VOLUME 21 - BULLETIN #166
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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August 16, 2001
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SUBJECT:
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Expiration of September 2001 Option Contracts
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On Saturday, August 25, 2001, the following September 2001 option contracts for the Chicago Board of Trade and MidAmerica Commodity Exchange will officially expire:
(CBOT)
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5 Yr. Agency, 10 Yr. Agency Long Term, U.S. Treasury Bonds,
2-Year Treasury Notes, 5-Yr. Treasury Notes, 10-Year Treasury Notes,
Corn, Wheat, Oats, Soybeans, Soybean Oil, Soybean Meal, Rice
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(MACE)
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U.S. Treasury Bonds, Corn, Wheat, Soybeans
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Firms should note that all option positions that are in-the-money will be exercised unless firms submit exercise cancellation records. For further information on canceling automatic exercises refer to Chapter 4.D1 of the OTIS Trade Entry Manual.
Firms are reminded that all unmatched trades for expiring option contracts should be reconciled and corrected by the 8:00 p.m. final reconciliation on Friday, the last day of trading.
Firms are also reminded that the give-up system is available Saturdays and all expiration reports will be distributed to Infopac.
Firms who have trading activity or open positions in expiring option contracts must have staff available in their offices by 7:30 a.m. on Saturday. Firms who fail to have a representative available in their offices are subject to a $500 fine per offense.
Firms are reminded if they have any questions or problems during expiration processing on Saturday, please call 786-5732 to contact the Board of Trade Clearing Corporation’s Business Systems Group
Should you have any questions, please call or e-mail one of the following Business Systems Analysts:
Friday
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1:15 p.m.
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Trading stops in expiring agricultural option contracts
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2:00 p.m.
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Trading stops in expiring financial options contracts *
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2:50 p.m.
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Expiring unmatched option reports will be available in Infopac. Reports reflect transactions entered prior to 2:15 p.m.
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3:15 p.m.
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Mandatory trade checking session for expiring options (Agricultural).
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3:30 p.m.
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Expiring option transactions are processed.
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4:00 p.m.
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Expiring option reports available on INFOPAC. Reports reflect transactions entered prior to 3:30 p.m.
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4:15 p.m.
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Expiring unmatched trade reports will not be distributed to the trading floor, but will be available via Infopac. Reports reflect transactions entered prior to 3:45 p.m.
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4:30 p.m.
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Mandatory trade checking session for expiring options (Financial and Index)*
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5:00 p.m.
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Expiring option transactions are processed.
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5:30 p.m.
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Expiring option reports available on INFOPAC. Reports reflect transactions entered prior to 5:00 p.m.
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6:00 p.m.
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Deadline for submission of exercise records and cancellation of automatic exercise records. Exercise and automatic exercise cancellation records will be held for Saturday Expiration processing.
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8:00 p.m.
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A final reconciliation involving equal quantities cleared will be run for Friday day trades.
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Saturday
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7:00 a.m.
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MATCH UPDATE (EXCHANGE 01, 03)
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7:30 a.m.
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MATCH UPDATE (EXCHANGE 01, 03)
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7:45 a.m.
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MATCH UPDATE (EXCHANGE 01, 03)
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8:00 a.m.
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MATCH UPDATE (EXCHANGE 01, 03)
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8:30 a.m.
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MATCH (EXCHANGE 01, 03). Changes made to unmatched trades after this deadline will result in a fine being assessed to the firm.
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9:00 a.m.
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Unmatched Trade, Option Expiration and Matched Trade reports will be available via Infopac.
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10:00 a.m.
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Deadline for firms to submit exercise, adjustment, and transfer records to the Clearing Corporation. Exercise records must be submitted in accordance with the rules and regulations of the CBOT and MIDAM Exchanges.
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10:00 a.m.
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MATCH (EXCHANGE 01, 03)
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10:30 a.m.
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Edit Error, Matched Trade and Option Expiration Reports will be available via Infopac. Any errors must be reported to the Clearing Corporation IMMEDIATELY. Any additional entries required will result in a fine being assessed to the firm. Final processing of Expiring Options and Exercise and Assignment procedures will begin 30 minutes after the reports are issued
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Final Expiration reports are expected to be completed 1½ hours after final processing begins. They will be available via Infopac.
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* Financial contracts close early on expirations that fall on the Friday before a Monday holiday. For those contracts trade checking will move from 4:30 p.m. to 3:15 p.m. For more details, please see the bulletin detailing the holiday processing schedule.
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