cbot fees for mini-sized contracts shall be at such
rates as the e-cbot Board may prescribe.
(f) electronic order routing and floor performance efficiency fees. In addition
to the other applicable fees specified in this Rule, a fee of 5 cents per
contract may apply to transactions resulting from orders which are routed
to the Exchange Floor and which are subject to floor performance efficiency
standards specified by the Exchange.
(g) revenue. The Board of Directors of the Exchange or of e-cbot ("the
applicable Board") shall have the authority in its discretion to suspend
any of the fees specified in this Rule at any time during a fiscal year
upon making a determination that year-to-date Exchange revenue have
attained a sufficient level to render the further collection of such fees
unwarranted.
(h) reports. Each member or registered eligible business organization subject
to the provisions of this Rule shall submit to the Exchange such reports as
the applicable Board may deem necessary for the administration of this
Rule.
(i) enforcement. No member or registered eligible business organization shall
be obligated to the Exchange for the payment of Exchange Services Fees
attributable to non-member transactions except to the extent that such fees
are collected from non-member customers; provided, however, that each
member or registered eligible business organization responsible for the
collection of Exchange Services Fees shall make a bona fide and diligent
effort to collect such amounts and shall not have the right, without prior
approval of the Exchange, to release or forgive any indebtedness of a
non-member to the Exchange for Exchange Service Fees. In the event of
delinquencies in the payment of Exchange Service Fees by a non-member, the
applicable Board in its discretion may order that further trading in the
accounts of such non-member shall be for liquidation only until the
indebtedness is paid.
(j) special assessments. This Rule shall not be construed to supersede Rule
240.00 in any way nor to abrogate the responsibility and right of the Board
to levy such additional assessments, charges or fees upon the membership as
may be necessary to meet the obligations of the Exchange. 136 (07/01/04)
450.01 Exchange Service Fees - Payment of the Exchange Service Fee in respect
to transactions executed by a Member, Membership Interest Holder, or Delegate on
the Floor as a floor broker for the account of others, under Rule 450.00, must
be remitted to the Exchange's Accounting Department within thirty days
commencing from the date of the Exchange's invoice to the member. Failure to pay
the invoiced transaction fees within the prescribed thirty days may result in
the suspension (pursuant to the provisions of Exchange Regulation 540.06) of the
defaulting member's membership privileges, including
floor access and the benefit of member transaction fees.
Payment of the Exchange Service Fee in respect to transactions for Members'
Membership Interest Holders' or Delegates' own accounts or Member firms'
accounts, under Rule 450.00, must be remitted to the Exchange's Accounting
Department by the member firm clearing such transactions within twenty-one days
commencing from the date of the Exchange's invoice to such clearing member firm.
No member or registered eligible business organization shall identify on its
statements to nonmember customers any charge as an "Exchange Service Fee" unless
the amount shown is actually due and payable to the Association under Rule
450.00. (04/01/00)
450.01A Exchange Service Fees - BE IT RESOLVED, that Regulation 450.01 be
adopted with effective date of April 1, 1974 for Exchange Service Fees on member
transactions and May 1, 1974 for Exchange Service Fees on non-member
transactions. (08/01/94)
450.02A Member's Own Account - For the purpose of implementing Rule 450.00,
the term "member's own account" shall refer only to those commodity futures or
commodity options trading accounts that are wholly owned by and held in the name
of one or more members. For any account held by more than one member, all trades
made for such account shall pay transaction fees equal to the highest fee
required of any of the individual participants in the account, in accordance
with Regulation 450.02E. An account owned by and held in the name of a
non-member spouse or other relative of a member shall not be considered a
member's account. (01/01/02)
450.02B Member's Own Account in Trust - For the purpose of Rule 450.00, a
commodity futures or commodity options trading account placed in trust shall be
deemed a "members own account" if the following are true:
(1) the member is the sole settlor of the trust; and
(2) the member is one of the trustees of the trust and as such trustee,
has sole control over the investment-making decisions of the trust;
and
(3) the beneficiaries of the trust include only the member, the member's
spouse and/or the member's descendants; and
(4) the trust declaration expressly incorporates the Rules and Regulations
of the Exchange, as may be amended; and
(5) the interest in the trust that inures to the beneficiaries of the
trust shall be subject to all Rules and Regulations of the Exchange,
as may be amended; and
(6) the non-member trustee, if any, expressly agrees in the trust
declaration, to be subject to all Rules and Regulations of the
Exchange, as amended.
The member must provide the Exchange, via the Member Services Department, a copy
of the trust declaration creating the trust described in the preceding sentence
as well as any amendments thereto along with a letter from an attorney stating
that in the attorney's opinion, the trust created is designed to achieve the
estate planning objectives of the member. Upon the member's death or if the
member is adjudged incompetent, any commodity futures or commodity options
trading account placed in trust pursuant to this section by such member will be
treated as a non-member trading account for purposes of implementing Rule
450.00. (01/01/02)
450.02C(i) Member Firm's Proprietary Account - For the purpose of implementing
Rule 450.00, the term "member firm's account" shall refer only to those
commodity futures or commodity options trading accounts that are wholly owned by
and held in the name of the member firm. The term "member firm" shall refer only
to a firm registered with the Exchange pursuant to Regulation 230.02. For an
account to qualify as member firm proprietary account, delegates and individuals
who are non-members with respect to the contracts being traded, who initiate
and/or enter trades on behalf of the proprietary account must meet the
following requirements:
(1) may not provide trading capital for the account; and
(2) may not have responsibility to provide capital based on trading
losses; and
(3) for individuals that are not issued a W-2 (or comparable documentation
in jurisdictions other than the United States) the firm must have a
written agreement detailing the full terms of their compensation
agreements; and
(4) may not contribute subordinated debt, unless the individual is a
partner or shareholder of the member firm; and
(5) gross trading profits and losses must be reported in the firm's income
statement.
Any account that does not meet the above criteria will be considered a joint
account with a non-member entity or individual and therefore, must comply with
Regulation 450.02E. (11/01/03)
450.02C(ii) Individual Member's Trading Account - For purposes of implementing
Rule 450.00, for an account to qualify as an individual member's account or a
joint account of individual members, where the trades are executed on e-cbot,
delegates or individuals who are non-members with respect to the contract being
traded, who initiate and/or enter trades on behalf of the account must meet the
following requirements:
(1) may not provide trading capital for the account; and
(2) may not have responsibility to provide capital based on trading
losses; and
(3) the individual member must have a written agreement detailing the full
terms of the non-member trader's compensation; and
(4) the trader may not make a loan to the individual member for the
purposes of providing trading capital.
A member that is trading on the floor may designate up to a maximum of two
clerks who may execute trades initiated by the member and executed through
e-cbot. Such trades will be eligible for fees at the individual member rate
(level 1).
Any account that does not meet the above criteria will be considered a joint
account with a non-member entity or individual, and therefore must comply with
Regulation 450.02E. (11/01/03)
450.02C(iii) Firm Owner Trading a Proprietary Account - In cases where a
non-member owner or partner, including limited liability partners, of a member
firm trades a member firm proprietary account, and where the owner/trader's
compensation is tied to the profitability of the specific proprietary
account(s), in order for the trades in such proprietary account to receive
member fee treatment, the owner/trader must maintain at least $200,000 in the
trading account(s) and the $200,000 must be available to support the trading
activity on the Exchange. If the owner/trader does not maintain the requisite
$200,000, the account will be considered a joint account between the member firm
and the non-member owner/trader, and thereby the transaction fees will be
determined in accordance with Regulation 450.02E. (11/01/03)
450.02D Member Firm Affiliates and Designated Passive Investor Entities
(i) Member Firm Affiliates - For purposes of this regulation, the term "member
firm affiliate" shall mean a non-Futures Commission Merchant, non-clearing
entity which is wholly owned by one or more member firms, which wholly owns a
member firm, or which is wholly owned by the same parent company(ies) as a
member firm. For purposes of this regulation, the term "member firm" shall refer
only to a firm registered with the Exchange pursuant to registration categories
(la), (1b), (2a) or (2b) of Regulation 230.02.
(a) A member firm affiliate may lease a Full or Associate Membership on its own
behalf, thereby qualifying for delegate fee treatment (i.e., the applicable
member firm fee plus the applicable delegate fee) with respect to its
transactions on the Exchange.
(b) A member firm which owns one or more Full Memberships in addition to those
required for its own registration under Rule 230.00, and/or any Associate
Membership(s), (hereinafter "non-qualifying memberships") may designate
such a non-qualifying membership to make its member firm affiliate eligible
for member firm transaction fee treatment. A non-qualifying membership may
not be designated for more than one member firm affiliate at any given
time.
(c) A member firm that has at least four (4) Full Memberships and two (2)
Associate Memberships registered on its behalf, including any Full
Memberships required for its own registration under Rule 230.00, may
designate any number of its member firm affiliates for member firm
transaction fee treatment. A member firm whose proprietary trading on the
Exchange includes only agricultural contracts may, at its option, designate
for member firm transaction fee treatment any number of its member firm
affiliates whose proprietary trading on the Exchange also includes only
agricultural contracts, if the member firm has at least five (5) Full
Memberships registered on its behalf.
(ii) Member Firm Designation of Passive Investor Entities - A member firm that
is registered with the Exchange pursuant to registration categories (1a), (1b),
(2a) or (2b) of Regulation 230.02, and that has at least four (4) Full
Memberships and two (2) Associate Memberships registered on its behalf including
any Full Memberships required for its own registration under Rule 230.00, and/or
member firm affiliates of a category (1a), (1b), (2a) or (2b) member firm, or a
member firm registered with the Exchange pursuant to registration category (3)
of Regulation 230.02, may designate, for member firm transaction fee treatment,
up to a total of five non-FCM, non-clearing passive investor entities, where the
member firm or member firm affiliate exercises trading control over, or is under
common trading control with, such entities, or in addition with respect to a
category (3) member firm, which wholly owns such entities. For purposes of this
regulation, a "passive investor entity" is defined as a commodity pool, hedge
fund, or other collective investment vehicle.
If a Regulation 230.02, category (1a), (1b), (2a) or (2b) member firm and/or its
member firm affiliates, or (3) member firm wishes to designate more than five
passive investor entities as described in this paragraph (ii), there must be an
additional four (4) Full Memberships and two (2) Associate Memberships
registered on the member firm's behalf, in order for the member firm and/or
member firm affiliates to be eligible to designate up to a total of six
additional such entities.
(iii) Provisions Applicable to Designations of Member Firm Affiliates and
Passive Investor Entities - All designations of member firm affiliates and
passive investor entities, as described in paragraphs (i) and (ii) above, shall
be subject to the following provisions:
(a) In order to become effective, the designation must be documented with, and
approved by, the Exchange in such manner as the Exchange prescribes.
(b) Upon such designation, the member firm affiliate or passive investor entity
shall be subject to the Exchange's jurisdiction and to all duties and
obligations imposed upon members and member firms under the Rules and
Regulations; provided, however, that the Exchange may exempt such member
firm affiliates or passive investor entities from any such duty or
obligation which, in the Exchange's sole judgment, is incompatible or in
conflict with, or is unrelated to, the activities of the member firm
affiliate or passive investor entity.
(c) The Exchange may withdraw its approval of such designation for good cause.
(d) A non-qualifying membership or all of the four (4) Full Memberships and two
(2) Associate Memberships, or five (5) Full Memberships pursuant to
paragraph (i)(c), registered on behalf of a Regulation 230.02, category
(1a), (1b), (2a), (2b) or (3) member firm will be subject to sale by the
Exchange for the acts or delinquencies of the member firm for which they
are registered and/or for the acts or delinquencies of any member firm
affiliate or passive investor entity that has been designated by the member
firm under this regulation.
(e) Upon the sale or transfer of a non-qualifying membership or any of such
four (4) Full Memberships or two (2) Associate Memberships, or five (5)
Full Memberships pursuant to paragraph (i)(c), claims may be filed pursuant
to Rule 253.00 against the member firm for which the membership is
registered and/or against any member firm affiliate or passive investor
entity that has been designated by the member firm under this regulation.
(04/01/04)
450.02E Joint Accounts - Any account where profits and/or losses are shared by
more than one party (member or non-member), shall pay Exchange transaction fees
based on the highest rate applicable of any of the account's participants. In
addition, a trading account that is funded by a loan shall be deemed a joint
account between the borrower and the lender unless it can be demonstrated that
the terms of the loan represent a reasonable interest rate, not affected by the
profits and/or losses generated in the account. Further, the terms of the loan
cannot suggest that the loan need not be paid back in the event of losses.
(10/01/02)
450.02F Transaction Fees for e-cbot Member Firms - Delegate transaction fee
rates shall apply to eligible business organizations which are e-cbot member
firms pursuant to Regulation 230.02 based on a delegated Full or Associate
Membership or a firm-registered Associate Membership. (12/01/03)
450.02G Fees in Connection with Firm-Owned Memberships and Membership Interests
- For purposes of Rule 450.00(a)(3), an individual utilizing a firm-owned
Membership or Membership Interest shall be treated as a member (rather than as
equivalent to a delegate) to the extent that such individual executes, or
initiates and executes, as applicable, trades on behalf of the proprietary
account or a customer account, as applicable, of an affiliate of the member firm
which owns his/her Membership or Membership Interest.
For purposes of this regulation, the term "affiliate" shall mean a member firm
affiliate as defined in Regulation 450.02D. For purposes of this regulation, the
term "member firm" shall refer only to a firm registered with the Exchange
pursuant to registration categories (1a), (1b), (2a), (2b) or (3) of Regulation
230.02. (11/01/03)
450.02H e-cbot Trades Executed by a Non-Member Terminal Operator - In order
for an individual Member or Membership Interest holder to receive member
transaction fee rates as specified in Rule 450.00(c)(1) for trades executed by a
non-member terminal operator, such non-member terminal operator must have
accessed the e-cbot system under a subgroup ID different from that of the
member account owner and may not otherwise have access to the member account
owner's open transactions. (07/01/03)
450.02I Category (3) Fees - Member firms qualified under Regulation 230.02
Category (3) will be granted the same fee treatment as the proprietary accounts
of Category (1a), (1b), (2a) and (2b) member firms where the trade is either
initiated or executed by a non-member. (11/01/03)
450.02J - Transaction Fee Status of CBOE Exercisers - Pursuant to Rules 450.00
and 221.00, as applicable, and in accordance with an October 7, 2004 Agreement
between the Exchange and the Chicago Board Options Exchange ("CBOE"), CBOT Full
Members and CBOT Full Member Delegates who utilize their Full Membership status
to exercise membership on the CBOE (hereinafter referred to as "Exerciser
Members") will be obligated to pay non-member (customer) rates for trades
executed on the CBOT Exchange Floor by or on behalf of such Exerciser Member at
any time when such Exerciser Member is logged on to the CBOE's electronic
trading platform, unless such Exerciser Member possesses another membership or
membership interest that has not either been delegated or, in the case of
another CBOT Full Membership, used as a basis to exercise and become a member of
the CBOE, and that entitles such member to trade in a particular product.
(12/01/04)
450.04 Exchange Service Fees - Adjustments - Exchange Service Fee adjustments
may be granted to or required of member firms which have made overpayments to or
underpaid the Exchange for any reason. The Exchange will only grant adjustments
to member firms for the overpayment of exchange service fees for a period of up
to six months back from the month-end preceding the date when a rebate request
is made by the firm. The Exchange will only require member firms to make
adjustments for the underpayment of exchange service fees for a period of up to
two years back from the end of the audit period selected by the Exchange.
Interest and or costs may be assessed in accordance with policies established by
the Exchange. (01/01/05)
450.05 Fees -- Members and member firms will be granted lower fees than non-
members. (11/01/00)
450.06 Member Fee Cap Clarification - The maximum amount of fees paid of
$25,000 as described in Rule 450.00 (a) applies only to trades executed on the
Exchange trading floor and not to trades executed through e-cbot. (01/01/02)
Ch4 Adjustments
460.01 Errors and Mishandling of Orders - (See 350.04) (08/01/94)
460.02 Checking and Reporting Trades - (See 350.02) (08/01/94)
460.03 Failure to Check Trades - (See 350.01) (08/01/94)
460.04 Price of Execution Binding - (See 331.01) (08/01/94)
Ch4 Customer Orders
465.01 Records of Customers' Orders - Immediately upon receipt in the sales
office of a customer order each member or registered eligible business
organization shall prepare a written record of the order. It shall be dated and
time-stamped when the order is received and shall show the account designation,
except that in the case of a bunched order the account designation does not need
to be recorded at that time if the order qualifies for and is executed pursuant
to and in accordance with CFTC Regulation 1.35(a-1)(5). The order shall also be
time-stamped when it is transmitted to the Floor of the Exchange and when its
execution, or the fact that it is unable to be executed, is reported from the
Floor of the Exchange to the sales office. All time-stamps required by this
paragraph shall show the time to the nearest minute.
Immediately upon receipt on the Floor of the Exchange of a customer order, each
member or registered eligible business organization shall prepare a written
record of the order. It shall be dated and time-stamped when the order is
received on the Floor and shall show the account designation, except that in the
case of a bunched order the account designation does not need to be recorded at
that time if the order qualifies for and is executed pursuant to and in
accordance with CFTC Regulation 1.35(a-1)(5). The order shall also be time-
stamped:
(a) when it is transmitted to the floor broker if it is not transmitted
immediately after it is received on the Floor, and
(b) if the written order is transmitted to the floor broker, when the order is
received back from the floor broker, or
(c) if the order is transmitted to the floor broker verbally or by hand
signals, when a report of its execution, or the fact that it is unable to
be executed, is received from the floor broker.
Only time-stamps which are specified by the Exchange and synchronized with the
Exchange Floor master clock may be used on the Exchange Floor.
It shall be an offense against the Association to manipulate or tamper with any
time-stamp on the Exchange Floor, so as to put it out of synchronization with
the master clock. Records of customer orders executed through the Exchange's
e-cbot system shall be governed by Regulations 9B.11 and 9B.18.
Any errors on written records of customer orders prepared on the Floor of the
Exchange may be corrected by crossing out the erroneous information without
obliterating or otherwise making illegible any of the originally recorded
information. (01/01/04)
465.02 Application and Closing Out of Offsetting Long and Short Positions -
(a) APPLICATION OF PURCHASES AND SALES. Except with respect to purchases or
sales which are for omnibus accounts, or where the customer or account
controller has instructed otherwise, any futures commission merchant,
subject to the Rules of the Exchange, who
(1) Shall purchase any commodity for future delivery for the account of
any customer when the account of such customer at the time of such
purchase has a short position in the same future of the same commodity
on the same market, or
(2) Shall sell any commodity for future delivery for the account of any
customer when the account of such customer at the time of such sale
has a long position in the same future of the same commodity on the
same market, or
(3) Shall purchase a put or call option for the account of a customer when
the account of such customer at the time of such purchase has a short
put or call option position in the same option series as that
purchased, or
(4) Shall sell a put or call option for the account of a customer when the
account of such customer at the time of such sale has a long put or
call option position in the same option series as that sold
shall on the same day apply such purchase or sale against such previously
held short or long futures or options position, as applicable, and shall
promptly furnish such customer a statement showing the financial result of
the transactions involved.
(b) CLOSE OUT AGAINST OLDEST POSITION. In all instances where the short or long
futures or options position in such customer's account immediately prior to
such offsetting purchase or sale is greater than the quantity purchased or
sold, the futures commission merchant shall apply such offsetting purchase
or sale to such portion of the previously held short or long position as
may be specified by the customer. In the absence of specific instructions
from the customer, the futures commission merchant shall apply such
offsetting purchase or sale to the oldest portion of the previously held
short or long position. Such instructions also may be accepted from any
person who, by power of attorney or otherwise, actually directs trading in
the customer's account unless the person directing the trading is the
futures commission merchant (including any partner thereof), or is an
officer, employee, or agent of the futures commission merchant. With
respect to every such offsetting transaction that, in accordance with such
specific instructions, is not applied to the oldest portion of the
previously held futures or options position, the futures commission
merchant shall clearly show on the statement issued to the customer in
connection with the futures or options transaction, that as a result of the
specific instructions given by or on behalf of the customer the transaction
was not applied in the usual manner i.e., against the oldest portion of the
previously held futures or option position. However, no such showing need
be made if the futures commission merchant has received such specific
instructions in writing from the customer for whom such an account is
carried.
(c) IN-AND-OUT TRADES; DAY TRADES. Notwithstanding the provisions of paragraphs
(a) and (b) above, this Regulation shall not be deemed to require the
application of purchases or sales closed out during the same day (commonly
known as "in-and-out trades" or "day trades") against short or long
positions carried forward from a prior date.
(d) EXCEPTIONS. The provisions of this Regulation shall not apply to:
(1) Purchases or sales constituting "bona fide hedging transactions" as
defined in C.F.T.C. Regulation 1.3(z).
(2) sales during a delivery period for the purpose of making delivery
during such delivery period if such sales are accompanied by
instructions to make delivery thereon, together with warehouse
receipts or other documents necessary to effectuate such delivery.
(3) Purchases or sales held in error accounts, including but not limited
to floor broker error accounts, and purchases or sales identified as
errors at the time they are assigned to an account that contains other
purchases or sales not identified as errors and held in that account
("error trades"), provided that:
(i) Each error trade does not offset another error trade held in
the same account;
(ii) Each error trade is offset by open and competitive means on or
subject to the rules of a contract market by not later that the
close of business on the business day following the day the
error trade is discovered and assigned to an error account or
identified as an error trade, unless at the close of business
on the business day following the discovery of the error trade,
the relevant market has reached a daily price fluctuation limit
and the trader is unable to offset the error trade, in which
case the error trade must be offset as soon as practicable
thereafter; and
(iii) No error trade is closed out by transferring such an open
position to another account also controlled by that same
trader.
(e) The statements required by paragraph (a) of this Regulation may be
furnished to the customer or account controller by means of electronic
transmission, in accordance with CFTC Regulation 1.33(g). (11/01/04)
465.02A Exchange's No Position Stance on FCM's Internal Bookkeeping
Procedures - The Exchange takes no position regarding the internal bookkeeping
procedures of a commission merchant who, for the convenience of a customer, may
hold concurrent long and short position in the same commodity, month (and strike
price). This does not relieve the commission merchant of its responsibilities
under Regulation 465.02 of offsetting the position for Exchange reporting
purposes (i.e., Large Trader, Open Interest and Long Positions Eligible for
Delivery) and promptly furnishing the customer a purchase and sale statement
showing the financial result of the transactions involved. (08/01/94)
465.03 Orders and Cancellations Accepted On A 'Not Held' Basis - (See 337.01)
(08/01/94)
465.04 Records of Floor Order Forms - Clearing Members shall establish and
maintain procedures that will assure the complete accountability of all floor
order forms used on the Exchange Floor. Machine and handwritten orders are
required to be machine sequentially prenumbered and maintained by the firm in
sequential order (except as otherwise provided in Regulation 465.05). (10/01/01)
465.05 Floor Order Forms - All floor orders must be in a form approved by the
Floor Governors Committee or an employee of the Office of Investigations and
Audits designated by the Floor Governors Committee.
Floor order forms must be machine sequentially prenumbered and contain the
following machine preprinted information:
(1) the name of the Clearing Member (except as provided below);
(2) bracket designations,
(3) a space designated for the customer account number; and
(4) a space designated for the executing broker identification. (10/01/01)
Should a Clearing Member authorize a customer to enter orders directly with a
floor broker in accordance with Appendix 3B(F), the Clearing Member, at its sole
discretion, may authorize the floor broker to enter the Clearing Member's name
on a floor order ticket that does not include the pre-printed name of the
Clearing Member. In such circumstances, the floor broker must utilize machine
sequentially pre-numbered orders that include the machine pre-printed acronym of
the floor broker, and the floor broker must assure the complete accountability
of all floor order forms used on the Exchange Floor.
465.06 Broker's Copy of Floor Orders - Upon request, a clearing firm must
provide its broker, in an expeditious and reasonable manner, with a copy of
every floor order he is asked to execute. (08/01/94)
465.07 Designation of Order Number Sequences - To facilitate Exchange
monitoring of order flow volume, the Exchange may prescribe particular sequences
of order form numbers for member firms to use in specified areas of the Exchange
Floor. (07/01/94)
465.08 Post-Execution Allocation - All trades entered and executed in
accordance with CFTC Regulation 1.35(a-1)(5) regarding orders eligible for
post-execution allocation, must be allocated in sufficient time to meet the
trade submission requirements of the Clearing Services Provider for the trade
date of the order. (01/01/04)
466.00 Orders Must be Executed in the Public Market - (See 332.00) (08/01/94)
Ch4 Offices and Branch Offices
475.00 Offices and Branch Offices - Member firms and member sole proprietors
may establish offices other than main offices. All offices of member firms and
member sole proprietors and employees thereof shall be subject to the Rules and
Regulations of the Association, and shall be subject to the jurisdiction of the
Business Conduct Committee in connection therewith; provided, however, that the
Business Conduct Committee may exempt such offices and employees from any such
Rule or Regulation which is incompatible with, in conflict with or unrelated to
the functions performed by them. The term "branch office" shall include each
branch office or wholly-owned subsidiary of the member firm that solicits,
accepts, or services Commodity Futures Contracts or Options and/or is listed by
the member firm as a branch office with the National Futures Association.
A branch office must conduct business under the same name as the parent firm or
corporation. 129 (01/01/99)
Ch4 APs and Other Employees
480.01 APs - An Associated Person ("AP") is an employee of a member sole
proprietor or member firm who solicits, accepts or services business other than
in a clerical capacity in commodity futures and commodity options, and who has
been granted registration as an Associated Person ("AP") by the Commodity
Futures Trading Commission (CFTC) or the National Futures Association (NFA)
pursuant to the Commodity Exchange Act. (08/01/94)
480.02 Employers Responsible for APs - Employers, in all instances, shall be
responsible for the acts and omissions of their APs and branch office managers.
(08/01/94)
480.09 Other Employees - The Business Conduct Committee may require that the
name, remuneration, term of employment and actual duties of any employee of a
member or of a member firm shall be stated to the Committee, together with such
other information with respect to the employee as the Committee may deem
requisite. The Committee may, in its discretion, disapprove of said employment,
remuneration or term of employment. (08/01/94)
480.10 Supervision - Any willful act or omission by which a member fails to
ensure compliance with the rules, regulations and bylaws of the Association by
such member's partners, employees, agents or persons subject to his supervision
shall constitute an offense against the Association by the member.
Any willful act or omission by which a member firm fails to ensure compliance
with the rules, regulations and bylaws of the Association by such member firm's
partners, directors, officers, employees or agents shall constitute an offense
against the Association by the member firm. (07/01/95)
Ch4 Options Transactions
490.00 Application of Rules and Regulations - Unless specifically negated or
unless superseded, each Rule or Regulation of the Association pertaining to
transactions in future delivery contracts shall apply with equal force and
effect to transactions in options. (08/01/94)
490.02 Option Customer Complaints - Each commission merchant engaging in the
offer or sale of options pursuant to these Rules and Regulations shall, with
respect to all written option customer complaints and oral option customer
complaints which result in, or which would result in an adjustment to the option
customer's account in an amount in excess of one thousand dollars:
(1) Retain all such written complaints and make and retain written records
of all such oral complaints; and
(2) Make and retain a record of the date the complaint was received, the
employee who serviced the account, a general description of the matter
complained of, and what, if any, action was taken by the commission
merchant in regard to the complaint. (08/01/94)
490.03 Supervision Procedures - Each commission merchant engaging in the
offer or sale of options pursuant to these Rules and Regulations shall adopt and
enforce written procedures pursuant to which it will be able to supervise
adequately each option customer's account, including but not limited to, the
solicitation of such account; provided that, as used in this Regulation, the
term "option customer" does not include another commission merchant. (08/01/94)
490.03A Introducing Brokers Guaranteed by Member FCMs/Supervision
Procedures - The Board of Directors in a special polling held on Friday,
February 3, 1984 approved the following Resolution of the Member Services
Committee pursuant to Regulation 490.03 of the Association.
WHEREAS, The Commodity Futures Trading Commission has provided by
regulation that introducing brokers operating pursuant to a guarantee
agreement with an FCM be permitted to solicit and/or accept orders for
exchange-traded options if the Exchange of which the guarantor FCM is a
member has adopted rules which govern the commodity option related activity
of the guaranteed introducing broker; and
WHEREAS, it is the desire of certain members to permit the solicitation
and/or acceptance of Chicago Board of Trade options by introducing brokers
guaranteed by a member FCM;
NOW THEREFORE, be it -
RESOLVED, that each Rule or Regulation of the Association pertaining to the
options sales practices of members or their employees shall apply with equal
force and effect to the options sales practices of introducing brokers who are
operating pursuant to a guarantee agreement with a member FCM and such member
FCM shall be fully responsible therefor, and that this Resolution shall remain
in effect until rescinded by a vote of the members or until such time as the
National Futures Association or other registered futures association adopts
rules which are approved by the Commodity Futures Trading Commission to govern
the commodity option related activity of such guaranteed introducing brokers.
(08/01/94)
490.05 Disclosure - Each commission merchant engaging in the offer or sale of
options pursuant to these Rules and Regulations shall enforce the following
requirements pertaining to disclosure statements:
(1) Prior to opening an options account for an options customer, each
commission merchant must furnish the options customer with a separate
written risk disclosure statement, as set forth and described in
Commodity Futures Trading Commission Regulation 33.7, and receive from
the options customer an acknowledgement, signed and dated by the
options customer, that he received and understood the disclosure
statement.
(2) Each disclosure statement and acknowledgement must be retained by the
commission merchant in accordance with applicable Regulations of the
Commodity Futures Trading Commission.
(3) Prior to the entry into an options transaction pursuant to these Rules
and Regulations, each commission merchant or the person soliciting or
accepting the order therefor must provide each options customer with
all of the information required under the disclosure statement;
Provided, further, that the commission merchant must provide current
information to an options customer if the information provided
previously has become inaccurate.
(4) Prior to the entry into an options transaction pursuant to these Rules
and Regulations, each options customer or prospective options customer
shall, to the extent the following amounts are known or can reasonably
be approximated, be informed by the person soliciting or accepting the
order therefore of the amount of the premium, commissions, costs, fees
and other charges to be incurred in connection with the options
transaction, as well as the strike price and all costs to be incurred
by the options customer if the option is exercised; in addition, the
limitations, if any, on the transfer of an options customer's account
to a commission merchant other than the one through whom the options
transaction is to be executed shall also be provided in writing.
(5) For the purposes of this Regulation, a commission merchant shall not
be deemed to be an options customer. (08/01/94)
490.06 Promotional Material - Each commission merchant engaging in the offer
or sale of futures and options pursuant to these Rules and Regulations shall
promptly make available upon request to the Office of Investigtions and Audits
all promotional material pertaining to trading in such futures and options.
For the purposes of this Regulation, the term "promotional material" includes:
(1) any text of a standardized oral presentation, or any communication for
publication in any newspaper, magazine or similar medium, or for
broadcast over television, radio, or other electronic medium, which is
disseminated or directed to a customer or prospective customer
concerning a commodity futures or option transaction;
(2) any standardized form of report, letter, circular, memorandum or
publication which is disseminated or directed to a customer or
prospective customer; and
(3) any other written material disseminated or directed to a customer or
prospective options customer for the purpose of soliciting a futures
or options order, including any disclosure statement. (08/01/94)
490.07 Sales Communication - Each commission merchant engaging in the offer
or sale of futures and options pursuant to these Rules and Regulations is
prohibited from making fraudulent or high-pressure sales communications relating
to the offer or sale of such futures and options. (08/01/94)
490.09 Reports by Commission Merchants - Each commission merchant shall make
and submit such reports showing options positions held by any of its customers,
in such form as may be required from time to time by the Office of
Investigations and Audits or the Business Conduct Committee. Specifically, and
without limiting the authority of the Office of Investigations and Audits or the
Business Conduct Committee under this Regulation, all information needed to
comply with Part 16 of the Commission's Regulations (17 CFR Part 16) may be
collected from any member. (08/01/94)
[Enlarge/Download Table]
============================================================================================
Chapter 5
Disciplinary Proceedings
============================================================================================
Ch5 Offenses......................................................................
500.00 Inequitable Proceedings...............................................
501.00 Fictitious Transactions...............................................
502.00 Demoralization of Market..............................................
503.00 Misstatements.........................................................
504.00 Acts Detrimental to Welfare of the Association........................
504.00A Transactions in Warehouse Receipts....................................
505.00 Commodity Exchange Act................................................
506.00 Reckless Dealing......................................................
507.00 Investment Trust Corporation..........................................
508.00 Circulation of Rumors.................................................
509.00 Other Offenses........................................................
511.00 Trading on Other Exchanges............................................
512.00 Insolvency............................................................
513.00 Announcement of Suspension............................................
514.00 Insolvent Member......................................................
515.00 Investigation.........................................................
515.01 Insolvency............................................................
516.00 Reinstatement.........................................................
517.00 Suspended Member......................................................
518.00 Suspension for Default................................................
519.00 Decorum Offenses......................................................
519.00A 505
519.01 Committee Procedure...................................................
519.02 Floor Conduct Committee...............................................
519.03 Bracketing Violations.................................................
519.05 Weapons Prohibition...................................................
519.06 Submission of Computerized Trade Reconstruction Data..................
519.07 Sexual Harassment.....................................................
519.08 TradeTalk Violations..................................................
520.00 Smoking...............................................................
520.00A Exchange Floor Fines..................................................
521.00 Floor Access..........................................................
Ch5 Proceedings...................................................................
540.00 Proceedings Before The Board..........................................
540.00A Committee Authority To Refer Matters for Investigation................
540.01 Review Of Investigation Report........................................
540.02 Notice and Answer in Connection with Disciplinary Proceedings.........
540.03 Procedures for Hearings on Charges....................................
540.04 Disciplinary Decisions................................................
540.05 Appeals from a Decision of a Disciplinary Committee...................
540.06 Procedures For Member Responsibility Actions..........................
540.07 Finality Of Disciplinary Decisions And Member Responsibility Actions..
540.08 Offers of Settlement..................................................
540.09 Offers of Settlement..................................................
540.10 Disciplinary Jurisdiction Over Agricultural Regular Firms.............
540.11 Appellate Committee...................................................
[Download Table]
540.12 Hearing Committee.....................................................
540.13 Application of Rules and Regulations..................................
540.15 Failure to Pay a Disciplinary Fine....................................
541.00 Special Investigations By Board.......................................
542.00 Business Conduct Committee............................................
543.00 Floor Governors Committee.............................................
543.01 Investigations........................................................
544.00 Waiver of Hearing.....................................................
545.00 Testimony And Production Of Books And Records.........................
545.01 Furnishing Information................................................
545.02 Record Keeping........................................................
545.03 Record Keeping Qualifications.........................................
545.04 Report Transmission Requirement..................................
545.05 Maintenance of Telephone Recordings...................................
546.00 Testimony Before Other Exchanges......................................
548.00 Incriminating Evidence................................................
549.00 Depositions of Witnesses..............................................
550.00 Rehearing.............................................................
551.00 Financial Compliance Committee........................................
Ch5 Penalties...................................................................
560.00 Expulsion and Suspension from Membership..............................
560.01 Disciplinary Notice...................................................
560.02 Association Bar.......................................................
561.00 Suspended or Expelled Member Deprived of Privileges...................
562.00 Discipline During Suspension..........................................
563.00 Trade Checking Penalties..............................................
================================================================================
Chapter 5
Disciplinary Proceedings
================================================================================
Ch5 Offenses
500.00 Inequitable Proceedings - It shall be an offense against the
Association to violate any Rule or Regulation of the Association or any policy,
Rule or Regulation of the Clearing Services Provider to which CBOT Clearing
members are subject pursuant to a Clearing Services Agreement between the
Exchange and such Clearing Services Provider, regulating the conduct or business
of members, or any agreement made with Association, or engage in fraud,
dishonorable or dishonest conduct, or in conduct or proceedings inconsistent
with just and equitable principles of trade, or make default relating to the
delivery of contracts traded for future delivery (unless such default was
unintentional). 141 (01/01/04)
501.00 Fictitious Transactions - It shall be an offense against the
Association to create fictitious transactions or to give an order for the
purchase or sale of futures or options the execution of which would involve no
change in ownership, or to execute such an order with knowledge of its
character. 142 (08/01/94)
502.00 Demoralization of Market - Purchases or sales of commodities or
securities, or offers to purchase or sell commodities or securities, made for
the purpose of upsetting the equilibrium of the market and bringing about a
condition of demoralization in which prices will not fairly reflect market
values, are forbidden and any member who makes or assists in making such
purchase or sale or offers to purchase or sell with knowledge of the purpose
thereof, or who, with such knowledge shall be a party to assist in carrying out
any plan or scheme for the making of such purchases or sales or offers to
purchase or sell, shall be deemed to be guilty of an act inconsistent with just
and equitable principles of trade. 143 (08/01/94)
503.00 Misstatements - It shall be an offense against the Association to make
a misstatement upon a material point to the Board, or to a Standing or Special
Committee, or to the Executive Committee, or to the Clearing Services Provider,
or on an application for membership.
If, after notice and opportunity for hearing in compliance with Regulation
540.02 and 540.03, the Hearing Committee finds that a member, prior to his
application for membership, has been guilty of a fradulent, dishonorable, or
dishonest act and that the facts and circumstances thereof were not disclosed on
his application for membership, the member may be expelled or suspended in
accordance with this chapter. 144 (01/01/04)
504.00 Acts Detrimental to Welfare of the Association - It shall be an
offense against the Association to engage in any act which may be detrimental to
the interest or welfare of the Association. 145 (08/01/94)
504.00A Transactions in Warehouse Receipts - Rule 504.00
It has come to the attention of the Directors that certain member firms have
entered into contracts for the purchase and/or sale for deferred delivery of
warehouse receipts for grain in store in Chicago.
In the opinion of the Directors, this practice is unusual and irregular and is
in violation of various Rules and Regulations of the Association and is
detrimental to the interest and welfare of the Association under Rule 504.00.
You are hereby notified that members are liable to discipline if they enter into
contracts for the purchase or sale for deferred delivery of grain in store in
Chicago or of warehouse receipts issued against grain in elevators located in
the Chicago Switching District.
This interpretation does not affect the purchase and sale of grain for future
delivery consummated in accordance with the Rules and Regulations relating to
futures contracts; nor sales in store when payment and delivery is made on the
following day nor the purchase and sale of warehouse receipts on a 'when
Ch5 Offenses
------------
delivered' basis entered into after the expiration of trading in a contract and
requiring performance on or before the end of the delivery month. 3R
(08/01/94)
505.00 Commodity Exchange Act - Any member or any registered eligible
business organization adjudged guilty of a violation of the Commodity Exchange
Act or of any Regulation or Order thereunder, by the final decision in a federal
administrative or judicial proceeding may be deemed to have violated Rule 504.00
of the Association. 603 (04/01/98)
506.00 Reckless Dealing - Reckless and unbusinesslike dealing is inconsistent
with just and equitable principles of trade. 146 (08/01/94)
507.00 Investment Trust Corporation - Participation by a member, or by a firm
or corporation, registered under the provisions of these Rules and Regulations,
in the formation or management of investment trust corporations, or similar
organizations, which in the opinion of the Board involve features which do not
properly protect the interests of investors therein, may be held to be an act
detrimental to the interests or welfare of the Association. 148 (08/01/94)
508.00 Circulation of Rumors - The circulation in any manner of rumors of a
sensational character by a member, in any case where such act does not
constitute fraud or conduct inconsistent with just and equitable principles of
trade, is an act detrimental to the interest or welfare of the Association.
Members shall report to the Secretary any information which comes to their
notice as to the circulation of such rumors. 149 (08/01/94)
509.00 Other Offenses
A. It shall be an offense against the Association to:
(a) Attempt extortion;
(b) Trade systematically against the orders or position of his customers;
(c) Manipulate prices of or attempt to corner the market in any commodity or
security;
(d) Disseminate false or inaccurate market information;
(e) Trade or accept margins after insolvency;
(f) Make any trade for the account of or give up the name of any clearing
member without authority from such clearing member;
(g) Be deprived of the privilege of trading under the Commodity Exchange Act;
(h) Trade for any person deprived of the privilege of trading under the
Commodity Exchange Act;
(i) Accept an order or make a trade for any employees of the Clearing Services
Provider except in the exercise of their official duties;
(j) Fail to comply with an order or award of the Committee of Arbitration. 150
B. No member shall be directly or indirectly interested in or associated in
business with, or have his office directly or indirectly connected by
public or private wire or other method or contrivance with, or transact any
business directly or indirectly with or for
(a) Any bucket shop; or
(b) Any organization, firm, or individual making a practice of dealing on
differences in market quotations; or
(c) Any organization, firm or individual engaged in purchasing or selling
commodities or securities for customers and making a practice of taking the
side of the market opposite to the side taken by customers. 152 (01/01/04)
511.00 Trading on Other Exchanges - No member of this Association shall be
permitted to trade on any exchange in the City of Chicago whose Constitution,
By-Laws, Rules, or Regulations prescribe or
519.00A Unauthorized Entry - Unauthorized entry into the trading areas (see
310.01) shall be deemed to constitute presence in restricted areas. (08/01/94)
519.01 Committee Procedure -
(a) FLOOR CONDUCT COMMITTEE.
(i) The Floor Conduct Committee may impose minor penalties against members
for decorum offenses committed by such members or by any person or
persons for whom such members are responsible. The Floor Conduct
Committee may impose minor penalties for the offenses set forth in
Regulation 520.00A. Minor penalties for the purpose of this Regulation
shall be defined as a warning, fines not exceeding $5,000 for any one
offense and/or access denial not to exceed five days. A respondent may
request a hearing by filing a written request for a hearing with the
Exchange Services Department within ten (10) business days after the
penalty is imposed; the Floor Conduct Committee shall hear the matter
in accordance with Regulation 540.02 through 540.05. The decision of
the Floor Conduct Committee may be appealed to the Appellate Committee
as provided in Regulation 519.02(d). Failure to request a hearing
shall be deemed a consent to the warning or fine. Unless a hearing is
requested, if a fine is not paid within thirty (30) days after it was
due, the Floor Conduct Committee may, without hearing, revoke the
badge or suspend the floor privileges of a floor clerk for whose
conduct the fine was imposed.
(ii) The Floor Conduct Committee pursuant to this Regulation may impose
minor penalties for disorderly conduct, intentional physical abuse,
sexual harassment and the use of profane or obscene language. The
Floor Conduct Committee, in its discretion, may impose a fine not to
exceed $5,000, in addition to any access denial, for any violation
within its jurisdiction regardless of the number of the offense.
(iii) Any member or individual with floor access privileges who has received
a Floor Conduct Committee Notice of Rule(s) Violation ("ticket") for a
decorum offense of Disorderly Conduct, Intentional Physical Abuse,
Sexual Harassment and/or Use of Profane or Obscene Language
Ch5 Offenses
------------
and, during the same trading session, engages in a further Rule or
Regulation violation relating to Disorderly Conduct, Intentional
Physical Abuse, Sexual Harassment and/or Use of Profane or Obscene
Language may, in addition to other sanctions (including, but not
limited to, fines, suspensions and expulsions imposed by the
Association pursuant to the Rules and Regulations) be immediately and
summarily removed from the Exchange trading floor and denied trading
floor access for the remainder of the trading session pursuant to the
following procedures:
(1) Certification by the Chairman of the Pit Committee (or, in the
Chairman's absence, by a Vice Chairman of the Pit Committee)
that the individual has continued to engage in Disorderly
Conduct, Intentional Physical Abuse, Sexual Harassment and/or
Use of Profane or Obscene Language after having previously
received a Floor Conduct Committee Notice of Rule (s) Violation
("ticket") for the same offense in the same trading session; and
(2) Approval of such summary action by a member of the Floor
Governors Committee and a member of the Board of Directors or by
two members of the Board of Directors, provided that no
individual granting such approval shall have been involved in
the altercation.
Additionally, should the first such offense be of such a serious nature, the
individual similarly may be denied trading floor access for the duration of the
trading session pursuant to the above procedure.
(b) CTR SUBCOMMITTEE.
(i) The Chairman of the Business Conduct Committee and the Chairman of the
Floor Governors Committee may each appoint at least two members of
their respective Committees to serve on a joint CTR Subcommittee. The
CTR Subcommittee shall, by a majority vote, elect a Chairman. The CTR
Subcommittee shall address violations involving the accurate and
complete maintenance of books and records, including errors or
omissions in the submission of Computerized Trade Reconstruction Data.
In fulfilling its responsibilities, the CTR Subcommittee shall have
the same authority granted to the Business Conduct Committee and the
Floor Governors Committee in Rules 542.00 and 543.00, respectively, to
issue preliminary charges and to conduct hearings with regard to
specified penalties, and shall have the same authority granted to such
Committees to impose penalties pursuant to settlement agreements in
accordance with Regulation 540.09.
(ii) The CTR Subcommittee may, without hearing, impose minor penalties
against members or member firms for violations of Regulations 332.02,
332.04, 332.041, 332.05, 332.06, 332.07, 332.08 or 332.09 that are
within the jurisdiction of either the Floor Governors Committee or the
Business Conduct Committee. Minor penalties for the purpose of this
subparagraph shall be defined as fines not exceeding $1,000 for any
one offense.
(iii) Following is the schedule of minor penalties the CTR Subcommittee may
impose pursuant to subparagraph (ii); however, this schedule is non-
binding, and the CTR Subcommittee, in its discretion, may impose a
fine not to exceed $1,000 for any violation within its jurisdiction
regardless of the number of the offense:
---------------------------------------------------------------------
ERRORS OR OMISSIONS IN BRACKETING 1st Offense $ 100 fine
-----------------------------
TRADES: 2nd Offense $ 250 fine
-----------------------------
3rd Offense $ 500 fine
-----------------------------
4th Offense $1,000 fine
---------------------------------------------------------------------
ERRORS OR OMISSIONS IN SUBMISSION OF 1st Offense $ 100 fine
-----------------------------
COMPUTERIZED TRADE RECONSTRUCTION 2nd Offense $ 250 fine
-----------------------------
DATA: 3rd Offense $ 500 fine
-----------------------------
4th Offense $1,000 fine
---------------------------------------------------------------------
(iv) The Floor Governors Committee may, without hearing, impose minor
penalties against members for intra-association or contiguous
association trading in excess of the percentages permitted by the
Board pursuant to Regulation 330.03. Minor penalties for the purpose
of this subparagraph shall be defined as fines not exceeding $5,000
for any one offense.
(v) Following is the schedule of minor penalties the Floor Governors
Committee may impose pursuant to subparagraph (iv); however, this
schedule is non-binding, and the Floor Governors Committee, in its
discretion, may impose a fine not to exceed $5,000 for any violation
within its jurisdiction regardless of the number of the offense
Ch5 Offenses
------------
---------------------------------------------------
1st Offense $ 500 fine
---------------------------------------------------
2nd Offense within 24 months $1,000 fine
---------------------------------------------------
3rd Offense within 24 months $2,500 fine
---------------------------------------------------
Any subsequent offense within 24 months $5,000 fine
---------------------------------------------------
(vi) At the time of an offense of the type set forth in subparagraph
(iv), or as soon thereafter as practical, a representative of
the Office of Investigations and Audits, shall upon the
authorization of one member of the Floor Governors Committee, issue
a ticket to the offender notifying the member or member firm that
the Floor Governors Committee may impose a summary penalty in
accordance with this regulation or may issue charges against the
member or member firm and impose penalties as authorized in Rule
543.00. A representative of the Office of Investigations and Audits
shall submit a copy of the ticket to the Floor Governors Committee.
The Committee shall then determine whether to summarily impose a
minor penalty or to issue charges. The Committee shall also have the
authority to summarily impose minor penalties or to issue charges
for the types of offenses set forth in subparagraph (iv) on the
basis of reports presented to the Committee by the Office of
Investigations and Audits.
(vii) A respondent may request an appeal of a minor penalty by filing a
written request for a hearing with the Office of Investigations and
Audit within ten (10) business days after the penalty is imposed.
The CTR Subcommittee shall hear the matter and its decision shall be
final and may not be appealed. Failure to request a hearing shall be
deemed a consent to the fine.
(viii) Whenever the CTR Subcommittee summarily imposes a minor penalty
against a member or member firm, the member or member firm shall be
given written notification of the penalty. The notice shall inform
the member or member firm of the right to appeal the penalty to the
CTR Subcommittee and the consequences of a failure to pay a fine if
no hearing is requested.
(ix) Nothing contained herein shall be construed to limit or restrict the
powers and authority of the Business Conduct Committee or the Floor
Governors Committee. (05/01/02)
519.02 Floor Conduct Committee -
(a) The Chairman of the Association may, with the consent of the Board, appoint
members to a Floor Conduct Committee. Members of the Committee may not be
members of the Floor Governors Committee.
(b) Meetings. The Floor Conduct Committee shall determine the time and place of
its meetings and the manner and form in which such meetings shall be
conducted. In the interest of efficiency, the Chairman of the Floor Conduct
Committee may appoint panels of Floor Conduct Committee members to hold duly
constituted meetings. Any such panel shall consist of three or more members
of the Floor Conduct Committee. The majority vote of such a panel of the
Committee shall be the official act or decision of the Committee. The
Chairman of the Floor Conduct Committee shall determine for each meeting, in
his or her sole discretion, whether a panel or the full Floor Conduct
Committee shall convene.
(c) Duties of Committee. It shall be the function and duty of the Floor Conduct
Committee to ensure decorum on the Floor of the Exchange in regard to
decorum offenses set forth in Regulations 520.00A, 519.00A, 519.05 and
519.07 and in accordance with Rule 519.00 and Regulation 519.01. Floor
Conduct Committee members shall issue a ticket to an offender notifying him
that the Floor Conduct Committee has imposed a warning or fine as described
in Regulations 520.00A, 519.00A and/or 519.05 and in accordance with Rule
519.00 and Regulation 519.01 for such violations which occur in the trading
pits, including the steps leading into the pit. The ticket requires the
signature of two members of the Floor Conduct Committee.
The Committee shall have the authority to discipline a member or other
person with trading privileges found to have violated any Rule or Regulation
within its jurisdiction by reprimand, by denial of the
Ch5 Offenses
------------
privileges of the Floor of the Exchange not to exceed five (5) days and/or
by the imposition of a fine not to exceed $5,000.
Pit Committee members shall be considered members members of the Floor
Conduct Committee for the sole purpose of issuing tickets for decorum
offenses within their pit in accordance with Regulation 360.01.
The Floor Conduct Committee shall be responsible for issuing badges to and
recalling badges from all non-members, except as otherwise provided within
the Rules and Regulations.
(d) Appeal. A member, member firm, or other person with floor privileges, may
appeal from the decision of the Committee by filing with the Secretary of
the Association, within ten business days after the Committee's decision is
sent to the respondent, a Notice of Appeal to the Appellate Committee
requesting a review by the Appellate Committee of all or part of the
Committee's decision.
(e) Offense Against the Association. Any member of the Association, member firm,
or other person with floor privileges who fails to comply with the
disciplinary action of the Committee after such action becomes effective
shall be charged with an offense against the Association, and if found
guilty, shall either be fined, suspended, or expelled by the Board.
(f) Hold-over Member. Whenever the Committee members have begun to hear or
review evidence and argument in any proceeding, and the term of one or more
of the members expires, such member or members may continue in office until
the proceeding has ended. A hold-over member shall not participate in any
other Committee business, nor shall his continuation in office impair the
appointment of his successor or his successor's right to participate in all
other Committee business. (02/01/04)
519.03 Bracketing Violations - The Floor Governors Committee may levy fines
for violations of Regulation 332.02, pertaining to the recording of bracket
data, in accordance with the Summary Procedures as provided in Regulation
519.01(b). (08/01/94)
519.05 Weapons Prohibition - No weapons shall be permitted on the Exchange
Floor or in the lobby area adjacent to the Exchange Floor. Any violation of this
Regulation shall be deemed a decorum offense and penalties may be imposed
pursuant to Rule 519.00 and Regulation 519.01. (08/01/94)
519.06 Submission of Computerized Trade Reconstruction Data - The Floor
Governors Committee may levy fines for violations of Regulation 545.02, 332.04,
332.041, 332.05, 332.06, 332.07, 332.08, and 332.09, pertaining to the accurate
and complete maintenance of books and records, including the submission of
Computerized Trade Reconstruction data, in accordance with the Summary
Procedures as provided in Regulation 519.01(b). (07/01/95)
519.07 Sexual Harassment - Sexual harassment will not be tolerated on the
Floor or Halls of the Exchange. Sexual harassment consists of unlawful verbal or
physical conduct directed at a person when that conduct is based on that
person's sex and has a substantial adverse effect on him or her in the
workplace. Such conduct may include, but is not limited to, the following:
1. requests for sexual favors that may or may not be accompanied by threats or
promises of preferential treatment with respect to an individual's
employment status;
2. verbal, written or graphic communications of a sexual nature, including
lewd or sexually suggestive comments, off-color jokes of a sexual nature or
displays of sexually explicit pictures, photos, posters, cartoons, books,
magazines or other items; and
3. patting, pinching, hitting or any other unnecessary contact with another
person's body or threats to take such action.
Ch5 Offenses
------------
Any violation of this Regulation shall be deemed a decorum offense and penalties
may be imposed pursuant to Rule 519.00 and Regulation 519.01. (01/01/96)
519.08 TradeTalk Violations - A member may not use the TradeTalk message
board, which is generally accessible to all members connected to the MemberNet
website, to post any material which is knowingly false or inaccurate, contains
foul, vulgar, or abusive language, is defamatory, degrading, libelous,
threatening, harassing, obscene, invasive of a person's privacy, discusses
illegal activities, or violates any law. Any violation of this Regulation shall
be deemed a decorum offense.
A member shall receive a written notification from the Floor Conduct Committee
if it has reason to believe that he may have committed a TradeTalk violation,
and he shall be directed to appear before the Floor Conduct Committee prior to
the imposition of any penalty described herein. However, any failure to appear
after receiving such written notification shall be deemed a consent to any
penalty that the Floor Conduct Committee shall subsequently impose pursuant to
this Regulation.
The Floor Conduct Committee may impose a denial of access to TradeTalk for up to
90 days for the first TradeTalk offense, and a denial of such access for up to
180 days for a second or subsequent offense. In addition, the Floor Conduct
Committee may impose a permanent denial of access to TradeTalk, in its
discretion, in egregious circumstances.
The decision of the Floor Conduct Committee shall be final, and may not be
appealed.
In addition, the Floor Conduct Committee shall be authorized to remove any
message from TradeTalk, at any time and in advance of any related hearing for
denial of access of TradeTalk, if the Committee determines that such message is
inappropriate under the standards set forth in the TradeTalk Terms and
Conditions of Use. (09/01/04)
520.00 Smoking - Smoking of cigarettes and other smoking materials is
prohibited in the Exchange Halls (during trading hours or business days). Any
member, or any person affiliated with a registered eligible business
organization who violates this Rule shall be guilty of an offense against the
Association and, in the case of persons affiliated with a registered eligible
business organization, such firm may also be found guilty of an offense against
the Association. 164 (04/01/98)
520.00A Exchange Floor Fines - Designated Exchange staff shall impose a
fine of $25 to $5,000, as directed by the Floor Conduct Committee for each
violation of Rules, Regulations, directives or guidelines issued by the Floor
Conduct Committee relating to smoking and other use of tobacco products, badges,
food and beverage, dress code, decorum, and guests and visitors on the Exchange
Floor.
The following schedule of fines is approved; however, this schedule is non-
binding, and the Floor Conduct Committee, in its discretion, may impose a fine
not to exceed $5,000, in addition to any access denial, for the violations set
forth below regardless of the number of the offense.
-------------------------------------------------------------------------------
BADGES: (improper usage) 1st offense $25.00
-------------------------------------------------------------------------------
2nd offense $50.00
-------------------------------------------------------------------------------
===============================================================================
(Failure to display Exchange issued $200.00 each offense
badge)
-------------------------------------------------------------------------------
(unauthorized entry into pits) 1st offense $100.00
-------------------------------------------------------------------------------
2nd offense $200.00
-------------------------------------------------------------------------------
3rd offense $500.00
===============================================================================
(unauthorized usage of a key card) 1st offense $1,000.00
-------------------------------------------------------------------------------
===============================================================================
SMOKING/USE OF TOBACCO PRODUCTS: 1st offense $100.00
-------------------------------------------------------------------------------
2nd offense $200.00
-------------------------------------------------------------------------------
3rd offense $500.00
-------------------------------------------------------------------------------
===============================================================================
FOOD AND BEVERAGE: 1st offense $250.00
-------------------------------------------------------------------------------
2nd offense $500.00
-------------------------------------------------------------------------------
additional offense by individual -
$1,000.00
===============================================================================
GUESTS AND VISITORS: 1st offense $25.00
-------------------------------------------------------------------------------
2nd offense $50.00
-------------------------------------------------------------------------------
3rd offense $100.00
===============================================================================
DRESS CODE: 1st offense $25.00
-------------------------------------------------------------------------------
2nd offense $50.00
-------------------------------------------------------------------------------
3rd offense $100.00
-------------------------------------------------------------------------------
No jeans are to be permitted on the
Exchange Floor.
===============================================================================
RUNNING: 1st offense by individual - $25.00
-------------------------------------------------------------------------------
2nd offense by individual - $50.00
-------------------------------------------------------------------------------
Ch5 Offenses
------------
-------------------------------------------------------------------------------
3rd offense by individual - $75.00
-------------------------------------------------------------------------------
4th offense by individual - $100.00
===============================================================================
PROPERTY OFFENSES: 1st offense $200.00
-------------------------------------------------------------------------------
2nd offense $500.00
===============================================================================
THROWING OF OBJECTS: 1st offense $100.00
-------------------------------------------------------------------------------
2nd offense $200.00
-------------------------------------------------------------------------------
3rd offense $500.00
===============================================================================
The procedure for the imposition of a fine shall be as follows:
Floor Conduct Committee members, Security Guards or Pit Committee members (in
accordance with Regulation 360.01) shall issue a ticket to the offender a
decorum for offense. The ticket requires the signature of two Committee members.
The Committee members may issue a directive to designated Exchange staff to
impose a fine in the amount stated in the directive. Fines for offenses may be
imposed on a member committing a violation, or upon a member or member firm for
a violation committed by an employee of such member or member firm.
Designated Exchange staff shall give the member or member firm written
notification of the fine. The notice shall inform the member or member firm of
the right to request a hearing and the consequences of a failure to pay the fine
if no hearing is requested.
Property offenses, for the purpose of this Ruling 520.00A, shall include sitting
or standing on floor booths, standing on chairs or stools on the trading floor,
extending telephone cords across an aisle, defacing property, or any other
action which may damage property or impede communications or traffic on the
trading floor.
For purposes of this Ruling, the fine shall have been imposed as of the date
that the written notice is delivered to the member or member firm. (02/01/04)
521.00 Floor Access - Upon receipt by the Association of actual notice that
any member or registered eligible business organization, or any other person
with trading privileges, has entered a plea of guilty to or has been adjudged
guilty of a violation of any criminal statute involving moral turpitude, the
Chairman of the Board may order an investigation (unless already in progress) to
ascertain whether violations of the Rules and Regulations have occured, and the
Board may, when immediate action is necessary to protect the best interests of
the marketplace, and subject to the provisions of Regulation 540.06, forthwith
deny access to the trading floor to such person or registered eligible business
organization until the investigation, including any disciplinary proceedings, is
concluded.
The issues in a Regulation 540.06 hearing under this Rule are limited to (1)
whether or not the member or registered eligible business organization, or other
person with trading privileges, has entered a plea of guilty to or has been
adjudged guilty of a violation of any criminal statute involving moral
turpitude, and (2) whether or not immediate action is necessary to protect the
best interests of the marketplace. (04/01/98)
Ch5 Proceedings
540.00 Proceedings Before The Board - The Board may review decisions of the
Appellate Committee, and may agree to hear disciplinary matters referred to it
by the Appellate Committee or the Hearing Committee. Whenever the respondent
shall have had an opportunity to present evidence or legal defenses in
connection with the pending matter before any Standing or Special Committee in
accordance with Regulations 540.02 and 540.03, and the jurisdiction of the Board
is based upon either an appeal by the respondent from the decision of such
Committee or is a referral of the matter by such Committee to the Board, the
Board shall not entertain any new evidence or new legal defenses not raised
before such Committee except upon a clear showing by the respondent that such
new evidence or new legal defense did not exist or was not ascertainable by due
diligence at the time of the Committee proceedings, and that there was
insufficient time within the intervening period prior to the hearing of the
Board for the respondent to bring such new evidence or legal defense to the
attention of such Committee.
After hearing all the witnesses and the respondent, if he desires to be heard,
the Board shall determine whether to affirm, reverse, modify or remand the
decision of the Committee under review and may impose penalties in accordance
with Rule 560.00. The finding of the Board shall be final and conclusive when
rendered.
If the respondent has not been given notice and opportunity for hearing,
pursuant to Regulations 540.02 and 540.03, before a disciplinary committee, the
Board may, rather than holding a hearing remand the matter to the appropriate
disciplinary committee. 155 (08/01/94)
540.00A Committee Authority To Refer Matters for Investigation - Any
Committee of the Association which in the course of its activities discovers a
possible violation of the Rules and Regulations of the Association may, refer
the matter to the Office of Investigations and Audits or the appropriate
disciplinary committee. 39R (08/01/94)
540.01 Review Of Investigation Report - The disciplinary committee shall
promptly review each investigation report. In the event the disciplinary
committee determines that additional investigation or evidence is needed, it
shall promptly direct the enforcement staff to conduct its investigation
further. Within a reasonable period of time not to exceed 30 days after the
receipt of a completed investigation report, the disciplinary committee shall
take one of the following actions:
(a) If the disciplinary committee determines that no reasonable basis exists
for finding a violation or that prosecution is otherwise unwarranted, it
may direct that no further action be taken. Such determination must be in
writing and contain a brief statement setting forth the reasons therefor.
(b) If the disciplinary committee determines that a reasonable basis exists for
finding a violation which should be adjudicated, it shall direct that the
person alleged to have committed the violation be served with a notice of
charges and shall proceed in accordance with these regulations. (08/01/94)
540.02 Notice and Answer in Connection with Disciplinary Proceedings -
(a) Prior to the imposition of any penalty by the Board of Directors or a
committee under the Rules and Regulations, the respondent shall be served
with a statement of charges either personally or by leaving the same at his
or its office address during business hours or by mailing it to him at his
place of residence, which charges shall:
(1) State the acts, practices, or conduct in which the respondent is
believed to have engaged;
(2) State the Rule or Regulations believed to have been violated;
(3) Advise the respondent that he or it is entitled to be represented by an
attorney;
(4) Advise the respondent that he or it is entitled to a hearing.
(5) State the period of time, which in no event shall be less than five (5)
business days after the service of the charges, within which a hearing
on the charges may be requested;
(6) Advise the respondent that failure to request a hearing within the
period stated, except for good
Ch5 Proceedings
---------------
cause, shall be deemed a waiver of the right to a hearing; and
(7) State the penalty which will be imposed if a hearing is waived.
(b) If the respondent elects to answer the charges, such answer shall be filed
within five (5) business days after the date of service of the charges, or
within such further time as the Board of Directors or the appropriate
Committee in its discretion deems proper.
The answer shall be in writing, signed by the respondent, and filed with
the Office of Investigations and Audits; except that in connection with
proceedings initiated under Rule 519.00 or Regulation 519.01 by the Floor
Conduct Committee, such answers shall be filed with the Exchange Services
Department. (08/01/94)
540.03 Procedures for Hearings on Charges - In connection with all hearings
on charges, except those held pursuant to Regulation 540.05:
(a) The respondent shall be entitled in advance of the hearing to examine all
books, documents, or other tangible evidence in the possession or under
the control of the Association which is to be relied upon by the Office of
Investigations and Audits or Exchange Services Department in presenting
the charges contained in the notice of charges or which are relevant to
those charges;
(b) At least ten (10) business days in advance of the hearing, the respondent
shall submit to the Office of Investigations and Audits copies of all
documents which the respondent intends to rely on in presenting his case
and shall provide the Office of Investigations and Audits with a list of,
and make available for inspection by the Office of Investigations and
Audits, all books, records, names of witnesses, and other tangible
evidence which the respondent intends to rely on; except that in any
hearing held pursuant to Rule 519.00 or Regulation 519.01 by the Floor
Conduct Committee, the documents and lists shall be submitted to and the
books, records and other tangible evidence shall be made available for
inspection by the Exchange Services Department. The hearing body, in its
discretion, may refuse to consider any books, records, documents or other
tangible evidence which was not made available or witnesses whose names
were not submitted to the Office of Investigations and Audits, or the
Exchange Services Department pursuant to this section. However, the
hearing body will consider such evidence upon a clear showing that such
evidence was not ascertainable by due diligence at least ten (10) business
days in advance of the hearing and that there was insufficient time prior
to the hearing to bring such evidence to the attention of the Office of
Investigations and Audits or the Exchange Services Department.
(c) The hearing shall be promptly held before disinterested members of the
hearing body after reasonable notice to the respondent. No member of a
disciplinary body may serve on that body in a particular matter if he or
any person or firm with which he is affiliated has a financial, personal
or other direct interest in the matter under consideration.
(d) Formal rules of evidence need not apply, but the hearing shall not be so
informal as to be unfair;
(e) The respondent shall have the right to invoke Rule 548.00, if applicable;
(f) The Office of Investigations and Audits shall be a party to the hearing
and shall present its case on those charges and penalties which are the
subject of the hearing; or in the case of any hearing held pursuant to
Rule 519.00 or Regulation 519.01 by the Floor Conduct Committee, the
Exchange Services Department shall be a party to the hearing and shall
present its case on those charges and penalties which are the subject of
the hearing.
(g) The respondent shall be entitled to appear personally at the hearing and
to be represented by counsel;
(h) The respondent shall be entitled to cross-examine any person(s) appearing
as witness(es);
(i) Subject to the provisions of Rule 540.00, the respondent shall be entitled
to call witnesses and to present such evidence as may be relevant to the
charges;
(j) Persons within the jurisdiction of the Association who are called as
witnesses shall be obliged to appear at the hearing and to produce
evidence (see 545.00);
Ch5 Proceedings
---------------
(k) If the hearing is held at the request of the respondent, a substantially
verbatim record of the hearing, capable of being accurately transcribed,
shall be made and shall become part of the record of the proceeding.
(10/01/95)
540.04 Disciplinary Decisions - All disciplinary decisions rendered pursuant to
the Rules and Regulations shall be in writing and be based upon the weight of
the evidence contained in the record of the proceeding. A copy of the decision
shall be provided to the respondent and shall include:
(a) The charges, or a summary of the charges;
(b) The answer, if any, or a summary of the answer;
(c) A brief summary of the evidence produced at the hearing or, where
appropriate, incorporation by reference of the investigation report;
(d) A statement of findings and conclusions with respect to each charge,
including the specific Rules and Regulations which the respondent is found
to have violated;
(e) A declaration of any penalty imposed and the effective date of the
penalty;
(f) A statement that the respondent shall pay the cost of the transcription of
the record of the hearing if an appeal or petition for review to the
Commission is requested by the respondent.
All such decisions shall be rendered within thirty business days after the
conclusion of the hearing, unless, by virtue of the complexity of the case or
other special circumstances, additional time is required. (08/01/94)
540.05 Appeals from a Decision of a Disciplinary Committee - The following
procedures shall apply to appeals to the Appellate Committee and the Board from
the decisions of any Committee from which appeals are allowed under the Rules
and Regulations.
(a) An appeal by the respondent from the decision of a committee or a referral
of the matter by such committee to the Appellate Committee shall be heard
by the Appellate Committee as provided in Regulations 540.02 and 540.03.
Provided, however, that whenever the respondent shall have had an
opportunity to present evidence or legal defenses in connection with the
pending matter before any Standing or Special Committee in accordance with
Regulations 540.02 and 540.03, the appeal shall be heard solely on the
record of the proceedings before such committee, the written exceptions
filed by the parties and the oral or written arguments of the parties.
Further, the Appellate Committee shall not entertain any new evidence or
new legal defenses not raised in the prior proceeding except upon a clear
showing by the respondent that such new evidence or new legal defense did
not exist or was not ascertainable by due diligence at the time of the
proceedings, and that there was insufficient time within the intervening
period prior to the hearing of the Appellate Committee for the respondent
to bring such new evidence or legal defense to the attention of the
committee.
The Appellate Committee shall not reverse any finding of a Standing or
Special Committee or reverse or reduce any sanction imposed by a Standing
or Special Committee unless the Appellate Committee determines that the
finding or sanction is "clearly erroneous."
(b) Subject to the provisions of Rule 540.00, an appeal shall be heard by the
Board solely on the record before the Committee, the written exceptions
filed by the parties; and the oral and written arguments of the parties;
(c) Within thirty days after the conclusion of the hearing of the appeal, or
within such additional time as may be necessary by virtue of the
complexity of the case or other special circumstances, the Appellate
Committee or the Board shall issue a written decision and provide a copy
to the respondent. The decision shall include a statement of findings and
conclusions with respect to each charge or penalty reviewed, including the
specific rules which the respondent was found by the Committee to have
violated, and the effective date of the disciplinary penalties, if
affirmed, or of any modified penalties.
(d) No member of the Board or Appellate Committee shall hear an appeal if such
member participated in any prior stage of the disciplinary proceeding or
if he or any person or firm with which he is affiliated
Ch5 Proceedings
---------------
has a financial, personal, or other direct interest in the matter.
(10/01/97)
540.06 Procedures For Member Responsibility Actions - The Chairman or Acting
Chairman of the Association, upon the advice of the Floor Governors Committee,
Financial Compliance Committee or Business Conduct Committee, has jurisdiction
to take summary action when immediate action is necessary to protect the best
interests of the marketplace or membership, without affording an opportunity for
a prior hearing ("member responsibility actions"). The following procedures
shall apply to such actions:
(a) The respondent shall, whenever practicable, be served with a notice before
the action is taken. If prior notice is not practicable, the respondent
shall be served with a notice at the earliest possible opportunity. The
notice shall:
(1) State the action;
(2) Briefly state the reasons for the action, and
(3) State the effective time and date and the duration of the action;
(b) The respondent shall have the right to be represented by legal counsel or
any other representative of his choosing in all proceedings subsequent to
any summary action taken;
(c) The respondent shall be given an opportunity for a subsequent hearing,
within five business days, before the Floor Governors Committee, Financial
Compliance Committee or the Business Conduct Committee. The hearing shall
be conducted in accordance with the requirements of Regulation 540.03 (c)-
(j);
(d) Within five business days following the conclusion of the hearing, the
body before which the hearing is held shall render a written decision
based upon the weight of the evidence contained in the record of the
proceeding and shall provide a copy to the respondent. The decision shall
include:
(1) A description of the summary action taken;
(2) The reasons for the summary action;
(3) A brief summary of the evidence produced at the hearing;
(4) Findings and conclusions;
(5) A determination that the summary action should be affirmed, modified,
or reversed; and
(6) A declaration of any action to be taken pursuant to the determination
specified in (5) above and the effective date and duration of such
action.
The Chairman or Acting Chairman of the Association has jurisdiction to reverse
summary action taken against an individual member pursuant to Rule 270.00 or
Rule 278.00, or against a member firm pursuant to Regulation 416.04, at any time
prior to a hearing held pursuant to this Regulation, or, if no hearing is held,
prior to the expiration of five business days after the summary action is taken,
without the prior approval of the Financial Compliance Committee or the Business
Conduct Committee, if the affected member or member firm demonstrates to the
satisfaction of the Chairman or Acting Chairman that the condition which was the
basis for the action no longer exists. (07/01/97)
540.07 Finality Of Disciplinary Decisions And Member Responsibility Actions -
All disciplinary decisions rendered or member responsibility actions taken
pursuant to the Rules and Regulations shall be final and conclusive when
rendered, unless appealable, in which case the decision shall become final the
first business day after the time for appeal has passed, if no appeal is taken,
or when the decision of the appeals body is rendered.
The person or body rendering such decision shall determine the effective date of
such action. Provided, however, that the effective date shall be at least
fifteen (15) days after written notice is delivered to the person against whom
the action is taken, and to the Commodity Futures Trading Commission, except
that such action may become effective prior to that time if:
(1) The action was taken according to the provisions of Regulation 540.06;
Ch5 Proceedings
---------------
(2) The person against whom the action is taken has consented to the sanction
to be imposed; or
(3) The action was taken by the Secretary under Rule 563.00. (08/01/94)
540.08 Offers of Settlement - Any member, member firm or other person who is
the subject of charges filed before the Board or who has filed an appeal of a
disciplinary action with the Board, may submit a written offer of settlement in
connection with such proceedings to the President. The President is authorized
to consider such settlement offers, negotiate alternative provisions therein,
and recommend to the Board that it either accept or reject any settlement offer.
The Board, by majority vote of a duly convened quorum, has the sole authority to
accept or reject any such settlement offer. If an offer of settlement is
accepted by the Board, it shall issue a written decision specifying the rule
violations it has reason to believe were committed and any penalty to be
imposed. Where applicable, the decision also shall include a statement that the
respondent has accepted the penalties imposed without either admitting or
denying the rule violations.
The member, member firm or other person who submits a written settlement offer
to the President may withdraw it at any time before final acceptance by the
Board. If a settlement offer is withdrawn or is rejected by the Board, the
person submitting such offer neither shall be deemed to have made any admission
nor shall in any manner be prejudiced by having submitted the settlement offer.
Any member, member firm or other person who is the subject of charges before the
Appellate Committee or who has filed an appeal of a disciplinary action with the
Appellate Committee, may submit a written offer of settlement in connection with
such proceedings to the Appellate Committee. The Appellate Committee is
authorized to consider such settlement offers, negotiate alternative provisions
therein, and either accept or reject any settlement offer. If an offer of
settlement is accepted by the Committee it shall issue a written decision
specifying the rule violations it has reason to believe were committed and any
penalty to be imposed. Where applicable, the decision shall also include a
statement that the respondent has accepted the penalties imposed without either
admitting or denying the rule violations.
The member, member firm or other person who submits a written settlement offer
to the Appellate Committee may withdraw it at any time before final acceptance
by the Committee. If a settlement offer is withdrawn or rejected by the
Committee, the person submitting such offer neither shall be deemed to have made
any admission nor shall in any manner be prejudiced by having submitted the
settlement offer.
Each settlement offer presented to the Board or to the Appellate Committee shall
be deemed to incorporate the following terms:
(1) Respondent acknowledges that the Office of Investigations and Audits will
have the opportunity to present its views on the proposed settlement to
the President, the Board, or the Appellate Committee, as applicable; and
(2) Respondent waives any objection to having the Board or the Appellate
Committee, as applicable, hear the case even it the Board or the Appellate
Committee has previously considered and rejected a settlement offer.
(08/01/97)
540.09 Offers of Settlement - Any member, member firm, their wholly-owned
affiliates or other person who is the subject of preliminary charges issued by
the Business Conduct Committee, Financial Compliance Committee or Floor
Governors Committee ("respondent"), may submit a written offer of settlement in
connection with such proceedings to the Business Conduct Committee, Financial
Compliance Committee, Floor Governors Committee or the Hearing Committee. The
Business Conduct Committee, Financial Compliance Committee, Floor Governors
Committee and Hearing Committee are authorized to consider such settlement
offers, negotiate alternative provisions therein, and either accept or reject
any settlement offer. When preliminary charges are pending before the Hearing
Committee, before a hearing begins, the Committee that issued the charges has
the sole authority to consider settlement offers. Once the Hearing Committee has
begun hearing evidence, the Hearing Committee has exclusive settlement
authority. The Business Conduct Committee, Financial Compliance Committee, Floor
Governors Committee and Hearing Committee may, in their discretion, permit a
respondent to accept a penalty without either admitting or denying any rule
violations upon which the penalty is based. If an offer
Ch5 Proceedings
---------------
of settlement is accepted by any such Committee, it shall issue a written
decision specifying the rule violations it has reason to believe were committed
and any penalty to be imposed. Where applicable, the decision also shall include
a statement that the respondent has accepted the penalties imposed without
either admitting or denying the rule violations.
Each settlement offer presented to any such Committee shall be deemed to
incorporate the following terms:
(1) Respondent acknowledges that the Office of Investigations and Audits will
have the opportunity to present its views on the proposed settlement to
the Committee; and
(2) Respondent waives any objection to having the appropriate Committee hear
the case even if that Committee has previously considered and rejected a
settlement offer.
The member, member firm, wholly-owned affiliate or other person who submits a
written settlement offer to any such Committee may withdraw it at any time
before final acceptance by the Committee. If a settlement offer is withdrawn or
rejected by any such Committee, the person submitting such offer neither shall
be deemed to have made any admission nor shall in any manner be prejudiced by
having submitted the settlement offer. (08/01/97)
540.10 Disciplinary Jurisdiction Over Agricultural Regular Firms - In addition
to the disciplinary authority of the Hearing Committee, Appellate Committee,
Business Conduct Committee and Financial Compliance Committee over agricultural
regular firms, as set forth in paragraphs (f) and (g) of Rule 542.00 and
paragraphs (f) and (g) of Rule 551.00, each of these Committees may discipline
an agricultural regular firm for violation of any Rules and Regulations by
imposing a fine on such firm, and/or by revoking the firm's regularity status.
Subject to and in accordance with Regulation 540.08, an agricultural regular
firm that is the subject of charges filed before the Board or that has filed an
appeal of a decision with the Appellate Committee or the Board, may submit a
written offer of settlement in connection with such proceeding to the Appellate
Committee or, in matters before the Board, to the President of the Association.
(08/01/94)
540.11 Appellate Committee -
(a) Membership. Each year the Chairman of the Board, with the approval of the
Board, shall appoint from those members of the Association who currently
serve or who shall have previously served as an elective officer of the
Association and who shall not be a member of a standing disciplinary
committee, to serve as a member of the Appellate Committee. The Committee
shall consist of five (5) members, at least one of whom is currently an
elective officer of the Association. A vacancy in the Committee shall be
filled by appointment by the Chairman of the Board, with the approval of
the Board.
(b) Meetings and Quorum. The Appellate Committee shall determine the time and
place for its meetings and the manner and form in which its meetings shall
be conducted. The attendance of three (3) Appellate Committee members
shall constitute a quorum of the Committee. The majority vote of the
quorum of the Appellate Committee shall be the official act or decision of
the Committee.
(c) Duties of the Committee. It shall be the function of the Committee to
serve as the appellate body in review of disciplinary decisions of
committees of the Association or, upon referral by such committee to hear
the matter, in accordance with Regulation 540.05. After hearing all the
witnesses and the respondent, if he/she decides to be heard, the Committee
shall determine whether the respondent is guilty of the offense or
offenses charged. If the Committee determines that the accused is guilty,
the Committee may impose penalties in accordance with Rule 560.00.
(d) Appeal. The findings of the Appellate Committee shall be final and
conclusive when rendered, although subject to review by the Board of
Directors in accordance with Regulation 540.05(b) upon the request of the
Board or upon referral by the Committee. A request that the Board review a
decision must be made:
- if on the motion of the Board, upon review of the notice of the decision
in the materials for the first regularly scheduled Board meeting not
less than twenty (20) days after the date of the
Ch5 Proceedings
---------------
decision;
- if by the Appellate Committee, within fifteen (25) days of the date of
the decision; and
- if by a person against whom the decision has been rendered within ten
(10) days of the date he receives the decision.
(e) Offense Against The Association. Any member of the Association, member
firm, or other person with trading privileges who fails to comply with the
disciplinary action of the Committee after such action becomes effective
shall be charged with an offense against the Association, and if found
guilty, shall either be fined, suspended or expelled by the Board.
(f) Oath. Every member of the Appellate Committee shall take an oath not to
divulge, or allow or cause to be divulged, any information acquired by
such member in his capacity as an Appellate Committee member if such
information is confidential, commercially sensitive, or non-public, except
when required in connection with disciplinary proceedings or other formal
proceedings or actions of a duly authorized committee of the Association
or of the Board, or in response to demand by an authority to obtain the
information requested, or on behalf of the Association in any proceeding
authorized by the Board of Directors.
(g) Holdover Member. Whenever the Committee members have begun to hear or
review evidence and argument in any proceeding and the term of the members
expires, the members may continue in office until the proceeding has
ended. A holdover member shall not participate in any other Committee
business, nor shall continuation in office impair the appointment of a
successor Committee or the successor Committee's right to participate in
all other Committee business.
(h) Associate Members as Appellate Committee Members. Associate Members of the
Exchange are eligible for appointment to the Appellate Committee as full
voting members, provided that such Associate Member qualifies pursuant to
paragraph (a) of this Regulation, and further provided that Associate
Members shall not be eligible to serve as Chairman of the Committee. The
Committee shall at no time have more than two Associate Members on the
Committee. (08/01/94)
540.12 Hearing Committee -
(a) Membership. The Hearing Committee shall consist of twenty-one (21)
individual members of the Association appointed each year by the Chairman
of the Board with the approval of the Board. For all purposes under these
Rules, the Hearing Committee shall be considered a disciplinary committee.
Hearing Committee members shall have previously served on the Board, the
Business Conduct Committee, the Floor Governors Committee, the Financial
Compliance Committee or the Arbitration Committee, but no person shall be
a member of the Committee who, at the same time, is a member of the Board
or any other standing disciplinary committee. A panel of seven members
shall be selected from the Committee for each hearing, in a manner
established by the Committee, consistent with the requirements of
Regulation 540.14. Each panel shall, by a majority vote, elect a Chairman.
(b) Hearing Executive Committee. The Chairman of the Board, with the approval
of the Board, shall appoint a Chairman of the entire Committee, along with
two other members from among the members of the Committee, to serve as a
Hearing Executive Committee.
(c) Meetings and Quorum. The Hearing Committee shall determine the time and
place of its meetings and the manner and form in which its meetings shall
be conducted. The attendance of four Hearing Committee members shall
constitute a quorum of the Committee. The majority vote of the quorum of
the Hearing Committee shall be the official act or decision of the
Committee.
(d) Duties of the Committee. The Hearing Committee shall conduct disciplinary
hearings pursuant to the Rules and Regulations of the Association.
Following notice and answer in accordance with Regulation 540.02, the
Hearing Committee shall conduct hearings in connection with proceedings
initiated under Rule 542.00(f), Rule 551.00(f) and Rule 543.00(d).
Procedures for the hearing shall be in accordance with Regulation 540.03.
After hearing all the witnesses and the respondent, if he/she decides to
be heard, the Committee shall determine whether the respondent is guilty
of the offense or offenses
Ch5 Proceedings
---------------
charged. If the Hearing Committee determines that the accused is guilty,
the Committee may impose penalties in accordance with the rule pursuant to
which the proceedings were initiated. In the event there is a finding of
multiple violations of any Rules or Regulations, it shall be within the
Committee's discretion to apply its suspension powers either in a
consecutive or concurrent manner.
(e) Appeal. A member, member firm, person with trading privileges or
agricultural regular firm may appeal from the decision of the Committee by
filing with the Secretary of the Association within ten (10) business days
after the Committee's decision is sent to the respondent a Notice of
Appeal to the Appellate Committee requesting a review by the Appellate
Committee of all or part of the Committee's decision.
(f) Offense Against the Association. Any member, member firm, other person
with trading privileges or agricultural regular firm who fails to comply
with the disciplinary action of the Committee after such action becomes
effective shall be charged with an offense against the Association, and if
found guilty, shall either be fined, suspended or expelled by the Board.
(g) Oath. Every Hearing Committee member shall take an oath not to divulge, or
allow or cause to be divulged, any information acquired by such member in
his official capacity as a Hearing Committee member if such information is
confidential, commercially sensitive, or nonpublic, except when required
in connection with disciplinary proceedings or other formal proceedings or
actions of a duly authorized committee of the Association or of the Board,
or in response to a request or demand by an administrative or legislative
body of government having jurisdiction of the subject matter and authority
to obtain the information requested, or on behalf of the Association in
any proceeding authorized by the Board of Directors.
(h) Hold-over Member. Whenever the Committee members have begun to hear or
review evidence and argument in any proceeding, and the term of one or
more of the members expires, such member or members may continue in office
until the proceeding has ended. A holdover member shall not participate in
any other Committee business, nor shall his continuation in office impair
the appointment of a successor or the successor's right to participate in
all other Committee business. (12/01/94)
540.13 Application of Rules and Regulations - The provisions of this Chapter
shall apply to all members, registered partnerships and corporations, their
wholly-owned affiliates, other persons with trading privileges, agricultural
regular firms, guaranteed introducing brokers, and any employee or Associated
Person of any such individual or firm, unless specifically exempted. (07/01/97)
Ch5 Proceedings
---------------
540.15 Failure to Pay a Disciplinary Fine - When the Treasurer of the
Association certifies to a Committee that imposed a fine that such fine is due
and has not been paid, the person who was ordered to pay the fine shall be
suspended from all membership privileges (including but not limited to floor and
electronic access, member transaction fees and the right to lease a membership
or membership interest), subject to Regulation 540.06, until the Treasurer
certifies to the Committee that the fine has been paid. (06/01/94)
541.00 Special Investigations By Board - If at any time the Board shall have
reason to suspect that any member, member firm, or other person with trading
privileges, has been guilty of any offense against the Association and no
investigation has been initiated into the matter, the Board shall direct the
Office of Investigations and Audits to conduct an investigation and shall direct
the appropriate disciplinary committee, or if necessary appoint a Special
Committee outside of its own number, to review the investigation as to whether
there is just ground for such suspicion. If the Committee decides that there is
just ground for such suspicion, it shall direct that charges be filed with the
Board as provided in Rule 540.00. (08/01/94)
542.00 Business Conduct Committee -
(a) Membership. The Chairman of the Board, with the approval of the Board,
shall appoint the members of the Business Conduct Committee. Only members
of the Association who are not Directors or Officers of the Association
shall be eligible for appointment as members of the Committee. All
Committee Members shall be Full Members except that one Committee Member
may be an Associate Member. Four members shall be appointed for staggered
three-year terms. Additional members may be appointed for one-year terms,
but no more than four such members may be appointed. Terms currently in
effect at the time of adoption of this amended Rule shall continue to be
in effect until they expire. At the time this amended Rule becomes
effective, a member shall be appointed to serve a term expiring February
1, 1984. Each year the Chairman of the Board shall appoint one member of
the Committee for a three-year term and may appoint no more than four
members for one-year terms, except that for February 1, 1984, and every
third year thereafter, the Chairman of the Board shall appoint two members
of the Committee for three-year terms and may appoint no more than four
members for one-year terms. A vacancy in the Committee shall be filled for
the unexpired term in the same manner as provided above, except that
unexpired one-year terms may be left vacant at the discretion of the
Chairman of the Board. The President shall be an ex officio member of the
Committee.
(b) Chairman and Vice-Chairman of the Committee. The Chairman of the Board,
with the approval of the Board, shall appoint a Chairman and a Vice-
Chairman of the Committee from among the members of the Committee. The
Chairman and Vice Chairman shall be appointed to serve as Chairman and
Vice Chairman for a one-year term.
(c) Oath of Members. Every member of the Committee shall take an oath not to
divulge, or allow or cause to be divulged, any information acquired by
such member in his official capacity if such information is confidential,
commercially sensitive or non-public, including any information regarding
the market position, financial condition, or identity of any trader or
firm, except when required in connection with his official duties, or in
connection with disciplinary proceedings or other formal
Ch5 Proceedings
---------------
proceedings or actions of a duly authorized committee of the Association,
or of the Board, or in response to a duly authorized subpoena, or in
response to a request or demand by an administrative or legislative body
of government having jurisdiction of the subject matter and authority to
obtain the information requested, or on behalf of the Association in any
proceeding authorized by the Board.
(d) Quorum. The attendance of three members at a meeting shall constitute a
quorum. The actions of a majority of the members present shall be the
actions of the Committee.
(e) Business Conduct Committee on Particular Matter. If the Business Conduct
Committee shall determine that it is improper for any or all of its
regular members to serve during the consideration and decision of any
particular matter, or if any or all the regular members shall be unable to
serve during the consideration and decision of any particular matter, the
Business Conduct Committee may request the Chairman of the Board to
appoint an alternate or alternates to sit throughout the investigation,
hearing, and decision of such matter. The Chairman of the Board shall have
the power to appoint any member or members as such alternate or
alternates. When so appointed such alternate or alternates shall, with
respect to such particular matter, have all the powers and duties of the
regular member or members for whom he is or they are acting, and the
"Committee on Particular Matter," consisting of such alternate or
alternates, and the remaining regular members of the Business Conduct
Committee, if any, shall with respect to such particular matter have all
the duties and powers of the regular Business Conduct Committee. During
such period as a Committee or Committees on a Particular Matter or Matters
are functioning, the regular Business Conduct Committee and the regular
members thereof shall continue to have all the powers and to perform all
the duties concerning matters not under consideration by a Committee or
Committees on Particular Matters.
(f) Duties of Committee. The Committee shall determine the manner and form in
which its proceedings shall be conducted. The Committee shall provide for
the prevention of manipulation of prices and the cornering of any
commodity on the Exchange, and shall also have general supervision of the
business conduct of members, member firms, any other persons with trading
privileges, wholly-owned affiliates, guaranteed introducing brokers, and
any employees or associated persons of any such individual or firm,
particularly insofar as such conduct affects (1) non-member customers; (2)
the public at large; (3) the State Government; (4) the Federal Government;
(5) public opinion; and (6) the good name of the Association. The
Committee shall also have general supervision, other than financial
supervision, over all agricultural regular firms and their employees,
member and non-member alike, with respect to each such firm's compliance
with the Association's Rules and Regulations pertaining to its regularity.
The Committee in performing its duties may investigate the dealings,
transactions and financial condition of members, member firms, any other
persons with trading privileges, wholly-owned affiliates, agricultural
regular firms, guaranteed introducing brokers, and any employees or
associated persons of any such individual or firm, and may examine their
books and papers upon request. The Committee may employ such auditors and
other assistants as it may deem necessary, and all expenses incident
thereto shall be payable from the funds of the Association.
The Committee shall have the authority to charge a member, member firm,
person with trading privileges, wholly-owned affiliate, agricultural
regular firm, guaranteed introducing broker, or any employee or associated
person of any such individual or firm alleged to have violated any Rule or
Regulation within its jurisdiction and may impose any one or more of the
following preliminary penalties: a reprimand, a cease and desist order, a
fine not to exceed $25,000 for each such violation, and/or restitution.
The Committee may also impose upon any such individual member, person with
trading privileges, or employee of a member or member firm a preliminary
denial of the privileges of the Floor of the Exchange or suspension from
membership status for a period not in excess of ninety (90) business days
for each such violation. Except in the case of specified penalties, which
shall be heard by the Committee in accordance with Regulations 540.02 and
540.03, proceedings shall be conducted by the Hearing Committee in
accordance with Regulations 540.02 and 540.03. The specified penalties
which shall be heard by the Committee shall be defined as a reprimand,
fines not exceeding $5,000.00 for any one violation, and a denial of the
privileges of the Floor for a period not exceeding five (5) business days
for any one violation. In the event there is a finding of multiple
violations of any Rules or Regulations it shall be within the relevant
Committee's discretion to apply its
Ch5 Proceedings
---------------
denial or suspension powers either in a consecutive or concurrent manner.
A party under a cease and desist order may apply to the Committee to review
and terminate such order, provided that such order has been in effect for at
least five years prior to application.
The decision of the Business Conduct Committee or the Hearing Committee may
be appealed to the Appellate Committee in accordance with Regulation 540.05
by filing with the Secretary of the Association, within ten (10) business
days after the decision is sent to the respondent, a Notice of Appeal to the
Appellate Committee requesting a review by the Appellate Committee of all or
part of the decision.
Any member, member firm, other person with trading privileges, wholly-owned
affiliate, agricultural regular firm, guaranteed introducing broker, or
employee or associated person of any such individual or firm who fails to
appear before the Committee pursuant to its request, or to submit his or its
books and records to the Committee at its request, shall be guilty of an
offense against the Association.
The Committee may review at any time the operations or procedures of
members, member firms, any other persons with trading privileges, wholly-
owned affiliates, agricultural regular firms, guaranteed introducing
brokers, and any employees or associated persons of any such individuals or
firms to assure compliance with the Rules and Regulations of the
Association. Whenever such review discloses a condition or practice which,
in the Committee's judgment, falls within the provisions of Regulation
270.01 or Regulation 540.06, it shall so advise the Chairman of the Board
and recommend such action as it deems appropriate in the circumstances.
(g) Offense Against the Association. It shall be an act detrimental to the
interest and welfare of the Association for any member of the Association,
member firm, other person with trading privileges, wholly-owned affiliate,
agricultural regular firm, guaranteed introducing broker, or employee or
associated person of any such individual or firm to fail to comply with the
disciplinary action of the Committee after such action becomes effective.
(h) Hold-Over Members. Whenever the Committee members have begun to hear or
review evidence and argument in any proceeding, and the term of one or more
of the members expires, such member or members may continue in office until
the proceeding has ended. A holdover member shall not participate in any
other Committee business, nor shall his continuation in office impair the
appointment of his successor or his successor's right to participate in all
other Committee business. (08/01/98)
543.00 Floor Governors Committee-
(a) Membership. The Chairman of the Board, with the approval of the Board,
shall appoint from the Membership of the Association the members of a Floor
Governors Committee who shall not be Directors or Officers of the
Association. The Committee shall consist of seven members. Each year the
Chairman of the Board, with the approval of the Board, shall appoint one
member of the Committee for a term of three years dating from February 1 of
such year. Each year, the Chairman of the Board, with the approval of the
Board shall also appoint from the Membership two members of the Committee
to serve for a one year term dating from February 1 of such year. In
addition, each year, beginning with 1985, the Chairman of the Board, with
the approval of the Board, shall also appoint from the Membership a member
of the Committee for a two year term dating from February 1 of such year. A
vacancy in the Committee shall be filled for the unexpired term by
appointment by the Chairman of the Board, with the approval of the Board.
(b) Chairman and Vice Chairman of the Committee. The Chairman of the Board,
with the approval of the Board, shall appoint a Chairman and a Vice
Chairman of the Committee from among the members of the Committee. The
Chairman and Vice Chairman shall be appointed to serve as Chairman and Vice
Chairman for a one-year term.
(c) Meetings and Quorum. The Floor Governors Committee shall determine the time
and place of its meetings and the manner and form in which its meetings
shall be conducted. The attendance of four Floor Governors shall constitute
a quorum of the Committee. The majority vote of the quorum of the Floor
Governors Committee shall be the official act or decision of the Committee.
(d) Duties of the Committee. It shall be the function and duty of the Floor
Governors Committee to assure
Ch5 Proceedings
---------------
that the practices and conduct of the members of the Association, member
firms, other persons with trading privileges, and employees of any such
individual or firm on the Floor of the Exchange are in compliance with the
Rules and Regulations. Whenever any violation of the Rules or Regulations
is suspected by the Committee, and the Committee determines, after
investigation by the Office of Investigations and Audits, that action
should be taken, the Committee shall provide notice and opportunity for a
hearing in compliance with Regulations 540.02 and 540.03. The Committee
shall have the authority to charge a member, member firm, person with
trading privileges, or any employee of any such individual or firm alleged
to have violated any Rule or Regulation within its jurisdiction and may
impose any one or more of the following preliminary penalties: a reprimand,
a cease and desist order, a fine not to exceed $25,000 for each such
violation, and/or restitution. The Committee may also impose upon any such
individual member, person with trading privileges, or employee of a member
or member firm a preliminary denial of the privileges of the Floor of the
Exchange or suspension from membership status for a period not in excess of
ninety (90) business days for each such violation. Except in the case of
specified penalties, which shall be heard by the Committee in accordance
with Regulations 540.02 and 540.03, proceedings shall be conducted by the
Hearing Committee in accordance with Regulations 540.02 and 540.03. The
specified penalties which shall be heard by the Committee shall be defined
as a reprimand, fines not exceeding $5,000 for any one violation, and a
denial of the privileges of the Floor for a period not exceeding five (5)
business days for any one violation. In the event there is a finding of
multiple violations of any Rules or Regulations, it shall be within the
relevant Committee's discretion to apply its denial or suspension powers
either in a consecutive or concurrent manner.
Also fines not to exceed $5,000 for any act may be imposed as specifically
authorized in Regulation 519.03.
A party under a cease and desist order may apply to the Committee to review
and terminate such order, provided that such order has been in effect for
at least five years prior to application.
(e) Appeal. A member, member firm, other person with trading privileges, or any
employee of any such individual or firm, may appeal from the decision of
the Floor Governors Committee or the Hearing Committee in accordance with
Regulation 540.05 by filing with the Secretary of the Association within
ten (10) business days after the decision is sent to the respondent a
Notice of Appeal to the Appellate Committee requesting a review by the
Appellate Committee of all or part of the decision.
(f) Offense Against The Association. It shall be an act detrimental to the
interest and welfare of the Association for any member of the Association,
member firm, other person with trading privileges, or employee of any such
individual or firm to fail to comply with the disciplinary action of the
Committee after such action becomes effective.
(g) Oath. Every Floor Governor shall take an oath not to divulge, or allow or
cause to be divulged, any information acquired by such member in his
official capacity as a Floor Governor if such information is confidential,
commercially sensitive, or non-public, except when required in connection
with his official duties, or in connection with disciplinary proceedings or
other formal proceedings or actions of a duly authorized committee of the
Association or of the Board, or in response to a duly authorized subpoena,
or in response to a request or demand by an administrative or legislative
body of government having jurisdiction of the subject matter and authority
to obtain the information requested, or on behalf of the Association in any
proceeding authorized by the Board of Directors.
(h) Hold-over Member. Whenever the Committee members have begun to hear or
review evidence and argument in any proceeding, and the term of one or more
of the members expires, such member or members may continue in office until
the proceeding has ended. A holdover member shall not participate in any
other Committee business, nor shall his continuation in office impair the
appointment of his successor or his successor's right to participate in all
other Committee business.
(i) Associate Members as Floor Governors. Associate Members of the Exchange are
eligible for appointment to the Floor Governors Committee as full voting
members, provided that Associate Members shall not be eligible to serve as
Chairman of the Committee. The Committee shall at all times have at least
two Associate Members on the Committee. (08/01/98)
543.01 Investigations - The President or the Executive Vice-President shall
have the authority to
Ch5 Proceedings
---------------
order investigations into any complaints made to the Association or into any
situation no matter how brought to their attention involving possible violations
of the Rules and Regulations of the Association. 1792 (08/01/94)
544.00 Waiver of Hearing - The statement of charges may provide that if the
respondent fails, except for good cause, to request a hearing within a specified
period of time, which in no event shall be less than five business days after
the service of the charges, he shall be deemed to have accepted a penalty stated
in the charges. (08/01/94)
545.00 Testimony And Production Of Books And Records - If a member of the
Association, member firm, or other person with trading privileges, is required
to submit his books and records, or the books and records of his firm, or
corporation, or any portion thereof, to the Board, or to any authorized Standing
or Special Committee, or to the individual responsible for the supervision of
the Office of Investigations and Audits as provided for in Regulation 170.01,
or, subject to the provisions of Rule 548.00, to furnish any information to or
to appear and testify before, or to cause any of his partners or employees to
appear and testify before such Board, or such authorized Committee, or at the
request of such individual responsible for the supervision of the Office of
Investigations and Audits, it shall be an offense against the Association to
fail or refuse to comply with such requirements. 153 (08/01/94)
545.01 Furnishing Information - Pursuant to Rule 545.00 and Regulations
545.02 and 545.03, each clearing member shall furnish to the Board or to any
committee or department specified by the Board, such information respecting
daily trading, deliveries, exchanges of futures for cash commodities or other
activity as the Board deems necessary for compliance by the Association with the
provisions of Regulations Sections 16.00 through 16.03 under the Commodity
Exchange Act or as required to be made or maintained under the Rules and
Regulations. Such data shall be furnished at such times and in such manner and
form as the Board or the committee or department acting for the Board may
prescribe.
The Business Conduct Committee, the Financial Compliance Committee, or the Floor
Governors Committee may, without hearing, impose minor penalties against members
or member firms for failure by such members or member firms, or for failure by
any persons for whom such members or member firms are responsible, to submit
requested routine trade documentation within the respective Committees'
jurisdiction in the manner prescribed by the Committee. Minor penalties for the
purpose of this Regulation shall be defined as fines not exceeding $1,000 for
any one offense.
If the documents requested are one year old or less, they must be produced and
submitted to the Office of Investigations and Audits within five (5) business
days. If the documents requested are more than one year old and less than five
years old, they must be produced and submitted to the Office of Investigations
and Audits within ten (10) business days. The Business Conduct Committee, the
Financial Compliance Committee, or the Floor Governors Committee may impose a
fine of up to $1,000 for each business day thereafter on which the member,
member firm or any person for whom such member or member firm is responsible,
has not produced and submitted the requested documents to the Office of
Investigations and Audits.
A respondent may request an appeal of a minor penalty by filing a written
request for a hearing with the Office of Investigations and Audits within ten
(10) business days after the penalty is imposed; the Business Conduct Committee,
the Financial Compliance Committee, or the Floor Governors Committee shall hear
the matter in accordance with Regulations 540.02 through 540.05. The decision of
the Business Conduct Committtee, the Financial Compliance Committee, or the
Floor Governors Committee may be appealed to the Appellate Committee as provided
in Rule 542.00(f) or 543.00(e). Failure to request a hearing shall be deemed a
consent to the fine. Unless a hearing is requested, failure to pay a fine
within thirty (30) days after the penalty is imposed shall automatically triple
the amount of the fine. 1973 (08/01/94)
545.02 Record Keeping - Pursuant to Rule 545.00 and Regulation 545.03, each
member and member firm shall keep in an accurate and complete manner all books
and records required to be made or maintained under the Rules and Regulations.
All books and records required to be kept shall be kept for a period of five (5)
years from the date thereof and shall be readily accessible for a period of two
(2)
Ch5 Proceedings
---------------
years from the date thereof. All reports required to be submitted to the
Association or its delegate shall be reported accurately and completely.
(08/01/94)
545.03 Record Keeping Qualifications - Each member, member firm and other
person with membership privileges shall be required, pursuant to the rules and
regulations, to keep, maintain and furnish only those books and records that
relate directly to the trading of futures and options contracts, satisfaction
of the minimum financial requirements for futures commission merchants and
qualifications for membership. (08/01/94)
545.04 Report Transmission Requirement - Each clearing member shall be required
to have the ability to electronically transmit any bookkeeping reports to the
Clearing Services Provider that are required by such Clearing Services
Provider, at such times and in the form and manner designated by the Clearing
Services Provider. (01/01/04)
545.05 Maintenance of Telephone Recordings - Members and member firms which
record conversations conducted on their Exchange Floor telephone lines shall
maintain the resultant recordings for a period of 10 business days following the
day when such recordings are made. In addition, all recordings of Exchange
Floor headset communications shall be maintained for a period of 10 business
days following the day when such recordings are made. (07/01/98)
546.00 Testimony Before Other Exchanges - If the Board shall deem it is to the
interest and welfare of the Association, or to the public interest, or in the
interest of just and equitable principles of trade, to facilitate the
examination by the authorities of another exchange of any transaction in which a
member of the Association has been concerned and that the testimony of such
member, his partners, or employees, or his books and papers, or the books and
papers of his firm, or corporation, or any partner therein are material to such
examination, and shall direct such member to appear and testify, or to cause any
of his partners or employees to appear and testify, or to produce such books and
papers before the authorities of said other exchange, or any committee thereof,
for the purposes of such examination, and the member of the Association shall
refuse or fail to comply with such direction, he may be adjudged guilty of an
act detrimental to the interest or welfare of the Association. 154 (08/01/94)
548.00 Incriminating Evidence - Upon any investigation or trial before the
Board, or before any committee, or before any other tribunal of the Association,
no member or agricultural regular firm shall be required to answer, or be
subject to any penalty for failing to answer any question, when such member or
agricultural regular firm shall make oath that the answer, if given, would
convict or tend to convict such member or agricultural regular firm of the
violation of any law of the United States or any state. 161 (08/01/94)
549.00 Depositions of Witnesses - Upon any investigation authorized under the
Rules and Regulations of the Association, the oral depositions of witnesses may
be taken. The party under investigation shall be given at least five (5) days
written notice of the time of the deposition and place where the witness will be
deposed, which may be at any location within the United States. The party under
investigation shall have the right to be present in person or by representative
at the oral deposition, with right of cross-examination. All oral depositions
of witnesses shall be taken under oath, before an officer qualified in the place
of the deposition to administer oaths, and the complete testimony of the
witnesses shall be transcribed by such officer or by a person under his
supervision. Oral depositions taken in accordance with this provision shall be
admissible in evidence at any hearing of the board or a Committee, reserving to
the party under investigation the right to object at the hearing to the
relevancy or materiality of the testimony contained therein. 162 (08/01/94)
550.00 Rehearing - A suspended or expelled member or member firm, and any
member or member firm that has been fined, may petition the Appellate Committee
for a rehearing. Upon presentation of the petition, the Appellate Committee, by
a majority vote, may order a rehearing to determine whether the disciplinary
action was the result of false testimony or was otherwise unjust or improper.
The rehearing will be conducted in accordance with Regulations 540.02 and
540.03.
Ch5 Proceedings
---------------
If, after a rehearing the Appellate Committee unanimously finds that such member
or member firm was mistakenly expelled, suspended, or fined, or that the penalty
imposed was excessive, the prior disciplinary action against such member or
member firm may be set aside or the penalty mitigated. No prior disciplinary
action or penalty shall be set aside or mitigated if any member of the Appellate
Committee votes against such action.
The petition of a member or member firm who has been suspended, expelled, or
fined, for a rehearing shall be posted upon the bulletin board of the Exchange
for at least one week prior to its presentation to the Appellate Committee.
A member or member firm whose prior expulsion, suspension, and/or fine is set
aside or mitigated in accordance with this Rule shall have no claim in law or
equity against the Association or any Director, committee member, officer or
employee thereof by virtue of such prior action thus set aside or mitigated.
A rehearing is not a right. An action of the Appellate Committee is final when
rendered as provided in Regulation 540.07, but may be reviewed by the Board
pursuant to Regulation 540.05. Every suspension, expulsion, or fine will be
considered final until set aside or reduced under this Rule. 157 (08/01/94)
551.00 Financial Compliance Committee-
(a) Membership. The Chairman of the Board, with the approval of the Board, shall
appoint the members of the Financial Compliance Committee. The Committee
shall consist of five qualified individuals, whether members or non-member
employees of member firms. Each year thereafter, the Chairman of the Board,
with the approval of the Board, shall appoint two members of the Committee
to serve a term of two years and one member to serve a term of one year.
A vacancy in the Committee shall be filled for the unexpired term in the
same manner as provided above, except that unexpired one-year terms may be
left vacant at the discretion of the Chairman of the Board.
(b) Chairman and Vice-Chairman of the Committee. The Chairman of the Board, with
the approval of the Board, shall appoint a Chairman and a Vice-Chairman of
the Committee from among the members of the Committee. The Chairman and
Vice-Chairman shall be appointed to serve as Chairman and Vice-Chairman for
a one-year term.
(c) Oath of Members. Every member of the Committee shall take an oath not to
divulge, or allow or cause to be divulged, any information acquired by such
member in his official capacity if such information is confidential,
commercially sensitive or non-public, including any information regarding
the market position, financial condition, or identity of any trader or firm,
except when required in connection with his official duties, or in
connection with disciplinary proceedings or other formal proceedings or
actions of a duly authorized committee of the Association, or of the Board,
or in response to a duly authorized subpoena, or in response to a request or
demand by an administrative or legislative body of government having
jurisdiction of the subject matter and authority to obtain the information
requested, or on behalf of the Association in any proceeding authorized by
the Board.
(d) Quorum. The attendance of three (3) members at a meeting shall constitute a
quorum. The actions of a majority of the members present shall be the
actions of the Committee.
(e) Financial Compliance Committee on Particular Matter. If the Financial
Compliance Committee shall determine that it is improper for any or all of
its regular members to serve during the consideration and decision of any
particular matter, or if any or all the regular members shall be unable to
serve during the consideration and decision of any particular matter, the
Financial Compliance Committee may request the Chairman of the Board to
appoint an alternate or alternates to sit throughout the investigation,
hearing, and decision of such matter. The Chairman of the Board shall have
the power to appoint, consistent with paragraph (a) above, any member or
members as such alternate or alternates.
Ch5 Proceedings
---------------
When so appointed, such alternate or alternates shall, with respect to such
particular matter, have all the powers and duties of the regular member or
members for whom he is or they are acting, and the "Committee on Particular
Matter," consisting of such alternate or alternates, and the remaining
regular members of the Financial Compliance Committee, if any, shall with
respect to such particular matter have all the duties and powers of the
regular Financial Compliance Committee. During such period as a Committee or
Committees on a Particular Matter or Matters are functioning, the regular
Financial Compliance Committee and the regular members thereof shall
continue to have all the powers and to perform all the duties concerning
matters not under consideration by a Committee or Committees on Particular
Matters.
(f) Duties and Authority of the Committee. The duty of the Committee is to
monitor and ensure the capital and financial integrity of members and member
firms. The Committee may determine, in its sole discretion, that there is
reason to believe that the financial status of a member or member firm
represents a condition inconsistent with sound business practices and
financial integrity, and may exercise the following authority, without
limitation, over the financial organization of members and member firms.
The Committee shall determine the manner and form in which its proceedings
shall be conducted. The Committee shall have authority, without limitation,
over the financial organization of member firms and the financial inter-
relationships between member firms and their wholly-owned affiliated
entities, including parents and subsidiaries. The Committee shall also have
the authority, without limitation, to supervise the nature of capital
formation and the capital compliance of members, member firms, wholly-owned
affiliates, any other persons with trading privileges, guaranteed
introducing brokers, and any employees or associated persons of any such
individual or firm, particularly insofar as such conduct may have an adverse
impact on the member's, member firm's or wholly-owned affiliate's capital or
financial stability. The Committee shall also have the authority, without
limitation, to supervise the financial organization, nature of capital
formation and the capital compliance of all agricultural regular firms and
their employees, member and non-member alike.
The Committee in performing its duties may investigate the dealings,
transactions and financial interrelationships and condition of members,
member firms, wholly-owned affiliates, agricultural regular firms, any other
persons with trading privileges, guaranteed introducing brokers, and any
employees or associated persons of any such individual or firm, may examine
their books and papers upon request, and, with respect to member firms, may
prescribe such capital requirements as it deems appropriate, including,
without limitation, requiring the immediate or expeditious infusion of
additional capital (subject to the procedures contained herein). Upon
approval by the Chairman of the Board, the Committee may employ such
experts, auditors, counsel and other assistants as it may deem necessary on
a case-by-case basis, and all expenses incident thereto shall be payable
from the funds of the Association.
(1) Where immediate action is necessary, the Committee shall have the
authority prior to a hearing, only upon written approval by the Chairman
of the Board, to take summary action consistent with this rule subject
to a subsequent hearing to be held within five (5) days from the date of
the summary action in accordance with Regulation 540.06. This hearing,
conducted before the Committee or Board, shall follow the requirements
of Regulation 540.03(c)-(j).
The member, member firm, person with trading privileges, wholly-owned
affiliate, agricultural regular firm, guaranteed introducing broker, or
employee or associated person of any such individual or firm will be
immediately notified in writing of the Committee's or Board's decision,
in the form of an order signed by the Chairman of the Committee and the
Chairman of the Board of Directors. Upon written notification of the
decision, the respondent may request a hearing to be held within five
(5) days. After this hearing, the respondent may appeal the decision to
the Board of Directors. The Board of Directors may modify the conditions
of the original order.
Alternatively, any such summary order may be appealed directly to the
Board of Directors within one business day. The member, member firm,
person with trading privileges, wholly-owned affiliate, agricultural
regular firm, guaranteed introducing broker, or employee or associated
Ch5 Proceedings
---------------
person of any such individual or firm subject to such order must give
written notice of appeal to the Secretary immediately upon receipt of
the Committee's order; the Board shall hear the appeal within one
business day following receipt of said appeal notice or such later date
as the Board may establish pursuant to the written waiver of the one
business day hearing requirement by the member, member firm, person with
trading privileges, wholly-owned affiliate, agricultural regular firm,
guaranteed introducing broker, or employee or associated person of any
such individual or firm.
(2) The Committee shall have the authority to charge a member, member firm,
wholly-owned affiliate, agricultural regular firm, person with trading
privileges, guaranteed introducing broker, or any employee or associated
person of any such individual or firm alleged to have violated any Rule
or Regulation or written policy within its jurisdiction and may impose
any one or more of the following preliminary penalties: a reprimand, a
cease and desist order, a fine not to exceed $25,000 for each such
violation, and/or restitution. The Committee may also impose upon any
such individual member, person with trading privileges, or employee of a
member or member firm a preliminary denial of the privileges of the
Floor of the Exchange or suspension from membership status for a period
not in excess of ninety (90) business days for each such violation.
Except in the case of specified penalties, which shall be heard by the
Committee in accordance with Regulations 540.02 and 540.03, proceedings
shall be conducted by the Hearing Committee in accordance with
Regulations 540.02 and 540.03. The specified penalties which shall be
heard by the Committee shall be defined as a reprimand, fines not
exceeding $5,000.00 for any one violation, and a denial of the
privileges of the Floor for a period not exceeding five (5) business
days for any one violation. In the event there is a finding of multiple
violations of any Rules or Regulations it shall be within the relevant
Committee's discretion to apply its denial or suspension powers either
in a consecutive or concurrent manner.
A party under cease and desist order may apply to the Committee to
review and terminate such order, provided that such order has been in
effect for at least five years prior to application.
The decision of the Financial Compliance Committee or the Hearing
Committee may be appealed to the Appellate Committee in accordance with
Regulation 540.05 by filing with the Secretary of the Association,
within ten (10) business days after the decision is sent to the
respondent, a Notice of Appeal to the Appellate Committee requesting a
review by the Appellate Committee of all or part of the decision.
(3) Any member, member firm, wholly-owned affiliate, agricultural regular
firm, other person with trading privileges, guaranteed introducing
broker, or employee or associated person of any such individual or firm
who fails to appear before the Committee pursuant to its request, or to
submit his or its books and records to the Committee at its request,
shall be guilty of an offense against the Association.
The Committee may review at any time the operations or procedures of
members, member firms, wholly-owned affiliates, agricultural regular
firms, any other persons with trading privileges, guaranteed introducing
brokers, and any employees or associated persons of any such individuals
or firms to assure compliance with the Rules and Regulations of the
Association. Whenever such review discloses a condition or practice
which, in the Committee's judgment, falls within the provisions of
Regulation 270.01 or Regulation 540.06, it shall so advise the Chairman
of the Board and recommend such action as it deems appropriate in the
circumstances.
(g) Offense Against the Association. It shall be an act detrimental to the
interest and welfare of the Association for any member of the Association,
member firm, wholly-owned affiliate, agricultural regular firm, other person
with trading privileges, guaranteed introducing broker, or employee or
associated person of any such individual or firm to fail to comply with the
disciplinary action of the Committee after such action becomes effective.
(h) Hold-Over Members. Whenever the Committee members have begun to hear or
review evidence and argument in any proceeding, and the term of one or more
of the members expires, such member or
Ch5 Proceedings
---------------
members may continue in office until the proceeding has ended. A hold-over
member shall not participate in any other Committee business, nor shall his
continuation in office impair the appointment of his successor or his
successor's right to participate in all other Committee business. (08/01/04)
Ch5 Proceedings
560.00 Expulsion and Suspension from Membership - Unless otherwise
specifically provided, the penalty of suspension from membership may be
inflicted, and the period of suspension determined, by the vote of a majority of
the members of the Appellate Committee or the Board present, and the penalty of
expulsion from membership or of ineligibility of a suspended member for
reinstatement may be inflicted only by a vote of two-thirds of the members of
the Board present.
At any disciplinary hearing the Appellate Committee or the Board may impose a
fine upon any member or member firm for each Rule or Regulation violated. By
majority vote of the Appellate Committee members or Directors present, the fine
for each Rule or Regulation violated shall not exceed $250,000. The time for
payment of any such fine shall be determined by the Appellate Committee or the
Board. Failure of any member or member firm to pay the fine during the
prescribed period shall be considered an act detrimental to the interest and
welfare of the Association. 140 (08/01/94)
560.01 Disciplinary Notice - Any member who is suspended, expelled, denied
access to the Floor of the Exchange or otherwise disciplined shall be notified
of such action in writing, with notification to the Commodity Futures Trading
Commission in a manner permitted by the Commission, within thirty (30) days.
The notification shall include the reasons for the Exchange action in the form
and manner the Commission prescribes. 1795 (01/01/00)
560.02 Association Bar - Unless otherwise specifically provided, the penalty
of a bar from association with any member or member firm may be imposed, and the
period of an association bar determined, by the vote of a majority of the
members of the Appellate Committee or the Board present. A permanent bar from
association may be imposed only by the Board by a vote of two-thirds of the
members of the Board present. For purposes of this regulation, a bar from
association with any member or member firm includes, but is not limited to, a
member's acting in the capacity of a partner, officer, director, employee and/or
agent of a member or member firm. (08/01/94)
561.00 Suspended or Expelled Member Deprived of Privileges - When a member is
suspended by a Committee of the Association or the Board, such member shall be
deprived during the term of his suspension of all rights and privileges of
membership, but he may be proceeded against by the Board for an offense other
than that for which he was suspended.
The expulsion of a member terminates all rights and privileges arising out of
his membership, except such rights in respect to the proceeds of the transfer
thereof as he may have under the provisions of Chapter 2 hereof. 159
(08/01/94)
562.00 Discipline During Suspension - A member suspended under the provisions
of this Chapter may be proceeded against by the Board for any offense committed
by him either before or after the announcement of his suspension, in all
respects as if he were not under suspension. (08/01/94)
563.00 Trade Checking Penalties - The Floor Conduct Committee may assess a
penalty not to exceed $1,000.00 for each day that a member or registered
eligible business organization fails to make adequate provisions for the
checking of trades that have been rejected by the Clearing Services Provider.
Such penalty may be appealed to the Appellate Committee on the ground that it is
excessive or unreasonable, and the Appellate Committee may thereupon revoke,
modify, or impose a greater or different penalty. (01/01/04)
[Download Table]
====================================================================================
Chapter 6
Arbitration of Member Controversies
====================================================================================
600.00 Arbitration of Member Controversies.........................
600.01 Member to Member Statute of Limitations.....................
601.00 Arbitration of Customers' Claims and Grievances.............
601.01 Award of Actual Damages.....................................
601.02 Award of Punitive or Exemplary Damages......................
602.00 Arbitration of Other Member-Nonmember Controversies.........
Ch6 A. Definitions.........................................................
603.00 Member Defined..............................................
603.01 Definitions.................................................
Ch6 B. Organization........................................................
610.01 Arbitration Committee.......................................
610.02 Administrator of Arbitration................................
610.03 Unassociated Persons........................................
Ch6 C. Jurisdiction, Submission, Selection of Arbitrators..................
620.01 Jurisdiction and Submission.................................
620.02 Selection of Arbitrators and Chairman.......................
620.03 Special Arbitrators.........................................
620.04 Time Limit for Filing Customers' Claims and Grievances......
620.05 Time Limit for Filing Claims in Member/Agricultural Regular
Firm Controversies..........................................
Ch6 D. Procedure...........................................................
630.01 Pleadings...................................................
630.02 Third Party Actions.........................................
630.03 Cross Claims................................................
630.04 Representation by Attorney..................................
630.05 Time and Place for Hearing..................................
630.06 Witnesses, Subpoenas, Depositions...........................
630.07 Oath of Arbitrators.........................................
630.08 Hearing Procedures..........................................
630.09 Amendments To Pleadings.....................................
630.10 Adjournments................................................
630.11 Notice and Communications...................................
630.12 Arbitration Procedures For Claims Under $2,500..............
630.13 Rulings and Awards..........................................
630.14 Change of Award.............................................
Ch6 E. Miscellaneous Provisions............................................
640.01 Fees and Expenses...........................................
640.02 Ex Parte Contacts...........................................
640.03 Holdover Arbitrators........................................
640.04 Power to Decline Jurisdiction...............................
640.05 Compliance With Applicable Laws.............................
================================================================================
Chapter 6
Arbitration of Member Controversies
================================================================================
600.00 Arbitration of Member Controversies - Any controversy between parties
who were members at the time such controversy arose and which arises out of the
Exchange business of such parties shall, at the request of any such party, be
submitted to arbitration in accordance with regulations prescribed by the
Exchange. Every member, by becoming such, agrees to arbitrate all such disputes
with other members in accordance with this Rule and the regulations prescribed
by the Exchange pursuant to this Rule, and further agrees and obligates himself
to abide by and perform any awards made thereunder. (06/01/95)
600.01 Member to Member Statute of Limitations - Except as provided in the
e-cbot Error Trade policy, a controversy shall be submitted to arbitration
within two years from the date the member knew or should have known of the
dispute. (01/01/04)
601.00 Arbitration of Customers' Claims and Grievances - The Exchange shall by
regulation establish procedures in conformity with Section 5a(11) of the
Commodity Exchange Act and Regulations thereunder for the settlement through
arbitration of customers' claims and grievances against members and their
employees. Every member, by becoming such, agrees to abide by all regulations
prescribed by the Exchange pursuant to this Rule, and further agrees to abide by
and perform any awards made thereunder. (08/01/94)
601.01 Award of Actual Damages - If an award of actual damages is made against
a floor broker in connection with the execution of a customer order, the futures
commission merchant that selected the floor broker may be required to satisfy
such award. (08/01/94)
601.02 Award of Punitive or Exemplary Damages - Punitive or exemplary damages
may be awarded to a customer in addition to losses proximately caused by a floor
broker, if the floor broker acted wilfully and intentionally in bringing about
the customer's losses. The punitive or exemplary damages may not exceed an
amount equal to two times the amount of the actual damages proximately caused by
the floor broker. In addition, the futures commission merchant that selected the
floor broker may be required to satisfy the award of punitive or exemplary
damages if the floor broker fails to do so and only if the futures commission
merchant wilfully and intentionally selected the floor broker with the intent to
assist or facilities the floor broker's violation. (08/01/94)
602.00 Arbitration of Other Member-Nonmember Controversies - - The Exchange may
by regulation establish procedures for the voluntary arbitration of
controversies between members and nonmembers arising out of Exchange business,
other than customers' claims and grievances, where neither the claim, nor any
counterclaim, is in excess of $50,000. Every member, by becoming such, agrees to
abide by all regulations which the Exchange may prescribe pursuant to this Rule,
and further agrees to abide by and perform any awards made thereunder.
