OFFICAL EXPIRATION TIME FOR UNEXERCISED KCBT WHEAT OPTIONS

Pending all relevant regulatory review periods, effective the week of September 23, 2013,KCBT Rule 2514.00 will be changed to indicate that unexercised KC HRW Wheat Standard, Serial, Weekly, and Short-Dated New Crop Options expire at 7:00 p.m. CT on their last trading day. This change is semantic in nature and does not affect option exercise. Currently options stop trading at 1:15 p.m. CT on their last trading day. Contrary instructions to exercise out-of-the-money options or prevent automatic exercise of in-the-money options will continue to be due by 6:00 p.m. CT on the last trading day and all assignments will continue to be issued after 6:00 p.m. CT on the last trading day. KCBT Rule 2514.00 indicates that the remaining unexercised options expire at 10:00 a.m. CT on the Saturday following the last trading day. Consistent with CBOT Wheat option products, Rule 2514.00 will be updated to indicate that the unexercised options expire at 7:00 p.m. CT on the last trading day.

The planned Rulebook changes are attached with additions bold and underlined and deletions [bracketed with strikethrough].

a. For options months in the ordinary cycle; no trades in options expiring in the current month shall be made after 1:15 p.m. on the last Friday which precedes by at least two (2) business days, the first notice day for the corresponding futures contract.

b. For serial options months (months outside the ordinary cycle); no trades shall be made after 1:15 p.m. on the Friday which precedes by at least two (2) business days, the last business day of the calendar month immediately preceding the option serial month, (for example, for November serial options contracts, the last trading day is the Friday which precedes by at least two (2) business days, the last business day in October). If such Friday is not a business day, the last day of trading shall be the business day prior to such Friday. [The option] Unexercised options shall expire at [10:00 a.m.] 7:00 p.m. on the last day of trading. [first Saturday following the option's last day of trading.]

c. For weekly options; no trades in weekly options shall be made after 1:15 p.m. on the Friday such a weekly option expires. If such Friday is not a business day, the last day of trading shall be the business day prior to such Friday. [The option] Unexercised options shall expire at [10:00 a.m.] 7:00 p.m. on the last day of trading. [first Saturday following the option's last day of trading.] 

d. For short-dated new crop options, the last day of trading in any option for expiry in a given month shall be the last Friday which precedes by at least two business days the last business day of the calendar month preceding such option’s named expiry month. If such Friday is not a business day, then the last day of trading in such option shall be the business day prior to such Friday. On their last day of trading, short-dated new crop options shall cease trading at the same time that its corresponding futures contract ceases trading. [The option] Unexercised options shall expire at [10:00 a.m.] 7:00 p.m. on the last day of trading. [first Saturday following the option's last day of trading.]