GLOBEX Advisory Notices
To  
From Chicago Mercantile Exchange
Subject CPI and Weather Changes Next Week on GLOBEX(R)
Notice Date 2004-08-22
Notice Number 082204-1
Effective Date  

Dear GLOBEX® Customers,

As a reminder, there are five Chicago Mercantile Exchange product activities affecting GLOBEX next week. Although you may have already received some correspondence from CME on these subjects, we wanted to ensure that you were aware of these changes.

All of the products listed below are available for testing in our certification environment, except for Weather options, since they will be moved off GLOBEX and onto the trading floor effective end of day Friday, July 23, 2004.


  1. Launch of Pacific Rim Weather (futures will launch on Sunday, July 25, 2004; options will launch on Monday, July 26, 2004)
    1. Two new cities: Tokyo and Osaka.
    2. Monthly (G6 = Tokyo and G7 = Osaka) and Seasonal (V6 = Tokyo and V7 = Osaka) products for each city. NOTE: Because the Japanese Monthly and Seasonal indexes are both daily averages they will trade in very similar ranges. However, they are separate and distinct products.
    3. Futures are available exclusively on GLOBEX. GLOBEX hours are 5:00 p.m. - 3:15 p.m. Central time (CT), next day.
    4. Options are available exclusively in the NASDAQ-100 options pit. Options trading hours are 8:30 a.m. - 3:15 p.m. CT.
    5. Both futures and options are block trade eligible. Minimum BT quantity = 20.
    6. The trading floor will "pre-list" the options strikes as follows:
      1. Japanese Monthly options: 0.10-point intervals within +/- 1.00-point range (e.g., 22.10, 22.20, etc.), and 0.50-point intervals within +/- 3.50-point range (e.g., 22.00, 22.50, etc.).
      2. Japanese Seasonal options; 0.10-point intervals within +/- 1.00-point range, and 0.50-point intervals within +/- 3.50-point range.
    7. The maximum eligible options strike listing range is 0.01 - 40.00 for both Monthly and Seasonal options.

  2. Moving all existing Weather options off GLOBEX (effective end of day Friday, July 23, 2004)
    1. All the existing U.S. and European Weather options will trade exclusively in the NASDAQ-100 options pit effective Monday, July 26, 2004. New options trading hours are 8:30 a.m. - 3:15 p.m. CT.
    2. All Weather futures will remain exclusively on GLOBEX. GLOBEX hours will remain 5:00 p.m. - 3:15 p.m. CT, next day.
    3. The trading floor will "pre-list" the Weather options strikes as follows:
      1. U.S. and European Monthly options: 10-point intervals within +/- 100-point range, and 50-point intervals within +/- 350-point range.
      2. U.S. and European Seasonal options: 50-point intervals within +/- 1200-point range.
    4. The new maximum eligible options strike listing ranges are:
      1. U.S. Monthly CDD options: 1-point interval within 1 - 1500-point range.
      2. U.S. Monthly HDD options: 1-point interval within 1 - 3200-point range.
      3. U.S. Seasonal CDD options: 1-point interval within 1 - 7500-point range.
      4. U.S. Seasonal HDD options: 1-point interval within 1 - 15500-point range.
      5. European Monthly CAT options: 1-point interval within 1 - 1300-point range.
      6. European Monthly HDD options: 1-point interval within 1 - 1700-point range.
      7. European Seasonal CAT options: 1-point interval within 1 - 6500-point range.
      8. European Seasonal HDD options: 1-point interval within 1 - 8500-point range.
    5. Effective Sunday, July 25, 2004, CME Clearing House will only "dynamically list" new Weather options (i.e., only list new strikes when they actually trade).

  3. Launch of CPI Packs and Bundles (effective Sunday July 25, 2004)
    1. Adding nine CPI packs and six CPI bundles to GLOBEX exclusively.
    2. Minimum trade price increment is .0025 (1/4-tick).
    3. Same GLOBEX Group Code ("CU") as existing CPI futures and calendar spreads.
    4. Same leg pricing process as existing Eurodollar packs and bundles.

  4. Increase GLOBEX Max Order Entry Quantity for CPI Outrights, Spreads, and new Packs and Bundles
    1. Increases from 1000 to 5000.

  5. Listing Australian Dollar options and New Zealand Dollar options on GLOBEX (effective Sunday, July 25, 2004)
    1. Listing one Quarterly and two Serial months (initially Sep 2004, and Aug and Oct 2004).
    2. Options are not listed side-by-side.
    3. Options trading hours are:
      1. GLOBEX 5:00 p.m. (start of trade date) - 7:05 a.m. CT.
      2. Trading Floor 7:20 a.m. - 2:00 p.m. CT.
      3. GLOBEX 2:00 p.m. - 4:00 p.m. CT (end of trade date).

If you have any questions regarding these changes, please feel free to contact your GLOBEX Account Manager at 312.634.8700 or at GLOBEX Account Management.

Thank you,

Chicago Mercantile Exchange