(08/01/94)
Ch6 A. Definitions
603.00 Member Defined - For purposes of this Chapter, the term "member"
includes all individual members of the Association, and all partnerships,
corporations, and cooperative associations registered with the Association
pursuant to Rule 230.00 or related regulations. (11/01/94)
603.01 Definitions -
For purposes of this Chapter:
A. "Member" of the Association includes all individual members of the
Association, and all partnerships, corporations, and cooperative
associations that are registered with the Association pursuant to Rule
230.00 or Regulation 230.17. For purposes of Rule 600.00 and Regulation
620.01(A), "member" shall also be deemed to include the operator or manager
of a warehouse or shipping plant that has been declared regular by the
Exchange for the delivery of grains, soybean oil or soybean meal in Board of
Trade contracts.
B. "Claims or grievance" is any dispute which arises out of any transaction on
or subject to the rules of the Exchange (including any transaction on or
subject to the Rules of another contract market if such transaction is part
of the same cause of action), executed by or effected through a member of
the Association, or by or through an employee of a member of the
Association, which dispute does not require for adjudication the presence of
essential witnesses or third parties over whom the Association does not have
jurisdiction and who are not otherwise available. A "claim or grievance"
does not include disputes arising from cash market transactions which are
not part of or directly connected with any transaction for the purchase or
sale of any commodity for future delivery.
C. "Customer" does not include any member of the Association.
D. "Unassociated person" excludes all persons who are either members of or
associated with members of the Association, who are employees of the
Association, or who are otherwise associated with the Association. For the
purpose of customer claims or grievances in connection with this chapter
only, "unassociated person" excludes all persons who are members of, or
associated with members of, or are employees of, or otherwise associated
with, the Association or any other contract market. (08/01/94)
Ch6 B. Organization
610.01 Arbitration Committee - The Arbitration Committee shall consist of
twenty-eight (28) individual members of the Association appointed by the
Chairman of the Board with the approval of the Board. Seven (7) shall be chosen
from each of the following four (4) categories: seven (7) shall be principally
engaged as floor traders; seven (7) shall be principally engaged as floor
brokers; seven (7) shall be affiliated with brokerage firms; and seven (7) shall
be affiliated with commercial firms. Fourteen (14) members shall be appointed
for a term to end January, 1992, and fourteen (14) members shall be appointed
for a term to end January, 1993. Beginning January, 1992, fourteen (14) members
shall be appointed each year for a term of two years. A vacancy shall be filled
for the unexpired term in the same manner as is provided above. No person shall
be a member of the Committee who, at the same time, is a member of the Board or
a member of any standing disciplinary committee. A member of the Arbitration
Committee shall not be disqualified to serve on the Committee or any panel
thereof due to a change in categories subsequent to his appointment. If the
category of a member of the Arbitration Committee should change subsequent to
his appointment, he shall be considered for all purposes to be in the category
from which he was chosen on the date of his appointment. (08/01/94)
610.02 Administrator of Arbitration - The Administrator of Arbitration
("Administrator") shall be appointed by the President to serve at his will. The
Administrator shall assist the Arbitration Committee in the performance of its
work, and perform all ministerial duties in connection therewith including the
following: he shall receive and file all submissions, pleadings and awards; he
shall select unassociated persons to serve on Mixed Panels; he shall schedule
and give notice of all hearings, keep a record of all cases, and keep such other
books, and memoranda as the Committee shall from time to time direct; he shall
receive and disburse all deposits and costs and keep careful and accurate
account thereof under the supervision of the Arbitration Committee; and he shall
perform all other duties incident to his office. (08/01/94)
610.03 Unassociated Persons - The Administrator shall maintain a list of
unassociated persons available to serve as arbitrators on Mixed Panels
constituted pursuant to Regulation 620.02 for the arbitration of customers'
claims and grievances and other member-nonmember controversies. The
Administrator shall from time to time select unassociated persons and place on
the list the names of such unassociated persons who are willing to serve as
arbitrators. (08/01/94)
Ch6 C. Jurisdiction, Submission, Selection of Arbitrators
620.01 Jurisdiction and Submission -
A. Member Controversies. The Arbitration Committee has jurisdiction to
arbitrate all controversies between members arising out of Exchange
business. A member party may compel another member party to arbitrate such
controversies by delivering to the Administrator a Statement of Claim.
B. *Customer's Claims and Grievances. The Arbitration Committee and Mixed
Panels constituted pursuant to Regulation 620.02 have jurisdiction to
arbitrate all customer's claims and grievances against any member or
employee thereof which have arisen prior to the date the customer's claim is
asserted. If the customer elects to initiate an arbitration proceeding of
any customer claim or grievance, the member shall submit to arbitration in
accordance with these Arbitration Rules and Regulations. The arbitration
shall be initiated by delivery to the Administrator of (a) a Statement of
Claim and a "Chicago Board of Trade Arbitration Submission Agreement for
Customers' Claims and Grievances" signed by the customer or (b) a Statement
of Claim and another arbitration agreement between the parties, which
agreement conforms in all respects with any applicable requirements
prescribed by the Commodity Futures Trading Commission. The refusal of any
member or employee to sign the ''Chicago Board of Trade Arbitration
Submission Agreement for Customer's Claims and Grievances" shall not deprive
the Arbitration Committee or a mixed Panel constituted pursuant to
Regulation 620.02 of jurisdiction to arbitrate customers' claims under these
Arbitration Rules and Regulations. The Committee and Mixed Panels have
jurisdiction to arbitrate a counterclaim asserted in such an arbitration,
but only if it arises out of the transaction or occurrence that is the
subject of the customers' claim or grievance and does not require for
adjudication the presence of essential witnesses, parties or third persons
over whom the Association does not have jurisdiction. Other counterclaims
are subject to arbitration by the Committee, or a Mixed Panel, only if the
customer agrees to the submission after the counterclaim has arisen.
C. Other Member-Nonmember Controversies. The Arbitration Committee, and Mixed
Panels constituted pursuant to Regulation 620.02, have jurisdiction to
arbitrate all controversies between members and nonmembers arising out of
Exchange business, other than customers' claims and grievances, where
neither the claim nor the counterclaim is in excess of $50,000 and where the
claim is filed no more than one year after the date of the transaction
giving rise to the claim or controversy. Any party may request the
arbitration of such controversy by delivering to the Administrator (1) a
Statement of Claim and a ''Chicago Board of Trade Arbitration Submission
Agreement" signed by all the parties or (2) a Statement of Claim and another
arbitration agreement between the parties, which agreement conforms in all
respects with any applicable requirements prescribed by the Commodity
Futures Trading Commission.
*The following is the text of Regulation 620.01(B) as amended by CFTC Rule
7.201. The legality of Rule 7.201, and thus the obligation of Board of Trade
members to arbitrate customer's claims and grievances, has been the subject of
litigation between the Board of Trade and one of its member firms against the
CFTC since 1982. On December 30, 1986, the United States District Court for the
Northern District of Illinois declared CFTC Rule 7.201 to be invalid as an
unconstitutional denial of a member firm's Seventh Amendment right to a jury
trial. However, on December 22,1987, the Seventh Circuit Court of Appeals
overturned the District Court's decision, thereby upholding CFTC Rule 7.201. The
Board of Trade, with a member firm, filed with the United States Supreme Court a
petition to review the Seventh Circuit's decision. On October 3,1988, the
Supreme Court denied the petition. The Supreme Court's ruling, in effect,
reaffirms the Seventh Circuit's decision validating CFTC Rule 7.201 and
compelling Association members, at the option of the customer, to arbitrate
customer disputes arising out of Exchange business. (08/01/94)
620.02 Selection of Arbitrators and Chairman
A. Customers' Claims and Grievances. Prior to the time of a customer's
submission of a claim or grievance to the arbitration procedure established
herein, he shall be informed that he may elect at the time of submission of
the claim or grievance to have his dispute heard by an arbitration panel
consisting of members selected pursuant to Subsection C of this Regulation,
or by a Mixed
Ch6 C. Jurisdiction, Submission, Selection of Arbitrators
---------------------------------------------------------
Panel selected pursuant to this Subsection. The customer shall be advised,
prior to election of a Mixed Panel
1. that any increased expenses attendant to having such a Mixed Panel shall
be borne by the member(s) regardless of the outcome of the arbitration
unless the arbitrators determine that the customer acted in bad faith in
initiating, or participating in, the arbitration proceeding.
2. that the Mixed Panel may have more or less knowledge in the area of
commodities relevant to his claim that a panel composed entirely of
members of the Arbitration Committee.
Such Mixed Panel shall be composed of five (5) persons, three of whom shall
be unassociated persons, and two of whom shall be members of the Arbitration
Committee, both of whom may be from the same category. The unassociated
persons on such Mixed Panel shall be chosen by the Administrator by lot from
the list of available unassociated persons maintained by the Administrator.
The members of the Arbitration Committee shall be selected in a manner to be
established by the Committee. Each panel shall be chaired by a member of the
Executive Subcommittee of the Arbitration Committee.
B. Other Member-Nonmember Controversies. The provisions of Subsection A of the
Regulation shall be applicable to the arbitration of member-nonmember
controversies, as well as to the arbitration of customers' claims and
grievances.
C. Other Controversies. In the case of controversies between members, or in the
event that a customer or nonmember party does not elect a Mixed Panel as
outlined in Subsections A and B of this Regulation, the arbitration panel
shall consist of five (5) Arbitrators, to be selected from the Arbitration
Committee in a manner to be established by the Committee, with at least one
Arbitrator to be selected from each category described in Regulation 610.01.
Each panel shall be chaired by a member of the Executive Subcommittee of the
Arbitration Committee.
D. Executive Subcommittee of the Arbitration Committee. For the purpose of this
Regulation 620.02, the Executive Subcommittee of the Arbitration Committee
shall consist of one Chairman, one Vice Chairman and three other members,
all of whom have been appointed by the Chairman of the Board with the
approval of the Board of Directors. One member of the Subcommittee must be
principally engaged as a floor trader, one member must be principally
engaged as a floor broker, one member must be affiliated with a brokerage
firm, and one member must be affiliated with a commercial firm. The Chairman
of the Subcommittee may come from any of the four categories cited in the
preceding sentence. (11/01/97)
620.03 Special Arbitrators - Where the controversy is of a highly technical
nature, if the parties desire, they may arrange between themselves for one or
more Special Arbitrators to be convened by the Administrator, in which event
such Special Arbitrator or Special Arbitrators shall proceed in accordance with
the provisions of this Chapter. (08/01/94)
620.04 Time Limit for Filing Customers' Claims and Grievances - The Arbitration
Committee and Mixed Panels constituted pursuant to Regulation 620.02 do not have
jurisdiction to arbitrate customers' claims and grievance which are filed more
than one year after the date of the transaction giving rise to the claim or
controversy. (08/01/94)
620.05 Time Limit for Filing Claims in Member/Agricultural Regular Firm
Controversies - The Arbitration Committee does not have jurisdiction to
arbitrate controversies between members and agricultural regular firms which are
filed more than one year after the date of the events giving rise to the claim
or controversy. (08/01/94)
Ch6 D. Procedure
630.01 Pleadings
A. Form of Pleadings. Pleadings shall be sufficient if they contain information
which reasonably informs the other party of the nature of the claim,
counterclaim, or defense. The amount of the claim or counterclaim shall be
stated where possible. Provided, however, in any controversy submitted
between non-members (parties who are neither customers nor members) and
members or their employees, the parties shall be deemed to have agreed
between themselves that no award upon a claim or counterclaim shall exceed
$50,000.
B. Notice. The Administrator shall deliver or mail copies of all pleadings to
the parties as soon as practicable.
C. Answer and Counterclaim. The respondent shall have ten (10) business days
from receipt of the Statement of Claim in which to file an answer and
counterclaim, if any, with the Administrator. If the respondent does not
file an answer and counterclaim, if any, within the time prescribed, the
respondent will be deemed to have denied the claim and to have waived any
counterclaim. The Administrator, in his discretion, may extend the filing
period upon request of the respondent.
D. Reply. The claimant shall be given the same opportunity to reply to any
counterclaim as was given the respondent to answer. (08/01/94)
630.02 Third Party Actions - In an arbitration between members pursuant to the
provisions of Regulation 620.01(A).
1. A party may bring in a third party member against whom a claim is asserted
arising out of or in connection with transactions referred to in the
pleadings.
2. A member may, in the discretion of the Arbitrators, intervene in a pending
arbitration proceeding and become a party if the Arbitrators are satisfied
that the claim which he asserts against either or both of the parties arises
out of or in connection with the transactions referred to in the pleadings.
3. The procedures to be followed in any third party action shall be determined
by the Arbitrators. (08/01/94)
630.03 Cross Claims - In an arbitration between members pursuant to the
provisions of Regulation 620.01(A), parties shall have the right to assert cross
claims. (08/01/94)
630.04 Representation by Attorney - A party is not required to be represented
by an attorney; however, he has the right to be represented by an
attorney at his own expense if he so chooses. A party who is represented by an
attorney shall so notify the Administrator and shall furnish to him the
attorney's name and address. Subsequent papers in the proceeding may be
delivered or mailed to the party through his attorney. The arbitrators may award
a party all or any portion of the party's reasonable attorneys fees and expenses
incurred as a result of another party's frivolous claim or defense. The party so
awarded shall submit an affidavit, detailing his attorney fees and expenses, to
the Administrator with notice to the opposing party. (08/01/96)
630.05 Time and Place for Hearing - The Administrator shall set a date for the
hearing after all pleadings have been filed, and shall notify the parties at
least five (5) business days in advance of the time and place, with a copy of
the notification to the Arbitrators. All hearings shall be held in the City of
Chicago, State of Illinois. If it is determined by the Administrator that it is
necessary, for any reason, to postpone the time of hearing, he shall notify the
parties. When a new date for hearing is set, the parties shall be notified as
soon as practicable and no less than five (5) business days before the hearing
unless the time limit is waived. (08/01/94)
630.06 Witnesses, Subpoenas, Depositions - Arbitrators and parties shall have
such powers in regard to compelling attendance of witnesses or the production of
documents or things, or the taking of depositions, as are provided in the
Uniform Arbitration Act of Illinois. (08/01/94)
630.07 Oath of Arbitrators - All Arbitrators shall be sworn faithfully and
fairly to hear, examine, and determine all controversies and to make awards
according to the best of their understanding. Such oath may be administered by
any person authorized to administer oaths. (08/01/94)
Ch6 D. Procedure
----------------
630.08 Hearing Procedures
A. The Arbitrators may allow stipulations and establish such other procedures
as may simplify the issues and expedite the hearing. The Arbitrators may
hear and determine the controversy upon the evidence produced,
notwithstanding the failure of a party duly notified to appear or to present
evidence.
B. Each of the parties or his attorney shall be permitted to make an opening
statement; present witnesses and evidence material to the controversy;
cross-examine witnesses, including parties to the arbitration; and present
closing arguments orally or in writing as may be determined at the hearing
by the Arbitrators. The Arbitrators shall not be bound by formal rules of
evidence. The Arbitrators shall receive and consider the evidence of
witnesses by affidavit, but shall give it only such weight as they deem it
entitled to after consideration of any objections made to its submission.
All testimony shall be taken under oath or affirmation. The hearing shall be
formally declared closed by the Arbitrators. Such hearings may, however, in
the discretion of the Arbitrators, be reopened at any time prior to the
making of an award.
C. The Arbitrators may, when they deem it appropriate, record the proceedings
in whatever manner they determine. Any party may require the proceedings to
be transcribed if he agrees to pay the actual cost of such transcription.
The Administrator shall make the necessary arrangements for the taking of a
stenographic record whenever such record is requested. (08/01/94)
630.09 Amendments To Pleadings - At any time before the hearings are declared
closed, any party may move to amend his pleadings to conform to the evidence
and, if the Arbitrators shall permit the amendment, the case shall be determined
on the amended pleadings. (08/01/94)
630.10 Adjournments - The Arbitrators may adjourn the hearings from time to
time upon the application of either party for good cause or at their own
instance. (08/01/94)
630.11 Notice and Communications - Notices shall be given to the parties by the
Administrator or otherwise as the Arbitrators may direct. (08/01/94)
630.12 Arbitration Procedures For Claims Under $2,500
A. Where claims of the parties including counterclaims, if any, are under
$2,500 in the aggregate, the dispute shall be resolved by the Arbitrators
solely upon the pleadings and documentary evidence filed by the parties. A
party shall have the right to take the deposition of any other party in the
manner and upon terms designated by the Arbitrators.
B. Notwithstanding the provisions of this Regulation, the Arbitrators may
request the submission of further evidence in the proceedings, and the
Arbitrators may, by a majority vote, call and conduct a hearing if such is
deemed to be necessary. (08/01/94)
630.13 Rulings and Awards
A. All rulings and awards shall be by a majority vote of the Arbitrators.
B. The award shall be in writing and signed by the Arbitrators joining in the
award. Such award shall be promptly rendered according to the Rules and
Regulations of the Association and the laws of the land, and the award shall
be final. The Arbitrators shall file the award with the Administrator and
the Administrator shall deliver or mail a copy to each party.
C. Failure to comply with an order or award of the Arbitration Committee or to
pay the full amount of the award to the Exchange as escrow agent within
thirty (30) days of notice of the order or award shall be deemed to be a
failure to perform an Exchange contract in accordance with Rule 278.00
The amount of the award placed in escrow with the Exchange plus accrued
interest shall be released to the prevailing party ninety-one days after
notice of the award is issued unless a timely motion to vacate, modify or
correct the award has been filed with a court of competent jurisdiction, in
which case the amount shall continue to be held by the Exchange and together
with accrued interest shall be disbursed upon the entry of and in accordance
with a final order disposing of such motion. (08/01/94)
630.14 Change of Award - On application of a party to the Arbitrators, the
Arbitrators may modify or correct the award in accordance with the Uniform
Arbitration Act of Illinois. (08/01/94)
Ch6 E. Miscellaneous Provisions
640.01 Fees and Expenses - A schedule of arbitration fees shall be established
from time to time by the Arbitration Committee, with the approval of the Board.
The Arbitrators, in the award, shall fix expenses and assess fees, in accordance
with the Committee's schedule, in whatever manner they deem appropriate,
provided that incremental costs associated with the selection of a Mixed Panel
by a customer shall be borne by the member regardless of the outcome of the
arbitration unless the arbitrators shall determine that the customer acted in
bad faith in initiating, or participating in, the arbitration proceeding.
Parties shall be notified prior to the submission of a claim of the nature and
amount of fees and expenses which may be assessed against the parties to the
extent that the amount of such fees and expenses may be determined prior to
submission and hearing of the claim. (08/01/94)
640.02 Ex Parte Contacts - Parties are prohibited from making ex parte contacts
with any Arbitrator hearing an arbitration between the parties. (08/01/94)
640.03 Holdover Arbitrators - Whenever the Arbitrators have begun to hear or
review evidence and argument in any arbitration proceeding, and the term of one
or more of the Arbitrators expires, such Arbitrator or Arbitrators shall
continue in office until the arbitration proceeding has ended. A holdover member
shall not participate in any other Committee business, nor shall his
continuation in office impair the appointment of his successor or his
successor's right to participate in all other Committee business. (08/01/94)
640.04 Power to Decline Jurisdiction - Arbitrators may decline jurisdiction in
any case, except as provided by law. The Arbitrators may, at any time during the
proceeding, except as provided by law, and shall, upon the joint request of the
parties, dismiss the proceeding. (08/01/94)
640.05 Compliance With Applicable Laws - The Regulations of this Chapter shall
be so construed as to comply with applicable mandatory provisions of the
Commodity Exchange Act (including Regulations thereunder) and all mandatory
provisions of the Uniform Arbitration Act of Illinois and, where in conflict
with the mandatory provisions of such Act or Acts, the Acts shall prevail.
However, these Regulations, being an integral part of all agreements for the
arbitration of disputes pursuant hereto, shall supersede all provisions of the
Acts which are waivable by agreement. (08/01/94)
[Download Table]
=========================================================================
Chapter 7
Clearing
=========================================================================
Ch7 Clearing House......................................................
700.00 Settlement by Clearance....................................
701.00 Clearing Services..........................................
701.01 Transfer of Open Positions to Clearing Services Provider...
703.00 Clearing Membership........................................
703.00A Office Location and Operation..............................
704.00 Substitution...............................................
705.00 Offsets....................................................
705.01 Reporting (Margins)........................................
705.02 Reporting (Offsets)........................................
706.00 Trades for Customers.......................................
================================================================================
Chapter 7
Clearing
================================================================================
Ch7 Clearing
700.00 Settlement by Clearance - All contracts, including contracts made by
members upon behalf of non-members, shall be cleared through the Clearing
Services Provider selected by the Exchange, and all such contracts shall be
subject to those rules, policies, and procedures of such Clearing Services
Provider that are specified by the relevant Clearing Services Agreement, or are
otherwise specified by the Exchange. 310 (01/01/04)
701.00 Clearing Services - The Exchange may discontinue the clearance of
futures and options contracts through a particular Clearing Services Provider,
and select and substitute another Clearing Services Provider or method of
clearance. 311 (01/01/04)
701.01 Transfer of Open Positions to Clearing Services Provider - Each clearing
member shall comply in all respects with any statement of policy or other notice
issued by the Exchange relating to the procedures and processes that must be
followed to effectuate the transfer of open positions to any Clearing Services
Provider. (08/01/03)
703.00 Clearing Membership - The Clearing Services Provider may prescribe the
qualifications of CBOT Clearing Members that may be admitted as Special Clearing
Members of the Clearing Services Provider, subject to the provisions of the
relevant Clearing Services Agreement. However, no person, corporation, limited
liability company, partnership, or any other type of eligible business
organization (hereinafter collectively referred to as "Eligible Business
Organization") shall become a CBOT Clearing Member until approved by the
Exchange, subject to the following conditions:
(a) No Eligible Business Organization shall become CBOT Clearing Member for the
purpose of clearing trades for others unless two Full Memberships have been
registered on behalf of the firm pursuant to Rule 230.00. Such memberships
may be held in the name of any principal or employee of the Eligible
Business Organization.
(b) A Sole Proprietor may be a CBOT Clearing Member provided that he clears
trades exclusively for his own account.
(c) No Eligible Business Organization may be a CBOT Clearing Member for the
purpose of clearing its own trades exclusively unless one Full Membership
has been registered on behalf of the firm pursuant to Rule 230.00. Such
membership may be held in the name of any principal or employee of the
Eligible Business Organization.
(d) A lawfully formed and conducted cooperative association of producers having
adequate financial responsibility and which is engaged in any cash
commodity business, may become a CBOT Clearing Member provided it meets the
registration requirements for Eligible Business Organizations as set forth
in this Rule.
(e) A member firm which is also a clearing member firm of the Exchange, or a
managerial employee of such firm, shall not be prohibited from owning,
controlling, or being a shareholder, member or limited partner in one other
clearing member firm provided that when both clearing members are
corporations, the second clearing member is a 100% wholly owned subsidiary
of the first clearing member corporation and further provided that each
clearing member must, in its own right, meet all the conditions and
requirements contained in this chapter.
(f) An Eligible Business Organization which is not a clearing member of this
Exchange shall not be prohibited from owning and controlling two clearing
members, provided that each of the two clearing members is a 100%
wholly-owned subsidiary of the Eligible Business Organization and provided
that each of the two clearing members meets all of the conditions and
requirements contained in this chapter in its own right. (01/01/04)
703.00A Office Location and Operation - A CBOT Clearing Member must operate
under the direct supervision of the Sole Proprietor, if it is a Sole
Proprietorship, or of a member in good standing having full authority to
transact business with the Exchange and the Clearing Services Provider, for and
on behalf of the Clearing Member, including entering into Exchange and members'
contracts, if it is an Eligible Business Organization.
Back-office operations may be located outside Chicago provided the Clearing
Member, or applicant for clearing membership, meets any systems requirements,
documentation and/or agreements as prescribed by the Exchange and the Clearing
Services Provider, in order to ensure that the Clearing Member/applicant will
be able to comply with the Exchange's and the Clearing Services Provider's
rules, policies and procedures. 31R (01/01/04)
Ch7 Clearing House
------------------
704.00 Substitution - Where a future delivery contract is cleared through the
Clearing Services Provider
Ch7 Clearing House
------------------
the Clearing Services Provider shall be deemed substituted as seller to the
buyer, and shall also be deemed substituted as buyer to the seller, and
thereupon the Clearing Services Provider shall have all of the rights and be
subject to all of the liabilities of the original parties with respect to such
contract. 314 (01/01/04)
705.00 Offsets - Where a clearing member buys and sells the same commodity
for the same delivery, and such contracts are cleared through the Clearing
Services Provider, the purchases and sales shall be offset to the extent of
their equality, and the clearing member shall be deemed a buyer from the
Clearing Services Provider to the extent that his purchases exceed his sales, or
a seller to the Clearing Services Provider to the extent that his sales exceed
his purchases. 315 (01/01/04)
705.01 Reporting (Margins) - A bona fide hedger, in financial instruments,
may report positions to the Clearing Services Provider on a gross basis provided
appropriate margins are paid during the delivery month, on the gross positions
reported, as required by Regulation 431.02. (18) (01/01/04)
705.02 Reporting (Offsets) - A bona fide hedger, in financial instruments,
reporting consistently on a gross basis under Regulation 705.01 shall, during a
delivery month settle gross positions only by offsetting such positions through
trades in the pit. During non-delivery months, and not later than three days
prior to the first day of the delivery month, gross positions may be offset as
provided for in the Rules of the Exchange. (11/01/03)
706.00 Trades for Customers - Where a Clearing Member makes a futures or
options trade for a customer (member or non-member) and the trade is cleared
through the Clearing Services Provider, the Clearing Services Provider becomes
the principal who is liable to the customer and to whom the customer is liable,
subject to the following: (a) the trade shall remain subject to the rules,
policies and procedures of the Exchange and, as applicable, the Clearing
Services Provider; (b) the trade may be offset against other trades of the
Clearing Member as provided in Rule 705.00; (c) if the trade is not offset and
the Clearing Member being a seller, tenders a delivery notice to the Clearing
Services Provider, the Clearing Member to whom such delivery is assigned shall
thereupon be substiuted as buyer in lieu of the Clearing Services Provider; (d)
if the trade is not offset, and the Clearing Member, being a buyer, is assigned
a delivery, the seller whose delivery is thus assigned shall thereupon be
substituted as seller in lieu of the Clearing Services Provider; (e) if the
trade is offset, the Clearing Services Provider shall be discharged, and the
Clearing Member itself shall be substituted for the Clearing Services Provider
as principal. For the purpose of this Rule, the first trades made shall be
deemed the first trades offset. 316 (01/01/04)
[Download Table]
================================================================================
Chapter 9
Definitions
================================================================================
Ch9 Definitions....................................................
901.00 Authority.............................................
902.00 And...................................................
903.00 Association...........................................
903.01 Association...........................................
904.00 Board.................................................
905.00 Bulletin Board........................................
906.00 Business Day..........................................
906.03 Regular Trading Hours ("RTH").........................
906.04 Trading Day...........................................
906.05 Trading Session.......................................
906.06 e-cbot Trading Hours..................................
907.00 Cash Grain............................................
908.00 Cash Grain Broker.....................................
909.00 Chicago District......................................
911.00 Clearing Services Provider............................
912.00 Clearing Member or CBOT Clearing Member...............
913.00 Commission Merchant...................................
914.00 Commodity.............................................
915.01 DRT ("Disregard Tape" or "Not Held") Order............
915.02 All or None Order.....................................
916.00 Exchange Contracts and Members' Contracts.............
917.00 Floor Broker..........................................
918.00 Following Day, or other similar expression............
919.00 Future Delivery Contract..............................
920.00 Grain.................................................
921.00 Grain to Arrive.......................................
922.00 Holiday...............................................
923.00 List..................................................
924.00 Member................................................
924.01 Membership on Committees..............................
925.00 Non-clearing Member...................................
926.00 Non-member............................................
927.00 Notice................................................
928.00 On the Exchange, or on Change.........................
929.00 Outside Points........................................
930.00 President.............................................
931.00 Privilege of the Floor................................
932.00 Railroad Receipts.....................................
933.00 Regulations...........................................
934.00 Rules.................................................
935.00 Secretary.............................................
936.00 Security or Securities................................
937.00 Singular..............................................
939.00 Spot Grain............................................
940.00 Stop Order or Stop Loss Order.........................
941.00 Board Order or Market If Touched Order................
942.00 Trade.................................................
943.00 Transaction on Change.................................
944.00 Treasurer.............................................
945.00 Chairman of the Board.................................
946.00 Financial Instrument Contract.........................
Definitions
-----------
[Download Table]
948.00 Volatility Quote......................................
949.01 e-cbot................................................
================================================================================
Chapter 9
Definitions
================================================================================
Ch9 Definitions
901.00 Authority - Whenever used in these Rules and Regulations, unless the
context otherwise requires, the following words and expressions shall be defined
as follows: 1 (08/01/94)
902.00 And - May be construed as "or," and vice versa when the sense
requires. 2 (08/01/94)
903.00 Association - Board of Trade of the City of Chicago, Inc., a Delaware
nonstock, for-profit corporation. 3 (08/01/94)
903.01 Association - The term "Association" as defined in Rule 903.00 shall
include all wholly-owned subsidiaries of the Board of Trade of the City of
Chicago, Inc., a Delaware nonstock, for-profit corporation. (08/01/94)
904.00 Board - The Directors, the Chairman of the Board, the Vice Chairman of
the Board and the President. 4 (08/01/94)
905.00 Bulletin Board - The bulletin board in the Exchange Hall where notices
are customarily posted. 5 (08/01/94)
906.00 Business Day - Days when the Association is open for business. 6
(08/01/94)
906.03 Regular Trading Hours ("RTH") - Those hours designated by the Board of
Directors for trading during daytime hours by means of open outcry. (08/01/94)
906.04 Trading Day - (a) For agricultural contracts, each trading day (1)
shall consist of two trading sessions, the e-cbot trading session and the
Regular Daytime open outcry session, and (2) shall begin with the e-cbot trading
session and end with the close of Regular Daytime open outcry session. (b) For
contracts which are traded concurrently on e-cbot and by open outcry, the
trading day (1) shall consist of two trading sessions, the e-cbot trading
session and the Regular Daytime open outcry trading session, and (2) shall begin
with the e-cbot trading session and end with the later of the close of the e-
cbot trading session or the close of the Regular Daytime open outcry session.
Settlement prices will be derived from the close of the Regular Daytime open
outcry session, except in the case of contracts which are traded exclusively on
e-cbot. For contracts traded exclusively on e-cbot, settlement prices will be
derived from the close of the e-cbot trading session. (09/01/00)
906.05 Trading Session - A trading session shall mean either the hours
designated for e-cbot trading or the hours designated for regular daytime
trading. (09/01/00)
906.06 e-cbot Trading Hours - Those hours designated by the Exchange for
trading through the e-cbot system for particular contracts. (11/01/03)
907.00 Cash Grain - Spot grain and grain to arrive. 7 (08/01/94)
908.00 Cash Grain Broker - A member who negotiates purchases or sales of cash
grain for a brokerage. 8 (08/01/94)
909.00 Chicago District - The Chicago District as now or hereafter defined in
the joint railroad tariffs of the railroads entering Chicago. 9 (08/01/94)
911.00 Clearing Services Provider - The Chicago Mercantile Exchange, Inc. or
any other entity with which the Exchange may enter into an agreement to provide
clearing, settlement, or any related services. (01/01/04)
912.00 Clearing Member or CBOT Clearing Member - An Exchange member or member
firm that meets the Exchange's requirements to clear any futures or options
listed for trading on the Exchange. 12 (01/01/04)
913.00 Commission Merchant - A member who makes a trade, either for another
member or for a non-member, but who makes the trade in his own name and becomes
liable as principal as between himself and the other party to the trade. 13
(08/01/94)
Definitions
-----------
914.00 Commodity - Any commodity which may be dealt in under Rules or
Regulations of the Association. 14 (08/01/94)
915.01 DRT ("Disregard Tape" or "Not Held") Order - An order giving the floor
broker complete discretion over price and time in execution of a trade,
including discretion to execute all, some or none of the order. It is understood
the floor broker accepts such an order solely at the risk of the customer on a
"not held" basis. (02/01/95)
915.02 All-or-None Order - An order to be executed only for its entire
quantity at a single price and with a size at or above a predetermined
threshold. (07/01/00)
916.00 Exchange Contracts and Members' Contracts - All contracts of members
of the Association, or of firms or corporations registered under the Rules and
Regulations, with other members of the Association, or firms or corporations
registered under the Rules and Regulations, for the purchase or sale of
commodities, or for the purchase, sale, borrowing, loaning, or hypothecation of
securities, or for the borrowing, loaning or payment of money, whether occurring
upon the floor of the Exchange or elsewhere, are members' contracts.
Exchange Contracts shall include all Members' Contracts:
(1) Made on the Exchange;
(2) Not made on the Exchange, unless made subject to the rules of another
Exchange, or unless the parties thereto have expressly agreed that the same
shall not be Exchange Contracts.
The provisions of the Rules and Regulations of the Association shall be part of
the terms and conditions of all Exchange Contracts and all such contracts shall
be subject to the exercise by the Board, the Standing Committees, and the
Clearing services provider of the powers in respect thereto, vested in them by
the Rules and Regulations. And all such contracts shall be subject to all Rules
or Regulations subsequently adopted, where such Rules or Regulations are
expressly made applicable to existing contracts. 16 (01/01/04)
917.00 Floor Broker - A member who makes contracts for the account of other
members. 17 (08/01/94)
918.00 Following Day, or other similar expression - The following business
day. 18 (08/01/94)
919.00 Future Delivery Contract - A contract made on Change for the purchase
or sale of any commodity for delivery in the future pursuant to the Rules and
Regulations. (08/01/94)
920.00 Grain - Wheat, corn, oats, rye, barley, flaxseed, soybeans and grain
sorghum. 20 (08/01/94)
921.00 Grain to Arrive - Grain originating at outside points for shipment to
or shipped to the Chicago District, subject to Chicago Board of Trade weights or
Chicago inspection. 21 (08/01/94)
922.00 Holiday - Any day declared to be a holiday by Regulation or Resolution
adopted by the Board of Directors of this Association. 22 (08/01/94)
923.00 List - The list of securities admitted to dealings on the Exchange. 23
(08/01/94)
924.00 Member - A member of the Association. 24 (08/01/94)
924.01 Membership on Committees - The term "member", as used throughout these
Rules and Regulations for eligibility for membership on Standing or Special
Committees, shall include only those members who hold a Full or Associate
Membership.
Delegates of Full or Associate Memberships who do not hold in their own name a
Full or Associate Membership are eligible to serve as full voting members on any
Standing or Special Committee of the Association, unless otherwise specified in
these Rules and Regulations, except for the following Committees:
Appellate; Arbitration; Business Conduct; Executive; Finance; Financial
Compliance; Floor Broker; Floor Conduct; Floor Governors; Hearing; Strategy;
Membership; Nominating; Regulatory Compliance; Audit; and Human Resources.
Definitions
-----------
The Chairman of the Board, or the Board, may appoint any such delegate to a
Special or Ad Hoc Committee if that delegate has unique and valuable expertise
to offer to that Committee. However, if any such Special or Ad Hoc Committee
shall later be determined to be a Standing Committee, the eligibility of any
such delegate as a full voting member on that Committee shall be referred to the
Regulatory Compliance Committee.
None of the foregoing shall prohibit the Chairman of the Board, or the Board,
from appointing such delegates as non-voting advisors to any committee.
(02/01/99)
924.02 Status of GIMS, IDEMs and COMs - The holders of GIM, IDEM and COM
membership Interests are, and shall deemed to be, "members" of the Board of
Trade of the City of Chicago, Inc. For purpose of the Delaware General
Corporation law, as amended from time to time.
925.00 Non-clearing Member - A member of the Association who does not clear
trades in his own name. 25 (08/01/94)
926.00 Non-member - A non-member of the Association. 26 (08/01/94)
927.00 Notice - A notice in writing served personally upon the person to be
notified, or left at his usual place of business during business hours, or
mailed by registered mail to his residence. 27 (08/01/94)
928.00 On the Exchange, or on Change - In the Exchange Halls or through
Exchange facilities including an approved automated order entry facility during
trading hours on business days. 28 (08/01/94)
929.00 Outside Points - Points outside of the Chicago District. 29 (08/01/94)
930.00 President - The Chief Executive Officer of the Association. 30
(08/01/94)
931.00 Privilege of the Floor - The privilege of coming on the floor of the
Exchange. 31 (08/01/94)
932.00 Railroad Receipts - Bills of lading, or railroad receipts therefor, or
switching receipts. 32 (08/01/94)
933.00 Regulations - The Regulations of the Association adopted by the Board
or a Committee designated pursuant to Rule 132.00 to promulgate regulations. 33
(08/01/94)
934.00 Rules - The Rules of the Association adopted by the membership.
In all such expressions as "under the Rules," "according to the Rules:" or
"subject to the Rules," the word "Rules" shall mean the Charter, Rules, and
Regulations of the Association and all amendments thereto. 34 (08/01/94)
935.00 Secretary - The Secretary of the Association. 35 (08/01/94)
936.00 Security or Securities - Stocks, Bonds, Notes, Certificates of Deposit
or Participation, Trust Receipts, Rights, Warrants, and other similar
instruments. 36 (08/01/94)
937.00 Singular - Shall import the plural, and vice versa, when the sense
requires. 37 (08/01/94)
939.00 Spot Grain - Grain located in the Chicago District subject to sale for
immediate delivery. 39 (08/01/94)
940.00 Stop Order or Stop Loss Order - An order to buy or sell when the
market reaches a specified point. A stop order to buy becomes a market order
when the commodity or security sells (or is bid) at or above the stop price. A
stop order to sell becomes a market order when the commodity or security sells
(or is offered) at or below the stop price. 40 (08/01/94)
941.00 Board Order or Market If Touched Order - An order to buy or sell when
the market reaches a specified point. A board order, or a market if touched
order to buy becomes a market order when the commodity or security sells (or is
offered) at or below the order price. A board order or a market if touched order
to sell becomes a market order when the commodity or security sells (or is bid)
at or above the order price. 40A (08/01/94)
942.00 Trade - Transaction on change executed in the Exchange Halls or
through Exchange facilities including an approved automated order entry
facility. 41 (08/01/94)
Definitions
-----------
943.00 Transaction on Change - Any purchase or sale of any commodity or
security in the Exchange Halls or through Exchange facilities including an
approved automated order entry facility system during trading hours on business
days. 42 (08/01/94)
944.00 Treasurer - The Treasurer of the Association. 43 (08/01/94)
945.00 Chairman of the Board - The presiding officer of the Board of
Directors. 29A (08/01/94)
946.00 Financial Instrument Contract - Financial Instrument Contract means
any contract in respect to Mortgage Backed Certificates Guaranteed by the
Government National Mortgage Association, obligation of the United States or
other public agencies, private commercial paper and any other instrument
evidencing or securing a contribution, loan or borrowing of funds which may be
designated as a Financial Instrument Contract by the Board of Directors.
(08/01/94)
948.00 Volatility Quote - An alternative means of quoting options, or
combinations involving options, by bidding or offering the implied volatility.
Any transactions quoted in volatility terms will be translated into price terms
for clearing purposes by means of a standard options model maintained and
disseminated by the Exchange. (08/01/94)
949.01 e-cbot - e-cbot is a screen-based electronic trading system for
trading futures and options on futures contracts and such other products as
determined by the Exchange pursuant to Chapter 9B. (11/01/03)
================================================================================
*Chapter 9B
e-cbot(R)
================================================================================
[Enlarge/Download Table]
Ch9B e-cbot(R) ............................................................................ 902
9B.01 Applicability of Rules ...................................................... 902
98.02 Hours ....................................................................... 902
9B.03 Products .................................................................... 902
9B.04 Direct e-cbot Connection .................................................... 902
98.05 ITMs and Responsible Persons ................................................ 903
9B.06 e-cbot User IDs ............................................................. 903
98.07 e-cbot Access from the Trading Floor ........................................ 903
9B.08 Clearing Member Authorization ............................................... 903
9B.09 e-cbot Opening .............................................................. 904
9B.10 e-cbot Orders ............................................................... 904
9B.11 Order Entry ................................................................. 905
98.12 Misuse of e-cbot ............................................................ 905
9B.13 Trading Against Customer Orders and Crossing Orders.......................... 905
9B.14 Good Faith Bids and Offers .................................................. 906
98.15 Priority of Execution ....................................................... 906
9B.16 Disciplinary Procedures ..................................................... 906
98.17 Termination of e-cbot Connection ............................................ 906
98.18 Records of Transactions Effected Through the e-cbot System .................. 907
9B.19 e-cbot Limitation of Liability .............................................. 907
9B.20 Disclosure Statement ........................................................ 907
9B.21 Error Trade Policy .......................................................... 907
================================================================================
Chapter 9B
e-cbot(R)
================================================================================
Ch9B e-cbot(R)
9B.01 Applicability of Rules- The rules and regulations contained in this
Chapter govern those Exchange contracts that are traded through the e-cbot
system. To the extent that the provisions in this Chapter conflict with rules
and regulations in other sections of this Rulebook, this Chapter supersedes such
rules and regulations and governs the manner in which contracts are traded
through the e-cbot system. Otherwise, contracts traded on the e-cbot system are
fully subject to applicable general rules and regulations of the Exchange unless
specifically and expressly excluded therefrom. (11/01/03)
9B.02 Hours- The Exchange shall determine the hours during which the e-cbot
system shall operate for the trading of each contract or product; however, any
agricultural contract or product shall be precluded from trading through the
e-cbot system during those hours which are now or in the future designated for
trading that contract or product by means of open outcry.
The following additional provisions shall apply with respect to agricultural
contracts and agricultural products:
- The Exchange shall determine e-cbot trading hours only if such hours are
between 6:OO p.m. and 6:OO a.m. (Chicago time).
- e-cbot trading hours outside of the 6:OO p.m. to 6:OO a.m. timeframe shall
be subject to approval by a majority of the votes cast by the Full Members
and Associate Members at an annual or special meeting called to vote on
such proposal. (11/01/03)
98.03 Products- The Exchange shall determine the contracts and/or products
which shall be listed through or listed on the e-cbot system, subject to the
following restriction: Each existing and prospective agricultural futures and
options contract shall be restricted from trading through or being listed on the
e-cbot system unless approved by affirmative vote of a majority of votes cast in
a vote of the membership pursuant to the Charter of the Board of Trade of the
City of Chicago, Inc., Exhibit A., Section 7. (11/01/03)
9B.04 Direct e-cbot Connection- CBOT clearing member firms are eligible to
obtain a direct e-cbot connection. Additionally, CBOT clearing member firms may
authorize the extension of a direct e-cbot connection to non-clearing members
and non-member customers or affiliates. Such authorizations shall be submitted
by the Clearing Member to the Exchange in writing and signed by an authorized
officer of the Clearing Member. The Clearing Member guarantees the financial
obligations of each person or entity for which it has authorized a direct
connection with respect to transactions executed under its Clearing Member
Mnemonic; however, for give-out transactions, such guarantee is effective only
until such time that the give-out transaction is accepted for clearing by
another Clearing Member.
An authorized officer of the non-member for which a Clearing Member authorizes a
direct connection must agree in writing that the non-member's use of the e-cbot
system is governed by CBOT rules and regulations and that the non-member shall
be subject to the jurisdiction of the CBOT.
With respect to each non-member for whom the Clearing Member has authorized a
direct connection, the Clearing Member must:
(a) Provide such non-member with information concerning the use of the e-cbot
system and the rules and regulations of the Exchange.
(b) Assist the Exchange in any investigation into potential violations of
Exchange rules and regulations or the Commodity Exchange Act. Such
assistance must be timely and includes, but is not limited to, requiring
the non-member to produce documents, to answer questions from the Exchange,
and/or to appear in connection with the investigation.
(c) Suspend or terminate the non-member's e-cbot access if the Exchange
determines that the actions of the non-member threaten the integrity or
liquidity of any contract, violate any Exchange rules or regulations or the
Commodity Exchange Act, or if the non-member fails to cooperate in an
investigation. If a Clearing Member has actual or constructive notice of a
violation of Exchange rules or regulations in connection with the use of
the e-cbot system by a
Ch9B e-cbot(R)
non-member for which it has authorized a direct connection and the Clearing
Member fails to take appropriate action, the Clearing Member may be found
to have committed acts detrimental to the interest or welfare of the
Exchange. (11/01/03)
9B.05 ITMs and Responsible Persons- Each person or entity that has a direct
connection to e-cbot will request one or more Individual Trade Mnemonics (ITMs)
as needed to accommodate the nature and volume of the person's or entity's
business. A Responsible Person and one or more Backup Responsible Person(s) must
be registered with the Exchange for each ITM. The Exchange, at its sole
discretion, may limit the number of, or require additional ITMs and Responsible
Persons.
A Responsible Person (or in his absence, the Backup Responsible Person) must be
reachable via telephone by the Exchange at all times that any of the ITMs
assigned to him are in use. A Responsible Person (or in his absence, his Backup
Responsible Person) must:
(a) have the authority, at the Exchange's request, to modify or withdraw any
order submitted under an ITM assigned to him; and
(b) immediately identify, at the Exchange's request, the source of any order
submitted under an ITM assigned to him. (11/01/03)
9B.06 e-cbot User IDs- Each order entered through an ITM must contain an e-cbot
User ID that identifies the participant who entered the order. Each member or
non-member with a direct connection must utilize a client application that
automatically populates the e-cbot User ID for every order based on the client
application login.
Members, non-member employees and proprietary traders of a member or member
firm, and non-member employees and proprietary traders of each non-member with a
direct connection must have a unique, Exchange assigned, registered e-cbot User
ID. Such participants shall be referred to as Registered Users. The e-cbot User
ID for all other users need not be registered. Each member or non-member entity
with a direct connection shall ensure the accuracy of a Registered User's
registration information at all times.
A Registered User shall be subject to the rules of the Exchange, including, but
not limited to, the rules of this Chapter and rules relating to order handling,
trade practices and disciplinary proceedings. It shall be the duty of the entity
or individual who employs the Registered User to supervise such user's
compliance with Exchange rules and regulations, and any violation thereof by
such Registered User may be considered a violation by the employer. (11/01/03)
9B.07 e-cbot Access from the Trading Floor- Individual members on the trading
floor may directly enter e-cbot orders in such products as their membership
category permits. Non-member employees of a member firm who do not maintain an
associated person registration may enter e-cbot orders on a non-discretionary
basis from terminals located within the member firm's booth space. A non-member
employee of an individual member may enter non-discretionary e-cbot orders from
within a pit solely for the account of his employing member. (11/01/03)
9B.08 Clearing Member Authorization-
(a) Primary Clearing Member - Each non-clearing member or non-member with a
direct connection who enters transactions through the e-cbot system must
obtain authorization from a Primary Clearing Member. The Primary Clearing
Member shall guarantee and assume financial responsibility for all such
transactions traded through e-cbot under its Clearing Member Mnemonic. The
Primary Clearing Member shall be liable upon all such trades made by the
non-clearing member or non-member and shall be a party to all disputes
arising from such trades.
(b) Other Clearing Members - A non-clearing member or non-member with a direct
connection may be authorized to enter transactions through the e-cbot
system by one or more clearing members, in addition to its Primary Clearing
Member, in accordance with the requirements of Rule 333.00, provided that
written permission has been granted by its Primary Clearing Member. Such
other clearing member shall be liable upon all e-cbot trades made by the
non-clearing member or non-member under its Clearing Member Mnemonic and
shall be a party to all disputes arising from such trades.
(c) Revocation of Clearing Authorization - A clearing member that provides
e-cbot trading authorization to a non-clearing member or non-member may
revoke such authorization
Ch9B e-cbot(R)
without prior notice. Written notice of the revocation of clearing
authorization shall be immediately provided to the Exchange, which shall
thereby terminate such connection and cancel all orders of the non-clearing
member or nonmember in the e-cbot system under the revoking Clearing
Member's Mnemonic. If the revocation is by the Primary Clearing Member, all
e-cbot connections of the non-clearing member or non-member shall be
terminaled until another clearing member has designated itself as the
Primary Clearing Member. Unless otherwise specified by the Primary Clearing
Member, a member whose connection to e-cbot has been terminated shall not
automatically be denied access to the Floor of the Exchange during Regular
Trading Hours. (11/01/03)
9B.09 e-cbot Opening -
(a) During the Pre-Open period designated by the Exchange, traders may enter
only Market on Open orders, Limit orders and GTC Limit orders for both
outrights and strategies. Order modifiers are not permitted on orders
entered during the Pre-Open.
(b) Immediately upon the Market Open, e-cbot will apply an uncrossing algorithm
to calculate the price at which the maximum volume will be traded. All
orders executed pursuant to the uncrossing algorithm will be executed at a
price equal to or better than that at which they were entered. Market on
Open orders are processed immediately after the uncrossing. The Exchange
does not guarantee the execution of any order at the opening price.
(1l/0l/03)
9B.10 e-cbot Orders-
(a) An e-cbot order may contain one of the following designations:
(1) Market orders - Market orders are executed at the best price or prices
available in the order book at the time the order is received until the
order has been filled in it entirety. However, a market order will not
trade outside of the dynamic price limits and any residual volume from an
incomplete market order is canceled. Market orders are rejected if the
market is not open.
(2) Market on Open (MOO) orders - Market on open orders can only be
submitted for futures products, including strategies. Such orders are
accepted only during Pre-Open and are intended for execution at the opening
market price. MOO orders will be executed by the Trading Host at the
opening price calculated after the uncrossing of limit orders in the market
when the market opens. If an opening price cannot be calculated for the
market when it opens, all MOO orders will be automatically canceled. Any
residual MOO orders that are not matched on the opening will be converted
automatically to limit orders at the opening price.
(3) Limit orders - Limit orders are orders to buy or sell a stated quantity
at a specified price, or at a better price, if obtainable. Unless otherwise
specified, any residual volume from an incomplete limit order is retained
in the central order book until the end of the day unless it is withdrawn
or executed.
(4) Good-Till-Canceled Limit ("GTC") orders - GTC orders are eligible for
execution for the current and all subsequent e-cbot trade sessions until
executed, canceled or the expiry month expires. GTC orders can be given an
expiry date and are valid until the end of trading on that date.
(b) The following order modifiers are permitted:
(1) Minimum Volume - Minimum Volume orders are executed only if there is at
least the designated minimum volume available at the stated price or
better. If the designated minimum volume cannot be traded, the order is
canceled. Any residual volume from a partially executed minimum volume
order is retained in the central order book. A Minimum Volume modifier may
be used with limit orders, GTC limit orders and market orders.
(2) Complete Volume - Complete Volume orders are executed only if there is
sufficient volume available, at the stated price or better, to execute the
order in its entirety. If the order cannot be executed in its entirety, the
entire order is canceled. A Complete Volume modifier may be used with
limit orders and market orders.
(3) Immediate & Cancel - Immediate and Cancel orders are executed against
any existing orders at the stated price or better, up to the volume
designated on the order. Any residual volume on the order is canceled. An
Immediate and Cancel modifier may be used with limit
Ch9B e-cbot(R)
orders.
(c) Strategy Orders and Contingent Multiple Orders
(1) Strategy Orders - e-cbot allows for the creation of recognized
strategies, including delta neutral strategies, and for the submission of
orders in such strategies.
(2) Contingent Multiple Orders - A Contingent Multiple Order is an order
that contains between two and eight component outright orders in up to two
products. The permitted product pairs are pre-defined by the Exchange.
Trading of any component order is contingent on all component orders being
fully executed. Only one futures component is permitted if any component
is an option. Each component order can be a limit order or a market order.
(11/01/03)
9B.11 Order Entry-
(a) A member or Registered User who is registered as a floor broker or
associated person, or in a comparable capacity under applicable law, may enter
discretionary or non-discretionary orders on behalf of any account of a clearing
member with the prior approval of the clearing member responsible to clear such
orders.
(b) A member or Registered User who is not registered as a floor broker or
associated person, or in a comparable capacity under applicable law, may enter
non-discretionary orders on behalf of customers. Such member or Registered User
may enter discretionary or non-discretionary orders for the account of his
employer or for his own account provided he does not enter or handle customer
orders.
(c) It shall be the duty of each member or Registered User to: (1) submit orders
through the e-cbot system under his registered e-cbot User ID and (2) input for
each order the correct CTI code and appropriate account designation. A suspense
account may be used at the time of order entry provided that a contemporaneous
written record of the order, with the correct account designation, is made,
time-stamped and maintained in accordance with Regulation 9B.18, and provided
that the correct account designation is entered into the clearing system prior
to the end of the trading day.
(d) With respect to orders received by a member or Registered User which are
immediately entered into the e-cbot system, no separate record need be made.
However, if a member or Registeresd User receives an order that is not
immediately entered into the e-cbot system, a record of the order including the
order instructions, account designation, date, time of receipt and any other
information that is required by the Exchange must be made. (11/01/03)
9B.12 Misuse of e-cbot Misuse of the e-cbot system is strictly prohibited. It
shall be deemed an act detrimental to the interest and welfare of the Exchange
to either willfully or negligently engage in unauthorized access to e-cbot, to
assist any individual in obtaining unauthorized access to e-cbot, to trade on
the e-cbot system without the authorization of a clearing member, to alter the
equipment associated with the system, to interfere with the operation of the
system, to use or configure a component of the system in a manner which does not
conform to the LIFFE Core Network Acceptable Use Policy set forth in Appendix
9B-1,to intercept or interfere with information provided on or through the
system, or in any way to use the system in a manner contrary to the rules and
regulations of the Exchange. (11/01/03)
9B.13 Trading Against Customer Orders and Crossing Orders -
(a) Trading Against Customer Orders - During an e-cbot trading session, a
member or Registered User shall not knowingly cause to be entered or
knowingly enter into a transaction in which he takes the opposite side of
an order entered on behalf of a customer, for the member's or Registered
User's own account or his employer's proprietary account unless the
customer order has been entered immediately upon receipt and has first been
exposed on the e-cbot platform for a minimum 5 seconds for outright futures
contracts and a minimum of 15 seconds for strategies and options contracts.
Such transactions that are unknowingly consummated shall not be considered
to have violated this regulation.
(b) Crossing Orders - Independently initiated orders on opposite sides of the
market for different beneficial account owners that are immediately
executable against each other may be entered without delay provided that
the orders did not involve pre-execution communications.
Opposite orders for different beneficial accounts that are simultaneously
placed by a party with
Ch9B e-cbot(R)
discretion over both accounts may be entered provided that one order is
exposed on the e-cbot platform for a minimum of 5 seconds for outright
futures contracts and a minimum of 15 seconds for strategies and options
contracts.
An order allowing for price and/or time discretion, if not entered
immediately upon receipt, may be knowingly entered opposite a second order
entered by the same firm only if the second order has been entered
immediately upon receipt and has been exposed on the e-cbot platform for a
minimum of 5 seconds for outright futures contracts and a minimum of 15
seconds for strategies and options contracts.
(c) Pre-Execution Communications Prohibited
(i) Pre-execution communications are communications between two market
participants for the purpose of discerning interest in the execution
of a transaction prior to the entry of an order on the e-cbot
platform.
(ii) Pre-execution communications and transactions arising from such
communications are prohibited in all products during all hours except
as otherwise provided by Regulation 331.05 "Block Trade
Transactions." (09/01/04)
9B.14 Good Faith Bids and Offers - A member or Registered User shall not
knowingly enter, or cause to be entered, bids or offers into the e-cbot system
other than in good faith for the purpose of executing bona fide transactions.
(11/01/03)
9B.15 Priority of Execution - Orders received by a member or Registered User
shall be entered into the e-cbot system in the sequence received. Orders that
cannot be immediately entered into e-cbot must be entered when the orders become
executable in the sequence in which the orders were received. (11/01/03)
9B.16 Disciplinary Procedures - All access denials, suspensions, expulsions and
other restrictions imposed upon a member or Registered User by the Exchange
pursuant to disciplinary procedures contained in Chapters 2 and 5 of the
Exchange's rules shall restrict with equal force and effect access to, and use
of, the e-cbot system. (11/01/03)
9B.17 Termination of e-cbot Connection - The Exchange, at its sole discretion,
shall have the right to summarily terminate the connection of any member or
non-member, or the access of any ITM. Additionally, the Exchange, at its sole
discretion, shall have the right to direct a member or non-
Ch9B e-cbot(R)
member with a direct connection to immediately terminate access to the e-cbot
system of any user. (11/01/03)
98.18 Records of Transactions Effected Through the e-cbot System -All written
orders and any other original records pertaining to orders entered through the
e-cbot system must be retained for five years. For orders entered into the
e-cbot system immediately upon receipt, the data contained in the e-cbot system
shall be deemed the original records of the transaction. (11/01/03)
9B.19 e-cbot Limitation of Liability - This Regulation sets forth the disclaimer
of warranties and the limitation of liability that shall apply to any
provision, use, performance, maintenance or malfunction of the LIFFE CONNECT(R)
system for trading on e-cbot:
(1) Disclaimer of Warranties. The CBOT provides any licensed products, access
to the interface, the equipment and the trading system "AS IS". Except as
specifically provided in any Interface Sublicense and Connection Agreement,
the CBOT makes no, and hereby disclaims all, warranties, conditions,
undertakings, terms or representations, expressed or implied by statute,
common law or otherwise, in relation to any licensed products, equipment or
trading system or any part or parts of the same. The CBOT specifically
disclaims all implied warranties of merchantability, fitness for a
particular purpose and non-infringement. The CBOT further disclaims all
warranties, implied or otherwise, relating to any third party materials.
(2) Liability
(i) General Limitation. Excluding a finding of gross negligence or
willful misconduct, the CBOT, the agents, subcontractors and
licensors of the CBOT, and the officers, directors, and employees of
the CBOT, and its agents, subcontractors and licensors, shall have no
liability, to any licensee or any other person, under any Interface
Sublicense and Connection Agreement or in relation to the use,
performance, maintenance, or malfunction of the equipment, any
licensed products, or the trading system or any components thereof,
for any losses, or other damage or injury, direct or indirect
(including, but not limited to, consequential, incidental, and
special damages and loss of profits, goodwill or contracts), which
arising from negligence or breach of contract or otherwise, and
whether or not such person (or any designee thereof) shall have been
advised of or otherwise might have anticipated the possibility of
such damages.
(ii) Aggregate Liability. In the event the limitation under paragraph
(b)(2)(i) above is found by a court of competent jurisdiction to be
invalid, unlawful, or unenforceable, the entire aggregate liability
of the CBOT, its agents, subcontractors and licensors, and the
officers, directors, and employees of the CBOT and its agents,
subcontractors and licensors under or in connection with any
Interface Sublicense and Connection Agreement shall not exceed
$10,000.
Notwithstanding any of the foregoing provisions, this Regulation shall in no way
limit the applicability of any provision of the Commodity Exchange Act, as
amended, and Regulations thereunder. (11/01/03)
9B.20 Disclosure Statement - No member or clearing member shall accept an order
from, or on behalf of, a customer for entry into e-cbot, unless such customer is
first provided with the Uniform Electronic Trading and Order Routing System
Disclosure Statement developed by the National Futures Association. (11/01/03)
9B.21 Error Trade Policy - In order to ensure fair and orderly market
conditions, the Exchange, or designated staff, may cancel a transaction in
accordance with the Error Trade Policy detailed in Appendix 9B-2. (11/01/03)
================================================================================
Chapter 10
Grains
================================================================================
[Download Table]
Ch10 Trading Conditions................................................
1004.00 Unit of Trading............................................
1005.01A Months Traded In...........................................
1006.00 Price Basis................................................
1006.01 Price Basis................................................
1007.00 Hours for Trading..........................................
1007.01 The Opening and Closing of Oats Trading....................
1007.02 Modified Closing Call......................................
1008.01 Trading Limits.............................................
1008.01A Trading Limits.............................................
1008.02 Trading Limit Corrections..................................
1009.01 Last Day of Trading of Delivery Month......................
1009.02 Last Day of Trading of Delivery
Month-Corn and Soybeans....................................
1010.01 Margins on Futures.........................................
1012.01 Position Limits............................................
Ch10 Delivery Procedures...............................................
1035.00 Scope of Chapter...........................................
1036.00 Grade Differentials........................................
1036.00A Test Weight Designation for Oats...........................
1036.00C Soybean Differentials......................................
1036.01 Location Differentials.....................................
1038.00 Grades.....................................................
1038.01 United States Origin Only..................................
1038.02 Deoxynivalenol (Vomitoxin) Limit in Wheat..................
1041.00 Delivery Points............................................
1041.01 Burns Harbor, Indiana Switching District...................
1042.00 Delivery of Commodities by Warehouse Receipts..............
1042.01 Registration of Grain Warehouse Receipts...................
1043.01 Delivery of Corn and Soybeans by Shipping Certificates.....
1043.02 Registration of Corn and Soybean Shipping Certificates.....
1044.01 Certificate Format.........................................
1045.01 Lost or Destroyed Negotiable Warehouse Receipts............
1046.00 Date of Delivery...........................................
1046.00A Location for Buying or Selling Delivery Instruments........
1047.01 Delivery Notices...........................................
1048.01 Method of Delivery.........................................
1049.00 Time of Delivery, Payment, Form of Delivery Notice.........
1049.01 Time of Issuance of Delivery Notice........................
1049.01B Interpretation: Sellers' Obligation for Storage Charges....
1049.02 Buyers' Report of Eligibility to Receive Delivery..........
1049.03 Sellers' Invoices to Buyers................................
1049.04 Transfer Obligations.......................................
1050.00 Duties of Members..........................................
1050.01 Failure to Deliver.........................................
1051.01 Office Deliveries Prohibited...............................
1052.00 Delivery of Grain in Cars (Chicago only)...................
1052.00A Track Deliveries...........................................
1052.00B Track Deliveries...........................................
1052.00C Track Deliveries...........................................
1054.00 Failure to Accept Delivery.................................
1001
1054.00A Failure to Accept Delivery.................................
1054.01 Failure to Accept Delivery.................................
1056.01 Storage Rates for Wheat and Oats and Premium Charges for
Corn and Soybeans..........................................
Ch10 Regularity of Warehouses..........................................
1081.01 Regularity of Warehouses and Issuers of Shipping
Certificates...............................................
1081.01A Inspection.................................................
1081.01B Billing When Grain is Loaded Out...........................
1081.01C Car of Specified Capacity..................................
1082.00 Insurance..................................................
1082.00A Insurance..................................................
1083.00 Variation Allowed..........................................
1083.01 Excess or Deficiency in Quantity...........................
1084.01 Revocation, Expiration or Withdrawal of Regularity.........
1085.01 Application for Declaration of Regularity..................
1086.01 Federal Warehouses.........................................
================================================================================
Chapter 10
Grains
================================================================================
Ch10 Trading Conditions
1004.00 Unit of Trading - On future delivery contracts calling for the
delivery of commodities, delivery shall be made in the following quantities or
multiples thereof:
Wheat, corn, oats and soybeans-5,000 bushels
Other commodities - Units of trading established by these Rules and Regulations
Each delivery of grain may be made up of various lots of grain of the various
authorized grades situated in or for shipment from various eligible warehouses
or shipping stations, provided that no lot delivered shall contain less than
5,000 bushels of any one grade in any one warehouse or shipping station. 290
(03/01/00)
1005.01A Months Traded In - Trading in wheat, corn and oats is regularly
conducted in five different months - March, May, July, September and December
but shall be permitted in the current delivery month plus any succeeding months.
The number of months to be open at one time shall be at the discretion of the
Exchange.
Trading in soybeans is regularly conducted in seven different months - January,
March, May, July, August, September and November but shall be permitted in the
current delivery month plus any succeeding months. The number of months to be
open at one time shall be at the discretion of the Exchange.
Trading in Crude Soybean Oil and Soybean Meal is regularly conducted in eight
different months - January, March, May, July, August, September, October and
December but shall be permitted in the current delivery month plus any
succeeding months. The number of months to be open at any one time shall be at
the discretion of the Exchange. 30R (04/01/02)
1006.00 Price Basis - Future delivery contracts on grain shall be in
multiples as set by the Board by Regulation. (09/01/94)
1006.01 Price Basis -
A. Soybeans. The minimum fluctuation shall be 1/4 cent, including spreads.
B. Corn. The minimum fluctuation shall be 1/4 cent, including spreads.
C. Wheat. The minimum fluctuation shall be 1/4 cent, including spreads.
D. Oats. The minimum fluctuation shall be 1/4 cent, including spreads.
Settlements are to be calculated to the nearest 1/4 cent. 1972 (09/01/94)
1007.00 Hours for Trading - Hours for trading for future delivery in grains,
crude soybean oil and soybean meal shall be from 9:30 a.m. to 1:15 p.m. except
that on the last day of trading in an expiring future the hours with respect to
such futures shall be from 9:30 a.m. to 12 o'clock noon, subject to the
provisions of the next succeeding paragraph of this Rule 1007.00.
On the last day of trading in an expiring future, a bell shall be rung at 12
o'clock noon designating the beginning of the close of the expiring future.
Trading shall be permitted thereafter for a period not to exceed one minute and
quotations made during this time shall constitute the close. The above time
constraints do not apply to options contracts which close by public call.
The hours may be shortened or the Exchange may be closed on any day or days
pursuant to
Ch10 Trading Conditions
-----------------------
Regulation adopted by the Board.
Hours for trading for future delivery in other commodities shall be fixed by
Regulation adopted by the Board.
No such trading shall take place except in the Exchange Hall or on Exchange
facilities including an approved automated order entry facility during such
hours as the Board shall designate. The Association shall conform to Chicago
time. 252 (04/01/97)
1007.01 The Opening and Closing of Oats Trading - Trading for future
delivery in Oats shall be opened and closed with a public call made month by
month, conducted by such persons as the Regulatory Compliance Committee shall
direct. 1975 (08/01/96)
1007.02 Modified Closing Call - Immediately following the prescribed closing
procedure for all futures contracts traded by open outcry, there shall be a two
(2) minute trading period (the "modified closing call"). (i) All trades which
may occur during regularly prescribed trading hours may occur during the call at
prices within the closing range; (ii) no new customer orders may be entered into
the call unless such orders are for contracts that also are traded
electronically during the call; (iii) cancellations may be entered into the
call; (iv) stop, limit and other resting orders elected by prices during the
close may be executed during the call; (v) individual members may execute or
enter orders for their own accounts in the call; and (vi) member firms, and
those entities which are wholly-owned by member firms, that wholly-own member
firms, or that are wholly-owned by the same parent company(ies) as member firms,
trading for such firms' or entities' own proprietary accounts may initiate
trades or enter orders into the call.
Unless otherwise specified by Exchange regulation or policy, the daily
settlement price for each contract shall be determined by the relevant Pit
Committee at the close of Regular Trading Hours. The settlement price shall be
determined by the Pit Committee based upon various factors including, but not
limited to (a) the prices that traded during the close; (b) the volume traded at
particular prices within the closing range; (c) bids and offers made during the
close; (d) the prices at which spreads traded during the close; and (e) the
settlement price(s) of related contracts. If the proposed settlement price
differs from the midpoint of the closing range for a particular contract, the
Pit Committee will document the basis for the deviation from the midpoint. Such
documentation must be signed by two members of the Pit Committee. In all cases,
however, the Exchange, in its capacity as a Derivatives Clearing Organization,
reserves the right to make the final decision on settlement prices. (03/01/04)
Ch10 Trading Conditions
-----------------------
1008.01 Trading Limits -
A. Limits. Trading is prohibited during any Trading Day (as defined in
Regulation 906.04) in futures contracts of commodities traded on this
Exchange at a price or yield higher or lower than either:
1. The settlement price or yield for such commodity on the previous
business day, or
2. The average of the opening range or the first trade during the first
day of trading in a futures contract, or
3. The price or yield established by the Exchange in an inactive future,
plus or minus the following sums with respect to such commodities:
[Download Table]
--------------------------------------------------------------------------------
Corn $.20 per bushel - $1,000
--------------------------------------------------------------------------------
mini-sized Corn $.20 per bushel - $200
--------------------------------------------------------------------------------
Oats $.20 per bushel - $1,000
--------------------------------------------------------------------------------
Rough Rice $.50 per hundredweight - $1,000
--------------------------------------------------------------------------------
Soybeans $.50 per bushel - $2,500
--------------------------------------------------------------------------------
mini-sized Soybeans $.50 per bushel - $500
--------------------------------------------------------------------------------
Soybean Meal $20 per unit of trading - $2,000
--------------------------------------------------------------------------------
Soybean Oil (Crude) $.02 per unit of trading - $1,200
--------------------------------------------------------------------------------
Wheat $.30 per bushel - $1,500
--------------------------------------------------------------------------------
mini-sized Wheat $.30 per bushel - $300
--------------------------------------------------------------------------------
B. Current Month Exclusions. Limits shall not apply to trading in current
month contracts on and after the second business day prior to the first day
of the current month.
Notwithstanding the foregoing, limits shall remain in effect for purposes
of trading agricultural contracts on e-cbot.
The provisions of Paragraph B do not apply to CBOT(R) Dow Jones/SM/ Index
futures, which will be governed solely by Paragraph D.
C. Limit Bid; Limit Sellers Definitions. The terms "close on the limit bid"
or "close on the limit sellers" are defined as follows:
Limit Bid. Restricted to a situation in which the market closes at an
upward price limit on an unfilled bid. When a close is reported as a range
of different prices, the last price quoted must be limit bid.
Limit Sellers. Restricted to a situation in which the market closes at a
downward price limit on an unfilled offer. When a close is reported as a
range of different prices, the last price quoted must be a limit ask.
D. Daily Price Limits and Trading Halts for CBOT Dow Jones Industrial and CBOT
mini-sized Dow/SM/ Index Futures. Daily price limits and trading halts of
the CBOT Dow Jones Industrial Average/SM/ Index and CBOT mini-sized Dow/SM/
Index Futures contracts shall be coordinated with trading halts of the
underlying stocks listed for trading in the primary securities market.
Ch10 Trading Conditions
-----------------------
For purposes of this regulation, the primary futures contract shall be
defined as the futures contract trading in the lead month configuration in
the pit, or for those contracts only listed electronically, on the
electronic trading system (ETS), and the Executive Committee or its
designee shall have the responsibility of determining whether the primary
futures contract is limit bid or offered.
For the first day of trading in a newly listed contract, there will be an
implied previous business day's settlement price, created by the Exchange
for the sole purpose of establishing price limits. The implied settlement
price will be created by extrapolating the annualized percentage carry
between the two contract months immediately prior to the newly listed
contract.
Price Limits: There shall be three successive price limits for each index,
Level 1, Level 2, and Level 3, below the settlement price of the preceding
regular trading session. Levels 1, 2, and 3 shall be calculated at the
beginning of each calendar quarter, using the average daily closing value
of each index for the calendar month prior to the beginning of the quarter.
Level 1 shall be 10% of such average closing value calculation; Level 2
shall be 20% of such average closing value calculation; Level 3 shall be
30% of such average closing value calculation. For the Dow Jones Industrial
Average/sm/, each Level shall be rounded to the nearest fifty points. The
values of Levels 1, 2 and 3 shall remain in effect until the next
calculation.
Price Limits and Trading Halts During Regular Trading Hours: The following
price limits and trading halts shall apply to open outcry and electronic
trading during the Exchange's regular trading hours. For purposes of this
Regulation, "regular trading hours" are defined for all CBOT Dow Jones
stock index contracts to begin with the time of the open for open outcry
trading in Dow Jones Industrial Average contracts, and to end with the
later of the time of the close of open outcry trading, or the conclusion of
any day time electronic trading session that is part of the same trading
day.
(a) Level 1:
Except as provided below, the Level 1 price limit shall be in effect until
a trading halt has been declared in the primary securities market, trading
in the primary securities market has resumed, and fifty percent (50%) of
the stocks underlying the DJIA/SM/ Index (selected according to
capitalization weights) have reopened. The Level 2 price limit shall apply
for all CBOT Dow Jones stock index contracts to such reopening.
Until 1:00 p.m. Chicago time (2:00 p.m. Eastern time), the trading halt
shall be a one-hour trading halt. Between 1:00 p.m. and 1:30 p.m. Chicago
time (2:00 p.m. and 2:30 p.m. Eastern time), the trading halt shall be a
one-half hour trading halt.
The Level 1 price limit shall not apply after 1:30 p.m. Chicago time (2:30
p.m. Eastern time). If the futures contract is limit offered at the Level
1 price limit and a trading halt has not been declared in the primary
securities market, the Level 1 price limit shall be lifted and the Level 2
price limit shall apply thereafter.
(b) Level 2:
Except as provided below, the Level 2 price limit shall be in effect until
a trading halt has been declared in the primary securities market, trading
in the primary securities market has resumed, and fifty percent (50%) of
the stocks underlying the DJIASM Index (selected according to
capitalization weights) have reopened. The Level 3 price limit shall apply
for all CBOT Dow Jones stock index contracts to such reopening.
Until 12:00 noon Chicago time (1:00 p.m. Eastern time), the trading halt
shall be a two-hour trading halt. Between 12:00 noon and 1:00 p.m. Chicago
time (1:00 p.m. and 2:00 p.m. Eastern time), the trading halt shall be a
one-hour trading halt. After 1:00 p.m. Chicago time (2:00 p.m. Eastern
time), the trading halt declared in the primary securities market will
remain in place for the rest of the primary securities market trading day.
(c) Level 3:
The Level 3 price limit shall be in effect during all regular trading
hours.
Trading Halts: If the primary futures contract for the DJIA/sm/ is limit
offered at either the Level 1 or Level 2 price limit as described above and
there is a trading halt declared in the primary securities market, trading
shall be halted for all Dow Jones/sm/ Index futures contracts that have
reached their respective price limits. In the event that trading in the
primary securities market resumes after a trading halt, trading in each of
the Dow Jones/SM/ Index futures contracts (that have halted) shall resume
only after fifty percent (50%) of the stocks underlying the DJIA/SM/ Index
(selected according to capitalization weights) have reopened. The next
applicable price limit enumerated
Ch10 Trading Conditions
-----------------------
above shall apply to the reopening indexes and to those indexes that had
not reached their previous respective price limits during the period of the
halt.
If after 1:00 p.m. Chicago time (2:00 p.m. Eastern time), the primary
futures contract for the DJIAsm is limit offered at the Level 2 price
limit, or if the primary futures contract for the DJIAsm is limit offered
at the Level 3 price limit at any time during regular trading hours, and
the primary securities market declares a trading halt for the rest of its
trading day, the Exchange will also declare a trading halt for the rest of
its regular trading hours for all Dow Jonessm Index futures contracts that
have reached their respective price limits.
In the event that e-cbot trades occur through the price limits described
above, any such trades may be busted with the approval of the Exchange.
Price Limits During Non-Regular Trading Hours: When e-cbot is open for
trading during non-regular trading hours, there shall be a price limit of
10% of the average daily closing value of the index for the calendar month
prior to the beginning of the quarter. The value of this limit shall remain
in effect until the next calculation. This price limit shall apply above or
below the previous trading day's settlement price. (10/01/04)
1008.01A Trading Limits - The Crude Soybean Oil and Soybean Meal Committee
has been asked to interpret the following sentence:
"These provisions (trading limits) shall not apply to trading in the current
month on or after the first notice day thereof."
The question that arises is whether this means the first business day of the
delivery month or the first notice day of the contract which would be the last
business day of the previous month.
The Committee is of the opinion that it is the intention of the Regulations that
the meaning of the sentence includes the first notice day which is the last
business day of the month preceding the delivery month. 36R (09/01/94)
1008.02 Trading Limit Corrections - Daily trading limits determined pursuant
to Regulation 1008.01A (1) may be corrected as specified in this regulation only
in cases where the applicable settlement price is related to an erroneous
closing price quotation.
Such a correction may be made:
- only to the level which would have been specified had the error not occurred;
and
- only if the error is identified prior to the next day's opening of trading.
Such a correction may be adopted by approvals of the relevant Pit Committee
Chairman, or the Pit Committee Vice Chairman in the absence of the Pit Committee
Chairman, and the Chairman or Vice Chairman of the Regulatory Compliance
Committee within 15 minutes after the closing of the applicable futures contract
or within 30 minutes after the closing of the applicable futures option
contract. Thereafter, such a correction may be adopted by approval of the
Regulatory Compliance Committee.
No such correction may be made after the next day's opening of trading.
(09/01/94)
1009.01 Last Day of Trading of Delivery Month - Wheat and Oats - No trades
in wheat or oat futures deliverable in the current month shall be made after the
business day preceding the 15th calendar day of that month. Any contracts
remaining open after the last day of trading must be either:
(a) Settled by delivery no later than the seventh business day following
the last trading day.
(b) Liquidated by means for a bona fide exchange of futures for the actual
cash commodity or an over-the-counter transaction, no later than the
sixth business day following the last trading day. (01/01/03)
1009.02 Last Day of Trading of Delivery Month-Corn and Soybeans - No trades
in corn and
Ch10 Trading Conditions
-----------------------
soybean futures deliverable in the current month shall be made after the
business day preceding the 15th calendar day of that month. Any contracts
remaining open after the last day of trading must be either:
(a) Settled by delivery no later than the second business day following the
last trading day (tender on business day prior to delivery).
(b) Liquidated by means of a bona fide exchange of futures for the actual
cash commodity, or an over-the-counter transaction, no later than the
business day following the last trading day. 1832a (07/01/03)
1010.01 Margins on Futures - (See 431.03) (09/01/94)
1012.01 Position Limits - (See 425.01) (09/01/94)
Ch10 Delivery Procedures
1035.00 Scope of Chapter - Commodities bought or sold for future delivery under
Exchange contracts shall be delivered and accepted in accordance with the
provisions of this Chapter. Any Regulation or Ruling which is inconsistent with
the requirements or procedures set forth in this Chapter 10 is hereby superseded
by the Chapter to the extent of such inconsistency. 280 (09/01/94)
1036.00 Grade Differentials - Unless otherwise specified, contracts for the
sale of wheat, corn, soybeans and oats shall be deemed to call for "contract"
wheat, corn, soybeans and oats respectively. Upon such contracts, sellers, at
their option, may deliver all or part of the following grades at the following
price differentials, provided that lots of grain of any one grade must conform
to the minimum lot requirements of Rule 1004.00:
WHEAT GRADE DIFFERENTIALS
--------------------------------------------------------------------------------
At 3c Premium At Contract Price
--------------------------------------------------------------------------------
No. 1 Soft Red Winter No. 2 Soft Red Winter
--------------------------------------------------------------------------------
No. 1 Hard Red Winter No. 2 Hard Red Winter
--------------------------------------------------------------------------------
No. 1 Dark Northern Spring No. 2 Dark Northern Spring
--------------------------------------------------------------------------------
No. 1 Northern Spring No. 2 Northern Spring
--------------------------------------------------------------------------------
Wheat which contains moisture in excess of 13.5% is not deliverable.
CORN DIFFERENTIALS
--------------------------------------------------------------------------------
No. 1 Yellow Corn (maximum 15% moisture) at 1 1/2 cents per bushel over
contract price.
--------------------------------------------------------------------------------
No. 2 Yellow Corn (maximum 15% moisture) at contract price.
--------------------------------------------------------------------------------
No. 3 Yellow Corn (maximum 15% moisture) at 1 1/2 cents per bushel
under contract price.
--------------------------------------------------------------------------------
SOYBEAN GRADE DIFFERENTIALS
--------------------------------------------------------------------------------
U.S. No. 1 Yellow Soybeans (maximum 13% moisture) at 6 cents per bushel over
contract price.
--------------------------------------------------------------------------------
U.S. No. 2 Yellow Soybeans (maximum 14% moisture) at contract price.
--------------------------------------------------------------------------------
*U.S. No. 3 Yellow Soybeans (maximum 14% moisture) at 6 cents per bushel
under contract price.
--------------------------------------------------------------------------------
* All factors equal to U.S. No. 2 grade or better (including test weight;
splits; heat damage; brown, black and/or bicolored soybeans in yellow
soybeans) except foreign material (maximum 3%).
OATS GRADE DIFFERENTIALS
--------------------------------------------------------------------------------
No. 1 Extra Heavy Oats At 7 cents per bushel over contract
price.
--------------------------------------------------------------------------------
No. 2 Extra Heavy Oats At 4 cents per bushel over contract
price.
--------------------------------------------------------------------------------
No. 1 Heavy Oats At 3 cents per bushel over contract
price.
--------------------------------------------------------------------------------
No. 2 Heavy Oats At contract price.
--------------------------------------------------------------------------------
No. 1 Oats At contract price.
--------------------------------------------------------------------------------
Ch10 Delivery Procedures
------------------------
--------------------------------------------------------------------------------
No. 2 Oats (36 Ib. minimum test weight) At 3 cents per bushel under
contract price.
--------------------------------------------------------------------------------
No. 2 Oats (34 Ib. minimum test weight) At 6 cents per bushel under
contract price.
--------------------------------------------------------------------------------
Bright Oats shall carry no additional premium or discount. Oats with more than
14% moisture are not deliverable. (03/01/00)
1036.00A Test Weight Designation for Oats - The Rules Committee has
determined that, in the future, warehouse receipts of No. 2 Oats should carry
the test weight designation on the face of the receipt. In connection with
warehouse receipts currently outstanding which do not contain any such
designation, it was determined that unless the designation "36 Ib. minimum test
weight" appears on the face of the receipt, that the grade is considered to be
34 Ib. minimum test weight (6 cents per bushel under contract price). In
consideration of any holder of outstanding Oat receipts that for some reason are
"36 Ib. minimum test weight" and the receipt fails to reflect such, the holder
can contact the Registrar's Office for updating the receipt. (09/01/94)
1036.00C Soybean Differentials - The Board has determined that in accordance
with Rule 1036.00, No. 1 Yellow Soybeans which contain moisture in excess of 13%
but not more than 14% are deliverable at par. (09/01/94)
1036.01 Location Differentials - Unless otherwise specified, contracts for
the sale of wheat, corn, soybeans and oats shall be deemed to call for
"contract" wheat, corn, soybeans and oats respectively. Upon such contracts,
sellers, at their option, may deliver all or part at the following locations at
the following price differentials, subject to the differentials for grade
outlined in Rule 1036.00, provided that lots of grain of any one grade must
conform to the minimum lot requirements of Rule 1004.00:
WHEAT LOCATION DIFFERENTIALS
In accordance with the provisions of Rule 1041.00C, wheat in regular warehouses
located within the Chicago Switching District, the Burns Harbor, Indiana
Switching District or the Toledo, Ohio Switching District may be delivered in
satisfaction of Wheat futures contracts at contract price, subject to the
differentials for class and grade outlined above. Only No. 1 Soft Red Winter and
No. 2 Soft Red Winter Wheat in regular warehouses located within the St. Louis-
East St. Louis and Alton Switching districts may be delivered in satisfaction of
Wheat futures contracts at a premium of 10 cents per bushel over contract price,
subject to the differentials for class and grade outlined above.
CORN LOCATION DIFFERENTIALS
(See Regulation C1036.01-Location Differentials for Corn futures contracts.)
SOYBEAN LOCATION DIFFERENTIALS
Ch10 Delivery Procedures
------------------------
(See Regulation S1036.01-Location Differentials for Soybean futures contracts.)
OATS LOCATION DIFFERENTIALS
In accordance with the provisions of Rule 1041.00B, oats in regular warehouses
located within the Chicago Switching District, the Burns Harbor, Indiana
Switching District, the Minneapolis, Minnesota Switching District, or the St.
Paul, Minnesota Switching District may be delivered in satisfaction of Oats
futures contracts at contract price, subject to the differentials for class and
grade outlined above. (06/01/02)
1038.00 Grades - A contract for the sale of commodities for future delivery
shall be performed on the basis of the grades officially promulgated by the
Secretary of Agriculture as conforming to United States Standards at the time of
making the contract. If no such United States grades shall have been officially
promulgated, then such contract shall be performed on the basis of the grades
established by the Department of Agriculture of the State of Illinois, or the
standards established by the Rules and Regulations of the Association in force
at the time of making the contract. 293 (09/01/94)
1038.01 United States Origin Only - Effective September 1, 1992, a futures
contract for the sale of corn, soybeans or wheat shall be performed on the basis
of United States origin only upon written request by a taker of delivery at the
time loading orders are submitted. (09/01/94)
1038.02 Deoxynivalenol (Vomitoxin) Limit in Wheat - Effective
[September 1, 1999,] September 1, 2006, a taker of delivery of wheat shall have
-----------------
the option to request in writing load-out of wheat which contains no more than
[5 (five)] 4 (four) parts per million of deoxynivalenol (vomitoxin). At the
-------
taker's expense, a determination of the level of vomitoxin shall be made at the
point of load-out by the Federal Grain Inspection Service or by a third party
inspection service which is mutually agreeable to the maker and taker of
delivery. (01/01/05)
* Additions underlined; deletions bracketed for contract months September
2006 forward.
1041.00 Delivery Points -
A. Corn.
See Rule C1041.00-Delivery Points for Corn futures contracts.
B. Oats. Oats in regular warehouses located within the Chicago Switching
District, the Burns Harbor, Indiana Switching District or the Minneapolis,
Minnesota or St. Paul, Minnesota Switching Districts may be delivered in
satisfaction of oats futures contracts.
C. Wheat. Wheat in regular warehouses located within the Chicago Switching
District, the Burns Harbor, Indiana Switching District or the Toledo, Ohio
Switching District may be delivered in satisfaction of wheat futures
contracts. Only No. 1 Soft Red Winter and No. 2 Soft Red Winter Wheat in
regular warehouses located within the St. Louis-East St. Louis and Alton
Switching Districts may be delivered in satisfaction of Wheat futures.
D. Soybeans.
See Rule S1041.00-Delivery Points for Soybean futures contracts.
(06/01/02)
1041.01 Burns Harbor, Indiana Switching District - When used in these Rules
and Regulations, the Burns Harbor, Indiana Switching District will be that area
geographically defined by the boundaries of Burns Waterway Harbor at Burns
Harbor, Indiana which is owned and operated by the Indiana Port Commission.
(09/01/94)
1042.00 Delivery of Commodities by Warehouse Receipts - Except as otherwise
provided,
Ch10 Delivery Procedures
------------------------
delivery of commodities shall be made by the delivery of registered warehouse
receipts issued by warehousemen against stocks in warehouses which have been
declared regular by the Regulatory Compliance Committee. The Regulatory
Compliance Committee by Regulation may prescribe the conditions upon which
warehouses and warehousemen may become regular except that in the case of
federally licensed warehouses and warehousemen, the Regulatory Compliance
Committee may impose only such reasonable requirements as to location,
accessibility and suitability as may be imposed on other regular warehouses and
warehousemen.
The Regulatory Compliance Committee by Regulation may prescribe conditions not
inconsistent with the provisions of this Chapter upon which warehouse receipts
issued by regular warehouses shall be deliverable. 281 (02/01/99)
1042.01 Registration of Grain Warehouse Receipts - In order to be valid for
delivery against futures contracts, grain warehouse receipts must be registered
with the official Registrar and in accordance with the requirements issued by
the Registrar. Registration of Wheat and Oat warehouse receipts shall also be
subject to the following requirements:
1. Warehousemen who are regular for delivery may register warehouse receipts
at any time. If the warehouseman determines not to tender the warehouse
receipt by 4:00 p.m. on the day it is registered, the warehouseman shall
declare the receipt has been withdrawn but is to remain registered by
transmitting to the Registrar the warehouse receipt number and the name and
location of the warehouse facility. The holder of a registered receipt may
cancel its registration at any time. A receipt which has been canceled may
not be registered again.
2. Except in the case the delivery on the last delivery day of delivery month,
in which case the warehouse receipt must be registered before 1:00 p.m. on
the last delivery day of the delivery month, the grain warehouse receipt
must be registered before 4:00 p.m. on notice day, the business day prior
to the day of delivery. If notice day is the last business day of a week,
grain warehouse receipts must be registered before 3:00 p.m. on that day.
3. From his own records, the Registrar shall maintain a current record of the
number of receipts that are registered and shall be responsible for posting
this record on the Exchange Floor and the CBOT website. The record shall
not include any receipts that have been declared withdrawn.
4. When a warehouseman regains control of his own registered receipt, the
warehouseman shall by 4:00 p.m. of that business day either cancel the
registration of said receipt or declare that said receipt is withdrawn but
is to remain registered by transmitting to the Registrar the receipt number
and the name and location of the warehouse facility, except in the case
where a notice of intention to redeliver said receipt for the warehouseman
has been tendered to the Clearing Services Provider by 4:00 p.m. of the day
that the warehouseman regained control of said receipt. (01/01/04)
1043.01 Delivery of Corn and Soybeans by Shipping Certificates - Deliveries of
Corn and Soybeans shall be made by delivery of Shipping Certificates issued by
Shippers designated by the Exchange as regular to issue Shipping Certificates
for Corn and Soybeans using the electronic fields which the Exchange and the
Clearing Services Provider require to be completed. In order to effect a valid
delivery each Shipping certificate must be endorsed by the holder making the
delivery, and transfer as specified above constitutes endorsement. Such
endorsement shall constitute a warranty of the genuineness of the Certificate
and of good title thereto, but shall not constitute a guaranty, by an endorser,
of performance by the issuer of the Certificate. Such endorsement shall also
constitute a representation that all premium charges have been paid on the
commodity covered by the certificate, in accordance with Regulation C1056.01 or
Regulation S1056.01, as applicable. (01/01/04)
1043.02 Registration of Corn and Soybean Shipping Certificates - Corn and
Soybean Shipping Certificates in order to be eligible for delivery must be
registered with the Official Registrar and in accordance with the requirements
issued by the Registrar. Registration of Corn and Soybean Shipping Certificates
shall also be subject to the following requirements:
(a) Shippers who are regular for delivery may register certificates at any
time. If the shipper determines not to tender the shipping certificate by
4:00 p.m. on the day it is registered, the shipper shall declare the
certificate is withdrawn but is to remain registered by transmitting to the
Registrar the certificate number and the name and location of the shipping
plant. The holder of a registered certificate may cancel its registration
at any time. A certificate which has been canceled may not be registered
again.
(b) No notice of intention to deliver a certificate shall be tendered to the
Clearing Services Provider unless said certificate is registered and in
possession of the Clearing member tendering the notice or unless a shipping
certificate is registered and outstanding. When a notice of intention to
deliver a certificate has been tendered to the Clearing Services Provider,
said certificate shall be considered to be "outstanding" until its
registration is cancelled.
(c) From his own records, the Registrar shall maintain a current record of the
number of certificates that are registered and shall be responsible for
posting this record on the Exchange Floor and the CBOT website. The record
shall not include any shipping certificates that have been declared
withdrawn.
(d) When a registered shipper regains control of a registered certificate
calling for shipment from one of his shipping stations, which in any manner
relieves him of the obligation to ship corn or soybeans upon demand of a
party other than himself, the shipper shall by 4:00 p.m. of that business
day either cancel the registration of said certificate or declare that said
certificate is withdrawn but is to remain registered by transmitting to the
Registrar the certificate number and the name and location of the shipping
plant, except in the case where a notice of intention to redeliver said
certificate for the shipper has been tendered to the Clearing Services
Provider by 4:00 p.m. of the day that the shipper regained control of said
certificate.
(e) The Registrar shall not divulge any information concerning the
registration, delivery or cancellation of certificates other than the
record posted on the Exchange Floor and the CBOT website, except that he
shall issue a daily report showing the total number of certificates
registered as of 4:00 P.M. on the each trading day of the week. In addition
to the information posted on the Exchange Floor and the CBOT website, this
daily report will show the names of shippers whose certificates are
registered and the location of the shipping stations involved. This report
shall not include any shipping certificates that have been declared
withdrawn. (01/01/04)
Ch10 Delivery Procedures
------------------------
1044.01 Certificate Format - The Exchange and the Clearing Services Provider
shall determine the electronic fields which are required to be completed in
connection with an electronic shipping certificate.
The electronic shipping certificate obligates the shipper, for value received
and receipt of the certificate properly endorsed, and subject to a lien for
payment of premium charges, to deliver the specified quantity of the relevant
commodity conforming to the standards of the Exchange, and to ship the commodity
in accordance with orders of the lawful owner of the certificate and in
accordance with the Rules and Regulations of the Exchange. Delivery shall be by
water or rail conveyance according to the registered loading capability of the
shipper.
Delivery of the electronic shipping certificate to the issuer by the owner of
the certificate, for the purpose of shipment of the commodity, is conditioned
upon loading of the commodity in accordance with the Rules and Regulations of
the Exchange, and a lien is claimed until all loadings are complete and proper
shipping documents presented accompanying demand draft for freight and premium
charges due which the owner of the certificate agrees to honor upon
presentation. (01/01/04)
1045.01 Lost or Destroyed Negotiable Warehouse Receipts
(a) Unless a federal or state law prescribes different procedures to be
followed in the case of lost or destroyed warehouse receipts, the
following procedures shall be followed. A replacement receipt may be issued
upon compliance with the conditions set forth in paragraph (b) of this
Regulation. Such replacement receipt must be issued upon the same terms,
must be subject to the same conditions, and must bear on its face the
number and the date of the receipt in lieu of which it is issued. It must
also contain a plain and conspicuous statement that it is a replacement
receipt issued in lieu of a lost or destroyed receipt.
(b) Before issuing such replacement receipt, the warehouseman may require the
person requesting the receipt to make and file with the warehouseman: (1)
an affidavit stating that the requestor is the lawful owner of the original
receipt, that the requestor has not negotiated, sold, assigned or
encumbered it, how the original receipt was lost or destroyed, and if lost,
that diligent effort has been made to find the receipt without success, and
(2) a bond in an amount double the value, at the time the bond is given, of
the commodity represented by the lost or destroyed receipt.
Such bond shall indemnify the warehouseman against any loss sustained by
reason of the issuance of such replacement receipt. The bond shall have as
surety thereon a surety company which is authorized to do business, and is
subject to service of process in a suit on the bond, in the state in which
the warehouse, as named on the warehouse receipt, is located, or at least
two individuals who are residents of such state, and each of whom owns real
property in that state having a value, in excess of all exemptions and
encumbrances, equal to the amount of the bond.
In the alternative, upon the approval of the U.S. Department of Agriculture
where applicable, or otherwise upon the approval of the Exchange, a
warehouseman may issue a replacement receipt upon the execution of an
agreement by the requestor to indemnify the warehouseman against any loss
sustained by reason of the issuance of
Ch10 Delivery Procedures
------------------------
such replacement receipt, in a form acceptable to the warehouseman.
(02/01/03)
1046.00 Date of Delivery - Where any commodity is sold for delivery in a
specified month, delivery of such commodity may be made by the seller upon such
business day of the specified month as the seller may select and, if not
previously delivered, delivery must be made upon the last business day of the
specified month; provided, however, that the Exchange may, by Regulation
pertaining to a particular commodity, prescribe specific days or dates within
such specified month on which delivery of such commodity may or may not be made.
284 (09/01/94)
1046.00A Location for Buying or Selling Delivery Instruments - In order to
facilitate liquidation of outstanding contracts during the final seven business
days of a delivery month (Regulation 1009.03) floor brokers, locals and clearing
or non-clearing members who need warehouse receipts or shipping certificates in
order to make delivery or who anticipate receiving warehouse receipts or
shipping certificates on delivery and wish to dispose of them may meet at 2:00
p.m. on the last day of trading in an expiring future at the cash grain table
between the corn and soybean pits to make arrangements for the acquisition or
disposition of such receipts or certificates.
All actual deliveries against outstanding futures positions must, in any event,
be made by sellers through the Clearing Services Provider and will be received
by buyers through the Clearing Services Provider. 34R (01/01/04)
1047.01 Delivery Notices - A seller obligated or desiring to make delivery of a
commodity shall issue and deliver to the Clearing Service Provider a delivery
notice in the form and manner specified by the Exchange.
The Clearing Services Provider, acting as agent for the seller, shall provide
the notice to the buyer.
The seller or its agent shall reduce the notice to written form and retain a
copy of the notice for the period of time required by the Commodity Futures
Commission.
Upon determining the buyers obligated to accept deliveries tendered by issuers
of delivery notices, the Clearing Services Provider shall promptly furnish to
each issuer the names of the buyers obligated to accept delivery from him for
each commodity for which a notice was tendered and shall also inform the issuer
of the number of contracts for which each buyer is obligated. Failure of the
seller to object to such assignment by 7:00 a.m. on intention day, or by such
other time designated by the Exchange, shall establish an irrebuttable
presumption that the issuance of the delivery notice was authorized by the
person in whose name the notice was issued. (01/01/04)
1048.01 Method of Delivery - Delivery notices must be delivered to the Clearing
Services Provider which shall assign the deliveries to clearing members (buyers)
having contracts to take delivery of the same amounts of the same commodities.
The Clearing Services Provider shall notify such clearing members of the
deliveries which have been assigned to them and shall furnish to issuers of
delivery notices the names of clearing members obligated to accept their
deliveries. Clearing Members receiving delivery notices shall assign delivery to
the oldest open contracts on their books at the close of business on the
previous day (position day). 286 (01/01/04)
1049.00 Time of Delivery, Payment, Form of Delivery Notice - The requirements
of the form of delivery notice, time of delivery, and payment shall be fixed by
the Regulatory Compliance Committee. 287 (09/01/94)
1049.01 Time of Issuance of Delivery Notice - Unless a different time is
prescribed by Regulation pertaining to a particular commodity, delivery notices
must be delivered to the Clearing Services Provider by 4:00 p.m., or by such
other time designated by the Exchange, on position day except that, on the last
notice day of the delivery month, delivery notices for those commodities
utilizing the electronic delivery system via the Clearing Services Provider's
on-line system may be delivered to the Clearing Services Provider until 10:00
a.m. or 2:00 p.m. for all other commodities, or by such other time designated by
the Exchange, on intention day. The Clearing Services Provider shall, on the
same day, assign the deliveries to eligible buyers as provided in Regulation
1048.01 and shall issue to each such buyer a delivery assignment notice
describing the delivery which has been assigned to him. (01/01/04)
Ch10 Delivery Procedures
------------------------
1049.01B Interpretation: Sellers' Obligation for Storage Charges - The
Directors have issued the following interpretation of Rule 1042.00, Rule
1041.00, and Regulation 1049.01 in connection with the time the responsibility
for storage charges changes from seller to buyer.
The responsibility for storage charges shall remain the obligation of the seller
until such time as the warehouse receipts or weight certificates are presented
to the buyer and payment is made therefore in conformity with the Regulations
concerning payment. (09/01/94)
1049.02 Buyers' Report of Eligibility to Receive Delivery - Prior to 8:00 p.m.,
or by such other time designated by the Exchange, of each day on which delivery
notices may be delivered to the Clearing Services Provider, each clearing member
shall report to the Clearing Services Provider, at such times and in such manner
as shall be prescribed by the Clearing Services Provider, the amounts of its
purchases of the various commodities then eligible for delivery which remain
open on its books in accordance with law and with the Rules and Regulations of
the Association. Such reports shall show the dates on which such purchases were
made, and shall exclude purchases to which the clearing member has applied
deliveries assigned to it but which remain open on its books pending receipt of
delivery. With respect to omnibus accounts, the reports described above shall
show the dates on which such purchases were made, as reflected on the ultimate
customers' account statements. (01/01/04)
1049.03 Sellers' Invoices to Buyers - Upon receipt of the names of the buyers
obligated to accept delivery from him and a description of each commodity
tendered by him which was assigned by the Clearing Services Provider to each
such buyer, the seller shall prepare invoices addressed to its assigned buyers
describing the documents to be delivered to each such buyer and, in the case of
deliveries under Rule 1041.00, the information required in said Rule. Such
invoices shall show the amount which buyers must pay to sellers in settlement of
the actual deliveries, based on the delivery prices established by the Clearing
Services Provider for that purpose adjusted for applicable premiums, discounts,
storage charges, premium charges, premium for FOB conveyance, quantity
variations and other items for which provision is made in these Rules and
Regulations relating to contracts, and shall be in the form designated by the
Exchange. Such invoices shall be delivered to the Clearing Services Provider by
10:00 a.m. for those commodities utilizing the electronic delivery system via
the Clearing Services Provider's on-line system or 4:00 p.m. for other
commodities, or by such other time designated by the Exchange, on the day of
intention except on the last notice day in the delivery month when a skeleton
notice has been delivered to the Clearing Services Provider, in which case
invoices for said delivery may be delivered to the Clearing Services Provider
until 10:00 a.m. on the last delivery day of the delivery month. Upon receipt of
such invoices, the Clearing Services Provider shall promptly make them available
to buyers to whom they are addressed.
Financial instruments futures contracts will follow the invoicing procedure that
is prescribed in the respective contract's invoicing regulation. Delivery
invoicing forms for financial instruments futures contracts shall be restricted
to that form which the Clearing Services Provider specifically provides.
DELIVERY INVOICE
Office Of
No._______
__________________________________________________________________________
__________________________________________________________________________
For delivery on___________________________________________________________
(Date)
against C. H. Assignment Notice No._______________________________________
To________________________________________________________________________
(Buyer's code number and name)
For the delivery of_______________________________________________________
(Net quantity, per list total below)
of________________________________________________________________________
(Grade, class, commodity)
In, ordered to, or to be shipped from_____________________________________
(Warehouse, delivery or shipping point)
As evidenced by the documents listed below:
At the established delivery price of _______ per ______ $______
Premium or discount on grade ______
Storage and insurance, or premium, for a total of ____ days ______
Other charges or credits ______
TOTAL AMOUNT DUE-THIS INVOICE $______
Ch10 Delivery Procedures
------------------------
[Enlarge/Download Table]
Whse.Receipt or Prem-Disc. Other charges or
certificate on Grade Adjustment for Stge-lns-Prem. credits
---------------------------------------------------------------------------------------------------------------
Amount &
Date Number Net Quantity Rate Amount Pd.thru Days Rate Amount Dr Cr. Description
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
1638 (01/01/04)
1049.04 Transfer Obligations - Payment is to be made in same day funds 1) by a
check drawn on and certified by a Chicago bank or 2) by a Cashier's check issued
by a Chicago bank. The long clearing member may effect payment by wire transfer
only if this method of payment is acceptable to the short clearing member.
Unless a different time is prescribed by Regulation pertaining to a particular
commodity, buyers obligated to accept delivery must take delivery and make
payment and sellers obligated to make delivery must make delivery before 1:00
p.m. of the day of delivery, except on banking holidays when delivery must be
taken or made and payment made before 9:30 a.m. the next banking business day.
Adjustments for differences between contract prices and delivery prices
established by the Clearing Services Provider shall be made with the Clearing
Services Provider in according with its rules, policies and procedures. 1639
(01/01/04)
1050.00 Duties of Members - Members shall deliver warehouse receipts, bills of
lading, shipping certificates or demand certificates tendered for delivery
pursuant to the Rules and Regulations of the Association and in accordance with
the assignment thereof to eligible buyers by the Clearing Services Provider, and
shall make no other disposition thereof. A member who alters or makes a false
endorsement on a notice of assignment of delivery issued by the Clearing
Services Provider under Regulation 1048.01, for the purpose of avoiding
acceptance of the delivery specified, therein, should be deemed guilty of an act
detrimental to the Welfare of the Association. 288 (01/01/04)
1050.01 Failure to Deliver - If a clearing member fails to fulfill its delivery
obligation, the non-defaulting clearing member must notify the Clearing Services
Provider of such failure as soon as possible. If, and only if, the
non-defaulting clearing member notifies the Clearing Services Provider of the
failure no later than sixty minutes after the time the delivery obligation was
required to have been fulfilled, then the Clearing Services Provider shall pay
to the non-defaulting clearing member reasonable damages proximately caused by
the default.
The Clearing Services Provider shall not be obligated to either: (1) pay any
damages greater than the difference between the delivery price of the specific
commodity and the reasonable market price of such commodity at the time delivery
was required; or (2) make or accept delivery of the actual commodity; or (3) pay
any damages relating to the accuracy, genuineness, completeness, or
acceptableness of warehouse receipts, shipping certificates, or any similar
documents; or (4) pay any damages relating to the failure or insolvency of
banks, depositories, warehouses, shipping stations, or similar organizations or
entities that may be involved with a delivery.
All delivery obligations of a clearing member to another clearing member, which
are not fulfilled by the clearing member, shall be deemed an obligation of the
defaulting clearing member to the Clearing Services Provider. These obligations
must be fulfilled to the Clearing Services Provider within sixty minutes of the
time the obligations were required to be fulfilled to the non-defaulting
clearing member. (01/01/04)
1051.01 Office Deliveries Prohibited - No office deliveries of warehouse
receipts or shipping certificates may be made by clearing members. Where a
futures commission merchant as a clearing member has an interest both long and
short for customers on its own books, it must tender to the Clearing Services
Provider such notices of intention to deliver as it receives from its customers
who are short. 1870 (01/01/04)
1052.00 Delivery of Grain in Cars (Chicago only) - Regular deliveries of
contract grades of grain on contracts for future delivery may be made in cars on
track during the last three business days in the delivery month subject to the
following:
(a) Cars must be within the Chicago District, in a railroad yard where samples
are taken by an official grain inspection agency approved by the U.S.D.A.
(b) Cars must be consigned or ordered to a regular warehouse.
(c) Delivery shall not be complete until the grain is unloaded and warehouse
receipts or weight certificates are issued therefor unless the buyer elects
otherwise. During this time, title to the grain remains in the seller, the
purchase price is not payable, and the seller remains liable for any change
in grade. The buyer, however, may elect and order the cars unloaded at any
other place where they will be weighed provided the buyer makes payment in
advance. In making such election and paying in advance the buyer assumes
title and all responsibility for any change in grade occuring after the
original inspection as provided in subsection (d) of this Rule and for any
and all charges occasioned by such election of the buyer.
(d) Grain delivered in cars on track in settlement of futures contracts must be
inspected during the last four delivery days of the delivery month by an
official grain inspection agency approved by the U.S.D.A. In the event
another grade determination is made subsequent to date of tender and the
original grade is changed, the delivery will not be disqualified as a
result thereof. Price adjustment will be made between the buyer and the
seller at the prevailing fair market difference based on the cost of
replacement. In the event of a dispute, the Chairman of the Regulatory
Compliance Committee will appoint an impartial committee of three to fix a
fair and proper differential.
Ch10 Delivery Procedures
------------------------
(e) Deliveries of grain in cars shall be made by the tender of delivery notices
based on the shippers' certificates of weight (if attached thereto) or
railroad weights, or, in the absence of such weights, the marked capacity
of the cars.
(f) Where there is an excess or deficit upon delivery, such excess or deficit
shall be settled for on the basis of the market price at the time when such
excess or deficit becomes known to both parties; provided that the buyer,
if he so elects, may cancel the contract as to any deficit.
(g) On all grain tendered under this Rule, the party making the original tender
shall keep on file and deliver on request, at tenderer's option, the
samples of the official grain inspection agency.
(h) Delivery of wheat, corn, oats or soybeans in cars shall be for quantities
of 5,000 bushels or multiples thereof. 283 (03/01/00)
1052.00A Track Deliveries -
1. Under subparagraph (d) of Rule 1052.00 when notices of intention to deliver
are issued on the day prior to the three days during which regular
deliveries may be made in carlots, the requirement that the delivery notice
be accompanied by certificate showing approval by the Illinois State Grain
Inspection Department for storage must be attached to the delivery notice
will be satisfied if that certificate is furnished the next day.
2. During the last three delivery days of the month split notices of delivery
may be tendered, that is to say, part of the notice may cover grain in
store and part of the notice may cover grain in cars on track. 14R
(03/01/00)
1052.00B Track Deliveries - The matter of the origin of grain which may be
delivered in satisfaction of futures contracts under Rule 1052.00 (Delivery of
Grain in Cars), was brought before the Directors. After a discussion upon motion
duly made, seconded, and unanimously carried, it was
Resolved, only grain arriving in cars from points outside of the Chicago
Switching District and which has not previously been unloaded at a warehouse in
the Chicago Switching District may be delivered in satisfaction of futures
contracts under Rule 1052.00; and
Further Resolved, that grain loaded in cars from warehouses in the Chicago
Switching District shall not be deliverable in satisfaction of futures contracts
under said Rule 1052.00. 23R (09/01/94)
1052.00C Track Deliveries -
1. The question was submitted to the Directors as to whether or not under Rule
1052.00 (Delivery of Grain in Cars) out-of-town weights can be used on
carlot deliveries provided there is an agreement between the buyer and
seller. It was the ruling of the Directors and the Rules Committee that
under the provisions of this Rule out-of-town weights may not be used even
where mutual agreement might exist.
2. The question was submitted to the Directors as to whether deliveries of
grain in cars might be settled on the aggregate or on the basis of
individual contracts under Rule 1052.00.
The Directors and the Rules Committee held that the settlement must be made
on the individual contracts of 5,000, 2,000, 1,000 bushels or multiples
thereof, and may not be settled on the aggregate.
3. The Directors and the Rules Committee have made the following
interpretation of Regulation 1047.01 (Delivery Notice). A person issuing a
skeleton notice on the last notice day in a delivery month must by 10:00
a.m. on the next day furnish all information which is required on the usual
delivery notice. A person re-issuing a skeleton notice on the first
position day of a successive delivery month (i.e. -the next calendar month)
must furnish all information which is required on the usual delivery notice
by 1:00 p.m. on first notice day. 23R (05/01/95)
1054.00 Failure to Accept Delivery - Where a buyer to whom a delivery has been
assigned by the Clearing Services Provider under Regulation 1048.01 fails to
take such delivery and make payment when payment is due, the seller tendering
such delivery shall promptly sell the commodity on the open market for the
account of the delinquent. He shall then immediately notify the Clearing
Services Provider of the default, the contract price, and the re-sale price, and
the Clearing Services Provider shall immediately serve a like
1017
Ch10 Delivery Procedures
------------------------
notice upon the delinquent. Thereupon the delinquent shall be obligated to pay
to the seller, through the Clearing Services Provider, the difference between
the contract price and the re-sale price. 289 (01/01/04)
1054.00A Failure to Accept Delivery - Rule 1054.00 provides that when a buyer
fails to take delivery and make payment at the prescribed time, the issuer of
the delivery shall promptly sell the commodity on the open market for the
account of the delinquent.
Does this mean that the seller is to sell the warehouse receipts in the cash
market or sell futures in the pit and make a new tender? Also, what is the
meaning of the term 'promptly'? If the deliverer, thinking to accommodate the
delinquent, waits until 1:10, at which time the market is 5 lower than at 1:00
has he assumed any liability because of the delay? If it is the warehouse
receipts which are to be sold out, what determines the market price? Frequently
an elevator operator will pay more for his own receipts than for another's; or a
processor may pay a higher basis for one grade than another, grade differential
to the contrary. If futures are to be sold in the pit, who then is responsible
for the mechanics of tender and the assumption of interest?
The Board approved the opinion of the Rules Committee that the seller must have
the right to act in either the cash or futures market at his discretion without
recourse on the part of the defaulting buyer so long as action is taken prior to
9:45 A.M., or by such other time designated by the Exchange, the next business
day. 38R (01/01/04)
1054.01 Failure to Accept Delivery - If a clearing member fails to accept
delivery, the seller tendering such delivery shall promptly sell the commodity
for the account of the buyer. If the proceeds are insufficient to pay the seller
the full delivery price, the clearing member failing to accept delivery shall be
liable for the difference.
If a clearing member is unable or refuses to make full payment to the seller,
the Clearing Services Provider shall bear the seller's loss in the first
instance.
All delivery obligations of a clearing member to another clearing member, which
are not fulfilled by the clearing member, shall be deemed an obligation of the
defaulting clearing member to the Clearing Services Provider. These obligations
must be fulfilled to the Clearing Services Provider within sixty minutes of the
time the obligations were required to be fulfilled to the non-defaulting
clearing member. Failure to accept delivery or make full payment shall also
constitute improper conduct. (01/01/04)
1056.01 Storage Rates for Wheat and Oats and Premium Charges for Corn and
Soybeans - To be valid for delivery on futures contracts, all warehouse receipts
and shipping certificates covering wheat and oats in regular store or corn and
soybeans under obligation for shipment must indicate the applicable storage rate
or premium charge. No warehouse receipts or shipping certificates shall be valid
for delivery on futures contracts unless the storage rates or premium charges on
such grain shall have been paid up to and including the 18th calendar day of the
preceding month, and such payment endorsed on the warehouse receipt or shipping
certificate. Unpaid accumulated storage rates and premium charges at the posted
rate applicable to the warehouse or shipping station where the grain is stored
or under obligation for shipment shall be allowed and credited to the buyer by
the seller to and including date of delivery. 1641
If storage rates or premium charges are not paid on-time up to and including the
18th calendar day preceding the delivery months of March, July and September and
by the first calendar day of each of these delivery months, a late charge will
apply. The late charge will be an amount equal to the total unpaid accumulated
storage rates or premium charges multiplied by the "prime interest rate" in
effect on the day that the accrued storage rates are paid plus a penalty of 5
percentage points, all multiplied by the number of calendar days that storage is
overdue, divided by 360 days. The term "prime interest rate" shall mean the
lowest of the rates announced by each of the following four banks at Chicago,
Illinois, as its "prime rate": Bank of America-Illinois, Bank One, Harris Trust
& Savings Bank, and the Northern Trust Company.
The storage rates on Wheat and Premium Charges on Corn and Soybeans for delivery
shall not exceed 15/100 of one cent per bushel per day.
The storage rates on Oats for delivery shall not exceed 13/100 of one cent per
bushel per day.
(10/01/03)
1018
Ch10 Regularity of Warehouses
1081.01 Regularity of Warehouses and Issuers of Shipping Certificates -
Warehouses or shipping stations may be declared regular for the delivery of
grain with the approval of the Exchange. Persons operating grain warehouses or
shippers who desire to have such warehouses or shipping stations made regular
for the delivery of grain under the Rules and Regulations shall make application
for an initial Declaration of Regularity on a form prescribed by the Exchange
prior to May 1 of an even year, for a two-year term beginning July 1 of that
year, and at any time during a current term for the balance of that term.
Regular grain warehouses or shippers who desire to increase their regular
capacity during a current term shall make application for the desired amount of
total regular capacity on the same form. Initial regularity for the current term
and increases in regularity shall be effective either thirty days after a notice
that a bona fide application has been received is posted by the Exchange, or the
day after the application is approved by the Exchange, whichever is later.
Persons operating grain warehouses or shipping stations who desire to have their
daily rate of loading decreased, shall file with the Exchange a written request
for such decrease at which time a notice will be posted by the Exchange. The
decrease in the daily rate of loading for the facility will become effective 30
days after a notice has been posted by the Exchange or the day after the number
of outstanding certificates at the facility is equal to or less than 20 times
the requested rate of loading, whichever is later. Persons operating grain
warehouses or shipping stations who wish to have their regular capacity space
decreased shall file with the Exchange a written request for such decrease and
such decrease shall be effective once a notice has been posted by the Exchange.
Applications for a renewal of regularity shall be made prior to May 1 of even
years, for the respective years beginning July 1 of those years, and shall be on
the same form.
The Exchange may establish such requirements and conditions for regularity as it
deems necessary.
The following shall constitute the minimum requirements and conditions for
regularity of grain warehouses and shipping stations:
(1) The warehouse or shipping station making application shall be inspected by
the Exchange or the United States Department of Agriculture. Where
application is made to list as regular a warehouse which is not regular at
the time of such application, the applicant may be required to remove all
grain from the warehouse and to permit the warehouse to be inspected and
the grain graded, after which such grain may be returned to the warehouse
and receipts issued therefor.
See Regulation C1081.01(1)-Regularity of Warehouses and Issuers of Shipping
Certificates for Corn futures contracts.
See Regulation S1081.01(1)-Regularity of Warehouses and Issuers of Shipping
Certificates for Soybean futures contracts.
(2) Such warehouse shall be connected by railroad tracks with one or more
railway lines.
See Regulation C1081.01(2)-Regularity of Warehouses and Issuers of Shipping
Certificates for Corn futures contracts
See Regulation S1081.01(2)-Regularity of Warehouses and Issuers of Shipping
Certificates for Soybean futures contracts.
(3) The proprietor or manager of such warehouse or shipping station shall be in
good financial standing and credit, and shall meet the minimum financial
requirements and financial reporting requirements set forth in Appendix 4E.
No warehouse or shipping station shall be declared regular until the person
operating the same files a bond and/or designated letter of credit with
sufficient sureties, or deposits with the Exchange, treasury securities, or
other collateral deemed acceptable to the Exchange, in such sum and subject
to such conditions as the Exchange may require. Any such sums shall be
reduced by SEC haircuts, as specified in SEC Rule 15c3-1(c)(2)(vi), (vii)
and (viii). If the warehouseman/shipper deposits treasury securities or any
other collateral with the Exchange, it must execute a security agreement on
a form prescribed by the Exchange.
(4) Such warehouse or shipping station shall be provided with modern
improvements and appliances for the convenient and expeditious receiving,
handling and shipping of grain in bulk.
(5) The proprietor or manager of such warehouse or shipping station shall
comply with the system of registration of warehouse receipts or shipping
certificates as established by the Exchange, and shall furnish accurate
information to the Exchange regarding all grain received and delivered by
the warehouse or shipping station on a daily basis, and that remaining in
store at the close of each week, in the form prescribed by the Exchange.
Ch10 Regularity of Warehouses
-----------------------------
(6) Safeguarding Condition of Grain in Warehouses.
(a) The Board of Trade shall designate an agency for registration of public
warehouse receipts, and only public warehouse receipts registered with
such agency shall be within the provisions of paragraph (b) following.
(b) Whenever in the opinion of the operator of the warehouse any grain
stored in a public warehouse under his jurisdiction should be loaded out
in order to protect the best interests of the parties concerned, such
operator shall notify the agency giving the location and grades of such
grain. The agency shall immediately notify an appropriate grain
inspection service who shall at once proceed to the warehouse in which
the grain is stored and examine it in conjunction with the
Superintendent of such warehouse. If the grain inspection service agrees
with the Superintendent that the grain should be moved, it shall so
notify the Registrar of the Chicago Board of Trade. If the grain
inspection service does not agree with the Superintendent that the grain
should be moved, the operator of the warehouse shall have a right to
appeal to the Business Conduct Committee of the Board of Trade. If on
such appeal the Business Conduct Committee shall agree with the
Superintendent that the grain should be moved, the Business Conduct
Committee shall so notify the Registrar of the Board of Trade, and the
warehouse receipts covering the above specified lot or lots of grain
shall no longer be regular for delivery on Board of Trade future
contracts. Upon receiving such notice, either from the grain inspection
service, or from the Business Conduct Committee, the Registrar shall
notify the holder, or holders, or their agents, together with the
Chairman of the Business Conduct Committee, of the total quantity of the
grade of grain in question (selecting the oldest registered warehouse
receipt for such grain first, then such additional registered warehouse
receipts in the order of their issuance as may be necessary to equal
such total quantity of grain). When this information reaches the
Chairman of the Business Conduct Committee he shall appoint a Committee
consisting of five disinterested handlers of cash grain, which Committee
shall meet at once and after taking into consideration various factors
that establish the value of the grade of the receipts held by such owner
or owners, shall determine the fair value of the grain, which price
shall be that to be paid by the operator. If the price offered is not
satisfactory, a Committee appointed by the Chairman of the Business
Conduct Committee (at the request of such owner), shall procure other
offers for such grain, and such offers shall be immediately reported to
the owner or his agent. If the owner refuses to accept any such offers,
he shall have the two following business days to order and furnish
facilities for loading such grain out of store, and during this period
the warehouseman shall be obliged to deliver the grain called for by the
warehouse receipts, but not more than three (3) days may elapse after
notification by the Registrar to the holder of the receipt before
satisfactory disposition shall have been made of the grain, either by
sale to the operator or by the ordering out and furnishing facilities to
load the same, provided the amount of such grain does not exceed 100,000
bushels in any one elevator. If the amount of grain in question exceeds
100,000 bushels, the owner, or owners, of the warehouse receipts shall
be allowed forty-eight hours of grace over and above the before
mentioned three days for each 100,000 bushels in excess of the first
100,000 bushels.
(c) In the event that the holder of the warehouse receipt, or his agent,
fails to move the grain or make other satisfactory disposition of same
within the prescribed time, it shall be held for his account, and any
loss in grade sustained shall likewise be for his account.
(d) Nothing in the foregoing provisions shall be construed as prohibiting
the warehouseman from fulfilling contracts from other stocks under his
control.
(7) The proprietor or manager of such warehouse shall promptly, by the proper
publication, advise the trade and the public of any damage to grain held in
store by it, whenever such damage shall occur to an extent that will render
it unwilling to purchase and withdraw from store, at its own cost, all such
damaged grain.
(8) The Board shall be assured that the operator or manager of the warehouse or
shipping station will agree to conform to Regulation 1049.03.
