Chicago Mercantile Exchange

Clearing House Advisory Notice

99-107

December 6, 1999

To: Clearing Member Firms

Chief Financial Officers

Back Office Managers

From: CME Clearing House

Subject: New Pass-Through Letter of Credit Format

On Tuesday, November 30, 1999, the CME Performance Bond Committee approved a new pass-through letter of credit format for use at the CME. The new pass-through letter of credit format, a copy of which is attached for informational purposes, is patterned after the industry standard letter of credit format developed by the Unified Clearing Group (“UCG”). This new letter of credit format should be utilized for any new letter of credit that your firm intends to post to the CME in satisfaction of performance bond requirements on or after January 3, 2000.

The new pass-through letter of credit format differs from the UCG standard letter of credit format in two principal respects. First, the pass-through letter of credit format provides for joint beneficiaries (see cover page). Second, sections 5 and 6 (and associated exhibits) of the UCG standard letter of credit format, which concern transferability, have been eliminated from the new pass-through letter of credit format.

Also attached is a two-page set of “Instructions”, which pertains primarily to how the cover page of the pass-through letter of credit should be executed, so as to be in compliance with CME requirements.

Questions concerning any of the above can be addressed to Mr. Tim Golomb, Financial Manager, at 312-930-3194, or to Ms. Dora De La Paz, Financial Project Manager, at 312-930-3171.

Please see the Irrevocable Standby Letter of Credit and The Instructions PDF files. You need to have Adobe acrobat reader to be able to view it and print it. Log on to this website to download Adobe Reader free.