Chicago Mercantile Exchange

Clearing House Advisory Notice

99-67

July 23, 1999

TO: Clearing House Personnel

ATTN: Back Office Managers

Margin Managers

Service Bureau Representatives

FROM: Risk Control Department

SUBJECT: Performance Bond Requirement Changes

This document can now be received electronically. Send an E-Mail to lists@cme.com with the test "subscribe pbrates" in the body of the message to subscribe.

The Clearing House Performance Bond Committee reviewed price volatility statistics for the Lean Hog and BFP Milk contracts and approved the performance bond requirement changes described below.

These requirements will become effective, under Rule 403, at the close of business, Tuesday, July 27, 1999.

For a complete listing of all Exchange minimum Performance Bond Requirements, please consult the SPANŽ minimum Performance Bond Requirements. Or log on to the CME website http://www.cme.com/clearing/pbrates

SPANŽ MINIMUM PERFORMANCE BOND REQUIREMENTS

Agricultural Products, Outrights

Commodity | CURRENT | NEW
Speculative Initial | Maintenance & Hedge / Member | Speculative Initial | Maintenance & Hedge / Member
Lean Hogs (Increase) | $1,080 | $800 | $1,215 | $900
BFP Milk (Mos. 4 - 5) (Increase) | $810 | $600 | $1,215 | $900

Agricultural Products, Outrights, Continued

Commodity | CURRENT | NEW
Speculative Initial | Maintenance & Hedge / Member | Speculative Initial | Maintenance & Hedge / Member
Frozen Pork Bellies (Increase) | $1,620 | $1,200 | $1,755 | $1,300
Frozen Pork Bellies (Delivery Month) (Increase) | $1,620 | $1,200 | $1,755 | $1,300

Agricultural Products, Short Option Minimum

Commodity | CURRENT | NEW
Lean Hogs (Increase) | $20 | $23
Frozen Pork Bellies (Increase) | $30 | $33

Please contact the Risk Control Department at (312)648-3888, if you have any questions regarding these performance bond changes.