1020
Ch10 Regularity of Warehouses
-----------------------------
(9) The proprietor or manager of such warehouse shall permit the Exchange, at
any time, to examine the books and records of the warehouse, for the
purpose of ascertaining the stocks of all kinds of grain which may be on
hand at any time. The Exchange shall have the authority to determine the
quantity of grain in the elevators and to compare the books and records of
the warehouse with the records of the Exchange.
(10) The proprietor or manager of a regular warehouse or shipping station shall
give assurance that all grain received in and shipped out of such warehouse
shall be weighed under the supervision of an agency approved by the
Exchange.
(11) The warehouseman or shipper operating such warehouses or shipping stations
shall not engage in unethical or inequitable practices, and shall comply
with all applicable federal or state statutes, rules or regulations.
All warehousemen and shippers are and shall be and remain subject to the
Rules, Regulations and Rulings of the Board of Trade of the City of Chicago
on all subjects and in all areas with respect to which the U.S. Department
of Agriculture does not assert jurisdiction pursuant to the U.S. Warehouse
Act, as amended.
A regular warehouseman or an owner of warehouse receipts can make delivery
in a strike bound elevator. The taker of delivery is liable for all storage
charges. However, where the owner of warehouse receipts in a strike bound
elevator delivered against futures contracts has a bona fide bid for like
receipts in a strike free elevator and decides to load the grain out or
sell his receipts, the strike bound warehouseman has the option:
(a) to provide that same quantity and like quality of grain in store in
another regular warehouse, not on strike, in the same delivery market,
or
(b) to provide that same quantity and like quality of grain in store at
another location on mutually acceptable terms, or
(c) if no initial agreement can be reached as provided above, the strike
bound warehouseman must buy his warehouse receipts back at the bid
price in store for that same quantity and like quality of grain in a
strike free elevator in the same delivery market or he has the
alternative of proceeding as in (a) above. The bid (which must be a
basis bid versus futures) referred to in this paragraph must be good
for a minimum period of one hour and must be tendered in writing to the
strike bound warehouseman between 1:30 p.m. and 4:30 p.m. on a business
day and prior to 8:30 a.m., but not before 7:30 a.m., on the following
business day.
The warehouseman must respond to the bid as outlined above within the
time period during which the bid is alive.
Should the warehouseman question the validity of the bid, the question
shall be referred to a Standing Committee which shall have been
appointed on an annual basis by the Chairman of the Board, with the
approval of the Board. The Committee shall consist of three members
including one regular warehouseman with suitable alternates. In case
the strike bound elevator involved is in a market other than that
directly represented by the warehouseman appointed, the Chairman may
designate a member in said alternate market who is familiar with cash
grain values in that market. The sole duty of the Committee shall be to
determine that the bid is bona fide. The Committee shall not express
any opinion with respect to the economics of the bid.
Within the context of this Regulation, a strike bound elevator is
defined as the facility itself
1021
Ch10 Regularity of Warehouses
-----------------------------
being on strike.
The maximum load-out charge on wheat and oats which has been tendered in
satisfaction of the Board of Trade futures contracts shall be 6 cents per
bushel.
The maximum premium for FOB conveyance on Corn and Soybean Shipping
Certificates which have been tendered in satisfaction of Board of Trade
futures contracts shall be 4 cents per bushel.
All fees for stevedoring services to load Corn and Soybeans into barges
are to be paid by the issuer of the Corn or Soybean Shipping Certificate.
The premium for FOB conveyance is payable at the time of invoice.
(12) Load-Out Procedures.
A. Load-Out Procedures Grains -
1. Corn and Soybeans; Wheat from Chicago, Burns Harbor and St. Louis; and
Oats from Chicago and Burns Harbor. An operator of a regular facility has
the obligation of loading grain represented by warehouse receipts or
shipping certificates giving preference to takers of delivery. When an
operator of a facility regular for the delivery of grain receives one or
more written loading orders for loading of grain against canceled
warehouse receipts or shipping certificates, the operator shall begin
loading against them within 3 business days following their receipt. When
loadings against written loading orders cannot be completed on the fourth
business day following their receipt, the operator shall continue loading
against such loading orders on each business day thereafter. All
warehousemen and shippers shall outload grain against canceled delivery
instruments consecutively without giving preference of the type of
delivery instrument, kind of grain or mode of transportation. He shall
outload all such products in the order in which suitable transportation,
clean and ready to load is constructively placed at his facility by the
holder of the warehouse receipt or shipping certificate, pursuant to bona
fide loading orders previously received, and at the loading rates provided
in part B of this Regulation.
2. Wheat from Toledo and Oats from Minneapolis-St. Paul - All warehousmen
shall inload and outload all agricultural products consecutively without
giving preference to the products owned by him over the products of
others, and without giving preference to one depositor over another. He
shall inload all such products consecutively in the order in which they
arrive at his warehouse, pursuant to the inloading orders previously
received so far as the warehouse capacity for grain and grade permits. He
shall outload all such product s in the order in which suitable
transportation, clean and ready to load is constructively placed at his
warehouse by the holder of the warehouse receipt, pursuant to bona fide
outloading orders previously received, except as provided in part B of
this Regulation.
3. It shall be the responsibility of the warehouse receipt or shipping
certificate holder to supply suitable transportation. Hopper cars shall
be considered suitable transportation if they can be sampled by pelican
in a manner approved by the appropriate grain sampling agency. Trucks
and non-suitable hopper cars may be loaded only with the express
agreement of the warehouseman.
Constructive placement at a warehouse or shipping station shall be
defined as follows:
(1) Rail cars-as defined in the appropriate Railroad Freight Tariff on
file with the Interstate Commerce Commission;
(2) Barges-Positioned at an appropriate fleeting service serving the
designated delivery point as defined by the Barge Freight Trading
Rules (Affreightment) of the National Grain and Feed Association;
(3) Vessels-In possession of the appropriate Federal Grain Inspection
Service and/or National Cargo Bureau documents certifying readiness
to accept load-out at the designated delivery point.
It shall be the responsibility of the warehouse receipt or shipping
certificate holder to request the warehouseman to arrange for all
necessary Federal Grain Inspection Service and stevedoring service. The
warehouse receipt or shipping certificate holder may specify the
stevedoring service to be called. The warehouseman shall not be held
responsible for non-availability of these
1022
Ch10 Regularity of Warehouses
-----------------------------
services.
B. Load-Out Rates for Grain - In the event a regular grain warehouse or
shipping station receives written loading orders for load-out of grain
against canceled warehouse receipts or shipping certificates, the
warehouseman or shipper shall be required to load out grain beginning on
the third business day following receipt of such loading orders or on
the day after a conveyance of the type identified in the loading orders
is constructively placed, whichever occurs later. The rate of load-out
for warehouses in Toledo and Minneapolis-St. Paul shall be at the normal
rate of load-out for the facility. The load-out rate for
warehouses/shipping stations in Chicago and Burns Harbor and for wheat
warehouses in St. Louis shall depend on the conveyance and type of grain
being loaded and shall not be less than the following per business day:
[Enlarge/Download Table]
Rail Conveyance or Water Conveyance
--------------------------------------------------------------------------------------------------------------------
(When receipt holder requests in (When receipt holder requests Vessel or Barge
writing individual weights and in writing batch weights and
grades per car load) grades)/1/
--------------------------------------------------------------------------------------------------------------------
Wheat, Corn, 25 Hopper Cars 35 Hopper Cars 300,000 Bushels 3 Barges
Soybeans
--------------------------------------------------------------------------------------------------------------------
Oats 15 Hopper Cars 20 Hopper Cars 180,000 Bushels 2 Barges
--------------------------------------------------------------------------------------------------------------------
/1/ A batch weight and grade shall refer to a buyer's request in writing for 1
weight and 1 grade per 5 rail cars.
Barge load-out rates for corn and soybeans will be at the shipping
station's registered daily rate of loading. When wheat and corn or
soybeans or when oats and corn or soybeans are in the lineup for
loading, the higher loading rate will apply for total barge loadings on
that day. However, a warehouseman or shipper is not obligated to load
barges of one type of grain that exceeds the daily barge loading rate
for that type of grain. Corn and soybeans are considered one type of
grain for this regulation pertaining to barge loading rates.
Regular grain warehouses and shipping stations shall not be required
to meet these minimum load-out rates when transportation has not been
actually placed at the warehouse, transportation equipment is not
clean and load ready, inspection services are not available, a
condition of force majeure exists, inclement weather, including severe
ice conditions, prevents loading, or stevedoring services are not
available in the case of water conveyance. However, the exceptions to
load-out requirements shall not include grains or soybeans which have
not made grade. If precluded from loading when equipment is available,
the warehouseman/shipper shall notify the owner by 10:00 a.m.
the following business day.
In addition, regular warehouses in Toledo and Minneapolis-St. Paul shall
not be required to meet the minimum load-out rate for a conveyance when
a "like" conveyance has been constructively placed for load-in prior to
the "like" conveyance for load-out. However, when a conveyance for load-
out is constructively placed after a "like" conveyance for load-in, the
warehouse will load-in grain from the "like" conveyance at the normal
rate of load-in for the facility. This rate of load-in shall depend on
the conveyance(s) being unloaded and shall not be less than the
following minimums per business day:
[Enlarge/Download Table]
Rail Conveyance or Water Conveyance
---------------------------------------------------------------------------------------------------------
Vessel or Barge
---------------------------------------------------------------------------------------------------------
Wheat, Corn, Soybeans 35 Hopper Cars 50,000 Bushels 1 Barge
---------------------------------------------------------------------------------------------------------
Oats 20 Hopper Cars 50,000 Bushels 1 Barge
---------------------------------------------------------------------------------------------------------
1023
Ch10 Regularity of Warehouses
-----------------------------
Regular warehouses shall not be required to meet these minimum load-in
rates when a condition of force majeure exists, inspection services are
not available, inclement weather prevents unloading, or stevedoring
services are not available in the case of water conveyance.
Any increased overtime costs and charges for trimming and FGIS to meet
minimum load-out requirements shall be borne by warehouseman.
Vessel loading shall require 3 days pre-advice to warehouseman prior to
the date of arrival of the vessel. Failure to provide pre advice may
delay loading by the same number of days pre-advice is delayed prior to
date of arrival of the vessel.
Inability of a warehouse receipt holder to provide conveyance at an
elevator in a timely manner will affect load-out of barges accordingly.
For purposes of this regulation, vessel and barge are "like"
conveyances.
C. Notification to Warehouse/Shippers - The warehouse operator or shipping
station shall load-in and load-out grains in the order and manner
provided in parts A and B of this Regulation, except that his obligation
to load-out grain to a given party shall commence no sooner than three
business days after he receives cancelled warehouse receipts/shipping
certificates and written loading orders from such party, even if such
party may have a conveyance positioned to accept load-out of grain
before that time. If the party taking delivery presents transportation
equipment of a different type (rail, barge, or vessel) than that
specified in the loading orders, he is required to provide the warehouse
operator with new loading orders, and the warehouse operator shall be
obligated to load-out grain to such party no sooner than three business
days after he receives the new loading orders. Written loading orders
received after 2:00 p.m. (Chicago time) on a given business day shall be
deemed to be received on the following business day. Warehouse
receipts/shipping certificates cancelled after 4:00 p.m. shall be deemed
to be cancelled on the following business day. Written loading orders
must be received no later than two business days after warehouse
receipts/shipping certificates are cancelled. If the owner decides
against loading out grain within two business days after
receipts/certificates are cancelled, he may notify the
warehouseman/shipper that warehouse receipts/shipping certificates are
to be re-issued. In the case of rice, oats, or wheat, if the
warehouseman is notified by 12:00 noon, re-issued receipts shall be
deliverable by 4:00 p.m. the following business day. Requests to
re-issue receipts/shipping certificates more than two business days
after receipts/shipping certificates are cancelled are subject to mutual
agreement. All fees for re-issuance are payable by the owner.
The warehouseman/shipper shall transmit to the Registrar by 11:00 a.m.
the name, location of warehouse/shipping facility, and number of
delivery vessels/barges/rail cars constructively placed that day. The
Registrar shall maintain a current record of the number of delivery
vessels/barges/rail cars constructively placed and shall be responsible
for posting this record on the Exchange Floor and the CBOT website.
D. Storage and Premium Charges - Storage payments [and Premium Charges] on
[grain] wheat and oats to be shipped pursuant to loading orders shall
cease on the tenth business day after suitable transportation is
constructively placed for load-out or loading is complete, whichever is
earlier. Premium charges for corn and soybeans to be shipped pursuant
to loading orders shall cease on the business day loading is complete.
E. Records - All warehousemen and shippers shall keep adequate permanent
records showing compliance with the requirements of this Regulation.
Such records shall at all times be open for inspection by the designated
official or officials of the contract market.
F. Certification of Corn, Soybeans and Wheat - Upon written request by a
taker of delivery at the time loading orders are submitted for the
delivery of corn, soybeans or wheat against canceled warehouse
receipts/shipping certificates, the delivery warehouseman/shipper shall
certify in writing to the taker of delivery on the day that the
transportation conveyance is loaded that the grain is of U.S. origin
only.
G. Barge Load-Out Procedures for Corn and Soybeans - When corn or soybeans
represented by shipping certificates are ordered out for shipment by
water conveyance, the regular shipper has the obligation to load-out
grain at his registered daily rate of loading. The shipper's obligation
shall begin to a party no sooner than 3 business days after he receives
canceled certificates and written loading orders from the party or 1
business day after the constructive placement of the water conveyance,
whichever is later.
(1) All loading orders and shipping instructions received by 2:00 p.m.
on a given business day shall be considered dated that day. Orders
received after 2:00 p.m. on a business day shall be considered dated
the following business day. "To be nominated" (TBN) barge identities
are acceptable in loading orders. Load-out shall be in the order in
which barge equipment clean and ready to load is constructively
placed at the appropriate fleeting service serving the designated
delivery point. Load-out of transportation constructively placed on
the same day shall be in the order in which loading orders and
shipping instructions were received. Notification of loading orders
and shipping instructions must be in writing to the shipper.
1024
Ch10 Regularity of Warehouses
-----------------------------
(2) When loading orders and shipping instructions are received by 2:00
p.m. on any given business day, the shipper will advise the owner by
10:00 a.m. the following business day of the scheduled loading
dates. Scheduled loading dates are estimated based on constructively
placed equipment and current loading orders. These dates are subject
to change if conditions covered in Regulation 1081.01(12)(G)(5)
preclude the shipper from meeting his minimum daily barge load-out
rate or if barges for subsequent loading orders are constructively
placed. Notification will be by telephone, mail, or fax to the
owner. Shipper is required to provide scheduled loading dates at
owner's request.
(3) Official grades as loaded into the water conveyance shall govern for
delivery purposes.
(4) Official weights as loaded into the barge shall govern for delivery
purposes when available. When official weights are available at the
shipping station, the shipping certificates are considered a
minimum/maximum quantity with overfills/underfills settled by mutual
agreement. When official weights as loaded into the barge are not
available it is the responsibility of the taker to obtain official
weights at the destination. Any other governing weights and methods
of obtaining weights and any such other information on the weighing
process must be mutually accepted by the maker and taker of delivery
before the barge is loaded. When the official weight becomes known
for a barge, overfills and underfills will be settled on the market
value, expressed as a basis, for grain FOB barge at the barge
loading station on the day that the grain is loaded. Before the
barge is loaded, the taker and maker of delivery will agree on a
basis over or under the nearby futures that overfills and underfills
will be settled on. On the day that the weight tolerance becomes
known to both parties, the flat price settlement will be established
by applying the basis to the nearby futures month settlement price
on the day of unloading or the day of loading if origin weights are
used. If the day of unloading is the last trading day in the nearby
futures month, the next following futures month will be used for
settlement. If the day of unload is not a business day, the next
following business day will be used to establish the flat price. In
order to convert the agreed upon basis on the day that the grain was
loaded to a basis relative to the current nearby futures month, the
futures spread on the day of loading will be used, provided that,
the nearby futures did not close outside of the price limits set for
all other futures months. In this case, the spread on the first
following business day that the nearby futures closed within the
price limits applicable for all other futures months would be used.
(5) The shipper shall not be required to meet his minimum daily barge
load-out rate when transportation has not been actually placed at
the shipping station, transportation equipment is not clean and load
ready, inspection services are not available, or inclement weather,
including severe ice conditions, prevents loading. However, the
exceptions to load-out requirements shall not include corn or
soybeans that have not made grade. If precluded from loading when
equipment is available, the shipper shall notify the owner by 10:00
a.m. the following business day. Notification shall be by telephone,
e-mail or fax to the owner.
(6) For Illinois Waterway barge loading at Burns Harbor, Regulation
1081.01(13)(A.)(a) pertaining to the protection of the Chicago barge
rate and inclement weather will apply.
(7) Any expense for making the grain available for loading on the
Illinois Waterway will be borne by the party making delivery,
provided that the taker of delivery constructively places barge
equipment clean and ready to load within five (5) business days
following the scheduled loading date of the barge on the Illinois
Waterway. If the taker's barges are not constructively placed within
five (5) business days following the scheduled loading date of the
barge on the Illinois Waterway, the taker shall pay the shipper an
amount not to exceed 30/100 of one cent per bushel per day
multiplied by the number of calendar days from the fifth business
day following the scheduled loading date to the date that the barge
is constructively placed, including both dates, but excluding
business days the shipper meets his minimum daily barge load-out
rate. Requests to cancel loading instructions and re-issue
receipts/shipping certificates more than two business days after
receipts/shipping certificates are cancelled are subject to mutual
agreement. All fees for re-issuance are payable by the owner
(8) The shipper shall load water conveyance at the shipping station
designated in the Shipping Certificate. If it becomes impossible to
load at the designated shipping station for three (3) consecutive
business days because of an Act of God, fire, flood, wind,
explosion, war, embargo, civil commotion, sabotage, law, act of
government, labor difficulties or other condition of force majeure,
the shipper will arrange for water conveyance to be loaded at
another regular shipping station in conformance with the Shipping
Certificate and will compensate the owner for any transportation
loss resulting from the change in the location of the shipping
station. If the aforementioned condition of impossibility prevails
at a majority of regular shipping stations, then shipment may be
delayed for
Ch10 Regularity of Warehouses
-----------------------------
the number of days that such impossibility prevails at a majority
of regular shipping stations. If conditions covered in this
regulation make it impossible to load at the designated shipping
station, the shipper shall notify the Registrar's Office in
writing of such condition within 24 hours of when the condition of
impossibility began.
(9) See Regulation C1081.01(12)G(9)-Regularity of Warehouses and
Issuers of Shipping Certificates for Corn futures contracts.
See Regulation S1081.01(12)G(9)-Regularity of Warehouses and
Issuers of Shipping Certificates for Soybean futures contracts.
(10) In the event less than eleven shipping certificates of a like
grade/quality are outstanding at a shipping station the owner of
all such outstanding shipping certificates may cancel the shipping
certificates and obligate the shipper to provide a market value at
which the shipper will either buy back all the canceled shipping
certificates or sell the balance of Corn or Soybeans of a like
grade/quality to complete a barge loading of at least 55,000
bushels, the choice being at the discretion of the taker of
delivery.
(13) Location.
A. Corn. See Regulation C1081.01(13)-Location for Corn futures
contracts.
No such warehouse or shipping station within the Chicago Switching
District shall be declared regular unless it is conveniently
approachable by vessels of ordinary draft and has customary shipping
facilities. Ordinary draft shall be defined as the lesser of (1) channel
draft as recorded in the Lake Calumet Harbor Draft Gauge, as maintained
by the Corps of Engineers, U.S. Army, minus one (1) foot, or (2) 20
feet.
Delivery in Burns Harbor must be made "in store" in regular elevators or
by shipping certificate at regular shipping stations providing water
loading facilities and maintaining water depth equal to normal seaway
draft of 27 feet.
In addition, deliveries of grain may be made in regular elevators or
shipping stations within the Burns Harbor Switching District PROVIDED
that:
(a) When grain represented by warehouse receipts or shipping
certificates is ordered out for shipment by a barge, it will be the
obligation of the party making delivery to protect the barge freight
rate from the Chicago Switching District (i.e. the party making
delivery and located in the Burns Harbor Switching District will pay
the party taking delivery an amount equal to all expenses for the
movement of the barge from the Chicago Switching District, to the
Burns Harbor Switching District and the return movement back to the
Chicago Switching District).
If inclement weather conditions make the warehouse or shipping
station located in the Burns Harbor Switching District unavailable
for barge loadings for a period of five or more calendar days, the
party making delivery will make grain available on the day following
this five calendar day period to load into a barge at one mutually
agreeable water warehouse or shipping station located in the Chicago
Switching District; PROVIDED that the party making delivery is
notified on the first day of that five-day period of inclement
weather that the barge is available for movement but cannot be moved
from the Chicago Switching District to the Burns Harbor Switching
District, and is requested on the last day of this five day calendar
period in which the barge cannot be moved.
(b) When grain represented by warehouse receipts or shipping
certificates is ordered out for shipment by vessel, and the party
taking delivery is a recipient of a split delivery of grain between
a warehouse or shipping station located in Burns Harbor and a
warehouse or shipping station in Chicago, and the grain in the
Chicago warehouse or
Ch10 Regularity of Warehouses
-----------------------------
shipping station will be loaded onto this vessel; it will be the
obligation of the party making delivery at the request of the party
taking delivery to protect the holder of the warehouse receipts or
shipping certificates against any additional charges resulting from
loading at one berth in the Burns Harbor Switching District and at
one berth in the Chicago Switching District as compared to a single
berth loading at one location. The party making delivery, at his
option, will either make the grain available at one water warehouse
or shipping station operated by the party making delivery and
located in the Chicago Switching District for loading onto the
vessel, make grain available at the warehouse in Burns Harbor upon
the surrender of warehouse receipts or shipping certificates issued
by other regular elevators or shipping stations located in the
Chicago Switching District at the time vessel loading orders are
issued, or compensate the party taking delivery in an amount equal
to all applicable expenses, including demurrage charges, if any, for
the movement of the vessel between a berth in the other switching
district. On the day that the grain is ordered out for shipment by
vessel, the party making delivery will declare the regular warehouse
or shipping station in which the grain will be available for
loading.
See Regulation C1081.01(13)-Location for Corn futures contracts.
B. Oats. For the delivery of oats, regular warehouses may be located within
the Chicago Switching District or within the Burns Harbor, Indiana
Switching District (subject to the provisions of paragraph A above) or
within the Minneapolis, Minnesota or St. Paul, Minnesota Switching
Districts.
Delivery in the Minneapolis or St. Paul Switching District must be made
"in store" in regular elevators providing barge-loading facilities and
maintaining water depth equal to the average draft of the current barge
loadings in the Minneapolis and St. Paul barge-loading districts.
However, deliveries of oats may be made in interior off-water elevators
within the Minneapolis or St. Paul Switching District, PROVIDED that the
party making delivery makes the oats available upon call within seven
calendar days to load into a barge at one river location in the
Minneapolis or St. Paul barge-loading district. The party making
delivery must declare, within one business day after receiving warehouse
receipts and loading orders, the river location at which the oats will
be made available. Any additional expense incurred to move delivery oats
from an off-water elevator into barges shall be borne by the party
making delivery; PROVIDED that the party taking delivery presents barge
equipment clean and ready to load within fifteen calendar days from the
time warehouse receipts and loading orders are tendered to the
delivering party.
Official weights and official grades as loaded into the barge shall
govern for delivery
Ch10 Regularity of Warehouses
-----------------------------
purposes.
C. Wheat. For the delivery of wheat, regular warehouses may be located
within the Chicago Switching District or within the Burns Harbor,
Indiana Switching District (subject to the provisions of Paragraph A
above), within the Toledo, Ohio Switching District, or with respect to
only No. 1 Soft Red Winter and No. 2 Soft Red Winter Wheat, within the
St. Louis-East St. Louis or Alton Switching Districts.
Delivery in Toldeo must be made "in store" in regular elevators
providing water loading facilities and maintaining water depth equal to
normal seaway draft of 27 feet.
However, deliveries of wheat may be made in off-water elevators within
the Toledo, Ohio Switching District PROVIDED that the party making
delivery makes the grain available upon call within five calendar days
to load into water equipment at one water location within the Toledo,
Ohio Switching District. The party making delivery must declare within
one business day after receiving warehouse receipts and loading orders
the water location at which wheat will be made available.
Any additional expense incurred to move delivery grain from an off-water
elevator into water facilities shall be borne by the party making
delivery; PROVIDED that the party taking delivery presents water
equipment clean and ready to load within fifteen calendar days from the
time the grain has been made available.
Official weights and official grades as loaded into the water equipment
shall govern for delivery purposes.
Delivery in the St. Louis-East St. Louis or Alton Switching Districts
must be "in store" in regular elevators providing barge loading
facilities and maintaining water depth equal to the average draft of the
current barge loadings in the St. Louis-East St. Louis and Alton barge
loading districts.
D. Soybeans. See Regulation S1081.01(13)-Location for Soybean futures
contracts.
(14) Billing
Ch10 Regularity of Warehouses
-----------------------------
A. Wheat, Corn, Soybeans and Oats (Chicago delivery). The Chicago
warehouseman is not required to furnish transit billing on grain
represented by warehouse receipt deliveries in Chicago, Illinois.
Delivery shall be flat.
B. Oats (Minneapolis, St. Paul delivery).
(1) When oats represented by warehouse receipts delivered in Minneapolis
or St. Paul are ordered out for shipment by rail, it shall be the
obligation of seller to furnish, no later than when cars are placed
or constructively placed at the elevator, to the party taking
delivery, inbound Freight Bills (rail tonnage or order equivalent
truck or barge tonnage) protecting the applicable proportional rate
applicable to Chicago from the warehouse in which the grain is
located. The Freight Bills shall be for the kind and quantity of the
commodity designated by the warehouse receipt and must permit such
commodity to be shipped at the minimum proportional rate applicable
to Chicago effective as of the date of shipment from point of origin
shown by the Freight Bill.
(a) Delivery at Minneapolis. When delivery is made at an elevator
within the Minneapolis Switching District, such Freight Bills
must permit one further free transit stop at interior transit
points or be accompanied by a check to cover one such transit
stop.
(b) Delivery at St. Paul. When delivery is made at an elevator
within the St. Paul Switching District, such Freight Bills must
permit one further free transit stop at interior transit points,
or be accompanied by a check to cover such transit stop, and in
addition must also permit movement to industries within the
switching limits of Minneapolis at no greater cost than the
maximum switching charges between industries located with the
switching limits of Minneapolis.
(2) In lieu of the Freight Bills or order equivalent tonnage specified
above, seller may furnish to the party taking delivery "short-rate"
Freight Bills or make compensation as specified in Section (b).
(a) "Short-rate" Freight Bills (which otherwise conform to the
requirements of this Regulation). "Short-rate" Freight Bills
shall be accompanied by a certified check, or other acceptable
payment, in an amount equal to the difference between the
freight charges which would be incurred in shipping the quantity
of the commodity from Minneapolis to Chicago (based on the
proportional rate applicable in connection with such "short-
rate" Freight Bills) and the freight charges for such shipment
based on the minimum proportional tariff rate applicable in
connection with Freight Bills other than "short-rate" Freight
Bills showing shipment from points of origin as of the same date
as the "short-rate" Freight Bills furnished.
(b) Compensation in Lieu of Freight Bills or order equivalent
tonnage. A certified check or other acceptable payment may be
substituted for Freight Bills provided it is in an amount equal
to the difference between the freight charges which would be
incurred in shipping the commodity from Minneapolis to Chicago
based on the flat tariff rate effective as of the date of
loading for rail shipment and the charges for such shipment
based on the minimum proportional tariff rate effective as of
the same date.
(3) Due Bills issued by the Western Weighing and Inspection Bureau may
be used when necessary in lieu of Freight Bills that conform to the
provisions of this Regulation. Such Due Bills may be surrendered by
the seller to the party loading out delivery grain by rail when such
Freight Bills are not yet available because of the unloading of the
commodity into an elevator during the last few days of the delivery
month or on the delivery of "Track" grain. Such Due Bills shall
specify the date, origin and rate of the Freight Bills in lieu of
which they are issued and shall be completely filled out except for
the signature.
1029
(4) The term Freight Bills as used in this Regulation means the recorded
inbound paid Freight Bills, authorized duplicates thereof, or
tonnage credit slips, conforming to the rules and regulations of
Western Trunk Line Tariff No. 331-Z, Fred Ofcky, Agent, ICC No. A-
4774, amendments thereto or reissues thereof.
C. Wheat (Toledo and St. Louis delivery). The warehouseman is not required
to furnish transit billing on wheat represented by warehouse receipts
delivery in Toledo, Ohio, St. Louis, Missouri, East St. Louis, Illinois,
or Alton, Illinois. Delivery shall be flat.
D. Corn. See Regulation C1081.01(14)-Billing for Corn futures contracts.
E. Soybeans. See Regulation S1081.01(14)-Billing for Soybean futures
contracts.
F. Wheat, Corn, Soybeans and Oats (Burns Harbor Delivery). When grain
represented by warehouse receipts delivered in Burns Harbor is ordered
out for shipment by rail, it will be the obligation of the party making
delivery to protect the Chicago rail rate, if lower, which would apply
to the owner's destination had a like kind and quantity of grain
designated on warehouse receipts been loaded out and shipped from a
regular warehouse located in the Chicago Switching District. If grain is
loaded out and shipped to an industry in the Chicago Switching District,
the party making delivery will protect the minimum, crosstown switch
charge in the Chicago Switching District.
When rail loading orders are submitted, the party taking delivery shall
state in writing if he elects to receive the applicable rail rates from
Burns Harbor or Chicago. If the party taking delivery specifies Burns
Harbor, the party making delivery will load rail cars at the Burns
Harbor warehouse and will not be required to protect the Chicago rates.
If the party taking delivery specifies Chicago rates, the party making
delivery will declare on the day that the grain is ordered out for
shipment by rail, the warehouse at which the grain will be made
available, which is operated by the party making delivery and is located
either in the Burns Harbor or the Chicago Switching Districts. If the
declared warehouse is located in the Chicago Switching District, the
party making delivery will provide only that billing specified in
Regulation 1081.01(14)A.
However, if the declared warehouse is located in Burns Harbor and the
rail rate from Chicago or the minimum Chicago crosstown switch charge
requires protection, the party making delivery will compensate the party
taking delivery. The compensation shall be in an amount equivalent to
the difference of the freight charges from Burns Harbor and the freight
charges which would be applicable had the grain been loaded at and
shipped from a warehouse located in the Chicago Switching District to
the owner's destination.
(15) Persons operating regular warehouses or shipping stations shall be subject
to the Exchange's Rules and Regulations pertaining to arbitration
procedures, as set forth in Chapter 6, and, with respect to compliance with
Rules and Regulations pertaining to a warehouse's or shipper's regularity,
shall be subject to the Exchange's Rules and Regulations pertaining to
disciplinary procedures, as set forth in Chapter 5.
(16) Persons operating regular warehouses or shipping stations shall consent to
the disciplinary
jurisdiction of the Exchange for five years after such regularity lapses,
for conduct pertaining to regularity which occurred while the warehouse or
shipping station was regular.
(17) The Exchange may determine not to approve warehouses or shipping stations
for regularity or increases in regular capacity of existing regular
warehouses or shipping stations, in its sole discretion, regardless of
whether such warehouses or shipping stations meet the preceding
requirements and conditions. Some factors that the Exchange may, but is not
required to, consider in exercising its discretion may include, among
others, whether receipts or shipping certificates issued by such warehouses
or shipping stations, if tendered in satisfaction of futures contracts,
might be expected to adversely affect the price discovery function of
futures contracts or impair the efficacy of futures trading in the relevant
market, or whether the currently approved regular capacity provides for an
adequate deliverable supply. (08/01/04)
1081.01A Inspection - Chicago Elevators - Any Grain Warehouses in Chicago,
regular for the delivery of grain under the Rules and Regulations of the
Association, shall require inbound and outbound inspections as mandated by the
U.S. Grain Standards Act and/or the U.S. Warehouse Act.
Nothing herein shall negate the rights of persons shipping grain into or out of
such Warehouses to request and obtain on such grain official sample lot
inspections as defined in the U.S. Grain Standards Act, and such inspections or
any appeal therefrom, shall be the settlement grade.
When grain is delivered in satisfaction of warehouse or shipping certificate,
receipts, the holder of the warehouse receipts or shipping certificates shall be
entitled to an official sample lot inspection as defined in the U.S. Grain
Standards Act unless otherwise agreed. 3R (03/01/00)
1081.01B Billing When Grain is Loaded Out - The Board makes the following
interpretations:
1. Is it then the obligation of the operator of the elevator to have such
billing on hand backing all deliveries -or only (as the Regulation seems to
state) when such grain is loaded out?
The Regulations are explicit in stating that billing need be available when
such grain is loaded out. The warehouseman makes the decision and takes the
risk at the time of delivery and any time until the grain is ordered loaded
if he does not have billing.
2. What is meant by equities?
Equities are defined in the Regulation and do not include values occasioned
by changes in freight rates as they would apply to the outboard movement.
43R (09/01/94)
1081.01C Car of Specified Capacity - Where a seller of an 80,000 Ib. capacity
car shows conclusively that an 80,000 Ib. capacity car was ordered, and the
railroad for its own convenience provided a 100,000 Ib. capacity car, the basis
for settlement should be the same as though an 80,000 Ib. capacity car had been
supplied. 14R (09/01/94)
1082.00 Insurance - Grain covered by warehouse receipts tendered for delivery
must be insured against the contingencies provided for in a standard "All Risks"
policy (including earthquake) to such an extent and in such amounts as required
by the Board of Directors. It shall be the duty of the operators of all regular
warehouses to furnish the Exchange with either a copy of the current insurance
policy or policies, or a written confirmation from the insurance company that
such insurance has been effected. 292 (08/01/96)
1082.00A Insurance - The warehouseman shall insure grain and soybeans covered
by warehouse receipts tendered for delivery against the contingencies provided
for in the standard "All Risks" policy (including earthquakes). (09/01/94)
1083.00 Variation Allowed - Deliveries of grain in store may vary not more
than one percent from the quantity contracted for: provided, however, that no
lot in any one warehouse shall contain less than 5,000 bushels of any one grade.
291 (09/01/94)
1083.01 Excess or Deficiency in Quantity - In the load-out of grain from an
elevator or warehouse, the quantity of gross grain covered by the warehouse
receipt shall be loaded out, and any excess or deficiency between the quantity
of net grain loaded out and the quantity of net grain covered by the warehouse
receipt shall be paid for to or by (as the case may be) the elevator or
warehouse proprietor or manager at the average market price on the day of load-
out: the buyer to pay storage on the net weight covered by the warehouse
receipt. In the event that in the final out-turn there is a shortage in the
gross quantity called for in the receipt, the net quantity of grain required by
the receipt shall be the factor in settlement, and any variation therefrom in
the net amount of grain loaded out against the receipt shall be paid for by the
elevator or warehouse proprietor or manager to the owner of the receipt at the
average market price on the day of load-out. In the load-out of grain the gross
quantity of grain, which includes dockage shall not exceed the net quantity by
more than one percent.
Ch10 Regularity of Warehouses
-----------------------------
1640 (09/01/94)
1084.01 Revocation, Expiration or Withdrawal of Regularity - Any regular
warehouse or shipper may be declared by the Business Conduct Committee, or
pursuant to Regulation 540.10, the Hearing Committee to be irregular at any time
if it does not comply with the conditions above set forth. If the designation of
a warehouse or shipper as regular shall be revoked, a notice shall be posted on
the bulletin board announcing such revocation and also the period of time, if
any, during which the receipts or certificates issued by such house or shipper
shall thereafter be deliverable in satisfaction of futures contracts under the
Rules and Regulations.
In the event of revocation, expiration or withdrawal of regularity, or in the
event of sale or abandonment of the properties where regularity is not reissued,
holders of outstanding warehouse or shipping certificates receipts shall be
given thirty days to take load-out of the commodity from the facility. If a
holder of an outstanding warehouse receipt or shipping certificate chooses not
to take load-out during this period, the facility must provide him with another
warehouse receipt or shipping certificate at another, mutually acceptable
regular warehouse or shipping station, with adjustments for differences in
-
contract differentials. Alternatively, if such warehouse receipt or shipping
certificate is unavailable, the facility must provide the holder with 0an
equivalent quantity and quality of the grain designated in the warehouse receipt
or shipping certificate at a mutually acceptable location. 1621 (03/01/00)
1085.01 Application for Declaration of Regularity - All applications by
operators of warehouses for a declaration of regularity under Regulation 1081.01
shall be on the following form:
WAREHOUSEMAN'S APPLICATION FOR A DECLARATION OF REGULARITY FOR CONTRACTS FOR
FUTURE DELIVERY UNDER THE RULES AND REGULATIONS OF THE BOARD OF TRADE OF THE
CITY OF CHICAGO, INC. FOR THE DELIVERY
OF_______________________
(List Wheat, Oats or both)
_________________
Date
BOARD OF TRADE OF THE CITY OF CHICAGO, INC
Chicago, Illinois
______________________(hereinafter called the "Warehouseman") owner/lessee*
(Warehouseman Name) (Circle one)
of a warehouse located at _____________________________________________ hereby
(Address, City, State, Zip)
submits this application to the Board of Trade of the City of Chicago, Inc.
(hereinafter called "Exchange") for a Declaration of Regularity to issue
Warehouse Receipts for delivery of _____________________________ upon contracts
(List Wheat, Oats, or both)
for future delivery for a period beginning on July 1, 20__ and ending Midnight
June 30, 20__.
The Warehouseman has a storage capacity of ______________________________bushels
of grain. If multiple warehouses exist at the location listed above, please
indicate the name of the elevator.
Name of Elevator: _________________________________________.
*Please include a copy of the lease or service agreement with application.
Conditions of Regularity
A declaration of regularity, if granted, may be revoked by the Exchange whenever
the following conditions, or any other applicable conditions specified in
Regulation 1081.01, or any other relevant Rules and Regulations are not
observed:
1. The Warehouseman must:
(1) submit bonds or letters of credit to the Exchange as it may require.
(2) submit to the Exchange a tariff listing in detail the rates for the
handling and storage of grain; submit promptly to the Exchange all
changes in such tariff; and publish and display such tariff.
The maximum storage rates on Wheat and Oats shall not exceed the
storage rates defined in Regulation 1056.01. The maximum load-out
charge shall not exceed the load-out charge defined in Regulation
1081.01(11).
(3) remove no CBOT registered Wheat and/or Oats from the warehouse
unless the warehouse receipts have been previously cancelled by the
Registrar's Office.
(4) notify the Exchange immediately of any change in its capital
ownership, or any reduction in net worth of 20 percent or more from
the level reported in the last financial statement filed with the
Exchange, or of any change in the physical condition of the
warehouse.
(5) make such reports, keep such records, and permit such warehouse
visitation as the Exchange or the Commodity Futures Trading
Commission (CFTC) may require; and comply with all applicable Rules
and Regulations of the Exchange and the CFTC.
(6) insure against the contingencies provided for in a standard "All
Risks" policy (including earthquake), in such amounts as required by
the Exchange.
(7) submit an application for renewal of a declaration of regularity in
writing on or before May 1/st/ every even year.
(8) if the Warehouseman leases the warehouse or has entered into some
form of service agreement pursuant to which an agent or contractor
performs the daily operations of the warehouse, Warehouseman remains
responsible for compliance with all duties and conditions of
regularity and shall be responsible for the conduct of its agents or
contractors.
2. The Warehouse must be:
(1) subject to the prescribed examination and approval of the Exchange.
(2) Equipped with standard equipment and appliances for the convenient
and expeditious handling of grains in bulk.
3. The Warehouse and Warehouseman must conform to the requirements of the
Exchange as to location, accessibility and suitability as may be prescribed
by the Rules and Regulations of the Exchange.
AGREEMENTS OF WAREHOUSEMAN
The Warehouseman expressly agrees:
(1) that all grain tendered in satisfaction of futures contracts shall be
weighed by an Official Weigher. An Official Weigher shall be a person
or agency approved by the Exchange.
(2) that all warehouse receipts to be tendered in satisfaction of futures
contracts will be registered with the Registrar of the Exchange.
(3) to abide by all of the Rules and Regulations of the Exchange relating
to the warehousing of commodities deliverable in satisfaction of
futures contracts and the delivery thereof, including the duties set
forth in Regulation 1081.01, as applicable.
(4) to designate a clearing agent in Chicago authorized to act upon the
Warehouseman's behalf in matters pertaining to Warehouse Receipts.
(5) that the Exchange may revoke the Warehouseman's declaration of
regularity if granted, for any breach of these agreements.
(6) that the signing of this application constitutes a representation
that the conditions of regularity are complied with and will be
observed during the life of the declaration of regularity and, if
found to be untrue, the Exchange shall have the right to revoke the
declaration of regularity immediately.
(7) to be subject to the Exchange's Rules and Regulations, the
disciplinary procedures set forth in Chapter 5, and the arbitration
procedures set forth in Chapter 6, and to abide by and comply with
the terms of any disciplinary decision imposed upon the Warehouseman
or any arbitration award issued against it pursuant to the Exchange's
Rules and Regulations.
(8) to consent to the disciplinary jurisdiction of the Exchange for five
years after regularity lapses for conduct which occurred while the
Warehouseman was regular.
Please be advised that, pursuant to Regulation 1081.01 (17), the Exchange may
determine not to approve warehouses for regularity or increases in regular
capacity of existing regular warehouses in its sole discretion, regardless of
whether such warehouses meet the conditions of regularity specified in
Regulation 1081.01. Some factors the Exchange may, but is not required to,
consider in exercising its discretion may include, among others, whether
warehouse receipts issued by such warehouses, if tendered in satisfaction of
futures contracts, might be expected to adversely affect the price discovery
function of the Wheat or Oats futures contracts or impair the efficacy of
futures trading in Wheat or Oats, or whether the currently approved regular
capacity provides for an adequate deliverable supply.
__________________________________________________
(Name)
__________________________________________________
(Title)
__________________________________________________
(Date)
(03/01/04)
1031
1086.01 Federal Warehouses - In compliance with Section 5a, subparagraph (7)
of Commodity Exchange Act, receipts for grain stored in elevators (listed as
Federally licensed in Appendices 10A, 10B, 10C, 10D and 10E) licensed under the
United States Warehouse Act of August 11, 1916, as amended will be deliverable
in satisfaction of futures contracts. 1829 (09/01/94)
================================================================================
Chapter 10C
Corn Futures
================================================================================
[Enlarge/Download Table]
Ch10C Trading Conditions........................................................................
C1001.01 Application of Regulations..................................................
C1004.01 Unit of Trading.............................................................
C1005.01 Months Traded in............................................................
C1006.01 Price Basis.................................................................
C1007.01 Hours of Trading............................................................
C1008.01 Trading Limits..............................................................
C1009.01 Last Day of Trading.........................................................
C1010.01 Margin Requirements.........................................................
C1012.01 Position Limits and Reportable Positions....................................
Ch10C Delivery Procedures.......................................................................
C1036.00 Grade Differentials.........................................................
C1036.01 Location Differentials......................................................
C1038.01 Grades......................................................................
C1041.01 Delivery Points.............................................................
C1043.01 Deliveries..................................................................
C1043.02 Registration of Corn Shipping Certificates..................................
C1046.01 Location for Buying or Selling Delivery Instruments.........................
C1047.01 Delivery Notices............................................................
C1048.01 Method of Delivery..........................................................
C1049.01 Time of Delivery, Payment, Form of Delivery Notice..........................
C1049.02 Time of Issuance of Delivery Notice.........................................
C1049.03 Buyer's Report of Eligibility to Receive Delivery...........................
C1049.04 Seller's Invoice to Buyers..................................................
C1049.05 Payment.....................................................................
C1050.01 Duties of Members...........................................................
C1050.02 Failure to Deliver..........................................................
C1051.01 Office Deliveries Prohibited................................................
C1054.01 Failure to Accept Delivery..................................................
C1056.01 Payment of Premium Charges..................................................
Ch10C Regularity of Issuers of Shipping Certificates............................................
C1081.01 Regularity of Warehouses and Issuers of Shipping Certificates...............
C1081.01A Inspection..................................................................
C1081.01B Billing When Grain is Loaded Out............................................
C1081.01C Car of Specified Capacity...................................................
C1082.01 Insurance...................................................................
C1083.01 Variation Allowed...........................................................
C1083.02 Excess or Deficiency in Quantity............................................
C1084.01 Revocation, expiration or Withdrawal of Regularity..........................
C1085.01 Application for Declaration of Regularity...................................
C1086.01 Federal Warehouses..........................................................
Ch10C Trading Conditions
C1001.01 Application of Regulations - Transactions in Corn futures shall be
subject to the General Rules of the Association as far as applicable and shall
also be subject to Regulations contained in this chapter which are exclusively
applicable to trading in Corn. (08/01/98)
C1004.01 Unit of Trading - (see 1004.00) (08/01/98)
C1005.01 Months Traded in - (see 1005.01A) (08/01/98)
C1006.01 Price Basis - (see 1006.00 and 1006.01) (08/01/98)
C1007.01 Hours of Trading - (see 1007.00 and 1007.02) (08/01/98)
C1008.01 Trading Limits - (see 1008.01 and 1008.02) (08/01/98)
C1009.01 Last Day of Trading - (see 1009.02) (08/01/98)
C1010.01 Margin Requirements - (see 431.03) (08/01/98)
C1012.01 Position Limits and Reportable Positions - (see 425.01) (08/01/98)
1001C
Ch10C Delivery Procedures
C1036.00 Grade Differentials - (see 1036.00) (08/01/98)
C1036.01 Location Differentials - Corn for shipment from regular shipping
stations located within the Chicago Switching District or the Burns Harbor,
Indiana Switching District may be delivered in satisfaction of Corn futures
contracts at contract price, subject to the differentials for class and grade
outlined above. Corn for shipment from regular shipping stations located within
the Lockport-Seneca Shipping District may be delivered in satisfaction of Corn
futures contracts at a premium of 2 cents per bushel over contract price,
subject to the differentials for class and grade outlined above. Corn for
shipment from regular shipping stations located within the Ottawa-Chillicothe
Shipping District may be delivered in satisfaction of Corn futures contracts at
a premium of 2 1/2 cents per bushel over contract price, subject to the
differentials for class and grade outlined above. Corn for shipment from regular
shipping stations located within the Peoria-Pekin Shipping District may be
delivered in satisfaction of Corn futures contracts at a premium of 3 cents per
bushel over contract price, subject to the differentials for class and grade
outlined above. (08/01/98)
C1038.01 Grades- (see 1038.00 and 1038.01) (08/01/98)
C1041.01 Delivery Points - Corn Shipping Certificates shall specify shipment
from one of the warehouses or shipping stations currently regular for delivery
and located in one of the following territories:
A. Chicago and Burns Harbor, Indiana Switching District - When used in
these Rules and Regulations, the Chicago Switching District will be
that area geographically defined by Tariff ICC WTL 8020-Series and
that portion of the Illinois Waterway at or above river mile 304 which
includes the Calumet Sag Channel and the Chicago Sanitary & Ship
Canal. When used in these Rules and Regulations, Burns Harbor, Indiana
Switching District will be that area geographically defined by the
boundaries of Burns Waterway Harbor at Burns Harbor, Indiana which is
owned and operated by the Indiana Port Commission.
B. Lockport-Seneca Shipping District - When used in these Rules and
Regulations, the Lockport-Seneca Shipping District will be that
portion of the Illinois Waterway below river mile 304 at the junction
of the Calumet Sag Channel and the Chicago Sanitary & Ship Canal and
above river mile 244.6 at the Marseilles Lock and Dam.
C. Ottawa-Chillicothe Shipping District - When used in these Rules and
Regulations, the Ottawa-Chillicothe Shipping District will be that
portion of the Illinois Waterway below river mile 244.6 at the
Marseilles Lock and Dam and at or above river mile 170 between
Chillicothe and Peoria, IL.
D. Peoria-Pekin Shipping District - When used in these Rules and
Regulations, the Peoria-Pekin Shipping District will be that portion
of the Illinois Waterway below river mile 170 between Chillicothe and
Peoria, IL and at or above river mile 151 at Pekin, IL.
(11/01/01)
C1043.01 Deliveries by Corn Shipping Certificate - (see 1043.01) (08/01/98)
C1043.02 Registration of Corn Shipping Certificates - (see 1043.02) (08/01/98)
C1046.01 Location for Buying or Selling Delivery - (see 1046.00A) (08/01/98)
Instruments
C1047.01 Delivery Notices - (see 1047.01) (08//01/98)
C1048.01 Method of Delivery - (see 1048.01) (08/01/98)
C1049.01 Time of Delivery, Payment, Form of Delivery - (see 1049.00) (08/01/98)
Notice
C1049.02 Time of Issuance of Delivery Notice - (see 1049.01) (08/01/98)
C1049.03 Buyer's Report of Eligibility to Receive Delivery - (see 1049.02)
(08/01/98)
C1049.04 Seller's Invoice to Buyers' - (see 1049.03) (08/01/98)
C1049.05 Payment - Payment shall be made utilizing the electronic delivery
system via the Clearing Services Provider's Online System. Payment will be made
during the 6:45 a.m. collection cycle or such other time designated by the
Exchange. Thus the cost of the delivery will be debited or credited to a
clearing firms settlement account. Buyers obligated to accept delivery must take
delivery and make payment and sellers obligated to make delivery must make
delivery during the 6:45 a.m. settlement process, or such other time designated
by the Exchange, on the day of delivery, except on banking holidays when
delivery must be taken or made and payment made during the 6:45 a.m. settlement
process, or such other time designated by the Exchange, on the next banking
business day. (12/01/03)
C1050.01 Duties of Members - (see 1050.00) (08/01/98)
C1050.02 Failure to Deliver - (see 1050.01) (12/01/03)
C1051.01 Office Deliveries Prohibited - (see 1051.01)
C1054.01 Failure to Accept Delivery - (see 1054.00, 1054.00A and 1054.01)
(12/01/03)
C1056.01 Payment of Premium Charges - (see 1056.01) (11/01/01)
Ch10C Regularity of Issuers of Shipping Certificates
C1081.01 Regularity of Warehouses and Issuers of Shipping Certificates -Persons
operating grain warehouses or shippers who desire to have such warehouses or
shipping stations made regular for the delivery of grain under the Rules and
Regulations shall make application for an initial Declaration of Regularity on a
form prescribed by the Exchange prior to May 1, 1994, and every even year
thereafter, for a two-year term beginning July 1, 1994, and every even year
thereafter, and at any time during a current term for the balance of that term.
Regular grain warehouses or shippers who desire to increase their regular
capacity during a current term shall make application for the desired amount of
total regular capacity on the same form. Initial regularity for the current term
and increases in regularity shall be effective either thirty days after a notice
that a bona fide application has been received is posted on the floor or the
exchange, or the day after the application is approved by the Exchange,
whichever is later. Applications for a renewal of regularity shall be made prior
to May 1, 1994, and every even year thereafter, for the respective years
beginning July 1, 1994, and every even year thereafter, and shall be on the same
form.
The following shall constitute the requirements and conditions for
regularity:
(1) The warehouse or shipping station making application shall be
inspected by the Registrar or the United States Department of
Agriculture. Where application is made to list as regular a warehouse
which is not regular at the time of such application, the applicant
may be required to remove all grain from the warehouse and to permit
the warehouse to be inspected and the grain graded, after which such
grain may be returned to the warehouse and receipts issued therefor.
The operator of a shipping station issuing Corn Shipping Certificates shall
limit the number of Shipping Certificates issued to an amount not to
exceed:
(a) 20 times his registered total daily rate of loading barges, or in
the case of Chicago, Illinois and Burns Harbor, Indiana Switching
Districts, his registered storage capacity,
(b) and a value greater than 50 percent of the operator's net
worth.
The shipper issuing Corn Shipping Certificates shall register his total daily
rate of loading barges at his maximum 8 hour loadout capacity in
amount not less than:
(a) one barge per day at each shipping station within the Lockport-Seneca
Shipping District, within the Ottawa-Chillicothe Shipping District,
within the Peoria-Pekin Shipping District, within the Havana-Grafton
Shipping District, and within the St. Louis-East St. Louis and Alton
Switching Districts, and
(b) three barges per day at each shipping station in the Chicago, Illinois
and Burns Harbor, Indiana Switching District.
(2) Shippers located in the Chicago, Illinois and Burns Harbor, Indiana
Switching District shall be connected by railroad tracks with one or
more railway lines.
C1081.01(3) through C1081.01(12)G(8) - (see 1081.01(3) through 1081.01(12)G(8))
C1081.01(12)G(9) In the event that it has been announced, by the U.S. Coast
Guard, after consulting with the Army Corps of Engineers and the River Industry
Action Committee, that river traffic will be obstructed for a period of fifteen
days or longer as a result of one of the conditions of impossibility listed in
regulation 1081.01(12)(G)(8) and in the event that the obstruction will affect a
majority of regular shipping stations, then the following barge load-out
procedures for Corn shall apply to shipping stations upriver from the
obstruction:
(a) The maker and taker of delivery may negotiate mutually agreeable
terms of performance.
(b) If the maker and/or the taker elect not to negotiate mutually
agreeable terms of performance, then the maker is obligated to
provide the same quantity and like quality of grain pursuant to
the terms of the shipping certificate(s) with the following
exceptions and additional requirements:
(i) The maker must provide loaded barge(s) to the taker on the
Illinois River between the lowest closed lock and St.
Louis, inclusive, or on the Mid-Mississippi River between
Lock 11 at Dubuque, Iowa and St. Louis, inclusive.
(ii) The loaded barge(s) provided to the taker must have a
value equivalent to C.I.F. NOLA, with the maker of
delivery responsible for the equivalent cost, insurance
and freight.
(iii) The taker of delivery shall pay the maker 18 cents per
bushel for Chicago and Burns Harbor Switching District
shipping certificates, 16 cents per bushel for Lockport-
Seneca District shipping certificates, 15 1/2 cents per
bushel for Ottawa-Chillicothe District shipping
certificates, and 15 cents per bushel for Peoria-Pekin
District shipping certificates, as a reimbursement for the
cost of barge freight.
(c) In the event that the obstruction or condition of impossibility
listed in regulation 1081.01(12)(G)(8) will affect a majority of
regular shipping stations, but no announcement of the anticipated
period of obstruction is made, then shipment may be delayed for
the number of days that such impossibility prevails.
C1081.01(13) Location - For the delivery of Corn, regular warehouses or shipping
stations may be located within the Chicago Switching District or within the
Burns Harbor, Indiana Switching District or within the Lockport-Seneca Shipping
District or within the Ottawa-Chillicothe Shipping District or within the
Peoria-Pekin Shipping District.
No such warehouse or shipping station within the Chicago Switching
District shall be declared regular unless it is conveniently approachable by
vessels of ordinary draft and has customary shipping facilities. Ordinary draft
shall be defined as the lesser of (1) channel draft as recorded in the Lake
Calumet Harbor Draft Gauge, as maintained by the Corps of Engineers, U.S. Army,
minus one (1) foot, or (2) 20 feet.
Delivery in Burns Harbor must be made "in store" in regular elevators or by
shipping certificate at regular shipping stations providing water loading
facilities and maintaining water depth equal to normal seaway draft of 27 feet.
In addition, deliveries of grain may be made in regular elevators or shipping
stations within the Burns Harbor Switching District PROVIDED that:
(a) When grain represented by shipping certificates is ordered out
for shipment by a barge, it will be the obligation of the party
making delivery to protect the barge freight rate from the
Chicago Switching District (i.e. the party making delivery and
located in the Burns Harbor Switching District will pay the party
taking delivery an amount equal to all expenses for the movement
of the barge from the Chicago Switching District, to the Burns
Harbor Switching District and the return movement back to the
Chicago Switching District).
If inclement weather conditions make the warehouse or shipping
station located in the Burns Harbor Switching District unavailable
for barge loadings for a period of five or more calendar days, the
party making delivery will make grain available on the day following
this five calendar day period to load into a barge at one mutually
agreeable water warehouse or shipping station located in the Chicago
Switching District; PROVIDED that the party making delivery is
notified on the first day of that five-day period of inclement
weather that the barge is available for movement but cannot be moved
from the Chicago Switching District to the Burns Harbor Switching
District, and is requested on the last day of this five day calendar
period in which the barge cannot be moved.
(b) When grain represented by shipping certificates is ordered out for
shipment by vessel, and the party taking delivery is a recipient of a
split delivery of grain between a warehouse or shipping station
located in Burns Harbor and a warehouse or shipping station in
Chicago, and the grain in the Chicago warehouse or shipping station
will be loaded onto this vessel; it will be the obligation of the
party making delivery at the request of the party taking delivery to
protect the holder of the shipping certificates against any
additional charges resulting from loading at one berth in the Burns
Harbor Switching District and at one berth in the Chicago Switching
District as compared to a single berth loading at one location. The
party making delivery, at his option, will either make the grain
available at one water warehouse or shipping station operated by the
party making delivery and located in the Chicago Switching District
for loading onto the vessel, make grain available at the warehouse or
shipping station in Burns Harbor upon the surrender of shipping
certificates issued by other regular elevators or shipping stations
located in the Chicago Switching District at the time vessel loading
orders are issued, or compensate the party taking delivery in an
amount equal to all applicable expenses, including demurrage charges,
if any, for the movement of the vessel between a berth in the other
switching district. On the day that the grain is ordered out for
shipment by vessel, the party making delivery will declare the
regular warehouse or shipping station in which the grain will be
available for loading.
Delivery within the Lockport-Seneca Shipping District or within the
Ottawa-Chillicothe Shipping District or within the Peoria-Pekin
Shipping District or within the Havana-Grafton Shipping District must
be made at regular shipping stations providing water loading
facilities and maintaining water depth equal to the draft of the
Illinois River maintained by the Corps of Engineers.
C1081.01(14) Billing - (see 1081.01(14)A and 1081.01(14)F)
C1081.01(15) through C1081.01(17) - (see 1081.01(15) through 1081.01(17))
(01/01/04)
C1081.01A Inspection - (see 1081.01A) (08/01/98)
C1081.01B Billing When Grain is Loaded Out - (see 1081.01B) (08/01/98)
C1081.01C Car of Specified Capacity - (see 1081.01C) (08/01/98)
C1082.01 Insurance - (see 1082.00) (08/01/98)
C1083.01 Variation Allowed - (see 1083.00) (08/01/98)
C1083.02 Excess or Deficiency in Quantity - (see 1083.01) (08/01/98)
C1084.01 Revocation, Expiration or Withdrawal of Regularity - (see 1084.01)
(08/01/98)
C1085.01 Application for Declaration of Regularity - (see 1085.01) (08/01/98)
C1086.01 Federal Warehouses - (see 1086.01) (08/01/98)
[Enlarge/Download Table]
=============================================================================================
Chapter 10S
Soybean Futures
=============================================================================================
Ch10S Trading Conditions..........................................................
S1001.01 Application of Regulations.........................................
S1004.01 Unit of Trading....................................................
S1005.01 Months Traded in...................................................
S1006.01 Price Basis........................................................
S1007.01 Hours of Trading...................................................
S1008.01 Trading Limits.....................................................
S1009.01 Last Day of Trading................................................
S1010.01 Margin Requirements................................................
S1012.01 Position Limits and Reportable Positions...........................
Ch10S Delivery Procedures.........................................................
S1036.00 Grade Differentials................................................
S1036.01 Location Differentials.............................................
S1038.01 Grades.............................................................
S1041.01 Delivery Points....................................................
S1043.01 Deliveries.........................................................
S1043.02 Registration of Soybean Shipping Certificates......................
S1046.01 Location for Buying or Selling Delivery Instruments................
S1047.01 Delivery Notices...................................................
S1048.01 Method of Delivery.................................................
S1049.01 Time of Delivery, Payment, Form of Delivery Notice.................
S1049.02 Time of Issuance of Delivery Notice................................
S1049.03 Buyer's Report of Eligibility to Receive
Delivery...........................................................
S1049.04 Seller's Invoice to Buyers.........................................
S1049.05 Payment............................................................
S1050.01 Duties of Members..................................................
S1050.02 Failure to Deliver.................................................
S1051.01 Office Deliveries Prohibited.......................................
S1054.01 Failure to Accept Delivery.........................................
S1056.01 Payment of Premium Charges.........................................
Ch10S Regularity of Issuers of Shipping...........................................
S1081.01 Regularity of Warehouses and Issuers of Shipping Certificates......
S1081.01A Inspection.........................................................
S1081.01B Billing When Grain is Loaded Out...................................
S1081.01C Car of Specified Capacity..........................................
S1082.01 Insurance..........................................................
S1083.01 Variation Allowed..................................................
S1083.02 Excess or Deficiency in Quantity...................................
S1084.01 Revocation, expiration or Withdrawal of Regularity.................
S1085.01 Application for Declaration of Regularity..........................
S1086.01 Federal Warehouses.................................................
================================================================================
Chapter 10S
Soybean Futures
================================================================================
Ch10S Trading Conditions
S1001.01 Application of Regulations - Transactions in Soybean futures shall be
subject to the General Rules of the Association as far as applicable and shall
also be subject to Regulations contained in this chapter which are exclusively
applicable to trading in Soybeans.
S1004.01 Unit of Trading - (see 1004.00) (08/01/98)
S1005.01 Months Traded in - (see 1005.01A) (08/01/98)
S1006.01 Price Basis - (see 1006.00 and 1006.01) (08/01/98)
S1007.01 Hours of Trading - (see 1007.00 and 1007.02) (08/01/98)
S1008.01 Trading Limits - (see 1008.01 and 1008.02) (08/01/98)
S1009.01 Last Day of Trading - (see 1009.02) (08/01/98)
S1010.01 Margin Requirements - (see 431.03) (08/01/98)
S1012.01 Position Limits and Reportable Positions - (see 425.01) (08/01/98)
Ch10S Delivery Procedures
-------------------------
S1036.00 Grade Differentials - (see 1036.00) (08/01/98)
S1036.01 Location Differentials - Soybeans for shipment from regular
shipping stations located within the Chicago Switching District or the Burns
Harbor, Indiana Switching District may be delivered in satisfaction of
Soybean futures contracts at contract price, subject to the differentials for
class and grade outlined above. Soybeans for shipment from regular shipping
stations located within the Lockport-Seneca Shipping District may be
delivered in satisfaction of soybean futures contracts at a premium of 2
cents per bushel over contract price, subject to the differentials for class
and grade outlined above. Soybeans for shipment from regular shipping
stations located within the Ottawa-Chillicothe Shipping District may be
delivered in satisfaction of Soybean futures contracts at a premium of 2 1/2
cents per bushel over contract price, subject to the differentials for class
and grade outlined above. Soybeans for shipment from regular shipping
stations located within the Peoria-Pekin Shipping District may be delivered
in satisfaction of Soybean futures contracts at a premium of 3 cents per
bushel over contract price, subject to the differentials for class and grade
outlined above. Soybeans for shipment from regular shipping stations located
within the Havana-Grafton Shipping District may be delivered in satisfaction
of soybean futures contracts at a premium of 3 1/2 cents per bushel over
contract price, subject to the differentials for class and grade outlined
above. Soybeans for shipment from regular shipping stations located in the
St. Louis-East St. Louis and Alton Switching Districts may be delivered in
satisfaction of Soybean futures contracts at a premium of 6 cents per bushel
over contract price, subject to the differentials for class and grade
outlined above. (08/01/98)
S1038.01 Grades - (see 1038.00 and 1038.01) (08/01/98)
S1041.01 Delivery Points - Soybean Shipping Certificates shall specify shipment
from one of the warehouses or shipping stations currently regular for delivery
and located in one of the following territories:
A. Chicago and Burns Harbor, Indiana Switching District - When used in
these Rules and Regulations, the Chicago Switching District will be
that area geographically defined by Tariff ICC WTL 8020-Series and
that portion of the Illinois Waterway at or above river mile 304 which
includes the Calumet Sag Channel and the Chicago Sanitary & Ship
Canal. When used in these Rules and Regulations, Burns Harbor,
Indiana Switching District will be that area geographically defined by
the boundaries of Burns Waterway Harbor at Burns Harbor, Indiana which
is owned and operated by the Indiana Port Commission.
B. Lockport-Seneca Shipping District - When used in these Rules and
Regulations, the Lockport-Seneca Shipping District will be that
portion of the Illinois Waterway below river mile 304 at the junction
of the Calumet Sag Channel and the Chicago Sanitary & Ship Canal and
above river mile 244.6 at the Marseilles Lock and Dam.
C. Ottawa-Chillicothe Shipping District - When used in these Rules and
Regulations, the Ottawa-Chillicothe Shipping District will be that
portion of the Illinois Waterway below river mile 244.6 at the
Marseilles Lock and Dam and at or above river mile 170 between
Chillicothe and Peoria, IL.
Ch10S Delivery Procedures
-------------------------
D. Peoria-Pekin Shipping District - When used in these Rules and
Regulations, the Peoria-Pekin Shipping District will be that portion
of the Illinois Waterway below river mile 170 between Chillicothe and
Peoria, IL and at or above river mile 151 at Pekin, IL.
E. Havana-Grafton Shipping District - When used in these Rules and
Regulations, the Havana-Grafton Shipping District will be that portion
of the Illinois Waterway below river mile 151 at Pekin, IL to river
mile 0 at Grafton, IL.
F. St. Louis-East St. Louis and Alton Switching Districts - When used in
these Rules and Regulations, St. Louis-East St. Louis and Alton
Switching Districts will be that portion of the upper Mississippi
River below river mile 218 at Grafton, IL and above river mile 170 at
Jefferson Barracks Bridge in south St. Louis, MO. (11/01/01)
S1043.01 Deliveries by Soybean Shipping Certificate - (see 1043.01) (08/01/98)
S1043.02 Registration of Soybean Shipping Certificates - (see 1043.02)
(08/01/98)
S1046.01 Location for Buying or Selling Delivery Instruments - (see 1046.00A)
(08/01/98)
S1047.01 Delivery Notices - (see 1047.01) (08//01/98)
S1048.01 Method of Delivery - (see 1048.01) (08/01/98)
S1049.01 Time of Delivery, Payment, Form of Delivery Notice - (see 1049.00)
(08/01/98)
S1049.02 Time of Issuance of Delivery Notice - (see 1049.01) (08/01/98)
S1049.03 Buyer's Report of Eligibility to Receive Delivery - (see 1049.02)
(08/01/98)
S1049.04 Seller's Invoice to Buyers - (see 1049.03) (08/01/98)
C1049.05 Payment - Payment shall be made utilizing the electronic delivery
system via the Clearing Services Provider's Online System. Payment will be made
during the 6:45 a.m. collection cycle or such other time designated by the
Exchange. Thus the cost of the delivery will be debited or credited to a
clearing firms settlement account. Buyers obligated to accept delivery must take
delivery and make payment and sellers obligated to make delivery must make
delivery during the 6:45 a.m. settlement process, or such other time designated
by the Exchange, on the day of delivery, except on banking holidays when
delivery must be taken or made and payment made during the 6:45 a.m. settlement
process, or such other time designated by the Exchange, on the next banking
business day. (12/01/03)
S1050.01 Duties of Members - (see 1050.00) (08/01/98) (see 1056.01) (11/01/01)
S1050.02 Failure to Deliver - (see 1050.01) (12/01/03)
S1051.01 Office Deliveries Prohibited - (see 1051.01)
S1054.01 Failure to Accept Delivery - (see 1054.00, 1054.00A and 1054.01)
(12/01/03)
S1056.01 Payment of Premium Charges - (see 1056.01) (11/01/01)
Ch10s Delivery Procedures
-------------------------
Ch10S Delivery Procedures
-------------------------
Ch10S Regularity of Issuers of Shipping
S1081.01 Regularity of Warehouses and Issuers of Shipping Certificates -
Persons operating grain warehouses or shippers who desire to have such
warehouses or shipping stations made regular for the delivery of grain under the
Rules and Regulations shall make application for an initial Declaration of
Regularity on a form prescribed by the Exchange prior to May 1, 1994, and every
even year thereafter, for a two-year term beginning July 1, 1994, and every even
year thereafter, and at any time during a current term for the balance of that
term. Regular grain warehouses or shippers who desire to increase their regular
capacity during a current term shall make application for the desired amount of
total regular capacity on the same form. Initial regularity for the current term
and increases in regularity shall be effective either thirty days after a notice
that a bona fide application has been received is posted on the floor or the
exchange, or the day after the application is approved by the Exchange,
whichever is later. Applications for a renewal of regularity shall be made prior
to May 1, 1994, and every even year thereafter, for the respective years
beginning July 1, 1994, and every even year thereafter, and shall be on the same
form.
The following shall constitute the requirements and conditions for
regularity:
(1) The warehouse or shipping station making application shall be
inspected by the Registrar or the United States Department of
Agriculture. Where application is made to list as regular a warehouse
which is not regular at the time of such application, the applicant
may be required to remove all grain from the warehouse and to permit
the warehouse to be inspected and the grain graded, after which such
grain may be returned to the warehouse and receipts issued therefor.
The operator of a shipping station issuing Soybean Shipping Certificates
shall limit the number of Shipping Certificates issued to an amount not to
exceed:
(a) 20 times his registered total daily rate of loading barges, or in
the case of Chicago, Illinois and Burns Harbor, Indiana Switching
Districts, his registered storage capacity,
(b) and a value greater than 50 percent of the operator's net worth.
The shipper issuing Soybean Shipping Certificates shall register his total
daily rate of loading barges at his maximum 8 hour loadout capacity in
amount not less than:
(a) one barge per day at each shipping station within the Lockport-Seneca
Shipping District, within the Ottawa-Chillicothe Shipping District,
within the Peoria-Pekin Shipping District, within the Havana-Grafton
Shipping District, and within the St. Louis-East St. Louis and Alton
Switching Districts, and
(b) three barges per day at each shipping station in the Chicago, Illinois
and Burns Harbor, Indiana Switching District.
(2) Shippers located in the Chicago, Illinois and Burns Harbor, Indiana
Switching District shall be connected by railroad tracks with one or
more railway lines.
S1081.01(3) through S1081.01(12)G(8) - (see 1081.01(3) through 1081.01(12)G(8))
Ch10S Delivery Procedures
-------------------------
S1081.01(12)G(9) In the event that it has been announced, by the U.S. Coast
Guard, after consulting with the Army Corps of Engineers and the River Industry
Action Committee, that river traffic will be obstructed for a period of fifteen
days or longer as a result of one of the conditions of impossibility listed in
regulation 1081.01(12)(G)(8) and in the event that the obstruction will affect a
majority of regular shipping stations, then the following barge load-out
procedures for soybeans shall apply to shipping stations upriver from the
obstruction:
(a) The maker and taker of delivery may negotiate mutually
agreeable terms of performance.
(b) If the maker and/or the taker elect not to negotiate
mutually agreeable terms of performance, then the maker
is obligated to provide the same quantity and like
quality of grain pursuant to the terms of the shipping
certificate(s) with the following exceptions and
additional requirements:
(i) The maker must provide loaded barge(s) to the
taker on the Illinois River between the lowest
closed lock and St. Louis, inclusive, or on the
Mid-Mississippi River between Lock 11 at
Dubuque, Iowa and St. Louis, inclusive.
(ii) The loaded barge(s) provided to the taker must
have a value equivalent to C.I.F. NOLA, with the
maker of delivery responsible for the equivalent
cost, insurance and freight.
(iii) The taker of delivery shall pay the maker 18
cents per bushel for Chicago and Burns Harbor
Switching District shipping certificates, 16
cents per bushel for Lockport-Seneca District
shipping certificates, 15 1/2 cents per bushel
for Ottawa-Chillicothe District shipping
certificates, 15 cents per bushel for Peoria-
Pekin District shipping certificates, and 14 1/2
cents per bushel for Havana-Grafton District
shipping certificates as a reimbursement for the
cost of barge freight.
(c) In the event that the obstruction or condition of
impossibility listed in regulation 1081.01(12)(G)(8)
will affect a majority of regular shipping stations,
but no announcement of the anticipated period of
obstruction is made, then shipment may be delayed for
the number of days that such impossibility prevails.
S1081.01(13) Location - For the delivery of Soybeans, regular warehouses or
shipping stations may be located within the Chicago Switching District or within
the Burns Harbor, Indiana Switching District or within the Lockport-Seneca
Shipping District or within the Ottawa-Chillicothe Shipping District or within
the Peoria-Pekin Shipping District or within the Havana-Grafton Shipping
District or in the St. Louis-East St. Louis and Alton Switching Districts.
No such warehouse or shipping station within the Chicago Switching
District shall be declared regular unless it is conveniently
approachable by vessels of ordinary draft and has customary shipping
facilities. Ordinary draft shall be defined as the lesser of (1)
channel draft as recorded in the Lake Calumet Harbor Draft Gauge, as
maintained by the Corps of Engineers, U.S. Army, minus one (1) foot, or
(2) 20 feet.
Delivery in Burns Harbor must be made "in store" in regular elevators or
by shipping certificate at regular shipping stations providing water
loading facilities and maintaining water depth equal to normal seaway
draft of 27 feet.
In addition, deliveries of grain may be made in regular elevators or
shipping stations within the Burns Harbor Switching District PROVIDED
that:
(a) When grain represented by shipping certificates is ordered out for
shipment by a barge, it will be the obligation of the party making
delivery to protect the barge freight rate from the Chicago
Switching District (i.e. the party making delivery and located in
the Burns Harbor Switching District will pay the party taking
delivery an amount equal to all expenses for the movement of the
barge from the Chicago Switching District, to the Burns Harbor
Switching District and the return movement back to the Chicago
Shipping District).
If inclement weather conditions make the warehouse or shipping
station located in the Burns Harbor Switching District unavailable
for a period of five or more calendar days, the party making the
delivery will make grain available on the day following this five
calendar day period to load into a barge at one mutually agreeable
water warehouse or shipping station located in the Chicago Switching
District; PROVIDED that the party making delivery is notified on the
first day of that five-day period of inclement weather that the
barge is available for movement but cannot be moved form the Chicago
Switching District to the Burns Harbor Switching District, and is
requested on the last day of this five day calendar period in which
the barge cannot be moved.
(b) When grain represented by shipping certificates is ordered out for
shipment by vessel, and the party taking delivery is a recipient of
a split delivery of grain between a warehouse or shipping station
located in Burns Harbor and a warehouse or shipping station in
Chicago, and the grain in the Chicago warehouse or shipping station
will be loaded onto this vessel; it will be the obligation of the
party making delivery at the request of the party taking delivery to
protect the holder of the shipping certificates against any
additional charges resulting from loading at one berth in the Burns
Harbor Switching District and at one berth in the Chicago Switching
District as compared to a single berth loading at one location. The
party making delivery, at his option, will either make the grain
available at one water warehouse or shipping station operated by the
party making delivery and located in the Chicago Switching District
for loading onto the vessel, make grain available at the warehouse
or shipping station in Burns Harbor upon the surrender of shipping
certificates issued by other regular elevators or shipping stations
located in the Chicago Switching District at the time vessel loading
orders are issued, or compensate the party taking delivery in an
amount equal to all applicable expenses, including demurrage
charges, if any, for the movement of the vessel between a berth in
the other switching district. On the day that the grain is ordered
out for shipment by vessel, the party making delivery will declare
the regular warehouse or shipping station in which the grain will be
available for loading.
Delivery within the Lockport-Seneca Shipping District or within the
Ottawa-Chillicothe Shipping District or within the Peoria-Pekin
Shipping District or within the Havana-Grafton Shipping District
must be made at regular shipping stations providing water loading
facilities and maintaining water depth equal to the draft of the
Illinois River maintained by the Corps of Engineers.
Delivery in the St. Louis-East St. Louis and Alton Switching
District must be made at regular shipping stations providing water
loading facilities and maintaining water depth equal to the draft of
the Mississippi River maintained by the Corps of Engineers.
(12/01/00)
S1081.01(14) Billing - (see 1081.01(14)A and 1081.01(14)F)
S1081.01(15) through S1081.01(17) - (see 1081.01(15) through 1081.01(17))
(01/01/04)
S1081.01A Inspection - (see 1081.01A) (08/01/98)
S1081.01B Billing When Grain is Loaded Out - (see 1081.01B) (08/01/98)
S1081.01C Car of Specified Capacity - (see 1081.01C) (08/01/98)
S1082.01 Insurance - (see 1082.00) (08/01/98)
Ch10S Regularity of Issuers of Shipping
---------------------------------------
S1083.01 Variation Allowed - (see 1083.00) (08/01/98)
S1083.02 Excess or Deficiency in Quantity - (see 1083.01) (08/01/98)
S1084.01 Revocation, Expiration or Withdrawal of Regularity - (see 1084.01)
(08/01/98)
S1085.01 Application for Declaration of Regularity - (see 1085.01) (08/01/98)
S1086.01 Federal Warehouses - (see 1086.01) (08/01/98)
S1086.01 Federal Warehouses - (see 1086.01) (08/01/98)
1009S
Chapter 10mC
CBOT(R) MINI-SIZED CORN FUTURES
[Download Table]
Ch10mC Trading Conditions ..................................................... 1002
mC1001.01 Authority .................................................... 1002
mC1002.01 Application of Regulations ................................... 1002
mC1003.01 Derivative Markets ........................................... 1002
mC1004.01 Unit of Trading .............................................. 1002
mC1007.01 Months Traded In ............................................. 1002
mC1006.01 Price Basis .................................................. 1002
mC1007.01 Hours of Trading ............................................. 1002
mC1008.01 Trading Limits ............................................... 1002
mC1009.01 Last Day of Trading .......................................... 1002
mC1010.01 Margin Requirements .......................................... 1002
mC1012.01 Position Limits and Reportable Positions ..................... 1002
Ch10mC Delivery Procedures .................................................... 1003
mC1035.01 Grade Differentials .......................................... 1003
mC1036.01 Location Differentials ....................................... 1003
mC1038.01 Grades ................................................. ..... 1003
mC1041.01 Delivery Points .............................................. 1003
mC1043.01 Deliveries by mini-sized Corn Certificates ................... 1003
mC1047.01 Delivery Notices ............................................. 1003
mC1048.01 Method of Delivery ........................................... 1003
mC1049.01 Time of Delivery, Payment, Form of Delivery Notice ........... 1003
mC1049.02 Time of Issuance of Delivery Notice .......................... 1003
mC1049.03 Buyer's Report of Eligibility to Receive Delivery ............ 1003
mC1049.04 Seller's Invoice to Buyers ................................... 1003
mC1049.05 Payment ...................................................... 1003
mC1050.01 Duties of Members ............................................ 1003
mC1050.02 Failure to Deliver ........................................... 1003
mC1051.01 Office Deliveries Prohibited ................................. 1003
mC1054.01 Failure to Accept Delivery ................................... 1003
mC1056.01 Payment of Premium Charges ................................... 1003
1001mC
Chapter 10mC
CBOT(R) MINI-SIZED CORN FUTURES
Ch10mC TRADING CONDITIONS
mC1001.01 Authority - Trading of CBOT mini-sized Corn futures may be conducted
under such terms and conditions as may be prescribed by Regulation. (04/01/03)
mC1002.01 Application of Regulations - Futures transactions in CBOT mini-sized
Corn futures shall be subject to the General Rules of the Exchange as far as
applicable and shall also be subject to Regulations contained in this chapter
which are exclusively applicable to trading in CBOT mini-sized Corn futures
contracts. (04/01/03)
mC1003.01 Derivative Markets - Settlement prices shall be set in accordance with
this regulation consistent with the settlement prices of the primary market.
Contract settlement prices shall be set equal to the settlement prices of the
corresponding contracts of the primary market for such commodity. Where a
particular contract has opened on the Exchange for which the primary market has
established no settlement price, the Clearing Services Provider shall set a
settlement price consistent with the spread relationships of other contracts;
provided, however, that if the contract is not subject to daily price
fluctuation limits then the settlement prices shall be set at the fair market
value of the contract at the close of trading. (12/01/03)
mC1004.01 Unit of Trading - On future delivery contracts calling for the
delivery of corn, delivery shall be made in 1,000 bushel units or multiples
thereof. (04/01/03)
mC1005.01 Months Traded In - (see C1005.01) (04/01/03)
mC1006.01 Price Basis - Minimum price fluctuations shall be in multiples of 1/8
cent per bushel. (04/01/03)
mC1007.01 Hours of Trading - The hours of trading for future delivery in CBOT
mini-sized Corn futures shall be determined by the Board. (04/01/03)
mC1008.01 Trading Limits - (see C1008.01) (04/01/03)
mC1009.01 Last Day of Trading - (see C1009.01) (04/01/03)
mC1010.01 Margin Requirements - (see C1010.01) (04/01/03)
mC1012.01 Position Limits and Reportable Positions - (see C1012.01) (04/01/03)
1002mC
Ch10mC DELIVERY PROCEDURES
mC1035.01 Grade Differentials - (see C1036.00) (04/01/03)
mC1036.01 Location Differentials - (see C1036.01) (04/01/03)
mC1038.01 Grades - (see C1038.01) (04/01/03)
mC1041.01 Delivery Points - (see C1041.01) (04/01/03)
mC1043.01 Deliveries by Mini-sized Corn Certificates - Deliveries of CBOT
mini-sized Corn shall be made by delivery of mini-sized Corn Certificates
created by the Exchange from Corn Shipping Certificates issued by Shippers
designated by the Exchange as regular to issue Shipping Certificates for Corn,
utilizing the electronic delivery system via the Clearing Services Provider's
on-line system. In order to effect a valid delivery, each Certificate must be
endorsed by the holder making the delivery, and transfer as specified above
constitutes endorsement. Such endorsement shall constitute a warranty of the
genuineness of the Certificate and of good title thereto, but shall not
constitute a guaranty, by an endorser, of performance by the shipper. Such
endorsement shall also constitute a representation that all premium charges have
been paid on the commodity covered by the Certificate, in accordance with
Regulation C1056.01.
Mini-sized Corn Certificates may not be cancelled for load-out. Upon the return
of five (5) mini-sized Corn Certificates to the Exchange, a registered Corn
Shipping Certificate will be delivered by the Exchange to the holder of the five
(5) mini-sized Corn Certificates, utilizing the electronic delivery system via
the Clearing Services Provider's on-line system. (12/01/03)
mC1047.01 Delivery Notices - (see C1047.01) (04/01/03)
mC1048.01 Method of Delivery - (see C1048.01) (04/01/03)
mC1049.01 Time of Delivery, Payment, Form of Delivery Notice - (see C1049.01)
(04/01/03)
mC1049.02 Time of Issuance of Delivery Notice - (see C1049.02) (04/01/03)
mC1049.03 Buyer's Report of Eligibility to Receive Delivery - (see C1049.03)
(04/01/03)
mC1049.04 Seller's Invoice to Buyers - (see C1049.04) (04/01/03)
mC1049.05 Payment - (see C1049.05) (04/01/03)
mC1050.01 Duties of Members - (see C1050.01) (04/01/03)
mC1050.02 Failure to Deliver - (see 1050.02) (12/01/03)
mC1051.01 Office Deliveries Prohibited - (see C1051.01) (04/01/03)
mC1054.01 Failure to Accept Delivery - (see C1054.01) (04/01/03)
mC1056.01 Payment of Premium Charges - (See C1056.01) (04/01/03)
1003mC
Chapter 10mS
CBOT(R) MINI-SIZED SOYBEAN FUTURES
[Download Table]
Ch10mS Trading Conditions ..................................................... 1002
mS1001.01 Authority .................................................... 1002
mS1002.01 Application of Regulations ................................... 1002
mS1003.01 Derivative Markets ........................................... 1002
mS1004.01 Unit of Trading .............................................. 1002
mS1007.01 Months Traded In ............................................. 1002
mS1006.01 Price Basis .................................................. 1002
mS1007.01 Hours of Trading ............................................. 1002
mS1008.01 Trading Limits ............................................... 1002
mS1009.01 Last Day of Trading .......................................... 1002
mS1010.01 Margin Requirements .......................................... 1002
mS1012.01 Position Limits and Reportable Positions ..................... 1002
Ch10mS Delivery Procedures .................................................... 1003
mS1035.01 Grade Differentials .......................................... 1003
mS1036.01 Location Differentials ....................................... 1003
mS1038.01 Grades ....................................................... 1003
mS1041.01 Delivery Points .............................................. 1003
mS1043.01 Deliveries by mini-sized Soybean Certificates ................ 1003
mS1047.01 Delivery Notices ............................................. 1003
mS1048.01 Method of Delivery ........................................... 1003
mS1049.01 Time of Delivery, Payment, Form of Delivery Notice ........... 1003
mS1049.02 Time of Issuance of Delivery Notice .......................... 1003
mS1049.03 Buyer's Report of Eligibility to Receive Delivery ............ 1003
mS1049.04 Seller's Invoice to Buyers ................................... 1003
mS1049.05 Payment ...................................................... 1003
mS1050.01 Duties of Members ............................................ 1003
mS1050.02 Failure to Deliver ........................................... 1003
mS1051.01 Office Deliveries Prohibited ................................. 1003
mS1054.01 Failure to Accept Delivery ................................... 1003
mS1056.01 Payment of Premium Charges ................................... 1003
1001mS
Chapter 10mS
CBOT(R) MINI-SIZED SOYBEAN FUTURES
Ch10mS TRADING CONDITIONS
mS1001.01 AUTHORITY - Trading of CBOT mini-sized Soybean futures may be
conducted under such terms and conditions as may be prescribed by Regulation.
(04/01/03)
mS1002.01 APPLICATION OF REGULATIONS - Futures transactions in CBOT mini-sized
Soybean futures shall be subject to the General Rules of the Exchange as far as
applicable and shall also be subject to Regulations contained in this chapter
which are exclusively applicable to trading in CBOT mini-sized Soybean futures
contracts. (04/01/03)
mS1003.01 DERIVATIVE MARKETS - Settlement prices shall be set in accordance with
this regulation consistent with the settlement prices of the primary market.
Contract settlement prices shall be set equal to the settlement prices of the
corresponding contracts of the primary market for such commodity. Where a
particular contract has opened on the Exchange for which the primary market has
established no settlement price, the Clearing Services Provider shall set a
settlement price consistent with the spread relationships of other contracts;
provided, however, that if the contract is not subject to daily price
fluctuation limits then the settlement prices shall be set at the fair market
value of the contract at the close of trading. (12/01/03)
mS1004.01 UNIT OF TRADING - On future delivery contracts calling for the
delivery of soybeans, delivery shall be made in 1,000 bushel units or multiples
thereof. (04/01/03)
mS1005.01 MONTHS TRADED IN - (see S1005.01) (04/01/03)
mS1006.01 PRICE BASIS - Minimum price fluctuations shall be in multiples of 1/8
cent per bushel. (04/01/03)
mS1007.01 HOURS OF TRADING - The hours of trading for future delivery in CBOT
mini-sized Soybean futures shall be determined by the Board. (04/01/03)
mS1008.01 TRADING LIMITS - (see S1008.01) (04/01/03)
mS1009.01 LAST DAY OF TRADING - (see S1009.01) (04/01/03)
mS1010.01 MARGIN REQUIREMENTS - (see S1010.01) (04/01/03)
mS1012.01 POSITION LIMITS AND REPORTABLE POSITIONS - (see S1012.01) (04/01/03)
1002mS
Ch10mS DELIVERY PROCEDURES
mS1035.01 GRADE DIFFERENTIALS - (see S1036.00) (04/01/03)
mS1036.01 LOCATION DIFFERENTIALS - (see S1036.01) (04/01/03)
mS1038.01 GRADES - (see S1038.01) (04/01/03)
mS1041.01 DELIVERY POINTS - (see S1041.01) (04/01/03)
mS1043.01 DELIVERIES BY MINI-SIZED SOYBEAN CERTIFICATES - Deliveries of CBOT
mini-sized Soybeans shall be made by delivery of mini-sized Soybean Certificates
created by the Exchange from Soybean Shipping Certificates issued by Shippers
designated by the Exchange as regular to issue Shipping Certificates for
Soybeans, utilizing the electronic delivery system via the Clearing Services
Provider's on-line system. In order to effect a valid delivery, each Certificate
must be endorsed by the holder making the delivery, and transfer as specified
above constitutes endorsement. Such endorsement shall constitute a warranty of
the genuineness of the Certificate and of good title thereto, but shall not
constitute a guaranty, by an endorser, of performance by the shipper. Such
endorsement shall also constitute a representation that all premium charges have
been paid on the commodity covered by the Certificate, in accordance with
Regulation S1056.01.
Mini-sized Soybean Certificates may not be cancelled for load-out. Upon the
return of five (5) mini-sized Soybean Certificates to the Exchange, a registered
Soybean Shipping Certificate will be delivered by the Exchange to the holder of
the five (5) mini-sized Soybean Certificates, utilizing the electronic delivery
system via the Clearing Services Provider's on-line system. (12/01/03)
mS1047.01 DELIVERY NOTICES - (see S1047.01) (04/01/03)
mS1048.01 METHOD OF DELIVERY - (see S1048.01) (04/01/03)
mS1049.01 TIME OF DELIVERY, PAYMENT, FORM OF DELIVERY NOTICE - (see S1049.01)
(04/01/03)
mS1049.02 TIME OF ISSUANCE OF DELIVERY NOTICE - (see S1049.02) (04/01/03)
mS1049.03 BUYER'S REPORT OF ELIGIBILITY TO RECEIVE DELIVERY - (see S1049.03)
(04/01/03)
mS1049.04 SELLER'S INVOICE TO BUYERS - (see S1049.04) (04/01/03)
mS1049.05 PAYMENT - (see S1049.05) (04/01/03)
mS1050.01 DUTIES OF MEMBERS - (see S1050.01) (04/01/03)
mS1050.02 FAILURE TO DELIVER - (see 1050.02) (12/01/03)
mS1051.01 OFFICE DELIVERIES PROHIBITED - (see S1051.01) (04/01/03)
mS1054.01 FAILURE TO ACCEPT DELIVERY - (see S1054.01) (04/01/03)
mS1056.01 PAYMENT OF PREMIUM CHARGES - (See S1056.01) (04/01/03)
1003mS
Chapter 10mW
CBOT(R) MINI-SIZED WHEAT FUTURES
[Enlarge/Download Table]
Ch10mW Trading Conditions ........................................................ 1002
mW1001.01 Authority ....................................................... 1002
mW1002.01 Application of Regulations ...................................... 1002
mW1003.01 Derivative Markets .............................................. 1002
mW1004.01 Unit of Trading ................................................. 1002
mW1005.01 Months Traded In ................................................ 1002
mW1006.01 Price Basis ..................................................... 1002
mW1007.01 Hours of Trading ................................................ 1002
mW1008.01 Trading Limits .................................................. 1002
mW1009.01 Last Day of Trading ............................................. 1002
mW1010.01 Margin Requirements ............................................. 1002
mW1012.01 Position Limits and Reportable Positions ........................ 1002
Ch10mW Delivery Procedures ....................................................... 1003
mW1035.01 Grade Differentials ............................................ 1003
mW1036.01 Location Differentials ......................................... 1003
mW1038.01 Grades ......................................................... 1003
mW1038.02 United States Origin Only ...................................... 1003
mW1038.03 Deoxynivalenol (Vomitoxin) Limit in Wheat ...................... 1003
mW1041.01 Delivery Points ................................................ 1003
mW1041.02 Burns Harbor, Indiana Switching District ....................... 1003
mW1042.01 Deliveries by Wheat Warehouse Depository Receipts .............. 1003
mW1042.02 Reissuance of Warehouse Depository Receipts .................... 1003
mW1047.01 Delivery Notices ............................................... 1003
mW1048.01 Method of Delivery ............................................. 1003
mW1049.01 Time of Delivery, Payment, Form of Delivery Notice ............. 1003
mW1049.02 Time of Issuance of Delivery Notice ............................ 1003
mW1049.03 Buyer's Report of Eligibility to Receive Delivery .............. 1003
mW1049.04 Seller's Invoice to Buyers ..................................... 1003
mW1049.05 Payment ........................................................ 1003
mW1050.01 Duties of Members .............................................. 1003
mW1050.02 Failure to Deliver ............................................. 1003
mW1051.01 Office Deliveries Prohibited ................................... 1003
mW1054.01 Failure to Accept Delivery ..................................... 1003
mW1056.01 Storage Rates for Wheat ........................................ 1003
1001mW
Chapter 10mW
CBOT(R) MINI-SIZED WHEAT FUTURES
CH10mW TRADING CONDITIONS
mW1001.01 AUTHORITY - Trading of CBOT mini-sized Wheat futures may be conducted
under such terms and conditions as may be prescribed by Regulation. (04/01/03)
mW1002.01 APPLICATION OF REGULATIONS - Futures transactions in CBOT mini-sized
Wheat futures shall be subject to the General Rules of the Exchange as far as
applicable and shall also be subject to Regulations contained in this chapter
which are exclusively applicable to trading in CBOT mini-sized Wheat futures
contracts. (04/01/03)
mW1003.01 DERIVATIVE MARKETS - Settlement prices shall be set in accordance with
this regulation consistent with the settlement prices of the primary market.
Contract settlement prices shall be set equal to the settlement prices of the
corresponding contracts of the primary market for such commodity. Where a
particular contract has opened on the Exchange for which the primary market has
established no settlement price, the Clearing Services Provider shall set a
settlement price consistent with the spread relationships of other contracts;
provided, however, that if the contract is not subject to daily price
fluctuation limits then the settlement prices shall be set at the fair market
value of the contract at the close of trading. (12/01/03)
mW1004.01 UNIT OF TRADING - On future delivery contracts calling for the
delivery of wheat, delivery shall be made in 1,000 bushel units or multiples
thereof. (04/01/03)
mW1005.01 MONTHS TRADED IN - (see 1005.01A) (04/01/03)
mW1006.01 PRICE BASIS - Minimum price fluctuations shall be in multiples of 1/8
cent per bushel. (04/01/03)
mW1007.01 HOURS OF TRADING - The hours of trading for future delivery in CBOT
mini-sized Wheat futures shall be determined by the Board. (04/01/03)
mW1008.01 TRADING LIMITS - (see 1008.01) (04/01/03)
mW1009.01 LAST DAY OF TRADING - (see 1009.01) (04/01/03)
mW1010.01 MARGIN REQUIREMENTS - (see 1010.01) (04/01/03)
mW1012.01 POSITION LIMITS AND REPORTABLE POSITIONS - (see 1012.01) (04/01/03)
1002mW
Ch10mW DELIVERY PROCEDURES
mW1035.01 GRADE DIFFERENTIALS - (see 1036.00) (04/01/03)
mW1036.01 LOCATION DIFFERENTIALS - (see 1036.01) (04/01/03)
mW1038.01 GRADES - (see 1038.00) (04/01/03)
mW1038.02 UNITED STATES ORIGIN ONLY - (see 1038.01) (04/01/03)
mW1038.03 DEOXYNIVALENOL (VOMITOXIN) LIMIT IN WHEAT - (see 1038.02) (04/01/03)
mW1041.01 DELIVERY POINTS - (see 1041.00) (04/01/03)
mW1041.02 BURNS HARBOR, INDIANA SWITCHING DISTRICT - (see 1041.01) (04/01/03)
mW1042.01 DELIVERIES BY WHEAT WAREHOUSE DEPOSITORY RECEIPTS - Deliveries of CBOT
mini-sized Wheat shall be made by delivery of Warehouse Depository Receipts
(WDR) created by the Exchange from registered warehouse receipts issued by
warehousemen against stocks of wheat in warehouses which have been declared
regular for delivery of wheat by the Exchange. In order to effect a valid
delivery, each WDR must be properly endorsed by the holder making the delivery.
Such endorsement shall constitute a warranty of the genuineness of the WDR and
of good title thereto, but shall not constitute a guaranty, by an endorser, of
performance by the warehouseman. Such endorsement shall also constitute a
representation that all storage charges have been paid on the commodity covered
by the WDR, in accordance with Regulation 1056.01.
Warehouse Depository Receipts may not be cancelled for load-out. Upon the return
of five (5) properly endorsed WDRs to the Exchange, and payment of all storage
charges pertaining to the wheat represented, for which the Exchange claims a
lien, a registered warehouse receipt will be delivered by the Exchange to the
holder of the five (5) WDRs. (04/01/03)
mW1042.02 REISSUANCE OF WAREHOUSE DEPOSITORY RECEIPTS - Warehouse Depository
Receipts issued by the Exchange shall expire one year from the date of issue.
Holders must return each Warehouse Depository Receipt to the Exchange for
reissue, prior to expiration, in order for such Warehouse Depository Receipt to
remain eligible for delivery. (04/01/03)
mW1047.01 DELIVERY NOTICES - (see 1047.01) (04/01/03)
mW1048.01 METHOD OF DELIVERY - (see 1048.01) (04/01/03)
mW1049.01 TIME OF DELIVERY, PAYMENT, FORM OF DELIVERY NOTICE - (see W1049.00)
(04/01/03)
mW1049.02 TIME OF ISSUANCE OF DELIVERY NOTICE - (see 1049.01) (04/01/03)
mW1049.03 BUYER'S REPORT OF ELIGIBILITY TO RECEIVE DELIVERY - (see 1049.02)
(04/01/03)
mW1049.04 SELLER'S INVOICE TO BUYERS - (see 1049.03) (04/01/03)
mW1049.05 PAYMENT - (see 1049.04) (04/01/03)
mW1050.01 DUTIES OF MEMBERS - (see 1050.00) (04/01/03)
mW1050.02 FAILURE TO DELIVER - (see 1050.01) (12/01/03)
mW1051.01 OFFICE DELIVERIES PROHIBITED - (see 1051.01) (04/01/03)
mW1054.01 FAILURE TO ACCEPT DELIVERY - (see 1054.00, 1054.00A and 1054.01)
(12/01/03)
mW1056.01 STORAGE RATES FOR WHEAT - (See 1056.01) (04/01/03)
1003mW
================================================================================
Chapter 11
Soybean Oil
================================================================================
[Download Table]
Ch11 Trading Conditions...................................................... 1103
1101.00 Authority...................................................... 1103
1102.01 Application of Regulations..................................... 1103
1104.01 Unit of Trading................................................ 1103
1105.01 Months Traded In............................................... 1103
1106.01 Price Basis.................................................... 1103
1107.01 Hours of Trading............................................... 1103
1108.01 Trading Limits................................................. 1103
1108.01A Trading Limits................................................. 1103
1109.01 Last Day of Trading............................................ 1103
1109.02 Trading in the Last Seven Business Days of the Delivery Month.. 1103
1110.01 Margin Requirements............................................ 1103
1111.01 Disputes....................................................... 1103
1112.01 Position Limits and Reportable Positions....................... 1103
Ch11 Delivery Procedures..................................................... 1104
1136.01 Standards...................................................... 1104
1136.02 United States Origin Only...................................... 1104
1137.01 Official Chemist's Certificates................................ 1104
1138.01 Sampling....................................................... 1104
1139.01 Weighing....................................................... 1105
1140.01 Grading........................................................ 1105
1141.01 Delivery Points................................................ 1105
1142.01 Deliveries By Warehouse Receipts............................... 1106
1143.01 Registration of Warehouse Receipts............................. 1106
1144.01 Receipt Format................................................. 1107
1146.01 Date of Delivery............................................... 1108
1147.00 Delivery Notice................................................ 1108
1147.01 Delivery Notices............................................... 1108
1148.00 Method of Delivery............................................. 1108
1149.00 Time of Delivery, Payment, Form of Delivery Notice............. 1108
1149.01 Time of Issuance of Delivery Notice............................ 1108
1149.02 Buyers' Report of Eligibility to Receive Delivery.............. 1108
1149.03 Sellers' Invoice to Buyers..................................... 1108
1149.04 Payment........................................................ 1108
1150.00 Duties of Members.............................................. 1108
1150.01 Failure to Deliver............................................. 1108
1151.01 Office Deliveries Prohibited................................... 1108
1154.00 Failure to Accept Delivery..................................... 1108
1156.01 Storage Charges................................................ 1108
1156.02 Storage, Car Rental, Etc....................................... 1108
1156.03 Fees........................................................... 1109
1156.04 Loading Charges................................................
Ch11 Regularity of Warehouses................................................ 1110
1180.01 Duties of Warehouse Operators.................................. 1110
1180.01A Responsibility for Furnishing Tank Cars........................ 1111
1180.01B Car Ready for Loading.......................................... 1111
1180.01C Transit vs. Flat Rate Billing.................................. 1112
1180.01D Freight Differentials.......................................... 1112
1180.02 Transit Billing................................................ 1112
1180.03 Freight Charges................................................ 1112
1181.01 Conditions of Regularity....................................... 1112
1181.02 Leasing and Service Arrangements............................... 1113
1184.01 Revocation, Expiration or Withdrawal of Regularity............. 1113
1101
[Download Table]
1185.01 Application for Declaration of Regularity...................... 1114
1186.01 Regular Shippers............................................... 1115
1102
================================================================================
Chapter 11
Soybean Oil
================================================================================
Ch11 Trading Conditions
1101.00 Authority - On or after January 30, 1950, trading in Crude Soybean Oil
futures may be conducted under such terms and conditions as may be prescribed by
Regulation. 801 (09/01/94)
1102.01 Application of Regulations - Transactions in Crude Soybean Oil futures
shall be subject to the general rules of the association as far as applicable
and shall also be subject to the Regulations contained in this Chapter which are
exclusively applicable to trading in Crude Soybean Oil. 2000 (09/01/94)
1104.01 Unit of Trading - The unit of trading for Crude Soybean Oil shall be
60,000 pounds. Bids and offers may be accepted in lots of 60,000 pounds or
multiples thereof. For trading purposes, one tank car shall be equivalent to
60,000 pounds. 2003 (09/01/94)
1105.01 Months Traded In - Trading in Crude Soybean Oil may be conducted in the
current month and any subsequent months. 2004 (09/01/94)
1106.01 Price Basis - All prices of Crude Soybean Oil shall be basis Decatur,
Illinois in multiples of 1/100th of one cent per pound. Contracts shall not be
made on any other price basis. 2005 (09/01/94)
1107.01 Hours of Trading - The hours of trading for future delivery in Crude
Soybean Oil shall be from 9:30 a.m. to 1:15 p.m. except that on the last day of
trading in an expiring future the hours with respect to such future shall be
from 9:30 a.m. to 12 o'clock noon subject to the provisions of the second
paragraph of Rule 1007.00. Market shall be opened and closed with a public call
made month by month, conducted by such persons as the Regulatory Compliance
Committee shall direct. 2007 (09/01/94)
1108.01 Trading Limits - (See 1008.01) (09/01/94)
1108.01A Trading Limits - (See 1008.01A) (09/01/94)
1109.01 Last Day of Trading - No trades in Crude Soybean Oil futures
deliverable in the current month shall be made after the business day preceding
the 15th calendar day of that month and any contracts remaining open may be
settled by delivery after trading in such contracts has ceased; and, if not
previously delivered, delivery must be made on the last business day of the
month. 2008 (01/01/00)
1109.02 Trading in the Delivery Month - After trading in contracts for future
delivery in the current delivery month has ceased in accordance with Regulation
1109.01 of this Chapter, outstanding contracts for such delivery may be
liquidated by means of (a bona fide) exchange of such current futures for the
(actual) cash commodity or an over-the-counter transaction. 2009 (07/01/03)
1110.01 Margin Requirements - (See Regulation 431.03) (09/01/94)
1111.01 Disputes - All disputes between interested parties may be settled by
arbitration as provided in the Rules and Regulations. 2011 (09/01/94)
1112.01 Position Limits and Reportable Positions - (See 425.01) (09/01/94)
1103
Ch11 Delivery Procedures
1136.01 Standards - The contract grade for delivery on futures contracts made
under these Regulations shall be Crude Soybean Oil which conforms to the
following specifications:
(a) It shall be one of the following types: Expeller pressed, expeller pressed
degummed, solvent extracted, or solvent extracted degummed. Mixtures of one
type with any other type shall not be deliverable;
(b) It shall contain not more than 0.3% moisture and volatile content;
(c) It shall be lighter in green color than Standard "A" and when refined and
bleached shall produce a refined and bleached oil of not deeper color than
3.5 red on the Lovibond scale;
(d) It shall refine with a loss not exceeding 5% as determined by the "neutral
oil" method;
(e) It shall have a flash point not below 250 degrees Fahrenheit, closed cup
method;
(f) It shall contain no more than 1.5% unsaponifiable matter (exclusive of
moisture and volatile matter).
No lower grade shall be delivered in satisfaction of contracts for future
delivery. A higher grade may be delivered at contract price except that where
the refining loss is less than 5% as determined by the "neutral oil" method, a
premium of one percent of the cash market price at the time of loading shall be
paid for each one percent under the 5% loss (fractions figured throughout) with
a maximum credit of 41-2%.
American Oil Chemists' Society methods shall be followed for sampling and
analysis for all tests, except for determining green color, which test shall be
the National Soybean Processors Association tentative method.
A tolerance of 150 lbs. of sludge shall be allowed for each trading unit of
60,000 lbs. If the car contains more than 150 lbs. of sludge or if a truck
contains more than 125 lbs. of sludge, an allowance shall be made to the Buyer
for a total amount of sludge up to 1,000 lbs. at 50% of the price at time of
unloading car. Sludge in excess of 1,000 lbs. shall be allowed for at the price
at time of unloading car.
Sludge shall be considered to be solid residue which cannot be pumped and
squeegeed from the car for the net out-turn weight. 2002 (09/01/94)
1136.02 United States Origin Only - Effective September 1, 1992, a futures
contract for the sale of soybean oil shall be performed on the basis of United
States origin only upon written request by a taker of delivery at the time
loading orders are submitted. (09/01/94)
1137.01 Official Chemist's Certificates - Certificates for quality analysis
by any Official Chemists shall be acceptable and binding on all parties except
as otherwise provided.
The official chemists are Woodson-Tenent Laboratories with laboratories located
at Memphis, Tenn. and Des Moines, Ia.; and Barrow-Agee Laboratories, Memphis,
Tenn. 2029 (10/01/01)
1138.01 Sampling - Samples shall be drawn at time of loading by Official
Samplers licensed by the Exchange. The Official Sample shall be 2 one-quart and
1 half-gallon samples. These portions should be packaged in clean, dry and new
containers. Either tinned metal containers or high density polyethylene bottles
fitted with metal caps having oil resistant cap liners are acceptable.
Polythylene containers must be enclosed for shipping in custom-made, close
fitting cardboard containers. The sample must be drawn at the time of loading in
accordance with A.O.C.S. Official Method for sampling crude oils (C1-47-
Continuous Flow and Trier methods) and shall be so indicated on invoice. If the
Shipper neglects to provide such a sample at the time of loading or fails to
show on invoice than an Official Sample has been taken, a sample drawn at
destination shall be official when taken in accordance with the A.O.C.S.
Official Methods as noted above. Shipper shall forward to Consignee one of the
one-quart portions at no expense to Consignee within one working day of
completion of loading and label of sample must designate type of oil and plant
destination. The one-half gallon portion (third portion) is to be retained by
Shipper as the referee sample for a minimum of thirty days
1104
Ch11 Delivery Procedures
after loading.
Each sample must be accompanied by a certificate in the following form:
Board of Trade of the City of Chicago
OFFICIAL SAMPLERS CERTIFICATE
I hereby certificate that sample marked______________________________was drawn
by me on this_________day of_________________, 20________, within 24 hours after
loading tank car or truck in accordance with the requirements of Regulation
1138.01 of the Board of Trade of the City of Chicago, and that it is a fair and
true sample of the contents of:
Car/Truck No. (and initial)__________________, located at__________________
containing approximately_______________________pounds, of__________________
_________________________________________________________________________
(Expeller pressed. Expeller pressed degummed, Solvent Extracted,___________
____________type Crude Soybean Oil. Solvent Extracted Degummed)
______________________________________________________________Solvent used.
That sample was taken in a manner prescribed by the American Oil Chemists
Society.
____________________________
OFFICIAL SAMPLER
2023
(01/01/00)
1139.01 Weighing - On all deliveries, the weight as determined by an Official
Weigher shall be binding on all interested parties. Due allowance shall be made
to cover the loss of weight due to sampling, if sample is drawn from weighing.
An official weigher is a person or agency approved by the Exchange. 2024
(09/01/94)
1140.01 Grading - Shipper shall have option, and advise warehouse receipt
holder of his selection at time of receipt of loading instructions, of having
grade determined by one of the following methods:
A. Official Chemist Analysis, shipper to pay the cost.
B. Comparison between consignee's and shipper's analyses.
1. Each party must mail to other party his analysis within 15 days after
bill of lading date.
2. If parties do not agree as to quality (refining loss excepted) either
one may request analysis by Official Chemist. The findings of the
Official Chemist shall be binding on both parties and the cost of such
analysis shall be charged to the party against whom the decision
results.
3. In case of refining loss, based on the "neutral oil" method, if the
difference is not over three tenths of one percent the settlement shall
be made on the average of the two, otherwise the retained sample shall
be sent to Official Chemist for analysis. If the Official Chemist's
results are the mean of the shippers' and consignees' analyses, then
the cost shall be shared equally; otherwise, the cost shall be charged
to the party against whom the decision results. 2025 (09/01/94)
1141.01 Delivery Points - Crude Soybean Oil may be delivered in satisfaction
of Soybean Oil futures contracts from regular warehouses located in Illinois
Territory, Eastern Territory, Eastern Iowa Territory, Southwest Territory,
Western Territory or Northern Territory as defined in this regulation and at the
following price differentials:
(a) Illinois Territory (That portion of the state of Illinois north of latitude
38(degrees)00' N.) .... at contract price.
(b) Eastern Territory (Those portions of the states of Indiana and Kentucky
west of the Ohio-Indiana border and its extension and north of latitude
38(degrees)00'N.) . . . at 20/100ths of one cent per pound under contract
price.
(c) Eastern Iowa Territory (That portion of the state of Iowa east of longitude
93(degrees)50'W.) . . . at contract price.
(d) Southwest Territory (Those portions of the states of Missouri and Kansas
north of latitude 38(degrees)00'N. and east of longitude 97(degrees)00'W.)
. . . at 45/100ths of one cent per pound over contract price.
Ch11 Delivery Procedures
(e) Western Territory (Those portions of the states of Iowa west of
longitude 93 E 50' W., and Nebraska east of longitude 97 E 00' W.)... at
25/100ths of one cent per pound under contract price.
(f) Northern Territory (Those portions of the state of Minnesota south of
latitude 45 E 10' N., and South Dakota south of latitude 45 E 10' N., and
east of 97 E 00' W.)... at 45/100ths of one cent per pound under contract
price.
(g) For a given soybean crop year ending August 31, excluding the period
September 1 through December 31, and for a given Soybean Oil futures
delivery territory except the "Illinois Territory:" when the weekly (as
of Friday) cumulative average ratio of outstanding Soybean Oil Warehouse
Receipts to CBOT maximum 24 hour soybean crushing capacity within that
Soybean Oil futures delivery territory, relative to that ratio for the
combined remaining Soybean Oil territories, is less than or equal to
0.5, payment for Warehouse Receipts issued from that Soybean Oil
territory will be at a premium of 10 cents per hundredweight over
contract price in addition to the delivery territorial differential
adjustment.
(h) For a given soybean crop year ending August 31, excluding the period
September 1 through December 31, when the "Illinois Territory's" weekly
(as of Friday) cumulative average ratio of outstanding Soybean Oil
Warehouse Receipts to maximum CBOT 24 hour soybean crushing capacity
within the Illinois Soybean Oil futures delivery territory, relative to
that ratio for the combined remaining Soybean Oil territories, is less
than or equal to 0.5, payment for Warehouse Receipts issued from all
other Soybean Oil territories will be at a discount of 10 cents per
hundredweight under contract price in addition to the delivery
territorial differential adjustments.
(i) For a given soybean crop year ending August 31, excluding the period
September 1 through December 31, and for a given Soybean Oil futures
delivery territory except the "Illinois Territory," when the weekly (as
of Friday) cumulative average ratio of outstanding Soybean Oil Warehouse
Receipts to CBOT maximum 24 hour soybean crushing capacity within that
Soybean Oil futures delivery territory, relative to that ratio for the
combined remaining Soybean Oil territories, is greater than or equal to
2.0, payment for Warehouse Receipts issued from that Soybean Oil
territory will be at a discount of 10 cents per hundredweight under
contract price in addition to the delivery territorial differential
adjustment.
(j) For a given soybean crop year ending August 31, excluding the period
September 1 through December 31, when the "Illinois Territory's" weekly
(as of Friday) cumulative average ratio of outstanding Soybean Oil
Warehouse Receipts to CBOT maximum 24 hour soybean crushing capacity
within the Illinois Soybean Oil futures delivery territory, relative to
that ratio for the combined remaining Soybean Oil territories, is
greater than or equal to 2.0, payment for Warehouse Receipts issued from
all other Soybean Oil territories will be at a premium of 10 cents per
hundredweight over contract price in addition to the delivery
territorial differential adjustments.
(k) Items (g) through (j) of Regulation 1141.01 shall apply to all CBOT
Soybean Oil futures contracts delivered during a one calendar year
period beginning with January following the soybean crop year ending
August 31, provided that there are on a weekly average at least 150
outstanding Soybean Oil Warehouse Receipts in all Soybean Oil delivery
territories combined during that previous soybean crop year.
(l) Based on the adjustments made to territorial delivery differentials
during a given calendar year as outlined in items (g) through (k) of
Regulation 1141.01, the CBOT shall announce and publish
by September 15 of that given calendar year new territorial delivery
differentials applicable to all Soybean Oil futures contracts delivered
during the next calendar year. 2015 (01/01/05)
1142.01 Deliveries By Warehouse Receipts - Deliveries on Crude Soybean Oil shall
be made by delivery of warehouse receipts issued by warehouses which have been
designated by the Exchange as regular to issue Crude Soybean Oil warehouse
receipts using the electronic fields which the Exchange and the Clearing
Services Provider require to be completed. In order to effect a valid delivery
each Crude Soybean Oil warehouse receipt must be endorsed by the holder making
the delivery, and transfer as specified above constitutes endorsement. Such
endorsement shall constitute warranty of the genuineness of the warehouse
receipt and of good title thereto, but shall not constitute a guaranty, by any
endorser, of performance by the issuer of the warehouse receipt. Such
endorsement shall also constitute a representation that all storage charges have
been paid on the Crude Soybean Oil covered by the warehouse receipt, in
accordance with Regulation 1156.01.2012 (12/01/03)
1143.01 Registration of Warehouse Receipts - Warehouse receipts, in order to
be eligible for delivery, must be registered with the Official Registrar.
Registration of warehouse receipts shall also be subject to the following
requirements:
Ch11 Delivery Procedures
(a) Warehousemen who are regular for delivery may register warehouse receipts
at any time. If the warehouseman determines not to tender the warehouse
receipt by 4:00 p.m on the day it is registered, or by such other time
designated by the Exchange, the warehouseman shall declare the receipt has
been withdrawn but is to remain registered by transmitting to the Registrar
the warehouse receipt number and the name and location of the warehouse
facility. The holder of a registered warehouse receipt may cancel its
registration at any time. A warehouse receipt which has been canceled may
not be registered again.
(b) No notice of intention to deliver a warehouse receipt shall be tendered to
the Clearing Services Provider unless said warehouse receipt is registered
and in the possession of the clearing member tendering the notice or unless
a warehouse receipt is registered and outstanding. When a notice of
intention to deliver a warehouse receipt has been tendered to the Clearing
Services Provider, said warehouse receipt shall be considering
"outstanding".
(c) From his own records, the Registrar shall maintain a current record of the
number of warehouse receipts that are registered and shall be responsible
for posting this record on the Exchange Floor and the CBOT website. The
record shall not include any receipts that have been declared withdrawn.
(d) When a regular warehouseman regains control of a registered warehouse
receipt issued against stocks in one of his regular warehouses, which in
any manner relieves him of the obligation to loadout crude soybean oil upon
demand of a party other than himself, the warehouseman shall by 4:00 p.m.
of that business day, or by such other time designated by the Exchange,
either cancel the registration of said warehouse receipt or declare that
said warehouse receipt is withdrawn but is to remain registered by
transmitting to the Registrar the warehouse receipt number and the name and
location of the regular warehouse, except in the case where a notice of
intention to redeliver said warehouse receipt for the warehouseman has been
tendered to the Clearing Services Provider by 4:00 p.m., or by such other
time designated by the Exchange, of the day that the warehouseman regained
control of said warehouse receipt.
(e) The Registrar shall not divulge any information concerning the
registration, delivery or cancellation of warehouse receipts other than the
record posted on the Exchange Floor and the CBOT website, except that he
shall issue a daily report showing the total number of registered warehouse
receipts as of 4:00 p.m. on each trading day of the week. In addition
to the information posted on the Exchange Floor and CBOT website, this
daily report will show the names of warehousemen whose warehouse receipts
are registered and the location of the warehouses involved. The report
shall not include any receipts that have been declared withdrawn. 2013
(12/01/03)
1144.01 Receipt Format - The Exchange and the Clearing Services Provider shall
determine the electronic fields which are required to be completed in connection
with an electronic warehouse receipt.
The electronic warehouse receipt obligates the warehouse operator, for value
received and receipt of the warehouse receipt properly endorsed, and subject to
a lien for payment of storage charges, to deliver the specified quantity of
Crude Soybean Oil conforming to the standards of the Exchange, and to ship such
Crude Soybean Oil in accordance with orders of the lawful owner of the warehouse
receipt and in accordance with the Rules and Regulations of the Exchange.
Delivery shall be by rail or truck according to the registered loading
capability of the warehouse.
Delivery of the electronic receipt to the issuer by the owner of the receipt,
for the purpose of shipment of Crude Soybean Oil, is conditioned upon loading of
Crude Soybean oil in accordance with the Rules and Regulations of the Exchange,
and a lien is claimed until all loadings are complete and proper shipping
documents presented accompanying demand draft for freight and storage charges
due which the owner of the receipt agrees to honor upon presentation. 2012
(12/01/03)
1107
Ch11 Delivery Procedures
1146.01 Date of Delivery - Where Crude Soybean Oil is sold for delivery in a
specified month, delivery of such Crude Soybean Oil may be made by the Seller
upon such day of the specified month as the Seller may select. If not previously
delivered, delivery must be made upon the last business day of the month. 2017
(09/01/94)
1147.00 Delivery Notice - (See 1047.00) (09/01/94)
1147.01 Delivery Notices - (See 1047.01) (09/01/94)
1148.00 Method of Delivery - (See 1048.00) (09/01/94)
1149.00 Time of Delivery, Payment, Form of Delivery Notice - (See 1049.00)
(09/01/94)
1149.01 Time of Issuance of Delivery Notice (See 1049.01) (02/01/03)
1149.02 Buyers' Report of Eligibility to Receive Delivery - (See 1049.02)
(09/01/94)
1149.03 Sellers' Invoice to Buyers - (See 1049.03) (09/01/94)
1149.04 Payment - Payment shall be made utilizing the electronic delivery
system via the Clearing Services Provider's Online System. Payment will be made
during the 6:45 a.m. collection cycle, or such other time designated by the
Exchange. Thus the cost of the delivery will be debited or credited to a
clearing firm's settlement account. Buyers obligated to accept delivery must
take delivery and make payment and sellers obligated to make delivery must make
delivery during the 6:45 am. settlement process, or such other time designated
by the Exchange, on the day of delivery, except on banking holidays when
delivery must be taken or made and payment made during the 6:45 a.m. settlement
process, or such other time designated by the Exchange, on the next banking
business day. (12/01/03)
1150.00 Duties of Members - (See 1050.00) (09/01/94)
1150.01 Failure to Deliver - (See 1050.01) (12/01/03)
1151.01 Office Deliveries Prohibited - No office deliveries of warehouse
receipts may be made by clearing members. Where a futures commission merchant
has an interest both long and short for customers on its own books, it must
tender to the Clearing Services Provider such notices of intention to deliver as
it receives from its customers who are short. 2009 (12/01/03)
1154.00 Failure to Accept Delivery - (See 1054.00) (09/01/04)
1154.01 Failure to Accept Delivery - (See 1054.01) (12/01/03)
1156.01 Storage Charges - No Soybean Oil Warehouse Receipts shall be valid
for delivery on future contracts unless the storage charges shall have been paid
up to and including the 18/th/ day of the preceding month and such payment
endorsed on the Soybean Oil Warehouse Receipt unless registration is at a later
date. Unpaid accumulated storage charges at the posted tariff applicable to the
warehouse where the soybean oil is stored shall be allowed and credited to the
buyer by the seller to and including date of delivery.
If storage rates are not paid on-time up to and including the 18/th/ calendar
day preceding the delivery month of July and by the first calendar day of this
delivery month, a late charge will apply. The late charge will be an amount
equal to the total unpaid accumulated storage rates multiplied by the "prime
interest rate" in effect on the day that the accrued storage rates are paid,
all multiplied by the number of calendar days that storage is overdue, divided
by 360 days. The term "prime interest rate" shall mean the lowest of the rates
announced by each of the following four banks at Chicago, Illinois, as its
"prime rate": Bank of America-Illinois, Bank One, Harris Trust & Savings Bank,
and the Northern Trust Company.
The storage rates on Crude Soybean Oil shall not exceed 3/10th of one cent per
day per 100 pounds. When shipper schedules tank car loading, storage shall
continue through the date of surrender of a properly cancelled warehouse receipt
and shall begin again on the sixth day after surrender date if loading has not
been completed and continue until the oil has been loaded. When shipper
schedules truck loading storage, charges shall continue through the date of
loading. Regular Soybean Oil warehousemen shall maintain in the immediate
vicinity of the Exchange either an office, or duly authorized representative or
agent approved by the Exchange, to whom Soybean Oil Storage charges may be paid.
2033 (06/01/01)
1156.02 Storage, Car Rental, Etc. - Except as otherwise provided, all charges
for storage, car
1108
Ch11 Delivery Procedures
rental, etc., shall remain the responsibility of the Seller until payment is
made. Payment is to be made by a check drawn on and certified by a Chicago bank
or by a Cashier's check issued by a Chicago bank. 2020 (09/01/94)
1156.03 Fees - Sampling: The charge for drawing Official samples shall be
$5.00 for each tank car or truck on inbound shipments to a warehouse.
