Please be advised that beginning Thursday, May 20, 2004, the Exchange will allow flexible strike prices for Average Price Options executed on the Exchange as part of an Exchange of Options for Options (EOO) transaction. Specifically, the Exchange will allow any positive strike price at dollars and cents per barrel for Crude Oil Average Price Options. Once an EOO transaction on a particular option series occurs at a flexible strike price, it will then become eligible for floor trading. Heating Oil (AT) and Unleaded Gasoline (AU) Average Price Options will continue to be restricted to their standard strike price increment of $.01/gallon. A copy of Rule 300.20 follows.
Rule 300.20 - Strike Price Listing Procedures
(A) In addition to strike prices authorized pursuant to other Rules or Resolutions, the President of the Exchange or his designee may direct that additional strike prices be added provided they may be listed only in increments consistent with the pricing for the underlying futures contract.
(B) Such directed strike prices shall be effective upon adoption. Notice of such adoption must be given by the Exchange to the CFTC pursuant to Commission Regulation ยง 1.41(n) in such fashion that the CFTC receives such notice within three business days of the strike price listing. |
