Chicago Mercantile Exchange

Clearing House Advisory Notice

Volume 99-72

August 25,1999

To: Clearing Member Firms

Attn: Back Office Managers

Delivery Personnel

From: Clearing House Department

Re: Important Currency Delivery Reminders

# SOUTH AFRICAN RAND

There is a dual order-to-pay requirement for the South African Rand. Clearing firms who will be delivering the South African Rand must submit an order-to-pay for the value of the Rand delivery by 10:00 a.m. (Central Time) on the day preceding the delivery day. The appropriate agent bank must receive the payment for the order-to-pay no later than 10:00 a.m. local time on the delivery day.

# NEW ZEALAND DOLLAR

New Zealand dollar payments must be made via the New Zealand Real Time Gross Settlement System (RTGS). Citibank cannot confirm receipt of payment sent via any other payment system until the next business day after the Wednesday settlement date. All clearing firms need to understand any special account or funding requirements that approved New Zealand delivery banks may have. It is also important that each firm determines which specific individuals at the New Zealand delivery bank will be aware of the New Zealand dollar payments.

# MEXICAN PESO

Funding for Mexican Peso must be in place prior to the delivery. Peso payments are to be made via the Mexican Interbank payment system “SPEUA” (“Spay-wah”). In addition to understanding any special account or funding requirements that approved Mexican delivery banks may have, it is important to have a specific individual aware of and in a position to answer any questions regarding peso payments on the delivery day.

# CURRENCY CROSS-RATES

There is usually a dual order-to-pay requirement for firms involved in currency cross-rates. Special rules apply to determine if order-to-pay issuance is necessary for firms netting payment obligations arising from cross-rate products. Basically, if the netted foreign cash payment obligation is associated with a cross-rate product on a prenetted basis, an order-to-pay must be issued. The same reasoning is used in determining orders-to-pay for netted dollar payment obligations.

If there are any questions, please call the Deliveries Unit at (312) 930-3172.