If sampling is ordered at a location where an Official Sampler is not regularly
located, all extra costs must be paid by the party ordering the sample.
These charges shall include the cost of delivering the samples to the Official
Chemists. 2028 (09/01/94)
1156.04 Loading Charges - The maximum charge for loading tank cars at delivery
point shall not exceed 1/40/th/ of one cent per pound and the combined charge
for unloading and loading tank cars at delivery point shall not exceed 1/10/th/
of one cent per pound including heating. The maximum charge for loading tank
trucks at delivery point shall not exceed 1/25/th/ of one cent per pound.
(06/01/01)
1109
Ch11 Regularity of Warehouses
1180.01 Duties of Warehouse Operators - It shall be the duty of the
operators of all regular warehouses:
(a) To accept Crude Soybean Oil for delivery on Chicago Board of Trade
contracts, provided such Crude Soybean Oil is of contract grade when
received at such warehouses, and all space in such warehouses is not
already filled or contracted for, to pay no premium on refining loss but to
receive allowance for sludge. All inbound freight (including the transit
charge necessary to obtain the transit balance rate) shall be prepaid by
the depositor of the oil. Upon surrender of the inbound billing to the
warehouseman the depositor of the oil shall be furnished with a regular
Board of Trade Warehouse Receipt endorsed thereon with the transit balance
freight to New York.
(b) To notify the Exchange of any change in the condition of their warehouses.
(c) To insure soybean oil covered by warehouse receipts tendered for delivery
against the contingencies provided for in a standard "All Risks" policy
(including earthquake) to such an extent and in such amounts as required by
the Exchange.
Any loss or damage to oil caused by leakage or discharge from the storage
facilities resulting from the cracking, rupture, bursting, collapse,
subsidence or disruption of the containing system, or the negligence of the
warehouse operator shall be for the account of the warehouse operator,
unless such loss or damage by leakage or discharge from the storage
facilities is due to causes required to be insured against under this
Regulation.
(d) To furnish the Exchange with either a copy of the current insurance policy
or policies, or a written confirmation from the insurance company that such
insurance has been effected.
(e) To advise the holder of the warehouse receipts when oil is tendered on a
futures contract. the freight rate on the oil upon request to New York,
N.Y., or to any other specific destinations; and to forward the oil on the
basis of these rates whenever shipping instructions are received if orders
are received within three days.
(f) To register their daily load-out rate in jumbo rail tank car equivalents
(minimum of 4) with the Exchange. Warehouse Operators shall limit warehouse
receipts issued to an amount of soybean oil equal to the lesser of their
approved regular space or 30 times the registered daily loading rate for
jumbo tank cars times 185,000 pounds.
(g) To ship oil ordered out of the warehouses in Buyer's tank cars, if so
arranged and to begin loading out soybean oil on or before the third
business day following the date the car is ready for loading or the receipt
is cancelled, whichever occurs later, at a daily rate per business day
equal to the equivalent of shipper's registered daily rate of loading jumbo
rail tank cars.
All rail loading orders received prior to 2:00 p.m. on a given business day
shall be considered dated that day and shall be entitled to equal
treatment. Rail loading orders received after 2:00 p.m. on a business day
shall be considered dated the following business day. When loading against
rail loading orders and shipping instructions received by a shipper prior
to 2:00 p.m. on a given business day, as determined hereunder, cannot be
completed on the third following business day, the shipper shall allocate
daily loading against such loading orders as equitably as possible on a
pro-rata basis on subsequent business days. Loading against all rail orders
scheduled for a given business day shall be completed before loading of any
orders scheduled for a subsequent business day.
(h) To load each tank car to its stenciled capacity upon surrender of
sufficient warehouse receipts tendered on futures contracts. Any excess or
deficiency from amount of warehouse receipt shall be settled at market
price as of date of loading. Warehouse to make sight draft on shipper with
Bill of Lading attached for any amounts due them in connection with loading
oil, including premium for refining loss, unless otherwise mutually agreed.
(i) To hold tank car after loading free of expense to shipper (except for car
rental) until grade is
Ch11 Regularity of Warehouses
ascertained, and if grade is not of contract grade to unload car and reload
oil of contract quality free of expense to shipper, and at all times to
keep oil fully insured until car is released to railroad.
(j) To ship oil ordered out of the warehouse in Buyer's tank truck, if so
arranged, and to load the oil at a daily rate per business day equal to the
equivalent of shipper's registered daily rate of loading for jumbo rail
tank cars.
All truck loading orders received prior to 2:00 p.m. on a given business
day shall be considered dated that day and shall be entitled to equal
treatment. Truck orders received after 2:00 p.m. on a business day shall be
considered dated the following business day.
When loading orders are received by 2:00 p.m. of any given business day,
the shipper will advise the owner by 4:00 p.m. the same day of loading
dates and tonnage due. Notification will be by telephone, telegraph or
teletype.
When a shipper has received one or more truck loading orders he shall begin
loading against them not later than the third business day following their
receipt. When loading against loading orders and shipping instructions
received by a shipper prior to 2:00 p.m. on a given business day cannot be
completed on the third following business day shipper shall allocate daily
loadings against such loading orders as equitably as possible on a pro rata
basis on subsequent business days.
Loading against all truck orders scheduled for a given business day shall
be completed before loading begins on any orders scheduled for a subsequent
business day. Warehouseman will load tank trucks as promptly as possible on
the day scheduled. Under no conditions will warehouseman be responsible for
truck demurrage as long as it is loaded on day scheduled. Additional
loadings may be arranged for by mutual agreement.
(k) Notwithstanding any other provisions of this Regulation, on days when both
rail cars and trucks are loaded, the warehouseman shall be required to load
at a minimum daily rate equal to the equivalent of shipper's registered
daily rate of loading rail tank cars.
All rail and truck loading orders received prior to 2:00 p.m. on a given
business day shall be considered dated that day and shall be entitled to
equal treatment. Loading orders received after 2:00 p.m. on a business day
shall be considered dated the following business day. When loading against
loading orders and shipping instructions received by a shipper prior to
2:00 p.m. on a given business day, as determined hereunder, cannot be
completed on the third following business day, the shipper shall allocate
daily loading against such loading orders as equitably possible on a pro-
rata basis on subsequent business days. Loading against orders scheduled
for a given business day shall be completed before loading of any orders
for a subsequent business day.
(l) To keep stock of Crude Soybean Oil in storage in balance with oil
represented by outstanding warehouse receipts.
It shall be the privilege of all regular warehouses to mingle or store
together oil which is tenderable on contracts for future delivery under
these Regulations, with other oil of like type and to deliver on loading
orders oil of any contract type. 2031
(m) Certification of Soybean Oil - Effective September 1, 1992 and upon written
request by a taker of delivery at the time loading orders are submitted for
the delivery of soybean oil against canceled warehouse receipts, the
delivery warehouseman shall certify in writing to the taker of delivery on
the day that the transportation conveyance is loaded that the soybean oil
is produced from soybeans of U.S. origin only. Warehouse receipts issued
prior to September 1, 1992 will be deliverable against futures contracts
beginning September 1992 only if the regular warehouseman provides
certification on the warehouse receipt that the U.S. origin-only option is
available to the taker of delivery of soybean oil. (01/01/04)
1180.01A Responsibility for Furnishing Tank Cars - It shall be the
responsibility of the buyer of Crude Soybean Oil on a futures contract to
furnish tank cars when ordering Soybean Oil shipped from a warehouse. 26R
(09/01/94)
1180.01B Car Ready for Loading - Regulation 1180.01(f) A car is ready for
loading when it has
Ch11 Regularity of Warehouses
been constructively placed and when the shipper has used due diligence in
preparing and placing the car on his property for loading. 30R1180.01C Transit
vs. Flat Rate (09/01/94)
1180.01C Transit vs. Flat Rate Billing - If warehouseman furnishes transit
billing on crude soybean oil applicable to warehouse receipts holder's
destination, the warehouse receipt holder shall pay to warehouseman the
difference between the transit balance rate and the flat rate. 27R (09/01/94)
1180.01D Freight Differentials - Jumbo Tank Cars - The Board of Directors at
its regular meeting held on Tuesday, March 10, 1964, approved the following
Ruling recommended by the Crude Soybean Oil and Soybean Meal Committee in light
of the reduced rate on jumbo tank cars which became effective on February 9,
1964:
"Effective on March 1964 contracts the freight differentials in Regulations
1141.02 and 1180.02 shall be calculated on the basis of the jumbo tank car rate
since it is the lowest lawful carload rate and will be applicable to warehouse
receipts bearing no billing and any other warehouse receipts carrying billing
that will protect the jumbo tank car rate." 36R (09/01/94)
1180.02 Transit Billing - Transit billing may be applied to shipments at
warehouseman's option with warehouseman to get any advantage of such transit
application; however, warehouseman must protect the lowest lawful local carload
rate from point of loading stated in warehouse receipt to destination indicated
in shipping instructions, and such transit billing must allow at least one
additional transit beyond delivery points. 2016 (09/01/94)
1180.03 Freight Charges - A warehouseman that is not served by a Class I
railroad must compensate the taker of delivery for the switching charge and/or
the rail rate to the nearest Class I railroad interchange point for the movement
of soybean oil beyond the interchange point by the Class I railroad, if
requested by the owner of the soybean oil. The request must be in writing when
loading orders and canceled warehouse receipts are presented to the warehouse.
(01/01/00)
1181.01 Conditions of Regularity - Warehouses may be declared regular for the
delivery of Crude Soybean Oil with the approval of the Exchange. Persons
operating bulk oil warehouses who desire to have such warehouses made regular
for delivery of Crude Soybean Oil under the Rules and Regulations shall make
application for an initial Declaration of Regularity on a form prescribed by the
Exchange prior to May 1 of an even year, for a two year term beginning July 1 of
that year, and at any time during a current term for the balance of that term.
Regular Soybean Oil Warehouses that desire to increase their regular capacity
during a current term shall make application for the desired amount of total
regular capacity on the same form. Initial regularity for the current term and
increases in regularity shall be effective either thirty days after a notice
that a bona fide application has been received is posted by the Exchange, or the
day after the application is approved by the Exchange, whichever is later.
Persons operating Soybean Oil Warehouses who desire to have their daily rate of
loading decreased, shall file with the Exchange a written request for such
decrease. The decrease in the daily rate of loading for the facility will become
effective 30 days after a notice has been posted by the Exchange or the day
after the number of outstanding receipts at the facility is equal to or less
than 30 times the requested rate of loading, whichever is later. Persons
operating Soybean Oil Warehouses who wish to have their regular capacity space
decreased shall file with the Exchange a written request for such decrease and
such decrease shall be effective once a notice has been posted by the Exchange.
Applications for renewal of regularity must be made prior to May 1 of even
years, for the respective years beginning July 1 of those years, and shall be on
the same form.
The Exchange may establish such requirements and conditions for approval of
regularity as it deems necessary.
The following shall constitute the minimum requirements and conditions for
regularity of Soybean Oil Warehouses:
1) The warehouse making application shall be inspected.
2) Such warehouse shall be within the limitation of an area not east of the
Indiana-Ohio boundary; nor south of Louisville, KY.
3) Such warehouse shall be connected by railroad tracks with one or more
railway lines.
4) The operator or manager of such warehouse shall be in good financial
standing and credit, and shall meet the minimum financial requirements and
financial reporting requirements set forth in Appendix 4E. No warehouse
shall be declared regular until the person operating the same files a bond
and/or designated letter of credit with sufficient sureties in such sum and
subject to such conditions as the Exchange may require.
5) Such warehouse shall maintain on-site standard equipment and appliances for
the receiving, handling, and shipping of Crude Soybean Oil in bulk,
including equipment to issue official origin weight. Official origin weight
may be obtained by using one of the following: (1) platform scale (either
rail or truck); (2) tank scale; or, (3) batch scale.
1112
6) The warehouseman shall comply with the system of registration of warehouse
receipts established by the Exchange. The warehouseman shall furnish
accurate information to the Exchange regarding all Crude Soybean Oil
received and delivered by the warehouseman on a daily basis, and that
remaining in store at the close of each week, in the form prescribed by the
Exchange, with the exception of Crude Soybean Oil owned by the
warehouseman.
7) The operator or manager of such warehouse shall permit the Exchange, at any
time, to examine the books and records of the warehouse for the purpose of
ascertaining the stocks of Crude Soybean Oil which may be on hand at any
time. The Exchange shall have the authority to determine the quantity of
Crude Soybean Oil in said warehouse and to compare the books and records of
warehouse with the records of the Exchange.
8) The warehouseman operating such warehouse shall not engage in unethical or
inequitable practices, and shall comply with all applicable laws, Federal
or State, or Rules or Regulations promulgated under those laws.
9) The warehouseman shall make such reports, keep such records, and permit
such warehouse visitation as the Secretary of Agriculture may prescribe,
and shall comply with all applicable Rules and Regulations and orders
promulgated by the Secretary of Agriculture or the Commodity Futures
Trading Commission, and shall comply with all requirements made by the
Exchange because of such Rules and Regulations or orders.
10) The operator or manager of such warehouse shall be subject to the
Exchange's Rules and Regulations pertaining to arbitration procedures, as
set forth in Chapter 6, and, with respect to compliance with Rules and
Regulations pertaining to a warehouse's regularity, shall be subject to the
Exchange's Rules and Regulations pertaining to disciplinary procedures, as
set forth in Chapter 5.
11) The operator or manager of such warehouse shall consent to the disciplinary
jurisdiction of the Exchange for five years after such regularity lapses,
for conduct pertaining to regularity which occurred while the warehouse was
regular.
12) If the warehouseman leases the warehouse or has entered into some form of
service arrangement pursuant to which an agent or contractor performs the
daily operations of the warehouse, the warehouseman shall submit an
indemnification if requested by the Exchange.
13) The Exchange may determine not to approve warehouses for regularity or
increases in regular capacity of existing regular warehouses, in its sole
discretion, regardless of whether such warehouses meet the preceding
requirements and conditions. Some factors that the Exchange may, but is not
required to, consider in exercising its discretion may include, among
others, whether warehouse receipts issued by such warehouses, if tendered
in satisfaction of futures contracts, might be expected to adversely affect
the price discovery function of Soybean Oil futures contracts or impair the
efficacy of futures trading in Soybean Oil, or whether the currently
approved regular capacity provides for an adequate deliverable supply.
2030(01/01/04)
1181.02 Leasing and Service Arrangements - The warehouseman of a regular
warehouse is not required to own the warehouse and may lease the facility from
the owner. The warehouseman may also enter into a service arrangement pursuant
to which an agent or contractor performs the daily operations of the warehouse.
The warehouseman shall be responsible for the conduct of its agents or
contractors.
In the event that the warehouseman is unable properly to store or load out oil
for receipt holders because of another party's ownership of or control over the
warehouse, the warehouseman shall, at its own expense, provide each holder of an
outstanding receipt with either (a) a replacement warehouse receipt at another,
mutually acceptable regular warehouse, with adjustments for differences in
contract differentials or, if such replacement receipt is unavailable, (b) an
equivalent quantity and quality of the soybean oil designated in the warehouse
receipt at a mutually acceptable location. (09/01/94)
1184.01 Revocation, Expiration or Withdrawal of Regularity - Any regular
warehouse may be declared irregular at any time if it does not comply with the
conditions above set forth, or fails to carry out the prescribed duties of the
warehouseman. If the designation of a warehouse as regular shall be revoked a
notice of such revocation and the period of time, if any, during which the
receipts issued by such house shall thereafter be deliverable in satisfaction of
futures contracts in Crude Soybean Oil under the Rules and Regulations, shall be
posted on the bulletin board.
In the event of revocation, expiration or withdrawal of regularity, or in the
event of sale or abandonment
1113
Ch11 Regularity of Warehouses
of the properties where regularity is not reissued, holders of outstanding
warehouse receipts shall be given thirty days to take load-out of the commodity
from the facility. If a holder of an outstanding warehouse receipt chooses not
to take load-out during this period, the facility must provide him with another
warehouse receipt at another, mutually acceptable regular warehouse, with
adjustments for differences in contract differentials. Alternatively, if such
warehouse receipt is unavailable, the facility must provide the holder with an
equivalent quantity and quality of the soybean oil designated in the warehouse
receipt at a mutually acceptable location. 2032 (09/01/94)
1185.01 Application for Declaration of Regularity - All applications by
operators of warehouses for a Declaration of Regularity under Regulation 1181.01
shall be on the following form:
WAREHOUSEMAN'S APPLICATION FOR A DECLARATION OF REGULARITY
FOR CONTRACTS FOR FUTURE DELIVERY UNDER THE RULES AND REGULATIONS OF THE
BOARD OF TRADE OF THE CITY OF CHICAGO, INC. FOR THE DELIVERY OF CRUDE
SOYBEAN OIL
__________, 20__
BOARD OF TRADE OF THE CITY OF CHICAGO, INC.
Chicago, Illinois
________________________________-hereinafter called "Warehouseman")
(Warehouseman name)
owner/lessee* of the __________________________________________ located at
(Circle one) (Processing Plant or Storage Facility)
______________________________ in the following territory,
(Address, City, State, Zip)
(Please indicate which territory you are applying for.)
Illinois Territory ___________ Southwest Territory ___________
Eastern Territory ___________ Eastern Iowa Territory ___________
Northern Territory ___________ Western Territory ___________
hereby submits this application to the Board of Trade of the City of Chicago,
Inc. (hereinafter called "Exchange") for a Declaration of Regularity to issue
Warehouse Receipts for the delivery of Crude Soybean Oil upon contracts for
future delivery for a period beginning on July 1, 20__ and ending June 30, 20__.
The Warehouseman has a storage capacity of _____________________ pounds of Crude
Soybean
Oil, is licensed/not licensed by the State of _________, and has/does not have a
(circle one) (Circle one)
Soybean processing plant attached with a maximum 24 hour crushing capacity of
bushels of Soybeans per day.
*Please include a copy of the lease or service agreement with application.
Conditions of Regularity
A declaration of regularity, if granted, may be revoked by the Exchange whenever
the following conditions, or any other conditions specified in Regulation
1181.01 or duties specified in Regulation 1180.01, or any other relevant Rules
and Regulations are not observed:
1. The Warehouseman must:
(1) submit bonds or letters of credit to the Exchange as it may require.
(2) submit to the Exchange a tariff listing in detail the maximum rates
for the handling and storage of Crude Soybean Oil; submit promptly to
the Exchange all changes in such tariff; and publish and display such
tariff.
The maximum charges for loading tank cars and trucks at delivery
points shall not exceed the loading charges defined in Rule 1156.04.
The maximum storage charges on Crude Soybean Oil shall not exceed the
storage charges defined in Regulation 1156.01.
(3) remove no CBOT registered Crude Soybean Oil from the warehouse unless
the receipts have been previously cancelled by the Registrar's Office.
(4) notify the Exchange immediately of any change in its capital
ownership, or any reduction in net worth of 20 percent or more from
the level reported in the last financial statement filed with the
Exchange, or of any change in the physical condition of the warehouse.
(5) make such reports, keep such records, and permit such warehouse
visitation as the Exchange or the Commodity Futures Trading Commission
(CFTC) may require; and comply with all applicable Rules and
Regulations of the Exchange and the CFTC.
(6) insure against the contingencies provided for in a standard "All
Risks" policy (including earthquake), in such amounts as required by
the Exchange.
(7) submit an application for renewal of a declaration of regularity in
writing on or before May 1/st/ every even year.
(8) if the Warehouseman leases the warehouse or has entered into some form
of service agreement pursuant to which an agent or contractor performs
the daily operations of the warehouse, Warehouseman remains
responsible for compliance with all duties and conditions of
regularity and shall be responsible for the conduct of its agents or
contractors.
(9) notify the Exchange in writing immediately of any change in the
maximum 24 hour crushing capacity of soybeans for a soybean processing
plant attached to this warehouse.
2. The Warehouse must be:
(1) subject to the prescribed examination and approval of the Exchange.
(2) connected to a railroad. (See Regulation 1180.03)
(3) equipped with standard equipment and appliances for the convenient and
expeditious handling of Crude Soybean Oil in bulk.
3. The Warehouse and Warehouseman must conform to the requirements of the
Exchange as to location, accessibility, and suitability as may be
prescribed by the Rules and Regulations of the Exchange.
Agreements of Warehouseman
The Warehouseman expressly agrees:
(1) that all Crude Soybean Oil tendered in satisfaction of futures
contracts will be weighed by an Official Weigher as outlined in
Regulation 1139.01 of the Exchange.
(2) that all Crude Soybean Oil tendered in satisfaction of futures
contracts will, when shipped from Warehouse, be sampled by an Official
Sampler, which has been approved by the Exchange, and tested in
accordance with Regulation 1140.01 of the Exchange.
(3) that all warehouse receipts to be tendered in satisfaction of futures
contracts shall be registered with the Registrar of the Exchange.
(4) to abide by the Rules and Regulations of the Exchange relating to the
warehousing of Crude Soybean Oil deliverable in satisfaction of
futures contracts and the delivery thereof, including the duties set
forth in Regulation 1180.01.
(5) that the Exchange may revoke the Warehouseman's declaration of
regularity if granted, for any breach of these agreements.
(6) that the signing of this application constitutes a representation that
the conditions of regularity are complied with and will be observed
during the life of the declaration of regularity and, if found to be
untrue, the Exchange shall have the right to revoke the declaration of
regularity immediately.
(7) to designate a clearing agent in Chicago authorized to act upon the
warehouseman's behalf in matters pertaining to Warehouse Receipts.
(8) to be subject to the Exchange's Rules and Regulations, the
disciplinary procedures set forth in Chapter 5, and the arbitration
procedures set forth in Chapter 6 and to abide by and comply with the
terms of any disciplinary decision imposed upon the Warehouseman or
any arbitration award issued against it pursuant to the Exchange's
Rules and Regulations.
(9) to consent to the disciplinary jurisdiction of the Exchange for five
years after regularity lapses for conduct which occurred while the
Warehouseman was regular.
Please be advised that, pursuant to Regulation 1181.01(13), the Exchange may
determine not to approve warehouses for regularity or increases in regular
capacity of existing regular warehouses, in its sole discretion, regardless of
whether such warehouses meet the conditions of regularity specified in
Regulation 1181.01. Some factors the Exchange may, but is not required to,
consider in exercising its discretion may include, among others, whether
warehouse receipts issued by such warehouses, if tendered in satisfaction of
futures contracts, might be expected to adversely affect the price discovery
function of Soybean Oil futures contracts or impair the efficacy of futures
trading in Soybean Oil, or whether the currently approved regular capacity
provides for an adequate deliverable supply.
By:_________________________________
(Name)
Title: _____________________________
Date: _____________________________
(03/01/04)
1114
Ch11 Regularity of Warehouses
1186.01 Regular Shippers - (See Appendix 11A) (09/01/94)
1115
[Enlarge/Download Table]
================================================================================
Chapter 12
Soybean Meal
================================================================================
Ch12 Trading Conditions............................................................
1201.00 Authority......................................................
1202.01 Application of Regulations.....................................
1204.01 Unit of Trading................................................
1205.01 Months Traded In...............................................
1206.01 Price Basis....................................................
1207.01 Hours of Trading...............................................
1208.01 Trading Limits.................................................
1208.01A Trading Limits.................................................
1209.01 Last Day of Trading............................................
1210.01 Margin Requirements............................................
1211.01 Disputes.......................................................
1212.01 Position Limits and Reportable Positions.......................
Ch12 Delivery Procedures...........................................................
1236.01 Standards......................................................
1236.02 United States Origin Only......................................
1237.01 Official Chemists..............................................
1238.01 Sampling.......................................................
1239.01 Weighing.......................................................
1241.01 Shipping Plants................................................
1242.01 Deliveries by Soybean Meal Shipping Certificates...............
1243.01 Registration of Soybean Meal Shipping Certificates.............
1244.01 Certificate Format.............................................
1246.01 Date of Delivery...............................................
1247.00 Delivery Notice................................................
1247.01 Delivery Notices...............................................
1248.00 Method of Delivery.............................................
1249.00 Time of Delivery, Payment, Form of Delivery Notice.............
1249.01 Time of Issuance of Delivery Notice............................
1249.02 Buyers' Report of Eligibility to Receive Delivery..............
1249.03 Sellers' Invoice to Buyers.....................................
1249.04 Payment........................................................
1250.00 Duties of Members..............................................
1250.01 Failure to Deliver ............................................
1251.01 Office Deliveries Prohibited...................................
1254.00 Failure to Accept Delivery.....................................
1254.01 Failure to Accept Delivery ....................................
1256.01 Premium Charges................................................
1256.03 Payment of Fees................................................
Ch12 Regularity of Issuers of Shipping Certificates................................
1290.01 Loading and Shipment of Meal Against Soybean Meal
Shipping Certificates..........................................
1291.01 Conditions of Regularity.......................................
1294.01 Revocation, Expiration or Withdrawal of Regularity.............
1295.01 Application for Declaration of Regularity......................
1296.01 Regular Shippers...............................................
================================================================================
Chapter 12
Soybean Meal
================================================================================
Ch12 Trading Conditions
1201.00 Authority - On and after August 1,1951, trading in Soybean Meal
futures may be conducted under such terms and conditions as may be prescribed by
Regulation. 802 (09/01/94)
1202.01 Application of Regulations - Transactions in Soybean Meal futures
shall be subject to the general Rules of the Association as far as applicable
and shall also be subject to the Regulations contained in this Chapter which are
exclusively applicable to trading in Soybean Meal. 2051 (09/01/94)
1204.01 Unit of Trading - The unit of trading for Soybean Meal shall be 100
tons (2,000 pounds per ton). Bids and offers may be accepted in lots of 100 tons
of multiples thereof. 2056 (09/01/94)
1205.01 Months Traded In - Trading in Soybean Meal may be conducted in the
current month and any subsequent months. 2057 (09/01/94)
1206.01 Price Basis - All prices of soybean meal shall be basis free on board
cars, bulk; Decatur, Illinois, in multiples of 10 cents per ton. Contracts shall
not be made on any other price basis. 2058 (09/01/94)
1207.01 Hours of Trading - The hours of trading for future delivery in Soybean
Meal shall be from 9:30 A.M. to 1:15 P.M. except on the last day of trading in
an expiring future the hours with respect to such future shall be from 9:30 A.M.
to 12 o'clock noon subject to the provisions of the second paragraph of Rule
1007.00. Market shall be opened and closed with a public call made month by
month, conducted by such persons as the Regulatory Compliance Committee shall
direct. 2061 (09/01/94)
1208.01 Trading Limits - (See 1008.01) (09/01/94)
1208.01A Trading Limits - (See 1008.01A) (09/01/94)
1209.01 Last Day of Trading - No trades in Soybean Meal futures deliverable in
the current month shall be made after the business day preceding the 15th
calendar day of that month. Any contracts remaining open after the last day of
trading must be either:
(a) Settled by delivery no later than the second business day following the
last trading day (tender on business day prior to delivery).
(b) Liquidated by means of a bona fide exchange of futures for the actual cash
commodity, or an over-the-counter transaction, no later than the business
day following the last trading day. 2063 (07/01/03)
1210.01 Margin Requirements - (See Regulation 431.03) 2065 (09/01/94)
1211.01 Disputes - All disputes between interested parties may be settled by
arbitration as provided in the Rules and Regulations. 2066 (09/01/94)
1212.01 Position Limits and Reportable Positions - (See 425.01) (09/01/94)
Ch12 Delivery Procedures
1236.01 Standards - The contract grade for delivery on futures contracts made
under these Regulations shall be Soybean Meal in bulk which conforms to the
following specifications:
48% Protein Soybean Meal, produced by conditioning ground soybeans and reducing
the oil content of the conditioned product by the use of hexane or homologous
hydrocarbon solvents. Standard specifications are:
----------------------------------------------------------------
Protein minimum 48.0%
----------------------------------------------------------------
Fat minimum 0.5%
----------------------------------------------------------------
Fiber maximum 3.5%
----------------------------------------------------------------
Moisture (when shipped by Processor) maximum 12.0%
----------------------------------------------------------------
It may contain a non-nutritive inert, non-toxic conditioning agent to reduce
caking and improve flowability. In an amount not to exceed that necessary to
accomplish its intended effect, but in no case exceed 0.5%. The name of the
conditioning agent must be shown as an added ingredient.
Testing methods shall be those approved by the Association of Official
Analytical Chemists and American Oil Chemists Society. 2053 (09/01/94)
1236.02 United States Origin Only - Effective September 1, 1992, a futures
contract for the sale of soybean meal shall be performed on the basis of United
States origin only upon written request by a taker of delivery at the time
loading orders are submitted. (09/01/94)
1237.01 Official Chemists - An official Chemist shall be any chemist who is
currently designated as an Official Referee Chemist for Meal by the National
Soybean Processors Association. Certificates of quality analysis by an Official
Chemist shall be binding on all parties. (09/01/94)
1238.01 Sampling - The official sample will be taken at origin by Automatic
Mechanical Sampler (A.O.C.S. Official Method BA 1-38, Rev. 1966) or Pneumatic
Probe Sampler (A.O.C.S. Official Method BA 1-38, Rev. 1966). Shipper shall, on
the next business day after loading, mail a portion of the official sample in an
air tight container properly identified to the owner at an address specified by
the owner when he submits loading orders.
Any shipment testing 12.5% moisture or less based on official sample shall not
be subject to rejection or penalty on account of moisture content. Penalty for
excess moisture:
Excess moisture two times delivered market price on date of shipment for
excess moisture from 12% to 13% and 21-2 times delivered market price on
date of shipment for excess moisture above 13%.
Any shipment testing no more than 0.3% of fiber above the fiber
specification (based on official sample adjusted to 12% moisture) shall
not be subject to rejection or penalty on account of fiber content. When
the amount of fiber exceeds 3.8% (based on official sample adjusted to
12% moisture), the shipment shall be discounted 1.0% of the delivered
market price on date of shipment for each 0.1% fiber in excess of 3.5%.
Any shipment of soybean meal testing within 0.5% of protein below 48%
protein (basis official sample moisture 12.0% or less; protein to be
calculated on 12.0% moisture basis if official sample moisture exceeds
12.0%) shall not be subject to rejection or penalty on account of
protein content. Protein deficiency claims shall be settled between the
parties on the basis of two times the delivered market price per unit of
protein on date of shipment and shall be calculated on the same moisture
basis as for protein rejection.
If the owner's analysis of the official sample indicates quality deficiency, the
owner shall submit his analysis and claim in writing to the shipper within 30
days after arrival of car. The shipper shall, within five (5) business days,
after receipt of the owner's analysis and claim, report his analysis of the
official sample to the owner. In the event that the owner and the shipper do not
reach agreement on analysis and/or settlement, the third portion of the official
sample shall be sent to an Official Chemist and his analysis will be binding
upon both parties for final settlement. The expense of the analysis will be
borne
Ch12 Delivery Procedures
------------------------
by the party in error.
If the owner and the shipper cannot agree that the official sample is
representative of the shipment, a representative sample shall be obtained at
destination by a disinterested qualified person mutually agreed upon by the
owner and shipper. Such destination sample must be obtained within 24 hours of
arrival and prior to unloading. "Constructive placement" shall be considered
arrival at destination. The official procedure for sampling at destination shall
be the Pneumatic Probe Sampler. (A.O.C.S. Method BA 1-38, Rev. 1966) and the
sample shall be submitted to an official chemist. The results of his analysis of
the destination sample shall be binding on both parties for final settlement.
The expense of such sampling and analysis, shall be borne by the owner if the
owner insists on destination sampling and analysis unless the shipper has failed
to take an official sample at origin, in which event, the expense of taking and
analyzing the destination sample shall be borne by the shipper. (09/01/94)
1239.01 Weighing - Weighing and official weights, as defined in the National
Soybean Processors Association Trading Rules for the Purchase and Sale of
Soybean Meal, shall be binding on all interested parties. (09/01/94)
1241.01 Shipping Plants - Soybean Meal Shipping Certificates shall specify
shipment from one of the plants currently regular for delivery and located in
Central Territory, Northeast Territory, Mid South Territory, Missouri Territory,
Eastern lowa Territory, or Northern Territory as defined in this Regulation.
The Exchange may declare additional shipping plants regular for delivery which
shall apply on all contracts outstanding or made thereafter.
SHIPPING PLANTS
(a) All loadings of soybean meal against Soybean Meal Shipping Certificates
shall be in bulk free on board railroad cars at shipping plants.
(b) Payment for Shipping Certificates issued in "Central Territory" (viz.:
shipping plants located in Illinois and Kentucky) will be at contract
price.
(c) Payment for Shipping Certificates issued in "Northeast Territory" (viz.:
shipping plants located in Indiana and Ohio) will be at a premium of $3.00
per ton over contract price.
(d) Payment for Shipping Certificates issued in "Mid South Territory" (viz.:
shipping plants located in all of Tennessee and Arkansas and that part of
Mississippi and Alabama north of a line extending eastward from the
Arkansas and Louisiana border) will be at a premium of $8.00 per ton over
contract price.
(e) Payment for Shipping Certificates issued in "Missouri Territory" (viz.:
shipping plants located in Missouri) will be at a premium of $2.50 per ton
over contract price.
(f) Payment for Shipping Certificates issued in "Eastern lowa Territory" (viz.:
shipping plants located in lowa on and South of the main line of the
Illinois Central Gulf RR from Dubuque, lowa to lowa Falls, lowa; and on and
East of the main line of the Chicago Rock Island RR from lowa Falls to the
Chicago & Northwestern RR from Des Moines through Blockton, lowa) will be
made at a discount of $3.00 per ton under contract price.
(g) Payment for Shipping Certificates issued in "Northern Territory" (viz.:
shipping plants located in that portion of lowa not included in "Eastern
lowa Territory") will be at a discount of $2.00 per ton under contract
price.
(h) For a given soybean crop year ending August 31 and a given Soybean Meal
futures delivery territory except the "Central Territory," when the weekly
(as of Friday) cumulative average ratio of outstanding Soybean Meal
Shipping Certificates to CBOT maximum 24 hour soybean meal production
capacity within that Soybean Meal futures delivery territory, relative to
that ratio for the combined remaining Soybean Meal territories, is less
than or equal to 0.5, payment for Shipping Certificates issued from that
territory will be at a premium of $.50 per ton over contract price in
addition to the territorial delivery differential adjustment.
(i) For a given soybean crop year ending August 31, when the "Central
Territory's" weekly (as of Friday) cumulative average ratio of outstanding
Soybean Meal Shipping Certificates to maximum
Ch12 Delivery Procedures
------------------------
CBOT 24 hour soybean meal production capacity within the Central Soybean
Meal futures delivery territory, relative to that ratio for the combined
remaining Soybean Meal territories, is less than or equal to 0.5, payment
for Shipping Certificates issued from all other territories will be at a
discount of $.50 per ton under contract price in addition to the
territorial delivery differential adjustments.
(j) For a given soybean crop year ending August 31 and a given Soybean Meal
futures delivery territory except the "Central Territory," when the weekly
(as of Friday) cumulative average ratio of outstanding Soybean Meal
Shipping Certificates to CBOT maximum 24 hour soybean meal production
capacity within that Soybean Meal futures delivery territory, relative to
that ratio for the combined remaining Soybean Meal territories, is greater
than or equal to 2.0, payment for Shipping Certificates issued from that
territory will be at a discount of $.50 per ton under contract price in
addition to the territorial delivery differential adjustment.
(k) For a given soybean crop year ending August 31, when the "Central
Territory's" weekly (as of Friday) cumulative average ratio of outstanding
Soybean Meal Shipping Certificates to CBOT maximum 24 hour soybean meal
production capacity within the Central Soybean Meal futures delivery
terriory, relative to that ratio for the combined remaining Soybean Meal
territories, is greater than or equal to 2.0, payment for Shipping
Certificates issued from all other territories will be at a premium of $.50
per ton over contract price in addition to the territorial delivery
differential adjustments.
(l) Items (h) through (k) of Regulation 1241.01 shall apply to all CBOT Soybean
Meal futures contracts delivered during a one calendar year period
beginning with January following the soybean crop year ending August 31,
provided that there are on a weekly average at least 150 CBOT outstanding
Soybean Meal Shipping Certificates in all Soybean Meal delivery territories
combined during that previous soybean crop year.
(m) Based on the adjustments made to territorial delivery differentials during
a given calendar year as outlined in items (h) through (I) of Regulation
1241.01, the CBOT shall announce and publish by September 15 of that given
calendar year new territorial delivery differentials applicable to all
Soybean Meal futures contracts delivered during the next calendar year.
(01/01/05)
1242.01 Deliveries by Soybean Meal Shipping Certificates - Deliveries of
Soybean Meal shall be made by delivery of Soybean Meal Shipping Certificates
issued by Shippers designated by the Exchange as regular to issue Soybean Meal
Shipping Certificates using the electronic field which the Exchange and the
Clearing Services Provider require to be completed. In order to effect a valid
delivery each Soybean Meal Shipping Certificate must be endorsed by the holder
making the delivery, and transfer as specified above constitutes endorsement.
Such endorsement shall constitute a warranty of the genuineness of the
Certificate and of good title thereto, but shall not constitute a guaranty, by
any endorser, of performance by the issuer of the Certificate. Such endorsement
also shall constitute a representation that all premium charges have been paid
on the Soybean Meal covered by the Certificate, in accordance with Regulation
1256.01.2067 (12/01/03)
1243.01 Registration of Soybean Meal Shipping Certificates - Soybean Meal
Shipping Certificates in order to be eligible for delivery must be registered
with the Official Registrar and in accordance with the requirements issued by
the Registrar. Registration of Soybean Meal Shipping Certificates shall also be
subject to the following requirements:
(a) Shippers who are regular for delivery may register certificates at any
time. If the shipper determines not to tender the shipping certificate by
4:00 p.m. on the day it is registered, or by such other time designated by
the Exchange, the shipper shall declare the certificate is withdrawn but is
to remain registered by transmitting to the Registrar the certificate
number and the name and location of the shipping plant. The holder of a
registered certificate may cancel its registration at any time. A
certificate which has been cancelled may not be registered again.
(b) No notice of intention to deliver a certificate shall be tendered to the
Clearing Services Provider unless said certificate is registered and in the
possession of the clearing member tendering the notice or unless a shipping
certificate is registered and outstanding. When a notice of intention to
deliver a certificate has been tendered to the Clearing Services Provider,
said certificate shall be considered to be "outstanding" until its
registration is cancelled.
(c) From his own records, the Registrar shall maintain a current record of the
number of certificates that are registered and shall be responsible for
posting this record on the Exchange Floor and the CBOT website. The record
shall not include any shipping certificates that have been declared
withdrawn.
(d) When a registered shipper regains control of a registered certificate
calling for shipment from one of his plants, which is any manner relieves
him of the obligation of ship meal upon demand of a party other than
himself, the shipper shall, by 4:00 p.m. of that business day, or by such
other time designated by the Exchange, either cancel the registration of
said certificate or declare that said certificate is withdrawn but is to
remain registered by transmitting to the Registrar the certificate number
and the name and location of the shipping plant, except in the case where a
notice of intention to redeliver said certificate for the shipper has been
tendered to the Clearing Services Provider by 4:00 p.m. or by such other
time designated by the Exchange, of the day that the shipper regained
control of said certificate.
(e) The Registrar shall not divulge any information concerning the
registration, delivery or cancellation of certificates other than the
record posted on the Exchange Floor and the CBOT website, except that he
shall issue a daily report showing the total number of registered
certificates as of 4:00 p.m., or by such other time designated by the
Exchange, on each trading day of the week. In addition to the information
posted on the Exchange Floor and the CBOT website, this daily report will
show the names of shippers whose certificates are registered and the
location of the shipping plants involved. This report shall not include any
shipping certificates which have been declared withdrawn. 2069 (12/01/03)
Ch12 Delivery Procedures
------------------------
1244.01 Certificate Format - The Exchange and the Clearing Services Provider
shall determine the electronic fields which are required to be completed in
connection with an electronic shipping certificate.
The electronic shipping certificate obligates the shipper, for value received
and receipt of the certificate properly endorsed, and subject to a lien for
payment of premium charges, to deliver the specified quantity of Soybean Meal
conforming to the standards of the Exchange, and to ship such Soybean Meal in
accordance with orders of the lawful owner of the certificate and in accordance
with the Rules and Regulations of the Exchange. Delivery shall be by rail or
truck according to the registered loading capability of the shipper.
Delivery of the electronic shipping certificate to the issuer by the owner of
the certificate, for the purpose of shipment of Soybean Meal, is conditioned
upon loading of Soybean Meal in accordance with the Rules and Regulations of the
Exchange, and a lien is claimed until all loadings are complete and proper
shipping documents presented accompanying demand draft for freight and premium
charges due which the owner of the certificate agrees to honor upon
presentation. (12/01/03)
Ch12 Delivery Procedures
------------------------
1246.01 Date of Delivery - Delivery of Soybean Meal Shipping Certificates may
be made by the Seller upon any permissible delivery day of the delivery month
but no later than the second business day following the last day of trading in a
delivery month. 2072 (09/01/94)
1247.00 Delivery Notice - (See 1047.00) (09/01/94)
1247.01 Delivery Notices - (See 1047.01) (09/01/94)
1248.00 Method of Delivery - (See 1048.00) (09/01/94)
1249.00 Time of Delivery, Payment, Form of Delivery Notice - (See 1049.00)
(09/01/94)
1249.01 Time of Issuance of Delivery Notice - (See 1049.c (02/01/03)
1249.02 Buyers' Report of Eligibility to Receive Delivery - (See 1049.02)
(09/01/94)
1249.03 Sellers' Invoice to Buyers - (See 1049.03) (09/01/94)
1249.04 Payment - Payment shall be made utilizing the electronic delivery system
via the Clearing Services Provider's Online System. Payment will be made during
the 6:45 a.m. collection cycle, or such other time designated by the Exchange.
Thus the cost of the delivery will be debited or credited to a clearing firm's
settlement account. Buyers obligated to accept delivery must take delivery and
make payment and sellers obligated to make delivery must make delivery during
the 6:45 a.m. settlement process, or such other time designated by the Exchange,
on the day of delivery, except on banking holidays when delivery must be taken
or made and payment made during the 6:45 a.m. settlement process, or such other
time designated by the Exchange, on the next banking business day. (12/01/03)
Ch12 Delivery Procedures
------------------------
1250.00 Duties of Members - (See 1050.00) (09/01/94)
1250.01 Failure to Deliver - (See 1050.01) (12/01/03)
1251.01 Office Deliveries Prohibited - No office deliveries of soybean meal
shipping certificates may be made by clearing members. Where a futures
commission merchant has an interest both long and short for customers on its own
books, it must tender to the Clearing Services Provider such notices of
intention to deliver as it receives from its customers who are short. 2064
(12/01/03)
1254.00 Failure to Accept Delivery - (See 1054.00) (09/01/94)
1254.01 Failure to Accept Delivery - (See 1054.01) (12/01/03)
1256.01 Premium Charges - No Soybean Meal Shipping Certificates shall be valid
for delivery on future contracts unless the premium charges shall have been paid
up to and including the 18th day of the preceding month and such payment
endorsed on the Soybean Meal Shipping Certificate unless registration is at a
later date. Unpaid accumulated premium charges shall be allowed and credited to
the Buyer by the Seller to and including the date of delivery.
If premium charges are not paid on-time up to and including the 18/th/ calendar
day preceding the delivery months of March and September and by the first
calendar day of each of these delivery months, a late charge will apply. The
late charge will be an amount equal to the total unpaid accumulated premium
charges multiplied by the "prime interest rate" in effect on the day that the
accrued storage rates are paid, all multiplied by the number of calendar days
that premium is overdue, divided by 360 days. The term "prime interest rate"
shall mean the lowest of the rates announced by each of the following four banks
at Chicago, Illinois, as its "prime rate": Bank of America-Illinois, Bank One,
Harris Trust & Savings Bank, and the Northern Trust Company.
The premium charges on Soyabean Meal for delivery shall not exceed 7 cents per
ton per day. 2068 (06/01/01)
1256.03 Payment of Fees - All outloading fees, including weighing, to load
Soybean Meal into railroad car, are to be paid by issuer of Soybean Meal
Shipping Certificate. 2075 (09/01/94)
Ch12 Regularity of Issuers of Shipping Certificates
1290.01 Loading and Shipment of Meal Against Soybean Meal Shipping
Certificates -
(a) The operator of a shipping plant issuing Soybean Meal Shipping Certificates
shall limit the number of Shipping Certificates issued to an amount not in
excess of 15 times its registered total daily rate of loading plus the
amount of meal or flakes in store (not limited to meal meeting minimum
contract standards). All such meal or flakes in store must be stored in
facilities for which the capacity has been registered with the Board of
Trade and which have been inspected by the Registrar. The shipper shall
register his total daily rate of loading covered hopper cars at not less
than 40% nor more than 100% of his maximum 24 hour soybean meal production
capacity. Each plant must be regular for a minimum total daily rate of
loading of 200 tons per day.
(b) Each regular plant must also register a daily rate of loading for truck. The
daily rate of loading for truck must be registered at not less than 40% of
the registered total daily rate of loading for the plant.
(c) Each regular plant shall be required to load-out soybean meal against
cancelled Shipping Certificates at a daily rate equivalent to the greater of
either its registered total daily rate of loading, or 1/21st of the total
amount of soybean meal represented by Shipping Certificates issued by the
plant but not yet loaded.
(d) Each regular plant shall be required to load covered hopper cars against
Shipping Certificates at a rate not greater than that established in
paragraph (c), and trucks at a rate not greater than that determined by
multiplying the rate established in paragraph (c) by the share of the
registered total daily rate of loading registered by the plant as its daily
rate of loading for truck. However, on days when rail and truck loading
against Shipping Certificates takes place concurrently, the required daily
rate of loading into each conveyance shall be determined by prorating the
rate established in paragraph (c).
(e) The shipper shall assess a premium charge of 7 cents per ton per calendar
day for each day a Soybean Meal Shipping Certificate is outstanding starting
the day after the date of registration by the Registrar. When rail loading
orders specify shipment within four business days the premium charge shall
continue through the business day following the receipt of loading orders.
Otherwise, the premium charge shall continue through the day of rail
loading. "Business days" are those on which the Exchange is open for trading
Soybean Meal. In the case of shipment by truck, the premium charge shall
continue through the day of loading.
(f) The shipper shall maintain, in the immediate vicinity of the Exchange,
either an office, or a duly authorized representative or agent approved by
the Exchange, where owners of Shipping Certificates may pay premium charges,
surrender properly endorsed Shipping Certificates for cancellation and file
loading orders and shipping instructions.
(g) Rail Loading Procedures
(1) The owner requesting rail load-out will furnish written rail loading
orders and shipping instructions to the shipper by the close of business
on the first business day following the date of cancellation of the
Shipping Certificates in the Registrar's office. The loading orders
shall specify if rail equipment will be the owner's (including leased
cars) or shall specify the owner's election as to the type and size of
covered hopper car to be ordered by the shipper. The shipper will load
covered hopper cars with a capacity of 75 tons or larger. Loadings will
be in bulk, and shipments will be subject to the existing freight tariff
Rules and Regulations of the railroads on file with the Interstate
Commerce Commission at the time of loading. The shipper is responsible
for loading suitable railroad owned or leased cars or owner's cars
(including leased cars) which are available for loading at the facility.
Owner and shipper will cooperate to ensure timely placement and loading
of rail equipment or alternate shipping modes.
(2) All loading orders and shipping instructions received prior to 2:00 p.m.
on a given business day shall be considered dated that day and shall be
entitled to equal treatment. Orders received after 2:00 p.m. on a
business day shall be considered dated the following business day.
Loading against all rail loading orders dated on a given business day
shall be
Ch12 Regularity of Issuers of Shipping Certificates
---------------------------------------------------
completed before loading begins on any rail loading orders dated on a
subsequent business day subject to the provisions of subparagraph 4 of
this paragraph.
(3) When rail loading orders and shipping instructions are received by 2:00
p.m. of any given business day, the shipper will advise the owner by
10:00 a.m. the following business day of loading dates and tonnage due.
Notification will be by telephone, telex or telefax.
(4) When a shipper has received one or more rail loading orders and shipping
instructions, he shall begin loading against them within 4 business days
following their receipt, unless the owner requests a deferred loading
date in his loading orders. When loadings against rail loading orders
cannot be completed on the fourth following business day of their
receipt, the shipper shall continue loading against such loading orders
on each calendar day thereafter. Shipping instructions are to be
provided to the Shipper by the owner 2 business days before loading is
to begin. The shipper shall load at the rate specified in paragraph (d)
of this Regulation.
(5) When loading against rail loading orders and shipping instructions
received by a shipper prior to 2:00 p.m. on a given business day cannot
be completed by the fourth following business day, the shipper shall
allocate daily loadings against such loading orders as equitably as
possible on a pro-rata basis. Starting of loading against small orders
may be delayed until the first day when pro-ration entitles such an
order to an allocation of a full car, but in such a case loading of the
last car against the order shall be accelerated by the same number of
days as loading of the first car was delayed.
(6) The shipper shall load cars at the shipping plant designated in the
Shipping Certificate. If it becomes impossible to load at the designated
shipping plant because of an Act of God, fire, flood, wind, explosion,
war, embargo, civil commotion, sabotage, law, act of government, labor
difficulties or unavoidable mechanical breakdown, the shipper will
arrange for covered hopper cars to be loaded at another regular shipping
plant in conformance with the Shipping Certificate and will compensate
the owner for any transportation loss resulting from the change in the
location of the shipping plant. If the aforementioned condition of
impossibility prevails at a majority of regular shipping plants, then
shipment may be delayed for the number of days that such impossibility
prevails at a majority of regular shipping plants.
(7) Rail loading orders involving one or more Shipping Certificates shall be
considered as one lot. The minimum amount shipped against each loading
order shall be the number of Shipping Certificates specified therein
times 100 tons. A tolerance of 5 tons over the total may be shipped to
be settled at the market price at the time of shipment of the last car
of the order.
(8) Rail cars must be loaded to "full visible capacity" unless tonnage on
cancelled shipping certificates does not cover rail car capacity.
(9) The owner will be responsible for whatever demurrage costs that are
involved in loading multiple car or trainload shipments. All demurrage
charges must be substantiated with a citation of car numbers loaded
against cancelled Shipping Certificates either by proper notations on
the shipper's average demurrage agreement with the carrier or actual
demurrage bills rendered against cars shipped. 2078
(h) Truck Loading Procedures
(1) The owner requesting truck load-out shall furnish written loading orders
and shipping instructions to the shipper by the close of business on the
first business day following the date of cancellation of Shipping
Certificates in the Registrar's Office. The owner shall supply the
trucks. Open-top trucks with a minimum capacity of 20 tons must be
provided. No vans or trucks with porthole loading shall be acceptable.
Owner and shipper shall cooperate to ensure timely placement and loading
of truck equipment.
(2) All truck loading orders and shipping instructions received prior to
2:00 p.m on any given business day shall be considered dated that day
and shall be entitled to equal treatment. Orders received after 2:00
p.m. on a business day shall be considered dated the following business
day.
Ch12 Regularity of Issues of Shipping Certificates
--------------------------------------------------
(3) When truck loading orders and shipping instructions are received by
2:00 p.m. on any given business day, the shipper will advise the owner
of loading dates and tonnage due by 10:00 a.m. the next business day.
Notification will be by telephone, telex or telefax.
(4) The shipper shall begin loading against truck loading orders and
shipping instructions on the fourth business day after their receipt.
The shipper shall load at the rate specified in paragraph (d) of this
Regulation.
(5) Truck loading shall occur during normal truck loading hours, as
declared in the plant's application for regularity, and on normal
business days. "Normal business days" shall be those on which the
Exchange is open for trading Soybean Meal futures.
(6) A premium of $3.50/ton shall be applied to all shipments of meal
loaded out by truck and shall be payable when shipping orders are
filed.
(7) The owner shall present his trucks for loading at the shipping plant
designated in the Shipping Certificate by 12:00 noon on the scheduled
loading day. If trucks arrive by 12:00 noon, the shipper shall load
the same day or be subject to the penalties and procedures specified
in subparagraphs (10) and (11) of this paragraph (Truck Loading
Procedures). If trucks arrive after 12:00 noon, the shipper shall be
under no obligation to load and the owner shall be subject to the
penalties and procedures specified in subparagraphs (8) and (9) of
this paragraph.
(8) If the owner fails to present his trucks on time on the scheduled
loading day, he shall be subject to a grace period until 12:00 noon
the next business day and shall not be liable for a penalty up to that
time. If the owner fails to present his trucks by 12:00 noon of the
business day following the scheduled loading day, he shall be liable
for a penalty of $4/ton/day for all meal not loaded out as scheduled.
(9) If, for any reason, the owner is unable to present his trucks for
three consecutive normal business days, beginning with the originally
scheduled loading day, the shipper may at his election:
i) Load the meal into rail cars for the owner and inform him of rail
car numbers, or
ii) Reissue a Shipping Certificate to the owner. If a Shipping
Certificate is reissued, the premium charge specified in paragraph
(e) of this Regulation shall be assessed retroactively, beginning
the day after the business day following the receipt of loading
orders.
In these cases the owner is liable for the penalty specified in
subparagraph (8) of this paragraph, if any, for two business days. The
truck loading premium specified in subparagraph (6) of this paragraph
shall be credited against any penalties due or refunded in full if
there are no penalties due. If shipper elects either of these options
he must promptly notify the owner.
(10) If the shipper fails to load the owner's trucks by 12:00 midnight on
the scheduled loading day he shall be subject to a grace period until
the next business day and shall not be subject to a penalty up to that
time. If the shipper fails to load the owner's truck by 12:00 midnight
of the business day following the scheduled loading day, he shall be
liable for a penalty of $4/ton/day for all meal not loaded out as
scheduled.
(11) If, for any reason, the shipper is unable to load the owner's trucks
for three consecutive normal business days, beginning with the
originally scheduled loading day, the shipper shall, with the owner's
consent, make the meal available for truck load-out on the third day
at another regular plant, in conformance with the Shipping
Certificate, and will compensate the owner for any transportation loss
resulting from the change in the location of the shipping plant.
(12) A tolerance of five tons over the total truck shipment may be loaded
and settled at the market price at the time the last truck is loaded.
(i) Change of Election for Mode of Load-Out Due to Unavailability of Rail Cars
Ch12 Regularity of Issuers of Shipping Certificates
---------------------------------------------------
The owner may elect to amend rail loading orders to load-out by truck in the
event of rail car unavailability. Rail loading orders amended in this manner
shall be entitled to equal treatment. A premium of $3.50/ton shall be
applied to all shipments of meal loaded-out by truck and shall be payable on
the day loading orders were amended to specify the owner's election for
load-out by truck.
(j) Certification of Soybean Meal - Effective September 1, 1992 and upon written
request by a taker of delivery at the time loading orders are submitted for
the delivery of soybean meal against canceled shipping certificates, the
shipper shall certify in writing to the taker of delivery on the day that
the transportation conveyance is loaded that the soybean meal is produced
from soybeans of U.S. origin only. Shipping certificates issued prior to
September 1, 1992 will be deliverable against futures contracts beginning
September 1992 only if the regular shipper provides certification on the
shipping certificate that the U.S. origin-only option is available to the
taker of delivery of soybean meal. (05/01/95)
1291.01 Conditions of Regularity - Shipping Plants may be declared regular for
the delivery of soybean meal with the approval of the Exchange. Persons
operating Soybean Meal shipping plants who desire to have such plants made
regular for delivery of Soybean Meal under the Rules and Regulations shall make
application for an initial Declaration of Regularity on a form prescribed by the
Exchange prior to May 1 of an even year, for a two year term beginning the
following July 1, and at any time during a current term for the balance of that
term. Regular Soybean Meal shipping plants that desire to increase their regular
capacity during a current term shall make application for the desired amount of
total regular capacity on the same form. Initial regularity for the current term
and increases in regularity shall be effective either thirty days after a notice
that a bona fide application has been received is posted by the Exchange, or the
day after the application is approved by the Exchange, whichever is later.
Persons operating soybean meal shipping plants who desire to have their daily
rate of loading decreased, shall file with the Exchange a written request for
such decrease. The decrease in the daily rate of loading for the facility will
become effective 30 days after a notice has been posted by the Exchange or the
day after the number of outstanding certificates at the facility is equal to or
less than 15 times the requested rate of loading plus the amount of meal or
flakes in store, whichever is later. Persons operating soybean meal shipping
plants who wish to have their regular capacity space decreased shall file with
Exchange a written request for such decrease and such decrease shall be
effective once a notice has been posted. Applications for renewal of regularity
must be made prior to May 1 by the Exchange of even years, for the respective
years beginning July 1 of those years, and shall be on the same form.
The Exchange may establish such requirements and conditions for approval of
regularity as it deems necessary.
The following shall constitute the minimum requirements and conditions of
regularity for soybean meal shipping plants:
1. The plant of the shipper making application shall be inspected by the
Exchange.
2. Such shipping plant shall be connected by railroad tracks with one or more
railway lines.
3. The operator or manager of such shipping plant shall be in good financial
standing and credit, and shall meet the minimum financial requirements and
financial reporting requirements set forth in Appendix 4E. No shipping plant
shall be declared regular until the person operating the same files a bond
and/or designated letter of credit with sufficient sureties in such sum and
subject to such conditions as the Exchange may require.
4. Such shipping plant shall be provided with standard equipment and appliances
for the convenient and expeditious shipping of Soybean Meal in bulk in the
conveyances for which the plant is registered with the Exchange according to
Regulation 1290.01 (a) and (b).
5. The operator or manager of such shipping plant shall comply with the system
of registration of Soybean Meal Shipping Certificates for Soybean Meal to be
shipped in satisfaction of deliveries on futures contracts.
6. No shipper shall engage in any unethical or inequitable practice or fail to
comply with any law, Federal or State, or any rule or regulation promulgated
thereunder.
7. The shipper shall make such reports, keep such records, and permit such
processing plant visitations as the Secretary of Agriculture may prescribe,
and shall comply with all applicable Rules and Regulations and orders
promulgated by the Secretary of Agriculture or the Commodity Futures
Trading Commission, and shall comply with all requirements made by the
Exchange because of such Rules and Regulations or orders.
8. The plant must not have been continuously out of operation for the two
consecutive years prior to application for regularity or renewal thereof.
9. The operator or manager of such shipping plant shall accord every facility
to the Exchange for the examination of the facility and the stocks of
soybean meal which may be on hand at any time. Such examination may be made
at any time.
Ch12 Regularity of Issuers of Shipping Certificates
---------------------------------------------------
10. Soybean Meal inventory which is covered by shipping certificates tendered
for delivery shall be insured against the contingencies provided for in a
standard "All Risks" policy (including earthquake) to such an extent and in
such amounts as required by the Exchange. The shipper shall furnish the
Exchange with either a copy of the current insurance policy or policies, or
a written confirmation from the insurance company that such insurance has
been effected.
11. The operator or manager of such shipping plant shall be subject to the
Exchange's Rules and Regulations pertaining to arbitration procedures, as
set forth in Chapter 6, and, with respect to compliance with Rules and
Regulations pertaining to a shipping plant's regularity, shall be subject to
the Exchange's Rules and Regulations pertaining to disciplinary procedures,
as set forth in Chapter 5.
12. The operator or manager of such shipping plant shall consent to the
disciplinary jurisdiction of the Exchange for five years after such
regularity lapses, for conduct pertaining to regularity which occurred while
the shipping plant was regular.
13. The Exchange may determine not to approve shipping plants for regularity or
increases in regular capacity of existing regular shipping plants, in its
sole discretion, regardless of whether such shipping plants meet the
preceding requirements and conditions. Some factors that the Exchange may,
but is not required to, consider in exercising its discretion may include,
among others, whether shipping certificates issued by such shipping plants,
if tendered in satisfaction of futures contracts, might be expected to
adversely affect the price discovery function of Soybean Meal futures
contracts or impair the efficacy of futures trading in Soybean Meal, or
whether the currently approved regular capacity provides for an adequate
deliverable supple. 2077 (01/01/04)
1294.01 Revocation, Expiration or Withdrawal of Regularity - Any regular
shipper may be declared irregular at any time if he fails to carry out the
duties of delivery by Soybean Meal Shipping Certificate as prescribed by these
Regulations or violate any conditions of regularity. If designation of a shipper
as regular shall be revoked, the Exchange shall announce such revocation on the
bulletin board of the Exchange and also the period of time, if any, during which
the Soybean Meal Shipping Certificates issued by such shipper shall thereafter
be deliverable in satisfaction of futures contracts in Soybean Meal under the
Rules and Regulations.
In the event of revocation, expiration or withdrawal of regularity, or in the
event of sale or abandonment of the properties where regularity is not reissued,
holders of outstanding shipping certificates shall be given thirty days to take
load-out of the commodity from the facility. If a holder of an outstanding
shipping certificate chooses not to take load-out during this period, the
facility must provide him with another shipping certificate at another, mutually
acceptable regular shipping plant, with adjustments for differences in contract
differentials. Alternatively, if such shipping certificate is unavailable, the
facility must provide the holder with an equivalent quantity and quality of the
soybean meal designated in the shipping certificate at a mutually acceptable
location. 2079 (09/01/94)
1295.01 Application for Declaration of Regularity - All applications by
operators of shipping plants for a Declaration of Regularity under Regulation
1291.01 shall be on the following form:
SHIPPER'S APPLICATION FOR A DECLARATION OF REGULARITY FOR CONTRACTS FOR
FUTURE DELIVERY UNDER THE RULES AND REGULATIONS OF THE BOARD OF TRADE OF
THE CITY OF CHICAGO, INC. FOR THE DELIVERY OF SOYBEAN MEAL
______________,20_______
BOARD OF TRADE OF THE CITY OF CHICAGO, INC.
Chicago, Illinois
________________________(hereinafter called Shipper), owner/lessee* of a soybean
(Shipper Name) (Circle One)
processing facility located at__________________________________________________
(Address, City, State, Zip)
in the following territory, (Please indicate which territory you are applying
for.)
____Central Territory ____Mid South Territory ____Eastern Iowa Territory
_____Northeast Territory _____Missouri Territory _____Northern Territory
hereby submits this application to the Board of Trade of the City of Chicago,
Inc. (hereinafter called "Exchange") for a Declaration of Regularity to issue
Shipping Certificates for the delivery of Soybean Meal upon contracts for
future delivery for a period beginning on July 1, 20___ and ending on
June 30, 20___.
The soybean processing facility has a maximum 24 hour crushing capacity of______
bushels of Soybeans per day multiplied by the factor 0.022 for a maximum 24 hour
production capacity of_____tons of Soybean Meal per day, has a storage capacity
of_____tons of Soybean Meal, is licensed/not licensed by the State of_______,
(circle one)
and will have_______tons as its registered total daily rate of loading (not less
than 40% nor more than 100% of Shipper's maximum 24 hour soybean meal production
capacity and a minimum of 200 tons per day). The daily rate of loading for
trucks shall be at least______% (minimum 40%) of the Shipper's registered total
daily rate of loading.
* Please include a copy of the lease or service agreement with application.
Conditions of Regularity
A declaration of regularity, if granted, may be revoked by the Exchange whenever
the following conditions, or any other conditions specified in Regulation
1291.01 or duties specified in Regulation 1290.01, or any other relevant Rules
and Regulations are not observed:
1. The Shipper must:
(1) submit bonds or letters of credit to the Exchange as it may require.
(2) not charge premium charges on Soybean Meal under obligation for shipment
in excess of the premium charges defined in Regulation 1256.01.
(3) notify the Exchange immediately of any change in its capital ownership,
or any reduction in net worth of 20 percent or more from the level
reported in the last financial statement filed with the Exchange, or of
any change in the physical condition of the shipping plant.
(4) make such reports, keep such records, and permit such shipping plant
visitation as the Exchange or the Commodity Futures Trading Commission
may require and comply with all applicable Rules and Regulations of the
Exchange and the CFTC.
(5) insure against the contingencies provided in a standard "All Risks"
policy (including earthquake), in such amounts as required by the
Exchange.
(6) submit an application for renewal of a declaration of regularity in
writing on or before May 1/st/ every even year.
(7) if the Shipper leases the shipping plant or has entered into some form
of service arrangement pursuant to which an agent or contractor performs
the daily operations of the shipping plant, the Shipper remains
responsible for compliance with all duties and conditions of regularity
and shall be responsible for the conduct of its agents or contractors.
(8) notify the Exchange in writing immediately of any change in the maximum
24 hour crushing capacity of soybeans at the Soybean Meal shipping
plant.
2. The Shipping Plant must be:
(1) subject to the prescribed examination and approval of the Exchange.
(2) connected by railroad tracks to one or more railway lines.
(3) equipped with standard equipment and appliances for the convenient and
expeditious shipping of Soybean Meal in bulk.
3. The Shipping Plant and the Shipper must conform to the requirements of the
Exchange as to location, accessibility and suitability as may be prescribed
by the Rules and Regulations of the Exchange.
Agreements of the Shipper
The Shipper expressly agrees:
(1) that all Soybean Meal tendered in satisfaction of futures contracts will be
weighed by an Official Weigher as outlined in Regulation 1239.01.
(2) that all Soybean Meal Shipping Certificates tendered in satisfaction of
futures contracts will be registered with the Registrar of the Exchange.
(3) to abide by all of the Rules and Regulations of the Exchange relating to the
shipping of Soybean Meal deliverable in satisfaction of futures contracts
and the delivery thereof, including the duties set forth in Regulation
1290.01.
(4) to designate a clearing agent in Chicago authorized to act upon the
Shipper's behalf in matters pertaining to Shipping Certificates.
(5) that the Exchange may revoke the Shipper's declaration of regularity, if
granted, for any breach of these agreements.
(6) that the signing of this application constitutes a representation that the
conditions of regularity are complied with and will be observed during the
life of the declaration of regularity, and, if found to be untrue, the
Exchange shall have the right to revoke the declaration of regularity
immediately.
(7) to be subject to the Exchange's Rules and Regulations, the disciplinary
procedures set forth in Chapter 5, and the arbitration procedures set forth
in Chapter 6, and to abide by and comply with the terms of any disciplinary
decision imposed upon the Shipper or any arbitration award issued against it
pursuant to the Exchange's Rules and Regulations.
(8) to consent to the disciplinary jurisdiction of the Exchange for five years
after regularity lapses for conduct which occurred while the Shipper was
regular.
Please be advised that, pursuant to Regulation 1291.01(13), the Exchange may
determine not to approve shipping plants for regularity or increases in regular
capacity of existing regular shipping plants, in its sole discretion, regardless
of whether such shipping plants meet the conditions of regularity specified in
Regulation 1291.01. Some factors the Exchange may, but is not required to
consider in exercising its discretion may include, among others, whether
shipping certificates issued by such shipping plants, if tendered in
satisfaction of futures contracts, might be expected to adversely affect the
price discovery function of Soybean Meal futures contracts or impair the
efficacy of futures trading in Soybean Meal, or whether the currently approved
regular capacity provides for an adequate deliverable supply.
By:________________________________
(Name)
Title:_____________________________
Date:______________________________
(03/01/04)
Ch12 Regularity of Issuers of Shipping Certificates
---------------------------------------------------
Ch12 Regularity of Issuers of Shipping Certificates
---------------------------------------------------
1296.01 Regular Shippers - (See Appendix 12A) (09/01/94)
[Enlarge/Download Table]
===================================================================================================================
Chapter 13
Oats Futures Options
===================================================================================================================
Ch13 Trading Conditions............................................................................
1301.00 Authority......................................................................
1301.01 Application of Regulations.....................................................
1302.01 Nature of Oats Futures Put Options.............................................
1302.02 Nature of Oats Futures Call Options............................................
1303.01 Trading Unit...................................................................
1304.01 Striking Prices................................................................
1305.01 Payment of Option Premium......................................................
1306.01 Option Premium Basis...........................................................
1307.01 Exercise of Option.............................................................
1307.02 Automatic Exercise.............................................................
1307.03 Corrections to Option Exercises ...............................................
1308.01 Expiration of Option...........................................................
1309.01 Months Traded In...............................................................
1310.01 Trading Hours..................................................................
1311.01 Position Limits and Reportable Positions.......................................
1312.01 Margin Requirements............................................................
1313.01 Last Day of Trading............................................................
1314.01 Option Premium Fluctuation Limits..............................................
================================================================================
Chapter 13
Oats Futures Options
================================================================================
Ch13 Trading Conditions
1301.00 Authority - (See Rule 2801.00.) (09/01/94)
1301.01 Application of Regulations - Transactions in put and call options on
Oats futures contracts shall be subject to the general rules of the Association
as far as applicable and shall also be subject to the regulations contained in
this Chapter which are exclusively applicable to trading in put and call options
on Oats futures contracts. (See Rule 490.00) (09/01/94)
1302.01 Nature of Oats Futures Put Options - The buyer of one (1) Oats
futures put option may exercise his option at any time prior to expiration
(subject to Regulation 1307.01), to assume a short position in one (1) Oats
futures contract of a specified contract month at a striking price set at the
time the option was purchased. The seller of one (1) Oats futures put option
incurs the obligation of assuming a long position in one (1) Oats futures
contract of a specified contract month at a striking price set at the time the
option was sold, upon exercise by a put option buyer. (09/01/94)
1302.02 Nature of Oats Futures Call Options - The buyer of one (1) Oats
futures call option may exercise his option at any time prior to expiration
(subject to Regulation 1307.01), to assume a long position in one (1) Oats
futures contract of a specified contract month at a striking price set at the
time the option was purchased. The seller of one (1) Oats futures call option
incurs the obligation of assuming a short position in one (1) Oats futures
contract of a specified contract month at a striking price set at the time the
option was sold, upon exercise by a call option buyer. (09/01/94)
1303.01 Trading Unit - One (1) Oats futures contract of a specified contract
month on the Chicago Board of Trade 09/01/94)
1304.01 Striking Prices - Trading shall be conducted for put and call
options with striking prices (the "strikes") in integral multiples of five (5)
cents per Oat futures contract (i.e., 2.50, 2.55, 2.60, etc.) in integral
multiples of ten (10) cents per bushel per Oat futures contract (i.e., 2.50,
2.60, 2.70, etc.) and in integral multiples of twenty (20) cents per bushel per
Oat futures contract (i.e., 2.80, 3.00, 3.20, etc.) as follows:
1. a. In integral multiples of ten cents, at the commencement of trading for
an option contract, the following strikes shall be listed: one with a
strike closest to the previous day's settlement price of the underlying
Oat futures contract, the next five consecutive higher and the next
five consecutive lower strikes (the "initial band"). If the previous
day's settlement price is midway between two strikes, the closest price
shall be the larger of the two.
b. In integral multiples of twenty cents, at the commencement of trading
for an option contract, the following strikes shall be listed: the next
four consecutive strikes above the initial band.
c. In integral multiples of ten cents, over time, strikes shall be added
as necessary to insure that all strikes within 55 cents of the previous
day's trading range of the underlying futures contract are listed (the
"minimum band").
d. In integral multiples of twenty cents, over time, strikes shall be
added as necessary to insure that the next four consecutive strikes
above the minimum band are listed.
e. No new strikes may be added by these procedures in the month in which
an option expires.
2. a. In integral multiples of five cents, at the commencement of trading for
options that are traded in months in which Oat futures are not traded,
and for standard option months, the business day they become the second
deferred month, the following strike prices shall be listed: one with a
strike closest to the previous day's settlement price of the underlying
Oat futures contract and the next five consecutive higher and the next
five consecutive lower strikes. For example, five-cent strike price
intervals for the September 2001 contract would be added on June 25,
which is the business day after the expiration of the July contract
month.
b. Over time, new five-cent strike prices will be added to ensure that at
least five strike prices exist above and below the precious day's
trading range in the underlying futures.
Ch13 Trading Conditions
-----------------------
3. All strikes will be listed prior to the opening of trading on the
following business day. The Exchange may modify the procedures for the
introduction of strikes as it deems appropriate in order to respond to
market conditions. (07/01/03)
1305.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (12/01/03)
1306.01 Option Premium Basis - The premium for Oats futures options shall be in
multiples of one-eighth (1-8) of one cent per bushel of a 5,000 bushel Oats
futures contract which shall equal $6.25 per contract.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $6.00 in $1.00 increments per option contract.
(09/01/94)
1307.01 Exercise of Option - The buyer of an Oats futures option may exercise
the option on any business day prior to expiration by giving notice of exercise
to the Clearing Services Provider by 6:00 p.m., or by such other time designated
by the Exchange, on such day.
(12/01/03)
1307.02 Automatic Exercise - Notwithstanding the provisions of Regulation
1307.01 after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m., or by such other time designated by the Exchange, on the
last day of trading.
(12/01/03)
1307.03 Correction to Option Exercises Corrections to option exercises,
including automatic exercises, may be accepted by the Clearing Services Provider
after the 6:00 p.m. deadline and up to the beginning of final option expiration
processing provided that such corrections are necessary due to: (1) a bona fide
clerical error, (2) an unreconciled Exchange option transaction(s),or (3) an
extraordinary circumstance where the clearing firm and customer are unable to
communicate final option exercise instructions prior to the deadline. The
decision whether a correction is acceptable will be made by the President of the
Clearing Services Provider, or the President's designee, and such decision will
be final. (12/01/03)
1308.01 Expiration of Option - Unexercised Oats futures options shall expire at
7:00 p.m. on the last day of trading. (12/01/03)
1309.01 Months Traded In - Trading may be conducted in the nearby Oats futures
options contract month plus any succeeding months, provided however, that the
Board or a Committee authorized by the Board may determine not to list a
contract month. For options that are traded in months in which Oats futures are
not traded, the underlying futures contract is the next futures contract that is
nearest to the expiration of the option. For example, the underlying futures
contract for the February option contract is the March futures contract.
(09/01/00)
1310.01 Trading Hours - The hours of trading of options on Oats futures
contracts shall be determined by the Board. On the last day of trading in an
expiring option, the closing time for such options shall be the same as the
close of trading of the Regular Daytime open outcry trading session for the
corresponding Oats futures contract, subject to the provisions of the second
paragraph in Rule 1007.00. On the last day of trading in an expiring option, the
expiring Oats futures options shall be closed with a public call, made strike
price by strike price, conducted by such persons as the Regulatory Compliance
Committee shall direct. Oats futures options shall be opened and closed for all
months and strike prices simultaneously or in such a manner as the Committee
shall direct. (03/01/00)
Ch13 Trading Conditions
-----------------------
1311.01 Position Limits and Reportable Positions - (See Regulation
425.01) (10/01/00)
1312.01 Margin Requirements - (See Regulation 431.05) (09/01/94)
1313.01 Last Day of Trading - No trades in Oats futures options expiring in the
current month shall be made after the close of trading of the Regular Daytime
open outcry trading session for the corresponding Oats futures contract on the
last Friday which precedes by at least two business days, the last business day
of the month preceding the option month. If such Friday is not a business day,
the last day of trading shall be the business day prior to such Friday.
(07/01/01)
1314.01 Option Premium Fluctuation Limits - Trading is prohibited during any day
except for the last day of trading in an Oats futures option at a premium of
more than the trading limit for the Oats futures contract above and below the
previous day's settlement premium for that option as determined by the Clearing
Services Provider. On the first day of trading, limits shall be set from the
lowest premium of the opening range. (12/01/03)
================================================================================
Chapter 14
CBOT 5,000 oz. Silver Futures
================================================================================
Ch14 Trading Conditions.................................................... 1402
1401.01 Authority................................................ 1402
1402.01 Application of Regulations............................... 1402
1403.01 Unit of Trading.......................................... 1402
1404.01 Months Traded In......................................... 1402
1405.01 Price Basis.............................................. 1402
1406.01 Hours of Trading......................................... 1402
1407.01 Last Day of Trading...................................... 1402
1408.02 Liquidation During the Delivery Month.................... 1402
1409.01 Margin Requirements...................................... 1402
1410.01 Disputes................................................. 1402
1411.01 Position Limits and Reportable Positions................. 1402
Ch14 Delivery Procedures................................................... 1403
1436.01 Standards................................................ 1403
1440.01 Brands and Markings of Silver............................ 1403
1440.02 Withdrawal of Approval of Silver Brands or Markings...... 1403
1440.03 Approved Brands.......................................... 1403
1440.04 Product Certification and Shipment....................... 1403
1440.05 Refiners, Vaults, and Assayers........................... 1403
1440.06 Cost of Inspection, Weighing, Storage and Delivery....... 1403
1441.01 Delivery Points.......................................... 1403
1442.01 Deliveries by Vault Receipts............................. 1403
1443.01 Deposit of Silver with Vaults............................ 1404
1443.02 Issuance of Vault Receipts............................... 1404
1446.01 Date of Delivery......................................... 1405
1447.01 Delivery Notices......................................... 1405
1448.01 Method of Delivery....................................... 1405
1449.00 Time of Delivery, Payment, Form of Delivery Notice....... 1405
1449.02 Buyers' Report of Eligibility to Receive Delivery........ 1405
1449.03 Sellers' Invoice to Buyers............................... 1405
1449.04 Payment.................................................. 1405
1450.00 Duties of Members........................................ 1405
1450.01 Failure to Deliver....................................... 1405
1451.01 Office Deliveries Prohibited............................. 1405
1454.00 Failure to Accept Delivery............................... 1405
1454.01 Failure to Accept Delivery............................... 1405
1456.01 Storage and Transfer Fees................................ 1405
Ch14 Regularity of Vaults.................................................. 1406
1480.01 Duties of Vault Operators................................ 1406
1481.01 Conditions of Regularity................................. 1406
1484.01 Revocation of Regularity................................. 1406
1486.01 Regular Vaults........................................... 1407
1401
================================================================================
Chapter 14
CBOT 5,000 oz. Silver Futures
================================================================================
CH14 TRADING CONDITIONS
1401.01 Authority - Trading of Silver futures may be conducted under such
terms and conditions as may be prescribed by the Rules and Regulations.
(10/01/04)
1402.01 Application of Regulations - Transactions in Silver futures shall be
subject to the general rules and regulations of the Exchange as far as
applicable and shall also be subject to the rules and regulations contained in
this chapter, which are exclusively applicable to trading in 5,000 oz. Silver
futures contracts. (10/01/04)
1403.01 Unit of Trading - The unit of trading for Silver shall be five
thousand troy ounces. Bids and offers may be accepted in lots of five thousand
troy ounces or multiples thereof. (10/01/04)
1404.01 Months Traded In - Trading in Silver for future delivery may be
conducted in the current calendar month and any subsequent months. (10/01/04)
1405.01 Price Basis - All prices of Silver shall be basis New York, New
York, or basis any other location designated by the Exchange, in multiples of
10/100 of one cent per troy ounce. Contracts shall not be made on any other
price basis. (10/01/04)
1406.01 Hours of Trading - The hours of trading for future delivery in
Silver futures shall be determined by the Exchange. On the last day of trading
in an expiring future, the closing time for such future shall be 1:25 p.m.
(10/01/04)
1407.01 Last Day of Trading - No trades in Silver futures deliverable in the
current month shall be made during the last two business days of that month and
any contracts remaining open must be settled by delivery or as provided in
Regulation 1408.02 after trading in such contracts has ceased; and if not
previously delivered, delivery must be made no later than the last business day
of the month. (10/01/04)
1408.02 Liquidation During the Delivery Month - After trading in contracts
for future delivery in the current delivery month has ceased in accordance with
Regulation 1407.01, outstanding contracts for such delivery may be liquidated by
means of a bona fide exchange of such current futures for the actual cash
commodity. Such exchange must, in any event, be made no later than the last
business day of the delivery month. (10/01/04)
1409.01 Margin Requirements - Margin requirements shall be determined by
the Exchange. (See Regulation 431.03) (10/01/04)
1410.01 Disputes - All disputes between interested parties may be settled by
arbitration as provided in the Rules and Regulations. (10/01/04)
1411.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(10/01/04)
1402
CH14 DELIVERY PROCEDURES
1436.01 Standards - The contract grade for delivery on futures contracts
made under these regulations shall be refined Silver in a bar cast in a basic
weight of either 1,000 troy ounces or 1,100 troy ounces (each bar may vary no
more than 6% more or less); assaying not less than 999 fineness; and made up of
one of the brands and markings officially listed by the Exchange as provided in
Regulation 1440.01, current at the date of delivery of such silver. (10/01/04)
1440.01 Brands and Markings of Silver - Brands and markings deliverable in
satisfaction of futures contracts shall be listed with the Exchange upon
approval by the Exchange. The Exchange may require such sureties as it deems
necessary. The Secretary's Office shall make available a list of the brands and
markings of silver bars which are deliverable. The addition of brands and
markings shall be binding upon all such contracts outstanding as well as those
entered into after approval. (10/01/04)
1440.02 Withdrawal of Approval of Silver Brands or Markings - If at any time
a brand or marking fails to meet the requirements adopted by the Exchange or the
metallurgical assay of any silver bars bearing a brand or marking on the
official list depreciates below 999 fineness, the Exchange may exclude said
brand or marking from the official list unless deliveries of bars bearing said
brand or marking are accompanied by certificates of analysis of an official
assayer showing a silver fineness of not less than 999, and such additional bond
as the Exchange may deem necessary. Notice of such action shall be posted upon
the bulletin board of the Exchange and the official list shall indicate the
limitation upon deliveries of said brand or marking. (10/01/04)
1440.03 Approved Brands - (See Appendix 14A) (10/01/04)
1440.04 Product Certification and Shipment - To be eligible for delivery on
the Exchange, all silver must be certified as to fineness and weight by an
Exchange approved refiner, assayer, or other Exchange approved certifying
authority and must be shipped directly from the Exchange approved refiner,
assayer, or certifying authority via Exchange approved carriers to Exchange
approved vaults.
If silver, is not continuously in the custody of an Exchange approved vault or
carrier, the Exchange may require that it be recertified as to fineness and
weight to be eligible for delivery.
The Exchange at its sole discretion shall have the authority at any time to have
assayed any silver bars covered by vault receipts delivered against futures
contracts. In such an event, costs are to be borne by the Exchange. (10/01/04)
1440.05 Refiners, Vaults, and Assayers - Exchange approved refiners, vaults,
and assayers may be listed with the Exchange upon approval by the Exchange. The
Secretary's Office shall maintain and make available such lists. The addition of
refiners and vaults shall be binding upon all contracts outstanding as well as
those entered into after approval. (10/01/04)
1440.06 Cost of Inspection, Weighing, Storage and Delivery - All charges
associated with the delivery of silver and all costs associated with
inspections, weighing, and Exchange documentations, through the day of delivery,
shall be paid by the delivering party. The delivering party shall pay storage
charges through the business day following the day of delivery. The receivers
shall pay all charges including storage charges incurred after the business day
following the day of delivery.
A holder of an Exchange approved vault receipt for silver may request
recertification at his expense at any time while the unit represented by such
receipt is in the Exchange approved vault. Such recertification shall be made by
an Exchange approved certifying authority or assayer, selected by such holder.
(10/01/04)
1441.01 Delivery Points - Silver located at regular vaults at points
approved by the Exchange may be delivered in satisfaction of futures contracts.
(10/01/04)
1442.01 Deliveries by Vault Receipts - In order to be valid for delivery
against futures contracts, the vault receipt must be issued in accordance with
the requirements under Regulation 1436.01 and Appendix 14A. The vault receipt
must be issued before 4:00 p.m. on notice day, the business day prior to the day
of delivery; however, in the case of delivery on the last delivery day of the
delivery month, the vault receipt must be issued before 1:00 p.m. Deliveries on
silver futures contracts shall be made by the delivery of depository vault
receipts issued by vaults which have been approved and designated as regular
vaults by the Exchange for the storage of silver. Silver in bars must come to
the
1403
regular vault directly from an approved source or from another regular vault
either on the Chicago Board of Trade or the COMEX Division of the New York
Mercantile Exchange, Inc., by insured or bonded carrier.
In order to effect a valid delivery, each vault receipt must be endorsed by the
clearing member making the delivery. By the tender of a vault receipt for silver
duly endorsed for delivery of the lot on an Exchange contract, the endorser
shall be deemed to warrant, to his transferee and each subsequent transferee of
the receipt for delivery on Exchange contracts, and their respective immediate
principals, the genuineness, validity, and worth of such receipt, the
rightfulness and effectiveness of his transfer thereof, and the quantity and
quality of the silver shown on the receipt. Such endorsement shall also
constitute a representation that all storage charges have been paid up to and
including the business day following the day of delivery. Prepaid storage
charges shall be charged to the buyer by the seller for a period extending
beyond the business day following the day of delivery (but not in excess of one
year) pro rata for the unexpired term and adjustments shall be made upon the
invoice thereof.
In the event such Exchange member or principal shall claim a breach of such
warranty, and such claim relates to the quantity or quality of the silver, the
lot shall be immediately submitted for sampling and assaying to an assayer
approved by the Exchange; the silver must be shipped under bond, and at the
owner's expense, to the assayer. The expense of sampling and assaying shall, in
the first instance, be borne by the claimant. If a deficiency in quantity or
quality shall be determined by the assayer, the claimant shall have the right to
recover the difference in the market value and all expenses incurred in
connection with the sampling and assaying and any cost of replacement of the
silver. The claimant may, at his option, proceed directly against the original
endorser of the vault receipt upon Exchange delivery, or against any endorser
prior to claimant without seeking recovery from his immediate deliverer on the
Exchange contract, and if the claim is satisfied by the original endorser of the
vault receipt, or any other endorser, all the endorsers will be thereby
discharged from liability to the claimant. If the claimant seeks recovery from
any endorser and his claim is satisfied by such endorser, the party thus
satisfying the claim will have a similar option to claim recovery directly from
any endorser prior to him. Such claims as are in dispute between members of the
Exchange may in each case be submitted to arbitration under the Rules of the
Exchange.
The liability of an endorser of a vault receipt as provided herein shall not be
deemed to limit the rights of such endorser against any person or party for
whose account the endorser acted in making delivery on an Exchange contract. If
it shall be determined in such arbitration proceeding that any endorser of a
vault receipt or the person or party for whom such endorser acted was aware of
the breach of warranty or was involved in a plan or arrangement with the
original endorser (or his principal) to place such inferior silver in store in a
regular vault for use in deliveries upon Exchange contracts, such endorsers
shall not be entitled to recover from any prior endorser for the breach of
warranty. (10/01/04)
1443.01 Deposit of Silver with Vaults - Silver in bars shall be placed into
a regular vault accompanied by the following information:
A. Brand or markings;
B. Identification (serial number) of each bar;
C. Weight of each bar; and
D. Fineness. (10/01/04)
1443.02 Issuance of Vault Receipts - After the silver has been placed in a
regular vault, negotiable vault receipts shall be issued to its owners with the
following information:
A. Brand or markings;
B. Identification (serial number) of each bar;
C. Weight of each bar;
D. Fineness.
Receipts shall be lettered or numbered consecutively by each vault. No two
receipts shall bear the same letter or number.
Where a clearing member of the Exchange delivers silver in bars on an Exchange
contract, but did not order such silver into a regular vault, the clearing
member shall, for the purposes of Regulation 1442.01, be deemed the original
endorser of the vault receipt, and shall warrant to his transferee and each
subsequent transferee that such silver was delivered to the regular vault under
the terms of Regulation 1442.01. (10/01/04)
1404
1446.01 Date of Delivery - Where Silver is sold for delivery in a specified
month, delivery of such silver may be made by the seller upon such day of the
specified month as the seller may select. If not previously delivered, delivery
must be made upon the last business day of the month. (10/01/04)
1447.01 Delivery Notices - (See 1047.01) (10/01/04)
1448.01 Method of Delivery - (See 1048.01) (10/01/04)
1449.01 Time of Delivery, Payment, Form of Delivery Notice - (See 1049.00)
(10/01/04)
1449.02 Buyers' Report of Eligibility to Receive Delivery - (See 1049.02)
(10/01/04)
1449.03 Sellers' Invoice to Buyers - In addition to the requirements of
1049.03, the seller shall notify the vault of the transfer of ownership of the
indicated vault receipts from the seller to the buyer. The seller will be
responsible for the payment of storage charges unless the vault has been
notified thereby. (10/01/04)
1449.04 Payment - Payment is to be made by a check drawn on and certified by
a Chicago bank or by a Cashier's check issued by a Chicago bank. The long
clearing member may effect payment by wire transfer only if this method of
payment is acceptable to the short clearing member. (10/01/04)
1450.00 Duties of Members - (See 1050.00) (10/01/04)
1450.01 Failure to Deliver - (See 1050.01) (10/01/04)
1451.01 Office Deliveries Prohibited - (See 1051.01) (10/01/04)
1454.00 Failure to Accept Delivery - (See 1054.00) (10/01/04)
1454.01 Failure to Accept Delivery - (See 1054.01) (10/01/04)
1456.01 Storage and Transfer Fees - Storage charges, transfer fees and
in-and-out charges shall be set by each depository vault and the schedule of
such charges shall be posted with the Exchange, which shall be notified at least
60 days in advance of any changes in the rate schedule. Except as otherwise
provided, all such charges and fees shall remain the responsibility of the
seller until payment is made. (10/01/04)
1405
CH14 REGULARITY OF VAULTS
1480.01 Duties of Vault Operators - It shall be the duty of the operators of
all regular vaults:
(a) To accept Silver for delivery on Chicago Board of Trade contracts,
provided such Silver is ordered into the vault by a Clearing Member of
the Exchange, and all space in such vaults is not already filled or
contracted for.
(b) To notify the Board of Trade of any change in the condition of their
vaults.
(c) To release to the bearer of the receipt the bars covered by said receipt
upon presentation of the receipt and payment of all storage and
outloading charges no later than the business day following compliance
with these provisions.
(d) To keep stocks of Silver in storage in balance with Silver represented
by its outstanding vault receipts. (10/01/04)
1481.01 Conditions of Regularity - Silver may be delivered against a Silver
contract from any vault designated by the Exchange specifically for the storage
of silver, and may not be delivered except from such vault. The following shall
constitute the requirements for regularity, and by accepting a Declaration of
Regularity the vault agrees to abide by these conditions:
(1) The vault must notify the Exchange promptly of any material change in
ownership or condition of its premises.
(2) The vault is required to submit a certified financial statement within
90 days of the firm's year-end. A letter of attestation must accompany
all financial statements signed by the Chief Financial Officer or if
there is none, a general partner or executive officer.
(3) Such vault shall be provided with standard equipment and appliances for
the convenient and safe storage of Silver and provide for proper
security.
(4) The operator of such vault shall furnish to the Registrar all needed
information to enable the Exchange to keep a correct record and account
of all Silver received and delivered by the vault daily and of that
remaining in store at the close of each week.
(5) The operator of such vault shall accord every facility to the Exchange
for the examination of its books or records for the purpose of
ascertaining the stocks of Silver. The Exchange shall have the authority
to employ experts to determine the quantity and quality of Silver in
said vault.
(6) No vault operator shall engage in unethical or inequitable practices, or
fail to comply with any laws, Federal or State, or Rules or Regulations
promulgated under those laws.
(7) The operator shall make such reports, keep such records, and permit such
vault visitation as the Board of Trade or the Commodity Futures Trading
Commission may prescribe, and shall comply with all applicable Rules and
Regulations. The vault must keep all such reports, books and records for
a period of five years from the date thereof.
(8) The operator of such vault must give such bonds to the Exchange as may
be required by the Exchange.
(9) The vault shall neither withdraw as a regular vault nor withdraw any
regular capacity except after a sixty (60) day notice to the Exchange or
having obtained the consent of the Exchange.
(10) The vault shall notify the Exchange at least sixty (60) days in advance
of any changes in its maximum storage rates, penalty for late storage
payment and handling charges.
(11) The Exchange may determine not to approve vaults for regularity or
increases in regular capacity of existing regular vaults, in its sole
discretion, regardless of whether such vaults meet the preceding
requirements and conditions. Some factors that the Exchange may, but is
not required to, consider in exercising its discretion may include,
among others, whether receipts issued by such vaults, if tendered in
satisfaction of futures contracts, might be expected to adversely affect
the price discover function of Silver futures contracts or impair the
efficacy of futures trading in Silver, or whether the currently approved
regular capacity provides for an adequate deliverable supply. (10/01/04)
1484.01 Revocation of Regularity - Any regular vault may be declared by the
Exchange to be
1406
irregular at any time if it does not comply with the conditions above set forth,
or fails to carry out its prescribed duties. If the designation of a vault as
regular shall be revoked a notice shall be posted on the bulletin board and on
the Exchange website announcing such revocation and also the period of time, if
any, during which the receipts issued by such vault shall thereafter be
deliverable in satisfaction of futures contracts in Silver under the Rules and
Regulations.
By accepting a Declaration of Regularity the vault agrees, in the event of
revocation or expiration or withdrawal of regularity, to bear the expenses of
the transfer of silver under bond to another regular vault satisfactory to the
holders of its vault receipts. (10/01/04)
1486.01 Regular Vaults - (See Appendix 14B) (10/01/04)
1407
[Enlarge/Download Table]
======================================================================================
Chapter m14
mini-sized Silver Futures
======================================================================================
Chm14 Trading Conditions..................................................
m1401.00 Authority.........................................
m1402.01 Application of Regulations........................
m1404.01 Unit of Trading...................................
m1405.01 Months Traded In..................................
m1406.01 Price Basis.......................................
m1407.01 Hours of Trading..................................
m1409.01 Last Day of Trading...............................
m1409.02 Liquidation During the Delivery Month.............
m1410.01 Margin Requirements...............................
m1411.01 Disputes..........................................
m1412.01 Position Limits and Reportable Positions..........
Chm14 Delivery Procedures.................................................
m1436.01 Standards.........................................
m1440.01 Brands and Markings of Silver.....................
m1440.02 Withdrawal of Approval of Silver Brands or
Markings..........................................
m1440.03 Approved Brands...................................
m1440.04 Product Certification and Shipment................
m1440.05 Refiners, Vaults and Assayers.....................
m1440.06 Cost of Inspection, Weighing, Storage and Delivery
m1441.01 Delivery Points...................................
m1442.01 Deliveries by Vault Receipts......................
m1443.01 Deposit of Silver with Vaults.....................
m1443.02 Issuance of Vault Receipts........................
m1444.01 Form of Warehouse Depository Receipt..............
m1446.01 Date of Delivery..................................
m1447.01 Delivery Notices..................................
m1448.01 Method of Delivery................................
m1449.00 Time of Delivery, Payment, Form of Delivery Notice
m1449.02 Buyers' Report of Eligibility to Receive Delivery.
m1449.03 Sellers' Invoice to Buyers........................
m1449.04 Payment...........................................
m1450.00 Duties of Members.................................
m1450.01 Failure to Deliver ...............................
m1451.01 Office Deliveries Prohibited......................
m1454.00 Failure to Accept Delivery........................
m1454.01 Failure to Accept Delivery .......................
m1456.01 Storage and Transfer Fees.........................
Chm14 Regularity of Vaults................................................
m1480.01 Duties of Vault Operators.........................
m1481.01 Conditions of Regularity..........................
m1484.01 Revocation of Regularity..........................
m1486.01 Regular Vaults....................................
================================================================================
Chapter m14
mini-sized Silver Futures
================================================================================
Chm14 Trading Conditions
m1401.00 Authority - Trading of mini-sized Silver futures as may be prescribed
by Regulation. (09/01/03)
m1402.01 Application of Regulations - Futures transactions in mini-sized Silver
futures shall also be subject to the regulations contained in this chapter,
which are exclusively applicable to trading in mini-sized Silver futures
contracts. (06/01/04)
m1404.01 Unit of Trading - The unit of trading for mini-sized Silver shall be
one thousand troy ounces. Bids and offers may be accepted in lots of one
thousand troy ounces or multiples thereof. (10/01/04)
m1405.01 Months Traded In - Trading in mini-sized Silver for future delivery may
be conducted in the current calendar month and any subsequent months. (10/01/04)
m1406.01 Price Basis - All prices of mini-sized Silver shall be basis New York,
New York, or basis any other location designated by the Exchange, in multiples
of 10/100 of one cent per troy ounce. Contracts shall not be made on any other
price basis. (10/01/04)
m1407.01 Hours of Trading - The hours of trading for future delivery in
mini-sized Silver futures shall be determined by the Exchange. On the last day
of trading in an expiring future, the closing time for such future shall be 1:25
p.m. (10/01/04)
m1409.01 Last Day of Trading - No trades in mini-sized Silver futures
deliverable in the current month shall be made during the last two business days
of that month and any contracts remaining open must be settled by delivery or as
provided in Regulation m1409.02 after trading in such contracts has ceased; and
if not previously delivered, delivery must be made no later than the last
business day of the month. (10/01/04)
m1409.02 Liquidation During the Delivery Month - After trading in contracts for
future delivery in the current delivery month has ceased in accordance with
Regulation m1409.01, outstanding contracts for such delivery may be liquidated
by means of a bona fide exchange of such current futures for the actual cash
commodity. Such exchange must, in any event, be made no later than the last
business day of the delivery month. (10/01/04)
m1410.01 Margin Requirements - Margin requirements shall be determined by the
Exchange. (See Regulation 431.03) (06/01/04)
m1411.01 Disputes - All disputes between interested parties may be settled by
arbitration as provided in the Rules and Regulations. (10/01/01)
Chm 14 Trading Conditions
-------------------------
m1412.01 Position Limits and Reportable Positions -
(See Regulation 425.01)(10/01/01)
Chm14 Delivery Procedures
m1436.01 Standards - The contract grade for delivery on futures contracts made
under these regulations shall be refined Silver in a bar cast in a basic weight
of either 1,000 troy ounces or 1,100 troy ounces (each bar may vary no more than
10% more or less); assaying not less than 999 fineness; and made up of one of
the brands and markings officially listed by the Exchange as provided in
Regulation m1440.01, current at the date of delivery of such silver. (10/01/01)
m1440.01 Brands and Markings of Silver - Brands and markings deliverable in
satisfaction of futures contracts shall be listed with the Exchange upon
approval by the Exchange. The Exchange may require such sureties as it deems
necessary. The Secretary's Office shall make available a list of the brands and
markings of silver bars which are deliverable. The addition of brands and
markings shall be binding upon all such contracts outstanding as well as those
entered into after approval. (10/01/01)
m1440.02 Withdrawal of Approval of Silver Brands or Markings - If at any time a
brand or marking fails to meet the requirements adopted by the Exchange or the
metallurgical assay of any silver bars bearing a brand or marking on the
official list depreciates below 999 fineness, the Exchange may exclude said
brand or marking from the official list unless deliveries of bars bearing said
brand or marking are accompanied by certificates of analysis of an official
assayer showing a silver fineness of not less than 999, and such additional bond
as the Exchange may deem necessary. Notice of such action shall be posted upon
the bulletin board of the Exchange and the official list shall indicate the
limitation upon deliveries of said brand or marking. (10/01/01)
m1440.03 Approved Brands - (See Appendix m14A) (10/01/01)
m1440.04 Product Certification and Shipment - To be eligible for delivery on
the Exchange, all silver must be certified as to fineness and weight by an
Exchange approved refiner, assayer, or other Exchange approved certifying
authority and must be shipped directly from the Exchange approved refiner,
assayer, or certifying authority via Exchange approved carriers to Exchange
approved vaults.
If silver is not continuously in the custody of an Exchange approved vault or
carrier, the Exchange may require that it be recertified as to fineness and
weight to be eligible for delivery.
The Exchange at its sole discretion shall have the authority at any time to have
assayed any silver bars covered by vault receipts delivered against futures
contracts. In such an event, costs are to be borne by the Exchange. (10/01/04)
m1440.05 Refiners, Vaults and Assayers - Exchange approved refiners, vaults and
assayers may be listed with the Exchange upon approval by the Exchange. The
Secretary's Office shall maintain and make available such lists. The addition of
refiners and vaults shall be binding upon all contracts outstanding as well as
those entered into after approval. (10/01/04)
m1440.06 Cost of Inspection, Weighing, Storage and Delivery - All charges
associated with the delivery of silver and all costs associated with
inspections, weighing, and Exchange documentations, through the day of delivery,
shall be paid by the delivering party. The delivering party shall pay storage
charges through the business day following the day of delivery. The receivers
shall pay all charges including storage charges incurred after the business day
following the day of delivery.
A holder of an Exchange approved vault receipt for silver may request
recertification at his expense at any time while the unit represented by such
receipt is in the Exchange approved vault. Such recertification shall be made by
an Exchange approved certifying authority or assayer, selected by such holder.
(10/01/01)
m1441.01 Delivery Points - Silver located at regular vaults at points approved
by the Exchange may be delivered in satisfaction of futures contracts.
(10/01/01)
m1442.01 Deliveries by Vault Receipts - In order to be valid for delivery
against futures contracts, the vault receipt must be issued in accordance with
the requirements under Regulation m1436.01 and Appendix m14A. The vault receipt
must be issued before 4:00 p.m. on notice day, the business day prior to the day
of delivery; however, in the case of delivery on the last delivery day of the
delivery month, the vault receipt must be issued before 1:00 p.m. Deliveries on
mini-sized silver futures contracts shall be made by the delivery of depository
vault receipts issued by vaults which have been approved and designated as
regular vaults by the Exchange for the storage of silver.
Chm14 Delivery Procedures
-------------------------
Silver in bars must come to the regular vaults directly from an approved source
or from another regular vault either on the Chicago Board of Trade or the COMEX
Division of the New York Mercantile Exchange, Inc., by insured or bonded
carrier.
In order to effect a valid delivery, eact vault receipt must be endorsed by the
clearing member making the delivery.
By the tender of a vault receipt for silver duly endorsed for delivery of the
lot on an Exchange contract, the endorser shall be deemed to warrant, to his
transferee and each subsequent transferee of the receipt for delivery on
Exchange contracts, and their respective immediate principals, the genuineness,
validity, and worth of such receipt, the rightfulness and effectiveness of his
transfer thereof, and the quantity and quality of the silver shown on the
receipt. Such endorsement shall also constitute a representation that all
storage charges have been paid up to and including the business day following
the day of delivery. Prepaid storage charges shall be charged to the buyer by
the seller for a period extending beyond the business day following the day of
delivery (but not in excess of one year) pro rata for the unexpired term and
adjustments shall be made upon the invoice thereof.
In the event such Exchange member or principal shall claim a breach of such
warranty, and such claim relates to the quantity or quality of the silver, the
lot shall be immediately submitted for sampling and assaying to an assayer
approved by the Exchange; the silver must be shipped under bond, and at the
owner's expense, to the assayer. The expense of sampling and assaying shall, in
the first instance, be borne by the claimant. If a deficiency in quantity or
quality shall be determined by the assayer, the claimant shall have the right to
recover the difference in the market value and all expenses incurred in
connection with the sampling and assaying and any cost of replacement of the
silver. The claimant may, at his option, proceed directly against the original
endorser of the vault receipt upon Exchange delivery, or against any endorser
prior to claimant without seeking recovery from his immediate deliverer on the
Exchange contract, and if the claim is satisfied by the original endorser of the
vault receipt, or any other endorser, all the endorsers will be thereby
discharged from liability to the claimant. If the claimant seeks recovery from
any endorser and his claim is satisfied by such endorser, the party thus
satisfying the claim will have a similar option to claim recovery directly from
any endorser prior to him. Such claims as are in dispute between members of the
Exchange may in each case be submitted to arbitration under the Rules and
Regulations of the Exchange.
The liability of an endorser of a vault receipt as provided herein shall not be
deemed to limit the rights of such endorser against any person or party for
whose account the endorser acted in making delivery on an Exchange contract. If
it shall be determined in such arbitration proceeding that any endorser of a
vault receipt or the person or party for whom such endorser acted was aware of
the breach of warranty or was involved in a plan or arrangement with the
original endorser (or his principal) to place such inferior silver in store in a
regular vault for use in deliveries upon Exchange contracts, such endorsers
shall not be entitled to recover from any prior endorser for the breach of
warranty. (10/01/04)
m1443.01 Deposit of Silver with Vaults - Silver in bars shall be placed into
a regular vault accompanied by the following information:
A. Brand or markings;
B. Identification (serial number) of each bar;
C. Weight of each bar; and
D. Fineness. (10/01/01)
m1443.02 Issuance of Vault Receipts - After the silver has been placed in a
regular vault, negotiable vault receipts shall be issued to its owners with the
following information:
A. Brand or markings;
B. Identification (serial number) of each bar;
C. Weight of each bar;
D. Fineness.
Receipts shall be lettered or numbered consecutively by each vault. No two
receipts shall bear the
Chm14 Delivery Procedures
-------------------------
same letter or number.
Where a clearing member of the Exchange delivers silver in bars on an Exchange
contract, but did not order such silver into a regular vault, the clearing
member shall, for the purposes of Regulation m1442.01, be deemed the original
endorser of the vault receipt, and shall warrant to his transferee and each
subsequent transferee that such silver was delivered to the regular vault under
the terms of Regulation m1442.01. (06/01/04)
M1444.01 Form of Warehouse Depository Receipt - The following form of warehouse
depository receipt shall be used:
Board of Trade of the City of Chicago, Inc.
141 W. Jackson Blvd.. Chicago, IL 60604
(312) 435-3592
Original Negotiable Warehouse Depository Receipt
Date Issued: No.
----------------- -----------------------
The issuer of this instrument will, upon notice and demand, deliver to:
or his or it order 1,000 troy ounces of
----------------------------------------
silver contained in a bar conforming to the delivery specifications contained in
the Rules and Regulations of the Board of Trade of the City of Chicago, Inc.
Delivery shall be based upon identification markings appearing on said bar. The
issuer has not ascertained, and is not responsible for, the authenticity or
correctness of markings on, or content, weight or fineness of, said bar. Upon
the return of this receipt, properly endorsed, to issuer, and payment of all
storage charges pertaining to the silver represented, for which the Board of
Trade of the City of Chicago, Inc. claims a lien, the silver will be transferred
into the account of the bearer of this certificate.
Board of Trade of the City of Chicago, Inc.
By:
-----------------------------------------
Authorized Signature
Notice: This receipt expires one year from date of issuance. Return to issuer
prior to expiration for reissue or delivery. (10/01/04)
m1446.01 Date of Delivery - Where Silver is sold for delivery in a specified
month, delivery of such silver may be made by the seller upon such day of the
specified month as the seller may select. If not previously delivered, delivery
must be made upon the last business day of the month. (10/01/01)
m1447.01 Delivery Notices - (See 1047.01) (10/01/01)
m1448.01 Method of Delivery - (See 1048.01) (10/01/01)
m1449.01 Time of Delivery, Payment, Form of Delivery Notice - (See 1049.00)
(10/01/01)
m1449.02 Buyer's Report of Eligibility to Receive Delivery - (See 1049.02)
(10/01/01)
m1449.03 Sellers' Invoice to Buyers - In addition to the requirements of
1049.03, the seller shall notify the vault of the transfer of ownership of the
indicated vault receipts from the seller to the buyer. The seller will be
responsible for the payment of storage charges unless the vault has been
notified thereby. (10/01/04)
m1449.04 Payment - Payment is to be made by a check drawn on and certified by a
Chicago bank or by a Cashier's check issued by a Chicago bank. The long clearing
member may effect payment by wire transfer only if this method of payment is
acceptable to the short clearing member. (10/01/01)
m1450.00 Duties of Members - (See 1050.00) (10/01/01)
m1450.01 Failure to Deliver - (See 1050.01) (01/01/04)
m1451.01 Office Deliveries Prohibited - (See 1051.01) (10/01/01)
m1454.00 Failure to Accept Delivery - (See 1054.00) (10/01/01)
m1454.01 Failure to Accept Delivery - (See 1054.01) (01/01/04)
m1456.01 Storage and Transfer Fees - Storage charges, transfer fees and in-and-
out charges shall be set by each depository vault and the schedule of such
charges shall be posted with the Exchange, which shall be notified at least 60
days in advance of any changes in the rate schedule. Except as otherwise
provided, all such charges and fees shall remain the responsibility of the
seller until payment is made. (10/01/01)
Chm14 Regularity of Vaults
m1480.01 Duties of Vault Operators - It shall be the duty of the operators of
all regular vaults:
(a) To accept Silver for delivery on Chicago Board of Trade contracts, provided
such Silver is ordered into the Vault by a Clearing Member of the Exchange,
and all space in such vaults is not already filled or contracted for.
(b) To notify the Board of Trade of any change in the condition of their
vaults.
(c) To release to the bearer of the receipt the bars covered by said receipt
upon presentation of the receipt and payment of all storage and outloading
charges no later than the business day following compliance with these
provisions.
(d) To keep stocks of Silver in storage in balance with Silver represented by
its outstanding vault receipts. (10/01/01)
m1481.01 Conditions of Regularity - Silver may be delivered against a Silver
contract from any vault designated by the Exchange specifically for the storage
of silver, and may not be delivered except from such vault. The following shall
constitute the requirements for regularity, and by accepting a Declaration of
Regularity the vault agrees to abide by these conditions:
(1) The vault must notify the Exchange promptly of any material change in
ownership or condition of its premises.
(2) The vault is required to submit a certified financial statement within 90
days of the firm's year-end. A letter of attestation must accompany all
financial statements signed by the Chief Financial Officer or if there is
none, a general partner or executive officer.
(3) Such vault shall be provided with standard equipment and appliances for the
convenient and safe storage of Silver and provide for proper security.
(4) The operator of such vault shall furnish to the Registrar all needed
information to enable the Exchange to keep a correct record and account of
all Silver received and delivered by the vault daily and of that remaining
in store at the close of each week.
(5) The operator of such vault shall accord every facility to the Exchange for
the examination of its books or records for the purpose of ascertaining the
stocks of Silver. The Exchange shall have the authority to employ experts
to determine the quantity and quality of Silver in said vault.
(6) No vault operator shall engage in unethical or inequitable practices, or
fail to comply with any laws, Federal or State, or Rules or Regulations
promulgated under those laws.
(7) The operator shall make such reports, keep such records, and permit such
vault visitation as the Board of Trade or the Commodity Futures Trading
Commission may prescribe, and shall comply with all applicable Rules and
Regulations. The vault shall keep all such reports, books and records for a
period of five years from the date thereof.
(8) The operator of such vault must give such bonds to the Exchange as may be
required by the Exchange.
(9) The vault shall neither withdraw as a regular vault nor withdraw any
regular capacity except after a sixty (60) day notice to the Exchange or
having obtained the consent of the Exchange.
(10) The vault shall notify the Exchange at least sixty (60) days in advance of
any changes in its maximum storage rates, penalty for late storage payment
and handling charges.
(11) The Exchange may determine not to approve vaults for regularity or
increases in regular capacity of existing regular vaults, in it sole
discretion, regardless of whether such vaults meet the preceding
requirements and conditions. Some factors that the Exchange may, but is not
required to, consider in exercising its discretion may include, among
others, whether receipts issued by such vaults, if tendered in satisfaction
of futures contracts, might be expected to adversely affect the price
discovery function of Silver futures contracts or impair the efficacy of
futures trading in Silver, or whether the currently approved regular
capacity provides for an adequate deliverable supply. (10/01/04)
m1484.01 Revocation of Regularity - Any regular vault may be declared by the
Exchange to be irregular at any time if it does not comply with the conditions
above set forth, or fails to carry out its prescribed duties. If the designation
of a vault as regular shall be revoked a notice shall be posted on the bulletin
board and on the Exchange website announcing such revocation and also the period
of time, if any, during which the receipts issued by such vault shall thereafter
be deliverable in satisfaction of futures contracts in Silver under the Rules
and Regulations.
Chm14 Regularity of Vaults
--------------------------
By accepting a Declaration of Regularity the vault agrees, in the event of
revocation, expiration or withdrawal of regularity, to bear the expenses of the
transfer of silver under bond to another regular vault satisfactory to the
holders of its vault receipts. (10/01/04)
m1486.01 Regular Vaults - (See Appendix m14B) (10/01/01)
================================================================================
Chapter 15
CBOT 100 oz. Gold Futures
================================================================================
Ch15 Trading Conditions.................................................... 1502
1501.01 Authority................................................... 1502
1502.01 Application of Regulations.................................. 1502
1504.01 Unit of Trading............................................. 1502
1505.01 Months Traded In............................................ 1502
1506.01 Price Basis................................................. 1502
1507.01 Hours of Trading............................................ 1502
1509.01 Last Day of Trading......................................... 1502
1509.02 Liquidation During the Delivery Month....................... 1502
1510.01 Margin Requirements......................................... 1502
1511.01 Disputes.................................................... 1502
1512.01 Position Limits and Reportable Positions.................... 1502
Ch15 Delivery Procedures................................................... 1503
1536.01 Standards................................................... 1503
1540.01 Brands and Markings of Gold................................. 1503
1540.02 Withdrawal of Approval of Gold Brands or Markings........... 1503
1540.03 Approved Brands............................................. 1503
1540.04 Product Certification and Shipment.......................... 1503
1540.05 Refiners, Vaults, and Assayers.............................. 1503
1540.06 Cost of Inspection, Weighing, Storage and Delivery.......... 1503
1541.01 Delivery Points............................................. 1503
1542.01 Deliveries by Vault Receipts................................ 1503
1543.01 Deposit of Gold with Vaults................................. 1504
1543.02 Issuance of Vault Receipts.................................. 1504
1546.01 Date of Delivery............................................ 1505
1547.01 Delivery Notices............................................ 1505
1548.01 Method of Delivery.......................................... 1505
1549.00 Time of Delivery, Payment, Form of Delivery Notice.......... 1505
1549.02 Buyers' Report of Eligibility to Receive Delivery........... 1505
1549.03 Sellers' Invoice to Buyers.................................. 1505
1449.04 Payment..................................................... 1505
1550.00 Duties of Members........................................... 1505
1550.01 Failure to Deliver.......................................... 1505
1551.01 Office Deliveries Prohibited................................ 1505
1554.00 Failure to Accept Delivery.................................. 1505
1554.01 Failure to Accept Delivery.................................. 1505
1556.01 Storage and Transfer Fees................................... 1505
Ch15 Regularity of Vaults.................................................. 1506
1580.01 Duties of Vault Operators................................... 1506
1581.01 Conditions of Regularity.................................... 1506
1584.01 Revocation of Regularity.................................... 1506
1586.01 Regular Vaults.............................................. 1507
1501
================================================================================
Chapter 15
CBOT 100 oz. Gold Futures
================================================================================
CH15 TRADING CONDITIONS
1501.01 Authority - Trading of Gold futures may be conducted under such
terms and conditions as may be prescribed by the Rules and Regulations.
(10/01/04)
1502.01 Application of Regulations - Transactions in Gold futures shall be
subject to the general rules and regulations of the Exchange as far as
applicable and shall also be subject to the rules and regulations contained in
this chapter, which are exclusively applicable to trading in 100 oz. Gold
futures contracts. (10/01/04)
1504.01 Unit of Trading - The unit of trading for Gold shall be 100 fine
troy ounces of Gold not less than 0.995 fine, cast either in one bar or in 3
one-kilogram bars. Bids and offers may be accepted in lots of 100 fine troy
ounces or multiples thereof. (10/01/04)
1505.01 Months Traded In - Trading in Gold for future delivery may be
conducted in the current calendar month and any subsequent months. (10/01/04)
1506.01 Price Basis - All prices of Gold shall be basis New York, New York,
or basis any other location designated by the Exchange, in multiples of $0.10
(10 cents) per troy ounce. Contracts shall not be made on any other price basis.
(10/01/04)
1507.01 Hours of Trading - The hours of trading for future delivery in Gold
futures shall be determined by the Exchange. On the last day of trading in an
expiring future, the closing time for such future shall be 1:30 p.m. (10/01/04)
1509.01 Last Day of Trading - No trades in Gold futures deliverable in the
current month shall be made during the last two business days of that month and
any contracts remaining open must be settled by delivery or as provided in
Regulation 1509.02 after trading in such contracts has ceased; and if not
previously delivered, delivery must be made no later than the last business day
of the month. (10/01/04)
1509.02 Liquidation During the Delivery Month - After trading in contracts
for future delivery in the current delivery month has ceased in accordance with
Regulation 1509.01, outstanding contracts for such delivery may be liquidated by
means of a bona fide exchange of such current futures for the actual cash
commodity. Such exchange must, in any event, be made no later than the last
business day of the delivery month. (10/01/04)
1510.01 Margin Requirements - Margin requirements shall be determined by the
Exchange. (See Regulation 431.03) (10/01/04)
1511.01 Disputes - All disputes between interested parties may be settled by
arbitration as provided in the Rules and Regulations. (10/01/04)
1512.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(10/01/04)
1502
CH15 DELIVERY PROCEDURES
1536.01 Standards - Each futures contract shall be for 100 fine troy ounces
of Gold no less than 995 fineness, cast either in one bar or in 3 one-kilogram
bars.
Variations in the quantity of the delivery unit not in excess of five percent of
100 fine troy ounces shall be permitted.
In accordance with the accepted practices of the trade, each bar for good
delivery must be of good appearance, easy to handle, and convenient to stack.
The sides and bottom should be reasonably smooth and free from cavities and
bubbles. The edges should be rounded and not sharp. Each bar, if not marked with
the fineness and stamp of an approved refiner, assayer, or other certifying
authority must be accompanied by a certificate issued by an approved refiner,
assayer, or other certifying authority, stating the serial number of the bar(s),
the weight, and the fineness. (10/01/04)
1540.01 Brands and Markings of Gold - Brands and markings deliverable in
satisfaction of futures contracts shall be listed with the Exchange upon
approval by the Exchange. The Exchange may require such sureties as it deems
necessary. The Secretary's Office shall make available a list of the brands and
markings of Gold bars which are deliverable. The addition of brands and markings
shall be binding upon all such contracts outstanding as well as those entered
into after approval. (10/01/04)
1540.02 Withdrawal of Approval of Gold Brands or Markings - If at any time a
brand or marking fails to meet the requirements adopted by the Exchange or the
metallurgical assay of any Gold bars bearing a brand or marking on the official
list depreciates below 995 fineness, the Exchange may exclude said brand or
marking from the official list unless deliveries of bars bearing said brand or
marking are accompanied by certificates of analysis of an official assayer
showing a Gold fineness of not less than 995, and such additional bond as the
Exchange may deem necessary. Notice of such action shall be posted upon the
bulletin board of the Exchange and the official list shall indicate the
limitation upon deliveries of said brand or marking. (10/01/04)
1540.03 Approved Brands - (See Appendix 15A) (10/01/04)
1540.04 Product Certification and Shipment - To be eligible for delivery on
the Exchange, all Gold must be certified as to fineness and weight by an
Exchange approved refiner, assayer, or other Exchange approved certifying
authority and must be shipped directly from the Exchange approved refiner,
assayer, or certifying authority via Exchange approved carriers to Exchange
approved vaults.
If Gold is not continuously in the custody of an Exchange approved vault or
carrier, the Exchange may require that it be recertified as to fineness and
weight to be eligible for delivery.
The Exchange at its sole discretion shall have the authority at any time to have
assayed any Gold bars covered by vault receipts delivered against futures
contracts. In such an event, costs are to be borne by the Exchange. (10/01/04)
1540.05 Refiners, Vaults, and Assayers - Exchange approved refiners, vaults,
and assayers may be listed with the Exchange upon approval by the Exchange. The
Secretary's Office shall maintain and make available such lists. The addition of
refiners and vaults shall be binding upon all contracts outstanding as well as
those entered into after approval. (10/01/04)
1540.06 Cost of Inspection, Weighing, Storage and Delivery - All charges
associated with the delivery of Gold and all costs associated with inspections,
weighing, and Exchange documentations, through the day of delivery, shall be
paid by the delivering party. The delivering party shall pay storage charges
through the business day following the day of delivery. The receivers shall pay
all charges including storage charges incurred after the business day following
the day of delivery.
A holder of an Exchange approved vault receipt for Gold may request
recertification at his expense at any time while the unit represented by such
receipt is in the Exchange approved vault. Such recertification shall be made by
an Exchange approved certifying authority or assayer, selected by such holder.
(10/01/04)
1541.01 Delivery Points - Gold located at regular vaults at points approved
by the Exchange may be delivered in satisfaction of futures contracts.
(10/01/04)
1542.01 Deliveries by Vault Receipts - In order to be valid for delivery
against futures contracts,
1503
the vault receipt must be issued in accordance with the requirements under
Regulation 1536.01 and Appendix 15A. The vault receipt must be issued before
4:00 p.m. on notice day, the business day prior to the day of delivery; however,
in the case of delivery on the last delivery day of the delivery month, the
vault receipt must be issued before 1:00 p.m. Deliveries on Gold futures
contracts shall be made by the delivery of depository vault receipts issued by
vaults which have been approved and designated as regular vaults by the Exchange
for the storage of Gold. Gold in bars must come to the regular vault directly
from an approved source or from another regular vault either on the Chicago
Board of Trade or the COMEX Division of the New York Mercantile Exchange, Inc.,
by insured or bonded carrier.
In order to effect a valid delivery, each vault receipt must be endorsed by the
clearing member making the delivery. By the tender of a vault receipt for Gold
duly endorsed for delivery of the lot on an Exchange contract, the endorser
shall be deemed to warrant, to his transferee and each subsequent transferee of
the receipt for delivery on Exchange contracts, and their respective immediate
principals, the genuineness, validity, and worth of such receipt, the
rightfulness and effectiveness of his transfer thereof, and the quantity and
quality of the Gold shown on the receipt. Such endorsement shall also constitute
a representation that all storage charges have been paid up to and including the
business day following the day of delivery. Prepaid storage charges shall be
charged to the buyer by the seller for a period extending beyond the business
day following the day of delivery (but not in excess of one year) pro rata for
the unexpired term and adjustments shall be made upon the invoice thereof.
