GLOBEX Advisory Notices
To  
From Chicago Mercantile Exchange
Subject X-Funds Index Futures on GLOBEX(R)
Notice Date 2004-09-20
Notice Number 09202004-1
Effective Date  

Dear GLOBEX® Customers,

The new X-Funds Index futures contracts will be launching exclusively on GLOBEX October 4, 2004.

The X-funds products listed below are now available for testing in our certification environment. The first symbol available in the certification environment is X1V401 (X-fund designer #1, expiring on October 1, 2004).

Please see below for more information on the X-funds.


CONTRACT NAME: X-Funds Index Futures (Up to 5)
LISTING DATE: October 4, 2004
DESCRIPTION: X-funds are short-dated futures contracts that have a two-week life span. Each X-fund is comprised of underlying "components" (contracts traded at Chicago Mercantile Exchange and Chicage Board of Trade), which may be either long or short. The X-funds are designed and managed by Commodity Trading Advisors and individuals known as "fund designers". No actual positions are taken in the individual components that comprise the X-funds. Also, positions in the X-funds must be re-established upon expiration, as there is no automatic roll. CME will notify customers after 3:45 p.m. Central time (CT) each Thursday prior to the next designated Monday trading session during which X-Funds will be available for a 2-week trading cycle.
  Because there will be more than one expiration within a given month, X-funds will be treated like "futures to the day" (analogous to Eurodollar Forward Rate Agreement (FRA) futures). That is, each contract will be identified not only by the contract month and year, but also by the specific day of the month on which it expires. The following table details how they will be identified:
First Trade Date Last Trade Date and Expiration Date Clearing Code and "Contract Date" GLOBEX ID
October 4, 2004 October 15, 2004 X1 20041015 X1V415
October 18, 2004 October 29, 2004 X1 20041029 X1V429
November 1, 2004 November 12, 2004 X1 20041112 X1X412
CONTRACT SIZE: $1,000.00 times the X-Funds Index
TRADING HOURS: 10:00 a.m. CT on the first Monday that begins the 2-week trading cycle (or on the following business day, if Monday is a holiday), to 3:15 p.m. CT; then 7:20 a.m. CT to 3:15 p.m. CT each day thereafter within the two-week trading cycle. (3:15 p.m. CT on last trading day).
TRADING VENUE: GLOBEX only
VALID CONTRACTS: Bi-weekly contracts; there will be up to 26 contracts per year for each fund, but only one contract may be listed per fund at any time.
COMMODITY CODE: X1 (for XFUND1), X2 (for XFUND2), X3 (for XFUND3), X4 (for XFUND4), and X5 (for XFUND5)
TICKER SYMBOL: X1 (for XFUND1), X2 (for XFUND2), X3 (for XFUND3), X4 (for XFUND4), and X5 (for XFUND5)
MINIMUM PRICE INTERVALS: 0.10 Index Point
VALUE PER TICK: 0.10 Point = $100.00
TERMINATION OF TRADING: Trading shall terminate at 3:15 p.m. CT as specified at the commencement of trading in a particular X-Fund Index futures contract.
FINAL SETTLEMENT PRICE: All futures contracts remaining open at the termination of trading shall be settled using the X-Fund Index reported by the CBOT for that contract period. The Final Settlement Price is calculated to .01 decimal places.
DELIVERY: Cash-settled to the X-Fund Index, published by the CBOT for that contract period.
POSITION LIMITS: 1000 Contracts in any one X-fund
MINIMUM REPORTABLE LEVEL: 25 contracts
CFTC REPORTABLE NUMBER: Contact Judy Sepsey, CFTC, or Maggie Sweet at 312.596.0609
PERFORMANCE BOND REQUIREMENTS: To be published by the Clearing House
CLEARING FEES: To be published by the Audit Department
PRICE CONVENTIONS:
  Trade Price
Actual Price 108.60
TREX/TES Format 10860
Unmatched Trade Notice 10860
Trade Register File 10.860
Settlement Price File 10860
SPAN File 10860
GLOBEX Price Entry 10860
GLOBEX Cabinet Price N/A
APS File Format 10860

FOR FURTHER INFORMATION, CONTACT:

cme.com Inquiries Customer Service (800) 331-3332
General Information: Lisa Amato (312) 338-2654
  Steve Mazur (312) 930-2035
GLOBEX Information: GLOBEX Control Center (312) 456-2391
Performance Bond Information: Risk Management Dept. (312) 648-3888
Position Limits: Ken Lovett (312) 930-3257
Settlement/Delivery Information: Morgan Culverhouse (312) 930-2892

Thank you,

Chicago Mercantile Exchange