Effective Friday, November 30, 2001, on days when the Fair Value Settlement procedure applies, trading stock index futures and options will cease at 3:15 p.m.  Currently, on fair value settlement days, the stock index products would close at 3:05 p.m.

Fair value settlement procedures are applied on the final business day of each month.  Specifically, domestic stock index futures and options contracts will be settled to an adjusted price that reflects their "fair value." 

Please contact John W. Labuszewski, Director, Clearing Development at (312) 446-7469 for further information.  Thank You.

The following questions and answers are intended to explain the motivation underlying Fair Value settlements and the specific procedures that are observed.