In the event such Exchange member or principal shall claim a breach of such
warranty, and such claim relates to the quantity or quality of the Gold, the lot
shall be immediately submitted for sampling and assaying to an assayer approved
by the Exchange; the Gold must be shipped under bond, and at the owner's
expense, to the assayer. The expense of sampling and assaying shall, in the
first instance, be borne by the claimant. If a deficiency in quantity or quality
shall be determined by the assayer, the claimant shall have the right to recover
the difference in the market value and all expenses incurred in connection with
the sampling and assaying and any cost of replacement of the Gold. The claimant
may, at his option, proceed directly against the original endorser of the vault
receipt upon Exchange delivery, or against any endorser prior to claimant
without seeking recovery from his immediate deliverer on the Exchange contract,
and if the claim is satisfied by the original endorser of the vault receipt, or
any other endorser, all the endorsers will be thereby discharged from liability
to the claimant. If the claimant seeks recovery from any endorser and his claim
is satisfied by such endorser, the party thus satisfying the claim will have a
similar option to claim recovery directly from any endorser prior to him. Such
claims as are in dispute between members of the Exchange may in each case be
submitted to arbitration under the Rules of the Exchange.
The liability of an endorser of a vault receipt as provided herein shall not be
deemed to limit the rights of such endorser against any person or party for
whose account the endorser acted in making delivery on an Exchange contract. If
it shall be determined in such arbitration proceeding that any endorser of a
vault receipt or the person or party for whom such endorser acted was aware of
the breach of warranty or was involved in a plan or arrangement with the
original endorser (or his principal) to place such inferior Gold in store in a
regular vault for use in deliveries upon Exchange contracts, such endorsers
shall not be entitled to recover from any prior endorser for the breach of
warranty. (10/01/04)
1543.01 Deposit of Gold with Vaults - Gold in bars shall be placed into a
regular vault accompanied by the following information:
A. Brand or markings;
B. Identification (serial number) of each bar;
C. Weight of each bar; and
D. Fineness. (10/01/04)
1543.02 Issuance of Vault Receipts - After the Gold has been placed in a
regular vault, negotiable vault receipts shall be issued to its owners with the
following information:
A. Brand or markings;
B. Identification (serial number) of each bar;
C. Weight of each bar;
D. Fineness.
Receipts shall be lettered or numbered consecutively by each vault. No two
receipts shall bear the same letter or number. (10/01/04)
1504
1546.01 Date of Delivery - Where Gold is sold for delivery in a specified
month, delivery of such Gold may be made by the seller upon such day of the
specified month as the seller may select. If not previously delivered, delivery
must be made upon the last business day of the month. (10/01/04)
1547.01 Delivery Notices - (See 1047.01) (10/01/04)
1548.01 Method of Delivery - (See 1048.01) (10/01/04)
1549.01 Time of Delivery, Payment, Form of Delivery Notice - (See 1049.00)
(10/01/04)
1549.02 Buyers' Report of Eligibility to Receive Delivery - (See 1049.02)
(10/01/04)
1549.03 Sellers' Invoice to Buyers - In addition to the requirements of
1049.03, the seller shall notify the vault of the transfer of ownership of the
indicated vault receipts from the seller to the buyer. The seller will be
responsible for the payment of storage charges unless the vault has been
notified thereby. (10/01/04)
1549.04 Payment -. Payment shall be made on the basis of the number of fine
troy ounces of Gold contained and delivered. The fine Gold content of a bar for
good delivery is calculated to 0.001 of a troy ounce by multiplying the gross
weight and fineness as listed on the vault receipt. Fineness in no case will be
more than 0.9999.
Payment is to be made by a check drawn on and certified by a Chicago bank or by
a Cashier's check issued by a Chicago bank. The long clearing member may effect
payment by wire transfer only if this method of payment is acceptable to the
short clearing member. (10/01/04)
1550.00 Duties of Members - (See 1050.00) (10/01/04)
1550.01 Failure to Deliver - (See 1050.01) (10/01/04)
1551.01 Office Deliveries Prohibited - (See 1051.01) (10/01/04)
1554.00 Failure to Accept Delivery - (See 1054.00) (10/01/04)
1554.01 Failure to Accept Delivery - (See 1054.01) (10/01/04)
1556.01 Storage and Transfer Fees - Storage charges, transfer fees and
in-and-out charges shall be set by each depository vault and the schedule of
such charges shall be posted with the Exchange, which shall be notified at least
60 days in advance of any changes in the rate schedule. Except as otherwise
provided, all such charges and fees shall remain the responsibility of the
seller until payment is made. (10/01/04)
1505
CH15 REGULARITY OF VAULTS
1580.01 Duties of Vault Operators - It shall be the duty of the operators of
all regular vaults:
(a) To accept Gold for delivery on Chicago Board of Trade contracts,
provided such Gold is ordered into the vault by a Clearing Member of the
Exchange, and all space in such vaults is not already filled or
contracted for.
(b) To notify the Board of Trade of any change in the condition of their
vaults.
(c) To release to the bearer of the receipt the bars covered by said receipt
upon presentation of the receipt and payment of all storage and
outloading charges no later than the business day following compliance
with these provisions.
(d) To keep stocks of Gold in storage in balance with Gold represented by
its outstanding vault receipts. (10/01/04)
1581.01 Conditions of Regularity - Gold may be delivered against a Gold
contract from any vault designated by the Exchange specifically for the storage
of Gold, and may not be delivered except from such vault. The following shall
constitute the requirements for regularity, and by accepting a Declaration of
Regularity the vault agrees to abide by these conditions:
(1) The vault must notify the Exchange promptly of any material change in
ownership or condition of its premises.
(2) The vault is required to submit a certified financial statement within
90 days of the firm's year-end. A letter of attestation must accompany
all financial statements signed by the Chief Financial Officer or if
there is none, a general partner or executive officer.
(3) Such vault shall be provided with standard equipment and appliances for
the convenient and safe storage of Gold and provide for proper security.
(4) The operator of such vault shall furnish to the Registrar all needed
information to enable the Exchange to keep a correct record and account
of all Gold received and delivered by the vault daily and of that
remaining in store at the close of each week.
(5) The operator of such vault shall accord every facility to the Exchange
for the examination of its books or records for the purpose of
ascertaining the stocks of Gold. The Exchange shall have the authority
to employ experts to determine the quantity and quality of Gold in said
vault.
(6) No vault operator shall engage in unethical or inequitable practices, or
fail to comply with any laws, Federal or State, or Rules or Regulations
promulgated under those laws.
(7) The operator shall make such reports, keep such records, and permit such
vault visitation as the Board of Trade or the Commodity Futures Trading
Commission may prescribe, and shall comply with all applicable Rules and
Regulations. The vault must keep all such reports, books and records for
a period of five years from the date thereof.
(8) The operator of such vault must give such bonds to the Exchange as may
be required by the Exchange.
(9) The vault shall neither withdraw as a regular vault nor withdraw any
regular capacity except after a sixty (60) day notice to the Exchange or
having obtained the consent of the Exchange.
(10) The vault shall notify the Exchange at least sixty (60) days in advance
of any changes in its maximum storage rates, penalty for late storage
payment and handling charges.
(11) The Exchange may determine not to approve vaults for regularity or
increases in regular capacity of existing regular vaults, in its sole
discretion, regardless of whether such vaults meet the preceding
requirements and conditions. Some factors that the Exchange may, but is
not required to, consider in exercising its discretion may include,
among others, whether receipts issued by such vaults, if tendered in
satisfaction of futures contracts, might be expected to adversely affect
the price discover function of Gold futures contracts or impair the
efficacy of futures trading in Gold, or whether the currently approved
regular capacity provides for an adequate deliverable supply. (10/01/04)
1584.01 Revocation of Regularity - Any regular vault may be declared by the
Exchange to be
1506
irregular at any time if it does not comply with the conditions above set forth,
or fails to carry out its prescribed duties. If the designation of a vault as
regular shall be revoked a notice shall be posted on the bulletin board and on
the Exchange website announcing such revocation and also the period of time, if
any, during which the receipts issued by such vault shall thereafter be
deliverable in satisfaction of futures contracts in Gold under the Rules and
Regulations.
By accepting a Declaration of Regularity the vault agrees, in the event of
revocation or expiration or withdrawal of regularity, to bear the expenses of
the transfer of silver under bond to another regular vault satisfactory to the
holders of its vault receipts. (10/01/04)
1586.01 Regular Vaults - (See Appendix 15B) (10/01/04)
1507
================================================================================
Chapter m15
mini-size Gold Futures
================================================================================
Chml5 Trading Conditions ............................................... 1502
m1501.00 Authority .............................................. 1502
m1502.01 Application of Regulations ............................. 1502
m1504.01 Unit of Trading ........................................ 1502
m1505.01 Months Traded In ....................................... 1502
m1506.01 Price Basis ............................................ 1502
m1507.01 Hours of Trading ....................................... 1502
ml509.01 Last Day of Trading .................................... 1502
m1509.02 Liquidation During the Delivery Month .................. 1502
m1510.01 Margin Requirements .................................... 1502
m1511.01 Disputes ............................................... 1502
m1512.01 Position Limits and Reportable Positions ............... 1503
Chml5 Delivery Procedures .............................................. 1504
m1536.01 Standards .............................................. 1504
m1540.01 Brands and Markings of Gold ............................ 1504
ml540.02 Withdrawal of Approval of Gold Brands or Markings ...... 1504
m1540.03 Approved Brands ........................................ 1504
m1540.04 Product Certification and Shipment ..................... 1504
ml540.05 Refiners, Vaults and Assayers .......................... 1504
m1540.06 Cost of Inspection, Weighing, Storage and Delivery ..... 1504
m1541.01 Delivery Points ........................................ 1504
m1542.01 Deliveries by Vault Receipts ........................... 1504
m1543.01 Deposit of Gold with Vaults ............................ 1505
m1543.02 Issuance of Vault Receipts ............................. 1505
m1544.01 Form of Warehouse Depository Receipt ................... 1506
m1546.01 Date of Delivery ....................................... 1507
m1547.01 Delivery Notices ....................................... 1507
m1548.01 Method of Delivery ..................................... 1507
m1549.00 Time of Delivery, Payment, Form of Delivery Notice ..... 1507
ml549.02 Buyers' Report of Eligibility to Receive Delivery ...... 1507
ml549.03 Sellers' Invoice to Buyers ............................. 1507
ml549.04 Payment ................................................ 1507
ml550.00 Duties of Members ...................................... 1508
m1550.01 Failure to Deliver ..................................... 1508
ml551.01 Office Deliveries Prohibited ........................... 1508
m1554.00 Failure to Accept Delivery ............................. 1508
m1554.01 Failure to Accept Delivery ............................. 1508
ml556.01 Storage and Transfer Fees .............................. 1508
Chml5 Regularity of Vaults ............................................. 1509
m1580.01 Duties of Vault Operators .............................. 1509
ml581.01 Conditions of Regularity ............................... 1509
ml584.01 Revocation of Regularity ............................... 1509
m1586.01 Regular Vaults ......................................... 1510
================================================================================
Chapter m15
mini-sized Gold Futures
================================================================================
Chm15 Trading Conditions
m1501.00 Authority - Trading of mini-sized Gold futures may be conducted under
such terms and conditions as may be prescribed by Regulation. (09/01/03)
m1502.01 Application of Regulations - Futures transactions in mini-sized Gold
futures shall be subject to the general rules of the Exchange as far as
applicable and shall also be subject to the regulations contained in this
chapter, which are exclusively applicable to trading in mini-sized Gold futures
contracts. (06/01/04)
m1504.01 Unit of Trading - The unit of trading for mini-sized Gold shall be for
33.2 fine troy ounces of Gold not less than 0.995 fine contained in one bar.
Bids and offers may be accepted in lots of 33.2 fine troy ounces or multiples
thereof. (10/01/04)
m1505.01 Months Traded In - Trading in mini-sized Gold for future delivery may
be conducted in the current calendar month and any subsequent months. (10/01/04)
m1506.01 Price Basis - All prices of mini-sized Gold shall be basis New York,
New York, or basis any other location designated by the Exchange, in multiples
of $0.10 (10 cents) per fine troy ounce. Contracts shall not be made on any
other price basis. (10/01/04)
m1507.01 Hours of Trading - The hours of trading for future delivery in
mini-sized Gold futures shall be determined by the Exchange. On the last day of
trading in an expiring future, the closing time for such future shall be 1:30
p.m. (10/01/04)
m1509.01 Last Day of Trading - No trades in mini-sized Gold futures deliverable
in the current month shall be made during the last two business days of that
month and any contracts remaining open must be settled by delivery or as
provided in Regulation m1509.02 after trading in such contracts has ceased; and
if not previously delivered, delivery must be made no later than the last
business day of the month. (10/01/04)
m1509.02 Liquidation During the Delivery Month - After trading in contracts for
future delivery in the current delivery month has ceased in accordance with
Regulation m1509.01, outstanding contracts for such delivery may be liquidated
by means of a bona fide exchange of such current futures for the actual cash
commodity. Such exchange must, in any event, be made no later than the last
business day of the delivery month. (10/01/04)
m1510.01 Margin Requirements - Margin requirements shall be determined by the
Exchange. (See Regulation 431.03) (06/01/04)
m1511.01 Disputes - All disputes between interested parties may be settled by
arbitration as provided in the Rules and Regulations. (10/01/01)
Chm 15 Trading Conditions
-------------------------
m1512.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(10/01/01)
Chm15 Delivery Procedures
m1536.01 Standards - Each futures contract shall be for 33.2 fine troy ounces
of Gold no less than 995 fineness contained in no more than one bar.
Variations in the quantity of the delivery unit not in excess of ten percent of
33.2 fine troy ounces shall be permitted.
In accordance with the accepted practices of the trade, each bar for good
delivery must be of good appearance, easy to handle, and convenient to stack.
The sides and bottom should be reasonably smooth and free from cavities and
bubbles. The edges should be rounded and not sharp. Each bar, if not marked
with the fineness and stamp of an approved refiner, assayer, or other certifying
authority must be accompanied by a certificate issued by an approved refiner,
assayer, or other certifying authority, stating the serial number of the bar(s),
the weight, and the fineness. (10/01/01)
m1540.01 Brands and Markings of Gold - Brands and markings deliverable in
satisfaction of futures contracts shall be listed with the Exchange upon
approval by the Exchange. The Exchange may require such sureties as it deems
necessary. The Secretary's Office shall make available a list of the brands and
markings of Gold bars which are deliverable. The addition of brands and markings
shall be binding upon all such contracts outstanding as well as those entered
into after approval. (10/01/01)
m1540.02 Withdrawal of Approval of Gold Brands or Markings - If at any time a
brand or marking fails to meet the requirements adopted by the Exchange or the
metallurgical assay of any Gold bars bearing a brand or marking on the official
list depreciates below 995 fineness, the Exchange may exclude said brand or
marking from the official list unless deliveries of bars bearing said brand or
marking are accompanied by certificates of analysis of an official assayer
showing a Gold fineness of not less than 995, and such additional bond as the
Exchange may deem necessary. Notice of such action shall be posted upon the
bulletin board of the Exchange and the official list shall indicate the
limitation upon deliveries of said brand or marking. (10/01/01)
m1540.03 Approved Brands - (See Appendix m15A) (10/01/01)
m1540.04 Product Certification and Shipment - To be eligible for delivery on
the Exchange, all Gold must be certified as to fineness and weight by an
Exchange approved refiner, assayer, or other Exchange approved certifying
authority and must be shipped directly from the Exchange approved refiner,
assayer, or certifying authority via Exchange approved carriers to Exchange
approved vaults.
If Gold is not continuously in the custody of an Exchange approved vault or
carrier, the Exchange may require that it be recertified as to fineness and
weight to be eligible for delivery.
The Exchange at its sole discretion shall have the authority at any time to have
assayed any Gold bars covered by vault receipts delivered against futures
contracts. In such an event, costs are to be borne by the Exchange. (10/01/04)
m1540.05 Refiners, Vaults and Assayers - Exchange approved refiners, vaults and
assayers may be listed with the Exchange upon approval by the Exchange. The
Secretary's Office shall maintain and make available such lists. The addition of
refiners and vaults shall be binding upon all contracts outstanding as well as
those entered into after approval. (10/01/04)
m1540.06 Cost of Inspection, Weighing, Storage and Delivery - All charges
associated with the delivery of Gold and all costs associated with inspections,
weighing, and Exchange documentations, through the day of delivery, shall be
paid by the delivering party. The delivering party shall pay storage charges
through the business day following the day of delivery. The receivers shall pay
all charges including storage charges incurred after the business day following
the day of delivery.
A holder of an Exchange approved vault receipt for Gold may request
recertification at his expense at any time while the unit represented by such
receipt is in the Exchange approved vault. Such recertification shall be made
by an Exchange approved certifying authority or assayer, selected by such
holder. (10/01/01)
m1541.01 Delivery Points - Gold located at regular vaults at points approved
by the Exchange may be delivered in satisfaction of futures contracts.
(10/01/01)
m1542.01 Deliveries by Vault Receipts - In order to be valid for delivery
against futures contracts,
Chm 15 Delivery Procedures
--------------------------
the vault receipt must be issued in accordance with the requirements under
Regulation m1536.01 and Appendix 15A. The vault receipt must be issued before
4:00 p.m. on notice day, the business day prior to the day of delivery; however,
in the case of delivery on the last delivery day of the delivery month, the
vault receipt must be issued before 1:00 p.m. Deliveries on Gold futures
contracts shall be made by the delivery of depository vault receipts issued by
vaults which have been approved and designated as regular vaults by the Exchange
for the storage of Gold. Gold in bars must come to the regular vault directly
from an approved source or from another regular vault either on the Chicago
Board of Trade or the COMEX Division of the New York Mercantile Exchange, Inc.,
by insured or bonded carrier.
In order to effect a valid delivery, each vault receipt must be endorsed by the
clearing member making the delivery.
By the tender of a vault receipt for Gold duly endorsed for delivery of the lot
on an Exchange contract, the endorser shall be deemed to warrant, to his
transferee and each subsequent transferee of the receipt for delivery on
Exchange contracts, and their respective immediate principals, the genuineness,
validity, and worth of such receipt, the rightfulness and effectiveness of his
transfer thereof, and the quantity and quality of the Gold shown on the receipt.
Such endorsement shall also constitute a representation that all storage charges
have been paid up to and including the business day following the day of
delivery. Prepaid storage charges shall be charged to the buyer by the seller
for a period extending beyond the business day following the day of delivery
(but not in excess of ninety days) pro rata for the unexpired term and
adjustments shall be made upon the invoice thereof.
In the event such Exchange member or principal shall claim a breach of such
warranty, and such claim relates to the quantity or quality of the Gold, the lot
shall be immediately submitted for sampling and assaying to an assayer approved
by the Exchange; the Gold must be shipped under bond, and at the owner's
expense, to the assayer. The expense of sampling and assaying shall, in the
first instance, be borne by the claimant. If a deficiency in quantity or quality
shall be determined by the assayer, the claimant shall have the right to recover
the difference in the market value and all expenses incurred in connection with
the sampling and assaying and any cost of replacement of the Gold. The claimant
may, at his option, proceed directly against the original endorser of the vault
receipt upon Exchange delivery, or against any endorser prior to claimant
without seeking recovery from his immediate deliverer on the Exchange contract,
and if the claim is satisfied by the original endorser of the vault receipt, or
any other endorser, all the endorsers will be thereby discharged from liability
to the claimant. If the claimant seeks recovery from any endorser and his claim
is satisfied by such endorser, the party thus satisfying the claim will have a
similar option to claim recovery directly from any endorser prior to him. Such
claims as are in dispute between members of the Exchange may in each case be
submitted to arbitration under the Rules and Regulations of the Exchange.
The liability of an endorser of a vault receipt as provided herein shall not be
deemed to limit the rights of such endorser against any person or party for
whose account the endorser acted in making delivery on an Exchange contract. If
it shall be determined in such arbitration proceeding that any endorser of a
vault receipt or the person or party for whom such endorser acted was aware of
the breach of warranty or was involved in a plan or arrangement with the
original endorser (or his principal) to place such inferior Gold in store in a
regular vault for use in deliveries upon Exchange contracts, such endorsers
shall not be entitled to recover from any prior endorser for the breach of
warranty. (10/01/04)
m1543.01 Deposit of Gold with Vaults - Gold in bars shall be placed into a
regular vault accompanied by the following information:
A. Brand or markings;
B. Identification (serial number) of each bar;
C. Weight of each bar; and
D. Fineness. (10/01/01)
m1543.02 Issuance of Vault Receipts - After the Gold has been placed in a
regular vault, negotiable vault receipts shall be issued to its owners with the
following information:
A. Brand or markings;
Chm 15 Delivery Procedures
B. Identification (serial number) of each bar;
C. Weight of each bar;
D. Fineness.
Receipts shall be lettered or numbered consecutively by each vault. No two
receipts shall bear the same letter or number. (06/01/04)
m1544.01 Form of Warehouse Depository Vault Receipt - The following form of
warehouse depository receipt shall be used:
Chm15 Delivery Procedures
-------------------------
Board of Trade of the City of Chicago, Inc.
141 W. Jackson Blvd.* Chicago, IL 60604
(312) 435-3592
Original Negotiable Warehouse Depository Receipt
Date Issued: _________________ No. _______________________
The issuer of this instrument will, upon notice and demand, deliver to:
________________________________________ or his or its order 33.2 troy ounces of
Gold contained in a bar conforming to the delivery specifications contained in
the Rules and Regulations of the Board of Trade of the City of Chicago, Inc.
Delivery shall be based upon identification markings appearing on said bar. The
issuer has not ascertained, and is not responsible for, the authenticity or
correctness of markings on, or content, weight or fineness of, said bar. Upon
the return of this receipt, properly endorsed, to issuer, and payment of all
storage charges pertaining to the Gold represented, for which the Board of Trade
of the City of Chicago, Inc. claims a lien, the Gold will be transferred into
the account of the bearer of this certificate.
Board of Trade of the City of Chicago, Inc.
By: ________________________________________
Authorized Signature
Notice: This receipt expires one year from date of issuance. Return to issuer
prior to expiration for reissue or delivery. (10/01/04)
m1546.01 Date of Delivery - Where Gold is sold for delivery in a specified
month, delivery of such Gold may be made by the seller upon such day of the
specified month as the seller may select. If not previously delivered, delivery
must be made upon the last business day of the month. (10/01/01)
m1547.01 Delivery Notices - (See 1047.01) (10/01/01)
m1548.01 Method of Delivery - (See 1048.01) (10/01/01)
m1549.01 Time of Delivery, Payment, Form of Delivery Notice - (See 1049.00)
(10/01/01)
m1549.02 Buyers' Report of Eligibility to Receive Delivery - (See 1049.02)
(10/01/01)
m1549.03 Sellers' Invoice to Buyers - In addition to the requirements of
1049.03, the seller shall notify the vault of the transfer of ownership of the
indicated vault receipts from the seller to the buyer. The seller will be
responsible for the payment of storage charges unless the vault has been
notified thereby. (10/01/04)
m1549.04 Payment - Payment shall be made on the basis of the number of fine troy
ounces of Gold contained and delivered. The fine Gold content of a bar for good
delivery is calculated to 0.001 of a troy ounce by multiplying the gross weight
and fineness as listed on the vault receipt. Fineness in no case will be more
than 0.9999.
Chm 15 Delivery Procedures
--------------------------
Payment is to be made by a check drawn on and certified by a Chicago bank or by
a Cashier's check issued by a Chicago bank. The long clearing member may effect
payment by wire transfer only if this method of payment is acceptable to the
short clearing member. (10/01/04)
m1550.00 Duties of Members - (See 1050.00) (10/01/01)
m1550.01 Failure to Deliver - (See 1050.01) (01/01/04)
m1551.01 Office Deliveries Prohibited - (See 1051.01) (10/01/01)
m1554.00 Failure to Accept Delivery - (See 1054.00) (10/01/01)
m1554.01 Failure to Accept Delivery - (See 1054.01) (01/01/04)
m1556.01 Storage and Transfer Fees - Storage charges, transfer fees and in-and-
out charges shall be set by each depository vault and the schedule of such
charges shall be posted with the Exchange, which shall be notified at least 60
days in advance of any changes in the rate schedule. Except as otherwise
provided, all such charges and fees shall remain the responsibility of the
seller until payment is made. (10/01/01)
Chm15 Regularity of Vaults
m1580.01 Duties of Vault Operators - It shall be the duty of the operators of
all regular vaults:
(a) To accept Gold for delivery on Chicago Board of Trade contracts, provided
such Gold is ordered into the Vault by a Clearing Member of the Exchange,
and all space in such vaults is not already filled or contracted for.
(b) To notify the Board of Trade of any change in the condition of their vaults.
(c) To release to the bearer of the receipt the bars covered by said receipt
upon presentation of the receipt and payment of all storage and outloading
charges no later than the business day following compliance with these
provisions.
(d) To keep stocks of Gold in storage in balance with Gold represented by its
outstanding vault receipts. (10/01/01)
m1581.01 Conditions of Regularity - Gold may be delivered against a Gold
contract from any vault designated by the Exchange specifically for the storage
of Gold, and may not be delivered except from such vault. The following shall
constitute the requirements for regularity, and by accepting a Declaration of
Regularity the vault agrees to abide by these conditions:
(1) The vault must notify the Exchange promptly of any material change in
ownership or condition of its premises.
(2) The vault is required to submit a certified financial statement within 90
days of the firm's year-end. A letter of attestation must accompany all
financial statements signed by the Chief Financial Officer or if there is
none, a general partner or executive officer.
(3) Such vault shall be provided with standard equipment and appliances for the
convenient and safe storage of Gold and provide for proper security.
(4) The operator of such vault shall furnish to the Registrar all needed
information to enable the Exchange to keep a correct record and account of
all Gold received and delivered by the vault daily and of that remaining in
store at the close of each week.
(5) The operator of such vault shall accord every facility to the Exchange for
the examination of its books or records for the purpose of ascertaining the
stocks of Gold. The Exchange shall have the authority to employ experts to
determine the quantity and quality of Gold in said vault.
(6) No vault operator shall engage in unethical or inequitable practices, or
fail to comply with any laws, Federal or State, or Rules or Regulations
promulgated under those laws.
(7) The operator shall make such reports, keep such records, and permit such
vault visitation as the Board of Trade or the Commodity Futures Trading
Commission may prescribe, and shall comply with all applicable Rules and
Regulations. The vault must keep all such reports, books and records for a
period of five years from the date thereof.
(8) The operator of such vault must give such bonds to the Exchange as may be
required by the Exchange.
(9) The vault shall neither withdraw as a regular vault nor withdraw any regular
capacity except after a sixty (60) day notice to the Exchange or having
obtained the consent of the Exchange.
(10)The vault shall notify the Exchange at least sixty (60) days in advance of
any changes in its maximum storage rates, penalty for late storage payment
and handling charges.
(11)The Exchange may determine not to approve vaults for regularity or increases
in regular capacity of existing regular vaults, in its sole discretion,
regardless of whether such vaults meet the preceding requirements and
conditions. Some factors that the Exchange may, but is not required to,
consider in exercising its discretion may include, among others, whether
receipts issued by such vaults, if tendered in satisfaction of futures
contracts, might be expected to adversely affect the price discover function
of Gold futures contracts or impair the efficacy of futures trading in Gold,
or whether the currently approved regular capacity provides for an adequate
deliverable supply. (10/01/04)
m1584.01 Revocation of Regularity - Any regular vault may be declared by the
Exchange to be irregular at any time if it does not comply with the conditions
above set forth, or fails to carry out its prescribed duties. If the designation
of a vault as regular shall be revoked a notice shall be posted on the bulletin
board and on the Exchange website announcing such revocation and also the period
of time, if any, during which the receipts issued by such vault shall thereafter
be deliverable in satisfaction of futures contracts in Gold under the Rules and
Regulations.
By accepting a Declaration of Regularity the vault agrees, in the event of
revocation, expiration or withdrawal of regularity, to bear the expenses of the
transfer of Gold under bond to another regular vault satisfactory to the holders
of its vault receipts. (10/01/04)
m1586.01 Regular Vaults - (See Appendix m15B) (10/01/01)
================================================================================
Chapter 18
U.S. Treasury Bonds
================================================================================
Ch18 Trading Conditions................................................. 1802
1801.00 Authority................................................. 1802
1802.01 Application of Regulation................................. 1802
1804.01 Unit of Trading........................................... 1802
1805.01 Months Traded In.......................................... 1802
1806.01 Price Basis............................................... 1802
1806.01 Price Basis............................................... 1802
1807.01 Hours of Trading.......................................... 1802
1809.01 Last Day of Trading....................................... 1802
1809.02 Liquidation in the Last Seven Days of the Delivery Month.. 1802
1810.01 Margin Requirements....................................... 1802
1812.01 Position Limits and Reportable Positions.................. 1802
Ch18 Delivery Procedures................................................ 1803
1836.01 Standards................................................. 1803
1842.01 Deliveries on Futures Contracts........................... 1803
1842.02 Wire Failure.............................................. 1803
1846.01 Date of Delivery.......................................... 1803
1847.01 Delivery Notices.......................................... 1804
1848.01 Method of Delivery........................................ 1804
1849.00 Time of Delivery, Payment, Form of Delivery Notice........ 1804
1849.02 Buyer's Report of Eligibility to Receive Delivery......... 1804
1849.03 Seller's Invoice to Buyers................................ 1804
1849.04 Payment................................................... 1804
1849.05 Buyers Banking Notification............................... 1804
1850.00 Duties of Members......................................... 1804
1850.01 Failure to Deliver........................................ 1804
1851.01 Office Deliveries Prohibited.............................. 1804
1854.00 Failure to Accept Delivery................................ 1804
1854.01 Failure to Accept Delivery................................ 1804
Ch18 Regularity of Banks.............................................. 1805
1880.01 Banks..................................................... 1805
1801
================================================================================
Chapter 18
U.S. Treasury Bonds
================================================================================
Ch18 Trading Conditions
1801.00 Authority - (See Rule 1701.00) (10/01/94)
1802.01 Application of Regulations - Futures transactions in long term U.S.
Treasury bonds shall be subject to the general rules of the Association as far
as applicable and shall also be subject to the regulations contained in this
chapter, which are exclusively applicable to trading in long term U.S. Treasury
bonds. 3000 (09/01/00)
1804.01 Unit of Trading - The unit of trading shall be United States Treasury
bonds having a face value at maturity of one hundred thousand dollars ($100,000)
or multiples thereof. 3002 (10/01/94)
1805.01 Months Traded In - Trading in long-term U.S. Treasury bonds may be
scheduled in such months as determined by the Exchange. (03/01/00)
1806.01 Price Basis - Minimum price fluctuations shall be in multiples of one
thirty-second (1/32) point per 100 points ($31.25 per contract) except for
intermonth spreads, where minimum price fluctuations shall be in multiples of
one-fourth of one-thirty-second point per 100 points ($7.8125 per contract). Par
shall be on the basis of 100 points. Contracts shall not be made on any other
price basis. 3004 (02/01/01)
1807.01 Hours of Trading - The hours of trading for future delivery in U.S.
Treasury Bonds shall be determined by the Board. On the last day of the trading
in an expiring future, the closing time for such future shall be 12:00 noon,
subject to the provisions of the second paragraph of Rule 1007.00. The market
shall be opened and closed for all months simultaneously, or in such other
manner as the Regulatory Compliance Committee shall direct. 3007 (10/01/94)
1809.01 Last Day of Trading - No trades in long term U.S. Treasury bond
futures deliverable in the current month shall be made during the last seven
business days of that month and any contracts remaining open must be settled by
delivery or as provided in Regulation 1809.02 after trading in such contracts
has ceased. 3008 (10/01/94)
1809.02 Liquidation in the Last Seven Days of the Delivery Month - After trading
in contracts for future delivery in the current delivery month has ceased in
accordance with Regulation 1809.01 of this chapter, outstanding contracts may be
liquidated by the delivery of book-entry U.S. Treasury bonds (Regulation
1842.01) or by mutual agreement by means of a bona fide exchange of such current
futures for the actual long term U.S. Treasury bonds or comparable instruments,
or by mutual agreement by means of a bona fide exchnage of such current futures
for, or in connection with, a swap transaction (per Regulation 444.04). Such
exchange must, in any event, be made no later than the fifth business day
immediately preceding the last business day of the delivery month. 3009
(03/01/04)
1810.01 Margin Requirements - (See Regulation 431.03) (10/01/94)
1812.01 Position Limits and Reportable Positions - (See 425.01) (10/01/94)
Ch18 Delivery Procedures
1802
Ch18 Delivery Procedures
1836.01 Standards - The contract grade for delivery on futures contracts made
under these regulations shall be long term U.S. Treasury bonds which if callable
are not callable for at least 15 years or if not callable have a maturity of at
least 15 years. All bonds delivered against a contract must be of the same
issue. For settlement, the time to maturity (time to call if callable) of a
given issue is calculated in complete three month increments (i.e. 15 years and
5 months = 15 years and 1 quarter) from the first day of the delivery month. The
price at which a bond with this time to maturity (time to call if callable) and
with the same coupon rate as this issue will yield 6% according to bond tables
prepared by the Financial Publishing Co. of Boston, Mass., is multiplied times
the settlement price to arrive at the amount which the short invoices the long.
U.S. Treasury Bonds deliverable against futures contracts under these
regulations must have semi-annual coupon payments.
Interest accrued on the bonds shall be charged to the long by the short in
accordance with Department of the Treasury Circular 300, Subpart P.
New issues of long term U.S. Treasury bonds which satisfy the standards in this
regulation shall be added to the deliverable grade as they are issued. The Board
shall have the right to exclude any new issue from deliverable status or to
further limit outstanding issues from deliverable status. 3001 (03/01/00)
1842.01 Deliveries on Futures Contracts - Deliveries against long term U.S.
Treasury bond futures contracts shall be by book-entry transfer between accounts
of Clearing Members at qualified banks (Regulation 1880.01) in accordance with
Department of the Treasury Circular 300, Subpart O: Book-Entry Procedure.
Delivery must be made no later than the last business day of the month. Notice
of intention to deliver shall be given to the Clearing Services Provider by 8:00
p.m. (Chicago time), or by such other time designated by the Exchange, on the
second business day preceding delivery day. In the event the long Clearing
Member does not agree with the terms of the invoice received from the short
Clearing Member, the long Clearing Member must notify the short Clearing Member,
and the dispute must be settled by 9:30 a.m. (Chicago time) on delivery day, or
by such other time designated by the Exchange. The short Clearing Member must
have contract grade U.S. Treasury bonds in place at his bank in acceptable (to
his bank) delivery form no later than 10:00 a.m. (Chicago time), or by such
other time designated by the Exchange on delivery day. The short Clearing Member
must notify his bank (Regulation 1880.01) to transfer contract grade U.S.
Treasury bonds by book-entry to the long Clearing Member's account at the long
Clearing Member's bank on a delivery versus payment basis. That is, payment
shall not be made until the bonds are delivered. On delivery day, the long
Clearing Member must make funds available by 7:30 a.m. (Chicago time), or by
such other time designated by the Exchange and notify his bank (Regulation
1880.01) to accept contract grade U.S. Treasury bonds and to remit federal funds
to the short Clearing Member's account at the short Clearing Member's bank
(Regulation 1880.01) in payment for delivery of the bonds. Contract grade U.S.
Treasury bonds must be transferred and payment must be made before 1:00 p.m.
(Chicago time) on delivery day. All deliveries must be assigned by the Clearing
Services Provider. Where a futures commission merchant as a clearing member has
an interest both long and short for customers on its own books, it must tender
to the Clearing Services Provider such notices of intention to deliver as it
received from its customers who are short. 3011 (01/01/04)
1842.02 Wire Failure - In the event that delivery cannot be accomplished
because of a failure of the Federal Reserve wire or because of a failure of
either the long Clearing Member's bank or the short Clearing Member's bank
access to the Federal Reserve wire, delivery shall be made before 9:30 a.m. on
the next business day on which the Federal Reserve wire or bank access to it is
operable. Interest shall accrue to the long paid by the short beginning on the
day on which the bonds were to be originally delivered.
In the event of such failure, both the long and short must provide documented
evidence that the instructions were given to their respective banks in
accordance with Regulations 1842.01 and 1849.04 and that all other provisions of
Regulations 1842.01 and 1849.04 have been complied with. 3014 (10/01/94)
1846.01 Date of Delivery - Delivery of U.S. Treasury bonds may be made by the
short upon any
1803
Ch18 Delivery Procedures
permissible delivery day of the delivery month the short may select. Delivery of
U.S. Treasury bonds must be made no later th an the last business day of that
month. 3012 (10/01/94)
1847.01 Delivery Notices - (See Regulation 1047.01) (10/01/94)
1848.01 Method of Delivery - (See Regulation 1048.01) (10/01/94)
1849.00 Time of Delivery, Payment, Form of Delivery Notice - (See Rule
1049.00) (10/01/94)
1849.02 Buyer's Report of Eligibility to Receive Delivery - (See Regulation
1049.02) (10/01/94)
1849.03 Seller's Invoice to Buyers - Upon determining the buyers obligated to
accept deliveries tendered by issuers of delivery notices, the Clearing Services
Provider shall promptly furnish each issuer the names of the buyers obligated to
accept delivery from him and a description of each commodity tendered by him
which was assigned by the Clearing Services Provider to each such buyer.
Thereupon, sellers (issuers of delivery notices) shall prepare invoices
addressed to their assigned buyers, describing the documents to be delivered to
each such buyer. Such invoices shall show the amount which buyers must pay to
sellers in settlement of the actual deliveries, based on the delivery prices
established by the Clearing Services Provider, and adjusted for applicable
interest payments. Such invoices shall be delivered to the Clearing Services
Provider by 2:00 p.m., or by such other time designated by the Exchange, on the
day of intention except on the last intention day of the month, where such
invoices shall be delivered to the Clearing Services Provider by 3:00 p.m., or
by such other time designated by the Exchange. Upon receipt of such
invoices, the Clearing Services Provider shall promptly make them available to
buyers to whom they are addressed. (01/01/04)
1849.04 Payment - Payment shall be made in federal funds. The long obligated
to take delivery must take delivery and make payment before 1:00 p.m. on the day
of delivery except on banking holidays when delivery must be taken and payment
made before 9:30 a.m. the next banking business day. Adjustments for differences
between contract prices and delivery prices established by the Clearing House
shall be made with the Clearing House in accordance with its By-laws and
Resolutions. 3013 (10/01/94)
1849.05 Buyers Banking Notification - The long Clearing Member shall provide
the short Clearing Member by 4:00 p.m. (5:00 p.m. EST) on the day of intention,
one business day prior to delivery day, with a Banking Notification. The Banking
Notification form will include the following information: the identification
number and name of the long Clearing Member; the delivery date; the notification
number of the delivery assignment; the identification number and name of the
short Clearing Member making delivery; the quantity of the contract being
delivered; the long Clearing Member's bank, account number and specific Federal
Wire instructions for the transfer of U.S. securities. (10/01/94)
1850.00 Duties of Members - (See Rule 1050.00) (10/01/94)
1850.01 Failure to Deliver - (See Regulation 1050.01) (01/01/04)
1851.01 Office Deliveries Prohibited - (See Regulation 1051.01) (10/01/94)
1854.00 Failure to Accept Delivery - (See Rule 1054.00) (10/01/94)
1854.01 Failure to Accept Delivery - (See Regulation 1054.01) (01/01/04)
1804
Ch18 Regularity of Banks
1880.01 Banks - For purposes of these regulations relating to trading in long
term U.S. Treasury bonds, the word "Bank" (Regulation 1842.01) shall mean a U.S.
commercial bank (either Federal or State charter) that is a member of the
Federal Reserve System and with capital (capital, surplus and undivided
earnings) in excess of one hundred million dollars ($100,000,000). 3015
(10/01/94)
1805
===============================================================================
Chapter m18
CBOT mini-sized U.S. Treasury Bonds
===============================================================================
Chm18 Trading Conditions...........................................
m1801.01 Authority.........................................
m1802.01 Application of Regulations........................
m1803.01 Derivative Markets................................
m1804.01 Unit of Trading...................................
m1805.01 Months Traded In..................................
m1806.01 Price Basis.......................................
m1807.01 Hours of Trading..................................
m1809.01 Last Day of Trading...............................
m1809.02 Liquidation in the Last Seven Days of the
Delivery Month....................................
m1810.01 Margin Requirements...............................
m1812.01 Position Limits and Reportable Positions..........
Chm18 Delivery Procedures..........................................
m1836.01 Standards.........................................
m1842.01 Deliveries on Futures Contracts...................
m1842.02 Wire Failure......................................
m1846.01 Date of Delivery..................................
m1847.01 Delivery Notices..................................
m1848.01 Method of Delivery................................
m1849.00 Time of Delivery, Payment, Form of Delivery Notice
m1849.02 Buyer's Report of Eligibility to Receive Delivery.
m1849.03 Seller's Invoice to Buyers........................
m1849.04 Payment...........................................
m1849.05 Buyers Banking Notification.......................
m1850.01 Failure to Deliver................................
m1854.00 Failure to Accept Delivery........................
m1854.01 Failure to Accept Delivery........................
Chm18 Regularity of Banks..........................................
m1880.01 Banks.............................................
===============================================================================
Chapter m18
CBOT mini-sized U.S. Treasury Bonds
===============================================================================
Chm18 Trading Conditions
m1801.01 Authority - Trading in mini-sized long term U.S. Treasury bond futures
may be conducted under such terms and conditions as may be prescribed by
regulation. (10/01/01)
m1802.01 Application of Regulations - Futures transactions in mini-sized long
term U.S. Treasury bonds shall be subject to the general rules of the Exchange
as far as applicable and shall also be subject to the regulations contained in
this chapter, which are exclusively applicable to trading in mini-sized long
term U.S. Treasury bonds. (10/01/01)
m1803.01 Derivative Markets - Settlement prices shall be set in accordance with
this regulation consistent with the settlement prices of the primary market.
Contract settlement prices shall be set equal to the settlement prices of the
corresponding contracts of the primary market for such commodity. Where a
particular contract has opened on the Exchange for which the primary market has
established no settlement price, the Clearing Services Provider shall set a
settlement price consistent with the spread relationships of other contracts;
provided, however, that if the contract is not subject to daily price
fluctuation limits then the settlement price shall be set at the fair market
value of the contract at the close of trading. (01/01/04)
m1804.01 Unit of Trading - The unit of trading shall be United States Treasury
bonds having a face value at maturity of fifty thousand dollars ($50,000) or
multiples thereof. (10/01/01)
m1805.01 Months Traded In - (See Regulation 1805.01) (10/01/01)
m1806.01 Price Basis - Minimum price fluctuations shall be in multiples of one
thirty-second (1/32) point per 100 points ($15.625 per contract). Par shall be
on the basis of 100 points. Contracts shall not be made on any other price
basis. (10/01/01)
m1807.01 Hours of Trading - The hours of trading for future delivery in mini-
sized U.S. Treasury Bonds shall be determined by the Board. On the last day of
trading in an expiring future, the closing time for such future shall be 12:00
noon, subject to the provisions of Regulation 9B.02. (11/01/01)
m1809.01 Last Day of Trading - (See Regulation 1809.01) (10/01/01)
m1809.02 Liquidation in the Last Seven Days of the Delivery Month - (See
Regulation 1809.02) (10/01/01)
m1810.01 Margin Requirements - (See Regulation 431.03) (10/01/01)
m1812.01 Position Limits and Reportable Positions - (See 425.01 and 425.09)
(10/01/01)
Chm18 Delivery Procedures
m1836.01 Standards - (See Regulation 1836.01) (10/01/01)
m1842.01 Deliveries on Futures Contracts - (See Regulation 1842.01) (10/01/01)
m1842.02 Wire Failure - (See Regulation 1842.02) (10/01/01)
m1846.01 Date of Delivery -(See Regulation 1846.01) (10/01/01)
m1847.01 Delivery Notices - (See Regulation 1047.01) (10/01/01)
m1848.01 Method of Delivery - (See Regulation 1048.01) (10/01/01)
m1849.00 Time of Delivery, Payment, Form of Delivery Notice - (See Rule
1049.00) (10/01/01)
m1849.02 Buyer's Report of Eligibility to Receive Delivery - (See Regulation
1049.02) (10/01/01)
m1849.03 Seller's Invoice to Buyers - (See Regulation 1849.03) (10/01/01)
m1849.04 Payment - (See Regulation 1849.04) (10/01/01)
m1849.05 Buyers Banking Notification - (See Regulation 1849.05) (10/01/01)
m1850.01 Failure to Deliver - (See Regulation 1050.01) (01/01/04)
m1854.00 Failure to Accept Delivery - (See Rule 1054.00) (10/01/01)
m1854.01 Failure to Accept Delivery - (See Regulation 1054.01) (01/01/04)
Chm18 Regularity of Banks
m1880.01 Banks - (See Regulation 1880.01) (10/01/01)
==============================================================================
Chapter 19
10-Year Municipal Note Index Futures
==============================================================================
Ch19 Trading Conditions ....................................... 1902
1901.01 Authority ........................................ 1902
1902.01 Application of Regulation ........................ 1902
1904.01 Unit of Trading .................................. 1902
1905.01 Months Traded .................................... 1902
1906.01 Price Basis ...................................... 1902
1907.01 Hours of Trading ................................. 1902
1909.01 Last Day of Trading .............................. 1902
1909.02 Liquidation During the Delivery Month ............ 1902
1910.01 Margin Requirements .............................. 1902
1912.01 Position Limits and Reportable Positions ......... 1902
Ch19 Delivery Procedures ...................................... 1903
1936.01 Standards ........................................ 1903
1942.01 Delivery on Futures Contracts .................... 1903
1947.01 Payment .......................................... 1903
1950.01 Index Composition ................................ 1903
1901
Ch19 Trading Conditions
================================================================================
Chapter 19
10-Year Municipal Note Index Futures
================================================================================
Ch19 Trading Conditions
1901.01 Authority - (See Rule 1701.00) (11/01/02)
1902.01 Application of Regulations - Futures transactions in CBOT(R) 10-Year
Municipal Note Index (the "Index") contracts shall be subject to the general
rules of the Exchange as far as applicable and shall also be subject to the
regulations contained in this chapter, which are exclusively applicable to
trading in Index futures contracts. (11/01/02)
1904.01 Unit of Trading - The unit of trading shall be $1,000.00 times the
Index. (11/01/02)
1905.01 Months Traded - Trading in Index futures contracts may be scheduled in
such months as determined by the Exchange. (11/01/02)
1906.01 Price Basis - The price of Index futures contracts shall be quoted in
points. One point equals $1,000.00. The minimum price fluctuation shall be 1/32
of one point or thirty-one dollars and twenty-five cents ($31.25) per contract.
Contracts shall not be made on any other price basis. (11/01/02)
1907.01 Hours of Trading - The hours of trading for future delivery in Index
futures contracts shall be determined by the Board. On the last day of trading
in an expiring futures contract, the closing time for such future shall be 2:00
p.m. Chicago time (3:00 p.m. New York time) subject to the otherwise applicable
provisions of the second paragraph of Rule 1007.00. The market shall be opened
and closed for all months simultaneously or in such other manner as the Exchange
shall direct. (11/01/02)
1909.01 Last Day of Trading - No trades in Index futures contracts deliverable
in the current delivery month shall be made during the last seven business days
of that month. If on the last day of trading FT Interactive Data Corporation
does not publish a closing Index value, the last day of trading shall be the
next business day for which a closing Index value is published. (11/01/02)
1909.02 Liquidation During the Delivery Month - After trading in contracts for
future delivery in the current delivery month has ceased, in accordance with
Regulation 1909.01 of this chapter, outstanding contracts for such delivery
shall be liquidated by cash settlement as prescribed in Regulation 1942.01.
(11/01/02)
1910.01 Margin Requirements - (See Regulation 431.03). (11/01/02)
1912.01 Position Limits and Reportable Positions - (See Regulation 425.01).
(11/01/02)
1902
Ch19 Delivery Procedures
1936.01 Standards - The contract grade shall be $1,000.00 times the closing
value of the Index on the last day of trading. The Index shall be composed and
determined by the Exchange in accordance with the criteria set forth in
Regulation 1950.01. The closing value of the Index shall be determined by FT
Interactive Data Corporation. (11/01/02)
1942.01 Delivery on Futures Contracts - Delivery against Index futures contracts
shall be made through the Clearing Services Provider. Delivery under these
regulations shall be accomplished by cash settlement as hereinafter provided.
After trading ceases on the last day of trading, the Clearing Services Provider
shall advise clearing members holding open positions in current month Index
futures contracts of the closing value of the Index on the last day of trading.
Clearing members shall make and receive payment through the Clearing Services
Provider in accordance with normal variation settlement procedures. The
settlement price on the last day of trading is equal to $1,000.00 times the
closing value of the Index on the last day of trading.
The final settlement value of the Index on the last day of trading shall be
determined as follows:
Final Settlement Value = 100 * [5/r + (1-5/r) *(1 + r/200)/-20/]
where r represents the simple average yield-to-worst of the component bonds in
the Index for the last day of trading, expressed in percent terms. For example,
if the simple average yield-to-worst for the last day of trading is five and one
quarter percent, then r is equal to 5.25.
The contract expiration price shall be the final settlement value, so
determined, rounded to the nearest one thirty-second of a point.
Example: Suppose the simple average yield-to-worst on the last day of trading is
5.50. The final settlement value will be 96.19318. To render this in terms of
price point and thirty-seconds of price points, note that it is between
99-7/32nds and 99-6/32nds (where each price point equals $1,000.00):
99-7/32nds = 96.21875
Final Settlement Value = 96.19318
99-6/32nds = 96.18750
The final settlement value is nearer to 99-6/32nds. Thus, the contract
expiration price is obtained by rounding down to 99-6/32nds.
In the event that the final settlement value is at the exact midpoint between
any two adjacent thirty-seconds of a price point, the contract expiration price
will be obtained by rounding up to the nearest thirty-second of a point.
On the last day of trading, open contracts will be marked to market based on the
closing futures price. A final mark to market will be made on the day the
contract expiration price is determined. (12/01/03)
1947.01 Payment - (See Regulation 1049.04) (11/01/02)
1950.01 Index Composition - The Index shall be constructed by the Exchange in
accordance with the following criteria:
(a) General Index Composition-The Index, at all times, shall be composed of no
fewer than 100 but no more than 250 municipal bonds that are generally
exempt from federal income taxation, including those generally exempt
issues whose interest payments may be subject to an alternative minimum
tax. The Exchange, in its discretion, may include bonds which meet the
following criteria:
1. Size - Each bond shall have a principal value that is equal to or
greater than $50 million and shall be a component tranche of a
municipal issuance that has a deal size that is equal to or greater
than $200 million.
2. Rating - Each bond shall carry an insured or underlying trading of AAA
by Standard and Poor's Corporation (S&P) and Aaa by Moody's Investors
Service (MIS) upon initial inclusion in the Index. Bonds that fall
below an insured or underlying rating of A- by S&P or A3 by MIS or
both shall be deleted from the Index immediately.
3. Maturity - Each bond shall have a remaining maturity that is not less
than 10 years or more than 40 years from the first calendar day of the
corresponding futures contract month.
1903
Ch19 Delivery Procedures
4. Call Provisions - Each bond may or may not be callable. If callable,
the first call date shall be not less than 7 years from the first
calendar day of the corresponding futures contract month.
5. Par Issue - Each bond must have a price that is equal to or greater
than 90 at its issuance date to be eligible for inclusion in the
Index.
6. Private Placements - A bond that is issued as a private placement is
not eligible for inclusion in the Index.
7. Coupon - Each bond shall pay semi-annual interest at a fixed coupon
rate that is not less than three percent per annum or greater than
nine percent per annum.
8. Issuer Limit - No more than five percent of the number of bonds in the
Index shall be from the same issuer. A bond shall be deemed to have
been issued by the same issuer if such bond has the same nominal and
generic security, that is, the same ultimate source of payment for
debt service, of another bond in the Index. A first or second lien
bond of the same generic security shall be defined as having been
issued by the same issuer.
9. State Limit - No more than fifteen percent of the number of bonds in
the Index shall be from within the jurisdictions of the same state,
Puerto Rico. or other territorial jurisdictions.
10. Insurance Limit - Each bond may or may not be insured. No more than 40
percent of the number of bonds in the Index shall be insured by Ambac
Indemnity Corporation, Financial Guaranty Insurance Corporation,
Financial Security Assurance, or MBIA Insurance Corporation.
(b) Index Pricing - FI Interactive Data Corporation shall compute the closing
value of the Index each day the municipal bond cash market is open using
the following procedures:
1. Component Bond Pricing - FT Interactive Data Corporation shall price
each component bond in the Index daily. The price of each component
bond shall be defined as FT Interactive Data Corporation's fair market
value estimation.
With the exception of the last trading day in the current contract
expiration, FT Interactive Data Corporation shall price each component
bond:
- at 3:00 p.m. Chicago time (4:00 p.m. New York time) when the
underlying cash market is open for normal trading hours and is
therefore not subject to an early scheduled halt in cash market
trading, or
- at 1:00 p.m. Chicago time (2:00 p.m. New York time) when the
underlying cash market is subject to an early scheduled halt in
cash market trading.
On the last trading day in the current contract expiration, however,
FT Interactive Data Corporation shall price each component bond at
2:00 p.m. Chicago time (3:00 p.m. New York time).
If the Exchange determines in advance that circumstances in the cash
market will occasion either an early halt to cash market trading or an
otherwise unscheduled holiday which would impede FT Interactive Data
Corporation from pricing the component bonds of the Index, the
Exchange may suspend or reschedule the pricing for that day provided
that such determination is published before the start of trading on
the day in question and provided that such day is not the last day of
trading in a contract month.
2. Index Computation - FT Interactive Data Corporation shall compute the
daily Index value. FT Interactive Data Corporation shall first
determine the price of each component bond in the Index. FT
Interactive Data Corporation shall then calculate the simple average
yield-to-worst of the component bonds by summing the individual yields
of the component bonds and dividing by the number of component bonds.
The simple average yield-to-worst of the component bonds in the Index
shall be rounded to the nearest one-tenth of one basis point and
rounded up in the case of a tie. This simple average yield-to-worst
will be entered into the pricing algorithm in Regulation 1942.01 to
calculate the daily Index value. The daily
1904
Ch19 Delivery Procedures
Index value shall be rounded to the nearest one thirty-second of a
full point. If the Index value is exactly at the midpoint between two
thirty-seconds of a point, the Index value shall be rounded up to the
nearest one thirty-second.
With the exception of the last trading day in the current contract
expiration, FT Interactive Data Corporation shall compute the daily
Index value:
- at 3:00 p.m. Chicago time (4:00 p.m. New York time) when the
underlying cash market is open for normal trading hours and is
therefore not subject to an early scheduled halt in cash market
trading; or
- at 1:00 p.m. Chicago time (2:00 p.m. New York time) when the
underlying cash market is subject to an early scheduled halt in
cash market trading.
(c) Index Revisions - The Exchange shall revise the Index after 3:00 p.m.
Chicago time (4:00 p.m. New York time) on the first business day in the
February, May, August and November quarterly cycle. For example, the Index
revision for the March futures contract expiration will occur on the first
business day in November, the index revision for the June futures contract
expiration will occur on the first business day in February, the index
revision for the September futures contract expiration will occur on the
first business day in May, and the index revision for the December futures
contract expiration will occur on the first business day in August. If such
day is not an Exchange business day, or is an Exchange business day that is
subject to an early halt in cash market trading, the Exchange shall revise
the Index shall after 3:00 p.m. Chicago time (4:00 p.m. New York time) on
the immediately preceding Exchange business day that is not subject to an
early halt in cash market trading. The revised Index will be implemented on
the next business day following an Index revision.
The Exchange shall add bonds to the Index as prescribed in Regulation
1950.01(a). The Exchange shall delete bonds from the Index as prescribed in
Regulation 1950.01(d).
(d) Bonds no longer meeting all the original selection criteria shall be
deleted from the Index.
At Index revisions, no additions to, or deletions from, the Index will be
implemented that would have the effect of violating global Index rules with
respect to Issuer, State, or Insurance coverage limits.
In the event that more than 250 bonds meet the eligibility criteria for
Index inclusion, as stipulated in Regulation 1950.01(a), the Exchange will
increase in increments of $1 million the required $50 million principal
value for bond eligibility in order to construct an Index that shall be
composed of as many bonds as possible without exceeding the 250 bond limit.
The Exchange has final authority over Index composition. (11/01/03)
1905
================================================================================
Chapter 21
30-Day Fed Fund Futures
================================================================================
Ch21 Trading Conditions................................................. 2102
2101.01 Authority................................................. 2102
2102.01 Application of Regulation................................. 2102
2104.01 Unit of Trading........................................... 2102
2105.01 Months Traded In.......................................... 2102
2106.01 Price Basis............................................... 2102
2107.01 Hours of Trading.......................................... 2102
2109.01 Last Day of Trading....................................... 2102
2109.02 Liquidation During the Delivery Month..................... 2102
2110.01 Margin Requirements....................................... 2102
2112.01 Position Limits and Reportable Positions.................. 2102
2113.01 Strip Transactions........................................ 2102
Ch21 Delivery Procedures................................................ 2104
2136.01 Standards................................................. 2104
2142.01 Delivery on Futures Contracts............................. 2104
2147.02 Payment................................................... 2104
2101
================================================================================
Chapter 21
30-Day Fed Fund Futures
================================================================================
Ch21 Trading Conditions
2101.01 Authority - (See Rule 1701.00) (10/01/94)
2102.01 Application of Regulation - Futures transactions in 30-Day Fed Fund
futures contracts shall be subject to the general rules of the Association as
far as applicable and shall also be subject to the regulations contained in this
chapter, which are exclusively applicable to trading in 30-Day Fed Fund futures.
(10/01/94)
2104.01 Unit of Trading - The unit of trading shall be interest on Fed funds
having face value of $5,000,000 or multiples thereof for one month calculated on
a 30-day basis at a rate equal to the average overnight Fed funds rate for the
contract month. (10/01/94)
2105.01 Months Traded In - Trading in 30-Day Fed Fund futures may be scheduled
in such months as determined by the Exchange. (07/01/03)
2106.01 Price Basis - Prices will be quoted on an index basis, i.e., 100 minus
the monthly average overnight Fed funds rate (e.g., a rate of 6.50% is quoted at
93.50). Minimum price fluctuations shall be in increments of one-half of one-
hundredth of one percent of five million dollars on a 30 day basis ($20.835 per
one-half basis point), rounded up to the nearest cent. (07/01/99)
2107.01 Hours of Trading - The hours of trading for future delivery in 30-Day
Fed Fund futures shall be as determined by the Board. On the last day of trading
in an expiring future, the closing time for such future shall be 2:00 p.m.
Chicago time subject to the otherwise applicable provisions of the second
paragraph of Rule 1007.00. The market shall be opened and closed for all months
simultaneously or in such other manner as the Regulatory Compliance Committee
shall direct. (10/01/94)
2109.01 Last Day of Trading - The last day of trading shall be the last
business day of the delivery month. (10/01/94)
2109.02 Liquidation During the Delivery Month - After trading in contracts for
future delivery in the current delivery month has ceased, in accordance with
Regulation 2109.01 of this chapter, outstanding contracts for such delivery
shall be liquidated by cash settlement as prescribed in Regulation 2142.01.
(10/01/94)
2110.01 Margin Requirements - (See Regulation 431.03). (10/01/94)
2112.01 Position Limits and Reportable Positions - (See Regulation 425.01).
(10/01/94)
2113.01 Strip Transactions - A 30-Day Fed Fund futures strip transaction
involving the simultaneous purchase or sale of an equal amount of futures
contract months at a differential to the previous settlement prices is permitted
on this Exchange provided:
1. that each month of the strip is for the same account. Provided that,
when an order has been executed in the wrong month, and the erroneous
transaction has been placed in the broker's or firm's error account,
the error may be corrected by a spread transaction in which one leg of
the spread offsets the position in the error account and the other leg
is the correct execution of the order. Provided further that the
liability of the floor broker or FCM shall be determined in accordance
with Regulation 350.04.
2. that all months of the strip are priced at prices within the daily
trading limits specified in Regulation 1008.01.
3. that the strip is offered by public outcry in the pit assigned to 30-
Day Fed Fund futures.
2102
Ch21 Trading Procedures
4. that the transaction shall be reported, recorded and publicized as a
strip.
5. that when such transactions are executed simultaneously, the executing
member on each side of the transaction shall designate each part of the
trade as a strip on his cards or order by an appropriate word or symbol
clearly identifying each part of such transactions.
Brokers may not couple separate orders and execute them as a strip, nor may a
broker take one part of a strip for his own account and give the other part to a
customer on an order. (10/01/94)
2103
Ch21 Delivery Procedures
2136.01 Standards - The contract grade shall be 100 minus the average daily Fed
funds overnight rate for the delivery month. The average daily Fed funds
overnight rate is a simple average of the daily Fed funds overnight rates as
determined by the Federal Reserve Bank of New York. This simple average will be
rounded to the nearest tenth of a basis point and rounded up on the case of a
tie.
For days for which the Federal Reserve Bank of New York does not compute a rate
(e.g. weekends and holidays), the rate shall be the rate determined on the last
business day for which a rate was determined. (08/01/01)
2142.01 Delivery on Futures Contracts - Delivery against 30-Day Fed Fund futures
contracts shall be made by cash settlement through the Clearing Services
Provider following normal variation margin procedures. The final settlement
price will be calculated on the business day that the Federal Reserve Bank of
New York releases the overnight Fed funds rate for the last day of trading. The
final settlement price shall be 100 minus the average daily Fed funds overnight
rate for the delivery month. On the last day of trading open contracts will be
marked to market based on the closing futures price. A final mark to market will
be made on the day the final settlement price is determined. (12/01/03)
2147.02 Payment - (See 1049.04) (10/01/94)
Chapter 22
CBOT(R) 30-DAY FEDERAL FUNDS FUTURES OPTIONS
[Download Table]
Ch22 Trading Conditions ....................................................... 2202
2201.00 Authority ...................................................... 2202
2201.01 Application of Regulations ..................................... 2202
2202.01 Nature of CBOT 30-Day Federal Funds Futures Put Options ........ 2202
2202.02 Nature of CBOT 30-Day Federal Funds Futures Call Options ....... 2202
2203.01 Trading Unit ................................................... 2202
2204.01 Strike Prices .................................................. 2202
2205.01 Payment of Option Premium ...................................... 2203
2206.01 Option Premium Basis ........................................... 2203
2207.01 Exercise of Option ............................................. 2203
2207.02 Automatic Exercise ............................................. 2203
2207.03 Corrections to Option Exercise ................................. 2203
2208.01 Expiration of Option ........................................... 2203
2209.01 Months Traded In ............................................... 2203
2210.01 Trading Hours .................................................. 2203
2211.01 Position Limits and Reportable Positions ....................... 2203
2212.01 Margin Requirements ............................................ 2203
2213.01 Last Day of Trading ............................................ 2203
2201
Ch22 Trading Conditions
Chapter 22
CBOT(R) 30-DAY FEDERAL FUNDS FUTURES OPTIONS
Ch22 TRADING CONDITIONS
2201.01 AUTHORITY - Trading in put and call options on CBOT 30-Day Federal
Funds futures contracts may be conducted under such terms and conditions as may
be prescribed by regulation. (04/01/03)
2201.01 APPLICATION OF REGULATIONS - Transactions in put and call options on
CBOT 30-Day Federal Funds futures contracts shall be subject to the general
rules of the Exchange as far as applicable and shall also be subject to the
regulations contained in this chapter which are exclusively applicable to
trading in put and call options on CBOT 30-Day Federal Funds futures contracts
(See Rule 490.00). Options on CBOT 30-Day Federal Funds futures contracts are
listed for trading by the Exchange pursuant to Commodity Futures Trading
Commission exchange certification procedures. (04/01/03)
2202.01 NATURE OF CBOT 30-DAY FEDERAL FUNDS FUTURES PUT OPTIONS - The buyer
of one (1) CBOT 30-Day Federal Funds put option may exercise his option at any
time prior to expiration (subject to Regulation 2207.01), to assume a short
position in one (1) CBOT 30-Day Federal Funds futures contract of a specified
contract month at a strike price set at the time the option was purchased. The
seller of one (1) CBOT 30-Day Federal Funds futures put option incurs the
obligation of assuming a long position in one (1) CBOT 30-Day Federal Funds
futures contract of a specified contract month at a striking price set at the
time the option was sold, upon exercise by a put option buyer. (04/01/03)
2202.02 NATURE OF CBOT 30-DAY FEDERAL FUNDS FUTURES CALL OPTIONS - The buyer
of one (1) CBOT 30-Day Federal Funds futures call option may exercise his option
at any time prior to expiration (subject to Regulation 2207.01), to assume a
long position in one (1) CBOT 30-Day Federal Funds futures contract of a
specified contract month at a strike price set at the time the option was
purchased. The seller of one (1) CBOT 30-Day Federal Funds futures call option
incurs the obligation of assuming a short position in one (1) CBOT 30-Day
Federal Funds futures contract of a specified contract month at a striking price
set at the time the option was sold, upon exercise by a call option buyer.
(04/01/03)
2203.01 TRADING UNIT - One (1) CBOT 30-Day Federal Funds futures contract of
a specified contract month on the Board of Trade of the City of Chicago, Inc.
(04/01/03)
2204.01 STRIKE PRICES - Trading shall be conducted for put and call options
with strike prices in integral multiples of six and one-quarter basis points
(0.0625) per CBOT 30-Day Federal Funds futures contract and in integral
multiples of twelve and one-half basis points (0.1250) per CBOT 30-Day Federal
Funds futures contract as follows:
A. At the commencement of trading for such option contracts, the following
strike prices in integral multiples of six and one-quarter basis points
shall be listed: one with a strike price closest to the previous day's
settlement price on the underlying CBOT 30-Day Federal Funds futures
contract and the next ten (10) consecutive higher and the next ten (10)
consecutive lower strike prices closest to the previous day's settlement
price. If a previous day's settlement price is midway between two strike
prices, the closest price shall be the larger of the two. Over time, new
striking prices will be added to ensure that at least ten 6-1/4 basis point
striking prices always exist above and below the previous day's settlement
price in the underlying futures.
B. At the commencement of trading for such option contracts, the following
strike prices in integral multiples of twelve and one-half basis points
shall be listed: the next five (5) consecutive higher and the next five (5)
consecutive lower strike prices above and below the strike price band as
stipulated in Regulation 2204.01A. Over time, new striking prices will be
added to ensure that at least five 12-1/2 basis point striking prices
always exist above and below the strike price band as
2202
Ch22 Trading Conditions
stipulated in Regulation 2204.01A.
C. When a new strike price is added for an option contract month, the same
strike price will be added to all option contract months for which that
strike price is not already listed. All new strike prices will be added
prior to the opening of trading on the following business day. The Exchange
may modify the procedure for the introduction of strike prices as it deems
appropriate in order to respond to market conditions. (05/01/03)
2205.01 PAYMENT OF OPTION PREMIUM - The option premium must be paid in full
by each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (12/01/03)
2206.01 OPTION PREMIUM BASIS - The premium for CBOT 30-Day Federal Funds
futures options shall be in multiples of one quarter of one basis point or ten
dollars and forty-one and three-quarters cents ($10.4175) per quarter basis
point per contract. One full basis point shall equal forty-one dollars and
sixty-seven cents ($41.67) per contract.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $10.00 in $1.00 increments per option contract.
(05/01/03)
2207.01 EXERCISE OF OPTION - The buyer of a CBOT 30-Day Federal Funds
futures option may exercise the option on any business day up to and including
the day such option expires by giving notice of exercise to the Clearing
Services Provider by 6:00 p.m. Chicago time, or by such other time designated by
the Exchange, on such day.
In-the-money options** that have not been liquidated or exercised on the last
day of trading in such option shall be in the absence of contrary instructions
delivered to the Clearing Services Provider by 6:00 p.m. Chicago time, or by
such other time designated by the Exchanges, on the next business day
following the last day of trading by the clearing member representing the option
buyer.
**An option is in-the-money if the settlement price of the underlying futures
contract is less in the case of a put, or greater in the case of a call, than
the exercise price of the option. (12/01/03)
2207.02 AUTOMATIC EXERCISE - Notwithstanding the provisions of Regulation
2207.01 all in-the-money options shall be automatically exercised after 6:00
p.m. on the business day following the last day of trading, or such time
designated by the Exchange, unless notice to cancel automatic exercise is given
to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m. on the business day following the last day of trading, or
by such other time designated by the Exchange. (12/01/03)
2207.03 CORRECTIONS TO OPTION EXERCISE - Corrections to option exercises,
including automatic exercises, may be accepted by the Clearing Services Provider
after the 6:00 p.m. deadline and up to the beginning of final option expiration
processing provided that such corrections are necessary due to: (1) a bona fide
clerical error, (2) an unreconciled Exchange option transaction(s), or (3) an
extraordinary circumstance where the clearing firm and customer are unable to
communicate final option exercise instructions prior to the deadline. The
decision whether a correction is acceptable will be made by the President of the
Clearing Services Provider, or the President's designee, and such decision will
be final. (12/01/03)
2208.01 EXPIRATION OF OPTION - Unexercised CBOT 30-Day Federal Funds futures
options shall expire at 7:00 p.m. Chicago time on the next business day after
the termination of trading (See Regulation 2213.01). (04/01/03)
2209.01 MONTHS TRADED IN - Trading CBOT 30-Day Federal Funds futures options
may be scheduled in such months as determined by the Exchange. (04/01/03)
2210.01 TRADING HOURS - The hours of trading for options on CBOT 30-Day
Federal Funds futures shall be determined by the Board. Trading in an expiring
option contract shall cease at 2:00 p.m. Chicago time on the last trading day of
said option contract. CBOT 30-Day Federal Funds options shall be opened and
closed for all months and strike prices simultaneously or in such a manner as
the Regulatory Compliance Committee shall direct. (04/01/03)
2211.01 POSITION LIMITS AND REPORTABLE POSITIONS - (See Regulation 425.01)
(04/01/03)
2212.01 MARGIN REQUIREMENTS - (See Regulations 431.05, 431.06) (04/01/03)
2213.01 LAST DAY OF TRADING - Trading in an expiring option contract shall
terminate at the same time and date as the underlying futures contract, that is,
at 2:00 p.m. Chicago time on the last business day of the underlying contract
month. (04/01/03)
2203
================================================================================
Chapter 23
Short Term U.S. T-Notes (2-Year)
================================================================================
Ch23 Trading Conditions................................................. 2302
2301.00 Authority................................................. 2302
2302.01 Application of Regulation................................. 2302
2303.01 Emergencies, Acts of God, Acts of Government.............. 2302
2304.01 Unit of Trading........................................... 2302
2305.01 Months Traded In.......................................... 2302
2306.01 Price Basis............................................... 2302
2307.01 Hours of Trading.......................................... 2302
2309.01 Last Day of Trading....................................... 2303
2309.02 Liquidation after Trading has Ceased...................... 2303
Ch23 Delivery Procedures................................................ 2304
2336.01 Standards................................................. 2304
2346.01 Date of Delivery.......................................... 2304
2347.01 Delivery Notices.......................................... 2305
2348.01 Method of Delivery........................................ 2305
2349.01 Time of Delivery, Payment, Form of Delivery Notice........ 2305
2349.02 Buyer's Report of Eligibility to Receive Delivery......... 2305
2349.03 Seller's Invoice to Buyers................................ 2305
2349.04 Payment................................................... 2305
2349.05 Buyers Banking Notification............................... 2305
2350.00 Duties of Members......................................... 2305
2350.01 Office Deliveries Prohibited.............................. 2305
2350.02 Failure to Deliver ....................................... 2305
2354.00 Failure to Accept Delivery................................ 2305
2354.01 Failure to Accept Delivery ............................... 2305
2380.01 Banks..................................................... 2305
2301
Ch 23 Trading Conditions
================================================================================
Chapter 23
Short Term U.S. T-Notes (2-Year)
================================================================================
Ch23 Trading Conditions
2301.00 Authority - (See Rule 1701.00) (10/01/94)
2302.01 Application of Regulation - Futures transactions in short term U.S.
Treasury Notes shall be subject to the general rules of the Association as far
as applicable and shall also be subject to the regulations contained in this
chapter, which are exclusively applicable to trading in short term U.S. Treasury
Notes.
For the purpose of this chapter, the trading day begins with the commencement of
trading on Project A at 2:15 p.m. and ends with the close of trading of regular
daytime trading. (10/01/98)
2303.01 Emergencies, Acts of God, Acts of Government - If the delivery or
acceptance or any precondition or requirement of either, is prevented by strike,
fire, accident, act of government, act of God or other emergency, the seller or
buyer shall immediately notify the Chairman. If the Chairman determines that
emergency action may be necessary, he shall call a special meeting of the Board
and arrange for the presentation of evidence respecting the emergency condition.
If the Board determines that an emergency exists, it shall take such action
under Rule 180.00 as it deems necessary under the circumstances and its decision
shall be binding upon all parties to the contract. For example, and without
limiting the Board's power, it may extend delivery dates and designate
alternative delivery points in the event of conditions interfering with the
normal operations of approved facilities.
In the event the Board determines that there exists a shortage of deliverable
U.S. Treasury Notes, it may, upon a two-thirds vote under Rule 180.00, take such
action as may in the Board's sole discretion appear necessary to prevent,
correct or alleviate the condition. Without limiting the foregoing or the
authority of the Board under Rule 180.00, the Board may:
(1) designate as deliverable, U.S. Treasury Bonds or U.S. Treasury Notes
otherwise meeting the specifications and requirements stated in this
chapter;
(2) designate as deliverable one or more issues of U.S. Treasury Notes and/or
U.S. Treasury Bonds having maturities shorter than one year, nine months or
longer than two years and otherwise meeting the specifications and
requirements stated in this chapter; and/or
(3) determine a cash settlement based on the current cash value of a 6% coupon
rate, one year nine months to two years U.S. Treasury Note, as determined
by using the current market yield curve for U.S. Treasury securities on the
last day of trading. (03/01/00)
2304.01 Unit of Trading - The unit of trading shall be United States Treasury
Notes having a face value at maturity of two hundred thousand dollars ($200,000)
or multiples thereof. (10/01/94)
2305.01 Months Traded In - Trading in Short-Term U.S. Treasury Notes futures
may be scheduled in such months as determined by the Exchange. (03/01/00)
2306.01 Price Basis - Minimum price fluctuations shall be in multiples of one-
quarter of one thirty-second (1/32) point per 100 points ($15.625 rounded up to
the nearest 1 cent per contract). Par shall be on the basis of 100 points.
Contracts shall not be made on any other price basis. (10/01/94)
2302
Ch 23 Trading Conditions
+2307.01 Hours of Trading - The hours of trading for future delivery in short
term U.S. Treasury Notes shall be determined by the Board. On the last day of
trading in an expiring future, the closing time for such future shall be 12:00
noon, subject to the provisions of the second paragraph of Rule 1007.00. The
market shall be opened and closed for all months simultaneously, or in such
other manner as the Regulatory Compliance Committee shall direct. (10/01/94)
2309.01 Last Day of Trading - No trades in short term U.S. Treasury Note futures
deliverable in the current month shall be made following the last business day
of the calendar month and any contracts remaining open must be settled by
delivery or as provided in Regulation 2309.02 after trading in such contract has
ceased. (05/01/04)
2309.02 Liquidation after Trading has Ceased - After trading in contacts for
future delivery in the current delivery month has ceased in accordance with
Regulation 2309.01 of this chapter, outstanding contracts may be liquidated by
the delivery of book-entry U.S. Treasury Notes (Regulation 2342.01) or by mutual
agreement by means of a bona fide exchange of such current futures for actual
U.S. Treasury Notes or comparable instruments, or by mutual agreement by means
of a bona fide exchange of such current futures for, or in connection with, a
swap transaction (per Regulation 444.04). Such exchange must, in any event be
made no later than 12:00 p.m. (Chicago time) on the second business day
immediately preceding the last business day of the delivery month as defined in
Regulation 2346.01. (03/01/04)
2303
Ch23 Delivery Procedures
Ch23 Delivery Procedures
2336.01 Standards - The contract grade for delivery on futures contracts made
under these regulations shall be U.S. Treasury Notes which have an original
maturity no greater than five years three months and remaining maturity not less
than one year, nine months and not more than two years as defined below. All
notes delivered against a contract must be of the same issue. For settlement or
for determining remaining maturity for delivery eligibility, the time to
maturity of a given issue is calculated in complete one month increments (i.e. 1
year, 10 months, 17 days is taken to be 1 year, 10 months) from the first day of
the delivery month. The price at which a note with this time to maturity and
with the same coupon rate as this issue will yield 6%, according to bond tables
prepared by the Financial Publishing Co. of Boston, Mass., is multiplied by the
settlement price to arrive at the amount at which the short invoices the long.
Interest accrued on the notes shall be charged to the long by the short in
accordance with Department of the Treasury Circular 300, Subpart P.
New issues of U.S. Treasury Notes which satisfy the standards in this regulation
shall be added to the deliverable grade as they are issued. If during the
auction of a note which will meet the standards of this chapter the Treasury re-
opens an existing issue, thus rendering the existing issue indistinguishable
from the newly auctioned one, the older issue is deemed to meet the standards of
this chapter and would be deliverable. The Exchange shall have the right to
exclude any new issue from deliverable status or to further limit outstanding
issues from deliverable status. (03/01/00)
2342.01 Deliveries on Futures Contracts - Deliveries against short-term U.S.
Treasury Notes futures contracts shall be by book-entry transfer between
accounts of Clearing Members at qualified banks (Regulation 2380.01) in
accordance with Department of Treasury Circular 300, Subpart 0: Book-Entry
Procedure. Delivery must be made no later than the last business day of the
month. Notice of intention to deliver shall be given to the Clearing Services
Provider by 8:00 p.m. (Chicago time), or by such other time designated by the
Exchange on the second business day preceding delivery day. In the event the
long Clearing Member does not agree with the terms of the invoice received from
the short Clearing Member, the long Clearing Member must notify the short
Clearing Member, and the dispute must be settled by 9:30 a.m. Chicago time), or
by such time designated by the Exchange, on delivery day. The short Clearing
Member must have contract grade U.S. Treasury notes at his bank inacceptable
(to his bank) delivery form by 10:00 a.m. (Chicago time) on delivery day, or by
such time designated by the Exchange. The short Clearing Member must notify his
bank (Regulation 2380.01) to transfer contract grade U.S. Treasury notes by
book-entry to the long Clearing Member's account on a delivery versus payment
basis. That is, payment shall not be made until the notes are delivered. On
delivery day, the long Clearing Member must make funds available by 7:30 a.m.
(Chicago time), or by such time designated by the Exchange, and notify his bank
(Regulation 2380.01) to accept contract grade U.S. Treasury notes and to remit
federal funds to the short Clearing Members' account at the short Clearing
Member's bank (Regulation 2380.01) in payment for delivery of the notes.
Contract grade U.S. Treasury notes must be transferred and payment must be made
before 1:00 p.m. (Chicago time), or by such time designated by the Exchange, on
delivery day. All deliveries must be assigned by the Clearing Services Provider.
Where a futures commission merchant as a clearing member has an interest both
long and short for customers on its own books, it must tender to the Clearing
Services Provider such notices of intention to deliver as it received from its
customers who are short. (01/01/04)
2342.02 Wire Failure - In the event that delivery cannot be accomplished
because of a failure of the Federal Reserve wire or because of a failure of
either the long Clearing Member's bank or the short Clearing Member's bank
access to the Federal Reserve wire, delivery shall be made before 9:30 a.m. on
the next business day on which the Federal Reserve wire is operable. Interest
shall accrue to the long paid by the short beginning on the day at which the
notes were to be originally delivered.
In the event of such failure, both the long and short must provide documented
evidence that the instructions were given to their respective banks in
accordance with Regulations 2342.01 and 2349.04 and that all provisions of
Regulations of 2342.01 and 2349.04 have been complied with. (10/01/94)
2346.01 Date of Delivery - Delivery of short term U.S. Treasury Notes may be
made by the short upon any permissible delivery day of the delivery month the
short may select. The delivery month extends to and includes the third business
day following the last trading day in the current month. Delivery of short term
U.S. Treasury Notes must be made no later than the last business day
2304
Ch23 Delivery Procedures
of that month. (11/01/94)
2347.01 Delivery Notices - (See Regulation 1047.01) (10/01/94)
2348.01 Method of Delivery - (See Regulation 1048.01) (10/01/94)
2349.01 Time of Delivery, Payment, Form of Delivery Notice - (See Rule
1049.00) (10/01/94)
2349.02 Buyer's Report of Eligibility to Receive Delivery - (See Regulation
1049.02) (10/01/94)
2349.03 Seller's Invoice to Buyers - Upon determining the buyers obligated to
accept deliveries tendered by issuers of delivery notices, the Clearing House
shall promptly furnish each issuer the names of the buyers obligated to accept
delivery from him and a description of each commodity tendered by him which was
assigned by the Clearing House to each such buyer. Thereupon, sellers (issuers
of delivery notices) shall prepare invoices addressed to their assigned buyers,
describing the documents to be delivered to each such buyer. Such invoices shall
show the amount which buyers must pay to sellers in settlement of the actual
deliveries, based on the delivery prices established by the Clearing House, and
adjusted for applicable interest payments. Such invoices shall be delivered to
the Clearing House by 2:00 p.m., or by such other time designated by the Board
of Directors, on the day of intention except on the last intention day of the
month, where such invoices shall be delivered to the Clearing House by 3:00
p.m., or by such other time designated by the Board of Directors. Upon receipt
of such invoices, the Clearing House shall promptly make them available to
buyers to whom they are addressed, by placing them in buyers' mail boxes
provided for that purpose in the Clearing House. (12/01/99)
2349.04 Payment - Payment shall be made in federal funds. The long obligated
to take delivery must take delivery and make payments before 1:00 p.m. on the
day of delivery, except on banking holidays when delivery must be taken and
payment made before 9:30 a.m. the next banking business day. Adjustments for
differences between contract prices and delivery prices established by the
Clearing House shall be made with the Clearing House in accordance with its by-
laws and resolutions. (10/01/94)
2349.05 Buyers Banking Notification - The long Clearing Member shall provide
the short Clearing member by 4:00 p.m. (5:00 p.m. EST) on the day of intention,
one business day prior to delivery day, with a Banking Notification. The Banking
Notification form will include the following information: the identification
number and name of the long Clearing Member; the delivery date; the notification
number of the delivery assignment; the identification number and name of the
short Clearing Member making delivery; the quantity of the contract being
delivered; the long Clearing Member's bank, account number and specific Federal
Wire instructions for the transfer of U.S. securities. (10/01/94)
2350.00 Duties of Members - (See Rule 1050.00) (10/01/94)
2350.01 Office Deliveries Prohibited - (See Regulation 1051.01) (10/01/94)
2350.02 Failure to Deliver - (See Regulation 1050.01) (01/01/04)
2354.00 Failure to Accept Delivery - (See Rule 1054.00) (10/01/94)
2354.01 Failure to Accept Delivery - (See Regulation 1054.01) (01/01/04)
2380.01 Banks - For purposes of these regulations relating to trading in short
term U.S. Treasury Notes, the word "Bank" (Regulation 2342.01) shall mean a U.S.
commercial bank (either Federal or State charter) that is a member of the
Federal Reserve System and with capital (capital, surplus, and undivided
earnings) in excess of one hundred million dollars ($100,000,000). (10/01/94)
2305
================================================================================
Chapter 24
Long Term T-Notes (6 1/2 -10 Year)
================================================================================
Ch24 Trading Conditions................................................ 2402
2401.00 Authority................................................... 2402
2402.01 Application of Regulation................................... 2402
2403.01 Emergencies, Acts of God, Acts of Government................ 2402
2404.01 Unit of Trading............................................. 2402
2405.01 Months Traded In............................................ 2402
2406.01 Price Basis................................................. 2402
2407.01 Hours of Trading............................................ 2402
2409.01 Last Day of Trading......................................... 2402
2409.02 Liquidation in the Last Seven Days of Delivery Months....... 2403
2412.12 Position Limits and Reportable Positions.................... 2403
Ch24 Delivery Procedures............................................... 2404
2436.01 Standards................................................... 2404
2442.01 Deliveries of Futures Contracts............................. 2404
2442.02 Wire Failure................................................ 2404
2446.01 Date of Delivery............................................ 2405
2447.01 Delivery Notices............................................ 2405
2448.01 Method of Delivery.......................................... 2405
2449.00 Time of Delivery, Payment, Form of Delivery Notice.......... 2405
2449.02 Buyer's Report of Eligibility to Receive Delivery........... 2405
2449.03 Sellers Invoice to Buyers................................... 2405
2449.04 Payment..................................................... 2405
2449.05 Buyers Banking Notification................................. 2405
2450.01 Failure to Deliver.......................................... 2405
2454.01 Failure to Accept Delivery.................................. 2405
Ch24 Regularity of Banks............................................... 2406
2480.01 Banks....................................................... 2406
2401
================================================================================
Chapter 24
Long Term T-Notes (6 1/2 -10 Year)
================================================================================
Ch24 Trading Conditions
2401.00 Authority - (See Rule 1701.00) (10/01/94)
2402.01 Application of Regulations - Futures transactions in long term U.S.
Treasury Notes shall be subject to the general rules of the Association as far
as applicable and shall also be subject to the regulations contained in this
chapter, which are exclusively applicable to trading in long term U.S. Treasury
Notes. (09/01/00)
2403.01 Emergencies, Acts of God, Acts of Government - If the delivery or
acceptance or any precondition or requirement of either, is prevented by strike,
fire, accident, act of government, act of God or other emergency, the seller or
buyer shall immediately notify the Chairman. If the Chairman determines that
emergency action may be necessary, he shall call a special meeting of the Board
and arrange for the presentation of evidence respecting the emergency condition.
If the Board determines that an emergency exists, it shall take such action
under Rule 180.00 as it deems necessary under the circumstances and its decision
shall be binding upon all parties to the contract. For example, and without
limiting the Board's power, it may extend delivery dates and designate
alternative delivery points in the event of conditions interfering with the
normal operations of approved facilities.
In the event the Board determines that there exists a shortage of deliverable
U.S. Treasury Notes, it may, upon a two-thirds vote under Rule 180.00, take such
action as may be in the Board's sole discretion appear necessary to prevent,
correct or alleviate the condition. Without limiting the foregoing or the
authority of the Board under Rule 180.00, the Board may:
(1) designate as deliverable, callable U.S. Treasury Bonds otherwise meeting the
specifications and requirements stated in this chapter;
(2) designate as deliverable one or more issues of U.S. Treasury Notes and/or
U.S. Treasury Bonds having maturities shorter than six and one-half years,
or longer than ten years and otherwise meeting the specifications and
requirements stated in this chapter; and/or
(3) determine a cash settlement based on the current cash value of a 6% coupon
rate, six and one-half years to ten years U.S. Treasury Note, as determined
by using the current market yield curve for U.S. Treasury securities on the
last day of trading. (03/01/00)
2404.01 Unit of Trading - The unit of trading shall be United States Treasury
Notes having a face value at maturity of one hundred thousand dollars ($100,000)
or multiples thereof. (10/01/94)
2405.01 Months Traded In - Trading in Long-Term U.S. Treasury notes futures
may be scheduled in such months as determined by the Exchange. (03/01/00)
2406.01 Price Basis - Minimum price fluctuations shall be in multiples of
one-half of one thirty-second (1/32) point per 100 points ($15.625 per contract)
except for intermonth spreads, where minimum price fluctuations shall be in
multiples of one-fourth of one thirty-second point per 100 points ($7.8125 per
contract). Par shall be on the basis of 100 points. Contracts shall not be made
on any other price basis. (02/01/01)
2407.01 Hours of Trading - The hours of trading for future delivery in long
term U.S. Treasury Notes shall be determined by the Board. On the last day of
trading in an expiring future, the closing time for such future shall be 12:00
noon subject to the provisions of the second paragraph of Rule 1007.00.
The market shall be opened and closed for all months simultaneously, or in such
other manner as the Regulatory Compliance Committee shall direct. (10/01/94)
2409.01 Last Day of Trading - No trades in long term U.S. Treasury Note
futures deliverable in the current month shall be made during the last seven
business days of that month and any contracts
2402
Ch24 Trading Conditions
-----------------------
remaining open must be settled by delivery or as provided in Regulation 2409.02
after trading in such contracts has ceased. (10/01/94)
2409.02 Liquidation in the Last Seven Days of Delivery Months - After trading in
contracts for future delivery in the current delivery month has ceased in
accordance with Regulation 2409.01 of this chapter, outstanding contracts may be
liquidated by the delivery of book-entry U.S. Treasury Notes or Bonds
(Regulation 2442.01) or by mutual agreement by means of a bona fide exchange of
such current futures for actual U.S. Treasury Notes or Bonds or comparable
instruments, or by mutual agreement by means of a bona fide exchange of such
current futures for, or in connection with, a swap transaction (per Regulation
444.04). Such exchange must, in any event, be made no later than the fifth
business day immediately preceding the last business day of the delivery month.
(03/01/04)
2412.12 Position Limits and Reportable Positions - (See Regulation 425.01)
(10/01/94)
2403
Ch24 Delivery Procedures
2436.01 Standards - The contract grade for delivery on futures contracts made
under these regulations shall be U.S. Treasury Notes which have an actual
maturity of not less than six and one-half years and not more than ten years.
All notes delivered against a contract must be of the same issue. For
settlement, the time to maturity of a given issue is calculated in complete
quarter year increments (i.e. 8 years, 10 months, 17 days is taken to be 8
years, 9 months) from the first day of the delivery month. The price at which a
note with this time to maturity and with the same coupon rate as this issue will
yield 6%, according to bond tables prepared by the Financial Publishing Co. of
Boston, Mass., is multiplied by the settlement price to arrive at the amount at
which the short invoices the long.
U.S. Treasury Notes deliverable against futures contracts under these
regulations must have semi-annual coupon payments.
Interest accrued on the notes shall be charged to the long by the short in
accordance with Department of the Treasury Circular 300, Subpart P.
New issues of U.S. Treasury Notes which satisfy the standards in this regulation
shall be added to the deliverable grade as they are issued. If during the
auction of a note which will meet the standards of this chapter the Treasury re-
opens an existing issue, thus rendering the existing issue indistinguishable
from the newly auctioned one, the older issue is deemed to meet the standards of
this chapter and would be deliverable. The Exchange shall have the right to
exclude any new issue from deliverable status or to further limit outstanding
issues from deliverable status. (03/01/00)
2442.01 Deliveries of Futures Contracts - Deliveries against long term U.S.
Treasury Note futures contracts shall be by book-entry transfer between accounts
of Clearing Members at qualified banks (Regulation 2480.01) in accordance with
Department of Treasury Circular 300, Subpart O: Book-Entry Procedure. Delivery
must be made no later than the last business day of the month. Notice of
intention to deliver shall be given to the Clearing Services Provider by 8:00
p.m. (Chicago time), or by such other time designated by the Exchange, on the
second business day preceding delivery day. In the event the long Clearing
Member does not agree with the terms of the invoice received from the short
Clearing Member, the long Clearing Member must notify the short Clearing Member,
and the dispute must be settled by 9:30 a.m. (Chicago time), or by such other
time designated by the Exchange, on delivery day. The short Clearing Member must
have contract grade U.S. Treasury notes in place at his bank in acceptable (to
his bank) delivery form no later than 10:00 a.m. (Chicago time), or by such
other time designated by the Exchange, on delivery day. The short Clearing
Member must notify his bank (Regulation 2480.01) to transfer contract grade U.S.
Treasury notes by book-entry to the long Clearing Member's account at the long
Clearing Member's bank on a delivery versus payment basis. That is, payment
shall not be made until the notes are delivered. On delivery day, the long
Clearing Member must make funds available by 7:30 a.m. (Chicago time), or by
such other time designated by the Exchange, and notify his bank (Regulation
2480.01) to accept contract grade U.S. Treasury notes and to remit federal funds
to the short Clearing Member's account at the short Clearing Member's bank
(Regulation 2480.01) in payment for delivery of the notes. Contract grade U.S.
Treasury notes must be transferred and payment must be made before 1:00 p.m.
(Chicago time), or by such other time designated by the Exchange, on delivery
day. All deliveries must be assigned by the Clearing Services Provider. Where a
futures commission merchant as a clearing member has an interest both long and
short for customers on its own books, it must tender to the Clearing Services
Provider such notices of intention to deliver as it received from its customers
who are short. (01/01/04)
2442.02 Wire Failure - In the event that delivery cannot be accomplished
because of a failure of the Federal Reserve wire or because of a failure of
either the long Clearing Member's bank or thbulletinClearing Member's bank
access to the Federal Reserve wire, delivery shall be made before 9:30 a.m. on
the next business day on which the Federal Reserve wire is operable. Interest
shall accrue to the long paid by the short beginning on the day at which the
notes were to be originally delivered.
In the event of such failure, both the long and short must provide documented
evidence that the instructions were given to their respective banks in
accordance with Regulations 2442.01 and 2449.04 and that all other provisions of
Regulations of 2442.01 and 2449.04 have been complied with. (10/01/94)
2404
Ch24 Delivery Procedures
------------------------
2446.01 Date of Delivery - Delivery of long term U.S. Treasury Notes may be
made by the short upon any permissible delivery day of the delivery month the
short may select. Delivery of long term U.S. Treasury Notes must be made no
later than the last business day of that month. (10/01/94)
2447.01 Delivery Notices - (See Regulation 1047.01) (10/01/94)
2448.01 Method of Delivery - (See Regulation 1048.01) (10/01/94)
2449.00 Time of Delivery, Payment, Form of Delivery Notice - (See Rule 1049.00)
(10/01/94)
2449.02 Buyer's Report of Eligibility to Receive Delivery - (See Regulation
1049.02) (10/01/94)
2449.03 Sellers Invoice to Buyers - Upon determining the buyers obligated to
accept deliveries tendered by issuers of delivery notices, the Clearing Services
Provider shall promptly furnish each issuer the names of the buyers obligated to
accept delivery from him and a description of each commodity tendered by him
which was assigned by the Clearing Services Provider to each such buyer.
Thereupon, sellers (issuers of delivery notices) shall prepare invoices
addressed to their assigned buyers describing the documents to be delivered to
each such buyer. Such invoices shall show the amount which buyers must pay to
sellers in settlement of the actual deliveries, based on the delivery prices
established by the Clearing Services Provider, and adjusted for applicable
interest payments. Such invoices shall be delivered to the Clearing Services
Provider by 2:00 p.m., or by such other time designated by the Exchange, on the
day of intention except on the last intention day of the month, where such
invoices shall be delivered to the Clearing Services Provider by 3:00 p.m., or
by such other time designated by the Exchange. Upon receipt of such invoices,
the Clearing Services Provider shall promptly make them available to buyers to
whom they are addressed. (01/01/04)
2449.04 Payment - Payment shall be made in federal funds. The long obligated to
take delivery must take delivery and make payment before 1:00 p.m. on the day of
delivery, or such other time designated by the Exchange except on banking
holidays when delivery must be taken and payment made before 9:30 a.m. or such
other time designated by the Exchange the next business day. Adjustments for
differences between contract prices and delivery prices established by the
Clearing Services Provider shall be made with the Clearing Services Provider in
accordance with its rules, policies and procedures. (01/01/04)
2449.05 Buyers Banking Notification - The long Clearing Member shall provide
the short Clearing member by 4:00 p.m. (5:00 p.m. EST) on the day of intention,
one business day prior to delivery day, with a Banking Notification. The Banking
Notification form will include the following information: the identification
number and name of the long Clearing Member; the delivery date; the notification
number of the delivery assignment; the identification number and name of the
short Clearing Member making delivery; the quantity of the contract being
delivered; the long Clearing Member's bank, account number and specific Federal
Wire instructions for the transfer of U.S. securities. (10/01/94)
2450.01 Failure to Deliver - (See Regulation 1050.01(01/01/04)
2454.01 Failure to Accept Delivery - (See Regulation 1054.01)(01/01/04)
2405
Ch24 Regularity of Banks
2480.01 Banks - For purposes of these regulations relating to trading in long
term U.S. Treasury Notes, the word "Bank" (Regulation 2442.01) shall mean a U.S.
commercial bank (either Federal or State charter) that is a member of the
Federal Reserve System and with capital (capital, surplus and undivided
earnings) in excess of one hundred million dollars ($100,000,000). (10/01/94)
2406
================================================================================
Chapter 25
Medium Term U.S. Treasury Notes (5 Year)
================================================================================
Ch25 Trading Conditions................................................ 2502
2501.00 Authority................................................... 2502
2502.01 Application of Regulation................................... 2502
2503.01 Emergencies, Acts of God, Acts of Government................ 2502
2504.01 Unit of Trading............................................. 2502
2505.01 Months Traded In............................................ 2502
2506.01 Price Basis................................................. 2502
2509.01 Last Day of Trading......................................... 2502
2509.02 Liquidation in the Last Seven Days of the Delivery Month.... 2503
2510.01 Margin Requirements......................................... 2503
Ch25 Delivery Procedures............................................... 2504
2536.01 Standards................................................... 2504
2542.01 Deliveries on Futures Contracts............................. 2504
2542.02 Wire Failure................................................ 2504
2546.01 Date of Delivery............................................ 2504
2547.01 Delivery Notices............................................ 2505
2548.01 Method of Delivery.......................................... 2505
2549.00 Time of Delivery, Payment, Form of Delivery Notice.......... 2505
2549.02 Buyer's Report of Eligibility to Receive Delivery........... 2505
2549.03 Seller's Invoice to Buyers.................................. 2505
2549.04 Payment..................................................... 2505
2549.05 Buyers Banking Notification................................. 2505
2550.00 Duties of Members........................................... 2505
2550.01 Failure to Deliver.......................................... 2505
2551.01 Office Deliveries Prohibited................................ 2505
2554.00 Failure to Accept Delivery.................................. 2505
2554.01 Failure to Accept Delivery.................................. 2505
Ch25 Regularity of Banks............................................... 2506
2580.01 Banks....................................................... 2506
2501
================================================================================
Chapter 25
Medium Term U.S. Treasury Notes (5 Year)
================================================================================
Ch25 Trading Conditions
2501.00 Authority - (See Rule 1701.00) (10/01/94)
2502.01 Application of Regulations - Futures transactions in medium term U.S.
Treasury Notes shall be subject to the general rules of the Association as far
as applicable and shall also be subject to the regulations contained in this
chapter, which are exclusively applicable to trading in medium term U.S.
Treasury Notes. (09/01/00)
2503.01 Emergencies, Acts of God, Acts of Government - If the delivery or
acceptance or any precondition or requirement of either, is prevented by strike,
fire, accident, act of government, act of God or other emergency, the seller or
buyer shall immediately notify the Chairman. If the Chairman determines that
emergency action may be necessary, he shall call a special meeting of the Board
and arrange for the presentation of evidence respecting the emergency condition.
If the Board determines that an emergency exists, it shall take such action
under Rule 180.00 as it deems necessary under the circumstances and its decision
shall be binding upon all parties to the contract. For example, and without
limiting the Board's power, it may extend delivery dates and designate
alternative delivery points in the event of conditions interfering with the
normal operations of approved facilities.
In the event the Board determines that there exists a shortage of deliverable
U.S. Treasury Notes, it may, upon a two-thirds vote under Rule 180.00, take such
action as may in the Board's sole discretion appear necessary to prevent,
correct or alleviate the condition. Without limiting the foregoing or the
authority of the Board under Rule 180.00, the Board may:
(1) designate as deliverable, U.S. Treasury Bonds otherwise meeting the
specifications and requirements stated in this chapter;
(2) designate as deliverable one or more issues of U.S. Treasury Notes and/or
U.S. Treasury Bonds having maturities shorter than four years and two
months, or longer than five years and two months and otherwise meeting the
specifications and requirements stated in this chapter.
(3) determine a cash settlement based on the current cash value of a 6% coupon
rate, five year U.S. Treasury Note, as determined by using the current cash
market yield curve for U.S. Treasury securities on the last day of trading.
(03/01/00)
2504.01 Unit of Trading - The unit of trading shall be United States Treasury
Notes having a face value at maturity of one hundred thousand dollars ($100,000)
or multiples thereof. (10/01/94)
2505.01 Months Traded In - Trading in Medium-Term U.S. Treasury notes futures
may be scheduled in such months as determined by the Exchange. (03/01/00)
2506.01 Price Basis - Minimum price fluctuations shall be in multiples of one-
half of one thirty-second (1/32) point per 100 points ($15.625 rounded up to the
nearest 1c per contract) except for intermonth spreads, where minimum price
fluctuations shall be in multiples of one-fourth of one thirty-second point per
100 points ($7.8125 per contract). Par shall be on the basis of 100 points.
Contracts shall not be made on any other price basis. (02/01/01)
2507.01 Hours of Trading - The hours of trading for future delivery in U.S.
Treasury Notes shall be determined by the Board. On the last day of trading in
an expiring future, the closing time for such future shall be 12:00 noon subject
to the provisions of the second paragraph of Rule 1007.00. The market shall be
opened and closed for all months simultaneously or in such other manner as the
Regulatory Compliance Committee shall direct. (10/01/94)
2509.01 Last Day of Trading - No trades in medium term U.S. Treasury Note
futures deliverable in the current month shall be made during the last seven
business days of that month and any contracts remaining open must be settled by
delivery as provided in Regulation 2509.02 after trading in such contracts has
ceased. (10/01/94)
2502
Ch25 Trading Conditions
2509.02 Liquidation in the Last Seven Days of the Delivery Month - After trading
in contracts for future delivery in the current delivery month has ceased in
accordance with Regulation 2509.01 of this chapter, outstanding contracts may be
liquidated by the delivery of book-entry U.S. Treasury Notes (Regulation
2542.01) or by mutual agreement by means of bona fide exchange of such current
futures for actual U.S. Treasury Notes or comparable instruments, or by mutual
agreement by means of a bona fide exchange of such current futures for, or in
connection with, a swap transaction (per Regulation 444.04). Such exchange must,
in any event, be made no later than the fifth business day immediately preceding
the last business day of the delivery month. (03/01/04)
2510.01 Margin Requirements - (See Regulation 431.03) (10/01/94)
2503
Ch25 Delivery Procedures
2536.01 Standards - The contract grade for delivery on futures contracts made
under these regulations shall be U.S. notes which have an original maturity of
not more than 5 years three months and which have a remaining maturity of not
less than four years and two months as defined below. To be delivered in the
current month, the note must have been issued by the Treasury before the last
day of trading in the current month. All notes or bonds delivered against a
contract must be of the same issue. For settlement, the time to maturity of a
given issue is calculated in complete one month increments (i.e. 4 years, 5
months and 14 days is taken to be 4 years and 5 months) from the first day of
the delivery month. The price at which a note with this time to maturity and
with the same coupon rate as this issue will yield 6%, according to bond tables
prepared by the Financial Publishing Co. of Boston, Mass., is multiplied by the
settlement price to arrive at the amount which the short invoices the long.
Interest accrued on the notes shall be charged to the long by the short in
accordance with Department of the Treasury Circular 300, Subpart P.
New issues of U.S. Treasury Notes which satisfy the standards in this regulation
shall be added to the deliverable grade as they are issued. If during the
auction of a note which will meet the standards of this chapter the Treasury re-
opens an existing issue, thus rendering the existing issue indistinguishable
from the newly auctioned one, the older issue is deemed to meet the standards of
this chapter and would be deliverable. The Exchange shall have the right to
exclude any new issue from deliverable status or to further limit outstanding
issues from deliverable status. (03/01/00)
2542.01 Deliveries on Futures Contracts - Deliveries against medium term U.S.
Treasury Note futures contracts shall be by book-entry transfer between accounts
of Clearing Members at qualified banks (Regulation 2580.01) in accordance with
Department of Treasury Circular 300, Subpart O: Book-Entry Procedure. Delivery
must be made no later than the last business day of the month. Notice of
intention to deliver shall be given to the Clearing Services Provider by 8:00
p.m. (Chicago time), or by such other time designated by the Exchange, on the
second business day preceding delivery day. In the event the long Clearing
Member does not agree with the terms of the invoice received from the short
Clearing Member, the long Clearing Member must notify the short Clearing Member,
and the dispute must be settled by 9:30 a.m. (Chicago time), or such other time
designated by the Exchange, on delivery day. The short Clearing Member must have
contract grade U.S. Treasury notes at his bank in acceptable (to his bank)
delivery form by 10:00 a.m. (Chicago time) or such other time designated by the
Exchange on delivery day. The short Clearing Member must notify his bank
(Regulation 2580.01) to transfer contract grade U.S. Treasury notes by book-
entry to the long Clearing Member's account on a delivery versus payment basis.
That is, payment shall not be made until the notes are delivered. On delivery
day, the long Clearing Member must make funds available by 7:30 a.m. (Chicago
time) or such other time designated by the Exchange, and notify his bank
(Regulation 2580.01) to accept contract grade U.S. Treasury notes and to remit
federal funds to the short Clearing Member's account at the short Clearing
Member's bank (Regulation 2580.01) in payment for delivery of the notes.
Contract grade U.S. Treasury notes must be transferred and payment must be made
before 1:00 p.m. (Chicago time) or such other time designated by the Exchange,
on delivery day. All deliveries must be assigned by the Clearing Services
Provider. Where a futures commission merchant as a clearing member has an
interest both long and short for customers on its own books, it must tender to
the Clearing Services Provider such notices of intention to deliver as it
received from its customers who are short. (01/01/04)
2542.02 Wire Failure - In the event that delivery cannot be accomplished
because of a failure of the Federal Reserve wire or because of a failure of
either the long Clearing Member's bank or the short Clearing Member's bank
access to the Federal Reserve wire, delivery shall be made before 9:30 a.m. on
the next business day on which the Federal Reserve wire is operable. Interest
shall accrue to the long paid by the short beginning on the day at which the
notes were to be originally delivered.
In the event of such failure, both the long and short must provide documented
evidence that the instructions were given to their respective banks in
accordance with Regulations 2542.01 and 2549.04 and that all other provisions of
Regulations of 2542.01 and 2549.04 have been complied with. (10/01/94)
2546.01 Date of Delivery - Delivery of medium term U.S. Treasury Notes may be
made by the short upon any permissible delivery day of the delivery month the
short may select. Delivery of
2504
Ch25 Delivery Procedures
medium term U.S. Treasury Notes must be made no later than the last business day
of that month. (10/01/94)
2547.01 Delivery Notices - (See Regulation 1047.01) (10/01/94)
2548.01 Method of Delivery - (See Regulation 1048.01) (10/01/94)
2549.00 Time of Delivery, Payment, Form of Delivery Notice - (See Rule 1049.00)
(10/01/94)
2549.02 Buyer's Report of Eligibility to Receive Delivery - (See Regulation
1049.02) (10/01/94)
2549.03 Seller's Invoice to Buyers - Upon determining the buyers obligated to
accept deliveries tendered by issuers of delivery notices, the Clearing Services
Provider shall promptly furnish each issuer the names of the buyers obligated to
accept delivery from him and a description of each commodity tendered by him
which was assigned by the Clearing Services Provider to each such buyer.
Thereupon, sellers (issuers of delivery notices) shall prepare invoices
addressed to their assigned buyers,describing the documents to be delivered to
each such buyer. Such invoices shall show the amount which buyers must pay to
sellers in settlement of the actual deliveries, based on the delivery prices
established by the Clearing Services Provider, and adjusted for applicable
interest payments. Such invoices shall be delivered to the Clearing Services
Provider by 2:00 p.m., or by such other time designated by the Exchange, on the
day of intention except on the last intention day of the month, where such
invoices shall be delivered to the Clearing Services Provider by 3:00 p.m., or
by such other time designated by the Exchange. Upon receipt of such invoices,
the Clearing Services Provider shall promptly make them available to buyers to
whom they are addressed. (01/01/04)
2549.04 Payment - Payment shall be made in federal funds. The long obligated to
take delivery must take delivery and make payment before 1:00 p.m. on the day of
delivery, or by such other time designated by the Exchange, except on banking
holidays when delivery must be taken and payment made before 9:30 a.m. or by
such other time designated by the Exchange, the next banking business day.
Adjustments for differences between contract prices and delivery prices
established by the Clearing Services Provider shall be made with the Clearing
Services Provider in accordance with its rules, policies and procedures.
(01/01/04)
2549.05 Buyers Banking Notification - The long Clearing Member shall provide
the short Clearing member by 4:00 p.m. (5:00 p.m. EST) on the day of intention,
one business day prior to delivery day, with a Banking Notification. The Banking
Notification form will include the following information: the identification
number and name of the long Clearing Member; the delivery date; the notification
number of the delivery assignment; the identification number and name of the
short Clearing Member making delivery; the quantity of the contract being
delivered; the long Clearing Member's bank, account number and specific Federal
Wire instructions for the transfer of U.S. securities. (10/01/94)
2550.00 Duties of Members - (See Rule 1050.00) (10/01/94)
2550.01 Failure to Deliver - (See Regulation 1050.01) (01/01/04)
2551.01 Office Deliveries Prohibited - (See Regulation 1051.01) (10/01/94)
2554.00 Failure to Accept Delivery - (See Rule 1054.00) (10/01/94)
2554.01 Failure to Accept Delivery - (See Regulation 1054.01) (01/01/04)
2505
================================================================================
Chapter 26
CBOT mini-sized Three-Month Eurodollar Time Deposits
================================================================================
Ch26 Trading Conditions.............................................. 2602
2601.01 Authority............................................. 2602
2602.01 Application of Regulations............................ 2602
2603.01 Derivative Markets.................................... 2602
2604.01 Unit of Trading....................................... 2602
2605.01 Months Traded in...................................... 2602
2606.01 Price Basis........................................... 2602
2607.01 Hours of Trading...................................... 2602
2609.01 Last Day of Trading................................... 2602
2610.01 Margin Requirements................................... 2602
2612.01 Position Limits and Reportable Positions.............. 2602
Ch26 Delivery Procedures............................................. 2603
2636.01 Standards............................................. 2603
2642.01 Deliveries of Futures Contracts....................... 2603
2647.01 Payment............................................... 2603
================================================================================
Chapter 26
CBOT mini-sized Three-Month Eurodollar Time
Deposits
================================================================================
Ch26 Trading Conditions
2601.01 Authority - Trading in mini-sized Eurodollar futures may be conducted
under such terms and conditions as may be prescribed by regulation. (12/01/01)
2602.01 Application of Regulations - Futures transactions in mini-sized
Eurodollars shall be subject to the general rules of the Exchange as far as
applicable and shall also be subject to the regulations contained in this
chapter, which are exclusively applicable to trading in mini-sized Eurodollars.
(12/01/01)
2603.01 Derivative Markets - Settlement prices shall be set in accordance
with this regulation consistent with the settlement prices of the primary
market. Contract settlement prices therein shall be set equal to the settlement
prices of the corresponding contracts of the primary market for such commodity.
Where a particular contract has opened on the Exchange for which the primary
market has established no settlement price, the Clearing Services Provider
shall set a settlement price consistent with the spread relationships of other
contracts; provided, however, that if the contract is not subject to daily price
fluctuation limits then the settlement price shall be set at the fair market
value of the contract at the close of trading. (01/01/04)
2604.01 Unit of Trading - The unit of trading shall be three-month Eurodollar
time deposits in the amount of $500,000. (12/01/01)
2605.01 Months Traded In - Trading in mini-sized Eurodollars futures may be
scheduled in such months as determined by the Exchange. (12/01/01)
2606.01 Price Basis - Minimum price fluctuations shall be one-half of one
basis point (0.005) of $500,000 on a 90-day basis, or $6.25 per contract. Prices
shall be quoted in terms of an index consisting of the difference between the
number 100.00 and the three-month Eurodollar yield on an annual basis for a
360-day year. (For example, a deposit rate of 4.50 percent shall be quoted as
95.50.) Contracts shall not be made on any other price basis. (12/01/01)
2607.01 Hours of Trading - The hours of trading for future delivery in
mini-sized Eurodollar futures shall be determined by the Exchange. (12/01/01)
2609.01 Last Day of Trading The last day of trading in Eurodollar futures
contracts, deliverable in the current month, shall be the second London bank
business day immediately preceding the third Wednesday of the contract month. On
the last day of trading in an expiring future, the closing time for such future
shall be 11:00 a.m. (London time)*, subject to the provisions of Regulation
9B.02. (12/01/01)
*This is 5:00 a.m. (Chicago time) except when Daylight Saving Time is in effect
in either, but not both, London or Chicago.
2610.01 Margin Requirements - (See Regulation 431.03) (12/01/01)
2612.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(12/01/01)
Ch26 Delivery Procedures
2636.01 Standards - Each contract which is not offset prior to the expiration
of trading shall be offset with the clearing house on the second London bank
business day immediately preceding the third Wednesday of the contract month at
a settlement price established by the International Monetary Market for
settlement of its corresponding expiring Three-Month Eurodollar Time Deposits
futures contract. If the foregoing date for cash settlement is an Exchange
holiday, each contract which is not offset prior to the expiration of trading
shall be offset with the Clearing Services Provider on the next succeeding
Exchange business day. (01/01/04)
2642.01 Deliveries of Futures Contracts - Deliveries against mini-sized
Eurodollar futures contracts must be made through the Clearing Services
Provider. Delivery under these regulations shall be made on settlement day and
shall be accomplished by cash settlement as hereinafter provided.
The Clearing Services Provider will advise clearing members holding open
positions in mini-sized Eurodollar futures contracts deliverable in the current
month of the final settlement price established for that month, as soon as
practicable on settlement day. Clearing members shall then make payment to and
receive payment through the Clearing Services Provider in accordance with normal
variation settlement procedures, based on the settlement price. (01/01/04)
2647.01 Payment - (See Regulation 1049.04) (12/01/01)
2603
Ch25 Regularity of Banks
2580.01 Banks - For purposes of these regulations relating to trading in U.S.
Treasury notes, the word "Bank" (Regulation 2542.01) shall mean a U.S.
commercial bank (either Federal or State charter) that is a member of the
Federal Reserve System and with capital (capital, surplus, and undivided
earnings) in excess of one hundred million dollars ($100,000,000). (10/01/94)
2506
================================================================================
Chapter 27A (Standard Options)
Long Term Treasury Note Futures Options
================================================================================
Ch27A Trading Conditions.............................................. 2702
A2701.00 Authority.............................................. 2702
A2701.01 Application of Regulations............................. 2702
A2702.01 Nature of Long Term Treasury Note Futures Put Options.. 2702
A2702.02 Nature of Long Term Treasury Note Futures Call Options. 2702
A2703.01 Trading Unit........................................... 2702
A2704.01 Striking Prices........................................ 2702
A2705.01 Payment of Option Premium.............................. 2702
A2706.01 Option Premium Basis................................... 2702
A2707.01 Exercise of Option..................................... 2703
A2707.02 Automatic Exercise..................................... 2703
A2707.03 Corrections to Option Exercises........................ 2703
A2708.01 Expiration of Option................................... 2703
A2709.01 Months Traded In....................................... 2703
A2710.01 Trading Hours.......................................... 2703
A2711.01 Position Limits and Reportable Positions............... 2703
A2712.01 Margin Requirements.................................... 2703
A2713.01 Last Day of Trading.................................... 2703
2701A
================================================================================
Chapter 27A (Standard Options)
Long Term Treasury Note Futures Options
================================================================================
Ch27A Trading Conditions
A2701.00 Authority - (See Rule 2801.00) (10/01/94)
A2701.01 Application of Regulations - Transactions in put and call options on
Long Term Treasury Note futures contracts shall be subject to the general rules
of the Association as far as applicable and shall also be subject to the
regulations contained in this chapter which are exclusively applicable to
trading in put and call options on Long Term Treasury Note futures contracts.
(See Rule 490.00) (09/01/00)
A2702.01 Nature of Long Term Treasury Note Futures Put Options - The buyer of
one (1) Long Term Treasury Note futures put option may exercise his option at
any time prior to expiration (subject to Regulation 2707.01), to assume a short
position in one (1) Long Term Treasury Note futures contract of a specified
contract month at a striking price set at the time the option was purchased. The
seller of one (1) Long Term Treasury Note futures put option incurs the
obligation of assuming a long position in one (1) Long Term Treasury Note
futures contract of a specified contract month at a striking price set at the
time the option was sold, upon exercise by a put option buyer. (10/01/94)
A2702.02 Nature of Long Term Treasury Note Futures Call Options - The buyer of
one (1) Long Term Treasury Note futures call option may exercise his option at
any time prior to expiration (subject to Regulation 2707.01), to assume a long
position in one (1) Long Term Treasury Note futures contract of a specified
contract month at a striking price set at the time the option was purchased. The
seller of one (1) Long Term Treasury Note futures call option incurs the
obligation of assuming a short position in one (1) Long Term Treasury Note
futures contract of a specified contract month at a striking price set at the
time the option was sold, upon exercise by a call option buyer. (10/01/94)
A2703.01 Trading Unit - One (1) $100,000 face value Long Term Treasury Note
futures contract of a specified contract month on the Chicago Board of Trade.
(10/01/94)
A2704.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices in integral multiples of one (1) point per Long Term
Treasury Note futures contract. At the commencement of trading for such option
contracts, the following striking prices shall be listed: one with a striking
price closest to the previous day's settlement price on the underlying Long Term
Treasury Note futures contract, and the next twenty-five (25) consecutive higher
and the next twenty-five (25) consecutive lower striking prices closest to the
previous day's settlement price. If the previous day's settlement price is
midway between two striking prices, the closest price shall be the larger of the
two. Over time, new striking prices will be added to ensure that at least
twenty-five (25) striking prices always exist above and below the previous day's
settlement price on the underlying futures. All new striking prices will be
added prior to the opening of trading on the following business day.
The Exchange may modify the procedure for the introduction of striking prices as
it deems appropriate in order to respond to market conditions. (04/01/04)
A2705.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (01/01/04)
A2706.01 Option Premium Basis - The Premium for Long Term Treasury Note futures
options
2702A
Ch27A Trading Conditions
------------------------
shall be in multiples of one sixty-fourth (1/64) of one percent (1%) of a
$100,000 Long Term Treasury Note futures contract which shall equal $15.625 per
1/64 and $1,000 per full point.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.0
0 to $15.00 in $1.00 increments per option contract.
If options are quoted in volatility terms, the minimum fluctuation shall be .10
percent (i.e.-10.0%, 10.1%, 10.2%, etc.) (07/01/03)
A2707.01 Exercise of Option - The buyer of a Long Term Treasury Note futures
option may exercise the option on any business day prior to expiration by giving
notice of exercise to the Clearing Services Provider by 6:00 p.m., or by such
other time designated by the Exchange, on such day. (01/01/04)
A2707.02 Automatic Exercise - Notwithstanding the provisions of Regulation
2707.01, after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m., or by such other time designated by the Exchange, on the
last day of trading. (01/01/04)
A2707.03 Corrections to Option Exercises - Corrections to option exercises,
including automatic exercises, may be accepted by the Clearing Services provider
after the 6:00 p.m. deadline and up to the beginning of final option expiration
processing provided that such corrections are necessary due to: (1) a bona fide
clerical error, (2) an unreconciled Exchange option transaction(s), or (3) an
extraordinary circumstance where the clearing firm and customer are unable to
communicate final option exercise instructions prior to the deadline. The
decision whether a correction is acceptable will be made by the President of the
Clearing Services Provider, or the President's designee, and such decision will
be final. (01/01/04)
A2708.01 Expiration of Option - Unexercised Long Term Treasury Note futures
options shall expire at 7:00 p.m. on the last day of trading. (01/01/04)
A2709.01 Months Traded In - Trading may be conducted in Long Term Treasury Note
futures options for a thirty six month period extending from the nearby contract
month, provided however, that the Exchange may determine not to list a contract
month. Both serial and quarterly options may be listed to expire into either
front-month or deferred futures as determined by the Board. (06/01/99)
A2710.01 Trading Hours - The hours of trading of options on Long Term Treasury
Note futures contracts shall be determined by the Board. On the last day of
trading in an expiring option the closing time for such option shall be the same
as the close of trading of the Regular Daytime open outcry trading session for
the corresponding Long Term Treasury Note futures contract, subject to the
provisions of the second paragraph of Rule 1007.00. Long Term Treasury Note
futures options shall be opened and closed for all months and strike prices
simultaneously or in such a manner as the Regulatory Compliance Committee shall
direct. (04/01/00)
A2711.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(10/01/00)
A2712.01 Margin Requirements - (See Regulation 431.05) (10/01/94)
A2713.01 Last Day of Trading - No trades in Long Term Treasury Note futures
options expiring in the current month shall be made after the close of trading
of the Regular Daytime open outcry trading session for the corresponding Long
Term Treasury Note futures contract, on the last Friday which precedes by at
least two business days, the last business day of the month preceding the option
month. If such Friday is not a business day, or there is a Friday which is not a
business day which precedes by one business day the last business day of the
month preceding the option month, the last day of trading shall be the business
day prior to such Friday. (07/01/01)
Ch27A Trading Conditions
------------------------
================================================================================
Chapter 27B (Flexible Options)
Long Term Treasury Note Flexible Options
================================================================================
Ch27B Trading Conditions............................................. 2706B
B2702.03 Nature of Flexible Options............................ 2706B
B2703.01 Trading Unit.......................................... 2706B
B2704.01 Strike Prices......................................... 2706B
B2707.01 Exercise of Flexible Options.......................... 2706B
B2707.02 Automatic Exercise.................................... 2706B
B2708.01 Expiration Date....................................... 2707B
B2709.01 Months Traded In...................................... 2707B
B2713.01 Last Day of Trading................................... 2707B
B2715.01 Exercise Style........................................ 2707B
B2716.01 Underlying Futures Contract for Flexible Options...... 2707B
B2717.01 Initiating a Flexible Option Contract Series.......... 2707B
B2719.01 RFQ Trading Interval.................................. 2707B
B2720.01 Expiration of an RFQ.................................. 2707B
B2721.01 Reporting of Flexible Option Trades................... 2707B
2705B
===============================================================================
Chapter 27B (Flexible Options)
Long Term Treasury Note Flexible Options
===============================================================================
Note: The following Flexible option regulations with the exception noted in
the second paragraph of Regulation 2702.03 supersede the
corresponding standard regulations presented in Part A of this
chapter. Regulations 2701.00, 2701.01, 2702.01, 2702.02, 2705.01,
2706.01, 2710.01, 2711.01, 2712.01, and 2714.01 remain in effect for
both standard and Flexible options.
