Revisions to CME Rule 542 ("Simultaneous Spread and Combination Transactions")

Effective on April 5, 2012, CME will adopt revisions to CME Rule 542 ("Simultaneous Spread and Combination Transactions") to eliminate a legacy restriction that required FX spread and combination transactions trading at a non-integer tick price to contain four or fewer legs. This restriction was deemed no longer necessary provided that the net absolute price differential or aggregate combination price of the spread or combination transaction remains five ticks or less. Additionally, language in the Rule concerning two- and three-legged FX option spread and combination transactions that included only purchases or only sales was also deemed obsolete and has been eliminated.

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