September 16, 2009

To respond to current misperceptions that could undermine confidence in our markets, CME Group, the world's largest and most diverse derivatives marketplace, is providing recommendations for the establishment of "hard" single exchange position limits for energy products listed at regulated exchanges.

CME Group is also proposing that the exchange administer any tailored hedge exemptions for eligible market participants and that its regulator, the Commodity Futures Trading Commission (CFTC), be given expanded authority to impose and enforce aggregate position limits across over-the-counter (OTC) and all applicable U.S. derivatives markets. The methodology for establishing the position limits and other recommendations are detailed in a newly released paper titled, "Excess Speculation and Position Limits in Energy Derivatives Markets."

The new limits, which would include single-month and all-months combined, would be in addition to the existing hard position limits during the last three trading days of the expiration months, and will commence when all CFTC-regulated exempt commercial markets and foreign boards of trade synchronize a start date.

"We recognize that misperceptions can undermine confidence in well-functioning markets, which is why we support the CFTC's mission to provide regulatory certainty and to ensure that the energy markets can operate efficiently. Regulatory parity, however, must be given to all markets under the CFTC's jurisdiction," said Terry Duffy, CME Group Executive Chairman. "Imposing hard limits on energy products must be delicately balanced with the need to ensure that such limits do not have a detrimental effect on the markets. We cannot and should not force market participants away from the best regulated markets to less regulated or even unregulated markets and dark pools of opaque transactions."

"We believe that our carefully designed recommendations will address perceived issues and provide a solution for those seeking to impose hard limits while avoiding any unintended harm to the U.S. markets and their users," said Craig Donohue, CME Group Chief Executive Officer. "Multiple studies have concluded that supply and demand - and not speculators - is the underlying cause of price movement in commodity markets. Therefore, in our efforts to correct misperceptions, we must be careful not to create unintended consequences that will push the business beyond regulatory jurisdiction. Combined with expanded CFTC authority to impose and enforce position limits on all U.S. regulated and OTC markets, our markets will retain their essential roles of price discovery and efficient hedging of risk while continuing to uphold market stability, transparency and access. Our approach is intended to be administered in a way that fosters fair competition among trading venues in all mar kets while offering the basis for a solution that can ultimately be adopted by the CFTC and Congress."

CME Group's recommendations satisfy the following objectives:

• Achieves the regulatory and risk management objectives of position limits
• Allows for the expansion or contraction of the position limits with sustained changes in open interest
• Allows for flexible and effective oversight of speculative positions inside of position limits based on market economics and market composition of different contract months by the use of concentration thresholds
• Provides for consistent limits across contract months which offers simplicity for market participants; concentration thresholds provide appropriate guidance with respect to position concentration and are an appropriate regulatory tool for addressing potentially disruptive positions
• Maintains the cooperation between self-regulatory organizations and the Commission envisioned by Congress in that the exchanges remain responsible for administering and enforcing exchange-specific limits and protecting the integrity of their markets, while the CFTC retains an oversight role with respect to the administration of exchange limits and is responsible for enforcing aggregate limits to protect the integrity of the broader market
• Allows each exchange to compete based on its liquidity, technology, clearing quality, price and customer service, rather than simply fostering regulatory arbitrage associated with position limits.

Beginning on September 20, for trade date September 21, the Exchange will list the following 11 new financially settled petroleum futures contracts for trading on the New York trading floor and for submission for clearing through CME ClearPort:

The contracts are listed with NYMEX, and are subject to the rules and regulations of NYMEX and Chicago Mercantile Exchange Inc.

Trading Hours (All times are New York time):

The first listed month for these contracts will be the October 2009 contract month. Except for the BALMO contracts, these contracts will be listed for thirty-six consecutive months. The BALMO contracts (W0, Y0, Z0, S5 and T1) will be listed for one month and the following month for 10 business days prior to the start of the contract month.

Fee Schedule:

For further information, please contact Daniel Brusstar at (212) 299-2604.

On September 20, 2009, for trade date September 21, the Exchange Inc. will list the following financially settled petroleum and natural gas liquid futures contracts for trading on the New York trading floor and for submission for clearing through CME ClearPort.

The contracts are listed with NYMEX, and are subject to, the rules and regulations of NYMEX and Chicago Mercantile Exchange Inc.

Trading Hours (All times are New York time):

The first listed month for all seventeen contracts will be the October 2009 contract month. Products 4E, 4F, R9, 5P, 7O, 7Q, 8I, 8K, 8L, and 8M, will be listed for thirty-six consecutive months. Products W7, 5Q and 7W will be listed through the June 2012 contract month. The BALMO products (8O, 8C, R0 and 8J) will be listed for one month and the following month for 10 business days prior to the start of the contract month. The contracts will be financially settled.

Fee Schedule:

For further information, please contact Daniel Brusstar at (212) 299-2604.