Ch27B Trading Conditions
B2702.03 Nature of Flexible Options - Flexible options on Long Term Treasury
Note futures shall be permitted in puts and calls which do not have the same
underlying futures contract, same strike price, same exercise style, and same
last day of trading as standard options.
However, Flexible Options on Long Term Treasury Note futures shall also be
permitted in puts and calls which have the same underlying futures contract,
same strike price, same exercise style, and same last day of trading as standard
options that are not at the time listed for trading in the standard options pit
or on e-cbot. All Flexible Option regulations except 2707.01, 2707.02, 2708.01,
and 2713.01 will pertain for these options.*
Trading shall be permitted in any CBOT recognized option/option or
option/futures spread involving puts, calls or futures. (09/01/00)
B2703.01 Trading Unit - The minimum size for requesting a quote and/or trading
in a flexible option series is 50 contracts, where each contract represents one
of the underlying futures contracts at the Chicago Board of Trade. Parties may
request a quote and/or trade for less than 50 contracts in order to entirely
close out a position in a flexible series.
For a flexible options series, respondents to a request for quote, must be
willing to trade at least 50 contracts, with the exception that a respondent may
trade less than 50 contracts if the respondent is entirely closing out a
position in the series. (07/01/99)
B2704.01 Strike Prices - Strike prices for flexible options must be specified in
points and 32nd's of points per Long Term Treasury Note futures contract.
However, for a Request for Quote (RFQ), strike prices may be specified in one
32nd point increments relative to the underlying futures contract. Strike prices
cannot be outside the range of the currently listed strike prices for standard
options. (06/01/95)
B2707.01 Exercise of Flexible Options - Notification of the intent to exercise a
flexible option must be received by the Clearing Services Provider by 6:00 p.m.
Chicago time, or by such other time designated by the Exchange. No exceptions to
the 6:00 p.m. exercise deadline, or such other deadline designated by the
Exchange, shall be permitted.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 2702.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B2707.02 Automatic Exercise - After the close on the last day of trading, all
in-the-money flexible options will be automatically exercised unless notice to
cancel automatic exercise is given to the Clearing Services Provider by 6:00
p.m., or by such other time designated by the Exchange, on that day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 2702.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B2708.01 Expiration Date - Flexible option expiration may be specified for any
Monday through Friday that is not an Exchange holiday except that expiration may
not occur following the last Friday that precedes by at least two business days
the last business day of the calendar month preceding the underlying future
contract month. Flexible options expire at 7:00 p.m. on the last trading
Ch27B Trading Conditions
------------------------
day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 2702.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
(07/01/01)
B2709.01 Months Traded In - Trading my be conducted in flexible options in any
month up through the most distant underlying futures contract in which a trade
has occurred. (05/01/94)
B2713.01 Last Day of Trading - The last day of trading in a flexible option
shall be the expiration day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 2702.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (05/01/94)
B2715.01 Exercise Style - Flexible options may be American or European exercise
style. (10/01/94)
B2716.01 Underlying Futures Contract for Flexible Options - The underlying
futures contract for a flexible option shall be the same as the underlying
futures contract month of the nearest March quarterly cycle standard futures
option expiring on or after the expiration of the flexible option. (10/01/94)
B2717.01 Initiating a Flexible Option Contract Series - The opening of trading
in any flexible option series shall occur through the submission of an RFQ or at
such time that a trade takes place in the particular flexible option series. If
so desired, participants can submit additional RFQ's for any open series.
However, in this situation no priority period (Regulation 2719.01) will exist.
(02/01/01)
B2719.01 RFQ Trading Interval - If the submitter of the first RFQ of the day in
a flexible series requests either a bid or an offer but not both, then they
shall have up to a one minute priority period during which they shall have the
sole right to either buy or sell as specified in their RFQ. The exact length of
the priority period shall be determined by the Exchange.
If more than one RFQ is the first RFQ of the day in a flexible series, all the
RFQ's individually ask for either a bid or an offer but not both, and all the
RFQ's collectively are for the same side of the market (all bids or all offers)
then the submitters shall jointly share priority during the priority period.
Priority for RFQ's is determined by submission to the RFQ official, except that
all RFQ's submitted before the open shall be treated equally. (02/01/01)
B2720.01 Expiration of an RFQ - Trading in a given flexible option series
following an RFQ shall remain open for the remainder of the trading session.
Trading in a given flexible option series following a transaction in that series
shall remain open through the remainder of the trading session in which the
transaction was executed and through each subsequent session in which there is
open interest in the flexible option series. (02/01/01)
B2721.01 Reporting of Flexible Option Trades - It shall be the responsibility of
the participants in a flexible option trade to report the quantities and prices
to the flexible pit reporter in a timely manner, including any later trades in
open flexible contract term series. (10/01/94)
* The effect of the second paragraph of Regulation 2702.03 is to permit
trading in standard options under certain Flexible trading procedures prior
to the listing of such options in the standard options pit or on e-cbot.
Once and if these options are listed for trading in the standard options
pit or on e-cbot, they will be traded only in the standard options pit or
on e-cbot subject to standard options trading requirements. Upon such
listing, all existing open positions established under Flexible trading
procedures shall be fully fungible with transactions in the respective
standard option series for all purposes under these regulations.
================================================================================
Chapter 28A (Standard Options)
T-Bond Futures Options
================================================================================
Ch28A Trading Conditions.......................................... 2802A
A2801.00 Authority.......................................... 2802A
A2801.01 Application of Regulations......................... 2802A
A2802.01 Nature of U.S. Treasury Bond Futures Put Options... 2802A
A2802.02 Nature of U.S. Treasury Bond Futures Call Options.. 2802A
A2803.01 Trading Unit....................................... 2802A
A2804.01 Striking Prices.................................... 2802A
A2805.01 Payment of Option Premium.......................... 2803A
A2806.01 Option Premium Basis............................... 2803A
A2807.01 Exercise of Option................................. 2803A
A2807.02 Automatic Exercise................................. 2803A
A2807.03 Corrections to Option Exercises.................... 2803A
A2808.01 Expiration of Option............................... 2803A
A2809.01 Months Traded In................................... 2803A
A2810.01 Trading Hours...................................... 2803A
A2811.01 Position Limits and Reportable Positions........... 2804A
A2812.01 Margin Requirements................................ 2804A
A2813.01 Last Day of Trading................................ 2804A
2801A
================================================================================
Chapter 28A (Standard Options)
T-Bond Futures Options
================================================================================
Ch28A Trading Conditions
A2801.00 Authority - Trading in put and call options on futures contracts and
on commodities may be conducted under such terms and conditions as may be
prescribed by regulation. (10/01/94).
A2801.01 Application of Regulations - Transactions in put and call options on
U.S. Treasury Bond futures contracts shall be subject to the general rules of
the Association as far as applicable and shall also be subject to the
regulations contained in this chapter which are exclusively applicable to
trading in put and call options on U.S. Treasury Bond futures contracts. (See
Rule 490.00) (09/01/00)
A2802.01 Nature of U.S. Treasury Bond Futures Put Options - The buyer of one
(1) U.S. Treasury Bond futures put option may exercise his option at any time
prior to expiration (subject to Regulation 2807.01), to assume a short position
in one (1) U.S. Treasury Bond futures contract of a specified contract month at
a striking price set at the time the option was purchased. The seller of one (1)
U.S. Treasury Bond futures put option incurs the obligation of assuming a long
position in one (1) U.S. Treasury Bond futures contract of a specified contract
month at a striking price set at the time the option was sold, upon exercise by
a put option buyer. (10/01/94)
A2802.02 Nature of U.S. Treasury Bond Futures Call Options - The buyer of one
(1) U.S. Treasury Bond futures call option may exercise his option at any time
prior to expiration (subject to Regulation 2807.01), to assume a long position
in one (1) U.S. Treasury Bond futures contract of a specified contract month at
a striking price set at the time the option was purchased. The seller of one (1)
U.S. Treasury Bond futures call option incurs the obligation of assuming a short
position in one (1) U.S. Treasury Bond futures contract of a specified contract
month at a striking price set at the time the option was sold, upon exercise by
a call option buyer. (10/01/94)
A2803.01 Trading Unit - One (1) $100,000 face value U.S. Treasury Bond
futures contract of a specified contract month on the Chicago Board of Trade.
(10/01/94)
A2804.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices in integral multiples of one (1) point per U.S. Treasury
Bond futures contract as follows: At the commencement of trading for such option
contracts, the following striking prices shall be listed: one with a striking
price closest to the U.S. Treasury Bond futures contract's previous day's
settlement price, the next thirty (30) consecutive higher and the next thirty
(30) consecutive lower striking prices closest to the previous day's settlement
price. If the previous day's settlement price is midway between two striking
prices, the closest price shall be the larger of the two. Over time, new
striking prices will be added to ensure that at least thirty (30) striking
prices always exist above and below the previous day's settlement price on the
underlying futures. All new striking prices will be added prior to the opening
of trading on the following business day.
The Exchange may modify the procedure for the introduction of striking prices as
it deems appropriate in order to respond to market conditions. (04/01/04)
A2805.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time
2802A
Ch28A Trading Conditions
------------------------
that the option is purchased, or within a reasonable time after the option is
purchased. (01/01/04)
A2806.01 Option Premium Basis - The Premium for U.S. Treasury Bond futures
options shall be in multiples of one sixty-fourth (1/64) of one percent (1%) of
a $100,000 U.S. Treasury Bond futures contract which shall equal $15.625 per
/64 and $1,000 per full point.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $15.00 in $1.00 increments per option contract.
If options are quoted in volatility terms, the minimum fluctuation shall be .10
percent (i.e.-10.0%, 10.1%, 10.2%, etc.) (07/01/03)
A2807.01 Exercise of Option - The buyer of a U.S. Treasury Bond futures option
may exercise the option on any business day prior to expiration by giving notice
of exercise to the Clearing Services Provider by 6:00 p.m., or by such other
time designated by the Exchange, on such day.
(01/01/04)
A2807.02 Automatic Exercise - Notwithstanding the provisions of Regulation
2807.01, after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m., or by such other time designated by the Exchange, on the
last day of trading.
(01/01/04)
A2807.03 Corrections to Option Exercises - Corrections to option exercises,
including automatic exercises, may be accepted by the Clearing Services Provider
after the 6:00 p.m. deadline and up to the beginning of final option expiration
processing provided that such corrections are necessary due to: (1) a bona fide
clerical error, (2) an unreconciled Exchange option transaction(s), or (3) an
extraordinary circumstance where the clearing firm and customer are unable to
communicate final option exercise instructions prior to the deadline. The
decision whether a correction is acceptable will be made by the President of the
Clearing Services Provider, or the President's designee, and such decision will
be final. (01/01/04)
A2808.01 Expiration of Option- Unexercised U.S. Treasury Bond futures options
shall expire at 7:00 p.m. on the last day of trading. (01/01/04)
A2809.01 Months Traded In - Trading may be conducted in U.S. Treasury Bond
futures options for a thirty-six month period extending from the nearby contract
month, provided however, that the Exchange may determine not to list a contract
month. Both serial and quarterly options may be listed to expire into either
front-month or deferred futures as determined by the Board (06/01/99)
A2801.01 Trading Hours - The hours of trading of options in U.S. Treasury Bond
futures contracts shall be determined by the Board. On the last day of trading
in an expiring option, the closing time for such options shall be the same as
the close of trading of the Regular Daytime open outcry trading session for the
corresponding U.S. Treasury Bond futures contracts, subject to the provisions of
the second paragraph of Rule 1007.00. U.S. Treasury Bond futures options shall
be opened and closed for all months and strike prices simultaneously or in such
a manner as the Regular Compliance Committee shall direct. (04/01/00) A28011.01
Position Limits and Reportable Positions - (See Regulation 425.01) (10/01/00)
A2812.01 Margin Requirements - (See Regulation 431.05) (10/01/94)
A2813.01 Last Day of Trading - No trades in U.S. Treasury Bond futures options
expiring in the current month shall be made after the close of the Regular
Daytime open outcry trading session for the corresponding U.S. Trading Bond
futures contract on the last Friday which precedes by at least two business
days, the last business day of the month preceding the option month. If
Ch28A Trading Conditions
------------------------
such Friday is not a business day, or there is a Friday which is not a business
day which precedes by one business day the last business day of the month
preceding the option month, the last day of trading shall be the business day
prior to such Friday. (07/01/01)
===============================================================================
Chapter 28B (Flexible Options)
Treasury Bond Flexible Options
===============================================================================
[Download Table]
Ch28B Trading Conditions... 2806B
B2802.03 Nature of Flexible Options......................... 2806B
B2803.01 Trading Unit....................................... 2806B
B2804.01 Strike Prices...................................... 2806B
B2807.01 Exercise of Flexible Options....................... 2806B
B2807.02 Automatic Exercise................................. 2806B
B2808.01 Expiration Date.................................... 2807B
B2809.01 Months Traded In................................... 2807B
B2813.01 Last Day of Trading................................ 2807B
B2815.01 Exercise Style..................................... 2807B
B2816.01 Underlying Futures Contract for Flexible Options... 2807B
B2817.01 Initiating a Flexible Option Contract Series....... 2807B
B2819.01 RFQ Trading Interval............................... 2807B
B2820.01 Expiration of an RFQ............................... 2807B
B2821.01 Reporting of Flexible Option Trades................ 2807B
2805B
================================================================================
Chapter 28B (Flexible Options)
Treasury Bond Flexible Options
================================================================================
Note: The following Flexible option regulations with the exception noted in
the second paragraph of Regulation 2802.03 supersede the
corresponding standard regulations presented in Part A of this
chapter. Regulations 2801.00, 2801.01, 2802.01, 2802.02, 2805.01,
2806.01, 2810.01, 2811.01, 2812.01, and 2814.01 remain in effect for
both standard and Flexible options.
Ch28B Trading Conditions
B2802.03 Nature of Flexible Options - Flexible options on U.S. Treasury Bond
futures shall be permitted in puts and calls which do not have the same
underlying futures contract, same strike price, same exercise style, and same
last day of trading as standard options.
However, Flexible Options on U.S. Treasury Bond futures shall also be permitted
in puts and calls which have the same underlying futures contract, same strike
price, same exercise style, and same last day of trading as standard options
that are not at the time listed for trading in the standard options pit or on e-
cbot. All Flexible Option regulations except 2807.01, 2807.02, 2808.01, and
2813.01 will pertain for these options.*
Trading shall be permitted in any CBOT recognized option/option or option/
futures spread involving puts, calls or futures. (09/01/00)
B2803.01 Trading Unit - The minimum size for requesting a quote and/or trading
in a flexible option series is 50 contracts, where each contract represents one
of the underlying futures contracts at the Chicago Board of Trade. Parties may
request a quote and/or trade for less than 50 contracts in order to entirely
close out a position in a flexible series.
For a flexible options series, respondents to a request for quote, must be
willing to trade at least 50 contracts, with the exception that a respondent may
trade less than 50 contracts if the respondent is entirely closing out a
position in the series. (07/01/99)
B2804.01 Strike Prices - Strike prices for flexible options must be specified
in points and 32nd's of points per U.S. Treasury Bond futures contract.
However, for a Request for Quote (RFQ), strike prices may be specified in one
32nd point increments relative to the underlying futures contract. Strike
prices cannot be outside the range of the currently listed strike prices for
standard options. (06/01/95)
B2807.01 Exercise of Flexible Options - Notification of the intent to exercise a
flexible option must be received by the Clearing Services Provider by 6:00 p.m.
Chicago time, or by such other time designated by the Exchange. No exceptions to
the 6:00 p.m. exercise deadline, or such other deadline designated by the
Exchange, shall be permitted.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 2802.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B2807.02 Automatic Exercise - After the close on the last day of trading, all
in-the-money flexible options will be automatically exercised unless notice to
cancel automatic exercise is given to the Clearing Services Provider by 6:00
p.m., or by such other time designated by the Exchange, on that day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 2802.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B2808.01 Expiration Date - Flexible option expiration may be specified for any
Monday through Friday that is not an Exchange holiday except that expiration may
not occur following the last Friday that precedes by at least two business days
the last business day of the calendar month preceding the underlying future
contract month. Flexible options expire at 7:00 p.m. on the last trading
Ch28B Trading Conditions
------------------------
day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 2902.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B2809.01 Months Traded In - Trading may be conducted in flexible options in any
month up through the most distant underlying futures contract in which a trade
has occurred. (10/01/94)
B2813.01 Last Day of Trading - The last day of trading in a flexible option
shall be the expiration day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 2802.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (05/01/94)
B2815.01 Exercise Style - Flexible options may be American or European exercise
style. (10/01/94)
B2816.01 Underlying Futures Contract for Flexible Options - The underlying
futures contract for a flexible option shall be the same as the underlying
futures contract month of the nearest March quarterly cycle standard futures
option expiring on or after the expiration of the flexible option. (10/01/94)
B2817.01 Initiating a Flexible Option Contract Series - The opening of trading
in any flexible option series shall occur through the submission of an RFQ or at
such time that a trade takes place in the particular flexible option series.
If so desired, participants can submit additional RFQ's for any open series.
However, in this situation no priority period (Regulation 2819.01) will exist.
(02/01/01)
B2819.01 RFQ Trading Interval - If the submitter of the first RFQ of the day in
a flexible series requests either a bid or an offer but not both, then they
shall have up to a one minute priority period during which they shall have the
sole right to either buy or sell as specified in their RFQ. The exact length of
the priority period shall be determined by the Exchange.
If more than one RFQ is the first RFQ of the day in a flexible series, all the
RFQ's individually ask for either a bid or an offer but not both, and all the
RFQ's collectively are for the same side of the market (all bids or all offers)
then the submitters shall jointly share priority during the period.
Priority for RFQ's is determined by submission to the RFQ official, except that
all RFQ's submitted before the open shall be treated equally. (02/01/01)
B2820.01 Expiration of an RFQ - Trading in a given flexible option series
following an RFQ shall remain open for the remainder of the trading session.
Trading in a given flexible option series following a transaction in that series
shall remain open through the remainder of the trading session in which the
transaction was executed and through each subsequent session in which there is
open interest in the flexible option series. (02/01/01)
B2821.01 Reporting of Flexible Option Trades - It shall be the responsibility
of the participants in a flexible option trade to report the quantities and
prices to the flexible pit reporter in a timely manner,
including any later trades in open flexible contract term series. (10/01/94)
* The effect of the second paragraph of Regulation 2802.03 is to permit
trading in standard options under certain Flexible trading procedures prior
to the listing of such options in the standard options pit or e-cbot. Once
and if these options are listed for trading in the standard options pit or
on e-cbot, they will be traded only in the standard options pit or on e-cbot
subject to standard options trading requirements. Upon such listing, all
existing open positions established under Flexible trading procedures shall
be fully fungible with transactions in the respective standard option series
for all purposes under these regulations.
[Download Table]
================================================================================
Chapter 29
Soybean Futures Options
================================================================================
Ch29 Trading Conditions.............................................. 2902
2901.00 Authority.............................................. 2902
2901.01 Application of Regulations............................. 2902
2902.01 Nature of Soybean Futures Put Options.................. 2902
2902.02 Nature of Soybean Futures Call Options................. 2902
2903.01 Trading Unit........................................... 2902
2904.01 Striking Prices........................................ 2902
2905.01 Payment of Option Premium.............................. 2903
2906.01 Option Premium Basis................................... 2903
2907.01 Exercise of Option..................................... 2903
2907.02 Automatic Exercise..................................... 2903
2907.03 Corrections to Option Exercises........................ 2903
2908.01 Expiration of Option................................... 2903
2909.01 Months Traded.......................................... 2903
2910.01 Trading Hours.......................................... 2904
2911.01 Position Limits and Reportable Positions............... 2904
2912.01 Margin Requirements.................................... 2904
2913.01 Last Day of Trading.................................... 2904
2914.01 Option Premium Fluctuation Limits...................... 2904
================================================================================
Chapter 29
Soybean Futures Options
================================================================================
Ch29 Trading Conditions
2901.00 Authority - (See Rule 2801.00). (10/01/94)
2901.01 Application of Regulations - Transactions in put and call options on
Soybean futures contracts shall be subject to the general rules of the
Association as far as applicable and shall also be subject to the regulations
contained in this chapter which are exclusively applicable to trading in put and
call options on Soybean futures contracts. (See Rule 490.00). (10/01/94)
2902.01 Nature of Soybean Futures Put Options - The buyer of one (1) Soybean
futures put option may exercise his option at any time prior to expiration,
(subject to Regulation 2907.01), to assume a short position in one (1) Soybean
futures contract of a specified contract month at a striking price set at the
time the option was purchased. The seller of one (1) Soybean futures put option
incurs the obligation of assuming a long position in one (1) Soybean futures
contract of a specified contract month at a striking price set at the time the
option was sold, upon exercise by a put option buyer. (10/01/94)
2902.02 Nature of Soybean Futures Call Options - The buyer of one (1) Soybean
futures call option may exercise his option at any time prior to expiration,
(subject to Regulation 2907.01), to assume a long position in one (1) Soybean
futures contract of a specified contract month at a striking price set at the
time the option was purchased. The seller of one (1) Soybean futures call
option incurs the obligation of assuming a short position in one (1) Soybean
futures contract of a specified contract month at a striking price set at the
time the option was sold, upon exercise by a call option buyer. (10/01/94)
2903.01 Trading Unit - One (1) 5,000 bushel Soybean futures contract of a
specified contract month on the Chicago Board of Trade. (10/01/94)
2904.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices (the "strikes") in integral multiples of ten (10) cents per
bushel per Soybean futures contract (i.e., 6.10, 6.20, 6.30, etc) in integral
multiples of twenty (20) cents per bushel per Soybean futures contract (i.e.,
6.20, 6.40, 6.60, etc.) and in integral multiples of forty (40) cents per bushel
per Soybean futures contract (i.e., 6.00, 6.40, 6.80, etc.) as follows:
1. a. In integral multiples of twenty cents, at the commencement of trading
for an option contract, the following strikes shall be listed: one with
a strike closest to the previous day's settlement price of the
underlying Soybean futures contract, the next five consecutive higher
and the next five consecutive lower strikes (the "initial band"). If
the previous day's settlement price is midway between two strikes, the
closest price shall be the larger of the two.
b. In integral multiples of forty cents, at the commencement of trading
for an option contract, the following strikes shall be listed: the next
four consecutive strikes above the initial band.
c. In integral multiples of twenty cents, over time, strikes shall be
added as necessary to ensure that all strikes within $1.10 of the
previous day's trading range of the underlying futures contract are
listed (the "minimum band").
d. In integral multiples of forty cents, over time, strikes shall be added
as necessary to ensure that the next four consecutive strikes above the
minimum band are listed.
e. No new strikes may be added by these procedures in the month in which
an option expires.
2. a. In integral multiples of ten cents, at the commencement of trading for
options that are traded in months in which Soybean futures are not
traded, and for standard option months, the business day they become
the second deferred month, the following strike prices shall be listed:
one with a strike closest to the previous day's settlement price of the
underlying Soybean futures contract and the next five consecutive
higher and the next five consecutive
Ch29 Trading Conditions
-----------------------
lower strikes. For example, ten-cent strike price intervals for the
September 2000 contract month would be added on June 26, which is the
business day after the expiration of the July contract month.
b. Over time, new ten-cent strike prices will be added to ensure that at
least five strike prices exist above and below the previous day's
trading range in the underlying futures.
3. All strikes will be listed prior to the opening of trading on the following
business day. The Exchange may modify the procedures for the introduction
of strikes as it deems appropriate in order to respond to market
conditions. (09/01/00)
2905.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (12/01/03)
2906.01 Option Premium Basis - The premium for Soybean futures options shall
be in multiples of one-eighth (1/8) of one cent per bushel of a 5,000 bushel
Soybean futures contract which shall equal $6.25 per contract.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $6.00 in $1.00 increments per option contract.
(10/01/94)
2907.01 Exercise of Option - The buyer of a Soybean futures option may
exercise the option on any business day prior to expiration by giving notice of
exercise to the Clearing Services Provider by 6:00 p.m., or by such other time
designated by the Exchange, on such day. (12/01/03)
2907.02 Automatic Exercise - Notwithstanding the provisions of Regulation
2907.01, after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m., or by such other time designated by the Exchange, on the
last day of trading. (12/01/03)
2907.03 Corrections to Option Exercises - Corrections to option exercises,
including automatic exercises, may be accepted by the Clearing Services Provider
after the 6:00 p.m. deadline and up to the beginning of final option expiration
processing provided that such corrections are necessary due to (1) a bona fide
clerical error, (2) an unreconciled Exchange option transaction(s), or (3) an
extraordinary circumstance where the clearing firm and customer are unable to
communicate final option exercise instructions prior to the deadline. The
decision whether a correction is acceptable will be made by the President of the
Clearing Services Provider, or the President's designee, and such decision will
be final. (12/01/03
2908.01 Expiration of Option - Unexercised Soybean futures options shall expire
at 7:00 p.m. on the last day of trading. (12/01/03)
2909.01 Months Traded - Trading may be conducted in the nearby Soybean futures
options
Ch29 Trading Conditions
-----------------------
contract month plus any succeeding months, provided however, that the Exchange
may determine not to list a contract month. For options that are traded in
months in which Soybean futures are not traded, the underlying futures contract
is the next futures contract that is nearest to the expiration of the option.
For example, the underlying futures contract for the February option contract is
the March futures contract. (09/01/00)
2910.01 Trading Hours - The hours of trading of options on Soybean futures
contracts shall be determined by the Board. On the last day of trading in an
expiring option, the closing time for such options shall be the same as the
close of trading of the Regular Daytime open outcry trading session for the
corresponding Soybean futures contract, subject to the provisions of the second
paragraph of Rule 1007.00. On the last day of trading in an expiring option, the
expiring Soybean futures options shall be closed with a public call made
striking price by striking price, conducted by such persons as the Regulatory
Compliance Committee shall direct. On all other days, Soybean futures options
shall be opened and closed for all months and striking prices simultaneously or
in such a manner as the Regulatory Compliance Committee shall direct. (03/01/00)
2911.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(10/01/00)
2912.01 Margin Requirements - (See Regulation 431.05) (10/01/94)
2913.01 Last Day of Trading - No trades in Soybean futures options expiring
in the current month shall be made after the close of trading of the Regular
Daytime open outcry trading session for the corresponding Soybean futures
contract on the last Friday which precedes by at least two business days, the
last business day of the month preceding the option month. If such Friday is not
a business day, the last day of trading shall be the business day prior to such
Friday. (07/01/01)
2914.01 Option Premium Fluctuation Limits -Trading is prohibited during any day
except for the last day of trading in a Soybean futures option at a premium of
more than the trading limit for the Soybean futures contract above and below the
previous day's settlement premium for that option as determined by the Clearing
Services Provider. On the first day of trading, limits shall be set from the
lowest premium of the opening range. (12/01/03)
================================================================================
Chapter 30
Corn Futures Options
================================================================================
Ch30 Trading Conditions..................................
3001.00 Authority..................................
3001.01 Application of Regulations.................
3002.01 Nature of Corn Futures Put Options.........
3002.02 Nature of Corn Futures Call Options........
3003.01 Trading Unit...............................
3004.01 Striking Prices............................
3005.01 Payment of Option Premium..................
3006.01 Option Premium Basis.......................
3007.01 Exercise of Option.........................
3007.02 Automatic Exercise.........................
3007.03 Corrections to Option Exercises............
3008.01 Expiration of Option.......................
3009.01 Months Traded..............................
3010.01 Trading Hours..............................
3011.01 Position Limits............................
3012.01 Margin Requirements........................
3013.01 Last Day of Trading........................
3014.01 Option Premium Fluctuation Limits..........
================================================================================
Chapter 30
Corn Futures Options
================================================================================
Ch30 Trading Conditions
3001.00 Authority - (See Rule 2801.00). (10/01/94)
3001.01 Application of Regulations - Transactions in put and call options on
Corn futures contracts shall be subject to the general rules of the Association
as far as applicable and shall also be subject to the regulations contained in
this chapter which are exclusively applicable to trading in put and call options
on Corn futures contracts. (See Rule 490.00). (10/01/94)
3002.01 Nature of Corn Futures Put Options - The buyer of one (1) Corn futures
put option may exercise his option at any time prior to expiration, (subject to
Regulation 3007.01), to assume a short position in one (1) Corn futures contract
of a specified contract month at a striking price set at the time the option was
purchased. The seller of one (1) Corn futures put option incurs the obligation
of assuming a long position in one (1) Corn futures contract of a specified
contract month at a striking price set at the time the option was sold, upon
exercise by a put option buyer. (10/01/94)
3002.02 Nature of Corn Futures Call Options - The buyer of one (1) Corn futures
call option may exercise his option at any time prior to expiration, (subject to
Regulation 3007.01), to assume a long position in one (1) Corn futures contract
of a specified contract month at a striking price set at the time the option was
purchased. The seller of one (1) Corn futures call option incurs the obligation
of assuming a short position in one (1) Corn futures contract of a specified
contract month at a striking price set at the time the option was sold, upon
exercise by a call option buyer. (10/01/94)
3003.01 Trading Unit - One (1) 5,000 bushel Corn futures contract of a
specified contract month on the Chicago Board of Trade. (10/01/94)
3004.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices (the "strikes") in integral multiples of five (5) cents per
bushel per Corn futures contract (i.e., 2.55, 2.60, 2.65, etc.), in integral
multiples of ten (10) cents per bushel per Corn futures contract (i.e., 2.50,
2.60, 2.70, etc.) and in integral multiples of twenty (20) cents per bushel per
Corn futures contract (i.e., 2.80, 3.00, 3.20, etc.) as follows:
1. a. In integral multiples of ten cents, at the commencement of trading
for an option contract, the following strikes shall be listed: one with
a strike closest to the previous day's settlement price of the
underlying Corn futures contract, the next five consecutive higher and
the next five consecutive lower strikes (the "initial band"). If the
previous day's settlement price is midway between two strikes, the
closest price shall be the larger of the two.
b. In integral multiples of twenty cents, at the commencement of trading
for an option contract, the following strikes shall be listed: the next
four consecutive strikes above the initial band.
c. In integral multiples of ten cents, over time, strikes shall be added as
necessary to ensure that all strikes within 55 cents of the previous
day's trading range of the underlying futures contract are listed (the
"minimum band").
d. In integral multiples of twenty cents, over time, strikes shall be added
as necessary to ensure that the next four consecutive strikes above the
minimum band are listed.
e. No new strikes may be added by these procedures in the month in which an
option expires.
2. a. In integral multiples of five cents, at the commencement of trading
for options that are traded in months in which Corn futures are not
traded, and for standard option months, the business day they become the
second deferred month, the following strike prices shall be listed: one
with a strike closest to the previous day's settlement price of the
underlying Corn futures contract and the next five consecutive higher
and the next five consecutive lower strikes. For example, five-cent
strike price intervals for the September 2000 contract month would be
added on June 26, which is the business day after the expiration of the
July
Ch30 Trading Conditions
-----------------------
contract month.
b. Over time, new-five cent strike prices will be added to ensure that at
least five strike prices exist above and below the previous day's
trading range in the underlying futures.
3. All strikes will be listed prior to the opening of trading on the following
business day. The Exchange may modify the procedures for the introduction of
strikes as it deems appropriate in order to respond to market conditions.
(07/01/03)
3005.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (12/01/03)
3006.01 Option Premium Basis - The premium for Corn futures options shall be in
multiples of one-eighth (1/8) of one cent per bushel of a 5,000 bushel Corn
futures contract which shall equal $6.25 per contract.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $6.00 in $1.00 increments per option contract.
(10/01/94)
3007.01 Exercise of Option - The buyer of a Corn futures option may exercise the
option on any business day prior to expiration by giving notice of exercise to
the Clearing Services Provider by 6:00 p.m., or by such other time designated by
the Exchange, on such day. (12/01/03)
3007.02 Automatic Exercise - Notwithstanding the provisions of Regulation
3007.01, after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m., or by such other time designated by the Exchange, on the
last day of trading. (12/01/03)
3007.03 Corrections to Option Exercises - Corrections to option exercises,
including automatic exercises, may be accepted by the Clearing Services Provider
after the 6:00 p.m. deadline and up to the beginning of final option expiration
processing provided that such corrections are necessary due to: (1) a bona fide
clerical error, (2) an unreconciled Exchange option transaction(s), or (3) an
extraordinary circumstance where the clearing firm and customer are unable to
communicate final option exercise instructions prior to the deadline. The
decision whether a correction is acceptable will be made by the President of the
Clearing Services Provider, or the President's designee, and such decision will
be final. (12/01/03)
3008.01 Expiration of Option - Unexercised Corn futures options shall expire at
7:00 p.m. on the last day of trading. (12/01/03)
3009.01 Months Traded - Trading may be conducted in the nearby Corn futures
options contract
Ch30 Trading Conditions
-----------------------
month plus any succeeding months, provided however, that the Exchange may
determine not to list a contract month. For options that are traded in months in
which Corn futures are not trading underlying futures contract is the next
futures contract that is nearest to the expiration of the option. For example,
the underlying futures contract for the February option contract is the March
futures contract. (09/01/00)
3010.01 Trading Hours - The hours of trading of options on Corn futures
contracts shall be determined by the Board. On the last day of trading in an
expiring option, the closing time for such options shall be the same as close of
trading of the Regular Daytime open outcry trading session for the corresponding
Corn futures contract, subject to the provisions of the second paragraph of Rule
1007.00. On the last day of trading in an expiring option, the expiring Corn
futures options shall be closed with a public call made striking price by
striking price, conducted by such persons as the Regulatory Compliance Committee
shall direct. On all other days, Corn futures options shall be opened and closed
for all months and striking prices simultaneously or in such a manner as the
Regulatory Compliance Committee shall direct. (03/01/00)
3011.01 Position Limits - (See Regulation 425.01) (10/01/00)
3012.01 Margin Requirements - (See Regulation 431.05) (10/01/94)
3013.01 Last Day of Trading - No trades in Corn futures options expiring in the
current month shall be made after the close of trading of the Regular Daytime
open outcry trading session for the corresponding Corn futures contract on the
last Friday which precedes by at least two business days, the last business day
of the month preceding the option month. If such Friday is not a business day,
the last day of trading shall be the business day prior to such Friday.
(07/01/01)
3014.01 Option Premium Fluctuation Limits - Trading is prohibited during any day
except for the last day of trading in a Corn futures option at a premium of more
than the trading limit for the Corn futures contract above and below the
previous day's settlement premium for that option as determined by the Clearing
Services Provider. On the first day of trading, limits shall be set from the
lowest premium of the opening range. (12/01/03)
================================================================================
Chapter 31
Wheat Futures Options
================================================================================
Ch31 Trading Conditions.................................
3101.00 Authority.................................
3101.01 Application of Regulations................
3102.01 Nature of Wheat Futures Put Options.......
3102.02 Nature of Wheat Futures Call Options......
3103.01 Trading Unit..............................
3104.01 Striking Prices...........................
3105.01 Payment of Option Premium.................
3106.01 Option Premium Basis......................
3107.01 Exercise of Option........................
3107.02 Automatic Exercise........................
3107.03 Corrections to Option Exercises...........
3108.01 Expiration of Option......................
3109.01 Months Traded.............................
3110.01 Trading Hours.............................
3111.01 Position Limits...........................
3112.01 Margin Requirements.......................
3113.01 Last Day of Trading.......................
3114.01 Option Premium Fluctuation Limits.........
================================================================================
Chapter 31
Wheat Futures Options
================================================================================
Ch31 Trading Conditions
3101.00 Authority - (See Rule 2801.00). (10/01/94)
3101.01 Application of Regulations - Transactions in put and call options on
Wheat futures contracts shall be subject to the general rules of the Association
as far as applicable and shall also be subject to the regulations contained in
this chapter which are exclusively applicable to trading in put and call options
on Wheat futures contracts. (See Rule 490.00). (10/01/94)
3102.01 Nature of Wheat Futures Put Options - The buyer of one (1) Wheat
futures put option may exercise his option at any time prior to expiration,
(subject to Regulation 3107.01), to assume a short position in one (1) Wheat
futures contract of a specified contract month at a striking price set at the
time the option was purchased. The seller of one (1) Wheat futures put option
incurs the obligation of assuming a long position in one (1) Wheat futures
contract of a specified contract month at a striking price set at the time the
option was sold, upon exercise by a put option buyer. (10/01/94)
3102.02 Nature of Wheat Futures Call Options - The buyer of one (1) Wheat
futures call option may exercise his option at any time prior to expiration,
(subject to Regulation 3107.01), to assume a long position in one (1) Wheat
futures contract of a specified contract month at a striking price set at the
time the option was purchased. The seller of one (1) Wheat futures call option
incurs the obligation of assuming a short position in one (1) Wheat futures
contract of a specified contract month at a striking price set at the time the
option was sold, upon exercise by a call option buyer. (10/01/94)
3103.01 Trading Unit - One (1) 5,000 bushel Wheat futures contract of a
specified contract month on the Chicago Board of Trade. (10/01/94)
3104.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices (the "strikes") in integral multiples of five (5) cents per
bushel per Wheat futures contract (i.e. 3.70, 3.75, 3.80, etc.), in integral
multiples of ten (10) cents per bushel per Wheat futures contract (i.e., 3.70,
3.80, 3.90, etc.) and in integral multiples of twenty (20) cents per bushel per
Wheat futures contract (i.e., 4.00, 4.20, 4.40, etc.) as follows:
1. a. In integral multiples of ten cents, at the commencement of trading for
an option contract, the following strikes shall be listed: one with a
strike closest to the previous day's settlement price of the underlying
Wheat futures contract, the next five consecutive higher and the next
five consecutive lower strikes (the "initial band"). If the previous
day's settlement price is midway between two strikes, the closest price
shall be the larger of the two.
b. In integral multiples of twenty cents, at the commencement of trading
for an option contract, the following strikes shall be listed: the next
four consecutive strikes above the initial band.
c. In integral multiples of ten cents, over time, strikes shall be added
as necessary to ensure that all strikes within 55 cents of the previous
day's trading range of the underlying futures contract are listed (the
"minimum band").
d. In integral multiples of twenty cents, over time, strikes shall be
added as necessary to ensure that the next four consecutive strikes
above the minimum band are listed.
e. No new strikes may be added by these procedures in the month in which
an option expires.
2. a. In integral multiples of five cents, at the commencement of trading for
options that are traded in months in which Wheat futures are not
traded, and for standard option months, the business day they become
the second deferred month, the following strike prices shall be listed:
one with a strike closest to the previous day's settlement price of the
underlying Wheat futures contract and the next five consecutive higher
and the next five consecutive lower strikes. For example, five-cent
strike price intervals for the September 2000 contract month would be
added on June 26, which is the business day after the expiration of the
July
Ch31 Trading Conditions
-----------------------
contract month.
b. Over time, new five-cent strike prices will be added to ensure that at
least five strike prices exist above and below the previous day's
trading range in the underlying futures.
3. All strikes will be listed prior to the opening of trading on the following
business day. The Exchange may modify the procedures for the introduction
of strikes as it deems appropriate in order to respond to market
conditions. (07/01/03)
3105.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (12/01/03)
3106.01 Option Premium Basis - The premium for Wheat futures options shall be
in multiples of one-eighth (1/8) of one cent per bushel of a 5,000 bushel Wheat
futures contract which shall equal $6.25 per contract.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $6.00 in $1.00 increments per option contract.
(10/01/94)
3107.01 Exercise of Option - The buyer of a Wheat futures option may exercise
the option on any business day prior to expiration by giving notice of exercise
to the Clearing Services Provider by 6:00 p.m., or by such other time designated
by the Exchange, on such day. (12/01/03)
3107.02 Automatic Exercise - Notwithstanding the provisions of Regulation
3107.01, after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m., or by such other time designated by the Exchange, on the
last day of trading. (12/01/03)
3107.03 Corrections to Option Exercises - Corrections to option exercises,
including automatic exercises, may be accepted by the Clearing Services Provider
after the 6:00 p.m. deadline and up to the beginning of final option expiration
processing provided that such corrections are necessary due to: (1) a bona fide
clerical error, (2) an unreconciled Exchange option transaction(s), or (3) an
extraordinary circumstance where the clearing firm and customer are unable to
communicate final option exercise instructions prior to the deadline. The
decision whether a correction is acceptable will be made by the President of the
Clearing Services Provider, or the President's designee, and such decision will
be final. (12/01/03
3108.01 Expiration of Option - Unexercised Wheat futures options shall expire at
7:00 p.m. on the last day of trading. (12/01/03)
3109.01 Months Traded - Trading may be conducted in the nearby Wheat futures
options
Ch31 Trading Conditions
-----------------------
contract month plus any succeeding months, provided however, that the Exchange
may determine not to list a contract month. For options that are traded in
months in which Wheat futures are not traded, the underlying futures contract is
the next futures contract that is nearest to the expiration of the option. For
example, the underlying futures contract for the February option contract is the
March futures contract. (09/01/00)
3110.01 Trading Hours - The hours of trading of options on Wheat futures
contracts shall be determined by the Board. On the last day of trading in an
expiring option, the closing time for such options shall be the same as the
close of trading of the Regular Daytime open outcry trading session for the
corresponding Wheat futures contract, subject to the provisions of the second
paragraph of Rule 1007.00. On the last day of trading in an expiring option, the
expiring Wheat futures options shall be closed with a public call made striking
price by striking price, conducted by such persons as the Regulatory Compliance
Committee shall direct. On all other days, Wheat futures options shall be opened
and closed for all months and striking prices simultaneously or in such a manner
as the Regulatory Compliance Committee shall direct. (03/01/00)
3111.01 Position Limits - (See Regulation 425.01) (10/01/00)
3112.01 Margin Requirements - (See Regulation 431.05) (10/01/94)
3113.01 Last Day of Trading - No trades in Wheat futures options expiring in
the current month shall be made after the close of trading of the Regular
Daytime open outcry trading session for the corresponding Wheat futures contract
on the last Friday which precedes by at least two business days, the last
business day of the month preceding the option month. If such Friday is not a
business day, the last day of trading shall be the business day prior to such
Friday. (07/01/01)
3114.01 Option Premium Fluctuation Limits - Trading is prohibited during any day
except for the last day of trading in a Wheat futures option at a premium of
more than the trading limit for the Wheat futures contract above and below the
previous day's settlement premium for that option as determined by the Clearing
Services Provider. On the first day of trading, limits shall be set from the
lowest premium of the opening range. (12/01/03)
================================================================================
Chapter 32
Soybean Oil Futures Options
================================================================================
Ch32 Trading Conditions...................................
3201.00 Authority...................................
3201.01 Application of Regulations..................
3202.01 Nature of Soybean Oil Futures Put Options...
3202.02 Nature of Soybean Oil Futures Call Options..
3203.01 Trading Unit................................
3204.01 Striking Prices.............................
3205.01 Payment of Option Premium...................
3206.01 Option Premium Basis........................
3207.01 Exercise of Option..........................
3207.02 Automatic Exercise..........................
3207.03 Corrections of Option Exercises.............
3208.01 Expiration of Option........................
3209.01 Months Traded...............................
3210.01 Trading Hours...............................
3211.01 Position Limits and Reportable Positions....
3212.01 Margin Requirements.........................
3213.01 Last Day of Trading.........................
3214.01 Option Premium Fluctuation Limits...........
================================================================================
Chapter 32
Soybean Oil Futures Options
================================================================================
Ch32 Trading Conditions
3201.00 Authority - (See Rule 2801.00). (10/01/94)
3201.01 Application of Regulations - Transactions in put and call options on
Soybean Oil futures contracts shall be subject to the general rules of the
Association as far as applicable and shall also be subject to the regulations
contained in this chapter which are exclusively applicable to trading in put and
call options on Soybean Oil futures contracts. (See Rule 490.00). (10/01/94)
3202.01 Nature of Soybean Oil Futures Put Options - The buyer of one (1)
Soybean Oil futures put option may exercise his option at any time prior to
expiration, (subject to Regulation 3207.01), to assume a short position in one
(1) Soybean Oil futures contract of a specified contract month at a striking
price set at the time the option was purchased. The seller of one (1) Soybean
Oil futures put option incurs the obligation of assuming a long position in one
(1) Soybean Oil futures contract of a specified contract month at a striking
price set at the time the option was sold, upon exercise by a put option buyer.
(10/01/94)
3202.02 Nature of Soybean Oil Futures Call Options - The buyer of one (1)
Soybean Oil futures call option may exercise his option at any time prior to
expiration, (subject to Regulation 3207.01), to assume a long position in one
(1) Soybean Oil futures contract of a specified contract month at a striking
price set at the time the option was purchased. The seller of one (1) Soybean
Oil futures call option incurs the obligation of assuming a short position in
one (1) Soybean Oil futures contract of a specified contract month at a striking
price set at the time the option was sold, upon exercise by a call option buyer.
(10/01/94)
3203.01 Trading Unit - One (1) 60,000 pound Soybean Oil futures contract of a
specified contract month on the Chicago Board of Trade. (10/01/94)
3204.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices (the "strikes") in integral multiples of one-half cent per
pound per Soybean Oil futures contract (i.e., .210, .215, .220, etc.) for all
strikes less than thirty cents and in integral multiples of one cent per pound
per Soybean Oil futures contract (i.e., .300, .310, .320, etc.) for all strikes
greater than or equal to thirty cents (the "first tier"); and in integral
multiples of one cent per pound per Soybean Oil futures contract (i.e., .210,
..220, .230, etc.) for all strikes less than thirty cents and in integral
multiples of two cents per pound per Soybean Oil futures contract (i.e., .320,
..340, .360, etc.) for all strikes greater than or equal to thirty cents (the
"second tier") as follows:
1. a. Per the first tier, at the commencement of trading for an option
contract, the following strikes shall be listed: one with a strike
closest to the previous day's settlement price of the underlying
Soybean Oil futures contract and a consecutive series within 5.5 cents
above and below that strike (the "initial band"). If the previous day's
settlement price is midway between two strikes, the closest price shall
be the larger of the two.
b. Per the second tier, at the commencement of trading for an option
contract, the following strikes shall be listed: the next four
consecutive strikes above the initial band.
c. Per the first tier, over time, strikes shall be added as necessary to
insure that all strikes within 5.5 cents of the previous day's trading
range of the underlying futures contract are listed (the "minimum
band").
d. Per the second tier, over time, strikes shall be added as necessary to
insure that the next four consecutive strikes above the minimum band
are listed.
e. No new strikes may be added by these procedures in the month in which
an option expires.
Ch32 Trading Conditions
-----------------------
2. All strikes will be listed prior to the opening of trading on the following
business day. The Exchange may modify the procedures for the introduction
of strikes as it deems appropriate in order to respond to market
conditions. (07/01/03)
3205.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (12/01/03)
3206.01 Option Premium Basis - The premium for Soybean Oil futures options
shall be in multiples of five thousandths (5/1000) of one cent per pound of a
60,000 pound Soybean Oil futures contract which shall equal $3.00 per contract.
However, when both sides of the trade are closing transactions, the option
premium may be equal to $1.00 or $2.00 per option contract. (10/01/94)
3207.01 Exercise of Option - The buyer of a Soybean Oil futures option may
exercise the option on any business day prior to expiration by giving notice of
exercise to the Clearing Service Provider by 6:00 p.m., or by such other time
designated by the Exchange, on such day. (12/01/03)
3207.02 Automatic Exercise - Notwithstanding the provisions of Regulation
3207.01, after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m., or by such other time designated by the Exchange, on the
last day of trading. (12/01/03)
3207.03 Corrections to Option Exercises - Corrections to option exercises,
including automatic exercises, may be accepted by the Clearing Services Provider
after the 6:00 p.m. deadline and up to the beginning of final option expiration
processing provided that such corrections are necessary due to: (1) a bona fide
clerical error, (2) an unreconciled Exchange option transaction(s), or (3) an
extraordinary circumstance where the clearing firm and customer are unable to
communicate final option exercise instructions prior to the deadline. The
decision whether a correction is acceptable will be made by the President of the
Clearing Services Provider, or the President's designee, and such decision will
be final (12/01/03)
3208.01 Expiration of Option - Unexercised Soybean Oil futures options shall
expire at 7:00 p.m. on the last day of trading. (12/01/03)
3209.01 Months Traded - Trading may be conducted in the nearby Soybean Oil
futures options contract month plus any succeeding months, provided however,
that the Exchange may determine not to list a contract month. For options that
are traded in months in which Soybean Oil futures are not traded, the underlying
futures contract is the next futures contract that is nearest to the expiration
of the option. For example, the underlying futures contract for the February
option contract is the March futures contract. (09/01/00)
3210.01 Trading Hours - The hours of trading of options on Soybean Oil futures
contracts shall be determined by the Board. On the last day of trading in an
expiring option, the closing time for such options shall be the same as the
close of trading of the Regular Daytime open outcry trading session for the
corresponding Soybean Oil futures contract, subject to the provisions of the
second paragraph
Ch32 Trading Conditions
-----------------------
of Rule 1007.00. On the last day of trading in an expiring option, the expiring
Soybean Oil futures options shall be closed with a public call made striking
price by striking price, conducted by such persons as the Regulatory Compliance
Committee shall direct. On all other days, Soybean Oil futures options shall be
opened and closed for all months and striking prices simultaneously or in such a
manner as the Regulatory Compliance Committee shall direct. (03/01/00)
3211.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(10/01/00)
3212.01 Margin Requirements - (See Regulation 431.05) (10/01/94)
3213.01 Last Day of Trading - No trades in Soybean Oil futures options expiring
in the current month shall be made after the close of trading of the Regular
Daytime open outcry trading session for the corresponding Soybean Oil futures
contract on the last Friday which precedes by at least two business days, the
last business day of the month preceding the option month. If such Friday is not
a business day, the last day of trading shall be the business day prior to such
Friday. (07/01/01)
3214.01 Option Premium Fluctuation Limits - Trading is prohibited during any day
except for the last day of trading in a Soybean Oil futures option at a premium
of more than the trading limit for the Soybean Oil futures contract above and
below the previous day's settlement premium for that option as determined by the
Clearing Services Provider. On the first day of trading, limits shall be set
from the lowest premium of the opening range. (12/01/03)
================================================================================
Chapter 33
Soybean Meal Futures Options
================================================================================
Ch33 Trading Conditions......................................
3301.00 Authority......................................
3301.01 Application of Regulations.....................
3302.01 Nature of Soybean Meal Futures Put Options.....
3302.02 Nature of Soybean Meal Futures Call Options....
3303.01 Trading Unit...................................
3304.01 Striking Prices................................
3305.01 Payment of Option Premium......................
3306.01 Option Premium Basis...........................
3307.01 Exercise of Option.............................
3307.02 Automatic Exercise.............................
3307.03 Corrections to Option Exercise.................
3308.01 Expiration of Option...........................
3309.01 Months Traded..................................
3310.01 Trading Hours..................................
3311.01 Position Limits and Reportable Positions.......
3312.01 Margin Requirements............................
3313.01 Last Day of Trading............................
3314.01 Option Premium Fluctuation Limits..............
================================================================================
Chapter 33
Soybean Meal Futures Options
================================================================================
Ch33 Trading Conditions
3301.00 Authority - (See Rule 2801.00). (10/01/94)
3301.01 Application of Regulations - Transactions in put and call options on
Soybean Meal futures contracts shall be subject to the general rules of the
Association as far as applicable and shall also be subject to the regulations
contained in this chapter which are exclusively applicable to trading in put and
call options on Soybean Meal futures contracts. (See Rule 490.00). (10/01/94)
3302.01 Nature of Soybean Meal Futures Put Options - The buyer of one (1)
Soybean Meal futures put option may exercise his option at any time prior to
expiration, (subject to Regulation 3307.01), to assume a short position in one
(1) Soybean Meal futures contract of a specified contract month at a striking
price set at the time the option was purchased. The seller of one (1) Soybean
Meal futures put option incurs the obligation of assuming a long position in one
(1) Soybean Meal futures contract of a specified contract month at a striking
price set at the time the option was sold, upon exercise by a put option buyer.
(10/01/94)
3302.02 Nature of Soybean Meal Futures Call Options - The buyer of one (1)
Soybean Meal futures call option may exercise his option at any time prior to
expiration, (subject to Regulation 3307.01), to assume a long position in one
(1) Soybean Meal futures contract of a specified contract month at a striking
price set at the time the option was purchased. The seller of one (1) Soybean
Meal futures call option incurs the obligation of assuming a short position in
one (1) Soybean Meal futures contract of a specified contract month at a
striking price set at the time the option was sold, upon exercise by a call
option buyer. (10/01/94)
3303.01 Trading Unit - One (1)100 ton Soybean Meal futures contract of a
specified contract month on the Chicago Board of Trade. (10/01/94)
3304.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices (the "strikes") in integral multiples of five (5) dollars
per ton per Soybean Meal futures contract (i.e., 185, 190, 195, etc.) for all
strikes less than two hundred dollars and in integral multiples of ten (10)
dollars per ton per Soybean Meal futures contract (i.e., 200, 210, 220, etc.)
for all strikes greater than or equal to two hundred dollars (the "first tier");
and in integral multiples of ten (10) dollars per ton per Soybean Meal futures
contract (i.e., 200, 210, 220, etc.) for all strikes less than two hundred
dollars and in integral multiples of twenty (20) dollars per ton per Soybean
Meal futures contract (i.e., 200, 220, 240, etc.) for all strikes greater than
or equal to two hundred dollars (the "second tier") as follows:
1. a. Per the first tier, at the commencement of trading for an option
contract, the following strikes shall be listed: one with a strike
closest to the previous day's settlement price of the underlying
Soybean Meal futures contract, the next ten consecutive higher strikes
and the next ten consecutive lower strikes (the "initial band"). If the
previous day's settlement price is midway between two strikes, the
closest price shall be the larger of the two.
b. Per the second tier, at the commencement of trading for an option
contract, the following strikes shall be listed: the next four
consecutive strikes above the initial band.
Ch33 Trading Conditions
-----------------------
c. Per the first tier, over time, strikes shall be added as necessary to
insure that at least ten strikes above and below the previous day's
trading range of the underlying futures are listed (the "minimum
band").
d. Per the second tier, over time, strikes shall be added as necessary to
insure that the next four consecutive strikes above the minimum band
are listed.
e. No new strikes may be added by these procedures in the month in which
an option expires.
3. All strikes will be listed prior to the opening of trading on the following
business day. The Exchange may modify the procedures for the introduction of
strikes as it deems appropriate in order to respond to market conditions.
(07/01/03)
3305.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (12/01/03)
3306.01 Option Premium Basis - The premium for Soybean Meal futures options
shall be in multiples of five (5) cents per ton of a 100 ton Soybean Meal
futures contract which shall equal $5.00 per contract.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $4.00 in $1.00 increments per option contract.
(10/01/94)
3307.01 Exercise of Option - The buyer of a Soybean Meal futures option may
exercise the option on any business day prior to expiration by giving notice of
exercise to the Clearing Services Provider by 6:00 p.m., or at such other time
designated by the Exchange, on such day. (12/01/03)
3307.02 Automatic Exercise - Notwithstanding the provisions of Regulation
3307.01, after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m., or at such other time designated by the Exchange, on the
last day of trading. (12/01/03)
3307.03 Correction to Option Exercises - Correction to option exercises,
including automatic exercises, may be accepted by the Clearing Services Provider
after the 6:00 p.m. deadline and up to the beginning of final option expiration
processing provided that such corrections are necessary due to: (1) a bona fide
clercial errror, (2) an unreconciled Exchange option transaction(s), or (3) an
extraordinary circumstance where the clearing firm and customer are unable to
communicate final option exercise instructions prior to the deadline. The
decision whether a correction is acceptable will be made by the President of the
Clearing Services Provider, or the President's designee, and such decision will
be final. (12/01/03)
3308.01 Expiration of Option - Unexercised Soybean Meal futures options shall
expire at 7:00 p.m. on the last day of trading. (12/01/03)
3309.01 Months Traded - Trading may be conducted in the nearby Soybean Meal
futures options contract month plus any succeeding months, provided however,
that the Exchange may determine not to list a contract month. For options that
are traded in months in which Soybean Meal futures are not traded, the
underlying futures contract is the next futures contract that is nearest to the
expiration of the option. For example, the underlying futures contract for the
February option contract is the March futures contract. (09/01/00)
3310.01 Trading Hours - The hours of trading of options on Soybean Meal futures
contracts shall be determined by the Board. On the last day of trading in an
expiring option, the closing time for such options shall be the same as the
close of trading of the Regular Daytime open outcry trading session for the
corresponding Soybean Meal futures contract, subject to the provisions of the
second paragraph of Rule 1007.00. On the last day of trading in an expiring
option, the expiring Soybean Meal futures options shall be closed with a public
call made striking price by striking price, conducted by such persons as the
Regulatory Compliance Committee shall direct. On all other days, Soybean Meal
futures options shall be opened and closed for all months and striking prices
simultaneously or in such a manner as the Regulatory Compliance Committee shall
direct. (03/01/00)
3311.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(10/01/00)
3312.01 Margin Requirements - (See Regulation 431.03) (10/01/94)
3313.01 Last Day of Trading - No trades in Soybean Meal futures options
expiring in the current month shall be made after the close of trading of the
Regular Daytime open outcry trading session for the corresponding Soybean Meal
futures contract on the last Friday which precedes by at least two business
days, the last business day of the month preceding the option month. If such
Friday is not a business day, the last day of trading shall be the business day
prior to such Friday. (07/01/01)
3314.01 Option Premium Fluctuation Limits - Trading is prohibited during any
day except for the last day of trading in a Soybean Meal futures option at a
premium of more than the trading limit for the Soybean Meal futures contract
above and below the previous day's settlement premium for that option as
determined by the Clearing Services Provider. On the first day of trading,
limits shall be set from the lowest premium of the opening range. (12/01/03)
[Enlarge/Download Table]
===============================================================================================================
Chapter 35A (Standard Options)
Medium Term U.S. Treasury Note Futures Options
===============================================================================================================
Ch35A Trading Conditions..........................................................................3502A
A3501.00 Authority.....................................................................3502A
A3501.01 Application of Regulations....................................................3502A
A3502.01 Nature of Medium Term U.S. Treasury Note Futures Put Options..................3502A
A3502.02 Nature of Medium Term U.S. Treasury Note Futures Call Options.................3502A
A3503.01 Trading Unit..................................................................3502A
A3504.01 Striking Prices...............................................................3502A
A3505.01 Payment of Option Premium.....................................................3503A
A3506.01 Option Premium Basis..........................................................3503A
A3507.01 Exercise of Option............................................................3503A
A3507.02 Automatic Exercise............................................................3503A
A3507.03 Corrections to Option exercise................................................3503A
A3508.01 Expiration of Option..........................................................3503A
A3509.01 Months Traded In..............................................................3503A
A3510.01 Trading Hours.................................................................3503A
A3511.01 Position Limits and Reportable Positions......................................3504A
A3512.01 Margin Requirements...........................................................3504A
A3513.01 Last Day of Trading...........................................................3504A
3501A
================================================================================
Chapter 35A (Standard Options)
Medium Term U.S. Treasury Note Futures Options
================================================================================
Ch35A Trading Conditions
A3501.00 Authority - (See Rule 2801.00.) (10/01/94)
A3501.01 Application of Regulations - Transactions in put and call options on
Medium Term U.S. Treasury Note futures contracts shall be subject to the general
rules of the Association as far as applicable and shall also be subject to the
regulations contained in this Chapter which are exclusively applicable to
trading in put and call options on Medium Term U.S. Treasury Note futures
contracts. (See Rule 490.00.) (09/01/00)
A3502.01 Nature of Medium Term U.S. Treasury Note Futures Put Options - The
buyer of one (1) Medium Term U.S. Treasury Note futures put option may exercise
his option at any time prior to expiration (subject to Regulation 3507.01), to
assume a short position in one (1) Medium Term U.S. Treasury Note futures
contract of a specified contract month at a striking price set at the time the
option was purchased. The seller of one (1) Medium Term U.S. Treasury Note
futures put option incurs the obligation of assuming a long position in one (1)
Medium Term U.S. Treasury Note futures contract of a specified contract month at
a striking price set at the time the option was sold, upon exercise by a put
option buyer. (10/01/94)
A3502.02 Nature of Medium Term U.S. Treasury Note Futures Call Options - The
buyer of one (1) Medium Term U.S. Treasury Note futures call option may exercise
his option at any time prior to expiration (subject to Regulation 3507.01), to
assume a long position in one (1) Medium Term U.S. Treasury Note futures
contract of a specified contract month at a striking price set at the time the
option was purchased. The seller of one (1) Medium Term U.S. Treasury Note
futures call option incurs the obligation of assuming a short position in one
(1) Medium Term U.S. Treasury Note futures call option incurs the obligation of
assuming a short position in one (1) Medium Term U.S. Treasury Note futures
contract of a specified contract month at a striking price set at the time the
option was sold, upon exercise by a call option buyer. (10/01/94)
A3503.01 Trading Unit - One (1) Medium Term U.S. Treasury Note futures contract
of a specified contract month on the Chicago Board of Trade. (10/01/94)
A3504.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices in integral multiples of one-half (1/2) point per Medium
Term U.S. Treasury Note futures contract. At the commencement of trading for
such option contracts, the following striking prices shall be listed: one with a
striking price closest to the previous day's settlement price on the underlying
Medium Term U.S. Treasury Note futures contract, the next fifteen (15)
consecutive higher and the next fifteen (15) consecutive lower striking prices
closest to the previous day's settlement price. If the previous day's settlement
price is midway between two striking prices, the closest price shall be the
larger of the two. Over time, new striking prices will be added to ensure that
at least fifteen (15) striking prices always exist above and below the previous
day's settlement price on the underlying futures. All new striking prices will
be added prior to the opening of trading on the following business day.
The Exchange may modify the procedure for the introduction of striking prices as
it deems appropriate in order to respond to market conditions. (04/01/04)
A3505.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (01/01/04)
3502A
Ch35A Trading Conditions
------------------------
A3506.01 Option Premium Basis - The premium for Medium Term U.S. Treasury Note
futures options shall be in multiples of one sixty-fourth (1/64) of one point
($1,000) of a Medium Term U. S. Treasury Note futures contract which shall equal
$15.625 per 1/64 and $1,000 per full point.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $15.00 in $1.00 increments per option contract
If options are quoted in volatility terms, the minimum price fluctuation shall
be .10 percent (i.e.-10.0%, 10.1%, 10.2%, etc.) (07/01/03)
A3507.01 Exercise of Option - The buyer of a Medium Term U.S. Treasury Note
futures option may exercise the option on any business day prior to expiration
by giving notice of exercise to the Clearing Services Provider by 6:00 p.m., or
by such other time designated by the Exchange on such day.
(01/01/04)
A3507.02 Automatic Exercise - Notwithstanding the provisions of Regulation
3507.01, after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m., or by such other time designated by the Exchange, on the
last day of trading.
(01/01/04)
A3507.03 Corrections to Option Exercises - Corrections to option exercises,
including automatic exercises, may be accepted by the Clearing Services Provider
after the 6:00 p.m. deadline and up to the beginning of final option expiration
processing provided that such corrections are necessary due to: (1) a bona fide
clerical error, (2) an unreconciled Exchange options transaction(s), or (3) an
extraordinary circumstance where the clearing firm and customer are unable to
communicate final option exercise instructions prior to the deadline. The
decision whether a correction is acceptable will be made by the President of the
Clearing Services Provider, or the President's designee, and such decision will
be final. (01/01/04)
A3508.01 Expiration of Option - Unexercised Medium Term U.S. Treasury Note
futures options shall expire at 7:00 p.m. on the last day of trading. (01/01/04)
A3509.01 Months Traded In - Trading may be conducted in Medium Term U.S.
Treasury Note futures options for a thirty-six month period extending from the
nearby contract month, provided however, that the Exchange may determine not to
list a contract month. Both serial and quarterly options may be listed to expire
into either front-month or deferred futures as determined by the Board.
(06/01/99)
A3510.01 Trading Hours - The hours of trading of options on Medium Term U.S.
Treasury Note futures contracts shall be determined by the Board. On the last
day of trading in an expiring option, the closing time for such options shall be
the same as the close of trading of the Regular Daytime open outcry trading
session for the corresponding Medium Term U.S. Treasury Note futures contract,
subject to the provisions of the second paragraph of Rule 1007.00. Medium Term
U.S. Treasury Note futures options shall be opened and closed for all months and
strike prices simultaneously or in such a manner as the Regulatory Compliance
Committee shall direct. (04/01/00)
A3511.01 Position Limits and Reportable Positions - (See Regulation 425.01.)
(10/01/00)
A3512.01 Margin Requirements - (See Regulation 431.05.) (10/01/94)
A3513.01 Last Day of Trading - No trades in Medium Term U.S. Treasury Note
futures put and call options expiring in the current month shall be made after
the close of trading of the Regular Daytime open outcry trading session for the
corresponding U.S. Treasury Bond futures contract on the last Friday which
precedes by at least two business days, the last business day of the month
Ch35A Trading Conditions
------------------------
preceding the option month. If such Friday is not a business day, or there is a
Friday which is not a business day which precedes by one business day the last
business day of the month preceding the option month, the last day of trading
will be the business day prior to such Friday. (07/01/01)
[Enlarge/Download Table]
================================================================================================================
Chapter 35B (Flexible Options)
Medium Term Treasury Note Flexible Options
----------------------------------------------------------------------------------------------------------------
================================================================================================================
Ch35B Trading Conditions..........................................................................3506B
B3502.03 Nature of Flexible Options....................................................3506B
B3503.01 Trading Unit..................................................................3506B
B3504.01 Strike Prices.................................................................3506B
B3507.01 Exercise of Flexible Options..................................................3506B
B3507.02 Automatic Exercise............................................................3506B
B3508.01 Expiration Date...............................................................3507B
B3509.01 Months Traded In..............................................................3507B
B3513.01 Last Day of Trading...........................................................3507B
B3516.01 Underlying Futures Contract for Flexible Options..............................3507B
B3517.01 Initiating a Flexible Option Contract Series..................................3507B
B3519.01 RFQ Trading Interval..........................................................3507B
B3520.01 Expiration of an RFQ..........................................................3507B
B3521.01 Reporting of Flexible Option Trades...........................................3507B
3505B
================================================================================
Chapter 35B (Flexible Options)
Medium Term Treasury Note Flexible Options
--------------------------------------------------------------------------------
================================================================================
Note: The following Flexible option regulations with the exception
noted in the second paragraph of Regulation 3502.03 supersede the
corresponding standard regulations presented in Part A of this
chapter. Regulations 3501.00, 3501.01, 3502.01, 3502.02, 3501.01,
3506.01, 3510.01, 3511.01, 3512.01, and 3514.01 remain in effect
for both standard and Flexible options.
Ch35B Trading Conditions
B3502.03 Nature of Flexible Options - Flexible options on Medium Term Treasury
Note futures shall be permitted in puts and calls which do not have the same
underlying futures contract, same strike price, same exercise style, and same
last day of trading as standard options.
However, Flexible Options on Medium Term Treasury Note futures shall also be
permitted in puts and calls which have the same underlying futures contract,
same strike price, same exercise style, and same last day of trading as standard
options that are not at the time listed for trading in the standard options pit
or on e-cbot. All Flexible Option regulations except 3507.01, 3507.02, 3508.01
and 3513.01 will pertain for these options.*
Trading shall be permitted in any CBOT recognized option/option or
option/futures spread involving puts, calls or futures. (09/01/00)
B3503.01 Trading Unit - The minimum size for requesting a quote and/or trading
in a flexible option series is 50 contracts, where each contract represents one
of the underlying futures contracts at the Chicago Board of Trade. Parties may
request a quote and/or trade for less than 50 contracts in order to entirely
close out a position in a flexible series.
For a flexible options series, respondents to a request for quote, must be
willing to trade at least 50 contracts, with the exception that a respondent may
trade less than 50 contracts if the respondent is entirely closing out a
position in the series. (07/01/99)
B3504.01 Strike Prices - Strike prices for flexible options must be specified
in points and 64th's of points per Medium Term Treasury Note futures contract.
However, for a Request for Quote (RFQ), strike prices may be specified in one
64th point increments relative to the underlying futures contract. Strike prices
cannot be outside the range of the currently listed strike prices for standard
options. (06/01/95)
B3507.01 Exercise of Flexible Options - Notification of the intent to exercise a
flexible option must be received by the Clearing Services Provider by 6:00 p.m.
Chicago time, or by such other time designated by the Exchange. No exceptions to
the 6:00 p.m. exercise deadline, or such other deadline designated by the
Exchange, shall be permitted.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 3502.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B3507.02 Automatic Exercise - After the close on the last day of trading, all
in-the-money flexible options will be automatically exercised unless notice to
cancel automatic exercise is given to the Clearing Services Provider by 6:00
p.m., or by such other time designated by the Exchange, on that day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 3502.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B3508.01 Expiration Date - Flexible option expiration may be specified for any
Monday through Friday that is not an Exchange holiday except that expiration may
not occur following the last Friday that precedes by at least two business days
the last business day of the calendar month
preceding the underlying future contract month. Flexible options expire at 7:00
p.m. on the last trading day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 3502.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B3509.01 Months Traded In - Trading may be conducted in flexible options in any
month through the most distant underlying futures contract in which a trade has
occurred. (10/01/94)
B3513.01 Last Day of Trading - The last day of trading in a flexible option
shall be the expiration day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 3502.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (05/01/94)
B3515.01 Exercise Style - Flexible options may be American or European exercise
style. (10/01/94)
B3516.01 Underlying Futures Contract for Flexible Options - The underlying
futures contract for a flexible option shall be the same as the underlying
futures contract month of the nearest March quarterly cycle standard futures
option expiring on or after the expiration of the flexible option. (10/01/94)
B3517.01 Initiating a Flexible Option Contract Series - The opening of trading
in any flexible option series shall occur through the submission of an RFQ or at
such time that a trade takes place in the particular flexible option series.
If so desired, participants can submit additional RFQ's for any open series.
However, in this situation no priority period (Regulation 3519.01) will exist.
(02/01/01)
B3519.01 RFQ Trading Interval - If the submitter of the first RFQ of the day in
a flexible series requests either a bid or an offer but not both, then they
shall have up to a one minute priority period during which they shall have the
sole right to either buy or sell as specified in their RFQ. The exact length of
the priority period shall be determined by the Exchange.
If more than one RFQ is the first RFQ of the day in a flexible series, all the
RFQ's individually ask for either a bid or an offer but not both, and all the
RFQ's collectively are for the same side of the market (all bids or all offers)
then the submitters shall jointly share priority during the priority period.
Priority for RFQ's is determined by submission to the RFQ official, except that
all RFQ's submitted before the open shall be treated equally. (02/01/01)
B3520.01 Expiration of an RFQ - Trading in a given flexible option series
following an RFQ shall remain open for the remainder of the trading session.
Trading in a given flexible option series following a transaction in that series
shall remain open through the remainder of the trading session in which the
transaction was executed and through each subsequent session in which there is
open interest in the flexible option series. (02/01/01)
B3521.01 Reporting of Flexible Option Trades - It shall be the responsibility
of the participants in a flexible option trade to report the quantities and
prices to the flexible pit reporter in a timely manner, including any later
trades in open flexible contract term series. (10/01/94)
* The effect of the second paragraph of Regulation 3502.03 is to permit
trading in standard option under certain Flexible trading procedures
prior to the listing of such options in the standard options pit or on
e-cbot. Once and if these options are listed for trading in the standard
options pit or on e-cbot, they will be traded only in the standard
options pit or on e-cbot, they will be traded only in the standard
options pit or e-cbot subject to standard options trading requirements.
Upon such listing, all existing open positions established under
Flexible trading procedures shall be fully fungible with transactions in
the respective standard option series for all purposes under these
regulations.
[Enlarge/Download Table]
================================================================================================================
Chapter 36A (Standard Options)
Short Term U.S. Treasury Note Futures Options
----------------------------------------------------------------------------------------------------------------
================================================================================================================
Ch36A Trading Conditions..........................................................................3602A
A3601.00 Authority.....................................................................3602A
A3601.01 Application of Regulations....................................................3602A
A3602.01 Nature of Short Term U.S. Treasury Note Futures Put Options...................3602A
A3602.02 Nature of Short Term U.S. Treasury Note Futures Call Options..................3602A
A3603.01 Trading Unit..................................................................3602A
A3604.01 Striking Prices...............................................................3602A
A3605.01 Payment of Option Premium.....................................................3603A
A3606.01 Option Premium Basis..........................................................3603A
A3607.01 Exercise of Option............................................................3603A
A3607.02 Automatic Exercise............................................................3603A
A3607.03 Corrections to Option Exercises...............................................3604A
A3608.01 Expiration of Option..........................................................3603A
A3609.01 Months Traded In..............................................................3603A
A3610.01 Trading Hours.................................................................3603A
A3611.01 Position Limits and Reportable Positions......................................3604A
A3612.01 Margin Requirements...........................................................3604A
A3613.01 Last Day of Trading...........................................................3604A
3601A
===============================================================================
Chapter 36A (Standard Options)
Short Term U.S. Treasury Note Futures Options
-------------------------------------------------------------------------------
===============================================================================
Ch36A Trading Conditions
A3601.00 Authority - (See Rule 2801.00.) (10/01/94)
A3601.01 Application of Regulations - Transactions in put and call options on
Short Term U.S. Treasury Note futures contracts shall be subject to the general
rules of the Association as far as applicable and shall also be subject to the
regulations contained in this chapter which are exclusively applicable to
trading in put and call options on Short Term U.S. Treasury Note futures
contracts. (See Rule 490.00.) (09/01/00)
A3602.01 Nature of Short Term U.S. Treasury Note Futures Put Options - The
buyer of one (1) Short Term U.S. Treasury Note futures put option may exercise
his option at any time prior to expiration (subject to Regulation 3607.01), to
assume a short position in one (1) Short Term U.S. Treasury Note futures
contract of a specified contract month at a striking price set at the time the
option was purchased. The seller of one (1) Short Term U.S. Treasury Note
futures put option incurs the obligation of assuming a long position in one (1)
Short Term U.S. Treasury Note futures contract of a specified contract month at
a striking price set at the time the option was sold, upon exercise by a put
option buyer. (10/01/94)
A3602.02 Nature of Short Term U.S. Treasury Note Futures Call Options - The
buyer of one (1) Short Term U.S. Treasury Note futures call option may exercise
his option at any time prior to expiration (subject to Regulation 3607.01), to
assume a long position in one (1) Short Term U.S. Treasury Note futures contract
of a specified contract month at a striking price set at the time the option was
purchased. The seller of one (1) Short Term U.S. Treasury Note futures call
option incurs the obligation of assuming a short position in one (1) Short Term
U.S. Treasury Note futures contract of a specified contract month at a striking
price set at the time the option was sold, upon exercise by a call option buyer.
(10/01/94)
A3603.01 Trading Unit - One (1) $200,000 face value Short Term U.S. Treasury
Note futures contract at a specified contract month on the Chicago Board of
Trade. (10/01/94)
A3604.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices in integral multiples of one-quarter (1/4) point per Short
Term U.S. Treasury Note futures contract. At the commencement of trading for
such option contracts, the following striking prices shall be listed: one with a
striking price closest to the previous day's settlement price on the underlying
Short Term U.S. Treasury Note futures contract, and the next ten (10)
consecutive higher and the next ten (10) consecutive lower striking prices
closest to the previous day's settlement price. If the previous day's settlement
price is midway between two striking prices, the closest price shall be the
larger of the two. Over time, new striking prices will be added to ensure that
at least ten (10) striking prices always exist above and below the previous
day's settlement price on the underlying futures. All new striking prices will
be added prior to the opening of trading on the following business day.
The Exchange may modify the procedure for the introduction of striking prices as
it deems appropriate in order to respond to market conditions. (04/01/04)
A3605.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (01/01/04)
3602A
A3606.01 Option Premium Basis - The premium for Short Term U.S. Treasury Note
futures options shall be in multiples of one half of one sixty-fourth (1/64) of
one point ($15.625) of a Short Term U.S. Treasury Note futures contract which
shall equal $2,000 per full point.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $15.00 in $1.00 increments per option contract.
If options are quoted in volatility terms, the minimum price fluctuation shall
be .10 percent (i.e.-10.0%, 10.1%, 10.2%, etc.) (07/01/03)
A3607.01 Exercise of Option - The buyer of a Short Term U.S. Treasury Note
futures option may exercise the option on any business day prior to expiration
by giving notice of exercise to the Clearing Services Provider by 6:00 p.m., or
by such other time designated by the Exchange, on such day.
01/01/04)
A3607.02 Automatic Exercise - Notwithstanding the provisions of Regulation
3607.01, after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider.
Notice to cancel automatic exercise shall be given to the Clearing Services
Provider by 6:00 p.m., or by such other time designated by the Exchange, on the
last day of trading
01/01/04)
A3607.03 Corrections to Option Exercises - Corrections to option exercises,
including automatic exercises, may be accepted by the Clearing Services
Provider after the 6:00 p.m. deadline and up to the beginning of final option
expiration processing provided that such corrections are necessary due to: (1) a
bona fide clerical error, (2) an unreconciled Exchange option transaction(s), or
(3) an extraordinary circumstance where the clearing firm and customer are
unable to communicate final option exercise instructions prior to the deadline.
The decision whether a correction is acceptable will be made by the President of
the Clearing Services Provider, or the President's designee, and such decision
will be final. (01/01/04)
A3608.01 Expiration of Option - Unexercised Short Term U.S. Treasury Note
futures options shall expire at 7:00 p.m. on the last day of trading. (01/01/04)
A3609.01 Months Traded In - Trading may be conducted in Short Term U.S.
Treasury Note futures options for a forty-two month period extending from the
nearby contract month, provided however, that the Exchange may determine not to
list a contract month. Both serial and quarterly options may be listed to expire
into either front-month or deferred futures as determined by the Board.
(06/01/99)
A3610.01 Trading Hours - The hours of trading of options on Short Term U.S.
Treasury Note futures contracts shall be determined by the Board. On the last
day of trading in an expiring option, the closing time for such options shall be
the same as the close of trading of the Regular Daytime open outcry trading
session for the corresponding Short Term U.S. Treasury Note futures contract,
subject to the provisions of the second paragraph of Rule 1007.00. Short Term
U.S. Treasury Note futures options shall be opened and closed for all months and
strike prices simultaneously or in such a manner as the Regulatory Compliance
Committee shall direct. (04/01/00)
A3611.01 Position Limits and Reportable Positions - (See Regulation 425.01.)
(10/01/00)
A3612.01 Margin Requirements - (See Regulation 431.05) (10/01/94)
A3613.01 Last Day of Trading - No trades in Short Term U.S. Treasury Note
futures put and call options expiring in the current month shall be made after
the close of trading of the Regular Daytime open outcry trading session for the
corresponding Short Term U.S. Treasury Note futures contract on the last Friday
which precedes by at least two business days, the last business day of the
month preceding the option month. If such Friday is not a business day, or there
is a Friday which is not a
Ch36A Trading Conditions
------------------------
business day which precedes by one business day the last business day of the
month preceding the option month, the last day of trading shall be the first
business day prior to such Friday. (07/01/01)
===============================================================================
Chapter 36B (Flexible Options)
Short Term Treasury Note Flexible Options
===============================================================================
[Enlarge/Download Table]
Ch36B Trading Conditions...........................................................................3606
B3602.03 Nature of Flexible Options.....................................................3606
B3603.01 Trading Unit...................................................................3606
B3604.01 Strike Prices..................................................................3606
B3607.01 Exercise of Flexible Options...................................................3606
B3607.02 Automatic Exercise.............................................................3606
B3608.01 Expiration Date................................................................3606
B3609.01 Months Traded In...............................................................3607
B3613.01 Last Day of Trading............................................................3607
B3615.01 Exercise Style.................................................................3607
B3616.01 Underlying Futures Contract for Flexible Options...............................3607
B3617.01 Initiating a Flexible Option Contract Series...................................3607
B3619.01 RFQ Trading Interval...........................................................3607
B3620.01 Expiration of an RFQ...........................................................3607
B3621.01 Reporting of Flexible Option Trades............................................3607
3605B
===============================================================================
Chapter 36B (Flexible Options)
Short Term Treasury Note Flexible Options
===============================================================================
Note: The following Flexible option regulations with the exception noted in
the second paragraph of Regulation 3602.03 supersede the
corresponding standard regulations presented in Part A of this
chapter. Regulations 3601.00, 3601.01, 3602.01, 3602.02, 3605.01,
3606.01, 3610.01, 3611.01, 3612.01, and 3614.01 remain in effect for
both standard and Flexible options.
Ch36B Trading Conditions
B3602.03 Nature of Flexible Options - Flexible options on Short Term Treasury
Note futures shall be permitted in puts and calls which do not have the same
underlying futures contract, same strike price, same exercise style, and same
last day of trading as standard options.
However, Flexible Options on Short Term Treasury Note futures shall also be
permitted in puts and calls which have the same underlying futures contract,
same strike price, same exercise style, and same last day of trading as standard
options that are not at the time listed for trading in the standard options pit
or on e-cbot. All Flexible Option regulations except 3607.01, 3607.02, 3608.01
and 3613.01 will pertain for these options.*
Trading shall be permitted in any CBOT recognized option/option or
option/futures spread involving puts, calls or futures. (09/01/00)
B3603.01 Trading Unit - The minimum size for requesting a quote and/or trading
in a flexible option series is 50 contracts, where each contract represents one
of the underlying futures contracts at the Chicago Board of Trade. Parties may
request a quote and/or trade for less than 50 contracts in order to entirely
close out a position in a flexible series.
For a flexible options series, respondents to a request for quote, must be
willing to trade at least 50 contracts, with the exception that a respondent may
trade less than 50 contracts if the respondent is entirely closing out a
position in the series. (07/01/99)
B3604.01 Strike Prices - Strike prices for flexible options must be specified
in points and 64th's of points per Short Term Treasury Note futures contract.
However, for a Request for Quote (RFQ), strike prices may be specified in one
64th point increments relative to the underlying futures contract. Strike prices
cannot be outside the range of the currently listed strike prices for standard
options. (06/01/95)
B3607.01 Exercise of Flexible Options - Notification of the intent to exercise a
flexible option must be received by the Clearing Services Provider by 6:00 p.m.
Chicago time, or by such other time designated by the Exchange. No exceptions to
the 6:00 p.m. exercise deadline, or such other deadline designated by the
Exchange shall be permitted.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 3602.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B3607.02 Automatic Exercise - After the close on the last day of trading, all
in-the-money flexible options will be automatically exercised unless notice to
cancel automatic exercise is given to the Clearing Services Provider by 6:00
p.m., or by such other time designated by the Exchange on that day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 3602.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B3608.01 Expiration Date - Flexible option expiration may be specified for any
Monday through Friday that is not an Exchange holiday except that expiration may
not occur following the last Friday that precedes by at least two business days
the last business day of the calendar month preceding the underlying future
contract month. Flexible options expire at 7:00 p.m. on the last trading
Ch36B Trading Conditions
------------------------
day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 3602.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (01/01/04)
B3609.01 Months Traded In - Trading may be conducted in flexible options in any
month up through the most distant underlying futures contract in which a trade
has occurred. (10/01/94)
B3613.01 Last Day of Trading - The last day of trading in a flexible option
shall be the expiration day.
However, options which meet the criteria given in the second paragraph of
Flexible Option Regulation 3602.03 will follow expiration and exercise
procedures as specified in the standard option regulations. (05/01/94)
B3615.01 Exercise Style - Flexible options may be American or European exercise
style. (10/01/94)
B3616.01 Underlying Futures Contract for Flexible Options - The underlying
futures contract for a flexible option shall be the same as the underlying
futures contract month of the nearest March quarterly cycle standard futures
option expiring on or after the expiration of the flexible option. (10/01/94)
B3617.01 Initiating a Flexible Option Contract Series - The opening of trading
in any flexible option series shall occur through the submission of an RFQ or at
such time that a trade takes place in the particular flexible option series.
If so desired, participants can submit additional RFQ's for any open series.
However, in this situation no priority period (Regulation 3619.01) will exist.
(02/01/01)
B3619.01 RFQ Trading Interval - If the submitter of the first RFQ of the day in
a flexible series requests either a bid or an offer but not both, then they
shall have up to a one minute priority period during which they shall have the
sole right to either buy or sell as specified in their RFQ. The exact length of
the priority period shall be determined by the Exchange.
If more than one RFQ is the first RFQ of the day in a flexible series, all the
RFQ's individually ask for either a bid or an offer but not both, and all the
RFQ's collectively are for the same side of the market (all bids or all offers)
then the submitters shall jointly share priority during the priority period.
Priority for RFQ's is determined by submission to the RFQ official, except that
all RFQ's submitted before the open shall be treated equally. (02/01/01)
B3620.01 Expiration of an RFQ - Trading in a given flexible option series
following an RFQ shall remain open for the remainder of the trading session.
Trading in a given flexible option series following a transaction in that series
shall remain open through the remainder of the trading session in which the
transaction was executed and through each subsequent session in which there is
open interest in the flexible option series. (002/01/01)
B3621.01 Reporting of Flexible Option Trades - It shall be the responsibility
of the participants in a flexible option trade to report the quantities and
prices to the flexible pit reporter in a timely manner, including any later
trades in open flexible contract term series. (10/01/94)
* The effect of the second paragraph of Regulation 3602.03 is to permit
trading in standard options under certain Flexible trading procedures prior
to the listing of such options in the standard options pit or on e-cbot.
Once and if these options are listed for trading in the standard options
pit or on e-cbot, they will be traded only in the standard options pit or
on e-cbot subject to standard options trading requirements. Upon such
listing, all existing open positions established under Flexible trading
procedures shall be fully fungible with transactions in the respective
standard option series for all purposes under these regulations.
[Download Table]
===============================================================================
Chapter 37
CBOT Rough Rice Futures
===============================================================================
Ch37 Trading Conditions...................................................
3700.01 Introduction...............................................
3701.01 Contract Specifications....................................
3701.02 Trading Months and Hours...................................
3701.03 Trading Unit...............................................
3701.04 Price Increments...........................................
3701.05 Daily Price Limits.........................................
3701.06 Termination of Trading.....................................
3701.07 Contract Modifications.....................................
3701.08 Position Limits and Trading Limits.........................
3702.01 Delivery by Warehouse Receipts.............................
3702.02 Registration of Warehouse Receipts.........................
3702.03 Delivery Dates.............................................
3702.04 Storage....................................................
3702.05 Par Delivery Unit..........................................
3702.06 Par Delivery Point.........................................
3702.07 Delivery Differentials.....................................
3702.08 Delivery and Loading Out...................................
3702.09 Notice of Intention........................................
3703.01 Weighing...................................................
3703.02 Storage Charges............................................
Ch37 Delivery Facilities and Procedures...................................
3704.01 Conditions of Regularity for Warehouses....................
3704.02 Application For Declaration of Regularity..................
3704.03 Duties of Warehousemen.....................................
3704.04 Safeguarding Condition Of Stored Commodities...............
3704.05 Damage To Commodity In Store...............................
3704.06 Revocation of Regularity...................................
3704.07 Federal Warehouses.........................................
3704.08 Finality of USDA Or Other Required Inspection Certificate..
3705.01 Delivery Through Clearing Services Provider................
3705.02 Payment Upon Delivery......................................
3705.03 Necessity Of Possession Of Documents.......................
3705.04 Suspended Member Out Of Line For Delivery..................
3705.05 Failure to Deliver.........................................
3705.06 Failure To Accept Delivery.................................
3705.07 Transfer Of Cash For Futures After Termination Of Contract.
3705.08 Risk Of Loss And Charges...................................
================================================================================
Chapter 37
CBOT Rough Rice Futures
================================================================================
Ch37 Trading Conditions
3700.01 Introduction - This chapter is limited in application to futures
trading in rough rice. The procedures for trading, clearing, inspection,
delivery, settlement and any other matters not specifically covered herein shall
be governed by the Rules and Regulations of the Exchange. (11/01/94)
*3701.01 Contract Specifications - All futures contracts shall be for U.S. No.
2 or better long grain rough rice as the same is established by standards
promulgated by the United States Department of Agriculture (U.S.D.A.) at the
time of the first day of trading in a particular contract. No heat-damaged
kernels as defined by USDA FGIS Interpretive Line Slide 2.0 are permitted in a
500-gram sample. No stained kernels as defined by USDA FGIS Interpretive Line
Slide 2.1 are permitted in a 500-gram sample. A maximum of 75 lightly discolored
kernels as defined by USDA FGIS Interpretive Line Slide 2.2 are permitted in a
500-gram sample. No other grade is deliverable.
To be deliverable, rough rice shall have a milling yield of not less than 65%,
including not less than 48% head rice. Each percent of head rice over or below
55% shall receive a 1.5% premium or discount, respectively, toward the
settlement price for long grain rough rice and each percent of broken rice over
or below 15% shall receive a .75% premium or discount, respectively. All rough
rice shall be of a Southern origin or such other origin as the Exchange may
approve. (11/01/03)
3701.02 Trading Months and Hours - Futures contracts shall be traded initially
for delivery during the months of September, November, January, March, May and
July of each year. The number of months to be open at one time shall be at the
discretion of the Exchange. Trading shall be conducted from 9:15 a.m. to 1:30
p.m. Chicago Time, except in the expiring contract on the last day of trading
when trading shall cease at 12:00 Noon. (11/01/98)
3701.03 Trading Unit - The unit of trading shall be 2,000 hundredweight
(200,000 pounds). (11/01/94)
3701.04 Price Increments - All bids and offers shall be in multiples of $.005
per hundredweight. (11/01/94)
3701.05 Daily Price Limits - (See 1008.01) (11/01/94)
3701.06 Termination of Trading - No trades shall be made during the last seven
business days of the trading month. Any trades remaining open during this period
shall be settled by delivery or a bona fide exchange of futures for the cash
commodity or over-the-counter transaction. (01/01/03)
3701.07 Contract Modifications - Contract specifications shall be fixed as of
the first day of trading of the contract and must conform to government grading
standards in force at that time. If any federal governmental agency issues an
order, ruling, directive or law that conflicts with requirements of these
regulations, such order, ruling, directive or law shall be construed to become
part of these regulations, and all new contracts shall be subject to such
governmental orders. (11/01/94)
3701.08 Position Limits and Trading Limits - (See Regulation 425.01)
(11/01/94)
3702.01 Delivery by Warehouse Receipts - Deliveries of rough rice shall be
made only by delivery of rough rice warehouse receipts issued by warehouses
located in the Arkansas counties of Craighead, Jackson, Poinsett, Woodruff,
Cross, St. Francis, Lonoke, Prairie, Monroe, Jefferson, Arkansas and DeSha and
designated by the Exchange as regular. Rough rice warehouse receipts issued by
otherwise regular warehouses licensed under the U.S. Warehouse Act shall be
eligible for delivery in satisfaction of Exchange contracts regardless of
whether such warehouses are or are not also licensed by any state. In order to
effect a valid delivery, each receipt shall (a) be endorsed by holder making
delivery; (b) be marked "INSURED"; (c) indicate payment for storage charges up
to and including the 18th day of the preceding month; (d) be negotiable; (e) be
registered with the registrar of the Exchange; (f) specify the warehouse; and
(g) specify the grade, milling yield and quantity of the rough rice stored; and
(h) specify that the rough rice meets the CBOT standards for heat-damaged,
stained and lightly stained kernels. Unpaid accumulated storage charges shall be
allowed and credited to the buyer by the seller up to and including the date of
delivery.
Ch37 Trading Conditions
-----------------------
Endorsement by the holder shall constitute a warranty of the genuineness of the
warehouse receipt and of good title thereto, but shall not constitute a
guarantee of performance by the issuer. (10/01/03)
3702.02 Registration of Warehouse Receipts - Registration of rough rice
warehouse receipts shall be subject to the following requirements:
A. Warehouses which are regular for delivery may have their warehouse
receipts registered at any time with the Official Registrar and in
accordance with the requirements issued by the Registrar. If the
warehouseman determines not to tender the warehouse receipt by 4.00
p.m. on the day it is registered, or by such other time designated by
the Exchange, the warehouseman shall declare the receipt has been
withdrawn but is to remain registered by transmitting to the Registrar
the warehouse receipt number and the name and location of the
warehouse facility. The holder of a registered warehouse receipt may
cancel its registration at any time. A warehouse receipt which has
been canceled may not be registered again.
B. Except in the case of delivery on the last delivery day of a delivery
month, in which case the warehouse receipt must be registered before
1:00 p.m. on the last delivery day of the delivery month, or by such
other time designated by the Exchange, the rough rice warehouse
receipt must be registered before 4:00 p.m., or by such other time
designated by the Exchange, on notice day, the business day prior to
the day of delivery. If notice day is the last business day of a week,
rough rice warehouse receipts must be registered before 3:00 p.m., or
by such other time designated by the Exchange, on that day.
C. The Registrar shall issue a daily report showing the total number of
warehouse receipts under registration as of 4:00 p.m., or by such
other time designated by the Exchange, on each trading day of the
week. In addition to the information posted on the Exchange floor and
the CBOT website, this daily report shall show the names of warehouses
whose receipts are registered. The record shall not include any
receipts that have been declared withdrawn.
D. From his own records, the Registrar shall maintain a current record of
the number of receipts that are registered and shall be responsible
for posting this record on the Exchange Floor and the CBOT website.
The record shall not include any receipts that have been declared
withdrawn.
E. When a warehouseman regains control of his own registered receipt, the
warehouseman shall by 4:00 p.m. of that business day, or by such other
time designated by the Exchange, either cancel the registration of
said receipt or declare that said receipt is withdrawn but is to
remain registered by transmitting to the Registrar the receipt number
and the name and location of the warehouse facility, except in the
case where a notice of intention to redeliver said receipt for the
warehouseman has been tendered to the Clearing Services Provider by
4:00 p.m., or by such other time designated by the Exchange, of the
day that the warehouseman regained control of said receipt. (12/01/03)
3702.03 Delivery Dates - For the trading months of January, March, May, July,
September and November, delivery may be made by the seller upon any business day
of the delivery month the seller may select. Delivery must be made no later than
the last business day of the delivery month. (11/01/94)
3702.04 Storage - Rough rice shall be stored in a bin or bins in a warehouse
declared regular by the Exchange, and may contain rough rice from one or more
different lots of the same quality and milling yield. Rough rice may be added to
or withdrawn from such lots, provided any rice added shall be of the same
quality and milling yield and shall conform to the specifications of this
chapter and any withdrawal shall not reduce the amount of rice stored in such
lots to an amount less than the total amount required to satisfy all outstanding
warehouse receipts issued thereagainst. (11/01/94)
3702.05 Par Delivery Unit - Par delivery is 2,000 hundredweight (200,000
pounds) of U.S. No. 2 or better long-grain rough rice. A weight variation of 1%
shall be permitted, such variation to be priced at the previous day's settlement
price if the expiring future is still trading and at the expiration price of the
nearest previous future if no expiring future is trading. (11/01/94)
3702.06 Par Delivery Point - The par delivery points for rough rice shall be
mill site warehouses within the boundaries of the Arkansas counties of
Craighead, Jackson, Poinsett, Woodruff, Cross, St. Francis, Lonoke, Prairie,
Monroe, Jefferson, Arkansas and DeSha. Designation as a mill site warehouse
shall be determined by the Exchange. Rough rice may be delivered in satisfaction
of the rough rice futures contract at rice mill warehouses regular for delivery
at the contract price. Rough rice may be delivered at regular warehouses within
the twelve-county area which are not at mill sites in accordance with a schedule
of discounts established and published by the Exchange pursuant to 3702.07. No
warehouse regular for delivery of rough rice shall be located outside the twelve
Arkansas counties listed above. (11/01/94)
3702.07 Delivery Differentials - Delivery of rough rice in satisfaction of the
rough rice futures contract at regular warehouses other than regular mill site
warehouses shall be subject to a delivery differential of -15 cents per
hundredweight (cwt.) subject to the following:
1. At the time of filing an initial or renewal application for
regularity, a warehouse shall be required to declare whether or not it
is a mill site warehouse as defined in Appendix A.
2. If a regular mill site warehouse (non-mill site warehouse) renews
regularity as a non-mill site warehouse (mill site warehouse) for a
two-year term beginning July 1, the change in the delivery
differential will become effective for the new crop delivery month of
September within that two-year term.
3. Whenever the Exchange receives a bona fide renewal application for
regularity which will cause the warehouse's delivery differential to
change for the next crop year, a notice of the receipt of the
application will be posted on the floor of the Exchange after the
close of the market that day.
4. A warehouse which has been declared regular for delivery as a non-mill
site warehouse (mill site warehouse) for a current regularity term
ending June 30 may not be declared regular for
Ch37 Trading Conditions
-----------------------
delivery as a mill site warehouse (non-mill site warehouse) during the
balance of that term.
Pursuant to the provisions of this regulation, 3702.06 and Appendix A of
these rules and regulation, the Exchange shall publish a list of all
regular warehouses and the applicable discount.
3702.08 Delivery and Loading Out - Delivery shall be made on the basis of the
actual weight of rough rice loaded into rail cars or trucks. A load-out charge
not to exceed the tariff as filed with the Exchange in accordance with 3704.01.H
shall be paid by the buyer to cover loading and weighing. The maximum load-out
charge for the loading-out of rough rice against a rough rice registered
warehouse receipt is 22.222 cents per cwt. which will be subject to an
evaluation by the Exchange at the time of renewal of regularity of rice
warehouses. An increase or decrease in the maximum load-out charge for rough
rice may become effective 30 days after a notice has been posted on the Exchange
floor. The notice will state the amount of the maximum load-out charge, the
applicable warehouse receipts and the date that the charge will become
effective.
Load-outs shall begin not later than the third business day following the day on
which loading instructions are given to the warehouseman; provided, however,
that the withdrawing party has within that period furnished rail cars or trucks
to receive the rice. The warehouseman shall be required to load-out rice at the
normal rate of load-out for the facility, but not less than 20 trucks or its
equivalent weight loaded-out in rail cars per business day and shall be able to
load out the warehouse's entire regular capacity in 45 calendar days or less. A
party taking delivery shall receive the quantity ordered loaded out as soon as
reasonably possible but no more than 45 calendar days after load-out begins.
Rough rice regular warehouses shall not be required to meet these minimum
load-out rates when transportation equipment is not clean and load ready,
inspection services are not available, a condition of force majeure exists, or
inclement weather prevents loading.
In addition, rough rice regular warehouses shall not be required to meet the
minimum load-out rate for rail cars when rail cars have been constructively
placed for load-in prior to constructive placement of rail cars for load-out.
However, when rail cars for load-out are constructively placed after rail cars
for load in, the warehouse will load-in grain from the rail cars at the normal
rate of load-in for the facility. This rate shall not be less than the
equivalent weight of 20 trucks loaded-in from rail cars. Rough rice regular
warehouses shall not be required to meet these minimum load-in rates when a
condition of force majeure exists, inspection services are not available or
inclement weather prevents unloading.
The warehouse operator is not obligated to commence load-out of rough rice to a
given party sooner than three business days after he receives canceled warehouse
receipts and written loading instructions from such party, even if such party
may have a conveyance positioned to accept load-out of rough rice before that
time. If the party taking delivery presents transportation equipment of a
different type (rail or truck) than that specified in the loading instructions,
he is required to provide the warehouse operator with new loading orders, and
the warehouse operator shall not be obligated to begin load-out of rough rice to
such party sooner than three business days after he receives the new loading
orders. Written loading orders received after 2:00 p.m. (Chicago time) on a
given business day shall be deemed to be received on the following business day.
The warehouseman upon receipt of the canceled receipts by his agent and loading
instructions from the owner by 2:00 p.m. on a given day, shall notify the owner
by telex or telefax by 4:00 p.m. on that given day the scheduled day for
load-out. The daily tariff load-out rate and the amount of tonnage which is
scheduled for load-out before owner's load-out shall also be provided in the
notification.
The owner upon acceptance of the scheduled load-out date, and if he so requests
on a given day prior to load-out, shall receive a telex or telefax from the
warehouseman specifying the amount of tonnage remaining before owner's equipment
is loaded.
The warehouseman upon cancellation of loading instructions on any business day
prior to the day of actual loading of rice, and if requested by the owner, shall
reissue and register warehouse receipts for the amount of rough rice which
remains unloaded. Storage fees shall begin on the date of re-issuance of the new
warehouse receipts.
Storage charges on rough rice to be shipped pursuant to loading instructions
shall cease no later than three calendar days following the day on which
canceled warehouse receipts are surrendered or
Ch37 Trading Conditions
-----------------------
loading instructions are given, whichever occurs later; provided, however, that
the owner makes transportation available for loading on the scheduled load-out
date or has not canceled loading instructions.
The warehouse operator shall be permitted a two percent deviation above or below
the yield of head rice shown on the warehouse receipt issued for delivery on the
contract. The warehouse operator shall also be permitted a two percent deviation
above or below the total milling yield shown on the warehouse receipt issued for
delivery on the contract.
The warehouse operator is responsible for maintaining the milling yield of rice
specified on said warehouse receipt, within the stated allowable deviations, for
the total quantity of rice represented by said warehouse receipt and not for
sub-lots (i.e. truckloads) of said warehouse receipt. The warehouse operator is
also responsible for maintaining the numerical grade of rice specified on said
warehouse receipt for the total quantity of rice represented by said warehouse
receipt for the total quantity of rice represented by said warehouse receipt,
however, the numerical grade for sub-lots (i.e., truckloads) shall be no more
than one numerical grade below the deliverable grade specified in 3701.01.
Averaging the grade or milling yield of multiple receipts is not permissible.
When the rough rice is ordered out-of-store, the warehouse operator will be
reimbursed by the buyer in cash if the total milling yield or the yield of head
rice of the rice loaded out is over the total milling yield or the yield of head
rice listed on the warehouse receipt (up to two percent).
Conversely, the warehouse operator will reimburse the buyer in cash if the total
milling yield or the yield of head rice of the rice loaded out is under the
total milling yield or the yield of head rice listed on the warehouse receipt
(up to two percent). Calculations shall be made daily for each receipt loaded
out that day and shall be based on the nearby month rough rice future's
settlement price on the day of load out. Such payments to or from the warehouse
operator for excess or deficit head and broken rice shall be at the premium and
discount schedule specified in 3701.01, Contract Specifications. Adjustments on
the milling yield of head rice shall be based on an official test.
Both the buyer and the warehouseman will provide for an analysis of the rough
rice for grade and milling yield. If there is a disagreement, then a duplicate
sample taken at origin shall be analyzed by the Federal Grain Inspection Service
(FGIS), or a mutually agreed-upon third party to resolve the disagreement.
Notwithstanding the above, the buyer retains the right, at his expense, to an
official sampling and anaylsis by FGIS, or a mutually agreed-upon third party,
at orgin, of rough rice loaded-out at any time. (03/01/97)
3702.09 Notice of Intention - A clearing member intending to deliver shall,
not later than 4:00 p.m., or such other time designated by the Exchange, on
position day, the second business day prior to the intended delivery day,
provide to the Clearing Services Provider a notice of intention in the form
prescribed by the Exchange. On the last notice day of the delivery month,
however, delivery notices may be delivered to the Clearing Services Provider
until 2:00 p.m., or such other time designated by the Exchange. No intra-office
delivery may be made. If a clearing member has both long and short interest on
its books, it must tender to the Clearing Services Provider such notices as it
receives from its customers who are short. Prior to the opening of the market of
the following business day, the Clearing Services Provider shall pass such
notice to the clearing member having the oldest long contract as of the close of
trading on the day of receipt by the Clearing Services Provider of the notice of
intent (position day).
Upon receipt of the names of the buyers obligated to accept delivery from him
and a description of each commodity tendered by him which was assigned by the
Clearing Services Provider to each such buyer, the seller shall prepare invoices
addressed to its assigned buyers describing the amount which buyers must pay to
the seller in settlement of the actual deliveries, based on the delivery prices
established by the Clearing Services Provider for that purpose adjusted for
applicable premiums, discounts, storage charges, quantity variations and other
items for which provision is made in these rules and regulations and other items
for which provision is made in these rules and regulations relating to
contracts. Such invoices shall be delivered to the Clearing Services Provider by
4:00 p.m. on notice day or such other time designated Exchange. Upon receipt of
such invoices, the Clearing Services Provider shall promptly made them available
to buyers to whom they are addressed. A buyer receiving such an invoice from the
Clearing Services Provider shall, not later than 1:00 p.m. of the following day,
or such other time designated Exchange present the invoice at the office of the
seller by whom it was issued together with a certified check for the amount due,
and thereupon warehouse receipts shall be delivered by the seller to the buyer.
Ch37 Trading Conditions
-----------------------
(12/01/03)
3703.01 Weighing - Weighing shall be done in accordance with the current
custom of the trade. The official shipped weight so obtained shall be final
provided, however, that railroad weights shall be acceptable and shall be final
if the negotiable warehouse receipt holder and the seller so agree in writing.
(11/01/94)
3703.02 Storage Charges - Storage charges on rough rice shall not exceed such
charges as have been filed with the Exchange in accordance with 3704.01H. (which
shall be designed to cover costs of storage, insurance and taxes).
No rough rice warehouse receipts shall be valid for delivery on futures
contracts unless the storage charges shall have been paid up to and including
the 18/th/ day of the preceding month and such payment endorsed on the rough
rice warehouse receipt. Unpaid accumulated storage charges at the posted tariff
applicable to the warehouse where the rough rice is stored shall be allowed and
credited to the buyer by the seller to and including date of delivery.
If storage charges up to and including the 18/th/ calendar day preceding the
delivery months of March, July and September and are not paid by the first
calendar day of any such delivery month, a late charge will apply. The late
charge will be an amount equal to the total unpaid accumulated storage charges
multiplied by the "prime interest rate" in effect on the day that the accrued
storage charges are paid, all multiplied by the number of calendar days that
storage is overdue divided by 360 days. The term "prime interest rate" shall
mean the lowest of the rates announced by each of the following four banks at
Chicago, Illinois, as its "prime rate": Bank of America-Illinois, Bank One,
Harris Trust & Savings Bank and the Northern Trust Company.
Storage on rough rice shall not exceed 34/100 of a cent per hundredweight per
day.
Regular Rough Rice warehousemen shall maintain in the immediate vicinity of the
Exchange either an office, or a duly authorized representative or agent which is
a registered clearing member of the Exchange to whom Rough Rice storage charges
must be paid. (11/01/03)
Ch37 Delivery Facilities and Procedures
3704.01 Conditions of Regularity for Warehouses - The following shall
constitute the minimum requirements and conditions for regularity of Rough Rice
warehouses:
A. The warehouse shall at all times meet standards of construction,
sanitation and dust control, insurability and physical maintenance
applicable generally to commercial warehouses.
B. It shall be situated with respect to transportation facilities deemed
adequate by the Exchange.
C. It shall be located in such states as the Exchange may designate from
time to time as delivery locations for Rough Rice.
D. It shall be in good financial standing and credit, and shall meet the
minimum financial requirements and financial reporting requirements
set forth in Appendix 37D. It shall file a bond and/or designated
letter of credit with sufficient sureties in such sum and subject to
such conditions as the Exchange may require. The Exchange may, at its
option, waive bond requirements.
E. It shall maintain all licenses required by state or federal law.
F. It shall have standard equipment and appliances for the convenient and
expeditious receiving, handling and shipping of Rough Rice in bulk,
in railroad cars, and in trucks, and shall be properly safeguarded and
patrolled.
G. It shall cooperate with the Exchange's system of registration of
negotiable warehouse receipts and furnish to the Exchange all needed
information to enable it to keep a correct record and account of all
Rough Rice remaining in store and receipts issued as of the close of
each week.
H. It shall file its tariffs listing in detail the maximum charges for
the handling and storage of Rough Rice, and thereafter it shall file
with the Exchange any proposed changes in such tariffs. The effective
date of the change will be on the first day of the month that follows
a two-month time period after the day a written notice of the change
is received by the Exchange.
I. It shall not engage in unethical conduct, or fail to be operated in
accordance with accepted commercial practices or fail to comply with
governmental statutes, rules and regulations governing warehouses and
the commodities stored therein.
J. It shall make such reports, keep such records, and permit such
warehouse visitations and examinations of documents as the Exchange,
the Commodity Futures Trading Commission pursuant to Commission
Regulation 1.44(a) - (c) and the United States Department of Justice
may prescribe or undertake; it shall comply with all applicable rules,
regulations and orders promulgated by the Commodity Futures Trading
Commission and with all requirements established by the Exchange
because of such rules or orders.
K. The Exchange may determine not to approve warehouses for regularity or
increases in regular capacity of existing regular warehouses, in its
sole discretion, regardless of whether such warehouses meet the
preceding requirements and conditions. Some factors that the Exchange
may, but is not required to, consider in exercising its discretion may
include, among others, whether warehouse receipts issued by such
warehouses, if tendered in satisfaction of futures contracts, might be
expected to adversely affect the price discovery function of Rough
Rice futures contracts or impair the efficacy of futures trading in
Rough Rice, or whether the currently approved regular capacity
provides for an adequate deliverable supply. (01/01/04)
Ch37 Delivery Facilities and Procedures
---------------------------------------
thereafter, for the respective years beginning July 1, 1994 and every even year
thereafter, and shall be on the same form.
As part of its application for regularity, the warehouseman expressly agrees to
consent to the disciplinary jurisdiction of the Exchange for five (5) years
after regularity lapses for conduct pertaining to regularity which occurred
while the warehouse was regular.
3704.03 Duties of Warehousemen - It shall be the duty of operators of all
regular warehouses:
A. RESERVED
B. To notify the Exchange of any change in the condition of their
warehouse which might materially affect their physical or financial
ability to continue to meet the requirements for regularity under
these rules and regulations. Any warehouse must immediately notify the
Exchange of any material reduction of its capital, including the
incurring of a contingent liability which would materially affect
capital should such liability become fixed. Such notice must be in
writing and signed by an officer of the warehouse.
For purposes of this requirement, a reduction amounting to twenty
percent (20%) or more from the total capital reported as of the last
date for which a financial statement was filed under this requirement
shall be deemed material. In determining total capital, there shall be
taken into consideration equities and deficits in all proprietary
accounts properly included in the determination of net worth.
C. To insure adequately and fully commodities covered by warehouse
receipts tendered for delivery against loss by fire, tornado and the
contingencies provided for in the standard form of "extended coverage"
endorsements or policies. Commodities shall be deemed so insured when
the warehouse shall maintain such insurance for the benefit of all
depositories of grain under tariffs, rules or regulations authorized
and promulgated under the authority of the United States Warehouse
Act. In any warehouse declared regular by the Exchange, the charge for
insurance on commodities delivered on futures contracts shall be
limited to a maximum of $1.00 per $100.00 evaluation annually. Any
charges for insurance in excess of this amount shall be paid by the
warehouseman.
D. To remove no commodity covered by negotiable warehouse receipts
registered with the Exchange from the designated warehouse or, if
appropriate, from the designated bond save at the request of the
negotiable warehouse receipt holder upon surrender of the receipt.
E. To register with the Exchange all negotiable warehouse receipts
relating to commodities for which the warehouse is declared regular
and to cancel such registrations before releasing property.
F. To have a representative in Chicago, Illinois authorized and known to
the Exchange to act in matters pertaining to negotiable warehouse
receipts including shipping instructions.
G. To load vehicles furnished by holders of negotiable warehouse receipts
of the Exchange within the time specified by these rules and
regulations.
H. To furnish the Exchange with copies of policies or certificates of
insurance under which deliverable commodities in the warehouse are
insured.
I. To deliver commodities ordered out of the warehouse in buyer's
vehicles within such times as specified by these rules and regulations
showing no preference in out-loading, unless conditions such as acts
of God, fire, flood, windstorm, explosion or other force majeure
interfere therewith; provided, the warehouse shall make no charge for
storage after three days following receipt of the load-out order
notwithstanding delivery is prevented because of such act of God, etc.
If no time period for out-loading is set forth in the rules or
regulations of a given contract, load-out under such contract shall
occur not later than three business days after vehicles are ready for
loading, except as provided herein.
J. To inspect the transportation facilities furnished by the negotiable
warehouse receipt holder. If, in the warehouseman's judgement,
cleaning is necessary, he shall immediately notify the
Ch37 Delivery Facilities and Procedures
---------------------------------------
receipt holder and thereafter abide by the holder's instructions.
K. To load each vehicle to its capacity providing sufficient negotiable
warehouse receipts are tendered.
L. To bear the costs of all expenses contingent upon transfer of title of
the warehoused commodity to another regulated warehouse satisfactory
to the owners of such commodity in the event of expiration or
revocation of regularity or in the event of abandonment or sale of the
properties where regularity is not reissued. (11/01/94)
3704.04 Safeguarding Condition Of Stored Commodities -
A. Whenever in the opinion of the operator of the warehouse any commodity
stored in a public warehouse under his jurisdiction should be loaded
out in order to protect the best interests of the parties concerned,
such operator shall notify the Exchange giving the location and grades
of such commodity. The Exchange shall immediately notify an
appropriate inspection service which shall at once proceed to the
warehouse in which the commodity is stored and examine it in
conjunction with the operator of such warehouse. If the inspection
service agrees with the operator that the commodity should be moved,
it shall so notify the Registrar. If the inspection service does not
agree with the operator that the commodity should be moved, the
operator of the warehouse shall have the right to appeal to the
Business Conduct Committee of the Exchange. If on such appeal the
Business Conduct Committee shall agree with the operator that the
commodity should be moved, the committee shall so notify the
Registrar, and the warehouse receipts covering the above specified lot
or lots shall no longer be regular for delivery on futures contracts.
Upon receiving such notice, either from the inspection service or from
the Business Conduct Committee, the Registrar shall notify the holder,
or holders, or their agents, together with the Chairman of the
Business Conduct Committee, of the total quantity of the grade of
commodity in question (selecting the oldest registered warehouse
receipt first, then such additional registered warehouse receipts in
the order of their issuance as may be necessary to equal such total
quantity of the commodity).
When this information reaches the Chairman of the Business Conduct
Committee, he shall appoint a Committee consisting of five
disinterested handlers of the cash commodity. This Committee shall
meet at once and after taking into consideration various factors that
establish the value of the grade of the receipts held by such owner or
owners, shall determine the fair value of the commodity, which price
shall be that to be paid by the operator. If the price offered is not
satisfactory, a Committee appointed by the Chairman of the Business
Conduct Committee (at the request of such owner), shall procure other
offers for such commodity, and such offers shall be immediately
reported to the owner or his agent. If the owner refuses to accept any
such offers, he shall have the two following business days to order
and furnish facilities for loading the commodity out of store, and
during this period the warehouse shall be obliged to deliver the
commodity called for by the warehouse receipts, but not more than
three (3) days may elapse after notification by the Registrar to the
holder of the receipt before satisfactory disposition shall have been
made of the commodity, either by sale to the operator or by the
ordering out and furnishing facilities to load the same, provided the
amount of such commodity does not exceed 20,000 hundredweight of rough
rice in any one warehouse. If the amount of commodity in question
exceeds such amount, the owner, or owners, of the warehouse receipts
shall be allowed forty-eight hours of grace over and above the
aforementioned three days for each additional 20,000 hundredweight.
B. In the event that the holder of the warehouse receipt, or his agent,
fails to move the commodity or make other satisfactory disposition of
same within the prescribed time, it shall be held for his account, and
any loss in grade sustained shall likewise be for his account.
C. Nothing in the foregoing provisions shall be construed as prohibiting
the warehouseman from fulfilling contracts from other stocks under his
control. (11/01/94)
3704.05 Damage To Commodity In Store - Notice - The operator of a warehouse
shall promptly advise the Exchange of any damage to a commodity held in store by
it whenever such damage shall
Ch37 Delivery Facilities and Procedures
---------------------------------------
occur to an extent that will render it unwilling to purchase and withdraw from
store, at its cost, all such damaged commodity. (11/01/94)
3704.06 Revocation of Regularity - Any declaration of regularity may be
withdrawn by the Exchange at any time if the warehouse does not comply with the
conditions above set forth or fails to carry out prescribed duties; providing,
however, the Exchange has theretofore given notice to the warehouseman of the
deficiencies and a reasonable time, under the circumstances, to cure them.
If the designation is revoked, the Exchange shall post such revocation on the
bulletin board together with the period of time, if any, during which the
negotiable warehouse receipts issued by the warehouse will be deliverable in
satisfaction of futures contracts.
Once such period of time, if any, has expired, and the negotiable warehouse
receipts issued by the warehouse are no longer deliverable in satisfaction of
futures contracts, the warehouse shall bear the cost of the transfer of the
warehoused commodity to another regulated warehouse, in accordance with 3704.03,
paragraph L. (11/01/94)
3704.07 Federal Warehouses - In compliance with the provisions of Section
5a(7) of the Commodity Exchange Act, providing that the commodity may be
delivered from a warehouse subject to the United States Warehouse Act, 7 U.S.C.
Sections 241-273, a receipt issued under that Act shall be accepted for delivery
on any futures contract provided the commodity represented by the receipt meets
contract specifications and the warehouse issuing the receipt meets the
requirements imposed by this chapter on all other warehouses. (11/01/94)
3704.08 Finality of USDA Or Other Required Inspection 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 inspection certificate. Such certificate shall constitute
conclusive evidence of the grade, quantity or other specifications of the
commodity described therein. (11/01/94)
3705.01 Delivery Through Clearing Services Provider - All deliveries on
maturing contracts shall be made through the Clearing Services Provider. The
Clearing Services Provider shall prescribe such forms and requirements for
initiating and completing delivery as are consistent with this chapter and the
various contract specification chapters. (12/01/03)
3705.02 Payment Upon Delivery - The receiver of a Notice of Intention from the
Clearing Services Provider shall present the delivery invoice at the office of
the deliverer not later than 1:00 p.m. on the next business day, i.e., delivery
day, or by such other time designated by the Exchange, together with a
certified or cashier's check drawn on a Chicago bank, and shall receive
therefore, properly endorsed, warehouse receipts or shipping certificates in
accordance with the Notice and any other contract documents required under these
rules and regulations.
If said delivery day is a banking holiday, delivery and payment must be made
before 9:30 a.m. the next banking business day, or by such other time designated
by the Exchange, and the seller shall be responsible for storage charges up to
and including that banking holiday. Adjustments for differences between contract
prices and delivery prices established by the Clearing Services Provider shall
be made with the Clearing Services Provider in accordance with its Regulations.
(12/01/03)
3705.03 Necessity Of Possession Of Documents - The deliverer shall at such
time as the Notice of Intent is delivered to the Clearing Services Provider have
possession of all documents (except a warehouse receipt in the case of a
redelivery) necessary to make good delivery. (12/01/03)
3705.04 Suspended Member Out Of Line For Delivery - When a clearing member
who has open purchases is suspended from the Clearing Services Provider for
default or insolvency, he shall be deemed out of line for delivery and tender
shall be made to the buyer obligated upon the next oldest contract. Also, if
tender be made to a buyer who is thereafter suspended for default or insolvency
before delivery is accepted, the Notice shall be withdrawn and another
immediately served upon the buyer obligated upon the next oldest contract.
(12/01/03)
3705.05 Failure to Deliver - A clearing member who has not tendered a Notice
on or before 8:00 p.m., or by such other time designated by the Exchange, on the
last day in a delivery month on which such notice is permitted shall be in
default. Failure to make delivery shall constitute improper conduct.
If a clearing member fails to fulfill its delivery obligation, the
non-defaulting clearing member must notify the Clearing Services Provider of
such failure as soon as possible. If, and only if, the non-defaulting clearing
member notifies the Clearing Services Provider of the failure no later than
sixty minutes after the time the delivery obligation was required to have been
fulfilled, then the Clearing Services Provider shall pay to the non-defaulting
clearing member reasonable damages proximately caused by the default.
The Clearing Services Provider shall not be obligated to either: (1) pay any
damages greater than the difference between the delivery price of the specific
commodity and the reasonable market price of such commodity at the time delivery
was required; or (2) make or accept delivery of the actual commodity; or (3) pay
any damages relating to the accuracy, genuineness, completeness, or
acceptableness of warehouse receipts, shipping certificates, or any similar
documents; or (4) pay any damages relating to the failure or insolvency of
banks, depositories, warehouses, shipping stations, or similar organizations or
entities that may be involved with a delivery.
All delivery obligations of a clearing member to another clearing member, which
are not fulfilled by the clearing member, shall be deemed an obligation of the
defaulting clearing member to the Clearing Services Provider. These obligations
must be fulfilled to the Clearing Services Provider within sixty minutes of the
time the obligations were required to be fulfilled to the non-defaulting
clearing member. (12/01/03)
3705.06 Failure To Accept Delivery -
If a clearing member fails to accept delivery, the seller tendering such
delivery shall promptly sell the commodity for the account of the buyer. If the
proceeds are insufficient to pay the seller the full delivery price, the
clearing member failing to accept delivery shall be liable for the difference.
If a clearing member is unable or refuses to make full payment to the seller,
the Clearing Services Provider shall bear the seller's loss in the first
instance.
All delivery obligations of a clearing member to another clearing
member, which are not fulfilled by the clearing member, shall be deemed an
obligation of the defaulting clearing member to the Clearing Services Provider.
