Market Data Advisory Notices
To Quote Vendors
From Market Data Operations
Subject Agricultural Strike Range Listings to Reset - Effective August 17, 2008
Notice Date 2008-07-31
Notice Number Q2008-153
Effective Date 2008-08-17

Customer demand necessitates changes to the Corn, Wheat, Oats, Soybeans, Rough Rice, Soybean Oil, and Soybean Meal strikerangelistings by resetting the strike ranges quarterly based on the current market reference price. This change will be available for testing in the New Release environment August 3, 2008 and will be introduced to production for trade date August 17, 2008.

Strike Listings

Description

Corn, Wheat, Oats

Serial months list 5 cent strike intervals within 25% of reference price (545.0, 550.0, 600.0)

 

Quarterlies months list 10 cent strike intervals within 50% of reference price (550.0, 560.0, 570.0)

 

When Quarterly becomes the second deferred month, 5 cent interval strikes within 25% of reference price are added

Soybeans

Serial months list 10 cent strike intervals within 25% of reference price (550.0, 560.0, 570.0)

 

Quarterlies months list 20 cent strike intervals within 50% of reference price (560.0, 580.0, 600.0)

 

When Quarterly becomes the second deferred month, 10 cent interval strikes within 25% of reference price are added

Soybean Oil

List 1/2 cent strike intervals within 50% of reference price (25.000, 25.500, 26.000)

Rough Rice

List 20 cent strike intervals within 50% of reference price (1780.0, 1800.0, 1820.0)

Soybean Meal

List $5 strike intervals below $200 and $10 strike intervals above $200 within 50% of reference price (195, 200, 210)



 

Using Corn as an example, assume it is March 1 and the March Corn contract settles at 600 cents (i.e., $6.00). To calculate the number of 10 cent strikes for the following quarter, multiply 600 by 50% and then divide by 10, resulting in 30 ten cent strikes above the ATM and 30 ten cent strikes below the ATM.

 

Please contact Market Data Operations (MDO) at mdo@cmegroup.com, if you have any questions concerning this notice.