Clearing House Advisory Notice
To | Chief Financial Officers, Back Office Managers
From | CME Clearing House
Subject | Change to Chicago Mercantile Exchange Inc. (�CME�) Security Deposit Procedure
Effective Date | 11/08/01
Notice Number | 01-80
Consistent with changes recently made to CME Rule 816, CME will soon initiate changes in its custody practices relating to Treasury and agency securities posted with the CME in satisfaction of clearing firm security deposit requirements Specifically, CME will, on Tuesday, November 13, 2001 begin the process of concentrating clearing firm Treasury and agency securities posted with the CME to satisfy clearing firm security deposit requirements to a new custody account established at The Bank of New York (�BONY�). The Clearing House will coordinate with each clearing firm as appropriate to establish the �effective date� of this change. The delivery instructions for the new account are: The Bank of New York Account: BK OF NYC/CMEL Account name: CME Security Deposit Account After the effective date established for each clearing firm, any delivery of a Treasury or an agency security that a clearing firm intends to make in conjunction with its security deposit requirement should utilize the delivery instructions above. After the effective date established for each clearing firm, clearing firms who wish to withdraw excess securities posted to the CME in satisfaction of security deposit required are free to utilize existing procedure. CME will ensure that the security is delivered to the appropriate custodian and clearing firm account, from its account at BONY. Please also note that, consistent with existing procedure, CME will automatically transmit security maturity and coupon payments from its account at BONY to bank accounts currently utilized by each clearing firm. Additionally, please note that CME has developed the capability to transmit clearing firm asset balance and asset transaction information via electronic file transmission.For further information concerning this interesting new functionality, please check out the CME website at www.cme.com\clearing services\secure.cme.com\financial unit. Questions on any of the above can be addressed to Tim Doar, Director, Financial Management, at 312/930-3162; or Tim Golomb, Associate Director, Financial Management, 312/930-3194.