These obligations must be fulfilled to the Clearing Services Provider within
sixty minutes of the time the obligations were required to be fulfilled to the
non-defaulting clearing member.
Failure to accept delivery or make full payment shall also constitute improper
conduct. (12/01/03)
Ch37 Delivery Facilities and Procedures
---------------------------------------
3705.07 Transfer Of Cash For Futures After Termination Of Contract - Subject
to the Exchange approval, a transfer of cash merchandise for futures may be
permitted during the contract month after termination of the contract.
Such transfer of cash for futures shall be cleared through the Clearing Services
Provider 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 transfers
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 transaction must
satisfy the Exchange that the transaction is bona fide and must file with the
Clearing Services Provider 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 future, the names of all clearing members to the
transaction and such other information as the Clearing Services Provider or
Exchange may require.
Such transfer of cash for futures shall bear the normal commission charges
pursuant to deliveries. (12/01/03)
3705.08 Risk Of Loss And Charges -
A. Title and the risk of loss or damage pass to the buyer at the time of
delivery of the warehouse receipts.
B. The deliverer shall be responsible for all warehouse charges until the
time when title passes and thereafter the receiver shall be
responsible.
C. The receiver shall be responsible for all inspection and weighing
charges at load-out. (11/01/94)
--------------------------------------------------------------------------------
Chapter 38
CBOT Rough Rice Options
--------------------------------------------------------------------------------
Ch38 Trading Conditions.....................................................3802
3801.00 Authority .....................................................3802
3801.01 Application of Regulations.....................................3802
3802.01 Nature of Rough Rice Futures Put Options.......................3802
3802.02 Nature of Rough Rice Futures Call Options......................3802
3803.01 Trading Unit...................................................3802
3804.01 Striking Prices................................................3802
3805.01 Payment of Option Premium......................................3803
3806.01 Option Premium Basis...........................................3803
3807.01 Exercise of Option ............................................3803
3807.02 Automatic Exercise ............................................3803
3807.03 Corrections to Option Exercises................................3803
3808.01 Expiration of Option...........................................3803
3809.01 Months Traded..................................................3803
3810.01 Trading Hours..................................................3803
3811.01 Position Limits and Reportable Positions.......................3803
3812.01 Margin Requirements............................................3803
3813.01 Last Day of Trading............................................3803
3814.01 Option Premium Fluctuation Limits..............................3804
3801
Ch38 Trading Conditions
--------------------------------------------------------------------------------
Chapter 38
CBOT Rough Rice Options
--------------------------------------------------------------------------------
Ch38 Trading Conditions
3801.00 Authority - (See Rule 2801.00). (04/01/04)
3801.01 Application of Regulations -Transactions in put and call options on
Rough Rice futures contracts shall be subject to the general rules of the
Exchange as far as applicable and shall also be subject to the regulations
contained in this chapter which are exclusively applicable to trading in put and
call options on Rough Rice futures contracts (See Rule 490.00). (04/01/04)
3802.01 Nature of Rough Rice Futures Put Options - The buyer of one (1) Rough
Rice futures put option may exercise his option at any time prior to expiration,
(subject to Regulation 3807.01), to assume a short position in one (1) Rough
Rice futures contract of a specified contract month at a striking price set at
the time the option was purchased. The seller of one (1) Rough Rice futures put
option incurs the obligation of assuming a long position in one (1) Rough Rice
futures contract of a specified contract month at a striking price set at the
time the option was sold, upon exercise by a put option buyer. (04/01/04)
3802.02 Nature of Rough Rice Futures Call Options - The buyer of one (1) Rough
Rice futures call option may exercise his option at any time prior to
expiration, (subject to Regulation 3807.01), to assume a long position in one
(1) Rough Rice futures contract of a specified contract month at a striking
price set at the time the option was purchased. The seller of one (1) Rough Rice
futures call option incurs the obligation of assuming a short position in one
(1) Rough Rice futures contract of a specified contract month at a striking
price set at the time the option was sold, upon exercise by a call option buyer.
(04/01/04)
3803.01 Trading Unit - One (1) 2,000 hundredweight Rough Rice futures contract
of a specified contract month on the Chicago Board of Trade. (04/01/04)
3804.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices (the "strikes") in integral multiples of twenty (20) cents
per hundredweight per Rough Rice futures contract (i.e., 7.80, 8.00, 8.20, etc.)
and in integral multiples of forty (40) cents per hundredweight per Rough Rice
futures contract (i.e., 8.00, 8.40, 8.80, etc.) as follows:
1. a. In integral multiples of twenty cents, at the commencement of trading
for an option contract, the following strikes shall be listed: one
with a strike closest to the previous day's settlement price of the
underlying Rough Rice futures contract, the next five consecutive
higher and the next five consecutive lower strikes (the "initial
band"). If the previous day's settlement price is midway between two
strikes, the closest price shall be the larger of the two.
b. In integral multiples of forty cents, at the commencement of trading
for an option contract, the following strikes shall be listed: the
next four consecutive strikes above the initial band.
c. In integral multiples of twenty cents, over time, strikes shall be
added as necessary to ensure that all strikes within $1.10 of the
previous day's trading range of the underlying futures contract are
listed (the "minimum band").
d. In integral multiples of forty cents, over time, strikes shall be
added as necessary to ensure that the next four consecutive strikes
above the minimum band are listed.
e. No new strikes may be added by these procedures in the month in which
an option expires.
2. All strikes will be listed prior to the opening of trading on the following
business day. The Exchange may modify the procedures for the introduction
of strikes as it deems appropriate in order to respond to market
conditions. (04/01/04)
3802
Ch38 Trading Conditions
3805.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (04/01/04)
3806.01 Option Premium Basis - The premium for Rough Rice futures options shall
be in multiples of $0.0025 per hundredweight of a 2,000 hundredweight Rough Rice
futures contract which shall equal $5.00 per contract.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $4.00 in $1.00 increments per option contract.
(04/01/04)
3807.01 Exercise of Option - The buyer of a Rough Rice futures option may
exercise the option on any business day prior to expiration by giving notice of
exercise to the Clearing Services Provider by 6:00 p.m., or by such other time
designated by the Exchange, on such day. (04/01/04)
3807.02 Automatic Exercise - Notwithstanding the provisions of Regulation
3807.01, after the close on the last day of trading, all in-the-money options
shall be automatically exercised, unless notice to cancel automatic exercise is
given to the Clearing Services Provider. Notice to cancel automatic exercise
shall be given to the Clearing Services Provider by 6:00 p.m., or by such other
time designated by the Exchange, on the last day of trading. (04/01/04)
3807.03 Corrections to Option Exercises - Corrections to option exercises may be
accepted by the Clearing Services Provider after the 6:00 p.m. deadline and up
to the beginning of final option expiration processing provided that such
corrections are necessary due to: (1) a bona fide clerical error, (2) an
unreconciled Exchange option transaction(s), or (3) an extraordinary
circumstance where the clearing firm and customer are unable to communicate
final option exercise instructions prior to the deadline. The decision whether a
correction is acceptable will be made by the President of the Clearing Services
Provider, or the President's designee, and such decision will be final.
(04/01/04)
3808.01 Expiration of Option - Unexercised Rough Rice futures options shall
expire at 7:00 p.m. on the last day of trading. (04/01/04)
3809.01 Months Traded - Trading may be conducted in the nearby Rough Rice
futures options contract month plus any succeeding months, provided however,
that the Exchange may determine not to list a contract month. For options that
are traded in months in which Rough Rice futures are not traded, the underlying
futures contract is the next futures contract that is nearest to the expiration
of the option. For example, the underlying futures contract for the February
option contract is the March futures contract. (04/01/04)
3810.01 Trading Hours - The hours of trading of options on Rough Rice futures
contracts shall be determined by the Board. On the last day of trading in an
expiring option, the closing time for such options shall be the same as the
close of trading of the Regular Daytime open outcry trading session for the
corresponding Rough Rice futures contract, subject to the provisions of the
second paragraph of Rule 1007.00. On the last day of trading in an expiring
option, the expiring Rough Rice futures options shall be closed with a public
call made striking price by striking price, conducted by such persons as the
Regulatory Compliance Committee shall direct. On all other days, Rough Rice
futures options shall be opened and closed for all months and striking prices
simultaneously or in such a manner as the Regulatory Compliance Committee shall
direct. (04/01/04)
3811.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(04/01/04)
3812.01 Margin Requirements - (See Regulation 431.05) (04/01/04)
3813.01 Last Day of Trading - No trades in Rough Rice futures options expiring
in the current month shall be made after the close of trading of the Regular
Daytime open outcry trading session for the corresponding Rough Rice futures
contract on the last Friday which precedes, by at least two business days, the
last business day of the month preceding the option month. If such Friday is not
a business day, the last day of trading shall be the business day prior to such
Friday. (04/01/04)
3803
Ch38 Trading Conditions
3814.01 Option Premium Fluctuation Limits - Trading is prohibited during any day
except for the last day of trading in a Rough Rice futures option at a premium
of more than the trading limit for the Rough Rice futures contract above and
below the previous day's settlement premium for that option as determined by the
Clearing Services Provider. On the first day of trading, limits shall be set
from the lowest premium of the opening range. (04/01/04)
3804
================================================================================
Chapter 39
Bund Futures
================================================================================
Ch39 Trading Conditions ........................................... 3902
3901.01 Authority ......................................... 3902
3902.01 Application of Regulations ........................ 3902
3904.01 Unit of Trading ................................... 3902
3905.01 Months Traded In .................................. 3902
3906.01 Price Basis ....................................... 3902
3907.01 Hours of Trading .................................. 3902
3909.01 Last Day of Trading ............................... 3902
3909.02 Liquidation During the Delivery Month ............. 3902
3910.01 Margin Requirements ............................... 3902
3912.01 Position Limits and Reportable Positions .......... 3902
Ch39 Delivery Procedures .......................................... 3903
3936.01 Standards ......................................... 3903
3942.01 Delivery on Futures Contracts ..................... 3903
3947.01 Payment ........................................... 3903
3901
================================================================================
Chapter 39
Bund Futures
================================================================================
Ch39 Trading Conditions
3901.01 Authority - Trading in Bund futures may be conducted under such terms
and conditions as may be prescribed by regulation. (04/01/04)
3902.01 Application of Regulations - Transactions in Bund futures shall be
subject to the general rules of the Exchange as far as applicable and shall also
be subject to the regulations contained in this chapter, which are exclusively
applicable to trading in Bund futures. Bund futures are listed for trading by
the Exchange pursuant to Commodity Futures Trading Commission exchange
certification procedures. (04/01/04)
3904.01 Unit of Trading - The unit of trading shall be Bundesanleihen (Bunds)
issued by the Federal Republic of Germany, having face value at maturity of one
hundred thousand euros (EUR 100,000) or multiples thereof, and having remaining
term to maturity between 8 years 6 months and 10 years 6 months. (04/01/04)
3905.01 Months Traded In - Trading in Bund futures may be scheduled in such
months as determined by the Exchange. (04/01/04)
3906.01 Price Basis - The price of Bund futures contracts shall be quoted in
points and hundredths of one point. One point shall equal EUR 1,000, and par
shall be on the basis of 100 points. The minimum price fluctuation shall be one
hundredth (0.01) of one point, or EUR 10 per contract, except for intermonth
spreads, for which the minimum price fluctuation shall be one half of one
hundredth (0.005) of one point, or EUR 5 per contract. Contracts shall not be
made on any other price basis. (04/01/04)
3907.01 Hours of Trading - The hours of trading in Bund futures shall be
determined by the Exchange. Trading in an expiring Bund futures contract shall
cease at 12:30 p.m. Central Europe time on the last trading day of said futures
contract. The market shall be opened and closed for all months simultaneously or
in such other manner as the Exchange shall direct. (04/01/04)
3909.01 Last Day of Trading - The last trading day in a Bund futures contract
shall be the second Frankfurt business day that precedes the tenth calendar day
of the contract's delivery month. If the tenth calendar day of the contract's
delivery month is not a Frankfurt business day, then the last trading day of
said Bund futures contract shall be the second Frankfurt business day that
precedes the Frankfurt business day immediately following the tenth calendar
day. (04/01/04)
3909.02 Liquidation During the Delivery Month - After trading has ceased in
contracts for future delivery in the current delivery month (in accordance with
Regulation 3909.01), outstanding contracts shall be liquidated by cash
settlement as prescribed in Regulation 3942.01. (04/01/04)
3910.01 Margin Requirements - (See Regulation 431.03). (04/01/04)
3912.01 Position Limits and Reportable Positions - (See Regulation 425.01).
(04/01/04)
3902
Ch39 Delivery Procedures
3936.01 Standards - The contract grade shall be any Bundesanleihe (Bund) issued
by the Federal Republic of Germany that has:
(a) face value at maturity of one hundred thousand euros (EUR 100,000) or
multiples thereof;
(b) original issue size of at least two billion euros (EUR 2,000,000,000);
(c) remaining term to maturity between 8 years 6 months and 10 years 6 months
as of the tenth calendar day of the contract's delivery month (or, if the
tenth calendar day of the contract's delivery month is not a Frankfurt
business day, then the Frankfurt business day immediately following the
tenth calendar day).
Determination of contract final settlement price shall be as prescribed in
Regulation 3942.01. The price, P, at which any Bund that meets contract grade
shall enter into determination of the contract final settlement price shall be:
P = M / CF , where:
M is the market price of said Bund, as of 12:30 p.m. Central Europe
time on the last trading day of said futures contract, as determined
and furnished to the Exchange by the Exchange's approved price data
provider. Said market price shall be represented in points and
hundredths of points, and par shall be on the basis of 100 points.
CF is a conversion factor, computed and published by the Exchange,
that reflects the price (per face value at maturity of one euro (EUR
1)) at which said Bund will yield 6% per annum.
If the Exchange's approved price data provider fails to report said market price
on the last day of trading for any Bund that meets contract grade, then the
contract final settlement price shall be based upon market prices, as of 12:30
p.m. Central Europe time on the next Frankfurt business day for which prices are
reported by the Exchange's approved price data provider, for all Bunds that meet
contract grade. (04/01/04)
3942.01 Delivery on Futures Contracts - Delivery against Bund futures shall be
made by cash settlement through the Clearing Services Provider following normal
variation margin procedures. Generally, contract final settlement value (defined
below) shall be calculated on the last day of trading, after the Exchange's
approved price data provider has furnished to the Exchange market prices for the
last day of trading for all Bunds that meet contract grade (as prescribed in
Regulation 3936.01). For exceptions to this schedule, see Regulation 3936.01.
The contract final settlement value shall be determined as:
EUR 1,000 x Minimum{P\\1\\....P\\i\\....P\\n\\}
where n is the number of Bunds that meet contract grade, and the P\\i\\, i = 1
through n inclusive, are the prices at which Bunds that meet contract grade
shall enter into determination of the contract final settlement price (as
prescribed in Regulation 3936.01).
The final settlement price shall be the final settlement value, so determined,
rounded to the nearest one thousandth (0.001) of a price point, i.e., the
nearest EUR 1. In the event that the final settlement value is at the exact
midpoint between any two adjacent thousandths of a price point, the final
settlement price will be obtained by rounding up to the nearest thousandth of a
price point. (04/01/04)
3947.01 Payment - (See Regulation 1049.04) (04/01/04)
3903
================================================================================
Chapter 40
Bobl Futures
================================================================================
Ch40 Trading Conditions .......................................... 4002
4001.01 Authority ..................................... 4002
4002.01 Application of Regulations .................... 4002
4004.01 Unit of Trading ............................... 4002
4005.01 Months Traded In .............................. 4002
4006.01 Price Basis ................................... 4002
4007.01 Hours of Trading .............................. 4002
4009.01 Last Day of Trading ........................... 4002
4009.02 Liquidation During the Delivery Month ......... 4002
4010.01 Margin Requirements ........................... 4002
4012.01 Position Limits and Reportable Positions ...... 4002
Ch40 Delivery Procedures ......................................... 4003
4036.01 Standards ..................................... 4003
4942.01 Delivery on Futures Contracts ................. 4003
4047.01 Payment ....................................... 4003
4001
================================================================================
Chapter 40
Bobl Futures
================================================================================
Ch40 Trading Conditions
4001.01 Authority - Trading in Bobl futures may be conducted under such terms
and conditions as may be prescribed by regulation. (04/01/04)
4002.01 Application of Regulations - Transactions in Bobl futures shall be
subject to the general rules of the Exchange as far as applicable and shall also
be subject to the regulations contained in this chapter, which are exclusively
applicable to trading in Bobl futures. Bobl futures are listed for trading by
the Exchange pursuant to Commodity Futures Trading Commission exchange
certification procedures. (04/01/04)
4004.01 Unit of Trading - The unit of trading shall be Bundesanleihen (Bunds)
and Bundesobligationen (Bobls) issued by the Federal Republic of Germany, having
face value at maturity of one hundred thousand euros (EUR 100,000) or multiples
thereof, and having remaining term to maturity between 4 years 6 months and 5
years 6 months. (04/01/04)
4005.01 Months Traded In - Trading in Bobl futures may be scheduled in such
months as determined by the Exchange. (04/01/04)
4006.01 Price Basis - The price of Bobl futures contracts shall be quoted in
points and hundredths of one point. One point shall equal EUR 1,000, and par
shall be on the basis of 100 points. The minimum price fluctuation shall be one
hundredth (0.01) of one point, or EUR 10 per contract, except for intermonth
spreads, for which the minimum price fluctuation shall be one half of one
hundredth (0.005) of one point, or EUR 5 per contract. Contracts shall not be
made on any other price basis. (04/01/04)
4007.01 Hours of Trading - The hours of trading in Bobl futures shall be
determined by the Exchange. Trading in an expiring Bobl futures contract shall
cease at 12:30 p.m. Central Europe time on the last trading day of said futures
contract. The market shall be opened and closed for all months simultaneously or
in such other manner as the Exchange shall direct. (04/01/04)
4009.01 Last Day of Trading - The last trading day in a Bobl futures contract
shall be the second Frankfurt business day that precedes the tenth calendar day
of the contract's delivery month. If the tenth calendar day of the contract's
delivery month is not a Frankfurt business day, then the last trading day of
said Bobl futures contract shall be the second Frankfurt business day that
precedes the Frankfurt business day immediately following the tenth calendar
day. (04/01/04)
4009.02 Liquidation During the Delivery Month - After trading has ceased in
contracts for future delivery in the current delivery month (in accordance with
Regulation 4009.01), outstanding contracts shall be liquidated by cash
settlement as prescribed in Regulation 4042.01. (04/01/04)
4010.01 Margin Requirements - (See Regulation 431.03). (04/01/04)
4012.01 Position Limits and Reportable Positions - (See Regulation 425.01).
(04/01/04)
4002
Ch40 Delivery Procedures
4036.01 Standards - The contract grade shall be any Bundesanleihe (Bund) or
Bundesobligation (Bobl) issued by the Federal Republic of Germany that has:
(a) face value at maturity of one hundred thousand euros (EUR 100,000) or
multiples thereof;
(b) original issue size of at least two billion euros (EUR 2,000,000,000);
(c) remaining term to maturity between 4 years 6 months and 5 years 6 months as
of the tenth calendar day of the contract's delivery month (or, if the
tenth calendar day of the contract's delivery month is not a Frankfurt
business day, then the Frankfurt business day immediately following the
tenth calendar day).
Determination of contract final settlement price shall be as prescribed in
Regulation 4042.01. The price, P, at which any Bund or Bobl that meets contract
grade shall enter into determination of the contract final settlement price
shall be:
P = M / CF , where:
M is the market price of said Bund or Bobl, as of 12:30 p.m. Central
Europe time on the last trading day of said futures contract, as
determined and furnished to the Exchange by the Exchange's approved
price data provider. Said market price shall be represented in points
and hundredths of points, and par shall be on the basis of 100 points.
CF is a conversion factor, computed and published by the Exchange,
that reflects the price (per face value at maturity of one euro (EUR
1)) at which said Bund or Bobl will yield 6% per annum.
If the Exchange's approved price data provider fails to report said market price
on the last day of trading for any Bund or Bobl that meets contract grade, then
the contract final settlement price shall be based upon market prices, as of
12:30 p.m. Central Europe time on the next Frankfurt business day for which
prices are reported by the Exchange's approved price data provider, for all
Bunds and Bobls that meet contract grade. (04/01/04)
4042.01 Delivery on Futures Contracts - Delivery against Bobl futures shall be
made by cash settlement through the Clearing Services Provider following normal
variation margin procedures. Generally, contract final settlement value (defined
below) shall be calculated on the last day of trading, after the Exchange's
approved price data provider has furnished to the Exchange market prices for the
last day of trading for all Bunds and Bobls that meet contract grade (as
prescribed in Regulation 4036.01). For exceptions to this schedule, see
Regulation 4036.01.
The contract final settlement value shall be determined as:
EUR 1,000 x Minimum{P\\1\\....P\\i\\....P\\n\\}
where n is the number of Bunds and Bobls that meet contract grade, and the
P\\i\\, i = 1 through n inclusive, are the prices at which Bunds and Bobls that
meet contract grade shall enter into determination of the contract final
settlement price (as prescribed in Regulation 4036.01).
The final settlement price shall be the final settlement value, so determined,
rounded to the nearest one thousandth (0.001) of a price point, i.e., the
nearest EUR 1. In the event that the final settlement value is at the exact
midpoint between any two adjacent thousandths of a price point, the final
settlement price will be obtained by rounding up to the nearest thousandth of a
price point. (04/01/04)
4047.01 Payment - (See Regulation 1049.04) (04/01/04)
4003
================================================================================
Chapter 41
Schatz Futures
================================================================================
Ch41 Trading Conditions ............................................. 4102
4101.01 Authority ........................................ 4102
4102.01 Application of Regulations ....................... 4102
4104.01 Unit of Trading .................................. 4102
4105.01 Months Traded In ................................. 4102
4106.01 Price Basis ...................................... 4102
4107.01 Hours of Trading ................................. 4102
4109.01 Last Day of Trading .............................. 4102
4109.02 Liquidation During the Delivery Month ............ 4102
4110.01 Margin Requirements .............................. 4102
4112.01 Position Limits and Reportable Positions ......... 4102
Ch41 Delivery Procedures ............................................ 4103
4136.01 Standards ........................................ 4103
4142.01 Delivery on Futures Contracts .................... 4103
4147.01 Payment .......................................... 4103
4101
================================================================================
Chapter 41
Schatz Futures
================================================================================
Ch41 Trading Conditions
4101.01 Authority - Trading in Schatz futures may be conducted under such terms
and conditions as may be prescribed by regulation. (04/01/04)
4102.01 Application of Regulations - Transactions in Schatz futures shall be
subject to the general rules of the Exchange as far as applicable and shall also
be subject to the regulations contained in this chapter, which are exclusively
applicable to trading in Schatz futures. Schatz futures are listed for trading
by the Exchange pursuant to Commodity Futures Trading Commission exchange
certification procedures. (04/01/04)
4104.01 Unit of Trading - The unit of trading shall be Bundesanleihen (Bunds),
Bundesobligationen (Bobls), and Bundesschatzanweisungen (Schatz) issued by the
Federal Republic of Germany, having face value at maturity of one hundred
thousand euros (EUR 100,000) or multiples thereof, and having remaining term to
maturity between 1 year 9 months and 2 years 3 months. (04/01/04)
4105.01 Months Traded In - Trading in Schatz futures may be scheduled in such
months as determined by the Exchange. (04/01/04)
4106.01 Price Basis - The price of Schatz futures contracts shall be quoted in
points and halves of one hundredth of one point. One point shall equal EUR
1,000, and par shall be on the basis of 100 points. The minimum price
fluctuation shall be one hundredth (0.01) of one point, or EUR 10 per contract,
except for intermonth spreads, for which the minimum price fluctuation shall be
one half of one hundredth (0.005) of one point, or EUR 5 per contract. Contracts
shall not be made on any other price basis. (04/01/04)
4107.01 Hours of Trading - The hours of trading in Schatz futures shall be
determined by the Exchange. Trading in an expiring Schatz futures contract shall
cease at 12:30 p.m. Central Europe time on the last trading day of said futures
contract. The market shall be opened and closed for all months simultaneously or
in such other manner as the Exchange shall direct. (04/01/04)
4109.01 Last Day of Trading - The last trading day in a Schatz futures contract
shall be the second Frankfurt business day that precedes the tenth calendar day
of the contract's delivery month. If the tenth calendar day of the contract's
delivery month is not a Frankfurt business day, then the last trading day of
said Schatz futures contract shall be the second Frankfurt business day that
precedes the Frankfurt business day immediately following the tenth calendar
day. (04/01/04)
4109.02 Liquidation During the Delivery Month - After trading has ceased in
contracts for future delivery in the current delivery month (in accordance with
Regulation 4109.01), outstanding contracts shall be liquidated by cash
settlement as prescribed in Regulation 4142.01. (04/01/04)
4110.01 Margin Requirements - (See Regulation 431.03). (04/01/04)
4112.01 Position Limits and Reportable Positions - (See Regulation 425.01).
(04/01/04)
4102
Ch41 Delivery Procedures
4136.01 Standards - The contract grade shall be any Bundesanleihe (Bund),
Bundesobligation (Bobl), or Bundesschatzanweisung (Schatz) issued by the Federal
Republic of Germany that has:
(a) face value at maturity of one hundred thousand euros (EUR 100,000) or
multiples thereof;
(b) original issue size of at least two billion euros (EUR 2,000,000,000);
(c) remaining term to maturity between 1 year 9 months and 2 years 3 months as
of the tenth calendar day of the contract's delivery month (or, if the
tenth calendar day of the contract's delivery month is not a Frankfurt
business day, then the Frankfurt business day immediately following the
tenth calendar day).
Determination of contract final settlement price shall be as prescribed in
Regulation 4142.01. The price, P, at which any Bund, Bobl, or Schatz that meets
contract grade shall enter into determination of the contract final settlement
price shall be:
P = M / CF , where:
M is the market price of said Bund, Bobl, or Schatz, as of 12:30 p.m.
Central Europe time on the last trading day of said futures contract,
as determined and furnished to the Exchange by the Exchange's approved
price data provider. Said market price shall be represented in points
and hundredths of points, and par shall be on the basis of 100 points.
CF is a conversion factor, computed and published by the Exchange,
that reflects the price (per face value at maturity of one euro (EUR
1)) at which said Bund, Bobl, or Schatz will yield 6% per annum.
If the Exchange's approved price data provider fails to report said market price
on the last day of trading for any Bund, Bobl, or Schatz that meets contract
grade, then the contract final settlement price shall be based upon market
prices, as of 12:30 p.m. Central Europe time on the next Frankfurt business day
for which prices are reported by the Exchange's approved price data provider,
for all Bunds, Bobls, and Schatz that meet contract grade. (04/01/04)
4142.01 Delivery on Futures Contracts - Delivery against Schatz futures shall
be made by cash settlement through the Clearing Services Provider following
normal variation margin procedures. Generally, contract final settlement value
(defined below) shall be calculated on the last day of trading, after the
Exchange's approved price data provider has furnished to the Exchange market
prices for the last day of trading for all Bunds, Bobls, and Schatz that meet
contract grade (as prescribed in Regulation 4136.01). For exceptions to this
schedule, see Regulation 4136.01.
The contract final settlement value shall be determined as:
EUR 1,000 x Minimum{P\\1\\...P\\i\\...P\\n\\}
where n is the number of Bunds, Bobls, and Schatz that meet contract grade, and
the P\\i\\ , i = 1 through n inclusive, are the prices at which Bunds, Bobls,
and Schatz that meet contract grade shall enter into determination of the
contract final settlement price (as prescribed in Regulation 4136.01).
The final settlement price shall be the final settlement value, so determined,
rounded to the nearest one thousandth (0.001) of a price point, i.e., the
nearest EUR 1. In the event that the final settlement value is at the exact
midpoint between any two adjacent thousandths of a price point, the final
settlement price will be obtained by rounding up to the nearest thousandth of a
price point. (04/01/04)
4147.01 Payment - (See Regulation 1049.04) (04/01/04)
4103
[Enlarge/Download Table]
=========================================================================================================
Chapter 43
CBOT(R) Dow Jones Industrial Average(SM) Index Futures
=========================================================================================================
Ch 43 Trading Conditions.....................................................................
4301.00 Authority...................................................................
4302.01 Application of Regulation...................................................
4303.01 Emergencies, Acts of God, Acts of Government................................
4304.01 Unit of Trading.............................................................
4305.01 Months Traded In............................................................
4306.01 Price Basis.................................................................
4307.01 Hours of Trading............................................................
4308.01 Price Limits and Trading Halts..............................................
4309.01 Last Day of Trading.........................................................
4309.02 Liquidation During the Delivery Month.......................................
4310.01 Margin Requirements.........................................................
4312.01 Position Limits and Reportable Positions....................................
Ch 43 Delivery Procedures....................................................................
4336.01 Standards...................................................................
4342.01 Delivery on Futures Contracts...............................................
4342.02 Final Settlement Price......................................................
4342.03 The Final Settlement Day....................................................
4347.01 Payment.....................................................................
4348.01 Disclaimer..................................................................
================================================================================
Chapter 43
CBOT(R) Dow Jones Industrial Average(SM) Index/1/ Futures
================================================================================
Ch 43 Trading Conditions
4301.00 Authority - (See 1701.00) (11/01/97)
4302.01 Application of Regulations - Futures transactions in CBOT Dow Jones
Industrial Average(SM) ("DJIA") Index contracts shall be subject to the general
rules of the Association as far as applicable and shall also be subject to the
regulations contained in this chapter, which are exclusively applicable to
trading in CBOT Dow Jones Industrial Average(SM) Index contracts. (09/01/00)
4303.01 Emergencies, Acts of God, Acts of Government - If delivery or
acceptance or any precondition or requirement of either, is prevented by
strike, fire, accident, act of government, act of God or other emergency, the
seller or buyer shall immediately notify the Chairman. If the Chairman
determines that emergency action may be necessary, he shall call a special
meeting of the Board and arrange for the presentation of evidence respecting
the emergency condition. If the Board determines that an emergency exists, it
shall take such action under Rule 180.00 as it deems necessary under the
circumstances and its decision shall be binding upon all parties to the
contract. (11/01/97)
4304.01 Unit of Trading - The unit of trading shall be $10.00 times the Dow
Jones Industrial Average(SM). The Dow Jones Industrial Average(SM) is a price-
weighted composite index of 30 stocks. (11/01/97)
4305.01 Months Traded In - The months listed for trading are March, June,
September and December, at the discretion of the Exchange. (11/01/97)
4306.01 Price Basis - The price of the CBOT Dow Jones Industrial Average(SM)
Index futures shall be quoted in points. One point equals $10.00. The minimum
price fluctuation shall be one point per contract. Contracts shall not be made
on any other price basis. (11/01/97)
4307.01 Hours of Trading - The hours of trading for future delivery in CBOT
Dow Jones Industrial Average(SM) Index futures shall be determined by the
Board.
The market shall be opened and closed for all months simultaneously, or in such
other manner as the Regulatory Compliance Committee shall direct. (11/01/97)
4308.01 Price Limits and Trading Halts - (See Regulation 1008.01) (11/01/97)
4309.01 Last Day of Trading - The last day of trading in CBOT Dow Jones
Industrial Average
_____________________
1 "Dow Jones(SM)", "The Dow(SM)", Dow Jones Industrial Average(SM)" and
"DJIA(SM)" are service marks of Dow Jones & Company, Inc. and have
been licensed for use for certain purposes by the Board of Trade of
the City of Chicago ("CBOT".). The CBOT's futures and futures option
contracts based on the Dow Jones Industrial Average(SM) are not
sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones,
and Dow Jones makes no representation regarding the advisability of
trading in such product(s).
Ch 43 Trading Conditions
------------------------
Index futures contracts deliverable in the current delivery month shall be the
trading day immediately preceding the final settlement day (as described in
Regulation 4342.03). (11/01/97)
4309.02 Liquidation During the Delivery Month - After trading in contracts
for future delivery in the current delivery month has ceased, in accordance with
Regulation 4309.01 of this chapter, outstanding contracts for such delivery
shall be liquidated by cash settlement as prescribed in Regulation 4342.01.
(11/01/97)
4310.01 Margin Requirements - (See Regulation 431.03) (11/01/97)
4312.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(11/01/97)
Ch 43 Delivery Procedures
4336.01 Standards - The contract grade shall be the final settlement price
(as described in Regulation 4342.02) of the Dow Jones Industrial Average(SM)
Index on final settlement day (as described in Regulation 4342.03). (11/01/97)
4342.01 Delivery on Futures Contracts - Delivery against the CBOT Dow Jones
Industrial Average(SM) Index Futures contract must be made through the Clearing
Services Provider. Delivery under these regulations shall be on the final
settlement day (as described in regulation 4342.03) and shall be accomplished by
cash settlement as hereinafter provided.
Clearing members holding open positions in a CBOT Dow Jones Industrial
Average(SM) Index futures contract at the time of termination of trading shall
make payment to and receive payment through the Clearing Services Provider in
accordance with normal variation settlement procedures based on a settlement
price equal to the final settlement price (as described in Regulation 4342.02).
(12/01/03)
4342.02 Final Settlement Price - The final settlement price shall be
determined on the final settlement day. The final settlement price shall be $10
times a Special Open Quotation (SOQ) of the Dow Jones Industrial Average(SM)
Index based on the opening prices of the component stocks in the index, or on
the last sale price of a stock that does not open for trading on the regularly
scheduled day of final settlement (as described in Regulation 4342.03).
If the New York Stock Exchange ("NYSE") does not open on the day scheduled for
the determination of the final settlement price, then the NYSE-stock component
of the final settlement price shall be based on the next opening prices for NYSE
stocks. (11/01/97)
4342.03 The Final Settlement Day - The final settlement day shall be defined
as the third Friday of the contract month, or if the Dow Jones Industrial
Average(SM) is not published for that day, the first preceding business day for
which the Dow Jones Industrial Average(SM) is scheduled to be published.
(11/01/97)
4347.01 Payment - (See Regulation 1049.04.) (11/01/97)
4348.01 Disclaimer -
CBOT Dow Jones Industrial Average(SM) Index futures and futures options
contracts are not sponsored, endorsed, sold or promoted by Dow Jones. Dow Jones
makes no representation or warranty, express or implied, to the owners of CBOT
Dow Jones Industrial Average(SM) Index futures and futures options contracts or
any member of the public regarding the advisability of trading in CBOT Dow Jones
Industrial Average(SM) Index futures and futures options contracts. Dow Jones'
only relationship to the Exchange is the licensing of certain trademarks and
trade names of Dow Jones and of the Dow Jones Industrial Average(SM) which is
determined, composed and calculated by Dow Jones without regard to the Chicago
Board of Trade or CBOT Dow Jones Industrial Average(SM) Index futures and
futures options contracts. Dow Jones has no obligation to take the needs of the
Chicago Board of Trade or the owners of CBOT Dow Jones Industrial Average(SM)
Index futures and futures options contracts into consideration in determining,
composing or calculating the Dow Jones Industrial Average(SM). Dow Jones is not
responsible for and has not participated in the determination of the timing of,
prices at, or quantities of CBOT Dow Jones Industrial Average(SM) Index futures
and futures options contracts to be listed or in the determination or
calculation of the equation by which CBOT Dow Jones Industrial Average(SM) Index
futures and futures options contracts are to be converted into cash. Dow Jones
has no obligation or liability in connection with the administration, marketing
or trading of the CBOT Dow Jones Industrial Average(SM) Index futures and
futures options contracts.
DOW JONES DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE DOW
JONES INDUSTRIAL AVERAGE(SM) OR ANY DATA INCLUDED THEREIN AND DOW JONES SHALL
HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. DOW JONES
MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE
CHICAGO BOARD OF TRADE, OWNERS OF CBOT DOW JONES INDUSTRIAL AVERAGE(SM) INDEX
FUTURES AND FUTURES OPTIONS CONTRACTS, OR ANY OTHER PERSON OR ENTITY FROM THE
USE OF THE DOW JONES INDUSTRIAL AVERAGE(SM) OR ANY DATA INCLUDED THEREIN. DOW
JONES MAKES NO EXPRESS OR IMPLIED
Ch 43 Delivery procedures
-------------------------
WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OR MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE DOW JONES INDUSTRIAL
AVERAGE(SM) OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING,
IN NO EVENT SHALL DOW JONES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT,
PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF
NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. THERE ARE NO THIRD PARTY
BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN DOW JONES AND THE
CHICAGO BOARD OF TRADE. (11/01/97)
[Enlarge/Download Table]
=======================================================================================================
Chapter 44
CBOT(R) Dow Jones Industrial Average(SM) Index Futures Options
=======================================================================================================
Ch 44 Trading Conditions.....................................................................
4401.00 Authority....................................................................
4401.01 Application of Regulations...................................................
4402.01 Nature of CBOT Dow Jones Industrial Average(SM) Index Futures Put Options....
4402.02 Nature of Dow Jones Industrial Average(SM) Index Futures Call Options........
4403.01 Trading Unit.................................................................
4404.01 Striking Prices..............................................................
4405.01 Payment of Option Premium....................................................
4406.01 Option Premium Basis.........................................................
4407.01 Exercise of Option...........................................................
4407.02 Automatic Exercise...........................................................
4408.01 Expiration of Option.........................................................
4409.01 Months Traded In.............................................................
4410.01 Trading Hours................................................................
4411.01 Position Limits and Reportable Positions.....................................
4412.01 Margin Requirements..........................................................
4413.01 Last Day of Trading..........................................................
4414.01 Option Premium Fluctuation Limits............................................
4414.02 Trading Halts on Project A.02................................................
4415.01 Disclaimer...................................................................
================================================================================
Chapter 44
CBOT(R) Dow Jones Industrial Average(SM) Index/1/
Futures Options
================================================================================
Ch 44 Trading Conditions
4401.00 Authority - (See Rule 2801.00) (11/01/97)
4401.01 Application of Regulations - Transactions in put and call options on
CBOT Dow Jones Industrial Average(SM) ("DJIA") Index futures contracts shall be
subject to the general rules of the Association as far as applicable and shall
also be subject to the regulations contained in this chapter which are
exclusively applicable to trading in put and call options on CBOT Dow Jones
Industrial Average(SM) Index futures contracts. (See Rule 490.00) (09/01/00)
4402.01 Nature of CBOT Dow Jones Industrial Average(SM) Index Futures Put
Options- The buyer of one (1) CBOT Dow Jones Industrial Average(SM) Index
futures put option may exercise his option at any time prior to expiration
(subject to Regulation 4407.01), to assume a short position in one (1) CBOT Dow
Jones Industrial Average(SM) Index futures contract of a specified contract
month at a striking price set at the time the option was purchased. The seller
of one (1) CBOT Dow Jones Industrial Average(SM) Index futures put option incurs
the obligation of assuming a long position in one (1) CBOT Dow Jones Industrial
Average(SM) Index futures contract of a specified contract month at a striking
price set at the time the option was sold, upon exercise by a put option buyer.
(11/01/97)
4402.02 Nature of Dow Jones Industrial Average(SM) Index Futures Call
Options -The buyer of one (1) CBOT Dow Jones Industrial Average(SM) Index
futures call option may exercise his option at any time prior to expiration
(subject to Regulation 4407.01), to assume a long position in one (1) CBOT Dow
Jones Industrial Average(SM) Index futures contract of a specified contract
month at a striking price set at the time the option was purchased. The seller
of one (1) CBOT Dow Jones Industrial Average(SM) Index futures call option
incurs the obligation of assuming a short position in one (1) CBOT Dow Jones
Industrial Average(SM) Index futures contract of a specified contract month at a
striking price set at the time the option was sold, upon exercise by a call
option buyer. (11/01/97)
4403.01 Trading Unit - One (1) CBOT Dow Jones Industrial Average(SM) Index
futures contract of a specified contract month on the Chicago Board of Trade.
(11/01/97)
4404.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices in integral multiples of one hundred (100) index points per
CBOT Dow Jones Industrial Average Index futures contract and in integral
multiples of two hundred (200) index points per CBOT Dow Jones Industrial
Average(SM) Index futures contract as follows:
A. At the commencement of trading for quarterly and non-quarterly expirations,
the following strike prices in one hundred point intervals shall be listed:
one with a striking price closest to the previous day's settlement price on
the underlying CBOT Dow Jones Industrial Average Index futures contract and
the next twenty consecutive higher and the next twenty consecutive lower
striking prices closest to the previous day's settlement price. If the
previous day's settlement price is midway between two striking prices, the
closest price shall be the larger of the two. Over time new striking prices
will be added
____________
/1/ "Dow Jones(SM)", "The Dow(SM)", "Dow Jones Industrial Average(SM)", and
"DJIA(SM)" are service marks of Dow Jones & Company, Inc. and have been
licensed for use for certain purposes by the Board of Trade of the City of
Chicago ("CBOT."). The CBOT's futures and futures options contracts based
on the Dow Jones Industrial Average(SM) are not sponsored, endorsed, sold
or promoted by Dow Jones, and Dow Jones makes no representation regarding
the advisability of trading in such product(s).
Ch 44 Trading Conditions
------------------------
to ensure that at least twenty one hundred point striking prices always
exist above and below the previous day's settlement price in the underlying
futures.
B. At the commencement of trading for quarterly and non-quarterly expirations,
the following strike prices in two hundred point intervals shall be listed:
the next ten consecutive higher and the next ten consecutive lower
strike prices above and below the strike price band as stipulated in
Regulation 4404.01(A). Over time new striking prices will be added to
ensure that at least ten striking prices in two hundred point intervals
always exist above and below the strike price band as stipulated in
Regulation 4404.01(A).
C. At the end of each quarterly cycle, the Exchange shall reset every listed
month's strike prices to conform with Regulation 4404.01(A) and Regulation
4404.01(B). The newly calculated strike price band will be based on the
final settlement price on the last business day of the quarterly cycle of
the underlying futures contract. The Exchange will delist all previously
listed strike prices that are not one of the newly calculated strike
prices, provided that the strike to be delisted has neither call nor put
open interest.
D. All new strike prices will be added prior to the opening of trading on the
following business day. The Exchange may modify the procedure for the
introduction of striking prices as it deems appropriate in order to respond
to market conditions. (11/01/03)
4405.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (12/01/03)
4406.01 Option Premium Basis - The premium for CBOT Dow Jones Industrial
Average(SM) Index futures options shall be in multiples of one-half (1/2) of one
index point of a CBOT Dow Jones Industrial Average(SM) Index futures contract
which shall equal $5.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $5.00 in $1.00 increments per option contract.
(11/01/97)
4407.01 Exercise of Option - The buyer of a CBOT Dow Jones Industrial
Average(SM) Index futures option may exercise the option on any business day
prior to expiration by giving notice of exercise to the Clearing Services
Provider by 6:00 p.m., or by such other time designated by the Exchange, on such
day. (12/01/03)
4407.02 Automatic Exercise - Notwithstanding the provisions of Regulation
4407.01, for options with quarterly expirations, all in-the-money2 options shall
be automatically exercised after 6:00 p.m. on the business day following the
last day of trading, or such other time designated by the Exchange, unless
notice to cancel automatic exercise is given to the Clearing Services Provider.
Notwithstanding the provisions of Regulation 4407.01, for options with
non-quarterly expirations, all in-the-money options shall be automatically
exercised after 6:00 p.m. on the last day of trading, or such other time
designated by the Exchange, unless notice to cancel automatic exercise is given
to the Clearing Services Provider.
For options with quarterly expirations, notice to cancel automatic exercise
shall be given to the Clearing Services Provider by 6:00 p.m., or by such other
time designated by the Exchange, on the business day following the last day of
trading. For options with non-quarterly expirations, notice to cancel automatic
exercise shall be given to the Clearing Services Provider by 6:00 p.m., or by
such other time designated by the Exchange, on the last day of
trading. (12/01/03)
4408.01 Expiration of Option - Unexercised CBOT Dow Jones Industrial
Average(SM) Index futures options with quarterly expirations shall expire at
7:00 p.m. on the business day following the last day of trading.
Unexercised CBOT Dow Jones Industrial Average(SM) Index futures options with
non-quarterly expirations shall expire at 7:00 p.m. on the last day of trading.
(11/01/97)
4409.01 Months Traded In - The months listed for trading are January through
December at the discretion of the Exchange; provided however, that the Exchange
may determine not to list a contract month. For options that are traded in
months in which CBOT Dow Jones Industrial Average(SM) Index futures are not
traded, the underlying futures contract is the next futures contract that is
nearest to the expiration of the option. For example, the underlying futures
contract for the October or November option contract is the December futures
contract. (01/01/98)
4410.01 Trading Hours - The hours of trading of options on CBOT Dow Jones
Industrial
_______________
/2/ An option is in-the-money if the settlement price of the underlying futures
contract is less in the case of a put, or greater in the case of a call
than the exercise price for the option.
Ch 44 Trading Conditions
------------------------
Average(SM) Index futures contracts shall be determined by the Board.
On the last day of trading in an expiring option the closing time for such
option shall be the same as the underlying futures contract, subject to the
provisions of the second paragraph of Rule 1007.00. On the last day of trading
in an expiring option, the expiring CBOT Dow Jones Industrial Average(SM) Index
futures options shall be closed with a public call, made strike price by strike
price, conducted by such persons as the Regulatory Compliance Committee shall
direct. CBOT Dow Jones Industrial Average(SM) Index futures options shall be
opened and closed for all months and strike prices simultaneously or in such a
manner as the Regulatory Compliance Committee shall direct. (11/01/97)
4411.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(10/01/00)
4412.01 Margin Requirements - (See Regulation 431.05) (11/07/97)
4413.01 Last Day of Trading - For options expiring on the quarterly cycle,
trading shall terminate at the same date and time as the underlying futures
contract. For options that expire in months other than those in the quarterly
cycle, options trading shall terminate on the third Friday of the option
contract month, at the end of the regular trading session. If that day is not an
Exchange business day, options trading shall terminate on the first preceding
business day. (11/01/97)
4414.01 Option Premium Fluctuation Limits - Option premium limits for the CBOT
Dow Jones Industrial Average(SM) Index futures options shall correspond to the
daily trading limit in effect at that time for the underlying futures contract
as specified in Regulation 1008.01F. There shall be no trading in any option
contract during a period in which trading in the underlying future is halted as
specified in Regulation 1008.01F. On the first day of trading, limits shall be
set from the lowest premium of the opening range. (11/01/97)
4414.02 Trading Halts on e-cbot - There shall be no trading in any option
contract during e-cbot trading hours when the CBOT Dow Jones Industrial
Average(SM) Index primary futures contract is limit bid or limit offered at the
e-cbot price limit. (09/01/00)
4415.01 Disclaimer -
CBOT Dow Jones Industrial Average(SM) Index futures and futures options are not
sponsored, endorsed, sold or promoted by Dow Jones. Dow Jones makes no
representation or warranty, express or implied, to the owners of CBOT Dow Jones
Industrial Average(SM) Index futures and futures options contracts or any member
of the public regarding the advisability of trading in CBOT Dow Jones Industrial
Average(SM) Index futures and futures options contracts. Dow Jones' only
relationship to the Exchange is the licensing of certain trademarks and trade
names of Dow Jones and of the Dow Jones Industrial Average(SM) which is
determined, composed and calculated by Dow Jones without regard to the Chicago
Board of Trade or CBOT Dow Jones Industrial Average(SM) Index futures and
futures options contracts. Dow Jones has no obligation to take the needs of the
Chicago Board of Trade or the owners of CBOT Dow Jones Industrial Average(SM)
Index futures and futures options contracts into consideration in determining,
composing or calculating the Dow Jones Industrial Average(SM). Dow Jones is not
responsible for and has not participated in the determination of the timing of,
prices at, or quantities of CBOT Dow Jones Industrial Average(SM) Index futures
and futures options contracts to be listed or in the determination or
calculation of the equation by which CBOT Dow Jones Industrial Average(SM) Index
futures and futures options contracts are to be converted into cash. Dow Jones
has no obligation or liability in connection with the administration, marketing
or trading of CBOT Dow Jones Industrial Average(SM) Index futures and futures
options contracts.
DOW JONES DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE DOW
JONES INDUSTRIAL AVERAGE(SM) OR ANY DATA INCLUDED THEREIN AND DOW JONES SHALL
HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. DOW JONES
MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE
CHICAGO BOARD OF TRADE, OWNERS OF CBOT DOW JONES INDUSTRIAL AVERAGE(SM) INDEX
FUTURES AND FUTURES OPTIONS CONTRACTS, OR ANY OTHER PERSON OR ENTITY FROM THE
USE OF THE DOW JONES INDUSTRIAL AVERAGE(SM) OR ANY DATA INCLUDED THEREIN. DOW
JONES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL
WARRANTIES, OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH
RESPECT TO THE DOW JONES INDUSTRIAL AVERAGE(SM) OR ANY DATA INCLUDED THEREIN.
WITHOUT LIMITING ANY OF
Ch 44 Trading Conditions
------------------------
THE FOREGOING, IN NO EVENT SHALL DOW JONES HAVE ANY LIABILITY FOR ANY LOST
PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOST
PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. THERE ARE NO
THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN DOW JONES
AND THE CHICAGO BOARD OF TRADE. (11/01/97)
[Download Table]
================================================================================
Chapter 49
10-Year Interest Rate Swap Futures
================================================================================
Ch49 Trading Conditions................................. 4902
4901.01 Authority................................. 4902
4902.01 Application of Regulations................ 4902
4904.01 Unit of Trading........................... 4902
4905.01 Months Traded In.......................... 4902
4906.01 Price Basis............................... 4902
4907.01 Hours of Trading.......................... 4902
4909.01 Last Day of Trading....................... 4902
4909.02 Liquidation During the Delivery Month..... 4902
4910.01 Margin Requirements....................... 4902
4912.01 Position Limits and Reportable Positions.. 4902
Ch49 Delivery Procedures................................ 4903
4936.01 Standards................................. 4903
4942.01 Delivery on Futures Contracts............. 4903
4947.01 Payment................................... 4903
================================================================================
Chapter 49
10-Year Interest Rate Swap Futures
================================================================================
Ch49 Trading Conditions
4901.01 Authority - Trading in 10-Year Interest Rate Swap futures may be
conducted under such terms and conditions as may be prescribed by regulation.
(11/01/01)
4902.01 Application of Regulations - Transactions in 10-Year Interest Rate
Swap futures contracts shall be subject to the general rules of the Exchange as
far as applicable and shall also be subject to the regulations contained in this
chapter, which are exclusively applicable to trading in 10-Year Interest Rate
Swap futures contracts. 10-Year Interest Rate Swap futures are listed for
trading by the Exchange pursuant to Commodity Futures Trading Commission
exchange certification procedures. (11/01/01)
4904.01 Unit of Trading - The unit of trading shall be the notional price of
the fixed-rate side of a 10-year interest rate swap that has notional principal
equal to $100,000, and that exchanges semiannual interest payments at a fixed
rate of 6% per annum, measured according to a 30/360 daycount convention, for
floating interest rate payments, based on the 3-month London interbank offered
rate (hereafter, LIBOR) and measured according to an actual/360 daycount
convention, and that otherwise conforms to the terms prescribed by the
International Swap and Derivatives Association, Inc. (hereafter, ISDA) for the
purpose of computing the daily fixing of ISDA Benchmark Rates for U.S. dollar
interest rate swaps. (06/01/02)
4905.01 Months Traded In - Trading in 10-Year Interest Rate Swap futures may be
scheduled in such months as determined by the Exchange. (11/01/01)
4906.01 Price Basis - The price of 10-Year Interest Rate Swap futures contracts
shall be quoted in points. One point equals $1,000.00. The minimum price
fluctuation shall be one thirty-second (1/32) of one point or thirty-one dollars
and twenty-five cents ($31.25) per contract except for intermonth spreads,
where minimum price fluctuations shall be in multiples of one-fourth of one
thirty-second point per 100 points ($7.8125 per contract. Contracts shall not
be made on any other price basis. (04/01/02)
4907.01 Hours of Trading - The hours of trading in 10-Year Interest Rate Swap
futures shall be determined by the Board. Trading in an expiring 10-Year
Interest Rate Swap futures contract shall cease at 11:00 a.m. New York time on
the last trading day of said futures contract, subject to the otherwise
applicable provisions of the second paragraph of Rule 1007.00. That is, on the
last day of trading in an expiring future, a bell shall be rung at 11:00 a.m.
New York time designating the beginning of the close of the expiring future.
Trading shall be permitted thereafter for a period not to exceed one minute, and
quotations made during this time shall constitute the close. Following the
above-described closing procedure, the Modified Closing Call will be conducted
in accordance with Regulation 1007.02. The market shall be opened and closed for
all months simultaneously or in such other manner as the Regulatory Compliance
Committee shall direct. (06/01/02)
4909.01 Last Day of Trading - The last trading day of a 10-Year Interest Rate
Swap futures contracts shall be the second London business day before the third
Wednesday of the contract's delivery month. (11/01/01)
4909.02 Liquidation During the Delivery Month - After trading has ceased in
contracts for future delivery in the current delivery month (in accordance with
Regulation 4909.01 of this chapter), outstanding contracts shall be liquidated
by cash settlement as prescribed in Regulation 4942.01. (11/01/01)
4910.01 Margin Requirements - (See Regulation 431.03). (11/01/01)
4912.01 Position Limits and Reportable Positions - (See Regulation 425.01).
(11/01/01)
Ch49 Delivery Procedures
4936.01 Standards - The contract grade shall be the final settlement price of
the unit of trading (as defined in Regulation 4904.01 of this chapter) on the
last day of trading (as defined in Regulation 4909.01 of this chapter).
The final settlement price shall be based upon the ISDA Benchmark Rate** for a
10-year U.S. dollar interest rate swap for the last day of trading, as published
on the last day of trading on Reuters page ISDAFIX1 (or other Reuters page as
shall be designated by ISDA for the purpose of publishing and disseminating ISDA
Benchmark Rates for U.S. Dollar interest rate swaps). Determination of the final
settlement price on the basis of said ISDA Benchmark Rate shall be as prescribed
in Regulation 4942.01 of this chapter.
Hereafter in this chapter, the ISDA Benchmark Rate for a 10-year U.S. dollar
interest rate swap shall be referenced as "the ISDA Benchmark," and ISDAFIX1 (or
other Reuters page as shall be designated by ISDA for the purpose of publishing
and disseminating ISDA Benchmark Rates for U.S. dollar interest rate swaps)
shall be referenced as "Reuters".
If Reuters fails to report the ISDA Benchmark for the last day of trading on the
last day of trading, then the final settlement price shall be based upon the
ISDA Benchmark for the next available business day to be reported by Reuters.
(06/01/02)
4942.01 Delivery on Futures Contracts - Delivery against 10-Year Interest
Rate Swap futures contracts shall be made by cash settlement through the
Clearing Services Provider following normal variation margin procedures.
Generally, final settlement value (defined below) shall be calculated on the
last day of trading after Reuters has published the ISDA Benchmark for the last
day of trading. Generally, such publications will occur at 11:30 a.m. New York
time on the last day of trading. For exceptions to this, see 4936.01.
The final settlement value shall be determined as follows:
Final Settlement Value = $100,000 * [6/r + ( 1-6/r)*(1 + 0.01*r/2)/-20/]
where r represents the ISDA Benchmark for the last day of trading, expressed in
percent terms. For example, if the ISDA Benchmark for the last day of trading
is five and one quarter percent, then r is equal to 5.25.
The final settlement price shall be the final settlement value, so determined,
rounded to the nearest one quarter of one thirty-second of a price point.
Example: Suppose the ISDA Benchmark on the last day of trading is 5.50. The
final settlement value will be $103,806.81. To render this in terms of price
points and quarters of thirty-seconds of price points, note that it is between
103-25.75/32nds and 103-26/32nds (where each price point equals $1,000) --
103-26/32nds = $ 103,812.50
Final settlement value = $ 103,806.81
103-25.75/32nds = $103,804.6875
The final settlement value is nearer to 103-25.75/32nds. Thus, the final
settlement price is obtained by rounding down to 103-25.75/32nds.
In the event that the final settlement value is at the exact midpoint between
any two adjacent quarters of one thirty-second of a price point, the final
settlement price will be obtained by rounding up to the nearest one quarter of a
thirty-second of a price point. (12/01/03)
4947.01 Payment - (See Regulation 1049.04) (11/01/01)
----------
**ISDA Benchmark mid-market par swap rates collected at 11:00 a.m. by Reuters
Limited and Garban Intercapital plc and published on Reuters page ISDAFIX1.
Source: Reuters Limited.
================================================================================
Chapter 50
10-Year Interest Rate Swap Futures Options
================================================================================
[Enlarge/Download Table]
Ch50 Trading Conditions ......................................................... 5002
5000.01 Authority ......................................................... 5002
5001.01 Application of Regulations ........................................ 5002
5002.01 Nature of 10-Year Interest Rate Swap Futures Put Options .......... 5002
5002.02 Nature of 10-Year Interest Rate Swap Futures Call Options ......... 5002
5003.01 Trading Unit ...................................................... 5002
5004.01 Striking Prices ................................................... 5002
5005.01 Payment of Option Premium ......................................... 5002
5006.01 Option Premium Basis .............................................. 5003
5007.01 Exercise of Option ................................................ 5003
5008.01 Expiration of Option .............................................. 5003
5009.01 Months Traded In .................................................. 5003
5010.01 Trading Hours ..................................................... 5003
5011.01 Position Limits and Reportable Positions .......................... 5003
5012.01 Margin Requirements ............................................... 5003
5013.01 Last Day of Trading ............................................... 5003
5001
================================================================================
Chapter 50
10-Year Interest Rate Swap Futures Options
================================================================================
Ch50 Trading Conditions
5000.01 Authority - Trading in put and call options on 10-Year Interest Rate
Swap futures contracts may be conducted under such terms and conditions as may
be prescribed by regulation. (12/01/02)
5001.01 Application of Regulations - Transactions in put and call options on
10-Year Interest Rate Swap futures contracts shall be subject to the general
rules of the Exchange as far as applicable and shall also be subject to the
regulations contained in this Chapter which are exclusively applicable to
trading in put and call options on 10-Year Interest Rate Swap futures contracts.
(See Rule 490.00.) Options on 10-Year Interest Rate Swap futures are listed for
trading by the Exchange pursuant to Commodity Futures Trading Commission
exchange certification procedures. (12/01/02)
5002.01 Nature of 10-Year Interest Rate Swap Futures Put Options - The buyer
of one (1) 10-Year Interest Rate Swap futures put option may exercise his option
at any time prior to expiration (subject to Regulation 5007.01), to assume a
short position in one (1) 10-Year Interest Rate Swap futures contract of a
specified contract month at a strike price set at the time the option was
purchased. The seller of one (1) 10-Year Interest Rate Swap futures put option
incurs the obligation of assuming a long position in one (1) 10-Year Interest
Rate Swap futures contract of a specified contract month at a strike price set
at the time the option was sold, upon exercise by a put option buyer. (12/01/02)
5002.02 Nature of 10-Year Interest Rate Swap Futures Call Options - The buyer
of one (1) 10-Year Interest Rate Swap futures call option may exercise his
option at any time prior to expiration (subject to Regulation 5007.01), to
assume a long position in one (1) 10-Year Interest Rate Swap futures contract of
a specified contract month at a strike price set at the time the option was
purchased. The seller of one (1) 10-Year Interest Rate Swap futures call option
incurs the obligation of assuming a short position in one (1) 10-Year Interest
Rate Swap futures contract of a specified contract month at a strike price set
at the time the option was sold, upon exercise by a call option buyer.
(12/01/02)
5003.01 Trading Unit - One (1) 10-Year Interest Rate Swap futures contract of
a specified contract month on the Board of Trade of the City of Chicago, Inc.
(12/01/02)
5004.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices in integral multiples of one (1) point per 10-Year Interest
Rate Swap futures contract. At the commencement of trading for such option
contracts, the following striking prices shall be listed: one with a striking
price closest to the previous day's settlement price on the underlying 10-Year
Interest Rate Swap futures contract, the next twenty-five (25) consecutive
higher and the next twenty-five (25) consecutive lower strike prices closest to
the previous day's settlement price. If the previous day's settlement price is
midway between two striking prices, the closest price shall be the larger of the
two. Over time, new striking prices will be added to ensure that at least
twenty-five (25) striking prices always exist above and below the previous day's
settlement price on the underlying futures. All new striking prices will be
added prior to the opening of trading on the following business day.
The Exchange may modify the procedure for the introduction of strike prices as
it deems appropriate in order to respond to market conditions. (04/01/04)
5005.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (12/01/03)
5002
Ch50 Trading Conditions
5006.01 Option Premium Basis - The premium for 10-Year Interest Rate Swap
futures options shall be in multiples of one sixty-fourth (1/64) of one point
($1,000.00) of a 10-Year Interest Rate Swap futures contract which shall equal
$15.625 per 1/64 and $1,000 per full point.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $15.00 in $1.00 increments per option contract.
(07/01/03)
**5007.01 Exercise of Option - The buyer of a 10-Year Interest Rate Swap futures
option may exercise the option on any business day up to and including the day
such option expires by giving notice of exercise to the Clearing Services
Provider by 6:00 p.m. Chicago time, or by such other time designated by the
Exchange, on such day. In-the-money options** that have not been liquidated or
exercised on the last day of trading in such option shall be automatically
exercised in the absence of contrary instructions delivered to the Clearing
Services Provider by 6:00 p.m. Chicago time, or by such other time designated by
the Exchange, on the last day of trading by the clearing member representing the
option buyer.
Corrections to option exercises, including automatic exercises, may be accepted
by the Clearing Services Provider after the 6:00 p.m. deadline and up to the
beginning of final option expiration processing provided that such corrections
are necessary due to: (1) a bona fide clerical error, (2) an unreconciled
Exchange option transaction(s), or (3) an extraordinary circumstance where the
clearing firm and customer are unable to communicate final option exercise
instructions prior to the deadline. The decision whether a correction is
acceptable will be made by the President of the Clearing Services Provider, or
the President's designee, and such decision will be final. (12/01/03)
**An option is in-the-money if the settlement price of the underlying futures
contract is less in the case of a put, or greater in the case of a call, than
the exercise price of the option.
5008.01 Expiration of Option - Unexercised 10-Year Interest Rate Swap futures
options shall expire at 7:00 p.m. on the day of termination of trading. (See
Regulation 5013.01.) (12/01/03)
5009.01 Months Traded In - Trading in 10-Year Interest Rate Swap futures
options may be scheduled in such months as determined by the Exchange.
(12/01/02)
5010.01 Trading Hours - The hours of trading of options on 10-Year Interest
Rate Swap futures shall be determined by the Board. Trading in an expiring
option contract shall cease at 11:00 a.m. New York time on the last trading day
of said option contract subject to the otherwise applicable provisions of the
second paragraph of Rule 1007.00. 10-Year Interest Rate Swap futures options
shall be opened and closed for all months and strike prices simultaneously or in
such a manner as the Exchange shall direct. (12/01/02)
5011.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(12/01/02)
5012.01 Margin Requirements - (See Regulation 431.05) (12/01/02)
5013.01 Last Day of Trading - Trading in an expiring option contract shall
terminate at the same time and date as the underlying futures contract, that is,
at 11:00 a.m. New York time on the second London business day before the third
Wednesday of the underlying futures contract's delivery month. (12/01/02)
5003
================================================================================
Chapter 51
5-Year Interest Rate Swap Futures
================================================================================
Ch51 Trading Conditions................................. 5102
5101.01 Authority................................. 5102
5102.01 Application of Regulations................ 5102
5104.01 Unit of Trading........................... 5102
5105.01 Months Traded In.......................... 5102
5106.01 Price Basis............................... 5102
5107.01 Hours of Trading.......................... 5102
5109.01 Last Day of Trading....................... 5102
5109.02 Liquidation During the Delivery Month..... 5102
5110.01 Margin Requirements....................... 5103
5112.01 Position Limits and Reportable Positions.. 5103
Ch51 Delivery Procedures................................ 5103
5136.01 Standards................................. 5103
5142.01 Delivery on Futures Contracts............. 5103
5147.01 Payment................................... 5103
================================================================================
Chapter 51
5-Year Interest Rate Swap Futures
================================================================================
Ch51 Trading Conditions
5101.01 Authority - Trading in 5-Year Interest Rate Swap futures may be
conducted under such terms and conditions as may be prescribed by regulation.
(07/01/02)
5102.01 Application of Regulations - Transactions in 5-Year Interest Rate Swap
futures contracts shall be subject to the general rules of the Exchange as far
as applicable and shall also be subject to the regulations contained in this
chapter, which are exclusively applicable to trading in 5-Year Interest Rate
Swap futures contracts. 5-Year Interest Rate Swap futures are listed for trading
by the Exchange pursuant to Commodity Futures Trading Commission exchange
certification procedures. (07/01/02)
5104.01 Unit of Trading - The unit of trading shall be the notional price of
the fixed-rate side of a 5-year interest rate swap that has notional principal
equal to $100,000, and that exchanges semiannual interest payments at a fixed
rate of 6% per annum, measured according to a 30/360 daycount convention, for
floating interest rate payments, based on the 3-month London interbank offered
rate (hereafter, LIBOR) and measured according to an actual/360 daycount
convention, and that otherwise conforms to the terms prescribed by the
International Swap and Derivatives Association, Inc. (hereafter, ISDA) for the
purpose of computing the daily fixing of ISDA Benchmark Rates for U.S. dollar
interest rate swaps. (07/01/02)
5105.01 Months Traded In - Trading in 5-Year Interest Rate Swap futures may be
scheduled in such months as determined by the Exchange. (07/01/02)
5106.01 Price Basis - The price of 5-Year Interest Rate Swap futures contracts
shall be quoted in points. One point equals $1,000.00. Par shall be on the basis
of 100 points. The minimum price fluctuation shall be one half of one thirty-
second (1/32) of one point per 100 points ($15.625 per contract), except for
intermonth spreads, where the minimum price fluctuation shall be one-fourth of
one thirty-second of one point per 100 points ($7.8125) per contract. Contracts
shall not be made on any other price basis. (06/01/04)
5107.01 Hours of Trading - The hours of trading in 5-Year Interest Rate Swap
futures shall be determined by the Board.
Trading in an expiring 5-Year Interest Rate Swap futures contract shall cease at
11:00 a.m. New York time on the last trading day of said futures contract,
subject to the otherwise applicable provisions of the second paragraph of Rule
1007.00. That is, on the last day of trading in an expiring future, a bell
shall be rung at 11:00 a.m. New York time designating the beginning of the close
of the expiring future. Trading shall be permitted thereafter for a period not
to exceed one minute, and quotations made during this time shall constitute the
close. Following the above-described closing procedure, the Modified Closing
Call will be conducted in accordance with Regulation 1007.02.
The market shall be opened and closed for all months simultaneously or in such
other manner as the Regulatory Compliance Committee shall direct. (07/01/02)
5109.01 Last Day of Trading - The last trading day of a 5-Year Interest Rate
Swap futures contract shall be the second London business day before the third
Wednesday of the contract's delivery month. (07/01/02)
5109.02 Liquidation During the Delivery Month - After trading has ceased in
contracts for future delivery in the current delivery month (in accordance with
Regulation 5109.01 of this chapter), outstanding contracts shall be liquidated
by cash settlement as prescribed in Regulation 5142.01. (07/01/02)
5110.01 Margin Requirements - (See Regulation 431.03). (07/01/02)
5112.01 Position Limits and Reportable Positions - (See Regulation 425.01).
(07/01/02)
Ch51 Delivery Procedures
5136.01 Standards - The contract grade shall be the final settlement price of
the unit of trading (as defined in Regulation 5104.01 of this chapter) on the
last day of trading (as defined in Regulation 5109.01 of this chapter).
The final settlement price shall be based upon the ISDA Benchmark Rate** for a
5-year U.S. dollar interest rate swap for the last day of trading, as published
on the last day of trading on Reuters page ISDAFIX1 (or other Reuters page as
shall be designated by ISDA for the purpose of publishing and disseminating ISDA
Benchmark Rates for U.S. Dollar interest rate swaps). Determination of the final
settlement price on the basis of said ISDA Benchmark Rate shall be as prescribed
in Regulation 5142.01 of this chapter.
Hereafter in this chapter, the ISDA Benchmark Rate for a 5-year U.S. dollar
interest rate swap shall be referenced as the "the ISDA Benchmark," and ISDAFIX1
(or other Reuters page as shall be designated by ISDA for the purpose of
publishing and disseminating ISDA Benchmark Rates for U.S. dollar interest rate
swaps) shall be referenced as "Reuters".
If Reuters fails to report the ISDA Benchmark for the last day of trading on the
last day of trading, then the final settlement price shall be based upon the
ISDA Benchmark for the next available business day to be reported by Reuters.
(07/01/02)
5142.01 Delivery on Futures Contracts - Delivery against 5-Year Interest Rate
Swap futures contracts shall be made by cash settlement through the Clearing
Services Provider following normal variation margin procedures. Generally, final
settlement value (defined below) shall be calculated on the last day of trading
after Reuters has published the ISDA Benchmark** for the last day of trading.
Generally, such publications will occur at 11:30 a.m. New York time on the last
day of trading. For exceptions to this, see 5136.01.
The final settlement value shall be determined as follows:
Final Settlement Value = $100,000 * [ 6/r + ( 1-6/r)*(1 + 0.01*r/2)-10 ]
where r represents the ISDA Benchmark for the last day of trading, expressed in
percent terms. For example, if the ISDA Benchmark for the last day of trading
is five and one quarter percent, then r is equal to 5.250.
The final settlement price shall be the final settlement value, so determined,
rounded to the nearest one quarter of one thirty-second of a price point.
Example: Suppose the ISDA Benchmark on the last day of trading is 5.500. The
final settlement value will be $102,160.02. To render this in terms of price
points and quarters of thirty-seconds of price points, note that it is between
102-05/32nds and 102-05.25/32nds (where each price point equals $1,000) --
102-05.25/32nds $102,164.0625
Final settlement value $ 102,160.02
102-05/32nds $ 102,156.25
The final settlement value is nearer to 102-05/32nds. Thus, the contract
expiration price is obtained by rounding down to 102-05/32nds.
In the event that the final settlement value is at the exact midpoint between
any two adjacent quarters of one thirty-second of a price point, the final
settlement price will be obtained by rounding up to the nearest one quarter of a
thirty-second of a price point. (12/01/03)
5147.01 Payment - (See Regulation 1049.04) (07/01/02)
__________________
** ISDA Benchmark mid-market par swap rates collected at 11:00 a.m. by Reuters
Limited and Garban Intercapital plc and published on Reuters page ISDAFIX1.
Source: Reuters Limited.
================================================================================
Chapter 52
5-Year Interest Rate Swap Futures Options
================================================================================
Ch52 Trading Conditions................................................. 5202
5200.01 Authority................................................. 5202
5201.01 Application of Regulations................................ 5202
5202.01 Nature of 5-Year Interest Rate Swap Futures Put Options... 5202
5202.02 Nature of 5-Year Interest Rate Swap Futures Call Options.. 5202
5203.01 Trading Unit.............................................. 5202
5204.01 Striking Prices........................................... 5202
5205.01 Payment of Option Premium................................. 5202
5206.01 Option Premium Basis...................................... 5203
5207.01 Exercise of Option........................................ 5203
5208.01 Expiration of Option...................................... 5203
5209.01 Months Traded In.......................................... 5203
5210.01 Trading Hours............................................. 5203
5211.01 Position Limits and Reportable Positions.................. 5203
5212.01 Margin Requirements....................................... 5203
5213.01 Last Day of Trading....................................... 5203
5201
================================================================================
Chapter 52
5-Year Interest Rate Swap Futures Options
================================================================================
Ch52 Trading Conditions
5200.01 Authority - Trading in put and call options on 5-Year Interest Rate
Swap futures contracts may be conducted under such terms and conditions as may
be prescribed by regulation. (12/01/02)
5201.01 Application of Regulations - Transactions in put and call options on
5-Year Interest Rate Swap futures contracts shall be subject to the general
rules of the Exchange as far as applicable and shall also be subject to the
regulations contained in this Chapter which are exclusively applicable to
trading in put and call options on 5-Year Interest Rate Swap futures contracts.
(See Rule 490.00.) Options on 5-Year Interest Rate Swap futures are listed for
trading by the Exchange pursuant to Commodity Futures Trading Commission
exchange certification procedures. (12/01/02)
5202.01 Nature of 5-Year Interest Rate Swap Futures Put Options - The buyer of
one (1) 5-Year Interest Rate Swap futures put option may exercise his option at
any time prior to expiration (subject to Regulation 5207.01), to assume a short
position in one (1) 5-Year Interest Rate Swap futures contract of a specified
contract month at a strike price set at the time the option was purchased. The
seller of one (1) 5-Year Interest Rate Swap futures put option incurs the
obligation of assuming a long position in one (1) 5-Year Interest Rate Swap
futures contract of a specified contract month at a strike price set at the time
the option was sold, upon exercise by a put option buyer. (12/01/02)
5202.02 Nature of 5-Year Interest Rate Swap Futures Call Options - The buyer
of one (1) 5-Year Interest Rate Swap futures call option may exercise his option
at any time prior to expiration (subject to Regulation 5207.01), to assume a
long position in one (1) 5-Year Interest Rate Swap futures contract of a
specified contract month at a strike price set at the time the option was
purchased. The seller of one (1) 5-Year Interest Rate Swap futures call option
incurs the obligation of assuming a short position in one (1) 5-Year Interest
Rate Swap futures contract of a specified contract month at a strike price set
at the time the option was sold, upon exercise by a call option buyer.
(12/01/02)
5203.01 Trading Unit - One (1) 5-Year Interest Rate Swap futures contract of a
specified contract month on the Board of Trade of the City of Chicago, Inc.
(12/01/02)
5204.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices in integral multiples of one-half (1/2) point per 5-Year
Interest Rate Swap futures contract. At the commencement of trading for such
option contracts, the following striking prices shall be listed: one with a
striking price closest to the previous day's settlement price on the underlying
5-Year Interest Rate Swap futures contract, the next fifteen (15) consecutive
higher and the next fifteen (15) consecutive lower striking prices closest to
the previous day's settlement price. If the previous day's settlement price is
midway between two striking prices, the closest price shall be the larger of the
two. Over time, new striking prices will be added to ensure that at least
fifteen (15) striking prices always exist above and below the previous day's
settlement price on the underlying futures. All new striking prices will be
added prior to the opening of trading on the following business day.
The Exchange may modify the procedure for the introduction of strike prices as
it deems appropriate in order to respond to market conditions. (04/01/04)
5205.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (12/01/03)
5202
Ch52 Trading Conditions
-----------------------
5206.01 Option Premium Basis - The premium for 5-Year Interest Rate Swap
futures options shall be in multiples of one sixty-fourth (1/64) of one point
($1,000.00) of a 5-Year Interest Rate swap futures contract which shall equal
$15.625 per 1/64 and $1,000 per full point.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $15.00 in $1.00 increments per option contract.
(07/01/03)
**5207.01 Exercise of Option - The buyer of a 5-Year Interest Rate Swap futures
option may exercise the option on any business day up to and including the day
such option expires by giving notice of exercise to the Clearing Services
Provider by 6:00 p.m. Chicago time, or by such other time designated by the
Exchange, on such day. In-the-money options** that have not been liquidated or
exercised on the last day of trading in such option shall be automatically
exercised in the absence of contrary instructions delivered to the Clearing
Services Provider by 6:00 p.m. Chicago time, or by such other time designated by
the Exchange, on the last day of trading by the clearing member representing the
option buyer.
Corrections to option exercises, including automatic exercises, may be accepted
by the Clearing Services Provider after the 6:00 p.m. deadline and up to the
beginning of final option expiration processing provided that such corrections
are necessary due to: (1) a bona fide clerical error, (2) an unreconciled
Exchange option transaction(s), or (3) an extraordinary circumstance where the
clearing firm and customer are unable to communicate final option exercise
instructions prior to the deadline. The decision whether a correction is
acceptable will be made by the President of the Clearing Services Provider, or
the President's designee, and such decision will be final. (12/01/03)
**An option is in-the-money if the settlement price of the underlying futures
contract is less in the case of a put, or greater in the case of a call, than
the exercise price of the option.
5208.01 Expiration of Option - Unexercised 5-Year Interest Rate Swap futures
options shall expire at 7:00 p.m. on the day of termination of trading. (See
Regulation 5013.01.) (12/01/03)
5209.01 Months Traded In - Trading in 5-Year Interest Rate Swap futures
options may be scheduled in such months as determined by the Exchange.
(12/01/02)
5210.01 Trading Hours - The hours of trading of options on 5-Year Interest
Rate Swap futures shall be determined by the Board. Trading in an expiring
option contract shall cease at 11:00 a.m. New York time on the last trading day
of said option contract subject to the otherwise applicable provisions of the
second paragraph of Rule 1007.00. 5-Year Interest Rate Swap futures options
shall be opened and closed for all months and strike prices simultaneously or in
such a manner as the Exchange shall direct. (12/01/02)
5211.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(12/01/02)
5212.01 Margin Requirements - (See Regulation 431.05) (12/01/02)
5213.01 Last Day of Trading - Trading in an expiring option contract shall
terminate at the same time and date as the underlying futures contract, that is,
at 11:00 a.m. New York time on the second London business day before the third
Wednesday of the underlying futures contract's delivery month. (12/01/02)
5203
==============================================================================
Chapter 53
CBOT(R) mini-sized Dow/SM/ Futures ($5 Multiplier)
==============================================================================
Ch53 Trading Conditions.......................................... 5302
5301.01 Authority.......................................... 5302
5302.01 Application of Regulation.......................... 5302
5303.01 Emergencies, Acts of God, Acts of Government....... 5302
5304.01 Unit of Trading.................................... 5302
5305.01 Months Traded In................................... 5302
5306.01 Price Basis........................................ 5302
5307.01 Hours of Trading................................... 5302
5308.01 Price Limits and Trading Halts..................... 5302
5309.01 Last Day of Trading................................ 5302
5309.02 Liquidation During the Delivery Month.............. 5302
5310.01 Margin Requirements................................ 5303
5312.01 Position Limits and Reportable Positions........... 5303
Ch 53 Delivery Procedures.......................................... 5303
5336.01 Standards.......................................... 5303
5342.01 Delivery on Futures Contracts...................... 5303
5342.02 Final Settlement Price............................. 5303
5342.03 The Final Settlement Day........................... 5303
5347.01 Payment............................................ 5303
5348.01 Disclaimer......................................... 5303
================================================================================
Chapter 53
CBOT(R) mini-sized DowSM Futures ($5 Multiplier)/1/
================================================================================
Note: These contracts are listed for trading by the Chicago Board of Trade
pursuant to Commodity Futures Trading Commission exchange certification
procedures.
Ch53 Trading Conditions
5301.01 Authority - Trading in CBOT(R) mini-sized Dow/SM/ futures ($5
multiplier) may be conducted under such terms and conditions as may be
prescribed by regulation. (04/01/02)
5302.01 Application of Regulation - Futures transactions in CBOT(R) mini-sized
Dow/SM/ ($5 multiplier) contracts shall be subject to the general rules of the
Exchange as far as applicable and shall also be subject to the regulations
contained in this chapter, which are exclusively applicable to trading in
CBOT(R) mini-sized Dow/SM/ ($5 multiplier) contracts. CBOT(R) mini-sized Dow/SM/
($5 multiplier) futures are listed for trading by the Exchange pursuant to
Commodity Futures Trading Commission exchange certification procedures.
(04/01/02)
5303.01 Emergencies, Acts of God, Acts of Government - If the delivery or
acceptance or any precondition or requirement of either, is prevented by strike,
fire, accident, act of government, act of God or other emergency, the seller or
buyer shall immediately notify the Chairman. If the Chairman determines that
emergency action may be necessary, he shall call a special meeting of the Board
and arrange for the presentation of evidence respecting the emergency condition.
If the Board determines that an emergency exists, it shall take such action
under Rule 180.00 as it deems necessary under the circumstances and its decision
shall be binding upon all parties to the contract. (04/01/02)
5304.01 Unit of Trading -- The unit of trading shall be $5.00 times the Dow
Jones Industrial Average/SM/. The Dow Jones Industrial Average/SM/ is a price-
weighted index of 30 of the largest and most liquid U.S. stocks. (04/01/02)
5305.01 Months Traded In - The months listed for trading are March, June,
September and December, at the discretion of the Exchange. (04/01/02)
5306.01 Price Basis - The price of CBOT(R) mini-sized Dow/SM/ ($5 multiplier)
futures shall be quoted in index points. One index point is worth $5.00. The
minimum price fluctuation shall be one point per contract ($5.00). Contracts
shall not be made on any other price basis. (04/01/02)
5307.01 Hours of Trading - The hours of trading for future delivery in CBOT(R)
mini-sized Dow/SM/ futures ($5.00 multiplier) shall be determined by the Board.
The market shall be opened and closed for all months simultaneously, or in such
other manner as the Exchange shall direct. (04/01/02)
5308.01 Price Limits and Trading Halts - (See Regulation 1008.01.)
(04/01/02)
5309.01 Last Day of Trading - The last day of trading in CBOT(R) mini-sized
Dow/SM/ futures ($5 multiplier) contracts deliverable in the current delivery
month shall be the trading day immediately preceding the final settlement day
(as described in Regulation 5342.03). (04/01/02)
5309.02 Liquidation During the Delivery Month - After trading in contracts for
future delivery in the current delivery month has ceased, in accordance with
Regulation 5309.01 of this chapter, outstanding contracts for such delivery
shall be liquidated by cash settlement as prescribed in Regulation 5342.01.
(04/01/02)
_____________________
/1/ "Dow Jones/SM/", "The Dow/SM/", Dow Jones Industrial Average/SM/" and
"DJIA/SM/" are service marks of Dow Jones & Company, Inc. and have been licensed
for use for certain purposes by the Board of Trade of the City of Chicago, Inc.
("CBOT(R)"). The CBOT's futures and futures option contracts based on the Dow
Jones Industrial Average/SM/ are not sponsored, endorsed, sold or promoted by
Dow Jones/SM/, and Dow Jones/SM/ makes no representation regarding the
advisability of trading in such products.
Ch 53 Delivery Procedures
5310.01 Margin Requirements - (See Regulation 431.03.) (04/01/02)
5312.01 Position Limits and Reportable Positions - (See Regulation 425.01.)
(04/01/02)
Ch 53 Delivery Procedures
5336.01 Standards - The contract grade shall be the final settlement price (as
described in Regulation 5342.02) of the CBOT(R) mini-sized Dow/SM/ ($5
multiplier) on final settlement day (as described in Regulation 5342.03).
(04/01/02)
5342.01 Delivery on Futures Contracts - Delivery against the CBOT(R) mini-sized
Dow/SM/ futures ($5 multiplier) contract must be made through the Clearing
Services Provider. Delivery under these regulations shall be on the final
settlement day (as described in regulation 5342.03) and shall be accomplished by
cash settlement as hereinafter provided.
Clearing members holding open positions in a CBOT(R) mini-sized Dow/SM/ futures
($5 multiplier) contract at the time of termination of trading shall make
payment to and receive payment through the Clearing Corporation in accordance
with normal variation settlement procedures based on a settlement price equal to
the final settlement price (as described in Regulation 5342.02). (12/01/03)
If the designated primary market for a component stock does not open on the day
scheduled for the determination of the final settlement price, then the final
settlement price shall be based on the next opening price for the component
stock.
If a component stock does not trade on the day scheduled for determination of
the final settlement price while the primary market for the stock is open for
trading, the last sale price of the stock will be used to calculate the final
settlement price. (04/01/02)
5342.03 The Final Settlement Day - The final settlement day shall be defined as
the third Friday of the contract month, or if the Dow Jones Industrial
Average/SM/ is not scheduled to be published for that day, the first preceding
business day for which the Dow Jones Industrial Average/SM/ is scheduled to be
published. (04/01/02)
5347.01 Payment - (See Regulation 1049.04.) (04/01/02)
5348.01 Disclaimer -
CBOT(R) mini-sized Dow/SM/ futures ($5 multiplier) are not sponsored, endorsed,
sold or promoted by Dow Jones. Dow Jones makes no representation or warranty,
express or implied, to the owners of CBOT(R) mini-sized Dow/SM/ futures ($5
multiplier) contracts or any member of the public regarding the advisability of
trading in CBOT(R) mini-sized Dow/SM/ futures ($5 multiplier) contracts. Dow
Jones' only relationship to the Exchange is the licensing of certain trademarks
and trade names of Dow Jones and of the Dow Jones Industrial Average/SM/ which
is determined, composed and calculated by Dow Jones without regard to the
Chicago Board of Trade or CBOT(R) mini-sized Dow/SM/ futures ($5 multiplier)
contracts. Dow Jones has no obligation to take the needs of the Chicago Board of
Trade or the owners of CBOT(R) mini-sized Dow/SM/ futures ($5 multiplier)
contracts into consideration in determining, composing or calculating the Dow
Jones Industrial Average/SM/. Dow Jones is not responsible for and has not
participated in the determination of the timing of, prices at, or quantities of
CBOT(R) mini-sized Dow/SM/ futures ($5 multiplier) contracts to be listed or in
the determination or calculation of the equation by which CBOT(R) mini-sized
Dow/SM/ futures ($5 multiplier) contracts are to be converted into cash. Dow
Jones has no obligation or liability in connection with the administration,
marketing or trading of CBOT(R) mini-sized Dow/SM/ futures ($5 multiplier)
contracts.
Ch 53 Delivery Procedures
DOW JONES DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE DOW
JONES INDUSTRIAL AVERAGE/SM/ OR ANY DATA INCLUDED THEREIN AND DOW JONES SHALL
HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. DOW JONES
MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE
CHICAGO BOARD OF TRADE, OWNERS OF CBOT(R) mini-sized DOW/SM/ FUTURES ($5
MULTIPLIER) CONTRACTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE DOW
JONES INDUSTRIAL AVERAGE/SM/ OR ANY DATA INCLUDED THEREIN. DOW JONES MAKES NO
EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE
DOW JONES INDUSTRIAL AVERAGE/SM/ OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING
ANY OF THE FOREGOING, IN NO EVENT SHALL DOW JONES HAVE ANY LIABILITY FOR ANY
LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING
LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. THERE ARE NO
THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN DOW JONES
AND THE CHICAGO BOARD OF TRADE. (04/01/02)
================================================================================
Chapter 56
CBOT(R) Dow Jones-AIG Commodity Index(SM) Futures
================================================================================
Ch56 Trading Conditions................................................5602
5601.01 Authority................................................5602
5602.01 Application of Regulations...............................5602
5603.01 Emergencies, Acts of God, Acts of Government.............5602
5604.01 Unit of Trading..........................................5602
5605.01 Months Traded In.........................................5602
5606.01 Price Basis..............................................5602
5607.01 Hours of Trading.........................................5602
5608.01 Price Limits and Trading Halts...........................5603
5609.01 Last Day of Trading......................................5603
5609.02 Liquidation During the Delivery Month....................5603
5610.01 Margin Requirements......................................5603
5612.01 Position Limits and Reportable Positions.................5603
Ch 56 Delivery Procedures..............................................5604
5636.01 Standards................................................5604
5642.01 Delivery on Futures Contracts............................5604
5642.02 Final Settlement Price...................................5604
5642.03 The Final Settlement Day.................................5604
5647.01 Payment..................................................5604
5648.01 Disclaimer...............................................5605
5601
================================================================================
Chapter 54
CBOT(R) mini-sized Dow(SM) Futures Options
================================================================================
Ch54 Trading Conditions.....................................................5402
5401.00 Authority....................................................5402
5401.01 Application of Regulations...................................5402
5402.01 Nature of CBOT mini-sized Dow Futures Put Options............5402
5402.02 Nature of CBOT mini-sized Dow Futures Call Options...........5402
5403.01 Trading Unit.................................................5402
5404.01 Striking Prices..............................................5402
5405.01 Payment of Option Premium....................................5403
5406.01 Option Premium Basis.........................................5403
5407.01 Exercise of Option...........................................5403
5407.02 Automatic Exercise...........................................5403
5408.01 Expiration of Option.........................................5403
5409.01 Months Traded In.............................................5403
5410.01 Trading Hours................................................5403
5411.01 Position Limits and Reportable Positions.....................5404
5412.01 Margin Requirements..........................................5404
5413.01 Last Day of Trading..........................................5404
5414.01 Option Premium Fluctuation Limits............................5404
5414.02 Trading Halts on Project A.02................................5404
5415.01 Disclaimer...................................................5404
5401
================================================================================
Chapter 54
CBOT(R) mini-sized Dow(SM) Futures Options/1/
================================================================================
Ch54 Trading Conditions
5401.00 Authority - (See Rule 2801.00) (02/01/04)
5401.01 Application of Regulations - Transactions in put and call options on
CBOT mini-sized Dow futures contracts shall be subject to the general rules of
the Exchange as far as applicable and shall also be subject to the regulations
contained in this chapter which are exclusively applicable to trading in put and
call options on CBOT mini-sized Dow futures contracts. (See Rule 490.00)
(02/01/04)
5402.01 Nature of CBOT mini-sized Dow Futures Put Options - The buyer of one (1)
CBOT mini-sized Dow futures put option may exercise his option at any time prior
to expiration (subject to Regulation 5407.01), to assume a short position in one
(1) CBOT mini-sized Dow futures contract of a specified contract month at a
striking price set at the time the option was purchased. The seller of one (1)
CBOT mini-sized Dow futures put option incurs the obligation of assuming a long
position in one (1) CBOT mini-sized Dow futures contract of a specified contract
month at a striking price set at the time the option was sold, upon exercise by
a put option buyer. (02/01/04)
5402.02 Nature of CBOT mini-sized Dow Futures Call Options - The buyer of one
(1) CBOT mini-sized Dow futures call option may exercise his option at any time
prior to expiration (subject to Regulation 5407.01), to assume a long position
in one (1) CBOT mini-sized Dow futures contract of a specified contract month at
a striking price set at the time the option was purchased. The seller of one (1)
CBOT mini-sized Dow futures call option incurs the obligation of assuming a
short position in one (1) CBOT mini-sized Dow futures contract of a specified
contract month at a striking price set at the time the option was sold, upon
exercise by a call option buyer. (02/01/04)
5403.01 Trading Unit - One (1) CBOT mini-sized Dow futures contract of a
specified contract month on the Chicago Board of Trade. (02/01/04)
5404.01 Striking Prices - Trading shall be conducted for put and call options
with striking prices in integral multiples of one hundred (100) index points per
CBOT mini-sized Dow futures contract and in integral multiples of two hundred
(200) index points per CBOT mini-sized Dow futures contract as follows:
A. At the commencement of trading for quarterly and non-quarterly expirations,
the following strike prices in one hundred point intervals shall be listed:
one with a striking price closest to the previous day's settlement price on
the underlying CBOT mini-sized Dow futures contract and the next twenty
consecutive higher and the next twenty consecutive lower striking prices
closest to the previous day's settlement price. If the previous day's
settlement price is midway between two striking prices, the closest price
shall be the larger of the two. Over time new striking prices will be added
to ensure that at least twenty one hundred point striking prices always
exist above and below the previous day's settlement price in the underlying
futures.
B. At the commencement of trading for quarterly and non-quarterly expirations,
the following strike prices in two hundred point intervals shall be listed:
the next ten consecutive higher and the next ten
----------
/1/ "Dow Jones(SM), "The Dow(SM)", "Dow Jones Industrial Average(SM)", and
"DJIA(SM)", are service marks of Dow Jones & Company, Inc. and have been
licensed for use for certain purposes by the Board of Trade of the City of
Chicago ("CBOT(R)"). The CBOT's futures and futures options contracts based on
the Dow Jones Industrial Average(SM) are not sponsored, endorsed, sold or
promoted by Dow Jones(SM), and Dow Jones(SM) makes no representation regarding
the advisability of trading in such product(s).
5402
consecutive lower strike prices above and below the strike price band as
stipulated in Regulation 5404.01(A). Over time new striking prices will be
added to ensure that at least ten striking prices in two hundred point
intervals always exist above and below the strike price band as stipulated
in Regulation 5404.01(A).
C. At the end of each quarterly cycle, the Exchange shall reset every listed
month's strike prices to conform with Regulation 5404.01 (A) and Regulation
5404.01(B). The newly calculated strike price band will be based on the
final settlement price on the last business day of the quarterly cycle of
the underlying futures contract. The Exchange will delist all previously
listed strike prices that are not one of the newly calculated strike
prices, provided that the strike to be delisted has neither call nor put
open interest.
D. All new strike prices will be added prior to the opening of trading on the
following business day. The Exchange may modify the procedure for the
introduction of striking prices as it deems appropriate in order to respond
to market conditions. (02/01/04)
5405.01 Payment of Option Premium - The option premium must be paid in full by
each clearing member to the Clearing Services Provider and by each option
customer to his futures commission merchant at the time that the option is
purchased, or within a reasonable time after the option is purchased. (02/01/04)
5406.01 Option Premium Basis - The premium for CBOT mini-sized Dow futures
options shall be in multiples of one index point of a CBOT mini-sized Dow
futures contract which shall equal $5.
However, when both sides of the trade are closing transactions, the option
premium may range from $1.00 to $4.00 in $1.00 increments per option contract.
(02/01/04)
5407.01 Exercise of Option - The buyer of a CBOT mini-sized Dow futures option
may exercise the option on any business day prior to expiration by giving notice
of exercise to the Clearing Services Provider by 6:00 p.m., or by such other
time designated by the Exchange, on such day. (02/01/04)
5407.02 Automatic Exercise - Notwithstanding the provisions of Regulation
5407.01, for options with quarterly expirations, all in-the-money options shall
be automatically exercised after 6:00 p.m. on the business day following the
last day of trading, unless notice to cancel automatic exercise is given to the
Clearing Services Provider. Notwithstanding the provisions of Regulation
5407.01, for options with non-quarterly expirations, all in-the-money options
shall be automatically exercised after 6:00 p.m. on the last day of trading,
unless notice to cancel automatic exercise is given to the Clearing Services
Provider
For options with quarterly expirations, notice to cancel automatic exercise
shall be given to the Clearing Services Provider by 6:00 p.m., or by such other
time designated by the Exchange, on the business day following the last day of
trading. For options with non-quarterly expirations, notice to cancel automatic
exercise shall be given to the Clearing Services Provider by 6:00 p.m., or by
such other time designated by the Exchange, on the last day of trading.
(02/01/04)
5408.01 Expiration of Option - Unexercised CBOT mini-sized Dow futures options
with quarterly expirations shall expire at 7:00 p.m. on the business day
following the last day of trading.
Unexercised CBOT mini-sized Dow futures options with non-quarterly expirations
shall expire at 7:00 p.m. on the last day of trading.
5409.01 Months Traded In - The months listed for trading are January through
December at the discretion of the Exchange; provided however, that the Exchange
may determine not to list a contract month. For options that are traded in
months in which CBOT mini-sized Dow futures are not traded, the underlying
futures contract is the next futures contract that is nearest to the expiration
of the option. For example, the underlying futures contract for the October or
November option contract is the December futures contract. (02/01/04)
5410.01 Trading Hours - The hours of trading of options on CBOT mini-sized Dow
futures contracts shall be determined by the Exchange. On the last day of
trading in an expiring option the closing time for
5403
such option shall be the same as the underlying futures contract, subject to the
provisions of the second paragraph of Rule 1007.00. (02/01/04)
5411.01 Position Limits and Reportable Positions - (See Regulation 425.01)
(02/01/04)
5412.01 Margin Requirements - (See Regulation 431.05) (02/01/04)
5413.01 Last Day of Trading - For options expiring on the quarterly cycle,
trading shall terminate at the same date and time as the underlying futures
contract. For options that expire in months other than those in the quarterly
cycle, options trading shall terminate on the third Friday of the option
contract month, at the end of the regular trading session. If that day is not an
Exchange business day, options trading shall terminate on the first preceding
business day. (02/01/04)
5414.01 Option Premium Fluctuation Limits - Option premium limits for the CBOT
mini-sized Dow futures options shall correspond to the daily trading limit in
effect at that time for the underlying futures contract as specified in
Regulation 1008.01D. There shall be no trading in any option contract during a
period in which trading in the underlying future is halted as specified in
Regulation 1008.01D. On the first day of trading, limits shall be set from the
lowest premium of the opening range. (02/01/04)
5414.02 Trading Halts on e-cbot - There shall be no trading in any option
contract during e-cbot trading hours when the CBOT mini-sized Dow primary
futures contract is limit bid or limit offered at the e-cbot price limit.
(02/01/04)
5415.01 Disclaimer -
CBOT mini-sized Dow futures and futures options are not sponsored, endorsed,
sold or promoted by Dow Jones. Dow Jones makes no representation or warranty,
express or implied, to the owners of CBOT mini-sized Dow futures and futures
options contracts or any member of the public regarding the advisability of
trading in CBOT mini-sized Dow futures and futures options contracts. Dow Jones'
only relationship to the Exchange is the licensing of certain trademarks and
trade names of Dow Jones and of the Dow Jones Industrial Average(SM) which is
determined, composed and calculated by Dow Jones without regard to the Chicago
Board of Trade or CBOT mini-sized Dow futures and futures options contracts. Dow
Jones has no obligation to take the needs of the Chicago Board of Trade or the
owners of CBOT mini-sized Dow futures and futures options contracts into
consideration in determining, composing or calculating the Dow Jones Industrial
Average(SM). Dow Jones is not responsible for and has not participated in the
determination of the timing of, prices at, or quantities of CBOT mini-sized Dow
futures and futures options contracts to be listed or in the determination or
calculation of the equation by which CBOT mini-sized Dow futures and futures
options contracts are to be converted into cash. Dow Jones has no obligation or
liability in connection with the administration, marketing or trading of CBOT
mini-sized Dow futures and futures options contracts.
DOW JONES DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE DOW
JONES INDUSTRIAL AVERAGE(SM) OR ANY DATA INCLUDED THEREIN AND DOW JONES SHALL
HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. DOW JONES
MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE
CHICAGO BOARD OF TRADE, OWNERS OF CBOT MINI-SIZED DOW FUTURES AND FUTURES
OPTIONS CONTRACTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE DOW JONES
INDUSTRIAL AVERAGE(SM) OR ANY DATA INCLUDED THEREIN. DOW JONES MAKES NO EXPRESS
OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OR
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE
DOW JONES INDUSTRIAL AVERAGE(SM) OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING
ANY OF THE FOREGOING, IN NO EVENT SHALL DOW JONES HAVE ANY LIABILITY FOR ANY
LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING
LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. THERE ARE NO
THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN DOW JONES
AND THE CHICAGO BOARD OF TRADE. (02/01/04)
5404
================================================================================
Chapter 56
CBOT(R) Dow Jones-AIG Commodity Index (SM)
Futures/1/
================================================================================
Ch56 Trading Conditions
5601.01 Authority - Trading in CBOT Dow Jones-AIG Commodity Index(SM) futures
may be conducted under such terms and conditions as may be prescribed by
Regulation. (11/01/01)
5602.01 Application of Regulations - Futures transactions in CBOT Dow
Jones-AIG Commodity Index(SM) ("DJ-AIGCI(SM)") futures contracts shall be
subject to the general rules of the Exchange as far as applicable and shall also
be subject to the regulations contained in this chapter, which are exclusively
applicable to trading in CBOT Dow Jones-AIG Commodity Index(SM) futures. CBOT
Dow Jones-AIG Commodity Index(SM) futures contracts are listed for trading by
the Exchange pursuant to Commodity Futures Trading Commission exchange
certification procedures. (11/01/01)
5603.01 Emergencies, Acts of God, Acts of Government - If delivery or
acceptance or any precondition or requirement of either, is prevented by strike,
fire, accident, act of government, act of God or other emergency, the seller or
buyer shall immediately notify the Chairman. If the Chairman determines that
emergency action may be necessary, he shall call a special meeting of the Board
and arrange for the presentation of evidence respecting the emergency condition.
If the Board determines that an emergency exists, it shall take such action
under Rule 180.00 as it deems necessary under the circumstances and its decision
shall be binding upon all parties to the contract. (11/01/01)
5604.01 Unit of Trading - The unit of trading shall be $100.00 times the Dow
Jones-AIG Commodity Index(SM) Futures Price Index which corresponds to each
futures contract.
The Dow Jones-AIG Commodity Index(SM) (DJ-AIGCI(SM)) is a liquidity and world
production, dollar-weighted, arithmetic average of prices of up to 23 exchange-
traded physical commodity futures contracts which satisfy specified criteria.
The futures price index is calculated as the fair value of the basket of futures
contracts in the DJ-AIGCI(SM) for a specific contract month. The futures price
index is identical to the calculation of the weighted average value (WAV1) of
the lead futures in the DJ-AIGCI(SM) divided by four (4) and rounded to one
decimal place. The futures price index incorporates no rolling forward of
futures contracts and is quoted only until the expiration of the corresponding
DJ- AIGCI(SM) futures contract. For any January contract, the futures price
index shall be determined using the prior year's DJ-AIGCI(SM) specifications.
February through December contracts shall use the current year's DJ-AIGCI(SM)
specifications. The DJ-AIGCI(SM) specifications criteria, calculation, and roll
procedures are defined in the Dow Jones-AIG Commodity Index(SM) Handbook.
(09/01/02)
5605.01 Months Traded In - The months listed for trading are January,
February, April, June, August, October and December, at the discretion of the
Exchange. (11/01/01)
5606.01 Price Basis - The price of the CBOT Dow Jones-AIG Commodity Index(SM)
futures shall be quoted in points. One point equals $100.00. The minimum price
fluctuation shall be 0.1 (1/10) points per contract ($10.00 per contract).
Contracts shall not be made on any other price basis. (11/01/01)
5607.01 Hours of Trading - The hours of trading for future delivery in CBOT
Dow Jones-AIG Commodity Index(SM) futures shall be determined by the Exchange.
The market shall be opened and closed for all months simultaneously, or in such
other manner as the
_____________________
/1/ "Dow Jones," AIG (R)" Dow Jones-AIG Commodity Index(SM)," and DJ-AIGCI(SM)"
are service marks of Dow Jones & Company, Inc. and American International
Group, Inc., as the case may be, and have been licensed for use for certain
purposes by the CBOT. The CBOT Dow Jones- AIG Commodity Index futures and
futures options are not sponsored, endorsed or sold by Dow Jones, AIG,
American International Group, or any of their respective subsidiaries or
affiliates, and none of Dow Jones, AIG, American International Group, or
any of their respective subsidiaries or affiliates, makes any
representation regarding the advisability of investing in such product(s)."
5602
Ch56 Trading Conditions
-----------------------
Exchange shall direct. (11/01/01)
5608.01 Price Limits and Trading Halts - There are no price limits for CBOT Dow
Jones-AIG Commodity Index(SM) futures. (11/01/01)
5609.01 Last Day of Trading - The last day of trading in CBOT Dow Jones-AIG
Commodity Index(SM) futures contracts deliverable in the current delivery month
shall be the eleventh business day of the contract month (as described in
Regulation 5642.03). (11/01/01)
5609.02 Liquidation During the Delivery Month - After trading in contracts for
future delivery in the current delivery month has ceased, in accordance with
Regulation 5609.01 of this chapter, outstanding contract for such delivery shall
be liquidated by cash settlement as prescribed in Regulation 5642.01. (11/01/01)
5610.01 Margin Requirements - (See Regulation 431.03) (11/01/01)
5612.01 Position Limits and Reportable POsitions - (See Regulation 425.01)
(11/01/01)
5603
Ch 56 Delivery Procedures
5636.01 Standards - The contract grade shall be the final settlement price (as
described in Regulation 5642.02) of the Dow Jones-AIG Futures Price Index on
final settlement day (as described in Regulation 5642.03). (11/01/01)
5642.01 Delivery on Futures Contracts - Delivery against the CBOT Dow
Jones-AIG Commodity Index(SM) futures contracts must be made through the
Clearing Services Provider. Delivery under these regulations shall be on the
final settlement day (as described in regulation 5642.03) and shall be
accomplished by cash settlement as hereinunder provided.
Clearing members holding open positions in a CBOT Dow Jones-AIG Commodity
Index(SM) futures contract at the time of termination of trading shall make
payment to and receive payment through the Clearing Corporation in accordance
with normal variation settlement procedures based on a settlement price equal to
the final settlement price (as described in Regulation 5642.02). (12/01/03)
5642.02 Final Settlement Price - The final settlement price shall be based on
a special quotation of the Dow Jones-AIG Futures Price Index which corresponds
to the expiring contract as the close of business on the final settlement day
(as described in Regulation 5642.03). This special quotation will consist of the
Dow Jones-AIG Futures Price Index which corresponds to the expiring contract
calculated using the settlement prices of the component futures on final
settlement day, except as noted below.
If an exchange that a component or components of the futures price index is
trading on is not open on the final settlement day because of a scheduled
closing, then the contribution to the final settlement price for the affected
component or components shall be based on the settlement quotation of the first
preceding trading day.
If a component contract month's settlement price on the final settlement day is
unavailable because of an unanticipated and/or unannounced closure of the
component contract market, then the price of such component contract to be used
in calculating the final settlement price shall be the next available
settlement price.
If the settlement price of a component contract is a limit bit or offer on the
final settlement day, then that contract's contribution to the final settlement
price is deferred up to ten business days. In the event that a component
contract's settlement price is a limit bid or offer on the final settlement day,
the price to be used is the first settlement price after the final settlement
day that is not a limit bid or offer. If the settlement price is a limit bid or
offer for ten consecutive business days following the final settlement day, the
contract's settlement price on the tenth subsequent business day shall be used
as the contract's contribution to the final settlement price. (11/01/01)
5642.03 The Final Settlement Day - The final settlement day shall be defined
as the eleventh business day of the contract month, or if the Dow Jones-AIG
Futures Price Index is not published for that day, the first preceding business
day for which the Dow Jones-AIG Futures Price Index was published. (11/01/01)
5647.01 Payment - (See Regulation 1049.04.) (11/0101)
5604
Ch 56 Delivery Procedures
-------------------------
5648.01 Disclaimer - The CBOT Dow Jones-AIG Commodity Index(SM) futures and
futures options are not sponsored, endorsed or sold by Dow Jones, American
International Group, AIG or any of their affiliates. None of Dow Jones, American
International Group, AIG or any of their affiliates makes any representation or
warranty, express or implied, to the owners of or counterparts to the futures
and futures options or any member of the public regarding the advisability of
investing in securities or commodities generally or in the futures or futures
options particularly. The only relationship of such persons to the Licensee is
the licensing of certain trademarks, trade names and service marks and of the
Dow Jones-AIG Commodity Index(SM), which is determined, composed and calculated
by Dow Jones in conjunction with AIG without regard to the CBOT or the CBOT Dow
Jones-AIG Commodity Index(SM) futures or futures options. Dow Jones and AIG have
no obligation to take the needs of the CBOT or the owners of the futures or
futures options into consideration in determining, composing or calculating Dow
Jones-AIG Commodity Index(SM). None of Dow Jones, American International Group,
AIG or any of their affiliates is responsible for or has participated in the
determination of the timing of, prices at, or quantities of the Dow Jones-AIG
Commodity Index(SM) futures or futures options to be issued or in the
determination or calculation of the equation by which the futures or futures
options are to be converted into cash. None of Dow Jones, American International
Group, AIG or any of their affiliates shall have any obligation or liability in
connection with the administration, marketing or trading of the futures or
futures options. Notwithstanding the foregoing, AIG, American International
Group and their respective affiliates may independently issue and/or sponsor
financial products unrelated to the Products currently being issued by Licensee,
but which may be similar to and competitive with the Products.
NONE OF DOW JONES, AMERICAN INTERNATIONAL GROUP, AIG OR ANY OF THEIR AFFILIATES
GUARANTEES THE ACCURACY AND/OR THE COMPLETENESS OF THE DOW JONES-AIG COMMODITY
INDEX(SM) OR ANY DATA INCLUDED THEREIN AND NONE OF DOW JONES, AMERICAN
INTERNATIONAL GROUP, AIG OR ANY OF THEIR AFFILIATES SHALL HAVE ANY LIABILITY FOR
ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. NONE OF DOW JONES, AMERICAN
INTERNATIONAL GROUP, AIG OR ANY OF THEIR AFFILIATES MAKES ANY WARRANTY, EXPRESS
OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE CBOT, OWNERS OF THE DOW JONES-
AIG COMMODITY, INDEX(SM) FUTURES OR FUTURES OPTIONS, OR ANY OTHER PERSON OR
ENTITY FROM THE USE OF DOW JONES-AIG COMMODITY INDEX(SM) OR ANY DATA INCLUDED
THEREIN. NONE OF DOW JONES, AMERICAN INTERNATIONAL GROUP, AIG OR ANY OF THEIR
AFFILIATES MAKES ANY EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH
RESPECT TO THE DOW JONES-AIG COMMODITY INDEX(SM) OR ANY DATA INCLUDED THEREIN.
WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL DOW JONES, AMERICAN
INTERNATIONAL GROUP, AIG OR ANY OF THEIR AFFILIATES HAVE ANY LIABILITY FOR ANY
LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES,
EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF. THERE ARE NO THIRD PARTY
BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS AMONG DOW JONES, AIG AND THE
CBOT, OTHER THAN AMERICAN INTERNATIONAL GROUP. (11/01/01)
5605
Appendix Summary
------------
APPENDIX
------------
Appendix Summmary
APPENDIX SUMMARY
1. Reserved
2. Summary of Membership Privileges
3. Exchange Floor Operations and Procedures
A. Guidelines for Guests and Visitors While on the Exchange Floor of
the Chicago Board of Trade
B. Instructions for Floor Clerk Access to the Floor of the Board of
Trade of the City of Chicago
C. Dress Code
D. Pit Openings and Closings
E. Contract Month Symbols
F. Reserved
G. Guidelines - Badge Validation and Return
4. Futures Commission Merchants
A. Exchange Transaction Fee Schedule
B. Procedures for Relief Requests/Financial Requirements
C. Reserved
D. Reserved
E. Financial Requirements for Agricultural Regularity
F. Letter of Credit Standards for Corn & Soybeans
G. Letter of Credit Standards for Agricultural Products
H. Bond Standards for Agricultural Products
5. Reserved
6. Arbitration Fees
A. Member Claims
B. Non-Member Claims
7. Reserved
8. Reserved
9. Reserved
9B-1 LIFFE Core Network Acceptable Use Policy
9B-2 e-cbot Error Trade Policy
9B-3 Tick Breakdown per CBOT Contract
9B-4 Example of Autoleg Error
10. Grains
A. Regular Warehousemen - Chicago and Burns Harbor Switching Districts
B. Regular Warehousemen - St. Louis-East St. Louis and Alton Switching
Districts
C. Regular Warehousemen - Minneapolis and St. Paul Switching Districts
D. Regular Warehousemen - Toledo, Ohio Switching District
E. Reserved
F. Reciprocal Switching Charges within Chicago, IL and Burns Harbor, IN
G. Grain Load-Out Procedures
10C(A) Corn and Soybean Shipping Stations
10S(A) Soybean Only Shipping Stations
11. Soybean Oil
A. Regular Shippers
B. Differentials
12. Soybean Meal
A. Regular Shippers
B. Differentials
13. Reserved
14A. Approved Brands for 5,000 oz. Silver
14B. Depositories and Assayers for 5,000 oz. Silver
m14A Approved Brands for Mini-Sized Silver
m14B Depositories and Assayers for Mini-Sized Silver
15A. Approved Brands for 100 oz. Gold
15B. Depositories and Assayers for 100 oz. Gold
m15A Approved Brands for Mini-Sized Gold
m15B Depositories and Assayers for Mini-Sized Gold
16-36. Reserved
37. Rough Rice
A. Reserved
B. Rough Rice Regular Warehouses Delivery Differentials
C. Definitions
D. Minimum Financial Requirements for Rough Rice Regularity
39-46. Reserved
Appendix 2
APPENDIX 2
[Enlarge/Download Table]
------------------------------------------------------------------------------------------------
COMMITTEE CBOE TRADING DISSOLUTION
VOTE APPOINTMENTS PRIVILEGES RIGHTS
------------------------------------------------------------------------------------------------
FULL Yes Yes Yes Yes
------------------------------------------------------------------------------------------------
AM Yes Yes No 1/6 of Full
(1/6) Members Share
------------------------------------------------------------------------------------------------
COM None As Advisor No .005 of Full
Members Share
------------------------------------------------------------------------------------------------
GIM None As Advisor No .11 of Full
Members Share
------------------------------------------------------------------------------------------------
IDEM None As Advisor No .005 of Full
Members Share
------------------------------------------------------------------------------------------------
DELEGATES None Member of specified Only for Full None
committees; Advisor on Delegate
others
------------------------------------------------------------------------------------------------
[Enlarge/Download Table]
-------------------------------------------------------------------------------------------------------
TRADING PRIVILEGES COMMUNICATION FROM EXCHANGE FLOOR
-------------------------------------------------------------------------------------------------------
FULL All CBOT (& CBOE) Contracts Allowed in all contracts
-------------------------------------------------------------------------------------------------------
AM All Existing & Prospective Futures & Allowed only in contracts for which Trading
Option Contracts in Government Privileges are specified
Instruments Mkt., Index, Debt &
Energy Mkt., & Comm. Options Mkt.
-------------------------------------------------------------------------------------------------------
COM All Options Contracts listed on the Allowed only in contracts for which Trading
Exchange Privileges are specified
-------------------------------------------------------------------------------------------------------
GIM U.S. T-Bond, U.S. T-Note (6-10 yr.), Allowed only in contracts for which Trading
(5 yr.), (2 yr.), Interest Privileges are specified
Rate Swap, Bund, Bobl and Schatz futures
-------------------------------------------------------------------------------------------------------
IDEM 30-Day Fed Funds, mini-sized Allowed only in contracts for which Trading
Eurodollar, CBOT(R) DJIA(SM)
Index, mini-sized DJIA(SM) Index, Privileges are specified
DJAIGCI(SM) Index, Muni Note
Index, Silver & Gold futures
-------------------------------------------------------------------------------------------------------
DELEGATES Those contracts authorized for the In those contracts authorized for the
specific Membership or Membership Membership or Interest delegated
Interest.
-------------------------------------------------------------------------------------------------------
Page 1 of 2
Appendix 2
CBOT(R) TRADING PRIVILEGE SUMMARY
---------------------------------
(as of 01/01/05)
FULL MEMBERSHIP
----------------
- All futures & options.
----------------------
ASSOCIATE MEMBERSHIP
--------------------
- Treasury Bond, Long-Term Treasury Note, Medium-Term Treasury Note, Short Term
Treasury Note, 10-Year Interest Rate Swap, 5-Year Interest Rate Swap, 30-Day
Fed Fund, CBOT(R) DJIA(SM) and mini-sized DJIA (SM) futures and options;
-------------------
- Municipal Note Index, mini- sized Treasury Bond, mini-sized Eurodollar,
Bund, Bobl, Schatz, 100 OZ. Gold, mini-sized Gold, 5,000 OZ. Silver,
mini-sized Silver and CBOT(R) DJ- AIG CI(SM)futures;
-------
- Corn, Oat, Rough Rice, Soybean, Soybean Meal, Soybean Oil and Wheat options.
-------
GIM MEMBERSHIP INTEREST
-----------------------
- Treasury Bond, mini-sized Treasury Bond, Long-Term Treasury Note,
Medium-Term Treasury Note, Short Term Treasury Note, 10-Year Interest Rate
Swap, 5-Year Interest Rate Swap, Bund, Bobl and Schatz futures.
-------
IDEM MEMBERSHIP INTEREST
------------------------
- 30-Day Fed Fund, Municipal Note Index, 100 OZ. Gold, mini-sized Gold, 5,000
OZ. Silver, mini-sized Silver, CBOT(R) DJ-AIGCI(SM), CBOT(R) DJIA(SM),
mini-sized Eurodollar and mini-sized DJIA(SM) futures;
-------
COM MEMBERSHIP INTEREST
-----------------------
- Treasury Bond, Long-Term Treasury Note, Medium-Term Treasury Note, Short Term
Treasury Note, 10-Year Interest Rate Swap, 5-Year Interest Rate Swap, CBOT(R)
DJIA(SM), CBOT(R) mini-sized DJIA (SM), Corn, Oat, Rough Rice, Soybean,
Soybean Meal, Soybean Oil and Wheat options;
-------
- 100 oz. Gold, mini-sized Gold, 5,000 oz. Silver and mini-sized Silver
futures (thru 06-30-05).
-------
Page 2 of 2
Appendix 3A
APPENDIX 3A - GUIDELINES FOR GUESTS AND VISITORS WHILE ON THE EXCHANGE FLOOR OF
THE CHICAGO BOARD OF TRADE
1. Bringing guests on the Exchange Floor is a privilege extended to all
members who comply with the Rules pertaining thereto.
2. Guests shall be admitted to the Exchange Floor between 1/2 hour before the
opening on each Floor and 1/2 hour after the close on each Floor.
3. No more than 50 guests shall be allowed on the Exchange Floor at any one
time during trading hours.
4. A member may reserve a time for five guests, which reservation will be held
no longer than ten minutes. Such reservation privileges will be denied if
they are abused.
5. Guests must be accompanied by a member at all times. Both the guest and the
host member will sign on to and off of the Floor. The guest will wear, on
visible display, a guest badge. The member will be responsible for the
guest's conduct on the Floor.
6. A) A guest may remain on the Floor for a period of 30 minutes; if he
has not signed out, he will be paged. It will be the member's
responsibility to see that the guest leaves the Floor within five minutes
of being paged and that the guest returns the badge to the Service Desk on
the 4th Floor. Failure to return the guest badge immediately will subject
the member to a minimum fine of twenty-five dollars.
B) At the end of the initial 30 minutes, a guest may ask to extend
his visit for (a) subsequent period(s) of 30 minutes, although such
extension(s) will not be granted if there are more than 50 guests on the
Floor at any one time.
C) If necessary, an All Day Guest Pass may be obtained for a foreign
visitor, firm executive, firm branch employee, customer or consultant (and
other persons with the approval of the Floor Conduct Committee Chairman) by
completing a short application form at the fourth floor Service Desk.
Except for the 30-minute time limit, the same guidelines apply to All Day
Guests, including the requirement that they be accompanied at all times by
a member.
7. No privileges other than admittance to the Floor may be extended to a
guest. A guest is specifically prohibited from performing any functions of
an employee of a member or of a member firm. Entering a trading pit, using
a telephone, using the market display equipment and blocking the area are
also prohibited.
8. Guests of management for business purposes only shall be allowed in the
Exchange Floor.
9. The President of the Exchange may issue special permits beyond the above
limit (five individuals) when he deems it in the interest of the Exchange
to do so. On a case-by-case basis, he may schedule admission to the Floor
for small groups who have made appropriate arrangements.
(Tour Groups: can be no larger than 12, can visit between the hours of
10:30 a.m. and 12:15 p.m., must be escorted at all times, are limited to 15
minutes per tour, will be limited to no more than two groups on the Floor
at any one time, and all such groups must be coordinated through the
Communications Department.)
10. No other guests of staff members may be allowed on the Exchange Floor.
11. Members shall accompany guests in the Member's cafeteria.
12. No guests may be allowed on the Exchange Floor more than five times in one
month.
13. A member who has leased out his or her only membership(s) and who has been
a member for at least 25 years is eligible to bring guests on the trading
floor in accordance with these guidelines.
14. Members who violate and/or allow their guest(s) to violate any of these
guidelines may be denied visitor's privileges for a period of up to six
months and/or fined appropriately.
(08/01/04)
Appendix 3B
APPENDIX 3B - INSTRUCTIONS FOR FLOOR CLERK ACCESS TO
THE FLOOR OF THE BOARD OF TRADE OF THE CITY OF CHICAGO
Please be advised that access to the Floor of the Board of Trade of the
City of Chicago (hereinafter referred to as the Exchange) is a right of
membership. Associate Members and GIM, IDEM and COM Membership Interest Holders
have floor access rights only with respect to specified contracts (See Rules
211.00, 291.00, 292.00 and 293.00). Any and all access by non-members is solely
a privilege extended by the membership for the strictly limited purposes
outlined below. Any violation of any of these instructions shall be just cause
for the revocation of the privilege.
Functions and Responsibilities of Floor Clerks on the Exchange Floor:
A. Floor Clerks and Trainee-Floor Clerks may perform only the following duties
and no others while on the Floor of the Exchange:
1. Receive messages (including trading cards and written orders) from
their employers or members representing such employers;
2. Deliver said messages (including trading cards and written orders)
and communicate orders to the pit from their position or communication
instrument by use of hand signals or verbal communication;
3. Write broker's cards from endorsed orders, endorse orders from
broker's cards and write the brokers' acronym on the broker's order, during
trading hours on the Exchange Floor and for a reasonable period of time
thereafter;
4. Operate order processing terminals;
5. Receive and write up orders from, and report order status to,
their employers and their employers' duly registered Associated Persons,
Introducing Brokers, proprietary traders and customers with respect to
commodities traded on the Floor;
6. Communicate information of any nature directly to an individual
Member, provided that the information communicated may only concern a
contract which is within that individual Member's membership category;
7. Communicate information of any nature to a trader who is trading
for the proprietary account of the clerk's member firm employer or for the
proprietary account of a firm which has one of the following relationships
to the clerk's member firm employer:
- 100% parent firm;
- Wholly owned subsidiary; or
- Affiliate through a common 100% parent firm;
8. Provide market information (not the clerk's own personal opinion)
regarding activities on the Floor to any of the following:
- duly registered Associated Persons of the clerk's member
firm employer;
- duly registered Introducing Brokers of the clerk's member
firm employer; and
- established customers of the clerk's member firm employer;
For the purposes of this section 8., an "established customer"
shall be defined as an individual or entity which has an open and active
trading account with the clerk's member firm employer.
A clerk may initiate contact with any of the foregoing to provide
market information provided that the clerk expresses no personal opinion
regarding market direction or specific trades.
