Clearing House Advisory Notice
To | Chief Financial Officers, Back Office Managers
From | Clearing House Department
Subject | 2 New Eligible Stocks & Updated 2nd Quarter 2003, Stock List
Effective Date | 04/08/03
Notice Number | 03-26
Effective immediately, CME is pleased to announce the addition of SPDR Trust Series (ticker SPY, CUSIP 78462F103) and ISHARES S&P 500 Index Fund (ticker IVV, CUSIP 464287200). CME accepts shares of certain equity stocks for customer & house segregated performance bond collateral. The CME�s Repo account number at DTC for customer segregated stock activity is 858, while the CME�s house non-segregated origin Repo account number is 059. CME implemented its Stock Program to enable clearing members to post shares of selected stock with the Clearing House to satisfy reserve and concentration performance bond requirements. With three-tiered performance bond requirements, the total performance bond requirement consists of three amounts. The CORE performance bond requirement represents that portion of the total performance bond requirement, which must be satisfied using the most liquid forms of collateral. Core collateral includes all types of collateral currently accepted, recognizing the current restriction on the use of Letters of Credit and U.S. Government Agency securities whereby a clearing member may meet the first five million dollars of its core requirement and 50% of the remainder of the core requirement using letters of credit and U.S. Government Agencies. RESERVE and CONCENTRATION performance bond requirements are set from time to time by the board and are equal to that portion of the total performance bond requirement, which may be met using reserve collateral. Reserve collateral includes all core collateral plus shares of stock eligible for the Stock Program. There also is no limitation on the amount of letters of credit or U.S. Government Agencies used to satisfy the reserve performance bond requirements. Complete Content of Advisory 03-26 Currently, the clearing level performance bond requirement in the S&P Stock Index Futures are displayed in the file document below: 2ND QUARTER 2003, STOCK LIST Please see the web page at www.cme.com/financialunits for up to date information.