NEW SETTLEMENT PROCEDURES FOR COMEX GOLD AND SILVER FUTURES EFFECTIVE FRIDAY, FEBRUARY 26, 2010

Effective Friday, February 26, 2010, new settlement procedures will be implemented in COMEX Gold and Silver futures contracts such that the active month in these products (in accordance with the schedule set forth below) will be settled by Exchange staff pursuant to Rule 813 (“Settlement Price”) based solely upon CME Globex activity during the defined settlement time period (1:29:00 – 1:30:00 p.m. Eastern Time (“ET”) for Gold, 1:24:00 – 1:25:00 p.m. ET for Silver).

Staff will settle the active month of each contract at the volume weighted average price (“VWAP”) of the outright trades executed on CME Globex during the above referenced defined settlement time periods, rounded to the nearest tradable tick.  In the absence of outright trades during this period, the settlement price will be the best bid or offer in the expiring contract at the close of the market that is closest to the last traded price.  If there is no bid or offer in the expiring contract at that time, the settlement price will be implied from the bid/offer in the active spread at the close of the market, at the price which is closest to the last outright trade price in the expiring contract.

Contract months other than the active month will be settled by staff in conjunction with market participants based upon relevant spread relationships on CME Globex and the trading floor.  The greatest weight will be given to spreads traded in larger volumes later in the trading day, either on the trading floor or on CME Globex.  In the absence of trading activity, spread bids/offers actively represented either on the trading floor or on CME Globex will determine the settlements.

In the event there is insufficient activity to make the aforementioned calculations, staff may rely on earlier data or other available market information to determine an appropriate settlement price.

The active months will roll based on the following schedules:

Notwithstanding the foregoing, in the event the aforementioned calculations cannot be made or if staff, in its sole discretion, determines that anomalous activity yields results that are not representative of the fair value of the contract, staff may determine an alternative settlement price.

Questions regarding this advisory may be directed to the following individuals:

Bill Doherty, Director, Settlements, at 212.299.2925

Michael Hillebrenner, Manager, Settlements at 212.299.2865

Michael Cazakoff, Settlements Analyst, at 212.299.2934

Tom Lord, Director, Settlements, at 312.341.3116