| The Clearing House Performance Bond Staff reviewed price volatility statistics for the Eurodollar, Lumber and Milk contracts and approved the performance bond requirement changes described below. The Milk and Eurodollar requirements will become effective at the close of business Monday, June 18, 2001 . The Lumber requirements will become effective at the close of business on Monday, July 2, 2001 and Monday, July 9, 2001. For a complete listing of all Exchange minimum Performance Bond Requirements, please consult the SPAN� Minimum Performance Bond Requirements. SPAN� MINIMUM PERFORMANCE BOND REQUIREMENTS Agricultural Products, Outrights (Effective Monday, June 18, 2001) BFP Milk (DA) [ Mo. 02-05] Rate Type | Change | Current Initial | Current Maintenance | New Initial | New Maintenance | Spec | Increase | $945 | $700 | $1,485 | $1,100 | Hedge/Member | Increase | $700 | $700 | $1,100 | $1,100 |
BFP Milk (DA) [ Mo. 06-12] Rate Type | Change | Current Initial | Current Maintenance | New Initial | New Maintenance | Spec | Increase | $945 | $700 | $1,485 | $1,100 | Hedge/Member | Increase | $700 | $700 | $1,100 | $1,100 |
Class IV Milk (DK) [ Mo. 02-05] Rate Type | Change | Current Initial | Current Maintenance | New Initial | New Maintenance | Delivery Month � Spec | Increase | $1,080 | $800 | $1,350 | $1,000 | Delivery Month - Hedge/Member | Increase | $800 | $800 | $1,000 | $1,000 |
Class IV Milk (DK) [ Mo. 06-12] Rate Type | Change | Current Initial | Current Maintenance | New Initial | New Maintenance | Spec | Increase | $1,080 | $800 | $1,350 | $1,000 | Hedge/Member | Increase | $800 | $800 | $1,000 | $1,000 |
Interest Rate Products, Intra-Commodity Spreads Eurodollar (ED) - All Months Butterfly [ Mo. 8 - Subsequent] Rate Type | Change | Current Initial | Current Maintenance | New Initial | New Maintenance | Spec | Decrease | $68 | $50 | $34 | $25 | Hedge/Member | Decrease | $50 | $50 | $25 | $25 |
Eurodollar (ED) - All Months Condor [ Mo. 8 - Subsequent] Rate Type | Change | Current Initial | Current Maintenance | New Initial | New Maintenance | Spec | Decrease | $68 | $50 | $34 | $25 | Hedge/Member | Decrease | $50 | $50 | $25 | $25 |
Agricultural Products, Outrights (Effective: Monday, July 2, 2001) Lumber (LB) (Delivery Month) Rate Type | Change | Current Initial | Current Maintenance | New Initial | New Maintenance | Delivery Month � Spec | Increase | $1,950 | $1,300 | $3,300 | $2,200 | Delivery Month - Hedge/Member | Increase | $1,300 | $1,300 | $2,200 | $2,200 |
Effective: Monday, July 9, 2001 Lumber (LB) (Delivery Month) Rate Type | Change | Current Initial | Current Maintenance | New Initial | New Maintenance | Delivery Month � Spec | Increase | $3,300 | $2,200 | $4,950 | $3,300 | Delivery Month - Hedge/Member | Increase | $2,200 | $2,200 | $3,300 | $3,300 |
Short Options Minimum Short Option Minimum Changes Under the SPAN Performance Bond methodology, performance bond requirements on short option contracts change on a day-to-day basis as the volatility of the underlying contract changes. The short option minimum is simply an indication of the minimum performance bond requirements, which is imposed on short option positions. In most cases, the SPAN performance bond requirements on short option positions will exceed the short option minimum. Please consult with your clearing member firm or the Clearing House for specific details on SPAN Short Option Minimum Performance Bond. | Current | New | BFP Milk | $20 | $28 | Class IV Milk | $20 | $25 |
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