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1. Resting bids and asks on CME Globex with consideration given to trades executed on Globex throughout the day.
2. Price data obtained from a cross section of the OTC brokers collectively representing buyers and sellers in the OTC markets.
3. Price data obtained from OTC market participants.
4. Price data from other sources deemed reliable and accurate.

****Pending Regulatory Approval Effective Trade Date June 13^th*******

Steel Futures Settlement Procedures (HR, BUS, HDG, EHR) 

Normal Daily Settlement Procedure 

CME Group staff determines the daily settlements for U.S. Midwest Domestic Hot-Rolled Coil Steel (CRU) Index Futures (HRC), U.S. Midwest Busheling Ferrous Scrap (AMM) Futures (BUS), U.S. Midwest Domestic Steel Premium (CRU) Futures (HDG) and North European Hot-Rolled Coil Steel (Argus) Futures (EHR) based on outright trading activity on CME Globex (Globex) and CME ClearPort (CPC) between 12:30:00 and 13:00:00 Central Time (CT), the settlement period. 

Tier 1:  If there are outright trades in a given contract month on Globex or CPC during the respective settlement period, then that month settles to the volume-weighted average price (VWAP) of the trade(s) during this period. 

Tier 2:  If no trades in a given contract month occur during the respective settlement period, then the contract month settles to the last trade on either Globex or CPC that occurred between 04:00:00 and 12:30:00 CT. If the last trade is below a Globex bid or above a Globex ask that is active at the end of the respective settlement period, the settle will be adjusted to the Globex bid or Globex ask. 

Tier 3:   If no trades occur between 04:00:00 and 13:00:00 CT and there is a Globex bid higher than the previous days settlement price or a Globex ask that is lower than the previous days settlement price, the settle will be adjusted to the Globex bid or Globex ask. If the previous days settlement is between the Globex bid/ask at the end of the respective settlement period, that contract months settle will be adjusted to the net change of the previous listed contract month. If the resulting settlement from the previous listed contract month’s net change is below a Globex bid or above a Globex ask that is active at the end of the respective settlement period, the settle will be adjusted to the Globex bid or Globex ask. 

Tier 4:   If no trades occur between 04:00:00 and 13:00:00 CT and there is no Globex bid or Globex ask active at the end of the respective settlement period, that contract months settle will be adjusted to the net change of the previous listed contract month.  

Final Settlement Procedure 

HRC – COMEX RulebookChapter 920 

BUS – COMEX RulebookChapter 601 

HDG – COMEX RulebookChapter 969 

EHR – COMEX RulebookChapter 971