The Chicago Mercantile Exchange rigorously enforces an integrated package of financial surveillance and risk management procedures, commonly referred to as the Financial Safeguard System of the Exchange. The system is designed to protect all clearing members and their customers from the consequences of default by a participant in the clearing structure. To maintain the highest level of protection, the financial safeguard system is continuously updated to reflect the most advanced risk management and financial surveillance techniques.

The CME�s financial safeguard system is second to none, providing clearing firms, customers and the market with the finest protection in the world. A copy of the 1998 Financial Safeguard System booklet is enclosed for your review.

If you have any questions, or would like additional copies, please call the Audit Department at (312) 930-3230 or e-mail us at audits@cme.com.