Effective Sunday, September 20, 2009 for trade date September 21, 2009, the Exchange will dually list for trading on the NYMEX trading floor and for submission for clearing through CME ClearPort Clearing, a Singapore Fuel Oil 380 cst Swap (Platts) average price options contract. The contract is listed with NYMEX, and subject to the rules and regulations of NYMEX and Chicago Mercantile Exchange Inc.

Contract Specifications:

Fee Schedule:

Please contact Bob Biolsi at (212) 299-2610 should you have any questions.

On Sunday, September 20, 2009 for trade date Monday, September 21, the Exchange will launch the following 18 new cash-settled ERCOT and PJM, peak and off-peak electricity swap futures contracts for trading on the NYMEX trading floor and for submission for clearing through CME ClearPort.

These contracts are listed with NYMEX and are subject to the rules and regulations of NYMEX and Chicago Mercantile Exchange Inc.

The first listed month for the monthly contracts (R5, U1, I1, I2, I5, I6, I9, J1, N1 and O1), will be the October 2009 contract month. Monthly contracts will list current year plus the next five calendar years, consecutively. A new calendar year will be added following the termination of trading in the December contract of the current year. The first listed day for the ERCOT daily contracts (I3, I4, I7, I8, K1, M1, R1 and R4), will be the September 21, 2009 contract day. The daily contracts will list current month plus the next month.

In addition, the Exchange will allow exchange of futures for physical (EFP) and exchange of futures for swap (EFS) transactions to be submitted through CME ClearPort clearing. The EFP and EFS transactions in these futures contracts will be governed by the provisions of Exchange Rule 538.

Fee Schedule: PJM DOM Zone

Fee Schedule: ERCOT

The chapters setting forth the terms and conditions of these new electricity swap futures contracts will be available on the Exchange’s online rulebook.

For further information, please contact Michael O’Neill at (212) 299.2348 or the Energy hotline (212) 299-2301.

Effective Sunday, September 20, 2009, for trade date Monday, September 21, 2009, the Exchange will list the following serial options contracts for trading on the NYMEX trading floor and for submission for clearing through CME ClearPort:

In Delivery Month European Union Allowance (EUA) Serial Options (code 9G)
In Delivery Month Certified Emission Reduction (CER) Serial Options (code 9E)

These contracts are listed with NYMEX and are subject to the rules and regulations of NYMEX and Chicago Mercantile Exchange Inc.

Fee Schedule:

The chapters setting forth the terms and conditions of these contracts will be available on the Exchange’s online rulebook. Margins and position limits will be announced in separate notices.

For further information, please contact Brad Leach at (212) 299-2609.

CME NYMEX Seminar Room New York
World Financial Center
One North End Avenue
New York, NY 10282-1101
Date: September 16-17, 2009

Time: 8 a.m. - 4 p.m. ET
Speaker: Dominick Chirichella
Sponsoring Firm: Energy Management Institute
Cost: $1,895

Taught by acclaimed energy industry expert, this course is filled with tips, techniques and insight that only years of successful energy trading experience can bring.

In two dynamic, information-packed days, you will develop a solid foundation in energy trading as you examine all of the instruments, tools and techniques available to the energy trader today. You will explore the nuances and quirks specific to the energy markets, understand the risks and rewards across sectors and develop a macro view designed to improve your timing and help you develop a successful trading program!

Topics covered include:

• The basics and fundamentals of energy trading.
• The vocabulary of trading.
• The what, why, how and who of trading.
• Energy market structure.
• Market participants.
• The intertwined relationship of fundamentals and futures.
• Technical and fundamental analysis; how and when to combine the two.
• Market behavior.
• System development and testing.
• All about CME NYMEX.
• Real time trading examples for all products in the energy infrastructure using the various technical tools and techniques.
• Visit to the CME NYMEX trading pits to view first-hand real time trading as it occurs.
• What the various energy trading instruments, tools & techniques are and what is encompassed in the profession of energy trading.
• How all of the tools and techniques work.
• How these tools can be applied to the development of a successful trading program.

Currently, approximately 360,000 options spreads per week are pre-listed on CME Globex, commonly known as Exchange-Defined Spreads (EDS). Less than one percent of these EDS have activity. In response to customer and system provider demand, CME Group has chosen to remove all EDS and make all options strategies 100 percent user defined. A User Defined Spread (UDS) is an options spread that a trader creates by defining the underlying legs and their ratios. CME Globex takes the legs and creates a tradable instrument that is disseminated to the entire market. If the created spread matches a known CME Group spread type (e.g., a straddle), CME Globex will properly identify the spread as that specific type.

11/1/2009

• CME Group will add the following as recognized spread types: Jelly Roll, Iron Butterfly, Guts, 3-Way Straddle vs. Call, 3-Way Straddle vs. Put, and Vertical.
   Click here to see list of CME recognized spread types
• CME Group will cease pre-listing options spreads. All options spreads must be created by traders using their trading software’s UDS functionality.
• Horizontals (HO) UDS will be harmonized so all product complexes have the same construction:
  
  • Buy deferred front leg with strike 1
  • Sell near back leg with strike 1