Under the amended rule, a related party is defined to include a clearing member or firm that (1) owns, directly or indirectly, 100% of a clearing member or (2) has 100% ownership, direct or indirect, in common with a firm that owns, directly or indirectly, 100% of a clearing member. To receive the benefits discussed above, the membership and Class Share held pursuant to Rule 106.I. may be held by the clearing member itself or by any entity in the 100% related party structure. It is no longer required that the membership and Class B Share be held at the top of the corporate structure to allow all 100% related entities to receive preferential clearing and performance bond rates on their proprietary trading.

Thus, all 100% related parties, as defined in the rule, are entitled to member clearing fees and performance bond rates on their proprietary trading in the division of membership held independent of the position of the Rule 106.I. membership.

The rule amendments and resulting changes to CME’s clearing fee policies for Rule 106.I. members became effective ons, please call the Audit Department at (312) 930-3230 or e-mail us July 9, 2003. In the formal rule change below, additions are underlined and deletions are lined-out. If you have any questions, audits@cme.com.

106.TRANSFERS, SECURITY TRANSACTIONS, AND AUTHORIZATIONS TO TRANSFER OR SELL

106.I. Related Party Employee Transfers

A "related-party" shall be defined to includea clearing member or a firm that either: 1)owns, directly or indirectly, 100% of a clearing member or2)that has 100% ownership, direct or indirect, in common with a firm that owns, directly or indirectly, 100% of a clearing member.

A membership and associated Class B Share may be owned bya clearing member or non-member firm under this Rule. The membership may be transferred to an employee of a related party that directly or indirectly owns or is owned by all other related parties within the organization of related parties and be transferred among its employees provided that: (1) the transfer is approved by Exchange staff; (2) the transferee is approved pursuant to the rules of the Exchange; and (3) the transfer is for the legitimate business purposes of the firm. The firm related party shall have the right, at any time, to have the employee disqualified from trading, but must have him disqualified upon termination of his employment with the firm. Notice to have the employee disqualified from trading must be given to the employee's qualifying clearing member. The clearing member or non-member firm shall designate on a form provided by the Exchange a representative who shall be authorized to deal with the Exchange with respect to the membership and associated Class B Share transferred under this Section.

A Rule 106.I. membership may not be transferred pursuant to Rule 106.C., D., F. or G. The membership and associated Class B Share may not be assigned for clearing purposes under Rule 902.

Rule 106.I. non-member firm benefits apply to the proprietary trading activity of any related party within the 100% related party structure. All proprietary positions of the non-member firm and its related parties must be carried by a clearing member(s) in accounts separate from positions of affiliates, subsidiaries, customers and other entities. A current list of all related parties of Rule 106.I. members must be submitted to the Audit Department.

A Rule 106.I. non-member firm may not hold itself out to the public as an Exchange member.

Exchange staff may grant exemptions from the requirements of this Rule.