UPDATE #1: At final settlement, options which are not in-the-money will have a normal final settlement price of 1 -- not a variable cabinet price of 1.  Variable cabinet prices will never appear as settlement prices for these options, either at final settlement or previously.

The Chicago Board of Trade (CBOT) plans to launch trading Binary Options on Target Fed Funds. These contracts are expected to launch on July 12, 2006.  These documents describe how these products will be handled in CME Clearing, and in particular how processing in the clearing system will allow firms to support these products with minimal modification to bookkeeping systems.