NOTICE OF EMERGENCY ACTION

SUBJECT:

Modification of Feeder and Live Cattle Futures Price Limits

APPLICABLE CME RULE:

402.C. BUSINESS CONDUCT COMMITTEE — Emergency Actions (in part)

The BCC is authorized to determine whether an emergency exists and whether emergency action is warranted. The following events and/or conditions may constitute emergencies:

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6. Any other circumstance which may have a severe, adverse effect upon the functioning of the Exchange, except that declarations of Force Majeure and actions taken with respect to such declarations will be governed by the provisions of Rule 701.

If the BCC determines that an emergency exists it may take various actions including:

7. Modify price limits.

EMERGENCY ACTION:

On December 17, 2014, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) took emergency action regarding the price limits in Feeder and Live Cattle Futures. In the good faith exercise of its sole discretion, the Panel determined that the fact that daily price limits for Feeder Cattle Futures traded limit down for 5 consecutive days may have a severe, adverse effect upon the functioning of the Exchange within the meaning of CME Rule 402.C and the integrity of trading in both Feeder Cattle and Live Cattle Futures Contracts. Thus, the Panel determined that an emergency exists and that emergency action is warranted.
Pursuant to Rule 402.C.7, effective December 18, 2014, the daily price limits for Feeder Cattle Futures will be changed from $3.00 per hundred weight (cwt) to $4.50 cwt.

In addition, the following expanded daily price limits will be effective beginning December 19, 2014: The daily limits would expand to $6.75 per cwt in Feeder Cattle Futures and $4.50 per cwt in Live Cattle Futures if either of the first two listed contract months settle at a limit on a single business day. If neither of the first two listed contract months settle at the expanded limit, then the daily limits for all contract months would revert to the initial levels of $4.50 per cwt for Feeder Cattle and $3.00 per cwt for Live Cattle.

EFFECTIVE DATE:

December 18, 2014