Variable Tick Threshold Change for CME Equity Options

GLOBEX Advisory Notices

CME Globex Customers

From

CME Globex Account Management

Subject

Variable Tick Threshold Change for CME Equity Options

Notice Date

2006-03-09

Notice Number

030906-4

Effective Date

2006-03-09

Dear CME Globex Customers,

Effective Sunday, April 2, 2006 (trade date April 3), to better support spread trading, CME is increasing the variable tick threshold from 3.00 to 5.00 index points for the following options on futures and option spreads:

This change will be available for testing in the CME certification environment Monday, March 20, via the 8A (equivalent to the CME E-mini S&P 500 options) and 8B (equivalent to the CME S&P 500, CME S&P 500/Citigroup Growth and CME S&P 500/Citigroup Value options).

Options on Futures	Current Variable Tick Threshold	New Variable Tick Threshold
CME E-mini S&P 500	Premiums > 3.00 = 0.25 tick Premiums < 3.00 = 0.05 tick	Premiums > 5.00 = 0.25 tick Premiums < 5.00 = 0.05 tick
CME S&P 500	Premiums > 3.00 = 0.10 tick Premiums < 3.00 = 0.05 tick	Premiums > 5.00 = 0.10 tick Premiums < 5.00 = 0.05 tick
CME S&P 500/Citigroup Growth	Premiums > 3.00 = 0.10 tick Premiums < 3.00 = 0.05 tick	Premiums > 5.00 = 0.10 tick Premiums < 5.00 = 0.05 tick
CME S&P 500/Citigroup Value	Premiums > 3.00 = 0.10 tick Premiums < 3.00 = 0.05 tick	Premiums > 5.00 = 0.10 tick Premiums < 5.00 = 0.05 tick

For more information, please contact Tom Boggs, CME Equity Products, at 312.930.3038; or Ariel Hantin, CME Research & Product Development, at 312.559.4951; or your CME Globex Account Manager at 312.634.8700; or in Europe at +44.201.623.2550.

Thank you,

CME