VOLUME 21 - BULLETIN #147
TO:
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ALL CLEARING MEMBERS
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FROM:
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BUSINESS SYSTEMS GROUP
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DATE:
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July 12, 2001
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SUBJECT:
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Serial Month Expiration of the CBOT Dow Jones Industrial Average Index Futures Options Contracts
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Friday, July 20, 2001, is the last trading day and expiration day for the July CBOT® Dow Jones Industrial AverageSM Index Futures Options contracts. Firms should be aware of the following procedures:
• Unmatched trades must be resolved prior to the final 7:00 p.m. reconciliation. Any remaining unmatched expiring options will be dropped from the system during Friday’s final reconciliation.
• All in-the-money July options, based on September futures contracts, will be automatically exercised.
• Cancellation of in-the-money automatic exercises will be allowed for serial month options and must be submitted prior to 6:00 p.m. Friday.
• Special option expiration reconciliations will be processed at 3:30 p.m. and 5:00 p.m. Option expiration reports will be produced and distributed to INFOPAC and remote locations. Firms should be aware that final futures prices will not be known when the 3:30 p.m. reconciliation is processed. Options flagged as in-the-money on the 3:30 version of the reports may vary from those that are flagged on the 5:00 p.m. version. The reports from the 5:00 p.m. reconciliation will reflect in-the-money options using final futures prices.
• Unmatched Trades Report for Expiring Options will be produced and distributed to INFOPAC and remote locations after the 11:30 a.m., 12:30 p.m., 1:30 p.m., 2:30 p.m., 3:30 p.m., 4:30 p.m. and 5:00 p.m. reconciliations.
• The Chicago Board of Trade has established a special Trade Checking session for expiring options only at 4:30 p.m. on Friday.
“Dow JonesSM”, “The DowSM”, “Dow Jones Industrial AverageSM” and “DJIASM” are service marks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by the Board of Trade of the City of Chicago (“CBOT”). The CBOT’s futures and futures options contracts based on the Dow Jones Industrial AverageSM are not sponsored, endorsed, sold or promoted by Dow JonesSM, and Dow JonesSM makes no representation regarding the advisability of trading such product(s).
• The Expiring Exercise Validation report (CLR00017) will be produced for expiring serial month options that are cash settled. The current Exercise Validation report (CLR00007) will list exercises for non-expiring options.
Should you have any questions, please call or e-mail one of the following Business Systems Analysts:
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