Update on Previously Announced Revisions to Settlement Procedures

On December 12, 2011, CME Group issued Special Executive Report S-6048 advising the marketplace of planned changes to the settlement procedures in CBOT agricultural futures and CME livestock futures which would incorporate both Floor-based activity and Globex-based activity into settlement determinations. The Special Executive Report further indicated that the transition to the new settlement procedures was anticipated to occur during March and April 2012, pending final determinations regarding the details of the new settlement methodologies and relevant CFTC regulatory review periods. 

 

Given consideration of significant market feedback following the release of S-6048, the dialogue with the CFTC and the need for adequate marketplace notification regarding the operational details of any prospective changes to the settlement methodologies, no changes to settlement procedures will be implemented in March or April. 

 

Beginning in June 2012, the CBOT agricultural futures will transition to a blended settlement methodology using volume-weighted prices from both Floor-based activity and Globex-based activity. Further information on the specific methodology to be employed and the specific implementation dates will be communicated via Special Executive Report when final details are available.  

 

Additionally, decisions regarding settlement procedures in CME Livestock futures contracts have yet to be finalized pending ongoing dialogue with the CFTC. Further information will be communicated with respect to CME Livestock futures when it becomes available.

 

Questions may be directed to:

Julie Holzrichter at 312.930.3208 or Julie.Holzrichter@cmegroup.com or

Dean Payton at 312.435.3658 or Dean.Payton@cmegroup.com.