A clerk may relay the opinions of a member or of the clerk's
member firm employer with the prior approval of such member or member firm
employer to any of the following:
- duly registered Associated Persons of the clerk's
member firm employer;
- duly registered Introducing Brokers of the clerk's
member firm employer; and
Page 1 of 5
Appendix 3B
- established customers of the clerk's member firm employer.
9. Initiate contact with a customer of the clerk's member firm
employer to report the status of that customer's order;
Floor Clerks and Trainee-Floor Clerks may not, while on the Floor of the
Exchange, perform any other duties except those explicitly prescribed above.
The following Exchange Floor activities are permissible only for members and
only with respect to the contracts in which they have membership privileges.
The following activities are prohibited for Floor Clerks and Trainee Floor
Clerks:
1. Soliciting customer business;
2. Trading for their own accounts or having any interest in a trading
account, except as prescribed in Regulation 301.05;
3. Being an RCR or an Associated Person, a Commodity Pool Operator or
a Commodity Trading Advisor under the Commodity Exchange Act.
4. Initiating orders or trades of any sort, including arbitrage;
5. Exercising discretion of any sort with respect to any order,
including arbitrage;
6. Loitering by or in the trading pits;
7. Being compensated on a commission or per contract basis.
B. Trade Checkers (only) may perform only the following duty and no others
--------------
while on the Floor of the Exchange.
1. Check and reconcile trades of, for, and on behalf of their member
firm employers. Absent extraordinary circumstances, the Floor Governors
Committee would expect such Trade Checkers to be off the Floor of the
Exchange by 10:30 a.m.
This 10:30 a.m. limitation does not apply to floor clerks who are
employed by individual members.
Trade Checkers may not, while on the Floor of the Exchange, perform any other
----
duties except that explicitly prescribed above. The following is a list of the
most common abuses of the Trade Checker privilege:
1. Loitering by or in the trading pits or congregating in unassigned
areas;
2. Communicating in any manner with members or member firms;
3. Entering verbal orders with members or member firms;
4. Trading for their own accounts;
5. Being or acting in any other capacity, including chartist, with a
member or member firm;
6. Being an RCR or Associated Person under the Commodity Exchange
Act, as amended by the Commodity Futures Trading Commission Act of 1974.
C. Personnel
1. Emergency Personnel - See Floor Clerks and Trainee-Floor Clerks
(Paragraph A above);
2. Summer Personnel - See Floor Clerks and Trainee-Floor Clerks
(Paragraph A above);
D. Registered Commodity Representatives (RCRs) and Applicant Observers may
-------------------------------------
perform only the following duty and no other while on the Floor of the
Exchange:
1. Observe the various floor activities of the members and other
privileged non-members who have been allowed access to the Floor. Such
observation shall be limited to a period of two weeks (ten market days).
RCR Observers and Applicant Observers may not, while on the Floor of the
Exchange, perform any other duties except that explicitly prescribed above. The
following are the areas most prone to abuse and which the RCR Observer and
Applicant Observer must be especially aware of:
1. Loitering by or in the Trading pits or congregating in unassigned
areas;
Page 2 of 5
Appendix 3B
2. Answering phones;
3. Placing verbal orders with members of member firms;
4. Writing orders;
5. Trading for their own accounts;
6. Being or acting in any other capacity, including chartist, with a
member or member firm.
E. The Floor Conduct Committee has established a special broker assistant
badge, in addition to a regular floor clerk badge, and has set up the
following guidelines to be used in issuing this special badge.
A broker assistant badge will only be issued for the following
purposes:
- a broker having a high volume of orders and who needs an assistant
to hold and sort the orders;
- Consistent with these duties, a broker assistant also may
communicate market information by means of hand signals and verbal
communication.
A badge will not be issued if used for the following reasons:
- card counting - if a floor clerk is a card counter, he/she must
quickly enter and take the cards and count them outside of the pit
and;
- Information - a floor clerk who obtains information about other
brokers or another commodity.
Please keep in mind that the abuses of the floor clerk badge will still be
upheld for those issued a broker assistant badge, as follows:
1. Loitering by or in the trading pits or congregating in unassigned
areas.
2. Not properly displaying their assigned floor badges.
3. Trading for their own accounts.
4. Being or acting in any other capacity, including chartist, with a
member or member firm. A limited exception to this provision
applies, only with respect to agricultural markets, as follows.
Clearing firms may arrange with floor brokers to place clearing
firm floor clerks in pits to perform broker assistant
responsibilities for such floor brokers when conditions of high
volume/high volatility occur. Such arrangements must be registered
with the Exchange as prescribed by the Exchange. Under these
arrangements, clearing firms will continue to be responsible for
these clerks' supervision and compensation. When conditions of
high volume/high volatility are not present, such clerks will
return to their normal duties on behalf of their clearing firm
employers.
5. Being an Associated Person under the Commodity Exchange Act, as
amended by the Commodity Futures Trading Commission Act of 1974.
The committee advises members that the Board of Directors gave fining
authority to the Floor Conduct Committee of up to $500 for conduct
violations of Floor Employees of Members. The fining authority begins
December 21, 1981.
Your cooperation in this matter would be greatly appreciated.
F. The Exchange has established guidelines regarding the use of headsets in
the Trading Pits:
1. Brokers' Assistants and Floor Clerks with headset privileges shall
be subject to all applicable CBOT Rules and Regulations, including Rule
301.00; Regulations 301.01, 301.05 and 310.01; and this Appendix. In
addition, members who either sponsor or employ an individual utilizing a
headset are responsible for ensuring that the sponsored or employed
individual complies with the Exchange's Headset Policy.
2. All members and member firms are eligible to receive authorization
to utilize headsets. The authority to govern the administration of the use
of headsets (including who has authorization and where an authorized
individual may utilize the headset apparatus) rests with the Floor
Committee. The Floor Committee should establish fair and equitable
guidelines for
Page 3 of 5
Appendix 3B
administering the use of headsets, and when administering its guidelines,
the Floor Committee should consult with the relevant Pit Committee. The
Floor Committee shall not arbitrarily deny any member or member firm the
use of a headset.
3. Headsets may be worn by Brokers' Assistants, Floor Clerks, and
Members who have been authorized by the Floor Committee. "Brokers'
Assistants" and "Floor Clerks" as used in preceding sentence may include
members and membership interest holders who do not have membership
privileges in the contract for which the headset is being utilized.
4. A Broker's Assistant or Floor Clerk wearing a headset may
communicate order information and fill information but may not communicate
his or her personal opinion regarding activities in the trading pit
including, but not limited to, interpretations of technical or fundamental
market factors or perspective with respect to member trading sentiment or
trading bias. Any other information may be communicated via a headset if
the information has been conveyed to the headset operator directly by a
member (providing that the member conveying the information has trading
privileges in the relevant underlying market). In addition, Brokers'
Assistants and Floor Clerks wearing headsets may communicate via a headset
any market information that is clearly within the respective pit's "public
domain". In other words, individuals who are wearing headsets may
communicate any market information that has been "publicly" exposed to the
respective trading pits. The member sponsor or member employer of the
individual wearing the headset is responsible for the content and nature of
any headset communications.
Only members on the floor may communicate with non-members located off
the floor for the purposes of communicating or receiving market news and
personal opinion regarding interpretations of technical or fundamental
market factors or perspective with respect to a member's trading sentiment
or trading bias. This level of communication is restricted to members with
trading privileges in the respective contract who are located on the floor
communicating with other members or non-members located either on or off of
the trading floor.
5. Headsets may communicate between trading pits and from pit to
Exchange floor booth spaces in any CBOT(R) trading room. This includes COM
Membership Interest Holders communicating with a floor broker or the floor
broker's broker assistant in a futures pit for the purposes of entering
futures orders.
Direct communication via headsets located in or around the Exchange's
trading pits to and from off-site locations is only allowed provided the
individual assigned to a headset adheres to the following requirements when
communicating with any individual off the Exchange floor:
- Headset communications shall be permissible between the DowSM
pits and the floors of other exchanges which trade equity-
related products.
- An individual member located outside a trading pit (e.g., at a
floor booth or in an off-site office) may communicate via
headset with a member or clerk in or around a trading pit
provided that the individual member has trading privileges in
the contract which is traded in the pit which the individual
accesses.
- Members off the floor can enter orders via headsets for their
customer, proprietary and personal accounts provided they have
trading privileges in the respective contract.
- Members off the floor utilizing headsets for the purposes of
entering customer orders directly into the pit must comply with
Exchange audit trail regulations previously mandated by the
CFTC which require that customer orders be: recorded on member
firm floor order tickets; contain the account identification of
the customer; contain an exchange designated time stamp upon
receipt and upon confirmation of an execution. The Exchange
provides a telephonic link between the booth and the pit to
allow for a floor broker to communicate directly with a member
who is located off the floor, while simultaneously allowing
personnel at the member firm's booth to record the required
audit trail information.
Page 4 of 5
Appendix 3B
- Floor brokers who utilize headsets in conjunction with an
electronic order routing/endorsement system are not required
to maintain a booth to pit link provided that customer orders
are entered electronically and the order entry system provides
the requisite audit trail.
- Floor brokers receiving orders from another member not present
on the Exchange Floor may record such trades on their trading
cards in lieu of obtaining an order ticket. However, the
executing member must record the order instructions, account
designation, and execution time on the member's order.
- Only Members located on the floor may communicate with non-
members located off the floor for the purpose of placing
orders for the member's personal trading account or the member
firm's proprietary account in CBOT contracts and non-CBOT
markets.
- Members or members' broker assistants located on the floor may
communicate with non-members located off of the trading floor
to accept orders or instructions to change orders from the
non-member for agricultural and financial futures and options
contracts. The requisite audit trail requirements must be met
utilizing the booth to pit link unless the FCM authorizes the
executing floor broker to accept the non-member's order
without the booth to pit link. Under such authorization of the
FCM, the executing floor broker is responsible for meeting all
audit trail requirements including: recording customer orders
on member firm floor order tickets; recording the account
identifier of the customer; and time stamping the customer
order upon receipt and upon confirmation of an execution.
Member firms may also permit member or non-member employees
(including APs) located off the floor to communicate orders
for its proprietary or customer accounts directly to a floor
broker or his broker assistant without requiring the booth to
pit link upon the member firm's sole discretion. Under this
provision, the floor broker would be responsible for capturing
the required audit trail information.
6. Any and all headset communications must be voice recorded by the
member or member firm authorized to use the headset(s). Members and member
firms are permitted to utilize their own recording devices, providing that
the devices meet reasonable standards with respect to quality and
reliability, or members and member firms may utilize an Exchange
administered voice recording system for a fee to be paid to the Exchange by
the member or member firm utilizing the Exchange's system.
7. For reasons relating to the general safety and space concerns
that arise out of the use of wired headsets, the Floor Committee is
encouraged to facilitate, as the development of technology permits, a
movement to a wireless headset only environment.
8. Authorization to use a headset does not entitle the authorized
individual to a particular spot or site within a pit. In addition, Floor
Clerks utilizing headsets may not loiter in the trading pits and must exit
the trading pits when they are not conducting business. (06/01/01)
Page 5 of 5
APPENDIX 3C - DRESS CODE
APPENDIX 3-C - DRESS CODE
Members and member firms must make every effort to ensure that their employees
and guests conform to the Chicago Board of Trade's Dress Code, as hereafter
defined. The Dress Code is designed to provide a safe and businesslike
atmosphere on the trading floor for all members and employees; an individual may
be refused access to the trading floor for violating the Dress Code. Members and
Member firms are subject to fines and/or other disciplinary measures imposed by
the Floor Conduct Committee for individual violations of the dress code and
violations of the dress code by their employees.
The Chicago Board of Trade Dress Code requires "Business Dress Attire" to be
worn at all times on the trading floor-not only during trading hours. "Business
Dress Attire" is defined as conventional and businesslike attire which is neat,
clean and presentable; does not pose a safety hazard or distraction to the
wearer or others; and that which conforms to the following provisions:
A) Jackets (Suit Coat, Blazer or a Trading Jacket as prescribed by the
Association) must be worn on the trading floor by Members and
employees at all times. No trading jackets from other Exchanges are
allowed on the floor. Guests may not wear trading jackets on the
Exchange floor during trading hours. The display of patches or buttons
with crude or offensive slogans is prohibited.
B) Badges, as prescribed by the Association, designating Member trading
and access rights and non-member affiliation and access rights must be
worn at all times. Badges must be worn in plain view, on the upper
front of the jacket (not inside pockets or attached to lower pockets.)
Badges from other Exchanges are prohibited. The wearing of out-dated,
unauthorized or lapsed membership badges from the Exchange is
prohibited. Badges must not be defaced, altered, or affixed with
stickers or pictures not approved by the Association.
C) Men must wear ties (bow ties or neckties) at all times on the
agricultural trading floor, with the exception of days when there is
an early close for any part of the Exchange. Ties must be in good
condition, knotted in a conventional manner, and drawn up to at least
the second button from the collar. Collared shirts that can be worn
with a tie must be worn at all times on the trading floor and must be
neat, presentable and businesslike. Shirts must be clean, neat,
presentable, tucked in and buttoned up to at least the second button
from the collar. Golf-type shirts are permitted. Turtleneck sweaters
for men are not allowed. Crewneck sweaters worn over a collared shirt
are permitted if a necktie is visible; a trading jacket must also be
worn. Shirts with offensive, crude or distracting slogans or pictures
are prohibited. Pants or slacks must be neat, presentable and
businesslike. Work pants, athletic pants and blue jeans are
prohibited.
D) Women must wear pants, skirts or dresses that are neat, presentable,
and businesslike. Skirts may be no shorter than two inches above the
knee and must be significantly longer than the trading coat. Full,
generously cut, businesslike split skirts may be worn. Shirts,
blouses, sweaters or other tops must be neat, presentable, and
businesslike. Shirts with offensive, crude or distracting slogans or
pictures are prohibited. Work pants, athletic pants and blue jeans are
prohibited. Attire should not expose the body in an inappropriate
manner (e.g. bare midriffs, backs or thighs.)
E) Shoes must be worn at all times. Shoes must neither be of a design nor
worn in a manner which presents a safety hazard. Slippers and sandals
with no backs are prohibited. Women may wear slingback or open-toe
sandals that are businesslike. High platform shoes or high heeled
shoes or boots with soles and/or heels greater than three inches are
not permitted. Athletic shoes are permitted. Shoes must be in neat
condition and must be tied or fastened at all times.
F) Shirts: T-Shirts, sweatshirts, athletic jerseys, hooded shirts,
flannel shirts, hospital scrubs and shirts bearing messages,
advertisements, pictures or slogans are prohibited. Attire should not
expose the body in a manner inappropriate for business (e.g. bare
midriffs, chests, or backs.)
G) Pants: The following are all prohibited: blue jeans, stone washed
jeans, bib overalls, fatigues, tie dyes, shorts of any kind, tightly
fitting stretch pants, spandex pants, bicycling pants, painter pants,
sweat pants, athletic/exercise pants, pants with elastic at the
ankles, tights worn in lieu of pants, pants with slogans,
advertisements, or work loops, and any pants shorter than 2 inches
above the ankle.
H) Piercing & Jewelry: Jewelry may not be worn if it presents a safety
hazard to the wearer or others.
I) Miscellaneous: All headgear or head coverings are prohibited, except
for religious reasons. Sunglasses are prohibited unless they have
prescription lenses.
In Summary: All dirty, frayed, faded, torn, badly wrinkled, revealing or
unbusinesslike clothing is prohibited. All clothing intended for athletic
activity or appropriate for manual labor is prohibited. Attire, worn by members,
employees or their guests, which exposes the body in a manner inappropriate for
a business atmosphere is prohibited from the trading floor at all times.
While the foregoing is comprehensive and employers and security staff shall
enforce the dress code as defined above, they are not limited to the specific
examples given. 01/01/05
2
APPENDIX 3D
CBOT(R) Contract Symbols/Trading Hours
[Enlarge/Download Table]
Open Auction Open Auction Electronic Ticker Electronic
Commodity Ticker Symbol Trading Times (CT) Symbol Trading Times (CT)
Agricultural Futures
--------------------
Corn C 9:30am - l:15pm ZC 7:30pm-6:00am
Oats O 9:30am - 1:15pm ZO 7:33pm-6:00am
Rough Rice RR 9:15am - 1:30pm ZR 7:33pm-6:00am
Soybean Meal SM 9:30am - 1:l5pm ZM 7:31pm-6:00am
Soybean Oil BO 9:30am - 1:15pm ZL 7:31pm-6:00am
Soybeans S 9:30am - l:15pm ZS 7:31pm-6:00am
Wheat W 9:30am - 1:15pm ZW 7:32pm-6:00am
mini-sized Corn YC 9:30am - 1:45pm N/A N/A
mini-sized Soybeans YK 9:30am - 1:45pm N/A N/A
mini-sized Wheat YW 9:30am - 1:45pm N/A N/A
Agricultural Options (call/put)
--------------------
Corn CY/PY 9:30am - 1:15pm OZC 7:32pm-6:00am
Oats OO/OV 9:30am - 1:15pm OZO 7:35pm-6:OOam
Rough Rice RRC/RRP 9:15am - l:30pm OZR 7:35pm-6:00am
Soybean Meal MY/MZ 9:30am - l:15pm OZM 7:33pm-6:00am
Soybean Oil OY/OZ 9:30am - 1:15pm OZL 7:33pm-6:00am
Soybeans CZ/PZ 9:30am - 1:15pm OZS 7:33pm-6:00am
Wheat WY/WZ 9:30am - 1:15pm OZW 7:34pm-6:00am
Interest Rate Futures
---------------------
30 Yr U.S. Treasury Bonds US 7:20am - 2:00pm ZB 7:00pm-4:00pm
10 Yr U.S. Treasury Notes TY 7:20am - 2:00pm ZN 7:00pm-4:00pm
5 Yr U.S. Treasury Notes FV 7:20am - 2:00pm ZF 7:00pm-4:00pm
2 Yr U.S. Treasury Notes TU 7:20am - 2:00pm ZT 7:01pm-4:00pm
10 Yr Interest Rate Swaps NI 7:20am - 2:00pm SR 7:03pm-4:00pm
5 Yr Interest Rate Swaps NG 7:20am - 2:00pm SA 7:03pm-4:00pm
30 Day Federal Funds FF 7:20am - 2:00pm ZQ 7:01pm-4:00pm
10 Yr Municipal Note Index MB 7:20am - 2:00pm ZU 7:04pm-4:00pm
mini-sized 30 Yr U.S. Treasury Bonds N/A N/A YH 7:00pm-4:00pm
mini-sized Eurodollars N/A N/A YE 7:00pm-4:00pm
Bund N/A N/A GBC 1:00am-12noon
Bobl N/A N/A GBM 1:00am-12noon
Schatz N/A N/A GBS 1:00am-12noon
Interest Rate Options (call/put)
---------------------
30 Yr U.S. Treasury Bonds CG/PG 7:20am - 2:00pm OZB 7:02pm-4:00pm
10 Yr U.S. Treasury Notes TC/TP 7:20am - 2:00pm OZN 7:02pm-4:00pm
5 Yr U.S. Treasury Notes FL/FP 7:20am - 2:00pm OZF 7:02am-4:00pm
2 Yr U.S. Treasury Notes TUC/TUP 7:20am - 2:00pm OZT 7:02am-4:00pm
10 Yr Interest Rate Swaps NIC/NIP 7:20am - 2:00pm OSR 7:05pm-4:00pm
5 Yr Interest Rate Swaps NGC/NGP 7:20am - 2:00pm OSA 7:05pm-4:00pm
30 Day Federal Funds FFC/FFP 7:20am - 2:00pm OZQ 7:02pn-4:00pm
APPENDIX 3D
[Enlarge/Download Table]
Open Auction Open Auction Electronic Ticker Electronic
Commodity Ticker Symbol Trading Times (CT) Symbol Trading Times (CT)
Eqiuity/Indez Futures
---------------------
mini-sized Dow(SM) ($5) N/A N/A YM 7:15pm-4:00pm
Dow Jones Industrial Average(SM) ($10) DJ 7:20am-3:15PM ZD 7:15pm-7:00pm
Dow Jones-AIG Commodity Index(SM) N/A N/A AI 8:15am-1:30pm
Equity/Indez Options (call/put)
--------------------
Dow Jones Industrial Average(SM) ($10) DJC/DJP 7:20am-3:15pm OZD 7:17pm-7:00am
mini-sized Dow(SM) N/A N/A OYM 7:17pm-4:00pm
Metal Futures
-------------
100 OZ. Gold N/A N/A ZG 7:16pm-4:00pm
mini-sized Gold N/A N/A YG 7:16pm-4:00pm
5000 OZ. Silver N/A N/A ZI 7:16pm-4:00pm
mini-sized Silver N/A N/A YI 7:16pm-4:00pm
01/01/05
Appendix 3E
APPENDIX 3E - CONTRACT MONTH SYMBOLS
[Enlarge/Download Table]
First Year Month Symbols
----------------------------------------------------------------------------------------------------
January - F April - J July - N October - V
----------------------------------------------------------------------------------------------------
February - G May - K August - Q November - X
----------------------------------------------------------------------------------------------------
March - H June - M September - U December - Z
----------------------------------------------------------------------------------------------------
Second Year Month Symbols
----------------------------------------------------------------------------------------------------
January - A April - D July - L October - R
----------------------------------------------------------------------------------------------------
February - B May - E August - O November - S
----------------------------------------------------------------------------------------------------
March - C June - I September - P December - T
----------------------------------------------------------------------------------------------------
Third Year Month Symbols
------------------------
Same as first year symbols with the year noted.
Appendix 3G
APPENDIX 3G - GUIDELINES - BADGE VALIDATION AND RETURN
1. In each of the following circumstances, the referenced individual's
membership floor access badge must be returned to the Member Services and
Member Firm Staff Services ("Member Services") Department as indicated if
the transaction involves the individual's only membership or all of his/her
memberships:
a. A membership seller within 30 days the effective date of the
membership sale; (Membership sale proceeds will not be released to the
seller unless the badge has been returned).
b. A membership transferor within 30 days after the transfer has
occurred.
c. A membership delegator within 30 days after the effectiveness
of the delegation agreement.
2. Each membership delegate must return the applicable delegate badge to the
Member Services Department within 30 days after the delegation agreement's
termination or expiration.
3. Upon the effective date of any Exchange suspension of membership
privileges, the suspended individual must return his/her membership floor
access badge to the Member Services Department within 30 days of the
effective date of the suspension for the suspension's duration.
4. Upon the termination or expiration of any delegation agreement, the
Exchange will delete the terminated delegate's identifying acronym from
Exchange computer records after the delegate's 30-day grace period expires.
5. Only Exchange-issued badges will be permissible for floor access. Sewn-on
badges will not be permissible.
6. No member, membership interest holder or delegate will be relieved of
responsibility for returning the badge, even if lost, without specific
approval of the Floor Conduct Committee.
All cases involving lost membership floor access badges should be referred
to the Member Services Department which shall have the authority to issue a
replacement badge. Member Services will issue a replacement badge only to
individuals with valid membership floor access privileges and who are
current in their dues. Any problems or unusual circumstances involving a
lost membership floor access badge will be referred to the Floor Conduct
Committee.
All cases involving lost floor clerk badges will be referred to the Co-
Chairman or, in his absence, the Vice-Chairman of the Floor Conduct
Committee. No floor clerk will be issued a replacement badge or be relieved
of responsibility for returning the badge without specific approval of the
Co-Chairman or, in his absence, the Vice Chairman of the Floor Conduct
Committee.
7. Floor clerk badge applicants must present acceptable identification when
filing their applications. Exchange staff will verify member's co-
signatures on floor clerk badge applications and will process such
applications in no less than 24 hours after receipt.
03/01/94
APPENDIX 4A
[Enlarge/Download Table]
------------------------------------------------------------------------------------------------------------------------------------
EXCHANGE TRANSACTION FEE SCHEDULE
------------------------------------------------------------------------------------------------------------------------------------
Account Type U.S. and German Debt Other Financial Products Ag Products Gold &
(See notes for details) Platform First 25k Over 25k First 25k Over 25k First 25k Over 25k Silver
------------------------------------------------------------------------------------------------------------------------------------
1 One member trading for a
member-owned account on an Open Auction $0.05 $0.05 $0.05 $0.05 $0.05 $0.05
individual or firm-owned seat e-cbot $0.03 $0.03 $0.10 $0.05 $0.10 $0.05 $0.05
------------------------------------------------------------------------------------------------------------------------------------
First 100k Over 100k First 100k Over 100k First 100k Over 100k
------------------------------------------------------------------------------------------------------------------------------------
2 Non-member trading for an
individual member's or member- Open Auction $0.06 $0.05 $0.06 $0.05 $0.06 $0.05
firm's proprietary account e-cbot $0.12 $0.12 $0.30 $0.20 $0.30 $0.20 $0.60
------------------------------------------------------------------------------------------------------------------------------------
3 Non-Member's Futures Contracts Open Auction $0.30 $0.30 $0.30 $0.30 $0.60 $0.50
Account e-cbot $0.30 $0.30 $0.90 $0.75 $1.50 $1.50 $1.00
-----------------------------------------------------------------------------------------------------------------
Options Contracts Open Auction $0.50 $0.40 $0.50 $0.40 $0.60 $0.50
e-cbot $0.50 $0.50 $0.90 $0.75 $1.50 $1.50
------------------------------------------------------------------------------------------------------------------------------------
[Enlarge/Download Table]
----------------------------------------------------------- ------------------------------------------------------
EXCHANGE TRANSACTION FEE SURCHARGES EXCHANGE MINI-SIZED CONTRACT FEES
----------------------------------------------------------- ------------------------------------------------------
Delegates or e-cbot only Member firms $0.15 Contract Member Non-Member
----------------------------------------------------------- ------------------------------------------------------
Exchange for Physical/Swaps - U.S. and German $5 Dow $0.05 $0.75
Debt Contracts $0.50 ------------------------------------------------------
----------------------------------------------------------- Gold & Silver $0.05 $0.50
Exchange for Physical - Agricultural Contracts $0.50 ------------------------------------------------------
----------------------------------------------------------- Interest Rate $0.15 $0.50
Wholesale Transactions for Swap Futures $0.50 ------------------------------------------------------
----------------------------------------------------------- Agricultural $0.02 $0 25
Exchange for Physical/Swaps - Other Financial & ------------------------------------------------------
Metals Contracts $1.00 Note: Exchange transaction fees for mini-sized contracts.
----------------------------------------------------------- Fee surcharges also apply to these fees.
Exchanges for Risk $1.00
-----------------------------------------------------------
Note: Surcharges are levied on applicable transactions in
addition to standard, mini-sized, and non-trade exchange
transaction fees.
[Enlarge/Download Table]
----------------------------------------------------------- ------------------------------------------------------
CLEARING DIVISION FEE SCHEDULE EXCHANGE NON-TRADE TRANSACTION FEES
----------------------------------------------------------- ------------------------------------------------------
Contracts Cleared (including give-up executions, Member Non-Member
give-up claims, transfers, EFP's and misclears) $0.05 Non-Trades $0.05 $0.50
----------------------------------------------------------- ------------------------------------------------------
Wholesale Transactions for Swap Note: Non-trade fees are exchange transaction fees for
Futures $0.05 exercises, deliveries, assignments and expirations. Fee
----------------------------------------------------------- surcharges also apply to these fees.
Expired Options $0.05
-----------------------------------------------------------
Option Exercises and Assignments $0.05
-----------------------------------------------------------
Position Adjustments or Transfers $0.05
-----------------------------------------------------------
Futures from Option Exercise or Assignment $0.05
-----------------------------------------------------------
Futures Delivered or Cash Settled $0.05
-----------------------------------------------------------
General Notes
Fee Level 1 Accounts - For the purposes of this chart, member accounts include:
Individual Members, Membership Interest Holders, and Proprietary Accounts of
Category (1a), (1b), (2a), (2b) and (2c) Member Firms as defined in Reg. 230.02
and their affiliates as defined in Reg. 450.02D. Trades must be both initiated
and executed by the member or by the delegate, subject to the delegate
surcharge. The delegate surcharge does not apply to delegates both initiating
and executing trades per Reg. 450.02C on behalf of the proprietary accounts of
the member firms listed above.
Fee Level 2 Accounts - For the purposes of this chart, member accounts include:
Individual Members, Membership Interest Holders, Proprietary Accounts of
Category (1a), (1b), (2a), (2b), (2c), and (3) Member firms as defined in Reg.
230.02 and their affiliates as applicable and as defined in Reg. 450.02D.
Affiliates qualified using a leased membership pay level 2 fees plus the
delegate surcharge. Member accounts where the trade is not initiated and/or
executed by a member must also comply with Reg. 450.02C.
e-cbot only Member Firms - Proprietary Accounts of Category (4) Member Firms as
defined in Reg. 230.02 pay level 2 fees plus the delegate surcharge for
full-sized contracts and Member fees plus the delegate surcharge for mini-sized
contracts.
Volume Discounts - The discounted rate applies to all traded contracts in excess
of 25,000 per month per individual member or per delegate for Fee Level 1 and in
excess of 100,000 per month per member firm or per non-member for Fee levels 2
and 3. Volumes are aggregated separately for open auction and e-cbot and within
a product complex (U.S. and German Debt, Other Financial, or Commodity). Only
full-sized contracts are eligible for the discount.
MACE Permit Holders - Exchange transaction fee for rough rice and mini-sized
agricultural contracts is $0.10. (01/01/05)
APPENDIX 4B
PROCEDURES FOR RELIEF REQUESTS/FINANCIAL REQUIREMENTS
Procedures for Relief Requests Under CBOT Regulation 285.05 Financial
---------------------------------------------------------------------
Requirements and Related CFTC Regulations
-----------------------------------------
A member FCM that has filed any relief request with the Exchange need not file
such request with the CFTC. The Exchange will promptly advise the CFTC of the
request and use its best efforts to provide the CFTC with all pertinent
information available to the Exchange. "Relief request" means a request--
1. under CFTC Regulation 1.17(d) for exemption from the minimum
debt/equity ratio;
2. under CFTC Regulation 1.17(e) to withdraw equity capital;
3. under CFTC Regulation 1.17(f)(2)(ii) for approval of
consolidation;
4. under CFTC Regulation 1.17(f)(1)(v)(B) for approval of terms in a
secured demand note relating to conditions for the making of a
demand;
5. under CFTC Regulation 1.17(h)(2)(vii) to prepayment of
subordinated borrowings;
6. under CFTC Regulation 1.17(h)(4) for approval of emergency
subordination;
7. under CFTC Regulation 1.10(e) approval of a change in fiscal-year
election; or
8. under CFTC Regulation 1.10(f) and Section 1.16(f) for a filing
extension.
12/01/01
Appendix 4C
APPENDIX 4E - MINIMUM FINANCIAL REQUIREMENTS FOR AGRICULTURAL REGULARITY
The minimum financial requirements for firms which are regular to deliver
agricultural products are:
1. Working Capital - (current assets less current liabilities) must be greater
than or equal to $2,000,000. Firms which do not have $2,000,000 in Working
Capital must deposit with the Exchange $5,000 per contract which it is
regular to deliver, up to a maximum of $2,000,000, less SEC haircuts, as
specified in SEC Rule 15c3-1(c)(2)(vi), (vii) and (viii) plus 3% in the
event of liquidation;
2. New Worth - (Total assets less total liabilities) divided by the firm's
allowable capacity (measured in contracts) must be greater than $5,000; The
net worth of a firm regular to deliver corn or soybeans must be greater
than or equal to $5,000,000. The operator of a shipping station issuing
corn or soybean shipping certificates may only issue new shipping
certificates when the total value of all outstanding shipping certificates
and the new shipping certificates, at the time of issuance of the new
shipping certificates, does not exceed 50% of net worth;
3. Each firm which is regular to deliver agricultural products is required to
file a yearly certified financial statement within 90 days of the firm's
year-end. Each such firm is also required to file within 45 days of the
statement date an unaudited semi-annual financial statement. However, each
operator of a shipping station issuing corn or soybean shipping
certificates is required to file within 45 days of the statement dates
unaudited quarterly financial statements for each of the three quarters
which do not end on such firm's year-end. In addition, the Exchange may
request additional financial information as it deems appropriate;
4. A Letter of Attestation must accompany all unaudited financial statements.
The Letter of Attestation must be signed by the Chief Financial Officer or
if there is none, a general partner, executive officer, or managerial
employee who has the authority to sign financial statements on behalf of
the firm and to attest to their correctness and completeness.
5. For the requirements for notification of capital reductions, see Regulation
285.03.
6. Any change in the organizational structure of a firm that is regular for
delivery requires that the firm notify the Exchange prior to such change.
Changes in organizational structure shall include, but not be limited to, a
corporation, limited liability company, general partnership, limited
partnership or sole proprietorship that changes to another form. Prior to
any such change occurring, the firm is also required to notify the Exchange
in writing of any name change.
01/01/04
APPENDIX 4F
LETTER OF CREDIT STANDARDS
For Corn and Soybeans Only
CBOT Regulation 1081.01 requires, as a condition for regularity, that issuers
of shipping certificates for certain commodities must file a bond and or
designated letter of credit with sufficient sureties in such sum and subject to
such conditions as the Exchange may require.
1. The regular firm is required to secure a letter of credit, naming the
Chicago Board of Trade as its beneficiary, for 100% of the current
market value of the shipping certificates issued.
2. The regular firm is required to monitor the value of the outstanding
certificates issued using the futures spot month settlement price.
Whenever the amount of the letter of credit falls below 80% of the
current market value for certificates issued, the regular firm must
increase the amount of the letter of credit, or obtain a new letter of
credit, for an amount equal to 100% of the current market value of
outstanding certificates, by 5:OO p.m. (Central Time) on the first
business day following the relevant futures settlement.
3. Prior to additional shipping certificates being issued, the regular
firm must increase the amount of the letter of credit, or secure a new
letter of credit, for 100% of the current market value of all
shipping certificates which are outstanding as well as all shipping
certificates which will be issued.
4. The Exchange will accept letters of credit only from banks with a
Moody's Investor Service counter party credit rating of A or above or
a Standard and Poor's short-term counter party rating not lower than
A-2.
5. The letter of credit must be irrevocable, it must provide for payment
within the time specified by the Exchange, and it must be able to be
drawn upon unconditionally.
6. The letter of credit must be in the form approved by the Exchange.
7. The expiration date of a letter of credit may not occur during any
relevant futures delivery cycle.
01/01/04
APPENDIX 4G
LETTER OF CREDIT STANDARDS
For Agricultural Products except Corn and Soybeans
CBOT Regulation 1081.01, and amended Regulations 1181.01, 1291.01, and 3704.01
require, as a condition for regularity, that Warehousemen must "file a bond
and/or designated letter of credit with sufficient sureties in such sum and
subject to such conditions as the Exchange may require."
The following is a list of the recommended conditions with respect to a firm
obtaining a letter of credit to meet the financial requirements of regularity:
a. The regular firm is required to secure a letter of credit, naming
the Chicago Board of Trade as its beneficiary, for such sum and
subject to such conditions the Exchange may require.
b. The Exchange will accept letters of credit only from banks with a
Moody's Investors Service counterparty credit rating of A or
above or a Standard and Poor's short-term counterparty rating not
lower than A-2.
c. The letter of credit must be irrevocable, must provide for
payment within the time specified by the Exchange, and must be
able to be drawn upon unconditionally.
d. The letter of credit must be in the form approved by the
Exchange.
e. The expiration date of a letter of credit may not occur during
any relevant futures delivery cycle.
APPENDIX 4H
BOND STANDARDS
For Agricultural Products except Corn and Soybeans
CBOT Regulations 1081.01, 1181.01, 1291.01, and 3704.01 require, as a condition
for regularity, that Warehousemen must "file a bond and/or designated letter of
credit with sufficient sureties in such sum and subject to such conditions as
the Exchange may require."
The following is a list of the required conditions with respect to the bond that
a Warehouseman must obtain to meet the financial requirements of regularity*:
a. The Warehouseman is required to secure a bond naming the Chicago
Board of Trade as its beneficiary for such sum and subject to
such conditions as the Exchange may require.
b. The bond must be in the form approved by the Exchange.
c. The Exchange will accept bonds only from insurance companies
that have been rated by one of the following rating agencies: AM
Best, Standard & Poor's, or Moody's Investors Service. The
following are the minimum credit ratings that are acceptable.
1. AM Best: B++
2. Standard & Poor's: A-
3. Moody's Investor Service: A3
* The Exchange will continue to accept USDA bonds in order for
Warehousemen to meet the bonding requirements for Wheat, Oats and Rice.
If the amount specified in the USDA bond does not meet the Exchange's
requirement, an additional bond must be issued for the amount that is
not covered by the USDA bond. The additional bond must meet the
requirements specified in a. through c.
03/01/04
Appendix 6A
APPENDIX 6A - FEE SCHEDULE: Member Claims
--------------------------------------------------------------------------------
Amount of Claim
--------------------------------------------------------------------------------
$2,500 or less........................................ $150.00
More than $2,500...................................... $250.00
--------------------------------------------------------------------------------
Stenographic Fees*
--------------------------------------------------------------------------------
For attendance at a meeting:
2-1/2 hour minimum.................................... $ 50.00
Per Hour.............................................. $ 20.00
Per Half Hour......................................... $ 10.00
For transcript:
Original per page..................................... $ 2.00/page
Carbon per page....................................... $ .90/page
Original per page (Daily copy)........................ $ 2.60/page
Carbon per page (Daily copy).......................... $ .90/page
------------------------------------------------------------ -------------------
*Only for oral hearings.
Appendix 6B
APPENDIX 6B - FEE SCHEDULE: Customer and Non-Member Claims
--------------------------------------------------------------------------------
Amount of Claim
--------------------------------------------------------------------------------
$2,500 or less........................................ $150.00
More than $2,500...................................... $350.00
--------------------------------------------------------------------------------
Unassociated Arbitrators*
------------------------
$50 per unassociated arbitrator per hearing** for claims heard pursuant
to Regulation 630.12 [$2,500 or less] [minimum charge of $150].
$100 per unassociated arbitrator per hearing date** for claims heard
pursuant to Regulation 630.08 [more than $2,500] [minimum charge of
$300].***
--------------------------------------------------------------------------------
Stenographic Fees*
--------------------------------------------------------------------------------
For attendance at a meeting:
2-1/2 hour minimum.................................... $ 50.00
Per Hour.............................................. $ 20.00
Per Half Hour......................................... $ 10.00
For transcript:
Original per page..................................... $ 2.00/page
Carbon per page....................................... $ .90/page
Original per page (Daily copy)........................ $ 2.60/page
Carbon per page (Daily copy).......................... $ .90/page
--------------------------------------------------------------------------------
* Optional
** Hearings are normally scheduled for 2:15 p.m. and seldom last more than
2-1/2 hours. If a hearing lasts in excess of 2-1/2 hours, requires an
additional hearing date, or is continued on less than 24 hours' notice
to the Administrator, fees will be charged for an additional hearing
date.
*** These direct incremental costs attendant upon the provision of
unassociated arbitrators will be paid by the member in cases involving
customer claims regardless of the outcome of the arbitration unless the
arbitrators decide that the customer has acted in bad faith in
initiating, or participating in, the arbitration proceeding. Such
incremental costs shall be allocated between the parties in the
arbitrators' discretion in cases involving non-member claims.
*APPENDIX 9B-1
LIFFE CORE NETWORK ACCEPTABLE USE POLICY
1. Permitted Purpose
Except as otherwise agreed by LIFFE, those Persons authorized to use the
Core Network in relation to the CBOT Electronic Exchange ("Users") shall
use the Core Network solely for purposes of participating in, accessing or
obtaining information from the CBOT Electronic Exchange via an Interface
with the Equipment.
2. Compliance with Laws
Users shall use the Core Network in accordance with all applicable laws and
regulation is and any additional reasonable requirements as LIFFE may deem
necessary to protect the Core Network. Without limiting the foregoing,
Users shall not use, transmit, distribute or store via the Core Network any
data, information or other material ("Data") which (i) infringes or
otherwise violates any copyright, trademark, trade secret or other
intellectual property of any individual or entity; (ii) is pornographic,
obscene, or exploitative of a minor; (iii) is menacing, malicious,
illegally threatening or defamatory; or (iv) violates export laws or
otherwise violates any applicable treaty, law or regulation.
3. Harmful Activities
Users shall not use the Core Network to transmit, distribute or store any
Data or undertake any other activities that may be harmful to or otherwise
interfere with (i) the Core Network or the use thereof by any other User or
other authorized user of the Core Network, or (ii) any system, network or
equipment of LIFFE or any third party, including: (i) intercepting or
attempting to intercept Data or other transmissions passing over the Core
Network; (ii) forwarding chain letters; (iii) sending multiple e-mails or
large transmissions that could reasonably be expected to annoy or harass or
to impose a disproportionately large load on, or degrade the functionality
of, the Core Network (e.g., "mail bombing"); (iv) sending any e-mail
containing misleading or incorrect headers or information rendering the
origin of the e-mail unclear or deceptive; (v) sending bulk or unsolicited
e-mail messages ("spamming"), either directly or by relaying; or (vi)
transmitting any virus, worm or Trojan Horse.
4. Security
4.1 Users shall not violate or attempt to violate the security of the Core
Network or interfere or attempt to interfere with LIFFE's systems,
networks, authentication measures, servers or equipment or with the use of
or access to the Core Network by any other User or any other authorized
user of the Core Network. Such prohibited activity includes (i) logging
into a server where access is not authorized; (ii) probing, scanning, or
testing the security or vulnerability of the Core Network or other
networks; and (iii) attempting to gain access via the Core Network to any
account or computer resource not belonging to such User ("spoofing").
4.2 Users shall not monitor Data or traffic on the Core Network except via a
Trading Application or Interface.
*Applicable as of trade date November 24, 2003 in connection with implementation
of the LIFFE CONNECT(R) system for trading on e-cbot.
1
APPENDIX 9B-1
5. Enforcement
Except as may be agreed between LIFFE and the CBOT, LIFFE shall have no
obligation to monitor or exercise control over any Data transmitted,
distributed or stored by any User via the Core Network. Notwithstanding the
foregoing, LIFFE reserves the right to monitor and control activities
undertaken via the Core Network.
6. Responsibility
Each User is fully responsible for all uses of the Core Network undertaken
(i) by such User or (ii) via such User's Trading Application or Interface.
(ll/01/03)
2
*APPENDIX 9B-2
e-cbot ERROR TRADE POLICY
The CBOT's error trade policy is designed to preserve the integrity of CBOT
product markets by striking an appropriate balance between trade certainty and
erroneous price discovery. The policy provides a mechanism to promptly address
transactions that are executed at obviously erroneous prices substantially
inconsistent with the last trade price of the contract or alternative
determination of the contract's fair value. This policy does not relieve market
participants from potential financial responsibility or liability for the
execution of trades that are deemed an "error trade" if their actions caused
financial loss to other parties whose transactions were busted.
1. Invoking the Error Trade Policy
If an e-cbot user believes that he executed a trade through e-cbot at a price
that was in error, he must contact e-cbot Market Operations ("e-cbot
Operations") at (312) 347-4600 without delay. If e-cbot Operations is not
notified within five minutes of the execution time of the asserted error trade,
the trade will stand. A third party or e-cbot Operations may also call a trade
into question within five minutes of the execution. Trades called into question
within five minutes will be evaluated in accordance with sections 2 and 3 of
this policy. However, e-cbot Operations has the authority, but not the
obligation, to consider trades reported after the five minute deadline provided
the trade price in question is grossly (i.e. multiple points) out of line with
the last trade price or alternatively determined fair value of the respective
contract.
Trades resulting from quantity errors generally will not be called into
question.
2. Trade Price Within the "No Bust Range"
If a futures transaction is asserted to be at a price that is in error, the
trade shall not be considered for review by e-cbot Operations unless the price
of the asserted error trade is greater than the designated number of ticks (as
outlined in Appendix 9B-3)from the reference price. The reference price will be
the last trade price preceding the entry of the error trade or an alternatively
determined fair value of the contract. Fair value for futures contracts may be
determined by the last trade price, preceding settlement price, spread
relationships and/or other variables deemed relevant by e-cbot Operations.
However, during side-by-side hours the reference price on a downside (upside)
move will never be higher (lower) than the low (high) of the pit traded price
for an equivalent contract during the time period that the prices of the
contracts were disjointed. During non-side-by-side hours, the reference price
will never be higher (lower) than the low (high) of an equivalently traded
contract.
If an option trade is asserted to be at a price that is in error, the trade
shall not be considered for review by e-cbot Operations unless the price of the
asserted error trade conforms to the following guidelines:
1. Trades must be greater than 2 ticks above or below the theoretical price in
order to be busted.
2. Trades greater than 2 ticks away from the theoretical price, but less than
20 ticks away from the theoretical price, must be greater than 20% above
or below the theoretical price, in order to be eligible to be busted.
3. Trades greater than 20 ticks above or below the theoretical price (40 ticks
for the Soybean complex and Dow complex), may be busted even if the tick
disparity is less than 20% of the theoretical value.
If an asserted trade entry error results in trade executions at multiple price
levels, the last trade price (if used to determine the reference price) shall
be the last trade price prior to the entry of the alleged error trade.
*Applicable as of trade date November 24, 2003 in connection with implementation
of the LIFFE CONNECT(R) system for trading on e-cbot
1
APPENDIX 9B-2
If the asserted error trade is the first trade in a contract that has not
previously been opened, e-cbot Operations will determine a fair value estimate
for the contract, which then will be gauged against the error trade range to
determine the final status of the trade.
If e-cbot Operations contacts a member user regarding a suspicious order and the
user states that the order is entered correctly, the order (if subsequently
executed) may only be called into question by a third party.
Trades that are executed outside of the daily price limits will be busted by
e-cbot Operations irrespective of whether the trade(s) falls within the "no bust
range" established above.
3. Trade Price Outside of the "No Bust Range"
If the price of the asserted error trade is more than the specified number of
ticks from the reference price, e-cbot Operations will send a broadcast message
to the user community indicating that the trade has been called into question.
If the asserted error trade is outside of the specified tick range and involves
only two parties, e-cbot Operations will attempt to contact the parties to the
transaction. If both parties agree to bust or re-price the transaction, e-cbot
Operations shall send a broadcast message to the user community and an alert to
the quote vendor network indicating that the trade was busted or re-priced.
If there is more than one contra-party to the order asserted to have been
executed in error, e-cbot Operations will gauge the erroneous transactions
against the error trade range to determine the final status of the trades.
4. e-cbot Operations Authority to Halt Markets
e-cbot Operations shall have the authority to halt markets in any contract
during extraordinary circumstances where there has been a major market movement
without any apparent economic or fundamental basis for movement to have
occurred.
5. Decisions of e-cbot Operations
A. e-cbot Operations will review the circumstances surrounding the alleged
error trade to determine whether it should be deemed an error trade and
busted. However, subject to the mutual agreement of both parties, the trade
may be re-priced in line with the contract's fair value. If the trade is
repriced to a level that is below a sell limit price or above a buy limit
price, and the customer rejects the trade, the trade must be placed in the
error account of the customer's clearing firm. Parties to these
transactions are permitted to make cash adjustments to settle losses that
occur as a result of the error trade. Should parties to a disputed
transaction be unable to mutually resolve financial disputes arising from
such transactions, arbitration facilities are available through the
Exchange. The Arbitration Committee may hold the party who entered the
order that resulted in the error trade financially responsible for losses
that occur as a result of the busted trade(s).
Trade certainty and the timely resolution of error trades are critical
objectives of this policy. Therefore, if parties to a disputed transaction
do not agree to the terms of resolution, e-cbot Operations reserves the
final authority to determine the disposition of the questioned
transaction.
During side-by-side trading hours, e-cbot Operations shall, unless
impracticable, make its determination within 10 minutes of the broadcast
message regarding the potential error trade. During non side-by-side
trading hours, e-cbot Operations shall, unless impracticable, make its
determination within 15 minutes of the broadcast message regarding the
potential error trade. The decisions of e-cbot Operations shall be final,
and e-cbot Operations shall send a broadcast
2
APPENDIX 9B-2
message and an alert to the quote vendor network indicating whether the
trade was busted, re-priced or allowed to stand.
B. In making its determination, e-cbot Operations may consider relevant
factors including, but not limited to: market conditions immediately before
and after the transaction; the prices of related contracts; whether one or
more parties to the trade believe the trade was executed at a valid price:
the extent to which the transaction appeared to trigger contingency orders
and other trades; information related to the e-cbot Operations by third
parties.
6. Procedures for Correcting Error Trades
In the event a trade is busted, the parties to the transaction must reverse the
transaction through applicable clearing house procedures. e-cbot Operations will
notify OIA regarding any situation where a party fails to claim or misclear
trades in a timely manner. Such failure may be deemed a violation of Rule
504.00, Acts Detrimental to the Welfare of the Association.
Under no circumstances shall the parties to an alleged error trade be permitted
to reverse the error by entering into a prearranged transaction.
If the trade called into question is determined not to be an error trade, the
parties to the trade are permitted to mutually agree upon cash adjustment: any
such adjustment must be reported to e-cbot Operations.
Spreads
Because of the autoleg feature of the e-cbot system, spreads may be executed
such that one leg of the spread is determined to be an error trade and the other
leg is deemed to have been executed at a good price. In such circumstances, the
party who enters an outright order that causes an error trade on an autolegged
spread will be deemed to be the counterparty to the good leg of the spread (see
Appendix 9B-4). The parties to the transactions will reverse and claim the
transactions as indicated through the applicable clearing house procedures.
7. Arbitration Procedures
Arbitrations relating to asserted error trades are limited to trades that are
determined by e-cbot Operations to be an error trade. A notice of intention to
arbitrate must be filed within ten business days after the date of the error
trade. The party that caused the error may be held responsible for realized
losses incurred by parties whose trades were busted as a result of the error.
8. Error Trade Fees
The party responsible for the error must pay a $1,000 fee for each of the first
two error trades, $3,000 for the 3/rd/ error trade, and $5,000 for each
subsequent error trade within a calendar year.
(11/01/03)
3
APPENDIX 9B-3
TICK BREAKDOWN PER CBOT PRODUCT
[Enlarge/Download Table]
Tick
Increment of Dynamic Daily
Minimum Tick "No Bust "No Bust Price Price
Product Symbol Increment Range"* Range" Limits Limit
------- ------ --------- ------- ------ ------ -----
U.S. T-Bond ZB 1/32 96 Ticks 3 points 30/32nds N/A
U.S. T-Bond Options OZB 1/64 20 Ticks 20/64ths 20/64ths N/A
mini-sized U.S. T-Bond YH 1/32 96 Ticks 3 points 30/32nds N/A
10 Yr. T-Note ZN (1/2)/32 192 Ticks 3 points 15/32nds N/A
10 Yr. T-Note Options OZN 1/64 20 Ticks 20/64ths 20/64ths N/A
5 Yr. T-Note ZF (1/2)/32 192 Ticks 3 points 15/32nds N/A
5 Yr. T-Note Options OZF 1/64 20 Ticks 20/64ths 20/64ths N/A
2 Yr. T-Note ZT (1/4)/32 384 Ticks 3 points 7.5/32nds N/A
2 Yr. T-Note Options OZT (1/2)/64 20 Ticks 10/64ths 10/64ths N/A
Muni-Note Index ZU 1/32 20 Ticks 20/32nds 20/32nds N/A
30-Day Fed Funds ZQ 1/2 Basis Point 20 Ticks 10 Points 10 points N/A
30-Day Fed Funds Options OZQ 1/4 Basis Point 20 Ticks 5 Points 5 points N/A
10 Yr. Interest Rate Swaps SR 1/32 20 Ticks 20/32nds 20/32nds N/A
10 Yr. Interest Rate Swaps Options OSR 1/64 20 Ticks 20/64ths 20/64ths N/A
5 Yr. Interest Rate Swaps SA (1/2)/32 20 Ticks 10/32nds 10/32nds N/A
5 Yr. Interest Rate Swaps Options OSA 1/64 20 Ticks 20/64ths 20/64ths N/A
Bund GBL .01 of 1 Point 20 Ticks .20 of 1 Point .20 points N/A
Bobl GBM .01 of 1 Point 20 Ticks .20 of 1 Point .20 points N/A
Schatz GBS .01 of 1 Point 20 Ticks .20 of 1 Point .20 points N/A
Dow AIG Commodity Index AI 0.1 Points 40 Ticks 4 Points 4 points N/A
DJIA ($10) ZD 1 Point 250 Points 250 Points 40 points 10%, 20%
and 30%
Circuit
Breakers
DJIA Options OZD 1/2 Point 40 ticks 20 Points 20 points 10%, 20%
and 30%
Circuit
Breakers
mini-sized Dow ($5) YM 1 Point 250 Points 250 Points 40 points 10%, 20%
and 30%
Circuit
Breakers
mini-sized Dow Options OYM 1 Point 40 ticks 40 Points 40 points 10%, 20%
and 30%
Circuit
Breakers
1
APPENDIX 9B-3
[Enlarge/Download Table]
Tick
Increment of Daily
Minimum Tick "No Bust "No Bust Dynamic Price
Product Symbol Increment Range"* Range" Price Limits Limit
------- ------ --------- ------- ------ ------------ -----
mini-sized Eurodollar YE 1/2 Basis Point 10 ticks 5 points 5 points N/A
100 0Z. Gold ZG 10 cent 40 ticks $4.00 $4.00 N/A
mini-sized Gold YG 10 cents 40 ticks $4.00 $4.00 N/A
5,000 OZ. Silver ZI 1/10 cent 80 ticks $4.00 $4.00 N/A
mini-sized Silver YI 1/10 cent 80 ticks 8 cents 8 cents N/A
Corn ZC 1/4 cent 40 ticks 10 cents 10 cents 20 cents
Corn Options OZC 1/8 cent 20 ticks 21/2 cents 21/2 cents 20 cents
Wheat ZW 1/4 cent 40 ticks 10 cents 10 cents 30 cents
Wheat Options OZW 1/8 cent 20 ticks 21/2 cents 21/2 cents 30 cents
Oat ZO 1/4 cent 40 ticks 10 cents 10 cents 20 cents
Oat Options OZO 1/8 cent 20 ticks 21/2 cents 21/2 cents 20 cents
Rough Rice ZR 1/2 cent 40 ticks 20 cents 20 cents 50 cents
Rough Rice Options OZR 1/4 cent 20 ticks 5 cents 5 cents 50 cents
Soybeans ZS 1/4 cent 80 ticks 20 cents 20 cents 50 cents
Soybean Options OZS 1/8 cent 40 ticks 5 cents 5 cents 50 cents
Soybean Meal ZM 10 cents 80 ticks $8.00 $8.00 $20
Soybean Meal Options OZM 5 cents 40 ticks $2.00 $2.00 $20
Soybean Oil ZL 1/100 cents 80 ticks .80 cents .80 cents 2 cents
Soybean Oil Options OZL 5/1000 cents 40 ticks .20 cents .20 cents 2 cents
*Option products are shown in this chart to indicate the greatest number of
ticks defined as the "No Bust Range". (See Section 2, "Options")
(01/01/05)
2
*APPENDIX 9B-4
EXAMPLE OF AUTOLEG ERROR
Trader "A" has a spread order in the book to buy June Bonds and sell September
Bonds. (Please note that when you enter a spread order into the system, it
assigns prices to the individual legs and the order is included in the outright
order books.) Trader "B" has an order to sell June Bonds.
Trader "C" makes an error by entering a bid in the September contract (he
intended to bid June). Trader C's bid for September matches against Trader A's
sell September portion of the spread, which triggers Trader A's buy June portion
of the spread to match against Trader B's sell June order.
The September trade between Trader C and Trader A is determined to be an error
trade. The June trade between A and B is executed at an economically justifiable
price.
The September leg is determined to be an error trade and is busted. Trader C is
then required to claim the June leg executed for Trader A.
Summary
-----------------------------
June Bonds Sep Bonds
-----------------------------
Buy Sell Buy Sell
-----------------------------
A B C A
-----------------------------
Trader C is cause of error
Trader A vs. B = good price
Trader A vs. C = bad price
Trader A vs. C leg is determined to be an error trade and is busted
Trader A vs. B leg is reversed and Trader C is required to claim the trade so
that Trader B is not harmed.
(11/01/03)
*Applicable as of trade date November 24, 2003 in connection with implementation
of the LIFFE CONNECT(R) system for trading on e-cbot.
Appendix 10A
APPENDIX 10A - ELEVATORS IN THE CHICAGO AND BURNS HARBOR SWITCHING DISTRICTS
(WHEAT & OATS)
Following is a listing of the elevators in the Chicago and Burns Harbor
Switching Districts approved as regular for the delivery of Wheat and Oats
through June 30, 2006:
[Download Table]
--------------------------------------------------------------------------------
CAPACITY IN
WAREHOUSE LOCATION BUSHELS
--------------------------------------------------------------------------------
Cargill, Inc. Cargill Burns Harbor 5,473,000
Portage, IN
Chicago & Illinois Chicago 9,156,000
River Marketing LLC
--------------------------------------------------------------------------------
Note: All elevators are Federally licensed.
07/01/04
Appendix 10B
APPENDIX 10B - ELEVATORS IN THE ST. LOUIS AND EAST ST. LOUIS SWITCHING DISTRICTS
(WHEAT)
Following is a listing of the elevators in the St. Louis, East St. Louis and
Alton Switching districts approved as regular for the delivery of Wheat through
June 30, 2006:
[Enlarge/Download Table]
-----------------------------------------------------------------------------------------------------------
CAPACITY IN
WAREHOUSE LOCATION BUSHELS
-----------------------------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. St. Louis Elevator 2,154,000
St. Louis, MO
Cargill Inc. Elevator 2,481,000
East St. Louis, IL
-----------------------------------------------------------------------------------------------------------
Note: All Elevators listed are Federally licensed.
07/01/04
Appendix 10C
APPENDIX 10C - ELEVATORS IN THE MINNEAPOLIS AND ST. PAUL SWITCHING DISTRICTS
(OATS)
Following is a listing of the elevators in the Minneapolis and St. Paul, MN
Switching Districts which are approved as regular for the delivery of Oats
through June 30, 2006:
[Enlarge/Download Table]
------------------------------------------------------------------------------------------------
CAPACITY IN
WAREHOUSE LOCATION BUSHELS
------------------------------------------------------------------------------------------------
Bunge North Midway Elevator 2,642,000
America, Inc. Minneapolis, MN
Port Bunge Elevator 9,276,000
Savage, MN
Cargill, Inc. Port Cargill 13,675,000
Elevator "C"
Savage, MN
CHS Inc. Elevator #2 1,400,000
St. Paul, MN
Calumet Elevator 1,323,000
ConAgra, Inc. Minneapolis, MN
Electric Steel Elevator
Minneapolis, MN 4,579,000
Malt-One Elevator 2,348,000
Minneapolis, MN
Marquette Elevator 3,830,000
Minneapolis, MN
Shakopee Elevator 1,122,000
Shakopee, MN
Delmar #4/Washburn C
General Mills Operations, Inc. Minneapolis, MN 9,636,000
Washburn Elevator 2,400,000
Checkerboard Elevator B
Minneapolis, MN
Washburn D-Elevator T 4,047,000
Minneapolis, MN
Fridley Elevator 4,955,000
Fridley, MN
Washburn E. S00 Elevator 3,553,000
Washburn, MN
------------------------------------------------------------------------------------------------
NOTE: ALL ELEVATORS ARE FEDERALLY LICENSED.
08/01/04
APPENDIX 10D
APPENDIX 10D - ELEVATORS IN THE TOLEDO, OHIO SWITCHING DISTRICT (WHEAT)
Following is a listing of the elevators in the Toledo, Ohio Switching District
which are approved as regular for the delivery of Wheat through June 30, 2006:
[Enlarge/Download Table]
-----------------------------------------------------------------------------------------------------
CAPACITY IN
WAREHOUSE LOCATION BUSHELS
-----------------------------------------------------------------------------------------------------
The Andersons Agricultural Group Andersons-Illinois Elevator 17,230,000
L.P. Maumee, Ohio
River Elevator 6,150,000
Toledo, Ohio
Conant Street Elevator 3,280,000
Maumee, Ohio
Edwin Drive Elevator 5,500,000
Toledo, Ohio
Archer-Daniels-Midland Co. Toledo Elevator 9,795,000
d/b/a ADM Grain Company Toledo, Ohio
Ottawa Lake Elevator 7,680,000
Ottawa Lake, MI
-----------------------------------------------------------------------------------------------------
NOTE: ALL ELEVATORS ARE FEDERALLY LICENSED.
07/01/04
Appendix 10F
APPENDIX 10F - RECIPROCAL AND INTERMEDIATE SWITCHING CHARGES
REFERENCE GUIDE ONLY - EFFECTIVE MAY 1, 1997
THE FOLLOWING RECIPROCAL AND INTERMEDIATE SWITCHING CHARGES APPLY AT ELEVATORS
REGULAR FOR DELIVERY WITHIN THE CHICAGO, IL AND BURNS HARBOR, IN SWITCHING
DISTRICTS. RATES ARE IN DOLLARS PER CAR UNLESS OTHERWISE INDICATED.
[Enlarge/Download Table]
RESULT AND/OR INTERMEDIATE
ELEVATOR: RECIPROCAL CARRIER: CARRIER AND END RESULT:
--------- ------------------- -----------------------
CARGILL CR OR IHB LINE HAUL DIRECT CONNECTION WITH ALL
OTHER CARRIERS.
BURNS HARBOR, IN RATE OTHER CARRIERS.
--------------------------------------------------------------------------------------------------------------------
CHICAGO & ILLINOIS RIVER IHB - $242.00 PER CAR
MARKETING, L.L.C.
117/TH/ & $166.00 PER CAR (25-CAR)
TORRENCE $ 95.00 PER CAR (50-CAR)
CHICAGO, IL (PRIVATE CARS, CR, NS)
DIRECT CONECTION WITH ALL OTHER CARRIERS
IHB $261.00 PER CAR
$184.00 PER CAR (25-CAR)
$110.00 PER CAR (50-CAR)
(ALL OTHER CARRIERS)
CRL - $187.00 PER CAR
--------------------------------------------------------------------------------------------------------------------
THIS APPENDIX IS ONLY A REFERENCE GUIDE AND SHOULD NOT BE CONSTRUED AS A TRADING
RECOMMENDATION OF THE CHICAGO BOARD OF TRADE. DUE TO THE RAPID CHANGES IN
FREIGHT TARIFFS, WE DO NOT GUARANTEE THIS APPENDIX AS TO ACCURACY OR
COMPLETENESS. FOR CURRENT INFORMATION ON SWITCHING CHARGES CONTACT THE
RESPECTIVE RAIL CARRIER DIRECTLY.
01/01/00
Appendix 10G
APPENDIX 10G - GRAIN LOAD-OUT PROCEDURES
The following is a general outline of procedures for the load-out of grain
covered by Chicago Board of Trade ("CBOT") registered warehouse
receipts/shipping certificates. The procedures are based upon a combination of
CBOT Rules and Regulations and trade practice. Where applicable, CBOT Rules and
Regulations are cited.
1. Cancellation of the Warehouse Receipt/Shipping Certificate
a. To initiate the load-out process, the receipt/certificate holder,
or owner, requests his clearing firm to cancel the warehouse
receipt/shipping certificate at the CBOT Registrar's Office or
requests load-out using the electronic form provided by the
Cleaning House's Online System.
b. Warehouse receipts/shipping certificates cancelled after 4:00
p.m. shall be deemed to be cancelled on the following business
day.
c. The next step for the owner of cancelled rice, oats or wheat
warehouse receipts is to surrender them to the regular
warehouseman or his representative agent in Chicago. The agent
must be a registered clearing member of the CBOT, be located in
the vicinity of the CBOT and be available during business hours
(except Exchange holidays). Business hours are 8:00 a.m. - 4:30
p.m., Monday - Thursday and 8:00 a.m. - 3:00 p.m. on Friday.
d. At this time, the warehouseman/shipper, at his option, may
require the owner to pay storage/premium and insurance charges
that have accumulated up to and including the date of surrender.
(See items 6(a) and (b) below.) The warehouseman's/shipper's
agent shall accept these payments during business hours.
e. At this time, the warehouseman, at his option, may also require
the owner to pay the warehouseman or his agent a load-out fee of
up to 6 cents per bushel. A fobbing charge of 4 cents per bushel
was already paid at the time of delivery of corn and soybean
shipping certificates. (The maximum load-out/fobbing fee, subject
to change, is 6 cents per bushel for receipts and 4 cents per
bushel for certificates.)
f. If the owner decides against loading out grain within two days
after canceling warehouse receipts/shipping certificates, he may
notify the warehouseman/shipper that warehouse receipts/shipping
certificates are to be re-issued. In the case of rice, oats or
wheat, if the warehouseman is notified by 12:00 noon, re-issued
receipts shall be deliverable by 4:00 p.m. the following business
day. Requests to re-issue receipts/shipping certificates more
than two business days after receipts/shipping certificates are
cancelled are subject to mutual agreement. All fees for
re-issuance are payable by the owner.
g. The Registrar bills the owner's clearing firm a cancellation fee
per receipt/certificate. (Internal policy of CBOT's Registrar's
Office.)
2. Submission of Written Loading Orders.
a. The owner provides the warehouseman/shipper with written loading
orders that identify the vessel, barge, or number of rail cars
that will take delivery of the grain, and that specify the grade
and estimated number of bushels to be loaded. "To be nominated"
(TBN) barge identities are acceptable in loading orders.
b. Written loading orders must be received no later than two
business days after warehouse receipts/shipping certificates are
cancelled.
c. The owner will notify the warehouseman/shipper of loading orders.
All loading order received by 2:00 p.m. on a given business days
shall be considered dated that day. Orders received after 2:00
p.m. on a business day shall be considered dated the following
business day.
d. When loading orders are received by 2:00 p.m. of any given
business day, the warehoueman/shipper will advise the owner by
10:00 a.m. the following business day of the scheduled loading
dates and tonnage due. Notification of scheduled loading dates
and any changes in scheduled loading dates will be by telephone,
e-mail or telefax to the owner.
3. Arrangement of Transportation Conveyance.
a. Next, the owner arranges for proper conveyance of the grain to be
loaded out with a carrier; the conveyance may be rail cars,
barge, or vessel, and must be clean and ready-to-load.
b. An owner requesting vessel load-out, having surrendered canceled
receipts/certificates and tendered written loading orders to the
warehouseman/shipper, is entitled to the warehouse's/shipper's
current scheduled load-in and load-out lineups, provided the
owner gives to the warehouseman/shipper the identity of the
vessel and the estimated-time-of-arrival no more than 5 calendar
days prior to constructive placement of the vessel.
Appendix 10G
In addition, an owner is entitled to receive updated information,
upon request, on the warehouse/shipping station scheduled
load-in and load-out lineups.
d. The carrier or its agent notifies the warehouseman/shipper of the
"constructive placement" of the conveyance. The term
"constructive placement" is defined in CBOT Regulations
1081.01(12)A3 (1), (2) and (3). Only the warehouseman/shipper can
order the conveyance to the warehouse/shipping station for actual
placement for loading.
e. The warehouseman/shipper is not responsible for the failure of
the carrier to present clean, ready-to-load conveyance to the
warehouseman/shipper.
4. Request for Grain Inspection or Stevedoring Service.
a. The owner may, at his option and expense, request the
warehouseman/shipper to arrange inspection and weighing service
provided by the Federal Grain Inspection Service ("FGIS").
b. In case of water load-out (barge or vessel), the owner should
request the warehouseman/shipper to arrange stevedoring service.
In this regard, the owner may designate to the
warehouseman/shipper the stevedoring service he would like to
use.
c. The warehouseman/shipper does not control the availability of the
FGIS and the stevedoring services.
5. Actual Load-Out.
a. The warehouseman/shipper shall transmit to the Registrar by 11:00
a.m. the name, location of warehouse/shipping facility, and
number of delivery vessels/barges/rail cars constructively placed
that day. The Registrar shall maintain a current record of the
number of delivery vessels/barges/rail cars constructively placed
and shall be responsible for posting this record on the Exchange
Floor and the CBOT website.
b. The warehouseman/shipper must load-out all conveyances in the
order of their constructive placement. Load-out of transportation
constructively placed on the same day shall be in the order in
which loading orders were received. An operator of a regular
facility in Chicago, Burns Harbor, along the Illinois Waterway,
and St. Louis has the obligation of loading grain represented by
warehouse receipts or shipping certificates giving preference to
takers of delivery.
c. The warehouseman/shipper informs the owner of the time of loading
completion and the release time of the conveyance to the carrier.
d. The warehouseman/shipper must advise the owner of any load-out
difficulties. Inclement weather may delay loading.
e. The owner should be familiar with the tariff of the
warehouse/shipping station where the load-out is to occur.
f. Any expense for making the grain available for loading on the
Illinois Waterway will be borne by the party making delivery,
provided that the taker of delivery constructively places barge
equipment clean and ready to load within five (5) business days
following the scheduled loading date of the barge on the Illinois
Waterway. If the taker's barges are not constructively placed
within five (business) days following the scheduled loading date
of the barge on the Illinois Waterway, the taker shall pay the
shipper an amount not to exceed 30/100 of one cent per bushel per
day multiplied by the number of calendar days from the fifth
business day following the schedule loading date to the date that
the barge is constructively placed, including both dates, but
excluding business days the shipper meets his minimum daily barge
load-out rate. Requests to cancel loading instructions and
re-issue recepits/shipping certificates more than two business
days after recepits/shipping certificates are cancelled are
subject to mutual agreement. All fees for re-issuance are payable
by the owner.
6. Final Settlement of All Charges By Invoice
a. The owner pays the warehouseman/shipper storage/premium charges
that have accumulated up to and including the 10th business day
after constructive placement of the conveyance or the date of
loading completion, whichever is earlier, for wheat and oats, or
up to and including the date of loading for corn and soybeans. If
the owner paid storage/premium charges when he surrendered the
cancelled warehouse receipt/shipping certificate he now pays
storage/premium charges that have accumulated since that time as
invoiced.
b. The owner pays the warehouseman/shipper for the FGIS service and
the stevedoring company for stevedoring service as invoiced. The
owner is responsible for charges incurred for stevedoring
service, except, all fees for stevedoring services to load corn
and soybeans into barges are to be paid by the issuer of the corn
or soybean shipping certificate.
c. With some exceptions for Burns Harbor delivery, the owner pays
all transportation costs, including switching charges and
demurrage, if any, to the appropriate transportation company.
Appendix 10G
*/ The outline provided above is intended to serve only as a general guide to
grain load-out procedures; certain of the discussed obligations of the
warehouseman/shipper and owners may not apply in a particular situation or
may be open to negotiation between the parties. Care has been taken in the
preparation of this outline, but there is no warranty or representation
expressed or implied by the Chicago Board of Trade or its member firms as
to the accuracy or completeness of the material herein. In particular, CBOT
rules and regulations may be revised from time to time. Accordingly,
current rules and regulations, if applicable, should be consulted when
there is a question about load-out. Please be advised that the U.S.
Warehouse Act, as amended, or a state law may also apply to, or govern, a
particular situation. If you have legal questions concerning load-out, we
recommend that you consult your legal counsel. 06/01/03
Appendix 10C A
APPENDIX 10C A - CORN AND SOYBEAN SHIPPING STATIONS
Following is a listing of the shipping stations approved as regular for the
delivery of Corn and Soybeans for the period through June 30, 2006:
[Enlarge/Download Table]
-------------------------------------------------------------------------------------------------------------------
CCL Code Firm Location Mile Approved Daily Loading Max. Certs Location
Marker Capacity Rate (bu/day) Differential
(bu) (cents/bu)
1750 Cargill, Inc. Burns 340 5,473,000 165,000 1,094 par
Harbor, IN
1705 Chicago & Illinois Chicago, IL 329.4R 9,156,000 165,000 1,831 par
River Marketing, LLC
1715 Louis Dreyfus Lockport, IL 292.8R 204,000 55,000 220 2
1758 Cargill, Inc. Morris, IL 263.3R 125,000 55,000 220 2
1752 Louis Dreyfus Morris, IL 263.0R 304,000 55,000 220 2
1730 ADM/Growmark River Morris-E, IL 263.0R 992,000 55,000 220 2
Systems, Inc.
1731 ADM/Growmark River Morris-W, IL 262.9R 230,000 110,000 440 2
Systems, Inc.
1759 Cargill, Inc. Seneca, IL 252.5R 846,000 55,000 220 2
1732 ADM/Growmark River Ottawa-N, IL 241.8R 988,000 55,000 220 2 1/2
Systems, Inc.
1753 Cargill, Inc. Ottawa, IL 238.5L 880,000 55,000 220 2 1/2
1733 ADM/Growmark River Ottawa-S, IL 236.9L 107,000 55,000 220 2 1/2
Systems, Inc.
1765 Maplehurst Farms, Ottawa, IL 236.4R THROUGH PUT 55,000 220 2 1/2
Inc.
1701 Consolidated Grain Utica, IL 229L 1,300,000 55,000 220 2 1/2
and Barge Co.
1714 Louis Dreyfus Utica, IL 229L THROUGH PUT 55,000 220 2 1/2
1734 ADM/Growmark River La Salle, IL 223.3R 84,000 55,000 220 2 1/2
Systems, Inc.
1702 Consolidated Grain Peru, IL 222.9R 0 55,000 220 2 1/2
and Barge Co.
1713 Louis Dreyfus Peru, IL 222.9R THROUGH PUT 55,000 220 2 1/2
1735 ADM/Growmark River Spring 218.4R 109,000 55,000 220 2 1/2
Systems, Inc. Valley, IL
1754 Cargill, Inc. Spring 218.3L 1,433,000 110,000 440 2 1/2
Valley, IL
1736 ADM/Growmark River Hennepin, IL 207.7L 500,000 55,000 220 2 1/2
Systems, Inc.
1760 Cargill, Inc. Hennepin, IL 207.5L 110,000 55,000 220 2 1/2
1703 Consolidated Grain Hennepin, IL 207.4R 416,000 55,000 220 2 1/2
and Barge Co.
1712 Louis Dreyfus Hennepin, IL 207.4R THROUGH PUT 55,000 220 2 1/2
1737 ADM/Growmark River Henry, IL 195.8R 552,000 55,000 220 2 1/2
Systems, Inc.
1738 ADM/Growmark River Lacon, IL 189.5L 199,000 55,000 220 2 1/2
Systems, Inc.
1761 Cargill, Inc. Lacon, IL 189.3L 487,000 55,000 220 2 1/2
1739 ADM/Growmark River Chillicothe, 180.5R 172,000 55,000 220 2 1/2
Systems, Inc. IL
1740 ADM/Growmark River Creve Coeur, 158.1L 1,401,000 55,000 220 3
Systems, Inc. IL
1720 Tomen Grain Company Pekin, IL 152.2L 156,000 110,000 440 3
-------------------------------------------------------------------------------------------------------------------
Appendix 10C A
(07/01/04)
Page 1 of 1
Appendix 10S A
APPENDIX 10S A - SOYBEAN ONLY SHIPPING STATIONS
See Appendix 10C A - CORN AND SOYBEAN SHIPPING STATIONS for shipping stations
approved as regular for the delivery of Soybeans above Illinois River Mile
Marker 151.
Following is a listing of additional shipping stations approved as regular for
the delivery of Soybeans only for the period through June 30, 2006:
[Enlarge/Download Table]
---------------------------------------------------------------------------------------------------------------------------
CCL Firm Location Mile Approved Daily Max. Location
Code Marker Capacity Loading Certs Differential
(bu) Rate (cents/bu)
(bu/day)
1755 Cargill, Inc. Havana-N, IL 119.9L 575,000 55,000 220 3 1/2
1762 Cargill, Inc. Havana-S, IL 119.8L 738,000 55,000 220 3 1/2
1742 ADM/Growmark River Havana-N, IL 119.6L 2,800,000 55,000 220 3 1/2
Systems, Inc.
1743 ADM/Growmark River Havana-S, IL 119.3L 178,000 55,000 220 3 1/2
Systems, Inc.
1763 Cargill, Inc. Beardstown, IL 88.1L 439,000 55,000 220 3 1/2
1744 ADM/Growmark River Beardstown, IL 91.0R 2,757,000 55,000 220 3 1/2
Systems, Inc.
1756 Cargill, Inc. Merdedosia, IL 71.3L 962,000 110,000 440 3 1/2
1745 ADM/Growmark River Naples, IL 66.1L 310,000 55,000 220 3 1/2
Systems, Inc.
1706 Zen-Noh Grain Corp. Naples, IL 65L THROUGH 55,000 220 3 1/2
PUT
1704 Consolidated Grain Naples, IL 65L 6,247,000 55,000 220 3 1/2
and Barge Co.
1757 Cargill, Inc. Florence, IL 55.3R 1,855,000 165,000 660 3 1/2
1747 ADM/Growmark River St. Louis, MO UM 184R 2,154,000 220,000 880 6
Systems, Inc.
1764 Cargill, Inc. E. St. Louis, IL UM 179L 2,481,000 110,000 440 6
1710 Peavey Co., a Sauget, IL UM 177L 288,000 110,000 440 6
ConAgra Trade
Group company
---------------------------------------------------------------------------------------------------------------------------
(07/01/04)
Appendix 11A
APPENDIX 11A - CRUDE SOYBEAN OIL
Following is a listing of the firms approved for the delivery of Crude Soybean
Oil through June 30, 2006:
[Enlarge/Download Table]
--------------------------------------------------------------------------------------------
MAXIMUM
FIRM/FACILITIES REGULAR SPACE RECEIPTS
(POUNDS) ALLOWED TO ISSUE
--------------------------------------------------------------------------------------------
AG PROCESSING, INCORPORATED
Dawson, MN 26,324,000 438
Eagle Grove, IA 20,000,000 333
Emmetsburg, IA 88,000,000 1,466
Manning, IA 9,000,000 150
Mason City, IA 36,000,000 600
Omaha, NE 40,000,000 666
Sergeant Bluff, IA 31,500,000 525
Sheldon, IA 19,200,000 320
St. Joseph, MO 24,000,000 400
ANDERSONS AGRICULTURE GROUP L.P., THE
Logansport, IN 82,000,000 1,366
ARCHER DANIELS MIDLAND CO.
Decatur, IL 118,500,000 1,975
Des Moines, IA 36,000,000 600
Frankfort, IN 39,000,000 650
Galesburg, IL 11,400,000 190
Lincoln, NE 27,000,000 450
Mexico, MO 43,000,000 716
Quincy, IL 54,500,000 900
BUNGE MILLING, INC.
Danville, IL 91,500,000 1,525
BUNGE NORTH AMERICA (EAST). INC.
Decatur, IN 118,950,000 1,982
BUNGE NORTH AMERICA (ODP WEST), INC.
Emporia, KS 36,600,000 610
BUNGE NORTH AMERICA, INC.
Logansport, IN 62,000,000 1,033
CARGILL, INC.
Ackley, IA 240,000,000 4,000
Bloomington, IL 3,900,000 65
Buffalo, IA 36,800,000 613
Cedar Rapids, IA 1,920,000 32
Cedar Rapids, (E), IA 9,300,000 155
Des Moines, IA 7,700,000 128
Iowa Falls, IA 20,000,000 333
Kansas City, MO 7,000,000 116
Lafayette, IN 9,000,000 150
CHS Inc.
Mankato, MN 6,000,000 100
INCOBRASA INDUSTRIES, LTD.
Gilman, IL 117,300,000 1,955
SOLAE LLC
Gibson City, IL 50,325,000 838
SOUTH DAKOTA SOYBEAN PROCESSORS, INC.
Volga, SD 200,700,000 3,345
--------------------------------------------------------------------------------------------
Appendix 11A
11/01/04
Page 2 of 1
Appendix 11B
SOYBEAN OIL DELIVERY DIFFERENTIALS IN CENTS PER 100 LBS.
For Delivery Months January thru December 2005
[Download Table]
DELIVERY TERRITORY - DIFFERENTAILS*
Warehouse Location
ILLINOIS TERRITORY - PAR
Bloomington, IL
Danville, IL
Decatur, IL
Galesburg, IL
Gibson City, IL
Gilman, IL
Quincy, IL
EASTERN TERRITORY - (20)
Decatur, IN
Frankfort, IN
Lafayette, IN
Logansport, IN
EASTERN IOWA TERRITORY - PAR
Ackley, IA
Buffalo, IA
Cedar Rapids, IA
Cedar Rapids (E), IA
Des Moines, IA
Iowa Falls, IA
Mason City, IA
SOUTHWEST TERRITORY - 45
Kansas City, MO
Mexico, MO
St. Joseph, MO
Emporia, KS
NORTHERN TERRITORY - (45)
Dawson, MN
Mankato, MN
Volga, SD
WESTERN TERRITORY - (25)
Eagle Grove, IA
Emmetsburg, IA
Manning, IA
Sergeant Bluff, IA
Sheldon, IA
Lincoln, NE
Omaha, NE
( ) - Differentials enclosed by parentheses ( ) are discounts.
01/01/05
Appendix 12A
APPENDIX 12A - SOYBEAN MEAL
Following is a listing of the firms approved for the delivery of Soybean Meal
through June 30, 2006:
[Enlarge/Download Table]
-----------------------------------------------------------------------------------------
DAILY RATE MAXIMUM
FIRM/FACILITY OF LOADING CERTIFICATES
(TONS) BONDED TO ISSUE
-----------------------------------------------------------------------------------------
Ag Processing Incorporated
Eagle Grove, IA 1,600 265
Manning, IA 600 115
Mason City, IA 700 114
Emmetsburg, IA 700 117
Sergeant Bluff, IA 1,000 172
Sheldon, IA 840 155
St. Joseph, MO 620 99
Archer-Daniels-Midland Co.
Decatur, IL 2,000 325
Des Moines, IA 1,500 253
Fostoria, OH 600 103
Frankfurt, IN 800 124
Galesburg, IL 400 70
Little Rock, AR 400 75
Mexico, MO 500 90
Quincy, IL 2,000 349
Bunge Milling Inc.
Danville, IL 1,700 1,055
Bunge North America (East), Inc.
Bellevue, OH 800 220
Decatur, IN 2,000 900
Morristown, IN 1,000 210
Bunge North America (ODP West), Inc.
Council Bluffs, IA 2,500 545
Bunge North America, Inc.
Cairo, IL 2,000 300
Decatur, AL 1,150 195
Marks, MS 1,200 210
Cargill, Inc.
Bloomington, IL 600 90
Cedar Rapids (E), IA 1,500 225
Des Moines, IA 1,100 165
Guntersville, AL 900 188
Iowa Falls, IA 1,500 225
Kansas City, MO 1,500 225
Lafayette, IN 850 128
Sioux City, IA 2000 330
Sidney, OH 1,500 225
Consolidated Grain & Barge Company
Mt. Vernon, IN 1,000 210
Incobrasa Industries, Ltd. 1,300 273
Gilman, IL
Owensboro Grain Company
Owensboro, KY 1,600 553
Riceland Foods, Incorporated
Stuttgart, AR 325 98
Solae LLC
Gibson City, IL 800 220
----------------------------------------------------------------------------------------
08/01/04
Appendix 12B
APPENDIX 12B - SOYBEAN MEAL LOCATIONS
APPROVED FOR DELIVERY AND THEIR DISCOUNTS OR PREMIUMS
CENTRAL TERRITORY - PAR
Bloomington,IL
Cairo, IL
Danville, IL
Decatur, IL
Galesburg, IL
Gibson City, IL
Gilman, IL
Quincy, IL
Owensboro, KY
EASTERN IOWA TERRITORY - $3.00 DISCOUNT
Cedar Rapids, (East), IA
Des Moines, IA
Iowa Falls, IA
MIDSOUTH TERRITORY - $8.00 PREMIUM
Decatur, AL
Guntersville, AL
Little Rock, AR
Marks, MS
Stuttgart, AR.
MISSOURI TERRITORY - AT $2.50 PREMIUM
Kansas City, MO
Mexico, MO
St. Joseph, MO
NORTHERN TERRITORY - $2.00 DISCOUNT
Eagle Grove, IA
Council Bluffs, IA
Emmetsburg, IA
Manning, IA
Mason City, IA
Sergeant Bluff, IA
Sheldon, IA
Sioux City, IA
NORTHEAST TERRITORY -$3.00 PREMIUM
Bellevue, OH
Decatur, IN
Fostoria, OH
Frankfurt, IN
Page 1 of 2
Appendix 12B
NORTHEAST TERRITORY -$3.00 PREMIUM (Continued)
Lafayette, IN
M orristown, IN
Mt. Vernon, IN
Sidney, OH
* Differentials enclosed by parentheses ( ) are discounts.
01/01/05
Page 2 of 2
Appendix 14A
APPENDIX 14A - BRANDS APPROVED FOR DELIVERY AGAINST CBOT 5,000 OUNCE SILVER
CONTRACTS
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- -------- -----------
The Anaconda Company Perth Amboy, N.J. UMCO * UMS CO.
ASARCO Incorporated Amarillo, Texas ASAT ASARCO SILVER - AMARILLO,
TEXAS
Baltimore, M.D. ASBA * ASARCO BALTIMORE, MARYLAND
Perth Amboy, N.J. ASCP * AS & R CO.-PERTH AMBOY, N.J.
Perth Amboy, N.J. ASPA * ASARCO-PERTH AMBOY, NEW JERSEY
Selby, CA SGSR * SELBY GOLD & SILVER REFINERY,
SAN FRANCISCO, CAL.
Britannia Refined Metals Co. Northfleet, England BLCO BLCo.
Broken Hill Associated
Smelters Pty. Ltd. Port Pirie, Australia BHAS BHAS
The Bunker Hill Company Kellogg, Idaho HILL * BUNKER HILL
Cerro de Pasco Corporation La Oraya, Peru CDPP * C de P PERU
Cominco Ltd. Trail, British Columbia TADA TADANAC
Compania de Real Monte
y Pachuca Pachuca, Mexico RDMM R del M
Comptoir Lyon-Alemand Louyot Noisy le Sec, France CLAP * COMPTOIR-LYON-ALEMAND,
LOUYOT & CIE-PARIS
CLAL COMPTOIR-LYON-ALEMAND,
LOUYOT-PARIS
OMG AG & Co. KG Hanau, Germany DEGU * DEGUSSA (with 1/2 sun and
1/4 moon within diamond)
OMG AG & Co. KG South Plainfield, N.J. METZ * DEGUSSA (with 1/2 sun and
1/4 moon with diamond,
also Metz est. 1921)
Dowa Mining Co. Ltd. Kosaka City, Japan DOWA DOWA (with crossed hammers
within circle)
Empresa Minera del Peru S.A. La Oroya, Peru CPPE CP-PERU
Engelhard Corporation Chessington, England ENCI * ENGELHARD LONDON
Carteret, N.J. ENNE * ENGELHARD
Engelhard Corporation Ivry, France ECMP * ENGELHARD (with Compagnie Des
Metaux Precieux-Paris within an oval)
Page 1 of 3
Appendix 14A
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- -------- -----------
Furukawa Metals Co. Ltd. Nikko City, Japan TRIA OPEN TRIANGLE (like letter A,
brand name "'Yamaichi")
Golden West Refining Corporation Attleboro, Mass. GWHH * HH HANDY & HARMAN REFINING
Limited, Handy & Harman Refining GROUP
Group Inc.
Handy & Harman Attleboro, Mass. HAND * HH HANDY & HARMAN SILVER
Fairfield, Conn. HARM * HH HANDY & HARMAN SILVER
(with capital letter F bars produced
at Fairfield, Conn.)
INCO Limited Sudbury, Ontario ORCO ORC
Industrial Minera Mexico, S.A. Monterrey, Mexico ASMO * ASARCO-MONTERREY
Monterrey, Mexico IMMM IMM-MONTERREY
Johnson Matthey Limited Brampton, Ontario JMJM * JOHNSON MATTHEY-JM
(with crossed hammers and assay stamp:
JM LTD.-CANADA-ASSAY OFFICE)
Brampton, Ontario JMCA * JM (with crossed hammers)
Brampton, Ontario JMMC * J.M. & M. Ltd.
Brampton, Ontario JMLT JM and crossed hammers in diamond
Surrounded by JOHNSON MATTHEY
CANADA
Johnson Matthey Chemicals Ltd. Royston, England JMLO JOHNSON MATTHEY LONDON
Royston, England JMCF * JMCF
Johnson Matthey Refining, Inc. Salt Lake City, Utah JMRI JOHNSON MATTHEY-JM
(with crossed hammers and assay stamp:
J.M.R.I.-U.S.A.-ASSAY OFFICE)
Kam-Kotia Mines Ltd. Cobalt, Ontario CRKO * CRK
Kennecott Corporation Magma, Utah KUEU KUE
Metalli Preziosi S.p.A. Milan, Italy MPSP METALLI PREZIOSI S.p.A. MILANO
(with MP)
n.v. Union Miniere s.a. Hoboken, Belgium MHOV * HOBOKEN 999.7+
- Business Unit Hoboken Hoboken, Belgium HOBN HOBOKEN 999+
Metalor Technologies USA Corp. N. Attleboro, Mass. MUST METALOR(R)(with "MUS" assay mark)
N. Attleboro, Mass. META * METAUX PRECIEUX SA METALOR
(in a circle with letters MUS in center)
Metalor Precieux SA Metalor Neuchatel, Switzerland MPOR METAUX PRECIEUX SA METALOR
(in a circle with letters MP in center)
Met-Mex Penoles, SA de CV Monterrey, Mexico MPSA * METALURGICA MEXICANA
PENOLES S.A.
Torreon, Mexico POPM PRODUCT OF PENOLES MEXICO
Mitsubishi Materials Corporation Kagawa, Japan DIAM Three diamonds forming a triangle
No. 1 Mining Corporation Namtu, Burma BRMA BURMA MINES
Page 2 of 3
Appendix 14A
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- -------- -----------
Noranda Metallurgy Inc.- Montreal East, Quebec CCRL CCR CANADA
Copper
Norddeutsche Affinerie A.G. Hamburg, W. Germany NAHA NORDDEUTSCHE AFFINERIE
HAMBURG
PAMP S.A. Castel San Pietro, PAMP PAMP
Switzerland
PGP Industries Inc. Duncan, South Carolina PGPI PGP
Rand Refinery Limited Germiston, Transvaal RRSA RAND REFINERY LTD.
(with RR Ltd. on underside)
Rudarsko Metalursko Hernijski Zvecan, Yugoslavia TREP TREPCA
Kombinat. Trepca
Sabin Metal Corporation Scottsville, N.Y. SABN SMC
Sheffield Smelting Co. Ltd. Sheffield, England SSCL * THE SHEFFIELD SMELTING CO. LTD.
United States Assay Office Denver, Colorado USDE * SEAL OF UNITED STATES (with
New York, New York USNY year and location of production)
Philadelphia, Pa. USPH
San Francisco, Cal. USSF
United States Metals Refining Co., Carteret, N.J. DRW * DRW
division of Amax Copper, Inc.
U.S. Smelting, Refining & Mining East Chicago, III. USSC * USSCO
Zaklady Metalurginczne Trzebinia Trzebinia, Poland ZTMP ZTM
* Denotes brands are no longer produced
10/01/04
Page 3 of 3
Appendix 14B
APPENDIX 14B-CBOT LICENSED DEPOSITORIES AND ASSAYERS FOR 5,000 OUNCE SILVER
CONTRACTS
Depository Location Vault Number
--------------------------------------------------------------------------------
Brinks Global Services USA, Inc. 652 Kent Avenue 4001
A Division of Brinks, Inc. Brooklyn, NY 11211
Delaware Depository Service 3601 N. Market Street 4014
Company Wilmington, DE 19802
4200 Governor Printz Blvd. 4200
Wilmington, DE 19802
HSBC Bank USA 452 5th Avenue 4008
New York, NY 10018
425 Saw River Road 4100
Ardsley, NY 10502
Scotia Mocatta Depository 26 Broadway 3001
A Division of Bank of Nova Scotia New York, NY 10004
Assayer for 5,000 ounce silver contracts
Ledoux & Company
359 Alfred Avenue
Teaneck, NJ 07666
(201) 837-7160
(12/01/04)
Appendix m14A
APPENDIX m14A - BRANDS APPROVED FOR DELIVERY
AGAINST CBOT mini-sized SILVER CONTRACTS
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- ---- -----------
The Anaconda Company Perth Amboy, N.J. UMCO * UMS CO.
ASARCO Incorporated Amarillo, Texas ASAT ASARCO SILVER - AMARILLO,
TEXAS
Baltimore, M.D. ASBA * ASARCO BALTIMORE, MARYLAND
Perth Amboy, N.J. ASCP * AS & R CO.-PERTH AMBOY, N.J.
Perth Amboy, N.J. ASPA * ASARCO-PERTH AMBOY, NEW JERSEY
Selby, CA SGSR * SELBY GOLD & SILVER REFINERY,
SAN FRANCISCO, CAL.
Britannia Refined Metals Co. Northfleet, England BLCO BLCo.
Broken Hill Associated Smelters
Pty. Ltd. Port Pirie, Australia BHAS BHAS
The Bunker Hill Company Kellogg, Idaho HILL * BUNKER HILL
Cerro de Pasco Corporation La Oroya, Peru CDPP * C de P PERU
Cominco Ltd. Trail, British Columbia TADA TADANAC
Compania de Real Monte
y Pachuca Pachuca, Mexico RDMM R del M
Comptoir Lyon-Alemand Louyot Noisy le Sec, France CLAP * COMPTOIR-LYON-ALEMAND,
LOUYOT & CIE-PARIS
CLAL COMPTOIR-LYON-ALEMAND,
LOUYOT-PARIS
OMG AG & Co. KG Hanau, Germany DEGU * DEGUSSA (with 1/2 sun and
1/4 moon within diamond)
OMG AG & Co. KG South Plainfield, N.J. METZ * DEGUSSA (with 1/2 sun and
1/4 moon within diamond,
also Metz est. 1921)
Dowa Mining Co. Ltd. Kosaka City, Japan DOWA DOWA (with crossed hammers
within circle)
Empresa Minera del Peru S.A. La Oroya, Peru CPPE CP-PERU
Engelhard Corporation Chessington, England ENCI * ENGELHARD LONDON
Carteret, N.J. ENNE * ENGELHARD
Engelhard Corporation Ivry, France ECMP * ENGELHARD (with Compagnie Des
Metaux Precieux-Paris within an oval)
*No longer produced
Appendix m14A
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- ---- -----------
Furukawa Metals Co. Ltd. Nikko City, Japan TRIA OPEN TRIANGLE (like letter A,
brand name "Yamaichi")
Golden West Refining Corporation Attleboro, Mass. GWHH * HH HANDY & HARMAN REFINING
Limited, Handy & Harman Refining GROUP
Group Inc.
Handy & Harman Attleboro, Mass. HAND * HH HANDY & HARMAN SILVER
Fairfield, Conn. HARM * HH HANDY & HARMAN SILVER
Fairfield, Conn.)
INCO Limited Sudbury, Ontario ORCO ORC
Industrial Minera Mexico, S.A. Monterrey, Mexico ASMO * ASARCO-MONTERREY
Monterrey, Mexico IMMM IMM-MONTERREY
Johnson Matthey Limited Brampton, Ontario JMJM * JOHNSON MATTHEY-JM
(with crossed hammers and assay stamp:
JM LTD.-CANADA-ASSAY OFFICE)
Brampton, Ontario JMCA * JM (with crossed hammers)
Brampton, Ontario JMMC * J.M. & M. Ltd.
Johnson Matthey Chemicals Ltd. Royston, England JMLO JOHNSON MATTHEY LONDON
Royston, England JMCF * JMCF
Johnson Matthey Refining, Inc. Salt Lake City, Utah JMRI JOHNSON MATTHEY-JM
(with crossed hammers and assay stamp:
J.M.R.I.-U.S.A.-ASSAY OFFICE)
Kam-Kotia Mines Ltd. Cobalt, Ontario CRKO * CRK
Kennecott Corporation Magma, Utah KUEU KUE
Metalli Preziosi S.p.A. Milan, Italy MPSP METALLI PREZIOSI S.p.A. MILANO
(with MP)
n.v. Union Miniere s.a. Hoboken, Belgium MHOV * HOBOKEN 999.7+
- Business Unit Hoboken Hoboken, Belgium HOBN HOBOKEN 999+
Metalor Technologies USA Corp. N. Attleboro, Mass. META * METAUX PRECIEUX SA METALOR
(in a circle with letters MUS in center)
N. Attleboro, Mass. MUST METALOR
(with "MUS" assay mark)
Metalor Precieux SA Metalor Neuchatel, Switzerland MPOR METAUX PRECIEUX SA METALOR
(in a circle with letters MP in center)
Met-Mex Penoles, SA de CV Monterrey, Mexico MPSA * METALURGICA MEXICANA
PENOLES S.A.
Torreon, Mexico POPM PRODUCT OF PENOLES MEXICO
Mitsubishi Materials Corporation Kagawa, Japan DIAM Three diamonds forming a triangle
No. 1 Mining Corporation Namtu, Burma BRMA BURMA MINES
Noranda Metallurgy Inc.-
Copper Montreal East, Quebec CCRL CCR CANADA
*No longer produced
Appendix m14A
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- ---- -----------
Norddeutsche Affinerie A.G. Hamburg, W. Germany NAHA NORDDEUTSCHE AFFINERIE
HAMBURG
PAMP S.A. Castel San Pietro, PAMP PAMP
Switzerland
PGP Industries Inc. Duncan, South Carolina PGPI PGP
Rand Refinery Limited Germiston, Transvaal RRSA RAND REFINERY LTD.
(with RR Ltd. on underside)
Rudarsko Metalursko Hernijski
Kombinat, Trepca Zvecan, Yugoslavia TREP TREPCA
Sabin Metal Corporation Scottsville, N.Y. SABN SMC
Sheffield Smelting Co. Ltd. Sheffield, England SSCL * THE SHEFFIELD SMELTING CO. LTD.
United States Assay Office Denver, Colorado USDE * SEAL OF UNITED STATES (with
New York, New York USNY year and location of production)
Philadelphia, Pa. USPH
San Francisco, Cal. USSF
United States Metals Refining Co., Carteret, N.J. DRW * DRW
division of Amax Copper, Inc.
U.S. Smelting, Refining & Mining East Chicago, Ill. USSC * USSCO
Zaklady Metalurginczne Trzebinia Trzebinia, Poland ZTMP ZTM
*Denotes no longer produced
10/01/04
Appendix m14B
APPENDIX m14B - CBOT LICENSED DEPOSITORIES AND
ASSAYERS FOR mini-sized SILVER
[Download Table]
Depository Location Vault Number
---------- -------- ------------
NEW YORK
--------
SCOTIA MOCATTA DEPOSITORY, 26 Broadway 3001
A DIVISION OF THE BANK OF NOVA SCOTIA New York, NY 10004
HSBC BANK USA 452 5th Avenue 4008
New York, NY 10018
425 Sawmill River Road 4100
Ardsley, NY 10502
BRINKS GLOBAL SERVICES, USA, INC. 652 Kent Avenue 4001
A DIVISION OF BRINKS, INC. Brooklyn, NY 11211
DELAWARE
--------
DELAWARE DEPOSITORY SERVICE COMPANY, LLC 3601 North Market Street 4041
Wilmington, DE 19802
4200 Governor Printz Blvd. 4200
Wilmington, DE 19802
LICENSED ASSAYER FOR mini-sized SILVER
Ledoux & Company
359 Alfred Avenue
Teaneck, NJ 07666
Orders: NJ (201) 837-7160
12/01/04
Page 1 of 1
Appendix 15A
APPENDIX 15A - BRANDS APPROVED FOR DELIVERY AGAINST 100 OUNCE GOLD CONTRACTS
[Enlarge/Download Table]
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- ---- -----------
AGR Joint Venture Perth, Australia PMAU THE PERTH MINT AUSTRALIA
(with swan motif mint mark
within circle)
Argor, S.A. Chiasso, Switzerland ARGO * ARGOR S.A. CHIASSO-ASA
Argor - Heraeus SA Mendrisio, Switzerland ARHE ARGOR-HERAEUS SA, A-H,
SWITZERLAND
ASARCO Incorporated Amarillo, Texas ASAT ASARCO GOLD- AMARILLO,
TEXAS
Casa da Moeda do Brasil Rio de Janeiro, Brazil CASA CASA DA MOEDA DO
BRASIL-CMB
Compagnie des Metaux Precieux Ivry, France CMPP * COMPAGNIE DES METAUX
PRECIEUX PARIS (may also
contain letters CMP)
Ivry, France SDBS * SOCIETE DE BANQUE SUISSE
Companhia Real de Metais Sao Paulo, Brazil CRDM CRM
Comptoir Lyon-Alemand Louyot Noisy le Sec, France CLAL COMPTOIR-LYON-ALEMAND,
LOUYOT-PARIS (with Affineur
Fondeur within octagon)
OMG AG & Co. KG Hanau, Germany DEGU * DEGUSSA FEINGOLD (with 1/2
sun and 1/4 moon within diamond)
OMG AG & Co. KG Burmington, Ontario DECA * DEGUSSA CANADA LTD. (with 1/2
sun and 1/4 moon within diamond)
OMG Brasil Ltda. Guarulhos, Brazil DEBR DEGUSSA S.A. (with 1/2 sun
and 1/4 moon within diamond)
H.Drijfhout & Zoon's Amsterdam, Netherlands HDZA H. DRIJFHOUT & ZOON-
Edelmetaalbedrijven BV AMSTERDAM-MELTERS (within
octagon)
Page 1 of 4
Appendix 15A
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- -------- -----------
Engelhard Corporation Carteret, N.J. ENNE * ENGELHARD (may also be
* ENGELHARD NEW JERSEY-
U.S.A.
or ENGELHARD U.S.A.)
Carteret, N.J. BAKE * BAKER (within circle atop triangle)
Chessington, England ENCI * ENGELHARD LONDON
Thomastown, Australia ENTH * ENGELHARD AUSTRALIA
Aurora, Ontario ENAU * ENGELHARD (with circle
connected to 1/2 moon to left of
name; may also be ENGELHARD
INDUSTRIES OF CANADA LTD.
Golden West Refining Corporation Attleboro, Mass GWHH * HH HANDY & HARMAN
Limited, Handy & Harman Refining REFINING GROUP
Group Inc.
Handy & Harman Attleboro, Mass HAND * HH HANDY & HARMAN
W.C. Heraeus, G.m.b.H. Hanau, Germany HERA HERAEUS FEINGOLD (with
Heraeus Edelmetalle GmbH-
Hanau encircling three roses)
Heraeus Incorporated Newark, N.J. HERI HERAEUS FEINGOLD (with
capital letter "E" preceding
serial number)
Heraeus Ltd. Kowloon, Hong Kong HERH HERAEUS FEINGOLD (with
capital letter "H" preceding
serial number)
Homestake Mining Company Lead, South Dakota HMCO * HOMESTAKE MINING COMPANY
(with HMC all within
circle)
Johnson Matthey, Inc. Winslow, New Jersey MBUS * MATTHEY BISHOP U.S.A.
(within an oval)
Johnson Matthey Limited Brampton, Ontario JMMC * JOHNSON MATTHEY &
MALLORY-CANADA (within an
oval)
Brampton, Ontario JMCA * JM (with crossed hammers)
Brampton, Ontario JMJM JOHNSON MATTHEY-JM
(with crossed hammers and assay
stamp: J.M. LTD.-CANADA-
ASSAY OFFICE)
Page 2 of 4
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- -------- -----------
Johnson Matthey Limited Kogarah, Australia MGPS * MATTHEY GARRETT PTY.
(Australia) SYDNEY REFINERS (within an
oval)
Kogarah, Australia JMLA * JOHNSON MATTHEY LIMITED
AUSTRALIA
Johnson Matthey Chemicals Ltd. Royston, England JMLO JOHNSON MATTHEY LONDON
(within an oval)
Johnson Matthey & Pauwels S.A. Brussels, Belgium JMPA * JOHNSON MATTHEY &
PAUWELS (within an oval)
Johnson Matthey Refining, Inc. Salt Lake City, Utah JMRI JOHNSON MATTHEY-JM (with
crossed hammers and assay stamp:
J.M.R.I. U.S.A.-ASSAY OFFICE)
Kennecott Utah Copper Corporation Magna, Utah KUAU KUC
Metallurgie Hoboken Overpelt S.A. Hoboken Belgium MHOV * METALLURGIE HOBOKEN
OVERPELT
n.v. Union Miniere s.a. Hoboken, Belgium HOBO Hoboken 9999
- Business Unit Hoboken
Metalli Preziosi S.p.A. Milan, Italy MPSP METALLI PREZIOSI S.p.A.
MILANO-AFFINAZIONE (with
MP within a circle)
Metalor Technologies USA Corp. Attleborough, Mass. MUST METALOR(R)(with the "MUS" assay
mark)
Attleborough, Mass. META * METAUX PRECIEUX SA
METALOR -MP (with "MUS"
Assay mark)
Metaux Precieux S.A. Metalor Neuchatel, Switzerland MPSA METAUX PRECIEUX SA -
NEUCHATEL (with MP within a
circle)
Neuchatel, Switzerland SBCO SWISS BANK COPORATION
Mitsubishi Metal Corporation Osaka, Japan MMCO * MITSUBISHI METAL
CORPORATION
(with three diamond mark within
oval)
Mitsubishi Materials Kagawa, Japan MITS Three diamonds forming a triangle
Corporation
Noranda Mines Limited, Montreal East, Quebec CCRL * CANADIAN COPPER REFINERS
_CR Division LIMITED MONTREAL EAST,
CANADA (within an oval)
10/01/04
Page 3 of 4
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- -------- -----------
Noranda Mines Limited, Montreal East, Quebec NORA * NORANDA MINES LIMITED -
CCR Division CCR, MONTREAL EAST,
CANADA (within an oval)
Noranda Metallurgy Inc. - Copper Montreal East, Quebec NINC NORANDA MINES Inc. - CCR,
MONTREAL EAST, CANADA
(within an oval)
Norddeutsche Affinerie AG Hamburg, W. Germany NAHA NORDDEUTSCHE AFFINERIE
HAMBURG
PAMP, S.A. Castel S. Pietro, PAMP PAMP-SUISSE Produits Artistiques
Metaux Precieux Switzerland
Rand Refinery Limited Germiston Transvaal RRSA RAND REFINERY Ltd. SOUTH
AFRICA (encircling picture of
springbok)
Royal Canadian Mint Ottawa, Canada RCMI ROYAL CANADIAN MINT
(encircling a crown)
Sabin Metal Corporation Scottsville, N.Y. SABN SMC
Schone Edelmetaal NV Amsterdam, Netherlands GSNV GUARANTEED BY SCHONE N.V.
AMSTERDAM
Sheffield Smelting Co. Ltd. Sheffield, England SSCL * THE SHEFFIELD SMELTING CO.
LTD. - LONDON & SHEFFIELD
Tanaka Kikinzoku Kogyo K.K. Ichikawa, Japan TTME TANAKA TOKYO-MELTERS
United States Metals Refining Carteret, N.J. DRW * DRW
Co., division of Amax Copper, Inc.
U.S.S.R Moscow, U.S.S.R CCCP CCCP (with hammer and sickle)
Valcambi, S.A. Balerna, Switzerland CRSU CREDIT SUISSE
* Denotes brand is no longer produced.
10/01/04
Page 4 of 4
Appendix 15B
APPENDIX 15B-CBOT LICENSED DEPOSITORIES AND ASSAYERS
FOR 100 OUNCE GOLD CONTRACTS
Depository Location Vault Number
--------------------------------------------------------------------------------
Brinks Global Services USA, Inc. 652 Kent Avenue 4001
A Division of Brinks, Inc. Brooklyn, NY 11211
HSBC Bank USA 452 5th Avenue 4008
New York, NY 10018
Scotia Mocatta Depository 26 Broadway 3001
A Division of Bank of Nova Scotia New York, NY 10004
Assayers for 100 ounce gold contracts
Ledoux & Company
359 Alfred Avenue
Teaneck, NJ 07666
(201) 837-7160
(10/01/04)
Appendix m15A
APPENDIX m15A - BRANDS APPROVED FOR DELIVERY
AGAINST CBOT mini-sized GOLD CONTRACTS
[Enlarge/Download Table]
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- ---- -----------
AGR Joint Venture Perth, Australia PMAU THE PERTH MINT AUSTRALIA
(with swan motif mint mark
within circle)
Argor, S.A. Chiasso, Switzerland ARGO *ARGOR S.A. CHIASSO-ASA
Argor-Heraeus SA Mendrisio, Switzerland ARHE ARGOR-HERAEUS SA, A-H,
SWITZERLAND
ASARCO Incorporated Amarillo, Texas ASAT ASARCO GOLD-AMARILLO,
TEXAS
Casa da Moeda do Brasil Rio de Janeiro, Brazil CASA CASA DA MOEDA DO
BRASIL-CMB
Compagnie des Metaux Precieux Ivry, France CMPP *COMPAGNIE DES METAUX
PRECIEUX PARIS (may also
contain letters CMP)
Ivry, France SDBS *SOCIETE DE BANQUE SUISSE
Companhia Real de Metais Sao Paulo, Brazil CRDM CRM
Comptoir Lyon-Alemand Louyot Noisy le Sec, France CLAL COMPTOIR-LYON-ALEMAND,
LOUYOT-PARIS (with Affineur
Fondeur within octagon)
OMG AG & Co. KG Hanau, Germany DEGU *DEGUSSA FEINGOLD (with 1/2
sun and 1/4 moon within diamond)
OMG AG & Co. KG Burmington, Ontario DECA *DEGUSSA CANADA LTD. (with
1/2 sun and 1/4 moon within diamond)
OMG Brasil Ltda. Guarulhos, Brazil DEBR DEGUSSA S.A. (with 1/2 sun
and 1/4 moon within diamond)
H.Drijfhout & Zoon's Amsterdam, Netherlands HDZA H. DRIJFHOUT & ZOON-
Edelmetaalbedrijven BV AMSTERDAM-MELTERS (within
octagon)
Appendix m15A
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- ---- -----------
Engelhard Corporation Carteret, N.J. ENNE * ENGELHARD (may also be
ENGELHARD NEW JERSEY-U.S.A.
or ENGELHARD U.S.A.)
Carteret, N.J. BAKE * BAKER (within circle atop triangle)
Chessington, England ENCI * ENGELHARD LONDON
Thomastown, Australia ENTH * ENGELHARD AUSTRALIA
Aurora, Ontario ENAU * ENGELHARD (with circle connected to 1/2 moon to
left of name; may also be ENGELHARD INDUSTRIES
OF CANADA LTD.
Golden West Refining Corporation Attleboro, Mass GWHH * HH HANDY & HARMAN REFINING GROUP
Limited, Handy & Harman Refining
Group Inc.
Handy & Harman Attleboro, Mass HAND * HH HANDY & HARMAN
W.C. Heraeus, G.m.b.H. Hanau, Germany HERA HERAEUS FEINGOLD (with Heraeus Edelmetalle GmbH-
Hanau encircling three roses)
Heraeus Incorporated Newark, N.J. HERI HERAEUS FEINGOLD (with capital letter "E" preceding
serial number)
Heraeus Ltd. Kowloon, Hong Kong HERH HERAEUS FEINGOLD (with capital letter "H" preceding
serial number)
Homestake Mining Company Lead, South Dakota HMCO * HOMESTAKE MINING COMPANY (with HMC all within circle)
Johnson Matthey, Inc. Winslow, New Jersey MBUS * MATTHEY BISHOP U.S.A. (within an oval)
Johnson Matthey Limited Brampton, Ontario JMMC * JOHNSON MATTHEY & MALLORY-CANADA (within an oval)
Brampton, Ontario JMCA * JM (with crossed hammers)
Brampton, Ontario JMJM JOHNSON MATTHEY-JM (with crossed hammers and assay
stamp; J.M. LTD.-CANADA-ASSAY OFFICE)
Appendix m15A
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- ---- -----------
Johnson Matthey Limited (Australia) Kogarah, Australia MGPS * MATTHEY GARRETT PTY. SYDNEY REFINERS (within an oval)
Kogarah, Australia JMLA * JOHNSON MATTHEY LIMITED AUSTRALIA
Johnson Matthey Chemicals Ltd. Royston, England JMLO JOHNSON MATTHEY LONDON (within an oval)
Johnson Matthey & Pauwels S.A. Brussels, Belgium JMPA * JOHNSON MATTHEY & PAUWELS (within an oval)
Johnson Matthey Refining, Inc. Salt Lake City, Utah JMRI JOHNSON MATTHEY-JM (with crossed hammers and assay
stamp: J.M.R.I. U.S.A.-ASSAY OFFICE)
Kennecott Utah Copper Corporation Magna, Utah KUAU KUC
Metallurgie Hoboken Overpelt S.A. Hoboken, Belgium MHOV * METALLURGIE HOBOKEN OVERPELT
n.v. Union Miniere s.a. Hoboken, Belgium HOBO Hoboken 9999
- Business Unit Hoboken
Metalli Preziosi S.p.A. Milan, Italy MPSP METALLI PREZIOSI S.p.A. MILANO-AFFINAZIONE
(with MP within a circle)
Metalor Technologies USA Corp. Attleboro, Mass. META * METAUX PRECIEUX SA METALOR-MP (with "MUS" Assay mark)
Attleboro, Mass. MUST METALOR (with "MUS" assay mark)
Metaux Precieux S.A. Metalor Neuchatel, Switzerland MPSA METAUX PRECIEUX SA - NEUCHATEL (with MP within a circle)
Neuchatel, Switzerland SBCO SWISS BANK CORPORATION
Mitsubishi Metal Corporation Osaka, Japan MMCO * MITSUBISHI METAL CORPORATION (with three diamond mark
within oval)
Mitsubishi Materials Corporation Kagawa, Japan MITS Three diamonds forming a triangle
Noranda Mines Limited, CCR Division Montreal East, Quebec CCRL * CANADIAN COPPER REFINERS LIMITED MONTREAL EAST, CANADA
(within an oval)
Appendix m15A
[Enlarge/Download Table]
COMPUTER
PRODUCER REFINED AT CODE BRAND MARKS
-------- ---------- ---- ------------
Noranda Mines Limited, Montreal East, Quebec NORA * NORANDA MINES LIMITED-
CCR Division CCR, MONTREAL EAST,
CANADA (within an oval)
Noranda Metallurgy Inc. - Copper Montreal East, Quebec NINC NORANDA MINES Inc. - CCR,
MONTREAL EAST, CANADA
(within an oval)
Norddeutsche Affinerie AG Hamburg, W. Germany NAHA NORDDEUTSCHE AFFINERIE
HAMBURG
PAMP, S.A. Castel S. Pietro, PAMP PAMP-SUISSE Produits Artistiques
Switzerland Metaux Precieux Switzerland
Rand Refinery Limited Germiston Transvaal RRSA RAND REFINERY Ltd. SOUTH
AFRICA (encircling picture of
springbok)
Royal Canadian Mint Ottawa, Canada RCMI ROYAL CANADIAN MINT
(encircling a crown)
Sabin Metal Corporation Scottsville, N.Y. SABN SMC
Schone Edelmetaal NV Amsterdam, Netherlands GSNV GUARANTEED BY SCHONE N.V.
AMSTERDAM
Sheffield Smelting Co. Ltd. Sheffield, England SSCL * THE SHEFFIELD SMELTING CO.
LTD. - LONDON & SHEFFIELD
Tanaka Kikinzoku Kogyo K.K. Ichikawa, Japan TTME TANAKA TOKYO-MELTERS
United States Metals Refining Carteret, N.J. DRW * DRW
Co., division of Amax Copper, Inc.
U.S.S.R. Moscow, U.S.S.R. CCCP CCCP (with hammer and sickle)
Valcambi, S.A. Balerna, Switzerland CRSU CREDIT SUISSE
10/01/04
* Denotes brand no longer produced.
Appendix m15B
APPENDIX m15B--CBOT LICENSED DEPOSITORIES AND
ASSAYERS FOR mini-sized GOLD
[Download Table]
Depository Location Vault Number
---------- -------- ------------
NEW YORK
BRINKS GLOBAL SERVICES USA, INC. 652 Kent Avenue 4001
A DIVISION OF BRINKS, INC. Brooklyn, NY 11211
SCOTIAMOCATTA DEPOSITORY 26 Broadway 3001
A DIVISION OF THE BANK OF NOVA SCOTIA New York, NY 10004
HSBC Bank USA 452 5th Avenue 4008
New York, NY 10018
LICENSED ASSAYER FOR mini-sized GOLD
------------------------------------
Ledoux & Company
359 Alfred Avenue
Teaneck, NJ 07666
(Orders: NJ (201) 837-7160)
12/01/04
Page 1 of 1
APPENDIX 37B - ROUGH RICE REGULARITY
ROUGH RICE REGULARITY
---------------------
The following applications for a declaration of regularity for the delivery of
Rough Rice have been approved through June 30, 2006:
[Enlarge/Download Table]
------------------------------------------------------------------------------------------------------------------------------
Total Maximum Storage Rate* Load-Out rate
FIRM/FACILITY Capacity Receipts (per hundred weight (per hundred
(cwt.) Deliverable per day) weight
------------------------------------------------------------------------------------------------------------------------------
RICELAND FOODS, INC.
Waldenburg, AR 400,000 200 34.00/100 of a cent 22.22 cents
FARMER'S GRANARY, INC.
Patterson, AR 900,000 450 28.89/100 of a cent 22.22 cents
GULF RICE ARKANSAS LLC
Harrisburg, AR 953,000 476 34.00/100 of a cent 22.22 cents
HARVEST RICE, INC. 574,000 287 34.00/100 of a ct. 22.22 cents
McGehee, AR
POINSETT RICE & GRAIN, INC.
Waldenburg, AR 830,250 415 29.67/100 of a cent 22.22 cents
Diaz, AR 425,250 212 29.67/100 of a cent 22.22 cents
PRODUCER'S RICE MILL, INC.
Stuttgart, AR 122,000 61 28.89/100 of a ct. 21.10 cents
Stuttgart, AR (mill site) 400,000 200 28.89/100 of a ct. 21.10 cents
Wynne, AR 478,000 239 28.89/100 of a ct. 20.00 cents
RICELAND FOODS, INC.
Dumas, AR 450,000 225 34.00/100 of a ct. 22.22 cents
Fair Oaks, AR 450,000 225 34.00/100 of a ct. 22.22 cents
Hickory Ridge, AR 338,000 169 34.00/100 of a ct. 22.22 cents
Jonesboro, AR 2,250,000 1,125 34.00/100 of a ct. 22.22 cents
McGehee, AR 300,000 150 34.00/100 of a ct. 22.22 cents
Newport, AR 360,000 180 34.00/100 of a ct. 22.22 cents
Stuttgart, AR- Dryer 1,600,000 800 34.00/100 of a ct. 22.22 cents
Mill Site
Weiner, AR 450,000 225 34.00/100 of a ct. 22.22 cents
Wheatly, AR 450,000 225 34.00/100 of a ct. 22.22 cents
------------------------------------------------------------------------------------------------------------------------------
* Storage rate cap of 34/100 of a cent applies to all receipts issued on and
after 05/01/95
08/01/04
APPENDIX 37C - DEFINITIONS
FIRST POSITION DAY - Shall be the second business day prior to the first
business day of the delivery month.
FIRST NOTICE DAY - Shall be the business day prior to the first business day
of the delivery month.
FIRST DELIVERY DAY - Shall be the first business day of the delivery month.
LAST TRADING DAY - Shall be the business day prior to the last seven business
days of the delivery month.
LAST NOTICE DAY - Shall be the business day prior to the last business day
of the delivery month.
LAST DELIVERY DAY - Shall be the last business day of the delivery month.
11/01/94
APPENDIX 37D - MINIMUM FINANCIAL REQUIREMENTS FOR ROUGH RICE REGULARITY
The minimum financial requirements for firms which are regular to deliver Rough
Rice are:
1. Working Capital - (current assets less current liabilities) must
be greater than or equal to $1,000,000. Firms which do not have $1,000,000
in working capital must deposit with the Exchange $5,000 per contract which
they are regular to deliver, up to a maximum of $1,000,000 less SEC
haircuts, as specified in SEC Rule 15c3-1(c) (2) (vi), (vii) and (viii)
plus 3% in the event of liquidation.
2. Net Worth - (Total assets less total liabilities) divided by the
firm's allowable capacity (measured in contracts) must be greater than
$5,000.
3. Each firm which is regular to deliver Rough Rice is required to
file a yearly certified financial statement within 90 days of the firm's
year-end. Each such firm is also required to file within 90 days of the
statement date an unaudited semi-annual financial statement. In addition,
the Exchange may request additional financial information as it deems
appropriate;
4. A Letter of Attestation must accompany all financial statements.
The Letter of Attestation must be signed by the Chief Financial Officer or
if there is none, a general partner, executive officer, or managerial
employee who has the authority to sign financial statements on behalf of
the firm and to attest to their correctness and completeness.
5. For the requirements for notification of capital reductions, see
Regulation 285.03.
6. Any change in the organizational structure of a firm that is
regular for delivery requires that the firm notify the Exchange prior to
such change. Changes in organizational structure shall include, but not be
limited to, a corporation, limited liability company, general partnership,
limited partnership or sole proprietorship that changes to another form.
Prior to such change occurring, the firm is also required to notify the
Exchange in writing of any name change.
For other applicable provisions, see Appendix 4G, "Letter of Credit
Standards" and Appendix 4H, "Bonding Standards."
01/01/04
Dates Referenced Herein and Documents Incorporated by Reference
↑Top
Filing Submission 0001193125-05-014312 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)
Copyright © 2024 Fran Finnegan & Company LLC – All Rights Reserved.
About — Privacy — Redactions — Help —
Wed., May 15, 8:14:14.5pm ET 
